JPMorgan - KASE

Business and not in connection with the borrowing of money or the obtaining of advances or
credit, not to exceed in the aggregate at any time outstanding 12.5% of the consolidated
total assets of the Company;
(h) the incurrence by the Company and its Restricted Subsidiaries of Indebtedness in connection
with one or more trade letters of credit or banker’s acceptances in each case, issued in the
conduct of the Oil and Gas Business and not in connection with the borrowing of money or
the obtaining of advances or credit;
(i)
(j)
(k)
the incurrence by the Company and its Restricted Subsidiaries of Indebtedness in respect of a
guarantee or the coissuance of any Indebtedness otherwise permitted to be incurred under
the Indenture;
the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness arising
from agreements of the Issuer or such Restricted Subsidiary providing for indemnification,
adjustment of purchase price or similar obligations in each case incurred in connection with
the disposition of any business assets or Restricted Subsidiaries of the Company in a principal
amount not to exceed the gross proceeds actually received by the Company or such
Restricted Subsidiary in connection with such disposition; and
the incurrence by the Company and its Restricted Subsidiaries of Indebtedness in an
aggregate principal amount at any one time outstanding of up to $10.0 million (all or any
portion of which may be borrowed under a Term Facility), which shall be in addition to
amounts which may be incurred pursuant to clauses (a) through (j) above.
Notwithstanding any other provision of this covenant, a guarantee of Indebtedness permitted by
the terms of the Indenture at the time such Indebtedness was incurred will not constitute a
separate incurrence of Indebtedness; provided that if the Company or a Restricted Subsidiary
guarantees Indebtedness of another Restricted Subsidiary and such Restricted Subsidiary is
thereafter no longer a Restricted Subsidiary, such a guarantee will, at the time such Restricted
Subsidiary ceases to be a Restricted Subsidiary, constitute an incurrence of Indebtedness by the
Company or a Restricted Subsidiary.
In the event that Indebtedness falls within more than one category of permitted Indebtedness
under the Indenture, the Company will determine (or later reclassify in whole or in part) the
applicable category and such Indebtedness will only be counted in one category. If Indebtedness
is issued at less than the principal amount thereof, the amount of such Indebtedness for purposes
of the above limitations shall equal the amount of the liability as determined in accordance with
GAAP, and all Indebtedness thereunder shall be deemed to have been incurred only on the date
of the original issuance thereof.
The Indenture will provide that the Company will not permit any Unrestricted Subsidiary to incur
any Indebtedness other than Non-Recourse Debt, provided that, if any such Indebtedness ceases
to be Non-Recourse Debt, such event shall be deemed to constitute an incurrence of
Indebtedness by the Company or a Restricted Subsidiary.
Sale and Leaseback Transactions
The Indenture will provide that the Company will not, and will not permit any of its Restricted
Subsidiaries to, enter into any sale and leaseback transaction, provided that the Company may
enter into a sale and leaseback transaction if (i) the Company could have (a) incurred
Indebtedness in an amount equal to the Attributable Indebtedness relating to such sale and
leaseback transaction pursuant to the Fixed Charge Coverage Ratio test set forth in the first
paragraph of the covenant “— Incurrence of Indebtedness and Issuance of Preferred Stock” and
(b) incurred a Lien to secure such Indebtedness pursuant to the covenant “Description of the
Notes — Certain Covenants — Liens”, (ii) the net cash proceeds of such sale and leaseback
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