Document:

exv10w2

 

EXHIBIT
10.2

EXECUTION COPY

 

SECOND AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

Dated as of September 7, 2006

By and Among

LOL SPV, LLC

As Seller,

LAND O’LAKES, INC.

As initial Servicer,

COBANK, ACB, AND THE OTHER

PURCHASERS FROM TIME TO TIME

PARTY HERETO

And

COBANK, ACB,

As Administrator

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	ARTICLE 1. PURCHASES AND REINVESTMENTS	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.1.	 	Agreement to Purchase; Limits on Purchasers’ Obligations	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.2.	 	Purchase Procedures; Assignment of Purchasers’ Interests	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.3.	 	Reinvestments of Certain Collections; Payment of Remaining Collections	 	 	2	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.4.	 	Receivable Interest	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.5.	 	Voluntary Termination or Reduction of Facility Limit	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 1.6.	 	Facility Limit Increases	 	 	4	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 2. COMPUTATIONAL RULES	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.1.	 	Computation of Capital	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.2.	 	Computation of Concentration Limit	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.3.	 	Computation of Earned Discount	 	 	6	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 2.4.	 	Estimates of Earned Discount Rate, Fees, Etc	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 3. SETTLEMENTS	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 3.1.	 	Purchase and Settlement Procedures	 	 	7	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 3.2.	 	Deemed Collections; Reduction of Capital, Etc	 	 	9	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 3.3.	 	Payments and Computations, Etc	 	 	10	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 4. FEES AND YIELD PROTECTION	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 4.1.	 	Fees	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 4.2.	 	Yield Protection	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 4.3.	 	Funding Losses	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 4.4.	 	Prepayments	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 5. CONDITIONS TO PURCHASES	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 5.1.	 	Conditions Precedent to Initial Purchase and Effectiveness	 	 	13	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 5.2.	 	Conditions Precedent to All Purchases and Reinvestments	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 6. REPRESENTATIONS AND WARRANTIES	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.1.	 	Representations and Warranties of Seller	 	 	15	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 6.2.	 	Representations and Warranties of Servicer	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 7. GENERAL COVENANTS	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.1.	 	Affirmative Covenants	 	 	19	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 	Section 7.2.	 	Reporting Requirements	 	 	22	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.3.	 	Negative Covenants	 	 	23	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 7.4.	 	Separate Existence	 	 	25	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 8. ADMINISTRATION AND COLLECTION	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.1.	 	Designation of Servicer and Sub-Servicers	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.2.	 	Duties of Servicer	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.3.	 	Rights of Administrator	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.4.	 	Responsibilities of Seller	 	 	31	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.5.	 	Further Action Evidencing Purchases and Reinvestments	 	 	32	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 8.6.	 	Application of Collections	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 9. SECURITY INTEREST	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 9.1.	 	Grant of Security Interest	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 9.2.	 	Further Assurances	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 9.3.	 	Remedies	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 10. TERMINATION EVENTS	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 10.1.	 	Termination Events	 	 	33	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 10.2.	 	Remedies	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 11. THE ADMINISTRATOR	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 11.1.	 	Authorization	 	 	36	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 11.2.	 	Administrator’s Reliance, Etc	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 11.3.	 	CoBank and Affiliates	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 12. ASSIGNMENT OF AND PARTICIPATIONS IN PURCHASERS’ INTERESTS	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 12.1.	 	Restrictions on Assignments;  Impact on Patronage	 	 	37	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 12.2.	 	Rights of Assignee	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 12.3.	 	Participations	 	 	38	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 13. INDEMNIFICATION	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 13.1.	 	Indemnities	 	 	39	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE 14. MISCELLANEOUS	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.1.	 	Amendments, Etc	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.2.	 	Notices, Etc	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.3.	 	No Waiver; Remedies	 	 	42	 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	 	Section 14.4.	 	Binding Effect; Survival	 	 	42	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.5.	 	Costs, Expenses and Taxes	 	 	42	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.6.	 	No Proceedings	 	 	43	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.7.	 	Confidentiality of Program Information	 	 	43	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.8.	 	Confidentiality of Originator Information	 	 	44	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.9.	 	Captions and Cross References	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.10.	 	Integration	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.11.	 	Governing Law	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.12.	 	Waiver Of Jury Trial	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.13.	 	Consent To Jurisdiction; Waiver Of Immunities	 	 	46	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.14.	 	Execution in Counterparts	 	 	47	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.15.	 	No Recourse Against Other Parties	 	 	47	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Section 14.16.	 	Amendment and Restatement	 	 	47	 

 

 

APPENDIX

	 	 	 
	APPENDIX A

	 	Definitions
	Schedule I

	 	Government Receivables (if any)
	Schedule II

	 	Contract Standards (if any)
	 
	 	 
	SCHEDULES

	 
	 	 
	Schedule 1

	 	Purchasers and Pro Rata Shares
	Schedule 6.1(m)

	 	List of Offices of Seller where Records Are Kept
	Schedule 6.1(n)

	 	List of Lockbox Banks
	Schedule 7.1(g)

	 	Initial Credit and Collection Policies
	Schedule 12.3(b)

	 	Participants
	Schedule 14.2

	 	Notice Addresses
	 
	 	 
	EXHIBITS

	 
	 	 
	Exhibit 1.2(a)

	 	Form of Purchase Notice
	Exhibit 1.6(b)

	 	Form of Purchase Increase Supplement
	Exhibit 1.6(c)

	 	Form of New Purchaser Supplement
	Exhibit 3.1(a)-l

	 	Form of Servicer Report
	Exhibit 5.1(f)

	 	Form of Lockbox Agreement
	Exhibit 7.2(a)

	 	Form of Monthly Report
	Exhibit 7.4

	 	Additional Corporate Separateness Assumptions, Statements and Representations

 

 

SECOND AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT

Dated as of September 7, 2006

PREAMBLE

     SECOND AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, dated as of September 7, 2006,
(this “Agreement”), by and among LOL SPV, LLC, a Delaware limited liability company, as
Seller (“Seller”), LAND O’LAKES, INC., a Minnesota cooperative corporation (“LOL”),
as initial Servicer (“Servicer”), COBANK, ACB, a federally chartered instrumentality of the
United States (“CoBank”), and any other Persons that may, from time to time, be party
hereto as Purchasers (each, a “Purchaser”), and CoBank as administrator for the Purchasers
(in such capacity, “Administrator”). Unless otherwise indicated, capitalized terms used in
this Agreement are defined in, and interpretive rules that apply are contained in, Appendix
A.

RECITALS

     1. Seller is a limited-purpose, bankruptcy-remote Delaware limited liability company formed by
Land O’Lakes Purina Feed LLC (“Feed”), for the purpose of purchasing, and accepting
contributions of, Receivables and Related Rights (as defined in the Purchase and Sale Agreement)
originated by Feed and the other Originators in the ordinary course of their respective businesses.
Feed owns one hundred percent (100%) of the outstanding equity of Seller.

     2. Seller, Feed, formerly as “Servicer”, CoBank, in its capacity as administrator, and the
various other purchasers from time to time party thereto, are parties to the Amended and Restated
Receivables Purchase Agreement dated as of March 31, 2004 (as heretofore amended, supplemented or
otherwise modified, the “Existing Receivables Purchase Agreement”).

     3. The parties hereto desire to amend and restate the Existing Receivables Purchase Agreement
on the terms and conditions set forth herein.

     4. Seller has, and expects to have, Pool Receivables in which Seller intends to sell an
undivided interest. Seller has requested that the Purchasers, and each Purchaser has agreed that
it shall, subject to and upon the terms and conditions contained in this Agreement, engage in
purchases of their respective Pro Rata Shares of such undivided interest, referred to herein as the
Receivable Interest, from Seller from time to time during the term of this Agreement.

     5. Seller and the Purchasers also desire that, subject to the terms and conditions of this
Agreement, certain of the daily Collections in respect of the Receivable Interest be reinvested in
Pool Receivables, which reinvestment shall constitute part of the Receivable Interest.

     6. LOL has been requested, and is willing, to act as initial Servicer.

 

 

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     7. CoBank has been requested, and is willing, to act as Administrator.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements herein contained,
the parties hereto agree as follows:

ARTICLE I. PURCHASES AND REINVESTMENTS

     SECTION 1.1. Agreement to Purchase; Limits on Purchasers’ Obligations. Subject to and
upon the terms and conditions of this Agreement, from time to time prior to the Termination Date,
(a) Seller may request that each Purchaser, ratably in accordance with such Purchaser’s Pro Rata
Share, purchase from Seller an undivided ownership interest in the Pool Assets specified in each
applicable Purchase Notice and (b) each Purchaser severally agrees to purchase its respective Pro
Rata Share of such undivided ownership interest in the Pool Assets (each being a
“Purchase”); provided that no Purchase shall be funded by the Purchasers if, after
giving effect thereto, either (y) the then Capital would exceed an amount equal to $200,000,000, as
such amount may be decreased from time to time as provided in Section 1.5 or increased from
time to time pursuant to Section 1.6 (the “Facility Limit”), or (z) the Receivable
Interest would exceed 100% (the “Allocation Limit”); and provided further
that each Purchase made pursuant to this Section 1.1 shall require a funding of Capital of
at least $1,000,000.

     SECTION 1.2. Purchase Procedures; Assignment of Purchasers’ Interests.

     (a) Notice of Purchase. Each Purchase from Seller shall be made by the Purchasers
upon notice from Seller to the Administrator received by the Administrator not later than 2:00 P.M.
(Denver, Colorado time) on the Business Day next preceding the Business Day of such proposed
Purchase (the “Purchase Date”). Each such notice of a proposed Purchase shall be
substantially in the form of Exhibit 1.2(a) (each a “Purchase Notice”), and shall
specify the desired amount of, and Purchase Date for, such Purchase; provided, that Seller
may give only one (1) Purchase Notice during any 7-day period, and such Purchase Notice must
specify a Purchase amount of at least $1,000,000, or an integral multiple of $100,000 in excess
thereof.

     (b) Funding of Purchases. On each Purchase Date, each Purchaser shall, upon
satisfaction of the applicable conditions set forth in Article V, fund such Purchase by
making the full amount of its Pro Rata Share of such Purchase available to Administrator at
Administrator’s Office in immediately available funds, and after receipt by Administrator of such
funds, Administrator will make such funds immediately available to Seller at such office.

     (c) Sale of Receivable Interest. In consideration of the Capital funded by each
Purchaser on each Purchase Date, Seller hereby sells, assigns and transfers to Administrator, for
the ratable benefit of the Purchasers, the Receivable Interest.

     SECTION 1.3. Reinvestments of Certain Collections; Payment of Remaining Collections.

     (a) On the close of business on each Business Day during the period from the date hereof until
the Termination Date, Servicer shall, out of all Collections received on such day:

 

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     (i) determine the portion of Collections attributable on such day to the Receivable
Interest by multiplying (A) the amount of all Collections received on such day,
times (B) the Receivable Interest;

     (ii) out of the portion of Collections allocated to the Receivable Interest pursuant to
clause (a)(i), (A) if a Termination Event shall have occurred and be continuing, set aside
and deposit into the Administrator’s Account in trust for the Purchasers or (B) in all other
cases, otherwise provide that the Servicer will have available to it on the next Settlement
Date or as required by Section 3.1(e), an amount equal to the sum of the estimated amount of
Yield accrued and unpaid in respect of the Capital (based on rate information provided by
the Administrator pursuant to Section 2.4), the accrued Fees, all other amounts due
to the Purchasers, Administrator, the Affected Parties or the Indemnified Parties hereunder
(other than the Capital) and the Purchasers’ Share of the Servicer’s Fee (in each case,
accrued through such day) and not so previously set aside and deposited into the
Administrator’s Account or its availability on the next Settlement Date provided for (it
being understood that for so long as no Termination Event is then continuing, Seller may
utilize funds to pay down notes owing to the Originators or invest funds with Land O’Lakes,
Inc.);

     (iii) apply the Collections allocated to the Receivable Interest pursuant to clause
(a)(i), and not set aside for its availability provided for pursuant to clause (ii), to the
purchase from Seller of ownership interests in Pool Assets (each such purchase being a
“Reinvestment”); provided that (A) if the Excess Amount exceeds zero, then
Servicer shall not reinvest, but shall set aside and deposit into the Administrator’s
Account for the benefit of the Purchasers, a portion of such Collections which, together
with other Collections previously set aside and then so held, shall equal the Excess Amount;
and (B) if the conditions precedent to Reinvestment in Section 5.2 are not
satisfied, then Servicer shall not reinvest any of such Collections;

     (iv) pay to Seller (A) the portion of Collections not allocated to the Receivable
Interest pursuant to clause (i), less the Seller’s Share of the Servicer’s Fee, (B) the
amounts, if any, to be made available to the Servicer on the next Settlement Date pursuant
to clause (ii)(B) and (C) the Collections applied to Reinvestment pursuant to clause (iii);
and

     (v) out of the portion of Collections not allocated to the Receivable Interest pursuant
to clause (i), pay to the Servicer the Seller’s Share of the Servicer’s Fee accrued through
such day.

     (b) Unreinvested and Undistributed Collections. Servicer shall set aside and deposit
into the Administrator’s Account in trust for the benefit of the Purchasers all Collections
allocated to the Receivables Interest which pursuant to clause (iii) of Section 1.3(a) may
not be reinvested in Pool Assets. If, prior to the date when such Collections are required to be
paid to the Administrator pursuant to Section 3.1, the amount of Collections set aside
pursuant to clause (iii) of Section 1.3(a) exceeds the Excess Amount, if any, and the
conditions precedent to Reinvestment set forth in Section 5.2 are satisfied, then the
Servicer shall apply such Collections (or, if less, a portion of such Collections equal to the
amount of such excess) to the making of a Reinvestment. Seller may, in its sole discretion, at any
time, sell or transfer Receivables it identifies and determines to so sell or transfer for a sale
or transfer price not less than the fair market value of such Receivables at such time.

 

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     SECTION 1.4. Receivable Interest.

     (a) Components of Receivable Interest. On any date, the Receivable Interest will
represent the Purchasers’ combined undivided percentage ownership interest in (i) all
then-outstanding Pool Receivables, (ii) all Related Security and Related Rights with respect to
such Pool Receivables, (iii) all of Seller’s right and claims under the Purchase and Sale
Agreement, (iv) all Collections with respect to, and other proceeds of, the foregoing as at such
date, (v) all lockboxes and lockbox or collection accounts into which Collections of Pool
Receivables are or may be deposited, and all investments therein, and (vi) all books and records
(including computer disks, tapes and software) evidencing or relating to any of the foregoing, in
each case, whether now owned by Seller or hereafter acquired or arising, and wherever located (all
of the foregoing, collectively referred to as “Pool Assets”).

     (b) Computation of Receivable Interest. On any date, the “Receivable
Interest” will be equal to a percentage, expressed as the following fraction:

C + RR

NPB

where:

	 	 	 	 	 	 	 
	 

	 	C
	 	=
	 	the then Capital;
	 

	 	RR
	 	=
	 	the then Required Reserves; and
	 

	 	NPB
	 	=
	 	the then Net Pool Balance;

provided, however, that during the period from and after the Termination Date but
prior to the Final Payout Date, the Receivable Interest will be one hundred (100%), and that from
and after the Final Payout Date the Receivable Interest will be zero percent (0%).

     (c) Frequency of Computation. The Receivable Interest shall be computed as of the
Cut-Off Date immediately preceding each Settlement Period. In addition, the Administrator may
require Servicer to provide a report in such form as may be designated by the Administrator for
purposes of computing the Receivable Interest as of any other date, and the Servicer agrees to do
so within two (2) Business Days after its receipt of the Administrator’s request.

     SECTION 1.5. Voluntary Termination or Reduction of Facility Limit. Seller may, upon
at least thirty (30) days’ prior written notice to the Administrator or, at any time following
LOL’s receipt of a Successor Notice, immediately upon written notice to the Administrator,
terminate in whole or reduce in part the unused portion of the Facility Limit; provided,
that each partial reduction at the Facility Limit shall be in an amount equal to $1,000,000 or an
integral multiple of $100,000 in excess thereof.

 

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     SECTION 1.6. Facility Limit Increases.

     (a) Notwithstanding anything to the contrary contained in this Agreement, Seller may request
from time to time that the Facility Limit be increased (a “Facility Limit Increase”);
provided that (i) the aggregate amount of all Facility Limit Increases shall not exceed
$50,000,000, (ii) a Facility Limit Increase may occur not more than twice during the term of this
Agreement, (iii) the first Facility Limit Increase shall be in an amount not less than $25,000,000;
and (iv) the second Facility Limit Increase shall be in an amount that is the lesser of (A)
$25,000,000 and (B) $50,000,000 less the amount of the first Facility Limit Increase as
provided in clause (iii). The Seller may (y) request one or more of the Purchasers to fund
Purchases in the amount of the requested increase (which request shall be in writing and sent to
the Administrator to forward to such Purchasers) and/or (z) with the consent of the Administrator
(which consent of the Administrator shall not be unreasonably withheld or delayed), arrange for one
or more banks or financial institutions not a party hereto (a “New Purchaser”) to become
parties to and Purchasers under this Agreement. In no event may the amount of Purchases funded by
any Purchaser be increased without the prior written consent of such Purchaser. The failure of any
Purchaser to respond to Seller’s request for an increase shall be deemed a rejection by such
Purchaser of Seller’s request. The Facility Limit may not be increased if, at the time of any
proposed increase hereunder, an Unmatured Termination Event or a Termination Event has occurred and
is continuing. Upon any request by Seller to increase the Facility Limit, Seller shall be deemed
to have represented and warranted on and as of the date of such request that no Unmatured
Termination Event or Termination Event has occurred and is continuing.

     (b) If any Purchaser is willing, in its sole and absolute discretion, to increase the amount
of Purchases funded by such Purchaser hereunder (such Purchaser hereinafter referred to as an
“Increasing Purchaser”), it shall enter into a written agreement to that effect with the
Seller, the Servicer and the Administrator, substantially in the form of Exhibit 1.6(b) (a
“Purchase Increase Supplement”), which agreement shall specify, among other things, the
amount of additional Purchases to be funded by Increasing Purchaser. Upon the effectiveness of
such Purchase Increase Supplement, Schedule 1 shall, without further action, be deemed to
have been amended appropriately to reflect the commitment of such Increasing Purchaser to make
additional Purchases as set forth in the Purchase Increase Supplement and the resulting Pro Rata
Share of each Purchaser.

     (c) Any New Purchaser that is willing to become a party hereto and a Purchaser hereunder (and
which arrangement to become a party hereto and a Purchaser hereunder has been consented to by the
Administrator pursuant to Section 1.6(a)) shall enter into a written agreement with the
Seller, the Servicer and the Administrator, substantially in the form of Exhibit 1.6(c) (a
“New Purchaser Supplement”), which agreement shall specify, among other things, the amount
of Purchases to be funded by such New Purchaser hereunder. When such New Purchaser becomes a
Purchaser hereunder as set forth in the New Purchaser Supplement, Schedule 1 shall, without
further action, be deemed to have been amended as appropriate to reflect the commitment of such New
Purchaser to make Purchases as set forth in the New Purchaser Supplement and the resulting Pro Rata
Share of each Purchaser. Upon the execution by the Administrator, the Seller and such New
Purchaser of such New Purchaser Supplement, such New Purchaser shall become and be deemed a party
hereto and a “Purchaser” hereunder for all purposes hereof and shall enjoy all rights and assume
all obligations on the part of the Purchaser set forth in this Agreement, and its commitment to
fund Purchases shall be in the amount specified in its New Purchaser Supplement.

 

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     (d) Upon the effectiveness of the increase in a Purchaser’s commitment to fund Purchasers
pursuant to paragraph (b) above or the commitment of a New Purchaser to fund Purchases pursuant to
paragraph (c) above and execution by an Increasing Purchaser of a Purchase Increase Supplement or
by a New Purchaser of a New Purchase Supplement, Purchases shall be funded by such Increasing
Purchaser or New Purchaser, and/or the Servicer shall make
payments from Collections that would otherwise be reinvested pursuant to Section
1.3(a) (notwithstanding the settlement procedures set forth in Section 3.1(c)) to the
Administrator, for the account of the Purchasers, as shall be required to cause the amount of
Purchases funded by each Purchaser (including each such Increasing Purchaser and New Purchaser) to
be proportional to such Purchaser’s Pro Rata Share after giving effect to the increases
contemplated by this Section 1.6.

ARTICLE II. COMPUTATIONAL RULES

     SECTION 2.1. Computation of Capital. In making any determination of Capital, the
following rules shall apply:

     (a) Capital shall not be considered reduced by any allocation, setting aside or distribution
of any portion of Collections unless such Collections shall have been actually delivered to the
Administrator, for the benefit of the Purchasers, pursuant hereto for application to the Capital;
and

     (b) Capital shall not be considered reduced by any distribution of any portion of Collections
if at any time such distribution is rescinded or must otherwise be returned for any reason.

     SECTION 2.2. Computation of Concentration Limit. Except as otherwise consented to in
writing in the sole reasonable discretion of the Administrator and the Required Purchasers, in the
case of any Obligor that is an Affiliate of any other Obligor, the Concentration Limit and the
aggregate Unpaid Balance of Pool Receivables of such Obligors shall be calculated as if such
Obligors were one Obligor.

     SECTION 2.3. Computation of Earned Discount.

     (a) Yield shall accrue on the outstanding Capital on each day during any Settlement Period at
the applicable Yield Rate. On each Settlement Date, the Seller shall pay from Collections in
accordance with Section 3.1 to the Administrator, for the account of the Purchasers in
accordance with their respective Pro Rata Shares, an amount equal to the accrued and unpaid Yield
with respect to the immediately preceding Settlement Period.

     (b) In making any determination of Yield, the following rules shall apply:

 

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     (i) no provision of this Agreement shall require payment or permit the collection of
Yield in excess of the maximum permitted by Applicable Law (it being agreed that, if the
Yield would be in excess of such maximum but for this provision, the amount of Yield shall
be reduced to the greatest amount that does not exceed such maximum); and

     (ii) Yield for any period shall not be considered paid by any distribution if at any
time such distribution is rescinded or must otherwise be returned for any reason.

     SECTION 2.4. Estimates of Earned Discount Rate, Fees, Etc. For purposes of
determining the amounts required to be set aside by Servicer pursuant to Section 1.3, the
Administrator shall notify Servicer from time to time of the Yield Rate applicable to the
Capital as elected by Seller and the rates at which Fees and other amounts are accruing hereunder.
It is understood and agreed that (i) the Yield Rate may change from time to time, (ii) certain rate
information provided by the Administrator to Servicer shall be based upon the Administrator’s good
faith estimate, (iii) the amount of Yield actually accrued with respect to the Capital during any
Settlement Period may exceed, or be less than, the amount set aside with respect thereto by
Servicer, and (iv) the amount of Fees or other payables accrued hereunder with respect to any
Settlement Period may exceed, or be less than, the amount set aside with respect thereto by
Servicer. Failure to set aside any amount so accrued shall not relieve Servicer of its obligation
to remit Collections to the Administrator with respect to such accrued amount, as and to the extent
provided in Section 3.1. In the event that prior to the commencement of any Settlement
Period the Administrator shall determine that adequate and reasonable methods do not exist for
ascertaining the LIBOR Rate, then the Yield Rate for such Settlement Period shall be the Alternate
Base Rate.

ARTICLE III. SETTLEMENTS

     SECTION 3.1. Purchase and Settlement Procedures. The parties hereto will take the
following actions with respect to each Purchase Date and each Settlement Date:

     (a) Servicer Report. Except as provided in the next sentence with respect to the
initial Purchase hereunder, on or before the Business Day (each, a “Reporting Date”)
preceding each Settlement Date, as the case may be, Servicer shall deliver to the Administrator a
report containing the information described in Exhibit 3.1(a)-l (each, a “Servicer
Report”). Notwithstanding the foregoing, for administrative convenience in connection with the
initial Purchase hereunder, the initial Reporting Date shall be August 31, 2006, and the initial
Purchase Date shall occur on September 7, 2006 (the “Initial Purchase Date”).

     (b) Yield, Fees and Other Amounts Due. Five (5) Business Days after the end of each
Settlement Period, the Administrator shall notify Servicer of (i) the amount of Yield that will
have accrued in respect of the Capital as of the Settlement Date relating to such Settlement Period
and (ii) all Fees and other amounts that will have accrued or otherwise have become payable (other
than Capital) by Seller under this Agreement on the next Settlement Date.

     (c) Settlement
Date Procedures - Reinvestment Period. On each Settlement Date prior
to the Termination Date, Servicer shall distribute from Collections set aside or applied (to the
extent applied in violation of the proviso to Section 1.3(a)(iii)) pursuant to Sections
1.3(a)(i) through (iii) during the immediately preceding Settlement Period the
following amounts in the following order:

 

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(1) to the Administrator, for the account of the Purchasers in accordance with their
respective Pro Rata Shares, an amount equal to the Yield accrued and unpaid during such
Settlement Period, plus any previously accrued Yield not paid on a prior Settlement
Date or pursuant to Section 3.1(e), which amount shall be distributed by the Administrator
to the Purchasers for application to such Yield;

(2) to the Administrator, an amount equal to the Fees accrued during such Settlement Period,
plus any previously accrued amounts described in this clause (2) not paid on a
prior Settlement Date or pursuant to Section 3.1(e), which amount shall be
distributed by the Administrator to all Persons to whom payable;

(3) to the Servicer, an amount equal to the Purchasers’ Share of the Servicer’s Fee accrued
during such Settlement Period, plus any previously accrued Purchasers’ Share of the
Servicer’s Fee not paid on a prior Settlement Date or pursuant to Section 3.1(e);

(4) to the Administrator, all other amounts (other than Capital) then due under this
Agreement or the other Transaction Documents to the Administrator, the Purchasers, the
Affected Parties or the Indemnified Parties; and

(5) to the Administrator, for the account of the Purchasers in accordance with their
respective Pro Rata Shares, an amount equal to the Excess Amount as of the Reporting Date,
if any, which amount shall be distributed by the Administrator to the Purchasers for
application to their respective Pro Rata Shares of the Capital.

On or as of any Purchase Date hereunder, the full amount of any such payments and/or distributions
required to be made on the next succeeding Settlement Date (as computed by the Administrator in its
reasonable judgment), shall, for purposes of any computations required pursuant to Section
5.2(b) for determining Seller’s eligibility to effect any Purchase hereunder on such Purchase
Date, be given pro forma effect and be included in any such computations as if made prior to the
Purchase reflected in the applicable Purchase Notice.

     (d) Settlement
Period Procedure - Termination Period. On each Business Day during the
Termination Period, Servicer shall, immediately upon receipt or deemed receipt thereof, deposit in
a Lockbox Account, all Collections received or deemed received pursuant to Section 3.2 on
such Business Day and all Collections so received or deemed received during each Settlement Period
during the Termination Period shall be distributed by the Servicer or the Administrator (to the
extent that such funds are in its possession) on each Settlement Date in the following amounts and
in the following order:

(1) to the Administrator, for the account of the Purchasers in accordance with their
respective Pro Rata Shares, an amount equal to the Yield accrued during such Settlement
Period, plus any previously accrued Yield not paid on a prior Settlement Date, which
amount shall be distributed by the Administrator to the Purchasers for application to such
Yield;

 

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(2) to the Administrator, an amount equal to the Fees accrued during such Settlement Period,
plus any previously accrued Fees not paid on a prior Settlement Date which amount
shall be distributed by Servicer to all Persons to whom payable;

(3) to the Servicer, an amount equal to the Purchasers’ Share of the Servicer’s Fee accrued
during such Settlement Period, plus any previously accrued Purchasers’ Share of the
Servicer’s Fee not paid on a prior Settlement Date;

(4) to the Administrator, for the account of the Purchasers in accordance with their
respective Pro Rata Shares, an amount equal to the remaining Purchasers’ Share of
Collections, until the Capital is reduced to zero, which amount shall be distributed by the
Administrator to the Purchasers for application to their respective Pro Rata Shares of the
Capital;

(5) to the Administrator, all other amounts (other than Capital) then due under this
Agreement and the other Transaction Documents to the Administrator, the Purchasers, the
Affected Parties or the Indemnified Parties; and

(6) to the Seller, any remaining amounts.

     (e) Delayed Payment. If on any day prior to the Termination Date, because Collections
during the relevant Settlement Period were less than the aggregate amounts payable, Servicer does
not make any payment otherwise required, the Servicer shall set aside and hold Collections in
respect of the Receivable Interest until sufficient amounts have been collected to pay the
shortfall and will on the next Business Day pay to the Administrator the amount of such shortfall
and no Reinvestment shall be permitted hereunder until such amount payable has been paid in full.

     SECTION 3.2. Deemed Collections; Reduction of Capital, Etc.

     (a) Deemed Collections. If on any day (any of the events or circumstances described
in the succeeding clauses (i), (ii) or (iii) being referred to herein as a “Deemed
Collection”):

     (i) a Dilution occurs or the Unpaid Balance of any Pool Receivable is less than the
amount included in calculating the Net Pool Balance for purposes of any Servicer Report for
any other reason; or

     (ii) any of the representations or warranties of Seller set forth in Section
6.1(k) or (o) with respect to any Pool Receivable were not true when made with
respect to any Pool Receivable, or any of the representations or warranties of Seller set
forth in Section 6.1(k) or (o) are no longer true with respect to any Pool
Receivable; or

     (iii) without duplication, Seller receives a Deemed Collection pursuant to the Purchase
and Sale Agreement;
then, on such day, Seller shall be deemed to have received a Collection of such Pool
Receivable:

 

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     (xi) in the case of clause (a)(i) above, in the amount of such Dilution or the
difference between the actual Unpaid Balance and the amount included in calculating such Net
Pool Balance, as applicable; and

     (xii) in the case of clause (a)(ii) above, in the amount of the Unpaid Balance of such
Pool Receivable; and

     (xiii) in the case of clause (a)(iii) above, in the amount of such Deemed Collection.

In the event that Seller has paid to the Administrator, for the account of the Purchasers, the
Purchasers’ Share of the Unpaid Balance of any Receivable pursuant to this Section 3.2(a),
the Seller shall acquire the Purchasers’ interest in such Receivable and all Related Rights with
respect thereto, without recourse, representation or warranty of any type or kind by the Purchaser.

     (b) Seller’s Optional Reduction of Capital. Seller may at any time (but not more than
once in any seven (7)-day period) elect to reduce the Capital as follows:

     (i) Seller shall give the Administrator at least two (2) Business Days’ prior written
notice of such reduction (including the amount of such proposed reduction and the proposed
date on which such reduction will commence);

     (ii) on the proposed date of commencement of such reduction and on each day thereafter,
Servicer shall refrain from reinvesting Collections pursuant to Section 1.3 until
the amount thereof not so reinvested shall equal the desired amount of reduction, and

     (iii) Servicer shall deposit such Collections into the Administrator’s Account in trust
for the Purchasers, pending receipt by the Administrator of the full amount of such
requested Capital reduction, whereupon such funds shall be applied to so reduce the Capital;

provided that,

     (A) the amount of any such reduction shall be not less than $1,000,000 or an
integral multiple of $100,000 in excess thereof, and the Capital after giving effect
to such reduction shall be not less than $15,000,000 (unless Capital shall thereby
be reduced to zero); and

     (B) Seller shall use reasonable efforts to attempt to choose a reduction
amount, and the date of commencement thereof, so that such reduction shall commence
and conclude in the same Settlement Period.

     SECTION 3.3. Payments and Computations, Etc.

     (a) Payments. All amounts to be paid or deposited by Seller or Servicer to the
Administrator or any other Person (other than to Seller or Servicer) hereunder (other than amounts
payable under Section 4.2) shall be paid or deposited in accordance with the terms hereof
no later than 2:00 P.M. (Denver, Colorado time) on the day when due (with written notice of such
payment or deposit to be given to the Administrator by not later than 11:00 A.M.

 

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(Denver, Colorado
time) on such day) in lawful money of the United States of America in immediately available funds
to the Administrator at ABA# 307088754, account # 00019975; Attention: Feed (the
“Administrator’s Account”). Any and all payments by or on account of Seller hereunder or
under any other Transaction Document shall be made free and clear of, and without deduction for,
any taxes or other charges of any type or kind; provided that if Seller shall be required
to deduct any taxes or other charges of any type or kind from such payments, then (i) the sum
payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the Administrator or Purchaser
(as the case may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) Seller shall make such deductions and (iii) Seller shall pay the full
amount deducted to the relevant Governmental Authority in accordance with Applicable Law.

     (b) Late Payments. Seller or Servicer, as applicable, shall, to the extent permitted
by law, pay to the Purchasers or the Administrator, as the case may be, interest on all amounts not
paid or deposited by it when such amount is due hereunder at the Default Rate, payable on demand,
provided, however, that such interest shall not at any time exceed the maximum rate
permitted by Applicable Law.

     (c) Method of Computation. All computations of Yield, interest and any fees payable
hereunder shall be made on the basis of a year of 360 days for the actual number of days (including
the first day but excluding the last day) elapsed.

ARTICLE IV. FEES AND YIELD PROTECTION

     SECTION 4.1. Fees. (a) Seller shall pay to the Administrator and the Purchasers the
Fees in the amounts and at the times set forth in the fee letter, dated July 27, 2006, from the
Administrator (as amended or supplemented from time to time, the “Fee Letter”).

     (b) During the period from and including the date hereof to the date on which the Termination
Period begins, a commitment fee (a “Commitment Fee”) shall be payable to the Administrator
for the account of Purchasers in accordance with their respective Pro Rata Shares, payable monthly
in arrears on each Settlement Date and computed at the rate of .200% per annum (20 basis points) on
the average amount of the difference between the Facility Limit and the amount of Capital during
each Settlement Period ending prior to the Settlement Date on which the Commitment Fee is paid,
commencing on the first such Settlement Date to occur after the date hereof.

     SECTION 4.2. Yield Protection.

     (a)    If (i) Regulation D or (ii) any Regulatory Change occurring after the date hereof:

     (A) shall subject an Affected Party or any of their interests to any tax, duty
or other charge with respect to any Receivable Interest owned by or funded by it, or
any obligations or right to make Purchases or Reinvestments or to provide funding
therefor, or shall change the basis of taxation of payments to the Affected Party of
any Capital or Yield owned by, owed to or funded in whole or

 

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in part by it or any
other amounts due under this Agreement in respect of the Receivable Interest owned
by or funded by it or its obligations or rights, if any, to make Purchases or
Reinvestments or to provide funding therefor (except for franchise taxes or changes
in the rate of tax on the overall net income of such Affected Party); or

     (B) shall impose, modify or deem applicable any reserve (including, without
limitation, any reserve imposed by the Federal Reserve Board, special deposit,
compulsory loan or similar requirement against assets of any Affected Party,
deposits or obligations with or for the account of any Affected Party or with or for
the account of any affiliate (or entity deemed by the Federal Reserve Board to be an
affiliate) of any Affected Party, or credit extended by any Affected Party, but
excluding any reserve, special deposit or similar requirement included in the
determination of Yield; or

     (C) shall change the amount of capital maintained or required or requested or
directed to be maintained by any Affected Party; or

     (D) shall impose any other condition affecting any Receivable Interest owned or
funded in whole or in part by any Affected Party, or its obligations or rights, if
any, to make Purchases or Reinvestments or to provide funding therefor; or

     (E) shall change the rate for, or the manner in which the Federal Deposit
Insurance Corporation (or a successor thereto) assesses, deposit insurance premiums
or similar charges;

and the result of any of the foregoing is;

	 	(x)	 	to increase the cost to or to impose a cost on an Affected Party funding or
making or maintaining any Purchases or Reinvestments, any purchases, reinvestments, or
loans or other extensions of credit under any Transaction Document, or any commitment
of such Affected Party with respect to any of the foregoing;
	 
	 	(y)	 	to reduce the amount of any sum received or receivable by an Affected Party
under this Agreement, or under any Transaction Document; or
	 
	 	(z)	 	to reduce the rate of return on the capital of an Affected Party as a
consequence of its obligations hereunder or under any Transaction Document or arising
in connection herewith to a level below that which such Affected Party could otherwise
have achieved;

then within thirty (30) days after demand by such Affected Party (which demand shall be accompanied
by a statement setting forth in reasonable detail the basis for, calculation of, and amount of such
additional costs or reduced amount receivable; provided, however, that no Affected
Party shall be required to disclose any confidential or tax planning information in any such
statement), Seller shall pay directly to such Affected Party such additional amount or amounts as
such Affected Party reasonably determines will compensate such Affected Party for such additional
or increased cost or such reduction, but without duplication of any other similar additional
amounts due under any other Transaction Document.

 

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     (b) Each Affected Party will use reasonable efforts to notify Seller and the Administrator as
soon as practicable after knowledge of the occurrence of any event of which it has knowledge which
will entitle such Affected Party to compensation pursuant to this Section 4.2;
provided however, that no failure to give or delay in giving such notification
shall adversely affect the rights of any Affected Party to such compensation and provided
further, that no Affected Party shall be entitled to such compensation retroactively for a
period of more than ninety (90) days prior to the date of such notice.

     (c) In determining any amount provided for or referred to in this Section 4.2, an
Affected Party may use any reasonable averaging and attribution methods that it shall deem
applicable. Any Affected Party when making a claim under this Section 4.2 shall submit to
Seller a statement as to such increased cost or reduced return (including a calculation thereof in
reasonable detail), which statement shall, in the absence of demonstrable error, be conclusive and
binding upon Seller.

     SECTION 4.3. Funding Losses. In the event that any Affected Party shall incur any
loss or expense (including any LIBOR Rate breakage costs or any other loss or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by such Affected
Party to make or maintain any funding with respect to the Receivable Interest) as a result of (i)
any settlement with respect to any portion of Capital funded by such Affected Party being made on
any day other than the scheduled last business day of an applicable Settlement Period with respect
thereto, or (ii) any Purchase not being made in accordance with a request therefor under
Section 1.2, then, immediately upon demand from the Administrator to Seller, Seller shall
pay to the Administrator for the account of such Affected Party, the amount of such loss or
expense. Such written notice (which shall include calculations in reasonable detail) shall, in the
absence of demonstrable error, be conclusive and binding upon the Seller.

     SECTION 4.4. Prepayments. In the event the Seller desires to reduce the amount of
Capital outstanding on a date other than a Settlement Date other than as provided in Section
3.2(b), the Seller may deliver the amount of such Capital to the Administrator, and the
Administrator agrees to invest the amount of such Capital as directed by the Seller for the period
between the date of such prepayment and the next succeeding Settlement Date. On the next
succeeding Settlement Date, interest and other amounts, if any, earned on the amount of Capital so
invested at the direction of the Seller will be credited toward any amounts due from the Seller on
such next succeeding Settlement Date. Notwithstanding the terms of this Section 4.4, the
Seller shall remain liable (on the next succeeding Settlement Date) for the amount, if any, by
which the Yield accruing on the outstanding Capital through the next succeeding Settlement Date
exceeds the amount, if any, of interest and other amounts earned upon investment of such prepaid
amounts by the Administrator (at the direction of the Seller) as aforesaid.

ARTICLE V. CONDITIONS TO PURCHASES

     SECTION 5.1. Conditions Precedent to Initial Purchase and Effectiveness. Each of the
initial Purchase hereunder and the effectiveness of this Agreement is subject to the condition
precedent that the Administrator shall have received, on or before the date of such Purchase, the
following, each (unless otherwise indicated) dated such date and in form and substance reasonably
satisfactory to the Administrator:

 

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     (a) Good standing (and foreign qualification, as applicable) certificates for each Originator
and Seller issued by the Secretaries of State of the jurisdictions of their incorporation or
formation and their respective principal places of business;

     (b) A certificate of the Secretaries of LOL and Seller in form and substance reasonably
satisfactory to the Administrator certifying (i) a copy of the resolutions of its Board of
Directors or Board of Managers, as applicable, approving this Agreement and the other Transaction
Documents to be delivered by it hereunder and the transactions contemplated hereby; (ii) the names
and true signatures of the officers authorized on its behalf to sign this Agreement and the other
Transaction Documents to be delivered by it hereunder (on which certificate the Administrator and
the Purchasers may conclusively rely until such time as the Administrator shall receive from LOL or
Seller, as the case may be, a revised certificate meeting the requirements of this subsection
(b)); (iii) a copy of its by-laws, operating agreement or equivalent organizational
document(s); and (iv) all documents evidencing other necessary corporate action and governmental
approvals, if any, with respect to this Agreement and the
other Transaction Documents;

     (c) The Certificate of Formation of Seller and the Certificate of Incorporation of LOL, duly
certified by the Secretary of State of the jurisdiction of its formation, as of a recent date
reasonably acceptable to Administrator;

     (d) A search report provided in writing to and approved by the Administrator, which approval
shall not be unreasonably withheld or delayed, listing all effective financing statements that name
any Originator or Seller as debtor or assignor and that are filed in the jurisdictions in which
filings of financing statements were made pursuant to the Existing Receivables Purchase Agreement
and in such other jurisdictions that Administrator shall reasonably request, together with copies
of such financing statements (none of which shall cover any Pool Assets, unless executed
termination statements and/or partial releases with respect thereto have been delivered to the
Administrator), and tax and judgment lien search reports from a Person reasonably satisfactory to
Servicer and the Administrator showing no evidence of such liens filed against any Originator or
Seller;

     (e) A certificate of an officer of Seller identifying and affirming that all of the Lockbox
Agreements with the Lockbox Banks that were executed in connection with the Existing Receivables
Purchase Agreement, as well as any additional Lockbox Agreements with Lockbox Banks that have been
executed since the execution of the Existing Receivables Purchase Agreement pursuant to Section
7.3(d) thereof, remain in full force and effect and attaching certified copies of each such
Lockbox Agreement;

     (f) Favorable opinions of (i) in-house counsel to each of Servicer and Seller as to corporate
authority and (ii) Faegre & Benson LLP, special counsel to each of the Originators and Seller as to
all other legal matters, in form and substance reasonably satisfactory to the Administrator and its
counsel;

 

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     (g) Evidence of payment by the Seller of all accrued and unpaid Fees (including those
contemplated by the Fee Letter), all of the costs and expenses of this transaction accrued or
received prior to the date hereof, including, without limitation, attorneys’ fees of the
Administrator, plus such additional amounts of attorneys’ fees as shall constitute the
Administrator’s reasonable estimate of attorneys’ fees incurred or to be incurred by it through the
closing proceedings, including any such costs, fees and expenses payable in accordance with
Section 14.5 as well as any similar accrued and unpaid amounts pursuant to the Existing
Receivables Purchase Agreement;

     (h) An amendment to the Purchase and Sale Agreement, duly executed by the Originators and
Seller, and a copy of all documents required to be delivered thereunder; and

     (i) Such other documents, certificates or opinions as the Administrator may reasonably
request.

     SECTION 5.2. Conditions Precedent to All Purchases and Reinvestments. Each Purchase
(including the initial Purchase) and each Reinvestment hereunder, shall be subject to the further
conditions precedent that:

     (a) in the case of each Purchase, the Servicer shall have delivered to the Administrator on or
prior to such Purchase, in form and substance satisfactory to the Administrator, a completed
Servicer Report with respect to the immediately preceding calendar month, dated within two (2)
Business Days prior to the date of such Purchase, together with such additional information as may
be reasonably requested by the Administrator;

     (b) on the date of such Purchase or Reinvestment the following statements shall be true (and
Seller by accepting the amount of such Purchase or by receiving the proceeds of such Reinvestment
shall be deemed to have certified that):

     (i) each of the representations and warranties contained in Article VI
(including, without limitation, all representations and warranties incorporated by reference
herein and made a part hereof pursuant to Section 6.3(a)), are true and correct in
all material respects as though made on and as of such date and shall be deemed to have been
made on such date (except that any such representation or warranty, which, by its express
terms, relates exclusively to an earlier date, shall be true and correct in all material
respects as of such earlier date);

     (ii) no event has occurred and is continuing, or would result from such Purchase or
Reinvestment, that constitutes a Termination Event or Unmatured Termination Event;

     (iii) after giving effect to each proposed Purchase or Reinvestment, Capital will not
exceed the Facility Limit and the Receivable Interest will not exceed the Allocation Limit;
and

     (iv) the Termination Date shall not have occurred.

 

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ARTICLE VI. REPRESENTATIONS AND WARRANTIES

     SECTION 6.1. Representations and Warranties of Seller. Seller represents and warrants
as follows:

     (a) Organization and Good Standing. Seller has been duly organized and is validly
existing as a limited liability company in good standing under the laws of the State of Delaware,
with power and authority to own its properties and to conduct its business as such properties are
presently owned and such business is presently conducted, and had at all relevant times, and now
has, all necessary power, authority, and legal right to acquire and own the Pool Assets.

     (b) Due Qualification. Seller is duly qualified to do business as a foreign limited
liability company in good standing, and has obtained all necessary licenses and approvals, in all
other jurisdictions in which the ownership or lease of property or the conduct of its business
requires such qualification, licenses or approvals, and except where the failure to so qualify or
have such licenses or approvals has not had, and could not reasonably be expected to have, a
Material Adverse Effect.

     (c) Power and Authority; Due Authorization. Seller (i) has all necessary power,
authority and legal right to (A) execute and deliver this Agreement and the other Transaction
Documents to which it is a party, (B) carry out the terms of the Transaction Documents to
which it is a party, and (C) sell and assign the Receivable Interest on the terms and conditions
herein provided and (ii) has duly authorized by all necessary organizational action the execution,
delivery and performance of this Agreement and the other Transaction Documents to which it is a
party and the sale and assignment of the Receivable Interest on the terms and conditions herein
provided.

     (d) Valid Transfer; Binding Obligations. This Agreement constitutes a valid transfer
and assignment of the Receivable Interest to the Administrator, for the benefit of Purchaser,
enforceable against creditors of, and purchasers from, Seller; and this Agreement constitutes, and
each other Transaction Document to be signed by Seller when duly executed and delivered will
constitute, a legal, valid and binding obligation of Seller enforceable in accordance with its
terms, except, in all cases, as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors’ rights generally and
by general principles of equity, regardless of whether such enforceability is considered in a
proceeding in equity or at law.

     (e) No Violation. The consummation by Seller of the transactions contemplated by this
Agreement and the other Transaction Documents to which it is a party and the fulfillment of the
terms hereof and thereof will not (i) conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time or both) a default under, the
Seller’s certificate of formation or limited liability company agreement or any Contractual
Obligation of Seller, (ii) result in the creation or imposition of any Lien upon any of Seller’s
properties pursuant to the terms of any such Contractual Obligation, other than this Agreement and
the Purchase and Sale Agreement, or (iii) violate any Applicable Law as then in effect.

 

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     (f) No Proceedings. There is no litigation, proceeding or investigation pending or,
to the best of Seller’s knowledge, threatened, before any Governmental Authority or arbitrator (i)
asserting the invalidity of this Agreement or any other Transaction Document to which Seller is a
party, (ii) seeking to prevent the sale and assignment of the Receivable Interest or the
consummation of any of the other transactions contemplated by this Agreement or any other
Transaction Document, or (iii) seeking any determination or ruling that could reasonably be
expected to have a Material Adverse Effect.

     (g) Bulk Sales Act. No transaction contemplated hereby requires compliance with any
bulk sales act or similar law.

     (h) Government Approvals. No Governmental Action is required for the due execution,
delivery and performance by Seller of this Agreement or any other Transaction Document to which
Seller is a party, except for the filing of the UCC financing statements referred to in the
Existing Receivables Purchase Agreement, all of which were, at the time required in the Existing
Receivables Purchase Agreement, duly made and remain in full force and effect.

     (i) Financial Condition. Since the date of Seller’s formation, there has been no
material adverse change in Seller’s financial condition, business, assets or operations.

     (j) Margin Regulations. The use of all funds obtained by Seller under this
Agreement will not conflict with or contravene any of Regulations T and X promulgated by the
Board of Governors of the Federal Reserve System from time to time.

     (k) Quality of Title. Each Pool Asset is legally and beneficially owned by Seller
free and clear of any Lien (other than any Lien arising solely as the result of any action taken by
the Purchasers or the Administrator); when the Purchasers make a Purchase or Reinvestment, the
Administrator shall have acquired, for the benefit of the Purchasers, a valid and enforceable
perfected first-priority undivided percentage ownership interest to the extent of the Receivable
Interest in each Pool Asset, free and clear of any Lien (other than any Lien arising solely as the
result of any action taken by the Purchasers or the Administrator), enforceable against any
creditor of, or purchaser from, Seller or any Originator; and no financing statement or other
instrument similar in effect covering any Pool Asset is on file in any recording office except such
as may be filed (i) in favor of an Originator in accordance with the Contracts, (ii) in favor of
Seller in accordance with the Purchase and Sale Agreement, or (iii) in favor of the Purchasers or
the Administrator in accordance with this Agreement or in connection with any Lien arising solely
as the result of any action taken by the Purchasers or the Administrator.

     (l) Accurate Reports. No Servicer Report, Monthly Report or other information,
exhibit, financial statement, document, book, record or report furnished or to be furnished by or
on behalf of Seller to the Administrator or the Purchasers in connection with this Agreement or any
Transaction Document was or will be inaccurate in any material respect as of the date it was or
will be dated or (except as otherwise disclosed to the Administrator at such time) as of the date
so furnished, or contained or will contain any material misstatement of fact or omitted or will
omit to state a material fact or any fact necessary to make the statements contained therein not
materially misleading.

 

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     (m) Offices. The principal place of business and chief executive office of Seller are
located at the address of Seller referred to in Section 14.2, and the offices at which
Seller keeps all its books, records and documents evidencing or relating to Pool Receivables are
located at the addresses specified in Schedule 6.1(m) (or at such other locations, notified
to the Administrator in accordance with Section 7.1(f), in jurisdictions where all action
required by Section 8.5 has been taken and completed).

     (n) Lockbox Accounts. The names and addresses of all the Lockbox Banks, together with
the account numbers of the Lockbox Accounts of Seller at such Lockbox Banks, are specified in
Schedule 6.1(n) (or have been notified to the Administrator in accordance with Section
7.3(d)).

     (o) Eligible Receivables. Each Receivable included in the Net Pool Balance as an
Eligible Receivable on the date of any Purchase, Reinvestment or other calculation of Net Pool
Balance shall be an Eligible Receivable on such date.

     (p) Accounting Sale. The Seller has accounted for each sale of undivided percentage
ownership interests in Receivables in its books and financial statements as sales, consistent with
GAAP.

     (q) Credit and Collection Policies. The Seller has complied in all material respects
with the applicable Credit and Collection Policy with regard to each Receivable.

     (r) Legal Name. The Seller’s complete legal name is set forth in the preamble to this
Agreement, and the Seller does not use, and has not during the last six (6) years used, any other
corporate name, trade name, doing business name or fictitious name.

     SECTION 6.2. Representations and Warranties of Servicer. Servicer hereby represents
and warrants as follows:

     (a) Organization and Good Standing. Servicer has been duly organized and is validly
existing as a cooperative corporation in good standing under the laws of the State of Minnesota,
with full power and authority to own its properties and to conduct its business as such properties
are presently owned and such business is presently conducted.

     (b) Due Qualification. Servicer is duly qualified to do business as a foreign
cooperative corporation in good standing, and has obtained all necessary licenses and approvals, in
all jurisdictions in which the ownership or lease of property or the conduct of its business
requires such qualification, licenses or approvals, except where the failure to so qualify or have
such licenses or approvals has not had, and could not reasonably be expected to have, a Material
Adverse Effect.

     (c) Power and Authority; Due Authorization. Servicer (i) has all necessary power,
authority and legal right to (A) execute and deliver this Agreement and the other Transaction
Documents to which it is a party and (B) carry out the terms of the Transaction Documents to which
it is a party and (ii) has duly authorized by all necessary corporate action the execution,
delivery and performance of this Agreement and the other Transaction Documents to which it is a
party.

 

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     (d) Binding Obligations. This Agreement constitutes, and each other Transaction
Document to be signed by Servicer when duly executed and delivered will constitute, a legal, valid
and binding obligation of Servicer, enforceable against Servicer in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of creditors’ rights generally and by general principles of equity,
regardless of whether such enforceability is considered in a proceeding in equity or at law.

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which Servicer is a party and the fulfillment of the terms
hereof and thereof will not (i) conflict with, result in any breach of any of the terms and
provisions of, or constitute (with or without notice or lapse of time or both) a default under
Servicer’s charter, by-laws or any other organizational document or any Contractual Obligation of
Servicer, (ii) result in the creation or imposition of any Lien upon any of Servicer’s properties
pursuant to the terms of any such Contractual Obligation (other than any Lien created pursuant to
the Transaction Documents), or (iii) violate any Applicable Law as then in effect.

     (f) No Proceedings. There is no litigation, proceeding or investigation pending or,
to the best of Servicer’s knowledge, threatened, before any Governmental Authority or arbitrator
(i) asserting the invalidity of this Agreement or any other Transaction Document to which Servicer
is a party, (ii) seeking to prevent the sale and assignment of the Receivable Interest or the
consummation of any of the other transactions contemplated by this Agreement or any other
Transaction Document, or (iii) seeking any determination or ruling that could reasonably be
expected to have a Material Adverse Effect.

     (g) Government Approvals. No Governmental Action is required for the due execution,
delivery and performance by Servicer of this Agreement or any other Transaction Document to which
it is a party, other than the filing of the UCC financing statements referred to in the Existing
Receivables Purchase Agreement, and all filings, if any, necessary to comply with the
Hart-Scott-Rodino Antitrust Act, all of which, at the time required in the Existing Receivables
Purchase Agreement, were duly made and remain in full force and effect.

     (h) Accurate Reports. No Servicer Report, no Monthly Report or other information,
exhibit, financial statement, document, book, record or report furnished or to be furnished by or
on behalf of Servicer to the Administrator or the Purchasers in connection with this Agreement or
any Transaction Document was or will be inaccurate in any material respect as of the date it was or
will be dated or (except as otherwise disclosed to the Administrator at such time) as of the date
so furnished, or contained or will contain any material misstatement of fact or omitted or will
omit to state a material fact or any fact necessary to make the statements contained therein not
materially misleading.

ARTICLE VII. GENERAL COVENANTS

     SECTION 7.1. Affirmative Covenants. From the date hereof until the Final Payout Date:

 

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     (a) Compliance with Laws, Etc. Each of Seller and Servicer will comply in all
material respects with all Applicable Laws, including those with respect to the Pool Receivables
and the related Contracts, except where noncompliance could not reasonably be expected to have a
Material Adverse Effect.

     (b) Preservation of Legal Existence. Each of Seller and Servicer will preserve and
maintain its legal existence, rights, franchises and privileges in the jurisdiction of its
formation, and qualify and remain qualified in good standing as a foreign limited liability
company, corporation, or other business entity, as the case may be, in each jurisdiction where the
failure to preserve and maintain such existence, rights, franchises, privileges and qualification
could reasonably be expected to have a Material Adverse Effect.

     (c) Audits. (i) Each of Seller and Servicer will at any time and from time to time
during regular business hours, on at least five (5) Business Day’s prior notice unless a
Termination Event shall have occurred and be continuing, permit the Administrator or any of its
agents or representatives, (A) to examine and make copies of and abstracts from all books, records
and documents (including, without limitation, computer tapes and disks) in its possession or under
its control relating to Pool Assets, (B) to visit its offices and properties for the purpose of
examining such materials described in clause (i)(A) above, and to discuss matters relating to Pool
Assets or its performance hereunder with any of its officers or employees having knowledge of such
matters, and (C) to verify with officers and employees of Servicer, or directly with any Obligors
(but only with a representative of the Servicer present unless a Termination Event shall have
occurred and be continuing), the existence and amount of the Receivables; and (ii) without limiting
the provisions of clause (i) above, from time to time on request of
Administrator on at least five (5) Business Days prior notice, unless a Termination Event
shall have occurred and be continuing, permit certified public accountants or other auditors
acceptable to the Administrator to conduct, at the expense of Seller or Servicer, as the case may
be, a review of its books and records with respect to the Pool Receivables; provided,
however that unless a Termination Event has occurred and is continuing, Seller and/or
Servicer shall not be obligated to pay for more than two (2) such audits in any calendar year.

     (d) Keeping of Records and Books of Account. Each of Seller and Servicer will
maintain and implement administrative and operating procedures (including, without limitation, an
ability to recreate records evidencing Pool 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 Pool Assets (including, without
limitation, records adequate to permit the daily identification of each new Pool Receivable and all
Collections of and adjustments to each existing Pool Receivable).

     (e) Performance and Compliance with Receivables and Contracts. Seller will, at its
expense, timely and fully perform and comply with (or cause an Originator to perform and comply
with pursuant to the Purchase and Sale Agreement) all provisions, covenants and other promises
required to be observed by it under the Contracts related to the Pool Receivables and all other
agreements related to such Pool Receivables, except where failure to do so would not materially and
adversely affect the validity, enforceability or collectibility of the related Pool Receivable.

 

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     (f) Location of Records. Each of Seller and Servicer will keep its principal place of
business and chief executive office, and the offices where it keeps its records concerning the Pool
Receivables and all related Contracts and all other agreements related to such Pool Receivables
(and all original documents relating thereto), at its addresses referred to in Section 14.2
or, upon thirty (30) days’ prior written notice to the Administrator, at such other locations in
jurisdictions where all action required by Section 8.5 shall have been taken and completed.

     (g) Credit and Collection Policies. Attached as Schedule 7.1(g) are the
Credit and Collection Policies for each of the Originators. Each of Seller and Servicer, at its
own expense, will at all times timely and fully perform and comply in all material respects with,
and LOL agrees to so perform and comply with, each applicable Credit and Collection Policy in
regard to each Pool Receivable and the related Contracts.

     (h) Collections. Each of Seller and Servicer will (i) instruct (A) all Obligors to
cause all Collections (which, for the avoidance of doubt, shall exclude any collections in respect
of any Reconveyed Receivable, retail receivable or other receivable of Seller, any Originator or
any other Person not included in the Receivable Pool) to be sent to either a Lockbox or Lockbox
Account that is the subject of a Lockbox Agreement, unless otherwise requested by the Administrator
pursuant to Section 8.3(c)(ii), in which case the Obligors shall be instructed consistent
with such request, and (B) each Lockbox Bank or lockbox bank to deposit all such Collections
directly into a Lockbox Account that is the subject of a Lockbox Agreement. In the event that
Seller or Servicer receives Collections directly from any Obligor, Seller or Servicer, as the case
may be, shall deposit such Collections in the form received into either the Collection Account or a
Lockbox Account within two (2) Business Days after receipt thereof or, on or after
the Termination Date, immediately upon receipt.

     (i) Quality of Title. Each of Seller and Servicer will take all action necessary or
desirable to establish and maintain a valid and enforceable perfected first-priority undivided
percentage ownership interest in favor of the Administrator, for the benefit of the Purchasers, to
the extent of the Receivable Interest in each Pool Asset, free and clear of any Lien (other than
any Lien arising solely as a result of any action taken by the Purchasers or the Administrator),
enforceable against any creditor of, or purchaser from, Seller or any Originator.

     (j) Bank Equity Interests. (i) Each of Seller and Servicer agrees to purchase such
equity interests in CoBank (“Bank Equity Interests”) as CoBank may from time to time
require in accordance with its bylaws and capital plans as applicable to cooperative borrowers
generally. In connection with the foregoing, each of Seller and Servicer hereby acknowledges
receipt, prior to the execution of this Agreement, of the following with respect to CoBank:

     (A) the bylaws of CoBank;

     (B) a written description of the terms and conditions under which the Bank
Equity Interests are issued; and

     (C) the most recent annual report, and if more recent than the latest annual
report, the latest quarterly report.

 

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     (ii) CoBank reserves the right to sell participations and to make assignments of its
rights and duties hereunder in accordance with the provisions of Article XII on a
non-patronage basis. For the avoidance of doubt, none of the Purchasers (other than CoBank)
will have the benefit of or any rights in any Bank Equity Interests or proceeds thereof.

     SECTION 7.2. Reporting Requirements. From the date hereof until the Final Payout
Date:

     (a) Monthly Reports. Not later than Noon (Denver, Colorado time) on the
20th day of each month (or, if such is not a Business Day, on the next succeeding
Business Day), Servicer will furnish to the Administrator a report (a “Monthly Report”),
duly certified by the principal financial officers of Seller and Servicer, with respect to the
immediately preceding month then ended in the form of, and addressing the matters contained in,
Exhibit 7.2(a) hereto;

     (b) Quarterly Financial Statements. As soon as available and, in any event within
forty-five (45) days after the end of each of the first three (3) quarters of each fiscal year,
Seller will furnish to the Administrator copies of (i) its financial statements, consisting of at
least a balance sheet as at the close of such quarter and statements of earnings for such quarter
and for the period from the beginning of the fiscal year to the close of such quarter, in each case
in conformity with GAAP (except for footnote disclosures), duly certified by the principal
financial officer of Seller and (ii) if not otherwise delivered to the Administrator pursuant to
the Purchase and Sale Agreement, the financial statements of LOL and its Subsidiaries prepared on a
consolidated basis, consisting of at least a balance sheet as at the close of such quarter and
statements of earnings for such quarter and for the period from the beginning of the fiscal year to
the close of such quarter, in each case in conformity with GAAP (except for footnote
disclosures) and fairly presenting the consolidated financial position and results of operations of
LOL and its Subsidiaries for such month and period, duly certified by the principal financial
officer of LOL;

     (c) Annual Financial Statements. As soon as available and, in any event within ninety
(90) days after the end of each fiscal year, Seller will furnish to the Administrator copies of (i)
its financial statements, consisting of at least a balance sheet of Seller for such year and
statements of earnings and cash flows, in each case in conformity with GAAP setting forth in each
case in comparative form corresponding figures from the preceding fiscal year, and (ii) if not
otherwise delivered to the Administrator pursuant to the Purchase and Sale Agreement, the
unqualified audited financial statements of LOL and its Subsidiaries prepared on a consolidated
basis, consisting of at least a balance sheet of LOL and its Subsidiaries for such year and
consolidated and consolidating statements of earnings and cash flows, in each case in conformity
with GAAP, setting forth in each case in comparative form corresponding consolidated figures from
the preceding fiscal year, with all such statements duly certified by independent certified public
accountants of recognized standing selected by LOL, together with copies of any and all letters,
from such accountants to LOL’s Board of Directors or any committee thereof;

     (d) Compliance Certificate. Together with each quarterly and annual financial
statement delivered in accordance with the preceding paragraphs, if not otherwise delivered to the
Administrator pursuant to the Purchase and Sale Agreement, Seller will furnish to the Administrator
the compliance certificate to be delivered to it pursuant to Section 6.1(i)(iii) of the Purchase
and Sale Agreement.

 

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     (e) Termination Events. Each of Seller and Servicer will furnish to the
Administrator, as soon as possible and in any event within two (2) Business Days after an officer
of Seller or Servicer obtains actual knowledge of the occurrence of each Termination Event and each
Unmatured Termination Event, a written statement of the principal financial officer or principal
accounting officer of Seller or Servicer, as the case may be, setting forth details of such event
and the action that Seller or Servicer, as the case may be, proposes to take with respect thereto;

     (f) Material Adverse Effect; Litigation. Each of Seller and Servicer will furnish to
the Administrator, as soon as possible and, in any event within ten (10) Business Days after
Seller’s or LOL’s actual knowledge thereof, written notice of (i) the occurrence of any event or
condition which could reasonably be expected to have a Material Adverse Effect, (ii) without
limiting the foregoing clause (i), any litigation, investigation or proceeding which may exist at
any time which could be reasonably expected to have a Material Adverse Effect and (iii) any
material adverse development in previously disclosed litigation;

     (g) Change in Credit and Collection Policies. Each of Seller and Servicer will
furnish to the Administrator, prior to its effective date, written notice of any material change in
any Credit and Collection Policy which changes shall be reasonably acceptable to the Administrator;

     (h) Change in Name. Seller and Servicer will furnish to the Administrator, at least
thirty (30) days prior to any change in the Seller’s or Servicer’s name, location or any other
change requiring, or that might require, the amendment of UCC financing statements, a notice
setting forth such changes and the effective date thereof; and

     (i) JP Morgan Credit Documents; Other Information.

     (i) To the extent not delivered to the Administrator pursuant to any other provision of
this Agreement or of the Purchase and Sale Agreement, Seller and LOL will, at all times
during which LOL is acting as an Originator or in any other capacity hereunder or under any
Transaction Document, request pursuant to Section 6.1(i)(v) of the Purchase and Sale
Agreement and deliver to the Administrator copies of all financial information and reports
delivered to the agent or the lenders under the JP Morgan Credit Documents by or on behalf
of LOL pursuant to any such JP Morgan Credit Document.

     (ii) Each of Seller and Servicer will, at all times until the Final Payout Date,
furnish to the Administrator such other information with respect to the Receivables or the
condition or operations, financial or otherwise, of the Servicer or Seller or any Originator
as the Administrator may from time to time reasonably request.

     SECTION 7.3. Negative Covenants. From the date hereof until the Final Payout Date:

 

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     (a) Sales, Liens, Etc. Seller will not, except as otherwise provided herein or in the
Purchase and Sale Agreement, sell, assign (by operation of law or otherwise) or otherwise dispose
of, or create or suffer to exist any Lien (except for statutory Liens on all Bank Equity Interests
that Seller may now own or hereafter acquire or be allocated in CoBank) upon or with respect to,
any Pool Asset or any interest therein. For the avoidance of doubt, Feed shall be permitted to
pledge its membership interests in Seller to secure Feed’s obligations in respect of the JP Morgan
Credit Documents.

     (b) Extension or Amendment of Receivables. Neither Servicer nor Seller will, except
as otherwise expressly permitted in Section 8.2(c), extend, amend, defer or otherwise
modify, or permit Servicer to extend, amend or otherwise modify, the terms of any Pool Receivable;
or amend, modify or waive, or permit Servicer to amend, modify or waive, any term or condition of
any Contract related to a Pool Receivable.

     (c) Change in Business or Credit and Collection Policies. Neither Servicer nor Seller
will make any change in the character of its business or in any Credit and Collection Policy, which
change could materially impair the collectibility of any Pool Receivable or otherwise materially
adversely affect the interests or remedies of the Administrator or the Purchasers under this
Agreement or any other Transaction Document.

     (d) Change in Payment Instructions to Obligors. Neither Servicer nor Seller will add
or terminate any bank as a Lockbox Bank or a lockbox bank or any Lockbox Account or lockbox account
from those referenced on Schedule 6.1(n) or make any change, or permit any Lockbox Bank or
lockbox bank to make any change, in its instructions to Obligors regarding payments to be made to
Seller or Servicer or payments to be made to any Lockbox, Lockbox Bank, lockbox or lockbox bank,
unless the Administrator shall have received notice of such addition, termination or change and
duly executed copies of Lockbox Agreements with each new Lockbox Bank or with respect to each new
Lockbox or Lockbox Account, as the case may be, or given its prior written consent, not to be
unreasonably withheld, to such addition, termination or change.

     (e) Mergers, Acquisitions, Sales, etc. Without the prior written consent of the
Administrator and the Required Purchasers, neither the Seller nor the Servicer will enter into any
merger or consolidation with or acquire all or substantially all of the capital stock or assets of
any Person (whether in one transaction or in a series of transactions), except that: (i) any
Person (other than the Seller or any Originator) may merge with and into the Servicer provided that
the Servicer is the surviving entity; or (ii) the Servicer may merge with or acquire all of the
capital stock of or all or substantially all of the assets of any other Person provided that the
Servicer is the surviving entity, provided that, in each such case, prior to and
immediately after giving effect thereto, no Termination Event or Unmatured Termination Event shall
exist.

     (f) Deposits to Special Accounts. Neither Servicer nor Seller will deposit or
otherwise credit, or cause or permit to be so deposited or credited, to any Lockbox or Lockbox
Account cash or cash proceeds (including, without limitation, proceeds of any Reconveyed Receivable
or other receivable of Seller, any Originator or any other Person) other than Collections of Pool
Receivables.

     (g) Other Businesses. Seller will not (i) engage in any business other than the
transactions contemplated by the Transaction Documents; (ii) incur any indebtedness, obligation,
liability or contingent obligation of any kind other than pursuant to this Agreement or the
Purchase and Sale Agreement (including the SPV Purchaser Notes issued pursuant thereto); or (iii)
form any new Subsidiary or make any investments in any other Person (except for investments in
CoBank to the extent required by Section 7.1(k)).

 

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     (h) Certificate of Formation; Purchase and Sale Agreement. Seller will not amend,
modify, terminate, revoke or waive any provision of its certificate of formation, limited liability
company agreement, any SPV Purchaser Note or the Purchase and Sale Agreement.

     (i) Restricted Payments. Seller will not declare or make any dividend or other
distributions to any of its shareholders, redeem or purchase any of its capital stock or make any
loan or other payments to any of its shareholders or Affiliates (other than (1) payments of the
purchase price of Receivables and payments under the SPV Purchaser Notes, each as set forth in the
Purchase and Sale Agreement, (2) the turn-over of Collections of Reconveyed Receivables to Servicer
as set forth in the Purchase and Sale Agreement, (3) payment of the Servicer’s Fee so long as LOL
is the Servicer and (4) payment of reasonable management fees and reimbursement of reasonable
expenses of Servicer incurred in connection with managing Seller, so long as such fees and expenses
are in an amount not in excess of those that would be paid in a similar arms’-length transaction)
unless, in each case, no Termination Event or Unmatured Termination Event has occurred and is
continuing or would result therefrom.

     (j) Change of Name or Location. Seller will not change its name or the location of
its principal place of business or chief executive office or its organizational structure, unless
Seller has given the Administrator at least thirty (30) days’ prior notice thereof, and has taken
all steps necessary or advisable under the UCC to continue the perfection and priority of the
Administrator’s and each Purchaser’s interest in the Pool Assets.

     SECTION 7.4. Separate Existence. Each of Seller and Servicer hereby acknowledges and
agrees that the Purchasers and the Administrator are entering into the transactions contemplated by
this Agreement and the other Transaction Documents in reliance upon Seller’s
identity as a legal entity separate from Feed and the other Originators. Therefore, from and
after the date hereof, each of Seller and LOL shall take all steps specifically required by this
Agreement or reasonably required by the Required Purchasers or the Administrator to continue
Seller’s identity as a separate legal entity and to make it apparent to third Persons that Seller
is an entity with assets and liabilities distinct from those of Feed and the other Originators and
any other Person, and is not a division of Feed, any other Originator or any other Person. Without
in any way limiting the generality of the foregoing and in addition to and consistent with the
other covenants set forth herein, Seller and LOL shall take such actions as shall be required in
order that:

     (a) Seller will be a limited purpose limited liability company whose primary activities are
restricted in its certificate of formation to purchasing or otherwise acquiring from Originators,
owning, holding, granting security interests, or selling interests, in Pool Assets, entering into
agreements for the selling and servicing of the Receivables Pool, and conducting such other
activities as it deems necessary or appropriate to carry out its primary activities. Seller shall
observe all company procedures required by it certificate of organization, its limited liability
company agreement and the limited liability law of the State of Delaware. All distributions of
Seller will be paid and declared in accordance with the law of the State of Delaware;

 

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     (b) Seller shall not engage in any business or activity, or incur any indebtedness or
liability other than as expressly permitted by the Transaction Documents;

     (c) The business and affairs of Seller are and will be managed by or under the direction of
Seller’s Board of Managers. Seller at all times will ensure that the Board of Managers duly
authorizes all company actions requiring authorization by its Board of Managers. When necessary,
Seller will obtain proper authorization from Feed as its sole member for company action. The
officers and managers of Seller shall make decisions with respect to the business and daily
operations of Seller independent of and not dictated by Feed or any other Originator. In addition,
Seller shall ensure that its officers and managers will adhere to all statutes, rules, by-laws or
other obligations regarding conflicts of interest and participation in decision-making by officers
and managers who may have a conflict of interest with respect to the subject matter of the
decision;

     (d) Not fewer than one (1) member of Seller’s Board of Managers shall be an Independent
Manager. The certificate of formation of Seller shall provide that (i) Seller’s Board of Managers
shall not approve, nor take any other action to cause the filing of, a voluntary bankruptcy
petition or a merger or dissolution with respect to Seller unless the Independent Manager shall
approve the taking of such action in writing prior to the taking of such action and (ii) such
provision cannot be amended without the prior written consent of the Independent Manager;

     (e) The Independent Manager shall not at any time serve as a trustee in bankruptcy for Seller,
Feed, any other Originator or any other Affiliate thereof;

     (f) Any employee, consultant or agent of Seller will be compensated from Seller’s funds for
services provided to Seller. Seller will not engage any agents other than its attorneys, auditors
and other professionals, and a Servicer as contemplated by this Agreement for the
Receivables Pool, which Servicer will be fully compensated for its services by payment of the
Servicer’s Fee and a manager, which manager will be fully compensated from Seller’s funds;

     (g) Seller will not incur any material indirect or overhead expenses for items shared with
Feed (or any other Originator or Affiliate thereof) which are not reflected in the Servicer’s Fee.
To the extent, if any, that Seller (or any other Affiliate thereof) shares items of expenses not
reflected in the Servicer’s Fee or the manager’s fee, such as legal, auditing and other
professional services, such expenses will be allocated to the extent practical on the basis of
actual use or the value of services rendered, and otherwise on a basis reasonably related to the
actual use or the value of services rendered, it being understood that Feed shall pay all expenses
relating to the preparation, negotiation, execution and delivery of the Transaction Documents,
including, without limitation, legal and other fees;

     (h) Seller will pay fair market rent for any office space shared with any Originator and a
fair share of any overhead costs. Seller’s operating expenses will not be paid by Feed, any other
Originator or any Affiliate thereof. Seller shall pay from its own separate assets all material
liabilities incurred by it, including the wages and salaries of its officers and all material
administrative expenses. Seller will reimburse the applicable Originator for its allocable
portions of any shared expenses;

 

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     (i) Seller will have its own stationery and an address and telephone number separate and
distinct from the address and telephone number of any of the Originators. Seller will continue to
conduct its business solely in its own name so as not to mislead others as to the identity of
Seller. All oral and written communications, including without limitation letters, invoices,
purchase orders, contracts, statements and applications, shall be made solely in the name of Seller
if related to Seller, or an Originator if related to such Originator, and shall not be made in the
name of Seller if related to an Originator or the name of an Originator if related to Seller;

     (j) Seller maintains and will maintain separate corporate records, documents and books of
accounting from those of Feed, any other Originator or any other entity, and keeps and will keep
correct and complete books and records of account and minutes of the meetings and other proceedings
of its members and the Board of Managers;

     (k) Seller will maintain separate financial statements from the Originators. All financial
statements of LOL, Feed or any Affiliate thereof that are Consolidated to include Seller will
contain appropriate footnotes or will otherwise disclose that (A) the Receivables and Related
Rights have been sold (or contributed) to Seller pursuant to the Purchase and Sale Agreement, and
(B) Seller is a separate entity with creditors who have received security interests in Seller’s
assets;

     (l) Seller’s assets will be maintained in a manner that facilitates their identification and
segregation from those of Feed, any other Originator or any other Affiliate thereof;

     (m) Seller will strictly observe corporate formalities in its dealings with Feed, the other
Originators or any Affiliates thereof, and funds or other assets of Seller will not be commingled
with those of Feed, any other Originator or any Affiliate thereof. Seller shall not maintain joint
bank accounts or other depository accounts to which Feed, any other Originator or
any Affiliate thereof (other than Feed in its capacity as Servicer) has independent access;

     (n) Seller will maintain arms’-length relationships with Feed, each other Originator and any
Affiliate thereof. Any Person that renders or otherwise furnishes services to Seller will be
compensated by Seller at market rates for such services it renders or otherwise furnishes to
Seller. Neither Seller nor Feed will guaranty, assume any obligations of or will hold itself out
to be responsible for the debts of or the decisions or actions respecting the daily business and
affairs of (i) in the case of Seller, Feed or any other Originator and (ii) in the case of Feed,
Seller. Seller and Feed will immediately correct any known misrepresentation with respect to the
foregoing, and they will not operate or purport to operate as an integrated single economic unit
with respect to each other or in their dealing with any other entity; and

     (o) Seller (i) will act solely in its own name and through its duly authorized officers or
agents in the conduct of its businesses, (ii) will take no action which may mislead third parties
as to the separate corporate identities and separate assets and liabilities of each Originator and
Seller, and (iii) will have and utilize its own invoices and letterhead separate from any
Originator.

 

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     Without limiting the foregoing, LOL and Seller agree to take all actions necessary to ensure
that the corporate separateness assumptions, statements and representations set forth in
Exhibit 7.4 attached hereto are and shall at all times remain true and correct.

ARTICLE VIII. ADMINISTRATION AND COLLECTION

     SECTION 8.1. Designation of Servicer and Sub-Servicers.

     (a) LOL as Initial Servicer. The servicing, administering and collection of the Pool
Receivables shall be conducted by the Person designated as Servicer hereunder (the term
“Servicer”, as used herein, shall include any such successor Servicer) from time to time in
accordance with this Section 8.1. Until the Administrator gives to LOL a Successor Notice,
LOL is hereby designated as, and hereby agrees to perform the duties and obligations of, Servicer
pursuant to the terms hereof. By execution hereof, the Servicer hereby designates each of Purina
Mills and Feed, and each of Purina Mills and Feed hereby accepts its designation as, a
Sub-Servicer.

     (b) Successor Notice; Servicer Transfer Events. Upon LOL’s receipt of notice from the
Administrator of the Administrator’s designation of a new Servicer (a “Successor Notice”),
LOL agrees that it will terminate its activities as Servicer hereunder in a manner that the
Administrator reasonably believes will facilitate the transition of the performance of such
activities to the new Servicer, and the new Servicer shall assume each and all of LOL’s obligations
to service and administer such Pool Receivables, on the terms and subject to the conditions herein
set forth, and LOL and each of the Sub-Servicers shall use its best efforts to assist the new
Servicer in assuming such obligations. The Administrator agrees not to give LOL a Successor Notice
until after the occurrence and during the continuance of a Servicer Default or a Termination Event
(any such Servicer Default or Termination Event being herein called a “Servicer Transfer
Event”), in which case such Successor Notice may be given at any time in the Administrator’s
discretion. Any successor Servicer designated by the Administrator pursuant to this Section
8.1 must be either: (1) CoBank or an Affiliate; (2) a recognized commercial entity
that regularly engages in the business of accounts receivable collections and servicing on a
fee basis or (3) so long as LOL does not object for substantial substantive commercial reasons, any
other Person named by CoBank.

     (c) Resignation. LOL acknowledges that the Administrator and the Purchasers have
relied on LOL’s agreement to act as Servicer hereunder in making their decision to execute and
deliver this Agreement. Accordingly, LOL agrees that it will not voluntarily resign as Servicer.

     (d) Subcontracts. Servicer may, with the prior consent of the Administrator,
subcontract with any Person for servicing, administering or collecting the Pool Receivables (each,
a “Sub-Servicer”); provided that (i) such Sub-Servicer shall agree in writing to
perform the duties and obligations of the Servicer pursuant to the terms hereof; (ii) Servicer
shall remain primarily liable for the performance of the duties and obligations of Servicer
pursuant to the terms hereof, (iii) Seller, the Administrator and the Purchasers shall have the
right to look solely to the Servicer for performance, (iv) any such subcontract may be terminated
at the option of the Administrator upon the occurrence of a Servicer

 

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Transfer Event, but in any
event shall be terminated automatically and without necessity of additional notice in the event the
Administrator shall give to LOL a Successor Notice, and (v) Servicer shall, and by its execution
hereof does, unconditionally guaranty the payment and performance of any and all obligations and
liabilities of the Sub-Servicers (or any Sub-Servicer) and any other Person designated by the
Servicer under this Section 8.1(d) for servicing, administering or collecting the Pool
Receivables.

     (e) Servicing Programs. In the event that Servicer uses any software program in
servicing the Pool Receivables that it licenses from a third party, Servicer shall use its
reasonable efforts to obtain whatever licenses or approvals are necessary to allow the
Administrator or the new Servicer to use such program.

     SECTION 8.2. Duties of Servicer.

     (a) Appointment; Duties in General. Each of Seller, the Purchasers and the
Administrator hereby appoints Servicer as its agent, as from time to time designated pursuant to
Section 8.1, to enforce its rights and interests in and under the Pool Assets. Servicer
shall take or cause to be taken all such actions as may be necessary or advisable to collect each
Pool Receivable from time to time, all in accordance with Applicable Law, with reasonable care and
diligence and in accordance with each applicable Credit and Collection Policy.

     (b) Allocation of Collections; Segregation. Servicer shall set aside (or, if
applicable, otherwise provide for its availability on the next Settlement Date) for the account of
Seller and the Purchasers their respective Pro Rata Shares of the Collections of Pool Receivables
in accordance with Section 1.3. Servicer shall segregate and deposit in immediately
available funds into the Administrator’s Account, the Purchasers’ Share of Collections (to the
extent required to be deposited therein pursuant to Section 1.3), not later than the second
(2nd) Business Day following receipt by Servicer of such Collections.

     (c) Modification of Receivables. So long as no Termination Event or Unmatured
Termination Event shall have occurred and be continuing, Servicer may (i) in accordance with any
applicable Credit and Collection Policy or with the Administrator’s prior written consent, extend
the time for payment of any Defaulted Receivable (but in no event to a date later than
sixty (60) days from the date of the original invoice) provided that the aggregate
Unpaid Balance of all Pool Receivables that have been extended during any Settlement Period, shall
not exceed two percent (2%) of the aggregate Unpaid Balance of all Pool Receivables as at the
Cut-Off Date for such Settlement Period and (ii) adjust the Unpaid Balance of any Receivable to
reflect the reductions or cancellations described in the first sentence of Section 3.2(a).

     (d) Documents and Records. Seller shall deliver to Servicer, and Servicer shall hold
in trust for Seller and the Purchasers in accordance with their respective interests, all
documents, instruments and records (including, without limitation, computer tapes or disks) that
evidence or relate to Pool Receivables.

     (e) Servicer Reports; Certain Duties to Seller. Servicer shall prepare and timely
deliver to the Administrator the Servicer Reports and the Monthly Reports in accordance with
Sections 3.1(a) and 7.2(a), respectively. In addition, Servicer shall, as soon as
practicable

 

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following receipt, turn over to Seller the collections of any receivable which is not a
Pool Receivable. Seller hereby directs Servicer to pay any collections of any Reconveyed
Receivable directly to the related Originator to be applied pursuant to the Purchase and Sale
Agreement. Servicer shall, as soon as practicable upon demand, deliver to Seller copies of
documents, instruments and records in its possession that evidence or relate to Pool Receivables.

     (f) Termination. Servicer’s authorization under this Agreement shall terminate upon
the Final Payout Date.

     (g) Power of Attorney. Seller hereby grants to Servicer an irrevocable power of
attorney, with full power of substitution, coupled with an interest, to take in the name of Seller
all steps which are necessary or advisable to endorse, negotiate or otherwise realize on any
writing or other right of any kind held or transmitted by Seller or transmitted or received by the
Purchasers (whether or not from Seller) in connection with any Receivable. Notwithstanding
anything to the contrary contained herein, the Administrator may direct the Servicer to commence or
settle any legal action to enforce collection of any Pool Receivable or to foreclose upon or
repossess any Related Security; provided, however, that no such direction may be
given unless either (i) a Termination Event has occurred or (ii) the Administrator believes is good
faith that failure to commence, settle, or effect such legal action, foreclosure or repossession,
could adversely affect Receivables constituting a material portion of the Pool Receivables.

     (h) Servicer Default. The occurrence of either of the following shall constitute a
“Servicer Default”:

     (i) At any time while LOL is acting as Servicer hereunder, LOL shall fail to comply
with any of the financial covenants in the JP Morgan Credit Documents on or as of any date
on or as of which such compliance is required under the applicable JP Morgan Credit
Document(s), in each case as in effect on the Initial Purchase Date; or

     (ii) An event of default shall occur under and continue to exist beyond any grace or
cure period applicable thereto under any instrument or agreement evidencing, securing or
providing for the issuance of indebtedness for borrowed money in excess of $10,000,000 (then
outstanding) of, or guaranteed by, LOL or any Subsidiary, which event of default is either a
payment default or has resulted in acceleration of the maturity of
such indebtedness; or any default under any agreement or instrument relating to the
purchase of receivables at any one time outstanding in excess of $10,000,000 of LOL or any
Subsidiary thereof (other than this Agreement), if the effect of such default is to
terminate, or permit the termination of, the commitment of any party to such agreement or
instrument to purchase receivables or the right of LOL or such Subsidiary to reinvest in
receivables the principal amount paid by any party to such agreement or instrument for an
interest in receivables; or if Servicer (or any Sub-Servicer) shall fail to make any payment
in respect of any Indebtedness of Servicer (or any Sub-Servicer), as the case may be, having
a principal amount in excess of $10,000,000 as of the date of such failure, and such failure
to make such payment shall continue for more than the grace period, if any, applicable
thereto or otherwise shall entitle the holder of such Indebtedness to accelerate the
Servicer’s (or Sub-Servicer’s) obligations thereunder; or

 

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     (iii) An event or circumstance which would give rise to a Termination Event (as opposed
to an Unmatured Termination Event) shall have occurred and be continuing, regardless of
whether a Termination Event is declared.

     SECTION 8.3. Rights of Administrator.

     (a) Notice to Obligors. At any time after the occurrence and during the continuance
of a Termination Event or a LOL Downgrade, the Administrator may notify the Obligors of Pool
Receivables, or any of them, of the ownership of the Receivable Interest by the Administrator, for
the benefit of the Purchasers.

     (b) Notice to Lockbox Banks. At any time following the earlier to occur of (i) the
occurrence and continuance of a Termination Event, and (ii) the commencement of the Termination
Period, the Administrator is hereby authorized to give notice to the Lockbox Banks, as provided in
the Lockbox Agreements, of the transfer to the Administrator of dominion and control over the
Lockboxes and Lockbox Accounts. Seller hereby transfers to the Administrator the exclusive
dominion and control over such Lockboxes and Lockbox Accounts, and shall take any further action
that the Administrator may reasonably request to effect such transfer. Any proceeds of Pool
Receivables received by the Seller, Servicer or any Sub-Servicer thereafter shall be sent
immediately to the Administrator.

     (c) Rights on Servicer Transfer Event. At any time following the designation of a
Servicer other than LOL or another Originator pursuant to Section 8.1 or during the
occurrence and continuance of a LOL Downgrade:

     (i) The Administrator may direct the Obligors of Pool Receivables, or any of them, to
pay all amounts payable under any Pool Receivable directly to the Administrator or its
designee;

     (ii) Pursuant to Section 8.2(d)(ii) of the Purchase and Sale Agreement, the
Administrator may instruct the Originators to give notice of such ownership to each said
Obligor and direct that payments be made directly to the Administrator or its designee;

     (iii) LOL and Seller shall, at the Administrator’s request, (A) assemble all of the
documents, instruments and other records (including, without limitation, computer
programs (subject to licensing restrictions), tapes and disks which evidence the Pool
Receivables and the related Contracts and Related Security, or which are otherwise necessary
or desirable to collect such Pool Receivables and make the same available to the
Administrator at a place selected by the Administrator, and (B) segregate all cash, checks
and other instruments received by it from time to time constituting Collections in a manner
acceptable to the Administrator and promptly upon receipt, remit all such cash, checks and
instruments, duly endorsed or with duly executed instruments of transfer, to the
Administrator; and

     (iv) Seller and each of the Purchasers hereby authorizes the Administrator, and grants
to the Administrator an irrevocable power of attorney, to take any and all steps in Seller’s
name and on behalf of Seller and the Purchasers which are necessary or

 

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desirable, in the
reasonable determination of the Administrator, to collect all amounts due under any and all
Pool Receivables including, without limitation, endorsing Seller’s name on checks and other
instruments representing Collections and enforcing such Pool Receivables and the related
Contracts.

     SECTION 8.4. Responsibilities of Seller. Anything herein to the contrary
notwithstanding:

     (a) Contracts. Seller shall perform, or cause an Originator to perform under the
Purchase and Sale Agreement, all of its obligations under the Contracts related to the Pool
Receivables and under the other agreements related thereto to the same extent as if the Receivable
Interest had not been sold hereunder, and the exercise by the Administrator or its designee of its
rights hereunder shall not relieve Seller from such obligations.

     (b) Limitation of Liability. Neither the Administrator nor any of the Purchasers
shall have any obligation or liability with respect to any Pool Receivables, the related Contracts
or any other related agreements, nor shall any of them be obligated to perform any of the
obligations of Seller or any Originator thereunder.

     SECTION 8.5. Further Action Evidencing Purchases and Reinvestments.

     (a) Further Assurances. The Seller shall, at its expense, take all action necessary
or desirable to establish and maintain, free and clear of any Lien, a valid and enforceable
first-priority perfected undivided percentage ownership interest, to the extent of the Receivable
Interest, in the Pool Assets in favor of the Administrator, for the benefit of the Purchasers.
Without limiting the generality of the foregoing, Seller will, upon the request of the
Administrator or its designee, execute and file such financing or continuation statements, or
amendments thereto or assignments thereof, and such other instruments or notices, as may be
necessary or appropriate to evidence or perfect the interest described in the previous sentence.

     (b) Data Processing Records. Each of LOL and Seller will mark its master data
processing records evidencing the Pool Receivables with a legend, acceptable to the Administrator,
evidencing that the Receivable Interest has been sold in accordance with this Agreement.

     (c) Additional Financing Statements; Performance by Administrator. Seller hereby
authorizes the Administrator or its designee to file one or more financing or continuation
statements, and amendments thereto and assignments thereof, relative to all or any portion of the
Receivable Interest now existing or hereafter arising in the name of Seller. If Seller or LOL
fails to perform any of its agreements or obligations under this Agreement, the Administrator or
its designee may (but shall not be required to), after notice to Seller or LOL and a reasonable
opportunity for Seller or LOL to perform (unless immediate action is reasonably required to protect
the interests of the Administrator or the Purchasers), itself perform, or cause performance of,
such agreement or obligation, and the expenses of the Administrator or its designee incurred in
connection therewith shall be payable by Seller or LOL as the case may be.

 

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     (d) Continuation Statements; Opinion. Without limiting the generality of subsection
(c), Seller will, not earlier than six (6) months and not later than three (3) months prior to the
fifth (5th) anniversary of the date of filing of each financing statement filed pursuant
to this Agreement or the Existing Receivables Purchase Agreement or in connection with any Purchase
hereunder or thereunder, unless the Final Payout Date shall have occurred: (i) execute and deliver
and file or cause to be filed an appropriate continuation statement with respect to such financing
statement; and (ii) deliver or cause to be delivered to the Administrator an opinion of the counsel
for Seller, in form and substance reasonably satisfactory to the Administrator, confirming and
updating the opinion delivered pursuant to Section 5.1(f) with respect to perfection and
otherwise to an enforceable and perfected ownership or security interest, subject to no other liens
of record except as provided herein or otherwise permitted hereunder.

     SECTION 8.6. Application of Collections. Any payment by an Obligor in respect of any
indebtedness owed by it to Seller shall, except as otherwise specified by such Obligor, required by
the underlying Contract or law or unless the Administrator instructs otherwise, be applied, first,
as a Collection of any Pool Receivable or Receivables then outstanding of such Obligor in the order
of the age of such Pool Receivables, starting with the oldest of such Pool Receivable and, second,
to any other indebtedness of such Obligor.

ARTICLE IX. SECURITY INTEREST

     SECTION 9.1. Grant of Security Interest. To secure all obligations of Seller owing to
the Secured Parties arising in connection with this Agreement and each other Transaction Document,
whether now or hereafter existing, due or to become due, direct or indirect, or absolute or
contingent, including, without limitation, all Indemnified Amounts, payments on account of
Collections of Pool Receivables received or deemed to be received and fees due under the
Transaction Documents, Seller hereby assigns and grants to Administrator, for the benefit of the
Secured Parties, a security interest in all of Seller’s right, title and interest (including
specifically, but without limitation, any undivided interest retained by Seller hereunder) now or
hereafter existing in, to and under all the Pool Assets. In connection with the foregoing, Seller
hereby acknowledges and agrees that Administrator shall be entitled at any time to enforce the
Seller’s rights under the Purchase and Sale Agreement.

     SECTION 9.2. Further Assurances. The provisions of Section 8.5 shall apply to
the security interest granted under Section 9.1 as well as to the Purchases, Reinvestments
and the Receivable Interest hereunder.

     SECTION 9.3. Remedies. Upon the occurrence and during the continuance of a
Termination Event, the Administrator and the Purchasers shall have, with respect to the collateral
granted pursuant to Section 9.1, and in addition to all other rights and remedies available
to the Purchasers or the Administrator under this Agreement, each of the other Transaction
Documents or other Applicable Law, all the rights and remedies of a secured party upon default
under the UCC.

ARTICLE X. TERMINATION EVENTS

     SECTION 10.1. Termination Events. The following events shall be “Termination
Events” hereunder:

 

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     (a) (i) Servicer (if LOL or any Affiliate is the Servicer) or any Sub-Servicer shall fail to
perform or observe any material term, covenant or agreement that is an obligation of Servicer
hereunder (other than as referred to in clause (ii) next following) and such failure shall remain
unremedied for more than seven (7) Business Days, or (ii) Seller or Servicer (if LOL or its
Affiliate is Servicer) shall fail to make any payment of Capital or Yield within two (2) Business
Days, or, in the case of any other payment or deposit required to be made by it hereunder, within
five (5) Business Days, of when first due and payable hereunder; or

     (b) Any representation or warranty made or deemed to be made by Seller, LOL, individually or
in its capacity as Servicer, or any other Originator, under or in connection with this Agreement,
any other Transaction Document, or any Servicer Report, Monthly Report or other information or
report delivered pursuant hereto shall prove to have been false or incorrect in any material
respect when made and, but only to the extent such breached representation or warranty is
susceptible to cure, shall remain uncured for ten (10) Business Days; or

     (c) Seller, LOL (other than in its capacity as Servicer) or any other Originator shall fail to
perform or observe any other term, covenant or agreement contained in (i) this Agreement; (ii) any
other Transaction Document or (iii) any other material agreement with, or other undertaking in
favor of, CoBank or any of the Purchasers, to be performed or observed on the part of Seller, LOL
or such Originator (as the case may be) and any such failure shall remain unremedied for fifteen
(15) Business Days after written notice thereof shall have been given by the Administrator, CoBank
or such Purchaser, as the case may be, to the applicable non-performing party (but, in the case of
clause (iii) only, only to the extent such failure would result in the occurrence of a Material
Adverse Effect); or

     (d) Seller or any Originator shall fail to make any payment in respect of any Indebtedness
having an aggregate principal (or equivalent) amount in excess of $5,000,000, when and as the same
shall become due and payable (giving effect to any applicable grace or cure periods); or

     (e) Any event or condition occurs that results in any Indebtedness of Seller or any Originator
having an aggregate principal (or equivalent) amount in excess of $5,000,000 becoming due prior to
its scheduled maturity or that requires the prepayment, repurchase, redemption or defeasance
thereof, prior to its scheduled maturity; or

     (f) There shall occur a Servicer Default; or

     (g) This Agreement or any Purchase or any Reinvestment pursuant to this Agreement shall for
any reason (other than pursuant to the terms hereof) (i) cease to create, or the Receivable
Interest shall for any reason cease to be, a valid and enforceable perfected undivided percentage
ownership interest, to the extent of the Receivable Interest, in each Pool Asset, free and clear of
any other Lien or (ii) cease to create with respect to the items described in Section 9.1,
or the interest of the Administrator (for the benefit of the Purchasers) with respect to such items
shall cease to be, a valid and enforceable first-priority perfected security interest, free and
clear of any other Lien; or

 

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     (h) An Event of Bankruptcy shall have occurred and remain continuing with respect to Seller,
LOL, or any other Originator; or

     (i) The 12-month rolling average Sales Based Dilution Ratio for any Cut-Off Date exceeds ten
percent (10%); or

     (j) The 12-month rolling average Sales Based Default Ratio for any Cut-Off Date exceeds six
percent (6%); or

     (k) The monthly Sales Based Default Ratio for any Cut-Off Date exceeds ten percent (10%); or

     (l) On any Settlement Date or any Purchase Date, after giving effect to the payments or
distributions made (or, in the case of any Payment Date, after giving pro forma effect to such
payments or distributions to be made as of the next succeeding Settlement Date, as specified in
Section 3.1(c)) under Section 3.1(c), the Receivable Interest exceeds the
Allocation Limit; or

     (m) The 12-month rolling average Sales Based Delinquency Ratio for any Cut-Off Date is greater
than six percent (6%); or

     (n) The monthly Sales Based Delinquency Ratio for any Cut-Off Date exceeds ten percent (10%);
or

     (o) There shall remain in force, undischarged, unsatisfied and unstayed, for more than five
(5) Business Days with respect to the Seller or thirty (30) days with respect to LOL or any other
Originator, as applicable, whether or not consecutive, any final judgment against the Seller, LOL
or any other Originator, or any of their respective properties or assets, that, individually or
taken together with all other final judgments so undischarged, unsatisfied and unstayed against any
such Person or Persons or any of their respective assets or properties has caused, or has a
reasonable possibility of causing, a Material Adverse Effect; or

     (p) (a) LOL shall cease to own at least eighty percent (80%) of the equity interests in Feed,
(b) Feed shall cease to own at least eighty percent (80%) of the equity interests in Purina, (c)
Feed shall cease to own one hundred percent (100%) of the equity interests in Seller, or (d) LOL is
subject to a Change in Control; or

     (q) The Internal Revenue Service shall file notice of a Lien pursuant to Section 6323 of the
Internal Revenue Code with regard to any of the assets of Seller, LOL or any other Originator and
such Lien shall not have been stayed or bonded in a manner satisfactory in the
sole discretion of the Administrator, or released within ten (10) Business Days, or the
Pension Benefit Guaranty Corporation shall file notice of a Lien pursuant to Section 4068 of the
Employee Retirement Income Security Act of 1974 with regard to any of the assets of Seller, LOL or
any other Originator and such Lien shall not have been released within five (5) Business Days; or

     (r) There shall exist any other event or occurrence that has caused, or could reasonably be
anticipated to cause, a Material Adverse Effect; or

 

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     (s) Seller’s net worth is less than $1,000,000 at any time; or

     (t) The Credit Agreement described in the definition of “JP Morgan Credit Documents,” or any
replacement credit facility acceptable to the Administrator, shall have been terminated or shall
otherwise cease to be in full force and effect; or

     (u) Any Originator elects at any time not to sell or contribute Receivables to Seller in
accordance with Section 1.2(b) of the Purchase and Sale Agreement.

     SECTION 10.2. Remedies.

     (a) Optional Liquidation. Upon the occurrence of a Termination Event (other than a
Termination Event described in subsection (h) of Section 10.1), the Administrator shall, at
the request, or may with the consent, of the Required Purchasers, by notice to Seller, declare the
Purchase Termination Date to have occurred and the Termination Period to have commenced.

     (b) Automatic Liquidation. Upon the occurrence of a Termination Event described in
subsection (h) of Section 10.1, the Purchase Termination Date shall occur and the
Termination Period shall commence automatically.

     (c) Additional Remedies. Upon any Purchase Termination Date occurring pursuant to
this Section 10.2, no Purchases or Reinvestments thereafter will be made, and the
Administrator and each of the Purchasers shall have, in addition to all other rights and remedies
under this Agreement or otherwise, all other rights and remedies provided under the UCC of each
applicable jurisdiction and other Applicable Law, which rights shall be cumulative.

ARTICLE XI. THE ADMINISTRATOR

     SECTION 11.1. Authorization.

     (a) The Administrator is authorized to take such action on behalf of each of the Purchasers
and to exercise all such powers as are hereunder and under any of the other Transaction Documents
and any related documents delegated to the Administrator, together with such powers as are
reasonably incident thereto; provided that no duties or responsibilities not expressly
assumed herein or therein shall be implied to have been assumed by the Administrator. In addition
to the foregoing, the Administrator is hereby expressly authorized and directed by each of the
Purchasers to enter into the Intercreditor Agreement for and on behalf of such Purchaser.

     (b) The relationship between the Administrator and each of the Purchasers is that of an
independent contractor. The use of the term “Administrator” is for convenience only and is used to
describe, as a form of convention, the independent contractual relationship between the
Administrator and each of the Purchasers. Nothing contained in this Agreement nor the other
Transaction Documents shall be construed to create an agency, trust or other fiduciary relationship
between the Administrator and any of the Purchasers.

 

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     (c) As an independent contractor empowered by the Purchasers to exercise certain rights and
perform certain duties and responsibilities hereunder and under the other Transaction Documents,
the Administrator is nevertheless a “representative” of the Purchasers, as that term is defined in
Article 1 of the UCC, for purposes of actions for the benefit of the Purchasers and the
Administrator with respect to all collateral security and other matters contemplated by the
Transaction Documents that are or may be governed by or subject to the UCC. Such actions include
the designation of the Administrator as “secured party”, “mortgagee” or the like on all financing
statements and other documents and instruments, whether recorded or otherwise, relating to the
attachment, perfection, priority or enforcement of any security interests intended to secure the
payment or performance of any of the obligations arising under the Transaction Documents, all for
the benefit of the Purchasers and the Administrator.

     (d) The Administrator may exercise its powers and execute its duties by or through employees
or agents and shall be entitled to take, and to rely on, advice of counsel concerning all matters
pertaining to its rights and duties under this Agreement and the other Transaction Documents. The
Administrator may utilize the services of such Persons as the Administrator in its sole discretion
may reasonably determine, and all reasonable fees and expenses of any such Persons shall be paid by
the Seller as contemplated by Section 14.5 hereof.

     SECTION 11.2. Administrator’s Reliance, Etc. The Administrator and its directors,
officers, agents or employees shall not be liable for any action taken or omitted to be taken by it
or them under or in connection with the Transaction Documents (including, without limitation, the
servicing, administering or collecting of Pool Receivables as Servicer pursuant to Section
8.1), except for its or their own gross negligence or willful misconduct. Without limiting the
generality of the foregoing, the Administrator: (a) may consult with legal counsel (including
counsel for Seller), independent certified public accountants and other experts selected by it and
shall not be liable for any action taken or omitted to be taken in good faith by it in accordance
with the advice of such counsel, accountants or experts; (b) makes no warranty or representation to
the Purchasers or any other holder of any interest in Pool Receivables and shall not be responsible
to the Purchasers or any such other holder for any statements, warranties or representations made
in or in connection with any Transaction Document; (c) shall not have any duty to ascertain or to
inquire as to the performance or observance of any of the terms, covenants or conditions of any
Transaction Document on the part of Seller, LOL, or any other Originator or to inspect the property
(including the books and records) of Seller, LOL, or any other Originator; (d) shall not be
responsible to the Purchasers or any other holder of any interest in Pool Receivables for the due
execution, legality, validity, enforceability, genuineness, sufficiency or value of any Transaction
Document; and (e) shall incur no liability under or in respect of this Agreement by acting upon any
notice (including notice by telephone), consent, certificate or other instrument or writing (which
may be by facsimile or telex) believed by it to be genuine and signed or sent by the proper party
or parties.

     SECTION 11.3. CoBank and Affiliates. Each of Seller and LOL hereby acknowledges and
agrees that CoBank and any of its Affiliates may generally engage in any kind of business with
Seller, LOL, any other Originator or any Obligor, any of their respective Affiliates and any Person
who may do business with or own securities of Seller, LOL, any other Originator or any Obligor or
any of their respective Affiliates, all as if CoBank were not the Administrator, and without any
duty to account therefor to the Purchasers or any other holder of an interest in Pool Receivables.

 

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ARTICLE XII. ASSIGNMENT OF AND PARTICIPATIONS IN PURCHASERS’ INTERESTS

     SECTION 12.1. Restrictions on Assignments; Impact on Patronage.

     (a) (i) Neither Seller nor LOL may assign its rights, or delegate its duties, hereunder or any
interest herein without the prior written consent of the Administrator. No Purchaser may assign
its rights hereunder (although it may delegate its duties hereunder as expressly indicated herein)
or the Receivable Interest (or any portion thereof) to any Person without the prior written consent
of Seller, which consent shall not be unreasonably withheld or delayed; provided,
however, that upon written notice to Seller, the Servicer and the Administrator, any
Purchaser may assign all of its rights and interests in the Transaction Documents, together with
all its interest in the Receivable Interest, to (A) any other Purchaser or any Affiliate thereof,
or (B) to any “bankruptcy remote,” special purpose entity the business of which is administered by
any other Purchaser or any Affiliate thereof, so long as such entity has the ability to fund the
Receivable Interest. If any Purchaser notifies Seller and LOL that it has decided to assign its
rights and delegate its duties hereunder, in compliance with the foregoing provisions of this
subsection (a)(i), Seller and LOL hereby agree to enter into such amendments hereto and to the
other Transaction Documents as the Administrator may reasonably request to reflect such assignment
and delegation.

     (ii) With respect to any patronage payments, each of Seller and the Servicer
acknowledges and agrees that:

     (A) only that portion of the Capital represented by CoBank’s individual Pro
Rata Share that is retained by CoBank for its own account is entitled to patronage
distributions in accordance with CoBank’s bylaws and its practices and procedures
related to patronage distributions; and

     (B) any patronage, or similar, payments to which Seller or the Servicer is
entitled on account of its ownership of Bank Equity Interests or otherwise will not
be based on any portion of CoBank’s interest in the Capital in which CoBank has at
any time granted a participation interest.

     (b) Seller agrees to advise the Administrator, within ten (10) Business Days after written
notice to Seller, of any proposed assignment by any Purchaser of the Receivable Interest (or any
portion thereof) not otherwise permitted under Section 12.1(a) of Seller’s consent or
withholding of such assignment and, if Seller does not consent, the reasons therefor. If Seller
does not respond in such time period, Seller shall be deemed to have consented to such assignment.
All of the aforementioned assignments shall be upon such terms and conditions as
such Purchaser and the relevant assignee may mutually agree.

     SECTION 12.2. Rights of Assignee. Upon the assignment by any Purchaser in accordance
with this Article XII, the assignee receiving such assignment shall have all of the rights
of a Purchaser with respect to the Transaction Documents and the Receivable Interest (or such
portion thereof as has been assigned).

 

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     SECTION 12.3. Participations.

     (a) Each Purchaser may sell participations to one or more Persons in all or a portion of such
Purchaser’s rights and obligations under this Agreement and the other Transaction Documents;
provided that any such sale or participation shall not affect the rights and duties of the
selling Purchaser hereunder.

     (b) All Persons (“Voting Participants”) who (i) have directly, purchased a
participation interest in the amount of $10,000,000.00 or more in a Purchaser’s Pro Rata Share of
the Receivables Interest and (ii) have been designated in writing to Seller, Servicer and the
Administrator as having such entitlement (as evidenced by their name and dollar participation
amount appearing on Schedule 12.3(b) hereto, as such Schedule 12.3(b) may be
modified by the Administrator from time to time), shall be entitled to vote (and such Purchaser’s
voting rights shall be correspondingly reduced), on a dollar basis, as if such participant were a
Purchaser, on any matter requiring or allowing a Purchaser to provide or withhold its consent, or
to otherwise vote on any proposed action.

ARTICLE XIII. INDEMNIFICATION

     SECTION 13.1. Indemnities.

     (a) General Indemnity by Seller. Without limiting any other rights that any such
Person may have hereunder or under Applicable Law, Seller hereby agrees to indemnify the
Administrator, each of the Purchasers, each of their respective Affiliates, and all successors,
permitted transferees, participants and permitted assigns and all officers, directors,
shareholders, controlling persons, employees and agents of any of the foregoing (each an
“Indemnified Party”), within thirty (30) days after demand, from and against any and all
damages, losses, claims, liabilities and related costs and expenses, including reasonable
attorneys’ fees 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
relating to the Transaction Documents or the ownership or funding of the Receivable Interest or in
respect of any Receivable or any Contract, excluding, however, (i) Indemnified
Amounts to the extent resulting from gross negligence or willful misconduct on the part of such
Indemnified Party or (ii) Indemnified Amounts that have the effect of recourse for non-payment of
the Pool Receivables due to credit problems of the Obligors; provided that Seller shall be
liable to each Indemnified Party for all representations, warranties, covenants and indemnities
made by Seller pursuant to the terms of this Agreement. Without limiting the foregoing, Seller
shall indemnify each Indemnified Party for Indemnified Amounts arising out of or relating to:

     (xi) the transfer by Seller of any interest in any Pool Receivable other than the
transfer of a Receivable Interest to the Administrator, for the benefit of the Purchasers,
pursuant to this Agreement and the grant of a security interest to the Administrator
pursuant to Section 9.1;

 

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     (xii) any representation or warranty made by Seller under or in connection with any
Transaction Document, any Servicer Report, any Monthly Report or any other information or
report delivered by or on behalf of Seller pursuant hereto, which shall have been false,
incorrect or misleading in any respect when made or deemed made;

     (xiii) the failure by Seller to comply with any Applicable Law, or the nonconformity of
any Pool Receivable or the related Contract with any Applicable Law;

     (xiv) the failure to vest and maintain vested in the Administrator, for the benefit of
the Purchasers, an undivided percentage ownership interest, to the extent of the Receivable
Interest, in the Pool Assets, free and clear of any Lien, other than a Lien arising solely
as a result of an act of any Purchaser or the Administrator, whether existing at the time of
any Purchase or Reinvestment of such Receivable Interest or at any time thereafter;

     (xv) any failure to file, 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 any Pool Assets, whether at the time of any Purchase or Reinvestment or
at any time thereafter;

     (xvi) any dispute, claim, offset or defense (other than discharge in bankruptcy or
payment) of the Obligor to the payment of any Receivable included in the Net Pool Balance
(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
services related to such Receivable or the furnishing or failure to furnish such merchandise
or services;

     (xvii) any failure of Seller to perform its duties or obligations in accordance with
this Agreement or any Transaction Document;

     (xviii) any products liability claim arising out of or in connection with merchandise
or services that are the subject of any Pool Receivable;

     (xix) any litigation, proceedings or investigation against Seller; or

     (xx) any tax or governmental fee or charge (but not including taxes upon or measured by
net income or representing a franchise or unincorporated business tax of such Person), all
interest and penalties thereon or with respect thereto, and all out-of-pocket costs and
expenses, including the reasonable fees and expenses of counsel in defending against the
same, which may arise by reason of the purchase or ownership of any Receivable Interest, or
any other interest in the Pool Receivables or in any goods which secure any such Pool
Receivables.

     (b) Indemnity by Servicer. Without limiting any other rights that any such Person may
have hereunder or under Applicable Law, Servicer hereby agrees to indemnify each Indemnified Party,
within thirty (30) days after demand, from and against any and all Indemnified Amounts awarded
against or incurred by any of them arising out of or relating to (i) any representation or warranty
made by Servicer under or in connection with any Transaction Document, any Servicer Report, any
Monthly Report or any other information or report
delivered by or on

 

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behalf of Servicer pursuant hereto, which shall have been false, incorrect
or misleading in any material respect when made or deemed made, (ii) the failure by Servicer to
comply with any Applicable Law, (iii) the failure of Servicer to perform its duties or obligations
in accordance with this Agreement or any Transaction Document or (iv) the commingling by Servicer
or any Sub-Servicer of any Collections with other funds.

     (c) After-Tax Basis. Indemnification hereunder shall be in an amount necessary to
make the Indemnified Party whole after taking into account any tax consequences to the Indemnified
Party attributable to the receipt of the indemnity provided hereunder, including the effect of such
tax or refund on the amount of tax measured by net income or profits which is or was payable by the
Indemnified Party.

     (d) Contribution. If for any reason the indemnification provided above in this
Section 13.1 is unavailable to an Indemnified Party or is insufficient to hold an
Indemnified Party harmless, then Seller or Servicer, as the case may be, shall contribute to the
amount paid or payable by such Indemnified Party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect not only the relative benefits received
by such Indemnified Party on the one hand and Seller or Servicer, as the case may be, on the other
hand but also the relative fault of such Indemnified Party as well as any other relevant equitable
considerations.

ARTICLE XIV. MISCELLANEOUS

     SECTION 14.1. Amendments, Etc. No amendment or waiver of any provision of this
Agreement nor consent to any departure by any party therefrom shall in any event be effective
unless the same shall be in writing and signed by (a) Seller, the Administrator, Servicer and the
Required Purchasers (with respect to an amendment) or (b) the Administrator and the Required
Purchasers (with respect to a waiver or consent by them) or Seller and Servicer (with respect to a
waiver or consent by them), as the case may be, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given; provided, that
no waiver of a Termination Event shall be effective unless in writing and signed by the
Administrator and the Required Purchasers. Notwithstanding the foregoing or any other provision of
this Agreement or any Transaction Document to the contrary, no amendment or waiver of any provision
of this Agreement, nor any consent to any departure by any party therefrom, that would, or the
effect of which would be to, (x) other than as provided in Section 1.6, increase the
Facility Limit or otherwise increase the amount of, or extend the duration of (other than as the
result of any waiver duly made under this Agreement with respect to any Termination Event or other
event or circumstance that would otherwise have given rise to the Purchase Termination Date), any
Purchaser’s commitment to make any Purchase hereunder; (y) decrease the Yield Rate or the amount of
any Fees payable to any Purchaser under the Transaction Documents or (z) modify the definition of,
or otherwise limit or alter the matters subject to approval by, the Required Purchasers, shall be
effective unless consented to in writing by each Purchaser affected thereby.

     SECTION 14.2. Notices, Etc. All notices and other communications provided for
hereunder shall, unless otherwise stated herein, be in writing (including facsimile communication)
and shall be personally delivered or sent by overnight delivery by a nationally recognized
overnight delivery service, by courier, or by facsimile (confirmed with a copy sent by overnight
delivery), to the intended party at the address

 

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or
facsimile number of such party set forth under its name on Schedule 14.2 or at such other address or facsimile number as
shall be designated by such party in a written notice to the other parties hereto. All such
notices and communications shall be effective, (a) if personally delivered or sent by express mail
or courier, when received, and (b) if transmitted by facsimile, one-half Business Day after being
sent, receipt confirmed by telephone or electronic means.

     SECTION 14.3. No Waiver; Remedies. No failure on the part of the Administrator, any
Affected Party, any Indemnified Party, any Purchaser or any other holder of the Receivable Interest
(or any portion thereof) to exercise, and no delay in exercising, any right hereunder shall operate
as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any
other or further exercise thereof or the exercise of any other right. The remedies herein provided
are cumulative and not exclusive of any remedies provided by law.

     SECTION 14.4. Binding Effect; Survival. This Agreement shall be binding upon and
inure to the benefit of Seller, Servicer, the Administrator, the Purchasers and their respective
successors and permitted assigns, and the provisions of Section 4.2 and Article
XIII shall inure to the benefit of the Affected Parties and the Indemnified Parties,
respectively, and their respective successors and permitted assigns; provided, however,
nothing in the foregoing shall be deemed to authorize any assignment not permitted by Section
12.1.

     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 the Final Payout Date.
The rights and remedies with respect to any breach of any representation or warranty made by Seller
or pursuant to Article VI and the indemnification and payment provisions of Article
XIII and Sections 4.2, 14.5, 14.6, 14.7, 14.8 and
14.15 shall be continuing and shall survive any termination of this Agreement.

     SECTION 14.5. Costs, Expenses and Taxes. In addition to its obligations under
Article XIII, Seller or, to the extent applicable, LOL agrees to pay within ten (10)
Business Days after demand;

     (a) all costs and expenses incurred (i) by the Administrator or any Purchaser, or their
respective Affiliates, in connection with the negotiation, preparation, execution and delivery of,
and (ii) by the Administrator, any Purchaser and their respective Affiliates, in connection with
the enforcement after the occurrence of a Termination Event against Seller, LOL or the other
Originators, as the case may be, of, or any actual or claimed breach by Seller, LOL or any other
Originator, as the case may be, of, this Agreement and the other Transaction Documents, including,
without limitation (A) the reasonable fees and expenses of counsel to any of such Persons incurred
in connection with any of the foregoing or in advising such Persons as to their respective rights
and remedies under any of the Transaction Documents, and (B) all reasonable out-of-pocket expenses
(including reasonable fees and expenses of independent accountants incurred in connection with any
review of Seller’s, LOL’s or any other Originator’s, as the case may be, books and records either
prior to the execution and delivery hereof or pursuant to Section 7.1(c) or otherwise); and

 

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     (b) all stamp and other taxes and fees payable or determined to be payable in connection with
the execution, delivery, filing and recording of this Agreement or the other
Transaction Documents, and agrees to indemnify each Indemnified Party against any liabilities
with respect to or resulting from any delay in paying or omission to pay such taxes and fees.

     SECTION 14.6. No Proceedings.

     (a) Seller, Servicer, each Sub-Servicer and CoBank (individually and as Administrator) each
hereby agrees that it will not institute against any Purchaser, or join any other Person in
instituting against Purchaser, any insolvency proceeding (namely, any proceeding of the type
referred to in the definition of Event of Bankruptcy) so long as any Capital shall be outstanding
or there shall not have elapsed one (1) year plus one (1) day since the last day on which any such
Capital shall have been outstanding.

     (b) This Section 14.6 shall survive termination of this Agreement.

     SECTION 14.7. Confidentiality of Program Information.

     (a) Confidential Information. Each party hereto acknowledges that CoBank regards the
structure of the transactions contemplated by this Agreement to be proprietary, and each such party
severally agrees that:

     (i) it will not disclose without the prior consent of CoBank or as is required or
authorized by the Transaction Documents (other than to the directors, employees, agents,
auditors, counsel or affiliates (collectively, “representatives”) of such party,
each of whom shall be informed by such party of the confidential nature of the Program
Information (as defined below) and of the terms of this Section 14.7), (A) any
information regarding the pricing in, or copies of, this Agreement or any transaction
contemplated hereby, (B) any information regarding the organization, business or operations
of the Purchasers generally or the services performed by the Administrator for Purchaser, or
(C) any information which is furnished by CoBank to such party and which is designated by
CoBank to such party in writing or otherwise as confidential or not otherwise available to
the general public (the information referred to in clauses (A), (B) and (C) is collectively
referred to as the “Program Information”); provided, however, that
such party may disclose any such Program Information: (I) to any other party to this
Agreement for the purposes contemplated hereby, (II) as may be required by any Governmental
Authority having or claiming to have jurisdiction over such party, (III) in order to comply
with Applicable Law, including, without limitation, by filing the Transaction Documents with
the Securities and Exchange Commission (provided that none of Seller or LOL shall
file the Fee Letter, or, if required by Applicable Law to file the Fee Letter, Seller or
LOL, as the case may be, shall request confidential treatment therefor) or (IV) subject to
subsection (c), in the event such party is legally compelled (by interrogatories, requests
for information or copies, subpoena, civil investigative demand or similar process) to
disclose any such Program Information;

     (ii) it will use the Program Information solely for the purposes of evaluating,
administering and enforcing the transactions contemplated by this Agreement and making any
necessary business judgments with respect thereto; and

 

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     (iii) it will, upon demand, return (and cause each of its representatives to
return) to CoBank, all documents or other written material (other than documents
executed by such party) received from CoBank, as the case may be, in connection with
(a)(i)(B) or (C) above and all copies thereof made by such party which contain the Program
Information.

     (b) Availability of Confidential Information. This Section 14.7 shall be
inoperative as to such portions of the Program Information which are or become generally available
to the public or such party on a nonconfidential basis from a source other than CoBank or were
known to such party on a nonconfidential basis prior to its disclosure by CoBank.

     (c) Legal Compulsion to Disclose. In the event that any party or anyone to whom such
party or its representatives transmits the Program Information is requested or becomes legally
compelled (by interrogatories, requests for information or documents, subpoena, civil investigative
demand or similar process) to disclose any of the Program Information, such party will, to the
extent that it may legally do so,

     (i) provide CoBank with prompt written notice so that CoBank may seek a protective
order or other appropriate remedy and/or waive compliance with the provisions of this
Section 14.7; and

     (ii) unless CoBank waives compliance by such party with the provisions of this
Section 14.7, make a timely objection to the request or confirmation to provide such
Program Information on the basis that such Program Information is confidential and subject
to the agreements contained in this Section 14.7.

In the event that such protective order or other remedy is not obtained, or CoBank waives
compliance with the provisions of this Section 14.7, such party will furnish only that
portion of the Program Information which (in such party’s good faith judgment) is legally required
to be furnished and will exercise reasonable efforts to obtain reliable assurance that confidential
treatment will be accorded the Program Information.

     (d) Survival. This Section 14.7 shall survive termination of this Agreement.

     SECTION 14.8. Confidentiality of Originator Information.

     (a) Confidential Information. Each party hereto (including, without limitation, any
successor Servicer) acknowledges that the Originators regard certain information to be proprietary,
and each such party severally agrees that:

     (i) it will not disclose without the prior consent of LOL, or as is required or
authorized by the Transaction Documents (other than to the directors, employees, agents,
auditors, counsel or affiliates (collectively, “representatives”) of such party,
each of whom shall be informed by such party of the confidential nature of the Originator
Information (as defined below) and of the terms of this Section 14.8), any
information which is furnished by LOL, any other Originator or any of their respective
Subsidiaries to such party and which is designated

 

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by the applicable Originator to such
party in writing or otherwise as confidential or not otherwise available to the general
public (“Originator Information”); provided, however, that such
party may disclose (any such disclosure
which identifies any Originator to include a reference to the confidentiality
provisions hereof) any such Originator Information (A) to any other party to this Agreement
for the purposes contemplated hereby or any Person that might become a party to the
Agreement as contemplated by Article XII of this Agreement, (B) as may be required by any
Governmental Authority having or claiming to have jurisdiction over such party, (C) in order
to comply with any Applicable Law, (D) subject to subsection (c), in the event such party is
legally compelled (by interrogatories, requests for information or copies, subpoena, civil
investigative demand or similar process) to disclose any such Program Information or
Originator Information, and (E) to any Affected Party; and

     (ii) it will use the Originator Information solely for the purposes of evaluating,
administering and enforcing the transactions contemplated by this Agreement and the
Transaction Documents and making any necessary business judgments with respect thereto.

     (b) Availability of Confidential Information. This Section 14.8 shall be
inoperative as to such portions of the Originator Information which are or become generally
available to the public or such party on a nonconfidential basis from a source other than the
applicable Originator were known to such party on a nonconfidential basis prior to its disclosure
by such Originator.

     (c) Legal Compulsion to Disclose. In the event that any party or anyone to whom such
party or its representatives transmits the Originator Information is requested or becomes legally
compelled (by interrogatories, requests for information or documents, subpoena, civil investigative
demand or similar process) to disclose any of the Originator Information, such party will, to the
extent that it may legally do so,

     (i) provide Seller with prompt written notice so that it can notify such Originator and
such Originator may seek a protective order or other appropriate remedy and/or waive
compliance with the provisions of this Section 14.8; and

     (ii) unless Seller waives compliance by such party with the provisions of this
Section 14.8, make a timely objection to the request or confirmation to provide such
Originator Information on the basis that such Originator Information is confidential and
subject to the agreements contained in this Section 14.8.

In the event that such protective order or other remedy is not obtained, or Seller waives
compliance with the provisions of this Section 14.8, such party will furnish only that
portion of the Originator Information which (in such party’s good faith judgment) is legally
required to be furnished and will exercise reasonable efforts to obtain reliable assurance that
confidential treatment will be accorded the Originator Information.

     (d) Survival. This Section 14.8 shall survive termination of this Agreement.

 

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     SECTION 14.9. Captions and Cross References. The various captions (including, without
limitation, the table of contents) in this Agreement are provided solely for convenience of
reference and shall not affect the meaning or interpretation of any provision of this Agreement.
Unless otherwise indicated, references in this Agreement to any Section, Appendix,
Schedule or Exhibit are to such Section of or Appendix,
Schedule or Exhibit to this Agreement,
as the case may be, and references in any Section, subsection, or clause to any
subsection, clause or subclause are to such subsection, clause or subclause of such
Section, subsection or clause.

     SECTION 14.10. Integration. This Agreement and the other Transaction Documents
contain a final and complete integration of all prior expressions by the parties hereto with
respect to the subject matter hereof and shall constitute the entire understanding among the
parties hereto with respect to the subject matter hereof, superseding all prior oral or written
understandings.

     SECTION 14.11. Governing Law. THIS AGREEMENT, INCLUDING THE RIGHTS AND DUTIES OF THE
PARTIES HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF COLORADO (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF), EXCEPT TO THE
EXTENT THAT THE PERFECTION OF THE INTERESTS OF THE ADMINISTRATOR IN THE POOL ASSETS IS GOVERNED BY
THE LAWS OF THE JURISDICTION OTHER THAN THE STATE OF COLORADO; AND, NOTWITHSTANDING THE FOREGOING,
PROVIDED THAT ALL MATTERS CONCERNING THE RIGHTS OF THE ADMINISTRATOR AND THE PURCHASERS IN THE
TRANSFERRED RECEIVABLES, AND MORE GENERALLY, THE ISSUE OF WHETHER THE
TRANSFERS OF THE INTERESTS IN
THE RECEIVABLES AND RELATED RIGHTS CONTEMPLATED IN THIS AGREEMENT CONSTITUTE TRUE SALES OR ABSOLUTE
TRANSFERS, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF MINNESOTA.

     SECTION 14.12. Waiver Of Jury Trial. EACH OF THE PARTIES HERETO HEREBY EXPRESSLY
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS
UNDER THIS AGREEMENT, ANY OTHER TRANSACTION DOCUMENT OR UNDER ANY AMENDMENT, INSTRUMENT OR DOCUMENT
DELIVERED OR WHICH MAY BE IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY
BANKING OR OTHER RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION
DOCUMENT AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT A JURY
TRIAL.

     SECTION 14.13. Consent To Jurisdiction; Waiver Of Immunities. EACH OF LOL AND SELLER
HEREBY ACKNOWLEDGES AND AGREES THAT:

     (a) IT HEREBY IRREVOCABLY (i) SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF ANY COLORADO OR
UNITED STATES FEDERAL COURT SITTING IN COLORADO, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO ANY TRANSACTION DOCUMENT; (ii) AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE OR UNITED STATES FEDERAL COURT; (iii) WAIVES,
TO THE FULLEST

 

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 EXTENT IT
MAY EFFECTIVELY DO SO UNDER APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING; (iv) CONSENTS TO THE SERVICE OF ANY AND ALL
PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS TO SUCH PERSON AT
ITS ADDRESS SPECIFIED IN SECTION 14.2; AND
(v) TO THE EXTENT ALLOWED BY LAW, AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR
PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT
OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS SECTION 14.13 SHALL AFFECT THE
ADMINISTRATOR’S OR ANY PURCHASER’S RIGHT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY
LAW OR TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OF SELLER OR LOL OR ITS OR THEIR PROPERTY IN
THE COURTS OF ANY OTHER JURISDICTIONS.

     (b) TO THE EXTENT THAT IT HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM THE JURISDICTION OF
ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO
JUDGMENT, ATTACHMENT IN AID TO EXECUTION, EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS
PROPERTY, IT HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER OR IN
CONNECTION WITH THIS AGREEMENT.

     SECTION 14.14. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by the 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.

     SECTION 14.15. No Recourse Against Other Parties. No recourse under any obligation,
covenant or agreement of any Purchaser contained in this Agreement shall be had against any
stockholder (solely in its capacity as stockholder), employee, officer, director, member or
incorporator of such Purchaser, provided, however, that nothing in this Section
14.15 shall relieve any of the foregoing Persons from any liability which such Person may
otherwise have for his/her or its gross negligence or willful misconduct.

     SECTION 14.16. Purchase and Sale Agreement. Each of LOL and Seller hereby
acknowledges and agrees that (a) all references in the Purchase and Sale Agreement and the other
Transaction Documents to the Receivables Purchase Agreement shall be deemed to refer to this
Agreement, as this Agreement may be amended, modified or supplemented from time to time and (b) the
Purchase and Sale Agreement remains in full force and effect and is hereby ratified and confirmed.

[SIGNATURE PAGES FOLLOW ON NEXT PAGE]

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	 	LOL SPV, LLC,

as Seller
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name Printed:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	LAND O’LAKES, INC.,

as initial Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name Printed:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COBANK, ACB, as a Purchaser and as Administrator
	 
	 	 	 	 
	 

	 	By:
	 	 
	 

	 	 	 	 
	 

	 	Name Printed:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

-2-

	 	 	 	 	 
	 	 	PURINA MILLS, LLC, as Sub-Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name Printed:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	LAND O’LAKES PURINA FEED LLC, as Sub-Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name Printed:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

 

 

APPENDIX A

DEFINITIONS

     This is Appendix A to the Second Amended and Restated Receivables Purchase Agreement
dated as of September 7, 2006 (the “Agreement”), among LOL SPV, LLC, as Seller, Land
O’Lakes, Inc., as initial Servicer, CoBank, ACB, and the other Persons from time to time party
thereto as Purchasers (the “Purchasers”), and CoBank, ACB, as Administrator (as amended,
supplemented or otherwise modified from time to time, the “Agreement”). Unless otherwise
indicated, all Section, Exhibit and Schedule references in this
Appendix are to Sections of and Exhibits and Schedules to the
Agreement.

     A. Defined Terms. As used in the Agreement, unless the context requires a different
meaning, the following terms have the meanings indicated below:

     “Accounts” means all “accounts” as defined in the UCC.

     “Administrator” has the meaning set forth in the preamble.

     “Administrator’s Account” has the meaning set forth in Section 3.3(a).

     “Administrator’s Office” means the office of the Administrator at 5500 South Quebec
Street, Greenwood Village, Colorado 80111, or such other address as shall be designated by the
Administrator in writing to Seller and Purchasers.

     “Affected Party” means each of the Purchasers, any assignee or participant of any
Purchaser, CoBank, any successor to CoBank as Administrator, and any sub-agent of the
Administrator.

     “Affiliate” when used with respect to a Person means any other Person, directly or
indirectly, controlling, controlled by, or under common control with such Person, except, when used
with respect to the Seller, Affiliate shall mean Feed, each of the other Originators and all
Subsidiaries of Feed or any other Originator.

     “Allocation Limit” has the meaning set forth in Section 1.1.

     “Alternate Base Rate” means, on any date, a fluctuating annual rate of interest equal
to the greatest of (a) the prime rate announced by CoBank as its “prime rate” in effect on such
day, (b) the Base CD Rate in effect on such day plus one percent (1%) and (c) the Federal Funds
Effective Rate in effect on such day plus one-half of one percent (1/2 of 1%). Any change in the
Alternate Base Rate due to a change in the prime rate, the Base CD Rate or the Federal Funds
Effective Rate shall be effective from and including the effective date of such change in the prime
rate, the Base CD Rate or the Federal Funds Effective Rate, respectively. The Alternate Base Rate,
whether or not determined by reference to the prime rate, is not necessarily intended to be the
lowest rate of interest determined or offered by CoBank in connection with extensions of credit.

 

 

  -2-

     “Applicable Law” means all existing and future applicable laws, rules, regulations
(including proposed, temporary and final income tax regulations), statutes, treaties, codes,
ordinances, permits, certificates, orders and licenses of and interpretations by any Governmental
Authority, and applicable judgments, decrees, injunctions, writs, orders or like action of any
court, arbitrator or other administrative, judicial or quasi-judicial tribunal or agency of
competent jurisdiction.

     “Assessment Rate” means, for any day, the annual assessment rate in effect on such day
that is payable by a member of the Bank Insurance Fund classified as “well-capitalized” and within
supervisory subgroup “B” (or a comparable successor risk classification) within the meaning of 12
C.F.R. Part 327 (or any successor provision) to the Federal Deposit Insurance Corporation for
insurance by such Corporation of time deposits made in dollars at the offices of such member in the
United States; provided that if, as a result of any change in any law, rule or regulation,
it is no longer possible to determine the Assessment Rate as aforesaid, then the Assessment Rate
shall be such annual rate as shall be determined by the Administrator to be representative of the
cost of such insurance to the Purchasers.

     “Bank Equity Interest” is defined in Section 7.1(k).

     “Base CD Rate” means the sum of (a) the Three-Month Secondary CD Rate multiplied by
the Statutory Reserve Rate plus (b) the Assessment Rate.

     “Business Day” means a day other than a Saturday or a Sunday on which both (a) the
Administrator at its principal office in Greenwood Village, Colorado is open for business and (b)
commercial banks in New York, New York and Greenwood Village, Colorado are not authorized or
required to be closed for business.

     “Capital” means at any time with respect to the Receivable Interest an amount equal to
(a) the aggregate of the amounts theretofore paid to Seller for Purchases pursuant to Section
1.1, less (b) the aggregate amount of Collections theretofore received and actually
distributed to the Purchasers on account of the Capital pursuant to Section 3.1.

     “Capitalized Lease Obligation” means any Indebtedness represented by obligations under
a lease that is required to be capitalized for financial reporting purposes in accordance with
GAAP.

     “Change in Control” means the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Exchange Act and the
rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), of
membership interests representing more than 50% of the aggregate ordinary voting power represented
by all outstanding membership interests of LOL.

     “CoBank” has the meaning set forth in the preamble.

 

-3-

     “Collections” means, with respect to any Pool Receivable, all funds that either (a)
are received by Seller, Servicer, an Originator or any other Person from or on behalf of the
related Obligors in payment of any amounts owed (including, without limitation, purchase prices,
finance charges, interest and all other charges) in respect of such Receivable, or applied to such
amounts owed by such Obligors (including, without limitation, insurance payments that Seller, an
Originator or Servicer applies in the ordinary course of its business to amounts owed in respect of
such Receivable and net proceeds of sale or other disposition of repossessed goods or other
collateral or property of the Obligor or any other party directly or indirectly liable for payment
of such Receivable and available to be applied thereon), or (b) are deemed to have been received by
Seller or any other Person as a Collection pursuant to Section 3.2.

     “Commitment Fee” has the meaning set forth in Section 4.1(b).

     “Concentration Limit” for any Obligor at any time means an amount equal to (i) the
aggregate Unpaid Balance of all Eligible Receivables at such time, times (ii) four percent
(4.0%). Any amounts of Eligible Receivables of any Obligor above the limit specified above will be
deemed “Excess Concentrations”.

     “Consolidated” means the consolidation in accordance with GAAP of the accounts or
other items as to which such term applies.

     “Contract” means a contract between an Originator and any Person, or an invoice from
an Originator to any Person, or any purchase order from any Person to an Originator pursuant to or
under which such Person shall be obligated to make payments to an Originator. A “related” Contract
with respect to the Receivables means a Contract under which Receivables in the Receivables Pool
arise, which evidence such Receivables, or which is relevant to the collection or enforcement of
such Receivables.

     “Contractual Obligation” with respect to any Person, means any provision of any
securities issued by such Person or any indenture, mortgage, deed of trust, or material contract,
undertaking, agreement, instrument or other document to which such Person is party or by which it
or any of its property is bound or is subject.

     “Credit and Collection Policy” means, with respect to each Originator, those credit
and collection policies and practices set forth on Schedule 7.1(g), relating to Contracts
and Receivables of such Originator, as modified without violating Section 7.3(c).

     “Cross-Aging Policy” means an exclusion of Receivables of a particular Obligor that
otherwise constitute Eligible Receivables in the event that more than fifty percent (50%) of such
Obligor’s outstanding Receivables are Delinquent Receivables.

     “Current Assets” at any date means the amount at which all of the current assets of a
Person would be properly classified as current assets on a balance sheet at such date in accordance
with GAAP, except that amounts due from Affiliates, investments in Affiliates and prepaid expenses
shall be excluded therefrom.

 

-4-

     “Cut-Off Date” means the Friday of each calendar week.

     “Days Sales Outstanding” means, at any date of determination, the prior month’s Sales
divided by current month’s collections, times 30.

     “Dairy Receivables” means Receivables described in clause (iii) of the definition of
“Receivables.”

     “Deemed Collection” has the meaning set forth in Section 3.2.

     “Default Rate” shall mean, at any date of determination, a rate equal to the then
applicable Yield Rate, plus two percent (2%) per annum; provided,
that in no event shall the Default Rate exceed the maximum rate permissible under any Applicable
Law (the “Maximum Rate”) and to the extent that application of the first clause of this definition
would cause the rate to exceed the Maximum Rate, the rate payable shall be limited to the Maximum
Rate.

     “Defaulted Receivable” means: (a) a Receivable as to which any payment, or part
thereof, remains unpaid for more than sixty (60) days from the original due date, (b) as to which
the Obligor thereof is the subject of an Event of Bankruptcy, or (c) that has been charged off the
Seller’s or the applicable Obligor’s books as uncollectible or otherwise deferred or extended,
other than in accordance with the applicable Credit and Collection Policy or with the
Administrator’s prior written consent.

     “Delinquent Receivable” means a Receivable that is not a Defaulted Receivable and as
to which any payment, or part thereof, remains unpaid for more than thirty (30) days after the
original due date for such payment.

     “Dilution” means any credit, adjustment, rebate, refund or setoff with respect to any
Receivable granted or allowed by Seller or any Originator.

     “Dilution Reserve” means, at any time, an amount equal to the sum of (i) forty percent
(40%) of the Net Pool Balance attributable to Seed Receivables and (ii) (A) the Net Pool Balance
attributable to Feed Receivables and Dairy Receivables at such time times (B) the Dynamic
Dilution Reserve Percentage; where

     Dynamic Dilution Reserve Percentage is calculated as:

          SF x ED, where:

          SF = (a) 1.0 times or (b) in the event that the Sales-Based Dilution Ratio attributable to
Feed Receivables and Dairy Receivables for the month ending on the most recent Cut-Off Date is
greater than or equal to twenty percent (20%), 1.5 times; provided, however, that is such case the
Dynamic Dilution Reserve Percentage shall be capped at twenty percent (20%); and

 

-5-

	 	ED  	 = 	 Expected Dilution which, expressed as a percentage, shall be
calculated as the 12-month rolling average Sales-Based Dilution Ratio
attributable to Feed Receivables and Dairy Receivables.

     “Dollars” means dollars in lawful money of the United States of America.

     “Eligible Receivable” means, at any time, a Receivable:

          (a) that is originated by an Originator in the ordinary course of its business;

          (b) that constitutes an “account,” and is not a “general intangible,” or evidenced by a note
or other “instrument” or “chattel paper,” as each such term is defined in the UCC;

          (c) the Obligor of which is (i) located in the United States, (ii) not in default of any
indebtedness owed to any Purchaser, (iii) not an Affiliate of Seller or any Originator, but only to
the extent that such Receivables referred to in this clause (iii) are in excess of seven percent
(7%) of the aggregate Unpaid Balance of Pool Receivables and (iv) not a Governmental Authority,
except as specified on Schedule I, as amended and in effect from time to time;

          (d) that was purchased or otherwise acquired by Seller pursuant to the Purchase and Sale
Agreement and which was designated by the related Originator as an “Eligible Receivable” pursuant
to the Purchase and Sale Agreement;

          (e) that is neither a Defaulted Receivable nor a Delinquent Receivable;

          (f) that is not excluded pursuant to the Cross-Aging Policy;

          (g) with respect to which the warranty of Seller in Section 6.1(k) is true and correct
and as to which there exists no asserted dispute, offset or claim by the Obligor or any other
Person;

          (h) the sale or assignment of which, or of an undivided interest in which, does not contravene
or conflict with Applicable Law, or require the consent of the Obligor or any other Person;

          (i) that is denominated and payable only in Dollars in the United States;

          (j) that arises under a Contract with payment and other terms relating to the validity or
collectibility of the Receivables thereunder complying in all respects with the standards therefor
in Schedule II (or as otherwise consented to by the Administrator in writing), which has
been duly authorized by the parties thereto and that, together with such Receivable, is in full
force and effect and constitutes the legal, valid and binding obligation of the Obligor of such
Receivable enforceable against such Obligor in accordance with its terms and is not subject to any
defense whatsoever (other than discharge in bankruptcy and payment);

 

-6-

          (k) that, together with the Contract related thereto, does not contravene in any material
respect any Applicable Law and with respect to which neither the Originator nor, to the
Originator’s knowledge, any other party to the Contract related thereto is in violation of any
Applicable Law;

          (l) that satisfies all material applicable requirements of the applicable Credit and
Collection Policy;

          (m) as to which the original payment terms have not been altered, extended or modified;

          (n) the Unpaid Balance of which is payable either (i) within sixty (60) days or less from the
invoice date in the case of Feed Receivables and Dairy Receivables or (ii) within two hundred and
forty (240) days or less from the invoice date for Seed Receivables;

          (o) that represents a bona fide obligation arising from the completion of the
sale and delivery of products or provision of services specified in the definition of “Receivables”
and that do not represent an invoice in advance of such completion;

          (p) that are not subject to any contingent performance requirements of the Seller or the
related Originator unless such requirements are guaranteed or insured by third parties acceptable
to the Administrator;

          (q) in which the Administrator’s security interest, for the benefit of the Purchasers, has
been perfected; and

          (r) that relates to the feed, seed or dairy business, but not the swine business, of the
related Originator.

     “Event of Bankruptcy” shall be deemed to have occurred with respect to a Person if
either:

          (a) any case or other proceeding shall be commenced, without the application or consent of
such Person, in any court, seeking the liquidation, reorganization, debt arrangement, dissolution,
winding up, or composition or readjustment of debts of such Person, the appointment of a trustee,
receiver, custodian, liquidator, assignee, sequestrator or the like for such Person or all or
substantially all of its assets, or any similar action with respect to such Person under any law
relating to bankruptcy, insolvency, reorganization, winding up or composition or adjustment of
debts, and such case or proceeding shall continue undismissed, or unstayed and in effect, for a
period of at least sixty (60) consecutive days; or an order for relief in respect of such Person
shall be entered in an involuntary case under the federal bankruptcy laws or other similar laws now
or hereafter in effect and shall either not be contested or shall remain undismissed for sixty (60)
consecutive days; or

 

-7-

          (b) such Person shall commence a voluntary case or other proceeding under any applicable
bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law now or
hereafter in effect, or shall consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or other similar official) for such Person
or for any substantial part of its property, or shall make any general assignment for the benefit
of creditors, or shall fail to, or admit in writing its inability to, pay its debts generally as
they become due, or, if a corporation or similar entity, its board of directors shall vote to
implement any of the foregoing.

     “Excess Amount” as of any date, means the amount, if any, by which the sum of the
Capital, plus the Required Reserves on such date exceeds the Net Pool Balance, as most
recently calculated.

     “Excess Concentrations” has the meaning set forth in the definition of
“Concentration Limit”.

     “Exchange Act” means the Securities and Exchange Act of 1934, as amended.

     “Existing Receivables Purchase Agreement” has the meaning set forth in the
recitals.

     “Facility Limit” has the meaning set forth in Section 1.1.

     “Facility Limit Increase” has the meaning set forth in Section 1.6(a).

     “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such
rate is not so published for any day that is a Business Day, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrator from three Federal funds brokers of recognized standing selected by it.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or
any successor thereto or to the functions thereof.

     “Feed” has the meaning set forth in the recitals.

     “Feed Receivables” means Receivables described in clause (i) of the definition of
“Receivables.”

     “Fee Letter” has the meaning set forth in Section 4.1(a).

     “Fees” means any and all fees payable to or for the account of the Administrator or
the Purchasers pursuant to the Fee Letter or this Agreement (including, without limitation, the
Commitment Fee), which fees, unless otherwise specified in the Fee Letter with respect to fees
addressed there, shall be payable upon, and shall accrue in respect of the Settlement Period ending
upon, each Settlement Date.

 

-8-

     “Final Payout Date” means the date following the Termination Date on which the Capital
shall have been reduced to zero and all other amounts payable by Seller to the Purchasers, the
Administrator, the Affected Parties and the Indemnified Parties under the Transaction Documents
shall have been indefeasibly paid in full.

     “Floor Reserve” means, at any time, an amount equal to the Net Pool Balance at such
time, times fifteen percent (15%).

     “GAAP” means generally accepted accounting principles as in effect in the United
States from time to time and consistently applied.

     “Governmental Action” means all permits, authorizations, registrations, consents,
approvals, waivers, exceptions, variances, orders, judgments, decrees, licenses, exemptions,
publications, filings, notices to and declaration of or with, or required by, any Governmental
Authority, or required by any Applicable Law.

     “Governmental Authority” means any foreign or domestic federal, state, county,
municipal or other governmental or regulatory authority, agency, board, body, commission,
instrumentality, court or any political subdivision thereof.

     “Increasing Purchaser” has the meaning set forth in Section 1.6(b).

     “Indebtedness” as applied to a Person means, without duplication, all items which in
accordance with GAAP would be included in determining total liabilities as shown on the liability
side of a balance sheet of such Person as at the date as of which Indebtedness is to be determined,
including, without limitation,

(i) Capitalized Lease Obligations;

(ii) all obligations of other Persons which such Person has guaranteed;

(iii) all reimbursement obligations in connection with letters of credit or letter
of credit guaranties issued for the account of such Person, and

(iv) in the case of LOL and its Subsidiaries (without duplication), all obligations
under (or permitted under) the JP Morgan Credit Documents, as in effect on the
Initial Purchase Date.

     “Indemnified Amounts” has the meaning set forth in Section 13.1.

     “Indemnified Party” has the meaning set forth in Section 13.1.

     “Independent Director” shall mean an individual who is not, and never was, (1) a
member, stockholder, director, officer, employee, Affiliate, customer or supplier of, or an
individual that has received any benefit (excluding, however, any compensation received in such
individual’s capacity as Independent Director) in any form
whatever from, or an individual who has
provided any service (excluding,

 

-9-

however, any service provided by such individual in such
individual’s capacity as Independent Director) in any form whatever to, Feed or any of its
subsidiaries or Affiliates, or (2) an individual owning beneficially, directly or indirectly, any
interest in Feed, or a stockholder, director, officer, employee, Affiliate, customer or supplier
thereof, or an individual who has received any direct economic benefit (excluding, however, any
compensation received in such individual’s capacity as Independent Director) in any form whatever
from, or an individual who has provided any service (excluding, however, any service provided by
such individual in such individual’s capacity as Independent Director) in any form whatever to,
such beneficial owner or any of such beneficial owner’s Affiliates, or (3) an individual who is a
relative or spouse of an individual described in clause (1) or (2) above.

     “Initial Purchase Date” has the meaning set forth in Section 3.1(a),

     “JP Morgan Credit Documents” means the Amended and Restated Five-Year Credit Agreement
dated as of August 29, 2006, among LOL, the lenders party thereto, JP Morgan
Chase Bank, N.A., as Administrative Agent and Collateral Agent, and CoBank, as Co-Administrative
Agent, together with the various agreements, instruments and documents executed and delivered in
connection therewith, and as amended, amended and restated, supplemented or otherwise modified from
time to time.

     “LIBOR” means, with respect to the initial Settlement Period the rate of interest
(expressed as an annual rate and rounded upwards, if necessary, to the nearest 1/16th of 1%) at
which deposits in Dollars would be offered by principal London offices of banks at approximately
11:00 A.M. (London time) on the first day of the Settlement Period or portion thereof for the
period from that day to the next Settlement Date. For periods which extend from one Settlement
Date to the next Settlement Date, the applicable rate will be the one-month LIBOR rate which
appears on Telerate page 3750 as of 9:00 A.M. (Denver, Colorado time) or as soon thereafter as
practicable. For periods which begin on a day other than a Settlement Date, the applicable rate
will be the rate equal to the average (rounded up to the nearest 1/16th of 1%) of the rates shown
on the display referred to as the “LIBOR” page (or any display substituted therefor) of the
Telerate matrix (presently page 5) for a period of time from that day to the next Settlement Date.
The determination of the applicable LIBOR rate by the Administrator shall be conclusive in the
absence of demonstrable error.

     “LIBOR Business Day” means a day of the year on which dealings are carried on in the
London interbank market and banks are open for business in London and are not required or
authorized to close in Greenwood Village, Colorado or New York City.

     “LIBOR Rate” means, with respect to any Settlement Period and any portion of the
Capital, a rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined
pursuant to the following formula:

	 	LIBOR Rate  	=  	   LIBOR

1 - LIBOR Reserve Percentage

 

-10-

     “LIBOR Reserve Percentage” means, with respect to any Settlement Period, the then
maximum reserve percentage (expressed as a decimal, rounded upward to the nearest 1/100th of 1%)
prescribed by the Federal Reserve Board for determining the maximum reserve requirements applicable
to “Eurocurrency Liabilities” pursuant to Regulation D having a term comparable to such Settlement
Period.

     “Lien” means any mortgage, lien, pledge, encumbrance, charge, title retention or other
security interest of any kind, whether arising under a security agreement, mortgage, deed of trust,
assignment, pledge or financing statement or arising as a matter of law, judicial process or
otherwise.

     “Liquidation Fee” means, for each day in any Settlement Period following the
occurrence of a Termination Event, the amount, if any, by which:

          (a) the additional Yield (calculated without taking into account any Liquidation Fee) which
would have accrued on the reductions of Capital during such Settlement Period (as so computed) if
such reductions had not been made, exceeds

          (b) the income, if any, received by the Purchasers from investing the proceeds of such
reductions of Capital.

     “Lockbox” means any post office box to which Collections of Pool Receivables are sent.

     “Lockbox Account” means any bank account to which Collections of Pool Receivables are
sent or deposited that is the subject of an executed and effective Seller Lockbox Agreement.

     “Lockbox Agreement” means a letter agreement, in substantially the form of Exhibit
5.1(f) or otherwise in form and substance acceptable to the Administrator, among Seller, the
applicable Originator(s) (if any) and the applicable Lockbox Bank.

     “Lockbox Bank” means any of the banks holding one or more Lockbox Accounts for
receiving Collections from Pool Receivables.

     “LOL” has the meaning set forth in the preamble.

     “LOL Downgrade” means that LOL’s long-term secured senior debt rating is rated below
B+ or the equivalent by both Moody’s Investor Service, Inc. and Standard & Poor’s Ratings Services
or is so rated by one of these rating agencies if such debt is not then rated by the other rating
agency.

     “Loss Reserve” means at any time, an amount equal to the Net Pool Balance at such
time, times the Dynamic Loss Reserve Percentage, where:

Dynamic Loss Reserve Percentage means a percentage calculated as the product
of: (i) the Loss Ratio, times; (ii) the Stress Factor, where:

 

-11-

	 	Loss Ratio  	=  	 the most recent 12-month rolling average Sales-Based Default Ratio;
	 
	 	Stress Factor  	 =   	 1.0 x.

     “Material Adverse Effect” with respect to any event or circumstance, means

     (a) a material adverse effect on:

(i) the business, financial condition, assets, or operations of LOL. Feed and their
Subsidiaries, taken as a whole;

(ii) the ability of Servicer, Seller or any Originator to perform its obligations
under this Agreement or any other Transaction Document;

(iii) the validity, enforceability or collectibility of this Agreement or any other
Transaction Document or the validity, enforceability or collectibility of the
Receivables, taken as a whole; or

(iv) the status, existence, perfection, priority or enforceability of the
Administrator’s or any Purchaser’s interest in the Pool Assets; or

(b) the occurrence of any event or circumstance that constitutes an Originator Material
Adverse Effect under the Purchase and Sale Agreement.

     “Monthly Report” has the meaning set forth in Section 7.2(a).

     “Net Pool Balance” at any time means an amount equal to (i) the aggregate Unpaid
Balance of the Eligible Receivables in the Receivables Pool at such time, minus (ii) the
aggregate amount of Excess Concentrations.

     “New Purchaser” has the meaning set forth in Section 1.6(a).

     “New Purchaser Supplement” has the meaning set forth in Section 1.6(c).

     “Obligor” means a Person obligated to make payments with respect to a Receivable,
including any guarantor thereof.

     “Originator Information” has the meaning set forth in Section 14.8(a)(i).

     “Originator(s)” means LOL, Feed, Purina or any other Person which is or at any time
hereafter becomes a party to the Purchase and Sale Agreement, in its capacity as an originator of
Receivables.

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

 

-12-

     “Pool Assets” has the meaning set forth in Section 1.4(a).

     “Pool Receivable” means a Receivable in the Receivables Pool.

     “Pro Rata Share” means, with respect to any amount, the percentage set forth next to
each Purchaser’s name on Schedule 1 from time to time, representing such Purchaser’s
percentage interest in the overall amount of the Purchasers’ Share.

     “Program Information” has the meaning set forth in Section 14.7(a)(i).

     “Property” or “Properties” means any interest in any kind of property or
asset, whether real, personal or mixed, or tangible or intangible.

     “Purchase” has the meaning set forth in Section 1.1.

     “Purchase and Sale Agreement” means the Purchase and Sale Agreement, dated as of
December 18, 2001, as amended by a First Amendment to Purchase and Sale Agreement dated as of March
31, 2004, by a Second Amendment to Purchase and Sale Agreement dated as of
October 22, 2004, and by a Third Amendment to Purchase and Sale Agreement dated as of the date
hereof, between the Originators as the “Originators”, LOL as the initial “Servicer” and Seller as
the “Purchaser” under such Agreement, as the same may be amended, amended and restated,
supplemented or otherwise modified from time to time.

     “Purchase Date” has the meaning set forth in Section 1.2(a).

     “Purchase Increase Supplement” has the meaning set forth in Section 1.6(b).

     “Purchase Notice” has the meaning set forth in Section 1.1.

     “Purchase Termination Date” means that day:

     (a) the Administrator declares a Purchase Termination Date in a notice to Seller in
accordance with Section 10.2(a); or

     (b) in accordance with Section 10.2(b), becomes the Purchase Termination Date
automatically.

     “Purchaser” has the meaning set forth in the preamble.

     “Purchasers’ Share” of any amount means the then Receivable Interest, expressed as a
percentage, (but not greater than 100%), times such amount.

     “Purina” means Purina Mills, LLC, a Delaware limited liability company.

 

-13-

     “Receivables” means (i) Accounts related to the feed businesses of the Originators,
including, but not limited to, Accounts generated from the sale of animal feed and feed
ingredients, soybean meal, premixes, non-grain and protein ingredients, grains, vitamins, minerals,
branded feed products, complete feed products, milk replacer products, feed additives, animal
health products, farm supply products, toll milling services and other feed related services and
the proceeds thereof, (ii) Accounts related to the seed business of LOL including, but not limited
to, Accounts generated from the sale of Seed, licensing fees and seed related services and the
proceeds thereof, and (iii) Accounts related to the dairy business of the Originators, including
but not limited to retail and commercial Accounts generated from the sale of fluid milk, and (iv)
Accounts related to the swine businesses of the Originators, including, but not limited to,
Accounts generated from the sale of swine and swine related services and the proceeds thereof;
provided, however, that “Receivables” related to the swine businesses of LOL and Feed shall not
include any such right to payment where payments have been sent to a lockbox or lockbox account
other than (a) the Corporate Credit, LLC lockbox #7402 located at Wells Fargo Bank, (b) the
Corporate Credit, LLC account #635-5053323, (c) LOL’s lockbox #7792 located at Wells Fargo Bank or
(d) LOL’s account #2391445901 at Wells Fargo Bank. Indebtedness and other obligations arising from
any one transaction, including, without limitation, indebtedness and other obligations represented
by an individual invoice or agreement, shall constitute a Receivable separate from a Receivable
consisting of the indebtedness and other obligations arising from any other transaction.

     “Receivable Interest” means an undivided ownership interest determined from time to
time as provided in Section 1.4(b) in all Pool Assets.

     “Receivables Pool” means at any time all then outstanding Receivables, other than
Reconveyed Receivables.

     “Reconveyed Receivable” means any Receivable for which the related Originator has paid
the full Unpaid Balance pursuant to the Purchase and Sale Agreement.

     “Regulation D” means Regulation D of the Federal Reserve Board, or any other
regulation of the Federal Reserve Board that prescribes reserve requirements applicable to
nonpersonal time deposits or “Eurocurrency Liabilities” as presently defined in Regulation D, as in
effect from time to time.

     “Regulatory Change” means, relative to any Affected Party:

          (a) any change in (or the adoption, implementation, change in phase-in or commencement of
effectiveness of) any

     (i) United States federal, state or local law or foreign law applicable to such
Affected Party, including, without limitation, with respect to the scope,
calculation, application, creation or modification of any national, state or local
tax or government charge or imposition of any type or kind;

 

-14-

     (ii) regulation, interpretation, directive, requirement or request (whether or
not having the force of law) applicable to such Affected Party of (A) any court,
government authority charged with the interpretation or administration of any law
referred to in clause (i) above or of (B) any fiscal, monetary or other
authority having jurisdiction over such Affected Party; or

     (iii) GAAP or regulatory accounting principles applicable to such Affected
Party and affecting the application to such Affected Party of any law, regulation,
interpretation, directive, requirement or request referred to in clause (i)
or (ii) above; or

          (b) any change in the application to such Affected Party of any existing law, regulation,
interpretation, directive, requirement, request or accounting principles referred to in clause
(i), (ii) or (iii) above.

     “Reinvestment” has the meaning set forth in Section 1.3(a)(iii).

     “Related Rights” has the meaning set forth in the Purchase and Sale Agreement.

     “Related Security” means, with respect to any Pool Receivable: (a) all of Seller’s or
the related Originator’s right, title and interest in and to all Contracts that relate to such Pool
Receivable; (b) all security interests or liens and property subject thereto from time to time
purporting to secure payment of such Pool Receivable, whether pursuant to the Contract related to
such Pool Receivable or otherwise; (c) all UCC financing statements covering any collateral
securing payment of such Pool Receivable; (d) all guarantees and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such Pool Receivable
whether pursuant to the Contract related to such Pool Receivable or otherwise; and (e) all of
Seller’s and Feed’s interest in the merchandise (including returned merchandise), if any, relating
to the sale that gave rise to such Pool Receivable.

     “Reporting Date” has the meaning set forth in Section 3.1(a).

     “Required Purchasers” means those Purchasers at any time holding Pro Rata Shares
constituting, in the aggregate, not less than fifty-one percent (51%) of the overall amount of the
Purchasers’ Share.

     “Required Reserves” means, at any time, an amount equal the greater of (i) the Loss
Reserve plus the Dilution Reserve plus the Yield Reserve, and (ii) the Floor
Reserve, in each case as most recently calculated.

     “Sales” means sales of the Originators which generate Receivables.

     “Sales-Based Default Ratio” means, as of any Cut-Off Date, the ratio, expressed as a
percentage, of (i) the aggregate Unpaid Balance of all Defaulted Receivables for the month ending
on such Cut-Off Date, divided by (ii) the average monthly Sales over the preceding
twelve (12) months.

 

-15-

     “Sales-Based Delinquency Ratio” means, as of any Cut-Off Date, the ratio, expressed as
a percentage, of (i) the aggregate Unpaid Balance of all Delinquent Receivables for the month
ending on such Cut-off Date, divided by (ii) the average monthly Sales over the
preceding twelve (12) months.

     “Sales-Based Dilution Ratio” means as of any Cut-Off Date, the ratio, expressed as a
percentage, of (i) the aggregate reduction attributable to Dilutions occurring in the Unpaid
Balance of all Pool Receivables, which Dilutions were granted during the month ending on such
Cut-Off Date, divided by (ii) the billings for the month immediately preceding the
month ending as of such Cut-Off Date.

     “Scheduled Termination Date” means August 29, 2011.

     “Secured Parties” means each Purchaser, the Administrator, the Indemnified Parties and
the Affected Parties.

     “Security” shall have the meaning as in Section 2(l) of the Securities Act of 1933, as
amended.

     “Seed” means crop seed (including, but not limited to, seed for soybeans, corn,
alfalfa, forage and turf grasses).

     “Seed Receivables” means Receivables described in clause (ii) of the definition of
“Receivables.”

     “Seller” has the meaning set forth in the preamble.

     “Seller’s Share” of any amount means (x) 100% minus the Receivable Interest
(but such Receivable Interest shall not be greater than 100%) times (y) such amount.

     “Servicer” has the meaning set forth in Section 8.1(a).

     “Servicer Default” has the meaning set forth in Section 8.2(h).

     “Servicer Report” has the meaning set forth in Section 3.1.

     “Servicer Transfer Event” has the meaning set forth in Section 8.1(b).

     “Servicer’s Fee” means, for each day, an amount equal to (x) the Servicer’s Fee Rate,
times (y) the aggregate Unpaid Balance of all Pool Receivables at the close of business on
such day, times (z) 1/360, provided, however, that if at any time the Servicer is not LOL,
CoBank or any of their respective Affiliates, the Servicer’s Fee shall be a commercially reasonable
rate as agreed between the Administrator and the Servicer.

     “Servicer’s Fee Rate” means 0.50% per annum.

 

-16-

     “Settlement Date” shall mean the twentieth (20th) day of each calendar
month (or, if any such twentieth (20th) day is not a Business Day, “Settlement Date”
shall mean the immediately succeeding Business Day).

     “Settlement Period” shall mean, initially, the period beginning on the date of
Purchase of such Receivable Interest and ending on and including the last day of the calendar month
in which the date of such Purchase occurs, and thereafter, each successive period commencing on the
first day of each calendar month during the term of this Agreement and ending on the last day of
such calendar month during the term of this Agreement.

     “SPV Purchaser Notes” has the meaning set forth in the Purchase and Sale Agreement.

     “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Federal Reserve Board or other Governmental Authority to
which the Administrator or any Purchaser is subject with respect to the Base CD Rate, for new
negotiable nonpersonal time deposits in dollars of over $100,000 with maturities approximately
equal to three months. The Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

     “Sub-Servicer” has the meaning set forth in Section 8.1(d).

     “Subsidiary” means a corporation or other Person of which LOL and/or its other
Subsidiaries own, directly or indirectly, such number of outstanding shares as have more than
fifty-one percent (51%) of the ordinary voting power for the election of directors.

     “Successor Notice” has the meaning set forth in Section 8.1(b).

     “Termination Date” means the earlier to occur of: (a) the Purchase Termination Date;
and (b) the Scheduled Termination Date.

     “Termination Event” has the meaning set forth in Section 10.1.

     “Termination Period” means the period from and including the earlier to occur of the
Termination Date or the date of occurrence of a Termination Event, through the Final Payout Date.

     “Three-Month Secondary CD Rate” means, for any day, the secondary market rate for
three-month certificates of deposit reported as being in effect on such day (or, if such day is not
a Business Day, the next preceding Business Day) by the Federal Reserve Board through the public
information telephone line of the Federal Reserve Bank of New York (which rate will, under the
current practices of the Federal Reserve Board, be published in Federal Reserve Statistical Release
H.15 (519) during the week following such day) or, if such rate is not so reported on such day or
such next preceding Business Day, the average of the secondary market quotations for three-month
certificates of deposit of major

 

-17-

money center banks in New York City received at approximately
10:00 A.M., New York City time, on such day ( or, if such day is not a Business Day, on the next
preceding Business Day) by the Administrator from three negotiable certificate of deposit dealers
of recognized standing selected by it.

     “Transaction Documents” means this Agreement, the Lockbox Agreements, the Purchase and
Sale Agreement, any Credit and Collection Policy, the Fee Letter and other documents to be executed
and delivered in connection herewith.

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

     “Unmatured Termination Event” means any event which, with the giving of notice or
lapse of time, or both, would become a Termination Event.

     “Unpaid Balance” of any Receivable means at any time the unpaid principal amount
thereof.

     “Voting Participant” has the meaning set forth in Section 12.3(b).

     “Yield” means for any Settlement Period:

          C x YR x ED + LF

                     360

     where:

	 	C  	=  	 the daily average (calculated at the close of business each day) of the Capital during such Settlement Period,
	 
	 	YR  	=  	 the Yield Rate for such Settlement Period, and
	 
	 	ED  	=  	 the actual number of days elapsed during such Settlement Period.
	 
	 	LF   	 =   	 the Liquidation Fee, if any, during such Settlement Period.

     “Yield Rate” means for any Settlement Period, as Seller may elect upon written notice
to Administrator delivered not later than the third (3rd) Business Day prior to the
commencement of any such Settlement Period.

          (a) the sum of (x) the LIBOR Rate, plus eighty-seven and a half (87.5) basis points;
or

 

-18-

          (b) the Alternate Base Rate;

provided, however, that (i) in the event the LIBOR Rate shall not be available or
cannot reasonably be determined by the Administrator for any reason or any present or future law,
regulation, treaty or directive or the interpretation or application thereof shall make it unlawful
for any Purchaser to calculate Yield on its Capital based on the LIBOR Rate, then upon the delivery
of written notice to the Administrator and the Seller to that effect, the Yield Rate shall be the
Alternate Base Rate unless and until the Administrator and the Seller is notified in writing to the
contrary and (ii) on any day during a Settlement Period when any Termination Event shall have
occurred and be continuing, the Yield Rate for the Capital shall mean the Default Rate.

     “Yield Reserve” means, at any time, an amount equal to the product of (i) (the Yield
Rate plus the Servicer’s Fee Rate) divided by 360; (ii) the Days Sales
Outstanding; and (iii) the Stress Factor of 1.0 x.

     B. Other Terms. All accounting terms not specifically defined herein shall be
construed in accordance with GAAP. All terms used in Article 9 of the UCC in the State of
Colorado, and not specifically defined herein, are used herein as defined in such Article 9.

     C. Computation of Time Periods. Unless otherwise stated in this Agreement, in the
computation of a period of time from a specified date to a later specified date, the word “from”
means “from and including” and the words “to” and “until” each means “to but excluding”.

     D. Interpretation. In each Transaction Document, unless a clear contrary intention
appears:

(i) the singular number includes the plural number and vice versa;

(ii) reference to any Person includes such Person’s successors and assigns but, if
applicable, only if such successors and assigns are permitted by the Transaction
Documents, and reference to a Person in a particular capacity excludes such Person
in any other capacity or individually;

(iii) reference to any gender includes each other gender;

(iv) reference to any agreement (including any Transaction Document), document or
instrument means such agreement, document or instrument as amended, supplemented or
modified and in effect from time to time in accordance with the terms thereof and,
if applicable, the terms of the other Transaction Documents and reference to any
promissory note includes any promissory note which is an extension or renewal
thereof or a substitute or replacement therefor; and

(v) reference to any Applicable Law means such Applicable Law as amended, modified,
codified, replaced or reenacted, in whole or in part, and in effect from time to
time, including rules and regulations promulgated thereunder and reference to any
section or other provision of any Applicable Law means that provision of such
Applicable Law from time to time in effect and constituting the substantive
amendment, modification, codification, replacement or reenactment of such section or
other provision.exv10w3

 

EXHIBIT
10.3

EXECUTION COPY

THIRD AMENDMENT TO

PURCHASE AND SALE AGREEMENT

THIRD AMENDMENT, dated as of September 7, 2006 (this “Amendment”), to that certain Purchase
and Sale Agreement dated as of December 18, 2001, as amended by a First Amendment to Purchase and
Sale Agreement dated as of March 31, 2004, and by a Second Amendment to Purchase and Sale Agreement
dated as of October 22, 2004 (as so amended, the “Purchase and Sale Agreement”), by and
among LAND O’LAKES, INC., a Minnesota cooperative corporation (“LOL”), LAND O’LAKES PURINA
FEED LLC, a Delaware limited liability company (“Feed”), and PURINA MILLS, LLC, a Delaware
limited liability company, as originators (each an “Originator” and collectively, the
“Originators”), Feed, as initial Servicer, and LOL SPV, LLC, a Delaware limited liability
company, as purchaser (the “SPV Purchaser”).

W I T N E S S E T H:

     WHEREAS, pursuant to the Purchase and Sale Agreement, each of the Originators has sold or
contributed, and will continue to sell or contribute, all of the Receivables and Related Rights
that it owns, and from time to time hereafter will own or that it will from time to time hereafter
originate in the ordinary course of each Originator’s respective businesses, to the SPV Purchaser;

     WHEREAS, the SPV Purchaser has entered into an Amended and Restated Receivables Purchase
Agreement, dated as of March 31, 2004 (the “Existing Receivables Purchase Agreement”), by
and among the SPV Purchaser, as Seller, Feed, as initial Servicer, CoBank, ACB, as Administrator,
and any other Persons that may, from time to time, be party thereto as Purchasers, pursuant to
which, among other things, the SPV Purchaser may sell to the Administrator, for the benefit of the
Purchasers, undivided interests in the Receivables and Related Rights;

     WHEREAS, the parties to the Existing Receivables Purchase Agreement desire to amend and
restate the Existing Receivables Purchase Agreement on the terms and conditions set forth in that
certain Second Amended and Restated Receivables Purchase Agreement, dated as of September 7, 2006
(the “Second Amended and Restated Receivables Purchase Agreement”), by and among the SPV
Purchaser, as Seller, LOL, as initial Servicer, CoBank, ACB, as Administrator, and any other
Persons that may, from time to time, be party thereto as Purchasers;

     WHEREAS, the amendment and restatement of the Existing Receivables Purchase Agreement also
requires certain conforming amendments to the Purchase and Sale Agreement; and

     WHEREAS, the parties to the Purchase and Sale Agreement desire to amend the Purchase and Sale
Agreement in the manner set forth herein;

     NOW, THEREFORE, the parties hereto hereby agree as follows:

-1-

 

     1. Defined Terms. Terms defined in the Purchase and Sale Agreement and used herein
shall have the meanings given to them in the Purchase and Sale Agreement (as the same may be
amended hereby).

     2. Acknowledgment of and Consent to Second Amended and Restated Receivables Purchase
Agreement. Each of the parties hereto acknowledges and consents to the amendment and
restatement of the Existing Receivables Purchase Agreement on the terms and conditions set forth in
the Second Amended and Restated Receivables Purchase Agreement

     3. Amendment to Definition of “Receivables Purchase Agreement” under the Purchase and Sale
Agreement. Each of the parties hereto agrees that all references to the “Receivables Purchase
Agreement” contained in the Purchase and Sale Agreement shall be deemed to be references to the
Second Amended and Restated Receivables Agreement (as the same may be amended, amended and
restated, supplemented or otherwise modified from time to time).

     4. Amendment to Purchase and Sale Agreement Regarding Servicer. Each of the parties
hereto accepts, acknowledges and ratifies the appointment of LOL as Servicer under the Receivables
Purchase Agreement and under the Purchase and Sale Agreement. LOL accepts and agrees to perform
the role of Servicer under the Receivables Purchase Agreement and the Purchase and Sale Agreement.
Each reference to “Servicer” in the Purchase and Sale Agreement shall be to LOL, acting in its
capacity as Servicer.

     5. Amendment to Section 2.1(c) of the Purchase and Sale Agreement. The Purchase and
Sale Agreement is hereby amended by deleting clause (ii) in the definition of “Cost Rate”
contained in Section 2.1(c) of the Purchase and Sale Agreement and replacing it with the
following:

     “(ii) eighty-seven and one half (87.5) basis points.”

     6. Amendment to Section 4.1(h) of the Purchase and Sale Agreement. Section
4.1(h) of the Purchase and Sale Agreement is hereby amended by deleting the legend set forth
therein and replacing it with the following legend:

THE RECEIVABLES DESCRIBED HEREIN HAVE BEEN SOLD OR CONTRIBUTED TO LOL SPV, LLC, PURSUANT TO
A PURCHASE AND SALE AGREEMENT, DATED AS OF DECEMBER 18, 2001, AS AMENDED FROM TIME TO TIME,
BY AND BETWEEN LOL SPV, LLC, LAND O’LAKES, INC., LAND O’LAKES PURINA FEED LLC, AND PURINA
MILLS, LLC; AN OWNERSHIP AND SECURITY INTEREST IN THE RECEIVABLES DESCRIBED HEREIN HAS BEEN
GRANTED AND ASSIGNED TO COBANK, ACB, AS ADMINISTRATOR, PURSUANT TO A SECOND AMENDED AND
RESTATED RECEIVABLES PURCHASE AGREEMENT DATED AS OF SEPTEMBER 7, 2006, AS AMENDED FROM TIME
TO TIME, BY AND AMONG LOL SPV, LLC (AS SELLER), LAND
O’LAKES, INC. (AS INITIAL SERVICER), COBANK, ACB, AND THE OTHER PURCHASERS FROM TIME TO
TIME PARTY THERETO; AND COBANK, ACB (AS ADMINISTRATOR);

-2-

 

     7. Conditions to Effectiveness. This Amendment shall become effective on the date
(the “Amendment Effective Date”) on which the following conditions have been satisfied:

(a) Execution and Delivery of Documents. Each of the Originators shall have
executed and delivered this Amendment to SPV Purchaser, and the Administrator shall have
received a copy of this Amendment executed by each of the Originators and the SPV
Purchaser.

(b) Effectiveness of Second Amended and Restated Receivables Purchase Agreement.
The SPV Purchaser and the Administrator shall have received reasonably satisfactory
evidence that the Second Amended and Restated Receivables Purchase Agreement has become
effective.

(c) Representations and Warranties. The SPV Purchaser shall be satisfied that the
representations and warranties set forth in Section 8 hereof are true and correct on and as
of the Amendment Effective Date.

     8. Representations and Warranties. To induce the SPV Purchaser to enter into this
Amendment, by its signature below, each of the Originators hereby represents and warrants to the
SPV Purchaser that:

(a) This Amendment has been duly executed and delivered by each of the Originators. The
execution and delivery by each of the Originators of this Amendment has been duly
authorized by proper proceedings, and this Amendment constitutes the legal, valid and
binding obligation of each of the Originators, enforceable against each Originator in
accordance with its terms.

(b) The execution and delivery by each of the Originators of this Amendment and the
performance by each of the Originators of this Amendment and the Purchase and Sale
Agreement, as amended hereby, (i) are within the corporate or other legal authority of such
Person, (ii) have been duly authorized by all necessary corporate or other proceedings and
(iii) do not and will not conflict with or result in any breach or contravention of any
Applicable Law or any Contractual Obligation or operating agreement or other governing
document of each Originator.

(c) After giving effect to this Amendment, each of the representations and warranties of
each of the Originators contained in Article V of the Purchase and Sale Agreement or in any
certificate or report delivered pursuant to or in connection with the Purchase and Sale
Agreement was true in all respects as of the date as of which it was made and is true in
all respects on the date hereof (except to the extent that such representations and
warranties relate expressly to an earlier date).

-3-

 

(d) After giving effect to this Amendment, no Unmatured Termination Event or Termination
Event has occurred and is continuing.

(e) Each of the Originators’ obligations and liabilities to the SPV Purchaser and the
Administrator, as evidenced by or otherwise arising under the Purchase and Sale Agreement or
the Transaction Documents, are hereby ratified and confirmed in all respects.

     10. Severability; Headings. Any provision of this Amendment which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. The section and subjection headings used
in this Amendment are for convenience of reference only and are not to affect the construction
hereof or to be taken into consideration in the interpretation hereof.

     11. Continuing Effect of Other Documents. This Amendment shall not constitute an
amendment or waiver of any other provision of the Purchase and Sale Agreement not expressly
referred to herein and shall not be construed as a waiver or consent to any further or future
action on the part of any Originator that would require a waiver or consent of the SPV Purchaser
(with the consent of the Administrator). Except as expressly amended, modified and supplemented
hereby, the provisions of the Purchase and Sale Agreement are and shall remain in full force and
effect.

     12. GOVERNING LAW. THIS AMENDMENT, INCLUDING THE RIGHTS AND DUTIES OF THE PARTIES
HERETO, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
MINNESOTA (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF).

     13. Miscellaneous. From and after the date hereof, each reference to the Purchase and
Sale Agreement in the Purchase and Sale Agreement and the other Transaction Documents shall be
deemed to be a reference to the Purchase and Sale Agreement as modified by this Amendment. This
Amendment may be executed in any number of counterparts, but all of such counterparts shall
together constitute but one and the same agreement. Delivery of an executed counterpart of a
signature page by facsimile transmission shall be effective as delivery of a manually executed
counterpart of this Amendment. In making proof of this Amendment, it shall not be necessary to
produce or account for more than one such counterpart.

[Signatures follow on next page.]

-4-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the day and year first above written.

	 	 	 	 	 	 
	 	 	LAND O’LAKES, INC. as Originator and as new Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	LAND O’LAKES PURINA FEED LLC, as Originator and as former Servicer
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	PURINA MILLS, LLC, as Originator
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	LOL SPV, LLC, as SPV Purchaser
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

-5-

 

ACKNOWLEDGED AND CONSENTED TO:

COBANK, ACB, as Administrator

By:                                                             

Name:                                                         

Title:                                                           

-6-

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