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 shall 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 aad 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 financiai 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 10-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 filed with
the Securities and Exchange Commission, together with the accountant’s certificate described above,
shal! be deemed to satisfy the requirements of this Section 5.06(A);
(B) Quarteriy 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.
