Document:

Exhibit

Exhibit 4.f

POLARIS INDUSTRIES INC.

SECOND AMENDMENT
TO MASTER NOTE PURCHASE AGREEMENT,
AS SUPPLEMENTED BY THE FIRST SUPPLEMENT TO 
MASTER NOTE PURCHASE AGREEMENT

$25,000,000 3.81% Senior Notes, Series 2011, Tranche A, due May 2, 2018
$75,000,000 4.60% Senior Notes, Series 2011, Tranche B, due May 3, 2021
$100,000,000 3.13% Senior Notes, Series 2013, due December 21, 2020

Dated as of December 28, 2016
To the Holders (as defined below) of
the above-referenced Notes named in 
the attached Schedule I 
Reference is made to the Master Note Purchase Agreement dated as of December 13, 2010, between Polaris Industries Inc., a Minnesota corporation (the “Company”), and each of the Purchasers named in Schedule A thereto pursuant to which the Company issued and sold $100,000,000 aggregate principal amount of Senior Notes (the “2011 Senior Notes”), as amended by that certain First Amendment to Master Note Purchase Agreement dated as of August 19, 2011, and as supplemented by that certain First Supplement to Master Note Purchase Agreement, dated as of December 19, 2013, between the Company and each of the Purchasers named in Schedule A thereto, pursuant to which the Company issued and sold $100,000,000 aggregate principal amount of Senior Notes (the “2013 Senior Notes” and, together with the 2011 Senior Notes, the “Notes”), as amended by that certain First Amendment to First Supplement to Master Note Purchase Agreement, dated as of February 24, 2014 (collectively, the “Note Agreement”). You are referred to in this Second Amendment to Master Note Purchase Agreement (this “Second Amendment”) individually as a “Holder” and collectively as the “Holders.” Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Note Agreement, as amended by this Second Amendment.
The Company has requested the modification of Section 9.7, Section 10.1, Section 10.2, Section 10.4, Section 10.9, and Section 11 of the Note Agreement; the addition of a new Section 1.4 and a new Section 10.10 of the Note Agreement; the modification of the definitions for “Credit Agreement,” “Foreign Borrower,” “Foreign Subsidiary,” “Intercreditor Agreement,” “Pledge Agreement,” “Pledged Subsidiary,” “Pledgor,” “Priority Debt,” and “Subsidiary Guarantor” in Schedule B of the Note Agreement; and the addition of definitions for “Blocked Person,” “Controlled Entity,” “Domestic Subsidiary,” “Financial Covenant,” “Incremental Interest,” “Loan Agreement,” “Most Favored Lender Notice,” “OFAC,” and “U.S. Economic Sanctions Laws” to Schedule B of the Note Agreement. The Holders have agreed to modify the Note Agreement on the terms and conditions set forth herein. 
In consideration of the premises and for good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Company and the Holders agree as follows: 
		
	1.
	 AMENDMENT TO NOTE AGREEMENT

a.Addition of new Section 1.4. A new Section 1.4 is added to the Note Agreement read in its entirety as follows:
“1.4 Additional Interest.

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If the Leverage Ratio exceeds 3.00 to 1.00 as of the date of any fiscal quarter end pursuant to the terms of Section 10.1, as evidenced by an Officer’s Certificate delivered pursuant to Section 7.2(a), the interest rate payable on the Notes shall be increased by 0.25% (the “Incremental Interest”) for a period of time determined as follows: (a) such Incremental Interest shall begin to accrue on the first day of the fiscal quarter following the fiscal quarter in respect of which such Officer’s Certificate was delivered, and (b) shall continue to accrue until the Company has provided an Officer’s Certificate pursuant to Section 7.2(a) demonstrating that, as of the last day of the fiscal quarter in respect of which such Certificate is delivered, the Leverage Ratio is not more than 3.00 to 1.00, and in the event such Officer’s Certificate is delivered, the Incremental Interest shall cease to accrue on the last day of the fiscal quarter in respect of which such Certificate is delivered. For the avoidance of doubt, if the Leverage Ratio exceeds 3.00 to 1.00 as of the last day of a fiscal quarter, Incremental Interest shall accrue as provided in this Section 1.4 regardless of whether an Officer’s Certificate is delivered pursuant to Section 7.2(a).”
b.Amendment of Section 9.7. The first paragraph of Section 9.7(a) of the Note Agreement is amended to read in its entirety as follows:
“(a) Subsidiary Guarantors. The Company will cause any Domestic Subsidiary that, on or after the date of the Closing (whether or not required by the terms of the Credit Agreement), is a guarantor, borrower, or co-obligor in respect of the Credit Agreement, or otherwise becomes obligated in respect of Indebtedness under the Credit Agreement, to enter into the Subsidiary Guaranty concurrently therewith and as part thereof to deliver to each of the holders:” 
c.Amendment of Section 10.1. Section 10.1 of the Note Agreement is amended to read in its entirety as follows:
“10.1 Leverage Ratio. 
The Company will not permit the Leverage Ratio, as of the last day of each fiscal quarter of the Company, to be more than 3.00 to 1.00; provided that the Leverage Ratio may be greater than 3.00 to 1.00, but in no event greater than 3.50 to 1.00, if the Company pays Incremental Interest to the extent required by Section 1.4.”
d.Amendment of Section 10.2. Section 10.2 of the Note Agreement is amended to read in its entirety as follows: 
“10.2 Interest Coverage Ratio. 
The Company will not permit the Interest Coverage Ratio, as of the last day of each fiscal quarter of the Company, to be less than 3.00 to 1.00.”
e.Amendment of Section 10.4. Section 10.4 of the Note Agreement is amended as follows: 
i.The word “and” is inserted after the “;” in Section 10.4(k).
ii.Section 10.4(l) is amended to read in its entirety as follows:
“(l) Liens securing Indebtedness not otherwise permitted by paragraphs (a) through (k) above, provided that Priority Debt does not at any time exceed 20% of Consolidated Net Worth as of the end of the most recently completed fiscal quarter of the Company.”
iii.Section 10.4(m) is deleted in its entirety. 
f.Amendment of Section 10.9. Section 10.9 of the Note Agreement is amended to read in its entirety as follows: 
“10.9 Terrorism Sanctions Regulations.
The Company will not, and will note permit any Controlled Entity to (a) become (including by virtue of being owned or controlled by a Blocked Person), own or control a Blocked Person or (b) directly or indirectly have any investment in or engage in any dealing or transaction (including any investment, dealing, or transaction involving the proceeds of the Notes) with any Person if such investment, dealing, or transaction (i) would cause any holder or any affiliate of such holder to be in violation of, or subject to sanctions under, any law or regulation applicable to such holder, or (ii) is prohibited by or subject to sanctions under any U.S. Economic Sanctions Laws.” 

2

g.Addition of New Section 10.10. A new Section 10.10 is added to the Note Agreement read in its entirety as follows: 
“10.10 Most Favored Lender.
(a) If the Company shall at any time amend the Credit Agreement or become a party, as a borrower or guarantor, to any other credit agreement or other agreement, instrument, or document evidencing or issuing Indebtedness (collectively with the Credit Agreement, the “Loan Agreements,”) that, in either case, requires the Company to comply with any financial covenant, undertaking, restriction, or other provision that limits or measures indebtedness, interest expense, shareholders’ equity, investment balances, debt service coverage, fixed charges, net worth, assets, asset sales, sale and leasebacks, liens, subsidiary indebtedness, restricted payments, dividends, or any similar items (however expressed and whether stated as a ratio, as a fixed threshold, as an event of default, as a right to be prepaid or offered to be prepaid or otherwise) (each a “Financial Covenant”) that is not at such time included or is more restrictive than what is included in this Agreement, then the Company shall provide a Most Favored Lender Notice to each holder of the Notes. Unless waived in writing by the Required Holders within 5 Business Days after the date on which such notice is required to be sent, each such Financial Covenant and each event of default, definition, and other provision relating to such Financial Covenant in the Loan Agreement shall be deemed to be incorporated by reference in this Agreement, mutatis mutandis, as if then set forth herein in full. 
(b) The incorporation of any Financial Covenant pursuant to this Section 10.10 shall:
(i) automatically (without any further action being taken by the Company or any holder of a Note) take effect simultaneously with the effectiveness of such Financial Covenant under the applicable Loan Agreement; and
(ii) so long as no Default or Event of Default shall then exist under or in respect of such incorporated Financial Covenant, such financial covenants automatically (without any further action being taken by the Company or any holder of a Note other than as set forth below) shall be deleted or further modified if such Financial Covenant, definition, event of default or other provision relating thereto is deleted or made less restrictive on the Company and its Subsidiaries by way of a permanent written amendment or modification of such Loan Agreement (and not by temporary waiver of rights thereunder); provided that:
(A) if any fee or other consideration is paid or given to any bank or other party to any Loan Agreement in connection with such deletion or modification, each holder of a Note receives equivalent consideration on a pro rata basis, and such deletion or modification shall not be effective until such consideration is received by each such holder; provided, however, that no consideration shall be due any holder if the Financial Covenant shall have been deleted or modified in accordance with the terms of the underlying Loan Agreement as a result of a reduction of the outstanding balance or other previously agreed to provision of such Loan Agreement; and
(B) in no event shall any deletion or relaxation of any such Financial Covenant have the effect of deleting or making less restrictive any covenant or other provision specifically set forth in this Agreement.
(iii) subject to Section 10.10(b)(ii), continue in effect regardless of any subsequent termination of the Credit Agreement.” 
h.Amendment of Section 11. Section 11 of the Note Agreement is amended as follows: 
i.Section 11(j) of the Note Agreement is amended to read in its entirety as follows:
“(j) the Subsidiary Guaranty ceases to be in full force and effect with respect to any Subsidiary Guarantor (except as provided in Section 9.7(b)) for any reason, including by reason of (A) its being declared to be null and void in whole or in material part by a court or other governmental or regulatory authority having jurisdiction or (B) the validity or enforceability thereof being contested by any of the Company, any Subsidiary Guarantor or any of them renouncing any of the same or denying that it has any further liability thereunder.”

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ii.The final sentence of Section 11 is amended by deleting “(j)” and inserting “(i)” in its place.
i.Amendments to Schedule B. Schedule B of the Note Agreement is amended as follows: 
i.The following new definitions are added to Schedule B in the appropriate alphabetical order: 
“Blocked Person” means (a) a Person whose name appears on the list of Specially Designated Nationals and Blocked Persons published by OFAC, (b) a Person, entity, organization, country, or regime that is blocked or a target of sanctions that have been imposed under U.S. Economic Sanctions Laws, or (c) a Person that is an agent, department, or instrumentality of, or is otherwise beneficially owned by, controlled by, or acting on behalf of, directly or indirectly, any Person, entity, organization, country, or regime described in clause (a) or (b). 
“Controlled Entity” means (a) any of the Subsidiaries of the Company and any of their or the Company’s respective Controlled Affiliates and (b) if the Company has a parent company, such parent company and its Controlled Affiliates. As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
“Domestic Subsidiary” means any Subsidiary of the Company incorporated or organized under the laws of the United States of America, any State thereof, or the District of Columbia, and any such Domestic Subsidiary’s respective successors and assigns. 
“Financial Covenant” is defined in Section 10.10(a).
“Incremental Interest” is defined in Section 1.4.
“Loan Agreement” is defined in Section 10.10(a).
“Most Favored Lender Notice” means a written notice from the Company to each holder of the Notes delivered promptly, and in any event within 5 Business Days after the inclusion of any Financial Covenant or any event of default, definition or other provision relating to such Financial Covenant in a Loan Agreement (including by way of amendment or other modification of any existing provision thereof), pursuant to Section 10.10, by a Responsible Officer of the Company in reasonable detail, including reference to Section 10.10, a verbatim statement of such Financial Covenant, event of default, definition, or other provision relating to such Financial Covenant and related to explanatory calculations, as applicable. 
“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury.
“U.S. Economic Sanctions Laws” means those laws, executive orders, enabling legislation, or regulations administered and enforced by the United States pursuant to which economic sanctions have bene imposed on any Person, entity, organization, country, or regime, including the Trading with the Enemy Act, the International Emergency Economic Powers Act, the Iran Sanctions Act, the Sudan Accountability and Divestment Act, and any other OFAC Sanctions Program.
ii.The definitions of “Foreign Borrower,” “Foreign Subsidiary,” “Intercreditor Agreement,” “Pledge Agreement,” “Pledged Subsidiary,” and “Pledgor” are deleted in their entirety.
iii.The following definitions in Schedule B are amended and restated in their entirety as follows: 
“Credit Agreement” means the Third Amended and Restated Credit Agreement dated as of November 9, 2016 among the Company, certain Subsidiaries of the Company, the lenders identified therein, U.S. Bank National Association, as lead arranger, lead book runner, and administrative agent, Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as joint lead arrangement, joint book runners and syndication agents, and Bank of the West, Fifth Third Bank, JPMorgan Chase Bank, N.A., PNC Bank, National Association, and BMO Harris Bank N.A., as documentation agents, as such agreement may be further amended, restated, supplemented, refinanced, increased or reduced from time to time, and any successor credit agreement or similar facility.

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“Priority Debt” means, as of any date, the sum (without duplication) of (a) outstanding unsecured Indebtedness of Subsidiaries that are not Subsidiary Guarantors, and (b) Indebtedness of the Company and its Subsidiaries secured by Liens not otherwise permitted by Sections 10.4(a) through (k). 
“Subsidiary Guarantor” means any Domestic Subsidiary of the Company that executes, or becomes a party to, the Subsidiary Guaranty.
		
	2.
	CONSENT TO TERMINATION OF PLEDGE AGREEMENTS; RELEASE OF PLEDGED COLLATERAL.

The Holders hereby consent to the release of all Equity Interests pledged pursuant to any Pledge Agreement and the termination of any such Pledge Agreements and the Amended and Restated Intercreditor and Collateral Agency Agreement, dated as of December 19, 2013, by and between U.S. Bank National Association, as Administrative Agent under the Credit Agreement, U.S. Bank National Association as Collateral Agent, and each holder of Notes party thereto (the “Intercreditor Agreement”), subject to the Lenders’ consent to such release of the pledged collateral and termination of the Pledge Agreements and Intercreditor Agreement. 
		
	3.
	COVENANT TO DELIVER EVIDENCE OF TERMINATION OF PLEDGE AGREEMENT AND INTERCREDITOR AGREEMENT AND RELEASE OF COLLATERAL

No later than five (5) days after the effectiveness of this Second Amendment, the Holders shall have received a copy, certified by the Company as true and complete, of that certain Release and Termination Agreement (the “Release”) signed by U.S. Bank National Association, as Administrative Agent and Collateral Agent, the Company, and each Subsidiary of the Company that pledged Equity Interests of pledged Subsidiaries, which Release shall have (a) released all pledges of Equity Interests of pledged Subsidiaries; (b) terminated the Pledge Agreements pursuant to which such Equity Interests were pledged for the ratable benefit of the Lenders and each holder of notes under the Note Agreement; and (c) terminated the Intercreditor Agreement. A breach of this Section 3 shall constitute an Event of Default under Section 11(c) of the Note Agreement. 
		
	4.
	REAFFIRMATION; AUTHORIZATION

a.Reaffirmation of Note Agreement. The Company reaffirms its agreement to comply with each of the covenants, agreements, and other provisions of the Note Agreement and the Notes, including the amendments of such provisions effected by this Second Amendment. 
b.No Default or Event of Default. There currently exists, and after giving effect to this Second Amendment there will exist, no Default or Event of Default. 
c.Authorization. The execution, delivery, and performance by the Company of this Second Amendment have been duly authorized by all necessary corporate action and, except as provided herein, do not require any registration with, consent or approval of, notice to or any action by, any Person (including any Governmental Authority) in order to be effective and enforceable. The Note Agreement and this Second Amendment each constitute the legal, valid, and binding obligations of the Company, enforceable in accordance with their respective terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).
d.Section 5 of the Note Agreement. The Company represents and warrants that the representations and warranties contained in Section 5 of the Note Agreement are true and correct as of the date hereof, except (i) to the extent that any of such representations and warranties specifically relate to an earlier date, (ii) for such changes, facts, transactions, and occurrences that have arisen since December 19, 2013 in the ordinary course of business, and (iii) for other changes that could not reasonably be expected to have a Material Adverse Effect. 
5.EFFECTIVE DATE
This Second Amendment shall become effective as of the date set forth above upon the satisfaction of the following conditions: 
a.Consent of Holders to this Second Amendment. The execution by the Holders of 100% of the aggregate principal amount of the Notes outstanding and receipt by the Holders of a counterpart of this Second Amendment duly executed by the Company. 
b.Acknowledgment of Subsidiary Guarantors. Each Subsidiary Guarantor shall have acknowledged this Amendment by executing the signature page hereto. 

5

c.Expenses. The Company shall have paid all fees and expenses of Foley & Lardner LLP, special counsel to the Holders. 
6.MISCELLANEOUS
a.Ratification. The Note Agreement, as amended hereby, shall remain in full force and effect and is ratified, approved, and confirmed in all respects. 
b.Reference to and Effect on the Note Agreement. Upon the final effectiveness of this Second Amendment, each reference in the Note Agreement and in other documents describing or referencing the Note Agreement to the “Agreement,” “Note Agreement,” “hereunder,” “hereof,” “herein,” or words of like import referring to the Note Agreement, shall mean and be a reference to the Note Agreement, as amended hereby.
c.Binding Effect. This Second Amendment shall be binding upon and inure to the benefit of the respective successors and assigns of the parties hereto.
d.Governing Law. This Second Amendment shall be governed by and construed in accordance with New York law, excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.
e.Counterparts. This Second Amendment may be executed in any number of counterparts, each executed counterpart constituting an original, but altogether only one instrument. 

[Remainder of page intentionally left blank]

6

IN WITNESS WHEREOF, the Company and the Holders have caused this Second Amendment to be executed and delivered by their respective officer or officers thereunto duly authorized. 
POLARIS INDUSTRIES INC.

By:                             
Name:    Michael T. Speetzen
		
	Title:
	Executive Vice President-Finance and Chief Financial Officer

HOLDERS:

The foregoing is agreed to 
as of the date thereof.

METROPOLITAN LIFE INSURANCE COMPANY

METLIFE REINSURANCE COMPANY OF VERMONT
By: Metropolitan Life Insurance Company, its Investment Manager

METLIFE INVESTORS USA INSURANCE COMPANY
By: Metropolitan Life Insurance Company, its Investment Manager

MISSOURI REINSURANCE (BARBADOS), INC.
By: Metropolitan Life Insurance Company, its Investment Manager

By:                         
Name: 
Title: 

METLIFE ALICO LIFE INSURANCE K.K.
By: MetLife Investment Management, LLC, its Investment Manager

By:                         
Name: 
Title:

7

VOYA RETIREMENT INSURANCE AND ANNUITY COMPANY (f/k/a ING Life Insurance and Annuity Company)
VOYA INSURANCE AND ANNUITY COMPANY (f/k/a ING USA ANNUITY AND LIFE INSURANCE COMPANY)
RELIASTAR LIFE INSURANCE COMPANY
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
SECURITY LIFE OF DENVER INSURANCE COMPANY 
By: Voya Investment Management LLC, as Agent

By:                         
Name: 
Title: 

8

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

By:                         
Name: 
Title: 

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY 

By:                         
Name: 
Title: 

GIBRALTAR LIFE INSURANCE CO., LTD.
By: Prudential Investment Management (Japan), Inc., 
as Investment Manager

By: Prudential Investment Management, Inc., 
as Sub-Adviser

By:                         
Name: 
Title: 

MTL INSURANCE COMPANY 
By: Prudential Private Placement Investors, L.P. 
(as Investment Advisor)

By: Prudential Private Placement Investors, Inc.
(as its General Partner)

By:                         
Name: 
Title: 

9

BCBSM, INC. DBA BLUE CROSS AND BLUE SHIELD OF MINNESOTA
By: Prudential Private Placement Investors, L.P.
(as Investment Advisor)

By: Prudential Private Placement Investors, Inc.
(as its General Partner)

By:                         
Name: 
Title:

10

MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
By: Barings LLC, as Investment Adviser

By:                         
Name: 
Title:

11

THE TRAVELERS INDEMNITY COMPANY 

By:                         
Name: 
Title:

12

THE NORTHWESTERN MUTUAL LIFE INSURANCE COMPANY

By:                         
Name: 
Title:

13

ALLIANZ GLOBAL RISKS US INSURANCE COMPANY

By:                         
Name: 
Title:

FIREMAN’S FUND INSURANCE COMPANY 
By: Allianz Investment Management LLC, 
as the authorized signatory and investment manager

By:                         
Name: 
Title:

14

AMERICAN UNITED LIFE INSURANCE COMPANY

By:                         
Name: 
Title:

15

THE PHOENIX INSURANCE COMPANY

By:                         
Name: 
Title:

16

Each of the undersigned Subsidiary Guarantors acknowledges the foregoing Second Amendment to Note Agreement. 

POLARIS ACCEPTANCE INC.
POLARIS SALES INC.
POLARIS DIRECT INC.
RESILIENT TECHNOLOGIES LLC
POLARIS INDUSTRIES INC. [DE]
INDIAN MOTORCYCLE COMPANY
INDIAN MOTORCYCLE INTERNATIONAL, LLC
INDIAN MOTORCYCLE USA, LLC
TETON OUTFITTERS, LLC 
TAP AUTOMOTIVE HOLDINGS, LLC

By:     
Michael T. Speetzen,
Vice President-Finance, Chief Financial Officer and Treasurer

POLARIS SALES EUROPE INC.

By:     
Michael T. Speetzen,
Vice President and Treasurer

NORTH 54 INSURANCE, INC.

By:     
Michael T. Speetzen, President

17

Schedule I
SCHEDULE I

3.81% Senior Notes, Series 2011, Tranche A, due May 2, 2018:

	
			
	Holder
	Note
	Amount

	Metropolitan Life Insurance Company
	AR-1
	$2,000,000

	Missouri Reinsurance (Barbados), Inc.
	AR-2
	$3,000,000

	MetLife Reinsurance Company of Vermont
	AR-3
	$5,000,000

	Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
	AR-4
	$5,100,000

	Voya Retirement Insurance and Annuity Company (f/k/a ING Life Insurance and Annuity Company)
	AR-5
	$2,000,000

	Reliastar Life Insurance Company
	AR-6
	$2,800,000

	Reliastar Life Insurance Company of New York
	AR-7
	$100,000

	The Travelers Indemnity Company 
	AR-8
	$5,000,000

	Total
	 
	$25,000,000

4.60% Senior Notes, Series 2011, Tranche B, due May 3, 2021

	
			
	Holder
	Note
	Amount

	Metropolitan Life Insurance Company
	BR-1
	$12,000,000

	MetLife Investors USA Insurance Company 
	BR-2
	$4,000,000

	Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
	BR-3
	$8,200,000

	Voya Retirement Insurance and Annuity Company (f/k/a ING Life Insurance and Annuity Company)
	BR-4
	$3,200,000

	Reliastar Life Insurance Company
	BR-5
	$4,500,000

	Reliastar Life Insurance Company of New York
	BR-6
	$100,000

	The Prudential Insurance Company of America
	BR-7
	$2,300,000

	Gibraltar Life Insurance Co., Ltd.
	BR-8
	$11,200,000

	Pruco Life Insurance Company of New Jersey 
	BR-16
	$5,000,000

	MTL Insurance Company 
	BR-10
	$3,000,000

	BCBSM, Inc. dba Blue Cross and Blue Shield of Minnesota
	BR-11
	$1,500,000

	Massachusetts Mutual Life Insurance Company 
	BR-12
	$20,000,000

	Total
	 
	$75,000,000

18

3.13% Senior Notes, Series 2013, due December 21, 2020

	
			
	Holder
	Note
	Amount

	Reliastar Life Insurance Company
	AR-1
	$4,400,000

	Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
	AR-2
	$5,900,000

	Voya Retirement Insurance and Annuity Company (f/k/a ING Life Insurance and Annuity Company)
	AR-3
	$9,600,000

	Security Life of Denver Insurance Company 
	AR-4
	$7,100,000

	Voya Insurance and Annuity Company (f/k/a ING USA Annuity and Life Insurance Company)
	AR-5
	$500,000

	Reliastar Life Insurance Company of New York
	AR-6
	$200,000

	Security Life of Denver Insurance Company
	AR-7
	$200,000

	Reliastar Life Insurance Company
	AR-8
	$100,000

	The Northwestern Mutual Life Insurance Company 
	AR-9
	$28,000,000

	MetLife Alico Life Insurance K.K.
	AR-10
	$10,000,000

	MetLife Alico Life Insurance K.K.
	AR-11
	$10,000,000

	Allianz Global Risks US Insurance Company
	AR-12
	$5,000,000

	Fireman’s Fund Insurance Company
	AR-13
	$5,000,000

	American United Life Insurance Company 
	AR-14
	$9,000,000

	The Phoenix Insurance Company
	AR-15
	$5,000,000

	Total
	 
	$100,000,000

19Exhibit

Exhibit 10.aa

SEVERANCE AGREEMENT

    

THIS SEVERANCE AGREEMENT (the “Agreement”), is made and entered into as of March 31, 2016 between POLARIS INDUSTRIES INC., a Minnesota corporation (the "Company"), and Robert Mack (the "Employee").

R E C I T A L S:

WHEREAS, Employee has been offered employment by the Company; and

WHEREAS, as an inducement to accept such employment and to enhance the loyalty and performance of Employee with the Company, the Company desires to provide the Employee with certain compensation and benefits in the event a termination of employment under the circumstances set forth herein.

NOW, THEREFORE, in consideration of the mutual premises and agreements set forth herein, the parties hereby agree as follows:

1.    Definitions.  As used in this Agreement, these terms shall have the following meanings:
(a)    Cause.  For purposes of this Agreement only, "Cause" means (i) repeated violations of the Employee's employment obligations (other than as a result of incapacity due to physical or mental illness), which are demonstrably willful and deliberate on Employee's part and which are not remedied in a reasonable period after written notice from the Company specifying such violations; or (ii) conviction for (or plea of nolo contendere to) a felony.  
(b)    Change in Control.  A "Change in Control" shall be deemed to have occurred if, prior to the Termination Date (as defined below):
(i)    Any election has occurred of persons to the Board that causes at least one-half of the Board to consist of persons other than (x) persons who were members of the Board as of the date of this Agreement and (y) persons who were nominated for election by the Board as members of the Board at a time when more than one-half of the members of the Board consisted of persons who were members of the Board as of the date of this Agreement; provided, however, that any person nominated for election by the Board at a time when at least one-half of the members of the Board were persons described in clauses (x) and/or (y) or by persons who were themselves nominated by such Board shall, for this purpose, be deemed to have been nominated by a Board composed of persons described in clause (x) (persons described or deemed described in clauses (x) and/or (y) are referred to herein as "Incumbent Directors"); or
(ii)    The acquisition in one or more transactions, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of a number of Company Voting Securities equal to or greater than 35% of the Company Voting Securities unless such acquisition has been designated by the Incumbent Directors as an acquisition not constituting a Change in Control for purposes hereof; or
(iii)    A liquidation or dissolution of the Company; or a reorganization, merger or consolidation of the Company unless, following such reorganization, merger or consolidation, the Company is the surviving entity resulting from such reorganization, merger or consolidation or at least one-half of the Board of Directors of the entity resulting from such reorganization, merger or consolidation consists of Incumbent Directors; or a sale or other disposition of all or substantially all of the assets of the Company unless, following such sale or disposition, at least one-half of the Board of Directors of the transferee consists of Incumbent Directors.
As used herein, "Company Voting Securities" means the combined voting power of all outstanding voting securities of the Company entitled to vote generally in the election of the Board.

(c)    Change in Control Termination.  “Change in Control Termination” shall have the meaning set forth in Paragraph 2.
(d)    Code.  “Code” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.
(e)    Good Reason.  "Good Reason" means (i) the assignment to Employee of any duties inconsistent in any material respect with Employee's position or any material reduction in the scope of the Employee's authority and responsibility; (ii) there is a material reduction in Employee's base compensation; (iii) there is a material change in the geographic location of the Employee’s principal place of employment; or (iv) the Company otherwise fails to perform any of its material obligations to Employee.  The Employee must give the Company notice of the existence of Good Reason during the 90-day period beginning on the date of the initial existence of Good Reason.  If the Company remedies the condition giving rise to Good Reason within 30 days thereafter, Good Reason shall not exist and the Employee will not be entitled to terminate employment for Good Reason.
(f)    Non-Change in Control Termination.  “Non-Change in Control Termination” shall have the meaning set forth in Paragraph 3.
(g)    Senior Executive Incentive Plan.  “Senior Executive Incentive Plan” means the Polaris Industries Inc. Senior Executive Annual Incentive Plan.
(h)    Termination Date.  "Termination Date" means the date on which the Employee's employment with the Company is terminated, with termination of employment being deemed to have occurred using the standard under Section 409A of the Code (also referred to as a “separation from service”). 
2.    Termination upon Change in Control.  If a Change in Control occurs and, upon or within twenty-four (24) months after such Change in Control, the Employee terminates his or her employment for Good Reason or the Employee's employment is terminated by the Company for any reason other than for Cause (a "Change in Control Termination”), then the Employee shall, subject to the conditions set forth in Paragraph 4, be entitled to the following severance benefits: 
(a)    Termination Payment upon Change in Control.  The Company shall pay the Employee a lump sum cash payment, no later than  sixty (60) days after the Termination Date, in an amount equal to (i) two (2) times Employee's average annual cash compensation (including base salary and annual cash incentive awards, but excluding the award, exercise, vesting or settlement of stock options or other equity-based awards) for the three completed fiscal years (or lesser number of fiscal years if the Employee's employment has been of shorter duration) of the Company immediately preceding the Change in Control Termination, plus (ii) the amount of the Employee’s earned but unused vacation time. 
(b)    Unpaid Annual Bonus Payment for Prior Fiscal Year upon Termination upon Change in Control.  If the Termination Date occurs before a cash incentive award under the Senior Executive Incentive Plan has been paid for work performed in the last completed fiscal year immediately preceding the fiscal year in which the Termination Date occurs, the Company shall, in addition to the payment to be made pursuant to Paragraph 2(a), pay to the Employee the amount of the Employee's cash incentive award under the Senior Executive Incentive Plan for such preceding fiscal year as soon as it is determinable (but no later than two and one-half months after the end of such preceding fiscal year).  Notwithstanding the foregoing regarding the payment of an unpaid cash incentive award for performance in the preceding fiscal year, no cash incentive award under the Senior Executive Incentive Plan or otherwise shall be paid for performance during any part of the fiscal year in which the Termination Date occurs.
3.    Non-Change in Control Termination.  Notwithstanding the foregoing, if the Employee's employment is terminated by the Company for any reason other than for Cause, and such termination does not occur upon or within twenty-four (24) months after a Change in Control such that a Change in Control Termination shall have occurred (a “Non-Change in Control Termination”), then the Employee shall, subject to the conditions set forth in Paragraph 4, be entitled to the following severance benefits: 
(a)    Non-Change in Control Termination Payment.  The Company shall pay the Employee (i) an amount equal to the sum of (A) the Employee’s annual base salary as of the Termination Date plus (B) the amount of the cash incentive award that was paid or payable to the Employee under the Senior Executive Incentive Plan for work performed in the last completed fiscal year immediately preceding the fiscal year in which the Termination Date occurs, which amount shall be payable over a period of one year beginning on the Termination Date in periodic installments in 

accordance with the Company’s normal payroll practices; provided, however, that any installments that otherwise would be paid during the first  sixty (60) days after the Termination Date will be delayed and included in the first installment paid to the Employee on the first payroll date that is more than  sixty (60) days after the Termination Date, and (ii) a lump cash payment, no later than  sixty (60) days after the Termination Date, in an amount equal to the Employee’s earned but unused vacation time.  If the Employee is a “specified employee” (within the meaning of Section 409A of the Code), and if the amount otherwise payable to the Employee under this Paragraph 3(a)(i) during the six-month period beginning on the Termination Date exceeds two times the limitation applicable as of the Termination Date under Section 401(a)(17) of the Code, then such excess amount shall be paid at the end of such six-month period.
(b)    Unpaid Annual Bonus Payment for Prior Fiscal Year upon Non-Change in Control Termination.  If the Termination Date occurs before a cash incentive award under the Senior Executive Incentive Plan has been paid for work performed in the last completed fiscal year immediately preceding the fiscal year in which the Termination Date occurs, the Company shall, in addition to the payments to be made pursuant to Paragraph 3(a), pay to the Employee the amount of the Employee's cash incentive award under the Senior Executive Incentive Plan for such preceding fiscal year as soon as it is determinable (but no later than two and one-half months after the end of such preceding fiscal year).  Notwithstanding the foregoing regarding the payment of an unpaid cash incentive award for performance in the preceding fiscal year, no cash incentive award under the Senior Executive Incentive Plan or otherwise shall be paid for performance during any part of the fiscal year in which the Termination Date occurs.  
(c)    COBRA Premium.  If the Employee elects to receive COBRA benefits upon termination, the Company shall pay the premium for coverage of the Employee and the Employee’s eligible spouse and/or dependents under the Company’s group health plan(s) pursuant to the Consolidated Omnibus Budget Reconciliation Act for the one-year period beginning on the Termination Date.
(d)    Outplacement Counseling.  The Company shall provide the Employee with reasonable executive outplacement services, in accordance with Company policies for senior executives as in effect on the Termination Date.
(e)    Lapse of Restrictions on Performance Based Restricted Share and Unit Awards.  Notwithstanding the terms of any agreement pursuant to which performance-based restricted share and restricted stock unit awards have been granted to the Employee by the Company, all restrictions applicable to such awards shall lapse immediately upon the Termination Date if the measurement period and performance goals applicable thereto have been achieved on or before the Termination Date.
4.    Condition to Receipt of Severance Benefits.  As a condition to receiving any severance benefits in connection with a Change in Control Termination under Paragraph 2 or in connection with a Non-Change in Control Termination under Paragraph 3, the Employee shall have executed and not rescinded a general waiver and release (the “Waiver and Release”) in the form provided by the Company at the time of termination of employment, and shall be and remain in compliance with Employee’s continuing obligations to the Company under this Agreement or any other written agreement between the Employee and the Company (including the Non-Competition and Non-Solicitation Agreement referenced in Paragraph 16).  The Waiver and Release shall become effective in accordance with the rescission provisions set forth therein.
5.    Benefits in Lieu of Severance Pay.  The severance benefits provided for in Paragraphs 2 and 3are in lieu of any benefits that would otherwise be provided to the Employee under any Company severance pay policy or practice and the Employee shall not be entitled to any benefits under any Company severance pay policy or practice in the event that severance benefits are paid hereunder.
6.    Rights in the Event of Dispute.  In the event of a Change of Control Termination, if there is a claim or dispute arising out of or relating to this Agreement or any breach thereof, regardless of the party by whom such claim or dispute is initiated, the Company shall, in connection with settlement in the Employee's favor of any such matter or upon payment of any judgment entered in the Employee's favor, upon presentation of appropriate vouchers, pay all legal expenses, including reasonable attorneys' fees, court costs, and ordinary and necessary out-of-pocket cost of attorneys, billed to and payable by the Employee or by anyone claiming under or through the Employee.
7.    Other Benefits.  The benefits provided under this Agreement shall, except to the extent otherwise specifically provided herein, be in addition to, and not in derogation or diminution of, any benefits that Employee or his or her beneficiary may be entitled to receive under any other contract, plan or program now or hereafter maintained by the Company, or its subsidiaries, including any and all stock options and other equity-based award agreements.

8.    Effect on Employment.  Neither this Agreement nor anything contained herein shall be construed as conferring upon Employee the right to continue in the employment of the Company or any of its affiliates, or as interfering with or limiting the right of the Company to terminate the Employee's employment with or without cause at any time.
9.    Limitation in Action.  Prior to the occurrence of a Change in Control, the Board shall have the power and the rights, within its sole discretion, to modify or amend Paragraph 2 of this Agreement, but not in a manner that would be less favorable to the Employee without the consent of Employee.  In all other cases, and notwithstanding the authority granted to the Board to exercise any discretion to modify or amend Paragraph 2 of this Agreement contained herein, the Board will not, following a Change in Control, have the power or right to exercise such authority or otherwise take any action that is inconsistent with the provisions of this Agreement.
10.    Successors.  The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business and/or assets of the Company, to expressly assume and agree to perform its obligations under this Agreement in the same manner and to the same extent that the Company would be required to perform them if no succession had taken place unless, in the opinion of legal counsel mutually acceptable to the Company and the Employee, such obligations have been assumed by the successor as a matter of law.  The Employee's rights under this Agreement shall inure to the benefit of, and shall be enforceable by, the Employee's legal representative or other successors in interest, but shall not otherwise be assignable or transferable.
11.    Severability.  If any provision of this Agreement or the application thereof is held invalid or unenforceable, the invalidity or unenforceability thereof shall not affect any other provisions or applications of this Agreement which can be given effect without the invalid or unenforceable provision or application.
12.    Survival.  The rights and obligations of the parties pursuant to this Agreement shall survive the termination of the Employee's employment with the Company to the extent that any performance is required hereunder after such termination.
13.    Governing Law.  This Agreement shall be governed by and construed under the laws of the State of Minnesota, without giving effect to the conflicts of law provisions thereof.
14.    Notices.  All notices under this Agreement shall be in writing and shall be deemed effective when delivered in person (in the Company's case, to its Secretary) or 48 hours after deposit thereof in the U.S. mails, postage prepaid, addressed, in the case of the Employee, to his last known address as carried on the personnel records of the Company and, in the case of the Company, to the corporate headquarters, attention of the Secretary, or to such other address as the party to be notified may specify by written notice to the other party.
15.    Amendments and Construction.  Except as set forth in Paragraph 8, this Agreement may only be amended in a writing signed by the parties hereto.  Paragraph headings are for convenience only and shall not be considered a part of the terms and provisions of the Agreement.
16.    Non-Competition and Non-Solicitation Agreement.  The Non-Competition and Non-Solicitation Agreement entered into between the Employee and the Company remains in full force and effect and nothing contained herein is intended to amend or modify the provisions of that agreement or any replacements thereof.
17.    Taxes.  The Company may withhold from any amounts payable under this Agreement such federal, state and local income and employment taxes as the Company determines are required or authorized to be withheld pursuant to any applicable law or regulation. Except for any tax amounts withheld by the Company from any compensation that Employee may receive in connection with Employee’s employment with the Company and any employer taxes required to be paid by the Company under applicable laws or regulations, Employee is solely responsible for payment of any and all taxes owed in connection with any compensation, benefits, reimbursement amounts or other payments Employee receives from the Company under this Agreement or otherwise in connection with Employee’s employment with the Company.  

18.    Code Section 409A. It is intended that all of the payments satisfy, to the greatest extent possible, the exemptions from the application of Code Section 409A provided under Treasury Regulations Sections 1.409A-1(b)(4), 1.409A-1(b)(5) and 1.409A-1(b)(9), and this Agreement will be construed to the greatest extent possible as consistent with those provisions.  For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), the Employee’s right to receive any installment payments under this Agreement (whether severance payments, reimbursements or otherwise) will be treated as a right to receive a series of separate payments and, 

accordingly, each installment payment hereunder will at all times be considered a separate and distinct payment. Notwithstanding any provision to the contrary in this Agreement, if the Employee is deemed by the Company at the time of separation from service to be a “specified employee” for purposes of Code Section 409A(a)(2)(B)(i), and if any of the payments set forth herein and/or under any other agreement with the Company are deemed to be “deferred compensation”, then to the extent delayed commencement of any portion of such payments is required in order to avoid a prohibited distribution under Code Section 409A(a)(2)(B)(i) and the related adverse taxation under Section 409A, such payments will not be provided to the Employee prior to the earliest of (i) the expiration of the six-month period measured from the Termination Date, (ii) the date of the Employee’s death or (iii) such earlier date as permitted under Code Section 409A without the imposition of adverse taxation.  Upon the first business day following the expiration of such applicable Code Section 409A(a)(2)(B)(i) period, all Payments deferred pursuant to this Paragraph 18(c) will be paid in a lump sum to the Employee, and any remaining Payments due will be paid as otherwise provided herein or in the applicable agreement.  No interest will be due on any amounts so deferred. Notwithstanding any other provision herein to the contrary, in the event of any ambiguity in the terms of this Agreement, such term(s) will be interpreted and at all times administered in a manner that avoids the inclusion of compensation in income under Code Section 409A, or the payment of increased taxes, excise taxes or other penalties under Code Section 409A. The parties intend all payments and benefits hereunder to be in compliance with Code Section 409A.

IN WITNESS WHEREOF, the parties have duly executed this Severance Agreement as of the day and year first written above.

	
				
	 
	POLARIS INDUSTRIES INC.
	 
	EMPLOYEE

	By:
	  /s/ Stacy Bogart    
	 
	       /s/ Robert Mack

	 
	Stacy Bogart
	 
	Name: Robert Mack

	 
	VP, General Counsel

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