SECTION 6.08. Prepayment. While any Default or Event of Default shall have occurred
and be continuing, prepay, directly or indirectly, any debt {other than debt 1o CoBank).
SECTION 6.09, Investments. Make any loan or advance ta, or deposit any funds of the
Company in, or purchase or otherwise acquire any capital stcck, obligations, or other securities of, or
make any capital contribution to, or otherwise invest in or acquire any interest in, any Person (including a
Subsidiary), or participaie as a partner or joint venturer with any other Person (collectively,
"Investments"), except: (A} securities or deposits issued, guaranteed or fully insured as to payment by the
Lnited States of America or any agency thereof. (B) commercial paper of a domestic issuer rated at feast
“A-t" by Standard & Poors Corporation or “P-1" by Moody's Investors Service, inc: and (C)
intercompany loans made in accordance with the Money Poo! Agreement: and (D} Investments in
CoBank.
SECTION 6.10, Certain Agreements. Amend, alter, waive any provision of, breach or
terminate any agrecment (or accept any termination by the other party} if such actien could reasonably be
expected to have a Material Adverse Effect.
SECTION 6.11. Transactions with Affiliates. Enter inte any transaction with an Affiliate
eaceptin the ordinary course of and pursuant to the reasonable requirements of its business and upon fair
and reasonable terms no less favorable to the Company than woutd obtain tn a comparable arms-length
transaction with a Person not an Affiliate.
ARTICLE 7
FINANCIAL COVENANTS
Uniess otherwise agreed to in writing by CoBank, while this Agreement is in effect:
SECTION 7.01. Debt Service Coverage Ratio. The Company shall have for cach Fiscal year
of the Company, a Debt Service Coverage Ratia of not less than 1.25 to 1.00.
SECTION 7,02. Total Debt to Tota! Capitalization Ratio. The Company shal) have ar the
end ofeach fiscal year of the Company. a Total Debt t: Tota! Capitatization Ratio of not more than .65 to
1.00,
SECTION 7.03. Fiscal Year. The Company will not change its fiscal year
ARTICLE §
EVENTS OF DEFAULT
Each of the following shall constitute an “Event of Default” heretnder:
SECTION 8.01. Payment Defauit. The Company should fail to make when duc any payment
to CoBank hereunder, under any Promissary Note and Supplement, or under any other Loan Ductment.
SECTION 8.02. Representations and Warranties, Etc. Any opinion, certificate or like
document furnished to CoBank by or on bebalf of the Company, or any representation or warranty made
or deemed made by the Company herein ar in any other Loan Document, shall prove to have been false
or misleading in any material respect on or as of the date furnished, made or deemed made.
