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 to CoBank).
SECTION 6.09. Investments. Make any loan or advance to, or deposit any funds of the
Company in, or purchase or otherwise acquire any capital stock, 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 participate 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
United States of America or any agency thereof; (B) commercial paper of a domestic issuer rated at least
"A-1" by Standard & Poor's Corporation or "P-1" by Moody's Investors Service, Inc.; and (C)
intercompany loans made in accordance with the Money Pool Agreement; and (D) Investments in
CoBank.
SECTION 6.10. Certain Agreements. Amend, alter, waive any provision of, breach or
terminate any agreement (or accept any termination by the other party) if such action could reasonably be
expected to have a Material Adverse Effect.
SECTION 6.11. Transactions with Affiliates, Enter into any transaction with an Affiliate
except in 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 would obtain in a comparable arm's-length
transaction with a Person not an Affiliate.
ARTICLE 7
FINANCIAL COVENANTS
Unless 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 each fiscal year
of the Company, a Debt Service Coverage Ratio of not less than 1.25 to 1.00.
SECTION 7.02. Total Debt to Total Capitalization Ratio. Thc Company shall have at the
end of each fiscal year of the Company, a Total Debt to Total Capitalization Ratio of not more than .65 to
1.00.
SECTION 7.03. Fiscal Year. The Company will not change its fiscal year.
ARTICLE 8
EVENTS OF DEFAULT
Each of the following shall constitute an “Event of Default” hereunder:
SECTION 8.01. Payment Default. The Company should fail to make when due any payment
to CoBank hereunder, under any Promissory Note and Supplement, or under any other Loan Document.
SECTION 8.02. Representations and Warranties, Ete. Any opinion, certificate or like
document furnished to CoBank by or on behalf of the Company, or any representation or warranty made
or deemed made by the Company herein or 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.
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