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Lower Costs Are Good for Customers. Pennichuck and its Board of Directors have
determined that the “one time” refilling of the RSF funds with this CoBank loan, will allow PEU
to continue to provide safe, adequate and reliable water service to their customers on a cost-
effective basis. The terms of the loan are very favorable compared to other alternatives and will
result in lower financing costs and/or a better and more immediate “fix” than the cash flow
implications from the timing of recovery and regulatory lag that would be available under those
other options to refill the RSF funds, as may be available in the current rate case. These lower
financing costs, as well as the rate stability that will be achieved with the new MOEF in PEU’s
rate structure, will be passed on to customers.

Other Approvals. Asa regulated public utility, PEU must obtain approval of the term loan
from the New Hampshire Public Utilities Commission (“NHPUC”), which will approve the term
loan if it finds the loan to be consistent with the public good. PEU has filed a petition for
approval with the NHPUC contemporaneously with this notice to the City and expects the
NHPUC to consider the petition promptly.

Requested Approvals. For the reasons described above, Pennichuck respectfully requests that
the City, acting in its capacity as sole shareholder of Pennichuck and pursuant to Article 1X(3) of
Pennichuck’s Articles of Incorporation, authorize the following actions:

RESOLVED, that the City hereby approves the loan to Pennichuck East Utility, Inc.
from CoBank, ACB, in an amount of up to $2,550,000, with a 25-year amortization
schedule; and

FURTHER RESOLVED, that the City hereby approves the guaranty by Pennichuck
Corporation of the payment by Pennichuck East Utility, Inc. of the loan authorized in
the prior resolution; and

FURTHER RESOLVED, that the City hereby authorizes Pennichuck Corporation and
Pennichuck East Utility, Inc., their Boards of Directors, and their Officers, to take any
and all actions required to obtain all necessary approvals with respect to the actions
described in these resolutions and to execute and deliver such documents as are
necessary to affect the CoBank loan, and the guaranty described in these resolutions.

Respectfully submitted,

PENNICHUCK CORPORATION

Larry D. Goodhue

Chief Executive Officer

cc. Mayor James Donchess

Attachment A

MLA No. RX0848

MASTER LOAN AGREEMENT

THIS MASTER LOAN AGREEMENT (this “Agreement”) is entered into as of February 9,
2010, between PENNICHUCK EAST UTILITY, INC., a New Hampshire corporation (the
“Company”), and CoBANK, ACB, a federally chartered instrumentality of the United States

(“CoBank”).
BACKGROUND

From time to time, CoBank may make loans and extend other types of credit to or fer the account
of the Company. In order to facilitate the making of such loans and other types of credit, the parties are
entering into this Agreement.

NOW, THEREFORE, for gocd and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:

ARTICLE 1
DEFINITIONS AND RULES OF INTERPRETATION

SECTION 1.01. Definitions. Capitalized terms used in this Agreement and defined in
Exhibit A hereto shall have the meanings set forth in that Exhibit.

SECTION 1.02. Rules of Interpretation. The rules of interpretation set forth in Exhibit A
shall apply to this Agreement.

ARTICLE 2
THE SUPPLEMENTS

SECTION 2.01. Promissory Notes and Supplements. [n the event the Company desires to
borrow from CoBank and CoBank is willing to lend to the Company, the parties wilt enter into a
promissory note and supplement hereto (each a “Promissory Note and Supplement"), Each Promissory
Note and Supplement will set forth CoBank’s commitment to make a loan or loans to the Company, the
amount of the loan(s), the purpose of the loan(s), the interest rate or interest rate options applicable to the
foan(s), the Company's promise to repay the loans, and any other terms and conditions applicable to the
particular loan(s). Each loan will be governed by the terms and conditions set forth in this Agreement and
in the Promissory Note and Supplement relating to that [oan. In the absence of a Promissory Note and
Supplement hereto duly executed by CoBank, CoBank shal] have no obligation to make a loan to the

Company under this Agreement.

SECTION 2.02. Notice and Manner of Borrowing New Loans. Except as otherwise
provided in a Promissory Note and Supplement: (A) loans will be made available on any Business Day
upon the telephonic or written request of an authorized employee of the Company (which request, if
made telephonically, shail be promptly confirmed in writing if required by CoBank); (B} requests for
loans must be received by 12:00 noon Company’s local time on the date the loan is to be made; and (C)
loans will be made available by wire transfer of immediately available funds to such account or accounts

as may be authorized by the Company on forms supplied by CoBank.

SECTION 2.03. Method of Payment. The Company shall make ail payments to CoBank
under this Agreement and each Promissory Notc and Supplement hereto by wire transfer of immediately
available funds, by check, or, if specified by separate agreement between the Company and CoBank, by
automated clearing house (ACH) or other similar cash handling processes. Wire transfers shall be made
to ABA No. 307088754 for advice to and credit of "CoBANK" (or to such other account as CoBank may
direct by notice). The Company shall give CoBank telephonic notice no later than 12:00 noon
Company’s local time of its intent to pay by wire, and funds received after 3:00 p.m. Company’s local
time shal! be credited on the next Business Day. Checks shall be mailed to CoBANK, Department 167,
Denver, Colorado 80291-0167 {or to such other place as CoBank may direct by notice). Credit for
payment by check wil! not be given until the latter of the next Business Day after receipt of the check or
the Business Day on which CoBank receives immediately available funds.

SECTION 2.04. Security and Guaranty.

(A) Security. The Company's obligations hereunder and under each other Loan
Document to which the Company is a party (whether executed contemporaneously herewith or at a later
date) shall be secured by a statutory first priority Lien on all equity which the Company may now own or
hereafter acquire or be allocated in CoBank and all proceeds thereof.

(B} Credit Support. [n addition to the above, the Company’s obligations hereunder
and under each Promissory Note and Supplement hereto shall be guarantied by Pennichuck Corporation
(the “Guarantor”) pursuant to a guarantee of payment in form and content acceptable to CoBank (as
amended or restated from time to time, the “Guaranty”).

ARTICLE 3
CONDITIONS PRECEDENT

SECTION 3.01. Conditions Precedent to the Initial Promissory Notes and Supplements
Hereto. CoBank's obligation to make a loan or loans under the initial Promissory Note and Supplement
hereto (or, in the event that more than one Promissory Note and Supplement is being executed on the
date hereof, each initial Promissory Note and Supplement hereto), is subject to the following conditions
precedent, which, in the case of instruments and documents, must be in form and content acceptable to

CoBank:

(A) This Agreement. CoBank shall have received a duly executed original of this
Agreement.

(B) Guaranty and Related Documents. (1) A duly executed original Guaranty; (2)
copies, certified by the Secretary of the Guarantor as of the date hereof (cr as of another date acceptable
to CoBank), of such board resolutions, evidence of incumbency, and other evidence as CoBank may
require that the Guaranty has been duly authorized, executed and delivered by the Guarantor; and (3) an
opinion of counsel to the Guarantor, which counsel and opinion must be in form and content acceptable

to CoBank.

(C) Conseat and Agreement. A consent and agreement (the “Consent and
Agreement”) between the Company, Pennichuck Water Works, Inc. (“FP WW”), and CoBank in form and
content acceptable to CoBank.

(D) Secretary’s Certificate. CoBank shall have received an original certificate of
the Secretary of the Company dated as of the date hereof (or as of another date acceptable to CoBank)

PSNH | 56693090037197960006 BROAD ST, Nashua, NH 03063 W277 | 12/27/20 $0.07010
HOLMAN STADIUM

PSNH | 56693090037203170003 CONCESSION, Nashua, NH 03064 11/22/17 | 12/22/20 $0.07010

PSNH | 56693090037213011006 DW HIGHWAY, Nashua, NH 03060 1277 | 12/27/20 $0.07010

PSNH | 56693090037257080006 MILFORD RD, Nashua, NH 03064 W1M4iN7 | 12/14/20 $0.07010
LAKE ST @ MAIN, Nashua, NH

PSNH | 56693090037252060000 03060 11/22I17 | 12/22/20 $0.07010

PSNH | 56693090037253060008 E HOLLIS ST, Nashua, NH 03060 11/22/17 | 12/22/20 $0.07010

PSNH | 56693090037282390000 LEDGE ST, Nashua, NH 03060 11/22/17 | 12/22/20 $0.07010

PSNH | 56693090037292390009 Bridge St, Nashua, NH 03060 14/22/17 | 12/22/20 $0.07010

PSNH | 56693090037462060000 FACTORY ST, Nashua, NH 03060 11/22/17 | 12/22/20 $0.07010

PSNH | 5669309003749721 1000 CHANDLER ST, Nashua, NH 03064 | 11/22/17! 12/22/20 $0.07010

PSNH | 56693090037528070008 AMHERST ST, Nashua, NH 03064 11/22/17 | 12/22/20 $0.07010
207 MANCHESTER ST, Nashua,

PSNH | 56693090037529901006 NH 030648111 1W27/17 | 12/27/20 $0.07010
Somerset BLVD, Kessler Farm Lite,

PSNH | 56693080037610060009 Nashua, NH 03060 11/22/17 | 12/22/20 $0.07010

PSNH | 56693090037957480009 Cottage St, Nashua, NH 03060 11/28/17 | 12/28/20 $0.07010

PSNH | 56693090037985801004 CANAL ST, Nashua, NH 03064 11/28/17 | 12/28/20 $0.07010
840 W HOLLIS ST LANDFILL CTR,

PSNH | 56819226036015333002 Nashua, NH 030623541 ViM4/17 | 12/14/20 $0.07010

PSNH | 80001830662 Saw mil Rd, Nashua, NH 03060 11/08/17 | 12/09/20 $0.07010
229 Main St, Nashua, NH

PSNH } 80009660160 030602938 11/29/17 | 12/29/20 $0.07010

TO ACCEPT THE PRICING ABOVE, PLEASE FAX A SIGNED COPY OF THIS AGREEMENT TO US AT 888-829-8738,

FOR INTERNAL USE ONLY

©2016 Constellation Energy Resources, LLC Allrights reserved.
Errors and omissions excepted. Std. Short Form_v.2010 Rev Mar-01-2016 ()
Sales Rep: Craig Brazel

117636.46911.0 Printed: 9/15/2016

Page 12 of 12

t_™ Advanced Presentation Systems, Inc.
Confidential Proposal dba CCS Presentation Systems
qT 132 Northeastern Blvd.
Nashua, NH 03062

All audio and video cabling, adapters and connectivity provided by CCS are intended to meet the standards of each appropriate connection. CCS is not responsible
for customer provided source devices and/or adapters that do not meet the standard requirements of the connection. Customer provided adapters or cabling should
be approved by the manufacturer. System issues caused by unapproved cabling or adapters may, at the discretion of CCS, result in additional charges for time and
materials. This system is not designed to exceed the native resolution of the display. CCS shall not be responsible for any millwork, coring, painting or other finish
work associated with the installation.

OWNER FURNISHED EQUIPMENT
All existing equipment and cabling that is being re-used is assumed to be in working order. If any equipment needs to be repaired or replaced, a new quote can be
provided with appropriate pricing.

POWER REQUIREMENTS
Customer will be responsible for providing a suitable source of electrical power for all equipment specified requiring a power supply.

ROOM AVAILABILITY
Quotation assumes the room will be available without interruption during normal working hours 7am to 5pm on the days for which the installation is scheduled. Any
significant delays resulting from lack of access to the room or site readiness shall be billable at prevailing rates.

FINISH WORK
CCS shall not be responsible for any millwork, coring, patching, painting or other finish work associated with the installation.

NETWORK
Customer will provide any network connectivity to any devices requiring a LAN connection.

EXCLUSION
CCS Service Level Agreements and Warranties do not cover equipment or system modifications, abuse, misuse including but not limited to:

@ Operating outside of environmental, electrical, temperature or humidity specifications

@ System alterations, not approved, nor performed by CCS or bya service facility other than those authorized by the manufacturer.

@ Customer alterations, changes to and or modifications to system equipment. Restoration of system to original state will be billed on a time and
materials basis.

AUTO-RENEWAL

Except as otherwise agreed upon in writing, the initial term of this Agreement shall be one (1) year from the date of this Agreement (the “Initial Period”). This
Agreement shall automatically renew each year for successive periods equal to the Initial Period (the “Successive Periods”) unless either party gives notice to
the other party of intent to terminate this Agreement in writing not less than thirty (30) days prior to the expiration of any Period (the “Notice”). Annual
Agreement renewals are subject to rate increases equal to 1% of the total cost of the initial AV System.

CONTROL and or DIGITAL SIGNAL PROCESSOR (DSP) CODE

CCS is not responsible for acquiring existing system Control and or DSP source code. If the current code is not available, cannot be recovered from the system or
a previous AV Integrator, the source code will need to be rebuilt at the customer's expense. This process will delay the project schedule. CCS may assist the
customer in their attempt to recover the code at our standard hourly labor rate.

INSTALLATION CANCELLATION / CREW CALL OFF / RESCHEDULE FEE

@ Oncean Install date has been set, and the customer has been notified, if the customer cancels or reschedules less than 24 hours prior to said install
date, a cancellation/rescheduling crew fee of the crews' loss time may be charged for each occurrence.

e If onsite and the crews are asked to leave due to customer reasons, a crew fee of the crews' loss time and trip charge may be charged for each
occurrence.

ACCEPTANCE OF TERMS
The signature of the client and/or upon issuance of a purchase order to CCS Presentation Systems constitutes of acceptance of the terms on this proposal.

MA State Contract OFF50/ MHEC Contract B11 11 of 12 Version NH-2021-10-19 February 28, 2022
8(m) EDWOSB/WOSSB - Cage Code 1G7P0

Certified Small, Minority, Woman-Owned Business

(MA. NH, RI, NY)

attaching and certifying as to each of the following, all of which must be in form and content acceptable
to CoBank: (1) the Articles of Incorporation of the Company, certified by the Secretary of State of New
Hampshire within 30 days of the date hereof; (2) the Bylaws of the Company; and (3) a certificate of the
Secretary of State of New Hampshire issued within 30 days of the date hereof attesting to the due
formation and good standing of the Company in the State of New Hampshire.

(C) Delegation and Wire Transfer Form. CoBank shall have received a duly
executed original delegation and wire transfer authorization form.

(D) Equity In CoBank. The Company shall have purchased $1,000 in equity in
CoBank,

SECTION 3.02. Conditions to Each Supplement. CoBank's cbligation to make the initial
loan under each Promissory Note and Supplement hereto (including the initial Promissory Note(s) and
Supplement(s} hereto) is subject to the following conditions precedent (which in the case of instruments
and documents, must be originals and in form and content acceptable to CoBank):

{A) Supplement. CoBank shall have received a duly executed Promissory Note and
Supplement and all Loan Documents required by the Promissory Note and Supplement.

(B) Evidence of Authority. CoBank shall have received copies, certified by the
Secretary of the Company as of the date of the Promissory Note and Supplement (or as of another date
acceptable to CoBank), of such board resolutions, evidence of incumbency, and other evidence as
CoBank may require that the Promissory Note and Supplement and all Loan Documents executed in
connection therewith have been duly authorized, executed and delivered.

(C) Consents and Approvals. CoBank shall have received such evidence as
CoBank may require that all consents and approvals referred to in Section 4.11 hereof, have been
obtained and are in full force and effect.

(D) Fees and Other Charges. Coi3ank shall have received all fees or other charges
provided for herein or in the Promissory Note and Supplement.

(E) Application. CoBank shall have received a duly executed and completed copy of
an application for the credit and all instruments and documents rcquired by the application for credit.

(F)} Insurance. CoBank shall have received such evidence as CoBank may
reasonably require that the Company ts in compliance with Section 5.03 hereof.

(G) Opinion of Counsel. CoBank shall have received an opinion of counsel to the
Company, which counsel and opinion must be reasonably acceptable to CoBank.

SECTION 3.03. Conditions to Each Loan. CoBank’s obligation under each Promissory
Note and Supplement (including the initial Promissory Note(s} and Supplement(s) hereto) to make any
loan to the Company thereunder, including the initial loan, is subject to the conditions precedent that: (A)
no Default or Event of Default shall have occurred and be continuing; (B) each of the representations and
warranties of the Company set forth herein, in the Promissory Note and Supplement, and in all other
Loan Documents shall be true and correct as of the date of the loan; and (C) the Company shall have

satisfied all conditions and requirements set forth in the Promissory Note and Supplement relating to that
loan.

ARTICLE 4
REPRESENTATIONS AND WARRANTIES

To induce CoBank to cnter into and make loans under each Promissory Note and Supplement,
the Company represents and warrants that:

SECTION 4.01. Organization, Etc. The Company: (1) is a corporation duly organized,
validly existing, and in good standing under the Laws of the State of New Hampshire; (2) has the power
and authority to own its assets and to transact the business in which it is engaged or proposes to engage
and to enter into and perform the Loan Documents; and (3) is duly qualified to do business in, and is in
good standing under the Laws of, each jurisdiction in which such qualification is required.

SECTION 4.02. Loan Documents. This Agreement, the Promissory Note and Supplement,
and all other Loan Documents: {[) have bcen duly authorized, executed and delivered by the Company
and each other Person that is a party thereto; and (2) ercate legal, vatid and binding obligations of the
Company and each other Person that is a party thereto which are enforceable in accordance with their
terms, except to the extent that enforcement may be limited by applicable bankruptcy, insolvency or
similar Laws affecting creditors’ rights generally.

SECTION 4.03. Operation of Business. The Company possesses all licenses, certificates,
permits, authorizations, approvals, franchises, patents, copyrights, trademarks, trade names, cights
thercto, or the like which are material to the operation of its business or required by Law, and the
Company ts not in violation of the rights of others with respect thereto.

SECTION 4.04. Litigation. Except as disclosed in any application submitted in connection
with the Promissory Note and Supplement, there are no pending or threatened actions or proceedings
against or affecting the Company before any court, governmental agency, mediator, arbitrator, or the like
which could, in any one case or in the aggregate, if adversely decided, have a Material Adverse Effect.

SECTION 4.05. Ownership and Subsidiaries. The Company: (A) is owned 100% by the
Guarantor; and (2) has no Subsidiaries.

SECTION 4.06. Financial Statements. The Financial Statements are complete and correct
and fairly present the financial condition of the Company, and the results of the operations of the
Company as of the date and for the periods covered by such Financial Statements, all in accordance with
GAAP consistently applied. Since the date of the most recent Financial Statement, there has been no
material adverse change in the condition, financial or otherwise, business or operations of the Company.
There are no liabilities of the Company which are material but not reflected in the Financial Statements

or in the notes thereto.

SECTION 4.07. Ownership and Liens, The Company has title to, or valid easement or
leasehold interests in, all of its properties, real and personal, including the property and leasehold
interests reflected in the Financial Statements (other than any property disposed of in the ordinary course
of business}, and none of the properties or leasehold interests of the Company are subject to any Lien,
except such as may be permitted under Section 6.01 of this Agreement.

SECTION 4.08. Compliance with Law. All of the Company’s properties and all of its
operations, are in compliance in all material respects with all Laws. Without limiting the foregoing, all
property owned or leased by the Company, all property proposed to be acquired with the proceeds of the
Promissory Note and Supplement, and all operations conducted thereon on all such property, are in
compliance in all material respects with all Laws relating to the environment

SECTION 4.09, Environment. Except as disclosed in any application submitted in
connection with the Promissory Note and Supplement: (A) no property owned or leased by the Company
is being used, or to its knowledge, has been used for the disposal, treatment, storage, processing or
handling of hazardous waste or materials (as defined under any applicable environmental Law); (B) no
investigation, claim, litigation, proceedings, order, judgment, decree, settlement, Lien or the like with
respect to any environmental matter is proposed, threatened, anticipated or in existence with respect to
the properties or operations of the Company; and (C)no environmental contamination or condition
currently exists on any property of the Company which could delay the sale or other disposition of such
property or could have, or already has had, an adverse effect on the value of such property.

SECTION 4,10. ERISA. Ail plans (“ERISA Plans”) of a type described in Section 3(3) of
ERISA in respect of which Company is an “Employer”, as defined in Section 3(5) of ERISA, are, to the
best knowledge of the Company, in substantia! compliance with ERISA, and nonc of such ERISA Plans
is insolvent or in reorganization, or has an accumulated or waived funding deficiency within the meaning
of Section 412 of the Internal Revenue Code. The Company has not incurred any material liability
(including any material contingent liability) to or on account of any such ERISA Plan pursuant to
Sections 4062, 4063, 4064, 4201 or 4204 of ERISA. No proceedings have been instituted to terminate
any such ERISA Plan.

SECTION 4.11. Consents and Approvals. Except for such as shall have been obtained and
are in full force and effect, no consent, permission, authorization, order or license of any governmental
authority or of any party to any agreement to which the Company is a party or by which it or any of its
property may be bound or affected, is necessary in connection with: (A) the execution, delivery,
performance or enforcement of the Loan Documents; and (B) the project, acquisition, or other activity
being financed by the Promissory Note and Supplement.

SECTION 4.12. Conflicting Agreements. None of the Loan Documents conflicts with, or
constitutes (with or without the giving of notice and/or the passage of time and/or the occurrence of any
other condition) a default under, any other agreement to which the Company is or expects to become a
party or by which the Company or any of its properties may be bound or affected, and do not conflict
with any provision of the articles of incorporation, bylaws, or other organizational documents of the

Company.

SECTION 4.13. Compliance and No Default. [he Company is operating its business in
compliance with all of the terms of the L.oan Documents, and no Default or Event of Default exists.

SECTION 4.14. Applications. Each representation and warranty and all information set
forth in the application submitted in connection with, or to induce CoBank to enter into, the Promissory
Note and Supplement is correct in all material respects.

SECTION 4.15. Budgets, Etc. Al! budgets, projections, feasibility studies, and other
documentation submitted by or on behalf of the Company to CoBank in connection with, or to induce
CoBank to enter into, the Promissory Note and Supplement, are based upon assumptions that are

reasonable and realistic, and no fact has come to light, and no event has occurred, which would cause any
material assumption made therein to not be reasonable or realistic.

SECTION 4.16. Water Rights. The Company: (A) has water rights with such amounts,
priorities and qualities as are necessary to adequately serve the customers of the Company; (B) controls,
owns, or has access to all such water rights free and clear of the interests of any third party; and (C) has
not suffered or permitted any transfer or encumbrance of such water rights, has not abandoned such water
rights, or any of them, and has not done any act or thing which would impair or causc the loss of any

such water rights.

SECTION 4.17. Facilities. The Company's utility facilities: (A} meet present demand in all
material respects; (B) are constructed in a good and professional manner; (C) are in good working order
and condition; and (D) comply in all material respects with all applicable Laws.

SECTION 4.18. Rate Matters. (A) The Company's rates for water and/or wastewater
services are subject to rate regulation by the Public Utilities Commission of the State of New Hampshire;
and (B) there is no pending and, to the Company's knowledge, threatened action or proceeding before any
court or governmenta! authority, the objective or result of which ts or could be to: (1) reduce or otherwisc
adversely change any of the Company’s rates for the provision of water and/or wastewater services, (2)
limit or revoke any of the Company’s permits or other authorizations to conduct business; or (3) except
as disclosed in any application submitted in connection with the Promissory Note and Supplement,

otherwise have a Material Adverse Effect.

SECTION 4.19. Enforcement Actions. The Company is not subject to any Enforcement
Action and, to the knowledge of the Company, no such actions have been threatened or are contemplated.

SECTION 4.20. Taxes. The Company has timely and properly filed all tax returns (federal,
state and local) that were required to be filed, and has paid any taxes, assessments, and other
governmental charges, including interest and penalties. There are no audits pending or, to the knowledge
of the Company, threatened against the Company.

ARTICLE $
AFFIRMATIVE COVENANTS

Unless otherwise agreed to in writing by CoBank, while this Agreement is in effect, the
Company agrees to:

SECTION 5.01. Maintenance of Existence, Etc. Preserve and maintain its existence and
good standing in the jurisdiction of its formation, qualify and remain qualified to transact business in all
jurisdictions where such qualification is required, and obtain and maintain all licenses, permits,
franchises, patents, copyrights, trademarks, tradenames, or rights thereto which are materia! to the
conduct of its business or required by Law.

SECTION 5.02. Compliance With Laws, Comply in ali material respects with all
applicable Laws (including all Laws relating to the environment). In addition, the Company agrees to
cause all Persons occupying or present on any of its properties to comply in all materiai respects with alli

such Laws.

SECTION 5.03. Insurance. Maintain insurance with financially sound and reputable
insurance companies or associations reasonably acceptable to CoBank in such amounts and covering
such risks as are usually carried by companies engaged in the same business and similarly situated, and
make such increases in the amounts or coverage thereof as CoBank may from time to time require.
Without limiting the foregoing, in the event any property of the Company is located in a flood zone, then
the Company shall obtain such flood insurance as may be required by CoBank. All policies insuring any
collateral shal! have lender or mortgagee loss payable clauses or endorsements in form and content
acceptable to CoBank. At CoBank’s request, the Company agrees to deliver to CoBank such proof of
compliance with this Section as CoBank may require.

SECTION 5.04. Property Maintenance. Maintain all of its properties that are necessary to
or useful in the proper conduct of its business in good repair, working order and condition, ordinary wear
and tear excepted, and make all alterations, improvements and replacements thereto as may from time to
time be necessary in order to ensure that its properties remain in good working order and condition. The
Company agrees that at CoBank’s request, which request may not be made more than once a year, the
Company will furnish to CoBank a report on the condition of the Company’s property prepared by a
professional engineer satisfactory to CoBank.

SECTION 5.05. Books and Records. Keep adequate records and books of account in which
complete entries will be made in accordance with GAAP.

SECTION 5.06. Reports and Notices. Furnish to CoBank:

{A) Annual Financial Statements. As soon as available, but in no event more than
120 days after the end of each fiscal year of the Company occurring during the term hereof, annual
consolidated and consolidating financial statements of the Company and its consolidated subsidiaries, if
any, prepared in accordance with GAAP consistently applied (or the appropriate standards of the
regulatory agency having jurisdiction over the Company). Such financial statements shall: (a) be audited
by independent certified public accountants selected by the Company and acceptable to CoBank; (b) be
accompanied by a report of such accountants containing an opinion thereon acceptable to CoBank; (c) be
prepared in reasonable detail and in comparative form; and (d) include a balance sheet, a statement of
income, a statement of retained earnings, a statement of cash flows, and all notes and schedules relating
thereto. Notwithstanding the foregoing, the delivery within the time period specified above of the
Guarantor’s Annual Report on Form |0-K for such fiscal year containing consolidating information on
the Company (together with the Guarantor’s annual report to shareholders, if any, prepared pursuant to
Rule 14a-3 of the Exchange Act) prepared in accordance with the requirements therefor and ftled with
the Securities and Exchange Commission, together with the accountant’s certificate described above,
shall be decmed to satisfy the requirements of this Section 5.06(A);

(B) Quarterly Financial Statements. As soon as available, but in no event more
than 60 days after the end of each fiscal quarter of the Company occurring during the term hereof (other
than the last fiscal quarter in each fiscal year), such Company prepared quarterly financial statements as
CoBank may from time to time request.

{C) Annual Officer's Certificate. Together with each set of financial statements
delivered to CoBank pursuant to Subsection (A) of this Section 5.06, a duly completed and executed
certificate of the Chief Financial Officer of the Company in the form attached hereto as Exhibit B,