Document:

ex10_3.htm

    
      

      

    

    Massachusetts
      Warranty Deed

    

    

    I,
DUANE
      C. BENNETT as TRUSTEE OF
      NORTHEAST NOMINEE TRUST

    

    For
      consideration of less than One Hundred and 00/100 ($100.00) DOLLARS PAID

    

    Grant
      to
FRONT STREET FIRST
      CORPORATION, a Nevada corporation with a mailing address of P.O. Box 243,
      Chimney Rock, North Carolina, 28720

    

    With
      Warranty
      Covenants

    

    The
      land
      in Chicopee situated on the Southerly side of Front Street and bounded and
      described as follows:

    

    Beginning
      at the Northwesterly corner of land formerly of Jesse Bannister, now or formerly
      of one Rutka; and running thence SOUTHERLY on said land now or formerly of
      Rutka, two hundred twenty-three (223) feet, more or less, to land formerly
      of
      George M. Strearns, now or formerly of Morris Leahy; thence WESTERLY on last
      named land, forty-nine (49) feet to land now or formerly of Isabel H. Wright;
      thence NORTHERLY thereon two hundred eighteen (218) feet, more or less, to
      said
      Front Street; and thence EASTERLY on said Front Street, fifty-six (56) feet
      to
      the point of beginning.

    

    Being
      the
      same premises conveyed to me by deed of James L. Domingos and Ann T. Domingos
      a/k/a Ann J. Domingos dated February 14, 2005 and recorded in Hampden County
      Registry of deeds Book 14826 Page 498.

     

    No
      Title
      examination done.

    

    Executed
      as a sealed instrument this 12th
      day of
      March, 2008.

    

    

    /s/
      Duane C. Bennett

    DUANE
      C. BENNETT AS TRUSTEE

    OF
      NORTHEAST NOMINEE TRUST

    

    

    STATE
      OF NORTH CAROLINA

    Mecklenburg,
      s.s.

    

    On
      this 12th
      day of
      March, 2008, before me, the undersigned notary public personally appeared DUANE C. BENNETT, AS TRUSTEE
      OF
      NORTHEAST NOMINEE TRUST, being personally known to me and whose name is
      signed to the foregoing instrument and acknowledged to me that he signed it
      voluntarily as TRUSTEE OF
      NORTHEAST NOMINEE TRUST.

    

    

    /s/
      David Veach                                                                           

    Notary
      Public David Veach

    My
      Commission expires:  November 4th,
      2012ex10_4.htm

    
      

      

    

    KNOW
      ALL MEN BY THESE PRESENTS
      THAT, NORTHEAST NOMINEE TRUST  of Springfield, Hampden County,
      Massachusetts for consideration paid, grants to JAMES L. DOMINGOS and ANN T.
      DOMINGOS of Chicopee, Massachusetts with MORTGAGE  COVENANTS to secure
      the payment of FORTY THOUSAND AND NO/ 100 ($40,000.00) Dollars as provided
      in a
      note of even date.

    

    

    EXHIBIT
      “A”

     

    The
      Mortgagee agrees to subordinate this mortgage to any new subsequent mortgage
      that the mortgager may refinance with, provided the principal amount of the
      new
      mortgage does not exceed eighty percent (80%) of the appraised value of the
      premises.

     

    
 

    Subject
      to rights, conditions and provisions of record.

    

    Being
      the
      same premises as conveyed to the grantor herein.

    

    This
      mortgage may not be assumed.

    

    This
      Mortgage is upon the statutory condition, for any breach of which the mortgagee
      shall have the statutory power of sale.

    

    EXECUTED
      AS A SEALED INSTRUMENT THIS 15TH
      day of
      February, 2005

    

    

    

    NORTHEAST
      NOMINEE TRUST

    BY
      DUANE C. BENNETT,
      Trustee

    

    

     

    

    

    THE
      COMMONWEALTH OF MASSACHUSETTS

    

    HAMPDEN,
      ss.                                                                                                                                            
February 15, 2005

    

    On
      this
      15th
      day February, 2005, before me, the undersigned notary public, personally
      appeared DUANE C. BENNETT
      TRUSTEE OF NORTHEAST NOMINEE TRUST and proved to me through satisfactory
      evidence of identification, which was a Massachusetts Driver’s License, to be
      the person whose name is signed on the preceding or attached documents, and
      who
      swore or affirmed to me that the contents of the documents are truthful and
      accurate to the best of his knowledge and belief and acknowledge to me that
      he
      signed it voluntarily its stated purpose.

     

    Notary
      Public   Dennis E. Tully

    

    My
      commission
      expires:  May 13, 2005

    

     

    

    

    Exhibit
      “A”

    

    

    The
      land
      in Chicopee situated on the Southerly side of Front Street and bounded and
      described as follows:

    

    Beginning
      at the Northwesterly corner of land formerly of Jesse Bannister, now or formerly
      of one Rutka: and running thence SOUTHERLY on said land now or formerly of
      Rutka, two hundred twenty-three (223)

    Feet,
      more or less, to land formerly of George M. Stearns, now or formerly of Morris
      Leahy; thence WESTERLY on last- named land, forty  of Isabel H.
      Wright; thence NORTHERLY thereon, two hundred eighteen (218) feet, more or
      less,
      to said Front Street; and thence Easterly on said Front Street, fifty- six
      (56)
      feet to the point of beginning.

    SUBJECT
      to first mortgage to Chicopee Savings Bank dated February 15, 2005 in the
      original principal amount of $185,000.00 and recorded just prior hereto.

    

    BEING
      the
      same premises conveyed to me by deed of James and Ann Domingos dated February
      14, 2005 and recorded prior hereto.

    

    
 

    

    

    DONALD
      E. ASHE, REGISTER

    HAMPDEN
      COUNTY REGISTRY OF DEEDSEX-10.29

The Andersons, Inc. 

$92,000,000 4.80% Senior Guaranteed Notes, Series A,

due March 27, 2011

$61,500,000 6.12% Senior Guaranteed Notes, Series B,

due March 27, 2015

$41,500,000 6.78% Senior Guaranteed Notes, Series C,

due March 27, 2018

Note Purchase Agreement

Dated as of March 27, 2008

1

Table of Contents

	 	 	 	 	 
	Section

Section 1.

Section 2.

Section 3.

Section 4.

Section 4.1.

Section 4.2.

Section 4.3.

Section 4.4.

Section 4.5.

Section 4.6.

Section 4.7.

Section 4.8.

Section 4.9.

Section 4.10.

Section 4.11.

Section 4.12.

Section 5.

Section 5.1.

Section 5.2.

Section 5.3.

Section 5.4.

Section 5.5.

Section 5.6.

Section 5.7.

Section 5.8.

Section 5.9.

Section 5.10.

Section 5.11.

Section 5.12.

Section 5.13.

Section 5.14.

Section 5.15.

Section 5.16.

Section 5.17.

Section 5.18.

Section 5.19.

Section 5.20.

Section 6.

Section 6.1.

Section 6.2.

Section 7.

Section 7.1.

Section 7.2.

Section 7.3.

Section 8.

Section 8.1.

Section 8.2.

Section 8.3.

Section 8.4.

Section 8.5.

Section 8.6.

Section 8.7.

Section 8.8.

Section 9.

Section 9.1.

Section 9.2.

Section 9.3.

Section 9.4.

Section 9.5.

Section 9.6.

Section 9.7.

Section 9.8.

Section 9.9.

Section 10.

Section 10.1.

Section 10.2.

Section 10.3.

Section 10.4.

Section 10.5.

Section 10.6.

Section 10.7.

Section 10.8.

Section 11.

Section 12.

Section 12.1.

Section 12.2.

Section 12.3.

Section 12.4.

Section 13.

Section 13.1.

Section 13.2.

Section 13.3.

Section 14.

Section 14.1.

Section 14.2.

Section 15.

Section 15.1.

Section 15.2.

Section 16.

Section 17.

Section 17.1.

Section 17.2.

Section 17.3.

Section 17.4.

Section 18.

Section 19.

Section 20.

Section 21.

Section 22.

Section 22.1.

Section 22.2.

Section 22.3.

Section 22.4.

Section 22.5.

Section 22.6.

Section 22.7.

Section 22.8.

Signature

	 	Heading

Authorization of Notes

Sale and Purchase of Notes

Closing of Notes

Conditions to Closing

Representations and Warranties

Performance; No Default

Compliance Certificates

Opinions of Counsel

Purchase Permitted by Applicable Law, Etc

Sale of Other 2007A Notes

Payment of Special Counsel Fees

Private Placement Number

Changes in Corporate Structure

Funding Instructions

Proceedings and Documents

Subsidiary Guaranty

Representations and Warranties of the Company

Organization; Power and Authority

Authorization, Etc

Disclosure

Organization and Ownership of Shares of Subsidiaries; Affiliates

Financial Statements; Material Liabilities

Compliance with Laws, Other Instruments, Etc

Governmental Authorizations, Etc

Litigation; Observance of Agreements, Statutes and Orders

Taxes

Title to Property; Leases

Licenses, Permits, Etc

Compliance with ERISA

Private Offering by the Company

Use of Proceeds; Margin Regulations

Existing Indebtedness; Future Liens

Foreign Assets Control Regulations, Etc

Status under Certain Statutes

Environmental Matters

Ranking of Obligations

Solvency

Representations of the Purchasers

Purchase for Investment

Source of Funds

Information as to Company

Financial and Business Information

Officer’s Certificate

Visitation

Payment and Prepayment of the Notes

Required Prepayments

Optional Prepayments with Make-Whole Amount

Allocation of Partial Prepayments

Maturity; Surrender, Etc

Purchase of Notes

Make-Whole Amount

Mandatory Offer to Prepay

Prepayment in Connection with Sales of Assets

Affirmative Covenants

Compliance with Law

Insurance

Maintenance of Properties

Payment of Taxes and Claims

Corporate Existence, Etc

Books and Records

Subsidiary Guarantors

Priority of Obligations

Additional Restrictions

Negative Covenants

Transactions with Affiliates

Merger, Consolidation, Etc

Line of Business

Terrorism Sanctions Regulations

Liens

Sale of Assets, Etc

Certain Financial Ratios

Funded Indebtedness

Events of Default

Remedies on Default, Etc

Acceleration

Other Remedies

Rescission

No Waivers or Election of Remedies, Expenses, Etc

Registration; Exchange; Substitution of Notes

Registration of Notes

Transfer and Exchange of Notes

Replacement of Notes

Payments on Notes

Place of Payment

Home Office Payment

Expenses, Etc

Transaction Expenses

Survival

Survival of Representations and Warranties; Entire Agreement

Amendment and Waiver

Requirements

Solicitation of Holders of Notes

Binding Effect, Etc

Notes Held by Company, Etc

Notices

Reproduction of Documents

Confidential Information

Substitution of Purchaser

Miscellaneous

Successors and Assigns

Payments Due on Non-Business Days

Accounting Terms

Severability

Construction, Etc

Counterparts

Governing Law

Jurisdiction and Process; Waiver of Jury Trial

	 	Page

2

	 	 	 	 	 
	Schedule A

	 	—
	 	Information Relating to Purchasers
	Schedule B

	 	—
	 	Defined Terms
	Schedule 5.3

	 	—
	 	Disclosure Materials
	Schedule 5.4

	 	—
	 	Subsidiaries of the Company and Ownership of Subsidiary Stock
	Schedule 5.5

	 	—
	 	Financial Statements
	Schedule 5.15

	 	—
	 	Existing Indebtedness and Liens
	Exhibit 1(a)

	 	—
	 	Form of 4.80% Senior Guaranteed Notes, Series A, due March 27, 2011
	Exhibit 1(b)

	 	—
	 	Form of 6.12% Senior Guaranteed Notes, Series B, due March 27, 2015
	Exhibit 1(c)

	 	—
	 	Form of 6.78% Senior Guaranteed Notes, Series C, due March 27, 2018
	Exhibit 2

	 	—
	 	Form of Subsidiary Guaranty
	Exhibit 4.4(a)

	 	—
	 	Form of Opinion of General Counsel for the Company
	Exhibit 4.4(b)

	 	—
	 	Form of Opinion of Special Counsel for the Purchasers

3

The Andersons, Inc. 

480 West Dussel Drive

Maumee, Ohio 43537

4.80% Senior Guaranteed Notes, Series A, due March 27, 2011

6.12% Senior Guaranteed Notes, Series B, due March 27, 2015

6.78% Senior Guaranteed Notes, Series C, due March 27, 2018

As of March 27, 2008

To Each of the Purchasers Listed in

Schedule A Hereto:

Ladies and Gentlemen:

The Andersons, Inc., an Ohio corporation (the “Company”), agrees with each of the purchasers
whose names appear at the end hereof (each, a “Purchaser” and, collectively, the “Purchasers”) as
follows:

	 	 	Section 1. Authorization of Notes.

The Company will authorize the issue and sale of $92,000,000 aggregate principal amount of its
4.80% Senior Guaranteed Notes, Series A, due March 27, 2011 (the “Series A Notes”), $61,500,000
aggregate principal amount of its 6.12% Senior Guaranteed Notes, Series B, due March 27, 2015 (the
“Series B Notes”) and $41,500,000 aggregate principal amount of its 6.78% Senior Guaranteed Notes,
Series C, due March 27, 2018 (the “Series C Notes”) and together with the Series A Notes and the
Series B Notes, the “Notes,” such term to include any such notes of any series issued in
substitution therefor pursuant to Section 13). The Series A Notes, Series B Notes and Series C
Notes shall be substantially in the form set out in Exhibit 1(a), Exhibit 1(b) and Exhibit 1(c),
respectively. Certain capitalized and other terms used in this Agreement are defined in
Schedule B; and references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a
Schedule or an Exhibit attached to this Agreement.

	 	 	Section 2. Sale and Purchase of Notes.

Subject to the terms and conditions of this Agreement, the Company will issue and sell to each
Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in
Section 3, Notes in the principal amount and of the series specified opposite such Purchaser’s name
in Schedule A at the purchase price of 100% of the principal amount thereof. The Purchasers’
obligations hereunder are several and not joint obligations and no Purchaser shall have any
liability to any Person for the performance or non-performance of any obligation by any other
Purchaser hereunder. Each series of Notes issued hereunder are sometimes referred to as Notes of a
“series.”

The payment by the Company of all amounts due with respect to the Notes and the performance by
the Company of its obligations under this Agreement may from time to time be absolutely and
unconditionally guaranteed by the Subsidiary Guarantors pursuant and subject to the terms of a
Subsidiary Guaranty, which shall be substantially in the form of Exhibit 2 attached hereto (as
amended, modified or supplemented from time to time, the “Subsidiary Guaranty”), and otherwise in
accordance with the provisions of Section 9.7 hereof.

	 	 	Section 3. Closing of Notes.

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the
offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603, at 10:00 a.m.,
Chicago time, at a closing (the “Closing”) on March 27, 2008 or on such other Business Day
thereafter on or prior to March 31, 2008 as may be agreed upon by the Company and the Purchasers.
At the Closing the Company will deliver to each Purchaser the Notes of the series to be purchased
by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of
at least $100,000 as such Purchaser may request) dated the date of the Closing and registered in
such Purchaser’s name (or in the name of its nominee), against delivery by such Purchaser to the
Company or its order of immediately available funds in the amount of the purchase price therefor by
wire transfer of immediately available funds for the account of the Company to account
number 5690005 at JPMorgan Chase Bank, 1 Chase Plaza, Chicago, Illinois, ABA Number 071 000 013.
If at the Closing the Company shall fail to tender such Notes to any Purchaser as provided above in
this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to
such Purchaser’s satisfaction, such Purchaser shall, at its election, be relieved of all further
obligations under this Agreement, without thereby waiving any rights such Purchaser may have by
reason of such failure or such nonfulfillment.

	 	 	Section 4. Conditions to Closing.

Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at
the Closing is subject to the fulfillment to such Purchaser’s satisfaction, prior to or at the
Closing, of the following conditions:

Section 4.1. Representations and Warranties. The representations and warranties of the
Company in this Agreement and of the Subsidiary Guarantors in the Subsidiary Guaranty shall be
correct when made and at the time of the Closing.

Section 4.2. Performance; No Default. The Company and the Subsidiary Guarantors shall have
performed and complied with all their respective agreements and conditions contained in this
Agreement and the Subsidiary Guaranty required to be performed or complied with by it prior to or
at the Closing and after giving effect to the issue and sale of the Notes (and the application of
the proceeds thereof as contemplated by Section 5.14) no Default or Event of Default shall have
occurred and be continuing. Neither the Company nor any Subsidiary shall have entered into any
transaction since the date of the Memorandum that would have been prohibited by Sections 10.1,
10.2, 10.3, 10.5 and 10.6 had such Sections applied since such date.

Section 4.3. Compliance Certificates.

(a) Officer’s Certificate. The Company and each Subsidiary Guarantor shall have delivered to
such Purchaser an Officer’s Certificate, dated the date of the Closing, certifying that the
conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled.

(b) Secretary’s Certificate. The Company and each Subsidiary Guarantor shall have delivered
to such Purchaser a certificate of its Secretary or Assistant Secretary, dated the date of Closing,
certifying as to the resolutions attached thereto and other corporate proceedings relating to the
authorization, execution and delivery of, with respect to the Company, the Notes and this Agreement
and, with respect to each Subsidiary Guarantor, the Subsidiary Guaranty.

Section 4.4. Opinions of Counsel. Such Purchaser shall have received opinions in form and
substance satisfactory to such Purchaser, dated the date of the Closing (a) from Naran U.
Burchinow, Esq., General Counsel for the Company and Subsidiary Guarantors, covering the matters
set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions
contemplated hereby as such Purchaser or its counsel may reasonably request (and the Company hereby
instructs its counsel to deliver such opinion to the Purchasers) and (b) from Chapman and Cutler
LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the
form set forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as
such Purchaser may reasonably request.

Section 4.5. Purchase Permitted by Applicable Law, Etc. On the date of the Closing such
Purchaser’s purchase of Notes shall (a) be permitted by the laws and regulations of each
jurisdiction to which such Purchaser is subject, without recourse to provisions (such as
section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance
companies without restriction as to the character of the particular investment, (b) not violate any
applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of
Governors of the Federal Reserve System) and (c) not subject such Purchaser to any tax, penalty or
liability under or pursuant to any applicable law or regulation, which law or regulation was not in
effect on the date hereof. If requested by such Purchaser, such Purchaser shall have received an
Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably
specify to enable such Purchaser to determine whether such purchase is so permitted.

Section 4.6. Sale of Other Notes. Contemporaneously with the Closing the Company shall sell
to each other Purchaser and each other Purchaser shall purchase the Notes to be purchased by it at
the Closing as specified in Schedule A.

Section 4.7. Payment of Special Counsel Fees. Without limiting the provisions of
Section 15.1, the Company shall have paid on or before the Closing the fees, charges and
disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent reflected
in a statement of such counsel rendered to the Company at least one Business Day prior to the
Closing.

Section 4.8. Private Placement Number. A Private Placement Number issued by Standard & Poor’s
CUSIP Service Bureau (in cooperation with the SVO) shall have been obtained for each series of the
Notes.

Section 4.9. Changes in Corporate Structure. Neither the Company nor any Subsidiary Guarantor
shall not have changed its jurisdiction of incorporation or organization, as applicable, or been a
party to any merger or consolidation or succeeded to all or any substantial part of the liabilities
of any other entity, at any time following the date of the most recent financial statements
referred to in Schedule 5.5.

Section 4.10. Funding Instructions. At least three Business Days prior to the date of the
Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on
letterhead of the Company confirming the information specified in Section 3 including (i) the name
and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii) the account
name and number into which the purchase price for the Notes is to be deposited.

Section 4.11. Proceedings and Documents. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and instruments incident to
such transactions shall be satisfactory to such Purchaser and its special counsel, and such
Purchaser and its special counsel shall have received all such counterpart originals or certified
or other copies of such documents as such Purchaser or such special counsel may reasonably request.

Section 4.12. Subsidiary Guaranty. Each Subsidiary Guarantor shall have executed and
delivered (and each Purchaser shall have received an original copy thereof) the Subsidiary
Guaranty, and the Subsidiary Guaranty shall be in full force and effect.

	 	 	Section 5. Representations and Warranties of the Company.

The Company represents and warrants to each Purchaser that:

Section 5.1. Organization; Power and Authority. The Company is a corporation duly organized,
validly existing and in good standing under the laws of its jurisdiction of incorporation, and is
duly qualified as a foreign corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company has the corporate power and authority to own or
hold under lease the properties it purports to own or hold under lease, to transact the business it
transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to
perform the provisions hereof and thereof.

Section 5.2. Authorization, Etc. This Agreement, the Notes and the Subsidiary Guaranty have
been duly authorized by all necessary corporate or other legal entity action on the part of the
Company and each Subsidiary Guarantor party thereto, and this Agreement constitutes, and upon
execution and delivery thereof each Note and the Subsidiary Guaranty will constitute, a legal,
valid and binding obligation of the Company and each Subsidiary Guarantor party thereto enforceable
against the Company and such Subsidiary Guarantor in accordance with its terms, except as such
enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

Section 5.3. Disclosure. The Company, through its agent, Wells Fargo Capital Markets has
delivered to each Purchaser a copy of a Confidential Private Placement Memorandum, dated February
2008 (the “Memorandum”), relating to the transactions contemplated hereby. The Memorandum fairly
describes, in all material respects, the general nature of the business and principal properties of
the Company and its Subsidiaries. This Agreement, the Memorandum and the documents, certificates
or other writings delivered to the Purchasers by or on behalf of the Company in connection with the
transactions contemplated hereby and identified in Schedule 5.3, and the financial statements
listed in Schedule 5.5 (this Agreement, the Memorandum and such documents, certificates or other
writings and such financial statements delivered to each Purchaser prior to March 7, 2008 being
referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein not misleading in light of the circumstances under which they were made. Except
as disclosed in the Disclosure Documents, since December 31, 2007, there has been no change in the
financial condition, operations, business, properties or prospects of the Company or any Subsidiary
except changes that individually or in the aggregate could not reasonably be expected to have a
Material Adverse Effect. There is no fact known to the Company that could reasonably be expected
to have a Material Adverse Effect that has not been set forth herein or in the Disclosure
Documents.

Section 5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates.
(a) Schedule 5.4 contains (except as noted therein) complete and correct lists (i) of the Company’s
Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its
organization, and the percentage of shares of each class of its capital stock or similar equity
interests outstanding owned by the Company and each other Subsidiary, and whether such Subsidiary
will be a Subsidiary Guarantor as of the date of Closing, (ii) of the Company’s Affiliates, other
than Subsidiaries, and (iii) of the Company’s directors and senior officers.

(b) All of the outstanding shares of capital stock or similar equity interests of each
Subsidiary shown in Schedule 5.4 as being owned by the Company and its Subsidiaries have been
validly issued, are fully paid and nonassessable and are owned by the Company or another Subsidiary
free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).

(c) Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly
organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and is duly qualified as a foreign corporation or other legal entity and is in good
standing in each jurisdiction in which such qualification is required by law, other than those
jurisdictions as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Each
such Subsidiary has the corporate or other power and authority to own or hold under lease the
properties it purports to own or hold under lease, to transact the business it transacts and
proposes to transact and, with respect to each Subsidiary Guarantor, to execute and deliver the
Subsidiary Guaranty and to perform the provisions thereof.

(d) No Subsidiary is a party to, or otherwise subject to any legal, regulatory, contractual or
other restriction (other than this Agreement, the agreements listed on Schedule 5.4 and customary
limitations imposed by corporate law or similar statutes) restricting the ability of such
Subsidiary to pay dividends out of profits or make any other similar distributions of profits to
the Company or any of its Subsidiaries that owns outstanding shares of capital stock or similar
equity interests of such Subsidiary.

Section 5.5. Financial Statements; Material Liabilities. The Company has delivered to each
Purchaser copies of the financial statements of the Company and its Subsidiaries listed on Schedule
5.5. All of said financial statements (including in each case the related schedules and notes)
fairly present in all material respects the consolidated financial position of the Company and its
Subsidiaries as of the respective dates specified in such Schedule and the consolidated results of
their operations and cash flows for the respective periods so specified and have been prepared in
accordance with GAAP consistently applied throughout the periods involved except as set forth in
the notes thereto (subject, in the case of any interim financial statements, to normal year-end
adjustments). The Company and its Subsidiaries do not have any Material liabilities that are not
disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

Section 5.6. Compliance with Laws, Other Instruments, Etc. The execution, delivery and
performance by the Company of this Agreement and the Notes will not (i) contravene, result in any
breach of, or constitute a default under, or result in the creation of any Lien in respect of any
property of the Company or any Subsidiary under, any indenture, mortgage, deed of trust, loan,
purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or
instrument to which the Company or any Subsidiary is bound or by which the Company or any
Subsidiary or any of their respective properties may be bound or affected, (ii) conflict with or
result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or Governmental Authority applicable to the Company or any
Subsidiary or (iii) violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary.

Section 5.7. Governmental Authorizations, Etc. No consent, approval or authorization of, or
registration, filing or declaration with, any Governmental Authority is required in connection with
the execution, delivery or performance by the Company of this Agreement or the Notes.

Section 5.8. Litigation; Observance of Agreements, Statutes and Orders. (a) There are no
actions, suits, investigations or proceedings pending or, to the knowledge of the Company,
threatened against or affecting the Company or any Subsidiary or any property of the Company or any
Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect.

(b) Neither the Company nor any Subsidiary is in default under any term of any agreement or
instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling
of any court, arbitrator or Governmental Authority or is in violation of any applicable law,
ordinance, rule or regulation (including without limitation Environmental Laws or the USA Patriot
Act) of any Governmental Authority, which default or violation, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

Section 5.9. Taxes. The Company and its Subsidiaries have filed all tax returns that are
required to have been filed in any jurisdiction, and have paid all taxes shown to be due and
payable on such returns and all other taxes and assessments levied upon them or their properties,
assets, income or franchises, to the extent such taxes and assessments have become due and payable
and before they have become delinquent, except for any taxes and assessments (i) the amount of
which is not individually or in the aggregate Material or (ii) the amount, applicability or
validity of which is currently being contested in good faith by appropriate proceedings and with
respect to which the Company or a Subsidiary, as the case may be, has established adequate reserves
in accordance with GAAP. The Company knows of no basis for any other tax or assessment that could
reasonably be expected to have a Material Adverse Effect. The charges, accruals and reserves on
the books of the Company and its Subsidiaries in respect of Federal, state or other taxes for all
fiscal periods are adequate. The Federal income tax liabilities of the Company and its
Subsidiaries have been finally determined (whether by reason of completed audits or the statute of
limitations having run) for all fiscal years up to and including the fiscal year ended December 31,
2003.

Section 5.10. Title to Property; Leases. The Company and its Subsidiaries have good and
sufficient title to their respective properties that individually or in the aggregate are Material,
including all such properties reflected in the most recent audited balance sheet referred to in
Section 5.5 or purported to have been acquired by the Company or any Subsidiary after said date
(except as sold or otherwise disposed of in the ordinary course of business), in each case free and
clear of Liens prohibited by this Agreement. All leases that individually or in the aggregate are
Material are valid and subsisting and are in full force and effect in all material respects.

Section 5.11. Licenses, Permits, Etc. (a) The Company and its Subsidiaries own or possess all
licenses, permits, franchises, authorizations, patents, copyrights, proprietary software, service
marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are
Material, without known conflict with the rights of others.

(b) To the best knowledge of the Company, no product of the Company or any of its Subsidiaries
infringes in any material respect any license, permit, franchise, authorization, patent, copyright,
proprietary software, service mark, trademark, trade name or other right owned by any other Person.

(c) To the best knowledge of the Company, there is no Material violation by any Person of any
right of the Company or any of its Subsidiaries with respect to any patent, copyright, proprietary
software, service mark, trademark, trade name or other right owned or used by the Company or any of
its Subsidiaries.

Section 5.12. Compliance with ERISA. (a) The Company and each ERISA Affiliate have operated
and administered each Plan in compliance with all applicable laws except for such instances of
noncompliance as have not resulted in and could not reasonably be expected to result in a Material
Adverse Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant to
Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has
occurred or exists that could reasonably be expected to result in the incurrence of any such
liability by the Company or any ERISA Affiliate, or in the imposition of any Lien on any of the
rights, properties or assets of the Company or any ERISA Affiliate, in either case pursuant to
Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or 412
of the Code or section 4068 of ERISA, other than such liabilities or Liens as would not be
individually or in the aggregate Material.

(b) The present value of the aggregate benefit liabilities under each of the Plans (other than
Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the
basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent
actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities. The term “benefit liabilities” has the meaning specified in
section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified
in section 3 of ERISA.

(c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities (and are not
subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of
Multiemployer Plans that individually or in the aggregate are Material.

(d) The expected postretirement benefit obligation (determined as of the last day of the
Company’s most recently ended fiscal year in accordance with Financial Accounting Standards Board
Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by
section 4980B of the Code) of the Company and its Subsidiaries is not Material.

(e) The execution and delivery of this Agreement and the issuance and sale of the Notes
hereunder will not involve any transaction that is subject to the prohibitions of section 406 of
ERISA or in connection with which a tax could be imposed pursuant to section 4975(c)(1)(A)-(D) of
the Code. The representation by the Company to each Purchaser in the first sentence of this
Section 5.12(e) is made in reliance upon and subject to the accuracy of such Purchaser’s
representation in Section 6.2 as to the sources of the funds used to pay the purchase price of the
Notes to be purchased by such Purchaser.

Section 5.13. Private Offering by the Company. Neither the Company nor anyone acting on its
behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy
any of the same from, or otherwise approached or negotiated in respect thereof with, any person
other than the Purchasers and not more than seventy (70) other Institutional Investors, each of
which has been offered the Notes at a private sale for investment. Neither the Company nor anyone
acting on its behalf has taken, or will take, any action that would subject the issuance or sale of
the Notes to the registration requirements of Section 5 of the Securities Act or to the
registration requirements of any securities or blue sky laws of any applicable jurisdiction.

Section 5.14. Use of Proceeds; Margin Regulations. The Company will apply the proceeds of the
sale of the Notes as set forth in [describe relevant section] of the Memorandum. No part of the
proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose
of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors
of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in
any securities under such circumstances as to involve the Company in a violation of Regulation X of
said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said
Board (12 CFR 220). Margin stock does not constitute more than 1% of the value of the consolidated
assets of the Company and its Subsidiaries and the Company does not have any present intention that
margin stock will constitute more than 1% of the value of such assets. As used in this Section,
the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to
them in said Regulation U.

Section 5.15. Existing Indebtedness; Future Liens. (a) Except as described therein,
Schedule 5.15 sets forth a complete and correct list of all outstanding Indebtedness of the Company
and its Subsidiaries as of December 31, 2007 (including a description of the obligors and obligees,
principal amount outstanding and collateral therefor, if any, and Guaranty thereof, if any), since
which date there has been no Material change in the amounts, interest rates, sinking funds,
installment payments or maturities of the Indebtedness of the Company or its Subsidiaries. Neither
the Company nor any Subsidiary is in default and no waiver of default is currently in effect, in
the payment of any principal or interest on any Indebtedness of the Company or such Subsidiary and
no event or condition exists with respect to any Indebtedness of the Company or any Subsidiary that
would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons
to cause such Indebtedness to become due and payable before its stated maturity or before its
regularly scheduled dates of payment.

(b) Except as disclosed in Schedule 5.15, neither the Company nor any Subsidiary has agreed or
consented to cause or permit in the future (upon the happening of a contingency or otherwise) any
of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by
Section 10.5.

(c) Neither the Company nor any Subsidiary is a party to, or otherwise subject to any
provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary,
any agreement relating thereto or any other agreement (including, but not limited to, its charter
or other organizational document) which limits the amount of, or otherwise imposes restrictions on
the incurring of, Indebtedness of the Company, except as specifically indicated in Schedule 5.15.

Section 5.16. Foreign Assets Control Regulations, Etc. (a) Neither the sale of the Notes by
the Company hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy
Act, as amended, or any of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive
order relating thereto.

(b) Neither the Company nor any Subsidiary (i) is a Person described or designated in the
Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or
in Section 1 of the Anti-Terrorism Order or (ii) engages in any dealings or transactions with any
such Person. The Company and its Subsidiaries are in compliance, in all material respects, with
the USA Patriot Act.

(c) No part of the proceeds from the sale of the Notes hereunder will be used, directly or
indirectly, for any payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an official capacity,
in order to obtain, retain or direct business or obtain any improper advantage, in violation of the
United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such
Act applies to the Company.

Section 5.17. Status under Certain Statutes. Neither the Company nor any Subsidiary is
subject to regulation under the Investment Company Act of 1940, as amended, the Public Utility
Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the
Federal Power Act, as amended.

Section 5.18. Environmental Matters. (a) Neither the Company nor any Subsidiary has knowledge
of any claim or has received any notice of any claim, and no proceeding has been instituted raising
any claim against the Company or any of its Subsidiaries or any of their respective real properties
now or formerly owned, leased or operated by any of them or other assets, alleging any damage to
the environment or violation of any Environmental Laws, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect.

(b) Neither the Company nor any Subsidiary has knowledge of any facts which would give rise to
any claim, public or private, of violation of Environmental Laws or damage to the environment
emanating from, occurring on or in any way related to real properties now or formerly owned, leased
or operated by any of them or to other assets or their use, except, in each case, such as could not
reasonably be expected to result in a Material Adverse Effect.

(c) Neither the Company nor any Subsidiary has stored any Hazardous Materials on real
properties now or formerly owned, leased or operated by any of them and has not disposed of any
Hazardous Materials in a manner contrary to any Environmental Laws in each case in any manner that
could reasonably be expected to result in a Material Adverse Effect; and

(d) All buildings on all real properties now owned, leased or operated by the Company or any
Subsidiary are in compliance with applicable Environmental Laws, except where failure to comply
could not reasonably be expected to result in a Material Adverse Effect.

Section 5.19. Ranking of Obligations. The Company’s payment obligations under this Agreement
and the Notes will, upon issuance of the Notes, rank at least pari passu, without preference or
priority, with all other unsecured and unsubordinated Indebtedness of the Company.

Section 5.20. Solvency.

(a) Assets Greater Than Liabilities. The fair value of the business and assets of each of the
Company and each Subsidiary exceeds the liabilities of the Company and each Subsidiary,
respectively.

(b) Meeting Liabilities. Neither the Company nor any Subsidiary:

(i) is engaged in any business or transaction, or is about to engage in any business or
transaction, for which its assets would constitute unreasonably small capital (within the
meaning of the Uniform Fraudulent Transfer Act, the Uniform Fraudulent Conveyance Act and
section 548 of the Bankruptcy Code); or

(ii) is unable to pay its debts as such debts mature.

(c) Intent. The Company is not entering into this Agreement or the Notes, and each Subsidiary
Guarantor is not entering into its Subsidiary Guaranty, in each case, with the intent to hinder,
delay, or defraud either current creditors or future creditors of the Company or such Subsidiary
Guarantor.

	 	 	Section 6. Representations of the Purchasers.

Section 6.1. Purchase for Investment. Each Purchaser severally represents that it is
purchasing the Notes for its own account or for one or more separate accounts maintained by such
Purchaser or for the account of one or more pension or trust funds and not with a view to the
distribution thereof, provided that the disposition of such Purchaser’s or their property shall at
all times be within such Purchaser’s or their control. Each Purchaser understands that the Notes
have not been registered under the Securities Act and may be resold only if registered pursuant to
the provisions of the Securities Act or if an exemption from registration is available, except
under circumstances where neither such registration nor such an exemption is required by law, and
that the Company is not required to register the Notes.

Section 6.2. Source of Funds. Each Purchaser severally represents that at least one of the
following statements is an accurate representation as to each source of funds (a “Source”) to be
used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser
hereunder:

(a) the Source is an “insurance company general account” (as the term is defined in the
United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in
respect of which the reserves and liabilities (as defined by the annual statement for life
insurance companies approved by the National Association of Insurance Commissioners (the
“NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any
employee benefit plan together with the amount of the reserves and liabilities for the
general account contract(s) held by or on behalf of any other employee benefit plans
maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the
same employee organization in the general account do not exceed 10% of the total reserves
and liabilities of the general account (exclusive of separate account liabilities) plus
surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of
domicile; or

(b) the Source is a separate account that is maintained solely in connection with such
Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to
any employee benefit plan (or its related trust) that has any interest in such separate
account (or to any participant or beneficiary of such plan (including any annuitant)) are
not affected in any manner by the investment performance of the separate account; or

(c) the Source is either (i) an insurance company pooled separate account, within the
meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE
91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this
clause (c), no employee benefit plan or group of plans maintained by the same employer or
employee organization beneficially owns more than 10% of all assets allocated to such pooled
separate account or collective investment fund; or

(d) the Source constitutes assets of an “investment fund” (within the meaning of Part V
of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or
“QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s
assets that are included in such investment fund, when combined with the assets of all other
employee benefit plans established or maintained by the same employer or by an affiliate
(within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the
same employee organization and managed by such QPAM, exceed 20% of the total client assets
managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are
satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the
definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in
the Company and (i) the identity of such QPAM and (ii) the names of all employee benefit
plans whose assets are included in such investment fund have been disclosed to the Company
in writing pursuant to this clause (d); or

(e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of
PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within
the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of
the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled
by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption)
owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the
name(s) of the employee benefit plan(s) whose assets constitute the Source have been
disclosed to the Company in writing pursuant to this clause (e); or

(f) the Source is a governmental plan; or

(g) the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been identified to
the Company in writing pursuant to this clause (g); or

(h) the Source does not include assets of any employee benefit plan, other than a plan
exempt from the coverage of ERISA.

As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate
account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

	 	 	Section 7. Information as to Company.

Section 7.1. Financial and Business Information. The Company shall deliver to each holder of
Notes that is an Institutional Investor:

(a) Quarterly Statements — within 60 days (or such shorter period as is 15 days greater
than the period applicable to the filing of the Company’s Quarterly Report on Form 10-Q (the
“Form 10-Q”) with the SEC regardless of whether the Company is subject to the filing
requirements thereof) after the end of each quarterly fiscal period in each fiscal year of
the Company (other than the last quarterly fiscal period of each such fiscal year),
duplicate copies of,

(i) a consolidated balance sheet of the Company and its Subsidiaries as at the
end of such quarter, and

(ii) consolidated statements of income, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries, for such quarter and (in the case of
the second and third quarters) for the portion of the fiscal year ending with such
quarter,

setting forth in each case in comparative form the figures for the corresponding periods in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally, and certified by a Senior Financial
Officer as fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows, subject to
changes resulting from year-end adjustments, provided that delivery within the time period
specified above of copies of the Company’s Form 10-Q prepared in compliance with the
requirements therefor and filed with the SEC shall be deemed to satisfy the requirements of
this Section 7.1(a), provided, further, that the Company shall be deemed to have made such
delivery of such Form 10-Q if it shall have timely made such Form 10-Q available on “EDGAR”
and on its home page on the worldwide web (at the date of this Agreement located at:
http//www.andersonsinc.com) and shall have given each Purchaser prior notice of such
availability on EDGAR and on its home page in connection with each delivery (such
availability and notice thereof being referred to as “Electronic Delivery”);

(b) Annual Statements — within 105 days (or such shorter period as is 15 days greater
than the period applicable to the filing of the Company’s Annual Report on Form 10-K (the
“Form 10-K”) with the SEC regardless of whether the Company is subject to the filing
requirements thereof) after the end of each fiscal year of the Company, duplicate copies of

(i) a consolidated balance sheet of the Company and its Subsidiaries as at the
end of such year, and

(ii) consolidated statements of income, changes in shareholders’ equity and
cash flows of the Company and its Subsidiaries for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion
thereon of independent public accountants of recognized national standing, which opinion
shall state that such financial statements present fairly, in all material respects, the
financial position of the companies being reported upon and their results of operations and
cash flows and have been prepared in conformity with GAAP, and that the examination of such
accountants in connection with such financial statements has been made in accordance with
generally accepted auditing standards, and that such audit provides a reasonable basis for
such opinion in the circumstances;

provided that the delivery within the time period specified above of the Company’s Form 10-K
for such fiscal year (together with the Company’s annual report to shareholders, if any,
prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the
requirements therefor and filed with the SEC, shall be deemed to satisfy the requirements of
this Section 7.1(b), provided, further, that the Company shall be deemed to have made such
delivery of such Form 10-K if it shall have timely made Electronic Delivery thereof;

(c) SEC and Other Reports — promptly upon their becoming available, one copy of (i)
each financial statement, report, notice or proxy statement sent by the Company or any
Subsidiary to its principal lending banks as a whole (excluding information sent to such
banks in the ordinary course of administration of a bank facility, such as information
relating to pricing and borrowing availability) or to its public securities holders
generally, and (ii) each regular or periodic report, each registration statement (without
exhibits except as expressly requested by such holder), and each prospectus and all
amendments thereto filed by the Company or any Subsidiary with the SEC and of all press
releases and other statements made available generally by the Company or any Subsidiary to
the public concerning developments that are Material;

(d) Notice of Default or Event of Default — promptly, and in any event within five days
after a Responsible Officer becoming aware of the existence of any Default or Event of
Default or that any Person has given any notice or taken any action with respect to a
claimed default hereunder or that any Person has given any notice or taken any action with
respect to a claimed default of the type referred to in Section 11(f), a written notice
specifying the nature and period of existence thereof and what action the Company is taking
or proposes to take with respect thereto;

(e) ERISA Matters — promptly, and in any event within five days after a Responsible
Officer becoming aware of any of the following, a written notice setting forth the nature
thereof and the action, if any, that the Company or an ERISA Affiliate proposes to take with
respect thereto:

(i) with respect to any Plan, any reportable event, as defined in
section 4043(c) of ERISA and the regulations thereunder, for which notice thereof
has not been waived pursuant to such regulations as in effect on the date hereof; or

(ii) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Company or any ERISA Affiliate of a notice from a Multi-employer Plan
that such action has been taken by the PBGC with respect to such Multi-employer
Plan; or

(iii) any event, transaction or condition that could result in the incurrence
of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights, properties or
assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or
such penalty or excise tax provisions, if such liability or Lien, taken together
with any other such liabilities or Liens then existing, could reasonably be expected
to have a Material Adverse Effect;

(f) Notices from Governmental Authority — promptly, and in any event within 30 days of
receipt thereof, copies of any notice to the Company or any Subsidiary from any Federal or
state Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse Effect; and

(g) Requested Information — with reasonable promptness, such other data and information
relating to the business, operations, affairs, financial condition, assets or properties of
the Company or any of its Subsidiaries (including, but without limitation, actual copies of
the Company’s Form 10-Q and Form 10-K) or relating to the ability of the Company to perform
its obligations hereunder and under the Notes as from time to time may be reasonably
requested by any such holder of Notes.

Section 7.2. Officer’s Certificate. Each set of financial statements delivered to a holder of
Notes pursuant to Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a
Senior Financial Officer setting forth (which, in the case of Electronic Delivery of any such
financial statements, shall be by separate concurrent delivery of such certificate to each holder
of Notes):

(a) Covenant Compliance — the information (including detailed calculations) required in
order to establish whether the Company was in compliance with the requirements of Sections
10.6, 10.7 and 10.8 during the quarterly or annual period covered by the statements then
being furnished (including with respect to each such Section, where applicable, the
calculations of the maximum or minimum amount, ratio or percentage, as the case may be,
permissible under the terms of such Sections, and the calculation of the amount, ratio or
percentage then in existence); and

(b) Event of Default — a statement that such Senior Financial Officer has reviewed the
relevant terms hereof and has made, or caused to be made, under his or her supervision, a
review of the transactions and conditions of the Company and its Subsidiaries from the
beginning of the quarterly or annual period covered by the statements then being furnished
to the date of the certificate and that such review shall not have disclosed the existence
during such period of any condition or event that constitutes a Default or an Event of
Default or, if any such condition or event existed or exists (including, without limitation,
any such event or condition resulting from the failure of the Company or any Subsidiary to
comply with any Environmental Law), specifying the nature and period of existence thereof
and what action the Company shall have taken or proposes to take with respect thereto.

Section 7.3. Visitation. The Company shall permit the representatives of each holder of Notes
that is an Institutional Investor:

(a) No Default — if no Default or Event of Default then exists, at the expense of such
holder and upon reasonable prior notice to the Company, to visit the principal executive
office of the Company, to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with the Company’s officers, and (with the consent of the Company, which
consent will not be unreasonably withheld) its independent public accountants, and (with the
consent of the Company, which consent will not be unreasonably withheld) to visit the other
offices and properties of the Company and each Subsidiary, all at such reasonable times and
as often as may be reasonably requested in writing; and

(b) Default — if a Default or Event of Default then exists, at the expense of the
Company to visit and inspect any of the offices or properties of the Company or any
Subsidiary, to examine all their respective books of account, records, reports and other
papers, to make copies and extracts therefrom, and to discuss their respective affairs,
finances and accounts with their respective officers and independent public accountants (and
by this provision the Company authorizes said accountants to discuss the affairs, finances
and accounts of the Company and its Subsidiaries), all at such times and as often as may be
requested.

	 	 	Section 8. Payment and Prepayment of the Notes.

Section 8.1. Maturity; Required Prepayments. As provided therein, the entire unpaid principal
balance of the Series A Notes, Series B Notes and Series C Notes shall be due and payable on the
stated maturity date thereof.

Section 8.2. Optional Prepayments with Make-Whole Amount. The Company may, at its option,
upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes,
in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding in
the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole
Amount determined for the prepayment date with respect to such principal amount. The Company will
give each holder of Notes written notice of each optional prepayment under this Section 8.2 not
less than 30 days and not more than 60 days prior to the date fixed for such prepayment. Each such
notice shall specify such date (which shall be a Business Day), the aggregate principal amount of
the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be
prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment
date with respect to such principal amount being prepaid, and shall be accompanied by a certificate
of a Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such
prepayment (calculated as if the date of such notice were the date of the prepayment), setting
forth the details of such computation. Two Business Days prior to such prepayment, the Company
shall deliver to each holder of Notes a certificate of a Senior Financial Officer specifying the
calculation of such Make-Whole Amount as of the specified prepayment date.

Section 8.3. Allocation of Prepayments. In the case of each prepayment of the Notes pursuant
to Section 8.2, the principal amount of the Notes to be prepaid shall be allocated among all of the
Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid
principal amounts thereof not theretofore called for prepayment.

Section 8.4. Maturity; Surrender, Etc. In the case of each prepayment of Notes pursuant to
this Section 8, the principal amount of each Note to be prepaid shall mature and become due and
payable on the date fixed for such prepayment (which shall be a Business Day), together with
interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if
any. From and after such date, unless the Company shall fail to pay such principal amount when so
due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest
on such principal amount shall cease to accrue. Any Note paid or prepaid in full shall be
surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in
lieu of any prepaid principal amount of any Note.

Section 8.5. Purchase of Notes. The Company will not and will not permit any Affiliate to
purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes
except upon the payment or prepayment of the Notes in accordance with the terms of this Agreement
and the Notes. The Company will promptly cancel all Notes acquired by it or any Affiliate pursuant
to any payment or prepayment of Notes pursuant to any provision of this Agreement and no Notes may
be issued in substitution or exchange for any such Notes.

Section 8.6. Make-Whole Amount.

“Make-Whole Amount” means, with respect to any Note, an amount equal to the excess, if any, of
the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of
such Note over the amount of such Called Principal, provided that the Make-Whole Amount may in no
event be less than zero. For the purposes of determining the Make-Whole Amount, the following
terms have the following meanings:

“Called Principal” means, with respect to any Note, the principal of such Note that is to be
prepaid pursuant to Sections 8.2, 8.7 or 8.8 or has become or is declared to be immediately due and
payable pursuant to Section 12.1, as the context requires.

“Discounted Value” means, with respect to the Called Principal of any Note, the amount
obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from
their respective scheduled due dates to the Settlement Date with respect to such Called Principal,
in accordance with accepted financial practice and at a discount factor (applied on the same
periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield
with respect to such Called Principal.

“Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the
yield to maturity implied by (i) the yields reported as of 10:00 a.m. (New York City time) on the
second Business Day preceding the Settlement Date with respect to such Called Principal, on the
display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg
Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities
having a maturity equal to the Remaining Average Life of such Called Principal as of such
Settlement Date, or (ii) if such yields are not reported as of such time or the yields
reported as of such time are not ascertainable (including by way of interpolation), the Treasury
Constant Maturity Series Yields reported, for the latest day for which such yields have been so
reported as of the second Business Day preceding the Settlement Date with respect to such Called
Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication)
for U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such
Called Principal as of such Settlement Date.

In the case of each determination under clause (i) or clause (ii), as the case may be, of the
preceding paragraph, such implied yield will be determined, if necessary, by (a) converting
U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial
practice and (b) interpolating linearly between (1) the applicable U.S. Treasury security with the
maturity closest to and greater than such Remaining Average Life and (2) the applicable U.S.
Treasury security with the maturity closest to and less than such Remaining Average Life. The
Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate
of the applicable Note.

“Remaining Average Life” means, with respect to any Called Principal, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into
(ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining
Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to
the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such
Called Principal and the scheduled due date of such Remaining Scheduled Payment.

“Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all
payments of such Called Principal and interest thereon that would be due after the Settlement Date
with respect to such Called Principal if no payment of such Called Principal were made prior to its
scheduled due date, provided that if such Settlement Date is not a date on which interest payments
are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled
interest payment will be reduced by the amount of interest accrued to such Settlement Date and
required to be paid on such Settlement Date pursuant to Sections 8.2, 8.7 or 8.8 or Section 12.1.

“Settlement Date” means, with respect to the Called Principal of any Note, the date on which
such Called Principal is to be prepaid pursuant to Sections 8.2, 8.7 or 8.8 or has become or is
declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

Section 8.7. Mandatory Offer to Prepay. (a) Change in Control or Control Event. The Company
will within 10 Business Days after any Responsible Officer has knowledge of the occurrence of any
Change in Control or Control Event, give written notice of such Change in Control or Control Event
to each holder of the Notes unless notice in respect of such Change in Control (or the Change in
Control contemplated by such Control Event) shall have been given pursuant to subparagraph (b) of
this Section 8.7. If a Change in Control has occurred, such notice shall contain and constitute an
offer to prepay the Notes as described in subparagraph (c) of this Section 8.7 and shall be
accompanied by the certificate described in subparagraph (g) of this Section 8.7.

(b) Condition to Company Action. The Company will not take any action that consummates or
finalizes a Change in Control unless (i) at least 15 Business Days prior to such action it shall
have given to each holder of Notes written notice containing and constituting an offer to prepay
the Notes as described in subparagraph (c) of this Section 8.7, accompanied by the certificate
described in subparagraph (g) of this Section 8.7, and (ii) contemporaneously with such action, it
prepays all Notes required to be prepaid in accordance with this Section 8.7.

(c) Offer to Prepay Notes. The offer to prepay the Notes contemplated by subparagraphs (a)
and (b) of this Section 8.7 shall be an offer to prepay, in accordance with and subject to this
Section 8.7, all, but not less than all, the Notes held by each holder (in this case only, “holder”
in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall
mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”). If
such Proposed Prepayment Date, which shall be a Business Day, is in connection with an offer
contemplated by subparagraph (a) of this Section 8.7, such date shall be not less than 20 days and
not more than 30 days after the date of such offer (if the Proposed Prepayment Date shall not be
specified in such offer, the Proposed Prepayment Date shall be the 20th day after the date of such
offer (or, in the event such 20th day is not a Business Day, then the first Business Day
immediately following such 20th day)).

(d) Acceptance; Rejection. A holder of the Notes may accept the offer to prepay made pursuant
to this Section 8.7 by causing a notice of such acceptance to be delivered to the Company at least
5 Business Days prior to the Proposed Prepayment Date. A failure by a holder of the Notes to
respond to an offer to prepay made pursuant to this Section 8.7 shall be deemed to constitute an
acceptance of such offer by such holder.

(e) Prepayment. Prepayment of the Notes to be prepaid pursuant to this Section 8.7 shall be
at 100% of the principal amount of such Notes together with interest accrued thereon to the date of
such prepayment, plus the Make-Whole Amount determined for the prepayment date with respect to such
principal amount. The prepayment shall be made on the Proposed Prepayment Date except as provided
in subparagraph (f) of this Section 8.7.

(f) Deferral Pending Change in Control. The obligation of the Company to prepay the Notes
pursuant to the offers required by subparagraph (b) and accepted in accordance with
subparagraph (d) of this Section 8.7 is subject to the occurrence of the Change in Control in
respect of which such offers and acceptances shall have been made. In the event that such Change
in Control does not occur on the Proposed Prepayment Date in respect thereof, the prepayment shall
be deferred until and shall be made on the date on which such Change in Control occurs.
Notwithstanding the foregoing, in the event such Change in Control has not occurred within 90 days
of the offer to prepay made pursuant to subparagraph (c) of this Section 8.7, the acceptance made
pursuant to subparagraph (d) of this Section 8.7 in respect of such Change in Control may be
rescinded by any holder of the Notes, and thereafter if the Company proposes to consummate such
Change of Control a new notice shall be given by the Company in accordance with the terms of this
Section 8.7. The Company shall keep each holder of the Notes reasonably and timely informed of
(i) any such deferral of the date of prepayment, (ii) the date on which such Change in Control and
the prepayment are expected to occur, and (iii) any determination by the Company that efforts to
effect such Change in Control have ceased or been abandoned (in which case the offers and
acceptances made pursuant to this Section 8.7 in respect of such Change in Control shall be deemed
rescinded).

(g) Officer’s Certificate. Each offer to prepay the Notes pursuant to this Section 8.7 shall
be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated
the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made
pursuant to this Section 8.7; (iii) the principal amount of each Note offered to be prepaid;
(iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed
Prepayment Date; (v) an estimate of the Make-Whole Amount payable in connection with such
prepayment; (vi) that the conditions of this Section 8.7 have been fulfilled; and (vii) in
reasonable detail, the nature and date or proposed date of the Change in Control.

(h) “Change in Control” Defined. “Change in Control” means any of the following events or
circumstances:

(a) as to the Company, (i) the voting stock of the Company shall
cease to be publicly traded, or (ii) more than 50% of the voting
stock of the Company is owned or controlled, directly or indirectly
by one Person or an affiliated group of Persons, and (b) as to any
Subsidiary of the Company, existing as such on the date of this
Agreement, the voting stock or voting or controlling equity interest
of such Subsidiary shall cease to be wholly owned by the Company,
except as the result of a merger or asset consolidation with another
Subsidiary of the Company (other than a merger or an asset
consolidation with a Top Cat Subsidiary).

(i) “Control Event” Defined. “Control Event” means:

(i) the execution by the Company or any of its Subsidiaries or Affiliates of any
agreement or letter of intent with respect to any proposed transaction or event or series of
transactions or events which, individually or in the aggregate, may reasonably be expected
to result in a Change in Control,

(ii) the execution of any written agreement which, when fully performed by the parties
thereto, would result in a Change in Control, or

(iii) the making of any written offer by any Person or an affiliated group of Persons
to the holders of the voting stock of the Company, which offer, if accepted by the requisite
number of holders, would result in a Change in Control.

Section 8.8. Prepayment in Connection with Sales of Assets. If the Company makes an offer to
prepay the Notes pursuant to Section 10.6, the Company will give written notice thereof to the
holders of all outstanding Notes, which notice shall (i) refer specifically to this Section 8.8 and
describe in reasonable detail the Asset Disposition giving rise to such offer to prepay the Notes,
(ii) specify the principal amount of each Note being offered to be prepaid, (iii) specify a date
not less than 30 days and not more than 60 days after the date of such notice (the “Disposition
Prepayment Date”) and specify the Disposition Response Date (as defined below), and (iv) offer to
prepay on the Disposition Prepayment Date the amount specified in (ii) above with respect to each
Note together with interest accrued thereon to the Disposition Prepayment Date. Each holder of a
Note shall notify the Company of such holder’s acceptance or rejection of such offer by giving
written notice of such acceptance or rejection to the Company (provided, however, that any holder
who fails to so notify the Company shall be deemed to have accepted such offer) on a date at least
5 days prior to the Disposition Prepayment Date (such date 5 days prior to the Disposition
Prepayment Date being the “Disposition Response Date”), and the Company shall prepay on the
Disposition Prepayment Date the amount specified in (ii) above plus interest accrued thereon to the
Disposition Prepayment Date plus the Make-Whole Amount determined for the prepayment date with
respect to such principal amount, with respect to each note held by the holders who have accepted
such offer in accordance with this Section 8.8.

	 	 	Section 9. Affirmative Covenants.

The Company covenants that so long as any of the Notes are outstanding:

Section 9.1. Compliance with Law. Without limiting Section 10.4, the Company will, and will
cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or
regulations to which each of them is subject, including, without limitation, ERISA, the USA Patriot
Act and Environmental Laws, and will obtain and maintain in effect all licenses, certificates,
permits, franchises and other governmental authorizations necessary to the ownership of their
respective properties or to the conduct of their respective businesses, in each case to the extent
necessary to ensure that non-compliance with such laws, ordinances or governmental rules or
regulations or failures to obtain or maintain in effect such licenses, certificates, permits,
franchises and other governmental authorizations could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

Section 9.2. Insurance. The Company will, and will cause each of its Subsidiaries to,
maintain, with financially sound and reputable insurers, insurance with respect to their respective
properties and businesses against such casualties and contingencies, of such types, on such terms
and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves
are maintained with respect thereto) as is customary in the case of entities of established
reputations engaged in the same or a similar business and similarly situated.

Section 9.3. Maintenance of Properties. The Company will, and will cause each of its
Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties
in good repair, working order and condition (other than ordinary wear and tear), so that the
business carried on in connection therewith may be properly conducted at all times, provided that
this Section shall not prevent the Company or any Subsidiary from discontinuing the operation and
the maintenance of any of its properties if such discontinuance is desirable in the conduct of its
business and the Company has concluded that such discontinuance could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.

Section 9.4. Payment of Taxes and Claims. The Company will, and will cause each of its
Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and
discharge all taxes shown to be due and payable on such returns and all other taxes, assessments,
governmental charges, or levies imposed on them or any of their properties, assets, income or
franchises, to the extent the same have become due and payable and before they have become
delinquent and all claims for which sums have become due and payable that have or might become a
Lien on properties or assets of the Company or any Subsidiary, provided that neither the Company
nor any Subsidiary need pay any such tax, assessment, charge, levy or claim if (i) the amount,
applicability or validity thereof is contested by the Company or such Subsidiary on a timely basis
in good faith and in appropriate proceedings, and the Company or a Subsidiary has established
adequate reserves therefor in accordance with GAAP on the books of the Company or such Subsidiary
or (ii) the nonpayment of all such taxes, assessments, charges, levies and claims in the aggregate
could not reasonably be expected to have a Material Adverse Effect.

Section 9.5. Corporate Existence, Etc. Subject to Section 10.2, the Company will at all times
preserve and keep in full force and effect its corporate existence. Subject to Sections 10.2 and
10.6, the Company will at all times preserve and keep in full force and effect the corporate
existence of each of its Subsidiaries (unless merged into the Company or a Wholly-Owned Subsidiary)
and all rights and franchises of the Company and its Subsidiaries unless, in the good faith
judgment of the Company, the termination of or failure to preserve and keep in full force and
effect such corporate existence, right or franchise could not, individually or in the aggregate,
have a Material Adverse Effect.

Section 9.6. Books and Records. The Company will, and will cause each of its Subsidiaries to,
maintain proper books of record and account in conformity with GAAP and all applicable requirements
of any Governmental Authority having legal or regulatory jurisdiction over the Company or such
Subsidiary, as the case may be.

Section 9.7. Subsidiary Guarantors. The Company hereby covenants and agrees that, if any
Subsidiary which is not a Subsidiary Guarantor (i) guarantees the Company’s obligations under the
Bank Credit Agreement, (ii) directly or indirectly becomes an obligor under the Bank Credit
Agreement or (iii) directly or indirectly guarantees any other Indebtedness or obligations of the
Company, it will cause such Subsidiary to, concurrently therewith, deliver to each of the holders
of the Notes the following items:

(a) a duly executed Supplement to the Subsidiary Guaranty in the form of Annex 1
thereto;

(b) a certificate of the Secretary or an Assistant Secretary (or other appropriate
officer or person) of the new Subsidiary Guarantor as to due authorization, charter
documents, board resolutions and the incumbency of officers; and

(c) an opinion of counsel addressed to each of the holders of the Notes satisfactory to
the Required Holders, to the effect that the Subsidiary Guaranty by such Person has been
duly authorized, executed and delivered and that the Subsidiary Guaranty constitutes the
legal, valid and binding contract and agreement of such Person enforceable in accordance
with its terms, except as an enforcement of such terms may be limited by bankruptcy,
insolvency, fraudulent conveyance and similar laws affecting the enforcement of creditors’
rights generally and by general equitable principles, all as subject to any exceptions and
assumptions of the type set forth in the opinions referenced in Section 4.4 and as are
reasonable under the circumstances.

Section 9.8. Priority of Obligations. The Company will ensure that its payment obligations
under this Agreement and the Notes will at all times rank at least pari passu, without preference
or priority, with all other unsecured and unsubordinated Indebtedness of the Company.

Section 9.9. Additional Restrictions. In addition to and not in limitation of any of the
restrictions to which the Company or any Subsidiary is subject pursuant to this Agreement, the
Company agrees that in the event that after the date of Closing, the Company or any Subsidiary
becomes subject to any New Financial Covenant for the benefit of any bank or institutional lender,
whether through an amendment to the Bank Credit Agreement (including through an amendment solely of
the definitions used in a covenant) or through the Company or any Subsidiary entering into a new
agreement (each, an “Other Debt Agreement”), then promptly upon the effectiveness of such New
Financial Covenant (i) this Agreement shall be deemed to have been amended and such New Financial
Covenant (together with all relevant definitions) will be deemed to be incorporated herein at
levels that provide 15% more leeway compared to the levels in the Other Debt Agreement and
continued at the same level for all periods beyond those contemplated by such Other Debt Agreement
and (ii) the Company shall provide a copy of the agreements containing such New Financial Covenant
to the holders of the Notes. Upon the written request of the Required Holders, the Company and the
holders of the Notes shall enter into a written agreement memorializing and acknowledging such
incorporation of such New Financial Covenant (and related definitions) or the amendment, waiver,
elimination or termination thereof, as the case may be.

	 	 	Section 10. Negative Covenants.

The Company covenants that so long as any of the Notes are outstanding:

Section 10.1. Transactions with Affiliates. The Company will not and will not permit any
Subsidiary to enter into directly or indirectly any transaction or group of related transactions
(including without limitation the purchase, lease, sale or exchange of properties of any kind or
the rendering of any service) with any Affiliate (other than the Company or another Subsidiary),
except in the ordinary course and pursuant to the reasonable requirements of the Company’s or such
Subsidiary’s business and upon fair and reasonable terms no less favorable to the Company or such
Subsidiary than would be obtainable in a comparable arm’s length transaction with a Person not an
Affiliate.

Section 10.2. Merger, Consolidation, Etc. The Company will not, and will not permit any
Subsidiary to, consolidate with or merge with any other Person or convey, transfer or lease all or
substantially all of its assets in a single transaction or series of transactions to any Person
unless:

(a) in the case of any such transaction involving the Company, the successor formed by
such consolidation or the survivor of such merger or the Person that acquires by conveyance,
transfer or lease all or substantially all of the assets of the Company as an entirety, as
the case may be, shall be a solvent corporation or limited liability company organized and
existing under the laws of the United States or any State thereof (including the District of
Columbia), and, if the Company is not such corporation or limited liability company, (i)
such corporation or limited liability company shall have executed and delivered to each
holder of any Notes its assumption of the due and punctual performance and observance of
each covenant and condition of this Agreement and the Notes, (ii) such corporation or
limited liability company shall have caused to be delivered to each holder of any Notes an
opinion of nationally recognized independent counsel, or other independent counsel
reasonably satisfactory to the Required Holders, to the effect that all agreements or
instruments effecting such assumption are enforceable in accordance with their terms and
comply with the terms hereof and (iii) each Subsidiary Guarantor shall have confirmed and
ratified in writing its obligations under the Subsidiary Guaranty;

(b) in the case of any such transaction involving a Subsidiary and not the Company, the
successor formed by such consolidation or the survivor of such merger or the Person that
acquires by conveyance, transfer or lease all or substantially all of the assets of such
Subsidiary as an entirety, as the case be, shall be (i) the Company or (ii) a solvent
Subsidiary organized and existing under the laws of the United States or any state thereof
(including the District of Columbia), and, if required by Section 9.7, such Subsidiary shall
deliver a Supplement to the Subsidiary Guaranty and the other documents required under
Section 9.7; and

(c) immediately before and immediately after giving effect to such transaction, no
Default or Event of Default shall have occurred and be continuing.

No such conveyance, transfer or lease of substantially all of the assets of the Company shall have
the effect of releasing the Company or any successor corporation or limited liability company that
shall theretofore have become such in the manner prescribed in this Section 10.2 from its liability
under this Agreement or the Notes.

Section 10.3. Line of Business. The Company will not and will not permit any Subsidiary to
engage in any business if, as a result, the general nature of the business in which the Company and
its Subsidiaries, taken as a whole, would then be engaged would be substantially changed from the
general nature of the business in which the Company and its Subsidiaries, taken as a whole, are
engaged on the date of this Agreement as described in the Memorandum.

Section 10.4. Terrorism Sanctions Regulations. The Company will not and will not permit any
Subsidiary to (a) become a Person described or designated in the Specially Designated Nationals and
Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism
Order or (b) engage in any dealings or transactions with any such Person.

Section 10.5. Liens. The Company will not, and will not permit any of its Subsidiaries to,
directly or indirectly create, incur, assume or permit to exist (upon the happening of a
contingency or otherwise) any Lien on or with respect to any property or asset (including, without
limitation, any document or instrument in respect of goods or accounts receivable) of the Company
or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits
therefrom or assign or otherwise convey any right to receive income or profits, except:

(a) Liens for taxes, assessments or other governmental charges which are not yet due
and payable or the payment of which is not at the time required by Section 9.4;

(b) statutory Liens of landlords and Liens of carriers, warehousemen, mechanics,
materialmen and other similar Liens, in each case, incurred in the ordinary course of
business for sums not yet due and payable or the payment of which is not at the time
required by Section 9.4;

(c) Liens (other than any Liens imposed by ERISA) incurred or deposits made in the
ordinary course of business (i) in connection with workers’ compensation, unemployment
insurance and other types of social security or retirement benefits, or (ii) to secure (or
obtain letters of credit that secure) the performance of tenders, statutory obligations,
surety bonds, appeal bonds, bids, leases (other than non-rail Capital Leases), performance
bonds, purchase, construction or sales contracts and other similar obligations, in each case
not incurred or made in connection with the borrowing of money, the obtaining of advances or
credit or the payment of the deferred purchase price of property;

(d) any attachment or judgment Lien, unless the judgment it secures shall not, within
60 days after the entry thereof, have been discharged or execution thereof stayed pending
appeal, or shall not have been discharged within 60 days after the expiration of any such
stay;

(e) leases or subleases granted to others, easements, rights-of-way, restrictions and
other similar charges or encumbrances, in each case incidental to, and not interfering with,
the ordinary conduct of the business of the Company or any of its Subsidiaries, provided
that such Liens do not, in the aggregate, materially detract from the value of such
property;

(f) Liens existing on the date of this Agreement that secure Indebtedness of the
Company or any Subsidiary described in Schedule 5.15; and any extension, renewal or
replacement of any such Lien in respect of the same property subject thereto or the
extension, renewal or replacement of such replacement liens (without increase of principal
amount of the Indebtedness secured);

(g) any Lien created to secure all or any part of the purchase price, or to secure
Indebtedness incurred or assumed to pay all or any part of the purchase price or cost of
construction, of fixed or capital assets (or any improvement thereon) acquired or
constructed by the Company or a Subsidiary after the date of the Closing, provided that

(i) any such Lien shall extend solely to the item or items of such fixed or
capital assets (or improvement thereon) so acquired or constructed and, if required
by the terms of the instrument originally creating such Lien, other property (or
improvement thereon) which is an improvement to or is acquired for specific use in
connection with such acquired or constructed fixed or capital assets (or improvement
thereon) or which is real property being improved by such acquired or constructed
fixed or capital assets (or improvement thereon),

(ii) the principal amount of the Indebtedness secured by any such Lien shall at
no time exceed an amount equal to 100% of the Fair Market Value (as determined in
good faith by the board of directors of the Company) of such fixed or capital assets
(or improvement thereon) at the time of such acquisition or construction, and

(iii) any such Lien shall be created contemporaneously with or within the
period ending 180 days after, the acquisition or construction of such fixed or
capital assets;

(h) any Lien existing on property of a Person immediately prior to its being
consolidated with or merged into the Company or a Subsidiary or its becoming a Subsidiary,
or any Lien existing on any property acquired by the Company or any Subsidiary at the time
such property is so acquired (whether or not the Indebtedness secured thereby shall have
been assumed), provided that (i) no such Lien shall have been created or assumed in
contemplation of such consolidation or merger or such Person’s becoming a Subsidiary or such
acquisition of property, and (ii) each such Lien shall extend solely to the item or items of
property so acquired and, if required by the terms of the instrument originally creating
such Lien, other property which is an improvement to or is acquired for specific use in
connection with such acquired property;

(i) any Lien securing the interests of the broker with respect to any Margin Account
maintained by the Company or any Subsidiary in the ordinary course of business;

(j) (i) Liens on property of a Securitization Entity incurred in connection
with any transfer of Rail Assets which is permitted pursuant to Section 10.6 and
which Liens are required to consummate a Permitted Securitization Transaction, and

(ii) Liens on Rail Assets to secure Limited Recourse Indebtedness,

provided, that the aggregate outstanding amount of the Permitted Securitization
Transaction financings plus the amount of Limited Recourse Indebtedness does not at
any time exceed $500,000,000; and

(k) other Liens not otherwise permitted by subparagraphs (a) through (j) above securing
Indebtedness of the Company or a Subsidiary, provided that the Indebtedness secured thereby
is permitted by Section 10.7.

Notwithstanding the foregoing or any other provision of this Agreement, the Company will not,
and will not permit any of its Subsidiaries to, directly or indirectly create, incur, assume or
permit to exist (upon the happening of a contingency or otherwise) any Lien (i) on or with respect
to Inventory, Accounts, General Intangibles (including contract rights) or the direct proceeds
thereof or (ii) on any assets of the Company or any Subsidiary securing any of the Bank
Liabilities.

Section 10.6. Sale of Assets, Etc. The Company will not, and will not permit any of its
Subsidiaries to, make any Asset Disposition unless:

(a) in the good faith opinion of the Company or Subsidiary making the Asset
Disposition, the Asset Disposition is in exchange for consideration having a Fair Market
Value at least equal to that of the property exchanged;

(b) immediately after giving effect to the Asset Disposition, no Default or Event of
Default would exist; and

(c) the sum of the Disposition Value of the property subject to such Asset Disposition,
plus the aggregate Disposition Value for all other property that was the subject of an Asset
Disposition during the period of 365 days immediately preceding such Asset Disposition would
not exceed 10% of Consolidated Total Assets; and the sum of the Disposition Value of the
property subject to such Asset Disposition, plus the aggregate Disposition Value for all
other property that was the subject of an Asset Disposition occurring on or after the date
of Closing would not exceed 30% of Consolidated Total Assets, in each case determined as of
the end of the most recently ended calendar month preceding such Asset Disposition.

To the extent that the Net Proceeds Amount consisting of cash for any Transfer to a Person other
than an Affiliate of the Company or Subsidiary is applied to an Indebtedness Prepayment Application
or applied to a Property Reinvestment Application within one year after such Transfer, then such
Transfer (or, if less than all such Net Proceeds Amount is applied as contemplated hereinabove, the
pro rata percentage thereof which corresponds to the Net Proceeds Amount so applied), only for the
purpose of determining compliance with subsection (c) of this Section 10.6 as of any date, shall be
deemed not to be an Asset Disposition.

Section 10.7. Certain Financial Ratios.

(a) Consolidated Tangible Net Worth. The Company will not at any time permit Consolidated
Tangible Net Worth to be less than $115,000,000.

(b) Limitation on Priority Indebtedness. The Company will not at any time permit Priority
Indebtedness to exceed 30% of Consolidated Tangible Net Worth.

(c) Asset Coverage Ratio. The Company will not at any time permit the Asset Coverage Ratio to
exceed .70 to 1.00.

(d) Hedged Inventory. The Company will not at any time permit the Current Ratio Net of Hedged
Inventory to be less than 1.25 to 1.00.

Section 10.8. Funded Indebtedness.

A. Neither the Company nor any Subsidiary will create, assume or incur, or in any manner
become liable, contingently or otherwise, in respect of, any Funded Indebtedness if, after giving
effect thereto, Total Funded Indebtedness shall exceed sixty percent (60%) of Consolidated
Capitalization.

	 	 	Section 11. Events of Default.

An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

(a) the Company defaults in the payment of any principal or Make-Whole Amount, if any,
on any Note when the same becomes due and payable, whether at maturity or at a date fixed
for prepayment or by declaration or otherwise; or

(b) the Company defaults in the payment of any interest on any Note for more than five
Business Days after the same becomes due and payable; or

(c) the Company defaults in the performance of or compliance with any term contained in
Section 7.1(d) or Section 10.2, 10.5, 10.6, 10.7 or 10.8; or

(d) the Company or any Subsidiary Guarantor defaults in the performance of or
compliance with any term contained herein or in the Subsidiary Guaranty, respectively (other
than those referred to in Sections 11(a), (b) and (c)) and such default is not remedied
within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of
such default and (ii) the Company receiving written notice of such default from any holder
of a Note (any such written notice to be identified as a “notice of default” and to refer
specifically to this Section 11(d)); or

(e) any representation or warranty made in writing by or on behalf of the Company in
this Agreement or by any Subsidiary Guarantor in the Subsidiary Guaranty or by any officer
of either the Company or any Subsidiary Guarantor in any writing furnished in connection
with the transactions contemplated hereby proves to have been false or incorrect in any
material respect on the date as of which made; or

(f) (i) the Company or any Subsidiary is in default (as principal or as guarantor or
other surety) in the payment of any principal of or premium or make-whole amount or interest
on any Indebtedness that is outstanding in an aggregate principal amount of at least
$10,000,000 beyond any period of grace provided with respect thereto, or (ii) the Company or
any Subsidiary is in default in the performance of or compliance with any term of any
evidence of any Indebtedness in an aggregate outstanding principal amount of at least
$10,000,000 or of any mortgage, indenture or other agreement relating thereto or any other
condition exists, and as a consequence of such default or condition such Indebtedness has
become, or has been declared (or one or more Persons are entitled to declare such
Indebtedness to be), due and payable before its stated maturity or before its regularly
scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of
any event or condition (other than the passage of time or the right of the holder of
Indebtedness to convert such Indebtedness into equity interests), (x) the Company or any
Subsidiary has become obligated to purchase or repay Indebtedness before its regular
maturity or before its regularly scheduled dates of payment in an aggregate outstanding
principal amount of at least $10,000,000, or (y) one or more Persons have the right to
require the Company or any Subsidiary to purchase or repay such Indebtedness; or

(g) the Company or any Subsidiary (i) is generally not paying, or admits in writing its
inability to pay, its debts as they become due, (ii) files, or consents by answer or
otherwise to the filing against it of, a petition for relief or reorganization or
arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any
bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction,
(iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment
of a custodian, receiver, trustee or other officer with similar powers with respect to it or
with respect to any substantial part of its property, (v) is adjudicated as insolvent or to
be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

(h) a court or Governmental Authority of competent jurisdiction enters an order
appointing, without consent by the Company or any of its Subsidiaries, a custodian,
receiver, trustee or other officer with similar powers with respect to it or with respect to
any substantial part of its property, or constituting an order for relief or approving a
petition for relief or reorganization or any other petition in bankruptcy or for liquidation
or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering
the dissolution, winding-up or liquidation of the Company or any of its Subsidiaries, or any
such petition shall be filed against the Company or any of its Subsidiaries and such
petition shall not be dismissed within 60 days; or

(i) a final judgment or judgments for the payment of money aggregating in excess of
$10,000,000 are rendered against one or more of the Company and its Subsidiaries and which
judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending
appeal, or are not discharged within 60 days after the expiration of such stay; or

(j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the
Code for any plan year or part thereof or a waiver of such standards or extension of any
amortization period is sought or granted under section 412 of the Code, (ii) a notice of
intent to terminate any Plan shall have been or is reasonably expected to be filed with the
PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to terminate or
appoint a trustee to administer any Plan or the PBGC shall have notified the Company or any
ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the
aggregate “amount of unfunded benefit liabilities” (within the meaning of section
4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA,
shall exceed $10,000,000, (iv) the Company or any ERISA Affiliate shall have incurred or is
reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty
or excise tax provisions of the Code relating to employee benefit plans, (v) the Company or
any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) the Company or any
Subsidiary establishes or amends any employee welfare benefit plan that provides
post-employment welfare benefits in a manner that would increase the liability of the
Company or any Subsidiary thereunder; and any such event or events described in clauses (i)
through (vi) above, either individually or together with any other such event or events,
could reasonably be expected to have a Material Adverse Effect; or

(k) the Subsidiary Guaranty ceases to be a legally valid, binding and enforceable
obligation or contract of any Subsidiary Guarantor except in accordance with the terms and
conditions of this Agreement or any Subsidiary Guarantor (or any party by, through or on
account of such Subsidiary Guarantor) challenges the validity, binding nature or
enforceability of the Subsidiary Guaranty.

As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in section 3 of ERISA.

	 	 	Section 12. Remedies on Default, Etc.

Section 12.1. Acceleration. (a) If an Event of Default with respect to the Company described
in Section 11(g) or (h) (other than an Event of Default described in clause (i) of Section 11(g) or
described in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause
(i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically become
immediately due and payable.

(b) If any other Event of Default has occurred and is continuing, the Required Holders may at
any time at its or their option, by notice or notices to the Company, declare all the Notes then
outstanding to be immediately due and payable.

(c) If any Event of Default described in Section 11(a) or (b) has occurred and is continuing,
any holder or holders of Notes at the time outstanding affected by such Event of Default may at any
time, at its or their option, by notice or notices to the Company, declare all the Notes held by it
or them to be immediately due and payable.

Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes,
plus (x) all accrued and unpaid interest thereon (including, but not limited to, interest accrued
thereon at the Default Rate) and (y) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be immediately due and payable,
in each and every case without presentment, demand, protest or further notice, all of which are
hereby waived. The Company acknowledges, and the parties hereto agree, that each holder of a Note
has the right to maintain its investment in the Notes free from repayment by the Company (except as
herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the
Company in the event that the Notes are prepaid or are accelerated as a result of an Event of
Default, is intended to provide compensation for the deprivation of such right under such
circumstances.

Section 12.2. Other Remedies. If any Default or Event of Default has occurred and is
continuing, and irrespective of whether any Notes have become or have been declared immediately due
and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to
protect and enforce the rights of such holder by an action at law, suit in equity or other
appropriate proceeding, whether for the specific performance of any agreement contained herein or
in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in
aid of the exercise of any power granted hereby or thereby or by law or otherwise.

Section 12.3. Rescission. At any time after any Notes have been declared due and payable
pursuant to Section 12.1(b) or (c), the Required Holders, by written notice to the Company, may
rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue
interest on the Notes, all principal of and Make-Whole Amount, if any, on any Notes that are due
and payable and are unpaid other than by reason of such declaration, and all interest on such
overdue principal and Make-Whole Amount, if any, and (to the extent permitted by applicable law)
any overdue interest in respect of the Notes, at the Default Rate, (b) neither the Company nor any
other Person shall have paid any amounts which have become due solely by reason of such
declaration, (c) all Events of Default and Defaults, other than non-payment of amounts that have
become due solely by reason of such declaration, have been cured or have been waived pursuant to
Section 17, and (d) no judgment or decree has been entered for the payment of any monies due
pursuant hereto or to the Notes. No rescission and annulment under this Section 12.3 will extend
to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

Section 12.4. No Waivers or Election of Remedies, Expenses, Etc. No course of dealing and no
delay on the part of any holder of any Note in exercising any right, power or remedy shall operate
as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies. No right,
power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be
exclusive of any other right, power or remedy referred to herein or therein or now or hereafter
available at law, in equity, by statute or otherwise. Without limiting the obligations of the
Company under Section 15, the Company will pay to the holder of each Note on demand such further
amount as shall be sufficient to cover all costs and expenses of such holder incurred in any
enforcement or collection under this Section 12, including, without limitation, reasonable
attorneys’ fees, expenses and disbursements.

	 	 	Section 13. Registration; Exchange; Substitution of Notes.

Section 13.1. Registration of Notes. The Company shall keep at its principal executive office
a register for the registration and registration of transfers of Notes. The name and address of
each holder of one or more Notes, each transfer thereof and the name and address of each transferee
of one or more Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered shall be deemed and
treated as the owner and holder thereof for all purposes hereof, and the Company shall not be
affected by any notice or knowledge to the contrary. The Company shall give to any holder of a
Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy
of the names and addresses of all registered holders of Notes.

Section 13.2. Transfer and Exchange of Notes. Upon surrender of any Note to the Company at
the address and to the attention of the designated officer (all as specified in Section 18(iii)),
for registration of transfer or exchange (and in the case of a surrender for registration of
transfer accompanied by a written instrument of transfer duly executed by the registered holder of
such Note or such holder’s attorney duly authorized in writing and accompanied by the relevant
name, address and other information for notices of each transferee of such Note or part thereof),
within ten Business Days thereafter, the Company shall execute and deliver, at the Company’s
expense (except as provided below), one or more new Notes (as requested by the holder thereof) of
the same series in exchange therefor, in an aggregate principal amount equal to the unpaid
principal amount of the surrendered Note. Each such new Note shall be payable to such Person as
such holder may request and shall be substantially in the form of the Note of such series
originally issued hereunder. Each such new Note shall be dated and bear interest from the date to
which interest shall have been paid on the surrendered Note or dated the date of the surrendered
Note if no interest shall have been paid thereon. The Company may require payment of a sum
sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of
Notes. Notes shall not be transferred in denominations of less than $100,000, provided that if
necessary to enable the registration of transfer by a holder of its entire holding of Notes, one
Note may be in a denomination of less than $100,000. Any transferee, by its acceptance of a Note
registered in its name (or the name of its nominee), shall be deemed to have made the
representation set forth in Section 6.2.

Section 13.3. Replacement of Notes. Upon receipt by the Company at the address and to the
attention of the designated officer (all as specified in Section 18(iii)) of evidence reasonably
satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note
(which evidence shall be, in the case of an Institutional Investor, notice from such Institutional
Investor of such ownership and such loss, theft, destruction or mutilation), and

(a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to
it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser
or another holder of a Note with a minimum net worth of at least $25,000,000 or a Qualified
Institutional Buyer, such Person’s own unsecured agreement of indemnity shall be deemed to
be satisfactory), or

(b) in the case of mutilation, upon surrender and cancellation thereof,

within ten Business Days thereafter, the Company at its own expense shall execute and deliver, in
lieu thereof, a new Note of the same series, dated and bearing interest from the date to which
interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date
of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

	 	 	Section 14. Payments on Notes.

Section 14.1. Place of Payment. Subject to Section 14.2, payments of principal, Make-Whole
Amount, if any, and interest becoming due and payable on the Notes shall be made in New York,
New York at the principal office of Wells Fargo Bank in such jurisdiction. The Company may at any
time, by notice to each holder of a Note, change the place of payment of the Notes so long as such
place of payment shall be either the principal office of the Company in such jurisdiction or the
principal office of a bank or trust company in such jurisdiction.

Section 14.2. Home Office Payment. So long as any Purchaser or its nominee shall be the
holder of any Note, and notwithstanding anything contained in Section 14.1 or in such Note to the
contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount,
if any, and interest by the method and at the address specified for such purpose below such
Purchaser’s name in Schedule A hereto, or by such other method or at such other address as such
Purchaser shall have from time to time specified to the Company in writing for such purpose,
without the presentation or surrender of such Note or the making of any notation thereon, except
that upon written request of the Company made concurrently with or reasonably promptly after
payment or prepayment in full of any Note, such Purchaser shall surrender such Note for
cancellation, reasonably promptly after any such request, to the Company at its principal executive
office or at the place of payment most recently designated by the Company pursuant to Section 14.1.
Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such
Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and
the last date to which interest has been paid thereon or surrender such Note to the Company in
exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of
this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any
Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to
such Note as the Purchasers have made in this Section 14.2.

	 	 	Section 15. Expenses, Etc.

Section 15.1. Transaction Expenses. Whether or not the transactions contemplated by this
Agreement are consummated, the Company will pay all costs and expenses (including reasonable
attorneys’ fees of a special counsel and, if reasonably required by the Required Holders, local or
other counsel) incurred by the Purchasers and each other holder of a Note in connection with such
transactions and in connection with any amendments, waivers or consents under or in respect of this
Agreement or the Notes or the Subsidiary Guaranty (whether or not such amendment, waiver or consent
becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing
or defending (or determining whether or how to enforce or defend) any rights under this Agreement
or the Notes or the Subsidiary Guaranty or in responding to any subpoena or other legal process or
informal investigative demand issued in connection with this Agreement or the Notes or the
Subsidiary Guaranty, or by reason of being a holder of any Note, (b) the costs and expenses,
including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of the
Company or any Subsidiary or in connection with any work-out or restructuring of the transactions
contemplated hereby, by the Notes or by the Subsidiary Guaranty and (c) the costs and expenses
incurred in connection with the initial filing of this Agreement and all related documents and
financial information with the SVO provided, that such costs and expenses under this clause (c)
shall not exceed $3,000 for each series of Notes. The Company will pay, and will save each
Purchaser and each other holder of a Note harmless from, all claims in respect of any fees, costs
or expenses, if any, of brokers and finders (other than those, if any, retained by a Purchaser or
other holder in connection with its purchase of the Notes).

Section 15.2. Survival. The obligations of the Company under this Section 15 will survive the
payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this
Agreement or the Notes, and the termination of this Agreement.

	 	 	Section 16. Survival of Representations and Warranties; Entire Agreement.

All representations and warranties contained herein shall survive the execution and delivery
of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion
thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent
holder of a Note, regardless of any investigation made at any time by or on behalf of such
Purchaser or any other holder of a Note. All statements contained in any certificate or other
instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed
representations and warranties of the Company under this Agreement. Subject to the preceding
sentence, this Agreement and the Notes embody the entire agreement and understanding between each
Purchaser and the Company and supersede all prior agreements and understandings relating to the
subject matter hereof.

	 	 	Section 17. Amendment and Waiver. 

Section 17.1. Requirements. This Agreement and the Notes may be amended, and the observance
of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and
only with) the written consent of the Company and the Required Holders, except that (a) no
amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6 or 21 hereof, or any
defined term (as it is used therein), will be effective as to any Purchaser unless consented to by
such Purchaser in writing, and (b) no such amendment or waiver may, without the written consent of
the holder of each Note at the time outstanding affected thereby, (i) subject to the provisions of
Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or
payment of principal of, or reduce the rate or change the time of payment or method of computation
of interest or of the Make-Whole Amount on, the Notes, (ii) change the percentage of the principal
amount of the Notes the holders of which are required to consent to any such amendment or waiver,
or (iii) amend any of Sections 8, 11(a), 11(b), 12, 17 or 20.

Section 17.2. Solicitation of Holders of Notes.

(a) Solicitation. The Company will provide each holder of the Notes (irrespective of the
amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the
date a decision is required, to enable such holder to make an informed and considered decision with
respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or
of the Notes. The Company will deliver executed or true and correct copies of each amendment,
waiver or consent effected pursuant to the provisions of this Section 17 to each holder of
outstanding Notes promptly following the date on which it is executed and delivered by, or receives
the consent or approval of, the requisite holders of Notes.

(b) Payment. The Company will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any
security or provide other credit support, to any holder of Notes as consideration for or as an
inducement to the entering into by any holder of Notes of any waiver or amendment of any of the
terms and provisions hereof unless such remuneration is concurrently paid, or security is
concurrently granted or other credit support concurrently provided, on the same terms, ratably to
each holder of Notes then outstanding even if such holder did not consent to such waiver or
amendment.

Section 17.3. Binding Effect, Etc. Any amendment or waiver consented to as provided in this
Section 17 applies equally to all holders of Notes and is binding upon them and upon each future
holder of any Note and upon the Company without regard to whether such Note has been marked to
indicate such amendment or waiver. No such amendment or waiver will extend to or affect any
obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or
impair any right consequent thereon. No course of dealing between the Company and the holder of
any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a
waiver of any rights of any holder of such Note. As used herein, the term “this Agreement” and
references thereto shall mean this Agreement as it may from time to time be amended or
supplemented.

Section 17.4. Notes Held by Company, Etc. Solely for the purpose of determining whether the
holders of the requisite percentage of the aggregate principal amount of Notes then outstanding
approved or consented to any amendment, waiver or consent to be given under this Agreement or the
Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon
the direction of the holders of a specified percentage of the aggregate principal amount of Notes
then outstanding, Notes directly or indirectly owned by the Company or any of its Affiliates shall
be deemed not to be outstanding.

	 	 	Section 18. Notices.

All notices and communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by registered or certified mail with return
receipt requested (postage prepaid), or (c) by a recognized overnight delivery service (with
charges prepaid). Any such notice must be sent:

(i) if to any Purchaser or its nominee, to such Purchaser or nominee at the address
specified for such communications in Schedule A, or at such other address as such Purchaser
or nominee shall have specified to the Company in writing,

(ii) if to any other holder of any Note, to such holder at such address as such other
holder shall have specified to the Company in writing, or

(iii) if to the Company, to the Company at its address set forth at the beginning
hereof to the attention of Nick Conrad, or at such other address as the Company shall have
specified to the holder of each Note in writing.

	 	 	 
	Notices under this Section 18 will be deemed given only when actually received.

	Section 19.

	 	Reproduction of Documents.

This Agreement and all documents relating thereto, including, without limitation,
(a) consents, waivers and modifications that may hereafter be executed, (b) documents received by
any Purchaser at the Closing (except the Notes themselves), and (c) financial statements,
certificates and other information previously or hereafter furnished to any Purchaser, may be
reproduced by such Purchaser by any photographic, photostatic, electronic, digital, or other
similar process and such Purchaser may destroy any original document so reproduced. The Company
agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall
be admissible in evidence as the original itself in any judicial or administrative proceeding
(whether or not the original is in existence and whether or not such reproduction was made by such
Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction
of such reproduction shall likewise be admissible in evidence. This Section 19 shall not prohibit
the Company or any other holder of Notes from contesting any such reproduction to the same extent
that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of
any such reproduction.

	 	 	Section 20. Confidential Information.

For the purposes of this Section 20, “Confidential Information” means information delivered to
any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions
contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was
clearly marked or labeled or otherwise adequately identified when received by such Purchaser as
being confidential information of the Company or such Subsidiary, provided that such term does not
include information that (a) was publicly known or otherwise known to such Purchaser prior to the
time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such
Purchaser or any person acting on such Purchaser’s behalf, (c) otherwise becomes known to such
Purchaser other than through disclosure by the Company or any Subsidiary or (d) constitutes
financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly
available. Each Purchaser will maintain the confidentiality of such Confidential Information in
accordance with procedures adopted by such Purchaser in good faith to protect confidential
information of third parties delivered to such Purchaser, provided that such Purchaser may deliver
or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys,
trustees and affiliates (to the extent such disclosure reasonably relates to the administration of
the investment represented by its Notes), (ii) its financial advisors and other professional
advisors who agree to hold confidential the Confidential Information substantially in accordance
with the terms of this Section 20, (iii) any other holder of any Note, (iv) any Institutional
Investor to which it sells or offers to sell such Note or any part thereof or any participation
therein (if such Person has agreed in writing prior to its receipt of such Confidential Information
to be bound by the provisions of this Section 20), (v) any Person from which it offers to purchase
any security of the Company (if such Person has agreed in writing prior to its receipt of such
Confidential Information to be bound by the provisions of this Section 20), (vi) any federal or
state regulatory authority having jurisdiction over such Purchaser, (vii) the NAIC or the SVO or,
in each case, any similar organization, or any nationally recognized rating agency that requires
access to information about such Purchaser’s investment portfolio, or (viii) any other Person to
which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any
law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or
other legal process, (y) in connection with any litigation to which such Purchaser is a party or
(z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may
reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement
or for the protection of the rights and remedies under such Purchaser’s Notes, this Agreement or
the Subsidiary Guaranty. Each holder of a Note, by its acceptance of a Note, will be deemed to
have agreed to be bound by and to be entitled to the benefits of this Section 20 as though it were
a party to this Agreement. On reasonable request by the Company in connection with the delivery to
any holder of a Note of information required to be delivered to such holder under this Agreement or
requested by such holder (other than a holder that is a party to this Agreement or its nominee),
such holder will enter into an agreement with the Company embodying the provisions of this
Section 20.

In the event that as a condition to access information relating to the Company or the
transactions contemplated by or otherwise pursuant to this Agreement, any Purchaser is required to
agree to a confidentiality undertaking (whether through Intralinks or any other electronic
platform) which is different from the terms of this Section 20, the terms of this Section 20 shall
supersede the terms of any such other confidentiality undertaking.

	 	 	Section 21. Substitution of Purchaser.

Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser
of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which
notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s
agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the
accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such
notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be
deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such
Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to
such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company
of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement
(other than in this Section 21), shall no longer be deemed to refer to such Affiliate, but shall
refer to such original Purchaser, and such original Purchaser shall again have all the rights of an
original holder of the Notes under this Agreement.

	 	 	Section 22. Miscellaneous.

Section 22.1. Successors and Assigns. All covenants and other agreements contained in this
Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their
respective successors and assigns (including, without limitation, any subsequent holder of a Note)
whether so expressed or not.

Section 22.2. Payments Due on Non-Business Days. Anything in this Agreement or the Notes to
the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice
of any optional prepayment specify a Business Day as the date fixed for such prepayment), any
payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other
than a Business Day shall be made on the next succeeding Business Day without including the
additional days elapsed in the computation of the interest payable on such next succeeding Business
Day; provided that if the maturity date of any Note is a date other than a Business Day, the
payment otherwise due on such maturity date shall be made on the next succeeding Business Day and
shall include the additional days elapsed in the computation of interest payable on such next
succeeding Business Day.

Section 22.3. Accounting Terms. All accounting terms used herein which are not expressly
defined in this Agreement have the meanings respectively given to them in accordance with GAAP.
Except as otherwise specifically provided herein, (i) all computations made pursuant to this
Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be
prepared in accordance with GAAP.

Section 22.4. Severability. Any provision of this Agreement that 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 (to the full extent permitted by
law) not invalidate or render unenforceable such provision in any other jurisdiction.

Section 22.5. Construction, Etc. Each covenant contained herein shall be construed (absent
express provision to the contrary) as being independent of each other covenant contained herein, so
that compliance with any one covenant shall not (absent such an express contrary provision) be
deemed to excuse compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person.

For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed to be a part hereof.

Section 22.6. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be an original but all of which together shall constitute one instrument. Each
counterpart may consist of a number of copies hereof, each signed by less than all, but together
signed by all, of the parties hereto.

Section 22.7. Governing Law. This Agreement shall be construed and enforced in accordance
with, and the rights of the parties shall be governed by, the law of the State of New York
excluding choice-of-law principles of the law of such State that would permit the application of
the laws of a jurisdiction other than such State.

Section 22.8. Jurisdiction and Process; Waiver of Jury Trial. (a) The Company irrevocably
submits to the non-exclusive jurisdiction of any New York State or federal court sitting in the
Borough of Manhattan, The City of New York, over any suit, action or proceeding arising out of or
relating to this Agreement or the Notes. To the fullest extent permitted by applicable law, the
Company irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise,
any claim that it is not subject to the jurisdiction of any such court, any objection that it may
now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in
any such court and any claim that any such suit, action or proceeding brought in any such court has
been brought in an inconvenient forum.

(b) The Company consents to process being served by or on behalf of any holder of Notes in any
suit, action or proceeding of the nature referred to in Section 22.8(a) by mailing a copy thereof
by registered or certified mail (or any substantially similar form of mail), postage prepaid,
return receipt requested, to it at its address specified in Section 18 or at such other address of
which such holder shall then have been notified pursuant to said Section. The Company agrees that
such service upon receipt (i) shall be deemed in every respect effective service of process upon it
in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by
applicable law, be taken and held to be valid personal service upon and personal delivery to it.
Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt
furnished by the United States Postal Service or any reputable commercial delivery service.

(c) Nothing in this Section 22.8 shall affect the right of any holder of a Note to serve
process in any manner permitted by law, or limit any right that the holders of any of the Notes may
have to bring proceedings against the Company in the courts of any appropriate jurisdiction or to
enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

(d) The parties hereto hereby waive trial by jury in any action brought on or with respect
to this Agreement, the Notes or any other document executed in connection herewith or
therewith.

* * * * *

If you are in agreement with the foregoing, please sign the form of agreement on a counterpart
of this Agreement and return it to the Company, whereupon this Agreement shall become a binding
agreement between you and the Company.

	 	 	 	Very
truly yours,

	 	 	 	The Andersons, Inc. 

	 	 	 	By: /s/ Gary Smith

	 	 	Gary Smith

Vice President, Finance and Treasurer

4

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	CoBank, ACB

	 	 	 	By: /s/ S. Richard Dill

	S.	 	Richard Dill

Vice President

5

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	The Prudential Insurance Company of
America

	 	 	 	By: /s/ Dianna Carr

	 	 	Dianna Carr

Vice President

6

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	Prudential Retirement Insurance and Annuity
Company

	 	 	 	By:
Prudential Investment Management, Inc., as
investment manager

	 	 	 	By: /s/ Dianna Carr

	 	 	Dianna Carr

Vice 

President

7

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	The Guardian Life Insurance Company of
America

	 	 	 	By: /s/ Ellen I. Whittaker

	 	 	Ellen I. Whittaker

Senior Director, Private Placements

8

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	State of Wisconsin Investment Board

	 	 	 	By: /s/ Christopher P.
Prestigiacomo

	 	 	Christopher P. Prestigiacomo

	 	 	 	Portfolio Manager

9

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	Country Life Insurance Company

	 	 	 	By: /s/ John Jacobs

	 	 	John Jacobs

Director – Fixed Income

10

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	National Guardian Life Insurance Company

	 	 	 	By: /s/ R.A. Mucci

	 	 	R.A. Mucci

Senior Vice President & Treasurer

11

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	Settlers Life Insurance Company

	 	 	 	By: /s/ R.A. Mucci

	 	 	R.A. Mucci

Senior Vice President & Treasurer

12

This Agreement is hereby

accepted and agreed to as

of the date thereof.

	 	 	 	Assurity Life Insurance Company

	 	 	 	By: /s/ Victor Weber

	 	 	Victor Weber

Senior Director — Investments

13

The Andersons, Inc.

Information Relating to Purchasers

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	CoBank, ACB
5500 S. Quebec Street
Greenwood Village, CO 80111
	 	 	A	 	 	$	85,000,000	 

14

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	The Prudential Insurance Company
 of America
c/o Prudential Capital Group
Two Prudential Plaza, Suite 5600
180 N. Stetson Avenue
Chicago, Illinois 60601
	 	 	B	 	 	$	21,200,000	 
	Attention: Managing Director
	 	 	C	 	 	$	23,760,000	 

15

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	The Prudential Insurance Company
 of America
c/o Prudential Capital Group
Two Prudential Plaza, Suite 5600
180 N. Stetson Avenue
Chicago, Illinois 60601
	 	 	B	 	 	$	5,000,000	 
	Attention: Managing Director
	 	 	C	 	 	$	5,000,000	 

16

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	Prudential Retirement Insurance and
 Annuity Company
c/o Prudential Capital Group
Two Prudential Plaza, Suite 5600
180 N. Stetson Avenue
Chicago, Illinois 60601
Attention: Managing Director
	 	 	B	 	 	$	18,800,000	 

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	Prudential Retirement Insurance and
 Annuity Company
Two Prudential Plaza, Suite 5600
180 N. Stetson Avenue
Chicago, Illinois 60601
Attention: Managing Director
	 	 	C	 	 	$	1,240,000	 

17

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	The Guardian Life Insurance
Company of America
700 South Street
Pittsfield, Massachusetts 01201-8285
Attention: Ellen Whittaker
	 	 	B	 	 	$	7,500,000	 
	Fax Number: (413) 442-9763
	 	 	C	 	 	$	7,500,000	 

18

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	State of Wisconsin Investment Board
121 East Wilson Street
Madison, Wisconsin 53703
Attention: Portfolio Manager, Private
Markets Group-Wisconsin Private Debt
Portfolio
	 	 	A	 	 	$	7,000,000	 

19

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	Country Life Insurance Company
1705 N Towanda Avenue
Bloomington, Illinois 61702
Attention: Investments
Telephone: (309) 821-6260
Fax: (309) 821-6301
	 	 	B	 	 	$	6,000,000	 

20

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	National Guardian Life Insurance
Company
Two E. Gilman St.
Madison, WI 53703
Attention: Investment Dept.
	 	 	C	 	 	$	3,000,000	 

21

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	Settlers Life Insurance Company
Two E. Gilman St.
Madison, WI 53703
Attention: Investment Dept.
	 	 	C	 	 	$	1,000,000	 

22

	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	Principal Amount of
	      Series of NotesNotes

	Name and Address of Purchaser
	 	to Be Purchased	 	to Be Purchased
	Assurity Life Insurance Company
4000 Pine Lake Road
P.O. Box 82533
Lincoln, Nebraska 68501-2533
Fax: (402) 458-2170
Email: vweber@assurity.com
	 	 	B	 	 	$	3,000,000	 

23

Defined Terms

As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

“Accounts” shall mean all present and future rights of the Company and its Subsidiaries to
payment for Inventory or other Goods sold or leased or for services rendered, which rights are not
evidenced by Instruments or Chattel Paper, regardless of whether such rights have been earned by
performance and any other “accounts” (as defined in the UCC).

“Affiliate” means, at any time, and with respect to any Person, any other Person that at such
time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is
under common Control with, such first Person, and, with respect to the Company, shall include any
Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting
or equity interests of the Company or any Subsidiary or any corporation of which the Company and
its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of
any class of voting or equity interests. As used in this definition, “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management
and policies of a Person, whether through the ownership of voting securities, by contract or
otherwise. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a
reference to an Affiliate of the Company.

“Anti-Terrorism Order” means Executive Order No. 13224 of September 24, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49, 079 (2001), as amended.

“Asset Coverage Ratio” means, for any date of determination, the ratio of (a) the sum of
(i) the aggregate outstanding principal amount of all Bank Liabilities, plus (ii) the aggregate
outstanding principal amount of the Notes, plus (iii) the aggregate outstanding principal amount of
all other unsecured Indebtedness described in clauses (a), (b), (e) and (g) in the definition
thereof (other than Subordinated Indebtedness) of the Company and its Subsidiaries, minus (iv) the
aggregate outstanding principal amount of the Debenture Bonds, divided by (b) the sum of the
amounts of the Company’s net margin deposits, accounts receivable and inventory (excluding from
inventory, all Rail Assets financed by Permitted Securitization Transactions and Limited Recourse
Indebtedness), as increased or decreased by, in the case of inventory, all current and non-current
commodity derivative assets and liabilities recorded on the Company’s balance sheet in accordance
with GAAP as they would normally appear on a consolidated balance sheet of the Company and its
Subsidiaries as of such date prepared in accordance with GAAP. For avoidance of doubt, net margin
deposits referred to above may be a positive or negative amount which shall be determined net of
any liabilities relating to such deposits, including, without limitation, any non-contingent
obligations of the Company or any Subsidiary to make a deposit or to supplement a deposit.

“Asset Disposition” means any Transfer except:

(a) any Transfer from a Subsidiary to the Company or to a Wholly-Owned Subsidiary so
long as immediately before and immediately after the consummation of any such Transfer and
after giving effect thereto, no Default or Event of Default would exist;

(b) any Transfer made in the ordinary course of business and involving only property
that is either (1) held for lease or sale or (2) equipment, fixtures, supplies or materials
no longer required in the operation of the business of the Company or any of its
Subsidiaries or that is obsolete;

(c) any Transfer of Rail Assets for fair market value in connection with the financing
of such Rail Assets; and

(d) any Transfer to a Securitization Entity of Rail Assets on a limited recourse basis,
provided, that (i) such sale or other disposition qualifies as a sale under GAAP and
(ii) the aggregate outstanding amount of such financings in connection therewith shall not
at any time exceed $500,000,000 less the aggregate outstanding amount of all Limited
Recourse Indebtedness (any such sale or other disposition, a “Permitted Securitization
Transaction”).

“Bank Credit Agreement” means that certain Amended and Restated Loan Agreement dated as of
February 21, 2008, among the Company, the lenders party thereto and U.S. Bank National Association,
as administrative agent, as amended, restated, supplemented, modified, refinanced or replaced from
time to time.

“Bank Liabilities” shall mean any and all liabilities, obligations and indebtedness of the
Company to the administrative agent, lenders and issuers of letters of credit under the Bank Credit
Agreement of any and every kind and nature, at any time owing, arising, due or payable and
howsoever evidenced, created, incurred, acquired or owing, whether primary, secondary, direct,
contingent, fixed or otherwise (including without limitation LC Obligations, Bank Products
Obligations, fees, charges and obligations of performance) and whether arising or existing under
the Bank Credit Agreement or any of the other Financing Agreements or by operation of law. The
terms “LC Obligations,” “Bank Products Obligations” and “Financing Agreements” shall have the
meanings set forth in the Bank Credit Agreement.

“Business Day” means (a) for the purposes of Section 8.6 only, any day other than a Saturday,
a Sunday or a day on which commercial banks in New York City are required or authorized to be
closed, and (b) for the purposes of any other provision of this Agreement, any day other than a
Saturday, a Sunday or a day on which commercial banks in New York, New York or Maumee, Ohio are
required or authorized to be closed.

“Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

“Chattel Paper” shall have the meaning set forth for such term in the UCC.

“Closing” is defined in Section 3.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time.

“Commodity Accounts” shall have the meaning set forth for such term in the UCC.

“Commodity Contracts” shall have the meaning set forth for such term in the UCC.

“Company” means The Andersons, Inc., an Ohio corporation, or any successor that becomes such
in the manner prescribed in Section 10.2.

“Confidential Information” is defined in Section 20.

“Consolidated Capitalization” means, as of any date, (a) Consolidated Tangible Net Worth
plus (b) Total Funded Indebtedness.

“Consolidated Tangible Net Worth” means, as of any particular date, (a) the Company’s
consolidated net worth, minus (b) the consolidated book value of the Company’s intangible
assets, plus (c) the consolidated book amount of the Company’s deferred income, all as
determined on a consolidated basis for the Company and its Subsidiaries in accordance with GAAP.

“Consolidated Total Assets” means, at any time, the total assets of the Company and its
Subsidiaries which would be shown on a consolidated balance sheet of the Company and its
Subsidiaries as of such time prepared in accordance with GAAP.

“Current Ratio Net of Hedged Inventory” shall mean, for any date of determination, the ratio
of the Company’s: (a) (i) consolidated current assets, minus (ii) the book value of Hedged
Inventory, minus (iii) the net liquidation value of related Margin Accounts; divided by
(b) (i) consolidated current liabilities, minus (ii) the book value of Hedged Inventory, minus
(iii) the net liquidation value of related Margin Accounts, all determined on a consolidated basis
in accordance with GAAP. Solely for the purpose of calculating the Current Ratio Net of Hedged
Inventory, “consolidated current liabilities” shall be determined in accordance with GAAP as in
effect on the date of Closing, provided that if there shall occur any change in GAAP after the date
of Closing that would affect how “consolidated current liabilities” is determined under this
definition, then the Company shall provide to the holders financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of this covenant made before and after giving effect to such change in GAAP.

“Debenture Bonds” means those certain Debentures described on Schedule 5.15 hereto and
outstanding on the date hereof which Debentures were issued pursuant to that certain Indenture
dated as of October 1, 1985, as supplemented from time to time.

“Default” means an event or condition the occurrence or existence of which would, with the
lapse of time or the giving of notice or both, become an Event of Default.

“Default Rate” means that rate of interest for each series of Notes that is the greater of
(i) 2% per annum above the then current rate of interest on such series of Notes or (ii) 2.00% over
the rate of interest publicly announced by Wells Fargo Bank in New York, New York as its “base” or
“prime” rate.

“Disposition Value” means, at any time, with respect to any property

(a) in the case of property that does not constitute Subsidiary Stock, the book value
thereof, valued at the time of such disposition in good faith by the Company, and

(b) in the case of property that constitutes Subsidiary Stock, an amount equal to that
percentage of book value of the assets of the Subsidiary that issued such Subsidiary Stock
as is equal to the percentage that the book value of such Subsidiary Stock represents of the
book value of all of the outstanding capital stock or similar equity interests of such
Subsidiary (assuming, in making such calculations, that all Securities convertible into such
capital stock or similar equity interests are so converted and giving full effect to all
transactions that would occur or be required in connection with such conversion) determined
at the time of the disposition thereof, in good faith by the Company.

“Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including but
not limited to those related to Hazardous Materials.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect.

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated
as a single employer together with the Company under section 414 of the Code.

“Event of Default” is defined in Section 11.

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

“Fair Market Value” means, at any time and with respect to any property, the sale value of
such property that would be realized in an arm’s-length sale at such time between an informed and
willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell).

“Farm Products” mean all personal property owned by the Company and its Subsidiaries used or
for use in farming or livestock operations, including without limitation, seed and harvested or
un-harvested crops of all types and descriptions, whether annual or perennial and including trees,
vines and the crops growing thereon, native grass, grain, feed, feed additives, feed ingredients,
feed supplements, fertilizer, hay, silage, supplies (including without limitation, chemicals,
veterinary supplies and related Goods), livestock of all types and descriptions (including without
limitation, the offspring of such livestock and livestock in gestation) and any other “farm
products” (as defined in the UCC).

“Form 10-K” is defined in Section 7.1(b).

“Form 10-Q” is defined in Section 7.1(a).

“Funded Indebtedness” means, all long-term debt of the Company and its Subsidiaries (including
the current maturities of any long-term debt) as identified on the balance sheet of the Company
delivered in compliance with Section 7.1(a) and (b), determined on a consolidated basis in
accordance with GAAP.

“GAAP” means generally accepted accounting principles as in effect from time to time in the
United States of America.

“General Intangibles” shall have the meaning set forth for such term in the UCC.

“Goods” shall have the meaning set forth for such term in the UCC.

“Governmental Authority” means

(a) the government of

(i) the United States of America or any State or other political subdivision
thereof, or

(ii) any other jurisdiction in which the Company or any Subsidiary conducts all
or any part of its business, or which asserts jurisdiction over any properties of
the Company or any Subsidiary, or

(b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any indebtedness, dividend or other obligation of any other
Person in any manner, whether directly or indirectly, including (without limitation) obligations
incurred through an agreement, contingent or otherwise, by such Person:

(a) to purchase such indebtedness or obligation or any property constituting security
therefor;

(b) to advance or supply funds (i) for the purchase or payment of such indebtedness or
obligation, or (ii) to maintain any working capital or other balance sheet condition or any
income statement condition of any other Person or otherwise to advance or make available
funds for the purchase or payment of such indebtedness or obligation;

(c) to lease properties or to purchase properties or services primarily for the purpose
of assuring the owner of such indebtedness or obligation of the ability of any other Person
to make payment of the indebtedness or obligation; or

(d) otherwise to assure the owner of such indebtedness or obligation against loss in
respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the
indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be
direct obligations of such obligor.

“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other
substances that might pose a hazard to health and safety, the removal of which may be required or
the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of
which is or shall be restricted, prohibited or penalized by any applicable law including, but not
limited to, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum,
petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized
substances.

“Hedged Inventory” means Inventory consisting of commodities that are hedged against price
fluctuation using traditionally recognized methods of hedging, including, but not limited to,
futures contracts, placed through a recognized commodities broker, adjusted to include all current
and non-current commodity derivative assets and liabilities recorded on the Company’s balance sheet
in accordance with GAAP.

“holder” means, with respect to any Note the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 13.1.

“Indebtedness” with respect to any Person means, at any time, without duplication,

(a) (i) its liabilities for borrowed money and (ii) its redemption obligations in
respect of Preferred Stock which is or upon the occurrence of certain events may be
mandatorily redeemable by the holders thereof at any time prior to the payment in full of
the Notes;

(b) its liabilities for the deferred purchase price of property acquired by such Person
(excluding accounts payable arising in the ordinary course of business but including all
liabilities created or arising under any conditional sale or other title retention agreement
with respect to any such property);

(c) (i) all liabilities appearing on its balance sheet in accordance with GAAP in
respect of Capital Leases and (ii) all liabilities which would appear on its balance sheet
in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic Leases were
accounted for as Capital Leases;

(d) all liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities);

(e) all its liabilities in respect of letters of credit or instruments serving a
similar function issued or accepted for its account by banks and other financial
institutions (whether or not representing obligations for borrowed money);

(f) the aggregate Swap Termination Value of all Swap Contracts of such Person; and

(g) any Guaranty of such Person with respect to liabilities of a type described in any
of clauses (a) through (f) hereof.

Indebtedness of any Person shall include all obligations of such Person of the character described
in clauses (a) through (f) to the extent such Person remains legally liable in respect thereof
notwithstanding that any such obligation is deemed to be extinguished under GAAP.

“Indebtedness Prepayment Application” means, with respect to any Transfer of property
constituting an Asset Disposition, the application by the Company or any Subsidiary of cash in an
amount equal to the Net Proceeds Amount (or portion thereof) with respect to such Transfer to pay
Senior Indebtedness; provided, that in the event such Senior Indebtedness would otherwise permit
the reborrowing of such Senior Indebtedness by the Company or such Subsidiary, the commitment to
relend such Senior Indebtedness shall be permanently reduced by the amount of such Indebtedness
Prepayment Application; provided further that in the course of making such application the Company
shall offer to prepay each outstanding Note in accordance with Section 8.8 in a principal amount
which equals the Ratable Portion for such Note. If any holder of a Note fails to accept such offer
of prepayment, then the Company shall use the amount of the offered prepayment not accepted to pay
down other Senior Indebtedness which constitutes Indebtedness as set forth hereinabove. “Ratable
Portion” for any Note means an amount equal to the product of (x) the Net Proceeds Amount being so
applied to the payment of Senior Indebtedness multiplied by (y) a fraction the numerator of which
is the outstanding principal amount of such Note and the denominator of which is the aggregate
principal amount of Senior Indebtedness of the Company and its Subsidiaries.

“Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding
(together with one or more of its affiliates) more than 10% of the aggregate principal amount of
any series of the Notes then outstanding, (c) any bank, trust company, savings and loan association
or other financial institution, any pension plan, any investment company, any insurance company,
any broker or dealer, or any other similar financial institution or entity, regardless of legal
form, and (d) any Related Fund of any holder of any Note.

“Instruments” shall have the meaning set forth for such term in the UCC.

“Inventory” means any and all Goods which shall at any time constitute “inventory” (as defined
in the UCC) or Farm Products owned by the Company and its Subsidiaries, wherever located (including
without limitation, Goods in transit and Goods in the possession of third parties), or which from
time to time are held for sale, lease or consumption in the Company’s or any of its Subsidiary’s
business, furnished under any contract of service or held as raw materials, work in process,
finished inventory or supplies (including without limitation, packaging and/or shipping materials).

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security
interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other
secured party to or of such Person under any conditional sale or other title retention agreement or
Capital Lease, upon or with respect to any property or asset of such Person (including in the case
of stock, stockholder agreements, voting trust agreements and all similar arrangements).

“Limited Recourse Debt” means any Indebtedness borrowed, raised or incurred by the Company or
any of its Subsidiaries with respect to the financing of Rail Assets, in respect of which (i)
recourse of the limited recourse financiers is limited to such Rail Assets, (ii) there is no
recourse whatsoever, directly or indirectly (including by way of Guaranty, set-off, subrogation,
execution or specific performance), to, or in respect of, the Company or any Subsidiary, and (iii)
no limited recourse financier can seek to wind up or place in administration or make or pursue any
claim in the winding up or administration of the Company or any Subsidiary (or any similar or
equivalent action under the laws of any relevant jurisdiction), subject to, in each of the
preceding cases, Limited Recourse Exceptions.

“Limited Recourse Exceptions” means, with respect to Limited Recourse Indebtedness, reasonable
and customary exceptions for fraud, willful misrepresentation, misapplication of funds (including
misappropriation of security deposits and failure to apply rents to operating expenses or debt
service), indemnities relating to environmental matters and waste of property constituting security
for such Limited Recourse Indebtedness, post-default interest, attorney’s fees and other costs of
collection to the extent not covered by the value of the property constituting security for such
Limited Recourse Indebtedness and other similar exceptions to nonrecourse liability.

“Make-Whole Amount” is defined in Section 8.6.

“Margin Accounts” mean, collectively, all Commodity Accounts and all Commodity Contracts and
(to the extent not included in Commodity Accounts or Commodity Contracts) all Swap Contracts and
cash forward contracts maintained by the Company and its Subsidiaries with respect to Hedged
Inventory.

“Material” means material in relation to the business, operations, affairs, financial
condition, assets, properties, or prospects of the Company and its Subsidiaries taken as a whole.

“Material Adverse Effect” means a material adverse effect on (a) the business, operations,
affairs, financial condition, assets or properties of the Company and its Subsidiaries taken as a
whole, or (b) the ability of the Company to perform its obligations under this Agreement and the
Notes, or (c) the ability of any Subsidiary Guarantor to perform its obligations under the
Subsidiary Guaranty, or (d) the validity or enforceability of this Agreement, the Notes or the
Subsidiary Guaranty.

“Memorandum” is defined in Section 5.3.

“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
section 4001(a)(3) of ERISA).

“NAIC” means the National Association of Insurance Commissioners or any successor thereto.

“Net Proceeds Amount” means, with respect to any Transfer of any property by any Person, an
amount equal to the difference of

(a) the aggregate amount of the consideration (valued at the Fair Market Value of such
consideration at the time of the consummation of such Transfer) allocated to such Person in
respect of such Transfer, net of any applicable taxes incurred in connection with such
Transfer, minus

(b) all ordinary and reasonable out-of-pocket costs and expenses actually incurred by
such Person in connection with such Transfer.

“New Financial Covenant” means any covenant or agreement or similar restriction (including
those which may be expressed as “events of default”) applicable to the Company or any Subsidiary
the primary purpose of which is to test net income, cash flow, or any other similar financial item
that measures the income statement performance of the Company or any Subsidiary.

“Notes” is defined in Section 1.

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other
officer of the Company whose responsibilities extend to the subject matter of such certificate.

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any
successor thereto.

“Permitted Securitization Transaction” has the meaning set forth for such term in the
definition of “Asset Disposition.”

“Person” means an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization, business entity or Governmental Authority.

“Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title
I of ERISA that is or, within the preceding five years, has been established or maintained, or to
which contributions are or, within the preceding five years, have been made or required to be made,
by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate
may have any liability.

“Preferred Stock” means any class of capital stock of a Person that is preferred over any
other class of capital stock (or similar equity interests) of such Person as to the payment of
dividends or the payment of any amount upon liquidation or dissolution of such Person.

“Priority Indebtedness” means the sum, without duplication, of (i) Indebtedness of the Company
or any Subsidiary secured by Liens not otherwise permitted by clauses (a) through (j) of
Section 10.5, plus (ii) all unsecured Indebtedness of Subsidiaries which are not Subsidiary
Guarantors (excluding Indebtedness of any Subsidiary owing to the Company or a Wholly-Owned
Subsidiary).

“property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

“Property Reinvestment Application” means, with respect to any Transfer of property
constituting an Asset Disposition, the application of an amount equal to the Net Proceeds Amount
with respect to such Transfer to the acquisition by the Company or any of its Subsidiaries of
operating assets for the Company or any Subsidiary to be used in the principal business of such
Person (or of an entity owning operating assets, in which event the Property Reinvestment
Application shall be limited to the Fair Market Value of such operating assets).

“PTE” is defined in Section 6.2(a).

“Purchaser” is defined in the first paragraph of this Agreement.

“Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer”
within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

“Rail Assets” means locomotives, railcars, maintenance of way equipment and any leases or
lease receivables or accounts or notes receivables related to such property.

“Related Fund” means, with respect to any holder of any Note, any fund or entity that
(i) invests in Securities or bank loans, and (ii) is advised or managed by such holder, the same
investment advisor as such holder or by an affiliate of such holder or such investment advisor.

“Required Holders” means, at any time, the holders of at least 51% in principal amount of the
Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).

“Responsible Officer” means any Senior Financial Officer and any other officer of the Company
with responsibility for the administration of the relevant portion of this Agreement.

“SEC” shall mean the Securities and Exchange Commission of the United States, or any successor
thereto.

“Securities” or “Security” shall have the meaning specified in Section 2(1) of the Securities
Act.

“Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.

“Securitization Entity” shall mean a Wholly-Owned Subsidiary of the Company that engages in no
activities other than Permitted Securitization Transactions and any necessary related activities
and owns no assets other than as required for Permitted Securitization Transactions and (a) no
portion of the Indebtedness (contingent or otherwise) of which is guaranteed by the Company or any
Subsidiary or is recourse to or obligates the Company or any Subsidiary in any way, other than
pursuant to customary representations, warranties, covenants, indemnities and other obligations
entered into in connection with a Permitted Securitization Transaction and (b) to which neither the
Company nor any Subsidiary has any material obligation to maintain or preserve such entity’s
financial condition or cause such entity to achieve certain levels of operating results.

“Senior Indebtedness” shall mean and include (i) any Indebtedness of the Company (other than
Indebtedness owing to any Affiliate) which is not expressed to be junior or subordinate to any
other Indebtedness of the Company, and (ii) any Indebtedness of a Subsidiary (other than
Indebtedness owing to any Affiliate) which is not expressed to be junior or subordinate to any
other Indebtedness of such Subsidiary.

“Senior Financial Officer” means the chief financial officer, principal accounting officer,
treasurer or comptroller of the Company.

“series” is defined in Section 2.

“Series A Notes” is defined in Section 1 of this Agreement.

“Series B Notes” is defined in Section 1 of this Agreement.

“Series C Notes” is defined in Section 1 of this Agreement.

“Subordinated Indebtedness” shall mean all Indebtedness of the Company and its Subsidiaries
which is subordinated to the obligations of the Company hereunder and to the obligations of any
Subsidiary Guarantor under any Subsidiary Guaranty all on terms and conditions satisfactory to the
Required Holders, including, without limitation, a block on any payment of principal, interest,
premium or other amounts payable on such Indebtedness at all times prior to payment in full of the
Notes.

“Subsidiary” means, as to any Person, any other Person in which such first Person or one or
more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient
equity or voting interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing similar functions) of
such second Person, and any partnership or joint venture if more than a 50% interest in the profits
or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first
Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take
major business actions without the prior approval of such Person or one or more of its
Subsidiaries). Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a
reference to a Subsidiary of the Company.

“Subsidiary Guarantor” means any Subsidiary that executes and delivers a Subsidiary Guaranty
on the Closing Date and, thereafter, in accordance with Section 9.7 hereof.

“Subsidiary Guaranty” is defined in Section 2.

“Subsidiary Stock” means, with respect to any Person, the capital stock or limited liability
company or other equity (or any options or warrants to purchase stock or similar equity interests
or other Securities exchangeable for or convertible into stock or similar equity interests) of any
Subsidiary of such Person.

“SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.

“Swap Contract” means (a) any and all interest rate swap transactions, basis swap
transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index swaps or options,
bond or bond price or bond index swaps or options or forward foreign exchange transactions, cap
transactions, floor transactions, currency options, spot contracts or any other similar
transactions or any of the foregoing (including, but without limitation, any options to enter into
any of the foregoing), and (b) any and all transactions of any kind, and the related confirmations,
which are subject to the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement.

“Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking
into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amounts(s) determined as the mark-to-market
values(s) for such Swap Contracts, as determined based upon one or more mid-market or other readily
available quotations provided by any recognized dealer in such Swap Contracts.

“Synthetic Lease” means, at any time, any lease (including leases that may be terminated by
the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP
and (b) in respect of which the lessee retains or obtains ownership of the property so leased for
U.S. federal income tax purposes, other than any such lease under which such Person is the lessor.

“Top Cat Subsidiaries” means collectively, and “Top Cat Subsidiary” means each of, TOP CAT
Holding, Co., a Delaware corporation, a Wholly-Owned Subsidiary of the Company, and Cap Acquire,
LLC, a Delaware limited liability company, Cap Acquire Canada, ULC, a Nova Scotia unlimited
liability company, Cap Acquire Mexico S. de R.L. de C.V., a Mexican limited liability company with
variable capital, NARCAT LLC, a Delaware limited liability company, CARCAT, ULC, a Nova Scotia
unlimited liability company, and NARCAT Mexico S. de R.L. de C.V., a Mexican limited liability
company with variable capital, the direct and indirect Wholly-Owned Subsidiaries of TOP CAT
Holding, Co.

“Total Funded Indebtedness” means, as of the date of any determination thereof, the aggregate
of all Funded Indebtedness which appears on the consolidated balance sheet of the Company and its
Subsidiaries. “Total Funded Indebtedness” shall not include deferred items, minority interests,
and Limited Recourse Indebtedness, in each case, related to the Company’s investment in “special
purpose entities” established to facilitate the acquisition of certain Rail Assets from Progress
Rail Services, Railcar Ltd., and their affiliates, or any other assets acquired or financed with
Limited Recourse Indebtedness, provided, however, the Company shall affirmatively certify and
provide reasonable documentation as to Indebtedness excluded as non-recourse hereunder in the
periodic certifications required pursuant to Section 7.1.

“Transfer” means, with respect to any Person, any transaction (including by merger,
consolidation or disposition of all or substantially all the assets of such) in which such Person
sells, conveys, transfers or leases (as lessor) any of its property, including, without limitation,
Subsidiary Stock. “Transfer” shall also include the creation of minority interests in connection
with any merger or consolidation involving a Subsidiary if the resulting entity is owned, directly
or indirectly, by the Company in the proportion less than the proportion of ownership of such
Subsidiary by the Company immediately preceding such merger or consolidation.

“UCC” means the Uniform Commercial Code in effect from time to time in the state of Ohio.

“USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
2001, as amended from time to time, and the rules and regulations promulgated thereunder from time
to time in effect.

“Wholly-Owned Subsidiary” means, at any time, any Subsidiary one hundred percent of all of the
equity interests (except directors’ qualifying shares) and voting interests of which are owned by
any one or more of the Company and the Company’s other Wholly-Owned Subsidiaries at such time.

24

Disclosure Materials

1. Company’s Financial Model for Short Term Borrowing Needs.

2. Company’s Quarterly Compliance Certificates dated 12/31/06, 3/31/07, 6/30/07, 9/30/07 and
12/31/07.

3. Bankers’ Presentation dated 12/13/07.

4. List of Top 5 Customers of Grain, Ethanol and Rail and Top 2-3 Customers for Plant Nutrient and
Turf and Specialty.

25

5. Company’s Annual Reports for 2005, 2006 and 2007.

Subsidiaries, Affiliates, Directors and Senior Officers

	 
	(a)(i) Subsidiaries:

 

 

Place of Organization

Subsidiary

Ownership %

 

 

 

The Andersons Ag Software, Inc.

100%

Ohio

The Andersons Agriculture Group, L.P.

100%

Ohio

The Andersons AgVantage Agency, LLC

100%

Ohio

The Andersons ALACO Lawn, Inc.

100%

Alabama

The Andersons Ethanol Investment II LLC

100%

Ohio

The Andersons Lawn Fertilizer Division, Inc.

100%

Ohio

The Andersons Rail Operating I, LLC

100%

Ohio

Cap Acquire LLC

100%

Delaware

Cap Acquire Canada ULC

100%

Nova Scotia

Cap Acquire Mexico S. de R.L. de C.V.

100%

Mexico

CARCAT ULC

100%

Nova Scotia

Metamora Commodity Company Incorporated

100%

Ohio

NARCAT LLC

100%

Delaware

NARCAT Mexico S. de R.L. de C.V.

100%

Mexico

NuRail USA LLC

100%

Ohio

NuRail Canada ULC

100%

Nova Scotia

TAI Holdings, Inc.

100%

Michigan

TOP CAT Holding Co.

100%

Delaware

The Andersons Ethanol Champaign LLC

100%

Ohio

The Andersons Farm Development Co., LLC

100%

Ohio

The Andersons ECO Services LLC

100%

Ohio

The Andersons Inc. Charitable Foundation

100%

Ohio

(a)(ii) Affiliates (other than Subsidiaries):

	 	 	 	 	 	 	 
	Subsidiary

	 	Ownership %
	 	Place of Organization
	 

	 	 	 	 	 	 
	The Andersons Albion Ethanol LLC

	 	 	49	%	 	Ohio
	 

	 	 	 	 	 	 
	The Andersons Clymers Ethanol LLC

	 	 	37	%	 	Ohio
	 

	 	 	 	 	 	 
	The Andersons Marathon Ethanol LLC

	 	 	50	%	 	Delaware
	 

	 	 	 	 	 	 
	Lansing Trade Group LLC

	 	 	47	%	 	Delaware
	 

	 	 	 	 	 	 
	The Andersons Ethanol Investment LLC

	 	 	67	%	 	Ohio
	 

	 	 	 	 	 	 
	Citizens LLC

	 	 	23	%	 	Michigan
	 

	 	 	 	 	 	 
	Poneto Tank Company, LLC

	 	 	33	%	 	Indiana
	 

	 	 	 	 	 	 

(a)(iii) Directors:

	 	 	 
	1. Michael J. Anderson

	 	7. Donald L. Mennel
	2. Richard P. Anderson

	 	8. David L. Nichols
	3. John F. Barrett

	 	9. Sidney A. Ribeau
	4. Catherine M. Kilbane

	 	10. Charles A. Sullivan
	5. Robert J. King, Jr.

	 	11. Jacqueline F. Woods
	6. Paul M. Kraus

	 	

(a)(iv) Senior Officers:

	 	 	 	 	 	 	 
	Chairman	 	-	 	Richard P. Anderson
	President and Chief Executive Officer	 	-	 	Michael J. Anderson
	President, Grain and Ethanol Group	 	-	 	Harold M. Reed
	President, Plant Nutrient Group

	 	 	 	-
	 	Dennis J. Addis

President, Rail Group — Rasesh H. Shah President, Retail Group — Daniel T. Anderson

	 	 	 	 	 
	President, Turf and Specialty Group

Vice President, Corporate Controller/CIO

Vice President, Corporate Business/Financial Analysis

Vice President, Corporate Services

Vice President, Finance and Treasurer

Vice President, General Counsel and Secretary

Vice President, Human Resources

	 	-

-

-

-

-

-

-
	 	Thomas L. Waggoner

Richard R. George

Tamara S. Sparks

Dale W. Fallat

Gary L. Smith

Naran U. Burchinow

Charles E. Gallagher

26

Financial Statements

1. Company’s Annual Audited Financial Statements for 1998, 1999, 2000, 2001, 2002, 2003,
2004, 2005, 2006 and 2007.

27

2. Company’s Quarterly Unaudited Financial Statements for 12/31/06, 3/31/07, 6/30/07, 9/30/07 and

12/31/07.Existing Indebtedness; Future Liens

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Obligor	 	Obligee	 	12/31/07	 	Maturity	 	Interest Rate	 	Collateral
	 	 	Recourse Debt	 	(In 000's)	 	 	 	 	 	 
	The Andersons, Inc.	 	ST Line of Credit	 	$245,500	 	2009	 	5.35%	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	The Andersons, Inc.
	 	LT Line of Credit	 	$	50,000	 	 	 	2009	 	 	 	5.29	%	 	 	 	 
	The Andersons, Inc.
	 	Note Payable (MetLife)	 	$	9,807	 	 	 	2010	 	 	 	6.95	%	 	Delphi and Dunkirk, IN Grain Facilities
	The Andersons, Inc.
	 	Note Payable (MetLife)	 	$	5,256	 	 	 	2010	 	 	 	4.60	%	 	Oakville, IN Grain Facilities
	The Andersons, Inc.
	 	Note Payable (Huntington)	 	$	13,535	 	 	 	2012	 	 	 	5.55	%	 	Maumee and Toledo, OH General Stores
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Champaign, IL Grain and Fertilizer
	The Andersons, Inc.
	 	Note Payable (Huntington)	 	$	8,001	 	 	 	2016	 	 	 	5.55	%	 	Facilities
	The Andersons, Inc.
	 	Note Payable (Bank of America)	 	$	2,713	 	 	 	2009	 	 	 	4.64	%	 	Railcars
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Albion, MI and Clymers, IN Grain
	The Andersons, Inc.
	 	Note Payable (First Merit)	 	$	12,950	 	 	 	2016	 	 	 	5.73	%	 	Facilities
	The Andersons, Inc.
	 	Capital Leases	 	$	172	 	 	 	2008	 	 	 	4.95	%	 	Railcars
	The Andersons, Inc.
	 	Industrial Revenue Bonds	 	$	4,650	 	 	 	2019	 	 	 	3.52	%	 	Webberville, MI Facility
	The Andersons ALACO
Lawn, Inc.*
	 	Industrial Revenue Bonds	 	$	3,100	 	 	 	2025	 	 	 	3.70	%	 	Montgomery, AL Facility
	The Andersons, Inc.
	 	Debenture Bonds	 	$	32,984	 	 	 	2008-17	 	 	 	5-8	%	 	 	 	 
	The Andersons, Inc.
	 	Other	 	$	123	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total Long-Term Recourse Debt	 	$	143,291	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Non-Recourse Debt	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Note Payable (First Merit)	 	$	127	 	 	 	2010	 	 	 	6.09	%	 	Rail Cars
	 
	 	Note Payable (Wells Fargo)	 	$	892	 	 	 	2011	 	 	 	6.97	%	 	Rail Cars
	 
	 	Note Payable (ABN AMRO)	 	$	2,308	 	 	 	2014	 	 	 	6.37	%	 	Rail Cars
	 
	 	Note Payable (Bank of America)	 	$	118	 	 	 	2010	 	 	 	6.68	%	 	Rail Cars
	 
	 	Note Payable (M&T Bank)	 	$	835	 	 	 	2010	 	 	 	6.17	%	 	Interest in Rail Car Trust
	 
	 	TARO I - (Siemens)	 	$	34,709	 	 	 	2013	 	 	 	5.95	%	 	Rail Cars
	 
	 	Securitization A-1 Notes	 	$	2,600	 	 	 	2019	 	 	 	2.79	%	 	Rail Cars
	 
	 	Securitization A-2 Notes	 	$	21,000	 	 	 	2019	 	 	 	4.57	%	 	Rail Cars
	 
	 	Securitization A-3 Notes	 	$	4,460	 	 	 	2019	 	 	 	5.13	%	 	Rail Cars
	 
	 	Securitization B Notes	 	$	2,950	 	 	 	2019	 	 	 	14.00	%	 	Rail Cars
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total Long-Term Non-Recourse	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Debt	 	$	69,999	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Total Long-Term Debt	 	$	213,290	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

28

*Guaranteed by The Andersons, Inc.[Form of Series A Note]

The Andersons, Inc. 

4.80% Senior Guaranteed Note, Series A, Due March 27, 2011

	 	 	 
	No. AR-[     ]

$[     ]

	 	March 27, 2008

PPN 034164 AV5

For Value Received, the undersigned, The Andersons, Inc.  (herein called the
“Company”), a corporation organized and existing under the laws of the State of Ohio, hereby
promises to pay to [     ], or registered assigns, the principal sum of
[     ] Dollars (or so much thereof as shall not have been prepaid) on
[     ], 2011, with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance hereof at the rate of 4.80% per annum from the date hereof, payable
semiannually, on the twenty-seventh day of March and September in each year, commencing with the
March 27 or September 27 next succeeding the date hereof, until the principal hereof shall have
become due and payable, and (b) to the extent permitted by law, on any overdue payment of interest
and, during the continuance of an Event of Default, on such unpaid balance and on any overdue
payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of
(i) 2.00% over the then current rate of interest of this Note or (ii) 2.00% over the rate of
interest publicly announced by Wells Fargo Bank, N.A. from time to time in New York, New York as
its “base” or “prime” rate, payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand).

Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at Wells Fargo Bank, in New York,
New York or at such other place as the Company shall have designated by written notice to the
holder of this Note as provided in the Note Purchase Agreement referred to below.

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of March 27, 2008 (as from time to time amended, the “Note
Purchase Agreement”), between the Company and the respective Purchasers named therein and is
entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance
hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase
Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the
respective meanings ascribed to such terms in the Note Purchase Agreement.

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer accompanied by a written instrument of transfer duly
executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a
new Note for a like principal amount will be issued to, and registered in the name of, the
transferee. Prior to due presentment for registration of transfer, the Company may treat the
person in whose name this Note is registered as the owner hereof for the purpose of receiving
payment and for all other purposes, and the Company will not be affected by any notice to the
contrary.

This Note is subject to prepayment, in whole or from time to time in part, at the times and on
the terms specified in the Note Purchase Agreement, but not otherwise.

The payment and performance of this Note is unconditionally guaranteed by the Subsidiary
Guarantors as provided in the Subsidiary Guaranty.

If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company
and the holder of this Note shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would permit the application of the laws of
a jurisdiction other than such State.

	 	 	 	The Andersons, Inc. 

	 	 	 	By

[Title]

29

[Form of Series B Note]

The Andersons, Inc. 

6.12% Senior Guaranteed Note, Series B, Due March 27, 2015

	 	 	 
	No. BR-[     ]

$[     ]

	 	March 27, 2008

PPN 034164 A*4

For Value Received, the undersigned, The Andersons, Inc.  (herein called the
“Company”), a corporation organized and existing under the laws of the State of Ohio, hereby
promises to pay to [     ], or registered assigns, the principal sum of
[     ] Dollars (or so much thereof as shall not have been prepaid) on
[     ], 2015, with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance hereof at the rate of 6.12% per annum from the date hereof, payable
semiannually, on the twenty-seventh day of March and September in each year, commencing with the
March 27 or September 27 next succeeding the date hereof, until the principal hereof shall have
become due and payable, and (b) to the extent permitted by law, on any overdue payment of interest
and, during the continuance of an Event of Default, on such unpaid balance and on any overdue
payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of
(i) 2.00% over the then current rate of interest of this Note or (ii) 2.00% over the rate of
interest publicly announced by Wells Fargo Bank, N.A. from time to time in New York, New York as
its “base” or “prime” rate, payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand).

Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at Wells Fargo Bank, in New York,
New York or at such other place as the Company shall have designated by written notice to the
holder of this Note as provided in the Note Purchase Agreement referred to below.

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of March 27, 2008 (as from time to time amended, the “Note
Purchase Agreement”), between the Company and the respective Purchasers named therein and is
entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance
hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase
Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the
respective meanings ascribed to such terms in the Note Purchase Agreement.

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer accompanied by a written instrument of transfer duly
executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a
new Note for a like principal amount will be issued to, and registered in the name of, the
transferee. Prior to due presentment for registration of transfer, the Company may treat the
person in whose name this Note is registered as the owner hereof for the purpose of receiving
payment and for all other purposes, and the Company will not be affected by any notice to the
contrary.

This Note is subject to prepayment, in whole or from time to time in part, at the times and on
the terms specified in the Note Purchase Agreement, but not otherwise.

The payment and performance of this Note is unconditionally guaranteed by the Subsidiary
Guarantors as provided in the Subsidiary Guaranty.

If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company
and the holder of this Note shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would permit the application of the laws of
a jurisdiction other than such State.

	 	 	 	The Andersons, Inc. 

	 	 	 	By

[Title]

30

[Form of Series C Note]

The Andersons, Inc. 

6.78% Senior Guaranteed Note, Series C, Due March 27, 2018

	 	 	 
	No. CR-[     ]

$[     ]

	 	March 27, 2008

PPN 034164 A@2

For Value Received, the undersigned, The Andersons, Inc.  (herein called the
“Company”), a corporation organized and existing under the laws of the State of Ohio, hereby
promises to pay to [     ], or registered assigns, the principal sum of
[     ] Dollars (or so much thereof as shall not have been prepaid) on
[     ], 2018, with interest (computed on the basis of a 360-day year of twelve 30-day months)
(a) on the unpaid balance hereof at the rate of 6.78% per annum from the date hereof, payable
semiannually, on the twenty-seventh day of March and September in each year, commencing with the
March 27 or September 27 next succeeding the date hereof, until the principal hereof shall have
become due and payable, and (b) to the extent permitted by law, on any overdue payment of interest
and, during the continuance of an Event of Default, on such unpaid balance and on any overdue
payment of any Make-Whole Amount, at a rate per annum from time to time equal to the greater of
(i) 2.00% over the then current rate of interest of this Note or (ii) 2.00% over the rate of
interest publicly announced by Wells Fargo Bank, N.A. from time to time in New York, New York as
its “base” or “prime” rate, payable semiannually as aforesaid (or, at the option of the registered
holder hereof, on demand).

Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at Wells Fargo Bank, in New York,
New York or at such other place as the Company shall have designated by written notice to the
holder of this Note as provided in the Note Purchase Agreement referred to below.

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Note Purchase Agreement, dated as of March 27, 2008 (as from time to time amended, the “Note
Purchase Agreement”), between the Company and the respective Purchasers named therein and is
entitled to the benefits thereof. Each holder of this Note will be deemed, by its acceptance
hereof, to have (i) agreed to the confidentiality provisions set forth in Section 20 of the Note
Purchase Agreement and (ii) made the representation set forth in Section 6.2 of the Note Purchase
Agreement. Unless otherwise indicated, capitalized terms used in this Note shall have the
respective meanings ascribed to such terms in the Note Purchase Agreement.

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender
of this Note for registration of transfer accompanied by a written instrument of transfer duly
executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a
new Note for a like principal amount will be issued to, and registered in the name of, the
transferee. Prior to due presentment for registration of transfer, the Company may treat the
person in whose name this Note is registered as the owner hereof for the purpose of receiving
payment and for all other purposes, and the Company will not be affected by any notice to the
contrary.

This Note is subject to prepayment, in whole or from time to time in part, at the times and on
the terms specified in the Note Purchase Agreement, but not otherwise.

The payment and performance of this Note is unconditionally guaranteed by the Subsidiary
Guarantors as provided in the Subsidiary Guaranty.

If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Note Purchase Agreement.

This Note shall be construed and enforced in accordance with, and the rights of the Company
and the holder of this Note shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would permit the application of the laws of
a jurisdiction other than such State.

	 	 	 	The Andersons, Inc. 

	 	 	 	By

[Title]

31

Form of Subsidiary Guaranty

[Attached.]

32

Form of Opinion of General Counsel

to the Company and Subsidiary Guarantors

The closing opinion of Naran U. Burchinow, Esq., General Counsel for the Company and the
Subsiidary Guarantors, which is called for by Section 4.4(a) of the Note Purchase Agreement, shall
be dated the date of the Closing and addressed to the Purchasers, shall be satisfactory in scope
and form to the Purchasers and shall be to the effect that:

1. The Company is a corporation, duly organized, validly existing and in good standing
under the laws of the State of Ohio, has the corporate power and the corporate authority to
execute and perform the Note Purchase Agreement and to issue the Notes and has the full
corporate power and the corporate authority to conduct the activities in which it is now
engaged and is duly licensed or qualified and is in good standing as a foreign corporation
in each jurisdiction in which the character of the properties owned or leased by it or the
nature of the business transacted by it makes such licensing or qualification necessary.

2. Each Subsidiary Guarantor is a corporation or limited liability company, duly
incorporated or organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or organization, has the corporate or limited liability
company power and the corporate or limited liability company authority to execute and
perform the Subsidiary Guaranty and has the full corporate or limited liability company
power and the corporate or limited liability company authority to conduct the activities in
which it is now engaged and is duly licensed or qualified and is in good standing as a
foreign corporation or limited liability company in each jurisdiction in which the failure
to so qualify could have a Material Adverse Effect.

3. The Note Purchase Agreement has been duly authorized by all necessary corporate
action on the part of the Company, has been duly executed and delivered by the Company and
constitutes the legal, valid and binding contract of the Company enforceable in accordance
with its terms, subject to bankruptcy, insolvency, fraudulent conveyance and similar laws
affecting creditors’ rights generally, and general principles of equity (regardless of
whether the application of such principles is considered in a proceeding in equity or at
law).

4. The Notes have been duly authorized by all necessary corporate action on the part of
the Company, have been duly executed and delivered by the Company and constitute the legal,
valid and binding obligations of the Company enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent conveyance and similar laws affecting
creditors’ rights generally, and general principles of equity (regardless of whether the
application of such principles is considered in a proceeding in equity or at law).

5. The Subsidiary Guaranty has been duly authorized by all necessary corporate or
limited liability company action on the part of the Subsidiary Guarantor party thereto, has
been duly executed and delivered by such Subsidiary Guarantor, and constitutes the legal,
valid and binding contract of such Subsidiary Guarantor, enforceable in accordance with its
terms, subject to bankruptcy, insolvency, fraudulent conveyance or similar laws affecting
creditors’ rights generally, and general principles of equity (regardless of whether the
application of such principles is considered in a proceeding in equity or at law).

6. No approval, consent or withholding of objection on the part of, or filing,
registration or qualification with, any governmental body, Federal or state, is necessary in
connection with the execution and delivery of the Note Purchase Agreement, the Notes or the
Subsidiary Guaranty.

7. The issuance and sale of the Notes and the execution, delivery and performance by
the Company of the Note Purchase Agreement and the execution, delivery and performance by
each Subsidiary Guarantor of the Subsidiary Guaranty do not (a) conflict with or result in
any breach of any of the provisions of or constitute a default under or result in the
creation or imposition of any Lien upon any of the property of the Company or any Subsidiary
Guarantor pursuant to the provisions of the charter documents or by-laws or operating
agreement, as the case may be, of the Company or any Subsidiary Guarantor or any agreement
or other instrument known to such counsel to which the Company or any Subsidiary Guarantor
is a party or by which the Company or any Subsidiary Guarantor may be bound, (b) conflict
with or result in a breach of any of the terms, conditions or provisions of any order,
judgment, decree or ruling of any court, arbitrator or Governmental Authority applicable to
the Company or any Subsidiary or (c) violate any provision of any statute or other rule or
regulation of any Governmental Authority applicable to the Company or any Subsidiary.

8. There are no proceedings pending, or to the knowledge of such counsel, threatened
against or directly affecting the Company or any Subsidiary Guarantor in any court or before
any governmental authority or arbitration board or tribunal which involve the possibility of
materially and adversely affecting any Subsidiary Guarantor’s ability to perform its
obligations under its Subsidiary Guaranty or the Company’s ability to perform its
obligations under the Note Purchase Agreement or the Notes.

9. The application of the proceeds of the issue and sale of the Notes will not violate
or result in a violation of Regulations U, T and X of the Board of Governors of the Federal
Reserve System.

10. Neither the Company nor any Subsidiary Guarantor is an “investment company” or a
company “controlled” by an “investment company” under the Investment Company Act of 1940, as
amended.

11. The issuance, sale and delivery of the Notes and the Subsidiary Guaranty under the
circumstances contemplated by the Note Purchase Agreement do not, under existing law,
require the registration of the Notes or the Subsidiary Guaranties under the Securities Act
of 1933, as amended, or the qualification of an indenture under the Trust Indenture Act of
1939, as amended.

The opinion of Naran U. Burchinow, Esq. shall cover such other matters relating to the sale of
the Notes as the Purchasers may reasonably request. With respect to matters of fact on which such
opinion is based, such counsel shall be entitled to rely on appropriate certificates of public
officials and officers of the Company and the Subsidiary Guarantors.

33

Form of Opinion of Special Counsel

to The Purchasers

The closing opinion of Chapman and Cutler LLP, special counsel to the Purchasers, called for
by Section 4.4(b) of the Note Purchase Agreement, shall be dated the date of the Closing and
addressed to the Purchasers, shall be satisfactory in form and substance to the Purchasers and
shall be to the effect that:

1. The Note Purchase Agreement constitutes the legal, valid and binding contract of the
Company enforceable in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent conveyance and similar laws affecting creditors’ rights generally, and general
principles of equity (regardless of whether the application of such principles is considered
in a proceeding in equity or at law).

2. The Notes constitute the legal, valid and binding obligations the Company
enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
conveyance and similar laws affecting creditors’ rights generally, and general principles of
equity (regardless of whether the application of such principles is considered in a
proceeding in equity or at law).

3. The issuance, sale and delivery of the Notes under the circumstances contemplated by
the Note Purchase Agreement do not, under existing law, require the registration of the
Notes under the Securities Act of 1933, as amended, or the qualification of an indenture
under the Trust Indenture Act of 1939, as amended.

The opinion of Chapman and Cutler LLP is limited to the laws of the State of New York and the
Federal laws of the United States. With respect to matters of fact upon which such opinion is
based, Chapman and Cutler LLP may rely on appropriate certificates of public officials and officers
of the Company and upon representations of the Company and the Purchasers delivered in connection
with the issuance and sale of the Notes. The opinion of Chapman and Cutler LLP shall provide that
subsequent institutional investors shall be permitted to rely on such opinion as if they were an
original addressee thereto.

34

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