SECTION 4.08. Compliance with Law. All of the Company’s properties and all of its
operations, are in compliance in ail 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 al! 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. All 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 substantial compliance with ERISA, and none 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 Approvais. 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 Defauit. The Company is operating its business in
compliance with all of the terms of the .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 Suppiement is correct in all materia! respects.
SECTION 4.15. Budgets, Etc. All 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
