Document:

EX-4.1.3

Exhibit
4.1.3

ATLAS AIR WORLDWIDE HOLDINGS, INC.,

as Issuer

and

[                        
                            ],

as Trustee

INDENTURE

Dated as of [•], 2009

 

 

CROSS-REFERENCE TABLE

	 	 	 	 	 
	Trust Indenture Act Section	 	Indenture Section
	310
	 	(a)(1)	 	6.9
	 
	 	(a)(2)	 	6.9
	 
	 	(a)(3)	 	N.A.
	 
	 	(a)(4)	 	N.A.
	 
	 	(b)	 	6.8
	 
	 	(c)	 	N.A.
	311
	 	(a)	 	6.13
	 
	 	(b)	 	6.13
	 
	 	(c)	 	N.A.
	312
	 	(a)	 	7.1
	 
	 	(b)	 	7.2
	 
	 	(c)	 	7.2
	313
	 	(a)	 	7.3
	 
	 	(b)	 	N.A.
	 
	 	(c)	 	7.3
	 
	 	(d)	 	7.3
	314
	 	(a)	 	7.4
	 
	 	(b)	 	N.A.
	 
	 	(c)(1)	 	1.2
	 
	 	(c)(2)	 	1.2
	 
	 	(c)(3)	 	N.A.
	 
	 	(d)	 	N.A.
	 
	 	(e)	 	1.2
	 
	 	(f)	 	N.A.
	315
	 	(a)	 	6.1, 6.3
	 
	 	(b)	 	6.2
	 
	 	(c)	 	6.1
	 
	 	(d)	 	6.1
	 
	 	(e)	 	5.14
	316
	 	(a)(1)(A)	 	5.12
	 
	 	(a)(1)(B)	 	5.13
	 
	 	(a)(2)	 	N.A.
	 
	 	(a)(last sentence)	 	1.1 (“Outstanding”)
	 
	 	(b)	 	5.7, 5.8
	 
	 	(c)	 	5.12, 10.7
	317
	 	(a)(1)	 	5.3
	 
	 	(a)(2)	 	5.4
	 
	 	(b)	 	4.2
	318
	 	(a)	 	1.7

N.A. means Not Applicable.

 

Note: This Cross-Reference Table shall not be deemed to be part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 	 	2	 
	Section 1.1.
	 	Definitions	 	 	2	 
	Section 1.2.
	 	Compliance Certificates and Opinions	 	 	7	 
	Section 1.3.
	 	Form of Documents Delivered to Trustee	 	 	8	 
	Section 1.4.
	 	Acts of Holders	 	 	8	 
	Section 1.5.
	 	Notices, Etc., to Trustee or Company	 	 	10	 
	Section 1.6.
	 	Notice to Holders; Waiver	 	 	10	 
	Section 1.7.
	 	Conflict with Trust Indenture Act	 	 	11	 
	Section 1.8.
	 	Effect of Headings and Table of Contents	 	 	11	 
	Section 1.9.
	 	Successors and Assigns	 	 	11	 
	Section 1.10.
	 	Separability Clause	 	 	11	 
	Section 1.11.
	 	Benefits of Indenture	 	 	11	 
	Section 1.12.
	 	Governing Law	 	 	11	 
	Section 1.13.
	 	Legal Holidays	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE II SECURITY FORMS	 	 	12	 
	Section 2.1.
	 	Forms Generally	 	 	12	 
	Section 2.2.
	 	Form of Trustee’s Certificate of Authentication	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE III THE SECURITIES	 	 	13	 
	Section 3.1.
	 	Amount Unlimited; Issuable in Series	 	 	13	 
	Section 3.2.
	 	Denominations	 	 	15	 
	Section 3.3.
	 	Execution, Authentication, Delivery and Dating	 	 	15	 
	Section 3.4.
	 	Temporary Securities	 	 	17	 
	Section 3.5.
	 	Registration; Registration of Transfer and Exchange	 	 	18	 
	Section 3.6.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	19	 
	Section 3.7.
	 	Payment of Interest; Interest Rights Preserved	 	 	20	 
	Section 3.8.
	 	Persons Deemed Owners	 	 	21	 
	Section 3.9.
	 	Cancellation	 	 	21	 
	Section 3.10.
	 	Computation of Interest	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE IV SATISFACTION AND DISCHARGE	 	 	22	 
	Section 4.1.
	 	Satisfaction and Discharge of Indenture	 	 	22	 
	Section 4.2.
	 	Application of Trust Money	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE V REMEDIES	 	 	23	 
	Section 5.1.
	 	Events of Default	 	 	23	 
	Section 5.2.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	25	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	 	 	 	 	 
	Section 5.3.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	27	 
	Section 5.4.
	 	Trustee May File Proofs of Claim	 	 	27	 
	Section 5.5.
	 	Trustee May Enforce Claims Without Possession of Securities	 	 	28	 
	Section 5.6.
	 	Application of Money Collected	 	 	28	 
	Section 5.7.
	 	Limitation on Suits	 	 	29	 
	Section 5.8.
	 	Unconditional Right of Holders to Receive Principal, Premium and Interest	 	 	29	 
	Section 5.9.
	 	Restoration of Rights and Remedies	 	 	30	 
	Section 5.10.
	 	Rights and Remedies Cumulative	 	 	30	 
	Section 5.11.
	 	Delay or Omission Not Waiver	 	 	30	 
	Section 5.12.
	 	Control by Holders	 	 	30	 
	Section 5.13.
	 	Waiver of Past Defaults	 	 	31	 
	Section 5.14.
	 	Undertaking for Costs	 	 	31	 
	Section 5.15.
	 	Waiver of Usury, Stay or Extension Laws	 	 	32	 
	 
	 	 	 	 	 	 
	ARTICLE VI THE TRUSTEE	 	 	32	 
	Section 6.1.
	 	Certain Duties and Responsibilities	 	 	32	 
	Section 6.2.
	 	Notice of Defaults	 	 	33	 
	Section 6.3.
	 	Certain Rights of Trustee	 	 	33	 
	Section 6.4.
	 	Not Responsible for Recitals or Issuance of Securities	 	 	35	 
	Section 6.5.
	 	May Hold Securities	 	 	35	 
	Section 6.6.
	 	Money Held in Trust	 	 	35	 
	Section 6.7.
	 	Compensation and Reimbursement	 	 	35	 
	Section 6.8.
	 	Disqualification; Conflicting Interests	 	 	36	 
	Section 6.9.
	 	Corporate Trustee Required; Eligibility	 	 	36	 
	Section 6.10.
	 	Resignation and Removal; Appointment of Successor	 	 	36	 
	Section 6.11.
	 	Acceptance of Appointment by Successor	 	 	38	 
	Section 6.12.
	 	Merger, Conversion, Consolidation or Succession to Business	 	 	39	 
	Section 6.13.
	 	Preferential Collection of Claims	 	 	39	 
	Section 6.14.
	 	Appointment of Authenticating Agent	 	 	39	 
	 
	 	 	 	 	 	 
	ARTICLE VII HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY	 	 	41	 
	Section 7.1.
	 	Company to Furnish Trustee Names and Addresses of Holders	 	 	41	 
	Section 7.2.
	 	Preservation of Information; Communications to Holders	 	 	41	 
	Section 7.3.
	 	Reports by Trustee	 	 	41	 
	Section 7.4.
	 	Reports by Company	 	 	42	 
	 
	 	 	 	 	 	 
	ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	 	 	43	 
	Section 8.1.
	 	Company May Consolidate, Etc., Only on Certain Terms	 	 	43	 
	Section 8.2.
	 	Successor Substituted	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE IX SUPPLEMENTAL INDENTURES	 	 	44	 
	Section 9.1.
	 	Supplemental Indentures Without Consent of Holders	 	 	44	 
	Section 9.2.
	 	Supplemental Indentures with Consent of Holders	 	 	45	 

ii 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	 	 	 	 	 
	Section 9.3.
	 	Execution of Supplemental Indentures	 	 	46	 
	Section 9.4.
	 	Effect of Supplemental Indentures	 	 	46	 
	Section 9.5.
	 	Conformity with Trust Indenture Act	 	 	46	 
	Section 9.6.
	 	Reference in Securities to Supplemental Indentures	 	 	46	 
	 
	 	 	 	 	 	 
	ARTICLE X COVENANTS	 	 	47	 
	Section 10.1.
	 	Payment of Principal, Premium and Interest	 	 	47	 
	Section 10.2.
	 	Maintenance of Office or Agency	 	 	47	 
	Section 10.3.
	 	Money for Securities Payments to Be Held in Trust	 	 	47	 
	Section 10.4.
	 	Corporate Existence	 	 	48	 
	Section 10.5.
	 	Maintenance of Properties	 	 	49	 
	Section 10.6.
	 	Statement by Officers as to Default	 	 	49	 
	Section 10.7.
	 	Waiver of Covenant	 	 	49	 
	 
	 	 	 	 	 	 
	ARTICLE XI REDEMPTION OF SECURITIES	 	 	50	 
	Section 11.1.
	 	Applicability of Article	 	 	50	 
	Section 11.2.
	 	Election to Redeem; Notice to Trustee	 	 	50	 
	Section 11.3.
	 	Selection by Trustee of Securities to Be Redeemed	 	 	50	 
	Section 11.4.
	 	Notice of Redemption	 	 	51	 
	Section 11.5.
	 	Deposit of Redemption Price	 	 	51	 
	Section 11.6.
	 	Securities Payable on Redemption Date	 	 	52	 
	Section 11.7.
	 	Securities Redeemed in Part	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE XII SINKING FUNDS	 	 	52	 
	Section 12.1.
	 	Applicability of Article	 	 	52	 
	Section 12.2.
	 	Satisfaction of Sinking Fund Payments with Securities	 	 	53	 
	Section 12.3.
	 	Redemption of Securities for Sinking Fund	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE XIII DEFEASANCE AND COVENANT DEFEASANCE	 	 	53	 
	Section 13.1.
	 	Applicability of Article; Company’s Option to Effect Defeasance or Covenant Defeasance	 	 	53	 
	Section 13.2.
	 	Defeasance and Discharge	 	 	54	 
	Section 13.3.
	 	Covenant Defeasance	 	 	54	 
	Section 13.4.
	 	Conditions to Defeasance or Covenant Defeasance	 	 	54	 
	Section 13.5.
	 	Deposited Money and U.S. Government Obligations to Be Held in Trust; Other Miscellaneous Provisions	 	 	56	 
	 
	 	 	 	 	 	 
	ARTICLE XIV SUBORDINATION OF SECURITIES	 	 	57	 
	Section 14.1.
	 	Securities Subordinate to Senior Indebtedness	 	 	57	 
	Section 14.2.
	 	Payment Over of Proceeds Upon Dissolution, Etc	 	 	57	 
	Section 14.3.
	 	No Payment When Senior Indebtedness in Default	 	 	58	 
	Section 14.4.
	 	Payment Permitted If No Default	 	 	59	 
	Section 14.5.
	 	Subrogation to Rights of Holders of Senior Indebtedness	 	 	59	 
	Section 14.6.
	 	Provisions Solely to Define Relative Rights	 	 	59	 

iii 

 

	 	 	 	 	 	 	 
	 	 	 	 	 	Page	 
	 	 	 	 	 
	Section 14.7.
	 	Trustee to Effectuate Subordination	 	 	60	 
	Section 14.8.
	 	No Waiver of Subordination Provisions	 	 	60	 
	Section 14.9.
	 	Notice to Trustee	 	 	60	 
	Section 14.10.
	 	Reliance on Judicial Order or Certificate of Liquidating Agent	 	 	61	 
	Section 14.11.
	 	Trustee Not Fiduciary for Holders of Senior Indebtedness	 	 	61	 
	Section 14.12.
	 	Rights of Trustee as Holder of Senior Indebtedness; Preservation of Trustee’s Rights	 	 	61	 
	Section 14.13.
	 	Article Applicable to Paying Agents	 	 	62	 

iv 

 

     INDENTURE, dated as of [•], 2009, between Atlas Air Worldwide Holdings, Inc., a Delaware
corporation (herein called the “Company”), having its principal executive offices at 2000
Westchester Avenue, Purchase, New York, and [          ] National Association, a national
banking association, as trustee (herein called the “Trustee”).

RECITALS OF THE COMPANY

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

     All things necessary to make this Indenture a valid agreement of the Company, in accordance
with its terms, have been done.

     NOW, THEREFORE, THIS INDENTURE WITNESSETH:

     For and in consideration of the premises and the purchase of the Securities by the Holders
thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities or of any series thereof, as follows:

ARTICLE I

DEFINITIONS AND OTHER PROVISIONS

OF GENERAL APPLICATION

Section 1.1. Definitions.

     For all purposes of this Indenture, except as otherwise expressly provided or unless the
context otherwise requires:

     (1) the terms defined in this Article have the meanings assigned to them in this
Article and include the plural as well as the singular;

     (2) all other terms used herein which are defined in the Trust Indenture Act, either
directly or by reference therein, have the meanings assigned to them therein;

     (3) all accounting terms not otherwise defined herein have the meanings assigned to
them in accordance with generally accepted accounting principles, and, except as otherwise
herein expressly provided, the term “generally accepted accounting principles” with respect
to any computation required or permitted hereunder shall mean such accounting principles as
are generally accepted at the date of such computation; and

     (4) 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.

 

 

     “Act”, when used with respect to any Holder, has the meaning specified in Section
1.4(a).

     “Affiliate” of any specified Person means any other Person directly or indirectly controlling
or controlled by, or under direct or indirect common control with, such specified Person. For the
purposes of this definition, “control” when used with respect to any specified 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 to the foregoing.

     “Authenticating Agent” means any Person authorized by the Trustee to act on behalf of the
Trustee to authenticate Securities.

     “Block-out Notice” has the meaning specified in Section 14.3.

     “Board of Directors” means the board of directors of the Company or any duly authorized
committee of such board.

     “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 of the Company and to
be in full force and effect on the date of such certification, and delivered to the Trustee.

     “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day
on which banking institutions in The City of New York or the city in which the Corporate Trust
Office is located are required or authorized to close.

     “Capital Lease Obligations” means with respect to any Person any obligation which is required
to be classified and accounted for as a capital lease on the face of a balance sheet of such Person
prepared in accordance with generally accepted accounting principles; the amount of such obligation
shall be the capitalized amount thereof, determined in accordance with generally accepted
accounting principles; and the Stated Maturity thereof shall be the date of the last payment of
rent or any other amount due under such lease prior to the first date upon which such lease may be
terminated by the lessee without payment of a penalty.

     “Capital Stock” for any corporation means any and all shares, interests, rights to purchase,
warrants, options, participations or other equivalents of or interests in (however designated)
stock issued by that corporation.

     “Commission” means the Securities and Exchange Commission, as from time to time constituted,
created under the Securities Exchange Act of 1934 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.

     “Company” means the Person named as the “Company” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Company” shall mean such successor Person.

2

 

     “Company Request” or “Company Order” means a written request or order signed in the name of
the Company by any two Officers.

     “Corporate Trust Office” means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered, which office, as at the date of this
Indenture, is located at
[                              ], Attention: Corporate Trust Administration.

     The term “corporation” includes corporations, associations, companies (including limited
liability companies) and business trusts.

     The terms “covenant defeasance” and “defeasance” bear the meanings assigned to such terms,
respectively, by Sections 13.3 and 13.2.

     The term “default”, when used in Section 6.2, has the meaning specified in Section 6.2.

     “Defaulted Interest” has the meaning specified in Section 3.7(b).

     “Depositary” means, with respect to the Securities of any series issuable or issued in whole
or in part in the form of one or more Global Securities, the Person designated as Depositary for
such series by the Company pursuant to Section 3.1(b)(15), which Person shall be a clearing agency
registered under the Securities Exchange Act of 1934, as amended; and if at any time there is more
than one such Person, “Depositary” as used with respect to the Securities of any series shall mean
the Depositary with respect to the Securities of such series.

     “Event of Default” has the meaning specified in Section 5.1.

     “Global Security” or “Global Securities” means a Security or Securities, as the case may be,
evidencing all or part of a series of Securities, issued to the Depositary for such series or its
nominee, and registered in the name of such Depositary or nominee.

     “Holder” means a Person in whose name a Security is registered in the Security Register.

     “Indebtedness” of any person means indebtedness for borrowed money and indebtedness under
purchase money mortgages or other purchase money liens or conditional sales or similar title
retention agreements, in each case where such indebtedness has been created, incurred, or assumed
by such person to the extent such indebtedness would appear as a liability upon a balance sheet of
such Person prepared in accordance with generally accepted accounting principles, guarantees by
such Person of such indebtedness, and indebtedness for borrowed money secured by any mortgage,
pledge or other lien or encumbrance upon property owned by such Person, even though such person has
not assumed or become liable for the payment of such indebtedness.

     “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of particular series of Securities
established as contemplated by Section 3.1.

3

 

     “interest”, when used with respect to an Original Issue Discount Security which by its terms
bears interest only after Maturity, means interest payable after Maturity.

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

     “Market Exchange Rate” has the meaning specified in Section 1.4(f).

     “Maturity”, when used with respect to any Security, means the date on which the principal of
such 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” has the meaning specified in Section 5.1.

     “Officer” means the Chairman of the Board of Directors, any Vice Chairman of the Board of
Directors, the Chief Executive Officer, the President, Chief Financial Officer, any Senior Vice
President, the Treasurer, the Secretary or the Controller of the Company.

     “Officers’ Certificate” means a certificate signed by any two Officers. An Officers’
Certificate provided pursuant to Section 10.6 shall be signed by the principal executive, financial
or accounting Officer of the Company.

     “Opinion of Counsel” means a written opinion of counsel, who may be counsel for the Company
(including an employee or officer of the Company or any of its Affiliates) and who shall be
reasonably acceptable to the Trustee.

     “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 5.2.

     “Outstanding”, when used with respect to Securities, means, as of the date of determination,
all Securities theretofore authenticated and delivered under this Indenture, except:

     (i) Securities theretofore canceled by the Trustee or delivered to the Trustee for
cancellation;

     (ii) Securities for whose payment or redemption money (or in the case of payment by
defeasance under Section 13.2, money, U.S. Government Obligations or both) 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 shall
act 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 and
provided further, in the case of payment by defeasance under Section 13.2,
that all conditions precedent to the application of such Section shall have been satisfied;
and

4

 

     (iii) Securities which have been paid pursuant to Section 3.6 or 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;

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 shall be deemed to be Outstanding shall 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 pursuant to Section 5.2 and (ii) Securities owned by the Company or any other
obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be
disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall
be protected in relying upon any such request, demand, authorization, direction, notice, consent or
waiver, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities
so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Trustee the pledgee’s independent 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.

     “Paying Agent” means any Person authorized by the Company to pay the principal of (and
premium, if any) or interest on any Securities on behalf of the Company.

     “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization or government or any agency or political
subdivision thereof.

     “Place of Payment”, when used with respect to the Securities of any series, means the place or
places where the principal of (and premium, if any) and interest on the Securities of that series
are payable as specified as contemplated by Section 3.1 or, if not so specified, the City of New
York, New York.

     “Predecessor Security” of any particular Security means every previous Security evidencing all
or a portion of the same debt as that evidenced by such particular Security; and, for the purposes
of this definition, any Security authenticated and delivered under Section 3.6 in exchange for or
in lieu of a mutilated, destroyed, lost or stolen Security shall be deemed to evidence the same
debt as the mutilated, destroyed, lost or stolen Security.

     “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”, when used with respect to any Security to be redeemed, means the price at
which it is to be redeemed pursuant to this Indenture.

     “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 3.1.

5

 

     “Responsible Officer”, when used with respect to the Trustee, means any officer in the
Corporate Trust Office of the Trustee with direct responsibility for the administration of this
Indenture and also means, with respect to a particular corporate trust matter, any other officer to
whom such matter is referred because of his knowledge of and familiarity with the particular
subject and who shall have direct responsibility for the administration of this Indenture.

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

     “Security Register” and “Security Registrar” have the respective meanings specified in Section
3.5(a).

     “Senior Indebtedness” means all of the Company’s obligations, whether presently existing or
from time to time hereafter incurred, created, assumed or existing, to pay principal, premium,
interest, penalties, fees and any other payment in respect of any of the following: (a) all
obligations of the Company for borrowed money, including without limitation, such obligations as
are evidenced by credit agreements, notes, debentures, bonds or other securities or instruments,
(b) all Capital Lease Obligations, Synthetic Lease Obligations and finance lease obligations of the
Company, (c) all obligations of the Company for reimbursement on any letter of credit, banker’s
acceptance, security purchase facility or similar credit facility, (d) all obligations of the
Company issued or assumed as the deferred purchase price of property or services, (e) all payment
obligations of the Company under interest rate swap or similar agreements or foreign currency
hedge, exchange or similar agreements at the time of determination, including any such obligations
of the Company incurred solely to act as a hedge against increases in interest rates that may occur
under the terms of other outstanding variable or floating rate indebtedness of the Company, (f) all
obligations of the types referred to in paragraphs (a) through (e) above of another Person which
the Company has assumed, endorsed, guaranteed, contingently agreed to purchase or provide funds for
the payment of, or otherwise become liable for, under any agreement, and (g) all amendments,
renewals, extensions, modifications, refinancings, replacements or refundings by the Company of any
such Senior Indebtedness referred to in paragraphs (a) through (f) above (and of any such amended,
renewed, extended, modified, refinanced, replaced or refunded Senior Indebtedness; provided,
however, that the following shall not constitute Senior Indebtedness: any obligation, amendment,
renewal, extension, modification, refinancing, replacement or refunding that by the terms of the
instrument creating or evidencing it or the assumption or guarantee of it provides that (i) it is
not superior in right of payment to the Securities or (ii) such obligation or indebtedness is
subordinated to Senior Indebtedness to substantially the same extent as the Securities are
subordinated to Senior Indebtedness.

     “Senior Lender” means any holder of Senior Indebtedness.

     “Senior Vice President” means any senior vice president, whether or not designated by a number
or a word or words added before or after the title “senior vice president”.

     “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 3.7(b).

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     “Stated Maturity”, when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.

     “Subsidiary” means (i) a corporation, a majority of whose Capital Stock with voting power,
under ordinary circumstances, to elect directors is, at the date of determination, directly or
indirectly owned by the Company, by one or more Subsidiaries of the Company or by the Company and
one or more Subsidiaries of the Company, (ii) a partnership in which the Company or a Subsidiary of
the Company holds a majority interest in the equity capital or profits of such partnership, or
(iii) any other Person (other than a corporation or partnership) in which the Company, a Subsidiary
of the Company or the Company and one or more Subsidiaries of the Company, directly or indirectly,
at the date of determination, has (x) at least a majority ownership interest or (y) the power to
elect or direct the election of a majority of the directors or other governing body of such person.

     “Synthetic Lease Obligation” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing arrangement whereby the arrangement
is considered borrowed money indebtedness for tax purposes but is classified as an operating lease
or does not otherwise appear on a balance sheet under generally accepted accounting principles.

     “Trust Indenture Act” means the Trust Indenture Act of 1939 as in force at the date as of
which this instrument was executed, except as provided in Section 9.5 and, to the extent required
by any amendment thereto, the Trust Indenture Act of 1939, as amended.

     “Trustee” means the Person named as the “Trustee” in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter “Trustee” shall 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 shall mean the Trustee with respect to Securities of that series.

     “U.S. Government Obligation” has the meaning set forth in Section 13.4(a).

Section 1.2. Compliance Certificates and Opinions.

     (a) Upon any application or request by the Company to the Trustee to take any action under any
provision of this Indenture, the Company shall furnish to the Trustee an Officers’ Certificate
stating that all conditions precedent, if any, 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, if any, have been complied with, except that in the
case of any such application or request as to which the furnishing of such documents is
specifically required by any provision of this Indenture relating to such particular application or
request, no additional certificate or opinion need be furnished.

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     (b) Every certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture (other than certificates provided pursuant to Section 10.6) shall
include:

     (1) a statement that each individual signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

     (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 each such individual, he has made such
examination or investigation as is necessary to enable him 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, in the opinion of each such individual, such condition
or covenant has been complied with.

Section 1.3. Form of Documents Delivered to Trustee.

     (a) 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 more documents.

     (b) Any certificate or opinion of any officer of the Company may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which his certificate or opinion is
based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it
relates to factual matters, upon a certificate or opinion of, or representations by, an officer or
officers of the Company stating that the information with respect to such factual matters is in the
possession of the Company, unless such counsel knows, or in the exercise of reasonable care should
know, that the certificate or opinion or representations with respect to such matters are
erroneous.

     (c) 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 1.4. Acts of Holders.

     (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

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person or by an agent duly appointed in writing; and, except as herein otherwise expressly
provided, such action shall 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 shall be sufficient for any purpose of
this Indenture and (subject to Section 6.1) conclusive in favor of the Trustee and the Company, if
made in the manner provided in this Section.

     (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 shall 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 shall be proved by the Security Register.

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder of any Security shall bind every future Holder of the same Security and the Holder of every
Security issued upon the registration of transfer thereof or in exchange therefor or in lieu
thereof in respect of anything done, omitted or suffered to be done by the Trustee, the Company in
reliance thereon, whether or not notation of such action is made upon such Security or such other
Security.

     (e) The Depositary selected pursuant to subsection (15) of Section 3.1, as a Holder, may
appoint agents and otherwise authorize participants to give or take any request, demand,
authorization, direction, notice, consent, waiver or other action which a Holder is entitled to
give or take hereunder.

     (f) Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an
Officers’ Certificate delivered pursuant to Section 3.1 of this Indenture with respect to a
particular series of Securities, whenever for purposes of this Indenture any action may be taken by
the Holders of a specified percentage in aggregate principal amount of Securities of all series or
all series affected by a particular action at the time outstanding and, at such time, there are
outstanding Securities of any series which are denominated in a coin or currency other than U.S.
Dollars, then the principal amount of Securities of such series which shall be deemed to be
outstanding for the purpose of taking such action shall be that amount of U.S. Dollars that could
be obtained for such amount at the Market Exchange Rate at such time. For purposes of this Section
1.04(f), “Market Exchange Rate” shall mean the noon U.S. Dollar buying rate in The City of New York
for cable transfers of that currency as published by the Federal Reserve Bank of New York. If such
Market Exchange Rate is not available for any reason with respect to such currency, the Trustee
shall use, in its sole discretion and without liability on its part, such quotation of the Federal
Reserve Bank of New York or quotations from one or more major banks

9

 

in The City of New York or in the country of issue of the currency in question or such other
quotations as the Trustee, upon consultation with the Company, shall deem appropriate. The
provisions of this paragraph shall apply in determining the equivalent principal amount in respect
of Securities of a series denominated in currency other than U.S. Dollars in connection with any
action taken by Holders of Securities pursuant to the terms of this Indenture. All decisions and
determinations of the Trustee regarding the Market Exchange Rate or any alternative determination
provided for in this paragraph shall be in its sole discretion and shall, in the absence of
manifest error, be conclusive to the extent permitted by law for all purposes and irrevocably
binding upon the Company and all Holders.

Section 1.5. Notices, Etc., to Trustee or Company.

     Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or
other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

     (1) the Trustee by any Holder or the Company shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing to or with the Trustee at its
Corporate Trust Office, or

     (2) the Company by the Trustee or by any Holder shall 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 the address of its office specified in
the first paragraph of this instrument or at any other address previously furnished in
writing to the Trustee by the Company.

Section 1.6. Notice to Holders; Waiver.

     (a) Where this Indenture provides for notice to Holders of any event, such notice shall 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, and not earlier than the earliest date,
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 shall 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 shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such
filing shall not be a condition precedent to the validity of any action taken in reliance upon such
waiver.

     (b) In case by reason of the suspension of regular mail service or by reason of any other
cause it shall be impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient notification for every purpose
hereunder.

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Section 1.7. Conflict with Trust Indenture Act.

     If any provision hereof limits, qualifies or conflicts with another provision hereof which is
required to be included in this Indenture by any of the provisions of the Trust Indenture Act, such
required provision shall control. If any provision hereof limits, qualifies or conflicts with the
duties imposed by Section 318(c) of the Trust Indenture Act such imposed duties shall control. If
any provision of the Indenture limits, qualifies or conflicts with a provision of the Trust
Indenture Act that is required under the Trust Indenture Act to be a part of and govern the
Indenture, such provision of the Trust Indenture Act shall control. If any provision of the
Indenture modifies or excludes any provision of the Trust Indenture Act that may be so modified or
excluded, the latter provision shall be deemed to apply to the Indenture as such provision of the
Trust Indenture Act is so modified or excluded, as the case may be.

Section 1.8. Effect of Headings and Table of Contents.

     The Article and Section headings herein and the Table of Contents are for convenience only and
shall not affect the construction hereof.

Section 1.9. Successors and Assigns.

     All covenants and agreements in this Indenture by the Company shall bind its successors and
assigns, whether so expressed or not.

Section 1.10. Separability Clause.

     In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in
any way be affected or impaired thereby.

Section 1.11. Benefits of Indenture.

     Nothing in this Indenture or in the Securities, express or implied, shall 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 1.12. Governing Law.

     This Indenture and the Securities shall be governed by and construed in accordance with the
laws of the State of New York.

Section 1.13. Legal Holidays.

     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) 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

11

 

the Interest Payment Date or Redemption Date, or at the Stated Maturity, provided that no interest
shall accrue on the amount then payable for the period from and after such Interest Payment Date,
Redemption Date or Stated Maturity, as the case may be.

ARTICLE II

SECURITY FORMS

Section 2.1. Forms Generally.

     (a) The Securities of each series shall be in substantially the form as shall be established
by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, 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 such Securities. 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 shall be certified by the Secretary or an Assistant Secretary of the Company,
and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by
Section 3.3 for the authentication and delivery of such Securities.

     (b) The definitive Securities shall be printed, lithographed or engraved on steel engraved
borders or may be produced in any other manner, all as determined by the Officers executing such
Securities, as evidenced by their execution of such Securities.

Section 2.2.Form of Trustee’s Certificate of Authentication.

     The Trustee’s certificates of authentication shall be in substantially the following form:

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

	 	 	 	 	 
	 	[                    ] National Association,

as Trustee

 	 
	 	By  	 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

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ARTICLE III

THE SECURITIES

Section 3.1. Amount Unlimited; Issuable in Series.

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

     (b) The Securities may be issued in one or more series. There shall be established in or
pursuant to a Board Resolution, and (subject to Section 3.3) set forth or determined as provided in
an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to
the issuance of Securities of any series,

     (1) the title of the Securities of the series (which shall distinguish the Securities
of the series from all other Securities);

     (2) 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 exchange for, or in lieu of, other
Securities of the series pursuant to Section 3.4, 3.5, 3.6, 9.6 or 11.7 and except for any
Securities which, pursuant to Section 3.3, are deemed never to have been authenticated and
delivered hereunder);

     (3) the Person to whom any interest on a Security of the series shall 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;

     (4) the date or dates on which the principal of the Securities of the series is payable
and/or the method by which such date or dates shall be determined;

     (5) the rate or rates (or method for establishing the rate or rates) at which the
Securities of the series shall bear interest, if any, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which such interest shall be payable
and the Regular Record Date for the interest payable on any Interest Payment Date (or method
for establishing such date or dates);

     (6) the place or places where the principal of (and premium, if any) and interest on
Securities of the series shall be payable;

     (7) 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;

     (8) any provisions relating to convertibility or exchangeability of the Securities for
other Securities or any equity securities of the Company;

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     (9) 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 shall be redeemed or purchased, in whole
or in part, pursuant to such obligation;

     (10) if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which Securities of the series shall be issuable;

     (11) if other than the full principal amount thereof, the portion of the principal
amount of Securities of the series which shall be payable upon declaration of acceleration
of the Maturity thereof pursuant to Section 5.2 or the method by which such portion shall be
determined;

     (12) if other than such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public or private debts, the currency or
currencies (including composite currencies) in which payment of the principal of (and
premium, if any) and/or interest on the Securities of the series shall be payable;

     (13) if the principal of (and premium, if any) and/or interest on the Securities of the
series are to be payable, at the election of the Company or any Holder, in a currency or
currencies (including composite currencies) other than that in which the Securities are
stated to be payable, the period or periods within which, and the terms and conditions, upon
which, such election may be made;

     (14) if the amounts of payments of principal of (and premium, if any) and/or interest
on the Securities of the series may be determined with reference to an index, the manner in
which such amounts shall be determined;

     (15) in the case of Securities of a series the terms of which are not established
pursuant to subsection (11), (12) or (13) above, whether either or both of Section 13.2 or
Section 13.3 shall be applicable to the Securities of such series; or, in the case of
Securities the terms of which are established pursuant to subsection (11), (12) or (13)
above, the adoption and applicability, if any, to such Securities of any terms and
conditions similar to those contained in Section 13.2 and/or Section 13.3;

     (16) whether the Securities of the series shall be issued in whole or in part in the
form of one or more Global Securities and, in such case, the Depositary for such Global
Security or Securities;

     (17) any additional or different events of default that apply to Securities of the
series, and any change in the right of the Trustee or the Holders of such Securities to
declare the principal thereof due and payable;

     (18) any additional or different covenants that apply to Securities of the series;

     (19) the form of the Securities of the series; and

14

 

     (20) any other terms of the series (which terms shall not contradict the provisions of
this Indenture).

     (c) All Securities of any one series shall be substantially identical except as to interest
rates, method for determining interest rates, Interest Payment Dates, Regular Record Dates,
redemption terms, Stated Maturity, denomination, date of authentication, currency, any index for
determining amounts payable, and except as may otherwise be provided in or pursuant to such Board
Resolution and set forth or determined as provided in such Officers’ Certificate 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 shall be certified by the Secretary or
an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series. With respect to Securities of a
series constituting a medium term note program, such Board Resolution may provide general terms or
parameters for Securities of such series and may provide that the specific terms of particular
Securities of such series, and the Persons authorized to determine such terms or parameters, may be
determined in accordance with or pursuant to the Company Order referred to in Section 3.3.

Section 3.2. Denominations.

     The Securities of each series shall be issuable in registered form without coupons in such
denominations as shall be specified as contemplated by Section 3.1. In the absence of any such
provisions with respect to the Securities of any series, the Securities of such series shall be
issuable in denominations of $1,000 and any integral multiple thereof.

Section 3.3. Execution, Authentication, Delivery and Dating.

     (a) The Securities shall be executed on behalf of the Company by any Officer and attested by
its Secretary or one of its Assistant Secretaries. The signature of any of these Officers on the
Securities may be manual or facsimile.

     (b) Securities bearing the manual or facsimile signatures of individuals who were at any time
the proper Officers of the Company shall bind the Company, notwithstanding that such individuals or
any of them have ceased to hold such offices prior to the authentication and delivery of such
Securities or did not hold such offices at the date of such Securities.

     (c) 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 such Company Order shall authenticate and deliver
such Securities; provided, that, with respect to Securities of a series constituting a medium term
note program, the Trustee shall authenticate and deliver Securities of such series for original
issue from time to time in the aggregate principal amount established for such series pursuant to
such procedures acceptable to the Trustee and to such recipients as may be specified from time to
time by a Company Order. The maturity dates, original issue dates, interest rates

15

 

and any other
terms of the Securities of such series shall be determined by or pursuant to such
Company Order and procedures. If provided for in such procedures, such Company Order may
authorize authentication and delivery pursuant to oral instructions from the Company or its duly
authorized agent, which instructions shall be promptly confirmed in writing.

     (d) 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 2.1 and 3.1, in authenticating such
Securities, and accepting the additional responsibilities under this Indenture in relation to such
Securities, the Trustee shall be entitled to receive, and (subject to Section 6.1) shall be fully
protected in relying upon, an Opinion of Counsel stating,

     (1) if the form of any of such Securities has been established by or pursuant to Board
Resolution as permitted by Section 2.1, that such form has been established in conformity
with the provisions of this Indenture;

     (2) if the terms of any of such Securities have been established by or pursuant to
Board Resolution as permitted by Section 3.1, that such terms have been established in
conformity with the provisions of this Indenture; and

     (3) 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 legally binding obligations of the Company, enforceable
in accordance with their terms, subject to bankruptcy, insolvency, reorganization and other
laws of general applicability relating to or affecting the enforcement of creditors’ rights
and to general equity principles.

     (e) Notwithstanding that such form or terms have been so established, the Trustee shall not be
required to authenticate such Securities if the issue of such Securities pursuant to this Indenture
would adversely affect the Trustee’s own rights, duties or immunities under the Securities and this
Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

     (f) Notwithstanding the provisions of Section 3.1 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it shall not be necessary to
deliver the Officers’ Certificate otherwise required pursuant to Section 3.1 or the Company Order
and Opinion of Counsel otherwise required pursuant to the preceding paragraph at or prior to the
time of authentication of each Security of such series if such documents have been delivered at or
prior to the time of authentication upon original issuance of the first Security of such series to
be issued.

     (g) With respect to Securities of a series constituting a medium term note program, if the
form and general terms of the Securities of such series have been established by or pursuant to one
or more Board Resolutions or by an indenture supplemental hereto, as permitted by Sections 2.1 and
3.1 in authenticating such Securities, and accepting the additional responsibilities under this
Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to
Section 6.1) shall be fully protected in relying upon, in addition to the

16

 

foregoing documents and
Opinion of Counsel, or in lieu of clause (c) above, an Opinion of Counsel stating that the
Securities have been duly authorized by the Company and, when duly
executed by the Company and completed and authenticated by the Trustee in accordance with the
Indenture and issued, delivered and paid for in accordance with any applicable distribution
agreement, will have been duly issued under the Indenture and will constitute valid and binding
obligations of the Company, enforceable in accordance with their terms, subject to bankruptcy,
insolvency, reorganization and other laws of general applicability relating to or affecting the
enforcement of creditors’ rights and to general equity principles.

     (h) Each Security shall be dated the date of its authentication.

     (i) No Security shall be entitled to any benefit under this Indenture or be valid or
obligatory for any purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual signature, and such
certificate upon any Security shall be conclusive evidence, and the only evidence, that such
Security has been duly authenticated and delivered hereunder and is entitled to the benefits of
this Indenture. 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 3.9 together with a written
statement (which need not comply with Section 1.2 and need not be accompanied by an Opinion of
Counsel) stating that such Security has never been issued and sold by the Company, for all purposes
of this Indenture such Security shall be deemed never to have been authenticated and delivered
hereunder and shall never be entitled to the benefits of this Indenture.

Section 3.4. Temporary Securities.

     (a) Pending the preparation of definitive Securities of any series, the Company may execute,
and upon Company Order from the Company, the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially of the tenor of the definitive Securities in lieu of which
they are issued, with such appropriate insertions, omissions, substitutions and other variations as
the Officers executing such Securities may determine, as evidenced by their execution of such
Securities.

     (b) If temporary Securities of any series are issued, the Company will cause definitive
Securities of that series to be prepared without unreasonable delay. After the preparation of
definitive Securities of such series, the temporary Securities of such series shall be exchangeable
for definitive Securities of such series upon surrender of the temporary Securities of such series
at the office or agency of the Company in a Place of Payment for that series, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Securities of any series the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like
principal amount of definitive Securities of the same series and of like tenor, of authorized
denominations. Until so exchanged the temporary Securities of any series shall in all respects be
entitled to the same benefits under this Indenture as definitive Securities of such series.

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Section 3.5. Registration; Registration of Transfer and Exchange.

     (a) The Company shall cause to be kept at the Corporate Trust Office of the Trustee 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 “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall 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 an office or
agency of the Company in a Place of Payment designated by the Company pursuant to Section 10.2 for
that series, the Company shall execute, and the Trustee shall 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 shall execute, and the Trustee
shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to
receive.

     (d) All Securities issued upon any registration of transfer or exchange of Securities shall be
the 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.

     (e) Every Security presented or surrendered for registration of transfer or for exchange shall
(if so required by the Company or the Trustee) be duly endorsed, or be accompanied by a written
instrument of transfer, in form satisfactory to the Company and the Security Registrar, duly
executed by the Holder thereof or his attorney duly authorized in writing.

     (f) No service charge shall be made for any registration of transfer or for exchange of
Securities, but the Company or the Trustee may require payment of a sum sufficient to cover any tax
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 3.4, 9.6 or 11.7 not involving any
transfer.

     (g) The Company shall 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 days before the
day of the mailing of a notice of redemption of Securities of that series selected for redemption
under Section 11.3 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 the unredeemed portion of any Security being redeemed in part.

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     (h) Notwithstanding the foregoing, any Global Security shall be exchangeable pursuant to this
Section 3.5 for Securities registered in the names of Persons other than the Depositary for such
Security or its nominee only if (i) such Depositary notifies the Company that it is unwilling or
unable to continue as Depositary for such Global Security or if any time such Depositary ceases to
be a clearing agency registered under the Securities Exchange Act of 1934, as amended, (ii) the
Company executes and delivers to the Trustee a Company Order that such Global Security shall be so
exchangeable or (iii) there shall have occurred and be continuing an Event of Default of which the
Trustee has been notified with respect to the Securities. Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as
the Depositary shall direct in writing in an aggregate principal amount equal to the principal
amount of the Global Security with like tenor and terms.

     (i) Notwithstanding any other provision in this Indenture, a Global Security may not be
transferred except as a whole by the Depositary with respect to such Global Security to a nominee
of such Depositary or by a nominee of such Depositary to such Depositary or another nominee of such
Depositary.

Section 3.6. Mutilated, Destroyed, Lost and Stolen Securities.

     (a) If any mutilated Security is surrendered to the Trustee, the Company shall execute and the
Trustee shall 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 any 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 shall execute and upon its request the Trustee shall 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, the Company or the Trustee may
require the payment of a sum sufficient to cover any tax or other governmental charge that may be
imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee
and its counsel) connected therewith.

     (e) Every new Security of any series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time

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enforceable by
anyone, and shall 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 are exclusive and shall 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 3.7. Payment of Interest; Interest Rights Preserved.

     (a) Unless otherwise provided as contemplated by Section 3.1 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 shall 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, on any Interest Payment Date (herein called “Defaulted Interest”) shall
forthwith cease to be payable to the Holder entitled to such interest 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 (1) or (2) below:

     (1) 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 (as defined below) for the
payment of such Defaulted Interest, which shall be fixed in the following manner. The
Company shall 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 shall deposit with the Trustee an amount of money equal to the
aggregate amount proposed to be paid in respect of such Defaulted Interest or shall 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 provided. Thereupon the Trustee shall
fix a special record date (the “Special Record Date”) for the payment of such Defaulted
Interest which shall be not more than 15 days and not less than 10 days prior to the date of
the proposed payment and not less than 10 days after the receipt by the Trustee of the
notice of the proposed payment. The Trustee shall promptly notify the Company of such
Special Record Date and, in the name and at the expense of the Company, shall 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 days prior to such Special
Record Date. Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so mailed, such Defaulted Interest shall 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 shall no
longer be payable pursuant to the following clause (2).

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     (2) 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, such manner of payment shall be
deemed practicable by the Trustee.

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

Section 3.8. 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
premium, if any) and (subject to Section 3.7) interest on such Security and for all other purposes
whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee nor any
agent of the Company or the Trustee shall be affected by notice to the contrary.

Section 3.9. Cancellation.

     All Securities surrendered for payment, redemption, registration of transfer or exchange or
for credit against any sinking fund payment shall, if surrendered to any Person other than the
Trustee, be delivered to the Trustee and shall be promptly canceled by it. 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 shall be promptly canceled by the Trustee. No Securities shall be authenticated in lieu
of or in exchange for any Securities canceled as provided in this Section, except as expressly
permitted by this Indenture. All canceled Securities held by the Trustee shall be disposed of as
directed by a Company Order from the Company.

Section 3.10. Computation of Interest.

     Except as otherwise specified as contemplated by Section 3.1 for Securities of any series,
interest on the Securities of each series shall be computed on the basis of a 360-day year of
twelve 30-day months.

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ARTICLE IV

SATISFACTION AND DISCHARGE

Section 4.1. Satisfaction and Discharge of Indenture.

     (a) This Indenture shall upon Company Request from the Company cease to be of further effect
with respect to Securities of any series (except as to any surviving rights of registration of
transfer or exchange of Securities of such series and replacement of lost, stolen or
mutilated Securities of such series herein expressly provided for), and the Trustee, on the
demand of and at the expense of the Company, shall execute instruments acknowledging satisfaction
and discharge of this Indenture with respect to such series, when

     (1) either

     (A) all Securities of such series theretofore authenticated and delivered
(other than (i) Securities of such series which have been destroyed, lost or stolen
and which have been replaced or paid as provided in Section 3.6 and (ii) Securities
of such series for whose payment 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 10.3) have been delivered to the
Trustee for cancellation; or

     (B) all such Securities of such series not theretofore delivered to the Trustee
for cancellation

     (i) have become due and payable, or

     (ii) will become due and payable at their Stated Maturity within one
year, or

     (iii) are to be called for redemption within one year under
arrangements satisfactory to the Trustee for the giving of notice of
redemption,

     and the Company, in the case of (i), (ii) or (iii) above, has deposited or
caused to be deposited with the Trustee as trust funds in trust for the purpose an
amount sufficient to pay and discharge the entire indebtedness on such Securities of
such series not theretofore delivered to the Trustee for cancellation, for principal
(and premium, if any) and interest to the date of such deposit (in the case of
Securities of such series which have become due and payable) or to the Stated
Maturity or Redemption Date, as the case may be; and

     (2) the Company has paid or caused to be paid all other sums payable hereunder by the
Company; and

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     (3) 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 complied with.

     (b) At any time when no Securities of any series are outstanding, this Indenture shall upon
Company Request cease to be of further effect and the Trustee, at the expense of the Company, shall
execute instruments of satisfaction and discharge of this Indenture.

     (c) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 6.7 and, if money shall have been deposited with
the Trustee pursuant to subclause (B) of clause (1) of this Section, the obligations of the
Trustee under Section 4.2 and the last paragraph of Section 10.3 shall survive.

Section 4.2. Application of Trust Money.

     Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the
Trustee pursuant to Section 4.1, all money and U.S. Government Obligations deposited with the
Trustee pursuant to Section 13.2 or Section 13.3 and all money received by the Trustee in respect
of U.S. Government Obligations deposited with the Trustee pursuant to Section 13.2 or Section 13.3,
shall 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 Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal (and premium, if any) and interest for whose payment such money has been deposited with
or received by the Trustee as contemplated by Section 4.1, Section 13.2 or Section 13.3.

ARTICLE V

REMEDIES

Section 5.1. Events of Default.

     “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 shall 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):

     (1) default in the payment of any interest upon any Security of that series when it
becomes due and payable, and continuance of such default for a period of 30 days; or

     (2) default in the payment of the principal of (or premium, if any, on) any Security of
that series at its Maturity; or

     (3) default in the deposit of any sinking fund payment, when and as due by the terms of
a Security of that series; or

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     (4) 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 whose performance or whose
breach is elsewhere in this Section specifically dealt with or which has expressly been
included in this Indenture solely for the benefit of a series of Securities other than the
series in respect of which the Event of Default is being determined), and continuance of
such default or breach for a period of 60 days after there has been given, by registered or
certified mail, to the Company by the Trustee or to the Company and the Trustee by the
Holders of at least 25% in principal amount of the Outstanding Securities of that series a
written notice specifying such default or breach
and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or

     (5) a default under any bond, debenture, note or other evidence of or agreement for
Indebtedness by the Company (including a default with respect to Securities of any series
other than that series) or under any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company (including this Indenture), whether such Indebtedness now exists or shall
hereafter be created, which default shall have resulted in such Indebtedness in an aggregate
principal amount of $25,000,000 or more becoming or being declared due and payable prior to
the date on which it would otherwise have become due and payable, without such acceleration
having been rescinded or annulled, within a period of 10 days after there shall have been
given, by registered or certified mail, to the Company by the Trustee or to the Company and
the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities
of that series a written notice specifying such default and requiring the Company to cause
such acceleration to be rescinded or annulled and stating that such notice is a “Notice of
Default” hereunder; provided, however, that, subject to the provisions of
Sections 6.1 and 6.2, the Trustee shall not be deemed to have knowledge of such default
unless either (A) a Responsible Officer of the Trustee shall have actual knowledge of such
default or (B) a Responsible Officer of the Trustee shall have received written notice
thereof from the Company, from any Holder, from the holder of any such Indebtedness or from
the trustee under any such mortgage, indenture or other instrument; or

     (6) 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 a 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 days;
or

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     (7) 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 under any applicable Federal or State 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 similar official of the
Company or of any substantial part of its property, or the making by the
Company of an assignment for the benefit of creditors, or the admission by the Company
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

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

     Subject to the provisions of Section 6.1 hereof, the Trustee shall not be deemed to have
knowledge of an Event of Default hereunder (except for those described in paragraphs (1) through
(3) above) unless a Responsible Officer of the Trustee shall have actual knowledge thereof or shall
have received written notice thereof.

Section 5.2. Acceleration of Maturity; Rescission and Annulment.

     (a) If an Event of Default with respect to Securities of any series at the time Outstanding
(other than an Event of Default specified in clause (6) or (7) of Section 5.1) occurs and is
continuing, then and in every such 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) shall become immediately due and payable. If an Event of Default specified in
clause (6) or (7) of Section 5.1 occurs, 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 Outstanding Securities of that
series shall be immediately due and payable without any declaration or other act on the part of the
Trustee or any Holder of any Security of that series.

     (b) 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 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:

25

 

     (1) 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
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 principal (and premium, if any) and 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, its agents and
counsel;

     and

     (2) all Events of Default with respect to Securities of that series, other than the
non-payment 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 5.13.

     (c) No such rescission shall affect any subsequent default or impair any right consequent
thereon.

     (d) Upon receipt by the Trustee of any declaration of acceleration, or rescission and
annulment thereof, with respect to Securities of a series all or part of which is represented by a
Global Security, the Trustee shall establish a record date for determining Holders of Outstanding
Securities of such series entitled to join in such declaration of acceleration, or rescission and
annulment, as the case may be, which record date shall be at the close of business on the day the
Trustee receives such declaration of acceleration, or rescission and annulment, as the case may be.
The Holders on such record date, or their duly designated proxies, and only such persons, shall be
entitled to join in such declaration of acceleration, or rescission and annulment, as the case may
be, whether or not such Holders remain Holders after such record date; provided, that unless such
declaration of acceleration, or rescission and annulment, as the case may be, shall have become
effective by virtue of the requisite percentage having been obtained prior to the day which is 90
days after such record date, such declaration of acceleration, or rescission and annulment, as the
case may be, shall automatically and without further action by any Holder be canceled and of no
further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from
giving, after expiration of such 90-day period, a new declaration of acceleration, or rescission or
annulment thereof, as the case may be, that is identical to a declaration of acceleration, or
rescission or annulment thereof, which has been canceled pursuant to the provision to the preceding
sentence, in which event a new record date shall be established pursuant to the provision of this
Section 5.2.

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Section 5.3. Collection of Indebtedness and Suits for Enforcement by Trustee.

     (a) The Company covenants that if:

     (1) 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 days; or

     (2) default is made in the payment of the principal of (or premium, if any, on) any
Security at the Maturity thereof; or

     (3) default is made in the deposit of any sinking fund payment, when and as due by the
terms of a Security;

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 premium, if
any) and interest and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal (and premium, if any) and on any overdue interest, at the rate or
rates prescribed therefor in such Securities, and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

     (b) If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its
own name and as trustee of an express trust, may institute a judicial proceeding for the collection
of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree, and may
enforce the same against the Company or any other obligor upon such Securities and collect the
moneys adjudged or decreed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon such Securities, wherever situated.

     (c) 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.

Section 5.4. Trustee May File Proofs of Claim.

     (a) In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the
Company or any other obligor upon the Securities or the property of the Company or of such other
obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities
shall then be due and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Company for the payment of overdue
principal (and premium, if any) or interest) shall be entitled and empowered, by intervention in
such proceeding or otherwise,

27

 

     (i) to file and prove a claim for the whole amount of principal (and
premium, if any) and interest owing and unpaid in respect of the Securities
and to file such 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 of the Holders allowed in such judicial
proceeding, and

     (ii) to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute the same.

     (b) 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 shall consent 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, its agents and counsel, and any other amounts
due the Trustee under Section 6.7.

     (c) Nothing herein contained shall be deemed to authorize the Trustee to authorize, consent
to, 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.

     (d) The Trustee shall be entitled to participate as a member of any official committee of
creditors in the matters it deems advisable.

Section 5.5. Trustee May Enforce Claims Without Possession of Securities.

     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 shall be
brought in its own name as trustee of an express trust, and any recovery of judgment shall, after
provision for the payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, 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 5.6. Application of Money Collected.

     Any money collected by the Trustee pursuant to this Article shall 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 premium, if any) 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 6.7;

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     SECOND: To the payment of the amounts then due and unpaid for principal of
(and premium, if any) 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 premium, if any) and interest, respectively; and

     THIRD: To the Company.

Section 5.7. Limitation on Suits.

     No Holder of any Security of any series shall 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:

     (1) such Holder has previously given written notice to the Trustee of a continuing
Event of Default with respect to the Securities of that series;

     (2) 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;

     (3) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in
compliance with such request;

     (4) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute any such proceeding; and

     (5) 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 shall have any right in any
manner whatever by virtue 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 5.8. Unconditional Right of Holders to Receive Principal, Premium and Interest.

     Notwithstanding any other provision in this Indenture, the Holder of any Security shall have
the right, which is absolute and unconditional, to receive payment of the principal of (and
premium, if any) and (subject to Section 3.7) interest on such Security on the Stated Maturity or
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 shall not be impaired
without the consent of such Holder.

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Section 5.9. 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 case, subject to
any determination in such proceeding, the Company, the Trustee and the Holders shall be restored
severally and respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such proceeding had been
instituted.

Section 5.10. Rights and Remedies Cumulative.

     Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Securities in the last paragraph of Section 3.6, 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 shall, 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, shall not prevent the concurrent assertion or employment of any other
appropriate right or remedy.

Section 5.11. Delay or Omission Not Waiver.

     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 shall 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 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.

Section 5.12. Control by Holders.

     (a) The Holders of a majority in principal amount of the Outstanding Securities of any series
shall 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,

     (1) such direction shall not be in conflict with any rule of law or with this
Indenture, nor subject the Trustee to a risk of personal liability in respect of which the
Trustee has not received indemnification satisfactory to it in its sole discretion
against all losses and expenses caused by taking or not taking such action, and

     (2) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction.

     (b) Upon receipt by the Trustee of any such direction with respect to Securities of a series
all or part of which is represented by a Global Security, the Trustee shall establish a record

30

 

date
for determining Holders of outstanding Securities of such series entitled to join in such
direction, which record date shall be at the close of business on the day the Trustee receives such
direction. The Holders on such record date, or their duly designated proxies, and only such
persons, shall be entitled to join in such direction, whether or not such Holders remain Holders
after such record date; provided, that unless such majority in principal amount shall have been
obtained prior to the day which is 90 days after such record date, such direction shall
automatically and without further action by any Holder be canceled and of no further effect.
Nothing in this paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after
expiration of such 90-day period, a new direction identical to a direction which has been canceled
pursuant to the provisions to the preceding sentence, in which event a new record date shall be
established pursuant to the provisions of this Section 5.12.

Section 5.13. Waiver of Past Defaults.

     (a) The Holders of not less than 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:

     (1) in the payment of the principal of (or premium, if any) or interest on any Security
of such series, or

     (2) in respect of a covenant or provision hereof which under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Security of such
series affected.

     (b) Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other default or impair any right consequent thereon.

Section 5.14. Undertaking for Costs.

     Each party to this Indenture agrees, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, 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, the filing by any party litigant in such suit
of an undertaking to pay the costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit,
having due regard to the merits and good faith of the claims or defenses made by such party
litigant; but the provisions of this Section shall not apply to any suit instituted by the Company,
to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of
Holders, holding in the aggregate more than 10% in principal amount of the Outstanding Securities
of any series, or to any suit instituted by any Holder for the enforcement of the payment of the
principal of (or premium, if any) or interest on any Security on or after the Stated Maturity or
Maturities expressed in such Security (or, in the case of redemption, on or after the Redemption
Date).

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Section 5.15. Waiver of Usury, Stay or Extension Laws.

     The Company covenants (to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any
usury, stay or extension law wherever enacted, now or at any time hereafter in force, which may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants
that it will not hinder, delay or impede the execution of any power herein granted to the Trustee,
but will suffer and permit the execution of every such power as though no such law had been
enacted.

ARTICLE VI

THE TRUSTEE

Section 6.1. 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.

     (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 man would exercise or use under the circumstances in the
conduct of his 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 willful 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 judgment made in good faith by a
Responsible Officer, unless it shall be proved that the Trustee was negligent in
ascertaining the pertinent facts;

32

 

     (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, determined as provided in
Section 5.12, of the Holders of a majority in principal amount of the Outstanding Securities
of any series, 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, if it shall have reasonable
grounds for believing that repayment of such funds or adequate indemnity against such risk
or liability is not reasonably assured to it.

     (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 6.2. Notice of Defaults.

     Within 90 days after the occurrence of any default hereunder with respect to the Securities of
any series, the Trustee shall transmit by mail to all Holders of Securities of such series, as
their names and addresses appear in the Security Register, notice of such default hereunder known
to the Trustee, unless such default shall have been cured or waived; provided,
however, that, except in the case of a default in the payment of the principal of (or
premium, if any) or interest on any Security of such series or in the payment of any sinking fund
installment with respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee or a
trust committee of directors or Responsible Officers of the Trustee in good faith determine that
the withholding of such notice is in the interest of the Holders of Securities of such series. For
the purpose of this Section, the term “default” means any event which is, or after notice or lapse
of time or both would become, an Event of Default with respect to Securities of such series.

Section 6.3. Certain Rights of Trustee.

     Subject to the provisions of Section 6.1:

     (a) the Trustee may rely and shall be fully protected in acting or refraining from acting upon
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;

     (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced
by a Company Request or Company Order, or as otherwise expressly provided herein, and any
resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

33

 

     (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, rely upon an Officers’ Certificate;

     (d) the Trustee may consult with counsel and the written advice of such counsel or any Opinion
of Counsel shall 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 shall 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
(including, without limitation, instituting, conducting or defending any litigation), unless such
Holders shall have offered to the Trustee reasonable security or indemnity reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in compliance with
such request or direction;

     (f) the Trustee shall 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 shall be entitled to examine the books, records and premises of the Company,
personally or by agent or attorney;

     (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or attorney appointed with
due care by it hereunder;

     (h) except for an Event of Default described in paragraphs (1) through (3) of Section 5.1, the
Trustee shall not be deemed to have notice of any Event of Default unless a Responsible Officer of
the Trustee shall have actual knowledge thereof or unless written notice of any Event of Default is
received by a Responsible Officer of the Trustee at the Corporate Trust Office of the Trustee, and
such notice references the Securities and this Indenture;

     (i) 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 (including Security Registrar and
Paying Agent), and each agent, custodian and other Person employed to act hereunder;

     (j) the Trustee is not required to give any bond or surety with respect to the performance of
its duties or the exercise of its powers under this Indenture;

     (k) the Trustee shall have no responsibility for any information in any offering document or
other disclosure material distributed with respect to any series of Securities, and the Trustee
shall have no responsibility for compliance with any state or federal securities laws in

34

 

connection
with the Securities, other than the filing of any documents required to be filed by an indenture
trustee pursuant to the Trust Indenture Act or otherwise required in the Indenture; and

     (l) the permissive rights of the Trustee to do things enumerated in this Indenture shall not
be construed as duties.

Section 6.4. Not Responsible for Recitals or Issuance of Securities.

     The recitals contained herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Company, and the Trustee or any
Authenticating Agent assumes no 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 shall not be accountable for the use or application by the
Company of Securities or the proceeds thereof. The Trustee shall have no responsibility for filing
any financing or continuation statement in any public office at any time or otherwise perfect or
maintain the perfection of any security interest or lien granted to it hereunder or to record this
Indenture.

Section 6.5. May Hold Securities.

     The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other
agent of the Company or of the Trustee, in its individual or any other capacity, may become the
owner or pledgee of Securities and, subject to Sections 6.8 and 6.13, 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 6.6. Money Held in Trust.

     Money held by the Trustee in trust hereunder need not be segregated from other funds except to
the extent required by law. The Trustee shall be under no liability for interest on any money
received by it hereunder except as otherwise agreed with the Company.

Section 6.7. Compensation and Reimbursement.

     The Company agrees:

     (1) to pay to the Trustee from time to time such reasonable compensation for its
acceptance of this Indenture and for its services hereunder as Trustee, Paying Agent,
Security Registrar and in all other capacities in which it is serving hereunder as the
Company and the Trustee shall from time to time agree in writing (which compensation shall
not be limited by any provision of law in regard to the compensation of a trustee of an
express trust);

     (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its
request for all reasonable out-of-pocket expenses, disbursements and advances
incurred or made by the Trustee in accordance with any provision of this Indenture
(including the reasonable compensation and the expenses and disbursements of its agents

35

 

and
counsel), except any such expense, disbursement or advance as may be attributable to its
negligence, bad faith or willful misconduct; and

     (3) to indemnify the Trustee and its agents, directors, employees and officers for, and
to hold them harmless against, any loss, liability or out-of-pocket expense (including the
reasonable compensation and the expenses and disbursements of its agents and counsel)
incurred without negligence, bad faith or willful misconduct on its or their part, arising
out of or in connection with the acceptance or administration of the trust or trusts
hereunder, including the costs and out-of-pocket expenses of defending itself against any
claim or liability in connection with the exercise or performance of any of the Trustee’s
powers or duties hereunder.

     As security for the performance of the obligations of the Company under this Section, the
Trustee shall have a lien prior to the Securities upon all property and funds held or collected by
the Trustee as such, except funds held in trust for the payment of principal of, premium, if any,
or interest, if any, on particular Securities. If the Trustee incurs out-of-pocket expenses or
renders services after the occurrence of an Event of Default, the expenses and the compensation for
the services will be intended to constitute expenses of administration under Title 11 of the United
States Bankruptcy Code or any applicable federal or state law for the relief of debtors. The
provisions of this Section 6.7 shall survive the resignation or removal of the Trustee and the
termination of this Indenture.

Section 6.8. Disqualification; Conflicting Interests.

     The Trustee shall comply with the terms of Section 310(b) of the Trust Indenture Act.

Section 6.9. Corporate Trustee Required; Eligibility.

     There shall at all times be a Trustee hereunder which shall 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 exercise corporate trust powers, having a combined capital
and surplus of at least $50,000,000 and subject to supervision or examination by Federal or State
authority. If such corporation 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, the combined capital and surplus of such corporation 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, it
shall resign immediately in the manner and with the effect hereinafter specified in this Article.

Section 6.10. 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 shall become effective until the acceptance of appointment by the
successor Trustee in accordance with the applicable requirements of Section 6.11.

     (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

36

 

successor
Trustee required by Section 6.11 shall not have been delivered to the Trustee within 30 days after
the giving of such notice of resignation, the resigning Trustee may 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.

     (d) If at any time:

     (1) the Trustee shall fail to comply with Section 6.8 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, or

     (2) the Trustee shall cease to be eligible under Section 6.9 and shall fail to resign
after written request therefor by the Company or any such Holder, or

     (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed or any public
officer shall take 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, (i) the Company by a Board Resolution may remove the Trustee with respect
to all Securities, or (ii) subject to Section 5.14, 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.

     (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy
shall occur in the office of Trustee for any cause, with respect to the Securities of one or more
series, the Company, by a Board Resolution, shall 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 shall be only one Trustee with respect to the Securities of any particular
series) and shall comply with the applicable requirements of Section 6.11. 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 shall be 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 shall, forthwith upon its acceptance
of such appointment in accordance with the applicable requirements of Section 6.11, 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 6.11, 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

37

 

others similarly situated, petition any court of competent jurisdiction for the appointment of
a successor Trustee with respect to the Securities of such series.

     (f) The Company shall 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 by mailing written notice of such event by first-class mail, postage
prepaid, to all Holders of Securities of such series as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor Trustee with respect to the
Securities of such series and the address of its Corporate Trust Office.

Section 6.11. 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 shall execute, acknowledge and deliver to the
Company and the retiring Trustee an instrument accepting such appointment, and thereupon the
resignation or removal of the retiring Trustee shall become effective and such successor Trustee,
without any further act, deed or conveyance, shall 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 shall, upon payment of its charges, execute and deliver an
instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring
Trustee and shall duly assign, transfer and deliver to such successor 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 shall execute and deliver an indenture
supplemental hereto wherein each successor Trustee shall accept such appointment and which (1)
shall contain such provisions as shall 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, (2) if the retiring Trustee is not retiring with respect to all Securities, shall
contain such provisions as shall 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 shall continue to be vested in the retiring
Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall 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 shall constitute
such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust
or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other
such Trustee; and, upon the execution and delivery of such supplemental indenture, the resignation
or removal of the retiring Trustee shall become effective to the extent provided therein and each
such successor Trustee, without any further act, deed or conveyance, shall 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 shall duly assign, transfer and deliver
to such successor Trustee all property and money held by such retiring

38

 

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 shall execute any and all
instruments for more fully and certainly vesting in and confirming to such successor Trustee all
such rights, powers and trusts referred to in paragraph (a) and (b) of this Section, as the case
may be.

     (d) No successor Trustee shall accept its appointment unless at the time of such acceptance
such successor Trustee shall be qualified and eligible under this Article.

Section 6.12. 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 shall be a party, or any corporation succeeding to all or substantially all the
corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided
such corporation shall be otherwise qualified and eligible under this Article, 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.

Section 6.13. Preferential Collection of Claims.

     The Trustee shall comply with Section 311(a) of the Trust Indenture Act, excluding any
creditor relationship listed in Section 311(b) of the Trust Indenture Act. A Trustee who has
resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the
extent indicated therein.

Section 6.14. Appointment of Authenticating Agent.

     (a) At any time when any of the Securities remain Outstanding, the Trustee may and, upon
request of the Company, shall appoint an Authenticating Agent or Agents with respect to one or more
series of Securities, which shall be authorized to act on behalf of the Trustee to authenticate
Securities of such series issued upon exchange, registration of transfer or partial redemption
thereof or pursuant to Section 3.6. Securities so authenticated shall be entitled to the benefits
of this Indenture and shall 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 shall
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

39

 

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, the combined
capital and surplus of such Authenticating Agent 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 an
Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section,
such Authenticating Agent shall resign immediately in the manner and with the effect specified in
this Section.

     (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 shall be a party, or any corporation succeeding to
the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be
an Authenticating Agent, provided such corporation shall be otherwise eligible under this Section,
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 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 the Company, and the
Trustee shall terminate any such agency promptly upon request by 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 to be eligible in accordance with the provisions of this Section, the Trustee may
and, upon request of the Company, shall appoint a successor Authenticating Agent which shall be
acceptable to the Company and shall 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 shall 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 shall be appointed
unless eligible under the provisions of this Section.

     (d) The Company agrees to pay to each Authenticating Agent from time to time reasonable
compensation for its services under this Section.

     (e) If an appointment of an Authenticating Agent with respect to one or more series is made
pursuant to this Section, the Securities of such series may have endorsed thereon, in lieu of the
Trustee’s certificate of authentication, an alternate 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.

[                      
         ] National Association,

As Trustee

40

 

	 	 	 	 	 
	 	 	 
	 	By  	
 	 
	 	 	As Authenticating Agent 	 
	 	 	 	 
	 	 	 
	 	By  	
 	 
	 	 	Authorized Signatory 	 

ARTICLE VII

HOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY

Section 7.1. Company to Furnish Trustee Names and Addresses of Holders.

     If the Trustee is not the Security Registrar, the Company will furnish or cause to be
furnished to the Trustee:

     (a) semi-annually (at intervals of not more than six months), not later than 15 days after
each Regular Record Date (or, if there is no Regular Record Date relating to a series,
semi-annually on dates set forth in the Board Resolution or supplemental indenture with respect to
such series), a list, in such form as the Trustee may reasonably require, of the names and
addresses of the Holders as of such date, and

     (b) at such other times as the Trustee may request in writing, within 30 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 days prior to the time such list is furnished.

Section 7.2. Preservation of Information; Communications to Holders.

     (a) The Trustee shall 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 7.1 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 7.1
upon receipt of a new list so furnished.

     (b) Holders of any series may communicate pursuant to Section 312(b) of the Trust Indenture
Act with other Holders of that series or any other series with respect to their rights under this
Indenture or the Securities of that series or any other series. The Company, the Trustee, the
Registrar and any other Person shall have the protection of Section 312(c) of the Trust Indenture
Act.

Section 7.3. Reports by Trustee.

     (a) Within 60 days after May 15 of each year, commencing the May 15 following the date of this
Indenture, the Trustee shall, to the extent that any of the events described in Section 313(a) of
the Trust Indenture Act occurred within the previous twelve months, but not otherwise, mail to each
Holder a brief report dated as of such date that complies with Section 313(a) of the

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Trust
Indenture Act. The Trustee also shall comply with Sections 313(a), 313(c) and 313(d) of the Trust
Indenture Act.

     (b) A copy of each report at the time of its mailing to Holders shall be mailed to the Company
and filed with the Commission and each securities exchange, if any, on which the Securities of that
series are listed.

     (c) The Company shall notify the Trustee if the Securities of any series become listed on any
securities exchange or of any delisting thereof and the Trustee shall comply with Section 313(d) of
the Trust Indenture Act.

Section 7.4. Reports by Company.

     (a) The Company shall:

     (1) file with the Trustee, within 15 days after the Company files the same with the
Commission, copies of the annual reports and of the information, documents and other reports
(or copies of such portions of any of the foregoing as the Commission may from time to time
by rules and regulations prescribe) which the Company may be required to file with the
Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934;
or, if the Company is not required to file information, documents or reports pursuant to
either of said Sections, then it shall file with the Trustee and the Commission, in
accordance with rules and regulations prescribed from time to time by the Commission, such
of the supplementary and periodic information, documents and reports which may be required
pursuant to Section 13 of the Securities Exchange Act of 1934 in respect of a security
listed and registered on a national securities exchange as may be prescribed from time to
time in such rules and regulations;

     (2) file with the Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such additional information, documents and
reports with respect to compliance by the Company with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

     (3) transmit by mail to all Holders, as their names and addresses appear in the
Security Register, within 30 days after the filing thereof with the Trustee, such summaries
of any information, documents and reports required to be filed by the Company pursuant to
paragraphs (1) and (2) of this Section as may be required by rules and regulations
prescribed from time to time by the Commission.

     (b) Delivery of any information, documents and reports to the Trustee pursuant to paragraph
(a) (1) and (a) (2) of this Section 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 rely exclusively on Officers’ Certificates).

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ARTICLE VIII

CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

Section 8.1. Company May Consolidate, Etc., Only on Certain Terms.

     The Company shall not consolidate with or merge into any other corporation or convey, transfer
or lease its properties and assets substantially as an entirety to any Person, and the Company
shall not permit any Person to consolidate with or merge into the Company, unless:

     (1) in case the Company shall consolidate with or merge into another corporation or
convey, transfer or lease its properties and assets substantially as an entirety to any
Person, the corporation formed by such consolidation or into which the Company is merged or
the Person which acquires by conveyance or transfer, or which leases, the properties and
assets of the Company substantially as an entirety shall be a corporation organized and
existing under the laws of the United States of America, any State thereof or the District
of Columbia and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and
punctual payment of the principal of (and premium, if any) and interest on all the
Securities and the performance and observance of every covenant of this Indenture on the
part of the Company to be performed or observed;

     (2) immediately after giving effect to such transaction and treating any Indebtedness
which becomes an obligation of the Company or a Subsidiary as a result of such transaction
as having been incurred by the Company or such Subsidiary at the time of such transaction,
no Event of Default, and no event which, after notice or lapse of time or both, would become
an Event of Default, shall have happened and be continuing; and

     (3) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that such consolidation, merger, conveyance, transfer or lease and, if
a supplemental indenture is required in connection with such transaction, such supplemental
indenture comply with this Article and that all conditions precedent herein provided for
relating to such transaction have been complied with.

Section 8.2. Successor Substituted.

     Upon any consolidation by the Company with or merger by the Company into any other corporation
or any conveyance, transfer or lease of the properties and assets of the Company substantially as
an entirety in accordance with Section 8.1, the successor corporation formed by such consolidation
or into which the Company is merged or the Person to which such conveyance, transfer or lease is
made shall succeed to, and be substituted for, and may exercise every right and power of, the
Company under this Indenture with the same effect as if such successor Person had been named as the
Company herein, and thereafter, except in the case of a lease, the predecessor Person shall be
relieved of all obligations and covenants under this Indenture and the Securities.

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ARTICLE IX

SUPPLEMENTAL INDENTURES

Section 9.1. Supplemental Indentures Without Consent of Holders.

     Without the consent of any Holders, the Company, when authorized by a Board Resolution, and
the Trustee (at the direction of the Company) at any time and from time to time, may enter into one
or more indentures supplemental hereto, in form reasonably satisfactory to the Trustee, for any of
the following purposes:

     (1) 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; or

     (2) 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; or

     (3) to add any additional Events of Default with respect to all or any series of
Securities (and if such Events of Default are to be for the benefit of less than all series
of Securities, stating that such Events of Default are expressly being included solely for
the benefit of such series); or

     (4) to add to or change any of the provisions of this Indenture to such extent as shall
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; or

     (5) to change or eliminate any of the provisions of this Indenture, provided that any
such change or elimination shall become effective only when there is no Security Outstanding
of any series created prior to the execution of such supplemental indenture which is
entitled to the benefit of such provision; or

     (6) to establish the form or terms of Securities of any series as permitted by Sections
2.1 and 3.1; or

     (7) to evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series or to add to or change any of
the provisions of this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, pursuant to the
requirements of Section 6.11(b); or

     (8) 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

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other provisions
with respect to matters or questions arising under this Indenture,
provided such action shall not adversely affect the interests of the Holders of
Securities of any series in any material respect; or

     (9) to comply with any requirement of the Commission in order to effect or maintain the
qualification of this Indenture under the Trust Indenture Act.

Section 9.2. Supplemental Indentures with Consent of Holders.

     (a) With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Securities of each series so 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 (at the direction of the Company) 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 the Securities of such series
or of modifying in any manner the rights of the Holders of Securities of such series under this
Indenture. Without the consent of the Holder of each Outstanding Securities affected thereby, a
supplemental indenture under this Section 9.2 shall not (with respect to any Outstanding Security
held by a non-consenting Holder):

     (1) 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 Section 5.2, or change any
Place of Payment where, or the coin or currency in which, any Security or any premium or the
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), or

     (2) reduce the percentage in principal amount of the Outstanding Securities of any
series, the consent of whose Holders is required for any such supplemental indenture, or the
consent of whose Holders 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

     (3) modify any of the provisions of this Section, Section 5.13 or Section 10.7, except
to increase any such percentage 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 shall not be
deemed to require the consent of any Holder with respect to changes in the references to
“the Trustee” and concomitant changes in this Section, or the deletion of this proviso, in
accordance with the requirements of Sections 6.11(b) and 9.1(7).

     (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

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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, shall be deemed not to affect
the rights under this Indenture of the Holders of Securities of any other series.

     (c) It shall not be necessary for any Act of Holders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     (d) The Company may set a record date for purposes of determining the identity of Holders of
Securities entitled to consent pursuant to this Section. Such record date shall be the later of
(i) thirty days prior to the first solicitation of such consent or (ii) the date of the most recent
list of Holders furnished to the Trustee prior to such solicitation pursuant to Section 7.1.

Section 9.3. Execution of Supplemental Indentures.

     In executing, or accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be entitled to receive, and (subject to Section 6.1) shall 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 and complies with the
provisions hereof (including Section 9.5 hereof). The Trustee may, but shall not be obligated to,
enter into any such supplemental indenture which affects the Trustee’s own rights, duties, or
immunities or liabilities under this Indenture or otherwise.

Section 9.4. Effect of Supplemental Indentures.

     Upon the execution of any supplemental indenture under this Article, this Indenture shall be
modified in accordance therewith, and such supplemental indenture shall form a part of this
Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated
and delivered hereunder shall be bound thereby.

Section 9.5. Conformity with Trust Indenture Act.

     Every supplemental indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

Section 9.6. Reference in Securities to Supplemental Indentures.

     Securities authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article may, and shall 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 such Securities may be authenticated and delivered by the Trustee in exchange for
Outstanding Securities of such series.

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ARTICLE X

COVENANTS

Section 10.1. Payment of Principal, Premium and Interest.

     (a) The Company covenants and agrees for the benefit of each series of Securities that it will
duly and punctually pay the principal of (and premium, if any) and interest on the Securities of
that series in accordance with the terms of the Securities and this Indenture.

     (b) An installment of principal or interest shall be considered paid on the date it is due if
the Trustee or Paying Agent holds on that date money designated for and sufficient to pay such
installment and is not prohibited from paying such money to the Holders pursuant to the terms of
this Indenture or otherwise.

Section 10.2. 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 of the Trustee, 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 shall 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 10.3. 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, on or before each due date of the principal of (and premium, if any) 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 premium, if any) or
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 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 (and premium, if any) or interest on

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any Securities of that series, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the
benefit of the Persons entitled to such principal, premium or interest, 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 or the Company to execute and deliver to the Trustee an instrument in which such Paying
Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying
Agent will:

     (1) hold all sums held by it for the payment of the principal of (and premium, if any)
or interest on Securities of that series in trust for the benefit of the Persons entitled
thereto until such sums shall be paid to such Persons or otherwise disposed of as herein
provided;

     (2) give the Trustee notice of any default by the Company (or any other obligor upon
the Securities of that series) in the making of any payment of principal (and premium, if
any) or interest on the Securities of that series; and

     (3) at any time during the continuance of any such default, upon the written request of
the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

     (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 of the Company, 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 shall 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 (and premium, if any) or interest on any Security of any
series, and remaining unclaimed for two years after such principal (and premium, if any) or
interest has become due and payable shall be paid to the Company on Company Request of the Company
or (if then held by the Company) shall be discharged from such trust; and the Holder of such
Security shall 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, shall thereupon cease.

Section 10.4. Corporate Existence.

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

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desirable in the conduct of the business of the Company and that the loss thereof is
not disadvantageous in a material respect to the Holders.

Section 10.5. Maintenance of Properties.

     The Company will cause all properties used or useful in the conduct of its business or the
business of any Subsidiary to be maintained and kept in good condition, repair and working order
and supplied with all necessary equipment and will cause to be made all necessary repairs,
renewals, replacements, betterments, and improvements thereof, all as in the judgment of the
Company may be necessary so that the business carried on in connection therewith may be properly
and advantageously conducted at all times; provided, however, that nothing in this
Section shall prevent the Company from discontinuing the operation or maintenance of any of such
properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of
its business or the business of any Subsidiary and not disadvantageous in any material respect to
the Holders.

Section 10.6. Statement by Officers as to Default.

     The Company will deliver to the Trustee, within 120 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
best knowledge of the signers thereof the Company is in default in the performance and observance
of any of the terms, provisions and conditions applicable to the Company and, if the Company shall
be in default, specifying all such defaults and the nature and status thereof of which they may
have knowledge. If any default or Event of Default under clauses (4), (5), (6) or (7) of Section
5.1 has occurred and is continuing, within 10 Business Days after its becoming aware of such
occurrence the Company shall deliver to the Trustee an Officers’ Certificate specifying such event
and what action the Company is taking or proposes to take with respect thereto.

Section 10.7. Waiver of Covenant.

     (a) The Company may omit in any particular instance to comply with any term, provision or
condition set forth in Section 10.5 with respect to the Securities of any series if before the time
for such compliance the Holders of at least a majority in principal amount of the Outstanding
Securities of such series, 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 shall 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 shall remain in full force and effect.

     (b) The Company may set a record date for purposes of determining the identity of Holders of
Securities entitled to waive compliance pursuant to this Section. Such record date shall be the
later of (i) thirty days prior to the first solicitation of such waiver or (ii) the date of the
most recent list of Holders furnished to the Trustee prior to such solicitation pursuant to Section
7.1.

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ARTICLE XI

REDEMPTION OF SECURITIES

Section 11.1. Applicability of Article.

     Securities of any series which are redeemable before their Stated Maturity shall be redeemable
in accordance with their terms and (except as otherwise specified as contemplated by Section 3.1
for Securities of any series) in accordance with this Article.

Section 11.2. Election to Redeem; Notice to Trustee.

     The election of the Company to redeem any Securities shall be evidenced by a Board Resolution.
In case of any redemption at the election of the Company of less than all the Securities of like
tenor of any series, the Company shall, at least 45 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. Any such
notice may be cancelled at any time prior to notice of such redemption being mailed to any Holder
and shall thereby be void and of no effect. 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 shall furnish the Trustee with an Officers’ Certificate
evidencing compliance with such restriction.

Section 11.3. Selection by Trustee of Securities to Be Redeemed.

     (a) If less than all the Securities of like tenor of any series are to be redeemed, the
particular securities to be redeemed shall be selected by the Trustee, from the Outstanding
Securities of like tenor of such series not previously called for redemption, by lot or any other
such method as the Trustee shall 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 such Securities of a
denomination larger than the minimum authorized denomination for such Securities.

     (b) The Trustee shall 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.

     (c) For all purposes of this Indenture, unless the context otherwise requires, all provisions
relating to the redemption of Securities shall 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.

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Section 11.4. Notice of Redemption.

     (a) Notice of redemption shall be given by first-class mail, postage prepaid, mailed not less
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be
redeemed, at his address appearing in the Security Register.

     All notices of redemption shall state:

     (1) the Redemption Date,

     (2) the Redemption Price,

     (3) if less than all the Outstanding Securities of like tenor of any series are to be
redeemed, the identification (and, in the case of partial redemption, the principal amounts)
of the particular Securities to be redeemed,

     (4) in case any Security is to be redeemed in part only, the notice which relates to
such Security shall state that on and after the Redemption Date, upon surrender of such
Security, the Holder of such Security will receive, without charge, a new Security or
Securities of authorized denominations for the principal amount thereof remaining
unredeemed,

     (5) 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,

     (6) the CUSIP number and/or similar numbers of such Securities, if any (or any other
numbers used by a Depositary to identify such Securities),

     (7) the place or places where such Securities are to be surrendered for payment of the
Redemption Price, and

     (8) that the redemption is for a sinking fund, if such is the case.

     (b) Notice of redemption of Securities to be redeemed at the election of the Company shall be
given by the Company or, at the Company’s request, by the Trustee in the name and at the expense of
the Company.

Section 11.5. Deposit of Redemption Price.

     At least one Business Day prior to any Redemption Date, the Company shall deposit with the
Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, the Company
shall segregate and hold in trust as provided in Section 10.3) an amount of money sufficient to pay
the Redemption Price of, and (except if the Redemption Date shall be an Interest Payment Date)
accrued interest on, all the Securities which are to be redeemed on that date.

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Section 11.6. Securities Payable on Redemption Date.

     (a) Notice of redemption having been given as aforesaid, the Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price therein specified
and, from and after such date (unless the Company shall default in the payment of the Redemption
Price and accrued interest) such Securities shall cease to bear interest. Upon surrender of any
such Security for redemption in accordance with said notice, such Security shall be paid by the
Company at the Redemption Price, together with accrued interest to the Redemption Date;
provided, however, that installments of interest whose Stated Maturity is on or
prior to the Redemption Date shall 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
according to their terms and the provisions of Section 3.7.

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

Section 11.7. Securities Redeemed in Part.

     Any Security which is to be redeemed only in part shall 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 shall execute, and the
Trustee shall 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.

ARTICLE XII

SINKING FUNDS

Section 12.1. Applicability of Article.

     (a) The provisions of this Article shall be applicable to any sinking fund for the retirement
of Securities of a series except as otherwise specified as contemplated by Section 3.1 for
Securities of such series.

     (b) 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 cash amount of any sinking fund payment may be subject to reduction as provided in Section
12.2. Each sinking fund payment shall be applied to the redemption of Securities of any series as
provided for by the terms of Securities of such series.

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Section 12.2. Satisfaction of Sinking Fund Payments with Securities.

     The Company (1) may deliver Outstanding Securities of a series (other than any previously
called for redemption) and (2) 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 shall 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 shall be reduced accordingly.

Section 12.3. Redemption of Securities for Sinking Fund.

     Not less than 60 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, which is to be satisfied by payment of cash and the portion thereof, if any, which
is to be satisfied by delivering and crediting Securities of that series pursuant to Section 12.2
and will also deliver to the Trustee any such Securities. Not less than 30 days before each such
sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 11.3 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 11.4. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 11.6 and 11.7.

ARTICLE XIII

DEFEASANCE AND COVENANT DEFEASANCE

Section 13.1. Applicability of Article; Company’s Option to Effect Defeasance or Covenant
Defeasance.

     Unless pursuant to Section 3.1 provision is made for either or both of (a) defeasance of the
Securities of a series under Section 13.2 to not be applicable with respect to the Securities of
such series or (b) covenant defeasance of the Securities of a series under Section 13.3 to not be
applicable with respect to the Securities of such series, then the provisions of such Sections
together with the other provisions of this Article Thirteen, shall be applicable to the Securities
of such series, and the Company may at its option by or pursuant to a Board Resolution, at any
time, with respect to the Securities of such series, elect to have either Section 13.2 or Section
13.3 be applied to the Outstanding Securities of such series upon compliance with the conditions
set forth below in this Article Thirteen.

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Section 13.2. Defeasance and Discharge.

     Upon the Company’s exercise of the option set forth in Section 13.1 applicable to this
Section, the Company shall be deemed to have been discharged from its obligations with respect to
the Outstanding Securities of such series on the date the conditions set forth below are satisfied
(hereinafter, “defeasance”). For this purpose, such defeasance means that the Company shall 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 such Securities and
this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the
Company, shall execute instruments acknowledging the same), except for the following which shall
survive until otherwise terminated or discharged hereunder: (A) the rights of Holders of
Outstanding Securities of such series to receive, solely from the trust fund described in Section
13.4 and as more fully set forth in such Section, payments in respect of the principal of (and
premium, if any) and interest on such Securities when such payments are due, (B) the Company’s
obligations with respect to such Securities under Sections 3.4, 3.5, 3.6, 10.2 and 10.3, (C) the
rights, powers, trusts, duties, and immunities of the Trustee under Sections 3.5, 3.6, 3.7, 3.9,
4.2, 6.7 and Section 10.3(e), and otherwise the duty of the Trustee to authenticate Securities of
such series issued on registration of transfer or exchange and (D) this Article Thirteen. Subject
to compliance with this Article Thirteen, the Company may exercise its option under this Section
13.2 notwithstanding the prior exercise of its option under Section 13.3 with respect to the
Securities of such series.

Section 13.3. Covenant Defeasance.

     Upon the Company’s exercise of the option set forth in Section 13.1 applicable to this
Section, the Company shall be released from its obligations under Sections 7.4, 8.1(2), 10.5 and
10.6 and any other covenants to be applicable to the Securities of a series as specified pursuant
to Section 3.1 unless specified otherwise pursuant to such Section (and the failure to comply with
any such provisions shall not constitute a default or Event of Default under Section 5.1), and the
occurrence of any event described in Section 5.1(4), (5) and (8) and any other events of default to
be applicable to the Securities of a series as specified pursuant to Section 3.1 unless specified
otherwise pursuant to such Section shall not constitute a default or Event of Default hereunder,
with respect to the Outstanding Securities of such series on and after the date the conditions set
forth below are satisfied (hereinafter, “covenant defeasance”). For this purpose, such covenant
defeasance means that, with respect to the Outstanding Securities of such series, the Company may
omit to comply with and shall have no liability in respect of any term, condition or limitation set
forth in any such Section with respect to it, 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 such
Securities shall be unaffected thereby.

Section 13.4. Conditions to Defeasance or Covenant Defeasance.

     The following shall be the conditions to application of either Section 13.2 or Section 13.3 to
the Outstanding Securities of such series:

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     (a) the Company shall irrevocably have deposited or caused to be deposited with the Trustee
(or another trustee satisfying the requirements of Section 6.9 who shall agree to comply with the
provisions of this Article Thirteen applicable to it) as trust funds in trust for the purpose of
making the following payments, specifically pledged as security for, and dedicated solely to, the
benefit of the holders of such Securities, (A) money in an amount, or (B) U.S. Government
Obligations which through the scheduled payment of principal and interest in respect thereof in
accordance with their terms will provide, not later than the due date of any payment, money in an
amount, or (C) a combination thereof, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the
Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying
trustee) to pay and discharge, (i) the principal of (and premium, if any) on and each installment
of principal of (premium, if any) and interest on the Outstanding Securities of such series on the
Stated Maturity of such principal or installment of principal or interest and (ii) any mandatory
sinking fund payments or analogous payments applicable to the Outstanding Securities of such series
on the day on which such payments are due and payable in accordance with the terms of this
Indenture and of such Securities. For this purpose, “U.S. Government Obligations” means securities
that are (x) direct obligations of the United States of America for the payment of which its full
faith and credit is pledged or (y) obligations 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, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depository 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 such U.S. Government
Obligation or a specific payment of principal of or interest on any such U.S. Government Obligation
held by such custodian for the account of the holder of such depository receipt, 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 depository receipt from any amount received by the
custodian in respect of the U.S. Government Obligation or the specific payment of principal of or
interest on the U.S. Government Obligation evidenced by such depository receipt;

     (b) no Event of Default with respect to the Securities of such series shall have occurred and
be continuing on the date of such deposit (other than a Default resulting from borrowing of funds
to be applied to such deposit and the grant of any lien securing such borrowing);

     (c) such defeasance or covenant defeasance shall not cause the Trustee for the Securities of
such series to have a conflicting interest for purposes of the Trust Indenture Act with respect to
any securities of the Company;

     (d) such defeasance or covenant defeasance shall 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;

     (e) such defeasance or covenant defeasance shall not cause any Securities of such series then
listed on any registered national securities exchange under the Securities Exchange Act of 1934, as
amended, to be delisted;

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     (f) in the case of an election under Section 13.2, the Company shall have delivered to the
Trustee an Opinion of Counsel stating that (x) the Company has received from, or there has been
published by, the Internal Revenue Service a ruling, or (y) 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 income, gain or loss for Federal income tax purposes as a result of such
defeasance and will be subject to Federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such defeasance had not occurred;

     (g) in the case of an election under Section 13.3, the Company shall have delivered to the
Trustee an Opinion of Counsel to the effect that the Holders of the Outstanding Securities of such
series will not recognize income, gain or loss for Federal income tax purposes as a result of such
covenant defeasance and will be subject to Federal income tax on the same amounts, in the same
manner and at the same times as would have been the case if such covenant defeasance had not
occurred;

     (h) such defeasance or covenant defeasance shall be effected in compliance with any additional
terms, conditions or limitations which may be imposed on the Company in connection therewith
pursuant to Section 3.1; and

     (i) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to either the defeasance
under Section 13.2 or the covenant defeasance under Section 13.3, as the case may be, have been
complied with.

Section 13.5. Deposited Money and U.S. Government Obligations to Be Held in Trust; Other
Miscellaneous Provisions.

     (a) Subject to the provisions of the last paragraph of Section 10.3, all money and U.S.
Government Obligations (including the proceeds thereof) deposited with the Trustee (or other
qualifying trustee, collectively, for purposes of this Section 13.5, the “Trustee”) pursuant to
Section 13.4 in respect of the Outstanding Securities of such series shall be held in trust and
applied by the Trustee, in accordance with the provisions of such 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 Holders of such Securities, of all sums due and
to become due thereon in respect of principal (and premium, if any) and interest, but such money
need not be segregated from other funds except to the extent required by law.

     (b) The Company shall 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 13.4
or the principal and interest received in respect thereof other than any such tax, fee or other
charge which by law is for the account of the Holders of the Outstanding Securities of such series.

     (c) Anything in this Article Thirteen to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money or

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U.S. Government Obligations held by it as provided in Section 13.4 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, are in excess of the amount thereof which would
then be required to be deposited to effect an equivalent defeasance or covenant defeasance.

ARTICLE XIV

SUBORDINATION OF SECURITIES

Section 14.1. Securities Subordinate to Senior Indebtedness.

     The Company covenants and agrees, and each Holder of a Security, by his acceptance thereof,
likewise covenants and agrees, that, to the extent and in the manner hereinafter set forth in this
Article, the indebtedness represented by the Securities and the payment of the principal of,
premium, if any, and interest on each and all of the Securities are hereby expressly made
subordinate and subject in right of payment to the prior payment in full of all Senior
Indebtedness.

Section 14.2. Payment Over of Proceeds Upon Dissolution, Etc.

     In the event of (a) any insolvency or bankruptcy case or proceeding, or any receivership,
liquidation, reorganization or other similar case or proceeding in connection therewith, relative
to the Company or its creditors, as such, or to its assets, or (b) any liquidation, dissolution or
other winding up of the Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy, or (c) any assignment for the benefit of creditors or any other
marshalling of assets and liabilities of the Company, then and in any such event the holders of
Senior Indebtedness shall be entitled to receive payment in full of all amounts due or to become
due on or in respect of all Senior Indebtedness, or provision shall be made for such payment in
money or money’s worth, before the Holders of the Securities are entitled to receive any payment on
account of principal of, premium, if any, or interest on the Securities and to that end the holders
of Senior Indebtedness shall be entitled to receive, for application to the payment thereof, any
payment or distribution of any kind or character, whether in cash, property or securities, which
may be payable or deliverable in respect of the Securities in any such case, proceeding,
dissolution, liquidation or other winding up or event.

     In the event that, notwithstanding the foregoing provisions of this Section, the Trustee or
the Holder of any Security shall have received any payment or distribution of assets of the Company
of any kind or character, whether in cash, property or securities, before all Senior Indebtedness
is paid in full or payment thereof provided for, and if such fact shall, at or prior to the time of
such payment or distribution, have been made known to the Trustee or, as the case may be, such
Holder, then and in such event such payment or distribution shall be paid over or delivered
forthwith to the trustee in bankruptcy, receiver, liquidating trustee, custodian, assignee, agent
or other Person making payment or distribution of assets of the Company for application to the
payment of all Senior Indebtedness remaining unpaid, to the extent necessary to pay all

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Senior Indebtedness in full, after giving effect to any concurrent payment or distribution to or for the
holder of Senior Indebtedness.

     For purposes of this Article only, the words “cash, property or securities” shall not be
deemed to include shares of stock of the Company as reorganized or readjusted, or securities of
the Company or any other corporation provided for by a plan of reorganization or readjustment which
are subordinated in right of payment to all Senior Indebtedness which may at the time be
outstanding to substantially the same extent as, or to a greater extent than, the Securities are so
subordinated as provided in this Article. The consolidation of the Company with, or the merger of
the Company into, another Person or the liquidation or dissolution of the Company following the
conveyance or transfer of its properties and assets substantially as an entirety to another Person
upon the terms and conditions set forth in Article Eight shall not be deemed a dissolution, winding
up, liquidation, reorganization, assignment for the benefit of creditors or marshalling of assets
and liabilities of the Company for the purposes of this Section if the Person formed by such
consolidation or into which the Company is merged or which acquires by conveyance or transfer such
properties and assets substantially as an entirety, as the case may be, shall, as a part of such
consolidation, merger, conveyance or transfer, comply with the conditions set forth in Article
Eight.

Section 14.3. No Payment When Senior Indebtedness in Default

     In the event the Trustee receives notice from the Company or any Senior Lender (or a trustee
therefor) (a “Block-out Notice”) that there shall exist and be continuing (a) any default in the
payment of principal of, premium, if any, or interest on any Senior Indebtedness beyond any
applicable grace period with respect thereto, or (b) any default with respect to Senior
Indebtedness (other than a default specified in clause (a) above) no payment shall be made by the
Company on account of principal of, premium, if any, or interest on the Securities or on account of
the purchase or other acquisition of Securities; provided, however, that nothing in
this Section shall prevent the satisfaction of any sinking fund payment in accordance with Article
Twelve by delivering and crediting pursuant to Section 12.2 Securities which have been acquired
(upon redemption or otherwise) prior to such default in payment or other default; and provided
further that no Block-out Notice given with respect to one or more defaults of the type referred to
in clause (b) above shall be effective to suspend for longer than 179 days from the date that such
a Block-out Notice is first received, in any 360-day period, any payment in respect of principal
of, premium, if any, or interest on the Securities that has become due (or would have become due
but for the provisions of this Section 14.3) and only one such Block-out Notice may be in effect
during any 360-day period.

     In the event that, notwithstanding the foregoing, the Company shall make any payment to the
Trustee or the Holder of any Security prohibited by the foregoing provisions of this Section, and
if such fact shall, at or prior to the time of such payment, have been made known to the Trustee
or, as the case may be, such Holder, then and in such event such payment shall be paid over and
delivered forthwith to the Company.

     The provisions of this Section shall not apply to any payment with respect to which Section
14.2 would be applicable.

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Section 14.4. Payment Permitted If No Default.

     Nothing contained in this Article or elsewhere in this Indenture or in any of the Securities
shall prevent (a) the Company, at any time except during the pendency of any case, proceeding,
dissolution, liquidation or other winding up, assignment for the benefit of creditors or other
marshalling of assets and liabilities of the Company referred to in Section 14.2 or under the
conditions described in Section 14.3, from making payments at any time of principal of, premium,
if any, or interest on the Securities, or (b) the application by the Trustee of any money deposited
with it hereunder to the payment of or on account of the principal of, premium, if any, or interest
on the Securities or the retention of such payment by the Holders if, at the time of such
application by the Trustee, it did not have knowledge that such payment would have been prohibited
by the provisions of this Article.

Section 14.5. Subrogation to Rights of Holders of Senior Indebtedness.

     Subject to the payment in full of all Senior Indebtedness, the Holders of the Securities shall
be subrogated to the extent of the payments or distributions made to the holders of such Senior
Indebtedness pursuant to the provisions of this Article to the rights of the holders of such Senior
Indebtedness to receive payments and distributions of cash, property and securities applicable to
the Senior Indebtedness until the principal of, premium, if any, and interest on the Securities
shall be paid in full. For purposes of such subrogation, no payments or distributions to the
holders of the Senior Indebtedness of any cash, property or securities to which the Holders of the
Securities or the Trustee would be entitled except for the provisions of this Article, and no
payments over pursuant to the provisions of this Article to the holders of Senior Indebtedness by
Holders of the Securities or the Trustee, shall, as among the Company, its creditors other than
holders of Senior Indebtedness and the Holders of the Securities, be deemed to be a payment or
distribution by the Company to or on account of the Senior Indebtedness.

Section 14.6. Provisions Solely to Define Relative Rights.

     The provisions of this Article are and are intended solely for the purpose of defining the
relative rights of the Holders of the Securities on the one hand and the holders of Senior
Indebtedness on the other hand. Nothing contained in this Article or elsewhere in this Indenture
or in the Securities is intended to or shall (a) impair, as among the Company, its creditors other
than holders of Senior Indebtedness and the Holders of the Securities, the obligation of the
Company, which is absolute and unconditional (and which, subject to the rights under this Article
of the holders of Senior Indebtedness, is intended to rank equally with all other general
obligations of the Company), to pay to the Holders of the Securities the principal of, premium, if
any, and interest on the Securities as and when the same shall become due and payable in accordance
with their terms; or (b) affect the relative rights against the Company of the Holders of the
Securities and creditors of the Company other than the holders of Senior Indebtedness; or (c)
prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted
by applicable law upon default under this Indenture, subject to the rights, if any, under this
Article of the holders of Senior Indebtedness to receive cash, property and securities otherwise
payable or deliverable to the Trustee or such Holder.

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Section 14.7. Trustee to Effectuate Subordination.

     Each holder of a Security by his acceptance thereof authorizes and directs the Trustee on his
behalf to take such action as may be necessary or appropriate to effectuate the subordination
provided in this Article and appoints the Trustee his attorney-in-fact for any and all such
purposes.

Section 14.8. No Waiver of Subordination Provisions.

     No right of any present or future holder of any Senior Indebtedness to enforce subordination
as herein provided shall at any time in any way be prejudiced or impaired by any act or failure to
act on the part of the Company or by any act or failure to act, in good faith, by any such holder,
or by any non-compliance by the Company with the terms, provisions and covenants of this Indenture,
regardless of any knowledge thereof any such holder may have or be otherwise charged with.

     Without in any way limiting the generality of the foregoing paragraph, the holders of Senior
Indebtedness may, at any time and from time to time, without the consent of or notice to the
Trustee or the Holders of the Securities, without incurring responsibility to the Holders of the
Securities and without impairing or releasing the subordination provided in this Article or the
obligations hereunder of the Holders of the Securities to the holders of Senior Indebtedness, do
any one or more of the following: (i) change the manner, place or terms of payment or extend the
time of payment of, or renew or alter, Senior Indebtedness, or otherwise amend or supplement in any
manner Senior Indebtedness or any instrument evidencing the same or any agreement under which
Senior Indebtedness is outstanding; (ii) sell, exchange, release or otherwise deal with any
property pledged, mortgaged or otherwise securing Senior Indebtedness; (iii) release any Person
liable in any manner for the collection of Senior Indebtedness; and (iv) exercise or refrain from
exercising any rights against the Company and any other Person.

Section 14.9. 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.

     Notwithstanding the provisions of this Article 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 from the Company or a Senior Lender or from any
trustee therefor; and, prior to the receipt of any such written notice, the Trustee, subject to the
provisions of Section 6.1, shall be entitled in all respects to assume that no such facts exist;
provided, however, that if the Trustee shall not have received the notice provided
for in this Section at least three Business Days prior to the date upon which by the terms hereof
any money may become payable for any purpose (including, without limitation, the payment of the
principal of, premium, if any, or interest on any Security), then, anything herein contained to the
contrary notwithstanding, the Trustee shall have full power and authority to receive such money

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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 6.1, the Trustee shall be entitled to rely on the
delivery to it of a written notice by a Person representing himself to be a Senior Lender (or a
trustee therefor) to establish that such notice has been given by a Senior Lender (or a trustee
therefor). In the event that the Trustee determines in good faith that further evidence is
required with respect to the right of any Person as holders 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 to such Person
pending judicial determination as to the right of such Person to receive such payment.

Section 14.10. 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 6.1, and the Holders of the Securities shall be
entitled to 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, receiver,
liquidating trustee, custodian, 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 the 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.

Section 14.11. 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 it 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.

Section 14.12. Rights of Trustee as Holder of Senior Indebtedness; Preservation of Trustee’s
Rights.

     The Trustee 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 of any of its rights as such holder.

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     Nothing in this Article shall apply to claims of, or payments to, the Trustee under or
pursuant to Section 6.7.

Section 14.13. Article Applicable to Paying Agents.

     In case at any time any Paying Agent other than the Trustee shall have been appointed by the
Company and be then acting hereunder, the term “Trustee” as used in this Article shall in such case
(unless the context otherwise requires) be construed as extending to and including such Paying
Agent within its meaning as fully for all intents and purposes as if such Paying Agent were named
in this Article in addition to or in place of the Trustee; provided, however, that
Section 14.12 shall not apply to the Company or any Affiliate of the Company if it or such
Affiliate acts as Paying Agent.

* * * *

     This instrument may be executed in any number of counterparts, each of which so executed shall
be deemed to be an original, but all such counterparts shall together constitute but one and the
same instrument.

[The remainder of this page intentionally left blank.]

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     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	Atlas Air Worldwide Holdings, Inc.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Attest:

 	 
	 	By:  	
 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	[                    ] National Association

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:EX-10.2

Exhibit 10.2

FORBEARANCE AGREEMENT

     This Forbearance Agreement, dated as of June 1, 2009 (this “Agreement”), is entered
into by and between Advanced BioEnergy, LLC, a Delaware limited liability company (the
“Borrower”), and PJC Capital LLC, a Delaware limited liability company (the “Lender”).
Capitalized terms not defined herein shall have the definitions given to them in the Secured Bridge
Note (as defined below).

ARTICLE I

Financing Accommodations and Defaults

     1.1 The Borrower has entered into with, and issued to the order of, the Lender that Secured
Term Loan Note dated as of October 17, 2007 (the “Secured Bridge Note”) evidencing a secured bridge
loan advanced by the Lender to the Borrower in the original principal amount of $10,000,000.

     1.2 The Borrower failed to repay the entire outstanding principal amount of the Secured Bridge
Note and all accrued interest thereon on the Maturity Date as required by Section 2 of the Secured
Bridge Note, and such Event of Default (the “Maturity Payment Event of Default”) is continuing and
has not been cured or waived. In addition, the Borrower has failed to perform or comply with
certain other provisions of the Secured Bridge Note as further described on Annex A
attached hereto, and as a result of such failures, additional Events of Default have occurred which
also are continuing and have not been cured or waived (collectively, together with the Maturity
Payment Event of Default, the “Specified Events of Default”).

     1.3 The entire outstanding Obligations under the Secured Bridge Note, including the principal
amount thereof and all accrued and unpaid interest thereon (which continues to accrue on the
outstanding Obligations at the per annum rate of interest of eighteen percent (18.0%) since the
October 16, 2008 Maturity Date as provided by Section 1 of the Secured Bridge Note), is presently
due and payable in full in cash, and the Lender is entitled, as set forth in that Notice of Event
of Default and Reservation of Rights dated October 17, 2008 delivered by the Lender to the Borrower
and in the Secured Bridge Note and the other Loan Documents, to take immediate actions to collect
the outstanding Obligations and to exercise and enforce any and all remedies available under the
Loan Documents, under applicable law or at equity (including to foreclose on its Collateral,
including the membership interests of the Borrower in ABE Fairmont pledged pursuant to the
Membership Interest Pledge Agreement dated as of October 17, 2007 (the “Pledge Agreement”) by and
between the Borrower and the Lender) (collectively, “Enforcement Actions”).

     1.4 The Borrower has requested that the Lender forbear from exercising any Enforcement Action
with respect to the Specified Events of Default as set forth herein.

     1.5 On and subject to the terms and conditions set forth herein, the Lender has agreed to
forbear after the Forbearance Effective Date and until the Forbearance Termination Date (as such
terms are defined below) from exercising any Enforcement Action with respect to the Specified
Events of Defaults.

 

     NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions
contained herein and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto agree as follows:

ARTICLE II

Acknowledgements and Reaffirmations

     2.1 The Borrower acknowledges and agrees that as of April 24, 2009, (a) the outstanding unpaid
amount of principal and accrued interest (exclusive of outstanding fees, expenses, costs,
indemnities and/or other similar obligations payable pursuant to the Secured Bridge Note, including
Section 11(u) and Section 15 thereof) owing to the Lender, and (b) the outstanding amount of out of
pocket fees, expenses and costs incurred by Lender as of such date, including attorneys’ fees,
pursuant to Section 11(u) of the Secured Bridge Note, were as set forth on Schedule I
attached hereto.

     2.2 The Borrower acknowledges, confirms and agrees that the obligations set forth on
Schedule I attached hereto constitute Obligations and that the terms of the Secured Bridge
Note and the other Loan Documents to which the Borrower is a party are the valid and binding
obligations of the Borrower, enforceable in accordance with their terms, subject to the effect of
any applicable bankruptcy, moratorium, insolvency, reorganization or other similar law affecting
the enforceability of creditors’ rights generally and to the effect of general principles of equity
which may limit the availability of equitable remedies (whether in a proceeding at law or in
equity).

     2.3 The Borrower acknowledges, confirms and agrees that each of the Specified Events of
Default identified in Section 1.2 has occurred and continues to exist as of the date of this
Agreement and represents and warrants that as of such date no other Defaults or Events of Defaults
have occurred and continue to exist.

     2.4 The Borrower hereby ratifies and reaffirms the validity and enforceability of all of the
Liens and security interests heretofore granted and pledged pursuant to the Collateral Security
Documents (including the Pledge Agreement) as collateral security for the Obligations, and
acknowledges that all of such Liens and security interests, and all Collateral heretofore pledged
as security for the Obligations, continue to be and remain collateral security for the Obligations
from and after the date hereof.

ARTICLE III

Representations and Warranties

     In order to induce the Lender to enter into this Agreement, the Borrower hereby represents and
warrants to the Lender as follows:

     3.1 Limited Liability Company Power and Authority. The Borrower has all requisite limited
liability company power and authority to enter into this Agreement and to carry out the
transactions contemplated hereby. The Organizational Documents of the Borrower have not been
amended since October 17, 2007.

2

 

     3.2 Authorization of this Agreement. The execution and delivery of this Agreement and the
performance hereof have been duly authorized by all necessary limited liability company action on
the part of the Borrower.

     3.3 No Conflict. The execution, delivery and performance by the Borrower of this Agreement do
not and will not contravene (a) any law or regulation binding on or affecting the Borrower, (b) the
Organizational Documents of the Borrower, (c) any order, judgment or decree of any court or other
agency of government binding on the Borrower, or (d) any contractual restriction binding on or
affecting the Borrower or ABE Fairmont, including, without limitation, the CoBank Loan Documents.

     3.4 Governmental Consents, Filings. The execution, delivery and performance by the Borrower
of this Agreement do not and will not require any authorization or approval of, or other action by,
or notice to or filing with any Governmental Authority or regulatory body or the consent of any
third party which has not yet been obtained.

     3.5 Binding Obligation. This Agreement has been duly executed and delivered by the Borrower
and is the binding obligation of the Borrower, enforceable against it in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation, moratorium or other similar laws of general application and equitable principles
relating to or affecting creditors’ rights generally.

ARTICLE IV

Release and Waiver

     4.1 The Borrower hereby acknowledges and agrees that: (a) it has no claim, right or cause of
action of any kind against the Lender or any parent, subsidiary or affiliate of any Lender or any
of the Lender’s officers, directors, employees, attorneys or other representatives or agents (all
of which parties other than the Lender being, collectively, the “Lender Agents”) in connection with
this Agreement, the Secured Bridge Note, the Pledge Agreement or any of the other Loan Documents or
any of the other transactions contemplated therein or thereby; (b) it has no offset or defense of
any kind against any of its obligations, indebtedness or contracts in favor of the Lender; and
(c) it recognizes that the Lender has heretofore properly performed and satisfied in a timely
manner all of its respective obligations to and contracts with the Borrower.

     4.2 Effective on the date hereof, the Borrower hereby waives, releases, remises and forever
discharges the Lender and each Lender Agent (collectively, the “Releasees”) from any and all
claims, suits, investigations, proceedings, demands, obligations, liabilities, causes of action,
damages, losses, costs and expenses, whether based in contract, tort, implied or express warranty,
strict liability, criminal or civil statute or common law of any kind or character, known or
unknown, past or present, liquidated or unliquidated, suspected or unsuspected, which the Borrower
ever had from the beginning of the world, or now has against any such Releasee which relates,
directly or indirectly to the Secured Bridge Note, the Pledge Agreement, or any other Loan
Document, or to any acts or omissions of any such Releasee under, in connection with, pursuant to
or otherwise in respect of this Agreement, the Secured Bridge Note, the Pledge Agreement or any of
the other Loan Documents, or otherwise in respect of any of its obligations, indebtedness or
contracts in favour of the Lender, except for the duties and obligations set forth

3

 

in this Agreement, the Secured Bridge Note, the Pledge Agreement or any of the other Loan
Documents. The Borrower hereby represents that it has received the advice of legal counsel with
regard to the releases contained herein.

ARTICLE V

Forbearance

     5.1 Subject to the terms and conditions hereof, the Lender agrees to forbear from taking any
Enforcement Action, including under Section 15 of the Secured Bridge Note or Section 6.2 of the
Pledge Agreement or otherwise under the Loan Documents or under applicable law or at equity with
respect to the Specified Events of Default, in each case, until the date (the “Forbearance
Termination Date”) that is the earliest of:

          (a) October 1, 2009;

          (b) The Equity Offering (as defined in Section 6.5) does not result in net cash proceeds to
the Borrower (after deduction of selling expenses, including, without limitation, underwriting fees
and discounts, brokerage commissions and other similar fees and commissions) (“Equity Offering Net
Proceeds”) of at least $3,000,000 or is not completed on or before October 1, 2009;

          (c) the date on which the Obligations are paid in full in cash;

          (d) the occurrence of a breach or default by the Borrower under this Agreement other than as
specified in clause (g) below;

          (e) Borrower or any of its Subsidiaries fails to observe or perform any agreement or condition
under the CoBank Loan Documents beyond the expiration of any applicable grace period, or any
default or other event occurs, the effect of which default or other event is to cause, or to permit
the holder or holders of the Indebtedness under the CoBank Loan Documents to cause, with the giving
of notice if required, such Indebtedness to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay,
defease or redeem such Indebtedness to be made, prior to its stated maturity; or

          (f) the occurrence of an Event of Default under clause (5) of the definition thereof in the
Secured Bridge Note; or

          (g) the delivery to Borrower by Lender (at its discretion) of written notice (a “Forbearance
Termination Notice”, which may be delivered by electronic mail) that the forbearance contemplated
by this Article V is terminated as the result of the occurrence of an Event of Default (other than
an Event of Default under clause (5) of the definition thereof in the Secured Bridge Note) that
does not constitute a Specified Event of Default (it being understood and agreed that (i) any
failure by Lender to deliver a Forbearance Termination Notice with respect to any Event of Default
shall not be deemed to waive or otherwise limit or impair the rights and remedies of Lender with
respect to such Event of Default (except as expressly provided in this clause (g)) and (ii) Lender
may deliver its Forbearance Termination Notice with respect to an Event of Default (other than an
Event of Default under clause (5) of the definition

4

 

thereof in the Secured Bridge Note) that does not constitute a Specified Event of Default at
any time after the occurrence of such Event of Default so long as such Event of Default is
continuing and has not been cured or waived in accordance with the Secured Bridge Note, and any
delay in delivering such Forbearance Termination Notice shall not be deemed a waiver of, or to
otherwise limit or impair, the right of Lender to deliver such Forbearance Termination Notice or
the effect of such delivery when so made at such future time.

     5.2 The Borrower acknowledges, reaffirms and agrees that upon the occurrence of an event
triggering the Forbearance Termination Date pursuant to Section 5.1 other than under clauses (a) or
(c) of such Section, such Forbearance Termination Date shall be deemed to have occurred immediately
prior to the applicable default and this Agreement shall terminate and the Lender shall be entitled
to commence and exercise immediately all of its rights and remedies under the Loan Documents and
under applicable law or at equity (including, (A) any and all Enforcement Actions and (B) the right
to re-institute the per annum rate of interest of eighteen percent (18.0%) on the outstanding
Obligations, calculated in the manner set forth in Section 1 of the Secured Bridge Note retroactive
to the Maturity Date of the Secured Bridge Note, that was in effect immediately prior to the
Forbearance Effective Date; provided, and the parties hereto acknowledge, confirm and
agree, that the amount of interest that shall have been deemed paid-in-kind in accordance with
Section 6.1 shall accrue and compound at the per annum rate of interest of eighteen percent
(18.0%)).

     5.3 The Borrower acknowledges, reaffirms and agrees that, unless and until the Lender, in
accordance with Section 17 of the Secured Bridge Note, shall have waived in writing all Events of
Default then in existence, the determination to give such waiver being at the Lender’s sole and
absolute discretion, the Lender reserves all rights and remedies available to it under the Loan
Documents and under applicable law or at equity (i) with respect to the Specified Events of Default
and (ii) with respect to any Default or Event of Default under any of the Loan Documents which upon
the Borrower’s execution and delivery of this Agreement might otherwise exist or which might
hereafter occur. The failure of the Lender at any time or times hereafter to require strict
performance by the Borrower of any of the provisions, warranties, terms and conditions contained in
this Agreement, the Secured Bridge Note, the Pledge Agreement or any other Loan Document shall not
waive, affect or diminish any right of the Lender at any time or times thereafter to demand strict
performance thereof. No waiver by the Lender of any of its rights shall operate as a waiver of any
other of its rights or any of its rights on a future occasion at any time and from time to time.
The terms, conditions and events described in this Section 5.3 are currently in full force and
effect without regard to or the assent of the Borrower or any other Person.

ARTICLE VI

Modification of Secured Bridge Note; Undertakings of the Borrower; Amendment of Membership Unit

Pledge Agreement

     6.1 Notwithstanding anything to the contrary set forth in Section 1 of the Secured Bridge
Note, but subject to Section 5.2, effective upon the Forbearance Effective Date and for purposes of
calculating the accrual of interest on the Obligations from and after the Forbearance Effective
Date until the Forbearance Termination Date, Section 1 of the Secured Bridge Note will be modified
to read as follows:

5

 

All amounts outstanding hereunder shall bear interest (computed daily until paid,
prior to and after any bankruptcy or insolvency of the Borrower) at a per annum rate
equal to twelve (12.0%). Interest hereunder will be calculated, accrued, imposed
and payable on the basis of a 360-day year for the actual number of days elapsed.
Commencing on the Forbearance Effective Date and continuing thereafter, unless
prohibited by applicable law, (i) cash interest of $50,000 (or such lesser amount as
shall have accrued during the applicable calendar month), pro rata for any partial
month, shall be paid monthly in arrears on the first Business Day of the next
succeeding calendar month; and (ii) the entire remaining amount of interest, if any,
in excess of the cash interest paid pursuant to clause (i) above accrued during any
calendar month shall be paid-in-kind rather than in cash, with all such paid-in-kind
interest to accrue and compound monthly (by being added to the principal amount of
the Obligations) on the first Business Day of the next succeeding month. The
failure by the Borrower to pay the full amount of the accrued cash interest as and
when the same becomes due and payable each month pursuant to this Section 1 within
three (3) Business Days of the due date therefor shall constitute an immediate Event
of Default, and upon the occurrence of such Event of Default such unpaid accrued
cash interest shall immediately be deemed paid-in-kind and shall be added to the
principal amount of the Obligations retroactive to the first Business Day of such
month (in which such cash interest first became due) and the amount of interest that
shall have been deemed paid-in-kind in accordance with this paragraph shall accrue
and compound at the per annum rate of interest of eighteen percent (18.0%).

     6.2 The Borrower acknowledges, reaffirms and agrees that upon the Forbearance Termination
Date, effective immediately and without further notice, the foregoing modification will be of no
further force, and for purposes of calculating the accrual of interest on the Obligations from and
after the Forbearance Termination Date, Section 1 of the Secured Bridge Note will be re-instituted
as it was in effect immediately prior to the Forbearance Effective Date, with all accrued and
unpaid interest on the Obligations being immediately due and payable on demand.

     6.3 The Borrower shall comply and continue to comply with all of the terms, covenants and
provisions contained in the Secured Bridge Note, the Pledge Agreement and the other Loan Documents
and any other instruments evidencing or creating any Obligations, including, without limitation,
the delivery of all financial statements as required by Sections 11(a) and (b) of the Secured
Bridge Note, except as such terms, covenants and provisions are expressly modified by this
Agreement upon the terms set forth herein.

     6.4 The Borrower shall deliver to the Lender a copy of each compliance package, including
financial statements, compliance certificates and other deliverables, as applicable, delivered by
ABE Fairmont to CoBank as the administrative agent under the CoBank Loan Documents, in each case
concurrently, but in no event later than five days after the delivery thereof CoBank.

     6.5 Effective on the Forbearance Effective Date, the Borrower shall commence a private
offering of its common units in a single transaction or series of related transactions to

6

 

corporate, institutional or other investors, with the rights and obligations of such units to
be substantially the same as those of the Borrower’s issued and outstanding Units other than with
respect to the price of such Units (as defined in the Third Amended and Restated Operating
Agreement of the Borrower dated February 1, 2006 (the “Operating Agreement”)) (such offering of
units the “Equity Offering”). Upon the consummation of the Equity Offering, the Borrower shall pay
the full amount of the Equity Offering Net Proceeds received by the Borrower to the Lender,
provided that the amount of such Equity Offering Net Proceeds is at least $3,000,000. Upon
receipt of such Equity Offering Net Proceeds, such amount shall be applied to the Obligations as
follows: (a) to the payment of any fees and charges due under the Loan Documents, then (b) to any
obligations for the payment of expenses, costs and indemnities due under the Loan Documents, then
(c) to the payment of all other interest due and owing under Section 6.1 other than interest under
clause (ii), then (d) to payments of all paid-in-kind interest under clause (ii) of Section 6.1
accrued and not yet paid, to the extent such paid-in-kind has been added to principal, then (e) to
the principal indebtedness due under the Secured Bridge Note, then (f) to any other interest
accrued under the Secured Bridge Note other than as set forth in clauses (c) and (d) above, then
(g) to any other indebtedness of Borrower to Lender under the Loan Documents.

     6.6 On the date of and concurrently with the consummation of the Equity Offering (the
“Restated Note Effective Date”), provided that the Borrower has paid to the Lender the full
amount of the Equity Offering Net Proceeds received by the Borrower as provided in Section 6.5 and
provided further that the amount of the Equity Offering Net Proceeds is at least
$3,000,000, (a) the Borrower and the Lender shall enter into an Amended and Restated Secured Term
Loan Note in the form attached hereto as Annex B (the “Restated Note”), which
shall amend and restate and replace the Secured Bridge Note and (b) the Borrower shall issue to the
Lender a detachable warrant in the form attached hereto as Annex C (the “New Warrant”),
exercisable for Units of the Borrower at an exercise price equal to the price of the Units issued
in the Equity Offering, representing a percentage of the fully diluted equity interest in
the Borrower after giving effect to the Equity Offering equal to (i) 5.0%, if the amount of the
Equity Offering Net Proceeds is equal to or greater than $3,000,000 but less than $4,000,000; (ii)
4.5%, if the amount of the Equity Offering Net Proceeds is equal to or greater than $4,000,000 but
less than $5,000,000; (iii) 4.0%, if the amount of the Equity Offering Net Proceeds is equal to or
greater than $5,000,000 but less than $6,000,000; (iv) 3.5%, if the amount of the Equity Offering
Net Proceeds is equal to or greater than $6,000,000 but less than $7,000,000; and (v) 3.0%, if the
amount of the Equity Offering Net Proceeds is equal to or greater than $7,000,000.

     6.7 The Restated Note shall provide for principal reductions of the Secured Bridge Note when
certain amounts are released or otherwise paid to the Borrower from (a) the release of
approximately $2,500,000 of cash collateral (plus accrued interest thereon) (the “GSB Funds”)
securing reimbursement obligations with respect to an irrevocable standby letter of credit issued
by Geneva State Bank (“GSB”) for the benefit of West LB, AG and further account of the Borrower,
which GSB Funds are currently carried in and credited to a deposit account maintained by the
Borrower with Geneva State Bank (the “GSB Account”), (b) various tax and other investment and
employment credits and incentives from the State of Nebraska under the Nebraska Advantage Act (the
“Nebraska Funds”) and (c) annual distributions from ABE Fairmont made to the Borrower to the extent
permitted under the CoBank Loan Documents (the “ABE Fairmont Distributions”), all as further set
forth in the Restated Note. To effect the

7

 

foregoing, the Borrower shall open a deposit account with U.S. Bank, National Association (the
“Blocked Account”) which will be subject to a control agreement with the Lender in the form
attached hereto as Annex D (the “Control Agreement”). On the Restated Note Effective Date
the Borrower shall (a) direct GSB to deposit all GSB Funds into the Blocked Account as and when the
same are released by GSB, (b) direct the State of Nebraska to deposit the Nebraska Funds into the
Blocked Account as and when the same are paid or reimbursed by the State of Nebraska under the
Nebraska Advantage Act and (c) direct ABE Fairmont to pay the ABE Fairmont Distributions directly
to Lender rather than to Borrower.

     6.8 The Borrower represents and warrants that as of the Forbearance Effective Date, other than
the Lien of Geneva State Bank in the GSB Account and the GSB Funds, the Borrower owns the GSB
Account, the GSB Funds and the rights to the Nebraska Funds and the ABE Fairmont Distributions free
and clear of any Lien. Lender also understands that the State of Nebraska has certain rights under
Section 22 of that Nebraska Advantage Act Project Agreement dated as of August 13, 2007 between
Borrower and the State of Nebraska, by and through its Tax Commissioner. From and after the
Forbearance Effective Date, the Borrower will not, and will not permit any of its Subsidiaries to
(a) create, incur, permit, assume or suffer to exist, or agree or consent to cause or permit in the
future (upon the happening of a contingency or otherwise) any Lien upon the GSB Funds, the GSB
Account, the Blocked Account, the Nebraska Funds or the ABE Fairmont Distributions, or any income,
revenue or profits from any such property or assets, whether now owned or hereafter acquired, other
than as set forth in this Agreement, and (b) give any contrary instructions to GSB or the State of
Nebraska to deposit or disburse the GSB Funds or the Nebraska Funds, respectively, into any other
account or to any other Person other than to the Blocked Account.

     6.9 Notwithstanding anything to the contrary set forth in Section 13(ii) of the Secured Bridge
Note, effective on the Forbearance Effective Date until the Forbearance Termination Date, ABE
Heartland, LLC, a Delaware limited liability company, Dakota Fuels, Inc., a Delaware corporation
and Heartland Grain Fuels, L.P., a Delaware limited partnership, shall be excluded from the
definition of “Subsidiary” under the Secured Bridge Note.

     6.10 Section 2.1 of the Membership Unit Pledge Agreement is hereby amended to (i) deleted the
word “and” following the semi-colon at the end of clause (b), (ii) renumber clause “(c)” to be
clause “(d)” and (iii) insert the following new clause (c):

     (c) the deposit account (account number 1-523-0777-2839, as the same may be
renumbered from time to time) maintained by Pledgor with U.S. Bank National
Association and all funds from time to time maintained in or credited to such
deposit account; and

ARTICLE VII

Conditions Precedent to Effectiveness

     7.1 The satisfaction of each of the following shall constitute conditions precedent to the
effectiveness of this Agreement and each and every provision hereof, and this Agreement shall be
effective as of the date upon which such conditions precedent shall be fully and completely
satisfied (such date being the “Forbearance Effective Date”):

8

 

          (a) a copy of this Agreement shall have been originally executed by the Borrower and the
Lender;

          (b) the Borrower shall have paid $300,000 by wire transfer of immediately available funds to
the Lender to an account designated by the Lender, to be applied to pay a portion of the accrued
interest outstanding under the Secured Bridge Note;

          (c) the Borrower shall have paid $95,765.91 by wire transfer of immediately available funds to
the Lender to an account designated by the Lender, representing fees and expenses (including
attorneys’ fees) reimbursable pursuant to Section 11(u) of the Secured Bridge Note;

          (d) ABE Fairmont shall have entered into an amendment of the CoBank Loan Documents to amend,
among other things, Sections 11(A) and 11(B), respectively, of the Master Loan Agreement dated as
of November 20, 2006 between Farm Credit Services of America, FLCA and ABE Fairmont (as amended) to
provide for (i) a reduction of the minimum working capital amount to $8,000,000 through February
2010, increasing to $9,000,000 effective March 2010 through August 2010, then increasing to
$10,000,000 effective September 2010 and thereafter, and (ii) a minimum net worth test of not less
than $48,000,000, increasing to $49,000,000 effective March 2010 and further increasing to
$50,000,000 effective September 2010 and thereafter, and waiving action for anticipated violation
of the current $52,000,000 requirement for April 2009, so long as net worth is not less than
$48,000,000, such amendment to be in form and substance satisfactory to the Lender;

          (e) the Borrower shall have opened the Blocked Account with U.S. Bank, National Association
(“U.S. Bank”) and the Borrower, U.S. Bank and the Lender shall have entered into the Control
Agreement in form and substance reasonably satisfactory to the Lender; and

          (f) the Lender shall have received a complete copy of each compliance package, including
financial statements, compliance certificates and other deliverables, as applicable, delivered by
ABE Fairmont to CoBank as the administrative agent under the CoBank Loan Documents, as of and for
ABE Fairmont’s fiscal year ended September 30, 2008, fiscal quarter ended December 31, 2008 and, to
the extent previously delivered to CoBank, fiscal quarter ended March 31, 2009.

ARTICLE VIII

Other Matters; Entirety of Agreement

     8.1 The Borrower ratifies and affirms its reimbursement and indemnification obligations under
the Secured Bridge Note and the other Loan Documents, including Sections 11(u) and 15 of the
Secured Bridge Note, and including its obligation to pay all fees and expenses, including
reasonable attorneys’ fees and expenses, incurred by the Lender in connection with the negotiation,
implementation, execution and enforcement of this Agreement and any acts contemplated hereby.
Nothing herein shall be construed to limit, affect, modify or alter the Borrower’s obligations
under the Secured Bridge Note or elsewhere under the Loan Documents.

9

 

     8.2 At any time on or after the Forbearance Termination Date, the Lender shall be entitled to
exercise all rights and remedies available, whether under the Loan Documents or at law or in
equity, without further notice or demand.

     8.3 The Borrower and the Lender each understand that this Agreement is a legally binding
agreement that may affect such Person’s rights. Each represents to the other that it has received
legal advice from counsel of its choice in connection with the negotiation, drafting, meaning and
legal significance of this Agreement and that it is satisfied with its legal counsel and the advice
received from it. The Borrower has entered into this Agreement freely and voluntarily, without
coercion, duress, distress or undue influence by the Lender or any other person or entity,
affiliated with the Lender or any Lender Agent.

     8.4 Should any provision of this Agreement require judicial interpretation, it is agreed that
a court interpreting or construing the same shall not apply a presumption that the terms hereof
shall be more strictly construed against any party by reason of the rule of construction that a
document is to be construed more strictly against the party who itself or through its agent
prepared the same.

     8.5 When executed by the Borrower and the Lender, this Agreement shall be effective as to and
for the benefit of the Borrower and the Lender, and thereupon shall be binding upon and inure to
the benefit of each of such signatory parties and their respective heirs, successors and assigns,
except that the Borrower shall not have the right to assign its rights hereunder or any interest
herein without the prior written consent of the Lender.

     8.6 Section and subsection headings in this Agreement are included herein for convenience of
reference only and shall not constitute a part of this Agreement for any other purpose or be given
any substantive effect.

     8.7 In accordance with Section 5-1401 of the New York General Obligations Law, and except as
otherwise expressly provided in any of the Loan Documents, in all respects, including all matters
of construction, validity and performance, this Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of New York applicable to contracts made and
performed in such state without regard to the principles thereof regarding conflict of laws, and
any applicable laws of the United States of America.

     8.8 THE BORROWER HEREBY WAIVES ANY RIGHTS THAT IT MAY HAVE TO A JURY TRIAL WITH RESPECT TO ANY
ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE LOAN
DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND
OBLIGATIONS. Except as prohibited by law, the Borrower hereby waives any right that it may have to
claim or recover in any litigation referred to in the preceding sentence any special, exemplary,
punitive or consequential damages or any damages other than, or in addition to, actual damages.
The Borrower hereby (a) certifies that the Lender has not represented, expressly or otherwise, that
it would not, in the event of litigation, seek to enforce the foregoing waivers and (b)
acknowledges that the Lender has been induced to enter into this Agreement by, among other things,
the waivers and certifications herein.

10

 

     8.9 This Agreement, together with the other Loan Documents (exclusive of those provisions of
that letter agreement dated August 3, 2007 between the Borrower and Piper Jaffray & Co. that
survived the January 27, 2009 termination of the letter agreement), incorporates all negotiations
of the parties hereto with respect to the subject matter hereof and is the final expression and
agreement of the parties hereto with respect to the subject matter hereof.

     8.10 This Agreement may be executed in counterparts, each of which when so executed shall be
deemed an original, but all such counterparts together shall constitute but one and the same
instrument; signature pages may be detached from multiple separate counterparts and attached to a
single counterpart so that all signature pages are physically attached to the same document. Each
party executing this Agreement represents that such party has the full authority and legal power to
do so. This Agreement is not intended to confer any rights or benefits on any parties other than
the parties hereto and their respective successors and assigns. If any provision of this Agreement
shall be unenforceable under applicable law, such provision shall be ineffective without
invalidating the remaining provisions of this Agreement.

11

 

     IN WITNESS WHEREOF, this Forbearance Agreement is duly executed by the respective
duly authorized officers of the undersigned and delivered as of the date first written above.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Borrower	 	Advanced BioEnergy, llc,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard R. Peterson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard R. Peterson	 	 
	 

	 	 	 	Title:   CEO	 	 
	 
	 	 	 	 	 	 
	Lender	 	PJC Capital LLC,	 	 
	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert P. Rinek	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Robert P. Rinek	 	 
	 

	 	 	 	Co-President and Co-Chief Operating Officer	 	 

 

 

ANNEX A

SPECIFIED EVENTS OF DEFAULT

1. Borrower failed to deliver within 30 calendar days after the end of each month (including the
last month of each fiscal quarter and of each fiscal year) (a) consolidated financial statements
for Borrower and its Subsidiaries under Section 11(a) of the Secured Bridge Note and (b) a
certificate executed by the chief financial officer of Borrower certifying the items set forth in
Section 11(a) of the Secured Bridge Note, in each case for periods ending up through and including
March 30, 2009, which failure constituted an Event of Default under Section 13(q)(3) of the Secured
Bridge Note.

2. Borrower failed to deliver annual financial statements for Borrower and its Subsidiaries for the
year ended September 30, 2008 required by Section 11(b) of the Secured Bridge Note which failure
constituted an Event of Default under Section 13(q)(3) of the Secured Bridge Note.

3. Borrower received notice of certain violations from the NDEQ-Air Quality Division at its
Fairmont plant that may be a violation of Section 11(d) of the Secured Bridge Note, which
violations may constitute an Event of Default under Section 13(q)(3) of the Secured Bridge Note.
Remedial action has been taken, but there is the possibility of a fine being assessed.

4. Borrower has experienced issues with its molecular sieves at its Aberdeen, South Dakota plant
which may be a violation of Section 11(e) of the Secured Bridge Note and which may constitute an
Event of Default under Section 13(q)(3) of the Secured Bridge Note.

5. On December 24, 2008, Borrower entered into certain amendments to the CoBank Loan Documents
which impose more burdensome terms on Borrower without Lender’s consent in violation of Section
11(g)(viii) of the Secured Bridge Note, which constitutes an Event of Default under Section
13(q)(3) of the Secured Bridge Note.

6. Borrower failed to provide to Lender under Section 11(p) of the Secured Bridge Note written
notice of changes in senior management personnel within 20 days after any change (including the
termination of Donald Gales, suspension and termination of Revis Stephenson, the promotion of
Richard Peterson to interim Chief Executive Officer, and the termination of Perry Johnston), which
failure is an Event of Default under Section 13(q)(3) of the Secured Bridge Note.

7. Borrower failed to provide to Lender under Section 11(q) of the Secured Bridge Note with notice
in writing of threatened claims by Ethanol Capital Management, LLC and its Affiliates
(collectively, “ECM”) relating to the convertible note issued by Borrower to ECM which had a
purported amount in controversy in excess of $250,000, which failure is an Event of Default under
Section 13(q)(3) of the Secured Bridge Note.

8. Borrower failed to provide to Lender under Section 11(q) of the Secured Bridge Note with notice
in writing of Revis Stephenson’s demand for arbitration in connection with his termination of
employment which has a purported amount in controversy in excess of $250,000, which failure is an
Event of Default under Section 13(q)(3) of the Secured Bridge Note.

2

 

9. With respect to Specified Events of Default as defined in the Forbearance Agreement that
constitute a Default or Event of Default under the Secured Bridge Note, Borrower has not complied
with its obligation under Section 11(r) of the Secured Bridge Note to notify Lender in writing
promptly of such Default or Event of Default, which failure is an Event of Default under Section
13(q)(3) of the Secured Bridge Note.

10. Borrower’s failure to cure certain of the Specified Events of Default constitutes an Event of
Default under Section 13(q)(3) of the Secured Bridge Note.

11. Borrower failed to pay (a) interest accrued from the Maturity Date through the Forbearance
Effective Date under Section 1 of the Secured Bridge Note, and (b) fees and costs through the
Forbearance Effective Date under Section 11(u) of the Secured Bridge Note, each of which
constituted an Event of Default under Section 13(q)(1) of the Secured Bridge Note.

12. Borrower’s failure to pay amounts due under the Secured Bridge Notes constitutes an Event of
Default under Section 13(q)(5) of the Secured Bridge Note.

13. The inability of the Heartland Entities (as defined in the Forbearance Agreement) to pay when
due certain amounts and to otherwise comply with the covenants set forth in certain Indebtedness
constitutes an Event of Default under Section 13(q)(5) of the Secured Bridge Note.

14. Borrower has from time to time been in violation of its minimum net working capital and minimum
net worth covenants in its CoBank Loan Documents (as defined in the Forbearance Agreement) which
constitutes an Event of Default under Section 13(q)(8) of the Secured Bridge Note.

15. Borrower has not provided Lender with proper notice of events occurring which caused the number
and price of the Warrants to change which constitutes an Event of Default under Section 13(q)(11)
of the Secured Bridge Note.

16. Borrower’s defaults under the Secured Bridge Note and the defaults of the Heartland Entities
under certain Indebtedness could be deemed to be a Material Adverse Effect and an Event of Default
under Section 13(q)(12) of the Secured Bridge Note.

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SCHEDULE I

OUTSTANDING UNPAID AMOUNT OF PRINCIPAL AND

ACCRUED INTEREST; FEES, COSTS AND EXPENSES

as of April 24, 2009

	 	 	 	 	 
	Principal outstanding:
	 	$	10,000,000.00	 
	Accrued interest:
	 	$	2,563,332.26	 
	Per diem interest:
	 	$	6,207.18	 
	Attorneys fees, costs and expenses:
	 	$	73,766.57	 
	Printing, database and miscellaneous expenses
	 	$	5,000.00	 

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ANNEX B

FORM OF AMENDED AND RESTATED SECURED TERM LOAN NOTE

5

 

AMENDED AND RESTATED SECURED TERM LOAN NOTE

			
	 	 	 
	$[                    ]
	 	[                    ], 2009

Minneapolis, Minnesota

FOR VALUE RECEIVED, the undersigned, ADVANCED BIOENERGY, LLC, a Delaware limited liability company
(as more fully defined below, “Borrower”), hereby unconditionally promises to pay to the
order of PJC CAPITAL LLC, a Delaware limited liability company (including its successors, assigns,
pledgees, transferees and participants, collectively, “Lender”), on or before the Maturity
Date on the dates, in the manner and otherwise in accordance with the terms and conditions of this
Restated Note the principal sum of [                                                                      
                                                  ]
DOLLARS ($[                    ]), on the terms and conditions set forth in this Amended and Restated Secured
Term Loan Note (this “Restated Note”), together with all accrued but unpaid interest
thereon computed as set forth below and all unpaid fees, expenses, indemnities and other advances
connected herewith. Capitalized terms used but not otherwise defined herein shall have the meaning
given to them in Section 13.
This Restated Note amends and restates, and is being delivered in exchange for, that certain
Secured Term Loan Note dated as of October 17, 2007, in the original principal amount of
$10,000,000, made by Borrower in favor of Lender, as and to the extent modified by that Forbearance
Agreement dated June 1, 2009 (the “Forbearance Agreement”) between Lender and Borrower (as
so modified, the “Prior Note”). The original stated principal amount of this Restated Note
is equal to the sum of the original principal amount of the Prior Note plus all accrued and
capitalized interest on the Prior Note as of the date hereof, less the amount of principal
reductions made pursuant to the Forbearance Agreement. All amounts obligated to be paid by
Borrower pursuant to the Prior Note shall not be deemed extinguished by reason hereof but shall be
carried over from the Prior Note.

     1. Accrual and Imposition of Interest.

          (a) All amounts outstanding hereunder shall bear interest (computed daily until paid, both
prior to and after the Maturity Date and prior to and after any bankruptcy or insolvency of
Borrower) at a per annum rate equal to 10.0%. Upon the occurrence and during the continuation of
any Event of Default hereunder, to the maximum extent not prohibited by applicable law, Lender (at
Lender’s election) may increase the interest rate hereunder by 3.0% per annum in excess of the rate
then otherwise applicable hereunder (provided that, if the relevant default relates to the
insolvency or bankruptcy of Borrower, then such rate increase (to the maximum extent not prohibited
by applicable law) will occur automatically without any action by Lender). Interest hereunder will
be calculated, accrued, imposed and payable on the basis of a 360-day year for the actual number of
days elapsed.

          (b) Unless prohibited by applicable law, (i) cash interest of $50,000 (or such lesser amount
as shall have accrued during the applicable calendar month), pro rata for any partial month, shall
be paid monthly in arrears on the first Business Day of the next succeeding calendar month; and
(ii) the entire remaining amount of interest, if any, in excess of the cash interest paid pursuant
to clause (i) above accrued during any calendar month shall be paid-in-kind rather than in cash,
with all such paid-in-kind interest to accrue and compound monthly (by being added to the principal
amount of the Obligations) on the first Business Day of the next succeeding month.

 

          (c) The failure by Borrower to pay the full amount of the accrued cash interest as and when
the same becomes due and payable each month pursuant to this Section 1 within three (3)
Business Days of the due date therefor shall constitute an immediate Event of Default, and upon the
occurrence of such Event of Default such unpaid accrued cash interest shall be immediately deemed
paid-in-kind and shall be added to the principal amount of the Obligations retroactive to the first
Business Day of such month (in which such cash interest first became due) and the amount of
interest that shall have been deemed paid-in-kind in accordance with this paragraph shall accrue
and compound at the per annum rate of interest of eighteen percent (18.0%).

     2. Payments at Maturity. Borrower shall pay Lender the entire outstanding balance
hereunder together with all accrued but unpaid interest hereunder and all fees, expenses,
indemnities and other advances in connection herewith or any other Loan Document on the date of the
earlier to occur of the following (the “Maturity Date”): (a) [                                        ], 2012 [date
that is three years from date of note to be inserted], and (b) the occurrence of a Change
of Control and (c) the date of acceleration of the maturity of the Obligations pursuant to
Section 14 (whether automatically or at Lender’s election after notice to Borrower)
following the occurrence of an Event of Default.

     3. Voluntary Prepayments. At any time, upon advance written notice to Lender of at
least 3 Business Days, Borrower may prepay outstanding balances hereunder in whole or in part
without penalty or premium. Any voluntary partial prepayment must be in an amount of not less than
$100,000 (or such lesser amount equal to the then outstanding principal balance of this Restated
Note) or in multiples of $25,000 in excess thereof. Amounts prepaid pursuant to this Section
3 shall be applied to the Obligations in accordance with Section 7.

     4. Mandatory Prepayments.

          (a) Net Cash Proceeds. If Borrower or ABE Fairmont (i) sells, leases, licenses
pursuant to an exclusive license, transfers or otherwise disposes of any assets (other than (A)
inventory sold in the ordinary course of business and (B) other dispositions of assets not
exceeding an aggregate fair market value of $1,000,000 during any 12 consecutive calendar month
period), (ii) issues any Equity Interests (other than “Excluded Units”, as such term is defined in
the Warrant as in effect on the date hereof) or (iii) issues any debt securities or notes (other
than Indebtedness permitted hereunder), Borrower shall (except for Net Cash Proceeds of
dispositions of assets of ABE Fairmont that are required to be applied pursuant to the applicable
mandatory prepayment provisions relating to dispositions of assets of ABE Fairmont either under the
CoBank Loan Documents or the Wells Fargo Loan Documents, in each case as in effect on the date
funds are first advanced under this Restated Note) immediately prepay the outstanding Obligations
under this Restated Note without penalty or premium in an amount equal to 100% of the resulting Net
Cash Proceeds from such sale or other disposition of assets or such issuance of equity or debt
securities, as the case may be. Net Cash Proceeds prepaid pursuant to this Section 4 shall
be applied to the Obligations in accordance with Section 7.

          (b) GSB Letter of Credit Cash Collateral. There is outstanding as of the date hereof
an irrevocable standby letter of credit dated March 31, 2008 in the stated face amount of
$2,500,000 issued by Geneva State Bank (“GSB”) for the account of Borrower and for the
benefit of WestLB AG, New York Branch, which expires on March 31, 2010 (the “GSB Letter of
Credit”). Borrower’s reimbursement obligation under the GSB Letter of Credit is secured by
cash collateral deposited by Borrower with GSB in a deposit account (the “GSB Deposit
Account”) in the amount of $2,500,000 plus accrued interest (the “GSB Letter of Credit Cash
Collateral”). Immediately upon release by GSB of all or any portion of the GSB Letter of
Credit Cash Collateral as collateral for the GSB Letter of Credit at any time or from time to time,
whether such release is upon expiration of the GSB Letter of Credit or otherwise, Borrower shall
immediately pay or cause to be paid to Lender the full amount of GSB Letter of

2

 

Credit Cash Collateral released by GSB until Lender has received an aggregate of $1,700,000
(the “Lender Portion”). To effect the foregoing, Borrower has opened a deposit account
with U.S. Bank, National Association (the “Blocked Account”) which shall be subject to a
control agreement in favor of Lender in the form attached to the Forbearance Agreement as Annex D
thereto (the “Control Agreement”) for the purpose of depositing, among other things, the
GSB Letter of Credit Cash Collateral when released by GSB. Borrower shall, effective on the date
hereof, instruct GSB in writing in the form attached hereto as Exhibit A (the “GSB
Instruction Letter”) that the GSB Letter of Credit Cash Collateral shall be disbursed by GSB to
Borrower at the Blocked Account, which instructions shall contain the acknowledgment of GSB that it
shall not send the GSB Letter of Credit Cash Collateral to Borrower or to any other account or
Person other than to Borrower at the Blocked Account without the prior written consent of Lender.
Borrower shall not give any instructions to GSB inconsistent with the GSB Instruction Letter.
After the Lender Portion has been paid into the Blocked Account and such Lender Portion has been
received by Lender from the Blocked Account, Lender shall (i) deliver written instructions to GSB
authorizing Borrower to direct the payment of all further releases of GSB Letter of Credit Cash
Collateral without need for written consent from Lender and (ii) promptly authorize the withdrawal
by Borrower of all GSB Letter of Credit Cash Collateral paid into the Blocked Account in excess of
the Lender Portion pursuant to instructions confirmed by Lender (as to such excess amount).
Borrower shall execute and deliver such other agreements and documents and take such other actions
as Lender shall reasonably request in order to effect the distribution of the GSB Letter of Credit
Cash Collateral as set forth in this Section 4(b).

          (c) Nebraska Advantage Act Payments. Borrower currently participates in a program
under the State of Nebraska Advantage Act pursuant to that Nebraska Advantage Act Project Agreement
dated as of August 13, 2007 between Borrower and the State of Nebraska, by and through its Tax
Commissioner (the “NAA Agreement”). Pursuant to the NAA Agreement, Borrower expects to
receive certain payments and credits for various tax and other related investment and employment
credits and incentives (the “NAA Payments”) from the State of Nebraska Department of
Revenue (the “Nebraska DOR”). Immediately upon receipt by Borrower of any NAA Payment from
time to time from the Nebraska DOR with respect to the NAA Agreement, Borrower shall immediately
pay or cause to be paid to Lender the full amount of such NAA Payment, to be applied to the
Obligations in accordance with Section 7. To effect the foregoing, Borrower shall,
effective on the date hereof, instruct the Nebraska DOR in writing in the form attached hereto as
Exhibit B (the “Nebraska Instruction Letter”) that all NAA Payments from time to
time shall be disbursed by the Nebraska DOR to Borrower at the Blocked Account. Borrower shall not
give any instructions to the Nebraska DOR inconsistent with the Nebraska Instruction Letter. If
any payment by the Nebraska DOR is not paid to the Blocked Account pursuant to the Nebraska
Instruction Letter, Borrower shall, immediately upon the making of such payment by the Nebraska
DOR, cause such payment to be deposited into the Blocked Account. Borrower shall give written
notice to Lender within two (2) Business Days of (i) the making of any request for NAA Payments by
Borrower, and (ii) the acknowledgment of, or payment by, the State of Nebraska of any NAA Payments,
in each case in reasonable detail. Borrower shall execute and deliver such other agreements and
documents and take such other actions as Lender shall reasonably request in order to effect the
distribution of the NAA Payments as set forth in this Section 4(c).

          (d) ABE Fairmont Distributions. Beginning with the fiscal year of Borrower and ABE
Fairmont ended September 30, 2009, Borrower shall calculate “net profit” (as defined in the Section
10(K) of the 11/20/06 MLA) of ABE Fairmont for such fiscal year, and shall provide evidence to
Lender in reasonable detail of such calculation no later than 10 Business Days after the end of
such fiscal year. If such net profit is a positive number, and so long as such distribution is
permitted by the CoBank Loan Documents, Borrower shall cause ABE Fairmont to distribute forty
percent (40.0%) of such net profit (or if less than sixty percent (60.0%) of the net profit is
required by the CoBank Loan Documents to be retained by ABE Fairmont, than such greater percentage
as is not required to be retained) (each such

3

 

payment, an “ABE Fairmont Distribution”) no later than the date that the audited
financial statements of ABE Fairmont for such fiscal year are delivered to CoBank, to Lender by
causing ABE Fairmont to pay the full amount of such ABE Fairmont Distribution directly to Lender,
to be applied to the Obligations in accordance with Section 7. To effect the foregoing,
Borrower shall, effective on the date hereof, instruct ABE Fairmont in writing in the form attached
hereto as Exhibit C (the “ABE Fairmont Instruction Letter”) that all ABE Fairmont
Distributions from time to time shall be distributed by ABE Fairmont directly to Lender at an
account set forth in such ABE Fairmont Instruction Letter, which instructions shall contain the
acknowledgment of ABE Fairmont that it shall not send any ABE Fairmont Distributions to Borrower or
to any other account or Person other than to Lender at the account specified in the ABE Fairmont
Instruction Letter without the prior written consent of Lender. Borrower shall not give any
instructions to ABE Fairmont inconsistent with the ABE Fairmont Instruction Letter. Borrower shall
execute and deliver such other agreements and documents and take such other actions as Lender shall
reasonably request in order to effect the distribution of the ABE Fairmont Distributions as set
forth in this Section 4(d).

          (e) Additional Principal Payments. If at any time the interest on this Restated Note
accrued during any month is less than $50,000 (pro rata for any partial month), Borrower shall pay
to Lender the difference between $50,000 (or such pro rata portion thereof) and the interest
accruing on this Restated Note during such month, to be applied to the Obligations in accordance
with Section 7.

     5. Funding Advances. At the written request and expense of Borrower, Lender will wire
transfer all or any portion of the advances hereunder in accordance with written instructions
therefor. By executing this Restated Note, Borrower hereby requests Lender to make and fund the
initial advances in accordance with the funding instructions that have been provided to Lender in
writing.

     6. Mechanics of Payment. All payments and other amounts due hereunder must be
received by Lender by wire transfer in immediately available funds in Dollars (and without any
deduction, offset, netting, counterclaim or reservation of rights) on or before 2:00 p.m. Central
Time on the due date therefor at the principal office of Lender located at 800 Nicollet Mall,
Minneapolis, MN 55402, Attention Tim Carter or Greg Meyer, or at such other location as Lender at
any time or from time to time may designate to Borrower in writing. Any funds received by Lender
after 2:00 p.m. Central Time on any day will be deemed to be received on the next succeeding
Business Day. Whenever any payment to be made hereunder is due on a day that is not a Business
Day, then such payment may be made on the next succeeding Business Day, and such extension of time
will be included in the computation of interest due hereunder.

     7. Application of Payments. All payments and other funds received by Lender hereunder
will be applied in the following order: (a) to the payment of any fees and charges due under the
Loan Documents, then (b) to any obligations for the payment of expenses, costs and
indemnities due under the Loan Documents, then (c) to the payment of all other interest due
and owing under Section 1(b) other than interest under Section 1(b)(ii), then (d)
to payments of all paid-in-kind interest under Section 1(b)(ii) accrued and not yet paid,
to the extent such paid-in-kind has been added to principal, then (e) to the principal
indebtedness due hereunder, then (f) to any other interest accrued hereunder other than as
set forth in clauses (c) and (d) above, then (g) to any other indebtedness
of Borrower to Lender under the Loan Documents.

     8. Capital Adequacy, Taxes and Other Adjustments. If Lender determines that (a) the
adoption, implementation or interpretation after the date hereof of any law, treaty, governmental
(or quasi-governmental) rule, regulation, guideline, directive, policy or order regarding capital
adequacy, reserve requirements, taxes or similar requirements, or (b) the compliance by Lender or
any entity controlling or funding the operations of Lender with any request or directive regarding
capital adequacy,

4

 

reserve requirements, taxes or similar requirements (whether or not having the force of law
and whether or not failure to comply therewith would be unlawful) from any central bank,
governmental agency, controlling entity, funding source or body, in either instance, would have the
effect of increasing the amount of capital, reserves, taxes, funding costs or other funds required
to be maintained or paid by Lender and thereby have the effect of reducing the rate of return on
Lender’s capital as a consequence of its obligations hereunder, then Borrower must pay to Lender
additional amounts sufficient to compensate Lender for such reduction. Lender will notify Borrower
of any such determination and payment amount within a reasonable period of time thereafter, and
(upon written request) Lender will furnish a statement setting forth the basis and the method for
determining the amount of such payment. Any such determination or calculation by Lender will be
conclusive absent manifest error.

     9. Miscellaneous Additional Payment Terms, Including Ability to Re-Borrow. Principal
amounts repaid or prepaid hereunder will not be available for re-borrowing under the terms hereof.
To the extent Lender notes the date or amount of any payment hereunder on a schedule annexed
hereto, then such notations shall constitute prima facie evidence of the information noted on such
schedule, but the failure of Lender to make any such notation will not limit or otherwise affect
the obligations or liabilities of Borrower hereunder.

     10. Usury Savings Provision. Notwithstanding any provision of any Loan Document,
Borrower shall not be required to pay interest at a rate or any fee or charge in an amount
prohibited by applicable law. If interest or any fee or charge payable on any date would be in a
prohibited amount, then such interest, fee or charge will be automatically reduced to the maximum
amount that is not prohibited, and any interest, fee or charge for subsequent periods (to the
extent not prohibited by applicable law) will be increased accordingly until Lender receives
payment of the full amount of each such reduction. To the extent that any prohibited amount is
actually received by Lender, then such amount will be automatically deemed to constitute a
repayment of principal indebtedness hereunder.

     11. Affirmative and Negative Covenants. Borrower hereby covenants and agrees that,
until this Restated Note has been Paid in Full, Borrower will comply with the following covenants:

          (a) Delivery of Periodic Financial Information. Within 30 calendar days after the end
of each month (including the last month of each fiscal quarter and of each fiscal year), Borrower
shall deliver to Lender a set of consolidated financial statements for such immediately preceding
month (in form and substance reasonably acceptable to Lender) including a balance sheet, income
statement and statement of cash flows for Borrower and its Subsidiaries (with appropriate exhibits
and schedules). Together with the monthly financial statements, Lender must also receive a
certificate executed by the chief financial officer of Borrower as is acceptable to Lender
(1) stating that the financial statements have been prepared in accordance with GAAP (except for
the absence of footnotes and for customary, nonmaterial year-end adjustments) and fairly present
the consolidated financial condition of Borrower and its Subsidiaries as of the date thereof and
for the periods covered thereby and (2) certifying that as of the date of such certificate there is
not any existing Default or Event of Default. In addition, Borrower shall deliver to Lender a copy
of each compliance package, including financial statements, compliance certificates and other
deliverables, as applicable, delivered by ABE Fairmont to CoBank as the administrative agent under
the CoBank Loan Documents, concurrently, but in no event later than five (5) days after the
delivery thereof to CoBank.

          (b) Delivery of Financial Statements. Within 90 calendar days after each fiscal year,
Borrower shall deliver to Lender a complete set of annual consolidated and consolidating financial
statements for Borrower and its Subsidiaries (with accompanying notes), in reasonable detail and in
comparative form. Such financial statements (1) must be prepared in accordance with GAAP
consistently applied, and (2) must be audited by McGladrey & Pullen, LLP or another
independent certified public

5

 

accounting firm satisfactory to Lender. Together with the annual financial statements, Lender
must also receive all related management letters, if any, prepared by such accountants, and such
financial statements shall be accompanied by a report of such accountants, which report shall be
without limitation as to the scope of the audit and shall state that such financial statements
present fairly, in all material respects, the financial position of Borrower and its Subsidiaries
in conformity with GAAP as of the date thereof and for the periods covered thereby.

          (c) Other Information; Access. At Borrower’s expense, upon request by Lender,
Borrower will, and will cause ABE Fairmont to, during normal business hours, permit Lender and its
representatives to visit and inspect any of their respective properties, to examine and make
abstracts or copies from any of their respective books and records (whether in the possession of
Borrower or a third party) and to discuss their respective operations, affairs, finances and
accounts with their respective management personnel, officers, employees and independent public
accountants. In addition to the foregoing, from time to time, Borrower shall provide Lender with
any other information (financial or otherwise) about Borrower or any of its Subsidiaries reasonably
requested by Lender.

          (d) Compliance with Laws; Existence and Good Standing. Borrower shall, and shall
cause each of its Subsidiaries to, comply in all material respects with all laws, rules,
regulations and orders (federal, state, local and otherwise) that are applicable to Borrower, or
any Subsidiary of Borrower, including all applicable Environmental Control Statutes and ERISA.
Borrower shall, and shall cause each of Subsidiaries to, preserve and maintain (1) such Person’s
existence as an organization in good standing under the applicable laws of such Person’s
jurisdiction of organization, and (2) such Person’s qualification in good standing to
conduct business in all jurisdictions where it conducts business and as to which the failure to be
in good standing could reasonably be expected to have a Material Adverse Effect, and (3)
the validity of all such Person’s authorizations and licenses required or otherwise appropriate in
the conduct of such Person’s businesses and as to which the failure to have such valid
authorization or license could reasonably be expected to have a Material Adverse Effect.

          (e) Books and Records; Maintenance of Properties. Borrower shall, and shall cause
each of Subsidiaries to, keep and maintain accurate books and records of account in accordance with
GAAP. Borrower shall, and shall cause each of Subsidiaries to, keep, maintain and preserve all of
its material assets in good order and repair (ordinary wear and tear excepted) and fully insured by
reputable and financially sound insurance companies with coverages that are customary for
Borrower’s or such Subsidiary’s industry (and reasonably acceptable to Lender).

          (f) Transactions with Affiliates. Borrower shall not, and shall not permit any of its
Subsidiaries to, engage in any transaction (including employment, management and/or other
compensation arrangements) with any Person who is an Affiliate of Borrower or any of its
Subsidiaries other than (a) reasonable and customary compensation arrangements in the ordinary
course of business with its officers and directors, to the extent permitted hereunder and
(b) transactions on a basis no more favorable to such Affiliate then would be obtained in a
comparable arm’s length transaction with a Person not an Affiliate of Borrower or any of its
Subsidiaries and disclosed to Lender in writing prior to entering into any such transaction.

          (g) Indebtedness and Guaranties. Borrower shall not, and shall not permit ABE
Fairmont to, (1) create, incur, assume or permit to exist any additional Indebtedness or
liabilities or (2) guarantee, assume or otherwise be or agree to become directly or
indirectly liable in any way for any additional indebtedness or liability of any other Person,
except (i) Indebtedness and guarantees in favor of Lender; (ii) trade debt and customary operating
expenses incurred and paid by such Person in the normal and ordinary course of business;
(iii) Indebtedness incurred to purchase fixed or capital assets and Capital Leases, consistent with
the restrictions and conditions in Section 11(h)(2), provided that the aggregate

6

 

amount of such Indebtedness outstanding under this clause (iii) at any time may not exceed
$3,000,000; (iv) Indebtedness under the CoBank Loan Documents in an amount not to exceed
$93,650,000 in the aggregate outstanding at any time; (v) the Indebtedness listed on
Schedule 11(g) attached to this Restated Note; (vi) Indebtedness under the Wells Fargo
Documents in an amount not to exceed $7,000,000 in the aggregate outstanding at any time; and (vii)
extensions, refinancings and renewals of any of the Indebtedness permitted by the foregoing
clauses, provided that the principal amount of such Indebtedness shall not be increased or
the terms of such Indebtedness modified to impose more burdensome terms upon Borrower or any of its
Subsidiaries.

          (h) Liens. Borrower shall not, and shall not permit ABE Fairmont to, create, permit
or suffer the creation or existence of any Liens on any of its property or assets (real or
personal, tangible or intangible), except (1) Liens in favor of Lender; (2) Liens arising
in favor of sellers, lessors or other financial institutions for indebtedness and obligations
incurred to purchase or lease fixed or capital assets as permitted under Section
11(g)(iii), provided that such Liens secure only the indebtedness and obligations
created thereunder (but not any related monetary obligations under non-compete and consulting
arrangements) and are limited to the assets purchased or leased pursuant thereto and the proceeds
thereof; (3) Liens for taxes, assessments or other governmental charges (federal, state or local)
that are not yet delinquent or that are then being currently contested in good faith by appropriate
proceedings diligently prosecuted, provided that (i) adequate reserves therefor in
accordance with GAAP have been established, and (ii) such Liens could not reasonably be
expected to have or cause a Material Adverse Effect, (4) deposits or pledges made in the ordinary
course of business to secure obligations which are not overdue in respect of under workmen’s
compensation, unemployment insurance or social security laws or similar legislation; (5) deposits
to secure performance or payment bonds, bids, tenders, contracts, leases, franchises or public and
statutory obligations required in the ordinary course of business; (6) statutory or common law
liens of carriers, warehousemen, mechanics, suppliers, materialmen, repairmen, and landlords
incurred in the ordinary course of business and in existence less than 120 days from the date of
creation thereof in respect of obligations not past due or sums being currently contested in good
faith by appropriate proceedings diligently prosecuted, provided that (A) adequate reserves
therefor in accordance with GAAP must have been established, and (B) such Liens could not
reasonably be expected to have or cause a Material Adverse Effect; (7) easements, rights-of-way,
restrictions and other similar encumbrances on real property owned or leased by Borrower and
encumbrances evidencing the ownership interest or title of any owner or lessor with respect to real
property leased by Borrower, provided that such Liens do not in the aggregate materially
interfere with the occupation, use or enjoyment by Borrower of the property or assets encumbered
thereby in the normal course of business or materially impair the value of the property subject
thereto; (8) Liens securing Indebtedness permitted by Section 11(g)(iv) or Section
11(g)(vi); (9) the Liens listed on Schedule 11(h) attached to this Restated Note; (10)
Liens arising from judgments, decrees or attachments that do not constitute an Event of Default;
(11) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment
of customs duties in connection with the importation of goods; (12) Liens arising solely by virtue
of any statutory or common law provision relating to banker’s liens, rights of setoff or similar
rights and remedies as to deposit accounts or other funds maintained with a creditor depository
institution; (13) Liens in favor of a depository bank or a securities intermediary pursuant to such
depository bank’s or securities intermediary’s customary customer account agreement; provided that
any such Liens shall at no time secure any indebtedness or obligations other than customary fees
and charges payable to such depository bank or securities intermediary; and (14) Liens incurred in
connection with the extension, renewal or refinancing of indebtedness secured by Liens permitted
under the preceding clauses, provided that any extension, renewal or replacement Lien shall be
limited to the property encumbered by the existing Lien and the principal amount of the
indebtedness being extended, renewed or refinanced does not increase. Lender also understands that
the State of Nebraska has certain rights under Section 22 of the NAA Agreement.

7

 

          (i) Investments, Acquisitions and Loans. Borrower shall not, and shall not permit ABE
Fairmont to, purchase or otherwise acquire (including by way of share exchange) any part or share
of the Equity Interests or equity ownership of, or acquire all or substantially all of the assets
or any division or similar operating unit of, guaranty any Indebtedness of, or make any loan,
advance or extension of credit to, or contribute to the capital of, or make or permit to exist any
contribution, investment in or other interest in, any other Person (collectively,
“Investments”), except for: (1) government and agency securities backed by the full
faith and credit of the U.S. federal government; (2) commercial paper of a U.S. domestic issuer
rated at least A-1+ or A-1 by Standard & Poor’s Ratings Group or at least P-1 by Moody’s Investor
Services, Inc. and maturing not more than 90 calendar days from the date of acquisition thereof;
(3) certificates of deposit (maturing within 12 calendar months after the date of issuance), time
deposits, other deposits and bankers’ acceptances issued by or established with U.S. federally
insured commercial banks rated as “well capitalized” by their primary federal regulators, and
having unimpaired capital and unimpaired surplus (collectively) of at least $250,000,000, and whose
commercial paper (or commercial paper that is supported by such bank’s letter of credit or
commitment to lend) is rated at least A-1+ or A-1 by Standard & Poor’s Ratings Group or at least
P-1 by Moody’s Investor Services, Inc.; (4) loans and advances to employees of Borrower or any of
its Subsidiaries in the ordinary course of business not to exceed an aggregate principal amount of
$100,000 at any time outstanding; (5) Investments set forth on Schedule 11(i) attached to
this Restated Note; (6) Investments in Subsidiaries and in the Heartland Entities existing as of
the date of this Restated Note; and (7) repurchases of Equity Interests from former employees or
managers of Borrower under the terms of applicable repurchase agreements, including repurchases
effected by the cancellation of indebtedness owed to such former employees of Borrower, in an
aggregate amount not to exceed $100,000 during the term of this Restated Note, provided
that no Event of Default has occurred, is continuing or would exist after giving effect to such
repurchases or cancellation of indebtedness.

          (j) Transfer of Assets. Borrower shall not, and shall not permit ABE Fairmont to,
sell, lease, license pursuant to an exclusive license (whether or not fully paid up front),
transfer or otherwise dispose of all or a substantial part of its assets or any asset the loss of
which could reasonably be expected to have or cause a Material Adverse Effect. In addition,
Borrower shall not, and shall not permit any of its Subsidiaries to, sell, lease, license, transfer
or otherwise dispose of any asset other than (1) pursuant to a transaction with an unrelated third
party in the normal and ordinary course of business for value received and otherwise in accordance
with the terms hereof that (together with all other transactions during the immediately preceding
12 consecutive calendar months) has a fair market value aggregating less than $1,000,000,
provided that no Default or Event of Default is then occurring or would otherwise be caused
thereby; (2) with respect to obsolete or replaced equipment no longer useful in the operation of
Borrower’s or any Subsidiary’s business, pursuant to a reasonable and customary transaction with an
unrelated third party and otherwise in accordance with the terms hereof; or (3) dispositions of
inventory, or used, worn-out or surplus property, all in the ordinary course of business. Borrower
shall not, and shall not permit any of its Subsidiaries to, enter into any sale-lease back
transaction with respect to any of their respective assets.

          (k) Dividends, Distributions and Redemptions. Except as permitted by
Section 11(i)(9), Borrower shall not declare or make (directly or indirectly) any payment
or distribution with respect to, or incur any liability for the purchase, acquisition, redemption
or retirement of, any of its equity interests (including warrants therefor) or as a dividend,
return of capital or other payment or distribution of any kind to any holder of any such equity
interest. Notwithstanding the foregoing, so long as no Default or Event of Default then exists
under the Loan Documents or would otherwise be caused by the payment of such dividend, Borrower may
declare and distribute reasonable and lawful dividends to the holders of its equity securities for
the sole purpose of making Tax Distributions to such holders of its Equity Interests.

8

 

          (l) New Ventures; Mergers. Borrower shall not, and shall not permit ABE Fairmont to,
(1) enter into any new business activities or ventures not directly related to its current
business; (2) merge or consolidate with or into any other corporation, partnership, limited
liability company or other organization; or (3) create or acquire (or cause or permit the creation
or acquisition of) any Subsidiary.

          (m) Modifications to Organizational Documents. Borrower shall not, and shall not
permit ABE Fairmont to, (1) amend or otherwise modify any of its Organizational Documents, or (2)
change its legal or official name, its operating names or the names under which it executes
contracts and conducts business, in each instance, if such amendment or change could reasonably be
expected to have or cause an adverse effect (including any adverse affect on the attachment or
perfection of any pledge or security interest in favor of Lender).

          (n) General Insurance Provisions. Borrower shall, and shall cause ABE Fairmont to,
keep all of their respective property and assets fully covered by insurance with reputable and
financially sound insurance companies (reasonably acceptable to Lender), and also maintain such
protection against such hazards and liability in such amounts and with such deductibles as is
customary in the industry of Borrower or ABE Fairmont and appropriate under the relevant
circumstances and, on the date that is 5 Business Days from the date hereof, and at all times
thereafter, shall name (with appropriate endorsements) Lender as an additional insured with respect
to policies of liability insurance. Upon Lender’s request, Borrower from time to time will furnish
Lender with proof of such insurance, in form and substance acceptable to Lender, and a copy of the
related policy or policies.

          (o) Taxes. Borrower shall, and shall cause ABE Fairmont to, pay and discharge all
material taxes, assessments or other governmental charges or levies imposed on it or any of its
property or assets prior to the date upon which any penalty for non-payment or late payment is
incurred, unless the same are then being contested in good faith by appropriate proceedings
diligently prosecuted, adequate reserves therefor have been established in accordance with GAAP,
and the consequences of such non-payment could not reasonably be expected to have a Material
Adverse Effect.

          (p) Management Changes. Borrower shall notify Lender in writing within 20 days after
any change (including any dismissal or change in title or status) in the senior management
personnel of Borrower or ABE Fairmont.

          (q) Litigation and Administrative Proceedings. Borrower shall notify Lender in
writing promptly upon the institution or commencement of any litigation, legal or administrative
proceeding, any arbitration proceeding, or any labor controversy against or involving Borrower or
any of its Subsidiaries (1) with a purported amount in controversy in excess of $250,000 (in excess
of the amount of any insurance coverage as to which the applicable insurer has accepted tender) or
(2) that could otherwise, if adversely determined, reasonably be expected to have or cause a
Material Adverse Effect.

          (r) Monitoring Compliance. Borrower shall notify Lender in writing promptly, but in
any event within 5 calendar days, after obtaining knowledge of the occurrence or existence of any
Default or Event of Default hereunder.

          (s) Margin Stock Restrictions; Other Federal Statutes. Borrower shall not, and shall
not permit ABE Fairmont to, use any of the proceeds hereunder, directly or indirectly, to purchase
or carry, or to reduce or retire any indebtedness that was originally incurred to purchase or
carry, any “Margin Stock” or for any other purpose that might constitute the transactions
contemplated hereby as a “Purpose Credit” within the meaning of the Board of Governors of the
Federal Reserve Systems’ Margin Regulations. Borrower shall not, and shall not permit ABE Fairmont
to, engage as its principal business in the extension of credit for purchasing or carrying Margin
Stock. Borrower shall not, and shall not

9

 

permit ABE Fairmont to, cause or permit any Loan Document to violate any other regulation of
the Board of Governors of the Federal Reserve System or the Securities and Exchange Commission or
any provision of the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment
Company Act of 1940 or the Small Business Investment Act of 1958, each as amended, or any rules or
regulations promulgated under any of such statutes.

          (t) Further Assurances. From time to time, Borrower shall, and shall cause ABE
Fairmont to, execute and deliver (or will cause to be executed and delivered) such supplements,
amendments, modifications to and/or replacements of the Loan Documents and such further instruments
as may be reasonably required or reasonably requested by Lender to effectuate the intention of the
parties to (or to otherwise facilitate the performance of) the Loan Documents.

          (u) Costs and Expenses. Borrower shall pay or reimburse Lender for all fees and costs
(including all reasonable attorneys’ fees and disbursements) that Lender may pay or incur in
connection with (1) the preparation, negotiation and review of the Loan Documents, any waivers,
consents and amendments in connection herewith or therewith and all other documentation related
hereto or thereto, (2) the initial and continuing perfection or protection of Lender’s interest in
any of the Collateral, (3) the collection or enforcement of any of the Loan Documents, (4) the
periodic examination of the books, records and operations of Borrower and its Subsidiaries
(including with respect to the Collateral), and (5) Lender’s release of its interests in the
Collateral in accordance with the terms of the Loan Documents. Borrower shall pay any and all
recordation taxes or other fees due upon the filing of the financing statements or documents of
similar effect required to be filed under the Loan Documents, and shall provide Lender with a copy
of any receipt or other evidence reflecting such payments. All obligations provided for in this
Section 11(u) shall survive the termination of this Restated Note and the repayment of the
Obligations hereunder.

          (v) Negative Pledge. Borrower shall not, and shall not permit any of its Subsidiaries
to create, incur, permit, assume or suffer to exist, or agree or consent to cause or permit in the
future (upon the happening of a contingency or otherwise) any Lien upon the GSB Letter of Credit
Cash Collateral, the GSB Deposit Account, the Blocked Account, the NAA Payments or the ABE Fairmont
Distributions, or any income, revenue or profits from any such property or assets, whether now
owned or hereafter acquired, other than as set forth in this Restated Note or in the other Loan
Documents. Lender also understands that the State of Nebraska has certain rights under Section 22
of the NAA Agreement.

          (w) Closing Conditions. The effectiveness of this Restated Note is subject to the
satisfaction or waiver, on or before the date hereof, of the following conditions:

               (i) Note. Borrower shall have duly executed and delivered this Restated Note to
Lender.

               (ii) Other Documents. Borrower and ABE Fairmont shall have duly executed and
delivered the other Loan Documents together with such other certificates, documents and agreements
as Lender may reasonably request, and Borrower shall have delivered to Lender the Control
Agreement, the GSB Instruction Letter and the Nebraska Instruction Letter, in each case duly
executed by all parties thereto.

               (iii) Representations and Warranties; No Default. The representations and warranties
contained in Section 12 and in the other Loan Documents shall be true on and as of the date
hereof, both immediately before and immediately after giving effect to the consummation of the
transactions contemplated hereby and there shall exist on such day no Default or Event of Default,
both

10

 

immediately before and immediately after giving effect to the consummation of the transactions
contemplated hereby.

               (iv) Opinion. Lender shall have received from Faegre & Benson, counsel to Borrower
and ABE Fairmont, an opinion letter regarding the Loan Documents and the financing transaction
contemplated thereby, in form and substance satisfactory to Lender.

               (v) Compliance with Laws. The advance of the funds as contemplated by this Restated
Note on the terms and conditions herein provided (including the use of the proceeds thereof by
Borrower) and the issuance of the Warrant and the Prior Warrant shall not violate any applicable
law or governmental regulation and shall not subject Lender or the holder of the Warrant and the
Prior Warrant to any tax, penalty or liability under or pursuant to any applicable law or
governmental regulation.

               (vi) Consents. Lender shall be satisfied that any and all material government,
contractual and other third-party licenses, approvals and consents necessary to the funding of the
advance contemplated by this Restated Note, the issuance of the Warrant and the Prior Warrant and
the granting of the security interest to Lender pursuant to the Collateral Security Documents have
been obtained.

               (vii) Warrant. Borrower shall have issued the Warrant to Lender in form and substance
satisfactory to Lender.

               (viii) Other Fees and Expenses. Borrower shall have paid all fees required by
Section 11(u) then due and owing.

               (ix) Secretary’s Certificate with Attachments. Borrower shall have, and shall have
caused ABE Fairmont to have, delivered to Lender certificates of the Secretary or an Assistant
Secretary and one other officer of each of Borrower and ABE Fairmont (with incumbency), certifying
the names and true signatures of the officers of such Person authorized to sign the Loan Documents
(and the Warrant, with respect to Borrower) to which such Person is a party and the other documents
to be delivered hereunder to which such Person is a party, in form and substance satisfactory to
Lender, attaching (A) copies of the resolutions of the board of directors or the sole member, as
applicable, of each of Borrower and ABE Fairmont, authorizing its execution and delivery of, and
the performance of, its respective obligations under the Loan Documents to which such Person is a
party (and the Warrant, with respect to Borrower), (B) certified copies of the certificates of
formation and operating agreements of each of Borrower and ABE Fairmont; and (C) a good standing
certificate for each of Borrower and ABE Fairmont from the Secretary of State of the state of
formation of each such Person, each dated as of a recent date.

               (x) Officer’s Certificate. Borrower shall have delivered a certificate of an officer
of Borrower having primary responsibility for financial matters, in form and substance satisfactory
to Lender, certifying as to the amount of outstanding Indebtedness of each of Borrower and ABE
Fairmont on an unconsolidated basis as of the date hereof.

               (xi) Perfection of Security Interest. All actions necessary to perfect (and to
maintain perfection of) the Lien of Lender in the Collateral shall have been taken in accordance
with the terms and provisions of the Collateral Security Documents. The Lien of Lender in the
Collateral shall be valid and enforceable and the Collateral shall be subject to no other Liens.
Lender also understands that the State of Nebraska has certain rights under Section 22 of the NAA
Agreement.

11

 

               (xii) Material Adverse Effect. No Material Adverse Effect shall have occurred.

          (x) Independence of Covenants. All covenants and defaults contained in this Restated
Note and the other Loan Documents shall be given independent effect. If a particular action or
condition is not permitted by any covenant in this Restated Note, then the fact that such action or
condition would be permitted by an exception to (or would otherwise be within the limitations of)
another covenant in this Restated Note shall not avoid the occurrence or existence of a Default or
Event of Default if such action is taken or if such condition exists.

     12. Representations and Warranties. Borrower hereby represents and warrants to and
for the benefit of Lender as follows:

          (a) Organization and Good Standing. Each of Borrower and each of its Subsidiaries (1)
is duly organized, validly existing and in good standing under the laws of its jurisdiction of
organization, and (2) has all requisite limited liability company power to own its
properties and to conduct its business as now conducted and as currently proposed to be conducted,
and (3) is duly qualified to conduct business as a foreign limited liability company and is
currently in good standing in each state and jurisdiction in which it conducts business,
except where failure to be duly qualified and in good standing could not reasonably be
expected to have a Material Adverse Effect.

          (b) Power and Authority. Borrower has all requisite limited liability company power
and authority under applicable law and under its Organizational Documents to execute, deliver and
perform its obligations under the Loan Documents.

          (c) Validity and Legal Effect. This Restated Note constitutes, and the other Loan
Documents to which Borrower is a party constitute (or will constitute when executed and delivered),
the legal, valid and binding obligations of Borrower enforceable against it in accordance with the
terms thereof, except as may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws and except as limited by general principles of equity.

          (d) No Violation of Laws or Agreements. The execution, delivery and performance by
Borrower of the Loan Documents (1) will not violate or contravene any material provision of any
material law, rule, regulation, administrative order or judicial decree (federal, state or local),
(2) will not violate or contravene any provision of the Organizational Documents of Borrower or any
of its Subsidiaries, (3) will not result in any material breach or violation of (or constitute a
material default under) any material agreement or instrument by which Borrower or any of its
Subsidiaries or any of their respective assets or property may be bound, and (4) will not result in
or require the creation of any Lien (other than pursuant to the Loan Documents) upon or with
respect to any assets or properties of Borrower or any of its Subsidiaries, whether such assets or
properties are now owned or hereafter acquired.

          (e) Accuracy of Financial Information. All financial statements previously furnished
to Lender concerning the financial condition and operations of Borrower and it Subsidiaries: (1)
fairly present in all material respects the financial condition of the organization covered thereby
as of the dates and for the periods covered thereby, (2) disclose all material liabilities
(contingent and otherwise) of Borrower and its Subsidiaries, and (3) with respect to financial
statements prepared by or on behalf of Borrower and its Subsidiaries, have been prepared in
accordance with GAAP consistently applied.

          (f) No Liens. Other than the Lien of GSB in the GSB Deposit Account and the GSB
Letter of Credit Cash Collateral, Borrower owns the GSB Deposit Account, the GSB Letter of Credit
Cash Collateral and the rights to the NAA Payments and the ABE Fairmont Distributions free and
clear of

12

 

any Lien. Lender also understands that the State of Nebraska has certain rights under Section
22 of the NAA Agreement.

     13. Definitions. For purposes of this Restated Note, the following terms have the
following corresponding meanings:

          (a) “ABE Fairmont” means ABE Fairmont, LLC, a Delaware limited liability company and
wholly-owned Subsidiary of Borrower.

          (b) “Affiliate” of any Person means any other Person that directly or indirectly
controls, is controlled by or is under direct or indirect common control with such Person. A
Person shall be deemed to “control” another Person if such first Person directly or indirectly
possesses the power to direct (or to cause the direction of or to materially influence) the
management and policies of the second Person, whether through the ownership of voting securities,
by contract or otherwise. Without limiting the generality of the foregoing, each Person who owns
or controls 5% or more of any class or series of any equity interest of such Person will be deemed
to be an Affiliate of a Person. Notwithstanding the foregoing, in no event shall Lender or any of
its Affiliates be deemed to be an Affiliate of Borrower or any of its Subsidiaries.

          (c) “Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978, as codified
under Title 11 of the United States Code, and the Bankruptcy Rules promulgated thereunder, as
amended.

          (d) “Borrower” means Advanced BioEnergy, LLC, a Delaware limited liability company,
having its principal and chief executive office at the address specified in Section 25, and
any successor or authorized assignee of any thereof.

          (e) “Business Day” means any day that is not a Saturday, a Sunday or a day on which
banks under the laws of the States of Minnesota or New York are authorized or required to be
closed.

          (f) “Capital Leases” means all leases that have been or should be recorded as
capitalized leases in accordance with GAAP.

          (g) “Change of Control” means shall mean the occurrence of an event, or series of
events, which shall lead, or has led to (a) any “person” or any syndicate or group deemed a
“person” within the meaning of Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), has become, directly or indirectly, the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act, except that a person shall be deemed
to have “beneficial ownership” of all shares that any such person has the right to acquire, whether
such right is exercisable immediately or only after the passage of time), of 30% or more of the
voting power of the voting stock of Borrower on a fully-diluted basis, after giving effect to the
conversion and exercise of all outstanding warrants, options and other securities of Borrower
(whether or not such securities are then currently convertible or exercisable), provided
that with respect to ECM, a Change of Control under this clause (a) shall occur only if ECM has
become, directly or indirectly, the beneficial owner (as defined above) of more than 50% of the
voting power of the voting stock of Borrower on a fully-diluted basis, after giving effect to the
conversion and exercise of all outstanding warrants, options and other securities of Borrower
(whether or not such securities are then currently convertible or exercisable), by aggregating the
voting power of Borrower held by ECM as in effect on the date of the Forbearance Agreement plus all
voting power obtained by ECM subsequent to the date of the Forbearance Agreement, or (b) during any
period of 2 consecutive calendar years, individuals who at the beginning of such period constituted
the board of

13

 

directors (or similar governing body) of Borrower cease for any reason (other than death,
disability or expiration of term) to constitute a majority of the board of directors (or similar
governing body) of Borrower then in office unless such new directors (or similar) were elected by
the directors (or similar) of Borrower who constituted the board of directors (or similar governing
body) of Borrower at the beginning of such period, or (c) the failure of Borrower to own 100% of
the equity interests of each of its Subsidiaries on a fully-diluted basis.

          (h) “CoBank Loan Documents” means, collectively, (i) that Master Loan Agreement dated
as of November 20, 2006 between Farm Credit Services of America, FLCA (“Farm Credit”) and
ABE Fairmont as amended by an Amendment dated on or about October 5, 2007 and an amendment dated as
of December 24, 2008 (the “11/20/06 MLA”), as further amended and supplemented by that (1)
Construction and Term Loan Supplement to the MLA dated as of November 20, 2006 between Farm Credit
and ABE Fairmont with respect to a construction and term loan in an amount not to exceed
$6,500,000, as amended by the Amendment to such Supplement dated on or about October 5, 2007
between Farm Credit and ABE Fairmont, (2) Construction and Revolving Term Loan Supplement to the
11/20/06 MLA dated as of November 20, 2006 and effective as of June 1, 2007 between Farm Credit and
ABE Fairmont with respect to a construction and revolving term loan commitment in an amount not to
exceed $4,000,000, as amended by the Amendment to such Supplement entered into on or about October
5, 2007 between Farm Credit and ABE Fairmont, (3) Disbursing Agreement dated as of November 1, 2006
among ABE Fairmont, Farm Credit, CoBank, ACB (“CoBank”) and Homestead Escrow and Exchange
Co., (4) Administrative Agency Agreement dated as of November 20, 2006 among Farm Credit, CoBank
and ABE Fairmont, and (5) Statused Revolving Credit Supplement dated as of December 24, 2008 which
amended and restated the Statused Revolving Credit Supplement dated on or about October 5, 2007
between ABE Fairmont and Farm Credit; and (ii) that Master Loan Agreement dated as of February 17,
2006 between Farm Credit and Borrower (the “2/17/06 MLA”), as amended and supplemented by
that (1) Construction and Term Loan Supplement dated as of December 24, 2008 between Farm Credit
and ABE Fairmont, with respect to a construction and term loan in an amount not to exceed
$58,250,000, which amended and restated the Construction and Term Loan Supplement dated as of
February 17, 2006 between Farm Credit and ABE Fairmont, (2) Construction and Revolving Loan
Supplement dated as of December 24, 2008 between Farm Credit and ABE Fairmont, with respect to a
construction and revolving term loan in an amount not to exceed at any one time outstanding
$25,000,000 less the amounts scheduled to be repaid therein, which amended and restated the
Construction and Revolving Term Loan Supplement dated as of February 17, 2006 between Farm Credit
and ABE Fairmont, (3) Statused Revolving Credit Supplement dated as of February 17, 2006 between
Farm Credit and ABE Fairmont with respect to a revolving credit facility in an available amount not
to exceed at any one time outstanding $5,000,000 as amended by the Amendment dated on or about
October 5, 2007 and as further amended by the Revolving Credit Supplement — Letters of Credit dated
as of October 24, 2008 (4) Administrative Agency Agreement dated as of February 17, 2006 among Farm
Credit, CoBank and Borrower, ABE Fairmont, (5) Amendment to Master Loan Agreement dated as of April
11, 2006 between Farm Credit and Borrower, (6) that Security Agreement dated February 17, 2006
between Borrower and Farm Credit, and (7) that Deed of Trust and Assignment of Rents dated February
17, 2006 by Borrower in favor of Farm Credit, all of Borrower’s obligations and liabilities under
the 2/17/06 MLA, as amended, having been assumed by ABE Fairmont pursuant to Section 25 of the
11/20/06 MLA and Borrower having been discharged from its obligations under the 2/17/06 MLA, as
amended, pursuant to that letter agreement dated November 10, 2006 between Farm Credit and
Borrower, as the 2/17/06 MLA has
been further amended by that (x) Amendments to the Construction
and Term Loan Supplement dated as of November 20, 2006 and on or about October 5, 2007 between Farm
Credit and ABE Fairmont and (y) Amendments to the Construction and Revolving Term Loan Supplement
dated as of November 20, 2006 and on or about October 5, 2007 between Farm Credit and ABE Fairmont,
together with all amendments, supplements, agreements, documents, exhibits, schedules and
certificates contemplated thereby or entered into in connection with any of the foregoing.

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          (i) “Collateral” means the collateral security committed to Lender under the
Collateral Security Documents executed by Borrower in favor of Lender pursuant to this Restated
Note from time to time and/or pursuant to all similar or related documents and agreements from time
to time, all as amended, modified, supplemented or restated and in effect from time to time.

          (j) “Collateral Security Documents” means, individually and collectively, (1) the
Membership Interest Pledge Agreement, all financing statements filed pursuant thereto, and all
other instruments (including membership interest certificates) and other executed and/or delivered
pursuant thereto and (2) any additional documents granting security to Lender pursuant to this
Restated Note or required or delivered in connection with any other Loan Document, all as amended
modified, supplemented or restated and in effect from time to time.

          (k) “Default” means any event or circumstance that with the giving of notice or the
passage of time (or both) would constitute an Event of Default.

          (l) “Dollar” or “$” means U.S. dollars.

          (m) “ECM” means, collectively, Tennessee Ethanol Partners, L.P., Ethanol Capital
Management, LLC and Ethanol Investment Partners, LLC and their respective Affiliates.

          (n) “Environmental Control Statutes” means all federal, state and local laws,
statutes, rules, ordinances, regulations (as implemented and as interpreted), judgments, decrees,
orders, licenses, permits and rules governing the control, removal, storage, transportation, spill,
release or discharge of hazardous or toxic wastes, substances and petroleum products or otherwise
pertaining to the protection of human health, safety or the environment or natural resources.

          (o) “Equity Interests” means shares of capital stock, partnership interests,
membership interests or units in a limited liability company, beneficial interests in a trust or
other equity ownership interests in a Person, and any warrants, options or other rights entitling
the holder thereof to purchase or acquire any such equity interest.

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

          (q) “Event of Default” means the occurrence of any one or more of the following
events: (1) if any payment of principal, interest, fees, expenses, indemnities or other sums
payable to Lender under any Loan Document is not received by Lender in immediately available funds
on the date such payment is due and payable and, except with respect to principal payments,
such failure to receive such payment in immediately available funds continues for 3 Business Days
after the due date therefor; (2) if any representation, warranty or other statement made in any
Loan Document or in any financial statement or written report provided to Lender by or on behalf of
Borrower or ABE Fairmont (or otherwise furnished in connection herewith) when made was misleading
or incorrect in any material respect; (3) if Borrower or ABE Fairmont defaults in the full and
timely performance when due of any other covenant or agreement contained in any Loan Document, and
such default remains uncured for 15 Business Days after the earlier of the date that Lender
notifies Borrower thereof or the date that Borrower or ABE Fairmont otherwise acquires knowledge or
should have acquired knowledge thereof; (4) if Borrower or ABE Fairmont fails or refuses to make
any required payment (whether as principal, interest or otherwise) with respect to any indebtedness
for borrowed money in excess of $1,000,000 (or with respect to any guaranty or reimbursement
obligation of any such indebtedness) prior to the expiration of any applicable grace period with
respect to such payment, or if any such indebtedness for borrowed money is accelerated prior to its
express maturity as a result of any default thereunder; (5) if Borrower or

15

 

any of its Subsidiaries (i) becomes insolvent, bankrupt or generally fails to pay its debts as
such debts become due; or (ii) is adjudicated insolvent or bankrupt in any Insolvency Proceeding;
or (iii) admits in writing an inability to pay its debts; or (iv) comes under the authority
of a custodian, receiver or trustee (or one is appointed for substantially all of its property); or
(v) makes an assignment for the benefit of creditors; or (vi) has commenced against it any
proceeding (including any Insolvency Proceeding) under any law related to bankruptcy, insolvency,
liquidation, dissolution or the reorganization, readjustment or release of debtors that is either
not contested or if contested is not dismissed or stayed within 60 calendar days after the
commencement thereof; or (vii) commences or institutes any proceeding (including any Insolvency
Proceeding) under any law related to bankruptcy, insolvency, liquidation, dissolution or the
reorganization, readjustment or release of debtors; or (viii) calls a meeting of creditors with a
view to arranging a composition or adjustment of debt; or (ix) by any act or failure to act that
indicates consent to, approval of or acquiescence in any of the foregoing; (6) if (i) any judgment,
writ, warrant, attachment or execution or similar process that calls for payment or presents
liability in excess of $250,000 is rendered, issued or levied against Borrower or ABE Fairmont or
any of their respective properties or assets or (ii) any final, non-appealable arbitration award
that calls for payment or presents liability in excess of $250,000 is rendered, issued or levied
against Borrower or ABE Fairmont or any of their respective properties or assets, and in either
case such liability is not paid, waived, stayed, vacated, discharged, settled, satisfied or fully
bonded within 60 calendar days after it is rendered, issued or levied; (7) (i) if the security
interest or lien in any of the Collateral with a fair market value exceeding collectively $250,000
at any time does not constitute a legal, valid and enforceable security interest or lien in favor
of Lender or shall cease to have the priority contemplated by the Collateral Security Documents
otherwise than in accordance with the terms thereof or with the express prior written agreement,
consent or approval of Lender, or (ii) if any of the Loan Documents shall be cancelled,
terminated, revoked or rescinded otherwise than in accordance with the terms thereof or with the
express prior written agreement, consent or approval of Lender, or any action at law, suit or in
equity or other legal proceeding to cancel, revoke or rescind any of the Loan Documents shall be
commenced by or on behalf of Borrower or any of its Subsidiaries or any of their respective equity
holders, or any Governmental Authority shall make a determination that, or issue a judgment, order,
decree or ruling to the effect that, any one or more of the Loan Documents is illegal, invalid or
unenforceable in accordance with the terms thereof; (8) Borrower or any of its Subsidiaries fails
to observe or perform any agreement or condition under the CoBank Loan Documents beyond the
expiration of any applicable grace period, or any default or other event occurs (unless such
default or event is waived in writing in accordance with the terms thereof), the effect of which
default or other event is to cause, or to permit the holder or holders of the Indebtedness under
the CoBank Loan Documents to cause, with the giving of notice if required, such Indebtedness to be
demanded or to become due or to be repurchased, prepaid, defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made,
prior to its stated maturity; (9) Borrower or any of its Subsidiaries fails to observe or perform
any agreement or condition under the Wells Fargo Documents beyond the expiration of any applicable
grace period, or any other default or other event occurs (unless such default or event is waived in
writing in accordance with the terms thereof), the effect of which default or other event is to
cause, or to permit the holder or holders of the Indebtedness under the Wells Fargo Documents to
cause, with the giving of notice if required, such Indebtedness to be demanded or to become due or
to be repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity;
(10) so long as the Warrant is held by Lender or any of its Affiliates, (i) any representation,
warranty or other statement made in the Warrant when made shall be misleading or incorrect in any
material respect; or (ii) Borrower defaults in the full and timely performance when due of any
covenant or agreement contained in the Warrant, and such default remains uncured for 15 Business
Days after the earlier of the date that Lender notifies Borrower thereof or the date that Borrower
otherwise acquires knowledge or should have acquired knowledge thereof; and/or (11) if a Material
Adverse Effect has occurred.

16

 

          (r) “GAAP” means generally accepted accounting principles from time to time in effect,
including the statements and interpretations of the United States Financial Accounting Standards
Board, applied on a consistent basis.

          (s) “Governmental Authority” means the government of the United States of America, any
other nation 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.

          (t) “Hazardous Materials” includes (a) any “hazardous waste” as defined by the
Resource Conservation and Recovery Act of 1976 (42 U.S.C. § 6901 et seq.), as
amended from time to time, and regulations promulgated thereunder; or (b) any “hazardous
substance” as defined by the Comprehensive Environmental Response, Compensation and Liability Act
of 1980 (42 U.S.C. § 9601 et seq.), as amended from time to time, and regulations
promulgated thereunder; or (c) any pollutant or contaminant as defined by 42 U.S.C.
§9601(33); or (d) any toxic substance, oil or hazardous material or other chemical or
substance (including, without limitation, asbestos in any form, urea formaldehyde or
polychlorinated biphenyls) the use or presence of which is similarly regulated or prohibited by any
Environmental Control Statute.

          (u) “Heartland Entities” means, collectively, ABE Heartland, LLC, a Delaware limited
liability company, Dakota Fuels, Inc., a Delaware corporation and Heartland Grain Fuels, L.P., a
Delaware limited partnership.

          (v) “Indebtedness” of any Person means, without duplication, (1) all indebtedness of
such Person for borrowed money, and (2) all obligations of such Person for the deferred
purchase price of property or services (other than trade indebtedness, if and to the extent such
indebtedness is incurred in the ordinary course of business for value received which would be shown
as a liability on a balance sheet or are required to be set forth in the footnotes to a year-end
balance sheet, each prepared in accordance with GAAP, and (3) all obligations of such
Person evidenced by notes, bonds, debentures or other similar instruments, and (4) all
obligations of such Person created or arising under any conditional sale or other title retention
agreement with respect to property acquired by such Person (even though the rights and remedies of
the seller or lender under such agreement in the event of default are limited to repossession or
sale of such property), and (5) all obligations of such Person as lessee under Capital
Leases to the extent classified as a liability on a balance sheet in accordance with GAAP,
and (6) all obligations, contingent or otherwise, of such Person under acceptance, letter
of credit or similar facilities, and (7) all obligations of such Person in respect of any
interest rate or currency swap, cap or other agreement or arrangement designed to provide
protection against fluctuations in interest or currency exchange rates, and (8) all
Indebtedness of others referred to in clauses (1) through (7) above or clause (9) below guaranteed
directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly
by such Person to assure a creditor against loss, and (9) all Indebtedness referred to in
clauses (1) through (8) above of another Person secured by (or for which the holder of such debt
has an existing right, contingent or otherwise, to be secured by) any Lien on property (including,
without limitation, accounts, contract rights or inventory) owned by such Person, even though such
Person has not assumed or become liable for the payment of such debt; provided that
Indebtedness of any Subsidiary of Borrower other than ABE Fairmont shall not be deemed to be
Indebtedness of Borrower solely as a result of a non-recourse pledge by Borrower of its Equity
Interest in such Subsidiary and/or its intercompany receivables from such Subsidiary in order to
secure such Indebtedness, and (10) the principal balance outstanding under any synthetic
lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing
product to which such Person is a party, where such transaction is considered borrowed money
indebtedness for tax purposes but is classified as an operating lease in accordance with GAAP,
and (11)

17

 

all payment obligations of such Person to former owners of businesses which were acquired by
such Person which are in the nature of deferred purchase price or earn-out. For the purposes of
the Agreement, the term “Indebtedness” shall exclude any effects of the application of FASB 150.

          (w) “Insolvency Proceeding” means (1) any case, action or proceeding before any court
or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors, or (2) any general assignment
for the benefit of creditors, composition, marshalling of assets for creditors or other, similar
arrangement in respect of its creditors generally or any substantial portion of its creditors, in
each of case (1) and (2) undertaken under federal, state or foreign law, including the Bankruptcy
Code.

          (x) “Lien” means any security interest, mortgage, pledge, hypothecation, assignment,
deposit arrangement, encumbrance, lien (statutory or otherwise), reversionary or reclamation
interest, charge against or interest in property to secure payment of a debt or performance of an
obligation or other priority or preferential arrangement of any kind or nature whatsoever.

          (y) “Loan Documents” means this Restated Note, the Control Agreement, the GSB
Instruction Letter, the Nebraska Instruction Letter, the Collateral Security Documents and all
other documents, agreements and certificates (inclusive of all schedules and exhibits thereto) from
time to time entered into or delivered in connection herewith or therewith or pursuant hereto or
thereto, all as may be amended, modified and supplemented from time to time.

          (z) “Material Adverse Effect” means, relative to any occurrence of whatever nature, a
change that has, causes or could reasonably be expect to have or cause a material adverse change to
or a materially adverse effect on: (1) the business, assets, revenues, financial condition,
operations or prospects of Borrower, or of Borrower and its Subsidiaries, taken as a whole, (2) the
ability of Borrower or any of its Subsidiaries to perform any of its payment obligations when due
or to perform any other material obligations under any Loan Document or (3) any right, remedy,
benefit or collateral in favor of Lender under any Loan Document.

          (aa) “Maturity Date” has the meaning set forth in Section 2.

          (bb) “Net Cash Proceeds” means the cash proceeds or, with respect to non-cash
transactions, the cash equivalent of the fair market value of any equity or debt issuance, asset
disposition or asset condemned or subject to insurance proceeds in each case net of (as applicable)
(1) reasonable commissions and expenses actually paid to unrelated third parties in connection with
such transaction, (2) taxes actually due from Borrower as a direct result of such transaction and
(3) in the case of asset dispositions, commercially reasonable reserves established in respect of
post-closing purchase price adjustments and indemnification and other contingent liabilities
arising in connection with such asset dispositions.

          (cc) “Note” means this Secured Term Loan Note as amended, modified, renewed, extended
and/or restated from time to time in accordance with the terms hereof.

          (dd) “Obligations” means all loans, advances, debts, liabilities and obligations
(including reimbursement obligations), for monetary amounts owing by Borrower to Lender, whether
due or to become due, matured or unmatured, liquidated or unliquidated, contingent or
non-contingent, of any kind or nature, present or future, arising under or in respect of this
Restated Note or any of the other Loan Documents. This term includes all principal, interest
(including all interest that accrues after the commencement against Borrower of any Insolvency
Proceeding under the Bankruptcy Code), reasonable fees, including any and all arrangement fees,
delivery fees, loan fees, commitment fees, agent fees and

18

 

any and all other reasonable fees, expenses, costs or other sums (including reasonable
attorneys fees) chargeable to Borrower under any of the Loan Documents.

          (ee) “Organizational Documents” means, relative to any entity, its certificate or
articles of incorporation or organization or formation, its by-laws or operating agreements, and
all equityholder agreements, voting agreements and similar arrangements applicable to any of its
authorized shares of capital stock, its partnership interests or its member interests, and any
other arrangements relating to the control or management of any such entity.

          (ff) “Paid in Full” and “Payment in Full” mean, with respect to the
Obligations, all amounts owing with respect thereto (including any interest accruing thereon after
the commencement of any Insolvency Proceeding against Borrower, whether or not allowed as a claim
against Borrower in such Insolvency Proceeding, but excluding as yet unasserted contingent
obligations), have been fully, finally and completely paid in cash.

          (gg) “Person” means any natural person, corporation, limited liability company,
partnership, firm, association, trust, government, governmental agency or any other entity, whether
acting in an individual, fiduciary or other capacity.

          (hh) “Prior Warrant” means the Warrant to Purchase Units of Borrower, dated October
17, 2007 and numbered No. 1 issued by Borrower to Lender.

          (ii) “Subsidiary” of any Person or entity means any Person as to which such other
Person or entity (1) directly or indirectly owns, controls or holds 50% or more of the outstanding
beneficial interest or (2) is otherwise required in accordance with GAAP to be considered as part
of a consolidated organization. Notwithstanding the foregoing, the Heartland Entities shall not be
“Subsidiaries” for purposes of this Restated Note or any of the other Loan Documents.

          (jj) “Tax Distributions” means any dividend or distribution paid in accordance with
Section 11(k) to any holder of membership interests of Borrower to the extent that such
funds are distributed to provide cash or other assets to such holder in order to pay such holder’s
federal, state and local income tax liabilities for such year (determined based upon a combined
marginal rate of 40%) that is directly attributable to such holder as a direct result of the amount
of income and gain (net of allowable deductions, losses and credits) of Borrower.

          (kk) “Warrant” means the Warrant to Purchase Units of Borrower, dated as of the date
hereof and numbered No. 2 issued by Borrower to Lender.

          (ll) “Wells Fargo Loan Documents” means, collectively, (i) that Loan and Trust
Agreement dated as of April 1, 2006 (the “4/1/06 Loan Agreement”) among Borrower, County of
Fillmore, State of Nebraska, as issuer (“Issuer”), and Wells Fargo Bank, N.A., as trustee
(“Trustee”), as Borrowers obligations and liabilities under the 4/1/06 Loan Agreement have
been assigned to and assumed by ABE Fairmont pursuant to that Assignment and Assumption Agreement
dated as of November 14, 2006 among Borrower, ABE Fairmont, Issuer and Trustee, (ii) that
Promissory Note dated April 27, 2007 among Borrower, issuer and Trustee, (iii) that Subordinate
Deed of Trust and Construction Security Agreement by Borrower in favor of Trustee, (iv) that Tax
Regulatory Agreement dated as of April 27, 2006 from Borrower and Issuer to Trustee and (v) that
Continuing Disclosure Agreement as of dated April 1, 2006 between Borrower and Trustee, together
with all amendments, supplements, agreements, documents, exhibits, schedules and certificates
contemplated thereby or entered into in connection with any of the foregoing.

19

 

     14. Selected Rights and Remedies Upon Event of Default. Upon the occurrence and
during the continuation of any Event of Default, with notice thereof to Borrower (unless an
Event of Default described in clause (5) of the definition of “Event of Default” has occurred, in
which case acceleration will occur automatically with respect to the entire indebtedness and
without any notice), Lender may declare all or any portion of the indebtedness under any Loan
Document to be immediately due and payable. Upon the occurrence and during the continuation of any
Event of Default, Lender shall have the immediate right to enforce and realize upon any collateral
security (including all or any portion of the Collateral) for the Obligations hereunder in any
manner or order that Lender deems expedient without regard to any equitable principles of
marshalling or otherwise. Lender shall have and be entitled to all of the rights, remedies,
benefits and powers of enforcement with respect hereto that are available to a holder of a
negotiable instrument under Article 3 of the Uniform Commercial Code, and any subsequent transferee
of Lender shall have and be entitled to all of the rights, remedies, benefits and powers of
enforcement with respect hereto that are available to a holder in due course of a negotiable
instrument under Article 3 of the Uniform Commercial Code (provided that such transferee
acquired this Restated Note in good faith, for value and without actual notice of a claim or
defense hereunder by Borrower). In addition to any rights granted hereunder or in any other Loan
Document, Lender shall also have all other rights and remedies permissible under any applicable law
(including creditor rights and the rights of a secured party under the Uniform Commercial Code),
and all such rights and remedies shall be cumulative in nature.

     15. Indemnification, Reliance and Assumption of Risk. Without limiting any other
indemnification in any Loan Document, Borrower hereby agrees to defend Lender (and its directors,
officers, employees, agents, representatives, counsels and Affiliates) (each an
“Indemnitee”) from, and hold each of them harmless against, any and all losses,
liabilities, claims, damages, interests, judgments, or costs (including reasonable fees and
disbursements of counsel) incurred by any of them arising out of or in any way connected with any
Loan Document, except for losses resulting directly from such Person’s own gross negligence or
willful misconduct. Expenses (including, without limitation, reasonable attorneys’ fees and
expenses) incurred by an Indemnitee shall be paid in advance of the final disposition of such
action, suit or proceeding upon receipt of an undertaking from such Indemnitee to repay such amount
if it shall ultimately be determined that such Indemnitee is not entitled to indemnification.
Borrower’s obligations provided for in this Section 15 will survive any termination of this
Agreement, and the repayment of the outstanding balances hereunder. Without limiting the
generality of the foregoing, Borrower hereby agrees to indemnify, defend and hold harmless each
Indemnitee from and against, any and all losses, liabilities, claims, damages (including, without
limitation, natural resource damages), interests, judgments, fines, penalties, liens or costs
(including reasonable fees and disbursements of counsel and consultants) resulting from or relating
to any of the following: (1) the storage, holding, existence, migration, release (as defined by
CERCLA), threat of release, disposal, treatment, generation, processing, abatement, handling or
transportation of any Hazardous Materials (collectively “Environmental Activity”) at, on,
under, from or in the vicinity of any property presently or formerly owned, leased or operated by
Borrower; and (2) any violation or alleged violation of Environmental Control Statutes by
Borrower at any property presently or formerly owned, leased or operated by Borrower; and
(3) any investigation, inquiry, notice, order (including consent orders, agreements and decrees),
hearing, action, proceeding, demand, directive, fine, penalty, lien or claim instituted, asserted
or threatened by any Person in connection with any Environmental Activity or Environmental Control
Statute relating to Borrower or any portion of any property presently or formerly owned, leased or
operated by Borrower; and (4) any off-site transportation, treatment, storage or disposal
or Hazardous Materials generated at or transported from any property presently or formerly owned,
leased or operated by Borrower.

     16. Selected Waivers and Consents by Borrower. Borrower hereby waives diligence,
presentment, protest, demand for payment, notice of protest and non-payment, notice of dishonor,
and any

20

 

and all other notices or demands in connection with the delivery, acceptance, payment,
performance, default, acceleration or enforcement of this Restated Note. Borrower, in addition,
hereby consents (without the necessity of prior notice) to any extensions of time, renewals,
releases of any party hereto or guarantor hereof, waivers and/or modifications in connection
herewith that may be granted or consented to by Lender from time to time. Borrower also waives any
defenses (other than the defense of full unconditional payment) and rights of discharge to its
obligations hereunder that it may have or may hereafter acquire based upon suretyship or impairment
of collateral (including lack of attachment or perfection with respect thereto).

     17. Waivers by Lender and Severability. To be effective, any waiver by Lender must be
expressed in a writing executed by Lender. If Lender waives any term, right or remedy arising
hereunder or under any applicable law, then such waiver will not be deemed to be a waiver (1) upon
any later occurrence or recurrence of any events giving rise to the earlier waiver or (2) as to any
other Person. No failure or delay by Lender to insist upon the strict performance of any Loan
Document, or to exercise any right or remedy, will constitute a waiver of compliance with any term,
condition, covenant or agreement, or preclude Lender from exercising any right, power, or remedy at
any later time or times. By accepting payment after the due date of any amount payable under any
Loan Document, Lender will not be deemed to waive the right either to require prompt payment when
due of all other amounts payable under any Loan Document or to declare an Event of Default for
failure to effect such prompt payment of any such other amount. If fulfillment of any provision
hereof at the time performance is due involves transcending the limit of validity prescribed by
applicable law, then (ipso facto) the obligation to be fulfilled shall be reduced to the limit of
such validity. If any clause or provision hereof operates or would prospectively operate to
invalidate this Restated Note in whole or in part, then such clause or provision only shall be void
(as though not contained herein), and the remainder of this Restated Note shall remain operative
and in full force and effect; provided, however, if any such clause or provision
pertains to the repayment of any indebtedness hereunder, then the occurrence of any such invalidity
shall constitute an immediate Event of Default hereunder.

     18. Reinstatement. To the maximum extent not prohibited by applicable law, this
Restated Note (and the Obligations hereunder and Collateral therefor) will be automatically
reinstated and the indebtedness correspondingly increased (as though such payments had not been
made) if at any time any amount received by Lender in respect hereof is rescinded or must otherwise
be restored, refunded or returned by Lender to Borrower or other Person for any reason, including
(a) as a result of the insolvency, bankruptcy, dissolution, liquidation or reorganization of any
Person, or (b) as a result of the appointment of any receiver, intervenor, conservator, trustee or
similar official for any Person or for any part of the assets of any Person.

     19. Assignability. Borrower shall not assign or delegate any of its obligations,
duties, rights or benefits hereunder or under any other Loan Document without the prior written
consent of Lender. Lender (and its successors or assigns), at any time and from time to time, may
assign, transfer, participate, syndicate, delegate and/or pledge all or any part of its
obligations, duties, rights and benefits under this Restated Note and the other Loan Documents
without the consent of Borrower.

     20. Conflicts Among Loan Documents. In the event of any irreconcilable conflict
between the terms and conditions of this Restated Note and the terms and conditions of any other
Loan Document, then the terms and conditions of this Restated Note shall govern.

     21. Relationship with Prior Agreements. This Restated Note, together with the other
Loan Documents and the Warrant, completely and fully supersedes all oral agreements and all other
and prior written agreements by and among Borrower and Lender concerning the terms and conditions
of this credit arrangement.

21

 

     22. Severability. If fulfillment of any provision of or any transaction related to
any Loan Document at the time performance is due involves transcending the limit of validity
prescribed by applicable law, then ipso facto, the obligation to be fulfilled shall be reduced to
the limit of such validity.  If any clause or provision of this Agreement operates or would
prospectively operate to invalidate this Agreement or any other Loan Document in whole or in part,
then such clause or provision only shall be void (as though not contained herein or therein), and
the remainder of this Agreement or such other Loan Document shall remain operative and in full
force and effect; provided, however, if any such clause or provision pertains to
the repayment of any indebtedness hereunder, then the occurrence of any such invalidity shall
constitute an immediate Event of Default hereunder.

     23. No Fiduciary Relationship. No provision in the Loan Documents and no course of
dealing between the parties shall be deemed to create any fiduciary duty owing to Borrower or any
of its Affiliates by Lender and Lender shall not be deemed to be a partner, joint venturer or
co-venturer with Borrower by reason of this Agreement or the transaction contemplated hereunder.

     24. Secured Note. The full amount of this Restated Note is secured by the Collateral
identified and described as security therefor in the Collateral Security Documents and the other
Loan Documents.

     25. Notices. Any notice or other communication required or permitted in connection
with the Loan Documents will be deemed satisfactorily given if it is in writing and is delivered
either personally to the addressee thereof, or by prepaid registered or certified U.S. mail (return
receipt requested), or by a nationally recognized commercial courier service with next-day delivery
charges prepaid, or by facsimile (voice confirmed), or by any other reasonable means of personal
delivery to the party entitled thereto at its respective address set forth below:

	 	 	 	 	 
	 

	 	 	 	 
	If to Borrower:

	 	Advanced BioEnergy, LLC	 	 
	 

	 	10201 Wayzata Blvd., Suite 250	 	 
	 

	 	Minneapolis, MN 55305	 	 
	 

	 	Attn: Richard Peterson	 	 
	 

	 	Facsimile No.:  (763) 226-2728	 	 
	 
	 	 	 	 
	If to Lender:

	 	PJC Capital LLC	 	 
	 

	 	c/o Piper, Jaffray & Co.	 	 
	 

	 	800 Nicollet Mall	 	 
	 

	 	Minneapolis, MN 55402-7020	 	 
	 

	 	Attention:       Robert P. Rinek	 	 
	 

	 	Facsimile:       (612) 303-1068	 	 

Any party to a Loan Document may change its address or other contact information for notice
purposes by giving notice thereof to the other parties to such Loan Document in accordance with
this Section 25, provided that such change shall not be effective until 2 calendar days
after notice of such change. All such notices and other communications will be deemed given and
effective (a) if by mail, then upon actual receipt or 5 calendar days after mailing as
provided above (whichever is earlier), or (b) if by facsimile, then upon successful
transmittal to such party’s designated number, or (c) if by nationally recognized
commercial courier service, then upon actual receipt or 2 Business Days after delivery to
the courier service (whichever is earlier), or (d) if otherwise delivered, then
upon actual receipt.

     26. Jurisdictional and Related Consents. Any litigation in any way related to this
Restated Note, or any course of conduct, course of dealing, statements (whether verbal or written),
actions or inactions of Lender or Borrower may be brought and maintained, on a non-exclusive

22

 

basis, in the courts of the State of New York or in the United States District Court for the
Southern District of New York; provided, however, that any suit seeking enforcement
hereof against Borrower or any property may also be brought (at Lender’s option) in the courts of
any other jurisdiction where such property may be found or where Borrower may be subject to
personal jurisdiction. Borrower hereby expressly and irrevocably submits to the jurisdiction of
the courts of the State of New York and of the United States District Court for the Southern
District of New York for the purpose of any such litigation as set forth above and irrevocably
agrees to be bound by any final and non-appealable judgment rendered thereby in connection with
such litigation. Borrower further irrevocably consents to the service of process by registered or
certified mail, postage prepaid, or by personal service within or outside the State of New York.
Borrower hereby expressly and irrevocably waives (to the fullest extent permitted by law) any
objection that it at any time may have to the laying of venue of any such litigation brought in any
such court referred to above and any claim that any such litigation has been brought in an
inconvenient forum.

     27. Jury Trial Waiver. Lender and Borrower each hereby knowingly, voluntarily and
intentionally waives any rights it may have to a trial by jury in respect of any litigation
(whether as claim, counter-claim, affirmative defense or otherwise) in any way related to this
Restated Note or any of the Loan Documents or any course of conduct, course of dealing, statements
(whether verbal or written), actions or inactions of Lender or Borrower.

     28. Governing Law and Binding Effect. This Restated Note and the other Loan Documents
are binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. This Restated Note and the other Loan Documents are governed as to their validity,
interpretation, construction and effect by the laws of the State of New York (without giving effect
to the conflicts of law rules of such state).

[Balance of Page Intentionally Blank...Signatures on Next Page]

23

 

IN WITNESS WHEREOF, Borrower has executed this Amended and Restated Secured Term Loan Note on the
day and year first written above.

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	ADVANCED BIOENERGY, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 
	 

	 	 	 	 
	ACCEPTED:	 	 
	 
	 	 	 	 
	PJC CAPITAL LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Robert P. Rinek	 	 
	 

	 	Co-President and Co-Chief Operating
Officer	 	 

 

 

Exhibit A

GSB Instruction Letter

2

 

Exhibit B

Nebraska Instruction Letter

3

 

Exhibit C

ABE Fairmont Instruction Letter

4

 

ANNEX C

FORM OF NEW WARRANT

 

 

THIS WARRANT HAS BEEN, AND THE UNITS WHICH MAY BE RECEIVED PURSUANT TO THE EXERCISE OF THIS WARRANT
WILL BE, ACQUIRED SOLELY FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR RESALE IN CONNECTION WITH,
ANY DISTRIBUTION THEREOF. NEITHER THIS WARRANT NOR SUCH UNITS HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR QUALIFIED UNDER ANY STATE SECURITIES
LAWS. SUCH SECURITIES MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF SUCH REGISTRATION OR
QUALIFICATION OR AN OPINION OF COUNSEL IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY
THAT SUCH DISPOSITION IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY
REGISTRATION OR QUALIFICATION REQUIREMENTS UNDER APPLICABLE STATE SECURITIES LAWS.

			
	 	 	 
	No. 2 
	 	[                    ], 2009

WARRANT TO PURCHASE UNITS OF ADVANCED BIOENERGY, LLC

     This Warrant to Purchase Units (this “Warrant”) certifies that, for good and valuable
consideration, PJC CAPITAL LLC, a Delaware limited liability company (along with its permitted
assignees, the “Holder”) is entitled to purchase from ADVANCED BIOENERGY, LLC, a Delaware limited
liability company (the “Company”), [                    ] [number of Units to be determined based upon number
of Units issued in Equity Issuance] fully paid and nonassessable Units (as defined in the Company’s
Third Amended and Restated Operating Agreement dated February 1,
2006 (the “LLC Agreement”)) (the
“Units”) of the Company, as adjusted pursuant
to Section 3 hereof (the “Warrant Units”), at
an exercise price per Unit equal to $[                    ] [exercise price to be the same price as the price of
the Units issued in the Equity Issuance] (as adjusted pursuant to Section 3 hereof) (the
“Exercise Price”), subject to the provisions and upon the terms and conditions hereinafter set
forth. This Warrant is issued in connection with the Amended and Restated Secured Term Loan Note
made by the Company in favor of the initial Holder dated as of the date hereof (the “Note”).
Unless otherwise defined in this Warrant, capitalized terms defined in the Note are used in this
Warrant as defined in the Note.

     This Warrant replaces and is being delivered in exchange for the Warrant to Purchase Units of
Advanced BioEnergy, LLC, dated October 17, 2007 and numbered No. 1 issued by the Company to the
Holder (the “Prior Warrant”), and as of the date hereof the Prior Warrant shall be terminated and
have no further force and effect. The Holder shall surrender the Prior Warrant in exchange for
this Warrant.

Exercise; Payment.

     Exercise Period. This Warrant may be exercised in whole or part by the Holder during
the term (as set forth in Section 11) and in compliance with the provisions of this Warrant
at any time after the date of issuance set forth above (the
“Warrant Date”), by the surrender of
this Warrant (with the notice of exercise form attached hereto as Exhibit A (the “Notice of
Exercise”) duly executed) at the principal office of the Company. If this Warrant shall have been
exercised in part, the Company shall, at the time of delivery of the certificate or certificates
representing Warrant Units, deliver to the Holder a new Warrant evidencing the rights of the Holder
to purchase the unpurchased Warrant Units, which new Warrant shall in all other respects be
identical with this Warrant, or at the request of the Holder, appropriate notation may be made on
this Warrant and the same returned to the Holder.

 

 

     Cash Exercise. Upon exercise of this Warrant, the Holder shall pay the Company an
amount equal to the product of (x) the Exercise Price multiplied by (y) the total number of Warrant
Units purchased pursuant to the Exercise of this Warrant, by wire transfer or check payable to the
order of the Company. The Holder shall be deemed to have become the holder of record of, and shall
be treated for all purposes as the record holder of, the Warrant Units represented by such exercise
(and such Warrant Units shall be deemed to have been issued) immediately prior to the close of
business on the date upon which this Warrant is exercised.

     Net Exercise. The Exercise Price also may be paid at the Holder’s election by
surrender of all or a portion of the Warrant for Units to be exercised under this Warrant (“Net
Exercise”). If the Holder elects the Net Exercise method, the Company will issue Warrant Units in
accordance with the following formula:

          Where:

X =      the number of Warrant Units to be issued upon exercise of the Warrant

Y =      the number of Warrant Units requested to be exercised

A =      the fair market value of 1 Unit on the date of exercise of this Warrant

B =      the Exercise Price

For purposes of the above calculation, the fair market value of a Unit shall mean:

          if at any time the Units are not listed on any securities exchange or traded in the
over-the-counter market, the fair market value of the Units shall be the highest price per Unit
which the Company could obtain from a willing buyer (other than an employee, director or
“Affiliate” of the Company, as such term is defined in Rule 405 under the Securities Act of 1933,
as amended (the “Securities Act”) for Units sold by the Company, as determined in good faith by its
Directors (as defined in the LLC Agreement);

          if the exercise is in connection with the conversion of the Units to common stock of the
Company (“Common Stock”) in order to facilitate a public offering of such Common Stock, and if the
Company’s Registration Statement relating to such initial public offering has been declared
effective by the SEC, then the fair market value per Unit shall be the initial “Price to Public” of
the Common Stock specified in the final prospectus with respect to the offering, giving effect to
the conversion mechanism with respect to such conversion of the Units to Common Stock;

          if the exercise is not in connection with a public offering, and:

               if the Units (or the Common Stock, if the Units have been converted to Common Stock) are
traded on a securities exchange, the fair market value shall be deemed to be the average of the
closing prices over a 5 day period ending 3 days before the day the fair market value of the Units
or the Common Stock, as applicable, is being determined; or

2

 

               if the Units (or the Common Stock, if the Units have been converted to Common Stock) are
traded over-the-counter, the fair market value shall be deemed to be the average of the closing bid
and asked prices quoted on the principal market on which or through which the Units or the Common
Stock, as applicable, are traded over the 5 day period ending 3 days before the day the fair market
value of the Units or the Common Stock, as applicable, is being determined;

          if property or securities in addition to or in substitution for Units shall be issuable upon
exercise of the Warrant, the fair market value of such property (to the extent such property does
not include a security which is listed on any securities exchange or traded in the over-the-counter
market, in which fair market value shall be calculated as provided in Section 1(c)(i) -
(iii) above) shall be determined in good faith by the Company’s Directors (as defined in the
LLC Agreement).

     Exercise Prior to Expiration. To the extent this Warrant has not been previously
exercised as to any Warrant Units issuable hereunder, and if the fair market value of one Warrant
Unit immediately before expiration of the Warrant is greater than the Exercise Price then in
effect, this Warrant shall be deemed automatically exercised pursuant to the Net Exercise
provisions in Section 1(c) (even if not surrendered) immediately before its expiration. In
such event, the fair market value of one Warrant Unit shall be determined pursuant to Section
1(c). To the extent this Warrant or any portion thereof is deemed automatically exercised
pursuant to this Section 1(d), the Company agrees to promptly notify the Holder of the
number of Units, if any, and any other property, which the Holder is entitled to receive by reason
of such automatic exercise.

     Unit Certificates. In the event of the exercise of this Warrant, certificates for the
Warrant Units so purchased shall be delivered to the Holder within a reasonable time after
exercise, to the extent that the Units are certificated.

Units Fully Paid; Reservation of Units. All of the Units issuable upon the exercise of this
Warrant, upon issuance and receipt by the Company of the Exercise Price therefor (or upon Net
Exercise thereof, as provided in Section 1(c)), shall be fully paid and nonassessable, and
free from all preemptive rights, rights of first refusal or first offer, taxes, liens and charges
with respect to the issuance thereof. During the period within which the rights represented by
this Warrant may be exercised, the Company shall at all times have authorized and reserved for
issuance a sufficient number of Units to provide for the exercise of this Warrant.

Adjustment of Exercise Price and Number of Units. The number and kind of Warrant Units purchasable
upon the exercise of this Warrant and the Exercise Price payable therefor shall be subject to
adjustment from time to time upon the occurrence of certain events, as follows:

     Unit Distributions, Subdivisions, Combinations. If the Company shall (i) make a
distribution in respect of the Units in additional Units (or securities convertible into,
exchangeable for or otherwise entitling the registered holder to receive Units), (ii) subdivide the
outstanding Units into a greater number of Units or (iii) combine the outstanding Units into a
smaller number of Units, the number of Units purchasable upon exercise of this Warrant immediately
prior to the record date applicable to such event shall be adjusted so that the Holder shall
thereafter be entitled to receive that kind and number of Units or other securities of the Company
that the Holder would have owned or have been entitled to receive after the happening of any of the
events described above, had the Warrant been exercised immediately prior to the happening of such
event or any record date with respect thereto. The Exercise Price per Warrant Unit purchasable
upon exercise of any Warrant shall be subject to adjustment from time to time such that upon each
adjustment of the number of Warrant Units purchasable pursuant to this Section 3(a), the
Exercise Price shall be reduced or increased, as the case may be, to a price determined by dividing
the aggregate

3

 

Exercise Price of all Warrant Units in effect prior to such adjustment by the total maximum
number of Warrant Units purchasable upon the exercise of all Warrants immediately after such
adjustment.

     Reorganization or Reclassification. In case of any capital reorganization or
reclassification of the equity interests of the Company, or the conversion of the Company into a
corporation (whether pursuant to a merger, consolidation, statutory conversion or otherwise), each
Warrant shall thereafter be exercisable from the number of Units or other securities or property
receivable upon such capital reorganization, reclassification or conversion, as the case may be, by
a holder of the number of Units into which the Warrant was exercisable immediately prior to such
capital reorganization, reclassification or conversion; and, in any such case, appropriate
adjustment shall be made in the application of the provisions herein set forth with respect to the
rights and interests thereafter of the Holder of the Warrant to the end that the provisions set
forth herein shall thereafter be applicable, as nearly as reasonably may be, in relation to any
shares of stock or other securities or property thereafter deliverable upon the exercise of the
Warrant.

     Issuance of Securities Under Certain Circumstances.

          If the Company shall issue or sell (or, in accordance with clause (ii) below, shall be deemed
to have issued or sold) any Units (other than Excluded Units, as defined below) without
consideration or for a consideration per unit that is less than the Exercise Price in effect
immediately prior to such issuance or sale, as adjusted for any unit splits, combinations, unit
dividends or similar transactions after the date hereof, then, effective immediately upon such
issuance or sale, (a) this Warrant shall immediately become exercisable for such additional Warrant
Units as are necessary to maintain the percentage ownership interest in the Company’s Units
(calculated on an as-converted, fully diluted basis assuming the issuance of all outstanding
options and warrants other than this Warrant) held by the Holder immediately prior to such issuance
and (b) the Exercise Price in effect immediately prior to such issuance or sale shall be reduced,
concurrently with such issuance or sale, to the consideration per Unit received by the Company for
such issuance, sale or deemed issuance of such additional Units; provided that if such
issuance, sale or deemed issuance was without consideration, then the Company shall be deemed to
have received an aggregate of $0.01 of consideration for all such additional Units issued, sold or
deemed to be issued. Adjustments shall be made successively whenever such an issuance or sale is
made.

          For the purpose of determining the adjusted Exercise Price under Section 3(c), the
following shall be applicable:

               If the Company in any manner issues or grants any Option Rights or Convertible Securities
(each as defined below) and the price per unit for which Units are issuable upon the exercise of
such Option Rights or upon conversion or exchange of such Convertible Securities is less than the
Exercise Price, then the total maximum number of Units issuable upon the exercise of such Option
Rights or upon conversion or exchange of the total maximum amount of such Convertible Securities
(or any Convertible Securities issuable upon the exercise of such Option Rights) shall be deemed to
be outstanding and to have been issued and sold by the Company for such lesser price per unit. For
purposes of this paragraph, the price per unit for which a Unit is issuable upon exercise of Option
Rights or upon conversion or exchange of Convertible Securities (or any Convertible Securities
issuable upon exercise of Option Rights) shall be determined by dividing (x) the total amount, if
any, received or receivable by the Company as consideration for the issuing or granting of such
Option Rights or Convertible Securities, plus the minimum aggregate amount of additional
consideration payable to the Company upon the exercise of all such Option Rights or the exchange or
conversion of all such Convertible Securities (plus in the case of such Option Rights which relate
to Convertible Securities, the minimum aggregate amount of additional consideration, if any,
payable to the Company upon the issuance or sale of such Convertible Securities and the conversion
or exchange thereof) by (y) the total maximum number of Units issuable

4

 

upon exercise of such Option Rights or Convertible Securities (or upon the conversion or
exchange of all such Convertible Securities issuable upon the exercise of such Option Rights).

               If the purchase price provided for in any Option Rights, the additional consideration, if any,
payable upon the issuance, conversion or exchange of any Convertible Securities or the rate at
which any Convertible Securities are convertible into or exchangeable for Units decreases at any
time, then the number of Warrant Units issuable upon the exercise of this Warrant and the Exercise
Price (each as in effect at the time of such decrease) shall be readjusted to number of Warrant
Units and the Exercise Price which would have been in effect at such time had such Option Rights or
Convertible Securities still outstanding provided for such decreased purchase price, additional
consideration or changed conversion rate, as the case may be, at the time initially granted, issued
or sold.

               If any Units, Option Rights or Convertible Securities are issued or sold or deemed to have
been issued or sold for cash, then the consideration received therefor shall be deemed to be the
gross amount received by the Company therefor. If any Units, Option Rights or Convertible
Securities are issued or sold for consideration other than cash, then the amount of consideration
received by the Company shall be the fair value of such consideration determined in good faith by
the Directors of the Company.

          For purposes of this Section 3(c):

               “Convertible Securities” means any securities or other obligations issued or issuable by the
Company or any other Person that are exchangeable for, or convertible into, (i) any Units or (ii)
any securities exchangeable for, or convertible into, any Units.

               “Excluded Units” means, collectively, (i) Units or Option Rights issued in any of the
transactions described in Sections 3(a) or 3(b), (ii) Units issued or issuable to officers,
directors or employees of, or consultants to, the Company pursuant to equity incentive plans or
agreements on terms approved by the Directors of the Company (including Units issuable upon
exercise of the options outstanding on the date hereof) in an amount not to exceed [                    ] Units
in the aggregate during the term of this Warrant [a number of units equal to 5% of all Units on a
full diluted basis to be entered-to be completed upon ABE’s confirmation of the size of the option
pool on a pro forma basis, after giving effect to the issuance pursuant to the Reg. D offering],
(iii) Units issued after the date hereof upon the exercise of other Option Rights or the exchange
or conversion of Convertible Securities in each case outstanding on the date hereof and (iv) the
issuance of this Warrant or any Warrant Units pursuant to this Warrant.

               “Option Rights” means any warrants, options or other rights to subscribe for or purchase, or
obligations to issue, any Units, or any Convertible Securities, including, without limitation, any
options or similar rights issued or issuable under any employee equity incentive plan, pension plan
or other employee benefit plan of the Company.

     Notice of Certain Transactions. In the event that the Company shall propose at any
time to effect any action of the type described in Sections 3(a), (b) or (c), or any right
to subscribe for or purchase any evidences of its indebtedness, any units or capital stock of any
class or any other securities or property, or to receive any other right, or take any similar
extraordinary action affecting the Company’s Units or equity capital (including but not limited to
the transfer of substantially all of the Company’s assets), then, in connection with each such
event, the Company shall send notice thereof to all Holders no later than 10 days after the earlier
to occur of (i) the date on which such event became effective or (ii) the record date for such
event, in each case specifying in reasonable detail what the transaction or event consists of and,
if

5

 

applicable, the aggregate amount or value of any cash or property distributed, paid, purchased
or received by the Company in connection therewith.

Investment Representations of Holder; Transfer of Warrant and Warrant Units.

     Holder represents and warrants to the Company that: (i) it is an “Accredited Investor” as that
term is defined in Rule 501 of Regulation D promulgated under the Securities Act; and (ii) it has
the ability to bear the economic risks of such Holder’s prospective investment, including a
complete loss of Holder’s investment in the Warrants and the Warrant Units; and (iii) the Warrants
and the Warrant Units are purchased for the Holder’s own account, and not with view to distribution
of either the Warrants or any securities purchasable upon exercise thereof; provided however that
the Holder may transfer the Warrant and any Warrant Units to any Affiliate of the Holder.

     This Warrant and the Warrant Units may only be Transferred (as defined in the LLC Agreement)
in compliance with federal and state securities laws. At the time of the surrender of this Warrant
in connection with any Transfer of this Warrant or the Transfer of the Warrant Units (except to an
Affiliate), the Company may require, as a condition of allowing such Transfer (i) that the Holder
or transferee of this Warrant or the Warrant Units, as the case may be, furnish to the Company a
written opinion of counsel that is reasonably acceptable to the Company to the effect that such
Transfer may be made without registration under the Securities Act or qualification under any state
securities laws and/or (ii) that the Holder or transferee execute and deliver to the Company an
investment representation letter in form and substance acceptable to the Company and substantially
in the form of Exhibit B hereto and the transfer application used by the Company, a form of
which has previously been provided to the Holder. Transfer of this Warrant and all rights
hereunder, in whole or in part, in accordance with the foregoing provisions, shall be registered on
the books of the Company to be maintained for such purpose, upon surrender of this Warrant at the
principal office of the Company or the office or agency designated by the Company, together with a
written assignment of this Warrant substantially in the form of Exhibit C hereto duly
executed by the Holder or its attorney-in-fact. Upon such surrender and, if required, such
payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the
assignee or assignees and in the denomination specified in such instrument of assignment, and shall
issue to the Holder a new warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall be deemed cancelled.

     Subject to the requirements of Section 4(b) of this Warrant and Section 9.2 of the LLC
Agreement, the Holder shall be entitled to Transfer all or any portion of the Warrant Units to any
Person, whether or not such Person is an Affiliate of the Holder, provided that
notwithstanding the provisions of Section 9.2(b)(i) of the LLC Agreement, a Transfer to any Person
that would otherwise require the consent of the Directors in writing under such section, shall be
subject to the consent of a majority of the Directors (as defined in the LLC Agreement), such
consent not to be unreasonably withheld, delayed or conditioned.

Legend.

     Each certificate evidencing the Warrant Units issued upon exercise of this Warrant shall be
stamped or imprinted with a legend substantially in the following form:

THE TRANSFERABILITY OF THE MEMBERSHIP UNITS REPRESENTED BY THIS
CERTIFICATE IS RESTRICTED. SUCH UNITS MAY NOT BE SOLD, ASSIGNED, OR
TRANSFERRED, NOR WILL ANY ASSIGNEE, VENDEE, TRANSFEREE OR ENDORSEE
THEREOF BE RECOGNIZED

6

 

AS HAVING ACQUIRED ANY SUCH UNITS FOR ANY PURPOSES, UNLESS AND TO
THE EXTENT SUCH SALE, TRANSFER, HYPOTHECATION, OR ASSIGNMENT IS
PERMITTED BY, AND IS COMPLETED IN STRICT ACCORDANCE WITH, THE TERMS
AND CONDITIONS SET FORTH IN THE OPERATING AGREEMENT OF THE COMPANY.

THE UNITS REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, OFFERED
FOR SALE, OR TRANSFERRED IN ABSENCE OF AN EFFECTIVE REGISTRATION OR
EXEMPTION UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND UNDER
APPLICABLE STATE SECURITIES LAW.

     Removal of Legend and Transfer Restrictions. Any legend endorsed on a certificate pursuant to
this Section 5 shall be removed, and the Company shall issue a certificate without such
legend to the holder of such Warrant Units if (i) such Warrant Units are resold pursuant to an
effective registration statement under the Securities Act, (ii) if such holder satisfies the
requirements of Rule 144(k) under the Securities Act or (iii) if such holder provides the Company
with an opinion of counsel for such holder of the Warrant Units, in form and substance reasonably
satisfactory to the Company, to the effect that a sale, transfer or assignment of such Warrant
Units may be made without registration and that upon such sale, transfer or assignment such Warrant
Units will not be deemed “restricted securities,” as such term is defined in Rule 144 under the
Securities Act.

Fractional Units. No fractional Warrant Units will be issued in connection with any exercise of
this Warrant, but in lieu of such fractional Units the Company shall make a cash payment therefor
upon the basis of the Exercise Price then in effect.

Rights as a Member. Except as set forth in Section 3, the Holder shall not be entitled to
vote, or receive dividends or distributions, or be deemed a holder of Units or a member of the
Company, nor shall anything contained herein be construed to confer upon the Holder any of the
rights of a member of the Company or any right to vote for the election of directors or upon any
matter submitted to members at any meeting thereof, or to give or withhold consent to any action
with respect to the Warrant Units, until this Warrant shall have been exercised and the Warrant
Units purchasable upon the exercise of this Warrant shall have become deliverable, as provided in
Section 1(b). Upon exercise of this Warrant, the Holder shall automatically be deemed to
be a Member (as defined in the LLC Agreement) of the Company with all rights of a Member, including
the Membership Voting Interest (as defined in the LLC Agreement), without any further approval of
the members, directors, officers or managers of the Company required; provided that the
Holder shall execute such documents as are reasonably requested by the Company to document the
Holder’s agreement to be bound by the terms and provisions of the LLC Agreement and evidence of the
authority of the Holder to execute and deliver such agreement to be so bound.

Information Rights. At all times when Holder is holding this Warrant (whether or not exercised in
part) or any Warrant Units, and if not already delivered pursuant to another agreement, the Company
will deliver to the Holder the financial statements delivered to the Members of the Company
pursuant to the LLC Agreement, including, without limitation, Section 7.3 thereof.

7

 

Registration Rights; Resales Under Rule 144.

     Registration Rights. If the Company at any time converts into a corporation, and the
Company, as converted, proposes to register any Common Stock solely for cash pursuant to a
registration statement under the Securities Act, other than a registration solely for the sale of
securities to participants in a Company stock or other incentive plan or in connection with a
transaction under Rule 145 promulgated under the Securities Act, the Company shall use its best
efforts to cause to be registered for resale under the Securities Act all of the Common Stock that
the Holder has requested to be registered on such registration statement.

     Compliance with Rule 144(c). If the Holder proposes to sell Common Stock, the Warrant
or any Warrant Units in compliance with Rule 144 under the Securities Act, then, upon Holder’s
written request the Company shall furnish to the Holder, within 3 days after receipt of such
request, a written statement confirming the Company’s compliance with the “Current Public
Information” requirements of Rule 144(c), as such Rule may be amended from time to time.

Parallel Rights; No Impairment. The Holder shall be entitled, but not required, to become a
signatory to and entitled to the benefits of, any investor rights agreement to the extent any such
agreement is entered into on or after the Warrant Date until the consummation of a Change of
Control (as defined in the Note), including any such agreement entered into in connection with a
Change of Control. The Company shall not, by amendment of its certificate of formation or the LLC
Agreement or through a reorganization, transfer of assets, consolidation, merger, dissolution,
issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed under this Warrant by the Company,
but shall at all times in good faith assist in carrying out of all the provisions of this Warrant
and in taking all such action as may be necessary or appropriate to protect Holder’s rights under
this Warrant against impairment.

Term of Warrant; Early Termination.

     This Warrant shall become exercisable on the Warrant Date and shall no longer be exercisable
as of 5:00 p.m., Central Time, on the date that is the five (5) year anniversary of the Warrant
Date (the “Exercise Period”).

     Notwithstanding Section 11(a), in the case of any consolidation of the Company with,
or merger of the Company into, any other Person, any merger of another Person into the Company
(other than a merger which does not result in any reclassification, conversion, exchange or
cancellation of outstanding securities as to which Warrants may then be exercised and other than a
merger solely to change the jurisdiction of organization of the Company) or any sale, transfer or
lease of all or substantially all of the assets of the Company to any Person, in each case during
the Exercise Period, the Company shall provide the Holder with written notice of such proposed
transaction, in reasonable detail, no less than 10 days prior to the consummation thereof, and this
Warrant shall terminate upon the consummation of such transaction unless exercised prior to such
consummation.

Registry of Warrants.

The Company shall maintain a registry showing the name and address of the registered holder of this
Warrant. Holder’s initial address, for purposes of such registry, is set forth below Holder’s
signature on this Warrant. Holder may change such address by giving written notice of such changed
address to the Company.

8

 

Miscellaneous.

     This Warrant shall be construed and enforced in accordance with and governed by the laws of
the State of Delaware, without giving effect to principles of conflicts of laws.

     The Company shall pay all expenses (including attorneys fees and expenses) in connection with,
and all taxes and other governmental charges that may be imposed in respect of, the issue or
delivery of any Warrant Units issuable upon the exercise of any Warrant (excluding any applicable
income taxes payable by the Holder); provided that the Company shall not be required to pay
any tax or other charge imposed in connection with any transfer involved in the issue of Warrant
Units in any name other than that of the Holder.

     The headings in this Warrant are for purposes of reference only, and shall not limit or
otherwise affect any of the terms hereof.

     The terms of this Warrant shall be binding upon and shall inure to the benefit of any
successors or assigns of the Company and of the Holder and of the Warrant Units issued or issuable
upon the exercise hereof.

     Any notice provided for or permitted under this Warrant shall be treated as having been given
(i) upon receipt, when delivered personally, (ii) one day after sending, when sent by commercial
overnight courier with written verification of receipt, (iii) upon confirmed transmission when sent
via facsimile on a business day prior to 5:00 pm (Central Time) or, if sent after 5:00 pm (Central
Time), the next business day after confirmed transmission, or (iv) three business days after
deposit with the United States Postal Service, when mailed postage prepaid by certified or
registered mail, return receipt requested, addressed at such address or facsimile number as set
forth on the signature page below, or at such other place of which the other party has been
notified in accordance with the provisions of this Section 13(e).

     This Warrant constitutes the full and entire understanding and agreement between the parties
with regard to the matters contained herein.

     Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in the case of any such loss, theft or destruction,
upon delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company
or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the
Company at the Holder’s expense will execute and deliver to the holder of record, in lieu thereof,
a new Warrant of like date and tenor.

     This Warrant and any provision hereof may be amended, waived or terminated only by an
instrument in writing signed by the Company and the Holder.

9

 

     IN WITNESS WHEREOF, the Company has caused this Warrant to be signed by its duly authorized
officer, all as of the day and year first above written.

     COMPANY:

	 	 	 	 	 
	 	 	ADVANCED BIOENERGY, LLC

a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 

	 	Notice Address:
	 	10201 Wayzata Blvd., Suite 250
	 

	 	 	 	Minneapolis, MN 55305
	 

	 	 	 	Attn: Richard Peterson
	 

	 	 	 	Facsimile: (763) 226-2728

	 	 	 	 	 
	     WARRANTHOLDER:	 	PJC CAPITAL LLC,

a Delaware limited liability company
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Robert P. Rinek
	 

	 	 	 	Co-President and Co-Chief Operating Officer

	 	 	 	 	 
	 

	 	Notice Address:	 	c/o Piper, Jaffray & Co.
	 

	 	 	 	800 Nicollet Mall
	 

	 	 	 	Minneapolis, MN 55402
	 

	 	 	 	Attn: Robert P. Rinek
	 

	 	 	 	Facsimile: (612) 303-1068

 

 

EXHIBIT A

NOTICE OF EXERCISE

	 	 	 	 	 
	TO:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 
	 

	 	 

	 	 

1. Cash
Exercise. The undersigned hereby elects to purchase                      Units (“Units”),
of ADVANCED BIOENERGY, LLC, a Delaware limited liability company (the
“Company”) pursuant to the
terms of Section 1(b) of the Warrant to Purchase Units dated [                    ], 2009, (the
“Warrant”), and tenders herewith payment of the Exercise Price (as such term is defined in the
Warrant) therefor.

2. Net Exercise. The undersigned hereby elects to effect a Net Exercise for                     
Units pursuant to Section 1(c) of the Warrant.

Please issue a certificate or certificates representing said                      Units in the name of the
undersigned or in such other name as is specified below:

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 

     The undersigned hereby represents and warrants that the aforesaid Units are being acquired for
the account of the undersigned for investment and not with a view to, or for resale, in connection
with the distribution thereof, and that the undersigned has no present intention of distributing or
reselling such shares.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

EXHIBIT B

FORM OF INVESTMENT REPRESENTATION LETTER

In connection with the acquisition of [warrants (the “Warrants”) to purchase                      Units
of ADVANCED BIOENERGY, LLC (the “Company”)] [Units of ADVANCED BIOENERGY, LLC (the
“Company”)] (the “Units”), by                      (the “Holder”) from
                    , the Holder hereby represents and warrants to the Company as follows:

The Holder has such knowledge and experience in financial and business matters that the Holder is
capable of evaluating the merits and risks of an investment in the Warrants and the Units issuable
upon the exercise thereof (collectively, the “Securities”); and, has the ability to bear
the economic risks of such Holder’s investment, including a complete loss of the Holder’s
investment in Securities.

The Holder, by acceptance of the [Warrants/Units], represents to the Company that the Warrants and
all securities acquired upon any and all exercises of the Warrants are purchased for the Holder’s
own account, and not with view to distribution of either the Warrants or any securities purchasable
upon exercise thereof in violation of applicable securities laws.

The Holder acknowledges that (i) the Securities have not been registered under the Act, (ii) the
certificate(s) representing the Securities shall bear a legend as set forth in the Warrant
Agreement until such Securities shall have been registered for resale by the Holder under the Act
that has been declared effective by the SEC; or (ii) in the opinion of counsel in form and
substance reasonably satisfactory to the Company, such Securities may be sold without registration
under the Act.

IN WITNESS WHEREOF, the Holder has caused this Investment Representation Letter to be executed in
its corporate name by its duly authorized officer this [___] day of [                    ], 20[___].

[Name]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

EXHIBIT C

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned owner of this Warrant for the purchase of Units of ADVANCED
BIOENERGY, LLC, a Delaware limited liability company (the
“Company”) hereby sells, assigns and
transfers unto the assignee named below all of the rights of the undersigned under this Warrant,
with respect to the number of Units set forth below:

	 	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	 

(Name and Address of Assignee)

	 	 
	 
	 	 
	 

(Number of Units)

	 	 

and does hereby irrevocably constitute and appoint                      attorney-in-fact to register
such transfer on the books of the Company, maintained for the purpose, with full power of
substitution in the premises.

	 	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

[Name]

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

 

ANNEX D

FORM OF CONTROL AGREEMENT

 

 

BLOCKED ACCOUNT CONTROL AGREEMENT

U.S. Bank National Association

	 	 	 	 	 	 	 
	 	 	 
	Attention
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	Street Address
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	City

	 	State
	 	Zip	 	 

Ladies and Gentlemen:

    Please be advised that pursuant to certain agreements between Advanced BioEnergy,
LLC, a Delaware limited liability company (“Company”) and PJC Capital LLC, a Delaware
limited liability company (“Lender”), Company has granted to Lender a security interest in all
rights of the Company with respect to account number                      (such account, together
with all substitutions and replacements therefor, the “Deposit Account”) located at U.S. Bank
National Association (“Depositary Bank”) and subject to the terms of the Deposit Agreements
(defined below).

1. Deposit Agreements. The terms and conditions of this Agreement are in addition to any deposit
account agreements and other related agreements that Company has with Depositary Bank, including
without limitation all agreements concerning banking products and services, treasury management
documentation, account booklets containing the terms and conditions of the Deposit Account,
signature cards, fee schedules, disclosures, specification sheets and change of terms notices
(collectively, the “Deposit Agreements”). The provisions of this Agreement shall supersede the
provisions of the Deposit Agreements only to the extent the provisions herein are inconsistent with
the Deposit Agreements, and in all other respects, the Deposit Agreements shall remain in full
force and effect. All items deposited into the Deposit Account shall be processed according to the
provisions of the Deposit Agreements, as amended by this Agreement.

2. Security Interest. Company has granted to Lender a security interest in, among other property,
the Deposit Account and all credits or proceeds thereto and all monies, checks and other
instruments held or deposited therein (all of which shall be included in the definition of the
“Deposit Account”). Company represents and warrants that there are no perfected liens or
encumbrances with respect to the Deposit Account and covenants with Lender that it shall not enter
into any acknowledgment or agreement that gives any other person or entity except Lender control
over, or any other security interest, lien or title in, the Deposit Account.

3. Control. In order to provide Lender with control over the Deposit Account, Company agrees that
Depositary Bank may comply with any and all orders, notices, requests and other instructions
originated by Lender directing disposition of the funds in the Deposit Account without any further
consent from Company, even if such instructions are contrary to any of Company’s instructions or
demands or result in Depositary Bank dishonoring items which may be presented for payment. Company
agrees that instructions from Lender may include the giving of stop payment orders for any items
presented to the Deposit Account, instructions to transfer funds to or for the benefit of Lender or
any other person or entity, and instructions to close the Deposit Account.

4. Access to Deposit Account. [CHECK ONE BOX ONLY]

	 	X 	 	(a) The Deposit Account shall be under the sole dominion and control of Lender.
Neither Company, nor any other person or entity, acting through or under Company,
shall have any control over the use of, or any right to withdraw any amount from, the
Deposit Account. Depositary Bank is hereby authorized and instructed to transfer all
available

 

 

	 	 	 	funds (subject to Depositary Bank’s funds availability policy) in the Deposit
Account to such account and at such times as Lender may direct in writing to
Depositary Bank.

	 	o	 	(b) The Deposit Account shall be under the control of Lender; provided, that
unless and until Depositary Bank receives Lender’s written notice that Company’s
access to the funds in the Deposit Account is terminated, Depositary Bank shall
honor Company’s instructions, notices and directions with respect to the transfer or
withdrawal of funds from the Deposit Account, including paying or transferring the
funds to Company or any other person or entity.
	 
	 	 	 	Upon receipt of a written notice from Lender instructing Depositary Bank to
terminate Company’s access to funds in the Deposit Account, Depositary Bank shall
transfer all available funds (subject to Depositary Bank’s funds availability
policy) in the Deposit Account in accordance with Lender’s written instructions.
	 
	 	 	 	As for any such written notice sent under this subsection (b) to Depositary Bank,
Depositary Bank shall endeavor to promptly transfer to Lender the available funds as
referenced above, but Depositary Bank shall not be obligated to do so until it
provides written confirmation to Lender that it received Lender’s notice of
direction.

5. Subordination by Depositary Bank. Company and Depositary Bank acknowledge notice of and
recognize Lender’s continuing security interest in the Deposit Account and in all items deposited
in the Deposit Account and in the proceeds thereof. Depositary Bank hereby subordinates any
statutory or contractual right or claim of offset or lien resulting from any transaction which
involves the Deposit Account if Section 4(a) is checked above or upon Depositary Bank’s
confirmation of receipt of Lender’s notice under Section 4(b). Notwithstanding the preceding
sentence, in the event any fees and expenses (“Fees”) related to the Deposit Account go unpaid or
any checks or other items which were deposited or credited to the Deposit Account are returned,
reversed, refunded or charged back for insufficient funds or for any other reason (“Returned
Items”), Depositary Bank may charge the Deposit Account or other accounts of Company maintained at
Depositary Bank. If there are insufficient funds in the Deposit Account or any of Company’s other
accounts to cover the Fees and Returned Items, Company agrees to immediately reimburse Depositary
Bank for the amount of such shortfall. If Company fails to pay the amount demanded by Depositary
Bank, Lender agrees to reimburse Depositary Bank within three (3) business days of demand thereof
by Depositary Bank for any Returned Items to the extent Lender received payment in respect thereof
pursuant to section 4.

6. Indemnity. Company agrees to defend, indemnify and hold Depositary Bank and its
directors, officers, employees, attorneys, successors and assigns (collectively “Depositary
Bank”) harmless from and against any and all claims, losses, liabilities, costs, damages
and expenses, including, without limitation, reasonable legal and accounting fees
(collectively, “Claims”), arising out of or in any way related to this Agreement, excepting
only liability arising out of Depositary Bank’s gross negligence or willful misconduct.
Without regard to Company’s indemnification obligations to Depositary Bank, Lender agrees
to: (i) reimburse Depositary Bank for any Returned Items (the proceeds of which were
received by Lender) and (ii) defend, indemnify and hold Depositary Bank harmless from and
against any and all Claims arising out of Depositary Bank’s compliance with Lender’s
instructions. Lender’s obligations to Depositary Bank hereunder shall in no way operate to
release Company from its obligations to Lender and shall not impair any rights or remedies
of Lender to collect any such amounts from Company. IN NO EVENT WILL DEPOSITARY BANK BE
LIABLE FOR ANY INDIRECT DAMAGES, LOST PROFITS, SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES
WHICH ARISE OUT OF OR IN CONNECTION WITH THE SERVICES CONTEMPLATED BY THIS AGREEMENT EVEN
IF DEPOSITARY BANK HAS BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGES.

7. Depositary’s Bank’s Responsibility. The duties of Depositary Bank are strictly limited to those
set forth in this Agreement and Depositary Bank is not acting as a fiduciary for any party hereto.
Depositary Bank shall be protected in relying on any form of instruction or other notice purporting
to be from Lender which Depositary Bank, in good faith, believes to be genuine and what it purports
to be.

 

 

Depositary Bank shall have no duty to inquire as to the genuineness, validity, or enforceability of
any such instruction or notice even if Company notifies Depositary Bank that Lender is not legally
entitled to originate any such instruction or notice. The Deposit Account and all actions and
undertakings by Depositary Bank shall be subject to all rules and regulations relating to the
Deposit Account and to applicable law.

8. Termination. This Agreement shall not be terminable by Company so long as any obligations of
Company to Lender are outstanding and unpaid. This Agreement may be terminated by Depositary Bank
upon thirty (30) days prior written notice to all parties; provided, however, that Depositary Bank
may terminate this Agreement immediately in the event Lender fails to make payments to Depositary
Bank in accordance with section 5 above. This Agreement may be terminated by Lender in a writing
sent to Depositary Bank in which Lender releases Depositary Bank from any further obligation to
comply with instructions originated by Lender with respect to the Deposit Account. Any available
funds remaining in the Deposit Account upon termination or deposited in thereafter shall be
transferred in accordance with the provisions of section 4 above after deduction for any amounts
otherwise reimbursable to Depositary Bank as provided hereunder. Termination shall not affect the
rights and obligations of any party hereto with respect to any period prior to such termination.

9. Legal Process and Insolvency. In the event Depositary Bank receives any form of legal process
concerning the Deposit Account, including, without limitation, court orders, levies, garnishments,
attachments, and writs of execution, or in the event Depositary Bank learns of any insolvency
proceeding concerning Company, including, without limitation, bankruptcy, receivership, and
assignment for the benefit of creditors, Depositary Bank will respond to such legal process or
knowledge of insolvency in the normal course or as required by law.

10. Governing Law. This Agreement shall be governed by and construed in accordance with the laws
of the State of Minnesota. The parties agree that Minnesota is the “bank’s jurisdiction” for
purposes of the Uniform Commercial Code.

11. Notices. Except as otherwise provided in this Agreement, all notices and other communications
required under this Agreement shall be in writing and may be personally served or sent by United
States Mail or courier or by facsimile, and shall be deemed given when delivered in person or
received by facsimile or upon deposit in the United States Mail or with such courier at the address
specified below. Any party may change its address for notices hereunder by notice to all other
parties given in accordance with this section 11.

	 	 	 	 	 
	 

	 	Company:
	 	Advanced BioEnergy, LLC
	 

	 	 	 	10201 Wayzata Blvd., Suite 250
	 

	 	 	 	Minneapolis, MN 5530
	 

	 	 	 	Attn: Richard Peterson
	 

	 	 	 	Facsimile: (763) 226-2728
	 

	 	 	 	Telephone:                                         
	 
	 	 	 	 
	 

	 	Lender:
	 	PJC Capital LLC
	 

	 	 	 	c/0 Piper Jaffray & Co.
	 

	 	 	 	800 Nicollet Mall
	 

	 	 	 	Minneapolis, MN 55402-7020
	 

	 	 	 	Attn: Robert P. Rinek, Co-President and Co-Chief Operating Officer
	 

	 	 	 	Facsimile: (612) 303-1068
	 

	 	 	 	Telephone: (612) 303-6306
	 
	 	 	 	 
	 

	 	Depositary Bank:
	 	U.S. Bank National Association
	 

	 	 	 	                                                            

 

 

	 	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Attn:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Facsimile:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Telephone:	 	 	 	 
	 

	 	 	 	 	 	 

12. Miscellaneous. This Agreement shall bind and benefit the parties and their respective
successors and assigns. This Agreement may be amended only with the prior written consent of all
parties hereto. None of the terms of this Agreement may be waived except as Depositary Bank may
consent thereto in writing. No delay on the part of Depositary Bank in exercising any right, power
or privilege hereunder shall operate as a waiver hereof, nor shall any single or partial exercise
of any right, power or privilege hereunder preclude other or further exercise thereof or the
exercise of any right, power or privilege. The rights and remedies specified herein are cumulative
and are not exclusive of any rights or remedies which Depositary Bank would otherwise have.

13. Counterparts. This Agreement may be executed in any number of counterparts and by the different
parties hereto in separate counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same instrument.

14. Jury Trial Waiver. COMPANY, LENDER AND DEPOSITARY BANK HEREBY WAIVE ALL RIGHTS TO TRIAL BY
JURY IN ANY JUDICIAL PROCEEDING ARISING OUT OF, OR RELATING TO, THIS AGREEMENT OR SERVICES RENDERED
IN CONNECTION WITH THIS AGREEMENT.

Dated as of:                                         

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	ADVANCED BIOENERGY, LLC,
	 	 	as COMPANY
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	PJC CAPITAL LLC,
	 	 	as LENDER
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ACCEPTED:	 	U.S. BANK NATIONAL ASSOCIATION,
	 	 	as DEPOSITARY BANK
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:

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