Document:

exv10w4

Exhibit 10.4

AMENDED AND RESTATED CREDIT AGREEMENT

among

NATIONAL COOPERATIVE REFINERY ASSOCIATION,

as Borrower,

VARIOUS LENDERS,

and

COBANK, ACB,

as Administrative Agent and Documentation Agent

Dated as of January 31, 2011

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE 1. DEFINED TERMS
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Rules of Construction
	 	 	16	 
	ARTICLE 2. Loan
	 	 	16	 
	2.1 Loan
	 	 	16	 
	2.2 Available Amount
	 	 	16	 
	2.3 Borrowing Notice
	 	 	17	 
	2.4 Promissory Notes
	 	 	17	 
	2.5 Overnight Advances
	 	 	17	 
	2.6 Lender Records
	 	 	18	 
	2.7 Use of Proceeds
	 	 	18	 
	2.8 Lender Funding Failure
	 	 	18	 
	2.9 Overnight Lender Funding Failure
	 	 	18	 
	2.10 Reduction of Aggregate Revolving Commitment; Voluntary Increases
	 	 	18	 
	2.11 Treatment of Existing Advances
	 	 	20	 
	ARTICLE 3. LETTER OF CREDIT FACILITY
	 	 	20	 
	3.1 Letters of Credit
	 	 	20	 
	3.2 Issuance of Letters of Credit
	 	 	21	 
	3.5 Reimbursement Obligation Unconditional
	 	 	22	 
	3.6 Cash Collateral Account
	 	 	22	 
	ARTICLE 4. INTEREST, FEES AND COSTS
	 	 	23	 
	4.1 Interest
	 	 	23	 
	4.2 Additional Provisions for LIBO Rate
	 	 	23	 
	4.3 Additional Costs of Maintaining Loan
	 	 	25	 
	4.4 Capital Requirements
	 	 	25	 
	4.5 Default Interest Rate
	 	 	26	 
	4.6 Interest Calculation
	 	 	26	 
	4.7 Fees
	 	 	26	 
	ARTICLE 5. PAYMENTS; FUNDING LOSSES
	 	 	27	 
	5.1 Principal Payments
	 	 	27	 
	5.2 Interest Payments
	 	 	27	 
	5.3 Application of Principal Payments
	 	 	27	 
	5.4 Manner of Payment
	 	 	27	 

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	5.5 Voluntary Prepayments
	 	 	27	 
	5.6 Mandatory Prepayments
	 	 	28	 
	5.7 Funding Losses
	 	 	28	 
	5.8 Distribution of Principal and Interest Payments
	 	 	28	 
	ARTICLE 6.CoBank EQUITIES
	 	 	28	 
	6.1 CoBank Equities
	 	 	28	 
	6.2 CoBank Capital Plan
	 	 	29	 
	ARTICLE 7. SECURITY
	 	 	29	 
	7.1 Security Interest
	 	 	29	 
	ARTICLE 8. REPRESENTATIONS AND WARRANTIES
	 	 	29	 
	8.1 Organization, Good Standing, Etc.
	 	 	30	 
	8.2 Corporate Authority, Due Authorization; Consents
	 	 	30	 
	8.3 Litigation
	 	 	30	 
	8.4 No Violations
	 	 	30	 
	8.5 Binding Agreement
	 	 	30	 
	8.6 Compliance with Laws
	 	 	31	 
	8.7 Principal Place of Business
	 	 	31	 
	8.8 Payment of Taxes
	 	 	31	 
	8.9 Licenses and Approvals
	 	 	31	 
	8.10 Employee Benefit Plans
	 	 	31	 
	8.11 Equity Investments
	 	 	32	 
	8.12 Title to Real and Personal Property
	 	 	32	 
	8.13 Financial Statements
	 	 	33	 
	8.14 Environmental Compliance
	 	 	33	 
	8.15 Fiscal Year
	 	 	34	 
	8.16 Material Agreements
	 	 	34	 
	8.17 Regulations U and X
	 	 	34	 
	8.18 Intellectual Property
	 	 	34	 
	8.19 No Default on Outstanding Judgments or Orders
	 	 	34	 
	8.20 No Default in Other Agreements
	 	 	34	 
	8.21 Labor Disputes and Acts of God
	 	 	35	 
	8.22 Governmental Regulation
	 	 	35	 
	8.23 Solvency
	 	 	35	 
	ARTICLE 9. CONDITIONS TO ADVANCES
	 	 	35	 

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	9.1 Conditions to Closing
	 	 	35	 
	9.2 Conditions to Advance
	 	 	37	 
	ARTICLE 10. AFFIRMATIVE COVENANTS
	 	 	38	 
	10.1 Books and Records
	 	 	38	 
	10.2 Reports and Notices
	 	 	38	 
	10.3 Eligibility
	 	 	40	 
	10.4 Maintenance of Existence and Qualification
	 	 	41	 
	10.5 Compliance with Legal Requirements and Agreements
	 	 	41	 
	10.6 Compliance with Environmental Laws
	 	 	41	 
	10.7 Taxes
	 	 	41	 
	10.8 Insurance
	 	 	41	 
	10.9 Maintenance of Properties
	 	 	42	 
	10.10 Payment of Liabilities
	 	 	42	 
	10.11 Inspection
	 	 	42	 
	10.12 Required Licenses; Intellectual Property
	 	 	42	 
	10.13 ERISA
	 	 	42	 
	10.14 Maintenance of Commodity Position
	 	 	43	 
	10.15 Financial Covenants
	 	 	43	 
	ARTICLE 11. NEGATIVE COVENANTS
	 	 	43	 
	11.1 Borrowing
	 	 	43	 
	11.2 No Other Businesses
	 	 	44	 
	11.3 Liens
	 	 	44	 
	11.4 Sale of Assets
	 	 	45	 
	11.5 Liabilities of Others
	 	 	45	 
	11.6 Loans
	 	 	46	 
	11.7 Merger; Acquisitions; Business Form; Etc.
	 	 	46	 
	11.8 Investments
	 	 	46	 
	11.9 Transactions With Related Parties
	 	 	47	 
	11.10 Restricted Payments
	 	 	47	 
	11.11 Change in Fiscal Year
	 	 	47	 
	11.12 ERISA
	 	 	47	 
	11.13 Member Loans
	 	 	48	 
	ARTICLE 12. INDEMNIFICATION
	 	 	49	 
	12.1 General; Stamp Taxes; Intangibles Tax
	 	 	49	 

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	12.2 Indemnification Relating to Hazardous Substances
	 	 	50	 
	ARTICLE 13. EVENTS OF DEFAULT; RIGHTS AND REMEDIES
	 	 	51	 
	13.1 Events of Default
	 	 	51	 
	13.2 No Advance
	 	 	53	 
	13.3 Rights and Remedies
	 	 	53	 
	ARTICLE 14. AGENCY AGREEMENT
	 	 	53	 
	14.1 Funding of Syndication Interest
	 	 	53	 
	14.2 Lenders’ Obligations to Remit Funds
	 	 	54	 
	14.3 Lender’s Failure to Remit Funds
	 	 	54	 
	14.4 Agency Appointment
	 	 	55	 
	14.5 Power and Authority of the Administrative Agent
	 	 	55	 
	14.6 Duties of the Administrative Agent
	 	 	56	 
	14.7 Indemnification as Condition to Action
	 	 	57	 
	14.8 Consent Required for Certain Actions
	 	 	57	 
	14.9 Distribution of Principal and Interest
	 	 	59	 
	14.10 Distribution of Certain Amounts
	 	 	59	 
	14.11 Possession of Loan Documents
	 	 	59	 
	14.12 Collateral Application
	 	 	59	 
	14.13 Amounts Required to be Returned
	 	 	60	 
	14.14 Reports and Information to Lenders
	 	 	60	 
	14.15 Standard of Care
	 	 	60	 
	14.16 No Trust Relationship
	 	 	60	 
	14.17 Sharing of Costs and Expenses
	 	 	61	 
	14.18 Lenders’ Indemnification of the Administrative Agent
	 	 	61	 
	14.19 Books and Records
	 	 	61	 
	14.20 Administrative Agent Fee
	 	 	62	 
	14.21 The Administrative Agent’s Resignation or Removal
	 	 	62	 
	14.22 Representations and Warranties of All Parties
	 	 	62	 
	14.23 Lenders’ Independent Credit Analysis
	 	 	63	 
	14.24 No Joint Venture or Partnership
	 	 	63	 
	14.25 Purchase for Own Account; Restrictions on Transfer; Participations
	 	 	63	 
	14.26 Certain Participants’ Voting Rights
	 	 	64	 
	14.27 Method of Making Payments
	 	 	64	 
	14.28 Replacement of Non-Consenting Lenders and Delinquent Lenders
	 	 	65	 

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	14.29 Withholding Taxes
	 	 	65	 
	14.30 Amendments Concerning Agency Function
	 	 	67	 
	14.31 Further Assurances
	 	 	67	 
	ARTICLE 15. MISCELLANEOUS
	 	 	67	 
	15.1 Costs and Expenses
	 	 	67	 
	15.2 Service of Process and Consent to Jurisdiction
	 	 	67	 
	15.3 Jury Waiver
	 	 	68	 
	15.4 Notices
	 	 	68	 
	15.5 Liability of Administrative Agent
	 	 	68	 
	15.6 Successors and Assigns
	 	 	69	 
	15.7 Severability
	 	 	69	 
	15.8 Entire Agreement
	 	 	69	 
	15.9 Applicable Law
	 	 	69	 
	15.10 Captions
	 	 	69	 
	15.11 Amendments
	 	 	69	 
	15.12 Replacement Notes
	 	 	69	 
	15.13 Liberal Construction
	 	 	70	 
	15.14 Counterparts
	 	 	70	 
	15.15 Confidentiality
	 	 	70	 
	15.16 Prior Credit Agreement
	 	 	70	 
	15.17 Release
	 	 	70	 

v

 

EXHIBITS

	 	 	 

	Exhibit 1.21

	 	Form of Compliance Certificate
	 
	 	 
	Exhibit 1.76

	 	Subsidiaries
	 
	 	 
	Exhibit 2.3

	 	Form of Borrowing Notice
	 
	 	 
	Exhibit 2.4

	 	Form of Note
	 
	 	 
	Exhibit 8.3

	 	Litigation
	 
	 	 
	Exhibit 8.9

	 	Required Licenses
	 
	 	 
	Exhibit 8.10

	 	Employee Benefit Plans
	 
	 	 
	Exhibit 8.11

	 	Equity Investments
	 
	 	 
	Exhibit 8.18

	 	Intellectual Property
	 
	 	 
	Exhibit 11.1

	 	Existing Indebtedness
	 
	 	 
	Exhibit 11.3

	 	Existing Liens
	 
	 	 
	Exhibit 11.8

	 	Existing Investments
	 
	 	 
	Exhibit 11.13(b)

	 	Member Loan Documentation
	 
	 	 
	Exhibit 14.25

	 	Assignment and Assumption
	 
	 	 
	Exhibit 14.27

	 	Wire Instructions
	 
	 	 
	Schedule 1

	 	Individual Commitments

vi

 

     THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Credit Agreement”) is entered into as of the
31st day of January, 2011, by and among NATIONAL COOPERATIVE REFINERY ASSOCIATION, a cooperative
marketing association formed under the laws of the State of Kansas (“Borrower”), the several banks
and other financial institutions from time to time party hereto as lenders (the “Lenders”), and
COBANK, ACB, a federally chartered banking organization, in its capacity as administrative agent
for the Lenders (in such capacity, the “Administrative Agent”).

     Borrower, certain financial institutions from time to time party thereto as lenders, and the
Administrative Agent are parties to a 2003 Amended and Restated Credit Agreement (2-Year Revolving
Loan) dated as of December 16, 2003 (as amended, restated, supplemented or otherwise modified to
date, the “Prior Credit Agreement”).

     Borrower and, subject to the terms and conditions set forth herein, the Administrative Agent
and the Lenders now desire to amend and restate the Prior Credit Agreement in its entirety.

     ACCORDINGLY, in consideration of the premises and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

ARTICLE 1. DEFINED TERMS

     1.1 Definitions. As used herein:

     “Additional Costs” has the meaning set forth in Section 4.3.

     “Administrative Agent’s Office” means that address set forth for the Administrative
Agent in Section 15.4 as it may change from time to time by notice to all parties to this
Credit Agreement.

     “Advance” means a loan of funds by a Lender to Borrower under the Facility.

     “Advance Date” means a day (which shall be a Banking Day) on which an Advance is made.

     “Advance Payment” has the meaning set forth in Section 14.1.

     “Affiliate” means, with respect to Borrower, (a) a Subsidiary of Borrower and (b) any
Person which, directly or indirectly, owns more than fifty percent (50%) of the outstanding
stock or other equity interests of Borrower or has the power to elect at least a majority of
the directors of Borrower; provided, however, that in no event shall any of
Jayhawk Pipeline, L.L.C., Osage Pipe Line Company or Kaw Pipe Line Company be deemed an
Affiliate of Borrower for purposes of this Credit Agreement and the other Loan Documents.

     “Aggregate LC Commitment” means $15,000,000, unless the same shall be adjusted in
accordance with Section 2.10.

 

     “Aggregate Revolving Commitment” means $15,000,000, unless the same shall be adjusted
in accordance with Section 2.10.

     “Applicable Lending Office” means, for each Lender, the lending office of such Lender
designated on Schedule 1 hereto or in the applicable Assignment and Assumption, or such
other office as such Lender may from time to time specify to the Administrative Agent and
Borrower as the office by which its Advances are to be made and maintained.

     “Assignment and Assumption” means an assignment and assumption entered into by a Lender
and an assignee of that Lender’s interest, in substantially the form of Exhibit 14.25 or any
other form approved by the Administrative Agent.

     “Authorized Officer” has the meaning set forth in Section 9.1(d).

     “Availability Period” means the period commencing on the Closing Date and expiring on
the Maturity Date.

     “Available Amount” means the amount at any time by which the Aggregate Revolving
Commitment exceeds the sum of (a) the aggregate principal amount outstanding under the
Facility (including, without duplication, the amount of all outstanding Overnight Advances),
plus (b) the amount of all Committed Advances, plus (c) the undrawn face amount of all
outstanding Letters of Credit.

     “Banking Day” means any day (a) other than a Saturday or Sunday and other than a day
which is a Federal legal holiday or a legal holiday for banks in the States of Colorado or
Kansas, and (b) if such day relates to a borrowing of, a payment or prepayment of principal
of or interest on, a continuation of or conversion into, or a LIBO Rate Period for, a LIBO
Rate Loan, or a notice by Borrower with respect to any such borrowing, payment, prepayment,
continuation, conversion, or LIBO Rate Period, any day other than a day on which dealings in
U.S. dollar deposits are carried on in the London interbank eurodollar market.

     “Banking Services Obligations” means each and every debt, liability and other
obligation (whether direct or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising) of every type and description owing by Borrower or any
Subsidiary to any Person that was a Lender or an affiliate of a Lender when such debt,
liability or obligation arose, with respect to (a) credit cards, (b) credit card processing
services, (c) debit cards, (d) purchase cards, (e) treasury and cash management or related
services (including controlled disbursement, automated clearinghouse transactions, return
items, overdrafts and interstate depository network services), and (f) any agreement
providing for an swap, cap, cap and floor, contingent participation or other hedging
mechanisms relating to fluctuations in commodity prices, currency values or interest rates.

     “Base Rate” means a rate per annum announced by the Administrative Agent on the first
Banking Day of each week, which shall be the sum of (a) the highest of (i) 225 basis points
greater than the higher of the one week or one month LIBO Rate, (ii) the

2

 

Federal Funds Rate plus 50 basis points or (iii) the Prime Rate, and (b) 75 basis
points; provided, however, if no LIBO Rate can be determined or if, in the Administrative
Agent’s discretion, a reasonable basis for a LIBO Rate does not exist (including without
limitation as a result of the circumstances described in Section 4.2 hereof), then “Base
Rate” shall mean a rate per annum equal to the sum of (x) 75 basis points plus (y) the
higher of (i) the Federal Fund Rate plus 50 basis points or (ii) the Prime Rate.

     “Base Rate Advance” means any Advance that bears interest at a rate determined by
reference to the Base Rate.

     “Base Rate LIBO Alternative” means, within the definition of Base Rate, the application
of the one week or one month LIBO Rate under clause (a)(i) thereof.

     “Base Rate Loan” means any Loan that bears interest at a rate determined by reference
to the Base Rate, including Base Rate Advances.

     “Bonds” means the Taxable Industrial Revenue Bonds Series 2006 (National Cooperative
Refinery Association) in the original principal amount of $325,000,000 (with a current
principal balance of $1,000,000) issued by the City of McPherson, Kansas, pursuant to that
certain Trust Indenture between the City of McPherson, Kansas, as issuer, and Security Bank
of Kansas City, as trustee.

     “Borrower Benefit Plan” means (a) any funded “employee welfare benefit plan,” as that
term is defined in Section 3(1) of ERISA; (b) any “multiemployer plan,” as defined in
Section 3(37) of ERISA; (c) any “employee pension benefit plan” as defined in Section 3(2)
of ERISA; (d) any “employee benefit plan”, as such term is defined in Section 3(3) of ERISA;
(e) any “multiple employer plan” within the meaning of Section 413 of the Code; (f) any
“multiple employer welfare arrangement” within the meaning of Section 3(40) of ERISA; (g)
any “voluntary employees’ beneficiary association” within the meaning of Section 501(c)(9)
of the Code; (h) any “welfare benefit fund” within the meaning of Section 419 of the Code;
or (i) any employee welfare benefit plan within the meaning of Section 3(1) of ERISA for the
benefit of retired or former employees; which, in each case, is maintained by Borrower or
any of its Subsidiaries or ERISA Affiliates or in which Borrower or any of its Subsidiaries
or ERISA Affiliates participates or to which Borrower or any of its Subsidiaries or ERISA
Affiliates is obligated to contribute.

     “Borrower Pension Plan” means each Borrower Benefit Plan that is an “employee pension
benefit plan” as defined in Section 3(2) of ERISA that is intended to satisfy the
requirements of Section 401(a) of the Code.

     “Borrowing” means a borrowing by Borrower under the Facility, consisting of the
aggregate of all Advances made by the Lenders to Borrower pursuant to a Borrowing Notice.

     “Borrowing Notice” has the meaning set forth in Section 2.3.

     “Business Plan” has the meaning set forth in Section 10.2(k).

3

 

     “Capital Leases” means any lease of property (whether real, personal or mixed) by a
Person which has been or should be, in accordance with GAAP, reflected on the balance sheet
of such Person as a capital lease.

     “Cash Collateral Account” has the meaning set forth in Section 3.6.

     “Change in Law” means the occurrence, after the Closing Date, of any of the following:
(a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change in
any law, rule, regulation or treaty or in the administration, interpretation or application
thereof by any Governmental Authority or (c) the making or issuance of any request,
guideline or directive (whether or not having the force of law) by any Governmental
Authority; provided, however, for purposes of this Credit Agreement and the other Loan
Documents and to the extent permitted by applicable laws, the Dodd-Frank Wall Street Reform
and Consumer Protection Act and all requests, guidelines or directives in connection
therewith are deemed to have gone into effect and adopted after the Closing Date.

     “Closing Date” means the date hereof.

     “CoBank” means CoBank, ACB.

     “CoBank Equities” has the meaning set forth in Section 6.1.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Commitment Fee” has the meaning set forth in Section 4.7(a).

     “Commitment Fee Factor” means 37.5 basis points per annum.

     “Committed Advances” means the aggregate principal amount of all Advances which any
Lender is obligated to make as a result of (a) such Lender having received a Funding Notice
pursuant to Section 2.3 hereof, or (b) if such Lender is the Overnight Lender, Borrower
having made an Overnight Advance Request pursuant to Section 2.5 hereof, but which, in
either case, has not been funded.

     “Compliance Certificate” a certificate of the Vice President of Finance or corporate
treasurer of Borrower in the form attached hereto as Exhibit 1.21.

     “Contributing Lenders” has the meaning set forth in Section 14.3.

     “Covenant Compliance Date” means the last day of each Fiscal Quarter.

     “Covenant Computation Period” means the four consecutive Fiscal Quarters immediately
preceding and ending on a Covenant Compliance Date.

     “Default” means any event that, with giving of notice or lapse of time or both, would
constitute an Event of Default.

4

 

     “Default Interest Rate” means a rate of interest equal to 200 basis points in excess of
the interest rate otherwise in effect with respect to the Loans.

     “Delinquency Interest” has the meaning set forth in Section 14.3.

     “Delinquent Amount” has the meaning set forth in Section 14.3.

     “Delinquent Lender” means any Lender, as determined by the Administrative Agent, that
(a) has failed to make an Advance or fund its participation in any Overnight Advance within
one Banking Day of the date by which it is required to do so hereunder, (b) has otherwise
failed to pay to the Administrative Agent or any other Lender any other amount required to
be paid by it hereunder within one Banking Day of the date by which it is required to do so
hereunder, except to the extent that such amount is the subject of a good faith dispute, (c)
has notified the Administrative Agent, Borrower or any other Lender that it does not intend
to comply with one or more obligations under this Agreement, (d) has made a public statement
to the effect that it does not intend to or will be unable to comply with its funding
obligations generally under agreements in which it commits to extend credit, or (e) has
become insolvent or has become the subject of a bankruptcy, insolvency or similar
proceeding, or has had a receiver, conservator, trustee, custodian or similar official
appointed for it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment, or has a parent company
that has become insolvent or has become the subject of a bankruptcy, insolvency or similar
proceeding, or has had a receiver, conservator, trustee, custodian or similar official
appointed for it, or has taken any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment; provided that a
Lender shall not be a Delinquent Lender solely by virtue of the ownership or acquisition of
any ownership interest in such Lender or a parent company thereof or the exercise of control
over a Lender or Person controlling such Lender by a Governmental Authority or an
instrumentality thereof.

     “EBIT” means, for any period, the Net Income of Borrower plus the sum of (a) Interest
Expense, plus (b) federal and state income taxes, plus (c) extraordinary
losses, minus (d) extraordinary gains, and minus (e) non-cash patronage
income; in each case, to the extent deducted from (or added to, as the case may be) revenues
to arrive at net income for such period, all as determined by GAAP.

     “EBITDA” means, for any period, the Net Income of Borrower plus the sum of (a) Interest
Expense, plus (b) federal and state income taxes, plus (c) extraordinary
losses, plus (d) depreciation and amortization expenses, minus (e)
extraordinary gains, and minus (f) non-cash patronage income; in each case, to the
extent in each case deducted from (or added to, as the case may be) revenues to arrive at
net income for such period, all as determined by GAAP.

     “Environmental Laws” means any federal, state or local law, statute, ordinance, rule,
regulation, administration order or permit now in effect or hereinafter enacted, pertaining
to the public health, safety, industrial hygiene, emissions, discharges, releases of
pollutants, contaminants, hazardous or toxic materials, or wastes into ambient air,

5

 

surface water, ground water or land, or otherwise relating to the manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of
pollutants, contaminants or hazardous or toxic materials or wastes, or other environmental
conditions on, under, about or otherwise with respect to any of Borrower’s property,
including, without limitation, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 as amended, 42 U.S.C. 9601-9657 and the Resource Conservation and
Recovery Act of 1976, 42 U.S.C. 6901-6987.

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

     “ERISA Affiliate” means any corporation or trade or business which is a member of the
same controlled group of corporations (within the meaning of Section 414(b) of the Code) as
Borrower or is under common control (within the meaning of Section 414(c) of the Code) with
Borrower, provided, however, that for purposes of provisions herein concerning minimum
funding obligations (imposed under Section 412 of the Code or Section 302 of ERISA), the
term “ERISA Affiliate” shall also include any entity required to be aggregated with Borrower
under Section 414(m) or 414(o) of the Code.

     “Event of Default” has the meaning set forth in Section 13.1.

     “Excess Working Capital” means the amount of Borrower’s Working Capital in excess of
$20,000,000.

     “Excluded Taxes” means, with respect to any Lender or any other recipient of any
payment to be made by or on account of any obligation of Borrower hereunder, (a) taxes
imposed on or measured by its overall net income (however denominated), and franchise taxes
imposed on it (in lieu of net income taxes), by the jurisdiction (or any political
subdivision thereof) under the laws of which such recipient is organized or in which its
principal office is located or in which its applicable lending office is located, (b) any
branch profits taxes imposed by the United States of America or any similar tax imposed by
any other jurisdiction in which Borrower is located and (c) in the case of a Foreign Lender,
any withholding tax that is imposed on amounts payable to such Foreign Lender at the time
such Foreign Lender becomes a party hereto (or designates a new lending office) or is
attributable to such Foreign Lender’s failure or inability (other than as a result of a
Change in Law) to comply with Section 14.29(q), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a new lending
office (or assignment), to receive additional amounts from Borrower with respect to such
withholding tax pursuant to Section 14.29(m).

     “Facility” means the revolving credit facility being made available to Borrower by the
Lenders pursuant to Articles 2 and 3, under which Advances are made and Letters of Credit
are issued.

     “Farm Credit Lender” means a lending institution organized and existing pursuant to the
provisions of the Farm Credit Act of 1971 and under the regulation of the Farm Credit
Administration.

6

 

     “Federal Funds Rate” means, for any day, the rate set forth in the weekly statistical
release designated as H.15(519), or any successor publication, published by the Federal
Reserve Bank of New York (including any such successor publication, “H.15(519)”) on the
preceding Banking Day opposite the caption “Federal Funds (Effective)”; or, if for any
relevant day such rate is not so published on such preceding Banking Day, the rate for such
day will be the arithmetic mean as determined by the Administrative Agent of the rates for
the last transaction in overnight federal funds arranged prior to 9:00 a.m. (New York City
time) on that day by each of the three leading brokers of federal funds transactions in New
York City, as selected by the Administrative Agent in its discretion.

     “Fee Letter” means one or more separate agreements between Borrower and the
Administrative Agent, setting forth certain fees to be paid by Borrower to the
Administrative Agent for the Administrative Agent’s own account or for the account of the
Lenders, as more fully set forth therein.

     “Fiscal Quarter” means the three-month period beginning on the first day of each of the
following months: September, December, March and June.

     “Fiscal Year” means a year commencing on September 1 and ending on August 31.

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than the United States of America, any state thereof or the District of Columbia.

     “Funded Debt” means, for any period, without duplication, all of the following
indebtedness of Borrower: (a) the current portion of all long term debt; (b) all long term
debt; (c) all obligations under Capital Leases; (d) obligations under the Facility; and (e)
all reimbursement obligations under all issued and outstanding Letters of Credit, and
including any of the foregoing created or assumed by such Person either directly or
indirectly, including obligations secured by Liens upon property of such Person and upon
which such Person customarily pays the interest.

     “Funding Loss Notice” has the meaning set forth in Section 5.7.

     “Funding Losses” has the meaning set forth in Section 5.7.

     “Funding Notice” has the meaning set forth in Section 2.3.

     “Funding Share” means the amount of any Advance which any Lender is required to fund,
which shall be determined as follows: (a) the principal amount of a Borrowing requested by
Borrower under a Borrowing Notice multiplied by such Lender’s Individual Pro Rata Share as
of, but without giving effect to, such Advance; and (b) for an Overnight Advance, the amount
determined as provided in Section 2.5 hereof.

     “GAAP” means generally accepted accounting principles as in effect on the Closing Date
and applied on a basis consistent with the accounting practices applied in

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the financial statements of Borrower referred to in Section 8.13, except for any change
in accounting practices to the extent that, due to a promulgation of the Financial
Accounting Standards Board changing or implementing any new accounting standard, Borrower
either (a) is required to implement such change, or (b) for future periods will be required
to and for the current period may in accordance with generally accepted accounting
principles implement such change, for its financial statements to be in conformity with
generally accepted accounting principles (any such change is hereinafter referred to as a
“Required GAAP Change”), provided that (x) Borrower shall fully disclose in such financial
statements any such Required GAAP Change and the effects of the Required GAAP Change on
Borrower’s income, retained earnings or other accounts, as applicable, and (y) the financial
covenants set forth in Section 10.15 shall be adjusted as necessary to reflect the effects
of such Required GAAP Change, provided that if the Required Lenders and Borrower cannot
agree on such adjustments, the financial covenants set forth in Section 10.15 will be
calculated without giving effect to the Required GAAP Change.

     “Good Faith Contest” means the contest of an item if (a) the item is diligently
contested in good faith by appropriate proceedings timely instituted, (b) either the item is
(i) bonded or (ii) adequate reserves are established with respect to the contested item if
and to the extent required in accordance with GAAP, (c) during the period of such contest,
the enforcement of any contested item is effectively stayed, and (d) the failure to pay or
comply with the contested item could not reasonably be expected to result in a Material
Adverse Effect.

     “Governmental Authority” means any nation or government, or any political subdivision
thereof, whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to government
(including any supra-national bodies such as the European Union or the European Central
Bank).

     “Hazardous Substances” means dangerous, toxic or hazardous pollutants, contaminants,
chemicals, wastes, materials or substances, as defined in or governed by the provisions of
any Environmental Laws or any other federal, state or local law, statute, code, ordinance,
regulation, requirement or rule relating thereto (“Environmental Regulations”), including
but not limited to urea formaldehyde, polychlorinated biphenyls, asbestos,
asbestos-containing materials, nuclear fuel or waste, and petroleum products, or any other
waste, material, substances, pollutant or contaminant which would subject an owner of
property to any damages, penalties or liabilities under any applicable Environmental
Regulations.

     “Indebtedness” means, as to any Person: (a) indebtedness or liability of such Person
for borrowed money, or for the deferred purchase price of property or services (including
trade obligations); (b) all obligations of such Person evidenced by bonds, debentures, notes
or other similar instruments; (c) obligations of such Person as lessee under Capital Leases;
(d) obligations of such Person arising under bankers’ or trade acceptance facilities; (e)
all guarantees, endorsements (other than for collection or deposit in the ordinary course of
business), and other contingent obligations of such Person to

8

 

purchase any of the items included in this definition, to provide funds for payment, to
supply funds to invest in any other Person, or otherwise to assure a creditor of another
Person against loss; (f) all obligations secured by a Lien on property owned by such Person,
whether or not the obligations have been assumed; (g) all obligations of such Person under
any agreement providing for swap, cap, cap and floor, contingent participation or other
hedging mechanisms relating to fluctuations in commodity prices, currency values or interest
rates; (h) all obligations, contingent or otherwise, with respect to the face amount of
letters of credit (whether or not drawn) and bankers’ acceptances issued for the account of
such Person; (i) all redeemable capital stock of such Person; and (j) all obligations of
such Person to advance funds to, or purchase assets, property or services from, any other
Person in order to maintain the financial condition of such Person.

     “Indemnified Agency Parties” has the meaning set forth in Section 14.18.

     “Indemnified Parties” has the meaning set forth in Section 12.1.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Individual Commitment” means, with respect to any Lender, the amount shown as its
Individual Commitment on Schedule 1 hereto, subject to adjustment in the event of the sale
of all or a portion of a Syndication Interest in accordance with Section 14.25 hereof.

     “Individual Lending Capacity” means, with respect to any Lender, the amount at any time
of its Individual Commitment less its Individual Outstanding Obligations.

     “Individual Outstanding Obligations” means, with respect to any Lender, the sum of (a)
the aggregate outstanding principal amount of all Advances made by such Lender (including,
without duplication, Overnight Advances made by such Lender in its capacity as an Overnight
Lender); plus (b) the amount determined by multiplying (i) such Lender’s Individual
Pro Rata Share times (ii) the undrawn face amount of all outstanding Letters of Credit; plus
(c) all of such Lender’s Committed Advances.

     “Individual Pro Rata Share” means, with respect to any Lender, a fraction, expressed as
a percentage (rounded to 9 decimal points), where the numerator is such Lender’s Individual
Commitment less such Lender’s Individual Outstanding Obligations; and the denominator is the
Aggregate Revolving Commitment less the sum of the Individual Outstanding Obligations of all
of the Lenders, determined (a) in the case of LIBO Rate Loans, at 12:00 noon (Eastern time)
on the Banking Day Borrower delivers a Borrowing Notice pursuant to which Borrower requests
such LIBOR Loan, and (b) in all other cases, 12:00 noon (Eastern time) on the Banking Day
Borrower delivers a Borrowing Notice or requests a Letter of Credit.

     “Intellectual Property” has the meaning set forth in Section 8.18.

9

 

     “Interest Coverage Ratio” means, as of any Covenant Compliance Date, the ratio of (i)
EBIT to (ii) Interest Expense, in each case during the Covenant Computation Period ending on
such date.

     “Interest Expense” means, for any period, all cash paid, accrued, and capitalized for
fees and interest expense on all Funded Debt of Borrower as measured in accordance with
GAAP.

     “Investment” means, with respect to any Person, (a) any loan or advance by such Person
to any other Person, (b) the purchase or other acquisition by such Person of any capital
stock, obligations or securities of, or any capital contribution to, or investment in, or
the acquisition by such Person of all or substantially all of the assets of, or any interest
in, any other Person, (c) any performance or standby letter of credit where (i) that Person
has the reimbursement obligation to the issuer, and (ii) the proceeds of such letter of
credit are to be used for the benefit of any other Person, (d) the agreement by such Person
to make funds available for the benefit of another Person to either cover cost overruns
incurred in connection with the construction of a project or facility, or to fund a debt
service reserve account, (e) the agreement by such Person to assume, guarantee, endorse or
otherwise be or become directly or contingently responsible or liable for the obligations or
debts of any other Person (other than by endorsement for collection in the ordinary course
of business), (f) an agreement to purchase any obligations, stocks, assets, goods or
services but excluding an agreement to purchase any assets, goods or services entered into
in the ordinary course of business, (g) an agreement to supply or advance any funds, assets,
goods or services, or (h) an agreement to maintain or cause such Person to maintain a
minimum working capital or net worth or otherwise to assure the creditors of any Person
against loss.

     “Issuance Fee” means an amount equal to 0.125% of the face amount of the Letter of
Credit.

     “LC Request” has the meaning set forth in Section 3.1(a).

     “Lender” means each of the Persons listed on Schedule 1 hereto as having an Individual
Commitment, and each of such additional Persons as shall from time to time execute an
Assignment and Assumption substantially in the form of Exhibit 14.25 hereto signifying its
election to purchase all or a portion of the Syndication Interest of any Lender, in
accordance with Section 14.25 hereof, and to become a Lender hereunder.

     “Lender Advance Date” has the meaning set forth in Section 14.2.

     “Letter of Credit” has the meaning set forth in Section 3.1.

     “Letter of Credit Bank” means CoBank, ACB.

     “Letter of Credit Fee” means a fee equal to 225 basis points multiplied by the face
amount of the Letter of Credit.

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     “LIBO Rate” means the rate obtained by dividing (a)(i) with respect to a LIBO Rate
Period applicable to a LIBO Rate Loan, the rate per annum determined by the Administrative
Agent as of approximately 11:00 a.m. London time on the date two Banking Days before the
commencement of such LIBO Rate Period by reference to the British Bankers’ Association
Interest Settlement Rates for deposits in dollars offered on the London interbank dollar
market for a period corresponding to the term of such LIBO Rate Period and in an amount
comparable to the aggregate amount of the relevant LIBO Rate Loan (as displayed in the
Bloomberg Financial Markets system or any successor thereto or any other service selected by
the Administrative Agent that has been nominated by the British Bankers’ Association as an
authorized information vendor for the purpose of displaying such rates), (ii) with respect
to a Base Rate Loan, the rate per annum determined by the Administrative Agent as of
approximately 11:00 a.m. London time on the first Banking Day of each calendar week by
reference to the British Bankers’ Association Interest Settlement Rates for deposits in
dollars offered on the London interbank dollar market for a one-week or one-month period, as
applicable, and in an amount comparable to the aggregate amount of the relevant Base Rate
Loan (as displayed in the Bloomberg Financial Markets system or any successor thereto or any
other service selected by the Administrative Agent that has been nominated by the British
Bankers’ Association as an authorized information vendor for the purpose of displaying such
rates), or (iii) if such rate cannot be determined, the rate per annum equal to the rate
determined by the Administrative Agent to be a rate at which U.S. dollar deposits are
offered to major banks in the London interbank eurodollar market for funds to be made
available on the first day of such LIBO Rate Period and maturing at the end of such LIBO
Rate Period, in each case rounded upwards, if necessary, to the nearest 1/100 of 1%; by (b)
a percentage equal to 1.00 minus the applicable percentage (expressed as a decimal)
prescribed by the Board of Governors of the Federal Reserve System (or any successor
thereto) for determining the maximum reserve requirements applicable to eurodollar fundings
(currently referred to as “Eurocurrency Liabilities” in Regulation D) or any other maximum
reserve requirements applicable to a member bank of the Federal Reserve System with respect
to such eurodollar fundings.

     “LIBO Rate Advance” means any Advance (excluding any Base Rate Advance) that bears
interest at a rate per annum equal to the LIBO Rate plus the LIBOR Margin.

     “LIBO Rate Loan” means any Loan (excluding any Base Rate Loan) that bears interest at a
rate per annum equal to the LIBO Rate plus the LIBOR Margin.

     “LIBO Rate Period” means, relative to any LIBO Rate Loan, the period beginning on (and
including) the date on which such LIBO Rate Loan is made, or continued as, or converted
into, a LIBO Rate Loan pursuant to Section 4.1(b) and shall end on (but exclude) the day
that numerically corresponds to such date 1, 2, 3 or 6 months thereafter (or, if such month
has no numerically corresponding day, on the last Banking Day of such month), as Borrower
may select in its relevant Borrowing Notice or LIBO Request; provided, however, that:

     (a) no more than five different LIBO Rate Periods may be outstanding at any one
time;

11

 

     (b) if a LIBO Rate Period would otherwise end on a day that is not a Banking
Day, such LIBO Rate Period shall end on the next following Banking Day (unless such
next following Banking Day is the first Banking Day of a month, in which case such
LIBO Rate Period shall end on the next preceding Banking Day); and

     (c) no LIBO Rate Period applicable to a Loan may end later than the Maturity
Date.

     “LIBO Request” has the meaning set forth in Section 4.1(b).

     “LIBOR Margin” means 225 basis points per annum.

     “Licensing Laws” has the meaning set forth in Section 8.4.

     “Lien” means any mortgage, deed of trust, pledge, security interest, hypothecation,
assignment for security purposes, encumbrance, lien (statutory or other), or other security
agreement or charge, or encumbrance of any kind or nature whatsoever (including, without
limitation, any conditional sale, Capital Lease or other title retention agreement related
to such asset).

     “Loan” or “Loans” means the loan or loans represented by Advances (including Overnight
Advances) made under the Facility pursuant to this Credit Agreement.

     “Loan Documents” means this Credit Agreement, the Notes and the Fee Letter.

     “Material Adverse Effect” means, with respect to any event or circumstance, a material
adverse effect on (a) the business, financial condition, operations, property or prospects
of Borrower; (b) the ability of Borrower to perform its obligations under any Loan Document
to which it is a party; or (c) the validity, enforceability or collectibility of any Loan
Document. In determining whether any individual event or circumstance could reasonably be
expected to have a Material Adverse Effect, notwithstanding that such event or circumstance
does not of itself have such effect, a Material Adverse Effect shall be deemed to have
occurred if the cumulative effect of such event or circumstance and all other then-existing
events and circumstances could reasonably be expected to have a Material Adverse Effect.

     “Material Agreement” means each agreement of Borrower, the termination or breach of
which, based upon Borrower’s knowledge as of the date of making any representation with
respect thereto, would have a Material Adverse Effect.

     “Maturity Date” means December 16, 2011.

     “Member” means each of the following Persons: CHS, Inc., Growmark, Inc. and MFA Oil
Company.

     “Member Loans” means loans made from time to time by Borrower to a Member which meet
the requirements and limits contained in Section 11.13 hereof.

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     “Member Percentage” means (a) with respect to CHS, Inc., 74.429%, (b) with respect to
Growmark, Inc., 18.616%, and (c) with respect to MFA Oil Company, 6.955%.

     “Multiemployer Plan” means a multiemployer plan (as defined in section 4001(a)(3) of
ERISA) to which Borrower or any ERISA Affiliate contributes or is obligated to contribute.

     “Net Income” means, for any period, the net after tax income (or loss) attributable to
Borrower for such period determined in accordance with GAAP; provided that there shall be
excluded from such calculation any extraordinary gains or extraordinary losses.

     “Net Worth” means the total assets of Borrower (as determined in accordance with GAAP)
minus the total liabilities of Borrower (as determined in accordance with GAAP).

     “Non-Consenting Lender” has the meaning set forth in Section 14.28.

     “Note” or “Notes” has the meaning set forth in Section 2.4.

     “Obligations” means (a) each and every debt, liability and other obligation of every
type and description arising under or in connection with any of the Loan Documents which
Borrower may now or at any time hereafter owe to any Lender, the Overnight Lender or the
Administrative Agent, whether such debt, liability or obligation now exists or is hereafter
created or incurred, whether it is direct or indirect, due or to become due, absolute or
contingent, primary or secondary, liquidated or unliquidated, or sole, joint, several or
joint and several, and including specifically (but not limited to) due and owing to a Lender
from Borrower, all indebtedness, liabilities and obligations of Borrower arising under or
evidenced by the Notes and Borrower’s obligations to purchase CoBank Equities and (b)
Banking Services Obligations.

     “Operating Lease” means any lease of property (whether real, personal or mixed) by a
Person under which such Person is lessee, other than a Capital Lease.

     “Organization Documents” means (a) with respect to any corporation, the articles or
certificate of incorporation and bylaws of such corporation, (b) with respect to any
partnership, the partnership agreement and certificate of limited partnership, if
applicable, of such partnership, (c) with respect to any limited liability company, the
articles of organization and operating agreement of such company, and (d) with respect to
any entity, any and all other shareholder, partner or member control agreements and similar
organizational documents relating to such entity.

     “Other Taxes” means all present or future stamp or documentary taxes or any other
excise or property taxes, charges or similar levies arising from any payment made hereunder
or under any other Loan Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Loan Document.

13

 

     “Overnight Advance” has the meaning set forth in Section 2.5.

     “Overnight Advance Request” has the meaning set forth in Section 2.5.

     “Overnight Funding Commitment” means $5,000,000.

     “Overnight Lender” means CoBank, ACB.

     “Overnight Maturity Date” has the meaning set forth in Section 2.5.

     “Overnight Rate” has the meaning set forth in Section 2.5.

     “Patronage Refunds” means the “Patronage Refunds” as so identified, and as determined
from time to time, by a resolution of Borrower’s Board of Directors pursuant to the
provisions and limitations of Borrower’s Organization Documents.

     “Payment Account” has the meaning set forth in Section 14.9.

     “Payment Distribution” has the meaning set forth in Section 14.9.

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “Percentage” means, with respect to any Lender, the ratio of the Individual Commitment
of such Lender to the Aggregate Revolving Commitment.

     “Permitted Encumbrances” has the meaning set forth in Section 8.12.

     “Person” means any individual, sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability company,
cooperative association, institution, or government or governmental agency (whether
national, federal, state, provincial, country, city, municipal or otherwise, including
without limitation, and instrumentality, division, agency, body or department thereof), or
other entity.

     “Prime Rate” means a rate of interest per annum equal to the “prime rate” as published
from time to time in the Eastern Edition of the Wall Street Journal as the average prime
lending rate for seventy-five percent (75%) of the United States’ thirty (30) largest
commercial banks, or if the Wall Street Journal shall cease publication or cease publishing
the ‘prime rate” on a regular basis, such other regularly published average prime rate
applicable to such commercial banks as is acceptable to the Administrative Agent in its
reasonable discretion.

     “Prior Credit Agreement” has the meaning set forth in the recitals hereto.

     “Prohibited Transaction” means any transaction prohibited under Section 406 of ERISA or
Section 4975 of the Code.

     “Quarter” means the quarters of the calendar year commencing as of January 1, April 1,
July 1 and October 1.

14

 

     “Required Lenders” means one or more Lenders (including Voting Participants in
accordance with Section 14.26) having an aggregate Percentage in excess of fifty percent
(50%); provided, however, the Percentage of any Delinquent Lender shall be excluded from any
determination of Required Lenders; provided, further, that at any time during which only one
Lender that is not a Delinquent Lender exists, “Required Lenders” means the Lender.

     “Regulatory Change” has the meaning set forth in Section 4.3.

     “Reportable Event” means a reportable event (as defined in section 4043 of ERISA),
other than an event for which the 30-day notice requirement under ERISA has been waived in
regulations issued by the PBGC.

     “Required Licenses” has the meaning set forth in Section 8.9.

     “Restricted Payments” means any dividend or other distribution (whether in cash,
securities or other property), including any cash patronage refunds to patrons or Members,
with respect to any shares of any class of capital stock or other equity interests of, or
cooperative membership interest or accounts with, Borrower or any Subsidiary of Borrower, or
any payment (whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement, revolvement,
acquisition, cancellation or termination of any such shares of capital stock, other equity
interest or cooperative membership interest of Borrower or any Subsidiary of Borrower, or
any option, warrant or other right to acquire any such shares of capital stock, other equity
interest or cooperative membership interest of Borrower or any Subsidiary of Borrower.

     “Subordinated Member Loans” means loans from any Member to Borrower so long as payment
thereof is subordinated to payment of the Obligations pursuant to an agreement (in form and
substance) satisfactory to the Administrative Agent, executed and delivered by such Member
in favor of the Administrative Agent

     “Subsidiary” means, with respect to any Person, (a) any corporation in which such
Person, directly or indirectly, (i) owns more than fifty percent (50%) of the outstanding
stock or other equity interests thereof, or (ii) has the power under ordinary circumstances
to elect at least a majority of the directors thereof, or (b) any partnership, association,
joint venture, limited liability company, or other unincorporated organization or entity
with respect to which such Person, directly or indirectly, (i) owns more than fifty percent
(50%) of the equity interest thereof, or (ii) directly or indirectly owns an equity interest
in an amount sufficient to control the management thereof. All of Borrower’s Subsidiaries
owned as of the Closing Date are set forth on Exhibit 1.76 hereto.

     “Successor Agent” has the meaning set forth in Section 14.21.

     “Syndication Interest” has the meaning set forth in Section 14.1.

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     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority,
including any interest, additions to tax or penalties applicable thereto.

     “Transfer” has the meaning set forth in Section 14.25.

     “Voting Participant” has the meaning set forth in Section 14.26.

     “Voting Participant Notification” has the meaning set forth in Section 14.26.

     “Wire Instructions” has the meaning set forth in Section 14.27.

     “Working Capital” means current assets (determined in accordance with GAAP) minus
current liabilities (determined in accordance with GAAP).

     1.2 Rules of Construction. For all purposes of this Credit Agreement, except as
otherwise expressly provided or unless the context otherwise requires: (a) the terms defined in the
preamble have the meanings therein assigned to them; (b) the terms defined in this Credit Agreement
include the plural as well as the singular; (c) all accounting terms not otherwise defined herein
have the meanings assigned to them in accordance with GAAP; (d) references to documents (including
this Credit Agreement) shall be deemed to include all subsequent amendments and other modifications
thereto and restatements thereof, but only to the extent such amendments, modifications and
restatements are not prohibited by the terms of any Loan Document; and (e) the words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”.

ARTICLE 2. LOAN

     2.1 Loan. On the terms and conditions set forth in this Credit Agreement, including
specifically satisfaction of all conditions set forth in Section 9.2, each of the Lenders severally
agrees to make Advances to Borrower from time to time during the Availability Period, in an
aggregate principal amount outstanding at any time not to exceed the Aggregate Revolving
Commitment, subject to the following limits:

     (a) Individual Lending Capacity. No Lender shall be required to make Advances
which would exceed its Individual Lending Capacity as in effect at the time of the
Administrative Agent’s receipt of the Borrowing Notice requesting such Advance.

     (b) Individual Pro Rata Share. No Lender shall be required to make Advances
under the Loan in excess of an amount equal to its Individual Pro Rata Share multiplied by
the amount of the requested Advance. Each Lender severally agrees to fund its Individual Pro
Rata Share of each Advance, except as provided in Section 2.5 hereof regarding Overnight
Advances.

     2.2 Available Amount. Borrower shall not be entitled to request an Advance under the
Loan in an amount which would exceed the Available Amount.

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     2.3 Borrowing Notice. Borrower shall give the Administrative Agent prior written
notice (“Borrowing Notice”) by facsimile or email transmission (effective upon receipt) of each
request for a Borrowing on or before 12:00 noon (Eastern Time) at least one Banking Day (for Base
Rate Loans) or three Banking Days (for LIBO Rate Loans) prior to the date of making such Borrowing
(subject to the minimum amount requirements set forth in this Section 2.3). Each Borrowing Notice
must be in substantially the form of Exhibit 2.3 hereto and must specify (a) the amount of such
Borrowing, (b) the proposed date of such Borrowing, (c) whether the Borrowing is to include Base
Rate Loans, LIBO Rate Loans or both, and (d) in the case of a LIBO Rate Loan, the initial LIBO Rate
Period applicable thereto. The principal amount of any Loan must be a minimum of $1,000,000 or a
higher integral multiple of $1,000,000. The Administrative Agent shall, on or before 1:00 P.M.
(Eastern Time) of the same Banking Day, notify each Lender (“Funding Notice”) of its receipt of
each such Borrowing Notice and the amount of such Lender’s Funding Share thereunder. Not later than
2:00 P.M. (Eastern Time) on the date of the proposed Borrowing, each Lender will make available to
the Administrative Agent at the Administrative Agent’s Office, in immediately available funds, an
Advance equal to such Lender’s Funding Share of such Borrowing. After the Administrative Agent’s
receipt of such funds, but not later than 3.:00 P.M. (Eastern Time), and upon fulfillment of the
applicable conditions set forth in Article 9 hereof, the Administrative Agent will make the
Borrowing available to Borrower, in immediately available funds.

     2.4 Promissory Notes. Borrower’s obligation to repay the principal of and interest on
the Advances made by each Lender and all Overnight Advances made by the Overnight Lender shall be
evidenced by a promissory note of Borrower, in substantially the form of Exhibit 2.4 hereto, duly
completed, in the stated maximum principal amount equal to such Lender’s Individual Commitment,
dated the date such Lender becomes a Lender, payable to such Lender for the account of its
Applicable Lending Office, and maturing as to principal on the Maturity Date (each a “Note” and
collectively, the “Notes”).

     2.5 Overnight Advances. In addition to Borrower’s right to request Advances under
Section 2.1 hereof, Borrower may, subject to the terms and conditions of this Section, at any time
before 3:00 P.M. (Eastern Time) on a Banking Day, request the Overnight Lender to make an Advance
to Borrower under the Facility on the same Banking Day (“Overnight Advance”) in accordance with the
provisions of this Section 2.5. On each Banking Day by 11:30 A.M. (Eastern Time), the Overnight
Lender shall notify Borrower of the interest rate (“Overnight Rate”) that it will charge on all
Overnight Advances made that Banking Day, which rate may not be in excess of the Base Rate.
Borrower’s request for an Overnight Advance (“Overnight Advance Request”) may be made
telephonically or in writing by facsimile or email transmission (and if telephonically, shall be
confirmed in writing on the same Banking Day), must be directed to the Overnight Lender, and must
specify (a) the amount of such Advance, and (b) the date when such Overnight Advance will be due
and payable (“Overnight Maturity Date”), which may not be later than the fifth Banking Day
thereafter. If Borrower submits an Overnight Advance Request, the Overnight Lender shall promptly,
but not later than 3:30 P.M. (Eastern Time) on the same Banking Day, fund such Overnight Advance.
Each Overnight Advance shall bear interest at the applicable Overnight Rate and shall be payable in
full, including interest, on the Overnight Maturity Date applicable to such Overnight Advance. Such
payment may, at Borrower’s discretion, and subject to the conditions of this Credit Agreement, be
made by a Borrowing under the Facility (in which case, for the
purpose of such Advance, the amount of

17

 

such Overnight Advance shall not be considered in
determining the Available Amount or the Individual Obligations of the Overnight Lender). Overnight
Advances shall be made only by the Overnight Lender. Borrower’s entitlement to receive, and the
Overnight Lender’s obligation to fund, any Overnight Advance shall be subject to the conditions and
limitations set forth in Sections 2.1 and 9.2, and the other conditions and limitations applicable
to Advances generally, and, in addition, the aggregate outstanding principal amount of all such
Overnight Advances shall not at any time exceed the Overnight Funding Commitment.

     2.6 Lender Records. Each Lender shall record on its books and records the amount of
each Advance (including Overnight Advances with respect to those Lenders which are also Overnight
Lenders) made by such Lender, the rate and interest period applicable thereto, all payments of
principal and interest, and the principal balance from time to time outstanding. The Lender’s
record thereof shall be prima facie evidence as to all such amounts and shall be binding on
Borrower absent manifest error.

     2.7 Use of Proceeds. The proceeds of the Facility will be used by Borrower to (a)
refinance Borrower’s obligations under the Prior Credit Agreement, (b) provide for Borrower’s
purchases of crude oil and other working capital requirements, (c) issue the Letters of Credit and
(d) pay fees and expenses in connection with the negotiation, execution and delivery of the Loan
Documents and all other matters related thereto. Borrower agrees not to request or use such
proceeds for any other purpose. Borrower will not, directly or indirectly, use any part of such
proceeds for the purpose of purchasing or carrying any margin stock within the meaning of
Regulation U of the Board of Governors of the Federal Reserve System or to extend credit to any
Person for the purpose of purchasing or carrying any such margin stock.

     2.8 Lender Funding Failure. The failure of any Lender to make its Funding Share of any
requested Borrowing under the Facility on the date specified for such Borrowing shall not relieve
any other Lender of its obligation to make its Funding Share of any such Borrowing on such date. No
Lender shall be responsible for the failure of any other Lender to make any Advance to be made by
such other Lender.

     2.9 Overnight Lender Funding Failure. In the event the Overnight Lender fails to make
any requested Overnight Advance to be made by it on the date specified for such Advance, and,
except where the Overnight Lender and the Administrative Agent are the same Person, the
Administrative Agent will, in its role and capacity of the Administrative Agent, advance such funds
to Borrower on behalf of such Overnight Lender, notwithstanding limitations, if any, contained
herein relating to the Administrative Agent in its role as a Lender, including its Individual
Commitment or Individual Lending Capacity, as applicable. In the event of any such Advance by the
Administrative Agent, the Overnight Lender will be treated as a Delinquent Lender under Section
14.3 hereof, and the Administrative Agent will be treated as a Contributing Lender under such
Section.

     2.10 Reduction of Aggregate Revolving Commitment; Voluntary Increases. Borrower may,
from time to time, reduce or increase the Aggregate Revolving Commitment as follows:

     (a) Reduction. Borrower may, by written facsimile notice to the Administrative
Agent on or before 10:00 A.M. (Eastern time) on any Banking Day, make

18

 

a one-time irrevocable
reduction in the Aggregate Revolving Commitment; provided that (i) such reduction must be in
multiples of five million dollars ($5,000,000), and (ii) Borrower must simultaneously make
any principal payment necessary (along with any applicable Funding Losses on account of such
principal payment) so that (x) the Available Amount does not exceed the reduced Aggregate
Revolving Commitment on the date of such reduction, and (y) the Individual Outstanding
Obligations owing to any Lender do not exceed the Individual Commitment of such Lender
(after reduction thereof in accordance with the following sentence). In the event the
Aggregate Revolving Commitment is reduced as provided in the preceding sentence, the
Individual Commitment of each Lender shall be reduced in accordance with the Percentage of
such Lender, as determined before giving effect to the reduction in the Aggregate Revolving
Commitment.

     (b) Request to Increase. Provided that no Event of Default has occurred and is
continuing, Borrower may from time to time, but in no event more than two times prior to the
Maturity Date, propose to increase the Aggregate Revolving Commitment in accordance with
this Section 2.10. The aggregate principal amount of the increase to the Aggregate
Revolving Commitment made pursuant to this Section 2.10 (the amount of any such increase,
the “Increased Facility Amount”) shall not exceed $35,000,000, which for the avoidance of
doubt shall increase the Aggregate Revolving Commitment to an amount not to exceed
$50,000,000, and each increase shall be at least $10,000,000. Borrower shall provide notice
to the Administrative Agent (which shall promptly provide a copy of such notice to the
Lenders) of any requested Increased Facility Amount. The Administrative Agent may, in its
sole discretion, offer one or more Lenders the opportunity (but not the obligation), for a
period of thirty days following receipt of such notice, to elect by notice to Borrower and
the Administrative Agent to subscribe to participate in the Increased Facility Amount.
Lenders that fail to respond to such notice shall be deemed to have elected not to
participate in the Increased Facility Amount.

     (c) Allocation of Unsubscribed Amounts. If any Lender elects not to increase
its Individual Commitment pursuant to this Section 2.10, the Administrative Agent may place
such unsubscribed amount with one or more other financial institutions selected by the
Administrative Agent and mutually agreed upon by Borrower and the Administrative Agent
(each, an “Additional Lender”), which may (but need not) be existing Lenders (in which case,
such Lender may subscribe to participate in the Increased Facility Amount in excess of its
Percentage, as determined before giving effect to the increase in the Aggregate Revolving
Commitment). The sum of the portion of the Increased Facility Amount subscribed under this
Section 2.10 and the amount placed pursuant to the preceding sentence shall not exceed the
Increased Facility Amount.

     (d) Conditions Precedent. Any increase in the Aggregate Revolving Commitment
under this Section 2.10 shall become effective upon receipt by the Administrative Agent of:

     (i) an amendment to this Credit Agreement, duly signed by Borrower, the
Administrative Agent, each Lender whose Individual Commitment will be increased and
each Additional Lender (if any), which amendment modifies the

19

 

definition of
“Aggregate Revolving Commitment Amount”, sets forth any other agreements of
Borrower, the Administrative Agent, such Lenders and any Additional Lender including
without limitation pricing affecting the Increased Facility Amount, and incorporates
the agreement of each Additional Lender to become a Lender under this Credit
Agreement and the other Loan Documents and bound by all the terms and provisions
hereof and thereof;

     (ii) amendments to any other Loan Documents reasonably requested by the
Administrative Agent in relation to the Increased Facility Amount, which amendments
the Administrative Agent is hereby authorized to execute and deliver on behalf of
the Lenders;

     (iii) Notes, duly executed by Borrower, as any Lender or any Additional Lender
may require;

     (iv) evidence of appropriate corporate authorization on the part of Borrower
with respect to the Increased Facility Amount and the execution and delivery of the
documents described in this subsection 2.10(d);

     (v) such opinions of counsel to Borrower and other assurances as the
Administrative Agent may reasonably request; and

     (vi) reimbursement of the Administrative Agent’s out-of-pocket costs and
expenses (including reasonable attorney’s fees) incurred in connection therewith.

     2.11 Treatment of Existing Advances. All amounts outstanding under the Prior Credit
Agreement and the other loan documents (as defined therein) shall, as of the Closing Date, be
treated as outstanding Advances under the Facility and constitute Obligations hereunder.

ARTICLE 3. LETTER OF CREDIT FACILITY

     3.1 Letters of Credit. On the terms and conditions set forth in this Credit Agreement,
including without limitation satisfaction of all conditions set forth in Section 9.2, Borrower may
request the issuance of one or more standby letters of credit (each a “Letter of Credit”) by the
Letter of Credit Bank pursuant to the conditions and limitations set forth below.

     (a) Request for Letter of Credit. Borrower may request issuance of a Letter of
Credit by sending, not later than 11:00 A.M. (Eastern time) on a Banking Day, a written
request therefore (“LC Request”) to the Letter of Credit Bank. The LC Request shall set
forth (i) the face amount and expiry date, (ii) the beneficiary, (iii) the terms thereof,
and (iv) such other information as the Letter of Credit Bank shall request. Letters of
Credit
shall be issued under the Facility. In no event may the expiry date be later than three
(3) Banking Days prior to the Maturity Date.

     (b) Notification of the Administrative Agent. If the Letter of Credit Bank is
different than the Administrative Agent, Borrower shall, no later than 3:00 P.M. (Eastern
Time) on the date of issuance, notify the Administrative Agent by facsimile or email

20

 

transmission of the face amount, beneficiary and expiry date with respect to each Letter of
Credit issued. The Letter of Credit Bank shall also, no later than 3:00 P.M. (Eastern Time)
on the date of issuance, notify the Administrative Agent by facsimile or email transmission
of the face amount, beneficiary and expiry date with respect to each Letter of Credit issued
by such Letter of Credit Bank.

     (c) Letter of Credit Documents. Each Letter of Credit will be issued under and
pursuant to the terms and conditions of such letter of credit documents as the Letter of
Credit Bank may reasonably require. If any of the terms of any such letter of credit
document are inconsistent with the terms and provisions of this Credit Agreement, the terms
and provisions of this Credit Agreement shall govern.

     3.2 Issuance of Letters of Credit. No later than 12:00 noon (Eastern Time) on the
Banking Day of the receipt by the Letter of Credit Bank of an LC Request, the Letter of Credit Bank
shall issue the requested Letter of Credit for any expiry period from seven (7) days to the latest
expiry date allowable under Subsection 3.1(a) hereof, subject to the following:

     (a) Available Amount. The face amount of the requested Letter of Credit may
not exceed the lesser of (i) an amount which, when added to the aggregate Individual
Outstanding Obligations of all Lenders, would exceed the Aggregate Revolving Commitment, or
(ii) an amount which, when added to the undrawn face amount of all Letters of Credit then
outstanding, would exceed the Aggregate LC Commitment.

     (b) Availability. Letters of Credit may be requested for issuance at any time
prior to the date thirty (30) days prior to the Maturity Date.

     (c) Fees. Borrower shall, on the date of issuance or reissuance of each Letter
of Credit (i) pay to the Administrative Agent, for the benefit of all Lenders in accordance
with their Individual Pro Rata Share in effect on the date of such issuance or reissuance,
the Letter of Credit Fee and (ii) pay to the Letter of Credit Bank the Issuance Fee for such
issuance or reissuance of each Letter of Credit.

     (d) Treatment of Draws. Each draw under a Letter of Credit shall be funded by
the Lenders as a Borrowing under the Facility in accordance with each Lender’s Individual
Pro Rata Share as of the date of issuance of such Letter of Credit. Whenever a draft
submitted under a Letter of Credit is paid by the Letter of Credit Bank, the Letter of
Credit Bank shall so notify the Administrative Agent, and the Administrative Agent shall so
notify each Lender. The Lenders shall fund such Borrowing for purposes of reimbursing the
Letter of Credit Bank for the amount of such draft so paid by the Letter of Credit Bank. If
for any reason or under any circumstance (including the occurrence of
a Default or Event of Default or the failure to satisfy any of the conditions set forth
in Section 9.2) the Lenders do not make such Borrowing, Borrower shall nonetheless be
obligated to reimburse the amount of the draft to the Letter of Credit Bank, with interest
thereon from and after the date such draft is paid by the Letter of Credit Bank until the
amount thereof is repaid to the Letter of Credit Bank in full.

21

 

     3.5 Reimbursement Obligation Unconditional. The obligation of Borrower under this
Credit Agreement to reimburse the Letter of Credit Bank for a drawing under a Letter of Credit
shall be unconditional and irrevocable, and shall be paid strictly in accordance with the terms of
this Credit Agreement under all circumstances, notwithstanding:

     (a) any lack of validity or enforceability of this Credit Agreement, any Letter of
Credit, any of the documents referenced in any Letter of Credit, or any other agreement or
instrument related to any such documents;

     (b) any change in the time, manner or place of payment of, or in any other term of, all
or any of the obligations of Borrower in respect of any Letter of Credit or any other
amendment or waiver of or any consent to departure from any agreement or instrument related
to such Letter of Credit;

     (c) the existence of any claim, setoff, defense or other right which Borrower may have
at any time against any beneficiary or any transferee of any Letter of Credit (or any Person
for whom any such beneficiary or any such transferee may be acting), the Letter of Credit
Bank, any Lender or any other Person, whether in connection with this Credit Agreement, the
transactions contemplated hereby or any unrelated transaction;

     (d) any statement, draft, demand, certificate or any other document presented under any
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect,
or any statement therein being untrue or inaccurate in any respect whatsoever or the draw
certificate was otherwise unauthorized, it being expressly understood and agreed by Borrower
that neither the Letter of Credit Bank nor any Lender shall have any liability on account of
any lack of authorization or forgery and any recovery from third parties on account of such
lack of authorization or such forgery shall be the sole responsibility of Borrower;

     (e) payment of a draw against presentation of a draft or certificate which does not
strictly comply with the terms of that Letter of Credit, unless such payment is made as a
result of the gross negligence or willful misconduct of the Letter of Credit Bank as
determined by a final, non-appealable judgment of a court of competent jurisdiction, or any
payment made under any Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors, liquidator,
receiver or other representative of or successor to any beneficiary or any transferee of any
Letter of Credit, including any arising in connection with any insolvency proceeding;

     (f) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, Borrower or any other Person.

     3.6 Cash Collateral Account. Upon the occurrence of an Event of Default, Borrower
shall immediately (a) establish an account with the Administrative Agent or with such other
financial institution as shall be approved by the Required Lenders and subject to the control of
the Administrative Agent (“Cash Collateral Account”); (b) grant to the Administrative Agent a
first-priority security interest in such Cash Collateral Account; (c) deposit by wire transfer
funds

22

 

into such Cash Collateral Account in an amount equal to 100% of the undrawn face amount of
all Letters of Credit then outstanding; and (d) take such action, including the execution and
delivery (and, where requested, obtaining the execution thereof by third parties) of security
documents, account control agreements, financing statements, and/or such other documents as the
Administrative Agent may require, in order to grant to the Administrative Agent, on behalf of the
Lenders, a first priority security interest in and Lien on such Cash Collateral Account and the
funds on deposit therein. Notwithstanding any other provision contained in this Credit Agreement or
any of the other Loan Documents, draws made against any Letter of Credit on or after the date of
funding of the Cash Collateral Account shall, at the sole discretion of the Letter of Credit Bank,
be funded out of the funds on deposit in the Cash Collateral Account rather than out of Advances.

ARTICLE 4. INTEREST, FEES AND COSTS

     4.1 Interest. Interest on Advances under the Loan shall be calculated as follows:

     (a) Base Rate Loans. Unless Borrower requests and receives a LIBO Rate Loan
pursuant to Subsection 4.1(b) hereof, each Borrowing shall be funded by the Lenders as Base
Rate Advances.

     (b) LIBO Rate Loans. From time to time, and so long as no Event of Default has
occurred and is continuing, Borrower may request in any Borrowing Notice that all or any
part of any Borrowing be funded by the Lenders as LIBO Rate Advances. In addition, from
time to time, and so long as no Event of Default has occurred and is continuing, Borrower
may convert any Base Rate Loan to a LIBO Rate Loan, or continue a LIBO Rate Loan, by making
a written request therefore (“LIBO Request”) to the Administrative Agent by facsimile or
email transmission, not later than 12:00 noon (Eastern Time) on a Banking Day that is at
least three Banking Days prior to the date of the requested conversion or continuation,
specifying (i) the date of such conversion or continuation, which must be a Banking Date,
(ii) the principal amount that is to bear interest at the LIBO Rate, which must be a minimum
of $1,000,000 or a higher integral multiple of $1,000,000 and (iii) the requested LIBO Rate
Period therefor. The Administrative Agent shall incur no liability in acting upon a request
which it believed in good faith had been made by a properly authorized representative of
Borrower. Following the expiration of the LIBO Rate Period for any LIBO Rate Loan, unless
Borrower requests and receives another LIBOR Rate Loan as provided hereunder or
prepays the principal of an outstanding LIBO Rate Loan at the end of such LIBO Rate
Period, each Lender shall automatically and without request of Borrower convert each LIBO
Rate Loan to a Base Rate Loan on the last day of the relevant LIBO Rate Period

     4.2 Additional Provisions for LIBO Rate.

     (a) Limitation on LIBO Rate. Anything herein to the contrary notwithstanding,
if, on or prior to the determination of the LIBO Rate or the Base Rate LIBO Alternative:

23

 

     (i) the Administrative Agent or any Lender determines that deposits in U.S.
dollars (in the applicable amounts) are not being offered in the London interbank
eurodollar market;

     (ii) the Administrative Agent or any Lender otherwise determines that by reason
of circumstances affecting the London interbank eurodollar market adequate and
reasonable means do not exist for ascertaining a LIBO Rate or a Base Rate LIBO
Alternative;

     (iii) any Lender determines (which determination shall be conclusive) that the
relevant rates of interest referred to in the definition of LIBO Rate or Base Rate
LIBO Alternative upon the basis of which the rate of interest is to be determined do
not adequately and fairly cover the cost to that Lender of making or maintaining any
Loan, or that the making or funding of any Loan has become impracticable as a result
of an event occurring after the date of this Credit Agreement that in the opinion of
that Lender materially affects any Loan; or

     (iv) any change in (including the adoption of any new) applicable laws or
regulations, or any change in the interpretation of applicable laws or regulations
by any governmental authority, central bank, comparable agency or any other
regulatory body charged with the interpretation, implementation or administration
thereof, or compliance by a Lender with any request or directive (whether or not
having the force of law) of any such authority, central bank, comparable agency or
other regulatory body, should make it or, in the good faith judgment of the affected
Lender, shall raise a substantial question as to whether it is unlawful for such
Lender to make, maintain or fund any Loan,

then the Administrative Agent or the affected Lender shall give Borrower and (if applicable)
the Administrative Agent prompt notice thereof, and so long as such condition remains in
effect, the affected Lenders shall be under no obligation to make or continue any Loan as
calculation by reference to the LIBO Rate or the Base Rate LIBO Alternative) or convert Base
Rate Loans into LIBO Rate Loans, and Borrower shall either prepay such Loans or such Loans
shall automatically be converted into a Base Rate Loan (as calculated without reference to
the Base Rate LIBO Alternative) in accordance with Section 4.1 hereof.

     (b) LIBO Rate Unlawful. If any Change in Law shall make it unlawful for any
Lender to (i) advance its Funding Share of any Loan or (ii) maintain its share of all or any
portion of any Loan, such Lender shall promptly, by telephone (in which case it must be
promptly followed by a writing) in writing by facsimile or email transmission, notify the
Administrative Agent thereof, and of the reasons therefor and the Administrative Agent shall
promptly notify Borrower thereof and shall provide a copy of such written notice to
Borrower. In the former event, any obligation of any such Lender to make available its
Funding Share of any future Loan shall immediately be canceled (and, in lieu thereof shall
be made as a Base Rate Loan (as
calculated without reference to the Base Rate LIBO
Alternative), and in the latter event, any such unlawful Loans or portions thereof then
outstanding shall be converted, at the option of such Lender, to a Base Rate Loan (as

24

 

calculated without reference to the Base Rate LIBO Alternative); provided, however, that if
any such Change in Law shall permit the LIBO Rate to remain in effect until the expiration
of the LIBO Rate Period applicable to any such unlawful Loan, then such Loan shall continue
in effect until the expiration of such LIBO Rate Period. Upon the occurrence of any of the
foregoing events on account of any Change in Law, Borrower shall pay to the Administrative
Agent immediately upon demand such amounts as may be necessary to compensate any such Lender
for any fees, charges, or other costs incurred or payable by such Lender as a result thereof
and which are attributable to any Loan made available to Borrower hereunder, and any
reasonable allocation made by any such Lender among its operations shall be conclusive and
binding upon Borrower absent manifest error.

     4.3 Additional Costs of Maintaining Loan. Borrower shall pay to the Administrative
Agent from time to time such amounts as the Administrative Agent may determine to be necessary to
compensate any Lender for any increase in costs to such Lender which the Administrative Agent
determines, based on information presented to it by such Lender, are attributable to such Lender’s
making or maintaining an Advance hereunder or its obligation to make such Advance, or any reduction
in any amount receivable by such Lender under this Credit Agreement or the Notes payable to it in
respect to such Advance or such obligation (such increases in costs and reductions in amounts
receivable being herein called “Additional Costs”), resulting from any Change in Law or by any
court or governmental or monetary authority charged with the interpretation or administration
thereof (“Regulatory Change”), which: (a) changes the basis of taxation of any amounts payable to
such Lender under this Credit Agreement or the Notes payable to such Lender in respect of such
Advance (other than taxes imposed on the overall net income of such Lender); or (b) imposes or
modifies any reserve, special deposit, or similar requirements relating to any extensions of credit
or other assets of, or any deposits with or other liabilities of, such Lender; or (c) imposes any
other condition affecting this Credit Agreement or the Notes payable to such Lender (or any of such
extensions of credit or liabilities). The Administrative Agent will notify Borrower of any event
occurring after the date of this Credit Agreement which will entitle such Lender to compensation
pursuant to this Section as promptly as practicable after it obtains knowledge thereof and
determines to request such compensation. The Administrative Agent shall include with such notice a
certificate from such Lender setting forth in reasonable detail the calculation of the amount of
such compensation. Determinations by the Administrative Agent for purposes of this Section of the
effect of any Regulatory Change on the costs of such Lender of making or maintaining an Advance or
on amounts receivable by such Lender in respect of
Advances, and of the additional amounts required to compensate such Lender in respect of any
Additional Costs, shall be conclusive absent manifest error, provided that such determinations are
made on a reasonable basis.

     4.4 Capital Requirements. In the event of any Change in Law, Regulatory Change or
compliance by any Lender or any corporation controlling any such Lender with any guideline or
request from any Governmental Authority (whether or not having the force of law) has the effect of
requiring an increase in the amount of capital required or expected to be maintained by such Lender
or any corporation controlling such Lender, and such Lender certifies that such increase is based
in any part upon such Lender’s obligations hereunder with respect to the Facility, and other
similar obligations, Borrower shall pay to such Lender such additional amount as shall be

25

 

certified
by such Lender to the Administrative Agent and to Borrower to be the net present value (discounted
at the Base Rate) of (x) the amount by which such increase in capital reduces the rate of return on
capital which such Lender could have achieved over the period remaining until the Maturity Date,
but for such introduction or change, (y) multiplied by the product of such Lender’s Individual Pro
Rata Share times the applicable Aggregate Commitment(s). The Administrative Agent will notify
Borrower of any event occurring after the date of this Credit Agreement that will entitle any such
Lender to compensation pursuant to this Section as promptly as practicable after it obtains
knowledge thereof and of such Lender’s determination to request such compensation. The
Administrative Agent shall include with such notice a certificate from such Lender setting forth in
reasonable detail the calculation of the amount of such compensation. Determinations by any Lender
for purposes of this Section of the effect of any increase in the amount of capital required to be
maintained by any such Lender and of the amount of compensation owed to any such Lender under this
Section shall be conclusive absent manifest error, provided that such determinations are made on a
reasonable basis.

     4.5 Default Interest Rate. All past due payments on the Notes and all other
Obligations not paid when due hereunder (whether as a result of nonpayment by Borrower when due, at
maturity, or upon acceleration) shall bear interest at the Default Interest Rate from and after the
due date for the payment, or from and after the date of maturity or acceleration, as the case may
be. Notwithstanding anything in this Credit Agreement to the contrary, at no time shall Borrower
be obligated or required to pay interest on any Obligation at a rate that could subject the
Administrative Agent, any Lender or the Letter of Credit Bank to either civil or criminal liability
as a result of being in excess of the maximum interest rate that Borrower is permitted to be
charged by applicable law. If, under the terms of this Credit Agreement or any other Loan Document,
Borrower is at any time required or obligated to pay interest on any Obligation at a rate in excess
of such maximum rate, the applicable interest rate shall be deemed to be immediately reduced to
such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have
been payments in reduction of principal and not on account of any interest thereon due hereunder.
All sums paid or agreed to be paid to the Administrative Agent, a Lender or the Letter of Credit
Bank for the use, forbearance or retention of any Obligation, shall, to the extent permitted by
applicable law, be amortized, prorated, allocated and spread throughout the full stated term of the
Obligation to which such payment applies until payment in full so that the rate or amount of
interest on account of any such Obligation does not exceed the maximum lawful rate of interest from
time to time in effect and applicable to such Obligation for so long as the Obligation is
outstanding.

     4.6 Interest Calculation. Interest on Base Rate Loans and LIBO Rate Loans shall be
calculated on the actual number of days that the principal owing thereunder is outstanding with the
daily rate calculated on the basis of a year consisting of 360 days.

     4.7 Fees. Borrower shall pay or cause to be paid the following fees:

     (a) Commitment Fee. A fee for each day during the Availability Period
(“Commitment Fee”) for each Facility (i) payable in arrears by the tenth calendar day
following the close of each Quarter, and (ii) determined for each day during such Quarter by
(x) multiplying the Commitment Fee Factor (expressed as a daily rate on the basis of a year
of 360 days) times (y) the difference between the Aggregate Revolving Commitment

26

 

and the outstanding principal balance owing under the Loans as of the close of the
Administrative Agent’s business on such day. The Commitment Fee shall be payable by Borrower
to the Administrative Agent, and the Administrative Agent shall distribute the Commitment
Fee to the Lenders based on their Individual Pro Rata Share.

     (b) Fee Letter. Borrower shall pay to the Administrative Agent all fees
required to be paid pursuant to the Fee Letter.

ARTICLE 5. PAYMENTS; FUNDING LOSSES

     5.1 Principal Payments. The aggregate unpaid principal amount of all Overnight
Advances shall be due and payable on the applicable Overnight Maturity Date and the aggregate
unpaid principal amount of all other Advances and other Obligations shall be due and payable on the
Maturity Date. Voluntary prepayments may be made only as provided in Section 5.5 hereof and
Mandatory Prepayments must be made as provided in Section 5.6 hereof.

     5.2 Interest Payments. Interest shall be payable as follows: (a) interest on Base Rate
Loans shall be payable monthly in arrears on the first Banking Day of the next month; (b) interest
on LIBO Rate Loans shall be payable on the last day of the LIBO Rate Period therefor, but no less
frequently than each three month anniversary of the first day of such LIBO Rate Period; (c)
interest on all Loans then accrued and unpaid shall be payable on the Maturity Date; and (d)
interest on Overnight Advances shall be payable on the applicable Overnight Maturity Date.

     5.3 Application of Principal Payments. Principal payments and prepayments shall be
applied first to Overnight Advances, then to Base Rate Loans, and then to LIBO Rate Loans unless
Borrower directs otherwise in writing. However, upon the occurrence and during the continuance of a
Default or Event of Default, all principal payments shall be applied, in such order as the
Administrative Agent in its sole discretion shall determine, to any fees, accrued and unpaid
interest or principal indebtedness under the Notes, or any other Obligations.

     5.4 Manner of Payment. All payments, including prepayments, that Borrower is required
or permitted to make under the terms of this Credit Agreement shall be made to the Administrative
Agent (a) in immediately available federal funds, to be received no later than 1:00 P.M. Eastern
Time of the date on which such payment is due (or the following Banking Day if such date is not a
Banking Day) by wire transfer through Federal Reserve Bank, Kansas City, in accordance with the
Wire Instructions (or to such other account as the Administrative Agent may designate by notice);
and (b) without setoff or counterclaim and free and clear of and without deduction for any taxes,
levies, impost, duties, charges, fees, deductions, withholding, compulsory loans, restrictions or
conditions of any nature now or hereafter imposed or levied by any jurisdiction or any political
subdivision thereof or taxing or other authority therein unless Borrower is required by law to make
such deduction or withholding.

     5.5 Voluntary Prepayments. Borrower shall have the right to prepay all or any part of
the outstanding principal balance under the Loans at any time in integral multiples of $1,000,000
(or the entire outstanding balance, if less) and subject to a $1,000,000 minimum prepayment (or the
entire outstanding balance, if less), on any Banking Day; provided that in the event of

27

 

prepayment
of any LIBO Rate Loan, (a) Borrower must provide three (3) Banking Days notice to the
Administrative Agent prior to making such prepayment, and (b) Borrower must, at the time of making
such prepayment, pay all accrued interest on such partial prepayment through the date of prepayment
plus all Funding Losses applicable to such prepayment. Principal amounts paid or prepaid under the
Loans may be reborrowed under the terms and conditions of this Credit Agreement.

     5.6 Mandatory Prepayments. In the event the sum of (a) the outstanding principal under
all Loans; plus (b) the undrawn face amount of all outstanding Letters of Credit; plus (c) the
amount of all Committed Advances; plus (d) without duplication, the amount of all outstanding
Overnight Advances, exceeds the Aggregate Revolving Commitment, Borrower shall, within one (1)
Banking Day make a prepayment in the amount of such excess.

     5.7 Funding Losses. In the event of any prepayment of any LIBOR Loans, whether
voluntary or mandatory, and including on account of acceleration, Borrower must, at the time of
making such prepayment, pay all Funding Losses applicable to such prepayment. “Funding Losses”
shall be determined on an individual Lender basis as the amount which would result in such Lender
being made whole (on a present value basis) for the actual or imputed funding losses (including,
without limitation, any loss, cost or expense incurred by reason of obtaining, liquidating or
employing deposits or other funds acquired by such Lender to fund or maintain such LIBO Rate Loan)
incurred by such Lender as a result of such prepayment (regardless of whether the Lender actually
funded with such deposits). In the event of any such prepayment, each Lender which had funded the
Loan being prepaid shall, promptly after being notified of such prepayment, send written notice
(“Funding Loss Notice”) to the Administrative Agent by facsimile or email transmission setting
forth the amount of attributable Funding Losses and the method of calculating the same. The
Administrative Agent shall notify Borrower orally or in writing of the amount of such Funding
Losses. A determination by a Lender as to the amounts payable pursuant to this Section shall be
conclusive absent manifest error.

     5.8 Distribution of Principal and Interest Payments. The Administrative Agent shall
distribute payments of principal and interest among the Lenders in accordance with their respective
Individual Pro Rata Shares, provided that principal and interest payments on Overnight Advances
shall be remitted only to the Overnight Lender.

ARTICLE 6. COBANK EQUITIES

     6.1 CoBank Equities.

     (a) So long as CoBank is a Lender hereunder, Borrower will acquire equity in CoBank in
such amounts and at such times as CoBank may require in accordance with
CoBank’s Bylaws and Capital Plan (as each may be amended from time to time), except
that the maximum amount of equity that Borrower may be required to purchase in CoBank in
connection with the Loans made by CoBank may not exceed the maximum amount permitted by the
Bylaws and the Capital Plan at the time this Agreement is entered into. Borrower
acknowledges receipt of a copy of (i) CoBank’s most recent annual report, and if more
recent, CoBank’s latest quarterly report, (ii) CoBank’s Notice to Prospective Stockholders
and (iii) CoBank’s Bylaws and Capital Plan, which describe

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the nature of all of Borrower’s
stock and other equities in CoBank acquired in connection with its patronage loan from
CoBank (the “CoBank Equities”) as well as capitalization requirements, and agrees to be
bound by the terms thereof.

     (b) Each party hereto acknowledges that CoBank’s Bylaws and Capital Plan (as each may
be amended from time to time) shall govern (i) the rights and obligations of the parties
with respect to the CoBank Equities and any patronage refunds or other distributions made on
account thereof or on account of Borrower’s patronage with CoBank, (ii) Borrower’s
eligibility for patronage distributions from CoBank (in the form of CoBank Equities and
cash) and (iii) patronage distributions, if any, in the event of a sale of a participation
interest. CoBank reserves the right to assign or sell participations in all or any part of
its Individual Commitments or outstanding Loans hereunder on a non-patronage basis.

     (c) Each party hereto acknowledges that CoBank has a statutory first lien
pursuant to the Farm Credit Act of 1971 (as amended from time to time) on all CoBank
Equities that Borrower may now own or hereafter acquire, which statutory lien shall be for
CoBank’s sole and exclusive benefit. The CoBank Equities shall not constitute security for
the Obligations due to any other Lender. To the extent that any of the Loan Documents create
a Lien on the CoBank Equities or on patronage accrued by CoBank for the account of Borrower
(including, in each case, proceeds thereof), such Lien shall be for CoBank’s sole and
exclusive benefit and shall not be subject to pro rata sharing hereunder. Neither the CoBank
Equities nor any accrued patronage shall be offset against the Obligations except that, upon
the occurrence of an Event of Default, CoBank may elect, solely at its discretion, to apply
the cash portion of any patronage distribution or retirement of equity to amounts due under
this Agreement. Borrower acknowledges that any corresponding tax liability associated with
such application is the sole responsibility of Borrower. CoBank shall have no obligation to
retire the CoBank Equities upon any Event of Default, Default or any other default by
Borrower, or at any other time, either for application to the Obligations or otherwise.

     6.2 CoBank Capital Plan. Borrower shall retain eligibility to make such investments
in CoBank as may from time to time be required in accordance with the Farm Credit Act of 1971, as
amended, the regulations of the Farm Credit Administration and the Bylaws and Capital Plan of
CoBank, all as may be amended from time to time.

ARTICLE 7. SECURITY

     7.1 Security Interest. The Advances made under this Credit Agreement are being made
on an unsecured basis, except (a) with respect to the Cash Collateral Account as provided in
Section 3.6, and (b) the statutory first lien in favor of CoBank, but not in favor of any other
Lender, in the CoBank Equities.

ARTICLE 8. REPRESENTATIONS AND WARRANTIES

     Borrower represents and warrants to the Administrative Agent, each Lender and the Letter of
Credit Bank as follows:

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     8.1 Organization, Good Standing, Etc. Borrower: (a) is duly organized, validly
existing, and in good standing as a cooperative marketing association under the laws of its state
of incorporation, which is Kansas; (b) is duly qualified to do business and is in good standing in
each jurisdiction in which the transaction of its business makes such qualification necessary,
except to the extent that the failure to so qualify has not resulted in, and could not reasonably
be expected to cause, a Material Adverse Effect; and (c) has all authority and all requisite
corporate and legal power to own and operate its assets and to carry on its business, and to enter
into and perform the Loan Documents to which it is a party.

     8.2 Corporate Authority, Due Authorization; Consents. The execution, delivery and
performance by Borrower of the Loan Documents to which it is a party, and the Letters of Credit and
Advances from time to time obtained hereunder, have been duly authorized by all necessary corporate
action and do not and will not (a) require any consent or approval which has not been obtained
prior to the date hereof; (b) require any authorization, consent or approval by, or registration,
declaration or filing (other than filing of financing statements and recording of mortgages as
contemplated hereunder) with, or notice to, any governmental department, commission, board, bureau,
agency or instrumentality, domestic or foreign, or, any third party, except such authorization,
consent, approval, registration, declaration, filing or notice as has been obtained, accomplished
or given prior to the date hereof; or (c) result in, or require, the creation or imposition of any
Lien of any nature upon or with respect to any of the properties now owned or hereafter acquired by
Borrower (other than as required hereunder in favor of the Administrative Agent or as otherwise
permitted by this Credit Agreement).

     8.3 Litigation. Except as described on Exhibit 8.3 hereto, there are no pending legal
or governmental actions, suits, claims, proceedings or investigations to which Borrower is a party
or to which any property of Borrower is subject which might reasonably be expected to result in any
Material Adverse Effect and, to Borrower’s knowledge, no such actions, suits, claims, proceedings
or investigations are threatened or contemplated by any Governmental Authority or any other Person.

     8.4 No Violations. The execution, delivery and performance of its obligations under
the Loan Documents will not: (a) violate any provision of Borrower’s Organization Documents, or any
law, rule, regulation (including, without limitation, Regulations T, U, and X of the Board of
Governors of the Federal Reserve System), or any
judgment, order or ruling of any court or governmental agency; (b) violate, require consent
under (except such consent as has been obtained), conflict with, result in a breach of or, with the
giving of notice or the expiration of time or both, constitute a default under, any existing real
estate mortgage, indenture, loan or credit agreement, lease, security agreement, contract, note,
instrument or any other agreements or documents binding on Borrower or affecting its property; or
(c) violate, conflict with, result in a breach of, constitute a default under, or result in the
loss of, or restriction of rights under, any Required License or any order, law, rule, or
regulation under or pursuant to which any Required License was issued or is maintained (“Licensing
Laws”).

     8.5 Binding Agreement. Each of the Loan Documents to which Borrower is a party is, or
when executed and delivered, will be, the legal, valid and binding obligation of Borrower,
enforceable in accordance with its terms, subject only to limitations on enforceability imposed by

30

 

applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’
rights generally and by general principles of equity.

     8.6 Compliance with Laws. Borrower is in compliance with all federal, state, and local
laws, rules, regulations, ordinances, codes and orders, including without limitation all
Environmental Laws and all Licensing Laws, with respect to which noncompliance would result in a
Material Adverse Effect.

     8.7 Principal Place of Business. Borrower’s place of business, or chief executive
office if it has more than one place of business, and the place where the records required by
Section 10.1 hereof are kept, is located at 1391 Iron Horse Road, McPherson, Kansas 67460.

     8.8 Payment of Taxes. Borrower has filed all required federal, state and local tax
returns and has paid all taxes as shown on such returns as they have become due, and has paid when
due all other taxes, assessments or impositions levied or assessed against Borrower or its business
or properties, except where the failure to make such filing or payment could not reasonably be
expected to result in a Material Adverse Effect. Proper and accurate amounts have been withheld by
Borrower from its respective employees for all periods in compliance with the tax, social security
and any employment withholding provisions of applicable federal and state law, and proper and
accurate federal and state returns have been filed by Borrower for all periods for which returns
were due with respect to employee income tax withholding, social security and unemployment taxes,
and the amounts shown thereon to be due and payable have been paid in full or provision therefor
included on the books of Borrower in accordance with and to the extent required by GAAP. Borrower
is unaware of any pending investigation by any taxing authority.

     8.9 Licenses and Approvals. Borrower has ownership of, or license to use, or has been
issued, all franchises, certificates, approvals, permits, authorities, agreements, and licenses
which are used or necessary to permit it to own its properties and to conduct the business as
presently being conducted as to which the termination or revocation thereof could reasonably be
expected to have a Material Adverse Effect (“Required Licenses”). Each Required License is
identified on Exhibit 8.9 hereto and is in full
force and effect, and there is no outstanding notice of cancellation or termination or, to
Borrower’s knowledge, any threatened cancellation or termination in connection therewith, nor has
an event occurred with respect to any Required License which, with the giving of notice or passage
of time or both, could result in the revocation or termination thereof or otherwise impair
Borrower’s rights with respect thereto, which impairment could reasonably be expected to have a
Material Adverse Effect.

     8.10 Employee Benefit Plans. Exhibit 8.10 sets forth as of the Closing Date a true
and complete list of each Borrower Benefit Plan, Borrower Pension Plan, and Multiemployer Plan that
is maintained by Borrower or any of its Subsidiaries or ERISA Affiliates or in which Borrower or
any of its Subsidiaries or ERISA Affiliates participates or to which Borrower or any of its
Subsidiaries or ERISA Affiliates is obligated to contribute, in each case as of the Closing Date.
Except as disclosed on Exhibit 8.10, neither Borrower nor any of its ERISA Affiliates (i) maintains
(or contributes to) or has maintained (or contributed to) any Borrower Pension Plan that is subject
to Title IV of ERISA or Section 412 of the Code, (ii) contributes or has contributed to any
Multiemployer Plan or (iii) provides or has provided post-retirement medical or insurance benefits
or has any post-retirement medical or insurance liabilities with respect to

31

 

employees or former
employees (other than benefits required under Section 601 of ERISA, Section 4980B of the Code or
comparable state law). Borrower has not nor, except as could not reasonably be expected to have a
Material Adverse Effect, has any of its ERISA Affiliates, received any notice or has any knowledge
to the effect that it is not in substantial compliance with any of the requirements of ERISA, the
Code or applicable state law. Except as could not reasonably be expected to have a Material
Adverse Effect, no Reportable Event has occurred in connection with any Borrower Pension Plan
subject to Title IV of ERISA. Each Borrower Pension Plan that is intended to be a tax-qualified
plan under Section 401(a) of the Code is so qualified, and no fact or circumstance exists that may
have an adverse effect on the Borrower Pension Plan’s tax-qualified status. Borrower has not nor,
except as could not reasonably be expected to have a Material Adverse Effect, has any of its ERISA
Affiliates, with respect to any Borrower Pension Plan (i) failed to satisfy the minimum funding
standard specified in Section 302(a)(2) of ERISA or Section 412(a)(2) of the Code with respect to
any plan year, or (ii) incurred any material liability under Section 4201 or 4243 of ERISA for any
withdrawal, partial withdrawal, reorganization or other event under any Multiemployer Plan.
Borrower does not have nor, except as could not reasonably be expected to have a Material Adverse
Effect, do any of its ERISA Affiliates have any knowledge of any facts or circumstances that could
be reasonably likely to result in any material liability to the PBGC, the Internal Revenue Service,
the Department of Labor or any participant in connection with any Borrower Benefit Plan (other than
routine claims for benefits under the Borrower Benefit Plan). With respect to each Borrower
Pension Plan subject to Section 430 of the Code, as of the most recent determination made for
purposes of Section 430 of the Code, the “funding shortfall” (as defined in Section 430(c)(4) of
the Code, without reduction of assets under Section 430(f)(4)(B) of the Code) of the Borrower
Benefit Plan, if paid to the Borrower Benefit Plan in a lump-sum payment, could not reasonably be
expected to have a Material Adverse Effect, and the funding target attainment percentage (as
defined in Section 430(d)(2) of the Code, without reduction of assets under Section 430(f)(4)(B) of
the Code) of the Borrower Benefit Plan equals at least 80%. There is no Lien on assets of Borrower
or any ERISA Affiliate that has arisen under Section 430(k) of the Code. Except as could not
reasonably be expected to have a Material Adverse Effect, other than claims for benefits in the
ordinary course of business, there are no actions,
suits, disputes, arbitrations or other material claims pending or, to Borrower’s knowledge,
threatened with respect to any Borrower Benefit Plan.

     8.11 Equity Investments. Borrower does not now own any stock or other voting or equity
interest, directly or indirectly, in any Person valued at the greater of book value or market value
at $5,000,000 or more, other than: (a) the CoBank Equities, and (b) as set forth on Exhibit 8.11
hereto.

     8.12 Title to Real and Personal Property. Borrower has good and marketable fee or
leasehold title, as the case may be, to all of its properties and assets, real and personal,
including the properties and assets and leasehold interests reflected in the financial statements
of Borrower referred to in Section 8.13 hereof, except (a) any properties or assets disposed of in
the ordinary course of business, and (b) for defects in title and encumbrances which could not
reasonably be expected to result in a Material Adverse Effect. None of the properties of Borrower
are subject to any Lien, except as permitted by Section 11.3 hereof (“Permitted Encumbrances”). All
such property is in good operating condition and repair, reasonable wear and tear excepted, and
suitable in all material respects for the purposes for which it is being utilized except where its

32

 

failure to be in good operating condition could not reasonably be expected to result in a Material
Adverse Effect. All of the leases of Borrower which constitute Material Agreements are in full
force and effect and afford Borrower peaceful and undisturbed possession of the subject matter
thereof.

     8.13 Financial Statements. The consolidated balance sheet of Borrower and its
Subsidiaries as of August 31, 2010, and the related consolidated statements of operations, cash
flows and consolidated statements of capital shares and equities for the Fiscal Year then ended,
and the accompanying footnotes, together with the unqualified opinion thereon, dated August 31,
2010 of Pricewaterhouse Coopers LLP, independent certified public accountants, copies of which have
been furnished to the Administrative Agent and the Lenders, fairly present in all material respects
the financial condition of Borrower and its Subsidiaries as at such dates and the results of the
operations of Borrower and its Subsidiaries for the periods covered by such statements, all in
accordance with GAAP consistently applied. Since August 31, 2010, there has been no material
adverse change in the financial condition, results of operations, business or prospects of Borrower
or any of its Subsidiaries. As of the Closing Date, there are no liabilities of Borrower or any of
its Subsidiaries, fixed or contingent, which are material but are not reflected in the financial
statements of Borrower and its Subsidiaries referred to above or referred to in the notes thereto,
other than liabilities arising in the ordinary course of business since August 31, 2010. This
Agreement, together with each other Loan Document and the exhibits, schedules, attachments, written
or oral statements, documents, certificates and other items prepared or supplied to the
Administrative Agent, the Letter of Credit Bank or any Lender by or on behalf of Borrower or any of
its Subsidiaries with respect to the transactions contemplated hereby or thereby, does not contain
any untrue statement of a material fact or omit a material fact necessary to make each statement
contained herein or therein not misleading (and, as to projections, valuations or pro forma
financial statements, all of such information presents a good faith opinion based on reasonable
assumptions as of the date made as to such projections, valuations and pro forma condition and
results). There is no fact that Borrower has not disclosed to the Administrative Agent, the Letter
of Credit Bank and the Lenders in writing and of which any of Borrower’s
officers, directors or executive employees is aware and that has had or could reasonably be
expected to have a Material Adverse Effect. Notwithstanding the foregoing, the Administrative
Agent, the Letter of Credit Bank and the Lenders acknowledge that the financial projections and pro
forma information as to future periods contained therein are subject to general business conditions
and economic factors that may be beyond Borrower’s or its Subsidiaries’ control or other
unanticipated future events that could have an unforeseen impact on the performance or condition of
Borrower and its Subsidiaries, it being understood that all such financial projections will be
subject to uncertainties and contingencies and that no representation is given that any particular
financial projection will ultimately be realized.

     8.14 Environmental Compliance. Borrower and its Subsidiaries have obtained all
permits, licenses and other authorizations which are required under all applicable Environmental
Laws, except to the extent failure to have any such permit, license or authorization could not
reasonably be expected to result in a Material Adverse Effect (with respect to Borrower or any such
Subsidiary). Borrower and its Subsidiaries, and all activities of Borrower and each of its
Subsidiaries, are in compliance with all Environmental Laws and the terms and conditions of the
required permits, licenses and authorizations, and are also in compliance with all other
limitations, restrictions, obligations, schedules and timetables contained in those Environmental

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Laws or contained in any plan, order, decree, judgment, injunction, notice or demand letter issued,
entered, promulgated or approved thereunder, except to the extent, in each case, failure to comply
has not resulted in, and could not reasonably be expected to result in, a Material Adverse Effect
(with respect to Borrower or any such Subsidiary).

     8.15 Fiscal Year. Each fiscal year of Borrower begins on September 1 of each calendar
year and ends on August 31 of each calendar year.

     8.16 Material Agreements. Neither Borrower nor, to Borrower’s knowledge, any other
party to any Material Agreement, is in default thereunder, and no facts exist which with the giving
of notice or the passage of time, or both, would constitute such a default.

     8.17 Regulations U and X. No portion of any Advance will be used for the purpose of
purchasing, carrying, or making loans to finance the purchase of any “margin security” or “margin
stock” as such terms are used in Regulations U or X of the Board of Governors of the Federal
Reserve System, 12 C.F.R. Parts 221 and 224.

     8.18 Intellectual Property. Set forth on Exhibit 8.18 hereto is a complete and
accurate list of all patents, trademarks, trade names, service marks and copyrights, and all
applications for any of the foregoing that are owned or licensed by Borrower (collectively,
“Intellectual Property”) and are registered with any federal or state Governmental Authority and
all licenses thereof, showing as of the date hereof the jurisdiction in which registered, the
registration number, the date of registration and the expiration date or, if registration is not
yet complete, the date of the application therefor and the application number and title, if any,
and indicating whether Borrower owns or licenses each such item of Intellectual Property. Borrower
owns or licenses all Intellectual Property that it utilizes in its business as presently being
conducted and as anticipated to be conducted, except where the failure to do so
could not reasonably be expected to result in a Material Adverse Effect. The Intellectual
Property is in full force and effect, and Borrower has taken or caused to be taken all action
necessary to maintain the Intellectual Property in full force and effect and has not taken or
failed to take or cause to be taken any action which, with the giving of notice, or the expiration
of time, or both, could result in any such Intellectual Property being revoked, invalidated,
modified, or limited.

     8.19 No Default on Outstanding Judgments or Orders. Borrower has satisfied all
judgments and Borrower is not in default with respect to any judgment, writ, injunction, decree,
rule or regulation of any court, arbitrator or federal, state, municipal or other Governmental
Authority, commission, board, bureau, agency or instrumentality, domestic or foreign, except to the
extent such failure to satisfy any or all such judgments or to be in such a default has not
resulted in, and could not reasonably be expected to result in, a Material Adverse Effect.

     8.20 No Default in Other Agreements. Borrower is not a party to any indenture, loan or
credit agreement or any lease or other agreement or instrument or subject to any certificate of
incorporation or corporate restriction which has resulted in, or could reasonably be expected to
result in, a Material Adverse Effect. Borrower is not in default in any respect in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained
in any agreement or instrument where such failure to perform, observe or fulfill has resulted in,
or could reasonably be expected to result in, a Material Adverse Effect.

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     8.21 Labor Disputes and Acts of God. Neither the business nor the properties of
Borrower are currently affected by any fire, explosion, accident, strike, lockout or other labor
dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other
casualty (whether or not covered by insurance) which has resulted in, or could reasonably be
expected to result in, a Material Adverse Effect.

     8.22 Governmental Regulation. Borrower is not subject to regulation under the Public
Utility Holding Company Act of 1935, the Investment Company Act of 1940, the Interstate Commerce
Act, the Federal Power Act or any statute or regulation, in each case, limiting its ability to
incur indebtedness for money borrowed as contemplated hereby, and neither Borrower nor any company
controlling Borrower is required to be registered as an “investment company” within the meaning of
the Investment Company Act of 1940.

     8.23 Solvency. Both before and after giving effect to all of the loans, guaranties and
other financial accommodations contemplated herein, Borrower (a) will be able to pay its debts as
they become due, (b) will have funds and capital sufficient to carry on its business and all
businesses and transactions in which it is about to engage, (c) will own property in the aggregate
having a value both at fair valuation and at fair saleable value in the ordinary course of
Borrower’s business greater than the amount required to pay its Indebtedness, including for this
purpose unliquidated, contingent, and disputed claims; (d) was not and will not be insolvent, as
that term is used and defined in Section 101(32) of the United States Bankruptcy Code and Section 2
of the Uniform Fraudulent Transfer Act; (e) does not, by
executing, delivering or performing its obligations under the Loan Documents to which it is a
party or by taking any action with respect thereto, intend to hinder, delay or defraud either its
present or future creditors; and (f) does not contemplate filing a petition in bankruptcy or for an
arrangement or reorganization or similar proceeding under any law any jurisdiction or country, and,
to the best knowledge of Borrower, is not the subject of any bankruptcy or insolvency proceedings
or similar proceedings under any law of any jurisdiction or country threatened or pending against
Borrower.

ARTICLE 9. CONDITIONS TO ADVANCES

     9.1 Conditions to Closing. The obligation of the Lenders and the Letter of Credit Bank
to make any Advances or issue any Letters of Credit hereunder is subject to satisfaction, in the
sole discretion of the Administrative Agent, the Letter of Credit Bank and the Lenders, of each of
the following conditions precedent:

     (a) Loan Documents. The Administrative Agent shall have received this Credit
Agreement and the Notes, duly executed by Borrower.

     (b) Approvals. The Administrative Agent shall have received evidence
satisfactory to it that all consents and approvals of governmental authorities and third
parties which are with respect to Borrower, necessary for, or required as a condition of the
validity and enforceability of the Loan Documents to which it is a party.

     (c) Certificate of Good Standing. The Administrative Agent shall have received
a good standing certificate (or equivalent), dated no more than thirty (30) days

35

 

prior to
the Closing Date, for Borrower from the Secretary of State (or the appropriate official) of
its state of formation.

     (d) Certificate of Assistant Secretary. The Administrative Agent shall have
received certificates of the assistant secretary or other appropriate officer of Borrower
(i) certifying that the execution, delivery and performance of the Loan Documents and other
documents contemplated hereunder to which Borrower is a party have been duly approved by all
necessary action of the governing board of Borrower, and attaching true and correct copies
of the applicable resolutions granting such approval, (ii) certifying that attached to such
certificate are true and correct copies of the Organization Documents of Borrower, together
with such copies, and (iii) certifying the names of the officers of Borrower that are
authorized to sign the Loan Documents and other documents contemplated hereunder (each an
“Authorized Officer”), together with the true signatures of such Authorized Officers. The
Administrative Agent, the Letter of Credit Bank and the Lenders may conclusively rely on
such certificate until the Administrative Agent receives a further certificate of the
assistant secretary or other appropriate officer of Borrower canceling or amending the prior
certificate and submitting the signatures of the officers named in such further certificate.

     (e) Evidence of Insurance. Borrower shall have provided the Administrative
Agent with insurance certificates and such other evidence, in form and substance
satisfactory to the Administrative Agent, of all property insurance required to be
maintained by it under the Loan Documents, together with endorsements showing the
Administrative Agent as lender loss payee thereunder; provided, however, that insurance
certificates and such other evidence, in form and substance satisfactory to the
Administrative Agent, of all liability insurance required to be maintained by it under the
Loan Documents, together with endorsements showing the Administrative Agent as additional
insured thereunder, shall be provided to the Administrative Agent not later than two Banking
Days after the date hereof.

     (f) Appointment of Agent for Service. The Administrative Agent shall have
received evidence satisfactory to the Administrative Agent that Borrower has appointed
National Registered Agents, Inc. (or other Person reasonably acceptable to the
Administrative Agent) to serve as its agent for service of process at such agent’s Denver,
Colorado office, and that National Registered Agents, Inc. (or other acceptable Person) has
executed its written acceptance of such appointment by Borrower.

     (g) No Material Change. No change shall have occurred in the condition,
financial or otherwise, or operations or prospects of Borrower since August 31, 2010, which
could reasonably be expected to result in a Material Adverse Effect.

     (h) Fees and Expenses. Borrower shall have paid the Administrative Agent, by
wire transfer of immediately available federal funds all fees and expenses then due and
payable pursuant to the Fee Letter and Sections 4.7 and 15.1 hereof.

     (i) Opinion of Counsel. Borrower shall have provided a favorable opinion of its
counsel addressed to the Administrative Agent, the Letter of Credit Bank and each of

36

 

the
present and future Lenders, covering such matters as the Administrative Agent may reasonably
require.

     (j) Compliance Certificate. Borrower shall have provided to the Administrative
Agent a Compliance Certificate effective as of November 30, 2010.

     (k) Further Assurances. Borrower shall have provided and/or executed and
delivered to the Administrative Agent such further assignments, documents or financing
statements, in form and substance satisfactory to the Administrative Agent, that Borrower is
to execute and/or deliver pursuant to the terms of the Loan Documents or as the
Administrative Agent may reasonably request.

     9.2 Conditions to Advance. The Lenders’ obligation to fund each Advance is subject to
receipt by the Administrative Agent of a properly completed Borrowing Notice; and the Lenders’
obligation to fund each Advance and the obligation of the Letter of Credit Bank to issue a Letter
of Credit is subject to the satisfaction, in the sole discretion of the Administrative Agent or
Letter of Credit Bank, as applicable, of each of the following conditions precedent, as well as
those set forth in Section 9.1 hereof, and each Borrowing Request and each LC Request by Borrower
shall constitute a representation by Borrower, upon which the Administrative Agent, Lenders, and
Letter of Credit Bank, as applicable, may rely, that the conditions set forth in this Section have
been satisfied and that the
amount of the Advance does not exceed the limits set forth in this Credit Agreement (including
without limitation Sections 2.1, 2.2 and 2.5 hereof) or that the amount of the requested Letter of
Credit does not exceed the limits set forth in this Credit Agreement (including without limitation
Section 3.1 and 3.2 hereof), as applicable:

     (a) Member Loans. As of the Advance Date, there shall be no outstanding Member
Loans.

     (b) Default. As of the Advance Date, no Default or Event of Default shall have
occurred and be continuing or would result from the disbursing of the amount of the
requested Advance or requested Letter of Credit.

     (c) Representations and Warranties. The representations and warranties of
Borrower herein shall be true and correct in all material respects on and as of the date on
which the Advance is to be made or a Letter of Credit is issued as though made on and as of
such date. Borrower shall have paid the Administrative Agent, by wire transfer of
immediately available U.S. funds all fees and expenses then due and payable pursuant to the
Fee Letter and Sections 4.7 and 15.1 hereof.

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ARTICLE 10. AFFIRMATIVE COVENANTS

     From and after the date of this Credit Agreement and until the Obligations are indefeasibly
paid in full, all Letters of Credit have expired or been fully drawn, the Letter of Credit Bank has
no obligation to issue further Letters of Credit, and the Lenders have no obligation to make any
Advance, Borrower agrees that it will observe and comply with the following covenants for the
benefit of the Administrative Agent, the Letter of Credit Bank and the Lenders:

     10.1 Books and Records. Borrower shall at all times keep proper books of record and
account, in which correct and complete entries shall be made of all its dealings, in accordance
with GAAP.

     10.2 Reports and Notices. Borrower shall provide to the Administrative Agent the
following reports, information and notices:

     (a) Annual Financial Statements. As soon as available, but in no event later
than ninety (90) days after the end of each Fiscal Year of Borrower occurring during the
term hereof, one copy of the audit report for such year and the following accompanying
financial statements prepared on a consolidated and consolidating basis (including all
footnotes thereto), including a consolidated balance sheet, a consolidated statement of
earnings, a consolidated statement of capital, and a consolidated statement of cash flow for
Borrower and its Subsidiaries, showing in comparative form the figures for the previous
Fiscal Year, all in reasonable detail, prepared in conformance with GAAP consistently
applied and certified without qualification by PricewaterhouseCoopers LLP, or other
independent public accountants of nationally recognized standing selected by Borrower and
satisfactory to the Administrative Agent, and to be accompanied by a copy of the management
letter of such accountants addressed to the board of directors of
Borrower related to such annual audit. Such annual financial statements required
pursuant to this Subsection shall be accompanied by a Compliance Certificate signed by
Borrower’s Vice President of Finance, corporate treasurer, or other officer of Borrower
acceptable to the Administrative Agent.

     (b) Quarterly Financial Statements. As soon as available but in no event more
than forty-five (45) days after the end of each Fiscal Quarter (except the last Fiscal
Quarter of Borrower’s Fiscal Year) the following financial statements prepared on a
consolidated and consolidating basis or other information concerning the operations of
Borrower and its Subsidiaries for such Fiscal Quarter, the Fiscal Year to date, and for the
corresponding periods of the preceding Fiscal Year, all prepared in accordance with GAAP
consistently applied: (i) a balance sheet, (ii) a summary of earnings, (iii) a statement of
cash flows, and (iv) such other statements as the Administrative Agent may reasonably
request. Such quarterly financial statements required pursuant to this Subsection shall be
accompanied by a Compliance Certificate signed by Borrower’s Vice President of Finance,
corporate treasurer, or other officer of Borrower acceptable to the Administrative Agent
(subject to normal year-end adjustments).

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     (c) Notice of Default. As soon as the existence of any Default or Event of
Default becomes known to any officer of Borrower, prompt written notice of such Default or
Event of Default, the nature and status thereof, and the action being taken or proposed to
be taken with respect thereto.

     (d) ERISA Reports. As soon as possible and in any event within ten (10) days
after Borrower or any Subsidiary knows or has reason to know that (i) any Reportable Event
or Prohibited Transaction has occurred with respect to any Borrower Benefit Plan, (ii) any
event or circumstance has occurred that has resulted or could reasonably be expected to
result in liability to Borrower or any of its ERISA Affiliates under Title IV of ERISA to a
Borrower Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount that could
reasonably be expected to have a Material Adverse Effect, (iii) the PBGC or Borrower or any
Subsidiary has instituted or will institute proceedings under Title IV of ERISA to terminate
any Borrower Benefit Plan, or (iv) Borrower, any Subsidiary or any ERISA Affiliate has
completely or partially withdrawn from a Multiemployer Plan, or that a Borrower Benefit Plan
which is a Multiemployer Plan is in reorganization (within the meaning of Section 4241 of
ERISA), is insolvent (within the meaning of Section 4245 of ERISA) or is terminating, a
certificate of the Vice President of Finance or corporate treasurer of Borrower or such
Subsidiary or ERISA Affiliate setting forth details as to such Reportable Event or
Prohibited Transaction or Borrower Benefit Plan termination or withdrawal or reorganization
or insolvency and the action Borrower or such Subsidiary or ERISA Affiliate proposes to take
with respect thereto, together with a copy of the notice of such Reportable Event to the
PBGC; provided, however, that notwithstanding the foregoing, no reporting is required under
this subsection unless the matter(s), individually or in the aggregate, result, or could be
reasonably expected to result, in aggregate obligations or liabilities of Borrower and/or
its Subsidiaries or ERISA Affiliates in excess of five million dollars ($5,000,000).

     (e) Pension Plans. As soon as possible and in any event within ten (10) days
after Borrower fails to make any quarterly contribution required with respect to any
Borrower Pension Plan under Section 430(j)(3) of the Code, or fails to make a contribution
required (or seeks a waiver of any contribution required) with respect to any Borrower
Pension Plan under Section 412 of the Code, a statement of Borrower’s Vice President of
Finance or corporate treasurer setting forth details as to such failure and the action that
Borrower proposes to take with respect thereto, together with a copy of any notice of such
failure required to be provided to the PBGC, or contribution waiver request filed with the
Internal Revenue Service.

     (f) Notice of Litigation. Promptly after the commencement thereof, notice of
all actions, suits, arbitration and any other proceedings before any Governmental Authority,
affecting Borrower which, if determined adversely to Borrower, could reasonably be expected
to require Borrower to have to pay or deliver assets having a value of five million dollars
($5,000,000) or more (whether or not the claim is covered by insurance) or, independent of
the amount to be paid or the value of the assets to be delivered, could reasonably be
expected to result in a Material Adverse Effect.

39

 

     (g) Notice of Material Adverse Effect. Promptly after Borrower obtains
knowledge thereof, notice of any matter which, alone or when considered together with other
matters, has resulted, or could reasonably be expected to result, in a Material Adverse
Effect.

     (h) Notice of Environmental Proceedings. Without limiting the provisions of
Section 10.2(f) hereof, promptly after Borrower’s receipt thereof, notice of the receipt of
all pleadings, orders, complaints, indictments, or other communication alleging a condition
that may require Borrower or any Subsidiary to undertake or to contribute to a cleanup or
other response under Environmental Regulations, or which seeks penalties, damages,
injunctive relief, or criminal sanctions related to alleged violations of such laws, or
which claims personal injury or property damage to any person as a result of environmental
factors or conditions or which, if adversely determined, could reasonably be expected to
have a Material Adverse Effect.

     (i) Regulatory and Other Notices. Promptly after Borrower’s receipt thereof,
copies of any notices or other communications received from any Governmental Authority with
respect to any matter or proceeding the effect of which could reasonably be expected to have
a Material Adverse Effect.

     (j) Adverse Action Regarding Required Licenses and Intellectual Property. As
soon as Borrower learns that any petition, action, investigation, notice of violation or
apparent liability, notice of forfeiture, order to show cause, complaint or proceeding is
pending, or, to the best of Borrower’s knowledge, threatened, to seek to revoke, cancel,
suspend, modify, or limit any of the Required Licenses or any of the Intellectual Property,
prompt written notice thereof. Borrower shall contest any such action in a Good Faith
Contest.

     (k) Annual Business Plan. No later than September 15 of each year, a copy of
Borrower’s annual business plan (“Business Plan”) showing financial statement forecasts for
the Fiscal Year commencing on September 1 of such year, and including a summary of capital
expenditures, details of costs, yields and expenses, and other assumptions used in preparing
the forecasts.

     (l) Evidence of Insurance. No later than 30 days after the end of each Fiscal
Year of Borrower, updated certificates of insurance showing the Administrative Agent as
additional insured and lender loss payee thereunder, and otherwise satisfying all
requirements specified in the Loan Documents.

     (m) Additional Information. With reasonable promptness, such other information
respecting the condition or operations, financial or otherwise, of Borrower or any
Subsidiary as the Administrative Agent, the Letter of Credit Bank or any Lender may from
time to time reasonably request.

     10.3 Eligibility. Borrower shall preserve and maintain its status as an entity
eligible to borrow from CoBank.

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     10.4 Maintenance of Existence and Qualification. Borrower shall maintain its corporate
existence in good standing under the laws of its state of organization. Borrower will qualify and
remain qualified as a foreign corporation in each jurisdiction in which such qualification is
necessary in view of its business, operations and properties except where the failure to so qualify
has not and could not reasonably be expected to result in a Material Adverse Effect.

     10.5 Compliance with Legal Requirements and Agreements. Borrower shall: (a) comply
with all laws, rules, regulations and orders applicable to Borrower or its business unless such
failure to comply is the subject of a Good Faith Contest; and (b) comply with all agreements,
indentures, mortgages, and other instruments to which it is a party or by which it or any of its
property is bound; provided, however, that the failure of Borrower to comply with this sentence in
any instance not directly involving the Administrative Agent or a Lender shall not constitute an
Event of Default unless such failure would have a Material Adverse Effect. In addition, Borrower
shall (i) ensure that no Person who owns a controlling interest in or otherwise controls Borrower
is or shall be listed on the Specially Designated Nationals and Blocked Person List or other
similar lists maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the
Treasury or included in any Executive Orders, (ii) not use or permit the use of the proceeds of any
Advance to violate any of the foreign asset control regulations of OFAC or any enabling statute or
Executive Order relating thereto, and (iii) comply with all applicable Bank Secrecy Act laws and
regulations, as amended.

     10.6 Compliance with Environmental Laws. Without limiting the provisions of Section
10.5 of this Credit Agreement, Borrower shall, and shall cause each Subsidiary to, comply in all
material respects with, and take all reasonable steps necessary to cause all Persons occupying or
present on any properties owned or leased by Borrower (or any Subsidiary, as applicable) to comply
with, all Environmental
Regulations, the failure to comply with which would have a Material Adverse Effect (with
respect to Borrower or any such Subsidiary) or unless such failure to comply is the subject of a
Good Faith Contest.

     10.7 Taxes. Borrower shall cause to be paid when due (a) all taxes, assessments, and
other governmental charges upon it, its income, its sales, its properties, (b) federal and state
taxes withheld from its employees’ earnings, and (c) all lawful claims for labor, materials and
supplies that, if unpaid, might by law become a Lien or charge upon any properties of Borrower, in
each case unless (i) the failure to pay such taxes, assessments, or other charges or claims could
not reasonably be expected to result in a Material Adverse Effect, or (ii) such taxes, assessments,
or other charges or claims are the subject of a Good Faith Contest and Borrower has established
adequate reserves therefor in accordance with GAAP.

     10.8 Insurance. Borrower shall keep all of its insurable property insured at all times
by an insurance carrier or carriers approved by the Administrative Agent, against all risks covered
by a special form policy as well as liability, worker’s compensation, business interruption, boiler
and machinery and such other insurance as the Administrative Agent may reasonably require, which
insurance shall be primary and in amounts and with deductibles or maximum payouts customarily
carried by entities in similar lines of business. Borrower shall also maintain fidelity coverage
(including employee dishonesty) on such officers and employees and in such amounts as customarily
carried by corporations engaged in comparable businesses and comparably

41

 

situated. The policy or
policies evidencing all insurance referred to in this Section and receipts for the payment of
premiums thereon or certificates of such insurance satisfactory to the Administrative Agent shall
be delivered to and held by the Administrative Agent. No later than forty (40) days prior to
expiration, Borrower shall give the Administrative Agent (a) satisfactory written evidence of
renewal of all such policies with premiums paid, or (b) a written report as to the steps being
taken by Borrower to renew or replace all such policies, provided that notwithstanding the receipt
of such written report, the Administrative Agent may at any time thereafter give Borrower written
notice to provide the Administrative Agent with such evidence as described in clause (a), in which
case Borrower must do so within ten (10) days of such notice. Borrower agrees to pay all premiums
on such insurance as they become due, and will not permit any condition to exist which would wholly
or partially invalidate any insurance thereon.

     10.9 Maintenance of Properties. Borrower shall maintain, keep and preserve all of its
material properties (tangible and intangible) necessary or used in the proper conduct of its
business in good working order and condition, ordinary wear and tear excepted, and shall cause to
be made all repairs, renewals, replacements, betterments and improvements thereof, all as in the
sole judgment of Borrower may be reasonably necessary so that the business carried on in connection
therewith may be properly and advantageously conducted at all times.

     10.10 Payment of Liabilities. Borrower shall pay all liabilities (including, without
limitation: (a) any indebtedness for borrowed money or for the deferred purchase price of property
or services; (b) any obligations under leases which have or should have been characterized as
Capital Leases; and (c) any contingent liabilities, such
as guaranties, for the obligations of others relating to indebtedness for borrowed money or
for the deferred purchase price of property or services or relating to obligations under leases
which have or should have been characterized as Capital Leases) as they become due beyond any
period of grace under the instrument creating such liabilities, unless (with the exception of the
Obligations) (x) the failure to pay such liabilities within such time period could not reasonably
be expected to result in a Material Adverse Effect, or (y) they are subject to a Good Faith
Contest, and such contesting will not result in a Material Adverse Effect.

     10.11 Inspection. Borrower shall permit the Administrative Agent, the Letter of Credit
Bank or any Lender or their agents, during normal business hours or at such other times as the
parties may agree, to examine, and make copies of or abstracts from, Borrower’s properties, books,
and records, and to discuss Borrower’s affairs, finances, operations, and accounts with its
respective officers, directors, employees, and independent certified public accountants; provided,
that, in the case of each meeting with the independent accountants Borrower is given an opportunity
to have a representative present at such meeting.

     10.12 Required Licenses; Intellectual Property. Borrower shall duly and lawfully
obtain, protect and maintain in full force and effect all Required Licenses and Intellectual
Property as appropriate for the business being conducted and properties owned by Borrower at any
given time.

     10.13 ERISA. Borrower shall make or cause to be made, and cause each Subsidiary to
make or cause to be made, all payments or contributions to all Borrower Benefit Plans covered

42

 

by
Title IV of ERISA, which are necessary to enable those Borrower Benefit Plans to continuously meet
all minimum funding standards or requirements.

     10.14 Maintenance of Commodity Position. Borrower shall observe risk management
policies, including protection of its commodity inventory holdings or commitments to buy or sell
commodities against adverse price movements through hedge agreements or otherwise, to minimize
losses and protect margins in commodity production, storage, processing and marketing, which
policies shall be consistent with its existing risk management policies, shall be policies as are
recognized as financially sound and reputable by prudent business persons in the commodity
business, and shall be consistent with risk management policies observed in the petroleum refining
and distribution industry in general.

     10.15 Financial Covenants. Borrower shall maintain the following financial covenants,
measured as a consolidation of the results of Borrower and its Subsidiaries:

     (a) Funded Debt to EBITDA. As of each Covenant Compliance Date, a ratio of
Funded Debt divided by EBITDA of not greater than 3.00 to 1.00 during the Covenant
Computation Period ending on such date.

     (b) Minimum Net Worth. As of each Covenant Compliance Date, Net Worth of not
less than $600,000,000.

     (c) Interest Coverage Ratio. As of each Covenant Compliance Date, the Interest
Coverage Ratio of not less than 4.00 to 1.00 during the Covenant Computation Period ending
on such date.

     (d) Minimum Working Capital. At all times, Working Capital of not less than
$75,000,000.

ARTICLE 11. NEGATIVE COVENANTS

     From and after the date of this Credit Agreement until the Obligations are indefeasibly paid
in full, all Letters of Credit have expired or been fully drawn, the Letter of Credit Bank has no
obligation to issue further Letters of Credit, and the Lenders have no obligation to make any
Advance, Borrower agrees that it will observe and comply with the following covenants:

     11.1 Borrowing. Borrower shall not create, incur, assume or permit to exist, directly
or indirectly, any Indebtedness, except for: (a) Indebtedness of Borrower arising under this
Credit Agreement and the other Loan Documents; (b) trade payables arising in the ordinary course of
business; (c) current operating liabilities (other than for borrowed money) incurred in the
ordinary course of business; (d) Indebtedness on the date hereof as set forth in Exhibit 11.1
attached hereto; (e) Indebtedness arising out of Subordinated Member Loans; (f) Indebtedness under
the Bonds so long as Borrower is the sole owner and holder of all of the Bonds; and (g) other
Indebtedness, including without limitation, Indebtedness arising under guarantees permitted under
Section 11.5 hereof and Indebtedness arising under Capital leases, in an aggregate maximum amount
of principal outstanding at any one time of $40,000,000.

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     11.2 No Other Businesses. Borrower shall not engage in any material respects in any
business activity or operations other than operations or activities (a) in the petroleum refining
and distribution industry, or (b) which are not substantially different from or are related to its
present business activities or operations.

     11.3 Liens. Borrower shall not create, incur, assume, or suffer to exist any Lien on
any of its real or personal properties (including, without limitation, leasehold interests,
leasehold improvements and any other interest in real property or fixtures, now owned or hereafter
acquired), except:

     (a) Liens for taxes or assessments or other charges or levies of any Governmental
Authority, that are not delinquent or if delinquent (i) are the subject of a Good Faith
Contest but in no event past the time when a penalty would be incurred, and (ii) the
aggregate amount of liabilities so secured (including interest and penalties) does not
exceed $10,000,000 at any one time outstanding;

     (b) Liens imposed by law, such as mechanic’s, worker’s, repairman’s, miner’s,
agister’s, attorney’s, materialmen’s, landlord’s, warehousemen’s and carrier’s Liens and
other similar Liens which are securing obligations incurred in the ordinary course of
business for sums not yet due and payable or if due and payable which are the subject of a
Good Faith Contest;

     (c) Liens under workers’ compensation, unemployment insurance, social security or
similar legislation (other than ERISA), or to secure payments of premiums for insurance
purchased in the ordinary course of business, or to secure the performance of tenders,
statutory obligations, surety and appearance bonds and bids, bonds for release of an
attachment, stay of execution or injunction, leases, government contracts, performance and
return-of-money bonds and other similar obligations, all of which are incurred in the
ordinary course of business and not in connection with the borrowing of money;

     (d) Any attachment or judgment Lien, the time for appeal or petition for rehearing of
which shall not have expired or in respect of which Borrower is protected in all material
respects by insurance or for the payment of which adequate reserves have been provided,
provided that the execution or other enforcement of such Liens is effectively stayed and the
claims secured thereby are the subject of a Good Faith Contest, and provided further that
the aggregate amount of liabilities of Borrower so secured (including interest and
penalties) shall not be in excess of $1,000,000 at any one time outstanding;

     (e) Easements, rights-of-way, restrictions, encroachments, covenants, servitudes,
zoning and other similar encumbrances which, in the aggregate, do not materially interfere
with the occupation, use and enjoyment by Borrower of the property or assets encumbered
thereby in the normal course of its business or materially impair the value of the property
subject thereto;

     (f) Liens on land, buildings and equipment existing at the time of their acquisition or
Liens to secure the payment of all or any part of the purchase price of such

44

 

land, buildings
or equipment or to secure Funded Debt incurred prior to, at the time of, or within
one-hundred eighty (180) days after the acquisition of such property for the purpose of
financing all or any part of the purchase price thereof, provided that any such Liens shall
not encumber any other property of Borrower;

     (g) Liens on assets acquired in a permitted merger and acquisition, but only to the
extent that such Liens shall not encumber any other property of Borrower;

     (h) Liens on financed property created or incurred in connection with leases,
mortgages, conditional sales contracts, security interests or arrangements for the retention
of title entered into by Borrower to secure “industrial revenue bonds” as defined in Section
103(b)(2) of the Code and treated as obligations described in legislation similar to the
provisions of said Sections of the Code enacted in any State of the United States or Puerto
Rico, which are issued to finance property useful and intended to be used in carrying on the
business of Borrower, provided that upon creation of any such Lien Borrower shall incur
Indebtedness secured thereby only in conformity with the provisions of Section 11.1 hereof;

     (i) CoBank’s statutory Lien in the CoBank Equities, and (without limiting the
foregoing) Liens of any cooperative on Investments by Borrower in the stock, participation
certificates, or allocated reserves of such cooperative owned by Borrower;

     (j) All precautionary filings of financing statements under the Uniform Commercial Code
which cover property that is made available to or used by Borrower pursuant to the terms of
an Operating Lease or Capital Lease;

     (k) Liens securing its reimbursement obligations under any letter of credit issued in
connection with the acquisition of an asset; provided that (i) the Lien attaches only to
such asset, and (ii) the Lien is released upon satisfaction of such reimbursement
obligation; and

     (l) Liens in existence on the date hereof as set forth in Exhibit 11.3 attached hereto.

     11.4 Sale of Assets. Borrower shall not sell, convey, assign, lease or otherwise
transfer or dispose of, voluntarily, by operation of law or otherwise, any material part of its now
owned or hereafter acquired assets, except: (a) the sale of inventory, equipment and fixtures
disposed of in the ordinary course of business, (b) the sale or other disposition of assets no
longer necessary or useful for the conduct of its business, and (c) the sale or other disposition
of assets in an aggregate amount not to exceed $12,000,000 during any Fiscal Year (valued at the
greater of book or market value).

     11.5 Liabilities of Others. Borrower shall not assume, guarantee, become liable as a
surety, endorse, contingently agree to purchase, or otherwise be or become liable, directly or
indirectly (including, but not limited to, by means of a maintenance agreement, an asset or stock
purchase agreement, or any other agreement designed to ensure any creditor against loss), for or on
account of the obligation of any Person, except (a) by the endorsement of negotiable instruments
for deposit or collection or similar transactions in the ordinary course of Borrower’s

45

 

business,
and (b) subject to the limitations contained in Section 11.1 hereof, guarantees made from time to
time by Borrower in the ordinary course of its business.

     11.6 Loans. Borrower shall not lend or advance money, credit, or property to any
Person, except (a) trade credit extended in the ordinary course of business; (b) loans to
Borrower’s wholly-owned Subsidiary Jayhawk Pipeline, L.L.C., provided that all such loans to
Jayhawk Pipeline, L.L.C., when aggregated with all of the Investments in Jayhawk Pipeline, L.L.C.
made pursuant to, and as permitted in, Section 11.8(i) hereof, do not exceed $75,000,000; and (c)
loans to Borrower’s partially-owned Subsidiary Kaw Pipe Line Company in an aggregate amount not to
exceed $5,000,000.

     11.7 Merger; Acquisitions; Business Form; Etc. Borrower shall not liquidate, dissolve,
terminate or suspend its business operations or otherwise fail to operate its business in the
ordinary course, or merge into or consolidate with any other Person, or permit any other Person to
merge into or consolidate with it, or sell, lease, assign, transfer or otherwise dispose of all or
substantially all of its assets, or acquire all or substantially all of the assets of any Person,
or form or create any new Subsidiary or Affiliate, change its business form from a cooperative
corporation, or commence operations under any other name, organization, or entity, including any
joint venture; provided that Borrower may, so long as there is no Default or Event of
Default which has occurred and is
continuing, acquire all or substantially all of the assets of any Person so long as (a) the
aggregate consideration for all such acquisitions does not exceed $5,000,000 during any Fiscal
Year, and (b) Borrower has provided the Administrative Agent with pro-forma financial statements
and calculations demonstrating to the Administrative Agent’s satisfaction that Borrower will be in
compliance with all financial related covenants contained in this Credit Agreement after giving
effect to each such acquisition.

     11.8 Investments. Except for the purchase of CoBank Equities, Borrower shall not own,
purchase or acquire any stock, obligations or securities of, or any other interest in, or make any
capital contribution to, any Person, except that Borrower may own, purchase or acquire:

     (a) commercial paper maturing not in excess of one year from the date of acquisition
and rated PI by Moody’s Investors Service, Inc. or Al by Standard & Poor’s Corporation on
the date of acquisition;

     (b) certificates of deposit in North American commercial banks rated C or better by
Keefe, Bruyette & Woods, Inc. or 3 or better by Cates Consulting Analysts, maturing not in
excess of one year from the date of acquisition;

     (c) obligations of the United States government or any agency thereof, the obligations
of which are guaranteed by the United States government, maturing, in each case, not in
excess of one year from the date of acquisition;

     (d) repurchase agreements of any bank or trust company incorporated under. the laws of
the United States of America or any state thereof and fully secured by a pledge of
obligations issued or fully and unconditionally guaranteed by the United States government;

46

 

     (e) registered investment funds which invest solely in one or more of the Investments
described in subparts (a) through (d) of this Section 11.8;

     (f) Investments made prior to the Closing Date in Persons identified on Exhibit 11.8
hereto;

     (g) Investments in the form of non-cash patronage dividends in any Person;

     (h) the Bonds;

     (i) Investments made on and after October 25, 2007 in Borrower’s wholly owned
Subsidiary Jayhawk Pipeline, L.L.C.; provided that all such Investments, when aggregated
with the amount of all loans to Jayhawk Pipeline, L.L.C., do not exceed $75,000,000;

     (j) the CoBank Equities and any other stock or securities of, or Investments in, CoBank
or its investment services or programs; and

     (k) Investments, in addition to those permitted by clauses (a) through (j) above, in an
aggregate amount not exceeding $15,000,000.

     11.9 Transactions With Related Parties. Borrower shall not purchase, acquire, provide,
or sell any equipment, other personal property, real property or services from or to any Affiliate
or Subsidiary of Borrower, except in the ordinary course and pursuant to the reasonable
requirements of Borrower’s business and upon fair and reasonable terms no less favorable than would
be obtained by Borrower in a comparable arm’s-length transaction with an unrelated Person.

     11.10 Restricted Payments. Borrower shall not, in any Fiscal Year (a) make any
Restricted Payment (other than revolvements and retirements of equity) (i) in an aggregate amount
that would exceed Borrower’s Patronage Refunds from the current Fiscal Year, or (ii) if a Default
or an Event of Default has occurred and is continuing at the time of such Restricted Payment or
would result therefrom; or (b) make any revolvement or retirements of equity if a Default or an
Event of Default has occurred and is continuing at the time of such Restricted Payment or would
result therefrom; provided that regardless of whether a Default or an Event of Default has occurred
and is continuing at the time of such Restricted Payment or would result therefrom, Borrower may
(x) make cash payments to its Members in an aggregate amount in any Fiscal Year that does not
exceed twenty-one percent (21%) of Borrower’s Patronage Refunds for the current Fiscal Year and (y)
make age retirement, estate or similar payments.

     11.11 Change in Fiscal Year. Borrower shall not change its Fiscal Year from a year
ending on August 31 unless required to do so by the Internal Revenue Service, in which case
Borrower agrees to amend the terms Fiscal Quarter and Fiscal Year, as used herein, as the
Administrative Agent reasonably deems necessary.

     11.12 ERISA. Borrower shall not: (a) engage in or permit any transaction which could
result in a Prohibited Transaction or in the imposition of an excise tax pursuant to Section 4975
of the Code; (b) engage in or permit any transaction or other event which could result in a

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Reportable Event for any Borrower Pension Plan; (c) fail to make full payment when due of all
amounts which, under the provisions of any Borrower Benefit Plan, Borrower is required to pay as
contributions thereto; (d) permit to exist any funding shortfall (as such term is defined in
Section 430(c)(4) of the Code) in excess of $25,000 with respect to any Borrower Pension Plan; (e)
fail to make any payments to any Multiemployer Plan that Borrower may be required to make under any
agreement relating to such Multiemployer Plan or any law pertaining thereto; or (f) terminate any
Borrower Pension Plan in a manner which could result in the imposition of a lien on any property of
Borrower pursuant to Section 4068 of ERISA. Borrower shall not terminate any Borrower Pension Plan
so as to result in any liability to the PBGC. Borrower’s failure to comply with any of the
foregoing provisions of this Section shall not constitute a breach of this Credit Agreement or an
Event of Default unless such failure has a Material Adverse Effect.

     11.13 Member Loans. Notwithstanding any provision in this Credit Agreement, including,
without limitation, any restriction contained in Sections 11.6, 11.8, or 11.10 hereof, Borrower
may, at any time so long as all Advances,
including all Overnight Advances, have been repaid in full and there is no pending Borrowing
Notice or Overnight Advance Request in existence, make Member Loans to its Members funded by
Borrower’s cash on hand, subject to the following conditions and limitations:

     (a) Aggregate and Individual Amounts. The aggregate committed amount of all
such Member Loans may not exceed Borrower’s Excess Working Capital; and the aggregate
committed and (without duplication) outstanding amount of Member Loans to any individual
Member may not, except as provided in Subsection 11.13(c) hereof, exceed the product of such
individual Member’s Member Percentage multiplied by Borrower’s Excess Working Capital as
measured at the time of making such commitment.

     (b) Member Loan Documentation and Maturity Date. Each Member Loan must be
evidenced by a written credit and security agreement and revolving loan note in
substantially the form of Exhibit 11.13(b) hereto, which must be dated no later than the
date of the first advance thereunder, and, as to any advance thereunder, must be payable in
full as to interest and principal within no more than thirty-one (31) days after the date of
such advance; provided that, notwithstanding the provisions contained in the form
attached hereto as Exhibit 11.13(b), Borrower may, at its discretion, make any Member Loan
on an unsecured basis.

     (c) Additional Aggregate Individual Amounts. The aggregate committed and
(without duplication) outstanding amount of Member Loans to any individual Member may exceed
the product of such individual Member’s Member Percentage multiplied by Borrower’s Excess
Working Capital; provided that the following conditions are satisfied: (i) such amount may
not exceed the lesser of the following: (x) two times the product of such individual
Member’s Member Percentage multiplied by Borrower’s Excess Working Capital as measured at
the time of making such commitment, or (y) the sum of (A) the product of such individual
Member’s Member Percentage multiplied by Borrower’s Excess Working Capital, plus (B) the
amount of available credit such Member has under a credit facility satisfactory to Borrower
(“Revolving Credit Facility”), in each case as measured at the time of (but without taking
into effect the

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consequences of) making such commitment; (ii) such Member Loan is evidenced
by a written credit and security agreement and revolving loan note in substantially the form
of Exhibit 11.13(b) hereto which must contain (1) a representation by such Member that the
amount of credit available to such Member under the Revolving Credit Facility is in excess
of the difference between (A) the face amount of such note and (B) the product of such
individual Member’s Member percentage multiplied by Borrower’s Excess Working Capital, (2) a
covenant that such Member will at no time request an advance in an amount which would result
in the outstanding balance under its Member Loan exceeding the limits set forth in clause
(i) of this Subsection 11.13(c), and (3) a covenant that such Member will promptly upon
discovery, advise Borrower of the fact and amount of any decrease in the amount of credit
available to such Member under the Revolving Credit Facility; provided that
notwithstanding the provisions contained in the form attached hereto as Exhibit 11.13(b),
Borrower may, at its discretion, make any Member Loan on an unsecured basis.

ARTICLE 12. INDEMNIFICATION

     12.1 General; Stamp Taxes; Intangibles Tax. Borrower agrees to indemnify and hold the
Administrative Agent, the Letter of Credit Bank and each Lender and their respective directors,
officers, employees, agents, professional advisers and representatives (“Indemnified Parties”)
harmless from and against any and all claims, damages, losses, liabilities, costs or expenses
whatsoever which any Indemnified Party may incur (or which may be claimed against any such
Indemnified Party by any Person), including attorneys’ fees incurred by any Indemnified Party,
arising out of or resulting from: (a) the material inaccuracy of any representation or warranty of
or with respect to Borrower in this Credit Agreement or the other Loan Documents; (b) the material
failure of Borrower to perform or comply with any covenant or obligation of Borrower under this
Credit Agreement or the other Loan Documents; (c) the exercise by any Indemnified Party of any
right or remedy set forth in this Credit Agreement or the other Loan Documents; or (d) all acts or
omissions of the beneficiary of any Letter of Credit, and for such purposes, such beneficiary shall
be deemed Borrower’s agent; provided that Borrower shall have no obligation to indemnify any
Indemnified Party against claims, damages, losses, liabilities, costs or expenses to the extent
that a court of competent jurisdiction renders a final non-appealable determination that the
foregoing are solely the result of the willful misconduct or gross negligence of such Indemnified
Party. In addition, Borrower agrees to indemnify and hold the Indemnified Parties harmless from and
against any and all claims, damages, losses, liabilities, costs or expenses whatsoever which the
any Indemnified Party may incur (or which may be claimed against any such Indemnified Party by any
Person), including attorneys’ fees incurred by any Indemnified Party, arising out of or resulting
from the imposition or nonpayment by Borrower of any stamp tax, intangibles tax, or similar tax
imposed by any state, including any amounts owing by virtue of the assertion that the property
valuation used to calculate any such tax was understated. Borrower shall have the right to assume
the defense of any claim as would give rise to Borrower’s indemnification obligation under this
Section with counsel of Borrower’s choosing so long as such defense is being diligently and
properly conducted and Borrower shall establish to the Indemnified Party’s satisfaction that the
amount of such claims are not, and will not be, material in comparison to the liquid and
unrestricted assets of Borrower available to respond to any award which may be granted on account
of such claim. So long as the conditions of the preceding sentence are met, Indemnified Party shall
have no

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further right to reimbursement of attorneys’ fees incurred thereafter. The obligation to
indemnify set forth in this Section shall survive the termination of this Credit Agreement and the
other Loan Documents.

     12.2 Indemnification Relating to Hazardous Substances. Borrower shall not locate,
produce, treat, transport, incorporate, discharge, emit, release, deposit or dispose of any
Hazardous Substance in, upon, under, over or from any property owned or held by Borrower, except in
accordance with all Environmental Regulations; Borrower shall not permit any Hazardous Substance to
be located, produced, treated, transported, incorporated, discharged, emitted, released, deposited,
disposed of or to escape in, upon, under, over or from any property owned or held by Borrower,
except in accordance with Environmental Regulations; and Borrower shall comply with all
Environmental Regulations which are applicable to such property. Borrower shall indemnify the
Indemnified Parties against, and shall reimburse the Indemnified Parties for,
any and all claims, demands, judgments, penalties, liabilities, costs, damages and expenses,
including court costs and attorneys’ fees incurred by the Indemnified Parties (prior to trial, at
trial and on appeal) in any action against or involving the Indemnified Parties, resulting from any
breach of the foregoing covenants in this Section or the covenants in Section 10.6 hereof, or from
the discovery of any Hazardous Substance in, upon, under or over, or emanating from, such property,
it being the intent of Borrower and the Indemnified Parties that the Indemnified Parties shall have
no liability or responsibility for damage or injury to human health, the environmental or natural
resources caused by, for abatement and/or clean-up of, or otherwise with respect to, Hazardous
Substances as the result of any Indemnified Party exercising any of its rights or remedies with
respect thereto, including but not limited to becoming the owner thereof by foreclosure or
conveyance in lieu of foreclosure of a judgment lien; provided that such indemnification as
it applies to the exercise by any Indemnified Party of its rights or remedies with respect to the
Loan Documents shall not apply to claims arising solely with respect to Hazardous Substances
brought onto such property by such Indemnified Party while engaged in activities other than
operations substantially the same as the operations previously conducted on such property by
Borrower. The foregoing covenants of this Section shall be deemed continuing covenants for the
benefit of the Indemnified Parties, and any successors and assigns of the Indemnified Parties,
including but not limited to any transferee of the title of the Administrative Agent, the Letter of
Credit Bank or any Lender or any subsequent owner of the property, and shall survive the
satisfaction or release of any Lien, any foreclosure of any Lien and/or any acquisition of title to
the property or any part thereof by any Indemnified Party, or anyone claiming by, through or under
any Indemnified Party or Borrower by deed in lieu of foreclosure or otherwise. Any amounts covered
by the foregoing indemnification shall bear interest from the date incurred at the Default Interest
Rate, which interest shall be payable on demand. The indemnification and covenants of this Section
shall survive the termination of this Credit Agreement and the other Loan Documents.

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ARTICLE 13. EVENTS OF DEFAULT; RIGHTS AND REMEDIES

     13.1 Events of Default. The occurrence of any of the following events (each, an “Event
of Default”) shall, at the option of the Administrative Agent, make all Obligations immediately due
and payable (provided, that in the case of an Event of Default under Subsection 13.1(f) all amounts
owing under the Notes and the other Obligations shall automatically and immediately become due and
payable without any action by or on behalf of the Administrative Agent), and the Administrative
Agent may exercise all rights and remedies for the collection of any amounts outstanding hereunder
and take whatever action it deems necessary to secure itself, all without notice of default,
presentment or demand for payment, protest or notice of nonpayment or dishonor, or other notices or
demands of any kind or character:

     (a) Failure of Borrower to pay within five (5) days of the date when due, whether by
acceleration or otherwise, any of the Obligations in accordance with this Credit Agreement
or the other Loan Documents.

     (b) Any representation or warranty set forth in any Loan Document, any Borrowing
Notice, any financial statements or reports or projections or forecasts, or in
connection with any transaction contemplated by any such document, shall prove in any
material respect to have been false or misleading when made or furnished by Borrower.

     (c) Any default by Borrower in the performance or compliance with the covenants,
promises, conditions or provisions of Sections 10.3, 10.8, 10.11, 10.15, 11.1, 11.3, 11.4,
11.5, 11.7, 11.10, 11.12, or 11.13 of this Credit Agreement.

     (d) Any default by Borrower in the performance or compliance with the covenants,
promises, conditions or provisions of Sections 10.12, 10.13, 11.6, 11.8, 11.9, or 11.11 of
this Credit Agreement, and such default continues for fifteen (15) days after Borrower
learns of such default, whether by Borrower’s own discovery or through notice from the
Administrative Agent.

     (e) The failure of Borrower to pay when due, or failure to perform or observe any other
obligation or condition with respect to any of the following obligations to any Person,
beyond any period of grace under the instrument creating such obligation: (i) any
indebtedness for borrowed money or for the deferred purchase price of property or services,
(ii) any obligations under leases which have or should have been characterized as Capital
Leases, or (iii) any contingent liabilities, such as guaranties and letters of credit, for
the obligations of others relating to indebtedness for borrowed money or for the deferred
purchase price of property or services or relating to obligations under leases which have or
should have been characterized as Capital Leases; provided that no such failure will be
deemed to be an Event of Default hereunder unless and until the aggregate amount owing under
obligations with respect to which such failures have occurred and are continuing is at least
$1,000,000.

     (f) (i) Borrower shall be or become insolvent, however defined; or admit in writing its
inability to pay debts as they mature; or make a general assignment for the benefit of its
creditors; or cease to do business in the ordinary course; or (ii) Borrower

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shall institute
any bankruptcy, insolvency, reorganization, dissolution, liquidation or similar proceeding
relating to itself under the laws of any jurisdiction; or Borrower shall take any action to
authorize any such proceeding; or any such proceeding shall be instituted against Borrower
and shall not be dismissed or discharged within 60 days after its commencement; or Borrower
shall admit all of the material allegations with respect to any such proceeding; or an order
for relief or similar order shall be entered in any such proceeding; or (iii) Borrower shall
apply for the appointment of any receiver, trustee or similar officer for itself or for all
or substantially all of its property; or Borrower shall take any action to authorize any
such appointment; or an action for any such appointment shall be commenced by any other
Person and such action shall not be dismissed or discharged within 60 days after its
commencement; or Borrower shall admit all of the material allegations with respect to any
such action; or any such appointment shall be made, with or without the consent of Borrower;
or (iv) a warrant, writ of attachment, execution or similar process shall be issued or
levied against any substantial part of the property of Borrower and shall not be fully
released, stayed, vacated or bonded within 60 days after such issuance or levy; or (v) a
petition shall be filed by Borrower under the United States Bankruptcy Code naming Borrower
as debtor; or an involuntary petition shall be filed against Borrower under the United
States Bankruptcy Code, and such
petition shall not have been dismissed within 60 days after such filing; or an order
for relief shall be entered in any case under the United States Bankruptcy Code naming
Borrower as debtor.

     (g) Any default by Borrower in the performance or compliance with any other provision
of this Credit Agreement or any other Loan Document not constituting an Event of Default
under any of the preceding subparagraphs of this Section 13.1, and such default continues
for thirty (30) days after Borrower learns of such default, whether by Borrower’s own
discovery or through notice from the Administrative Agent.

     (h) The entry of one or more judgments in an aggregate amount in excess of $1,000,000
against Borrower not subject to a Good Faith Contest, or discharged or paid, in each case,
within thirty (30) days after entry.

     (i) In the event (i) CHS, Inc. shall (A) cease to own more than sixty-seven percent
(67%) of the total voting power generally entitled to vote in the election of directors,
managers or trustees of Borrower or (B) cease to own more than sixty-seven percent (67%) of
all non-voting classes of capital stock of Borrower, or (ii) the members or stockholders, as
applicable, of Borrower shall approve any plan for the liquidation or dissolution of
Borrower.

     (j) Any Loan Document or any provision thereof ceases to be in full force and effect
for any reason other than as expressly permitted hereunder or thereunder; or Borrower
attempts to reject, terminate or rescind any Loan Document to which it is a party or any
provision thereof, or contests in any manner the validity, binding nature or enforceability
of any Loan Document to which it is a party or any provision thereof.

     (k) Any Reportable Event that the Administrative Agent or the Required Lenders
determine in good faith would reasonably be expected to constitute grounds for

52

 

the
termination of any Pension Plan under Section 4042 of ERISA or for the appointment by the
appropriate United States District Court of a trustee to administer any Borrower Pension
Plan, shall have occurred and be continuing 30 days after written notice to such effect
shall have been given to Borrower by the Administrative Agent; or the PBGC shall have
instituted proceedings to terminate any Borrower Pension Plan or to appoint a trustee to
administer any Borrower Pension Plan; or Borrower or any of its ERISA Affiliates shall have
filed for a distress termination of any Borrower Pension Plan under Title IV of ERISA; or
there is imposed any liability under Title IV of ERISA, other than for PBGC premiums due but
not delinquent under Section 4007 of ERISA, on Borrower or any of its ERISA Affiliates; or
there is a determination that any Borrower Pension Plan is considered an at-risk plan or a
plan in endangered or critical status within the meaning of Sections 430 or 432 of the Code
or Sections 303 or 305 of ERISA; or Borrower or any of its ERISA Affiliates, shall have
failed to make any quarterly contribution required with respect to any Borrower Pension Plan
under Section 430(j) of the Code or fails to make a contribution required (or seeks a waiver
of any contribution required) with respect to any Borrower Pension Plan under Section 412 of
the Code, that the Administrative Agent or the Required Lenders determine in good faith may
by itself, or in combination with any such failures that the Administrative Agent or the
Required Lenders may determine are
likely to occur in the future, result in the imposition of a Lien on Borrower’s assets
in favor of the Borrower Pension Plan; or any withdrawal, partial withdrawal, reorganization
or other event occurs with respect to a Multiemployer Plan that results or would reasonably
be expected to result in a material liability of Borrower to the Multiemployer Plan under
Title IV of ERISA.

     13.2 No Advance. Upon the occurrence and during the continuance of a Default or an
Event of Default, (a) the Lenders shall have no obligation to make any Advance, and (b) neither the
Letter of Credit Bank nor the Lenders shall have any obligation to issue, reissue, or extend any
Letters of Credit.

     13.3 Rights and Remedies. In addition to the remedies set forth in Section 13.1 and
13.2 hereof, upon the occurrence of an Event of Default, the Administrative Agent shall be entitled
to exercise, subject to the provisions of Subsection 14.6(d) hereof, all the rights and remedies
provided in the Loan Documents and by any applicable law. Each and every right or remedy granted to
the Administrative Agent pursuant to this Credit Agreement and the other Loan Documents, or allowed
the Administrative Agent by law or equity, shall be cumulative. Failure or delay on the part of the
Administrative Agent to exercise any such right or remedy shall not operate as a waiver thereof.
Any single or partial exercise by the Administrative Agent of any such right or remedy shall not
preclude any future exercise thereof or the exercise of any other right or remedy.

ARTICLE 14. AGENCY AGREEMENT

     14.1 Funding of Syndication Interest. Each Lender, severally but not jointly, hereby
irrevocably agrees to fund its Funding Share of the Advances (“Advance Payment”) as determined
pursuant to the terms and conditions contained herein and in particular, Article 2 hereof. Each
Lender’s interest (“Syndication Interest”) in each Advance hereunder shall be

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without recourse to
the Administrative Agent or any other Lender and shall not be construed as a loan from any Lender
to the Administrative Agent or any other Lender.

     14.2 Lenders’ Obligations to Remit Funds. Each Lender agrees to remit its Funding
Share to the Administrative Agent as, and within the time deadlines (“Lender Advance Date”),
required in this Credit Agreement. Unless the Administrative Agent shall have received notice from
a Lender prior to the date on which such Lender is to provide funds to the Administrative Agent for
an Advance to be made by such Lender that such Lender will not make available to the Administrative
Agent such funds, the Administrative Agent may assume that such Lender has made such funds
available to the Administrative Agent on the date of such Advance in accordance with the terms of
this Credit Agreement and the Administrative Agent in its sole discretion may, but shall not be
obligated to, in reliance upon such assumption, make available to Borrower on such date a
corresponding amount. If and to the extent such Lender shall not have made such funds available to
the Administrative Agent by 2:00 P.M. (Eastern Time) on the Banking Day due, such Lender agrees to
repay the Administrative Agent forthwith on demand such corresponding amount together with interest
thereon, for each day from the date such amount is made available to Borrower until
the Banking Day such amount is repaid to the Administrative Agent (assuming payment is
received by the Administrative Agent at or prior to 2:00 P.M. (Eastern Time), and until the next
Banking Day if payment is not received until after 2:00 P.M.), at the customary rate set by the
Administrative Agent for the correction of errors among banks for three (3) Banking Days and
thereafter at the Base Rate. If such Lender shall repay to the Administrative Agent such
corresponding amount, such amount so repaid shall constitute such Lender’s Advance for purposes of
this Credit Agreement. If such Lender does not pay such corresponding amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent shall promptly notify Borrower,
and Borrower shall immediately pay such corresponding amount to the Administrative Agent with the
interest thereon, for each day from the date such amount is made available to Borrower until the
date such amount is repaid to the Administrative Agent, at the rate of interest applicable at the
time to such Advance.

     14.3 Lender’s Failure to Remit Funds. If a Delinquent Lender fails to remit its
Funding Share in full by the date and time required (the unpaid amount of any such payment being
hereinafter referred to as the “Delinquent Amount”), in addition to any other remedies available
hereunder, any other Lender or Lenders may, but shall not be obligated to, advance the Delinquent
Amount (the Lender or Lenders which advance such Delinquent Amount are referred to as the
“Contributing Lenders”), in which case (a) the Delinquent Amount which any Contributing Lender
advances shall be treated as a loan to the Delinquent Lender and shall not be counted in
determining the Individual Outstanding Obligations, as applicable, of any Contributing Lender, and
(b) the Delinquent Lender shall be obligated to pay to the Administrative Agent, for the account of
the Contributing Lenders, interest on the Delinquent Amount at a rate of interest equal to the rate
of interest which Borrower is obligated to pay on the Delinquent Amount plus 200 basis points
(“Delinquency Interest”) until the Delinquent Lender remits the full Delinquent Amount and remits
all Delinquency Interest to the Administrative Agent, which will distribute such payments to the
Contributing Lenders (pro rata based on the amount of the Delinquent Amount which each of them (if
more than one) advanced) on the same Banking Day as such payments are received by the
Administrative Agent if received no later than 11:00 A.M. (Eastern Time) or the next Banking Day if
received by the Administrative Agent thereafter. In addition, the Contributing Lenders shall be
entitled to share,

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on the same pro rata basis, and the Administrative Agent shall pay over to them,
for application against Delinquency Interest and the Delinquent Amount, the Delinquent Lender’s
Payment Distribution and any fee distributions or distributions made under Section 14.10 hereof
until the Delinquent Amount and all Delinquency Interest have been paid in full. For voting
purposes the Administrative Agent shall readjust the Individual Commitments of such Delinquent
Lender and the Contributing Lenders from time to time first to reflect the advance of the
Delinquent Amount by the Contributing Lenders, and then to reflect the full or partial
reimbursement to the Contributing Lenders of such Delinquent Amount. As between the Delinquent
Lender and the Contributing Lenders, the Delinquent Lender’s interest in its Note shall be deemed
to have been partially assigned to the Contributing Lenders in the amount of the Delinquent Amount
and Delinquency Interest owing to the Contributing Lenders from time to time. For the purposes of
calculating interest owed by a Delinquent Lender, payments received on other than a Banking Day
shall be deemed to have been received on the next Banking Day, and payments received after 2:00
P.M. (Eastern Time) shall be deemed to have been received on the next Banking Day. Notwithstanding
the foregoing, if no Lender advances the Delinquent Amount, Borrower shall within two Banking Days
following notice by the Administrative Agent
(x) first, prepay all outstanding Overnight Advances, and (y) second, cash collateralize the
undrawn face amount of all Letters of Credit then outstanding to the extent of such Delinquent
Lender’s Individual Pro Rata Share. Further, the Overnight Lender shall not be required to fund
any Overnight Advance and the Letter of Credit Bank shall not be required to issue, amend or
increase any Letter of Credit, unless it is satisfied that the related exposure will be 100%
covered by the Individual Commitments of the non-Delinquent Lenders in a manner consistent with
this Section 14.3 and/or cash collateral will be provided by Borrower in accordance with this
Section 14.3.

     14.4 Agency Appointment. Each of the Lenders hereby designates and appoints the
Administrative Agent to act as agent to service and collect the Loans, its respective Notes and the
other Obligations and to take such action on behalf of such Lender with respect to the Loans, Notes
and other Obligations, and to execute such powers and to perform such duties, as specifically
delegated or required herein, as well as to exercise such powers and to perform such duties as are
reasonably incident thereto, and to receive and benefit from such fees and indemnifications as are
provided for or set forth herein, until such time as a successor is appointed and qualified to act
as the Administrative Agent.

     14.5 Power and Authority of the Administrative Agent. Without limiting the generality
of the power and authority vested in the Administrative Agent pursuant to Section 14.4 hereof, the
power and authority vested in the Administrative Agent includes, but is not limited to, the
following:

     (a) Advice. To solicit the advice and assistance of each of the Lenders, the
Letter of Credit Bank and Voting Participants concerning the administration of the Facility
and the exercise by the Administrative Agent of its various rights, remedies, powers, and
discretions with respect thereto. As to any matters not expressly provided for by this
Credit Agreement or any other Loan Document, the Administrative Agent shall in all cases be
fully protected in acting, or in refraining from acting, hereunder in accordance with
instructions signed by all of the Lenders, the Letter of Credit Bank or the Required
Lenders, as the case may be (and including in each such case, Voting Participants), and any
action taken or failure to act pursuant thereto shall be binding on

55

 

all of the Lenders, the
Letter of Credit Bank, the Voting Participants, and the Administrative Agent.

     (b) Documents. To execute, seal, acknowledge, and deliver as the Administrative
Agent, all such instruments as may be appropriate in connection with the administration of
the Facility and the exercise by the Administrative Agent of its various rights with respect
thereto.

     (c) Proceedings. To initiate, prosecute, defend, and to participate in, actions
and proceedings in its name as the Administrative Agent for the ratable benefit of the
Lenders and the Letter of Credit Bank.

     (d) Retain Professionals. To retain attorneys, accountants, and other
professionals to provide advice and professional services to the. Administrative Agent,
with their fees and expenses reimbursable to the Administrative Agent by Lenders
pursuant to Section 14.17 hereof.

     (e) Incidental Powers. To exercise powers reasonably incident to the
Administrative Agent’s discharge of its duties enumerated in Section 14.6 hereof.

     14.6 Duties of the Administrative Agent. The duties of the Administrative Agent
hereunder shall consist of the following:

     (a) Possession of Documents. To safekeep one original of each of the Loan
Documents other than the Notes (which will be in the possession of the Lender named as payee
therein).

     (b) Distribute Payments. To receive and distribute to the Lenders payments made
by Borrower pursuant to the Loan Documents, as provided in Article 5 hereof. Unless the
Administrative Agent shall have received notice from Borrower prior to the date on which any
payment is due to any Lender hereunder that Borrower will not make such payment in full, the
Administrative Agent may assume that Borrower has made such payment in full to the
Administrative Agent on such date and the Administrative Agent in its sole discretion may,
but shall not be obligated to, in reliance upon such assumption, cause to be distributed to
each Lender on such due date an amount equal to the amount then due such Lender. If and to
the extent Borrower shall not have so made such payment in full to the Administrative Agent,
each Lender shall repay to the Administrative Agent forthwith on demand such amount
distributed to such Lender together with interest thereon, for each day from the date such
amount is distributed to such Lender until the date such Lender repays such amount to the
Administrative Agent at the customary rate set by the Administrative Agent for the
correction of errors among banks for three (3) Banking Days and thereafter at the Base Rate.

     (c) Loan Administration. Subject to the provisions of Section 14.8 hereof, to,
on behalf of and for the ratable benefit of all Lenders, in accordance with customary
banking practices, exercise all rights, powers, privileges, and discretion to which the
Administrative Agent is entitled to administer the Loans, including, without limitation: (i)
monitor all borrowing activity, Individual Commitment balances, and maturity dates of

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all
LIBO Rate Loans; (ii) monitor and report Credit Agreement and covenant compliance, and
coordinate required credit actions by the Lenders; (iii) manage the process for future
waivers and amendments if modifications to the Credit Agreement are required; and (iv)
administer, record, and process all assignments to be made for the current and future
Lenders.

     (d) Action Upon Default. Each Lender agrees that upon its learning of any facts
which would constitute a Default or Event of Default, it shall promptly notify the
Administrative Agent by a writing designated as a notice of default specifying in detail the
nature of such facts and default, and the Administrative Agent shall promptly send a copy of
such notice to all other Lenders. The Administrative Agent shall be entitled to assume that
no Event of Default or Default has occurred or is continuing unless an officer
thereof primarily responsible for the Administrative Agent’s duties as such with
respect to the Loans or primarily responsible for the credit relationship between the
Administrative Agent and Borrower has actual knowledge of facts which would result in or
constitute a Default or Event of Default, or has received written notice from Borrower of
such fact, or has received written notice of default from a Lender. In the event the
Administrative Agent has obtained actual knowledge (in the manner described above) or
received written notice of the occurrence of a Default or Event of Default as provided in
the preceding sentences, the Administrative Agent may, but is not required to exercise or
refrain from exercising any rights which may be available under the Loan Documents or at law
on account of such occurrence and shall be entitled to use its discretion with respect to
exercising or refraining from exercising any such rights, unless and until the
Administrative Agent has received specific written instruction from the Required Lenders to
refrain from exercising such rights or to take specific designated action, in which case it
shall follow such instruction; provided that the Administrative Agent shall not be required
to take any action which will subject it to personal liability, or which is or may be
contrary to any provision of the Loan Documents or applicable law. The Administrative Agent
shall not be subject to any liability by reason of its acting or refraining from acting
pursuant to any such instruction.

     (e) Forwarding of Information. The Administrative Agent shall, within a
reasonable time after receipt thereof, forward to the Lenders and the Voting Participants
notices and reports provided to the Administrative Agent by Borrower pursuant to Section
10.2 hereof.

     14.7 Indemnification as Condition to Action. Except for action expressly required of
the Administrative Agent hereunder, the Administrative Agent shall in all cases be fully justified
in failing or refusing to act hereunder unless it shall have received further assurances (which may
include cash collateral) of the indemnification obligations of the Lenders under Section 14.18
hereof in respect of any and all liability and expense which may be incurred by it by reason of
taking or continuing to take any such action.

     14.8 Consent Required for Certain Actions. Except as provided in Section 14.3 hereof,
and notwithstanding the fact that this Credit Agreement may otherwise provide that the
Administrative Agent may act at its discretion, the Administrative Agent may not take any of the
following actions (nor may the Lenders or the Voting Participants take the action described in

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Subsection 14.8(a)(iii)) with respect to, or under, the Loan Documents without the prior written
consent, given after notification by the Administrative Agent of its intention to take any such
action (or notification by such Lenders as are proposing the action described in Subsection
14.8(a)(iii) of their intention to do so), of:

     (a) Unanimous. Each of the Lenders and Voting Participants before:

     (i) Agreeing to an increase in the Aggregate Revolving Commitment or an
extension of the Availability Period or the Maturity Date;

     (ii) Agreeing to a reduction in the amount, or to a delay in the due date, of
any payment by Borrower of interest, principal, or fees with respect to the Loans;
provided, however, this restriction shall not apply to a delay in payment of
interest or fees granted by the Administrative Agent in the ordinary course of
administration of the Loans and the exercise of reasonable judgment, so long as such
payment delay does not exceed five (5) days; or

     (iii) Amending the definition of “Required Lenders” any provision set forth in
this Subsection 14.8(a); or

     (iv) Agreeing to waive any material provisions of this Credit Agreement or any
of the other Loan Documents.

     (b) Required Lenders. The Required Lenders before:

     (i) Consenting to any action, amendment, or granting any waiver with respect to
the Loans or the other Obligations not covered in Subsection 14.8(a) or (c); or

     (ii) Agreeing to amend Article 14 of this Credit Agreement (other than
Subsection 14.8(a)(iii)).

     (c) Action Without Vote. Notwithstanding any other provisions of this Section,
the Administrative Agent may take the following action without obtaining the consent of the
Lenders or the Voting Participants:

     (i) Determining (x) whether the conditions to an Advance have been met, and (y)
the amount of such Advance;

     (ii) Determining (x) whether the conditions to the issuance of a Letter of
Credit have been met, and (y) the amount of such Letter of Credit.

If no written consent or denial is received from a Lender within five (5) Banking Days after
written notice of any proposed action as described in this Section is delivered to such Lender by
the Administrative Agent, such Lender shall be conclusively deemed to have consented thereto for
the purposes of this Section. Notwithstanding any other provision of this Section 14.8, any Fee
Letter may be amended by the agreement of the parties thereto.

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     14.9 Distribution of Principal and Interest. The Administrative Agent will receive and
accept all payments (including prepayments) of principal and interest made by Borrower on the Loans
and the Notes and will hold all such payments in trust for the benefit of all present and future
Lenders, and, if requested in writing by the Required Lenders, in an account segregated from the
Administrative Agent’s other funds and accounts (“Payment Account”). After the receipt by the
Administrative Agent of any payment representing interest or principal on the Loans, the
Administrative Agent shall remit to each Lender its share of such payment as provided in Article 5
hereof (“Payment Distribution”) no later than the same Banking Day as such payment is received by
the Administrative Agent if received no later than 11:00 A.M. (Eastern Time) or the next Banking
Day if received by the Administrative Agent thereafter. Any Lender’s rights to its Payment
Distribution shall be subject to the rights of any Contributing Lenders to such amounts as set
forth in Section 14.3 hereof.

     14.10 Distribution of Certain Amounts. The Administrative Agent shall (a) receive and
hold in trust for the benefit of all present and future Lenders, in the Payment Account and, if
requested in writing by the Required Lenders, segregated from the Administrative Agent’s other
funds and accounts and (b) shall remit to each Lender the amount of any Funding Losses paid by
Borrower to the Administrative Agent in connection with a prepayment of any portion of a LIBO Rate
Loan, in accordance with the Funding Loss Notice such Lender provided to the Administrative Agent,
no later than the same Banking Day that payment of such Funding Losses is received by the
Administrative Agent, if received no later than 11:00 A.M. (Eastern Time), or the next Banking Day
if received by the Administrative Agent thereafter.

     14.11 Possession of Loan Documents. The Loan Documents (other than the Notes) shall be
held by the Administrative Agent in its name, for the ratable benefit of itself and the other
Lenders without preference or priority.

     14.12 Collateral Application. The Lenders shall have no interest in any other loans
made to Borrower by any other Lender other than the Loans, or in any property taken as security for
any other loan or loans made to Borrower by any other Lender, or in any property now or hereinafter
in the possession or control of any other Lender, which may be or become security for the Loans
solely by reason of the provisions of a security instrument that would cause such security
instrument and the property covered thereby to secure generally all indebtedness owing by Borrower
to such other Lender. Notwithstanding the foregoing, to the extent such other Lender applies such
funds or the proceeds of such property to reduction of the Loans, such other Lender shall share
such funds or proceeds with all Lenders according to their respective Individual Pro Rata Shares.
In the event that any Lender shall obtain payment, whether partial or full, from any source in
respect of the Loans, including without limitation payment by reason of the exercise of a right of
offset, banker’s lien, general lien, or counterclaim, such Lender shall promptly make such
adjustments (which may include payment in cash or the purchase of further syndications or
participations in the Loans) to the end that such excess payment shall be shared with all other
Lenders in accordance with their respective Individual Commitments. Notwithstanding any of the
foregoing provisions of this Section or Article 7 hereof, no Lender other than CoBank shall have
any right to, or to the proceeds of, or any right to the application to any amount owing to such
Lender hereunder of any the proceeds of, any CoBank Equities issued to Borrower by CoBank or on
account of any statutory lien held by CoBank on such CoBank Equities.

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     14.13 Amounts Required to be Returned. If the Administrative Agent makes any payment
to a Lender in anticipation of the receipt of final funds from Borrower, and such funds are not
received from Borrower, or if excess funds are paid by the Administrative Agent to any Lender as
the result of a miscalculation by the Administrative Agent, then Lender shall, on demand of the
Administrative Agent, forthwith return to the Administrative Agent any such amounts, plus interest
thereon (from the
day such amounts were transferred by the Administrative Agent to the Lender to, but not
including, the day such amounts are returned by Lender) at a rate per annum equal to the customary
rate set by the Administrative Agent for the correction of errors among banks for three (3) Banking
Days and thereafter at the Base Rate. If the Administrative Agent is required at any time to return
to Borrower or a trustee, receiver, liquidator, custodian, or similar official any portion of the
payments made by Borrower to the Administrative Agent, whether pursuant to any bankruptcy or
insolvency law or otherwise, then each Lender shall, on demand of the Administrative Agent,
forthwith return to the Administrative Agent any such payments transferred to such Lender by the
Administrative Agent but without interest or penalty (unless the Administrative Agent is required
to pay interest or penalty on such amounts to the person recovering such payments).

     14.14 Reports and Information to Lenders. The Administrative Agent shall use
reasonable efforts to provide to Lenders, as soon as practicable after actual knowledge thereof is
acquired by an officer thereof primarily responsible for the Administrative Agent’s duties as such
with respect to the Loans or primarily responsible for the credit relationship between the
Administrative Agent and Borrower, any material factual information which has a material adverse
effect on the creditworthiness of Borrower, and Borrower hereby authorizes such disclosure by the
Administrative Agent to the Lenders (and by the Lenders to any of their participants). Failure of
the Administrative Agent to provide the information referred to in this Section or in Subsection
14.6(d) hereof shall not result in any liability upon, or right to make a claim against, the
Administrative Agent except where a court of competent jurisdiction renders a final non-appealable
determination that such failure is a result of the willful misconduct or gross negligence of the
Administrative Agent. Lenders acknowledge and agree that all information and reports received
pursuant to this Credit Agreement will be received in confidence in connection with their
Syndication Interest, and that such information and reports constitute confidential information and
shall not, without the prior written consent of the Administrative Agent or Borrower, as
applicable, be (x) disclosed to any third party (other than the Administrative Agent, another
Lender or potential Lender, or a participant or potential participant in the interest of a Lender,
which disclosure is hereby approved by Borrower), except pursuant to appropriate legal or
regulatory process, or (y) used by the Lender except in connection with the Loans and its
Syndication Interest.

     14.15 Standard of Care. The Administrative Agent shall not be liable to Lenders for
any error in judgment or for any action taken or not taken by the Administrative Agent or its
agents, except for its gross negligence or willful misconduct as determined by a final,
non-appealable judgment of a court of competent jurisdiction. The Administrative Agent may rely on
the advice of counsel concerning legal matters and on any written document it believes to be
genuine and correct and to have been signed or sent by the proper Person or Persons.

     14.16 No Trust Relationship. Neither the execution of this Credit Agreement, nor the
sharing in the Loans, nor the holding of the Loan Documents in its name by the Administrative

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Agent, nor the management and administration of the Loans and Loan Documents by the Administrative
Agent (including the obligation to hold certain payments and proceeds in the Payment Account in
trust for the Lenders), nor any other right, duty or obligation of the Administrative Agent under
or pursuant to this Credit Agreement
is intended to be or create, and none of the foregoing shall be construed to be or create, any
express, implied or constructive trust relationship between the Administrative Agent and any
Lender. Each Lender hereby agrees and stipulates that the Administrative Agent is not acting as
trustee for such Lender with respect to the Loans, this Credit Agreement, or any aspect of either,
or in any other respect.

     14.17 Sharing of Costs and Expenses. To the extent not paid by Borrower, each Lender
will promptly upon demand reimburse the Administrative Agent for its proportionate share (based on
its Individual Pro Rata Share), for all reasonable costs, disbursements, and expenses incurred by
the Administrative Agent on or after the date of this Credit Agreement for legal, accounting,
consulting, and other services rendered to the Administrative Agent in its role as the
Administrative Agent in the administration of the Loans, interpreting the Loan Documents, and
protecting, enforcing, or otherwise exercising any rights, both before and after default by
Borrower under the Loan Documents, and including, without limitation, all costs and expenses
incurred in connection with any bankruptcy proceedings; provided, however, that the costs and
expenses to be shared in accordance with this Section shall not include any costs or expenses
incurred by the Administrative Agent solely as a Lender in connection with the Loans, nor to the
Administrative Agent’s internal costs and expenses.

     14.18 Lenders’ Indemnification of the Administrative Agent. Each of the Lenders agree
to indemnify the Administrative Agent, including any Successor Agent, and their respective
directors, officers, employees, agents, professional advisers and representatives (“Indemnified
Agency Parties”), to the extent not reimbursed by Borrower, and without in any way limiting the
obligation of Borrower to do so, ratably based on its Individual Pro Rata Share, from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time (including, without
limitation, at any time following the payment of the Loans and/or the expiration or termination of
this Credit Agreement) be imposed on, incurred by or asserted against the Administrative Agent (or
any of the Indemnified Agency Parties while acting for the Administrative Agent or for any
Successor Agent) in any way relating to or arising out of this Credit Agreement or the Loan
Documents, or the performance of the duties of the Administrative Agent hereunder or thereunder or
any action taken or omitted while acting in the capacity of the Administrative Agent under or in
connection with any of the foregoing; provided that the Lenders shall not be liable for the payment
of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of an Indemnified Agency Party to the extent that any of
the forgoing result from the gross negligence or willful misconduct of that Indemnified Agency
Party as determined by a final, non-appealable judgment of a court of competent jurisdiction. The
agreements and obligations in this Section shall survive the payment of the Loans and the
expiration or termination of this Credit Agreement.

     14.19 Books and Records. The Administrative Agent shall maintain such books of account
and records relating to the Loans as it maintains with respect to other loans of similar type and
amount, and which shall clearly and accurately reflect the Syndication Interest of each

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Lender. Lenders, or their agents, may inspect such books of account and records at all
reasonable times during the Administrative Agent’s regular business hours.

     14.20 Administrative Agent Fee. CoBank and any Successor Agent shall be entitled to
the Administrative Agent Fee for acting as the Administrative Agent. In the event the Successor
Agent is contractually entitled to an additional fee, each Lender will be responsible for its
proportionate share (based on its Individual Pro Rata Share) thereof.

     14.21 The Administrative Agent’s Resignation or Removal. The Administrative Agent may
resign at any time by giving at least sixty (60) days’ prior written notice of its intention to do
so to each of the Lenders and Borrower. After the receipt of such notice, the Required Lenders
shall appoint a successor (“Successor Agent”). If (a) no Successor Agent shall have been so
appointed which is either (i) a Lender, or (ii) if not a Lender, which is a Person approved by
Borrower, such approval not to be unreasonably withheld (provided that Borrower shall have no
approval rights upon the occurrence and during the continuance of an Event of Default), or (b) if
such Successor Agent has not accepted such appointment, in either case within forty-five (45) days
after the retiring Administrative Agent’s giving of such notice of resignation, then the retiring
Administrative Agent may, after consulting with, but without requiring the approval of, Borrower,
appoint a Successor Agent which shall be a bank or a trust company organized under the laws of the
United States of America or any state thereof and having a combined capital, surplus and undivided
profit of at least $250,000,000. Any Administrative Agent may be removed upon the written demand of
the Required Lenders, which demand shall also appoint a Successor Agent. Upon the appointment of a
Successor Agent hereunder, (x) the term “Administrative Agent” shall for all purposes of this
Credit Agreement thereafter mean such Successor Agent, and (y) the Successor Agent shall notify
Borrower of its identity and of the information called for in Subsection 15.4(b) hereof. After any
retiring Administrative Agent’s resignation hereunder as the Administrative Agent, or the removal
hereunder of any Administrative Agent, the provisions of this Credit Agreement shall continue to
inure to the benefit of such Administrative Agent as to any actions taken or omitted to be taken by
it while it was the Administrative Agent under this Credit Agreement.

     14.22 Representations and Warranties of All Parties. The Administrative Agent and each
Lender represents and warrants that: (a) the execution and delivery of, and performance of its
obligations under, this Credit Agreement is within its power and has been duly authorized by all
necessary corporate and other action by it; (b) this Credit Agreement is in compliance with all
applicable laws and regulations promulgated under such laws and does not conflict with nor
constitute a breach of its charter or bylaws nor any agreements by which it is bound, and does not
violate any judgment, decree or governmental or administrative order, rule or regulation applicable
to it; (c) no approval, authorization or other action by, or declaration to or filing with, any
governmental or administrative authority or any other Person is required to be obtained or made by
it in connection with the execution and delivery of, and performance of its obligations under, this
Credit Agreement; and (d) this Credit Agreement has been duly executed by it, and constitutes the
legal, valid, and binding obligation of such Person, enforceable in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting the rights of creditors
generally and general equitable principles (regardless of whether such enforceability is considered
in a proceeding at law or in equity). Each Lender that is a state or national bank

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represents and
warrants that the act of entering into and performing its obligations under this Credit Agreement
has been approved by its board of directors or its loan committee and such action was duly noted in
the written minutes of the meeting of such board or committee, and that it will furnish the
Administrative Agent with a certified copy of such minutes or an excerpt therefrom reflecting such
approval.

     14.23 Lenders’ Independent Credit Analysis. Each Lender acknowledges receipt of true
and correct copies of all Loan Documents (other than any Note payable to another Lender) from the
Administrative Agent. Each Lender agrees and represents that it has relied upon its independent
review (a) of the Loan Documents, and (b) any information independently acquired by such Lender
from Borrower or otherwise in making its decision to acquire an interest in the Loans independently
and without reliance on the Administrative Agent. Each Lender represents and warrants that it has
obtained such information as it deems necessary (including any information such Lender
independently obtained from Borrower or others) prior to making its decision to acquire an interest
in the Loans. Each Lender further agrees and represents that it has made its own independent
analysis and appraisal of an investigation into each Borrower’s authority, business, operations,
financial and other condition, creditworthiness, and ability to perform its obligations under the
Loan Documents and has relied on such review in making its decision to acquire an interest in the
Loans. Each Lender agrees that it will continue to rely solely upon its independent review of the
facts and circumstances related to Borrower, and without reliance upon the Administrative Agent, in
making future decisions with respect to all matters under or in connection with the Loan Documents
and the Loans. The Administrative Agent assumes no responsibility for the financial condition of
Borrower or for the performance of Borrower’s obligations under the Loan Documents. Except as
otherwise expressly provided herein, no Lender shall have any duty or responsibility to furnish to
any other Lenders any credit or other information concerning Borrower which may come into its
possession.

     14.24 No Joint Venture or Partnership. Neither the execution of this Credit Agreement,
the sharing in the Loans, nor any agreement to share in payments or losses arising as a result of
this transaction is intended to be or to create, and the foregoing shall not be construed to be,
any partnership, joint venture or other joint enterprise between the Administrative Agent and any
Lender, nor between or among any of the Lenders.

     14.25 Purchase for Own Account; Restrictions on Transfer; Participations. Each Lender
other than CoBank represents that it has acquired and is retaining its interest in the Loans for
its own account in the ordinary course of its banking or financing business and not with a view
toward the sale, distribution, further participation, or transfer thereof. Each Lender other than
CoBank agrees that it will not sell, assign, convey or otherwise dispose of (“Transfer”) to any
Person, or create or permit to exist any Lien on all or any part of its interest in the Loans,
without the prior written consent of the Administrative Agent and Borrower, which consent will not
be unreasonably withheld (provided that Borrower shall have no approval rights upon the
occurrence and during the continuance of an Event of Default); provided that: (a) any such
Transfer except a Transfer to another Lender or a Transfer by CoBank must be in a minimum amount of
$5,000,000; (b) each Lender must maintain an Individual Commitment of no less than $5,000,000,
unless it Transfers its entire Syndication Interest; (c) the transferee must execute an Assignment
and Assumption and assume all of the transferor’s obligations hereunder and execute such documents
as the Administrative Agent may reasonably require; and (d) the Lender

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making such Transfer must
pay the Administrative Agent an assignment fee of $3,500. Any Lender may participate any part of
its interest in the Loans to any Person with the prior written consent of the Administrative Agent
and Borrower, which consent will not be unreasonably withheld (provided that Borrower shall have no
approval rights upon the occurrence and during the continuance of an Event of Default), provided
that no such consent shall be required where the participant is a Person at least fifty percent
(50%) the equity interest in which is owned by such Lender or which owns at least fifty percent
(50%) of the equity interest in such Lender or at least fifty percent (50%) of the equity interest
of which is owned by the same Person which owns at least fifty percent (50%) of the equity interest
of such Lender, and each Lender understands and agrees that in the event of any such participation:
(x) its obligations hereunder will not change on account of such participation; (y) except as
provided in Section 14.26 hereof, the participant will have no rights under this Credit Agreement,
including, without limitation, voting rights or the right to receive payments or distributions; and
(z) the Administrative Agent shall continue to deal directly with the Lender with respect to the
Loans (including with respect to voting rights) as though no participation had been granted and
will not be obligated to deal directly with any participant. Notwithstanding any provision
contained herein to the contrary, any Lender may at any time pledge or assign all or any portion of
its interest in the Loans to any Federal Reserve Bank or the Federal Farm Credit. Bank in
accordance with applicable law. CoBank reserves the right to sell participations on a non-patronage
basis.

     14.26 Certain Participants’ Voting Rights. Notwithstanding anything in Section 14.25
to the contrary, any Farm Credit Lender that (i) is the owner of a participation in an Individual
Commitment (including Advances outstanding thereunder) initially in the amount of at least
$5,000,000; (ii) is, by written notice to Borrower and the Administrative Agent (a “Voting
Participant Notification”), designated by the selling Lender as being entitled to be accorded the
rights of a voting participant hereunder (any Farm Credit Lender so designated being called a
“Voting Participant”); and (iii) receives the prior written consent of Borrower (unless an Event of
Default has occurred and is continuing) and the Administrative Agent to become a Voting
Participant, shall be entitled to vote for so long as such Farm Credit Lender owns such
participation and notwithstanding any subparticipation by such Farm Credit Lender (and the voting
rights of the selling Lender shall be correspondingly reduced), on a dollar for dollar basis, as if
such Voting Participant were a Lender, on any matter requiring or allowing a Lender to provide or
withhold its consent, or to otherwise vote on any proposed action. To be effective, each Voting
Participant Notification shall, with respect to any Voting Participant, (A) state the full name, as
well as all contact information required for an assignee in the Assignment and Assumption; and (B)
state the dollar amount of the participation purchased. The selling Lender and the Voting
Participant shall notify the Administrative Agent and Borrower within three (3) Banking Days of any
termination of, reduction or increase in the amount of, such participation. Borrower and the
Administrative Agent shall be entitled to conclusively rely on information contained in notices
delivered pursuant to this subsection 14.26.
The voting rights hereunder are solely for the benefit of the Voting Participants and shall
not inure to any assignee or participant of a Voting Participant.

     14.27 Method of Making Payments. Payment and transfer of all amounts owing or to be
paid or remitted hereunder, including, without limitation, payment of the Advance Payment by
Lenders, and distribution of principal or interest payments or fees or other amounts by the

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Administrative Agent, shall be by wire transfer in accordance with the instructions contained on
Exhibit 14.27 hereto (“Wire Instructions”).

     14.28 Replacement of Non-Consenting Lenders and Delinquent Lenders. If any Lender (a
“Non-Consenting Lender”) refuses to consent to an amendment to or waiver of any Loan Document or
provision thereof, which amendment or waiver requires unanimous consent of all the Lenders in order
to be effective, or if any Lender is a Delinquent Lender, then the Administrative Agent may or
Borrower may (but neither shall be obligated to), upon notice to the Non-Consenting Lender or
Delinquent Lender (and the Administrative Agent, if applicable), require the Non-Consenting Lender
or Delinquent Lender to assign and delegate, without recourse (in accordance with and subject to
the restrictions contained in Section 14.25) all of its interests, rights, duties and obligations
under this Agreement and the Loan Documents to another Person that shall assume such obligations
(which assignee may be a Lender, if a Lender accepts such assignment); provided that:

     (i) if it is an assignment at the request of Borrower, Borrower shall have received the
prior written consent of the Administrative Agent and the Letter of Credit Bank, which
consents shall not be unreasonably withheld,

     (j) if it is an assignment at the request of the Administrative Agent and there is no
Event of Default, Borrower and the Letter of Credit Bank shall have consented to such
assignment, which consents shall not be unreasonably withheld,

     (k) in the case of a Non-Consenting Lender, the interests, rights, duties and
obligations of all Non-Consenting Lenders are similarly assigned to other Persons, and

     (l) the Non-Consenting Lender or Delinquent Lender shall have received payment of an
amount equal to the outstanding principal of its Loans, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder and under the other Loan Documents, from
its assignee (to the extent of such outstanding principal, accrued interest and accrued
fees) or Borrower (in the case of all other amounts).

     14.29 Withholding Taxes.

     (m) Payments Free of Taxes. Any and all payments by or on account of any
obligation of Borrower hereunder or under any other Loan Document shall be made free and
clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes,
provided that if Borrower shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section) the
Lender entitled thereto receives an amount equal to the sum it would have received had
no such deductions been made, (ii) Borrower shall make such deductions, and (iii) Borrower
shall timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

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     (n) Payment of Other Taxes by Borrower. Without limiting the provisions of
paragraph (m) above, Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

     (o) Indemnification by Borrower. Borrower shall indemnify each Lender within 10
Banking Days after demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by such Lender, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such
Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority. A certificate as to the amount of such payment or liability
delivered to Borrower by a Lender (with a copy to the Administrative Agent) shall be
conclusive absent manifest error.

     (p) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by Borrower to a Governmental Authority, Borrower shall
deliver to the Administrative Agent the original or a certified copy of a receipt issued by
such Governmental Authority evidencing such payment, a copy of the return reporting such
payment or other evidence of such payment reasonably satisfactory to the Administrative
Agent.

     (q) Status of Lenders. Any Foreign Lender that is entitled to an exemption from
or reduction of withholding tax under the law of the jurisdiction in which Borrower is
resident for tax purposes, or any treaty to which such jurisdiction is a party, with respect
to payments hereunder or under any other Loan Document shall deliver to Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by Borrower or the Administrative Agent, such properly completed and
executed documentation prescribed by applicable law as will permit such payments to be made
without withholding or at a reduced rate of withholding. In addition, any Lender, if
requested by Borrower or the Administrative Agent, shall deliver such other documentation
prescribed by applicable law or reasonably requested by Borrower or the Administrative Agent
as will enable Borrower or the Administrative Agent to determine whether or not such Lender
is subject to backup withholding or information reporting requirements.

     (r) Treatment of Certain Refunds. If any Lender determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to which it has
been indemnified by Borrower or with respect to which Borrower has paid additional amounts
pursuant to this Section, it shall pay to Borrower an amount equal to such refund (but only
to the extent of indemnity payments made, or additional amounts paid, by Borrower under this
Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of such Lender and without interest (other than
any interest paid by the relevant Governmental Authority with respect to such refund),
provided that Borrower, upon the request of a Lender will repay the amount paid over to
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to such Lender in the event such Lender is required to repay such refund to such
Governmental Authority. This paragraph shall not be construed to

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require any Lender to make
available its tax returns (or any other information relating to its taxes that it deems
confidential) to Borrower or any other Person.

     14.30 Amendments Concerning Agency Function. The Administrative Agent shall not be
bound by any waiver, amendment, supplement or modification of this Credit Agreement or any other
Loan Document which affects its duties hereunder or thereunder unless it shall have given its prior
written consent thereto.

     14.31 Further Assurances. The Administrative Agent and each Lender agree to take
whatever steps and execute such documents as may be reasonable and necessary to implement this
Article 14 and to carry out fully the intent thereof.

ARTICLE 15. MISCELLANEOUS

     15.1 Costs and Expenses. To the extent permitted by law, Borrower agrees to pay to the
Administrative Agent, the Letter of Credit Bank and the Lenders, on demand, all reasonable
out-of-pocket costs and expenses (a) incurred by the Administrative Agent (including, without
limitation, the reasonable fees and expenses of counsel retained by the Administrative Agent, and
including fees and expenses incurred for consulting, appraisal, engineering, inspection, and
environmental assessment services) in connection with the preparation, negotiation, execution,
delivery and administration (including without limitation processing the Borrowing Notices) of this
Credit Agreement and the other Loan Documents and the transactions contemplated hereby and thereby,
and any amendments, modifications or waivers of the provisions hereof or thereof; and (b) incurred
by the Administrative Agent, the Letter of Credit bank or any Lender (including, without
limitation, the reasonable fees and expenses of counsel retained by the Administrative Agent, the
Letter of Credit Bank and the Lenders) in connection with the enforcement or protection of the its
rights under the Loan Documents upon the occurrence of an Event of Default, upon the commencement
of an action by Borrower against the Administrative Agent, the Letter of Credit Bank or any Lender,
including without limitation collection of the Loans (regardless of whether such enforcement or
collection is by court action or otherwise), and in connection with any workout, restructuring or
negotiations in respect of the Obligations. Borrower shall not be obligated to pay the costs or
expenses of any Person whose only interest in the Loans is as a holder of a participation interest.

     15.2 Service of Process and Consent to Jurisdiction. Borrower hereby agrees that any
litigation with respect to this Credit Agreement or the other Loan Documents or to enforce any
judgment obtained against Borrower for breach of any Loan Document shall be brought in a state or
federal court sitting in Denver, Colorado, as the Administrative Agent may elect; and, by execution
and delivery of this Credit Agreement, Borrower irrevocably submits to such jurisdiction. With
respect to litigation
concerning this Credit Agreement or under the Notes or other Loan Documents within the
jurisdiction of a state or federal court sitting in Denver, Colorado, Borrower hereby irrevocably
appoints, until six (6) months after the expiration of the Maturity Date (as it may be extended at
anytime), a Person, such as The Corporation Company, with offices in Denver, Colorado and otherwise
reasonably acceptable to the Administrative Agent to serve as the agent of Borrower to receive for
and on behalf of Borrower at such agent’s Denver, Colorado office, service of process, which
service may be made by mailing a copy of any summons or other legal process to Borrower in care of
such agent. Borrower agrees that

67

 

Borrower shall maintain a duly appointed agent in Colorado for
service of summons and other legal process as long as Borrower remains obligated under this Credit
Agreement and shall keep the Administrative Agent advised in writing of the identity and location
of such agent. The receipt by such agent and/or by Borrower of such summons or other legal process
in any such litigation shall be deemed personal service and acceptance by Borrower for all purposes
of such litigation.

     15.3 Jury Waiver. IT IS MUTUALLY AGREED BY AND AMONG THE ADMINISTRATIVE AGENT, THE
LETTER OF CREDIT BANK, EACH LENDER AND BORROWER THAT THEY EACH IRREVOCABLY WAIVE TRIAL BY JURY IN
ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS CREDIT
AGREEMENT, THE OTHER LOAN DOCUMENTS OR ANY INSTRUMENTS OR DOCUMENTS DELIVERED THEREUNDER.

     15.4 Notices. All notices, requests and demands required or permitted under the terms
of this Credit Agreement or any other Loan Document shall be in writing and (a) shall be addressed
as set forth below or at such other address as either party shall designate in writing, (b) shall
be effective (i) when received, if sent by facsimile, email transmission, hand delivery or
overnight courier; or (ii) three Banking Days after the date when sent by registered or certified
mail, postage prepaid.

     (a) Borrower:

National Cooperative Refinery Association

2000 Main Street

McPherson, Kansas 67460

Attention: Kent Stos

Phone: (620) 241-9221

Fax: (620) 241-9130

Email: kstos@ncra.coop

     (b) Administrative Agent:

CoBank, ACB

5500 South Quebec Street

Greenwood Village, Colorado 80111

Attention: Syndications

Phone: (303) 740-6504

Fax: (303) 740-1021

Email: Agencybank@cobank.com

     (c) Lenders:

See Schedule 1 hereto.

     15.5 Liability of Administrative Agent. The Administrative Agent shall not have any
liabilities or responsibilities to Borrower or any Subsidiary on account of the failure of the
Letter of Credit Bank or any Lender to perform its obligations hereunder or to the Letter of Credit
Bank

68

 

or any Lender on account of the failure of Borrower or any Subsidiary to perform their
respective obligations hereunder or under any other Loan Document.

     15.6 Successors and Assigns. This Credit Agreement shall be binding upon and inure to
the benefit of Borrower, the Administrative Agent, the Letter of Credit Bank and the Lenders, and
their respective successors and assigns, except that Borrower may not assign or transfer its rights
or obligations hereunder without the prior written consent of all of the Lenders.

     15.7 Severability. The invalidity or unenforceability of any provision of this Credit
Agreement or the other Loan Documents shall not affect the remaining portions of such documents or
instruments; in case of such invalidity or unenforceability, such documents or instruments shall be
construed as if such invalid or unenforceable provisions had not been included therein.

     15.8 Entire Agreement. This Credit Agreement, together with the other Loan Documents,
comprise the final and complete integration of all prior expressions by the parties hereto with
respect to the subject matter hereof and shall constitute the entire agreement among the parties
hereto with respect to such subject matter, superseding all prior oral or written understandings.
If any provision of a Loan Document is inconsistent with or conflicts with a comparable or similar
provision appearing in this Credit Agreement, the comparable or similar provision in this Credit
Agreement shall govern.

     15.9 Applicable Law. The Loan Documents shall be governed by, and construed in
accordance with, the laws of the State of Colorado (other than its conflicts of laws rules), except
to the extent the law of any other jurisdiction applies to the extent expressly provided to the
contrary in any Loan Document.

     15.10 Captions. The captions or headings in this Credit Agreement and any table of
contents hereof are for convenience only and in no way define, limit or describe the scope or
intent of any provision of this Credit Agreement.

     15.11 Amendments. This Credit Agreement may not be modified or amended unless such
modification or amendment is in writing and is signed by Borrower and the Administrative Agent
(with the written concurrence of the applicable Lenders pursuant to Section 14.8 hereof).

     15.12 Replacement Notes. Upon receipt by Borrower of evidence satisfactory to it of:
(a) the loss, theft, destruction or mutilation of any Note, and (in case of loss, theft or
destruction) of the agreement of the Lender to which the Note was payable to indemnify Borrower,
and upon surrender and cancellation of such Note, if mutilated; or (b) the assignment by any Lender
of its interest hereunder and the Notes relating thereto, or any portion thereof, pursuant to this
Credit Agreement, then Borrower will pay any unpaid principal and interest (and Funding Losses, if
applicable) then or previously due and payable on such Notes and will (upon delivery of such Notes
for cancellation, unless covered by subparagraph (a) of this Section) deliver in lieu of each such
Note a new Note or, in the case of an assignment of a portion of any such Lender’s Interest, new
Notes, for any remaining balance. The Lenders shall, as soon as practical after receipt of such new
executed Notes, return to Borrower the Note, if any, which has been replaced by such new Note or
Notes.

69

 

     15.13 Liberal Construction. This Credit Agreement constitutes a fully negotiated
agreement between commercially sophisticated parties, each assisted by legal counsel, and shall not
be construed and interpreted for or against any party hereto.

     15.14 Counterparts. This Credit Agreement may be executed by the parties hereto in
separate counterparts, each of which, when so executed and delivered, shall be an original, but all
such counterparts shall together constitute one and the same 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.

     15.15 Confidentiality. Each Lender shall maintain the confidential nature of, and
shall not use or disclose, any of Borrower’s financial information, confidential information or
trade secrets without first obtaining Borrower’s written consent. Nothing in this Section shall
require any Lender to obtain such consent after there is an Event of Default. The obligations of
the Lenders shall in no event apply to: (a) providing information about Borrower to any financial
institution contemplated in Sections 14.6, 14.14, and 14.19 hereof, or to such Lender’s parent
holding company or any of such Lender’s Affiliates; (b) any situation in which any Lender is
required by Law or required by any Governmental Authority to disclose information; (c) providing
information to counsel to any Lender in connection with the transactions contemplated by the Loan
Documents; (d) providing information to independent auditors retained by the such Lender; (e) any
information that is in or becomes part of the public domain otherwise than through a wrongful act
of such Lender or any of its employees or agents thereof; (f) any information that is in the
possession of any Lender prior to receipt thereof from Borrower or any other Person known to such
Lender to be acting on behalf of Borrower; (g) any information that is independently developed by
any Lender; and (h) any information that is disclosed to any Lender by a third party that has no
obligation of confidentiality with respect to the information disclosed. A Lender’s confidentiality
requirements continue after it is no longer a Lender under this Credit Agreement.

     15.16 Prior Credit Agreement. Upon satisfaction of the conditions precedent set forth
in Article 9 hereof, the Prior Credit Agreement shall be and hereby is amended, superseded and
restated in its entirety by the terms and provisions of this Agreement. This Agreement shall not
constitute a novation of the Prior Credit Agreement or the indebtedness created thereunder.
Borrower shall have the obligation to pay any fees and interest under the Prior Credit Agreement
accruing through the Closing Date of this Credit Agreement.

     15.17 Release. BORROWER HEREBY RELEASES, WAIVES AND FOREVER DISCHARGES THE
ADMINISTRATIVE AGENT, THE LETTER OF CREDIT BANK AND EACH LENDER AND EACH OF THEIR RESPECTIVE
SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AND AGENTS FROM ALL KNOWN AND UNKNOWN, ABSOLUTE AND
CONTINGENT, CLAIMS, DEFENSES, SETOFFS, COUNTERCLAIMS, CAUSES OF ACTION, ACTIONS, SUITS OR OTHER
LEGAL PROCEEDINGS OF ANY KIND EXISTING OR ACCRUED AS OF THE DATE OF THIS CREDIT AGREEMENT IN FAVOR
OF BORROWER

Signature Pages Follow

70

 

     IN WITNESS WHEREOF, the parties have executed this Credit Agreement as of the date first above
written.

	 	 	 	 	 
	 	NATIONAL COOPERATIVE REFINERY ASSOCIATION

 	 
	 	By:  	/s/ Kent S. Stos
 	 
	 	 	Name:  	Kent Stos 	 
	 	 	Title:  	Vice President Finance 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	COBANK, ACB, as Administrative Agent, Letter of

Credit Bank and a Lender

 	 
	 	By:  	/s/ Michael Tousignant
 	 
	 	 	Name:  	Michael Tousignant 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	U.S. AGBANK, FCB, as a Lender

 	 
	 	By:  	/s/ Travis W. Ball
 	 
	 	 	Name:  	Travis W. Ball 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amended and Restated Credit Agreement

 

 

Exhibit 1.21

COMPLIANCE CERTIFICATE

CoBank, ACB, as Administrative Agent

5500 South Quebec Street

Greenwood Village, Colorado 801 11

ATTN: Syndications

     As required by Section *[10.2(a)]* / *[10.2(b)]* of that certain Amended and Restated Credit
Agreement dated as of January 31, 2011 by and among National Cooperative Refinery Association (the
“Company”), the Lenders (as defined therein), and CoBank, ACB, in its capacity as administrative
agent for the Lenders (as amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), a review of the activities of the Company for the *[Fiscal Year]* /
*[Fiscal Quarter]* ending *[______________, 20__]* (the “Fiscal Period”) has been made under my
supervision with a view to determine whether the Company has kept, observed, performed and
fulfilled all of its obligations under the Credit Agreement, the other Loan Documents and all other
agreements and undertakings contemplated thereby. To the best of my knowledge, and based upon such
review, I certify, in my capacity as *[Vice President of Finance]* / *[corporate treasurer]* of the
Company, that no event has occurred which constitutes a Default or an Event of Default, each as
defined in the Credit Agreement.

     I further certify that attached are the required financial statements as of and for the Fiscal
Period. Such financial statements have been prepared in accordance with GAAP, fairly present the
financial condition of the Company as of such date and the results of the Company’s operations for
the period then ended, prepared on a consolidated and consolidating basis, and conform to the
applicable requirements of Section *[10.2(a)]* / *[10.2(b)]* of the Credit Agreement.

     I further certify that (a) to the best of my knowledge the amounts set forth on the attachment
accurately present amounts required to be calculated in accordance with the financial covenants
contained in the Credit Agreement as of the last day of the Fiscal Period (unless expressly
specified herein); and (b) also attached as Schedule A are detailed calculations showing how such
amounts were determined. All capitalized terms used but not defined herein have the meanings given
in the Credit Agreement.

	 	 	 	 	 
	 	Very truly yours,

National Cooperative Refinery Association

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	Vice President of Finance/Treasurer 	 

Ex. 1.21 - 1

 

Capitalized terms used herein shall have the definitions set forth in the Credit Agreement.

SUBSECTION 10.16(a): FUNDED DEBT TO EBITDA RATIO

	Test:	 	Measured as of each Covenant Compliance Date for the
Covenant Computation Period ending on such date: (a) Funded
Debt divided by (b) EBITDA.
	 
	Target:	 	Not in excess of 3.00 to 1.00.
	 
	 	 	Funded Debt to EBITDA Ratio (Actual)

As of Fiscal Quarter ended _________: _________________

SUBSECTION 10.16(b): MINIMUM NET WORTH

	Test:	 	Measured as of each Covenant Compliance Date: Net Worth.
	 
	Target:	 	Not less than $600,000,000.
	 
	 	 	Net Worth

As of Fiscal Quarter ended __________: $__________________

SUBSECTION 10.16(c): INTEREST COVERAGE RATIO

	Test:	 	Measured as of each Covenant Compliance Date for the Covenant
Computation Period ending on such date: (a) EBIT divided by (b)
Interest Expense.
	 
	Target:	 	Not less than 4.00 to 1.00.
	 
	 	 	Interest Coverage Ratio (actual)

As of Fiscal Quarter ended ____________: _____________________

SUBSECTION 10.16(d): MINIMUM WORKING CAPITAL

	Test:	 	Current assets minus current liabilities.
	 
	Target:	 	Not less than $75,000,000
	 
	 	 	Current assets minus current liabilities (Actual)

As of Fiscal Quarter ended _____________: $_________________

Ex. 1.21 - 2

 

SCHEDULE A

DETAILED CALCULATIONS

FUNDED DEBT TO EBITDA (000’s)

Funded Debt (current measurement period)

Current Portion Long Term Debt

Capital Leases

Facility

Other

          Total Funded Debt

EBITDA (rolling 4 quarters)

Net Income

Interest Expense

Federal and State Income Taxes

Extraordinary Losses

Depreciation

Amortization

Less:

Extraordinary Gains

Non-cash Patronage Income

          Total EBITDA

                    Funded Debt to EBITDA Ratio

                    Maximum Ratio Permitted 3.00 to 1.00

MINIMUM NET WORTH (000’s)

Total Assets

Less Total Liabilities

          Net Worth

INTEREST COVERAGE RATIO (000’s)

EBIT (rolling 4 quarters)

Net Income

Interest Expense

Federal and State Income Taxes

Extraordinary Losses

Less:

Extraordinary Gains

Non-cash Patronage Income

          Total EBIT

Interest Expense (rolling 4 quarters)

                    EBIT to Interest

                    Minimum Ratio Permitted 4.00 to 1.00

WORKING CAPITAL

Current Assets

Less Current Liabilities

          Working Capital

Sch. 1.21 - 3

 

EXHIBIT 1.76

SUBSIDIARIES

	 	 	 	 	 

	Kaw Pipe Line Company
	 	 	66.667	%
	Osage Pipeline Company, LLC
	 	 	50.00	%
	Jayhawk Pipeline, L.L.C.
	 	 	100	%
	McPherson Agricultural Products, LLC
	 	 	100	%

Ex. 1.76 - 1

 

EXHIBIT 2.3

BORROWING NOTICE

                                        , 20__

	 	 	 

	To:

	 	The Administrative Agent
	 
	 	 
	From:

	 	National Cooperative Refinery Association (“Borrower”)
	 
	 	 
	Re:

	 	Amended and Restated Credit Agreement dated as of January 31, 2011
(as amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), by and among Borrower, the Lenders
(as defined therein), and CoBank, ACB, as administrative agent for
the Lenders (in such capacity, the “Administrative Agent”)

           Pursuant to Section 2.3 of the Credit Agreement, Borrower hereby gives notice of its desire to
receive an Advance in accordance with the terms set forth below (all capitalized terms used herein
and not defined herein shall have the meaning given them in the Credit Agreement):

	 	(a)	 	The Advance requested pursuant to this Borrowing Notice shall be made on                     , 20_
[the date inserted must be a Banking Day and [the same Banking Day as]1 [not
less than three (3) Banking Days from]2 the date hereof].
	 
	 	(b)	 	The aggregate principal amount of the Advance requested hereunder shall be
                                                             
Dollars ($                    ).
	 
	 	(c)	 	The Advance requested hereunder shall initially bear interest at the [select
one]:
	 
	 	 	 	[ ] Base Rate and be treated as a Base Rate Loan;
	 
	 	 	 	[ ] LIBO Rate and be treated as a LIBO Rate Loan.
	 
	 	(d)	 	If the LIBO Rate is selected, the initial LIBO Rate Period shall be a ________________ month
period [select one, two, three, or six month period].
	 
	 	(e)	 	No Default or Event of Default exists, or will result from the making of the
Advance.
	 
	 	(f)	 	The conditions precedent set forth in Section 9.2 of the Credit Agreement are
fully satisfied as of the date of the Advance.

	 	 	 	 	 
	 	NATIONAL COOPERATIVE REFINERY ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	1	 	Applicable only to Base Rate Loans
	 
	2	 	Applicable only to LIBOR Loans

Ex. 2.3 - 1

 

 

EXHIBIT 2.4

NOTE

			
	 	 	 
	$                    
	 	Date: ____________

     FOR VALUE RECEIVED, NATIONAL COOPERATIVE REFINERY ASSOCIATION, a Kansas cooperative marketing
association (“Borrower”), promises to pay to the order of                                         (“Lender”) at the office of the
Administrative Agent (as defined in the Credit Agreement), at 5500 South Quebec Street, Greenwood
Village, Colorado 80111, or such other place as the Administrative Agent may direct in writing, in
lawful money of the United States of America and in immediately available funds, the principal sum
of                                          Dollars ( $                      ) or, if less, the aggregate unpaid principal amount of all Advances (including
Overnight Advances if Lender is the Overnight Lender) made by Lender to Borrower under the Amended
and Restated Credit Agreement dated as of January 31, 2011, by and among Borrower, the Lender, the
other lenders from time to time party thereto, and CoBank, ACB, as Administrative Agent (as
amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
together with interest on the unpaid principal balance hereof at such interest rates and payable at
such times as are specified in the Credit Agreement

     This Note is a Note as defined in the Credit Agreement, and is issued subject, and pursuant,
to the Credit Agreement, which among other things, provides for the amount and date of payments of
principal and interest required hereunder, acceleration of the maturity hereof upon the occurrence
of an Event of Default (as defined in the Credit Agreement), and prepayment hereof upon the
occurrence of certain events.

     Borrower shall pay all costs of collection, including reasonable attorneys’ fees and legal
expenses, if this Note is not paid when due, whether or not legal proceedings are commenced.

     Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

	 	 	 	 	 
	 	NATIONAL COOPERATIVE REFINERY ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Ex. 2.4 - 1

 

 

EXHIBIT 8.3

LITIGATION

Rosie Mae Solze Rankin, et al. v. NCRA et al.:

This is a wrongful death suit filed by Rosie Mae Solze Rankin, the surviving spouse of Jack
Rankin, deceased. It is alleged that, during his working career, Mr. Rankin was exposed to
asbestos and asbestos fibers at various locations in Kansas, Illinois, Nebraska, Missouri,
Iowa, California, Tennessee, West Virginia, New York, Ohio and Oklahoma. It is further
alleged that, as a result of his exposure, Mr. Rankin developed mesothelioma and died of
that form of cancer. Mrs. Rankin originally brought suit against 192 defendants. The
plaintiff seeks unspecified actual damages in an amount in excess of $50,000.00 and
unspecified punitive damages.

NCRA was served with summons and a copy of the petition filed in this case on February 9,
2009. NCRA responded to the petition by moving to dismiss. NCRA has likewise responded to
the Third Amended Complaint by filing a motion to dismiss. NCRA’s answer is not due until
twenty days after the court rules on the most recent motion to dismiss. No hearing on the
motion to dismiss has been set. According to NCRA’s local counsel, cases of this nature are
usually dismissed pursuant to stipulation if there is no testimony indicating exposure at
NCRA’s premises.

SemCrude, L.P., et al., Bankruptcy Court for the District of Delaware:

On July 22, 2008, SemCrude, L.P. and various affiliates, including SemGroup, L.P.
(collectively, “SemCrude”), as debtors-in-possession, each filed a voluntary petition for
relief under Chapter 11 of the United States Code, 11 U.S.C. §§ 101-1532 (the “Bankruptcy
Code”). NCRA and its affiliates, Jayhawk Pipeline, L.L.C. and Kaw Pipe Line Company, had in
place various arrangements with SemCrude relating to the purchase, sale, exchange and
transportation of crude oil and condensate, including, without limitation, a Net-Out
Agreement that provided for amounts due and owing to and from SemCrude and NCRA to be
“netted-out” on a monthly basis. Since that time, NCRA and SemCrude have cooperated in
reconciling all amounts due under the Net-Out Agreement. After effecting the setoff as
contemplated by the Net-Out Agreement, NCRA paid the incremental difference owed to SemCrude
for both pre-petition and post-petition amounts. While there remains a possibility that
either SemCrude or third parties could claim that additional amounts are due and owing by
NCRA (See, Samson and Arrow cases below), it is NCRA’s position that the offset procedure is
in compliance with the provisions of the Bankruptcy Code such that no additional amounts
should be due to SemCrude, other than as incurred in the ordinary course of business
pursuant to post-petition agreements.

Ex. 8.3 - 1

 

 

Samson Resources Company, et al. v. NCRA, et al.:

On July 13, 2009 and July 21, 2009, Samson Resources Company and various affiliates
(collectively, “Samson”) filed petitions in thirteen (13) different district courts in the
State of Oklahoma naming NCRA and seventeen (17) other defendants. All of these actions are
ancillary to the SemCrude bankruptcy matter described above. Samson alleges that it had a
perfected purchase money security interest in the proceeds of crude oil that was sold to
SemCrude and then to NCRA and the other defendants. Samson apparently filed these actions
after it was unsuccessful in obtaining the desired relief in the SemCrude bankruptcy case.
On July 31, 2009, NCRA and the other defendants joined in removing each of these cases to
the United States District Court for the Western District of Oklahoma. These cases were
then transferred to the United States Bankruptcy Court for the District of Delaware. The
plaintiffs filed motions requesting the Bankruptcy Court to retransfer the cases back to the
Western District of Oklahoma for remand back to the original state courts in which they were
filed. On December 13, 2010, the Bankruptcy Court issued its Opinion denying the motions,
and ruling that the action should remain in the Delaware Bankruptcy Court. On December 27,
2010, Samson filed a motion requesting that the Bankruptcy Court reconsider and reverse its
decision, or in the alternative, certify the Opinion for immediate appeal to the United
States Third Circuit Court of Appeals. The parties are still in the process of briefing
this motion.

Samson also filed two actions in New Mexico in State District Courts, and NCRA was served
effective August 26, 2009. These actions involve essentially the same defendants and the
same causes of action, except that the crude oil at issue was produced from New Mexico
leases. The actions were removed to the United States District Court for the District of
New Mexico on September 9, 2009. On September 15, 2009, the defendants filed motions to
transfer these cases to the United States Bankruptcy Court in Delaware. On September 25,
2009, NCRA filed separate motions to dismiss alleging that the New Mexico Courts lack
personal jurisdiction over NCRA. On September 25, 2009, Samson filed motions requesting
that the action be remanded back to the New Mexico State District Courts in which they were
originally filed. All of the motions are presently pending and awaiting rulings by the
United States District Court.

Arrow Oil & Gas, Inc. v. NCRA, et al. / Anistine & Musgrove, Inc. v. NCRA, et al.:

On May 3, 2010, (i) fifty-four (54) oil producers joined together to file an action against
NCRA and sixteen (16) other purchasers in Pratt County, Kansas, and (ii) thirty-three (33)
oil producers joined together to file an action against NCRA and eighteen (18) other
producers in Pottawotomie County, Oklahoma, all asserting the same type of claims as in the
Samson matter described above, and alleging the same theories. NCRA and the other producers
removed the cases to the United States District Courts for the States of Kansas and
Oklahoma, respectively, and also filed motions to transfer the cases to the United States
Bankruptcy Court in Delaware. The plaintiffs filed motions to remand the cases back to the
original state courts in which they were filed. The motions to remand were

Ex. 8.3 - 2

 

 

denied and the cases have been transferred to the United States Bankruptcy Court in
Delaware.

The plaintiffs filed a motion requesting the Bankruptcy Court to retransfer the Oklahoma
action back to the District Court of Oklahoma for remand back to the Oklahoma state court in
which it was filed. On December 13, 2010, the Bankruptcy Court issued its Opinion denying
the plaintiffs’ motion, and ruling that the action should remain in the Delaware Bankruptcy
Court. On December 27, 2010, the plaintiffs filed a “Motion in Aid of December 13, 2010
Order,” that requests the Bankruptcy Court to reconsider and reverse its Opinion. The
parties are still in the process of briefing this motion.

For some unknown reason, although the Kansas District Court directed the Kansas action to be
transferred to the United States Bankruptcy Court for the District of Delaware, the case
went to the United States District Court for the District of Delaware. Typically, the
District Court would automatically refer the action to the Delaware Bankruptcy Court. The
plaintiffs and the defendants have filed a stipulation to have the action referred on to the
Delaware Bankruptcy Court, but the District Court has not yet acted on the stipulation.

NCRA v. TransCanada Keystone Pipeline, et al.:

On October 9, 2009, NCRA filed a Statement of Claim in the Court of Queen’s Bench, Judicial
District of Calgary, naming TransCanada Keystone Pipeline GP Ltd., TransCanada Keystone
Pipeline Limited Partnership (collectively, “Keystone”) and certain unknown engineers and
engineering firms as defendants. NCRA’s Statement of Claim alleges that Keystone made
various misrepresentations to NCRA prior to NCRA entering into Transportation Service
Agreements to ship oil on the Keystone pipeline. NCRA’s Statement of Claim alleges that the
unknown engineers were negligent and/or made negligent misrepresentations in preparing the
cost estimates relative to the project costs and/or pipeline tolls. As of September 23,
2010, NCRA’s local counsel in Calgary made arrangements with counsel for Keystone to accept
service of process, with the understanding that NCRA will not require Keystone to file
responsive pleadings while the parties endeavor to settle their differences. The parties
have since reached an agreement in principle to dismiss the litigation, and counsel for NCRA
and Keystone are negotiating the settlement documentation.

Ex. 8.3 -  3

 

 

EXHIBIT 8.9

REQUIRED LICENSES

1. Honeywell — OS Systems/Hardware License

2. Control Systems International (Scada) License

3. Allegro Development License

4. Oracle License

8. General Electric License

Ex. 8.9 -  1

 

 

EXHIBIT 8.10

EMPLOYEE BENEFIT PLANS

Employee Retirement Plan

Savings & Retirement Plan

Supplemental Retirement Plan

Thrift Plan (Non-Union)

Union Savings Plan

Union & Non-Union Medical & Dental Plans

Union & Non-Union Long Term Disability

Union & Non-Union Life Insurance

Cafeteria Plan (Union & Non-Union)

Postretirement Medical & Dental Plan for Bargained Employees

Postretirement Medical & Dental Plan for Non-Bargained Employees

Postretirement Split-Dollar Life Insurance

Ex. 8.10 - 1

 

 

EXHIBIT 8.11

EQUITY INVESTMENTS

	 	 	 	 	 
	Subsidiary	 	Investment	 
	1. Jayhawk Pipeline, L.L.C.
	 	$	36,723,222	 
	2. Kaw Pipe Line Company
	 	$	1,913,176	 
	3. Osage Pipeline Company, LLC
	 	$	5,263,486	 
	4. McPherson Agricultural Products, LLC
	 	 	($6,769,151	)

Ex. 8.11 -  1

 

 

EXHIBIT 8.18

INTELLECTUAL PROPERTY

TRADEMARKS AND TRADEMARK APPLICATIONS

United States — Federal

	 	 	 	 	 	 	 	 	 
	 	 	Trademark	 	 	 	 
	Trademark Serial	 	Registration	 	 	 	 
	Number	 	Number	 	Date of Filing	 	Date of Registration
	73594230

	 	1435883	 	 	4/18/86
	 	4/7/87

     Trademark for NCRA logo.

Ex. 8.18 - 1

 

 

EXHIBIT 11.1

EXISTING INDEBTEDNESS

	 	 	 	 	 

	Bonds
	 	$	1,000,000	 
	 
	 	 	 	 
	CHS Private Placement
	 	$	56,250,000	 
	5.25% 10-year unsecured term loan payable in
equal semi-annual installments through 2015
	 	 	 	 

Ex. 11.1 - 1

 

 

EXHIBIT 11.3

EXISTING LIENS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Filing	 
	Jurisdiction	 	 	Secured Party	 	Filing No.	 	 	Date	 
	Kansas Secretary of State	 	Security Bank of Kansas City and City of McPherson, Kansas
	 	 	95031000	 	 	 	12/27/06	 
	Kansas Secretary of State	 	Deere Credit, Inc.
	 	 	96367826	 	 	 	06/10/08	 
	Kansas Secretary of State	 	Deere Credit, Inc.
	 	 	96367834	 	 	 	06/10/08	 
	Kansas Secretary of State	 	Deere Credit, Inc.
	 	 	96367842	 	 	 	06/10/08	 
	Kansas Secretary of State	 	Textron Financial Corporation
	 	 	70614271	 	 	 	11/26/08	 
	Kansas Secretary of State	 	Natural Gas Exchange Inc.
	 	 	6606677	 	 	 	06/18/09	 

Ex. 11.3 - 1

 

 

EXHIBIT 11.8

EXISTING INVESTMENTS

None.

Ex. 11.8 - 1

 

 

EXHIBIT 11.13(b)

FORM OF MEMBER LOAN DOCUMENTATION

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (the “Agreement”) is made and entered into as of this _____ day of
________, 20___,

	 	 	 	 	 

	 

	 	BY AND BETWEEN
	 	NATIONAL COOPERATIVE REFINERY ASSOCIATION,
	 

	 	 	 	a Kansas cooperative marketing association, hereinafter
referred to as
	 
	 	 	 	 
	 

	 	 	 	“NCRA”
	 
	 	 	 	 
	 

	 	AND
	 	_____________________,
	 

	 	 	 	a ____________________, hereinafter referred to as
	 
	 	 	 	 
	 

	 	 	 	“Borrower”

     WHEREAS, NCRA is willing to loan from time to time, on a short-term basis, an amount of money
to NCRA’s owners based upon NCRA’s Excess Working Capital (hereinafter defined), if any; and

     WHEREAS, Borrower and NCRA’s other owners from time to time have needs for short-term
borrowings and may wish to borrow a portion of any Excess Working Capital NCRA may have.

     NOW, THEREFORE, in consideration of the covenants contained herein, the parties agree as
follows:

	 	1.	 	Revolving Loan.

	 	(a)	 	Credit Amount. NCRA agrees, on the terms and conditions of this
Agreement, to make short-term loans from time to time to Borrower in principal
amounts not to exceed the amount available based upon NCRA’s Excess Working Capital
multiplied by Borrower’s Percentage (such principal amount being hereinafter referred
to as the “Standard Credit Amount”). For purposes of this Agreement, the term
“Excess Working Capital” shall mean such amount, if any, that NCRA’s current assets
(excluding from current assets all loans made to Borrower pursuant to this Agreement
and all similar loans made to other Members, as hereinafter defined), determined in
accordance with generally accepted accounting principles (“GAAP”), minus current
liabilities, determined in accordance with GAAP,

Ex. 11.13(b) - 1

 

 

	 	 	 	exceeds Twenty Million Dollars ($20,000,000). For purposes of this Agreement, the
term “Borrower’s Percentage” shall mean the percentage of Borrower’s business
conducted with NCRA, as calculated for patronage, as of the end of the immediately
preceding fiscal year, namely _________________ percent (____%).
	 
	 	 	 	In the event one (1) or more of the owners of NCRA, namely Borrower, ______________
and ________________ (collectively, the “Members”) do not fully participate in this
short-term loan program by not borrowing from NCRA all of its or their Standard
Credit Amount (such unborrowed amount shall hereinafter be referred to as the
“Excess Credit Amount”), then Borrower shall have the right to borrow all or a
portion of the Excess Credit Amount in addition to Borrower’s Standard Credit
Amount, subject to the limitations set forth below. The amount of the available
Excess Credit Amount which Borrower can additionally borrow shall equal (i)
Borrower’s Percentage divided by the sum of the percentages of those Members
desiring to borrow the available Excess Credit Amount (i.e., excluding the
percentages of all Members who do not participate), multiplied by (ii) the Excess
Credit Amount (such principal amount being hereinafter referred to as “Borrower’s
Share of Excess Credit Amount”). In the event any Member desiring to borrow the
Excess Credit Amount does not borrow its share of the Excess Credit Amount to which
it is entitled hereunder, any such unborrowered Excess Credit Amount shall then be
made available to the other Members desiring to borrow the unused Excess Credit
Amount using the same procedure set forth above and subject to the other limitations
set forth below. For purposes of this Agreement, the term “Maximum Credit Amount”
shall mean collectively the Standard Credit Amount and Borrower’s Share of Excess
Credit Amount, if any; provided, however, in no event shall the Maximum Credit
Amount exceed the lesser of the following: (i) an amount in excess of two (2) times
the Standard Credit Amount; and (ii) the value of the NCRA Class B common stock held
by Borrower from time to time. Borrower shall at no time request an advance in an
amount which would result in the outstanding balance exceeding the Maximum Credit
Amount and Member shall promptly upon discovery advise NCRA of the fact and amount
of any decrease in the amount of credit available to Borrower under the limitations
and requirements set forth above.
	 
	 	 	 	At no time during the life of the loan(s) may the outstanding total aggregate amount
of the loan(s) exceed the value of the NCRA Class B common stock held by Borrower.
In the event any part of the NCRA Class B common stock held by Borrower is redeemed,
retired, or in any way decreases in value to an amount that is less than the total
aggregate amount of the outstanding loan(s), Borrower must immediately repay all or
part of the loan(s) that exceed the value of the NCRA Class B common stock held by
Borrower.
	 
	 	 	 	Each loan requested by Borrower under this Agreement shall be an amount of not less
than Ten Thousand Dollars ($10,000) and each loan amount shall be a multiple of Ten
Thousand Dollars ($10,000). Determination of the daily amount available for loaning
based upon NCRA’s Excess Working Capital shall be determined solely by NCRA. Upon
determination of the daily amount available

Ex. 11.13(b) - 2

 

 

	 	 	 	for loaning by NCRA, Borrower may borrow (subject to the Ten Thousand Dollar
($10,000) loan multiple) up to the Maximum Credit Amount less the principal balance
of any other outstanding loans pursuant to this Agreement.

	 	(b)	 	Term of Loan. NCRA shall have the right to limit the term of any specific
loan. Subject to NCRA limiting the term for any specific loan, the maximum term of any
loan shall be thirty-one (31) days. Borrower shall have the right for any loan to select
the term thereof not in excess of thirty-one (31) days or such shorter term as NCRA shall
have designated. In each case where Borrower elects to borrow all or part of its
available Excess Credit Amount, the loans relative to the Standard Credit Amount and the
related Excess Credit Amount shall be coterminous.

     2. Notes. The loan(s) made pursuant to this Agreement shall be evidenced by a note of
the Borrower payable to NCRA in substantially the form of Exhibit A attached hereto.

     3. Notice and Method of Borrowing. NCRA shall provide each business day to Borrower
the Maximum Credit Amount available to Borrower (the “Daily Notice”) except during the times when
Borrower has outstanding loans totaling the Maximum Credit Amount. Whenever Borrower desires to
obtain a loan hereunder, Borrower shall notify NCRA (which notice shall be irrevocable) by e-mail
(addressed to kstos@ncra.coop and jvoth@ncra.coop or to such other e-mail addresses as NCRA shall
designate from time to time) or by telefax received by NCRA no later than 10:00 a.m. (local time in
McPherson, Kansas) on the same day of the Daily Notice, specifying (a) the amount of such borrowing
and (b) the term of the loan. Upon receipt of such notices from Borrower and the other Members of
NCRA, NCRA shall provide to Borrower notice of any Excess Credit Amount which Borrower has the
right to borrow, and Borrower shall notify NCRA (which notice shall be irrevocable) by e-mail or
telefax received by NCRA no later than 11:30 a.m. (local time in McPherson, Kansas) that same day,
specifying the amount of the Excess Credit Amount which Borrower desires to borrow, it being
understood that the term of the loan shall be for the same term as the loan relating to the
Standard Credit Amount. NCRA shall then, not later than 2:59 p.m. (local time in McPherson,
Kansas), initiate the wire transfer of the principal of the loan to an account designated in
writing by Borrower. Prior to the first loan to Borrower hereunder, Borrower shall certify to NCRA
the officer or officers of Borrower who are authorized to consummate transactions under this
Agreement, and NCRA may conclusively rely on such certification until it shall receive notice in
writing to the contrary.

	 	4.	 	Interest Rates and Payment Dates.

	 	(a)	 	Each loan shall bear interest at a rate equal to the greater of (i) the
then applicable Federal short-term rate (semi-annual compounding) as determined under
Section 7872(d) of the Internal Revenue Code of 1986, as amended, and (ii) the short-
term investment rate then available to NCRA.
	 
	 	(b)	 	Principal and interest on each loan shall be paid in full by Borrower on
the due date of the loan. Borrower shall, no later than 11:59 a.m. (local time in
McPherson, Kansas) on the due date of the loan, wire transfer all principal and

Ex. 11.13(b) - 3

 

 

	 	 	 	accrued interest due on the loan to such account of NCRA as shall be designated in
writing by NCRA.
	 
	 	(c)	 	Upon the occurrence of an event of default, the unpaid balance of all
amounts owing hereunder, whether for principal, interest, or otherwise, shall bear
interest from the date of such event of default at a per annum rate equal to the
Adjustable Short-Term Note Rate of the CoBank, ACB plus five (5) percentage points.
	 
	 	(d)	 	If any payment required to be made hereunder becomes due and payable on a
day other than a business day, the due date thereof shall be extended to the next
succeeding business day and additional interest thereon shall be payable.

     5. Term and Termination. The loan program hereunder shall be available from the date
hereof until the earliest of (a) the occurrence of a default on the part of Borrower or (b) one (1)
business day prior to nine (9) months from the date of this Agreement (i.e. October 3, 2008).

     6. Events of Defaults. Any one or more of the following events shall constitute a
default under this Agreement:

	 	(a)	 	Borrower shall default in the payment, when due, of any principal of or
interest on the loan or any other sum payable by Borrower under this Agreement; or
	 
	 	(b)	 	Borrower fails or neglects to perform, keep or observe any term, provision,
condition, covenant, or agreement contained in this Agreement.

     7. Rights and Powers. If a default on the part of Borrower under this Agreement shall
have occurred and shall not have been cured or waived by NCRA within five (5) days from the date of
default, NCRA shall have all of the rights and powers set forth in this Agreement, and may, in its
sole discretion, without notice of election and without demand, do any one or more of the
following, all of which are hereby authorized by Borrower:

	 	(a)	 	Declare all obligations evidenced by this Agreement to be immediately due
and payable;
	 
	 	(b)	 	Cease advancing money or extending credit to or for the benefit of Borrower
under this Agreement or any other agreement between Borrower and NCRA; and
	 
	 	(c)	 	Terminate this Agreement as to any future liability or obligation of NCRA,
but without affecting the obligations owing by Borrower to NCRA.

     8. Waivers. No delay on the part of NCRA in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver on the part of NCRA of any right,
power or privilege hereunder, nor shall any single or partial exercise of any right, power or
privilege hereunder, preclude any other or further exercise or the exercise of any other right,
power or privilege hereunder. The rights and remedies herein provided are cumulative and are not
exclusive of any rights or remedies which NCRA may otherwise have at law or in equity.

Ex. 11.13(b) - 4

 

 

     9. Notices. Unless otherwise provided in this Agreement, all notices or demands by
any party to this Agreement shall be in writing and sent by telefax or by certified United States
mail, return receipt requested, postage pre-paid, and properly addressed, and shall be effective
upon receipt by the party to which notice is given. For purposes of this Agreement, the addresses
of the parties hereto for purposes of notification shall be as follows:

	 	 	 	 	 

	 

	 	To Borrower:
	 	________________________
	 

	 	 	 	________________________
	 

	 	 	 	________________________
	 

	 	 	 	Attn: __________________________
	 
	 	 	 	 
	 

	 	To NCRA:
	 	National Cooperative Refinery Association
	 

	 	 	 	2000 South Main Street
	 

	 	 	 	McPherson, Kansas 67460
	 

	 	 	 	Attn: John G. Buehrle

     10. Choice of Law. This Agreement shall be governed by, and construed in accordance
with, the laws of the State of Kansas.

[Signatures follow on next page]

Ex. 11.13(b) - 5

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the
date first hereinabove written.

	 	 	 	 	 
	 	NATIONAL COOPERATIVE
 REFINERY ASSOCIATION

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

“NCRA”

_________________________

	 	 	 	 	 
	 	 	 
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

“Borrower”

Ex. 11.13(b) - 6

 

 

EXHIBIT A

REVOLVING LOAN NOTE

	 	 	 	 	 

	Lender:

	 	National Cooperative Refinery Association	 	 
	Borrower:

	 	______________________
	 	Date: ______ __, 20___

     FOR VALUE RECEIVED, Borrower hereby promises to pay to the order of Lender the total aggregate
principal sum of all monetary obligations of Borrower to Lender remaining unpaid arising out of
that certain Credit Agreement by and between Borrower and Lender and dated as of the ____ day of
_______, 20___ (the “Agreement”), together with interest on the unpaid principal balance hereof
from time to time outstanding from the date hereof until maturity at the times and rates set forth
in the Agreement.

     The amounts and dates of all loans and the amounts and dates of all payments thereon shall be
endorsed by Lender on the reverse hereof or on a grid in the form of the Schedule of Advances and
Payments attached hereto, which is a part of this Note. Any failure by Lender to endorse the
reverse hereof on such grid shall not negate the obligation of Borrower to repay amounts due and
owing hereunder. The principal amount of this Note outstanding from time to time is the principal
amount of all such loans made to Borrower by Lender less the amount of all principal payments made
thereon. In the event the outstanding total aggregate amount of the loans exceed the value of the
NCRA Class B common stock held by Borrower from time to time, Borrower promises to immediately
repay all or part of the loans that exceed the value of the NCRA Class B common stock held by
Borrower.

     No liability shall arise against any holder or holders hereof from any act, or the omission of
any act, pertaining to the collection of, or failure to collect, any collateral which the holder or
holders hereof may hold to secure this obligation.

     The maker, endorsers, and guarantors of this Note hereby waive demand for payment, notice of
presentment, protest, notice of protest, and notice of dishonor.

     This Note is subject to such other rights as are provided in Lender’s Bylaws, as amended.

     This Note is referred to in, and governed by, the Agreement, and all of the conditions, terms,
provisions, representations, and agreements contained in the Agreement (including, without
limitation, the provisions for acceleration of the maturity hereof upon the happening of certain
stated events) are hereby incorporated herein and made a part hereof.

	 	 	 

	          

	 	

	 	 	 	 	 
	 	 	 
	
	
	
	
	
	 	By  	
 	 
	 	 	Name:  	 	 
	 	 	Title 	 
	 
	 	“Borrower”	 

Ex. 11.13(b) - 7

 

SCHEDULE OF ADVANCES AND PAYMENTS

This Note evidences advances made pursuant to the within described Credit Agreement, in the amounts
and on the dates and subject to repayment of principal and interest all as set forth below:

	 	 	 	 	 	 	 	 	 	 	 	 	 

	Date of

Issue

	 	Amount
of 
 Loan
	 	Maturity

Date
	 	Amount of

Principal

Paid or

Prepaid
	 	Amount 

of

Interest

Paid
	 	Unpaid

Principal

Balance
	 	Notation

Made By

Ex. 11.13(b) - 8

 

EXHIBIT 14.25

ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [the][each]1 Assignor
identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and
agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are
several and not joint.]4 Capitalized terms used but not defined herein shall have the
meanings given to them in the Credit Agreement identified below (as amended, the “Credit
Agreement”), receipt of a copy of which is hereby acknowledged by [the][each] Assignee. The
Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and
incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

          For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] under the respective facilities
identified below (including without limitation any letters of credit, guarantees, and swingline
loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable
law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a
Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person,
whether known or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in
any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses
(i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).
Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by [the][any]
Assignor.

	 	 	 	 	 

	1.

	 	Assignor[s]:
	 	______________________

 

			
	1	 	For bracketed language here and elsewhere in
this form relating to the Assignor(s), if the assignment is from a single
Assignor, choose the first bracketed language. If the assignment is from
multiple Assignors, choose the second bracketed language.
	 
	2	 	For bracketed language here and elsewhere in
this form relating to the Assignee(s), if the assignment is to a single
Assignee, choose the first bracketed language. If the assignment is to
multiple Assignees, choose the second bracketed language.
	 
	3	 	Select as appropriate.
	 
	4	 	Include bracketed language if there are either
multiple Assignors or multiple Assignees.

Ex. 14.25 - 1

 

	 	 	 	 	 

	 

	 	 	 	____________________
	 
	 	 	 	 
	2.

	 	Assignee[s]:
	 	____________________
	 
	 	 	 	 
	 

	 	 	 	____________________
	 
	 	 	 	 
	3.

	 	Borrower:
	 	National Cooperative Refinery Association
	 
	 	 	 	 
	4.

	 	Administrative Agent:
	 	CoBank, ACB, as the administrative agent under
the Credit Agreement
	 
	 	 	 	 
	5.

	 	Credit Agreement:
	 	Amended and Restated Credit Agreement dated
as of January 31, 2011 among National
Cooperative Refinery Association, the
Lenders parties thereto, and CoBank, ACB, as
Administrative Agent
	 
	 	 	 	 
	6.

	 	Assigned Interest[s]:	 	 

	 	 	 	 	 	 	 	 	 

	 Assignor[s]5 
	 	 Assignee[s]6 	 	 Aggregate Amount of 
Individual Commitment/ 
Loans for all Lenders7 	 	 Amount of Individual 
Commitment/ Loans 
Assigned8 	 	 CUSIP 
Number 
	 
	 	 	 	$	 	$	 	 
	 
	 	 	 	$	 	$	 	 
	 
	 	 	 	$	 	$	 	 

	 	 	 	 	 

	[7.

	 	Trade Date:
	 	______________]8

 

			
	5	 	List each Assignor, as appropriate.
	 
	6	 	List each Assignee, as appropriate.
	 
	7	 	Amount to be adjusted by the counterparties to
take into account any payments or prepayments made between the Trade Date and
the Effective Date.
	 
	8	 	To be completed if the Assignor(s) and the
Assignee(s) intend that the minimum assignment amount is to be determined as of
the Trade Date.

Ex. 14.25 - 2

 

          Effective Date: _____________ ___, 20___ [TO BE INSERTED BY ADMINISTRATIVE AGENT AND WHICH
SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

          The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	 ASSIGNOR[S]9 

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	 ASSIGNEE[S]10 

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 	[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 

 

			
	9	 	Add additional signature blocks as needed.
	 
	10	 	Add additional signature blocks as needed.

Ex. 14.25 - 3

 

[Consented to and]11 Accepted:

[NAME OF ADMINISTRATIVE AGENT], as

Administrative Agent

	 	 	 	 	 
	By  	 	 
	 	Title: 	 
	 	 	 

[Consented to:]12

[NAME OF RELEVANT PARTY]

	 	 	 	 	 
	By  	 	 
	 	Title: 	 
	 	 	 

 

			
	11	 	To be added only if the consent of the
Administrative Agent is required by the terms of the Credit Agreement.
	 
	12	 	To be added only if the consent of Borrower
and/or other parties (e.g. Letter of Credit Bank) is required by the terms of
the Credit Agreement.

Ex. 14.25 - 4

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

          1.1 Assignor[s]. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][the relevant] Assigned Interest, (ii) [the][such] Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality,
validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of Borrower, any of its Subsidiaries or Affiliates or any
other Person obligated in respect of any Loan Document or (iv) the performance or observance by
Borrower, any of its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

          1.2. Assignee[s]. [The][Each] Assignee (a) represents and warrants that (i) it has
full power and authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated hereby and to become a
Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under the
Credit Agreement (subject to such consents, if any, as may be required under Section 14.25 of the
Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of
the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned
Interest, shall have the obligations of a Lender thereunder, (iv) it is sophisticated with respect
to decisions to acquire assets of the type represented by the Assigned Interest and either it, or
the person exercising discretion in making its decision to acquire the Assigned Interest, is
experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement,
and has received or has been accorded the opportunity to receive copies of the most recent
financial statements delivered pursuant to the Credit Agreement, as applicable, and such other
documents and information as it deems appropriate to make its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it
has, independently and without reliance upon the Administrative Agent or any other Lender and based
on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, and (vii) if it is a Foreign Lender, attached to the Assignment and Assumption is any
documentation required to be delivered by it pursuant to the terms of the Credit Agreement, duly
completed and executed by [the][such] Assignee; and (b) agrees that (i) it will, independently and
without reliance on the Administrative Agent, [the][any] Assignor or any other Lender, and based on
such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform
in accordance with their terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

Ex. 14.25 - 5

 

          2. Payments. From and after the Effective Date, the Administrative Agent shall make
all payments in respect of [the][each] Assigned Interest (including payments of principal,
interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to
but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued
from and after the Effective Date.

          3. General Provisions. This Assignment and Assumption shall be binding upon, and inure
to the benefit of, the parties hereto and their respective successors and assigns. This Assignment
and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Assumption by telecopy shall be effective as delivery of a manually executed counterpart of this
Assignment and Assumption. This Assignment and Assumption shall be governed by, and construed in
accordance with, the law of the State of Colorado.

Ex. 14.25 - 6

 

EXHIBIT 14.27

WIRE TRANSFER INSTRUCTIONS

When funds are to be wired to CoBank, including in its role as the Administrative Agent, by any
Lender or by Borrower, the following wiring information must be used:

	 	 	 

	To:

	 	CoBank, ACB
	 

	 	Greenwood Village, CO
	 

	 	ABA Routing No.: 307088754
	 

	 	Account No./ Account Name:

When funds are to be wired to U.S. AgBank, FCB, the following wiring information must be used:

	 	 	 

	 

	 	On File with Administrative Agent.

Ex. 14.27 - 1

 

SCHEDULE 1

LENDERS AND INDIVIDUAL COMMITMENTS

	 	 	 	 	 
	Lender	 	Individual
	Name/Address	 	Commitment
	CoBank, ACB

	 	$	7,500,000	 
	5500 So. Quebec Avenue
	 	 	 	 
	Greenwood Village, Co 80111
	 	 	 	 
	 
	 	 	 	 
	Attention: Syndications
	 	 	 	 
	Phone: (303) 740-6504
	 	 	 	 
	Fax: (303) 740-1021
	 	 	 	 
	Email: Agencybank@cobank.com
	 	 	 	 
	 
	 	 	 	 
	U.S. AgBank, FCB

	 	$	7,500,000	 
	245 N. Waco Street
	 	 	 	 
	Wichita, KS 67201-2940
	 	 	 	 
	 
	 	 	 	 
	Attention: Travis Ball
	 	 	 	 
	Phone: (316) 266-5448
	 	 	 	 
	Email: Travis.Ball@USAgBank.com
	 	 	 	 

Sch. 1 - 1exv4w1

Exhibit 4.1

RPM International Inc., Issuer

and

The Bank of New York Trust Company, N.A., Trustee

Indenture

Dated
as of February
14, 2008

DEBT SECURITIES

 

 

RPM International Inc.

Debt Securities

Cross Reference Sheet1

This Cross Reference Sheet shows the location in the

Indenture of the provisions inserted pursuant

to Sections 310 — 318(a), inclusive, of the

Trust Indenture Act of 1939, as amended.

	 	 	 
	Trust Indenture Act	 	Sections of Indenture
	§310(a)(1)
	 	9.08
	(a)(2)
	 	9.08
	(a)(3)
	 	Inapplicable
	(a)(4)
	 	Inapplicable
	(a)(5)
	 	9.08
	(b)
	 	9.07 and 9.09
	(c)
	 	Inapplicable
	§311(a)
	 	9.12
	(b)
	 	9.12
	(c)
	 	Inapplicable
	§312(a)
	 	7.01 and 7.02
	(b)
	 	7.02
	(c)
	 	7.02
	§313(a)
	 	7.03
	(b)
	 	7.03
	(c)
	 	7.03
	(d)
	 	7.03
	§314(a)
	 	7.04
	(a)(4)
	 	1.01
	(b)
	 	Inapplicable
	(c)(l)
	 	13.05
	(c)(2)
	 	13.05
	(c)(3)
	 	Inapplicable
	(d)
	 	Inapplicable
	(e)
	 	13.05
	(f)
	 	Inapplicable
	§315 (a)
	 	9.01
	(b)
	 	8.08
	(c)
	 	9.01
	(d)
	 	9.01
	(e)
	 	8.07
	§316 (a)
	 	1.01

 

			
	1	 	The Cross Reference Sheet is not part of the
Indenture.

 

 

	 	 	 
	Trust Indenture Act	 	Sections of Indenture
	(a)(l)(A)
	 	8.01 and 8.06
	(a)(l)(B)
	 	8.01
	(a)(2)
	 	Inapplicable
	(b)
	 	8.09
	(c)
	 	13.11
	§317(a)(1)
	 	8.02
	(a)(2)
	 	8.02
	(b)
	 	6.03
	§318(a)
	 	13.08

(2)

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE
I. DEFINITIONS
	 	 	8	 
	 
	 	 	 	 
	Section 1.01. Certain Terms Defined.
	 	 	8	 
	 
	 	 	 	 
	ARTICLE
II. THE SECURITIES
	 	 	17	 
	 
	 	 	 	 
	Section 2.01. Designation and Amount of Securities.
	 	 	17	 
	Section 2.02. Form of Securities and Trustee’s Certificate of Authentication.
	 	 	18	 
	Section 2.03. Date and Denominations.
	 	 	19	 
	Section 2.04. Execution, Authentication and Delivery of Securities.
	 	 	19	 
	Section 2.05. Registration of Transfer and Exchange.
	 	 	20	 
	Section 2.06. Temporary Securities.
	 	 	22	 
	Section 2.07. Mutilated, Destroyed, Lost, and Stolen Securities.
	 	 	23	 
	Section 2.08. Cancellation of Surrendered Securities.
	 	 	23	 
	Section 2.09. Payment of Interest; Interest Rights Preserved.
	 	 	24	 
	Section 2.10. Persons Deemed Owners.
	 	 	25	 
	Section 2.11. Computation of Interest.
	 	 	25	 
	Section 2.12. CUSIP Numbers.
	 	 	25	 
	 
	 	 	 	 
	ARTICLE
III. REDEMPTION OF SECURITIES
	 	 	26	 
	 
	 	 	 	 
	Section 3.01. Applicability of Article.
	 	 	26	 
	Section 3.02. Election to Redeem; Notice to Trustee.
	 	 	26	 
	Section 3.03. Deposit of Redemption Price.
	 	 	27	 
	Section 3.04. Securities Payable on Redemption Date.
	 	 	27	 
	Section 3.05. Securities Redeemed in Part.
	 	 	27	 
	 
	 	 	 	 
	ARTICLE
IV. SINKING FUNDS
	 	 	28	 
	 
	 	 	 	 
	Section 4.01. Applicability of Article.
	 	 	28	 
	Section 4.02. Satisfaction of Sinking Fund Payments With Securities.
	 	 	28	 
	Section 4.03. Redemption of Securities for Sinking Fund.
	 	 	28	 
	 
	 	 	 	 
	ARTICLE
V. DEFEASANCE AND COVENANT DEFEASANCE
	 	 	29	 
	 
	 	 	 	 
	Section 5.01. Company’s Option to Effect Defeasance or Covenant Defeasance.
	 	 	29	 
	Section 5.02. Defeasance and Discharge.
	 	 	29	 
	Section 5.03. Covenant Defeasance.
	 	 	29	 
	Section 5.04. Conditions to Defeasance or Covenant Defeasance.
	 	 	30	 
	Section 5.05. Deposited Money and U.S. Government Obligations to be Held in Trust;
Other Miscellaneous Provisions.
	 	 	31	 
	Section 5.06. Reinstatement.
	 	 	32	 
	 
	 	 	 	 
	ARTICLE
VI. PARTICULAR COVENANTS OF THE COMPANY
	 	 	32	 
	 
	 	 	 	 
	Section 6.01. Payment of Principal, Premium and Interest on Securities.
	 	 	32	 
	Section 6.02. Maintenance of Office or Agency.
	 	 	33	 
	Section 6.03. Money for Securities Payments to be Held in Trust.
	 	 	33	 
	Section 6.04. Existence.
	 	 	34	 
	Section 6.05.
Compliance Certificate.
	 	 	34	 
	Section 6.06. Waiver of Certain Covenants.
	 	 	35	 
	Section 6.07. Calculation of Original Issue Discount.
	 	 	35	 
	 
	 	 	 	 
	ARTICLE
VII. SECURITIES HOLDER’S LIST AND REPORTS BY THE COMPANY AND THE
TRUSTEE
	 	 	36	 
	 
	 	 	 	 
	Section 7.01. Company to Furnish Trustee Names and Addresses of Holders.
	 	 	36	 
	Section 7.02. Preservation of Information; Communication to Holders.
	 	 	36	 
	Section 7.03. Reports by Trustee.
	 	 	36	 
	Section 7.04. Reports by Company.
	 	 	37	 

(i)

 

	 	 	 	 	 
	ARTICLE
VIII. DEFAULT
	 	 	37	 
	 
	 	 	 	 
	Section 8.01. Event of Default.
	 	 	37	 
	Section 8.02. Covenant of Company to Pay to Trustee Whole Amount Due on Securities
on Default in Payment of Interest or Principal; Suits for Enforcement by Trustee
	 	 	40	 
	Section 8.03. Application of Money Collected by Trustee
	 	 	41	 
	Section 8.04. Limitation on Suits by Holders of Securities
	 	 	42	 
	Section 8.05. Rights and Remedies Cumulative; Delay or Omission in Exercise of
Rights not a Waiver of Event of Default
	 	 	42	 
	Section 8.06. Rights of Holders of Majority in Principal Amount of Outstanding
Securities to Direct Trustee
	 	 	43	 
	Section 8.07. Requirement of an Undertaking to Pay Costs in Certain Suits Under the
Indenture or Against the Trustee
	 	 	43	 
	Section 8.08. Notice of Defaults
	 	 	43	 
	Section 8.09. Unconditional Right of Holders to Receive Principal, Premium, and Interest
	 	 	43	 
	Section 8.10. Restoration of Rights and Remedies
	 	 	43	 
	Section 8.11. Trustee May File Proofs of Claims
	 	 	44	 
	 
	 	 	 	 
	ARTICLE
IX. CONCERNING THE TRUSTEE
	 	 	44	 
	 
	 	 	 	 
	Section 9.01. Certain Duties and Responsibilities
	 	 	44	 
	Section 9.02. Certain Rights of Trustee
	 	 	45	 
	Section 9.03. Not Responsible for Recitals or Issuance of Securities
	 	 	47	 
	Section 9.04. May Hold Securities
	 	 	47	 
	Section 9.05. Money Held in Trust
	 	 	47	 
	Section 9.06. Compensation and Reimbursement
	 	 	48	 
	Section 9.07. Disqualification; Conflicting Interests
	 	 	48	 
	Section 9.08. Corporate Trustee Required; Eligibility
	 	 	48	 
	Section 9.09. Resignation and Removal; Appointment of Successor.
	 	 	49	 
	Section 9.10. Acceptance of Appointment by Successor
	 	 	50	 
	Section 9.11. Merger, Conversion, Consolidation, or Succession to Business
	 	 	51	 
	Section 9.12. Preferential Collection of Claims Against Company
	 	 	52	 
	Section 9.13. Appointment of Authenticating Agent
	 	 	52	 
	Section 9.14. Trustee’s Application for Instructions from the Company
	 	 	53	 
	 
	 	 	 	 
	ARTICLE
X. SUPPLEMENTAL INDENTURES AND CERTAIN ACTIONS
	 	 	54	 
	 
	 	 	 	 
	Section 10.01. Purposes for Which Supplemental Indentures May Be Entered Into
Without Consent of Holders
	 	 	54	 
	Section 10.02. Modification of Indenture with Consent of Holders of at Least a
Majority in Principal Amount of Outstanding Securities
	 	 	55	 
	Section 10.03. Execution of Supplemental Indentures
	 	 	56	 
	Section 10.04. Effect of Supplemental Indentures
	 	 	56	 
	Section 10.05. Conformity with Trust Indenture Act
	 	 	56	 
	Section 10.06. Reference in Securities to Supplemental Indentures.
	 	 	56	 
	 
	 	 	 	 
	ARTICLE
XI. CONSOLIDATION, MERGER, SALE, OR TRANSFER
	 	 	57	 
	 
	 	 	 	 
	Section 11.01. Consolidations and Mergers of Company and Sales Permitted Only on
Certain Terms
	 	 	57	 
	 
	 	 	 	 
	ARTICLE
XII. SATISFACTION AND DISCHARGE OF INDENTURE
	 	 	57	 
	 
	 	 	 	 
	Section 12.01. Satisfaction and Discharge of Indenture
	 	 	57	 
	Section 12.02. Application of Trust Money
	 	 	58	 
	 
	 	 	 	 
	ARTICLE
XIII. SUBORDINATION
	 	 	58	 
	 
	 	 	 	 
	ARTICLE
XIV. MISCELLANEOUS PROVISIONS
	 	 	60	 
	 
	 	 	 	 
	Section 14.01. Successors and Assigns of Company Bound by Indenture
	 	 	60	 

(ii)

 

	 	 	 	 	 
	Section 14.02. Service of Required Notice to Trustee and Company
	 	 	60	 
	Section 14.03. Service of Required Notice to Holders; Waiver
	 	 	61	 
	Section 14.04. Indenture and Securities to be Construed in Accordance with the Laws
of the State of New York
	 	 	61	 
	Section 14.05. Compliance Certificates and Opinions
	 	 	61	 
	Section 14.06. Form of Documents Delivered to Trustee
	 	 	62	 
	Section 14.07. Payments Due on Non-Business Days
	 	 	62	 
	Section 14.08. Provisions Required by Trust Indenture Act to Control
	 	 	62	 
	Section 14.09. Invalidity of Particular Provisions
	 	 	62	 
	Section 14.10. Indenture May be Executed In Counterparts
	 	 	63	 
	Section 14.11. Acts of Holders; Record Dates
	 	 	63	 
	Section 14.12. Effect of Headings and Table of Contents
	 	 	65	 
	Section 14.13. Benefits of Indenture
	 	 	65	 
	Section 14.14. Waiver of Jury Trial
	 	 	65	 
	Section 14.15. Force Majeure
	 	 	65	 

(iii)

 

     Indenture,
dated as of February 14, 2008 between RPM International Inc., a corporation duly
organized and existing under the laws of the state of Delaware (the “Company”), and The Bank of New
York Trust Company, N.A., a national banking association, (herein called the “Trustee”).

Recitals

          A. The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its unsecured debentures, notes, and other evidences of
indebtedness (the “Securities”), to be issued in one or more series as in this Indenture provided.

          B. The Securities of each series will be in substantially the form set forth below, or in such
other form as may be established by or pursuant to a Board Resolution or in one or more indentures
supplemental hereto, in each case with such appropriate insertions, omissions, substitutions, and
other variations as are required or permitted by this Indenture, and may have such letters,
numbers, or other marks of identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or as may, consistently herewith, be
determined by the officers executing such Securities, as evidenced by their execution of the
Securities.

[Form of Face of Security]

[Insert any legend required by the Internal

Revenue Code and the regulations thereunder.]

 

CUSIP No.           

			
	No. R -
	 	$                     

                              , a corporation duly organized and existing under the laws of the [state] of
                     (hereinafter called the “Company”, which term includes any successor Person under the
Indenture hereinafter referred to), for value received, hereby promises to pay to
                    , or registered assigns, the principal sum of $                     on                     
[if the Security is to bear interest prior to Maturity,
insert: “, and to pay interest thereon from or from the most recent Interest Payment Date to which interest has been paid or duly
provided for, on                      and                      in each year, commencing on                     , at the
rate of                     % per annum, until the principal hereof is paid or made available for payment [if
applicable, insert: “, and at the rate of                     % per annum on any overdue principal and premium
and on any overdue installment of interest”]. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest, which will be the                     or
                     (whether or not a Business Day), as the case may be, next preceding such Interest
Payment Date. Any such interest not so

 

 

punctually paid or duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof will be given to
Holders of Securities of this series not less than 10 calendar days prior to such Special Record
Date, or be paid at any time in any other lawful manner not inconsistent with the requirements of
any securities exchange on which the Securities of this series may be listed, and upon such notice
as may be required by such exchange, all as more fully provided in
said Indenture”].

          [If the Security is not to bear interest prior to Maturity, insert: “The principal of
this Security will not bear interest except in the case of a default in payment of principal upon
acceleration, upon redemption, or at Stated Maturity, and in such case the overdue principal of
this Security will bear interest at the rate of _% per annum which will accrue from the date of
such default in payment to the date payment of such principal has been made or duly provided for.
Interest on any overdue principal will be payable on demand. Any such interest on any overdue
principal that is not so paid on demand will bear interest at the rate of _% per annum which will
accrue from the date of such demand for payment to the date payment of such interest has been made
or duly provided for, and such interest will also be payable on demand.”]

          Payment of the principal of (and premium, if any) and [if applicable, insert: any such
interest on this Security will be made at the office or agency of the Company maintained for the
purpose in                     , in such coin or currency of the United States of America as at the
time of payment is legal tender for payment of public and private debts [if applicable,
insert: “; provided, however, that at the option of the Company payment of
interest may be made by check mailed to the address of the Person
entitled thereto as such address appears in the Security Register”].

          REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS SET FORTH ON THE REVERSE HEREOF. SUCH
PROVISIONS WILL FOR ALL PURPOSES HAVE THE SAME EFFECT AS THOUGH FULLY SET FORTH IN THIS PLACE.

          This Security will not be valid or become obligatory for any purpose until the certificate of
authentication herein has been signed manually by the Trustee under the Indenture referred to on
the reverse side hereof.

          IN WITNESS WHEREOF, this instrument has been duly executed in accordance with the Indenture.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Attest:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

-2-

 

[Form of Reverse of Security]

 

          This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”) and is to be issued in one or more series under an Indenture, dated as of
                    , 2008 (herein called the “Indenture “), between the Company and The Bank of New York
Trust Company, N.A., as Trustee (herein called the “Trustee ”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference
is hereby made for a statement of the respective rights, limitations of rights, duties, and
immunities thereunder of the Company, the Trustee, and the Holders of the Securities and of the
terms upon which the Securities are, and are to be, authenticated and delivered. This Security is
one of the series designated on the face hereof if applicable, insert: “, limited in
aggregate principal amount to
$     ”].

          [If
applicable, insert: “The Securities of this series are subject to redemption upon
not less than 30 calendar days’ notice by mail, [if applicable, insert: “(a) on                     
in each year commencing with the       year and ending with the year       through operation of the
sinking fund for this series at a Redemption Price equal to 100% of the principal amount, and (b)”]
at any time [if applicable, insert: ”on or after
     ,      ”], as a whole or in part, at
the election of the Company, at the following Redemption Prices (expressed as percentages of the
principal amount): If redeemed [If applicable, insert: ”on or before                     ,
     %, and if redeemed during the 12-month period beginning                     of the years
indicated,

	 	 	 	 	 	 	 
	 
Year

	 	Redemption

Price
	 	 
Year
	 	Redemption

Price
	 

	 	 
	 	 
	 	 

and thereafter at a Redemption Price equal to _% of the principal amount, together in the case of
any such redemption [if applicable, insert:  “(whether through operation of the sinking fund
or otherwise)”] with accrued interest to the Redemption Date, but interest installments whose
Stated Maturity is on or prior to such Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, of record at the close of business on the
relevant Record Dates referred to on the face hereof, all as provided in the Indenture.”].

          [If applicable, insert: ”The Securities of this series are subject to redemption upon
not less than 30 calendar days’ notice by mail, [if applicable, insert: “(a) on      
in each year commencing with the year       and ending with the year       through operation of the
sinking fund for this series at the following Redemption Prices (expressed as percentages of the
principal amount) applicable to redemption

-3-

 

 through operation of the sinking fund and (b)”] at any time [if applicable,
insert: ”on or after
     ,      ”] as a whole or in part, at the election of the
Company, at the following Redemption Prices (expressed as percentages of the principal amount)
applicable to redemption otherwise than through operation of the sinking fund: If redeemed [If
applicable, insert: ”on or before
          , ___%, and if redeemed”]
during the 12-month period beginning       of the years indicated,

	 	 	 	 	 	 	 
	   Year

	 	 	 	Redemption Price For

Redemption Through

Operation of the

Sinking Fund

	 	Redemption Price For

Redemption Otherwise

Than Through Operation

of the Sinking Fund

	 

	 	 	 	 
	 	 

and thereafter at a Redemption Price equal to _% of the principal amount, together in the case of
any such redemption (whether through operation of the sinking fund or otherwise) with accrued
interest to the Redemption Date, but interest installments whose Stated Maturity is on or prior to
such Redemption Date will be payable to the Holders of such Securities, or one or more Predecessor
Securities, of record at the close of business on the relevant Record Dates referred to on the face
hereof, all as provided in the Indenture.”].

          [If applicable, insert: Notwithstanding the foregoing, the Company may not, prior to
                    , redeem any Securities of this series as contemplated by [if applicable,
insert: “Clause (b) of"] the preceding paragraph as a part of, or in anticipation of, any
refunding operation by the application, directly or indirectly, of moneys borrowed having an
interest cost to the Company (calculated in accordance with generally accepted financial practice)
of less than _% per annum.”]

          [If applicable, insert: ”The sinking fund for this series provides for the redemption
on                     in each year beginning with the year       and ending with the year      of [if
applicable, insert: “not less than $                     (“mandatory sinking fund”) and not more than “]
$                     aggregate principal amount of Securities of this series. Securities of this series
acquired or redeemed by the Company otherwise than through [if applicable, insert:
”mandatory"] sinking fund payments may be credited against subsequent [if applicable,
insert: ”mandatory"] sinking fund payments otherwise required to be made [if applicable,
insert: ”in the inverse order in which they become due"].”].

          [If the Security is subject to redemption of any kind, insert: “In the event of
redemption of this Security in part only, a new Security or Securities of this series and of like
tenor for the unredeemed portion hereof will be issued in the name of the Holder hereof upon the
cancellation hereof.”]

          [If applicable, insert: ”The Indenture contains provisions for defeasance at any time
of (a) the entire indebtedness evidenced by this Security or (b) certain restrictive

-4-

 

covenants and Events of Default with respect to this Security, in each case upon compliance
with certain conditions set forth in the Indenture. ”]

          [If the Security is convertible into Common Stock or other securities of the Company,
specify the conversion features]

          [If the Security is not an Original Issue Discount Security, insert: “If an Event of
Default with respect to Securities of this series shall occur and be continuing, the principal of
the Securities of this series may be declared due and payable in the manner and with the effect
provided in the Indenture.”]

          [If the Security is an Original Issue Discount Security, insert: “If an Event of
Default with respect to Securities of this series shall occur and be continuing, an amount of
principal of the Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture. Such amount will be equal to [insert formula for
determining the amount] . Upon payment (a) of the amount of principal so declared due and
payable and (b) of interest on any overdue principal and overdue interest, all of the Company’s
obligations in respect of the payment of the principal of and interest, if any, on the Securities
of this series will terminate.”]

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of each series at the
time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults under the Indenture
and their consequences. Any such consent or waiver by the Holder of this Security will be
conclusive and binding upon such Holder and upon all future Holders of this Security and of any
Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

          As provided in and subject to the provisions of the Indenture, the Holder of this Security
will not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default with respect to
the Securities of this series, the Holders of not less than 25% in principal amount of the
Securities of this series at the time Outstanding shall have made written request to the Trustee to
institute proceedings in respect of such Event of Default as Trustee and offered the Trustee
indemnity satisfactory to it, and the Trustee shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time Outstanding a direction
inconsistent with such request and shall have failed to institute such proceeding for 60 calendar
days after receipt of such notice, request, and offer of indemnity. The foregoing will apply to
any

-5-

 

suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or any premium or interest hereon on or after the respective due dates expressed herein.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
will alter or impair the obligation of the Company, which is absolute and unconditional, to pay the
principal of and any premium and interest on this Security at the times, place, and rate, and in
the coin or currency, herein prescribed.

          As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security
for registration of transfer at the office or agency of the Company in any place where the
principal of and any premium and interest on this Security are payable, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.

          The Securities of this series are issuable only in registered form without coupons in
denominations of $1,000 and integral multiples thereof. As provided in the Indenture and subject
to certain limitations therein set forth, Securities of this series are exchangeable for a like
aggregate principal amount of Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

          No service charge will be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee, and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security shall be
overdue, and neither the Company, the Trustee, nor any such agent will be affected by notice to the
contrary.

          All terms used in this Security that are defined in the Indenture will have the respective
meanings assigned to them in the Indenture.

          This Security shall be governed by, and construed in accordance with, the laws of the State of
New York, without regard to conflicts of laws principles thereof.

-6-

 

          C. The Trustee’s certificate of authentication will be in substantially the following form:

[Form of Trustee’s Certificate Of

Authentication for Securities]

Trustee’s Certificate of Authentication

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	The Bank of New York Trust
	 	 	 	 	 	 	Company, N.A., as Trustee
	 
	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory

          D. Every Global Security authenticated and delivered hereunder will bear a legend in
substantially the following form:

[Form of Legend for Global Securities]

          THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO
AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE
TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON
OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF, AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY AUTHENTICATED AND DELIVERED
UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR, OR IN LIEU OF, THIS SECURITY WILL BE A GLOBAL
SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

          E. All acts and things necessary to make the Securities, when the Securities have been
executed by the Company and authenticated by the Trustee and delivered as provided in this
Indenture, the valid, binding, and legal obligations of the Company and to constitute these
presents a valid indenture and agreement according to its terms, have been done and performed, and
the execution and delivery by the Company of this Indenture and the issue hereunder of the
Securities have in all respects been duly authorized; and the Company, in the exercise of legal
right and power in it vested, is executing and delivering this Indenture and proposes to make,
execute, issue, and deliver the Securities.

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NOW, THEREFORE, THIS INDENTURE WITNESSETH:

          In order to declare the terms and conditions upon which the Securities are authenticated,
issued, and delivered, and in consideration of the premises and of the purchase and acceptance of
the Securities by the Holders thereof, it is mutually agreed, for the equal and proportionate
benefit of the respective Holders from time to time of the Securities or of a series thereof, as
follows:

Article I.

DEFINITIONS

     Section 1.01. Certain Terms Defined.

          (a) The terms defined in this Section 1.01 (except as herein otherwise expressly provided or
unless the context of this Indenture otherwise requires) for all purposes of this Indenture and of
any indenture supplemental hereto have the respective meanings specified in this Section 1.01. All
other terms used in this Indenture that are defined in the Trust Indenture Act, either directly or
by reference therein (except as herein otherwise expressly provided or unless the context of this
Indenture otherwise requires), have the respective meanings assigned to such terms in the Trust
Indenture Act as in force at the date of this Indenture as originally executed.

Act:

          The term “Act”, when used with respect to any Holder, has the meaning set forth in Section
14.11.

Affiliate:

          The term “Affiliate” means, with respect to a particular Person, any Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with, such Person. For
purposes of this definition, control of a Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative of the foregoing.

Authenticating Agent:

          The term “Authenticating Agent” means any Person authorized by the Trustee pursuant to Section
9.13 to act on behalf of the Trustee to authenticate Securities of one or more series.

Board of Directors:

          The term “Board of Directors” means the Board of Directors of the Company or a duly authorized
committee of such Board.

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Board Resolution:

          The term “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in
full force and effect on the date of such certification.

Business Day:

          The term “Business Day”, when used with respect to any Place of Payment, means each Monday,
Tuesday, Wednesday, Thursday, and Friday which is not a day on which banking institutions in that
Place of Payment are authorized or required by law or executive order to close.

Capital Lease:

          The term “Capital Lease” means, with respect to any Person, any lease of property (whether
real, personal, or mixed) by such Person or its Subsidiaries as lessee that would be capitalized on
a balance sheet of such Person or its Subsidiaries prepared in conformity with GAAP, other than, in
the case of such Person or its Subsidiaries, any such lease under which such Person or any of its
Subsidiaries is the lessor.

Capital Lease Obligations:

          The term “Capital Lease Obligations” means, with respect to any Person, the capitalized amount
of all obligations of such Person and its Subsidiaries under Capital Leases, as determined on a
consolidated basis in conformity with GAAP.

Commission:

          The term “Commission” means the Securities and Exchange Commission, as from time to time
constituted, created under the Exchange Act or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now assigned to it under the
Trust Indenture Act, then the body performing such duties at such time.

Common Stock:

          The term “Common Stock” means the common stock of the Company.

Company:

          The term “Company” means RPM International Inc., a Delaware corporation, until a successor
Person shall have become such pursuant to the applicable provisions of this Indenture, and
thereafter “Company” will mean such successor Person. The foregoing sentence shall likewise apply
to any subsequent such successor or successors.

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Company Request or Company Order:

          The term “Company Request” or “Company Order” means a written request or order signed in the
name of the Company by any two Responsible Officers of the Company, and delivered to the Trustee.

Consolidated Stockholders’ Equity:

          “Consolidated Stockholders’ Equity” means, at any time, the Consolidated Stockholders’ equity
of the Company and its Subsidiaries, determined on a consolidated basis at such time in accordance
with GAAP.

Corporate Trust Office:

          “Corporate Trust Office” means the principal office of the Trustee at which at any time its
corporate trust business shall be administered, which office at the date hereof is located at 2 N.
LaSalle Street, Suite 1020, Chicago, IL 60602, Attention: Corporate Trust Administration, or such
other address as the Trustee may designate from time to time by notice to the Holders and the
Company, or the principal corporate trust office of any successor Trustee (or such other address as
such successor Trustee may designate from time to time by notice to the Holders and the Company).

Covenant Defeasance:

          The term “Covenant Defeasance” has the meaning set forth in Section 5.03.

Default:

          The term “Default” means any event which, with notice or passage of time or both, would
constitute an Event of Default.

Defaulted Interest:

          The term “Defaulted Interest” has the meaning set forth in Section 2.09.

Defeasance:

          The term “Defeasance” has the meaning set forth in Section 5.02.

Defeasible Series:

          The term “Defeasible Series” has the meaning set forth in Section 5.01.

Depositary:

          The term “Depositary” means, with respect to Securities of any series issuable in whole or in
part in the form of one or more Global Securities, a clearing agency that is registered under the Exchange Act and is designated by the Company to act as
Depositary for such Securities as contemplated by Section 2.01.

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Event of Default:

          The term “Event of Default” has the meaning set forth in Section 8.01(a).

Exchange Act:

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

GAAP:

          The term “GAAP” means generally accepted accounting principles in the United States of
America.

Global Security:

          The term “Global Security” means a Security that evidences all or part of the Securities of
any series and is authenticated and delivered to, and registered in the name of, the Depositary for
such Securities or a nominee thereof.

Holder:

          The term “Holder” means a person in whose name a particular Security is registered in the
Security Register.

Indebtedness:

          The term “Indebtedness” means, as to any Person (determined without duplication):
(i) indebtedness of such Person for money borrowed (whether by loan or the issuance and sale of
debt securities) or for the deferred purchase or acquisition price of property or services, other
than accounts payable (other than for borrowed money) incurred in the ordinary course of business;
(ii) obligations of such Person in respect of letters of credit or similar instruments issued or
accepted by banks and other financial institutions for the account of such Person (whether or not
such obligations are contingent); (iii) Capital Lease Obligations of such Person; (iv) obligations
of such Person to redeem or otherwise retire shares of capital stock of such Person; (v)
indebtedness of others of the type described in clause (i), (ii), (iii) or (iv) above secured by a
Lien on the property of such Person, whether or not the respective obligation so secured has been
assumed by such Person; and (vi) indebtedness of others of the type described in clause (i), (ii),
(iii) or (iv) above guaranteed by such Person.

Indenture:

          The term “Indenture” means this Indenture, as this Indenture may be amended, supplemented, or
otherwise modified from time to time, including, for all purposes of this Indenture and any such supplemental indenture, the provisions of the Trust
Indenture Act that are deemed to be a part of and govern this instrument and any such supplemental
indenture, respectively. The term “Indenture” will also include the terms of particular series of
Securities established as contemplated by Section 2.01.

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Interest:

          The term “interest” (i) when used with respect to an Original Issue Discount Security which by
its terms bears interest only after Maturity, means interest which accrues from and after and is
payable after Maturity and (ii) when used with respect to any Security, means the amount of all
interest accruing on such Security, including any default interest and any interest accruing after
any Event of Default that would have accrued but for the occurrence of such Event of Default.

Interest Payment Date:

          The term “Interest Payment Date” when used with respect to any Security means the Stated
Maturity of an installment of interest on such Security.

Maturity:

          The term “Maturity” when used with respect to any Security means the date on which the
principal of that Security or an installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of acceleration, call for
redemption, or otherwise.

Notice of Default:

          The term “Notice of Default” means a written notice, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders at least 25% in principal
amount of the Outstanding Securities of the series in question, specifying that a default or breach
under Section 8.01(a)(iv) or 8.01(a)(v), as applicable, has occurred, and requiring it to be
remedied and stating that such notice is a “Notice of Default” hereunder.

Officers’ Certificate:

          The term “Officers’ Certificate” means a certificate executed on behalf of the Company by two
officers of the Company (at least one of which shall be a Responsible Officer) and delivered to the
Trustee.

Opinion of Counsel:

          The term “Opinion of Counsel” means an opinion in writing signed by legal counsel, who,
subject to any express provisions hereof, may be an employee of or counsel for the Company or any
Subsidiary.

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Original Issue Discount Security:

          The term “Original Issue Discount Security” means any Security which provides for an amount
less than the principal amount thereof to be due and payable upon a declaration of acceleration of
the Maturity thereof pursuant to Section 8.01(b).

Outstanding:

          The term “Outstanding” means, when used with reference to Securities as of a particular time,
all Securities theretofore issued by the Company and authenticated and delivered by the Trustee
under this Indenture, except (a) Securities theretofore cancelled by the Trustee or delivered to
the Trustee for cancellation, (b) Securities for the payment or redemption of which money in the
necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than
the Company) in trust or set aside and segregated in trust by the Company (if the Company is acting
as its own Paying Agent) for the Holders of such Securities; provided that, if such
Securities are to be redeemed, notice of such redemption has been duly given pursuant to this
Indenture or provision therefor satisfactory to the Trustee has been made, (c) Securities paid
pursuant to Section 2.07 or Securities in exchange for or in lieu of which other Securities have
been authenticated and delivered pursuant to this Indenture, other than any such Securities in
respect of which there shall have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations
of the Company, and (d) Securities as to which Defeasance has been effected pursuant to Section
5.02; provided, however, that in determining whether the Holders of the requisite
principal amount of the Outstanding Securities have given any request, demand, authorization,
direction, notice, consent, or waiver hereunder, (i) the principal amount of an Original Issue
Discount Security that will be deemed to be Outstanding will be the amount of the principal thereof
that would be due and payable as of the date of such determination upon acceleration of the
Maturity thereof to such date pursuant to Section 8.01(b), (ii) the principal amount of a Security
denominated in one or more foreign currencies or currency units will be the U.S. dollar equivalent,
determined in the manner contemplated by Section 2.01 on the date of original issuance of such
Security, of the principal amount (or, in the case of an Original Issue Discount Security, the U.S.
dollar equivalent on the date of original issuance of such Security of the amount determined as
provided in clause (i) above) of such Security, and (iii) Securities owned by the Company or any
other obligor upon the Securities or any Affiliate of the Company or of such other obligor will be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee will
be protected in relying upon any such request, demand, authorization, direction, notice, consent,
or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned
will be so disregarded. Securities so owned which have been pledged in good faith may be regarded
as Outstanding if the pledgor establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the Company or any other obligor
upon the Securities or any Affiliate of the Company or of such other obligor.

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Paying Agent:

          The term “Paying Agent” means any Person authorized by the Company to pay the principal of or
any premium or interest on any Securities on behalf of the Company.

Person:

          The term “Person” means any individual, partnership, corporation, joint stock company,
business trust, trust, unincorporated association, joint venture, or other entity, or government or
political subdivision or agency thereof.

Place of Payment:

          The term “Place of Payment” when used with respect to the Securities of any series means the
place or places where the principal of and any premium and interest on the Securities of that
series are payable as specified as contemplated by Section 2.01.

Predecessor Security:

          The term “Predecessor Security” when used with respect to any particular Security means every
previous Security evidencing all or a portion of the same debt as that evidenced by such Security;
and, for the purposes of this definition, any Security authenticated and delivered under Section
2.07 in exchange for or in lieu of a mutilated, destroyed, lost, or stolen Security will be deemed
to evidence the same debt as the mutilated, destroyed, lost, or stolen Security.

Redemption Date:

          The term “Redemption Date” when used with respect to any Security to be redeemed means the
date fixed for such redemption by or pursuant to this Indenture.

Redemption Price:

          The term “Redemption Price” when used with respect to any Security to be redeemed means the
price (including premium, if any) at which it is to be redeemed pursuant to this Indenture.

Regular Record Date:

          The term “Regular Record Date” for the interest payable on any Interest Payment Date on the
Securities of any series means the date specified for that purpose as contemplated by Section 2.01.

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Responsible Officer:

          “Responsible Officer” means (a) when used with respect to the Trustee, any vice president, any
assistant vice president, any senior trust officer or assistant trust officer, any trust officer, or any other officer associated with the corporate trust
department of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of such person’s knowledge of and familiarity
with the particular subject and who shall have direct responsibility for the administration of this
Indenture, and (b) when used with respect to the Company, any of the chief executive officer, chief
administrative officer, chief financial officer, secretary or treasurer, or any of their functional
equivalents in executive responsibility.

Securities:

          The term “Securities” has the meaning set forth in the first recital of this Indenture and
more particularly means any Securities authenticated and delivered under this Indenture.

Security Register and Security Registrar:

          The terms “Security Register” and “Security Registrar” have the respective meanings set forth
in Section 2.05.

Special Record Date:

          The term “Special Record Date” for the payment of any Defaulted Interest means a date fixed by
the Trustee pursuant to Section 2.09.

Stated Maturity:

          The term “Stated Maturity” when used with respect to any Security, any installment of interest
thereon, or any other amount payable under this Indenture or the Securities means the date
specified in this Indenture or such Security as the regularly scheduled date on which the principal
of such Security, such installment of interest, or such other amount, is due and payable.

Subsidiary:

          The term “Subsidiary” means, as applied with respect to any Person, any corporation,
partnership, or other business entity of which, in the case of a corporation, more than 50% of the
issued and outstanding capital stock having ordinary voting power to elect a majority of the board
of directors of such corporation (irrespective of whether at the time capital stock of any other
class or classes of such corporation has or might have voting power upon the occurrence of any
contingency), or, in the case of any partnership or other legal entity, more than 50% of the
ordinary equity capital interests, is at the time directly or indirectly owned or controlled by
such Person, by such Person and one or more of its other Subsidiaries, or by one or more of such
Person’s other Subsidiaries.

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Trust Indenture Act:

          The term “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended, as in force
upon the date as of which this instrument was executed; provided, however, that in
the event the Trust Indenture Act of 1939 is amended after such date, “Trust Indenture Act” means,
to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

Trustee:

          The term “Trustee” means the Person named as the “Trustee” in the first paragraph of this
Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of
this Indenture, and thereafter “Trustee” will mean or include each Person who is then a Trustee
hereunder, and if at any time there is more than one such Person, “Trustee” as used with respect to
the Securities of any series will mean each Trustee with respect to Securities of that series.

U.S. Government Obligation:

          The term “U.S. Government Obligation” means (a) any security that is (i) a direct obligation
of the United States of America for the payment of which full faith and credit of the United States
of America is pledged or (ii) an obligation of a Person controlled or supervised by and acting as
an agency or instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United States of America,
which, in either case (i) or (ii), is not callable or redeemable at the option of the issuer
thereof and (b) any depositary receipt issued by a bank (as defined in Section 3(a)(2) of the
Securities Act of 1933, as amended) as custodian with respect to any U.S. Government Obligation
specified in clause (a), which U.S. Government Obligation is held by such custodian for the account
of the holder of such depositary receipt, or with respect to any specific payment of principal of
or interest on any such U.S. Government Obligation, provided that (except as required by
law) such custodian is not authorized to make any deduction from the amount payable to the holder
of such depositary receipt from any amount received by the custodian in respect of the U.S.
Government Obligation or the specific payment of principal or interest evidenced by such depositary
receipt.

          (b) The words “Article” and “Section” refer to an Article and Section, respectively,
of this Indenture. The words “herein”, “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section, or other
subdivision. Certain terms used principally in Articles V, VI, and IX are defined in those
Articles. Terms in the singular include the plural and terms in the plural include the singular.

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Article II.

THE SECURITIES

     Section 2.01. Designation and Amount of Securities.

          (a) The aggregate principal amount of Securities that may be authenticated and delivered under
this Indenture is unlimited.

          (b) The Securities may be issued in one or more series. There will be established in or
pursuant to a Board Resolution and, subject to Section 2.04, set forth or determined in the manner
provided in an Officers’ Certificate, or established in one or more indentures supplemental hereto,
prior to the issuance of Securities of any series: (i) the title of the Securities of the series
(which will distinguish the Securities of the series from Securities of any other series); (ii) any
limit upon the aggregate principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities authenticated and delivered
upon registration of transfer of, or in the exchange for, or in lieu of, other Securities of the
series pursuant to Section 2.05, 2.06, 2.07, 3.05, or 10.06 and except for any Securities which,
pursuant to Section 2.04, are deemed never to have been authenticated and delivered hereunder);
(iii) the Person to whom any interest on a Security of the series will be payable, if other than
the Person in whose name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest; (iv) the date or dates on which the
principal of the Securities of the series is payable; (v) the rate or rates at which the Securities
of the series will bear interest, if any, the date or dates from which such interest will accrue,
the Interest Payment Dates on which any such interest will be payable, and the Regular Record Date
for any interest payable on any Interest Payment Date; (vi) the place or places where the principal
of and any premium and interest on Securities of the series will be payable; (vii) the period or
periods within which, the price or prices at which, and the terms and conditions upon which
Securities of the series may be redeemed, in whole or in part, at the option of the Company and, if
other than by a Board Resolution, the manner in which any election by the Company to redeem the
Securities shall be evidenced; (viii) the obligation, if any, of the Company to redeem or purchase
Securities of the series pursuant to any sinking fund or analogous provisions or at the option of a
Holder thereof and the period or periods within which, the price or prices at which, and the terms
and conditions upon which Securities of the series will be redeemed or purchased, in whole or in
part, pursuant to such obligation; (ix) if other than denominations of $1,000 and integral
multiples thereof, the denominations in which Securities of the series will be issuable; (x) the
currency, currencies, or currency units in which payment of the principal of and any premium and
interest on any Securities of the series will be payable if other than the currency of the United
States of America and the manner of determining the equivalent thereof in the currency of the
United States of America for purposes of the definition of “Outstanding” in Section 1.01; (xi) if
the amount of payments of principal of or any premium or interest on any Securities of the series
may be determined with reference to an index, based upon a formula, or in some other manner, the
manner in which such amounts will be determined; (xii) if the principal of or any premium or
interest on any Securities of the series is to be payable, at the election of the Company or a Holder thereof, in one or more currencies or

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currency units other than that or those in which the Securities are stated to be payable, the currency, currencies, or
currency units in which payment of the principal of and any premium and interest on Securities of
such series as to which such election is made will be payable, and the periods within which and the
terms and conditions upon which such election is to be made; (xiii) if other than the principal
amount thereof, the portion of the principal amount of Securities of the series which will be
payable upon declaration of acceleration of the Maturity thereof pursuant to Section 8.01(b); (xiv)
if applicable, that the Securities of the series will be subject to either or both of Defeasance or
Covenant Defeasance as provided in Article V, provided that no series of Securities that is
convertible into Common Stock pursuant to Section 2.01(b)(xvi) or convertible into or exchangeable
for any other securities pursuant to Section 2.01(b)(xvii) will be subject to Defeasance pursuant
to Section 5.02; (xv) if and as applicable, that the Securities of the series will be issuable in
whole or in part in the form of one or more Global Securities and, in such case, the Depositary or
Depositaries for such Global Security or Global Securities and any circumstances other than those
set forth in Section 2.05 in which any such Global Security may be transferred to, and registered
and exchanged for Securities registered in the name of, a Person other than the Depositary for such
Global Security or a nominee thereof and in which any such transfer may be registered; (xvi) the
terms and conditions, if any, pursuant to which the Securities are convertible into Common Stock;
(xvii) the terms and conditions, if any, pursuant to which the Securities are convertible into or
exchangeable for any other securities, including (without limitation) securities of Persons other
than the Company; and (xviii) any other terms of, or provisions, covenants, rights or other matters
applicable to, the series (which terms, provisions, covenants, rights or other matters will not be
inconsistent with the provisions of this Indenture, except as permitted by Section 10.01(e)).

          (c) All Securities of any one series will be substantially identical except as to denomination
and except as may otherwise be provided in or pursuant to the Board Resolution referred to below
and (subject to Section 2.04) set forth or determined in the manner provided in the Officers’
Certificate referred to above or in any such indenture supplemental hereto.

          (d) If any of the terms of the series are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action will be certified by the Secretary or an
Assistant Secretary of the Company and delivered to the Trustee concurrently with or prior to the
delivery of the Officers’ Certificate setting forth the terms of the series.

     Section 2.02. Form of Securities and Trustee’s Certificate of Authentication.

          (a) The Securities of each series will be in substantially the form set forth in or otherwise
contemplated by the recitals to this Indenture, with appropriate variations to reflect the specific
terms of such series. If the form of Securities of any series is established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action will be certified by
the Secretary or an Assistant Secretary of the Company and delivered to the Trustee concurrently
with or prior to the delivery of the Company Order contemplated by Section 2.04 for the authentication and delivery
of such Securities.

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          (b) The definitive Securities will be printed, lithographed, or engraved on steel engraved
borders or may be produced in any other manner permitted by the rules of any securities exchange on
which the Securities may be listed, all as determined by the officers executing such Securities, as
evidenced by their execution of such Securities.

          (c) The Trustee’s certificate of authentication will be in substantially the form set forth in
the recitals to this Indenture.

          (d) Every Global Security authenticated and delivered hereunder will bear a legend in
substantially the form set forth in the recitals to this Indenture.

     Section 2.03. Date and Denominations.

          Each Security will be dated the date of its authentication. The Securities of each series
will be issuable only in registered form without coupons in such denominations as may be specified
as contemplated by Section 2.01. In the absence of any such specified denomination with respect
to the Securities of any series, the Securities of such series will be issuable in denominations of
$1,000 and integral multiples thereof.

     Section 2.04. Execution, Authentication and Delivery of Securities.

          (a) The Securities will be executed on behalf of the Company by a Responsible Officer of the
Company and attested by the Treasurer, the Secretary, any Assistant Treasurer, or any Assistant
Secretary of the Company. The signature of any of these officers on the Securities may be manual
or facsimile.

          (b) Only such Securities bearing the Trustee’s certificate of authentication, signed manually
by the Trustee, will be entitled to the benefits of this Indenture or be valid or obligatory for
any purpose. Such execution of the certificate of authentication by the Trustee upon any
Securities executed by the Company will be conclusive evidence that the Securities so authenticated
have been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any
Security shall have been authenticated and delivered hereunder but never issued and sold by the
Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in
Section 2.08, for all purposes of this Indenture such Security will be deemed never to have been
authenticated and delivered hereunder and will never be entitled to the benefits of this Indenture.

          (c) Securities bearing the manual or facsimile signatures of individuals who were at the time
of execution the proper officers (as specified in Section 2.03(a) above) of the Company will bind
the Company, notwithstanding that such individuals or any of them have ceased to hold such offices
prior to the authentication and delivery by the Trustee of such Securities or did not hold such
offices at the date of such Securities.

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          (d) At any time and from time to time after the execution and delivery of this Indenture, the
Company may deliver Securities of any series executed by the Company to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such
Securities, and the Trustee in accordance with the Company Order will authenticate and deliver such
Securities. If the form or terms of the Securities of the series have been established in or
pursuant to one or more Board Resolutions as permitted by Sections 2.01 and 2.02, in authenticating
such Securities, and accepting the additional responsibilities under this Indenture in relation to
such Securities, the Trustee will be provided with, and (subject to Section 9.01) will be fully
protected in relying upon, an Opinion of Counsel stating:

          (i) if the form of such Securities has been established by or pursuant to a Board
Resolution as permitted by Section 2.02, that such form has been established in conformity
with the provisions of this Indenture,

          (ii) if the terms of such Securities have been established by or pursuant to a Board
Resolution as permitted by Section 2.01, that such terms have been established in
conformity with the provisions of this Indenture,

          (iii) that such Securities, when authenticated and delivered by the Trustee and issued
by the Company in the manner and subject to any conditions specified in such Opinion of
Counsel, will constitute valid and binding obligations of the Company enforceable in
accordance with their terms, except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium, or other laws relating to or affecting
creditors’ rights and by general principles of equity; and

          (iv) that all laws and requirements in respect of the execution and delivery by the
Company of such Securities have been complied with.

          The Trustee shall have the right to decline to authenticate and deliver any Securities under
this Section if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken or if the Trustee in good faith shall determine that such action would expose the Trustee
to personal liability to existing Holders.

          (e) Notwithstanding the provisions of Sections 2.01 and 2.04(d), if all Securities of a series
are not to be originally issued at one time, it will not be necessary to deliver the Officers’
Certificate otherwise required pursuant to Section 2.01 or the Company Order and Opinion of Counsel
otherwise required pursuant to Section 2.04(d) at or prior to the time of authentication of each
Security of such series if such documents are delivered at or prior to the authentication upon
original issuance of the first Security of such series to be issued.

     Section 2.05. Registration of Transfer and Exchange.

          (a) The Company will cause to be kept at the Corporate Trust Office a register (the register
maintained in such office and in any other office or agency of the Company in a Place of Payment
being herein sometimes collectively referred to as the

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“Security Register”) in which, subject to such reasonable regulations as it may prescribe, the
Company will provide for the registration of Securities and of transfers of Securities. The
Trustee is hereby appointed “Security Registrar” for the purpose of registering Securities and
transfers of Securities as herein provided.

          (b) Upon surrender for registration of transfer of any Security of any series at the office or
agency in a Place of Payment for that series, the Company will execute, and the Trustee will
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor.

          (c) At the option of the Holder, Securities of any series may be exchanged for other
Securities of the same series, of any authorized denominations and of a like aggregate principal
amount and tenor, upon surrender of the Securities to be exchanged at such office or agency.
Whenever any Securities are so surrendered for exchange, the Company will execute, and the Trustee
will authenticate and deliver the Securities which the Holder making the exchange is entitled to
receive.

          (d) Every Security presented or surrendered for registration of transfer or exchange will (if
so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument or instruments of transfer, in form reasonably satisfactory to the Company and the
Security Registrar duly executed, by the Holder thereof or his attorney duly authorized in writing.
No service charge will be made for any registration of transfer or exchange of Securities, but the
Company may require payment of a sum sufficient to cover any tax, assessment, fee or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Securities, other than exchanges pursuant to Section 2.06, 3.05, or 10.06 not involving any
transfer. The Company will not be required (i) to issue, register the transfer of, or exchange
Securities of any series during a period beginning at the opening of business 15 calendar days
before the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 3.02(c) and ending at the close of business on the day of such mailing or (ii) to
register the transfer of or exchange any Security so selected for redemption in whole or in part,
except, in the case of any Securities to be redeemed in part, the portion thereof not being
redeemed.

          (e) All Securities issued upon any registration of transfer or exchange of Securities will be
valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under
this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

          (f) Notwithstanding any other provision in this Indenture, no Global Security may be
transferred to, or registered or exchanged for Securities registered in the name of, any Person
other than the Depositary for such Global Security or any nominee thereof, and no such transfer may
be registered, unless (i) such Depositary (A) notifies the Company that it is unwilling or unable
to continue as Depositary for such Global Security or (B) ceases to be a clearing agency registered
under the Exchange Act, (ii) the Company executes and delivers to the Trustee a Company Order that
such Global Security shall be so transferable, registrable, and
exchangeable, and such transfers shall be registrable,

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(iii) there shall have occurred and be continuing an Event of Default with respect to
the Securities evidenced by such Global Security, or (iv) there shall exist such other
circumstances, if any, as have been specified for this purpose as contemplated by Section 2.01.
Notwithstanding any other provision in this Indenture, a Global Security to which the restriction
set forth in the preceding sentence shall have ceased to apply may be transferred only to, and may
be registered and exchanged for Securities registered only in the name or names of, such Person or
Persons as the Depositary for such Global Security shall have directed and no transfer thereof
other than such a transfer may be registered. Every Security authenticated and delivered upon
registration of transfer of, or in exchange for or in lieu of, a Global Security to which the
restriction set forth in the first sentence of this Section 2.05(f) shall apply, whether pursuant
to this Section 2.05, Section 2.06, 2.07, 3.05, or 10.06 or otherwise, will be authenticated and
delivered in the form of, and will be, a Global Security.

          (g) Each Holder of a Security agrees to indemnify the Company and the Trustee against any
liability that may result from the transfer, exchange or assignment of such Holder’s Security in
violation of any provision of this Indenture and/or applicable United States Federal or state
securities law.

          (h) The Trustee shall have no obligation or duty to monitor, determine or inquire as to
compliance with any restrictions on transfer imposed under this Indenture or under applicable law
with respect to any transfer of any interest in any Security (including any transfers between or
among Depositary Participants or beneficial owners of interests in any Global Security) other than
to require delivery of such certificates and other documentation or evidence as are expressly
required by, and to do so if and when expressly required by the terms of, this Indenture, and to
examine the same to determine substantial compliance as to form with the express requirements
hereof.

     Section 2.06. Temporary Securities.

          Pending the preparation of definitive Securities of any series, the Company may execute and
register and upon Company Order the Trustee will authenticate and deliver temporary Securities
(printed, lithographed, or typewritten) of any authorized denomination, and substantially in the
form of the definitive Securities but with such omissions, insertions, and variations as may be
appropriate for temporary Securities, all as may be determined by the officers executing such
Securities as evidenced by their execution of such Securities; provided, however
that the Company will use reasonable efforts to have definitive Securities of that series available
at the times of any issuance of Securities under this Indenture. Every temporary Security will be
executed and registered by the Company and be authenticated by the Trustee upon the same conditions
and in substantially the same manner, and with like effect, as the definitive Securities. The
Company will execute and register and furnish definitive Securities of such series as soon as
practicable and thereupon any or all temporary Securities of such series may be surrendered in
exchange therefor at the office or agency of the Company in the Place of Payment for that series,
and the Trustee will authenticate and deliver in exchange for such temporary Securities of such
series one or more definitive Securities of the same series, of

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any authorized denominations, and of a like
aggregate principal amount and tenor. Such exchange will be made by the Company at its own expense
and without any charge to the Holder therefor. Until so exchanged, the temporary Securities of any
series will be entitled to the same benefits under this Indenture as definitive Securities of the
same series authenticated and delivered hereunder.

     Section 2.07. Mutilated, Destroyed, Lost, and Stolen Securities.

          (a) If any mutilated Security is surrendered to the Trustee, the Company will execute and the
Trustee will authenticate and deliver in exchange therefor a new Security of the same series and of
like tenor and principal amount and bearing a number not contemporaneously outstanding.

          (b) If there shall be delivered to the Company and the Trustee (i) evidence to their
satisfaction of the destruction, loss, or theft of any Security and (ii) such security or indemnity
as may be required by them to save each of them and any agent of either of them harmless, then, in
the absence of notice to the Company or the Trustee that such Security has been acquired by a bona
fide purchaser, the Company will execute and the Trustee will authenticate and deliver, in lieu of
any such destroyed, lost, or stolen Security, a new Security of the same series and of like tenor
and principal amount and bearing a number not contemporaneously outstanding.

          (c) In case any such mutilated, destroyed, lost, or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.

          (d) Upon the issuance of any new Security under this Section 2.07, the Company may require the
payment of a sum sufficient to cover any tax, assessment, fee or other governmental charge that may
be imposed in relation thereto and any other expenses (including the fees and expenses of the
Trustee) connected therewith.

          (e) Every new Security of any series issued pursuant to this Section 2.07 in exchange for any
mutilated Security or in lieu of any destroyed, lost, or stolen Security will constitute an
original additional contractual obligation of the Company, whether or not the mutilated, destroyed,
lost, or stolen Security shall be at any time enforceable by anyone, and will be entitled to all
the benefits of this Indenture equally and proportionately with any and all other Securities of
that series duly issued hereunder.

          (f) The provisions of this Section 2.07 are exclusive and will preclude (to the extent lawful)
all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost, or stolen Securities.

     Section 2.08. Cancellation of Surrendered Securities.

          All Securities surrendered for payment, redemption, registration of transfer or exchange, or
for credit against any sinking fund payment will, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and will be promptly cancelled by it.

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The Company may at any time deliver to the Trustee for cancellation any
Securities previously authenticated and delivered hereunder which the Company may have acquired in
any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the
Trustee) for cancellation any Securities previously authenticated hereunder which the Company has
not issued and sold, and all Securities so delivered will be promptly cancelled by the Trustee. No
Securities will be authenticated in lieu of or in exchange for any Securities cancelled as provided
in this Section 2.08, except as expressly permitted by this Indenture. The Trustee shall dispose
of all cancelled Securities in accordance with its customary procedures.

     Section 2.09. Payment of Interest; Interest Rights Preserved.

          (a) Except as otherwise provided as contemplated by Section 2.01 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid or duly provided for,
on any Interest Payment Date will be paid to the Person in whose name that Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular Record Date for such
interest.

          (b) Any interest on any Security of any series which is payable, but is not punctually paid or
duly provided for within 30 days following any applicable Interest Payment Date (herein called
“Defaulted Interest”) will forthwith cease to be payable to the Holder on the relevant regular
Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the
Company, at its election in each case, as provided in clause (i) or (ii) below:

     (i) The Company may elect to make payment of any Defaulted Interest to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest, which will be fixed in the following manner. The Company will promptly
notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each Security of such series and the date of the proposed payment, and at the same time the
Company will deposit with the Trustee an amount of money equal to the aggregate amount
proposed to be paid in respect of such Defaulted Interest or will make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed payment,
such money when deposited to be held in trust for the benefit of the persons entitled to
such Defaulted Interest as in this clause (i) provided. Thereupon the Trustee will fix a
Special Record Date for the payment of such Defaulted Interest which will be not more than
15 calendar days and not less than 10 calendar days prior to the date of the proposed
payment and not less than 10 calendar days after the receipt by the Trustee of the notice
of the proposed payment. The Trustee will promptly notify the Company of such Special
Record Date and, in the name and at the expense of the Company, will cause notice of the
proposed payment of such Defaulted Interest and the Special Record Date therefor to be
mailed, first class postage prepaid, to each Holder of Securities of such series at his
address as it appears in the Security Register, not less than 10 calendar days prior to
such Special Record Date. Notice of the proposed payment of such Defaulted Interest (and interest thereon, if any)

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and the Special Record Date
therefor having been so mailed, such Defaulted Interest will be paid to the Persons in
whose names the Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on such Special Record Date and will no longer be
payable pursuant to the following clause (ii).

     (ii) The Company may make payment of any Defaulted Interest on the Securities of any
series in any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Securities may be listed, and upon such notice as may be required by
such exchange, if, after notice given by the Company to the Trustee of the proposed payment
pursuant to this clause (ii), such manner of payment shall be deemed practicable by the
Trustee.

          (c) Subject to the foregoing provisions of this Section 2.09, each Security delivered under
this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security
will carry the rights to interest accrued and unpaid, and to accrue, which were carried by such
other Security.

     Section 2.10. Persons Deemed Owners.

          Prior to due presentment of a Security for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose name such Security is
registered as the owner of such Security for the purpose of receiving payment of principal of and
any premium and (subject to Section 2.09) any interest on such Security and for all other purposes
whatsoever, whether or not such Security shall be overdue, and neither the Company, the Trustees
nor any agent of the Company or the Trustee will be affected by notice to the contrary.

     Section 2.11. Computation of Interest.

          Except as otherwise specified as contemplated by Section 2.01 for Securities of any series,
interest on the Securities of each series will be computed on the basis of a 360-day year
consisting of twelve 30-day months.

     Section 2.12. CUSIP Numbers.

          The Company in issuing any series of the Securities may use CUSIP numbers, if then generally
in use, and thereafter with respect to such series, the Trustee may use such numbers in any notice
of redemption or exchange with respect to such series provided that any such notice may
state that no representation is made as to the correctness of such numbers either as printed on the
Securities or as contained in any notice of a redemption and that reliance may be placed only on
the other identification numbers printed on the Securities, and any such redemption shall not be
affected by any defect in or omission of such numbers. The Company will promptly notify the
Trustee of any change in the CUSIP numbers.

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Article III.

REDEMPTION OF SECURITIES

     Section 3.01. Applicability of Article.

          Securities of any series which are redeemable before their Stated Maturity will be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 2.01
for Securities of any series) in accordance with this Article III.

     Section 3.02. Election to Redeem; Notice to Trustee.

          (a) The election of the Company to redeem any Securities will be evidenced by a Board
Resolution. In case of any redemption at the election of the Company, the Company will, at least
45 calendar days prior to the Redemption Date fixed by the Company (unless a shorter notice shall
be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal
amount of Securities of such series to be redeemed. In the case of any redemption of Securities
prior to the expiration of any restriction on such redemption provided in the terms of such
Securities or elsewhere in this Indenture, the Company will furnish the Trustee with an Officers’
Certificate evidencing compliance with such restriction.

          (b) Notice to the applicable Holders of redemption of Securities to be redeemed at the
election of the Company will be given by the Company or, at the Company’s request, by the Trustee
in the name and at the expense of the Company and will be irrevocable. Notice of redemption will
be given by mail, first class postage prepaid, not less than 30 or more than 60 calendar days prior
to the Redemption Date, to each Holder of Securities to be redeemed,
at the address appearing in
the Security Register, provided that if the Company requests the
Trustee to give such notice, such request shall be made at least
seven Business Days (unless a shorter period shall be satisfactory
to the Trustee) prior to the date such notice must be mailed. All notices of redemption will include the CUSIP number and will state
(i) the Redemption Date, (ii) the Redemption Price, (iii) if less than all the Outstanding
Securities of any series are to be redeemed, the identification (and, in the case of partial
redemption of any Securities, the principal amounts) of the particular Securities to be redeemed,
(iv) that on the Redemption Date the Redemption Price will become due and payable upon each such
Security to be redeemed and, if applicable, that interest thereon will cease to accrue on and after
said date, (v) the place or places where such Securities are to be surrendered for payment of the
Redemption Price, (vi) that the redemption is for a sinking fund, if such is the case, and (vii)
the specific provision of this Indenture pursuant to which such Securities are to be redeemed.

          (c) If less than all the Securities of any series are to be redeemed, the particular
Securities to be redeemed will be selected not more than 60 calendar days prior to the Redemption
Date by the Trustee, from the Outstanding Securities of such series not previously called for
redemption, by such method as the Trustee may deem fair and appropriate and which may provide for
the selection for redemption of portions (equal to the minimum authorized denomination for
Securities of that series or any integral multiple thereof) of the principal amount of

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Securities of such series of a denomination
larger than the minimum authorized denomination for Securities of that series. The Trustee will
promptly notify the Company in writing of the Securities selected for redemption and, in the case
of any Securities selected for partial redemption, the principal amount thereof to be redeemed.

          (d) For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities will relate, in the case of any Securities redeemed or to
be redeemed only in part, to the portion of the principal amount of such Securities which has been
or is to be redeemed.

     Section 3.03. Deposit of Redemption Price.

          Prior to 10:00 a.m. (local time at the Place of Payment) on the Redemption Date specified in
the notice of redemption given as provided in Section 3.02, the Company will deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and
hold in trust as provided in Section 6.03) an amount of money sufficient to pay the Redemption
Price of, and (except if the Redemption Date shall be an Interest Payment Date) any accrued
interest on, all of the Securities that are to be redeemed on that date.

     Section 3.04. Securities Payable on Redemption Date.

          (a) Notice of redemption having been given as aforesaid, the Securities so to be redeemed
will, on the Redemption Date, become due and payable at the Redemption Price therein specified, and
from and after such date (unless the Company defaults in the payment of the Redemption Price and
accrued interest) such Securities will cease to accrue interest. Upon surrender of any such
Security for redemption in accordance with said notice, such Security will be paid by the Company
at the Redemption Price, together with accrued interest to the Redemption Date; provided, however,
that unless otherwise specified as contemplated by Section 2.01, installments of interest whose
Stated Maturity is on or prior to the Redemption Date will be payable to the Holders of such
Securities, or one or more Predecessor Securities, registered as such at the close of business on
the relevant Record Dates in accordance with their terms and the provisions of Section 2.09.

          (b) If any Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium will, until paid, bear interest from the Redemption Date
at the rate prescribed therefor in the Security.

     Section 3.05. Securities Redeemed in Part.

          Any Security that is to be redeemed only in part will be surrendered at a Place of Payment
therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written
instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the
Holder thereof or his attorney duly authorized in writing), and the Company will execute, and the
Trustee will authenticate and deliver to the Holder of such Security without service charge, a new
Security or Securities of the same series and of like tenor, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of
the Security so surrendered.

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Article IV.

SINKING FUNDS

     Section 4.01. Applicability of Article.

          The provisions of this Article IV will be applicable to any sinking fund for the retirement of
Securities of a series except as otherwise specified as contemplated by Section 2.01 for Securities
of such series. The minimum amount of any sinking fund payment provided for by the terms of
Securities of any series is herein referred to as a “mandatory sinking fund payment”, and any
payment in excess of such minimum amount provided for by the terms of Securities of any series is
herein referred to as an “optional sinking fund payment”. If provided for by the terms of
Securities of any series, the amount of any sinking fund payment may be subject to reduction as
provided in Section 4.02. Each sinking fund payment with respect to Securities of a particular
series will be applied to the redemption of Securities of such series as provided for by the terms
of Securities of such series.

     Section 4.02. Satisfaction of Sinking Fund Payments With Securities.

          The Company (a) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (b) may apply as a credit Securities of a series which have been
redeemed either at the election of the Company pursuant to the terms of such Securities or through
the application of permitted optional sinking fund payments pursuant to the terms of such
Securities, in each case in satisfaction of all or any part of any sinking fund payment with
respect to the Securities of such series required to be made pursuant to the terms of such
Securities as provided for by the terms of such series, provided that such Securities have not been
previously so credited. Such Securities will be received and credited for such purpose by the
Trustee at the Redemption Price specified in such Securities for redemption through operation of
the sinking fund and the amount of such sinking fund payment will be reduced accordingly.

     Section 4.03. Redemption of Securities for Sinking Fund.

          Not less than 60 calendar days prior to each sinking fund payment date for any series of
Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying the amount
of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the
portion thereof, if any, that is to be satisfied by payment of cash and the portion thereof, if
any, that is to be satisfied by delivering and crediting Securities of that series pursuant to
Section 4.02 and will also deliver to the Trustee any Securities to be so delivered. Not less than
30 calendar days before each such sinking fund payment date, the Trustee will select the Securities
to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02(c) and
cause notice of the redemption thereof to be given in the name of and at the expense of the Company
in the manner provided in Section 3.02(b). Such notice having been duly given, the redemption of
such Securities will be made upon the terms and in the manner stated in Sections 3.04 and 3.05.

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Article V.

DEFEASANCE AND COVENANT DEFEASANCE

     Section 5.01. Company’s Option to Effect Defeasance or Covenant Defeasance.

          The Company may elect, at its option by Board Resolution at any time, to have either Section
5.02 or Section 5.03 applied to the Outstanding Securities of any series designated pursuant to
Section 2.01 as being defeasible pursuant to this Article V (hereinafter called “Defeasible
Series”), upon compliance with the conditions set forth below in this Article V, provided
that Section 5.02 will not apply to any series of Securities that is convertible into Common Stock
pursuant to Section 2.01(b)(xvi) or convertible into or exchangeable for any other securities
pursuant to Section 2.01 (b)(xvii).

     Section 5.02. Defeasance and Discharge.

          Upon the Company’s exercise of the option provided in Section 5.01 to have this Section 5.02
applied to the Outstanding Securities of any Defeasible Series and subject to the proviso to
Section 5.01, the Company will be deemed to have been discharged from its obligations with respect
to the Outstanding Securities of such series as provided in this Section 5.02 on and after the date
the conditions set forth in Section 5.04 are satisfied (hereinafter called “Defeasance”). For this
purpose, such Defeasance means that the Company will be deemed to have paid and discharged the
entire indebtedness represented by the Outstanding Securities of such series and to have satisfied
all its other obligations under the Securities of such series and this Indenture insofar as the
Securities of such series are concerned (and the Trustee, at the expense of the Company, will
execute proper instruments acknowledging the same), subject to the following which will survive
until otherwise terminated or discharged hereunder: (a) the rights of Holders of Securities of such
series to receive, solely from the trust fund described in Section 5.04 and as more fully set forth
in Section 5.04, payments in respect of the principal of and any premium and interest on such
Securities of such series when payments are due, (b) the Company’s obligations with respect to the
Securities of such series under Sections 2.05, 2.06, 2.07, 6.02, 6.03, and 10.06, (c) the rights,
powers, trusts, duties, and immunities of the Trustee hereunder, and (d) this Article V. Subject
to compliance with this Article V, the Company may exercise its option provided in Section 5.01 to
have this Section 5.02 applied to the Outstanding Securities of any Defeasible Series
notwithstanding the prior exercise of its option provided in Section 5.01 to have Section 5.03
applied to the Outstanding Securities of such series.

     Section 5.03. Covenant Defeasance.

          Upon the Company’s exercise of the option provided in Section 5.01 to have this Section 5.03
applied to the Outstanding Securities of any Defeasible Series,
(a) the Company will be released from its obligations under Section 6.04, Section 11.01, and the

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provisions of any Supplemental Indenture specified in such Supplemental
Indenture, and (b) the occurrence of any event specified in Sections 8.01(a)(iii), 8.01(a)(iv)
(with respect to Section 6.04, Section 11.01, and the provisions of
any Supplemental Indenture specified in such Supplemental Indenture), 8.01(a)(v), and 8.01(a)(viii)
will be deemed not to be or result in an Event of Default, in each case with respect to the
Outstanding Securities of such series as provided in this Section on and after the date the
conditions set forth in Section 5.04 are satisfied (hereinafter called “Covenant Defeasance”). For
this purpose, such Covenant Defeasance means that the Company may omit to comply with and will have
no liability in respect of any term, condition, or limitation set forth in any such specified
Section (to the extent so specified in the case of Section 8.01(a)(iv)), whether directly or
indirectly by reason of any reference elsewhere herein to any such Section or by reason of any
reference in any such Section to any other provision herein or in any other document, but the
remainder of this Indenture and the Securities of such series will be unaffected thereby.

     Section 5.04. Conditions to Defeasance or Covenant Defeasance.

          The following will be the conditions to application of either Section 5.02 or Section 5.03 to
the Outstanding Securities of any Defeasible Series:

          (a) The Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee that satisfies the requirements contemplated by Section 9.08 and agrees to
comply with the provisions of this Article V applicable to it) as trust funds in trust for the
benefit of the Holders of Outstanding Securities of such series (i) money in an amount, or (ii)
U.S. Government Obligations that through the scheduled payment of principal and interest in respect
thereof in accordance with their terms will provide, without reinvestment, not later than one day
before the due date of any payment, money in an amount, or (iii) a combination thereof, in each
case sufficient in the opinion of an independent firm of certified public accountants, to pay and
discharge, and which will be applied by the Trustee (or any such other qualifying trustee) to pay
and discharge, the principal of and any premium and interest on the Securities of such series on
the respective Stated Maturities or on any earlier date or dates on which the Securities of such
series shall be subject to redemption and the Company shall have given the Trustee irrevocable
instructions satisfactory to the Trustee to give notice to the Holders of the redemption of the
Securities of such series, all in accordance with the terms of this Indenture and the Securities of
such series.

          (b) In the case of an election under Section 5.02, the Company shall have delivered to the
Trustee an Opinion of Counsel (from a counsel who shall not be an employee of the Company) to the
effect that (i) the Company has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of this Indenture there has been a change in the
applicable Federal income tax law, in either case to the effect that, and based thereon, such
opinion shall confirm that, the Holders of the Outstanding Securities of such series will not
recognize gain or loss for Federal income tax purposes as a result of the deposit, Defeasance, and
discharge to be effected with respect to the Securities of such series and will be subject to Federal income tax on the same
amount, in the same manner, and at the same times as would be the case if such deposit, Defeasance,
and discharge were not to occur.

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          (c) In the case of an election under Section 5.03, the Company shall have delivered to the
Trustee an Opinion of Counsel (from a counsel who shall not be an employee of the Company) to the
effect that the Holders of the Outstanding Securities of such series will not recognize gain or
loss for Federal income tax purposes as a result of the deposit and Covenant Defeasance to be
effected with respect to the Securities of such series and will be subject to Federal income tax on
the same amount, in the same manner, and at the same times as would be the case if such deposit and
Covenant Defeasance were not to occur.

          (d) The Company shall have delivered to the Trustee an Officers’ Certificate to the effect
that the Securities of such series, if then listed on any securities exchange, will not be delisted
solely as a result of such deposit.

          (e) No Event of Default or event that (after notice or lapse of time or both) would become an
Event of Default shall have occurred and be continuing at the time of such deposit or, with regard
to any Event of Default or any such event specified in Sections 8.01(a)(vi) and (vii), at any time
on or prior to the 90th calendar day after the date of such deposit (it being understood that this
condition will not be deemed satisfied until after such 90th calendar day).

          (f) Such Defeasance or Covenant Defeasance will not cause the Trustee to have a conflicting
interest within the meaning of the Trust Indenture Act (assuming all Securities are in default
within the meaning of such Act).

          (g) Such Defeasance or Covenant Defeasance will not result in a breach or violation of, or
constitute a default under, any other agreement or instrument to which the Company is a party or by
which it is bound.

          (h) The Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent with respect to such Defeasance or Covenant
Defeasance have been complied with.

          (i) Such Defeasance or Covenant Defeasance will not result in the trust arising from such
deposit constituting an investment company within the meaning of the Investment Company Act of
1940, as amended, unless such trust will be qualified under such Act or exempt from regulation
thereunder.

     Section 5.05. Deposited Money and U.S. Government Obligations to be Held in Trust; Other
Miscellaneous Provisions.

          (a) Subject to the provisions of Section 6.03(e), all money and U.S. Government Obligations
(including the proceeds thereof) deposited with the Trustee or other qualifying trustee (solely for
purposes of this Section 5.05 and Section 5.06, the Trustee and any such other trustee are referred
to collectively as the “Trustee”) pursuant to Section 5.04 in respect of the Securities of any Defeasible Series will be held in trust

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and applied by the Trustee, in accordance with the provisions of the Securities of such series and
this Indenture, to the payment, either directly or through any such Paying Agent (including the
Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of Securities
of such series, of all sums due and to become due thereon in respect of principal and any premium
and interest, but money so held in trust need not be segregated from other funds except to the
extent required by law.

          (b) The Company will pay and indemnify the Trustee against any tax, fee, or other charge
imposed on or assessed against the U.S. Government Obligations deposited pursuant to Section 5.04
or the principal and interest received in respect thereof other than any such tax, fee, or other
charge that by law is for the account of the Holders of Outstanding Securities.

          (c) Notwithstanding anything in this Article V to the contrary, the Trustee will deliver or
pay to the Company from time to time upon a Company Request any money or U.S. Government
Obligations held by it as provided in Section 5.04 with respect to Securities of any Defeasible
Series that are in excess of the amount thereof that would then be required to be deposited to
effect an equivalent Defeasance or Covenant Defeasance with respect to the Securities of such
series.

     Section 5.06. Reinstatement.

          If the Trustee or the Paying Agent is unable to apply any money in accordance with this
Article V with respect to the Securities of any series by reason of any order or judgment of any
court or governmental authority enjoining, restraining, or otherwise prohibiting such application,
then the Company’s obligations under this Indenture and the Securities of such series will be
revived and reinstated as though no deposit had occurred pursuant to this Article V with respect to
Securities of such series until such time as the Trustee or Paying Agent is permitted to apply all
money held in trust pursuant to Section 5.05 with respect to Securities of such series in
accordance with this Article V; provided, however, that if the Company makes any
payment of principal of or any premium or interest on any Security of such series following the
reinstatement of its obligations, the Company will be subrogated to the rights of the Holders of
Securities of such series to receive such payment from the money so held in trust.

Article VI.

PARTICULAR COVENANTS OF THE COMPANY

     Section 6.01. Payment of Principal, Premium and Interest on Securities.

          The Company, for the benefit of each series of Securities, will duly and punctually pay the
principal of and any premium and interest on the Securities of that series in accordance with the
terms of the Securities and this Indenture. The Principal Amount of, the Redemption Price (if any)
for and interest (including Defaulted Interest, if any) on the Securities shall be considered paid
on the applicable date due if on such date the Trustee or the Paying Agent holds, in accordance with this Indenture, money sufficient to
pay all such amounts then due.

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     Section 6.02. Maintenance of Office or Agency.

          (a) The Company will maintain in each Place of Payment for any series of Securities an office
or agency where Securities of that series may be presented or surrendered for payment, where
Securities of that series may be surrendered for registration of transfer or exchange, and where
notices and demands to or upon the Company in respect of the Securities of that series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in the location, of such office or agency. If at any time the Company
shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with
the address thereof, such presentations, surrenders, notices, and demands may be made or served at
the Corporate Trust Office, and the Company hereby appoints the Trustee as its agent to receive all
such presentations, surrenders, notices, and demands.

          (b) The Company may also from time to time designate one or more other offices or agencies
where the Securities of one or more series may be presented or surrendered for any or all such
purposes and may from time to time rescind such designations; provided, however,
that no such designation or rescission will in any manner relieve the Company of its obligation to
maintain an office or agency in each Place of Payment for Securities of any series for such
purposes. The Company will give prompt written notice to the Trustee of any such designation or
rescission and of any change in the location of any such other office or agency.

     Section 6.03. Money for Securities Payments to be Held in Trust.

          (a) If the Company shall at any time act as its own Paying Agent with respect to any series of
Securities, it will, prior to 10:00 a.m. (local time at the Place of Payment) on the due date of
the principal of or any premium or interest on any of the Securities of that series, segregate and
hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal
and any premium and interest so becoming due until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and will promptly notify the Trustee of its action or
failure so to act.

          (b) Whenever the Company shall have one or more Paying Agents for any series of Securities, it
will, prior to each due date of the principal of or any premium or interest on any Securities of
that series, deposit with a Paying Agent a sum sufficient to pay such amount, such sum to be held
as provided by the Trust Indenture Act, and (unless such Paying Agent is the Trustee) the Company
will promptly notify the Trustee of its action or failure so to act.

          (c) The Company will cause each Paying Agent for any series of Securities other than the
Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent will agree
with the Trustee, subject to the provisions of this Section 6.03, that such Paying Agent will (i)
comply with the provisions of the Trust Indenture Act applicable to
it as a Paying Agent and (ii) during the continuance of any default by

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the Company (or any other obliger upon the Securities of that series) in the making of
any payment in respect of the Securities of that series, and upon the written request of the
Trustee, forthwith pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

          (d) The Company may at any time, for the purpose of obtaining the satisfaction and discharge
of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to
pay, to the Trustee all sums held in trust by the Company or such Paying Agent, such sums to be
held by the Trustee upon the same trusts as those upon which such sums were held by the Company or
such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent
will be released from all further liability with respect to such money.

          (e) Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of or any premium or interest on any Security of any series
and remaining unclaimed for two years after such principal, premium, or interest has become due and
payable will be paid to the Company upon a Company Request (or, if then held by the Company, will
be discharged from such trust); and the Holder of such Security will thereafter, as an unsecured
general creditor, look only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Company as trustee
thereof, will thereupon cease; provided, however, that the Trustee or such Paying
Agent, before being required to make any such repayment, shall, at the expense of the Company cause
to be published once, in a newspaper published in the English language, customarily published on
each Business Day and of general circulation in the Borough of Manhattan, The City of New York,
notice, to be prepared by the Company, that such money remains unclaimed and that, after a date
specified therein, which will not be less than 30 calendar days from the date of such publication,
any unclaimed balance of such money then remaining will be repaid to the Company.

     Section 6.04. Existence.

          Subject
to Article XI, the Company will do or cause to be done all things necessary to preserve and keep in full force
and effect its existence, rights (charter and statutory), and
franchises; provided, however, that the Company will not be required to preserve any such right or franchise if the Company determines that
the preservation thereof is no longer desirable in the conduct of the business of the Company.

     Section 6.05. Compliance Certificate.

          The Company will deliver to the Trustee, within 120 calendar days after the end of each fiscal
year of the Company ending after the date hereof, an Officers’ Certificate stating whether or not
to the knowledge of the signing officers the Company is in default in the performance and
observance of any of the terms, provisions, and conditions of this Indenture (without regard to any
period of grace or requirement of notice provided hereunder) and, if the Company is in default, specifying all such defaults and
the nature and status thereof of which such officers may have such knowledge.

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     Section 6.06. Waiver of Certain Covenants.

          The Company may omit in any particular instance to comply with any term, provision, or
condition set forth in Section 6.04, and the provisions of any
Supplemental Indenture specified in such Supplemental Indenture, with respect to the Securities of
any series if the Holders of a majority in principal amount of the Outstanding Securities of such
series shall, by Act of such Holders, either waive such compliance in such instance or generally
waive compliance with such term, provision, or condition, but no such waiver will extend to or
affect such term, provision, or condition except to the extent so expressly waived, and, until such
waiver shall become effective, the obligations of the Company and the duties of the Trustee in
respect of any such term, provision, or condition will remain in full force and effect.

     Section 6.07. Calculation of Original Issue Discount.

          The Company shall file with the Trustee promptly at the end of each calendar year (i) a
written notice specifying the amount of original issue discount (including daily rates and accrual
periods) accrued on Outstanding Securities as of the end of such year and (ii) such other specific
information relating to such original issue discount as may then be relevant under the Internal
Revenue Code of 1986, as amended from time to time.

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Article VII.

SECURITIES HOLDERS’ LIST AND

REPORTS BY THE COMPANY AND THE TRUSTEE

     Section 7.01. Company to Furnish Trustee Names and Addresses of Holders.

          The Company will furnish or cause to be furnished to the Trustee (a) semi-annually, not more
than 15 calendar days after the applicable Regular Record Date, a list for each series of
Securities, in such form as the Trustee may reasonably require, of the names and addresses of the
Holders of Securities of such series as of such Regular Record Date and (b) at such other times as
the Trustee may request in writing, within 30 calendar days after the receipt by the Company of any
such request, a list of similar form and content as of a date not more than 15 calendar days prior
to the time such list is furnished; excluding from any such list names and addresses
received by the Trustee in its capacity as Security Registrar.

     Section 7.02. Preservation of Information; Communication to Holders.

          (a) The Trustee will preserve, in as current a form as is reasonably practicable, the names
and addresses of Holders contained in the most recent list furnished to the Trustee as provided in
Section 7.01 and the names and addresses of Holders received by the Trustee in its capacity as
Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01
upon receipt of a new list so furnished.

          (b) The rights of the Holders to communicate with other Holders with respect to their rights
under this Indenture or under the Securities, and the corresponding rights and privileges of the
Trustee, will be as provided by the Trust Indenture Act.

          (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and
the Trustee that neither the Company nor the Trustee nor any agent of either of them will be held
accountable by reason of any disclosure of information as to names and addresses of Holders made
pursuant to the Trust Indenture Act.

     Section 7.03. Reports by Trustee.

          (a) The Trustee will transmit to Holders such reports concerning the Trustee and its actions
under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the
manner provided pursuant thereto. If required by Section 313 (a) of the Trust Indenture Act, the
Trustee shall, within sixty days after each May 15 following the date of this Indenture deliver to
Holders a brief report, dated as of such May 15, which complies with the provisions of such Section
313(a).

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          (b) A copy of each such report will, at the time of such transmission to Holders, be filed by
the Trustee with each stock exchange upon which any Securities are listed, with the Commission, and
with the Company. The Company will promptly notify the Trustee when any Securities are listed on
any stock exchange or of any delisting thereof.

     Section 7.04. Reports by Company.

          The Company will file with the Trustee and the Commission, and transmit to Holders, such
information, documents, and other reports, and such summaries thereof, as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant to such Act;
provided that any such information, documents, or reports required to be filed with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act will be filed with the Trustee
within 15 calendar days after the same is so required to be filed with the Commission.

          Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
conclusively rely exclusively on Officers’ Certificates).

Article VIII.

DEFAULT

     Section 8.01. Event of Default.

          (a) “Event of Default”, wherever used herein with respect to Securities of any series, means
any one of the following events (whatever the reason for such Event of Default and whether it may
be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree,
or order of any court or any order, rule, or regulation of any administrative or governmental
body):

     (i) default in the payment of any interest (including Defaulted Interest, if any) upon
any Security of that series when it becomes due and payable, and continuance of such
default for a period of 30 calendar days;

     (ii) default in the payment of the principal of (or premium, if any, on) any Security
of that series when it becomes due and payable;

     (iii) default in the making of any sinking fund payment when and as due by the terms
of a Security of that series, and continuance of such default for a period of 60 days;

     (iv) default in the performance, or breach, of any covenant or warranty of the Company
in this Indenture (other than a covenant or warranty, a default in the performance or breach of which is elsewhere in this Section 8.01 specifically
dealt with or which has expressly been included in this Indenture solely for the benefit of
one or more series of Securities other than that series), and continuance of such default
or breach for a period of 60 calendar days after there has been given and actually received
by the Company a Notice of Default with respect to such default or breach;

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     (v) any nonpayment at maturity or other default is made under any agreement or
instrument relating to any other Indebtedness of the Company (the unpaid principal amount
of which is not less than the greater of $50 million or 10% of Consolidated Stockholders’
Equity of the Company), and, in any such case, such default (A) continues beyond any period
of grace provided with respect thereto, (B) results in such Indebtedness being accelerated
or declared due and payable (or, in the case of nonpayment, occurs at the final maturity of
such Indebtedness), and (C) such Indebtedness is not discharged, or such acceleration or
declaration has not been rescinded or annulled, within a period of 30 days after actual
receipt by the Company of a Notice of Default from the Trustee or the required Holders of
such series; provided, however, that if any such nonpayment or other default shall be
cured, waived, rescinded or annulled, then the Event of Default by reason thereof shall be
deemed not to have occurred; provided, however, further, that, subject to the provisions of
Section 9.01 and 8.08, the Trustee will not be deemed to have knowledge of such nonpayment
or other default unless either (1) a Responsible Officer of the Trustee has actual
knowledge of nonpayment or other default or (2) the Trustee has received written notice
thereof from the Company, from any Holder, from the holder of any such Indebtedness or from
the trustee under the agreement or instrument relating to such Indebtedness;

     (vi) the entry by a court having jurisdiction in the premises of (A) a decree or order
for relief in respect of the Company in an involuntary case or proceeding under any
applicable Federal or state bankruptcy, insolvency, reorganization, or other similar law or
(B) a decree or order adjudging the Company as bankrupt or insolvent, or approving as
properly filed a petition seeking reorganization, arrangement, adjustment, or composition
of or in respect of the Company under any applicable Federal or state law, or appointing a
custodian, receiver, liquidator, assignee, trustee, sequestrator, or other similar official
of the Company or of any substantial part of its property, or ordering the winding up or
liquidation of its affairs, and the continuance of any such decree or order for relief or
any such other decree or order unstayed and in effect for a period of 60 consecutive
calendar days;

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     (vii) the commencement by the Company of a voluntary case or proceeding under any
applicable Federal or state bankruptcy, insolvency, reorganization, or other similar law or
of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent
by it to the entry of a decree or order for relief in respect of the Company in an
involuntary case or proceeding under any applicable Federal or state bankruptcy,
insolvency, reorganization, or other similar law or to the commencement of any bankruptcy
or insolvency case or proceeding against it, or the filing by it of a petition or answer or
consent seeking reorganization or relief with respect to the Company under any applicable
Federal or state bankruptcy, insolvency, reorganization, or other similar law, or the
consent by it to the filing of such petition or to the appointment of or taking possession
by a custodian, receiver, liquidator, assignee, trustee, sequestrator, or other similar
official of the Company or of any substantial part of its property pursuant to any such
law, or the making by it of an assignment for the benefit of creditors, or the admission by
it in writing of its inability to pay its debts generally as they become due, or the taking
of corporate action by the Company in furtherance of any such action; or

     (viii) any other Event of Default provided with respect to Securities of that series.

          (b) If an Event of Default (other than an Event of Default arising under Section 8.01(a)(vi)
or (vii)) with respect to Securities of any series at the time Outstanding occurs and is
continuing, then in every case the Trustee or the Holders of not less than 25% in principal amount
of the Outstanding Securities of that series may declare the principal amount (or, if any of the
Securities of that series are Original Issue Discount Securities, such portion of the principal
amount of such Securities as may be specified in the terms thereof) of all of the Securities of
that series to be due and payable immediately, by a notice in writing to the Company (and to the
Trustee if given by Holders), and upon any such declaration such principal amount (or specified
amount) will become immediately due and payable. If an Event of Default under Section 8.01(a)(vi)
or (vii) occurs, then the principal of, premium, if any, and accrued interest on the Securities
shall become immediately due and payable without any declaration or other act on the part of the
Trustee or any Holder.

          (c) At any time after such a declaration of acceleration with respect to Securities of any
series has been made and before a judgment or decree for payment of the money due has been obtained
by the Trustee as hereinafter in this Article VIII provided, the Holders of a majority in principal
amount of the outstanding Securities of that series, by written notice to the Company and the
Trustee, may rescind and annul such declaration and its consequences if (i) the Company has paid or
deposited with the Trustee a sum sufficient to pay (A) all overdue interest on all Securities of
that series, (B) the principal of (and premium, if any, on) any Securities of that series which
have become due otherwise than by such declaration of acceleration and any interest thereon at the
rate or rates prescribed therefor in such Securities, (C) to the extent that payment of such
interest is lawful, interest upon overdue interest at the rate or rates prescribed therefor in such
Securities, and (D) all sums paid or advanced by the Trustee
hereunder and the reasonable compensation, expenses, disbursements,
and advances of the Trustee and its agents

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and counsel and (ii) all Events of Default with respect to Securities of that series, other
than the nonpayment of the principal of Securities of that series which have become due solely by
such declaration of acceleration, have been cured or waived as provided in Section 8.01(d). No
such rescission will affect any subsequent default or impair any right consequent thereon.

          (d) The Holders of a majority in principal amount of the Outstanding Securities of any series
may on behalf of the Holders of all the Securities of such series waive any past default hereunder
with respect to such series and its consequences, except a default (i) in the payment of the
principal of or any premium or interest on any Security of such series or (ii) in respect of a
covenant or provision hereof which under Article X cannot be modified or amended without the
consent of the Holder of each Outstanding Security of such series affected. Upon any such waiver,
such default will cease to exist, and any Event of Default arising therefrom will be deemed to have
been cured, for every purpose of this Indenture, but no such waiver will extend to any subsequent
or other default or impair any right consequent thereon. This Section 8.01(b) shall be in lieu of
Section 316(a)1(B) of the Trust Indenture Act and such Section 316(a)1(B) is hereby expressly
excluded from this Indenture, as permitted by the Trust Indenture Act.

     Section 8.02. Covenant of Company to Pay to Trustee Whole Amount Due on Securities on
Default in Payment of Interest or Principal; Suits for Enforcement by Trustee.

          (a) The Company covenants that if (i) default is made in the payment of any interest on any
Security when such interest becomes due and payable and such default continues for a period of 30
calendar days or (ii) default is made in the payment of the principal of (or premium, if any, on)
any Security when it becomes due and payable, the Company will, upon demand of the Trustee, pay to
it, for the benefit of the Holders of such Securities, the whole amount then due and payable on
such Securities for principal and any premium and interest and, to the extent that payment of such
interest will be legally enforceable, interest on any overdue principal and premium and on any
overdue interest, at the rate or rates prescribed therefor in such Securities, and, in addition
thereto, such further amount as will be sufficient to cover the costs and expenses of collection,
including the reasonable compensation, expenses, disbursements, and advances of the Trustee and its
agents and counsel.

          (b) If an Event of Default with respect to Securities of any series occurs and is continuing,
the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.

          (c) In case of any judicial proceeding relative to the Company (or any other obliger upon the
Securities), its property or its creditors, the Trustee will be
entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the

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Trust Indenture Act in order to have claims of the Holders and the Trustee
allowed in any such proceeding. In particular, the Trustee will be authorized to collect and
receive any money or other property payable or deliverable on any such claims and to distribute the
same, and any custodian, receiver, assignee, trustee, liquidator, sequestrator, or other similar
official in any such judicial proceeding is hereby authorized by each Holder to make such payments
to the Trustee and, in the event that the Trustee consents to the making of such payments directly
to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses,
disbursements, and advances of the Trustee and its agents and counsel, and any other amounts due
the Trustee under Section 9.06.

          (d) No provision of this Indenture will be deemed to authorize the Trustee to authorize or
consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement,
adjustment, or composition affecting the Securities or the rights of any Holder thereof or to
authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;
provided, however, that the Trustee may, on behalf of the Holders, vote for the
election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other
similar committee.

          (e) All rights of action and claims under this Indenture or the Securities may be prosecuted
and enforced by the Trustee without the possession of any of the Securities or the production
thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee will
be brought in its own name as trustee of an express trust, and any recovery of judgment will, after
provision for the payment of the reasonable compensation, expenses, disbursements, and advances of
the Trustee and its agents and counsel, be for the ratable benefit of the Holders of the Securities
in respect of which such judgment has been recovered.

     Section 8.03. Application of Money Collected by Trustee.

          Any money collected by the Trustee pursuant to this Article VIII will be applied in the
following order, at the date or dates fixed by the Trustee and, in case of the distribution of such
money on account of principal or any premium or interest, upon presentation of the Securities and
the notation thereon of the payment if only partially paid and upon surrender thereof if fully
paid:

	 	 	 	 	 
	 

	 	FIRST:
	 	To the payment of all amounts due the Trustee under Section 9.06;
	 
	 	 	 	 
	 

	 	SECOND:
	 	To the payment of the amounts then due and unpaid for principal of and any
premium and interest on the Securities in respect of which or for the benefit
of which such money has been collected, ratably, without preference or
priority of any kind, according to the amounts due and payable on such
Securities for principal and any premium and interest, respectively; and

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	 	THIRD:
	 	To the Company.

     Section 8.04. Limitation on Suits by Holders of Securities.

          No Holder of any Security of any series will have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or
trustee, or for any other remedy hereunder, unless (a) such Holder has previously given written
notice to the Trustee of a continuing Event of Default with respect to the Securities of that
series, (b) the Holders of not less than 25% in principal amount of the Outstanding Securities of
that series shall have made written request to the Trustee to institute proceedings in respect of
such Event of Default in its own name as Trustee hereunder, (c) such Holder or Holders have offered
to the Trustee indemnity satisfactory to the Trustee against the costs, expenses, and liabilities
to be incurred in compliance with such request, (d) the Trustee for 60 calendar days after its
receipt of such notice, request, and offer of indemnity has failed to institute any such
proceeding, and (e) no direction inconsistent with such written request has been given to the
Trustee during such 60-day period by the Holders of a majority in principal amount of the
Outstanding Securities of that series, it being understood and intended that no one or more of such
Holders will have any right in any manner whatever by virtue of, or by availing of, any provision
of this Indenture to affect, disturb, or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any
right under this Indenture, except in the manner herein provided and for the equal and ratable
benefit of all of such Holders.

     Section 8.05. Rights and Remedies Cumulative; Delay or Omission in Exercise of Rights not
a Waiver of Event of Default.

          (a) Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost, or stolen Securities in the last paragraph of Section 2.07, no right or remedy
herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of
any other right or remedy, and every right and remedy will, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. The assertion or employment of any right or remedy
hereunder, or otherwise, will not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

          (b) No delay or omission of the Trustee or of any Holder of any Securities to exercise any
right or remedy accruing upon any Event of Default will impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein. Every right and
remedy given by this Article VIII or by law to the Trustee or to the Holders may be exercised from
time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the
case may be.

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     Section 8.06. Rights of Holders of Majority in Principal Amount of Outstanding Securities
to Direct Trustee.

          The Holders of a majority in principal amount of the Outstanding Securities of any series will
have the right to direct the time, method, and place of conducting any proceeding for any remedy
available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect
to the Securities of such series, provided that (a) such direction will not be in conflict
with any rule of law or with this Indenture and (b) the Trustee may take any other action deemed
proper by the Trustee which is not inconsistent with such direction.

     Section 8.07. Requirement of an Undertaking to Pay Costs in Certain Suits Under the
Indenture or Against the Trustee.

          In any suit for the enforcement of any right or remedy under this Indenture, or in any suit
against the Trustee for any action taken, suffered, or omitted by it as Trustee, a court may
require any party litigant in such suit to file undertaking to pay the costs of such suit, and may
assess costs, including attorney’s fees and expenses, against any such party litigant, in the
manner and to the extent provided in the Trust Indenture Act; provided that neither this
Section 8.07 nor the Trust Indenture Act will be deemed to authorize any court to require such an
undertaking or to make such an assessment in any suit instituted by the Trustee, a suit by a Holder
pursuant to Section 8.09 hereof, or a suit by Holders of more than 10% in aggregate principal
amount of the then Outstanding Securities.

     Section 8.08. Notice of Defaults.

          If a Default occurs hereunder with respect to Securities of any series, the Trustee will give
the Holders of Securities of such series notice of such Default as and to the extent provided by
the Trust Indenture Act; provided, however, that in the case of any Default of the character
specified in Section 8.01(a)(iv) with respect to Securities of such series no such notice to
Holders will be given until at least 30 calendar days after the
occurrence thereof. The Company will give the Trustee notice of any
uncured Event of Default within 10 days after any Responsible Officer
of the Company becomes aware of or receives actual notice of such
Event of Default.

     Section 8.09. Unconditional Right of Holders to Receive Principal, Premium, and
Interest.

          Notwithstanding any other provision in this Indenture, the Holder of any Security will have
the right, which is absolute and unconditional, to receive payment of the principal of and any
premium and (subject to Section 2.09) interest on such Security on the respective Stated Maturities
expressed in such Security (or, in the case of redemption, on the Redemption Date) and to institute
suit for the enforcement of any such payment, and such rights may not be impaired without the
consent of such Holder.

     Section 8.10. Restoration of Rights and Remedies.

          If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy
under this Indenture and such proceeding has been discontinued or
abandoned for any reason, or has been determined adversely to the
Trustee or to such Holder, then and in every such

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case, subject to any determination in such proceeding, the Company, the
Trustee, and the Holders will be restored severally and respectively to their former positions
hereunder and thereafter all rights and remedies of the Trustee and the Holders will continue as
though no such proceeding had been instituted.

     Section 8.11. Trustee May File Proofs of Claims.

          The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements, and advances of the Trustee, its agents and counsel) and the
Holders allowed in any judicial proceeding relative to the Company or the Subsidiaries (or any
other obligor upon the Securities), their creditors or their property and shall be entitled and
empowered to collect and receive any monies or other property payable or deliverable on any such
claim and to distribute the same, and any custodian in any such judicial proceedings is hereby
authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to the Trustee any
amount due to it for the reasonable compensation, expenses, disbursements, and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee hereunder. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on
behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting
the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect
of the claim of any Holder in any such proceeding.

Article IX.

CONCERNING THE TRUSTEE

     Section 9.01. Certain Duties and Responsibilities.

	 	(a)	 	Except during the continuance of an Event of Default,

	 	(1)	 	the Trustee undertakes to perform such
duties and only such duties as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into
this Indenture against the Trustee; and
	 
	 	(2)	 	in the absence of bad faith on its part,
the Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to
the requirements of this Indenture; but in the case of any such
certificates or opinions which by any provision hereof are
specifically required to be furnished to the Trustee, the Trustee
shall be under a duty to examine the same to determine whether or not
they conform to the requirements of this Indenture (but need not confirm or
investigate the accuracy of mathematical calculations or other
facts stated therein).

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          (b) In case an Event of Default has occurred and is continuing, the Trustee shall exercise
such of the rights and powers vested in it by this Indenture, and use the same degree of care and
skill in their exercise, as a prudent person would exercise or use under the circumstances in the
conduct of his or her own affairs.

          (c) No provision of this Indenture shall be construed to relieve the Trustee from liability
for its own negligent action, its own negligent failure to act, or its own wilful misconduct,
except that

	 	(1)	 	this Subsection shall not be construed to
limit the effect of Subsection (a) of this Section;
	 
	 	(2)	 	the Trustee shall not be liable for any
error of judgement made in good faith by a Responsible Officer,
unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;
	 
	 	(3)	 	the Trustee shall not be liable with
respect to any action taken or omitted to be taken by it in good
faith in accordance with the direction of the Holders of a majority
in principal amount of the Outstanding Securities of any series,
determined as provided in Sections 1.01, 8.06 and 14.11, relating to
the time, method and place of conducting any proceeding for any
remedy available to the Trustee, or exercising any trust or power
conferred upon the Trustee, under this Indenture with respect to the
Securities of such series; and
	 
	 	(4)	 	no provision of this Indenture shall
require the Trustee to expend or risk its own funds or otherwise
incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers.

          (d) Whether or not therein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the Trustee shall be
subject to the provisions of this Section.

     Section 9.02. Certain Rights of Trustee.

          Subject to the provisions of Section 9.01:

          (a) the Trustee may conclusively rely and will be protected in acting or refraining from
acting upon, whether in its original or facsimile form, any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness, or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;

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          (b) any request or direction of the Company mentioned herein will be sufficiently evidenced by
a Company Request or Company Order and any resolution of the Board will be sufficiently evidenced
by a Board Resolution;

          (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that
a matter be proved or established prior to taking, suffering, or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, conclusively rely upon an Officers’ Certificate;

          (d) the Trustee may consult with counsel of its selection and the advice of such counsel or
any Opinion of Counsel will be full and complete authorization and protection in respect of any
action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon;

          (e) the Trustee will be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders pursuant to this Indenture,
unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the
Trustee against the costs, expenses, and liabilities which might be incurred by it in compliance
with such request or direction;

          (f) the Trustee will not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order, bond, debenture, note, other evidence of indebtedness, or other paper or document,
but the Trustee, in its discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it will be entitled to examine the books, records, and premises of the Company,
personally or by agent or attorney at the sole cost of the Company and shall incur no liability or
additional liability of any kind by reason of such inquiry or investigation;

          (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents, attorneys or independent contractors and the
Trustee will not be responsible for any misconduct or negligence on the part of any agent, attorney
or independent contractor appointed with due care by it hereunder;

          (h) the Trustee shall not be liable for any action taken, suffered, or omitted to be taken by
it in good faith and reasonably believed by it to be authorized or within the discretion or rights
or powers conferred upon it by this Indenture;

          (i) the Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the
Securities and this Indenture;

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          (j) the rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and
other Person employed to act hereunder;

          (k) the Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded; and

          (l) in no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

     Section 9.03. Not Responsible for Recitals or Issuance of Securities.

          The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, may be taken as the statements of the Company, and neither the Trustee nor any
Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no
representations as to the validity or sufficiency of this Indenture or of the Securities. The
Trustee or any Authenticating Agent will not be accountable for the use or application by the
Company of Securities or the proceeds thereof.

     Section 9.04. May Hold Securities.

          The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar, or any other
agent of the Company, in its individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 9.07 and 9.12, may otherwise deal with the Company with the
same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security
Registrar, or such other agent.

     Section 9.05. Money Held in Trust.

          Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required herein or by law. The Trustee will be under no liability for interest on any
money received by it hereunder except as otherwise agreed in writing with the Company.

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     Section 9.06. Compensation and Reimbursement.

          The Company will (a) pay to the Trustee from time to time such compensation for all services
rendered by it hereunder as the parties shall agree from time to time (which compensation will not
be limited to any provision of law in regard to the compensation of a trustee of an express trust);
(b) except as otherwise expressly provided herein, reimburse the Trustee upon its request for all
reasonable expenses, disbursements, and advances incurred or made by the Trustee in accordance with
provision of this Indenture (including the reasonable compensation and the expenses and
disbursements of agents and counsel), except any such expense, disbursement, or advance as shall be
determined to have been caused by its own negligence or willful misconduct; and (c) indemnify each
of the Trustee and any predecessor Trustee and their agents for, and hold them harmless against,
any and all loss, liability, claim, damage or expense, including taxes (other than taxes based on
the income of the Trustee) incurred without negligence or willful misconduct on its part arising
out of or in connection with the acceptance or administration of the trust or trusts hereunder,
including the costs and expenses of defending itself against any claim (whether asserted by the
Company, any Holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder or in connection with enforcing the provisions
of this Section.

          The Trustee shall have a lien prior to the Securities as to all property and funds held by it
hereunder for any amount owing it or any predecessor Trustee pursuant to this Section 9.06, except
with respect to funds held in trust for the benefit of the Holders of particular Securities.

          When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 8.01(vi) or Section 8.01(vii), the expenses (including the reasonable charges
and expenses of its counsel) and the compensation for the services are intended to constitute
expenses of administration under any applicable Federal or state bankruptcy, insolvency or other
similar law.

          The provisions of this Section shall survive the termination of this Indenture or the
resignation or removal of the Trustee.

     Section 9.07. Disqualification; Conflicting Interests.

          If the Trustee has or acquires a conflicting interest within the meaning of the Trust
Indenture Act, the Trustee will either eliminate such interest or resign, to the extent and in the
manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture.

     Section 9.08. Corporate Trustee Required; Eligibility.

          There will at all times be one or more Trustees hereunder with respect to the Securities of
each series, at least one of which will be a Person that is eligible pursuant to the Trust
Indenture Act to act as such and has a combined capital and surplus of at least $50,000,000 and its
Corporate Trust Office or principal office in New York City, or any other major city in the United
States that is acceptable to the Company.

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If such Person publishes reports of condition at least annually, pursuant to law or to the
requirements of a supervising or examining state or Federal authority, then for the purposes of
this Section 9.08, the combined capital and surplus of such Person shall be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time the Trustee shall cease to be eligible in accordance with the provisions of this
Section 9.08, it will resign promptly in the manner and with the effect hereinafter specified in
this Article IX.

     Section 9.09. Resignation and Removal; Appointment of Successor.

          (a) No resignation or removal of the Trustee and no appointment of a successor Trustee
pursuant to this Article IX will become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 9.10.

          (b) The Trustee may resign at any time with respect to the Securities of one or more series by
giving written notice thereof to the Company. If the instrument of acceptance by a successor
Trustee required by Section 9.10 shall not have been delivered to the Trustee within 30 calendar
days after the giving of such notice of resignation, the resigning Trustee may, at the expense of
the Company, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

          (c) The Trustee may be removed at any time with respect to the Securities of any series by Act
of the Holders of a majority in principal amount of the Outstanding Securities of such series,
delivered to the Trustee and to the Company. If the instrument of acceptance by a successor
Trustee required by Section 9.10 shall not have been delivered to the Trustee within 30 calendar
days after the giving of such notice of removal, the Trustee being removed may, at the expense of
the Company, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to the Securities of such series.

          (d) If, at any time, (i) the Trustee fails to comply with Section 9.07 after written request
therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least
six months, (ii) the Trustee ceases to be eligible under Section 9.08 and fails to resign after
written request therefor by the Company or by any such Holder, or (iii) the Trustee becomes
incapable of acting or is adjudged a bankrupt or insolvent or a receiver of the Trustee or of its
property is appointed or any public officer takes charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation, or liquidation, then, in any
such case, (A) the Company by a Board Resolution may remove the Trustee with respect to all
Securities or (B) subject to Section 8.07, any Holder who has been a bona fide Holder of a Security
for at least six months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee with respect to all Securities and
the appointment of a successor Trustee or Trustees.

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          (e) If the Trustee resigns, is removed, or becomes incapable of acting, or if a vacancy occurs
in the office of Trustee for any cause, with respect to the Securities of one or more series, the
Company by a Board Resolution will promptly appoint a successor Trustee or Trustees with respect to
the Securities of that or those series (it being understood that any such successor Trustee may be
appointed with respect to the Securities of one or more or all of such series and that at any time
there will be only one Trustee with respect to the Securities of any particular series) and will
comply with the applicable requirements of Section 9.10. If, within one year after such
resignation, removal, or incapability or the occurrence of such vacancy, a successor Trustee with
respect to the Securities of any series is appointed by Act of the Holders of a majority in
principal amount of the Outstanding Securities of such series delivered to the Company and the
retiring Trustee, the successor Trustee so appointed will, forthwith upon its acceptance of such
appointment in accordance with the applicable requirements of Section 9.10, become the successor
Trustee with respect to the Securities of such series and to that extent supersede the successor
Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any
series shall have been so appointed by the Company or the Holders and accepted appointment in the
manner required by Section 9.10, any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others similarly situated, at the
expense of the Company, petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Securities of such series.

          (f) The Company will give notice of each resignation and each removal of the Trustee with
respect to the Securities of any series and each appointment of a successor Trustee with respect to
the Securities of any series to all holders of Securities of such series in the manner provided in
Section 13.03. Each notice will include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

     Section 9.10. Acceptance of Appointment by Successor. 

          (a) In case of the appointment hereunder of a successor Trustee with respect to all
Securities, every such successor Trustee so appointed will execute, acknowledge, and deliver to the
Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee will become effective and such successor Trustee,
without any further act, deed, or conveyance, will become vested with all the rights, powers,
trusts, and duties of the retiring Trustee, but, on the request of the Company or the successor
Trustee, such retiring Trustee will, upon payment of its charges, execute and deliver an instrument
transferring to such successor Trustee all the rights, powers, and duties of the retiring Trustee
and will duly assign, transfer, and deliver to such Trustee all property and money held by such
retiring Trustee hereunder.

          (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities
of one or more (but not all) series, the Company, the retiring Trustee, and each successor Trustee
with respect to the Securities of one or more series will execute and deliver an indenture
supplemental hereto wherein such successor Trustee will accept such
appointment and which (i) will contain such provisions

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as may be
necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the
rights, powers, trusts, and duties of the retiring Trustee with respect to the Securities of that
or those series to which the appointment of such successor Trustee relates, (ii) if the retiring
Trustee is not retiring with respect to all Securities, will contain such provisions as may be
deemed necessary or desirable to confirm that all the rights, powers, trusts, and duties of the
retiring Trustee with respect to the Securities of that or those series as to which the retiring
Trustee is not retiring will continue to be vested in the retiring Trustee, and (iii) will add to
or change any of the provisions of this Indenture as may be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, it being understood that
nothing herein or in such supplemental indenture will constitute such Trustees co-trustees of the
same trust and that each such Trustee will be trustee of a trust or trusts hereunder separate and
apart from any trust or trusts hereunder administered by any other such Trustees and upon the
execution and delivery of such supplemental indenture the resignation or removal of the retiring
Trustee will become effective to the extent provided therein and each such successor Trustee,
without any further act, deed, or conveyance, will become vested with all the rights, powers,
trusts, and duties of the retiring Trustee with respect to the Securities of that or those series
to which the appointment of such successor Trustee relates; but on request of the Company or any
successor Trustee, such retiring Trustee will duly assign, transfer, and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with respect to the
Securities of that or those series to which the appointment of such successor Trustee relates.

          (c) Upon request of any such successor Trustee, the Company will execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
applicable rights, powers, and trusts referred to in the preceding paragraphs of this Section 9.10.

          (d) No successor Trustee will accept its appointment unless at the time of such acceptance
such successor Trustee is qualified and eligible under this Article IX.

     Section 9.11. Merger, Conversion, Consolidation, or Succession to Business.

          Any corporation into which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion, or consolidation to which
the Trustee may be a party, or any corporation succeeding to all or substantially all the corporate
trust business of the Trustee, will be the successor of the Trustee hereunder, provided such
corporation is otherwise qualified and eligible under this Article IX, without the execution or
filing of any paper or any further act on the part of any of the parties hereto. In case any
Securities shall have been authenticated, but not delivered, by the Trustee then in office, any
successor by merger, conversion, or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect as if such
successor Trustee had itself authenticated such Securities.

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     Section 9.12. Preferential Collection of Claims Against Company.

          If and when the Trustee is or becomes a creditor of the Company (or any other obligor upon the
Securities), the Trustee will be subject to the provisions of the Trust Indenture Act regarding the
collection of claims against the Company (or any such other obligor).

     Section 9.13. Appointment of Authenticating Agent.

          (a) The Trustee may appoint an Authenticating Agent or Agents with respect to one or more
series of Securities which will be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon original issue and upon exchange, registration of transfer,
or partial redemption thereof or pursuant to Section 2.07, and Securities so authenticated will be
entitled to the benefits of this Indenture and will be valid and obligatory for all purposes as if
authenticated by the Trustee hereunder. Wherever reference is made in this Indenture to the
authentication and delivery of Securities by the Trustee or the Trustee’s certificate of
authentication, such reference will be deemed to include authentication and delivery on behalf of
the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of
the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the
Company and shall at all times be a corporation organized and doing business under the laws of the
United States of America, any state thereof, or the District of Columbia, authorized under such
laws to act as Authenticating Agent, having a combined capital and surplus of not less than
$50,000,000 and subject to supervision or examination by Federal or state authority. If such
Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the
requirements of said supervising or examining authority, then for the purposes of this Section
9.13, the combined capital and surplus of such Authenticating Agent will be deemed to be its
combined capital and surplus as set forth in its most recent report of condition so published. If
at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of
this Section 9.13, such Authenticating Agent will resign immediately in the manner and with the
effect specified in this Section 9.13.

          (b) Any corporation into which an Authenticating Agent may be merged or converted or with
which it may be consolidated, or any corporation resulting from any merger, conversion, or
consolidation to which such Authenticating Agent may be a party, or any corporation succeeding to
all or substantially all the corporate agency or corporate trust business of an Authenticating
Agent, will continue to be an Authenticating Agent, provided such corporation is otherwise eligible
under this Section 9.13, without the execution or filing of any paper or any further act on the
part of the Trustee or the Authenticating Agent.

          (c) An Authenticating Agent may resign at any time by giving written notice thereof to the
Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating
Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon
receiving such a notice of resignation or upon such a termination, or in case at any time such
Authenticating Agent shall cease

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to be eligible in accordance with the provisions this Section 9.13, the Trustee may appoint a
successor Authenticating Agent which shall be acceptable to the Company and will mail written
notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of
the series with respect to which such Authenticating Agent will serve, as their names and addresses
appear in the Security Register. Any successor Authenticating Agent upon acceptance of its
appointment hereunder will become vested with all the rights, powers, and duties of its predecessor
hereunder, with like effect as if originally named as an Authenticating Agent. No successor
Authenticating Agent will be appointed unless eligible under the provisions of this Section 9.13.

          (d) The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section 9.13.

          (e) If an appointment with respect to one or more series of Securities is made pursuant to
this Section 9.13, the Securities of such series may have endorsed thereon, in addition to the
Trustee’s certificate of authentication, an alternative form of certificate of authentication in
the following form:

          This is one of the Securities of the series designated therein referred to in the within
mentioned Indenture.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	The Bank of New York Trust Company, N.A.,
as Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 

As Authenticating Agent
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Authorized Signatory
	 	 

     Section 9.14. Trustee’s Application for Instructions from the Company.

          Any application by the Trustee for written instructions from the Company may, at the option of
the Trustee, set forth in writing any action proposed to be taken or omitted by the Trustee under
this Indenture and the date on and/or after which such action shall be taken or such omission shall
be effective. The Trustee shall not be liable for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date specified in such
application (which date shall not be less than three Business Days after the date any officer of
the Company actually receives such application, unless any such officer shall have consented in
writing to any earlier date) unless prior to taking any such action (or the effective date in the
case of an omission), the Trustee shall have received written instructions in response to such
application specifying the action to be taken or omitted.

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Article X.

SUPPLEMENTAL INDENTURES AND CERTAIN ACTIONS

     Section 10.01. Purposes for Which Supplemental Indentures May Be Entered Into Without
Consent of Holders.

          Without the consent of or notice to any Holders, the Company, when authorized by a Board
Resolution, and the Trustee, at any time and from time to time, may enter into one or more
indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following
purposes:

          (a) to evidence the succession of another Person to the Company and the assumption by any such
successor of the covenants of the Company herein and in the Securities, all to the extent otherwise
permitted hereunder;

          (b) to add to the covenants of the Company for the benefit of the Holders of all or any series
of Securities (and if such covenants are to be for the benefit of less than all series of
Securities, stating that such covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power herein conferred upon the Company;

          (c) to add any additional Events of Default;

          (d) to add to or change any of the provisions of this Indenture to such extent as may be
necessary to permit or facilitate the issuance of Securities in bearer form, registrable or not
registrable as to principal, and with or without interest coupons, or to permit or facilitate the
issuance of Securities in uncertificated form;

          (e) to add to, change, or eliminate any of the provisions of this Indenture in respect of one
or more series of Securities, provided that any such addition, change, or elimination (i)
will neither (A) apply to any Security of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision nor (B) modify the rights of
the Holder of any such Security with respect to such provision or (ii) will become effective only
when there is no such Security Outstanding;

          (f) to establish the form or terms of Securities of any series as permitted by Sections 2.01
and 2.02;

          (g) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more series and to add to or change any of the provisions
of this Indenture as may be necessary to provide for or facilitate the administration of the trusts
hereunder by more than one Trustee, pursuant to the requirements of Section 9.10; or

          (h) to cure any ambiguity, to correct or supplement any provision herein which may be
defective or inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Indenture,
provided that such action pursuant to this clause (h) will not adversely affect the
interests of the Holders of Securities of any series in any material respect.

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     Section 10.02. Modification of Indenture with Consent of Holders of at Least a Majority in
Principal Amount of Outstanding Securities.

          (a) With the consent of the Holders of a majority in principal amount of the Outstanding
Securities of each series affected by such supplemental indenture, by Act of said Holders delivered
to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee
may enter into an indenture or indentures supplemental hereto for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Indenture or
of modifying in any manner the rights of the Holders of Securities of such series under this
Indenture; provided, however that no such supplemental indenture will, without the
consent of the Holder of each Outstanding Security affected thereby:

     (i) change the Stated Maturity of the principal of, or any installment of principal of
or interest on, any Security, or reduce the principal amount thereof or the rate of
interest thereon or any premium payable upon the redemption thereof, or reduce the amount
of the principal of an Original Issue Discount Security that would be due and payable upon
a declaration of acceleration of the Maturity thereof pursuant to Sections 8.01(b), or
change any Place of Payment where, or the coin or currency in which, any Security or any
premium or interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of
redemption, on or after the Redemption Date);

     (ii) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of the Holders of which is required for any such supplemental
indenture, or the consent of the Holders of which is required for any waiver (of compliance
with certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture; or

     (iii) modify any of the provisions of this Section 10.02, Section 8.01(d) or Section
6.06, except to increase the percentage in principal amount of Holders required under any
such Section or to provide that certain other provisions of this Indenture cannot be
modified or waived without the consent of the Holder of each Outstanding Security affected
thereby, provided, however that this clause (c) will not be deemed to
require the consent of any Holder with respect to changes in the references to “the
Trustee” and 6concomitant changes in this Section 10.02 and
Section 6.06, or the deletion of
this proviso, in accordance with the requirements of Sections 9.10 and 10.01(g).

          (b) A supplemental indenture which changes or eliminates any covenant or other provision of
this Indenture which has expressly been included solely for the benefit of one or more particular
series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision,
will be deemed not to affect the rights under this Indenture of the Holders of Securities of any
other series.

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          (c) It will not be necessary for any Act of Holders under this Section 10.02 to approve the
particular form of any proposed supplemental indenture, but it will be sufficient if such Act
approves the substance thereof.

     Section 10.03. Execution of Supplemental Indentures.

          In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article X or the modifications thereby of the trusts created by this Indenture,
the Trustee will be provided with, and (subject to Section 9.01) will be fully protected in relying
upon, an Officers’ Certificate and an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but will not
be obligated to, enter into any such supplemental indenture which affects the Trustee’s own rights,
duties, or immunities under this Indenture or otherwise.

     Section 10.04. Effect of Supplemental Indentures.

          Upon the execution of any supplemental indenture under this Article X, this Indenture will be
modified in accordance therewith, and such supplemental indenture will form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder will be bound thereby.

     Section 10.05. Conformity with Trust Indenture Act.

          Every supplemental indenture executed pursuant to this Article X will conform to the
requirements of the Trust Indenture Act.

     Section 10.06. Reference in Securities to Supplemental Indentures.

          Securities of any series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article X may, and will if required by the Trustee, bear a notation in
form approved by the Trustee as to any matter provided for in such supplemental indenture. If the
Company shall so determine, new Securities of any series so modified as to conform, in the opinion
of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by
the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities
of such series.

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Article XI.

CONSOLIDATION, MERGER, SALE, OR TRANSFER

     Section 11.01. Consolidations and Mergers of Company and Sales Permitted Only on Certain
Terms.

          (a) The Company shall not consolidate with or merge with or into any other Person, or transfer
(by lease, assignment, sale, or otherwise) all or substantially all of its properties and assets to
one or more Persons unless (i) either (A) the Company shall be the continuing or surviving Person
in such a consolidation or merger or (B) the Person or Persons (if other than the Company) formed
by such consolidation or into which the Company is merged or to which all or substantially all of
the properties and assets of the Company are transferred (the Company or such other Person or
Persons being referred to as the “Surviving Person”) shall be a corporation, partnership or trust
organized and validly existing under the laws of the United States, any state thereof, or the
District of Columbia, and shall expressly assume or have the parent corporation thereof expressly
assume, by an indenture supplement, all the obligations of the Company under the Securities and the
Indenture, (ii) immediately after the transaction and the incurrence or anticipated incurrence of
any Indebtedness to be incurred in connection therewith, no Default will exist, and (iii) an
Officers’ Certificate has been delivered to the Trustee to the effect that the conditions set forth
in the preceding clauses (i) and (ii) have been satisfied and an Opinion of Counsel (from a counsel
who shall not be an employee of the Company) has been delivered to the Trustee to the effect that
the conditions set forth in the preceding clause (i) have been satisfied.

          (b) The Surviving Person will succeed to and be substituted for the Company with the same
effect as if it had been named herein as a party hereto, and thereafter the predecessor corporation
will be relieved of all obligations and covenants under this Indenture and the Securities.

Article XII.

SATISFACTION AND DISCHARGE OF INDENTURE

     Section 12.01. Satisfaction and Discharge of Indenture.

          This Indenture will upon a Company Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Securities herein expressly provided
for), and the Trustee, at the expense of the Company, will execute proper instruments acknowledging
satisfaction and discharge of this Indenture, when: (a) either (i) all Securities theretofore
authenticated and delivered (other than (A) Securities which have been destroyed, lost, or stolen
and which have been replaced or paid as provided in Section 2.07 and (B) Securities for the payment
of which money has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust, as provided in Section
6.03) have been delivered to the Trustee for cancellation or (ii) all such Securities not
theretofore delivered to the Trustee for cancellation (A) have
become due and payable, (B) will become due and payable at

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their Stated Maturity within one year, or (C) are to be
called for redemption within one year under arrangements satisfactory to the Trustee for the giving
of notice of redemption by the Trustee in the name, and at the expense, of the Company, and the
Company, in the case of clause (A), (B), or (C) above, has deposited or caused to be deposited with
the Trustee as trust funds in trust for such purpose an amount sufficient to pay and discharge the
entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation,
for principal and any premium and interest to the date of such deposit (in the case of Securities
which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may
be; (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been satisfied. Notwithstanding the satisfaction
and discharge of this Indenture, the obligations of the Company to the Trustee under Section 9.06,
the obligations of the Company to any Authenticating Agent under Section 9.13, and, if money shall
have been deposited with the Trustee pursuant to subclause (ii) of clause (a) of this Section
12.01, the obligations of the Trustee under Sections 6.03(e) and 12.02, will survive such
satisfaction and discharge.

     Section 12.02. Application of Trust Money.

          Subject to provisions of Section 6.03(e), all money deposited with the Trustee pursuant to
Section 12.01 will be held in trust and applied by it, in accordance with the provisions of the
Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for whose payment such money has
been deposited with the Trustee.

Article XIII.

SUBORDINATION

Sections 13.01 through 13.09. Reserved. [Covenants and other subordination provisions
vary from issue to issue.]

     Section 13.10. Notice to Trustee.

          The Company shall give prompt written notice to the Trustee of any fact known to the Company
which would prohibit the making of any payment to or by the Trustee in respect of the Securities.
Failure to give such notice shall not affect the subordination of the Securities to Senior
Indebtedness. Notwithstanding the provisions of this or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the
making of any payment to or by the Trustee in respect of the Securities, unless and until the
Trustee shall have received written notice thereof at the address specified in Section 14.02 from
the Company or a holder of Senior

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Indebtedness or from any trustee or agent therefor; and, prior
to the receipt of any such written notice, the Trustee, subject to the provisions of Section 9.01,
shall be entitled in all respects to assume that no such facts exist; provided, however, that if a
Responsible Officer of the Trustee shall not have received, at least three Business Days prior to
the date upon which by the terms hereof any such money may become payable for any purpose
(including, without limitation, the payment of the principal amount, accrued original issue
discount, Redemption Price or interest or premium, if any, as the case may be, in respect of any
Security), the notice with respect to such money provided for in this Section 13.10, then, anything
herein contained to the contrary notwithstanding, the Trustee shall have full power and authority
to receive such money and to apply the same to the purpose for which such money was received and
shall not be affected by any notice to the contrary which may be received by it within three
Business Days prior to such date.

          Subject to the provisions of Section 9.01, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a person representing himself to be a holder of Senior
Indebtedness (or a trustee or agent on behalf of such holder) to establish that such notice has
been given by a holder of Senior Indebtedness (or a trustee or agent on behalf of any such holder).
In the event that the Trustee determines in good faith that further evidence is required with
respect to the right of any person as a holder of Senior Indebtedness to participate in any payment
or distribution pursuant to this Article, the Trustee may request such person to furnish evidence
to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such
person, the extent to which such person is entitled to participate in such payment or distribution
and any other facts pertinent to the rights of such person under this Article, and if such evidence
is not furnished, the Trustee may defer any payment which it may be required to make for the
benefit of such person pursuant to the terms of this Indenture pending judicial determination as to
the rights of such person to receive such payment.

     SECTION 13.11. Reliance on Judicial Order or Certificate of Liquidating Agent.

          Upon any payment or distribution of assets of the Company referred to in this Article, the
Trustee, subject to the provisions of Section 9.01, and the Holders of the Securities shall be
entitled to conclusively rely upon any order or decree entered by any court of competent
jurisdiction in which such insolvency, bankruptcy, receivership, liquidation, reorganization,
dissolution, winding up or similar case or proceeding is pending, or a certificate of the trustee
in bankruptcy, liquidating trustee, custodian, receiver, assignee for the benefit of creditors,
agent or other person making such payment or distribution, delivered to the Trustee or to the
Holders of Securities, for the purpose of ascertaining the persons entitled to participate in such
payment or distribution, the holders of Senior Indebtedness and other indebtedness of the Company,
the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article.

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     SECTION 13.12. Trustee Not Fiduciary for Holders of Senior Indebtedness.

          The Trustee shall not be deemed to owe any fiduciary duty to the holders of Senior
Indebtedness and shall not be liable to any such holders if the Trustee shall in good faith
mistakenly pay over or distribute to Holders of Securities or to the Company or to any other person
cash, property or securities to which any holders of Senior Indebtedness shall be entitled by
virtue of this Article or otherwise. With respect to the holders of Senior Indebtedness, the
Trustee undertakes to perform or to observe only such of its covenants or obligations as are
specifically set forth in this Article and no implied covenants or obligations with respect to
holders of Senior Indebtedness shall be read into this Indenture against the Trustee.

     SECTION 13.13 Rights of Trustee as Holder of Senior Indebtedness; Preservation of
Trustee’s Rights.

          The Trustee or any Authenticating Agent in its individual capacity shall be entitled to all
the rights set forth in this Article with respect to any Senior Indebtedness which may at any time
be held by it, to the same extent as any other holder of Senior Indebtedness, and nothing in this
Indenture shall deprive the Trustee or any Authenticating Agent of any of its rights as such
holder.

          Nothing in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 9.06.

Article XIV.

MISCELLANEOUS PROVISIONS

     Section 14.01. Successors and Assigns of Company Bound by Indenture.

          All the covenants, stipulations, promises, and agreements in this Indenture contained by or on
behalf of the Company will bind its successors and assigns, whether so expressed or not.

     Section 14.02. Service of Required Notice to Trustee and Company.

          Any request, demand, authorization, direction, notice, consent, waiver, Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with (a) the Trustee by any Holder or by the Company will be sufficient for every purpose
hereunder if made, given, furnished, or filed in writing to or with the Trustee at its Corporate
Trust Office, Attention: Corporate Trust Administration or (b) the Company by the Trustee or by any
Holder will be sufficient for every purpose hereunder (unless otherwise herein expressly provided)
if in writing and mailed, first-class postage prepaid, to the Company addressed to it at RPM
International Inc., P.O. Box 777, 2628 Pearl Road, Medina, Ohio 44528, Attention: General Counsel,
or at any other address previously furnished in writing to the Trustee by the Company.

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     Section 14.03. Service of Required Notice to Holders; Waiver.

          Where this Indenture provides for notice to Holders of any event, such notice will be
sufficiently given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his address as it appears in
the Security Register, not later than the latest date (if any, and not earlier than the earliest
date (if any), prescribed for the giving of such notice. In any case where notice to Holders is
given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to
any particular Holder will affect the sufficiency of such notice with respect to other Holders.
Where this Indenture provides for notice in any manner, such notice may be waived in writing by the
Person entitled to receive such notice, either before or after the event, and such waiver will be
the equivalent of such notice. Waivers of notice by Holders will be filed with the Trustee, but
such filing will not be a condition precedent to the validity of any action taken in reliance upon
such waiver. In case by reason of the suspension of regular mail service or by reason of any other
cause it will be impracticable to give such notice by mail, then such notification as may be made
with the approval of the Trustee will constitute a sufficient notification for every purpose
hereunder.

     Section 14.04. Indenture and Securities to be Construed in Accordance with the Laws of the
State of New York.

          This Indenture and the Securities will be deemed to be a contract made under the laws of the
State of New York, and for all purposes will be construed in accordance with the laws of said State
without giving effect to principles of conflicts of laws of such State.

     Section 14.05. Compliance Certificates and Opinions.

          Upon any application or demand by the Company to the Trustee to take any action under any of
the provisions of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent provided for in this Indenture relating to the proposed
action have been complied with and an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent have been complied with, except that in the case of any such
application or demand as to which the furnishing of such document is specifically required by any
provision of this Indenture relating to such particular application or demand, no additional
certificate or opinion need be furnished.

          Each certificate or opinion provided for in this Indenture and delivered to the Trustee with
respect to compliance with a condition or covenant provided for in this Indenture shall include:
(1) a statement that the person making such certificate or opinion has read such covenant or
condition; (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based; (3) a
statement that, in the opinion of such person, he or she has made such examination or investigation
as is necessary to enable him or her to express an informed opinion as to whether or not such
covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such person, such
condition or covenant has been complied with.

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     Section 14.06. Form of Documents Delivered to Trustee.

          In any case where several matters are required to be certified by, or covered by an opinion
of, any specified Person, it is not necessary that all such matters be certified by, or covered by
the opinion of, only one such Person, or that they be so certified or covered by only one document,
but one such Person may certify or give an opinion with respect to some matters and one or more
other such Persons as to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents. Where any Person is required to make, give, or execute
two or more applications, requests, consents, certificates, statements, opinions, or other
instruments under this Indenture, they may, but need not, be consolidated and form one instrument.

     Section 14.07. Payments Due on Non-Business Days.

          In any case where any Interest Payment Date, Redemption Date, or Stated Maturity of any
Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of the Securities of any
series which specifically states that such provision will apply in lieu of this Section 14.07))
payment of interest or principal (and premium, if any) need not be made at such Place of Payment on
such date, but may be made on the next succeeding Business Day at such Place of Payment with the
same force and effect as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity, provided that no interest will accrue for the period from and after such Interest
Payment Date, Redemption Date, or Stated Maturity, as the case may be.

     Section 14.08. Provisions Required by Trust Indenture Act to Control.

          If any provision of this Indenture limits, qualifies, or conflicts with the duties imposed on
any Person by Sections 310 to and including 317 of the Trust Indenture Act (including provisions
automatically deemed included in this Indenture pursuant to the Trust Indenture Act unless this
Indenture provides that such provisions are excluded), which are deemed to be a part of and govern
this Indenture, whether or not contained herein, then such imposed duties will control.

     Section 14.09. Invalidity of Particular Provisions.

          In case any one or more of the provisions contained in this Indenture or in the Securities is
for any reason held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability will not affect any other provision of this Indenture or of the
Securities, but this Indenture and such Securities will be construed as if such invalid or illegal
or unenforceable provision had never been contained herein or therein.

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     Section 14.10. Indenture May be Executed In Counterparts.

          This instrument may be executed in any number of counterparts, each of which will be an
original, but such counterparts will together constitute but one and the same instrument.

     Section 14.11. Acts of Holders; Record Dates.

          (a) Any request, demand, authorization, direction, notice, consent, waiver, or other action
provided by this Indenture to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action will
become effective when such instrument or instruments are delivered to the Trustee and, where it is
hereby expressly required, to the Company. Such instrument or instruments (and the action embodied
therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders signing
such instrument or instruments. Proof of execution of any such instrument or of a writing
appointing any such agent will be sufficient for any purpose of this Indenture and conclusive in
favor of the Trustee and the Company, if made in the manner provided in this Section 14.11.

          (b) The fact and date of the execution by any Person of any such instrument or writing may be
proved by the affidavit of a witness of such execution or by a certificate of a notary public or
other officer authorized by law to take acknowledgments of deeds, certifying that the individual
signing such instrument or writing acknowledged to him the execution thereof. Where such execution
is by a signer acting in a capacity other than his individual capacity, such certificate or
affidavit will also constitute sufficient proof of his authority. The fact and date of the
execution of any such instrument or writing, or the authority of the Person executing the same, may
also be proved in any other manner which the Trustee deems sufficient.

          (c) The ownership of Securities will be proved by the Security Register.

          (d) Any request, demand, authorization, direction, notice, consent, waiver, or other Act of
the Holder of any Security will bind every future Holder of the same Security and the Holder of
every Security issued upon the registration of transfer thereof or in exchange thereof or in lieu
thereof in respect of anything done, omitted, or suffered to be done by the Trustee or the Company
in reliance thereon, whether or not notation of such action is made upon such Security.

          (e) The Company may, in the circumstances permitted by the Trust Indenture Act, set any day as
the record date for the purpose of determining the Holders of Outstanding Securities of any series
entitled to give or take any request, demand, authorization, direction, notice, consent, waiver, or
other action provided or permitted by this Indenture to be given or taken by Holders of Securities
of such series. With regard to any record date set pursuant to this paragraph, the Holders of
Outstanding Securities of the relevant series at the close of business

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on such record date (or their duly appointed
agents), and only such Persons, will be entitled to give or take the relevant action, whether or
not such Holders remain Holders after such record date. With regard to any action that may be
given or taken hereunder only by Holders of a requisite principal amount of Outstanding Securities
of any series (or their duly appointed agents) and for which a record date is set pursuant to this
paragraph, the Company may, at its option, set an expiration date after which no such action
purported to be given or taken by any Holder will be effective hereunder unless given or taken on
or prior to such expiration date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date (or their duly appointed agents). On or prior to any
expiration date set pursuant to this paragraph, the Company may, on one or more occasions at its
option, extend such date to any later date. Nothing in this paragraph will prevent any Holder (or
any duly appointed agent thereof) from giving or taking, after any such expiration date, any action
identical to, or, at any time, contrary to or different from, the action or purported action to
which such expiration date relates, in which event the Company may set a record date in respect
thereof pursuant to this paragraph. Nothing in this Section 14.11(e) will be construed to render
ineffective any action taken at any time by the Holders (or their duly appointed agents) of the
requisite principal amount of Outstanding Securities of the relevant series on the date such action
is so taken. Notwithstanding the foregoing or the Trust Indenture Act, the Company will not set a
record date for, and the provisions of this Section 14.1l(e) will not apply with respect to, any
notice, declaration, or direction referred to in the next paragraph.

          (f) Upon receipt by the Trustee from any Holder of Securities of a particular series of (a)
any notice of default or breach referred to in Section 8.01(a)(iv) or 8.01(a)(v) with respect to
Securities of such series, if such default or breach has occurred and is continuing and the Trustee
shall not have given such notice to the Company, (b) any declaration of acceleration referred to in
Section 8.01(b), if an Event of Default with respect to Securities of such series has occurred and
is continuing and the Trustee shall not have given such a declaration to the Company, or (c) any
direction referred to in Section 8.06 with respect to Securities of such series, if the Trustee
shall not have taken the action specified in such direction, then a record date will automatically
and without any action by the Company or the Trustee be set for determining the Holders of
Outstanding Securities of such series entitled to join in such notice, declaration, or direction,
which record date will be the close of business on the tenth calendar day following the day on
which the Trustee receives such notice, declaration, or direction. Promptly after such receipt by
the Trustee, and in any case not later than the fifth calendar day thereafter, the Trustee will
notify the Company and the Holders of Outstanding Securities of such series of any such record date
so fixed. The Holders of Outstanding Securities of such series on such record date (or their duly
appointed agents), and only such Persons, will be entitled to join in such notice, declaration, or
direction, whether or not such Holders remain Holders after such record date; provided
that, unless such notice, declaration, or direction shall have become effective by virtue of
Holders of the requisite principal amount of Outstanding Securities of such series on such record
date (or their duly appointed agents) having joined therein on or prior to the 90th calendar day
after such record date, such notice, declaration, or direction will automatically and without any
action by any Person be cancelled and of no further effect. Nothing
in this Section 14.11(f) will be construed to prevent a Holder (or a duly

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appointed agent thereof)
from giving, before or after the expiration of such 90-day period, a notice, declaration, or
direction contrary to or different from, or, after the expiration of such period, identical to, the
notice, declaration, or direction to which such record date relates, in which event a new record
date in respect thereof will be set pursuant to this Section 14.11(f). Nothing in this Section
14.11(f) will be construed to render ineffective any notice, declaration, or direction of the type
referred to in this Section 14.11(f) given at any time to the Trustee and the Company by Holders
(or their duly appointed agents) of the requisite principal amount of Outstanding Securities of the
relevant series on the date such notice, declaration, or direction is so given.

          (g) Without limiting the foregoing, a Holder entitled hereunder to give or take any action
hereunder with regard to any particular Security may do so with regard to all or any part of the
principal amount of such Security or by one or more duly appointed agents each of which may do so
pursuant to such appointment with regard to all or any different part of such principal amount.

     Section 14.12. Effect of Headings and Table of Contents.

          The Article and Section headings herein and the Table of Contents are for convenience only and
will not affect the construction hereof.

     Section 14.13. Benefits of Indenture.

          Nothing in this Indenture or in the Securities, express or implied, will give to any Person,
other than the parties hereto and their successors hereunder and the Holders any benefit or any
legal or equitable right, remedy, or claim under this Indenture.

     Section 14.14. Waiver of Jury Trial.

     EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

     Section 14.15. Force Majeure.

          In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

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          IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, all as
of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	RPM International Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   P. Kelly Tompkins

	 

	 	Name:
	 	P. Kelly Tompkins

	 	 
	 

	 	Title:
	 	Exec.
Vice President, C.A.O.

	 	 
	 
	 	 	 	 	 	 
	 	 	The Bank of New York Trust Company,
 N.A., as
Trustee	 	  
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/   Linda Garcia

	 

	 	Name:
	 	Linda Garcia

	 	 
	 

	 	Title:
	 	Vice
President

	 	 

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