Total Capitalization shall mean Total Debt plus Net Worth, except that in determining
Total Capitalization, contributions in aid of construction, advances for construction, customer
deposits, or similar iterns reducing rate base calculations shall be excluded.
Total Debt shall mean for the Company on a consolidated basis the sum ef the folowing as
of the end of the fiseal year: (a) all indebtedness for borrowed money or for the deferred purchase
price of property or services (other than accounts payable to trade creditors incurred in the ordinary
course of business:, (b) obligations which are evidenced by notes, bonds, debentures or similar
instruments, (c) that portion of obligations with respect to Capital Leases or other capitalized
agreemenis thal are properly classified as a tiability on the balance sheet in conformiry with GAAP
or Which are treated as operating leases under regulations applicable to them but which othervise
wauid be required to be capitalized under GAAP; fd} debt secured by a Lien on any assets of the
Company or its Subsidiaries (whether or not the debt has been assumed); and fe) all obligations
guarantied by the Company er any Subsidiary.
Total Debt fo Capitalization Ratto shall mean a ratio of Total Debt at the end of the fiscal
year. Total Capitalization at the end of the fiscal year,
SECTION 1.02 Rules of Interpretation. Uhe following rules of interpretation shal}
apply to the Agreement, all Promissory Notes and Supplements. and alf amendments to either of the
foregoing’
Accounting Terms. All accounting terms nol specifically defined herein shall be construed
in accardance with GAAP. and all financial data submitted pursuant to this Agreement shall be
prepared in accordance with such princtples.
Number. All terms stated in the singular shal! inckade the plural, and all terms stated in the
plural shall tactude the singular.
Factuding. The term "incittding” shall mean eciuding, but not limued to.
Default. The expression “while any Default or Event of Default shall have occurred and be
continuing” (or like expression) shall be deemed to inclide the perind following any acceleration of
the obligations (unless such acceleration is rescinded}
Permitted Encumbrances. CoBank’s consent te the Carmpany having one or more Liens on
ali or any portion of ils assets. shall not be construed to be an agreement to subordinate its Lien on
those assets to the eatent that such Lien ts not otherwise entitled to priority under Law.
