Document:

Exhibit 10.20

Exhibit 10.20

AMENDMENT NO. 1 TO LOAN AGREEMENT

This Amendment No. 1 (the “Amendment”) dated as of November 17, 2010, is between Bank of
America, N.A. (the “Bank”), Resources Connection, Inc. (“Borrower 1”) and Resources Connection LLC
(“Borrower 2”) (Borrower 1 and Borrower 2 are sometimes referred to collectively as the “Borrowers”
and individually as the “Borrower”).

RECITALS

A. The Bank and the Borrowers entered into a certain Loan Agreement dated as of November 30,
2009 (together with any previous amendments, the “Agreement”).

B. The Bank and the Borrowers desire to amend the Agreement.

AGREEMENT

1. Definitions. Capitalized terms used but not defined in this Amendment shall have
the meaning given to them in the Agreement.

2. Amendments. The Agreement is hereby amended as follows:

	 	2.1	 	Paragraph number 1.2 is hereby amended to read in its entirety as follows:

“1.2 Availability Period. The line of credit is available
between the date of this Agreement and November 29, 2011, or such earlier date
as the availability may terminate as provided in this Agreement (the “Facility
No. 1 Expiration Date”).”

	 	2.2	 	In paragraph number 7.3, entitled “Unencumbered Liquid Assets,”
the amount “Fifty Million and 00/100 Dollars ($50,000,000.00)” is changed to “Thirty
Million and 00/100 Dollars ($30,000,000.00)”.
	 
	 	2.3	 	Paragraph number 7.4, entitled “Profitability” is hereby deleted in its
entirety.
	 
	 	2.4	 	Subparagraph number 7.7(e) is hereby amended to read in its entirety as follows:

	 	“(e)	 	Additional debts and capital lease obligations for business
purposes which do not exceed a total principal amount of Twenty-Five Million
and 00/100 Dollars ($25,000,000.00) outstanding at any one time.”

	 	2.5	 	Subparagraph number 7.8(d) is hereby amended to read in its entirety as follows:

	 	“(d)	 	Additional purchase money security interests in assets
acquired after the date of this Agreement, if the total principal amount of
debts secured by such liens does not exceed Twenty-Five Million and 00/100
Dollars ($25,000,000.00) at any one time.”

	 	2.6	 	Subparagraph number 7.10(d) is hereby amended to read in its entirety as follows:

	 	“(d)	 	Extensions of credit that do not exceed an aggregate amount
of Ten Million and 00/100 Dollars ($10,000,000.00) outstanding at any one
time.”

	 	2.7	 	Paragraph number 7.12, entitled “Change of Ownership” is hereby deleted in
its entirety.

 

-1-

 

	 	2.8	 	Subparagraph number 7.13(b) is hereby deleted in its entirety.
	 
	 	2.9	 	Subparagraph number 7.14(a) is hereby amended to read in its entirety as follows:

	 	“(a)	 	Any lawsuit that is filed against any Borrower or any Obligor
with claim that exceeds (10%) of its current assets valued at cost.”

	 	2.10	 	Subparagraph number 7.14(f) is hereby deleted in its entirety.
	 
	 	2.11	 	Paragraph number 7.21, entitled “Material Subsidiaries” is hereby deleted
in its entirety.
	 
	 	2.12	 	Paragraph number 7.22, entitled “Other Subsidiaries” is hereby deleted in
its entirety.

3. Representations and Warranties. When the Borrowers sign this Amendment, each of
the Borrowers represents and warrants to the Bank that: (a) there is no event which is, or with
notice or lapse of time or both would be, a default under the Agreement except those events, if
any, that have been disclosed in writing to the Bank or waived in writing by the Bank (b) the
representations and warranties in the Agreement are true as of the date of this Amendment as if
made on the date of this Amendment, (c) this Amendment does not conflict with any law, agreement,
or obligation by which the Borrower is bound, and (d) if the Borrower is a business entity or a
trust, this Amendment is within the Borrower’s powers, has been duly authorized, and does not
conflict with any of the Borrower’s organizational papers.

4. Effect of Amendment. Except as provided in this Amendment, all of the terms and
conditions of the Agreement shall remain in full force and effect.

5. Counterparts. This Amendment may be executed in counterparts, each of which when
so executed shall be deemed an original, but all such counterparts together shall constitute but
one and the same instrument.

6. FINAL AGREEMENT. BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:
(A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN PARTIES WITH RESPECT TO THE SUBJECT MATTER
HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET OR OTHER WRITTEN OUTLINE OF
TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM
SHEET OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C)
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY NOT BE
CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR
UNDERSTANDINGS OF THE PARTIES.

This Amendment is executed as of the date stated at the beginning of this Amendment.

Bank of America, N.A.

By:                                                   

Name:

Title:

 

-2-

 

BORROWER(S):

Resources Connection, Inc.

By:                                                   

Name: Nathan W. Franke

Title: Executive Vice President/CFO

Resources Connection LLC

By:                                                   

Name: Nathan W. Franke

Title: Executive Vice President/CFO

 

-3-Exhibit 10.1

Exhibit 10.1

FORM OF JOINDER AGREEMENT

This JOINDER AGREEMENT, dated as of                     
___, 20___, between Irvine Sensors
Corporation, a Delaware corporation (the “Company”) and                     , a
                     (the “Joining Party”).

WHEREAS, the Company and certain other purchasers are parties to a Securities Purchase
Agreement, dated as of December 23, 2010 (the “Purchase Agreement”);

WHEREAS, Section 3.4 of the Purchase Agreement provides that the Company shall enter into a
joinder agreement with each Bridge Note Holder who elects the Bridge Note Conversion;

WHEREAS, the Joining Party wishes to join and become a party to the Purchase Agreement, and
the Company is willing to permit the Joining Party to become a party thereto, all on the terms and
subject to the conditions set forth in this Agreement;

WHEREAS, this Agreement is a joinder agreement and as such is delivered pursuant to and
conforms to the requirements of Section 3.4 of the Purchase Agreement;

NOW, THEREFORE, in consideration of the foregoing, the parties hereto hereby agree as follows:

1. Definitions.

Capitalized terms used and not otherwise defined in this Agreement have the meanings
attributed to such terms in the Purchase Agreement.

2. Joinder; Purchase of Common Stock and Notes.

The Joining Party hereby joins and becomes a party to, and the Company hereby accepts the
Joining Party as a party to, the Purchase Agreement. The Company and the Joining Party each
acknowledge that the terms “Bridge Note Holder” and “Purchaser”, each as defined in the Purchase
Agreement, includes the Joining Party and that the rights and obligations of the Joining Party as a
Bridge Note Holder and Purchaser are set forth in the Purchase Agreement. The Joining Party
further agrees its Bridge Note, in a principal amount of $                    , together with accrued
interest thereon of $                     through                     ,
20___, will be extinguished and will
convert into $                     aggregate principal amount of Notes and                      shares of Common
Stock.

 

 

 

3. Acknowledgment and Ratification.

The Joining Party acknowledges that it has received a copy of the Purchase Agreement. The
Joining Party hereby ratifies all past actions of the Purchasers pursuant to the Purchase
Agreement.

4. Representations and Warranties.

The Joining Party hereby represents and warrants to the Company that the statements in Section
4 of the Purchase Agreement are true and complete as of the date of this Joinder Agreement

5. Bridge Financing Obligations

The Joining Party acknowledges and agrees that this Joinder Agreement, and the transactions
contemplated by the Purchase Agreement to which the Joining Party has joined, satisfies all
obligations of the Company under the Bridge Financing (as that term is defined in the Purchase
Agreement).

6. Notice.

For purposes of Section 8.04 of the Purchase Agreement, the Joining Party’s address and
facsimile number are:

	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 
	 	 

	 	 
	 

	 	 
	 	 

	 	 
	 

	 	Attention:	 	 	 	 
	 

	 	 Facsimile:
	 	 

	 	 
	 

	 	 
	 	 

	 	 

7. Governing Law.

This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware without regard to its conflict of law principles.

8. Counterparts.

This Agreement may be executed in any number of counterparts, and each such counterpart hereof
shall be deemed to be an original instrument, but all such counterparts together shall constitute
but one agreement. This Joinder Agreement may be executed by facsimile or other electronic
signature.

* * * * *

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the
date first above stated.

	 	 	 	 	 
	 	IRVINE SENSORS CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[NAME OF JOINING PARTY]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:Exhibit 10.1

Exhibit 10.1

$450,000,000

CREDIT AGREEMENT

Dated as of December 31, 2010

among

CERTAIN SUBSIDIARIES OF RUSH ENTERPRISES, INC., AS BORROWERS,

RUSH ENTERPRISES, INC., AS THE BORROWER REPRESENTATIVE,

THE LENDERS,

and

GENERAL ELECTRIC CAPITAL CORPORATION,

AS ADMINISTRATIVE AGENT AND COLLATERAL AGENT

• • •

GE CAPITAL MARKETS, INC.,

AS SOLE LEAD ARRANGER AND BOOKRUNNER

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS
	 	 	1	 
	Section 1.1 Defined Terms
	 	 	1	 
	Section 1.2 UCC Terms
	 	 	15	 
	Section 1.3 Accounting Terms and Principles
	 	 	15	 
	Section 1.4 Interpretation
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 2 REVOLVING CREDIT FACILITY
	 	 	16	 
	Section 2.1 The Revolving Credit Facility
	 	 	16	 
	Section 2.2 Borrowing Procedures
	 	 	17	 
	Section 2.3 Refinancing Swing Loans
	 	 	20	 
	Section 2.4 Reallocation of Loans
	 	 	21	 
	Section 2.5 Reduction and Termination of the Commitments
	 	 	21	 
	Section 2.6 Repayment of Loans
	 	 	21	 
	Section 2.7 Optional Prepayments
	 	 	23	 
	Section 2.8 Mandatory Repayments
	 	 	23	 
	Section 2.9 Interest; Fees
	 	 	24	 
	Section 2.10 Delayed Payment Privilege
	 	 	25	 
	Section 2.11 Settlement Dates
	 	 	27	 
	Section 2.12 Application of Payments
	 	 	27	 
	Section 2.13 Payments and Computations
	 	 	29	 
	Section 2.14 Evidence of Debt
	 	 	30	 
	Section 2.15 Suspension of LIBOR Rate Option
	 	 	31	 
	Section 2.16 Breakage Costs
	 	 	32	 
	Section 2.17 Taxes
	 	 	32	 
	Section 2.18 Substitution of Lenders
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 3 SECURITY INTEREST
	 	 	35	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES
	 	 	36	 
	Section 4.1 Corporate Existence; Compliance with Law; Line of Business
	 	 	36	 
	Section 4.2 Loan
	 	 	37	 
	Section 4.3 Ownership of Group Members
	 	 	37	 
	Section 4.4 Financial Statements
	 	 	37	 
	Section 4.5 Material Adverse Effect
	 	 	37	 

 

 

 

	 	 	 	 	 
	Section 4.6 Solvency
	 	 	37	 
	Section 4.7 Litigation
	 	 	37	 
	Section 4.8 Taxes
	 	 	38	 
	Section 4.9 Margin Regulations
	 	 	38	 
	Section 4.10 No Burdensome Obligations; No Defaults
	 	 	38	 
	Section 4.11 Investment Company Act; Public Utility Holding Company Act
	 	 	38	 
	Section 4.12 Full Disclosure
	 	 	38	 
	Section 4.13 Patriot Act
	 	 	39	 
	Section 4.14 Collateral
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 5 FINANCIAL COVENANTS
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 6 REPORTING COVENANTS
	 	 	40	 
	Section 6.1 Financial Statements
	 	 	40	 
	Section 6.2 Other Events
	 	 	41	 
	Section 6.3 Copies of Notices and Reports
	 	 	41	 
	Section 6.4 Other Information
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 7 AFFIRMATIVE COVENANTS
	 	 	42	 
	Section 7.1 Maintenance of Corporate Existence
	 	 	42	 
	Section 7.2 Compliance with Laws, Etc.
	 	 	42	 
	Section 7.3 Payment of Obligations
	 	 	42	 
	Section 7.4 Maintenance of Property
	 	 	42	 
	Section 7.5 Maintenance of Insurance
	 	 	43	 
	Section 7.6 Keeping of Books
	 	 	43	 
	Section 7.7 Access to Books and Property
	 	 	43	 
	Section 7.8 Use of Proceeds
	 	 	44	 
	Section 7.9 Future Borrowers
	 	 	44	 
	 
	 	 	 	 
	ARTICLE 8 NEGATIVE COVENANTS
	 	 	44	 
	Section 8.1 Liens
	 	 	44	 
	Section 8.2 Fundamental Changes
	 	 	45	 
	Section 8.3 Change in Nature of Business
	 	 	45	 
	Section 8.4 Transactions with Affiliates
	 	 	45	 
	Section 8.5 Modification of Certain Documents; Change in Jurisdiction of Organization
	 	 	45	 
	Section 8.6 Accounting Changes; Fiscal Year
	 	 	45	 
	Section 8.7 Margin Regulations
	 	 	45	 

 

ii 

 

	 	 	 	 	 
	ARTICLE 9 EVENTS OF DEFAULT
	 	 	46	 
	Section 9.1 Definition
	 	 	46	 
	Section 9.2 Remedies
	 	 	47	 
	 
	 	 	 	 
	ARTICLE 10 THE ADMINISTRATIVE AGENT
	 	 	48	 
	Section 10.1 Appointment and Duties
	 	 	48	 
	Section 10.2 Binding Effect
	 	 	49	 
	Section 10.3 Use of Discretion
	 	 	49	 
	Section 10.4 Delegation of Rights and Duties
	 	 	49	 
	Section 10.5 Reliance and Liability
	 	 	50	 
	Section 10.6 Administrative Agent Individually
	 	 	51	 
	Section 10.7 Lender Credit Decision
	 	 	51	 
	Section 10.8 Expenses; Indemnities
	 	 	52	 
	Section 10.9 Resignation of Administrative Agent
	 	 	52	 
	Section 10.10 Release of Collateral or Guarantors
	 	 	53	 
	 
	 	 	 	 
	ARTICLE 11 MISCELLANEOUS
	 	 	54	 
	Section 11.1 Amendments, Waivers, Etc.
	 	 	54	 
	Section 11.2 Assignments and Participations; Binding Effect
	 	 	55	 
	Section 11.3 Costs and Expenses
	 	 	56	 
	Section 11.4 Indemnities
	 	 	57	 
	Section 11.5 Survival
	 	 	57	 
	Section 11.6 Limitation of Liability for Certain Damages
	 	 	58	 
	Section 11.7 Lender-Creditor Relationship
	 	 	58	 
	Section 11.8 Right of Setoff
	 	 	58	 
	Section 11.9 Sharing of Payments, Etc.
	 	 	58	 
	Section 11.10 Marshaling; Payments Set Aside
	 	 	59	 
	Section 11.11 Notices
	 	 	59	 
	Section 11.12 Electronic Transmissions
	 	 	60	 
	Section 11.13 GOVERNING LAW
	 	 	61	 
	Section 11.14 JURISDICTION
	 	 	61	 
	Section 11.15 WAIVER OF JURY TRIAL
	 	 	62	 
	Section 11.16 Severability
	 	 	62	 
	Section 11.17 Execution in Counterparts
	 	 	62	 

 

iii 

 

	 	 	 	 	 
	Section 11.18 Entire Agreement
	 	 	62	 
	Section 11.19 Use of Name
	 	 	62	 
	Section 11.20 Non-Public Information; Confidentiality
	 	 	63	 
	Section 11.21 Actions in Concert
	 	 	64	 
	Section 11.22 Patriot Act Notice
	 	 	64	 
	 
	 	 	 	 
	ARTICLE 12 CROSS-GUARANTY
	 	 	64	 
	Section 12.1 Cross-Guaranty
	 	 	64	 
	Section 12.2 Waivers by Borrowers
	 	 	65	 
	Section 12.3 Benefit of Guaranty
	 	 	65	 
	Section 12.4 Subordination of Subrogation, Etc.
	 	 	65	 
	Section 12.5 Election of Remedies
	 	 	66	 
	Section 12.6 Limitation
	 	 	66	 
	Section 12.7 Contribution with Respect to Guaranty Obligations
	 	 	67	 
	Section 12.8 Liability Cumulative
	 	 	67	 

	 	 	 	 	 
	Exhibits
	 	 	 	 
	 
	 	 	 	 
	Exhibit A

	 	—
	 	Form of Assignment
	Exhibit B-1

	 	—
	 	Form of Request for Equipment Loan Borrowing
	Exhibit B-2

	 	—
	 	Form of Request for Working Capital Loan Borrowing
	Exhibit C

	 	—
	 	Form of Compliance Certificate
	 
	 	 	 	 
	Schedules
	 	 	 	 
	 
	 	 	 	 
	Schedule I

	 	—
	 	Commitments
	Schedule II

	 	—
	 	Lender Addresses for Notice
	Schedule 1.1

	 	 	 	Immaterial Subsidiaries
	Schedule 4.2

	 	—
	 	Consents and Approvals
	Schedule 4.3

	 	—
	 	Group Members

 

iv 

 

This Credit Agreement, dated as of December 31, 2010 (this “Agreement”), is entered
into among Rush Truck Centers of Alabama, Inc., Rush Truck Centers of Arizona, Inc., Rush Truck
Centers of California, Inc., Rush Medium Duty Truck Centers of Colorado, Inc., Rush Truck Centers
of Colorado, Inc., Rush Truck Centers of Florida, Inc., Rush Truck Centers of Georgia, Inc., Rush
Truck Centers of New Mexico, Inc., Rush Truck Centers of Oklahoma, Inc., Rush Truck Centers of
Tennessee, Inc., Rush Truck Centers of North Carolina, Inc., Rush Truck Centers of Idaho, Inc.,
Rush Truck Centers of Utah, Inc., and Rush Truck Centers of Oregon, Inc., each a Delaware
corporation and Rush Truck Centers of Texas, L.P., a Texas limited partnership (collectively, the
“Borrowers” and individually a “Borrower”), Rush Enterprises, Inc., a Texas
corporation (“Holdings” or the “Borrower Representative”), the Lenders (as defined
below) from time to time parties hereto and General Electric Capital Corporation, as administrative
agent and collateral agent for the Lenders (in such capacity, and together with its successors and
permitted assigns, the “Administrative Agent”).

The parties hereto agree as follows:

ARTICLE 1

DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

Section 1.1 Defined Terms. As used in this Agreement, the following terms
have the following meanings:

“Account” has the meaning specified in Article 3.

“Acknowledgement of Purchaser” has the meaning specified in Section 2.10(g).

“Administrative Agent” has the meaning specified in preamble of this Agreement.

“Affected Lender” has the meaning specified in Section 2.18.

“Affiliate” means, with respect to any Person, each officer, director, general partner
or joint-venturer of such Person and any other Person that directly or indirectly controls, is
controlled by, or is under common control with, such Person; provided, however,
that no Secured Party shall be an Affiliate of any Borrower. For purpose of this definition,
“control” means the possession of either (a) the power to vote, or the beneficial ownership
of, 10% or more of the Voting Stock of such Person or (b) the power to direct or cause the
direction of the management and policies of such Person, whether by contract or otherwise.

“Agreement” means this Credit Agreement.

“Allocable Amount” has the meaning specified in Section 12.7.

“Approved Fund” means, with respect to any Lender, any Person (other than a natural
Person) that is an Affiliate of such Lender.

“Applicable Lender Margin” shall have the meaning, with respect to any Lender, set
forth in the Lender Interest Letter for such Lender.

“Assignment” means an assignment agreement entered into by a Lender, as assignor, and
any Person, as assignee, pursuant to the terms and provisions of Section 11.2 (with the
consent of any party whose consent is required by Section 11.2), accepted by the
Administrative Agent, in substantially the form of Exhibit A, or any other form approved by
the Administrative Agent.

 

 

 

“Bankruptcy Code” means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et
seq.), as amended and in effect from time to time and the regulations issued from time to time
thereunder.

“Base Rate” has the meaning specified in Section 2.15(c).

“Base Rate Loan” has the meaning specified in Section 2.15(c).

“Borrower” has the meaning specified in preamble of this Agreement.

“Borrower Representative” has the meaning specified in preamble of this Agreement.

“Borrowing” means a borrowing consisting of Loans made on the same day by the Lenders
according to their respective Commitments.

“Business Day” means any day of the year that is not a Saturday, Sunday or a day on
which banks are required or authorized to close in New York City and, when determined in connection
with notices and determinations in respect of any LIBOR Rate or LIBOR Rate Loan or any funding,
conversion, continuation or payment of any LIBOR Rate Loan, that is also a day on which dealings in
Dollar deposits are carried on in the London interbank market.

“Capital Expenditures” means, for any Person for any period, the aggregate of all
expenditures, whether or not made through the incurrence of Indebtedness, by such Person and its
Subsidiaries during such period for the acquisition, leasing (pursuant to a Capital Lease),
construction, replacement, repair, substitution or improvement of fixed or capital assets or
additions to equipment, in each case required to be capitalized under GAAP on a Consolidated
balance sheet of such Person, excluding interest capitalized during construction.

“Capital Lease” means, with respect to any Person, any lease of, or other arrangement
conveying the right to use, any property (whether real, personal or mixed) by such Person as lessee
that has been or should be accounted for as a capital lease on a balance sheet of such Person
prepared in accordance with GAAP.

“Capitalized Lease Obligations” means, at any time, with respect to any Capital Lease,
any lease entered into as part of any Sale and Leaseback Transaction of any Person or any synthetic
lease, the amount of all obligations of such Person that is (or that would be, if such synthetic
lease or other lease were accounted for as a Capital Lease) capitalized on a balance sheet of such
Person prepared in accordance with GAAP.

 

2

 

“Cash Equivalents” means (a) any readily-marketable securities (i) issued by, or
directly, unconditionally and fully guaranteed or insured by the United States federal government
or (ii) issued by any agency of the United States federal government the obligations of which are
fully backed by the full faith and credit of the United States federal government, (b) any
readily-marketable direct obligations issued by any other agency of the United States federal
government, any state of the United States or any political subdivision of any such state or any
public instrumentality thereof, in each case having a rating of at least “A-1” from S&P or at least “P-1” from Moody’s, (c) any
commercial paper rated at least “A-1” by S&P or “P-1” by Moody’s and issued by any
Person organized under the laws of any state of the United States, (d) any Dollar-denominated time
deposit, insured certificate of deposit, overnight bank deposit or bankers’ acceptance issued or
accepted by (i) any Lender or (ii) any commercial bank that is (A) organized under the laws of the
United States, any state thereof or the District of Columbia, (B) “adequately capitalized” (as
defined in the regulations of its primary federal banking regulators) and (C) has Tier 1 capital
(as defined in such regulations) in excess of $250,000,000, (e) shares of any United States money
market fund that (i) has substantially all of its assets invested continuously in the types of
investments referred to in clause (a), (b), (c) or (d) above with
maturities as set forth in the proviso below, (ii) has net assets in excess of $500,000,000 and
(iii) has obtained from either S&P or Moody’s the highest rating obtainable for money market funds
in the United States and (f) CDARS, if the amount so invested is unconditionally guaranteed by the
United States of America (or by any agency thereof to the extent such obligations are backed by the
full faith and credit of the United States of America); provided, however, that the
maturities of all obligations specified in any of clauses (a), (b), (c) and
(d) above shall not exceed 365 days.

“Change of Control” means the occurrence of any of the following: (a) the acquisition
of ownership, directly or indirectly, beneficially or of record, by any Person or group (within the
meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange
Commission thereunder as in effect on the Closing Date), other than Permitted Investors, of Stock
representing 35% of the aggregate ordinary voting power represented by the issued and outstanding
Stock of Borrower Representative, (b) the occupation of a majority of the seats on the board of
directors of Borrower Representative by Persons who were not directors on the Closing Date and
were neither (i) nominated by the board of directors of Borrower Representative nor (ii) appointed
by directors so nominated, or (c) Borrower Representative ceases, directly or indirectly, to own
and control, beneficially and of record, one hundred percent (100%) of the issued and outstanding
Voting Stock and Stock Equivalents of each Borrower on a fully diluted basis (as the same may be
adjusted for any combination, recapitalization or reclassification into a greater or smaller number
of shares, interests or other unit of equity security). For purposes of this definition, Permitted
Investors shall mean W. Marvin Rush, W.M. “Rusty” Rush, Robin Rush, Barbara Rush and any other
Person whose Stock is controlled by any one or more of the foregoing.

“Closing Date” means December 31, 2010.

“Code” means the U.S. Internal Revenue Code of 1986.

“Collateral” has the meaning specified in Article 3.

“Collateral Amount Financed” has the meaning specified in Section 2.10(a).

“Commitment” means, with respect to each Lender, the commitment of such Lender to make
Loans, which commitment is in the amount set forth opposite such Lender’s name on Schedule
I under the caption “Commitment” as amended to reflect Assignments and as such amount
may be reduced pursuant to this Agreement. The aggregate amount of the Commitments on the date
hereof equals $450,000,000.

 

3

 

“Commitment Termination Date” shall mean the earliest of (a) the Scheduled Termination
Date, (b) the date of termination of the Commitments pursuant to Section 2.5 or 9.2
and (c) the date on which the Obligations become due and payable pursuant to Section 9.2.

“Compliance Certificate” means a certificate substantially in the form of Exhibit
C.

“Consolidated” means, with respect to any Person, the accounts of such Person and its
Subsidiaries consolidated in accordance with GAAP.

“Consolidated Adjusted EBITDAR” means, for any period, (a) the Consolidated Net Income
of Holdings and its Subsidiaries for such period plus (b) the sum of, in each case to the
extent deducted in the calculation of such Consolidated Net Income but without duplication, (i) any
provision for United States federal, state or local income taxes or other taxes measured by net
income, (ii) Consolidated Interest Expense, (iii) any loss from extraordinary items, (iv) any
depreciation and amortization expense, (v) any aggregate net loss on the Sale of property (other
than accounts (as defined under the applicable UCC) and inventory) outside the ordinary course of
business, (vi) any other non-cash expenditure, charge or loss for such period (other than any
non-cash expenditure, charge or loss relating to write-offs, write-downs or reserves with respect
to accounts and inventory), including the amount of any compensation deduction as the result of any
grant of Stock or Stock Equivalents to employees, officers, directors or consultants, (vii)
alternative fuel vehicle tax credits earned by Holdings and its Subsidiaries in respect of such
period, and (viii) all rent expense for real property (land and buildings) of Holdings and its
Subsidiaries actually paid or payable in cash by Holdings and its Subsidiaries in respect of such
period, and minus (c) the sum of, in each case to the extent included in the calculation of
such Consolidated Net Income and without duplication, (i) any credit for United States federal,
state or local income taxes or other taxes measured by net income, (ii) any gain from extraordinary
items, (iii) any aggregate net gain from the Sale of property (other than accounts (as defined in
the applicable UCC) and inventory) out of the ordinary course of business by such Person, (iv) any
other non-cash gain, including any reversal of a charge referred to in clause (b)(vi) above
by reason of a decrease in the value of any Stock or Stock Equivalent, and (v) any other cash
payment in respect of expenditures, charges and losses that have been added to Consolidated
Adjusted EBITDAR of such Person pursuant to clause (b)(vi) above in any prior period.

“Consolidated Fixed Charge Coverage Ratio” means, for any period, the ratio of (a)
Consolidated Adjusted EBITDAR for such period, minus Capital Expenditures of such Person
for such period (excluding Capital Expenditures financed with Indebtedness or Stock) to (b) the
Consolidated Fixed Charges of such Person for such period.

“Consolidated Fixed Charges” means, for any period, the sum, determined on a
Consolidated basis, of (a) the Consolidated Interest Expense of Holdings and its Subsidiaries
actually paid or payable in cash by Holdings and its Subsidiaries in respect of such period, (b)
the aggregate amount of principal payments (whether scheduled or unscheduled) on Indebtedness of
Holdings and its Subsidiaries actually paid or payable in cash by Holdings and its Subsidiaries in
respect of such period, but excluding any balloon or “lump sum” principal payments that are
re-financed or rolled over with other Indebtedness, (c) all rent expense for real property (land
and buildings) of Holdings and its Subsidiaries actually paid or payable in cash by Holdings and
its Subsidiaries in respect of such period, (d) the total liability for United States federal,
state and local income taxes and other taxes measured by net income actually paid or payable in
cash by Holdings and its Subsidiaries in respect of such period and (e) all cash Restricted
Payments paid or payable by Holdings and its Subsidiaries on Stock in respect of such period to Persons
other than Holdings and its Subsidiaries.

 

4

 

“Consolidated Interest Expense” means, for any Person for any period, Consolidated
total interest expense of such Person and its Subsidiaries for such period determined in accordance
with GAAP.

“Consolidated Leverage Ratio” means, as of any date, the ratio of (a) Consolidated
total liabilities of Holdings and its Subsidiaries determined in accordance with GAAP as of such
date to (b) Consolidated Net Worth as of such date.

“Consolidated Net Income” means, with respect to any Person, for any period, the
Consolidated net income (or loss) of such Person and its Subsidiaries for such period;
provided, however, that the following shall be excluded: (a) the net income of any
other Person in which such Person or one of its Subsidiaries has a joint interest with a
third-party (which interest does not cause the net income of such other Person to be Consolidated
into the net income of such Person), except to the extent of the amount of dividends or
distributions paid to such Person or Subsidiary, (b) the net income of any Subsidiary of such
Person that is, on the last day of such period, subject to any restriction or limitation on the
payment of dividends or the making of other distributions, to the extent of such restriction or
limitation and (c) the net income of any other Person arising prior to such other Person becoming a
Subsidiary of such Person or merging or consolidating into such Person or its Subsidiaries.

“Consolidated Net Worth” means, as of any date, total shareholders’ equity of Holdings
as of such date.

“Consolidated Tangible Net Worth” means, as of any date, (i) Consolidated Net Worth,
less (ii) the value of all assets of Holdings and its Subsidiaries which would be classified as
intangible assets under generally accepted accounting principles, including, without limitation,
goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises.

“Constituent Documents” means, with respect to any Person, collectively and, in each
case, together with any modification of any term thereof, (a) the articles of incorporation,
certificate of incorporation, constitution or certificate of formation of such Person, (b) the
bylaws, operating agreement or joint venture agreement of such Person, (c) any other constitutive,
organizational or governing document of such Person, whether or not equivalent, and (d) any other
document setting forth the manner of election or duties of the directors, officers or managing
members of such Person or the designation, amount or relative rights, limitations and preferences
of any Stock of such Person.

“Contractual Obligation” means, with respect to any Person, any provision of any
Security issued by such Person or of any document or undertaking (other than a Loan Document) to
which such Person is a party or by which it or any of its property is bound or to which any of its
property is subject.

“Credit Exposure”, of any Lender at any time, means the outstanding principal amount
of all Loans owing to such Lender, plus any participations in Swing Loans purchased by such Lender
hereunder.

“Default” means any Event of Default and any event that, with the passing of time or
the giving of notice or both would become an Event of Default.

“Delayed Payment Collateral” has the meaning specified in Section 2.10(a).

 

5

 

“Delayed Payment Privilege” has the meaning specified in Section 2.10(a).

“Delayed Payment Privilege Collateral” has the meaning specified in Section
2.10(c).

“Delivery Schedule” has the meaning specified in Section 2.10(e).

“Disclosure Documents” means, collectively, (a) all confidential information memoranda
and related materials prepared in connection with the syndication of the credit facilities and (b)
all other documents filed by any Group Member with the United States Securities and Exchange
Commission.

“Dollars” and the sign “$” each mean the lawful money of the United States of
America.

“E-Fax” means any system used to receive or transmit faxes electronically.

“Electronic Transmission” means each document, instruction, authorization, file,
information and any other communication transmitted, posted or otherwise made or communicated by
e-mail or E-Fax, or otherwise to or from an E-System or other equivalent service.

“Entity” has the meaning specified in Section 11.20.

“E-System” means any electronic system, including COMS® and any other Internet or
extranet-based site, whether such electronic system is owned, operated or hosted by the
Administrative Agent, any of its Related Persons or any other Person, providing for access to data
protected by passcodes or other security system.

“Event of Default” has the meaning specified in Section 9.1.

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight federal
funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as
determined by the Administrative Agent in its sole discretion.

“Federal Reserve Board” means the Board of Governors of the United States Federal
Reserve System and any successor thereto.

“Financial Statement” means each financial statement delivered pursuant to Section
4.4 or 6.1.

“Fiscal Quarter” means each 3 fiscal month period ending on March 31, June 30,
September 30 or December 31.

“Fiscal Year” means the twelve-month period ending on December 31.

“GAAP” means generally accepted accounting principles in the United States of America,
as in effect from time to time, set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants, in the statements and
pronouncements of the Financial Accounting Standards Board and in such other statements by such
other entity as may be in general use by significant segments of the accounting profession that are
applicable to the circumstances as of the date of determination. Subject to Section 1.3,
all references to “GAAP” shall be to GAAP applied consistently with the principles used in
the preparation of the Financial Statements described in Section 4.4(a).

 

6

 

“GE Capital” means General Electric Capital Corporation.

“Governmental Authority” means any nation, sovereign or government, any state or other
political subdivision thereof, any agency, authority or instrumentality thereof and any entity or
authority exercising executive, legislative, taxing, judicial, regulatory or administrative
functions of or pertaining to government, including any central bank, stock exchange, regulatory
body, arbitrator, public sector entity, supra-national entity (including the European Union and the
European Central Bank) and any self-regulatory organization (including the National Association of
Insurance Commissioners).

“Group Members” means, collectively, Holdings and its Subsidiaries.

“Group Members’ Accountants” means Ernst & Young LLP or other nationally-recognized
independent registered certified public accountants acceptable to the Administrative Agent.

“Guarantor” means each Person that guarantees the Obligations.

“Guarantor Payment” has the meaning specified in Section 12.7.

“Guaranteed Obligations” has the meaning specified in Section 12.1.

“Guaranty Obligation” means, as applied to any Person, any direct or indirect
liability, contingent or otherwise, of such Person for any Indebtedness, lease, dividend or other
obligation (the “primary obligation”) of another Person (the “primary obligor”), if
the purpose or intent of such Person in incurring such liability, or the economic effect thereof,
is to guarantee such primary obligation or provide support, assurance or comfort to the holder of
such primary obligation or to protect or indemnify such holder against loss with respect to such
primary obligation, including (a) the direct or indirect guaranty, endorsement (other than for
collection or deposit in the ordinary course of business), co-making, discounting with recourse or
sale with recourse by such Person of any primary obligation, (b) the incurrence of reimbursement
obligations with respect to any letter of credit or bank guarantee in support of any primary
obligation, (c) the existence of any Lien, or any right, contingent or otherwise, to receive a
Lien, on the property of such Person securing any part of any primary obligation and (d) any
liability of such Person for a primary obligation through any Contractual Obligation (contingent or
otherwise) or other arrangement (i) to purchase, repurchase or otherwise acquire such primary
obligation or any security therefor or to provide funds for the payment or discharge of such
primary obligation (whether in the form of a loan, advance, stock purchase, capital contribution or
otherwise), (ii) to maintain the solvency, working capital, equity capital or any balance sheet
item, level of income or cash flow, liquidity or financial condition of any primary obligor, (iii)
to make take-or-pay or similar payments, if required, regardless of non-performance by any other
party to any Contractual Obligation, (iv) to purchase, sell or lease (as lessor or lessee) any
property, or to purchase or sell services, primarily for the purpose of enabling the primary
obligor to satisfy such primary obligation or to protect the holder of such primary obligation against loss or (v) to
supply funds to or in any other manner invest in, such primary obligor (including to pay for
property or services irrespective of whether such property is received or such services are
rendered); provided, however, that “Guaranty Obligations” shall not include
(x) endorsements for collection or deposit in the ordinary course of business, (y) product
warranties given in the ordinary course of business and (z) guarantees by a Borrower of liabilities
and other obligations of any other Borrower. The outstanding amount of any Guaranty Obligation
shall equal the outstanding amount of the primary obligation so guaranteed or otherwise supported
or, if lower, the stated maximum amount for which such Person may be liable under such Guaranty
Obligation.

 

7

 

“Holdings” has the meaning specified in preamble of this Agreement.

“Immaterial Subsidiaries” means Subsidiaries of Holdings that do not own or operate
and are not otherwise engaged in truck dealerships. As of the Closing Date, the Immaterial
Subsidiaries are set forth on Schedule 1.1.

“Indebtedness” of any Person means, without duplication, any of the following, whether
or not matured: (a) all indebtedness for borrowed money, (b) all obligations evidenced by notes,
bonds, debentures or similar instruments, (c) all reimbursement and all obligations with respect to
(i) letters of credit, bank guarantees or bankers’ acceptances or (ii) surety, customs, reclamation
or performance bonds (in each case not related to judgments or litigation) other than those entered
into in the ordinary course of business, (d) all obligations to pay the deferred purchase price of
property or services (other than trade payables incurred in the ordinary course of business), (e)
all obligations created or arising under any conditional sale or other title retention agreement,
regardless of whether the rights and remedies of the seller or lender under such agreement in the
event of default are limited to repossession or sale of such property, (f) all Capitalized Lease
Obligations, (g) all obligations, whether or not contingent, to purchase, redeem, retire, defease
or otherwise acquire for value any of its own Stock or Stock Equivalents (or any Stock or Stock
Equivalent of a direct or indirect parent entity thereof) prior to the date that is 180 days after
the Scheduled Termination Date, valued at, in the case of redeemable preferred Stock, the greater
of the voluntary liquidation preference and the involuntary liquidation preference of such Stock
plus accrued and unpaid dividends, (h) all payments that would be required to be made in respect of
any swap agreement in the event of a termination (including an early termination) on the date of
determination and (i) all Guaranty Obligations for obligations of any other Person constituting
Indebtedness of such other Person; provided, however, that the items in each of
clauses (a) through (i) above shall constitute “Indebtedness” of such
Person solely to the extent, directly or indirectly, (x) such Person is liable for any part of any
such item or (y) any such item is secured by a Lien on such Person’s property.

“Indemnified Matter” has the meaning specified in Section 11.4.

“Indemnitee” has the meaning specified in Section 11.4.

“Inventory” means all present and future vehicle inventory, including trailers and
glider kits, of the Borrowers.

“IRS” means the Internal Revenue Service of the United States and any successor
thereto.

“Lender” means, collectively, any financial institution or other Person that (a) is
listed on the signature pages hereof as a “Lender” or (b) from time to time becomes a party
hereto by execution of an Assignment, together with its successors.

“Lender Interest Letter” means each letter agreement entered into from time to time
between the Administrative Agent and each Lender (other than GE Capital), setting forth the
Applicable Lender Margin for such Lender.

 

8

 

“Liabilities” means all claims, actions, suits, judgments, damages, losses, liability,
obligations, responsibilities, fines, penalties, sanctions, costs, fees, taxes, commissions,
charges, disbursements and expenses, in each case of any kind or nature (including interest accrued
thereon or as a result thereto and fees, charges and disbursements of financial, legal and other
advisors and consultants), whether joint or several, whether or not indirect, contingent,
consequential, actual, punitive, treble or otherwise.

“LIBOR Rate” means, for each calendar month, (i) the rate of interest quoted in
The Wall Street Journal, Money Rates Section as the “Libor, 3 month” rate on the last
business day of the immediately preceding calendar month, or (ii) if the interest rate specified in
clause (i) is not published or available, the offered rate per annum for deposits of
Dollars for a period of three months that appears on Reuters Screen LIBOR 01 Page as of 11:00 a.m.
(London, England time) two Business Days prior to the first day in such calendar month, or (iii) if
the interest rate specified in clauses (i) and (ii) is not published or available,
the rate of interest per annum, as determined by the Administrative Agent at which deposits of
Dollars in immediately available funds are offered at 11:00 a.m. (London, England time) two
Business Days prior to the first day in such interest period by major financial institutions
reasonably satisfactory to the Administrative Agent in the London interbank market for such
interest period for the applicable principal amount on such date of determination.

“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment, charge,
deposit arrangement, encumbrance, easement, lien (statutory or other), security interest or other
security arrangement and any other preference, priority or preferential arrangement of any kind or
nature whatsoever, including any conditional sale contract or other title retention agreement, the
interest of a lessor under a Capital Lease and any synthetic or other financing lease having
substantially the same economic effect as any of the foregoing.

“Loan” means any loan made or deemed made by any Lender or Swingline Lender hereunder,
including, without limitation, Revolving Loans, Swing Loans and Working Capital Loans.

“Loan Documents” means, collectively, this Agreement and, when executed, each document
executed by a Loan Party and delivered to the Administrative Agent or any Lender in connection with
or pursuant to any of the foregoing or the Obligations, together with any modification of any term,
or any waiver with respect to, any of the foregoing.

“Loan Party” means each Borrower and each Guarantor.

“Material Adverse Effect” means an effect that results in or causes, or could
reasonably be expected to result in or cause, a material adverse change in any of (a) the condition
(financial or otherwise), business, performance, operations or property of the Group Members, taken
as a whole, (b) the ability of any Loan Party to perform its obligations under any Loan Document
and (c) the validity or enforceability of any Loan Document or the rights and remedies of the
Administrative Agent, the Lenders and the other Secured Parties under any Loan Document.

“Maximum Lawful Rate” has the meaning specified in Section 2.9.

“Minimum Consolidated Net Worth” means, (i) with respect to any Fiscal Quarter ending
on or prior to September 30, 2010, $375,000,000 and (ii) with respect to any Fiscal Quarter ending
after September 30, 2010, the sum of (A) the Minimum Consolidated Net Worth for the immediately
preceding Fiscal Quarter plus (B) the greater of (1) 50% of Consolidated Net Income for
Holdings and its Subsidiaries with respect to the current Fiscal Quarter and (2) zero. For
example, if the Consolidated Net Income for Holdings and its Subsidiaries for the Fiscal Quarter
ending December 31, 2010 is $20,000,000, the Minimum Consolidated Net Worth for the Fiscal Quarter
ending December 31, 2010 will be $385,000,000 (i.e., the Minimum Consolidated Net Worth for
the Fiscal Quarter ending September 30, 2010 plus 50% of $20,000,000).

 

9

 

“Minimum Consolidated Tangible Net Worth” means, (i) with respect to any Fiscal
Quarter ending on or prior to December 31, 2011, $225,000,000 and (ii) with respect to any Fiscal
Quarter ending after December 31, 2011, the sum of (A) the Minimum Consolidated Tangible Net Worth
for the immediately preceding Fiscal Quarter plus (B) the greater of (1) 50% of
Consolidated Net Income for Holdings and its Subsidiaries with respect to the current Fiscal
Quarter and (2) zero. For example, if the Consolidated Net Income for Holdings and its
Subsidiaries for the Fiscal Quarter ending March 31, 2012 is $20,000,000, the Minimum Consolidated
Tangible Net Worth for the Fiscal Quarter ending March 31, 2012 will be $235,000,000 (i.e.,
the Minimum Consolidated Tangible Net Worth for the Fiscal Quarter ending December 31, 2011 plus
50% of $20,000,000).

“Moody’s” means Moody’s Investors Service, Inc.

“Net Equipment Loans” means, at any time, (i) (A) the aggregate principal amount of
Revolving Loans made by the Lenders pursuant to Section 2.1(a) plus (B) the
aggregate principal amount of Swing Loans made by the Swingline Lender pursuant to Section
2.1(b), minus (ii) all repayments of principal of the Revolving Loans and Swing Loans
made by the Borrowers pursuant to this Agreement, including without limitation all voluntary
prepayments of Revolving Loans and Swing Loans pursuant to Section 2.7.

“New Equipment Curtailment Payment” has the meaning specified in Section
2.6(b).

“New Equipment Loan” means a Loan to purchase new Inventory not previously used or
sold at retail.

“New Equipment Loan Sublimit” means $450,000,000 minus the amount of any Used
Equipment Loans.

“Non-Funding Lender” means any Lender that has (a) failed to fund any payments
required to be made by it under the Loan Documents within two Business Days after any such payment
is due (excluding expense and similar reimbursements that are subject to good faith disputes), (b)
given written notice (and the Administrative Agent has not received a revocation in writing), to
the Borrower Representative, the Administrative Agent or any Lender or has otherwise publicly
announced (and the Administrative Agent has not received notice of a public retraction) that such
Lender believes it will fail to fund payments or purchases of participations
required to be funded by it under the Loan Documents or one or more other syndicated credit
facilities, (c) failed to fund, and not cured, loans, participations, advances, or reimbursement
obligations under one or more other syndicated credit facilities, unless subject to a good faith
dispute, or (d) any Lender that has (i) become subject to a voluntary or involuntary case under the
Bankruptcy Code or any similar bankruptcy laws, (ii) a custodian, conservator, receiver or similar
official appointed for it or any substantial part of such Person’s assets, or (iii) made a general
assignment for the benefit of creditors, been liquidated, or otherwise been adjudicated as, or
determined by any Governmental Authority having regulatory authority over such Person or its assets
to be, insolvent or bankrupt, and for clause (d), and the Administrative Agent has
determined that such Lender is reasonably likely to fail to fund any payments required to be made
by it under the Loan Documents.

 

10

 

“Obligations” means, with respect to any Loan Party, all amounts, obligations,
liabilities, covenants and duties of every type and description owing by such Loan Party to the
Administrative Agent, any Lender, any other Indemnitee, or any participant arising out of, under,
or in connection with, any Loan Document, whether direct or indirect (regardless of whether
acquired by assignment), absolute or contingent, due or to become due, whether liquidated or not,
now existing or hereafter arising and however acquired, and whether or not evidenced by any
instrument or for the payment of money, including, without duplication, (a) if such Loan Party is a
Borrower all Loans, (b) all interest, whether or not accruing after the filing of any petition in
bankruptcy or after the commencement of any insolvency, reorganization or similar proceeding, and
whether or not a claim for post-filing or post-petition interest is allowed in any such proceeding,
and (c) all other fees, expenses (including fees, charges and disbursement of counsel), interest,
commissions, charges, costs, disbursements, indemnities and reimbursement of amounts paid and other
sums chargeable to such Loan Party under any Loan Document.

“Other Lenders” has the meaning specified in Section 2.4.

“Other Taxes” has the meaning specified in Section 2.17(c).

“Permit” means, with respect to any Person, any permit, approval, authorization,
license, registration, certificate, concession, grant, franchise, variance or permission from, and
any other Contractual Obligations with, any Governmental Authority, in each case whether or not
having the force of law and applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.

“Person” means any individual, partnership, corporation (including a business trust
and a public benefit corporation), joint stock company, estate, association, firm, enterprise,
trust, limited liability company, unincorporated association, joint venture and any other entity or
Governmental Authority.

“Prepayment Processing Fee” has the meaning specified in Section 2.5(c).

“Pro Forma Basis” means, with respect to any determination for any period and any Pro
Forma Transaction, that such determination shall be made by giving pro forma effect to each such
Pro Forma Transaction, as if each such Pro Forma Transaction had been consummated on the first day
of such period, based on historical results accounted for in accordance with GAAP and, to the
extent applicable, reasonable assumptions that are specified in detail in the relevant Compliance
Certificate, Financial Statement or other document provided to the Administrative Agent or any
Lender in connection herewith in accordance with Regulation S-X of the Securities Act of 1933.

“Pro Forma Transaction” means any transaction consummated as part of any acquisition
of all or substantially all of the assets or stock of any Person by the Borrower Representative or
any Subsidiary of the Borrower Representative, together with each other transaction relating
thereto and consummated in connection therewith, including any incurrence or repayment of
Indebtedness.

 

11

 

“Pro Rata Share” means, with respect to any Lender at any time, the percentage
obtained by dividing (a) the Commitment of such Lender at such time or, if the Commitments have
terminated, the Revolving Loans and participations in Swing Loans held by such Lender at such time
by (b) the Commitments of all Lenders at such time or, if the Commitments have terminated, all
Loans outstanding at such time; provided, however, that, if there are no
Commitments and no Loans outstanding, such Lender’s Pro Rata Share shall be determined based on the
Pro Rata Share most recently in effect, after giving effect to any subsequent assignment and any
subsequent non-pro rata payments of any Lender pursuant to Section 2.18.

“Register” has the meaning specified in Section 2.14(b).

“Related Person” means, with respect to any Person, each Affiliate of such Person and
each director, officer, employee, agent, trustee, representative, attorney, accountant and each
insurance, environmental, legal, financial and other advisor and other consultants and agents of or
to such Person or any of its Affiliates, together with, if such Person is the Administrative Agent,
each other Person or individual designated, nominated or otherwise mandated by or helping the
Administrative Agent pursuant to and in accordance with Section 10.4 or any comparable
provision of any Loan Document.

“Required Lenders” means, at any time, Lenders having at such time in excess of 75% of
the sum of the aggregate Commitments (or, if such Commitments are terminated, the sum of the
outstanding Loans) then in effect, ignoring, in such calculation, the amounts held by any
Non-Funding Lender; provided, that, for purposes of determining Required Lenders hereunder,
the principal amount of Swing Loans outstanding shall be deemed to be allocated among the Lenders
based on their respective Pro Rata Shares; provided, further, that, so long as
there is more than one Lender party hereto, Required Lenders must include at least two Lenders,
considering any Lender and its Affiliates as a single Lender.

“Requirements of Law” means, with respect to any Person, collectively, the common law
and all federal, state, local, foreign, multinational or international laws, statutes, codes,
treaties, standards, rules and regulations, guidelines, ordinances, orders, judgments, writs,
injunctions, decrees (including administrative or judicial precedents or authorities) and the
interpretation or administration thereof by, and other determinations, directives, requirements or
requests of, any Governmental Authority, in each case whether or not having the force of law and
that are applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

“Responsible Officer” means, with respect to any Person, any of the president, chief
executive officer, treasurer, assistant treasurer, controller, managing member or general partner
of such Person but, in any event, with respect to financial matters, any such officer that is
responsible for preparing the Financial Statements delivered hereunder and, with respect to the
documents delivered pursuant to Section 6.1(e) and documents delivered on the Closing Date,
the secretary or assistant secretary of such Person or any other officer responsible for
maintaining the corporate and similar records of such Person.

“Restricted Payment” means any dividend, return of capital, or distribution in cash or
Stock or Stock Equivalent of Holdings or any of its Subsidiaries, in each case now or hereafter
outstanding, including with respect to a claim for rescission of a Sale of such Stock or Stock
Equivalent.

 

12

 

“Revolving Loans” has the meaning specified in Section 2.1(a).

“S&P” means Standard & Poor’s Rating Services.

“Sale and Leaseback Transaction” means, with respect to any Person (the
“obligor”), any Contractual Obligation or other arrangement with any other Person (the
“counterparty”) consisting of a lease by such obligor of any property that, directly or
indirectly, has been or is to be Sold by the obligor to such counterparty or to any other Person to
whom funds have been advanced by such counterparty based on a Lien on, or an assignment of, such
property or any obligations of such obligor under such lease.

“Scheduled Termination Date” means December 31, 2013.

“Secured Parties” means the Lenders, the Administrative Agent and any other holder of
any Obligation of any Loan Party.

“Security” means all Stock, Stock Equivalents, voting trust certificates, bonds,
debentures, instruments and other evidence of Indebtedness, whether or not secured, convertible or
subordinated, all certificates of interest, share or participation in, all certificates for the
acquisition of, and all warrants, options and other rights to acquire, any Security.

“Sell” means, with respect to any property, to sell, convey, transfer, assign,
license, lease or otherwise dispose of, any interest therein or to permit any Person to acquire any
such interest, including, in each case, through a Sale and Leaseback Transaction or through a sale,
factoring at maturity, collection of or other disposal, with or without recourse, of any notes or
accounts receivable. Conjugated forms thereof and the noun “Sale” have correlative
meanings.

“Settlement Date” means the 10th and 22nd day of each calendar
month, or if such day is not a Business Day, the immediately following Business Day.

“Solvent” means, with respect to any Person as of any date of determination, that, as
of such date, (a) the value of the assets of such Person (both at fair value and present fair
saleable value) is greater than the total amount of liabilities (including contingent and
unliquidated liabilities) of such Person, (b) such Person is able to pay all liabilities of such
Person as such liabilities mature and (c) such Person does not have unreasonably small capital. In
computing the amount of contingent or unliquidated liabilities at any time, such liabilities shall
be computed at the amount that, in light of all the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or matured liability.

“Stock” means all shares of capital stock (whether denominated as common stock or
preferred stock), equity interests, beneficial, partnership or membership interests, joint venture
interests, participations or other ownership or profit interests in or equivalents (regardless of
how designated) of or in a Person (other than an individual), whether voting or non-voting.

“Stock Equivalents” means all securities convertible into or exchangeable for Stock or
any other Stock Equivalent and all warrants, options or other rights to purchase, subscribe for or
otherwise acquire any Stock or any other Stock Equivalent, whether or not presently convertible,
exchangeable or exercisable.

 

13

 

“Subsidiary” means, with respect to any Person, any corporation, partnership, joint
venture, limited liability company, association or other entity, the management of which is,
directly or indirectly, controlled by, or of which an aggregate of more than 50% of the outstanding
Voting Stock is, at the time, owned or controlled directly or indirectly by, such Person or one or
more Subsidiaries of such Person.

“Substitute Lender” has the meaning specified in Section 2.18(a).

“Swingline Lender” means GE Capital and its successors and assigns.

“Swing Loans” has the meaning specified in Section 2.1(b).

“Tax Affiliate” means, (a) Holdings, the Borrowers and their Subsidiaries and (b) any
Affiliate of Holdings with which the Holdings files or is eligible to file consolidated, combined
or unitary tax returns.

“Tax Return” has the meaning specified in Section 4.8.

“Taxes” has the meaning specified in Section 2.17(a).

“Total Equipment Loans” means, at any time, (i) (A) the aggregate principal amount of
Revolving Loans made by the Lenders pursuant to Section 2.1(a) plus (B) the
aggregate principal amount of Swing Loans made by the Swingline Lender pursuant to Section
2.1(b), minus (ii) all repayments of principal of the Revolving Loans and Swing Loans
made by the Borrowers pursuant to this Agreement, including any payments deemed to have been made
to Total Equipment Loans pursuant to Section 2.13(e), but excluding any voluntary
prepayments of principal pursuant to Section 2.7.

“Total Loans” means, at any time, (i) the Net Equipment Loans, plus (ii) the
aggregate outstanding Working Capital Loans at such time.

“UCC” means the Uniform Commercial Code of any applicable jurisdiction and, if the
applicable jurisdiction shall not have any Uniform Commercial Code, the Uniform Commercial Code as
in effect in the State of New York.

“United States” means the United States of America.

“Used Equipment Curtailment Payment” has the meaning specified in Section
2.6(c).

“Used Equipment Loan” means a Loan to purchase Inventory previously used or sold at
retail.

“Used Equipment Loan Sublimit” means $100,000,000.

“Voting Stock” means Stock of any Person having ordinary power to vote in the election
of members of the board of directors, managers, trustees or other controlling Persons, of such
Person (irrespective of whether, at the time, Stock of any other class or classes of such entity
shall have or might have voting power by reason of the occurrence of any contingency).

“Wholesale Security Agreement” has the meaning specified in the Section 11.8.

“Working Capital Lender” means GE Capital and its successors and assigns.

 

14

 

“Working Capital Loan” has the meaning specified in Section 2.1(c).

“Working Capital Subfacility Amount” means, at any time, the amount by which the Total
Equipment Loans exceeds the Net Equipment Loans.

Section 1.2 UCC Terms. The following terms have the meanings given to them in
the applicable UCC: “commodity account”, “commodity contract”, “commodity intermediary”, “deposit
account”, “entitlement holder”, “entitlement order”, “equipment”, “financial asset”, “general
intangible”, “goods”, “instruments”, “inventory”, “securities account”, “securities intermediary”
and “security entitlement”.

Section 1.3 Accounting Terms and Principles. (a) GAAP. All
accounting determinations required to be made pursuant hereto shall, unless expressly otherwise
provided herein, be made in accordance with GAAP. No change in the accounting principles used in
the preparation of any Financial Statement hereafter adopted by Holdings shall be given effect if
such change would affect a calculation that measures compliance with any provision of Article
5 or Article 8 unless the Borrowers, the Administrative Agent and the Required Lenders
agree to modify such provisions to reflect such changes in GAAP and, unless such provisions are
modified, all Financial Statements, Compliance Certificates and similar documents provided
hereunder shall be provided together with a reconciliation between the calculations and amounts set
forth therein before and after giving effect to such change in GAAP. Notwithstanding any other
provision contained herein, all terms of an accounting or financial nature used herein shall be
construed, and all computations of amounts and ratios referred to in Article 5 and
Article 8 shall be made, without giving effect to any election under Accounting Standards
Codification 825-10 (or any other Financial Accounting Standard having a similar result or effect)
to value any Indebtedness or other liabilities of any Loan Party or any Subsidiary of any Loan
Party at “fair value.”

(b) Pro Forma. All components of financial calculations made to determine compliance
with Article 5 shall be adjusted on a Pro Forma Basis to include or exclude, as the case
may be, without duplication, such components of such calculations attributable to any Pro Forma
Transaction consummated after the first day of the applicable period of determination and prior to
the end of such period, as determined in good faith by the Borrowers based on assumptions expressed
therein and that were reasonable based on the information available to the Borrowers at the time of
preparation of the Compliance Certificate setting forth such calculations.

Section 1.4 Interpretation. (a) Certain Terms. Except as set forth
in any Loan Document, all accounting terms not specifically defined herein shall be construed in
accordance with GAAP (except for the term “property”, which shall be interpreted as broadly
as possible, including, in any case, cash, Securities, other
assets, rights under Contractual Obligations and Permits and any right or interest in any
property). The terms “herein”, “hereof” and similar terms refer to this Agreement
as a whole. In the computation of periods of time from a specified date to a later specified date
in any Loan Document, the terms “from” means “from and including” and the words
“to” and “until” each mean “to but excluding” and the word “through” means
“to and including.” In any other case, the term “including” when used in any Loan Document
means “including without limitation.” The term “documents” means all writings, however
evidenced and whether in physical or electronic form, including all documents, instruments,
agreements, notices, demands, certificates, forms, financial statements, opinions and reports. The
term “incur” means incur, create, make, issue, assume or otherwise become directly or
indirectly liable in respect of or responsible for, in each case whether directly or indirectly,
and the terms “incurrence” and “incurred” and similar derivatives shall have correlative meanings.

 

15

 

(b) Certain References. Unless otherwise expressly indicated, references (i) in this
Agreement to an Exhibit, Schedule, Article, Section or clause refer to the appropriate Exhibit or
Schedule to, or Article, Section or clause in, this Agreement and (ii) in any Loan Document, to (A)
any agreement shall include, without limitation, all exhibits, schedules, appendixes and annexes to
such agreement and, unless the prior consent of any Secured Party required therefor is not
obtained, any modification to any term of such agreement, (B) any statute shall be to such statute
as modified from time to time and to any successor legislation thereto, in each case as in effect
at the time any such reference is operative and (C) any time of day shall be a reference to New
York time. Titles of articles, sections, clauses, exhibits, schedules and annexes contained in any
Loan Document are without substantive meaning or content of any kind whatsoever and are not a part
of the agreement between the parties hereto. Unless otherwise expressly indicated, the meaning of
any term defined (including by reference) in any Loan Document shall be equally applicable to both
the singular and plural forms of such term.

ARTICLE 2

REVOLVING CREDIT FACILITY

Section 2.1 The Revolving Credit Facility.

(a) On the terms and subject to the conditions contained in this Agreement, each Lender
severally, but not jointly, agrees to make loans in Dollars (each a “Revolving Loan”) to
the Borrowers from time to time on any Business Day during the period from the date hereof until
the Commitment Termination Date for the purpose of acquiring Inventory from the manufacturers and
distributors of such Inventory or to refinance Swing Loans as contemplated in this Agreement;
provided, however, that at no time shall any Lender be obligated to make a
Revolving Loan if after giving effect thereto, (i) the Credit Exposure of such Lender would exceed
such Lender’s Commitment, (ii) either the Total Loans or the Total Equipment Loans would exceed the
aggregate Commitments, (iii) the aggregate New Equipment Loans would exceed the New Equipment Loan
Sublimit, (iv) the aggregate Used Equipment Loans would exceed the Used Equipment Loan Sublimit or
(v) a Default shall exist; provided, further, that at no time shall any Lender be
required to make any Revolving Loan unless the Administrative Agent, in its sole discretion, has
approved any request for Borrowing submitted by the Borrower Representative. Subject to the
foregoing, the obligation of each Lender to make its Revolving Loan shall be absolute,
unconditional and irrevocable and shall be performed strictly in accordance with the terms of this
Agreement under any and all circumstances whatsoever,
including (A) the existence of any setoff, claim, abatement, recoupment, defense or other
right that such Lender, any Affiliate thereof or any other Person may have against the
Administrative Agent, any Borrower or any other Person, and (B) any adverse change in the condition
(financial or otherwise) of any Loan Party. Subject to the terms and conditions of this Agreement
and within the limits set forth in this clause (a), amounts of Loans repaid may be
reborrowed under this Section 2.1.

 

16

 

(b) At the election of the Swingline Lender, the Swingline Lender may, in its sole discretion,
make loans in Dollars (each a “Swing Loan”) available to the Borrowers from time to time on
any Business Day during the period from the date hereof until the Commitment Termination Date for
the purpose of acquiring Inventory from the manufacturers and distributors of such Inventory;
provided, however, that the Swingline Lender may not make any Swing Loan to the
extent that after giving effect to such Swing Loan, (i) either the Total Loans or the Total
Equipment Loans would exceed the aggregate Commitments, (ii) the aggregate New Equipment Loans
would exceed the New Equipment Loan Sublimit, or (iii) the aggregate Used Equipment Loans would
exceed the Used Equipment Loan Sublimit; provided, further, that at no time shall
the Swingline Lender make any Swing Loan unless the Administrative Agent, in its sole discretion,
has approved any request for Borrowing submitted by the Borrower Representative. Subject to the
terms and conditions of this Agreement and within the limits set forth in this clause (b),
amounts of Swing Loans repaid may be reborrowed under this clause (b). Notwithstanding the
foregoing, the Swingline Lender shall not make any Swing Loan if at least two (2) Business Days
prior to such date, the Swing Loan Lender shall have received written notice from any Lender or the
Administrative Agent that Swing Loans should be suspended based on the occurrence and continuance
of a Default or Event of Default and stating that such notice is a “notice of default”; provided,
however that the Swingline Lender may make Swing Loans from the earlier of (i) the date that
Lenders having at such time in excess of 80% of the sum of the aggregate Commitments (or, if such
Commitments are terminated, the sum of the outstanding Loans) then in effect, ignoring, in such
calculation, the amounts held by any Non-Funding Lender, authorize the Swingline Lender to continue
to make Swing Loans; provided, that, for purposes of determining outstanding Loans for the
calculations in this sentence, the principal amount of Swing Loans outstanding shall be deemed to
be allocated among the Lenders based on their respective Pro Rata Shares; provided,
further, that, so long as there is more than one Lender party hereto, the authorization of
at least two Lenders, considering any Lender and its affiliates as a single Lender, shall be
required to authorize the Swingline Lender to continue funding Swing Loans, and (ii) the date that
such Default or Event of Default is waived in accordance with the terms hereof.

(c) So long as no Default or Event of Default has occurred and is continuing, the Working
Capital Lenders will make loans in Dollars (each a “Working Capital Loans”) available to
the Borrowers from time to time on any Business Day during the period from the date hereof until
the Commitment Termination Date for working capital and other general corporate purposes;
provided, however, that the Working Capital Lenders may not make any Working
Capital Loan to the extent that, after giving effect to such Working Capital Loan, (x) the
aggregate outstanding Working Capital Loans would exceed the Working Capital Subfacility Amount or
(y) the Total Loans would exceed the aggregate Commitments. Subject to the terms and conditions of
this Agreement and within the limits set forth in this clause (c), amounts of Working
Capital Loans repaid may be reborrowed under this clause (c).

Section 2.2 Borrowing Procedures. (a) Request for Equipment Loans.
Except as the Administrative Agent may permit through its E-Systems, each request for a Borrowing
of New Equipment Loans or Used Equipment Loans shall be made in writing by the Borrower
Representative to the Administrative Agent not later than 10:00 a.m. on the first Business Day
prior to the proposed Borrowing (except with respect to a Borrowing of Swing Loans for which notice
shall be made no later than 10:00 a.m. on the same Business Day) in substantially the form of
Exhibit B-1 (a “Request for Equipment Borrowing”), duly completed, with such
Request for Equipment Borrowing. Each Request for Equipment Borrowing with respect to a New
Equipment Loan shall attach copies of the invoices to be paid with the proceeds of such Loan unless
such invoices have previously been electronically submitted to the Administrative Agent. Each
Request for Equipment Borrowing with respect to a Used Equipment Loan shall describe the used

 

17

 

equipment to be purchased and the purchase price
therefor, and shall attach copies of the
certificates of title of the Inventory to be purchased with the proceeds of such Loan. The
Administrative Agent is authorized to pay on behalf of any Borrower any invoices, or electronic
remittance advises, presented to the Administrative Agent from time to time that evidences the sale
by a manufacturer or distributor of one or more items of Inventory. The Administrative Agent
shall promptly determine in its sole discretion whether or not any Loans will be made in response
to such Request for Equipment Borrowing, and will provide the Borrower prompt notice of such
determination. If the Administrative Agent approves such Request for Equipment Borrowing, it shall
determine in its sole discretion whether such Request for Equipment Borrowing will be funded with
Revolving Loans (in which case it shall promptly notify the Lenders of the details thereof) or with
Swing Loans (in which case it shall promptly notify the Swingline Lender of the details thereof).

(b) Notice to Swingline Lender. Upon receipt of notice from the Administrative Agent
to fund a Request for Equipment Borrowing with Swing Loans subject to paragraph (a) above, and
subject to the terms of this Agreement, the Swingline Lender will make a Swing Loan available to
the Borrower by making the proceeds thereof available to the applicable Borrower, to Administrative
Agent (for further application to the applicable Borrower) or to directly pay invoices or
electronic remittance advises that are the subject of such Request for Equipment Borrowing.

(c) Notice to Each Lender. Upon receipt of notice from the Administrative Agent to
fund a Request for Equipment Borrowing with Revolving Loans subject to paragraph (a) above, and
subject to the terms of this Agreement, each Lender shall, before 10:00 a.m. on the date of the
proposed Borrowing, make available to the Administrative Agent at its address referred to in
Section 11.11, such Lender’s Pro Rata Share of such proposed Borrowing (adjusted in
accordance with Section 2.1(a)), and in turn, the Administrative Agent shall promptly make
such funds available to the Borrower or to directly pay invoices or electronic remittance advises
that are the subject of such Request for Equipment Borrowing.

(d) Request for Working Capital Loans. Each request for a Borrowing of Working
Capital Loans shall be made in writing by the Borrower Representative to the Administrative Agent
not later than 11:00 a.m. on (x) the third Business Day prior to the date of the proposed Borrowing
if the proposed Borrowing is equal to or greater than $20,000,000 and (y) on the first Business Day
prior to the date of the proposed Borrowing if the proposed Borrowing is less than $20,000,000, in
substantially the form of Exhibit B-2 (a “Request for Working Capital Borrowing”),
duly completed. The Administrative Agent shall promptly determine in its sole discretion whether
or not any Loans will be made in response to such
Request for Working Capital Borrowing, and will provide the Borrower and the Working Capital
Lenders with prompt notice of such determination.

(e) Notice to Each Working Capital Lender. Upon receipt of notice from the
Administrative Agent to fund a Request for Working Capital Borrowing with Working Capital Loans
subject to clause (d) above, and subject to the terms of this Agreement, each Working
Capital Lender shall, before 10:00 a.m. on the date of the proposed Borrowing, make available to
the Administrative Agent at its address referred to in Section 11.11, such Working Capital
Lender’s ratable share of such proposed Borrowing based upon its Commitment, and in turn, the
Administrative Agent shall promptly make such funds available to the Borrower.

 

18

 

(f) Non-Funding Lenders.

(i) Non-Funding Lenders Responsibility. Unless the Administrative Agent shall
have received notice from any Lender prior to the date such Lender is required to make any
payment hereunder with respect to any Loan or any participation in any Swing Loan that such
Lender will not make such payment (or any portion thereof) available to the Administrative
Agent, the Administrative Agent may assume that such Lender has made such payment available
to the Administrative Agent on the date such payment is required to be made in accordance
with this Article 2 and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower on such date a corresponding amount;
provided, that nothing herein or in any other Loan Document or any Lender Interest
Letter shall be deemed to require the Administrative Agent to advance funds on behalf of
any Lender. The Borrower agrees to repay to the Administrative Agent on demand such amount
(until repaid by such Lender) with interest thereon for each day from the date such amount
is made available to the Borrower until the date such amount is repaid to the
Administrative Agent, at the interest rate applicable to the Obligation that would have
been created when the Administrative Agent made available such amount to the Borrower had
such Lender made a corresponding payment available; provided, however, that
such payment shall not relieve such Lender of any obligation it may have to the Borrower or
the Swingline Lender. The failure of a Non-Funding Lender to make any Revolving Loan, to
fund any purchase of any participation to be made or funded by it or to make any other
payment required to be made by it under the Loan Documents, in each case on the date
specified therefore, shall not relieve any other Lender of its obligations to make such
loan, fund the purchase of such participation or make any other such payment under any Loan
Document on such date, but neither the Administrative Agent nor, other than as expressly
set forth herein, any Lender shall be responsible for the failure of any Non-Funding Lender
to make a Loan, fund the purchase of a participation or make any other payment required
under any Loan Document.

(ii) Reallocation. If any Lender is a Non-Funding Lender, all or a portion
of such Non-Funding Lender’s reimbursement obligations with respect to Swing Loans shall,
at the Administrative Agent’s election at any time or upon Swingline Lender’s written
request delivered to the Administrative Agent (whether before or after the occurrence of
any Default or Event of Default), be reallocated to and assumed by the Lenders that are
not Non-Funding Lenders in accordance with their Pro Rata Share of the Commitments
(calculated as if the Non-Funding Lender’s Pro Rata Share was reduced to zero and each
other Lender’s Pro Rata Share had been increased proportionately); provided, that
no Lender shall be reallocated any such amounts or be required to fund any amounts that
would cause such Lender’s Credit Exposure to exceed its Commitment, and
any such amounts in excess of such Lender’s availability under its Commitment shall be
reallocated ratably to the Working Capital Lenders to the extent of availability under
their Commitments.

(iii) Voting Rights. Notwithstanding anything herein to the contrary,
including Section 11.1, a Non-Funding Lender shall not have any voting or consent
rights under or with respect to any Loan Document or constitute a “Lender” or a “Revolving
Lender” (or be, or have its Loans or Commitments, included in the determination of
“Required Lenders” or “Lenders directly affected” pursuant to Section 11.1) for any
voting or consent rights under or with respect to any Loan Document; provided, that (A) the
Commitment of a Non-Funding Lender may not be increased, extended or reinstated, (B) the
principal of a Non-Funding Lender’s Loans may not be reduced or forgiven and (C) the
interest rate applicable to Obligations owing to a Non-Funding Lender may not be reduced,
in each case without the consent of such Non-Funding Lender. For the purposes of
determining Required Lenders, the Loans and Commitments held by Non-Funding Lenders shall
be excluded from the total Loans and Commitments outstanding.

 

19

 

Section 2.3 Refinancing Swing Loans.

(a) The Swingline Lender may at any time, and shall at least one Business Day prior to each
Settlement Date, forward a demand to the Administrative Agent (which the Administrative Agent
shall, upon receipt, forward to each Lender) that each Lender pay to the Administrative Agent, for
the account of the Swingline Lender, such Lender’s Pro Rata Share of all of the outstanding Swing
Loans (as such amount may be increased pursuant to Section 2.2(f)(ii)). Each Lender shall
pay such Pro Rata Share of the outstanding Swing Loans to the Administrative Agent for the account
of the Swingline Lender. Upon receipt by the Administrative Agent of such payment (other than
during the continuation of any Event of Default under Section 9.1(e)), such Lender shall be
deemed to have made a Revolving Loan to the Borrower, which, upon receipt of such payment by the
Swingline Lender from the Administrative Agent, the Borrower shall be deemed to have used in whole
to refinance such Swing Loan. In addition, regardless of whether any such demand is made, upon the
occurrence of any Event of Default under Section 9.1(e), each Lender shall be deemed to
have acquired, without recourse or warranty, an undivided interest and participation in each Swing
Loan in an amount equal to such Lender’s Pro Rata Share of such Swing Loan. If any payment made by
any Lender as a result of any such demand is not deemed a Revolving Loan, such payment shall be
deemed a funding by such Lender of such participation. Such participation shall not be otherwise
required to be funded. Upon receipt by the Swingline Lender of any payment from any Lender
pursuant to this clause (a) with respect to any portion of any Swing Loan, the Swingline
Lender shall promptly pay over to such Lender all payments of principal (to the extent received
after such payment by such Lender) and interest (to the extent accrued with respect to periods
after such payment) received by the Swingline Lender with respect to such portion. The Swingline
Lender shall be entitled to offset amounts owed by the Lenders pursuant to this Section
2.3(a) against payments to be made to the Lenders on such Settlement Date. Notwithstanding
anything set forth above, to the extent that the outstanding Revolving Loans are not held ratably
among the Lenders and there is insufficient availability under the Commitments of any Lender to
fund its entire Pro Rata Share of any requested new Revolving Loan, such Lender’s Pro Rata Share of
such requested new Revolving Loan and its interest in any Swing Loan that cannot be funded shall be
reduced to the extent such Revolving Loan or purchase of an interest in Swing Loans will result
in such Lender’s Credit Exposure being equal to (and not in excess of) its Commitment, and the
remaining portion of such Revolving Loan or purchase of an interest in such Swing Loans shall be
funded ratably by the Working Capital Lenders.

(b) Obligation to Fund Absolute. Each Lender’s obligations pursuant to clause
(a) above shall be absolute, unconditional and irrevocable and shall be performed strictly in
accordance with the terms of this Agreement under any and all circumstances whatsoever, including
(A) the existence of any setoff, claim, abatement, recoupment, defense or other right that such
Lender, any Affiliate thereof or any other Person may have against the Swing Loan Lender or any
other Person, and (B) any adverse change in the condition (financial or otherwise) of any Loan
Party.

 

20

 

Section 2.4 Reallocation of Loans. Upon the acceleration of the Loans, the
foreclosure on any Liens securing the Obligations, the exercise of any other contractual remedies
granted under the Loan Documents by the Administrative Agent or any Lenders or the occurrence of an
Event of Default pursuant to Section 9.1(e), to the extent that the outstanding Credit
Exposure of each Lender is not equal to its Pro Rata Share of the Commitments, the Working Capital
Lenders shall be deemed to have purchased ratably from all other Lenders (the “Other
Lenders”), without recourse or warranty, a portion of the Revolving Loans and participations in
Swing Loans held by the Other Lenders (or to the extent not permitted by law, an undivided interest
and participation in the Revolving Loans and participations in Swing Loans held by the Other
Lenders) to the extent necessary such that the Revolving Loans and participations in Swing Loans
are held ratably by all Lenders. Upon receipt by any Other Lender of any payment with respect to
any portion of the Revolving Loans or participations in Swing Loans sold or participated out to the
Working Capital Lenders pursuant to this Section 2.4, such Other Lender shall promptly pay
over to such Working Capital Lender all payments of principal, interest and fees received by the
Other Lender with respect to such portion.

Section 2.5 Reduction and Termination of the Commitments.

(a) Optional. The Borrowers may, upon notice to the Administrative Agent, terminate
the Commitments in their entirety (but not in part); provided, that the Borrowers repays the
outstanding principal balance of all Loans, together with all accrued fees and interest thereon and
the Prepayment Processing Fee payable pursuant to Section 2.5(c).

(b) Mandatory. All outstanding Commitments shall terminate on the earlier of (i) the
Scheduled Termination Date and (ii) the date 120 days after the Administrative Agent elects to
terminate the Commitments by delivering written notice thereof to the Borrower Representative and
the Lenders.

(c) Prepayment Processing Fee. If (i) any Borrower allows another finance source to
finance any Inventory, (ii) the Borrowers terminate the Commitments pursuant to Section
2.5(a) or (iii) the Administrative Agent terminates this Agreement pursuant to Section
9.2 when any Event of Default has occurred and is continuing, the Borrowers shall pay to the
Administrative Agent, for the ratable benefit of the Lenders, an amount (the “Prepayment
Processing Fee”) equal to: (x) if such other financing or notice of termination occurs on or
prior to February 29, 2012, 2.0% of the aggregate Commitments and (y) thereafter, $300,000.
Notwithstanding the foregoing, the Borrowers shall not be required to pay any Prepayment
Processing Fee (i) as a result of any Borrower financing Inventory for a limited period of
time (not to exceed 180 days) with interest-free floor plan financing arranged or offered by the
manufacturer of such Inventory, (ii) to the extent that the Borrower Representative has requested
in writing that the Lenders increase the Commitments, the Lenders declined to do so and the Total
Commitments are substantially fully funded, or (iii) to the extent the Borrower Representative
terminates the Commitments within 90 days after GE Capital ceases to be the Administrative Agent
hereunder.

Section 2.6 Repayment of Loans. (a) The Borrowers jointly and severally
promise to repay the entire outstanding principal amount of all Loans on the earlier of (i) the
Scheduled Termination Date and (ii) the date that is 120 days following the delivery by the
Administrative Agent of a notice terminating the Commitments pursuant to Section 2.5(b).

 

21

 

(b) New Equipment Curtailment Payments. Until each New Equipment Loan have been
repaid in full, the Borrowers jointly and severally promise to make curtailment principal payments
with respect to such New Equipment Loan in amounts equal to the original principal amount of each
New Equipment Loan multiplied by the percentages set forth below (each such payment, a “New
Equipment Curtailment Payment”):

	 	 	 	 	 
	DATE	 	AMOUNT	 
	 
	 	 	 	 
	Date that is 12 months after the date of such New Equipment Loan
	 	 	10	%
	Date that is 18 months after the date of such New Equipment Loan
	 	 	5	%
	Date that is 24 months after the date of such New Equipment Loan
and each monthly anniversary of the date of such New Equipment Loan
thereafter
	 	 	5	%

Each New Equipment Curtailment Payment shall be accrued on the applicable date set forth in
the table above and shall be due and payable on the fifteenth day after the date of the invoice
setting forth such New Equipment Curtailment Payment. Each such New Equipment Curtailment Payment
shall be deemed to reduce the principal amount of the related New Equipment Loan, and shall be
applied to the Obligations in accordance with Section 2.12.

(c) Used Equipment Curtailment Payments. Until each Used Equipment Loan has been
repaid in full, the Borrowers jointly and severally promise to make curtailment principal payments
with respect to such Used Equipment Loan in amounts equal to the original principal amount of such
Used Equipment Loan multiplied by the percentages set forth below (each such payment, a “Used
Equipment Curtailment Payment”):

	 	 	 	 	 
	DATE	 	AMOUNT	 
	 
	 	 	 	 
	Date that is 12 months after the date of such Used Equipment Loan
	 	 	10	%
	Date that is 15 months after the date of such Used Equipment Loan
	 	 	10	%
	Date that is 18 months after the date of such Used Equipment Loan
	 	 	10	%
	Date that is 19 months after the date of such Used Equipment Loan
and each monthly anniversary of the date of such Used Equipment
Loan thereafter
	 	 	5	%

 

22

 

Each Used Equipment Curtailment Payment shall be accrued on the applicable date set forth in
the table above and shall be due and payable on the fifteenth day after the date of the invoice
setting forth such Used Equipment Curtailment Payment. Each such Used Equipment Curtailment
Payment shall be deemed to reduce the principal amount of the related Used Equipment Loan, and
shall be applied to the Obligations in accordance with Section 2.12.

Section 2.7 Optional Prepayments. The Borrowers may prepay the Revolving
Loans and Swing Loans in whole or in part at any time (together with any breakage costs that may be
owing pursuant to Section 2.16(a) after giving effect to such prepayment);
provided, however, that in no event shall the aggregate amount of partial
prepayments of Revolving Loans and Swing Loans exceed 65% of the Total Equipment Loans. The
Borrowers may prepay the Working Capital Loans in whole or in part at any time (together with any
breakage costs that may be owing pursuant to Section 2.16(a) after giving effect to such
prepayment). All such partial prepayments shall be applied to the Obligations in accordance with
Section 2.12, but shall not be deemed to reduce any New Equipment Loans or Used Equipment
Loans.

Section 2.8 Mandatory Repayments. 

(a) Excess Outstandings. On any date on which the aggregate Credit Exposure exceeds
the aggregate Commitments, the Borrowers shall pay to the Administrative Agent an amount equal to
such excess, allocated in accordance with Section 2.12(d). On any date on which the
aggregate Working Capital Loans exceeds the Working Capital Subfacility Amount, the Borrowers shall
pay to the Administrative Agent an amount equal to such excess, to be allocated ratably to
outstanding Working Capital Loans.

(b) Sale, Loss or Destruction of Inventory. Subject to the terms of Section
2.10, if any Inventory is Sold, the Borrowers shall pay or cause to be paid to the
Administrative Agent an amount equal to the principal amount of the New Equipment Loan or Used
Equipment Loan borrowed to purchase such Inventory (less any curtailment payments paid with respect
to such New Equipment Loan or Used Equipment Loan pursuant to Section 2.6), together with
all accrued and unpaid interest thereon, on the earlier of the date a Borrower receives payment for
such item of Inventory or the date possession of such item of Inventory is delivered to the
purchaser thereof, notwithstanding that the relevant purchase order or invoice may list an earlier
date of sale. If any Inventory is lost or destroyed, the Borrowers shall pay or cause to be paid
to the Administrative Agent an amount equal to the principal amount of the Loan or Loans borrowed
to purchase such Inventory, together with all accrued and unpaid interest thereon, no later than
thirty (30) Business Days after any Borrower obtains knowledge or notice of such loss or
destruction.

(c) Loss of Franchises. Upon the termination of any franchise at a particular
location, the Administrative Agent may demand payment within thirty (30) days of all New Equipment
Loans and Used Equipment Loans that relate to such franchise at that location. Upon the
termination by a Governmental Authority of any license to operate as a motor vehicle dealer at a
particular location, the Administrative Agent may demand payment within thirty (30) days of all New
Equipment Loans and Used Equipment Loans related to Inventory at such location. Should the
franchises representing more than twenty-five percent (25.0%) of the Total Equipment Loans to
Borrowers by dollar volume be terminated or the licenses to operate a motor vehicle dealer at
locations representing more than twenty-five percent (25.0%) of the Total Equipment Loans to
Borrowers by dollar volume be terminated, the Administrative Agent may demand payment of all Loans
then outstanding, in which event such Loans, together with all accrued but unpaid interest, shall
be paid by the Borrowers no later than thirty (30) days after such demand.

 

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Section 2.9 Interest; Fees. (a) Interest Rate. Except as
otherwise provided in clause (c) below, all Loans and the outstanding amount of all other
Obligations shall bear interest, in the case of Loans, on the unpaid principal amount thereof from
the date such Loans are made and, in the case of such other Obligations, from the date such other
Obligations are due and payable until, in all cases, paid in full at a rate per annum equal to the
sum of the LIBOR Rate plus 2.95%.

(b) Working Capital Fee. The Borrowers agree to pay to the Administrative Agent, for
the ratable benefit of the Working Capital Lenders, a fee on the actual daily amount by which the
Total Equipment Loans exceeds the sum of (i) the Net Equipment Loans plus (ii) all outstanding
Working Capital Loans, measured from the date hereof through the Scheduled Termination Date at a
rate per annum equal to 0.35%, payable in arrears (x) on the last day of each calendar month and
(y) on the Scheduled Termination Date.

(c) Payments. Interest accrued shall be payable in arrears jointly and severally by
the Borrowers to the Administrative Agent (i) if accrued on the principal amount of any Loan, (A)
at maturity (whether by acceleration or otherwise), and (B) within fifteen days after the date of
any monthly invoice delivered by the Administrative Agent to the Borrower Representative setting
forth the amount of interest due and payable, and (ii) if accrued on any other Obligation, on
demand from any Lender after the time such Obligation is due and payable (whether by acceleration
or otherwise). On the last day of each calendar month, the Administrative Agent shall pay to each
Lender interest on the principal amount of the Loans and other Obligations owed to such Lender for
the period of time for which such interest was paid by the Borrower at a rate per annum equal to
the sum of the LIBOR Rate plus the Applicable Lender Margin for such Lender; provided,
however, that in no event shall the amount due to such Lender exceed such Lender’s pro rata
share (based upon Credit Exposure of such Lender) of the interest received by the Administrative
Agent from the Borrower during such calendar month. The remaining interest shall be paid by the
Administrative Agent to GE Capital for its own account on such Settlement Date.

(d) Delinquency Charges. To the extent any charge or amount is due hereunder, and are
not paid within 10 days of its due date, the Borrowers shall pay to the Administrative Agent for
the benefit of the Lenders a delinquency charge calculated thereon at the rate of 11/2% per month for
the period of delinquency or, at the Administrative Agent’s option, 5% of such past due amounts,
provided that such delinquency charge is not prohibited by law, otherwise at the highest rate the
Borrowers can legally obligate themselves to pay and/or the Administrative Agent or Lenders can
legally collect (provided such delinquency charges may not exceed those set out herein).

(e) Savings Clause. Anything herein to the contrary notwithstanding, the obligations
of the Borrowers hereunder shall be subject to the limitation that payments of interest shall not
be required, for any period for which interest is computed hereunder, to the extent (but only to
the extent) that contracting for or receiving such payment by the respective Lender would be
contrary to the provisions of any law applicable to such Lender limiting the highest rate of
interest which may be lawfully contracted for, charged or received by such Lender, and in such
event the Borrowers shall pay such Lender interest at the highest rate permitted by applicable law
(“Maximum Lawful Rate”); provided, however, that if at any time thereafter the rate of
interest payable hereunder is less than the Maximum Lawful Rate, the Borrowers shall continue to
pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by
the Administrative Agent, on behalf of Lenders, is equal to the total interest that would have been
received had the interest payable hereunder been (but for the operation of this paragraph) the
interest rate payable since the Closing Date as otherwise provided in this Agreement.

 

24

 

Section 2.10 Delayed Payment Privilege.

(a) The Borrowers have requested the privilege of delaying payment of a Loan in the limited
instances where Collateral is sold by a Borrower to a purchaser for whom both the Borrower
Representative and the Administrative Agent have agreed to a delayed payment period (the
“Delayed Payment Privilege”) and the portion of the purchase price for such Collateral (the
“Collateral Amount Financed”) subject to such Delayed Payment Privilege. In no event shall
the Collateral Amount Financed exceed $45,000,000 without the consent of the Required Lenders.
Notwithstanding anything contained herein to the contrary, the Loan Parties acknowledge and agree
that the Administrative Agent’s security interest in any and all vehicles sold to a customer, and
in which event the full payment thereof by cash or on the basis of a properly perfected retail
installment contract or other security agreement in favor of the Administrative Agent is not made
contemporaneous with the delivery of such Collateral by the Borrowers (the “Delayed Payment
Collateral”), shall remain in full force and effect in such Delayed Payment Collateral and
shall not be relinquished, extinguished, released or terminated as a consequence of such sale or
delivery unless and until the payment is thereafter made directly to the Administrative Agent or
jointly to the Borrowers and the Administrative Agent. Moreover, Borrowers are expressly
prohibited and shall not have any express, implied or apparent authority to sell, lease, transfer
or otherwise dispose of any Delayed Payment Collateral. The terms of this Section 2.10
shall not be altered, modified, supplemented, qualified, waived or amended by reason of any
agreement (unless in writing executed by the Borrowers and the Administrative Agent), or by the
course of performance, course of dealing, or usage of trade by the Borrowers and the Administrative
Agent or any of them.

(b) Any previously executed Agreement for the Delayed Payment Privilege for New Floor Plan
Units among the Borrowers and GE Capital is superseded by the terms and conditions of this
Agreement for all transactions arising on or after the effective date thereof.

(c) The Borrower Representative shall advise the Administrative Agent of each and every
potential transaction in which the Borrower Representative requests the Administrative Agent to
grant the Delayed Payment Privilege, and the period of time for which the Delayed Payment Privilege
is being requested. Such request shall be made of the Administrative Agent in writing and on a
form of the type and kind provided by the Administrative Agent from time to time. Upon receipt of
request from the Borrower Representative to grant a Delayed Payment Privilege in accordance with
the previous sentence, the Administrative Agent shall notify the Borrower Representative within one
Business Day if it does not consent to the requested grant of a Delayed Payment Privilege or needs
additional information in order to evaluate the requested grant of a Delayed Payment Privilege. If
Borrower Representative does not receive a response from the Administrative Agent to any request to
grant a Delayed Payment Privilege within one Business Day of such request, then Administrative
Agent shall be deemed to have consented to such request and the Borrower Representative may grant
the Delayed Payment Privilege. The Administrative Agent’s express or deemed consent, if any, to
the Borrower Representative’s request to grant a Delayed Payment Privilege must be obtained prior
to the sale, transfer or delivery of any vehicles proposed by the Borrowers to be disposed by the
Delayed Payment Privilege (the “Delayed Payment Privilege Collateral”).

 

25

 

(d) The Administrative Agent’s consent to any request for disposition of Delayed Payment
Privilege Collateral shall be in the Administrative Agent’s sole and exclusive discretion and
further subject and contingent upon the following additional terms and conditions:

(i) The Administrative Agent may, in its sole and exclusive discretion limit the
number of items of Collateral, amount outstanding and terms and conditions for which the
Delayed Payment Privilege requested by the Borrower Representative is approved.

(ii) The Administrative Agent may, in its sole and exclusive discretion withdraw,
cancel, or suspend the Delayed Payment Privilege at anytime and for any reason upon a
ten-day advance written notice and immediately if any Event of Default exists;
provided, however, that such withdrawal, cancellation or suspension shall
not affect the rights, interests and duties under this Agreement prior thereto.

(e) Borrowers shall complete, execute and deliver to Administrative Agent, immediately upon
the delivery of Delayed Payment Privilege Collateral, a form of the type and kind provided by
Administrative Agent from time to time (the “Delivery Schedule”).

(f) Borrowers shall immediately pay Administrative Agent the Collateral Amount Financed upon
the earliest of (i) demand by Administrative Agent; or (ii) receipt of the amount due from the
disposition of each of the Delayed Payment Privilege Collateral; or (iii) the “Purchaser Payment
Date” set forth on the applicable Delivery Schedule; or (iv) with respect to any particular vehicle
as to which the Borrowers have exercised the Deferred Payment Privilege, sixty (60) days after such
vehicle was sold (unless the Required Lenders consent to an extension of such 60-day period).

(g) Upon Administrative Agent’s request, Borrowers shall obtain from the person acquiring the
Delayed Payment Privilege Collateral a duly authorized and executed acknowledgement from the
Purchaser confirming that the terms of sale including the continuation of Administrative Agent’s
security interest in the Delayed Payment Privilege Collateral. The acknowledgement shall be in
writing and on a form of the type and kind provided by Administrative Agent from time to time,
which shall be delivered to Administrative Agent prior to any sale, transfer or delivery of any
Delayed Payment Privilege Collateral to such person (the “Acknowledgement of Purchaser”).

(h) The grant and exercise of the Delayed Payment Privilege by Borrowers shall in no way
extinguish, release or terminate Administrative Agent’s security interest in the Delayed Payment
Privilege Collateral unless and until the conditions described in the clause (d) above and
the aforesaid Acknowledgement of Purchaser are first fulfilled, which shall then and thereafter
continue in the proceeds thereof.

(i) Administrative Agent shall have no duty or obligation to examine, review or consider the
creditworthiness of any proposed or actual customer of Borrowers for which Borrowers seeks
Administrative Agent’s consent to the Delayed Payment Privilege and any such examination, review or
consideration by Administrative Agent shall be for its sole and exclusive use and purposes.

 

26

 

(j) Borrowers’ obligation to pay Administrative Agent for the Collateral Amount Financed shall
be absolute, unconditional and primary, notwithstanding (a) Administrative Agent consenting to the
Delayed Payment Privilege; or (b) default in the payment or acquisition terms by the customer of
the Borrowers for Delayed Payment Privilege Collateral, or that of any of customer’s surety,
guarantor, co-obligor or lender; or (c) rejection or revocation of acceptance of any Delayed
Payment Privilege Collateral by such customer; or (d) the acceptance by Administrative Agent of any
assignment or proceeds from any Delayed Payment Privilege Collateral; provided, however, that
nothing in this Section 2.10 is intended to permit payment to Administrative Agent of any
more than the greater of (i) the Collateral Amounts Financed or (ii) the value of Administrative
Agent’s security interest in the Delayed Payment Privilege Collateral. For the avoidance of doubt,
notwithstanding the fact that any Collateral is subject to the Delayed Payment Privilege, any Loans
made to finance the purchase price of such Collateral subject to the Delayed Payment Privilege
shall remain outstanding until paid in full in accordance with the terms hereof and such Loans
shall be included, as applicable, in the calculation of the aggregate amount of Loans, New
Equipment Loans and Used Equipment Loans outstanding and in the calculation of the Total Equipment
Loans, Net Equipment Loans and Total Loans.

(k) Upon demand by Administrative Agent, Borrowers shall provide Administrative Agent with an
assignment of all right, title, and interest of the Borrowers in and to the accounts, contract
rights, sale proceeds or any other interest Borrowers may then or thereafter have in the Delayed
Payment Privilege Collateral. Said assignment shall be for the purpose of additional security only
and shall be on a form of the type and kind provided by Administrative Agent from time to time.

(l) Administrative Agent may take such actions as it reasonably deems appropriate to assure
and enforce compliance with this Agreement, including requesting, for audit purposes, verification
from Borrowers’ customers the fact of delivery, possession, and amount, date and circumstances of
payment of any Delayed Payment Privilege Collateral, and the
notification to appropriate persons of any security interest, assignment or other claim in the
Delayed Payment Privilege Collateral of Administrative Agent.

Section 2.11 Settlement Dates. On each Settlement Date, the Administrative
Agent shall pay to all Lenders, in accordance with Section 2.12, their share of all
principal repayments received by the Administrative Agent from the Borrowers since the prior
Settlement Date (or with respect to the first Settlement Date, since the Closing Date). On each
Settlement Date, each Lender shall pay to the Administrative Agent, for the benefit of the
Swingline Lender, its Pro Rata Share of the Revolving Loan to be made on such Settlement Date to
refinance Swing Loans in accordance with Section 2.3. The Administrative Agent shall be
entitled to offset such fundings and fund or receive payment on a net basis. 

Section 2.12 Application of Payments.

(a) Application of Payments During an Event of Default. Each of the Borrowers hereby
irrevocably waives, and agrees to cause each Loan Party and each other Group Member to waive, the
right to direct the application during the continuance of an Event of Default of any and all
payments in respect of any Obligation and any proceeds of Collateral and agrees that the
Administrative Agent may apply all payments in respect of any Obligation and all proceeds of
Collateral to the Obligations in accordance with this Section 2.12 or as otherwise directed
by the Administrative Agent and all Lenders.

 

27

 

(b) Application of Payments under Sections 2.6(b), 2.6(c) and 2.8(b). All repayments
of the Obligations made by the Borrowers pursuant to Section 2.6(b), Section 2.6(c)
or Section 2.8(b) shall be allocated (i) first, to pay the outstanding principal
amount of the Swing Loans, and (ii) second, to pay the outstanding principal amount of the
Revolving Loans in proportion to each Lender’s Pro Rata Share, subject to Section 2.13(f).
If sufficient amounts are not available to repay all outstanding Obligations described in any
priority level set forth in this Section 2.12, the available amounts shall be applied,
unless otherwise expressly specified herein, to such Obligations ratably based on the proportion of
the Secured Parties’ interest in such Obligations. Any priority level set forth in this
Section 2.12 that includes interest shall include all such interest, whether or not
accruing after the filing of any petition in bankruptcy or the commencement of any insolvency,
reorganization or similar proceeding, and whether or not a claim for post-filing or post-petition
interest is allowed in any such proceeding.

(c) Application of Voluntary Partial Prepayments under Section 2.7. All voluntary
partial prepayments of the Obligations made by the Borrowers pursuant to Section 2.7 shall
be allocated (i) first, to pay the outstanding principal amount of the Working Capital
Loans, (ii) second, to pay the outstanding principal amount of the Swing Loans (which shall
be deemed to reduce the interests of the Working Capital Lenders therein but not the interests of
any other Lenders), and (iii) third, to pay the outstanding principal amount of Revolving
Loans made by the Working Capital Lenders (but not any other Lenders). If sufficient amounts are
not available to repay all outstanding Obligations described in any priority level set forth in
this Section 2.12, the available amounts shall be applied, unless otherwise expressly
specified herein, to such Obligations ratably based on the proportion of the Secured Parties’
interest in such Obligations. Any priority level set forth in this Section 2.12 that
includes interest shall include all such interest, whether or not accruing after the filing of any
petition in bankruptcy or the commencement of any insolvency, reorganization or similar proceeding, and whether or not a
claim for post-filing or post-petition interest is allowed in any such proceeding.

(d) Application of Payments Generally. Subject to Section 2.12(a) and
Section 2.12(c), all payments that would otherwise be allocated to the Lenders pursuant to
this Section 2.12 shall be allocated (i) first, to pay Obligations in respect of
any cost or expense reimbursements, fees or indemnities then due to the Administrative Agent, (ii)
second, to pay accrued and unpaid interest and fees due and payable to the Lenders, (iii)
third, to pay the outstanding principal amount of Swing Loans, (iv) fourth, to pay
the outstanding principal amount of Revolving Loans allocated ratably based on each Lender’s Pro
Rata Share, (v) fifth, to pay the outstanding principal amount of Working Capital Loans and
(vi) sixth, to pay any other Obligations then due and payable. If sufficient amounts are
not available to repay all outstanding Obligations described in any priority level set forth in
this Section 2.12, the available amounts shall be applied, unless otherwise expressly
specified herein, to such Obligations ratably based on the proportion of the Secured Parties’
interest in such Obligations. Any priority level set forth in this Section 2.12 that
includes interest shall include all such interest, whether or not accruing after the filing of any
petition in bankruptcy or the commencement of any insolvency, reorganization or similar proceeding,
and whether or not a claim for post-filing or post-petition interest is allowed in any such
proceeding.

 

28

 

Section 2.13 Payments and Computations. (a) Procedure. The
Borrowers shall make each payment under any Loan Document not later than 11:00 a.m. on the day when
due to the Administrative Agent by wire transfer or ACH transfer (which shall be the exclusive
means of payment hereunder) to the following account (or at such other account or by such other
means to such other address as the Administrative Agent shall have notified the Borrower
Representative in writing within a reasonable time prior to such payment) in immediately available
Dollars and without setoff or counterclaim:

ABA No. 021-001-033

Account Number 502-797-91

Deutsche Bank Trust Company Americas, New York, New York

Account Name: GECC/CAF Depository

Reference: GE Capital Re Rush Enterprises

(b) Computations of Interests and Fees. All computations of interest and of fees
shall be made by the Administrative Agent on the basis of a year of 360 days consisting of 12
30-day months (including the first day but excluding the last day) occurring in the period for
which such interest and fees are payable. Each determination of an interest rate or the amount of
a fee hereunder shall be made by the Administrative Agent (including determinations of a LIBOR Rate
in accordance with the definitions of “LIBOR Rate”) and shall be conclusive, binding and final for
all purposes, absent manifest error.

(c) Payment Dates. Whenever any payment hereunder shall be stated to be due on a day
other than a Business Day, the due date for such payment shall be extended to the next succeeding
Business Day without any increase in such payment as a result of additional interest or fees;
provided, however, that such interest and fees shall continue accruing as a result
of such extension of time.

(d) Advancing Payments. Unless the Administrative Agent shall have received notice
from the Borrower Representative to the Lenders prior to the date on which any payment is due
hereunder that the Borrowers will not make such payment in full, the Administrative Agent may
assume that the Borrowers have made such payment in full to the Administrative Agent on such date
and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each
Lender on such due date an amount equal to the amount then due such Lender. If and to the extent
that the Borrowers shall not have made such payment in full to the Administrative Agent, each
Lender shall repay to the Administrative Agent on demand such amount distributed to such Lender
together with interest thereon (at the Federal Funds Rate for the first Business Day and
thereafter, at the rate applicable to the Loans) for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the Administrative
Agent. The Lenders shall make any payment under any Loan Document in immediately available Dollars
and without setoff or counterclaim.

(e) Non-Pro Rata Payments. Notwithstanding anything contained in this Agreement to
the contrary, to the extent that the outstanding Revolving Loans are not held ratably among the
Lenders and the payments to be allocated to any Lender under this Agreement exceed its outstanding
Revolving Loans, such excess payments shall be applied first to any outstanding Working Capital
Loans of such Lender, and then refunded to the Borrowers in the form of a Working Capital Loan;
provided, however, that for purposes of calculating Total Equipment Loans, the
entire payment amount (including any portion that is retained by or returned to the Borrowers)
shall be deemed to have been paid and shall reduce Total Equipment Loans.

(f) Non-Pro Rata Funding of Loans. To the extent that the outstanding Revolving Loans
are not held ratably among the Lenders and there is insufficient availability under the Commitments
of any Lender to fund its Pro Rata Share of any requested new Borrowing of Revolving Loans, such
Lender shall fund a portion of such Borrowing equal to the unfunded amount of its Commitment, and
the remaining portion of such Borrowing shall be funded ratably by the remaining Lenders.

 

29

 

(g) Allocation of Payments to New Equipment Loans and Used Equipment Loans. The
Administrative Agent may maintain books and records associating each New Equipment Loan and each
Used Equipment Loan with specific items of Inventory. The principal amount of each New Equipment
Loan shall be deemed reduced by each New Equipment Loan Curtailment Payment associated with such
New Equipment Loan and each repayment thereof required under Section 2.8(b), regardless of
how such payments are allocated pursuant to Section 2.12. The principal amount of each
Used Equipment Loan shall be deemed reduced by each Used Equipment Loan Curtailment Payment
associated with such Used Equipment Loan and each repayment thereof required under Section
2.8(b), regardless of how such payments are allocated pursuant to Section 2.12. None
of the New Equipment Loans or Used Equipment Loans will be deemed to be reduced as a result of any
prepayments made pursuant to Section 2.7.

Section 2.14 Evidence of Debt. (a) Records of Lenders. Each Lender
shall maintain in accordance with its usual practice accounts evidencing Indebtedness of the
Borrowers to such Lender resulting from each Loan of such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to time under this
Agreement. In addition, each Lender having sold a participation in any of its Obligations to the
Administrative Agent, acting as agent of the Borrowers solely for this purpose and solely for tax
purposes, shall establish and maintain at its address referred to in Section 11.11 (or at
such other address as such Lender shall notify the
Borrower Representative) a record of ownership (the “Participant Register”), in which
such Lender shall register by book entry (A) the name and address of each such participant (and
each change thereto, whether by assignment or otherwise) and (B) the rights, interest or obligation
of each such participant in any Obligation, in any Commitment and in any right to receive any
payment hereunder.

(b) Records of Administrative Agent. The Administrative Agent, acting as agent of the
Borrowers solely for tax purposes and solely with respect to the actions described in this
Section 2.14, shall establish and maintain at its address referred to in Section
11.11 (or at such other address as the Administrative Agent may notify the Borrower
Representative) (A) a record of ownership (the “Register”) in which the Administrative
Agent agrees to register by book entry the interests (including any rights to receive payment
hereunder) of the Administrative Agent and each Lender, their Commitments, their Loans, each of
their obligations under this Agreement to participate in each Loan, and any assignment of any such
interest, obligation or right and (B) accounts in the Register in accordance with its usual
practice in which it shall record (1) the names and addresses of the Lenders (and each change
thereto pursuant to Section 2.18 (Substitution of Lenders) and Section 11.2
(Assignments and Participations; Binding Effect)), (2) the Commitments of each Lender, (3)
the amount of each Loan and each funding of any participation described in clause (a)
above, (4) the amount of any principal or interest due and payable or paid and (5) any other
payment received by the Administrative Agent from the Borrowers and its application to the
Obligations.

(c) Registered Obligations. Notwithstanding anything to the contrary contained in
this Agreement, the Loans are registered obligations, the right, title and interest of the Lenders
and their assignees in and to such Loans shall be transferable only upon notation of such transfer
in the Register and no assignment thereof shall be effective until recorded therein. This
Section 2.14 and Section 11.2 shall be construed so that the Loans are at all times
maintained in “registered form” within the meaning of Sections 163(f), 871(h)(2) and
881(c)(2) of the Code and any related regulations (and any successor provisions).

 

30

 

(d) Prima Facie Evidence. The entries made in the Register and in the accounts
maintained pursuant to clauses (a) and (b) above shall, to the extent permitted by
applicable Requirements of Law, be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided, however, that no error in such account and
no failure of any Lender or the Administrative Agent to maintain any such account shall affect the
obligations of any Loan Party to repay the Loans in accordance with their terms. In addition, the
Loan Parties, the Administrative Agent and the Lenders shall treat each Person whose name is
recorded in the Register as a Lender for all purposes of this Agreement. Information contained in
the Register and the Participant Register with respect to any Lender or any participant shall be
available for access by the Borrowers, the Administrative Agent and such Lender at any reasonable
time during normal business hours and from time to time upon reasonable prior notice of at least
three Business Days. No Lender shall, in such capacity, have access to or be otherwise permitted
to review any information in the Register other than information with respect to such Lender unless
otherwise agreed by the Administrative Agent.

(e) Notes. Upon any Lender’s reasonable request, the Borrowers shall promptly execute
and deliver notes to such Lender evidencing the Loans of such Lender. Each note, if issued, shall
only be issued as means to evidence the right, title or interest of a Lender or a registered
assignee in and to the related Loan, as set forth in the Register, and in no event shall any note
be considered a bearer instrument or obligation.

Section 2.15 Suspension of LIBOR Rate Option. Notwithstanding any provision
to the contrary in this Article 2, the following shall apply:

(a) Interest Rate Unascertainable, Inadequate or Unfair. In the event that the
Administrative Agent determines that adequate and fair means do not exist for ascertaining the
applicable interest rates by reference to which the LIBOR Rate is determined, the Administrative
Agent shall promptly so notify the Borrower Representative and the Lenders, whereupon the
obligation of each Lender to make or to continue LIBOR Rate Loans shall be suspended as provided in
clause (c) below until the Administrative Agent shall notify the Borrower Representative
that the Required Lenders have determined that the circumstances causing such suspension no longer
exist.

(b) Illegality. If any Lender determines that the introduction of, or any change in
or in the interpretation of, any Requirement of Law after the date of this Agreement shall make it
unlawful, or any Governmental Authority shall assert that it is unlawful, for any Lender or its
applicable lending office to make LIBOR Rate Loans or to continue to fund or maintain LIBOR Rate
Loans, then, on notice thereof and demand therefor by such Lender to the Borrower Representative
through the Administrative Agent, the obligation of such Lender to make or to continue LIBOR Rate
Loans shall be suspended as provided in clause (c) below until such Lender shall, through
the Administrative Agent, notify the Borrower Representative that it has determined that it may
lawfully make LIBOR Rate Loans.

 

31

 

(c) Effect of Suspension. If the obligation of any Lender to make LIBOR Rate Loans is
suspended, (A) such Lender shall make a Base Rate Loan at any time such Lender would otherwise be
obligated to make a LIBOR Rate Loan, (B) the Borrower Representative may revoke any pending request
for a LIBOR Rate Loan and (C) each LIBOR Rate Loan of such Lender shall automatically and
immediately (or, in the case of any suspension pursuant to clause (a) above, on the last
day of the current calendar month) be converted into a Base Rate Loan. For purposes of this
Section 2.15(c) and Section 2.16, a “Base Rate Loan” means any Loan that
bears interest based on the Base Rate, and “Base Rate” means, for any day, the sum of a
rate per annum equal to the higher of (a) the rate last quoted by The Wall Street Journal
as the “Prime Rate” in the United States or, if The Wall Street Journal ceases to quote
such rate, the highest per annum interest rate published by the Federal Reserve Board in Federal
Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the “bank prime loan” rate or,
if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the
Administrative Agent) or any similar release by the Federal Reserve Board (as determined by the
Administrative Agent) and (b) the sum of 3.50% per annum and the Federal Funds Rate. Any change in
the Base Rate due to a change in any of the foregoing shall be effective on the effective date of
such change in the “Prime Rate”, “bank prime loan” rate or the Federal Funds Rate.

Section 2.16 Breakage Costs. The Borrowers shall compensate each Lender, upon
demand from such Lender to the Borrower Representative (with copy to the Administrative Agent), for
all Liabilities (including, in each case, those incurred by reason of the liquidation or
reemployment of deposits or other funds acquired by such Lender to prepare to fund, to fund or to
maintain the LIBOR Rate Loans of such Lender to the Borrowers) that such Lender may incur (A) to
the extent, for any reason other than solely by reason of such Lender being a Non-Funding Lender, a
proposed Borrowing does not occur on a date specified therefor in a Request for Equipment Loan
Borrowing or a Request for Working Capital Borrowing or in a similar request made by telephone by
the Borrower Representative, (B) to the extent any LIBOR Rate Loan is paid (whether through a scheduled
payment, optional prepayment or mandatory repayment) or converted to a Base Rate Loan (but
excluding because of Section 2.15) on a date that is not the last day of the applicable
calendar month or (C) as a consequence of any failure by the Borrowers to repay LIBOR Rate Loans
when required by the terms hereof. For purposes of this Section 2.16, each Lender shall be
deemed to have funded each LIBOR Rate Loan made by it using a matching deposit or other borrowing
in the London interbank market. Each demand for compensation under this Section 2.16 shall
be accompanied by a certificate of the Lender claiming such compensation, setting forth the amounts
to be paid hereunder, which certificate shall be conclusive, binding and final for all purposes,
absent manifest error. In determining such amount, such Lender may use any reasonable averaging
and attribution methods.

Section 2.17 Taxes. (a) Payments Free and Clear of Taxes. Except as
otherwise provided in this Section 2.17, each payment by any Loan Party under any Loan
Document shall be made free and clear of all present or future taxes, levies, imposts, deductions,
charges or withholdings and all liabilities with respect thereto (and without deduction for any of
them) (collectively, but excluding the taxes set forth in clauses (i) and (ii)
below, the “Taxes”) other than for (i) taxes measured by net income (including branch
profits taxes) and overall receipts, total capital or franchise taxes imposed in lieu of net income
taxes, in each case imposed on any Secured Party as a result of a present or former connection
between such Secured Party and the jurisdiction of the Governmental Authority imposing such tax or
any political subdivision or taxing authority thereof or therein (other than such connection
arising solely from any Secured Party having executed, delivered or performed its obligations or
received a payment under, or enforced, any Loan Document) or (ii) taxes that are directly
attributable to the failure (other than as a result of a change in any Requirement of Law in effect
as of the date such Secured Party becomes a party to this Agreement) by any Secured Party to
deliver the forms, certificates or other documentation required to be delivered pursuant to
clause (e) below.

 

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(b) Gross-Up. Except as provided in this Section 2.17(b), if any Taxes shall
be required by law to be deducted from or in respect of any amount payable under any Loan Document
to any Secured Party (i) such amount shall be increased as necessary to ensure that, after all
required deductions for Taxes are made (including deductions applicable to any increases to any
amount under this Section 2.17), such Secured Party receives the amount it would have
received had no such deductions been made, (ii) the relevant Loan Party shall make such deductions,
(iii) the relevant Loan Party shall timely pay the full amount deducted to the relevant taxing
authority or other authority in accordance with applicable Requirements of Law and (iv) within 30
days after such payment is made, the relevant Loan Party shall deliver to the Administrative Agent
an original or certified copy of a receipt evidencing such payment; provided,
however, that no such increase shall be made with respect to, and no Loan Party shall be
required to indemnify any such Secured Party pursuant to clause (d) below for, withholding
taxes to the extent that the obligation to withhold amounts existed on the date that such Secured
Party became a “Secured Party” under this Agreement in the capacity under which such Secured Party
makes a claim under this clause (b), except in each case to the extent such Secured Party
is a direct or indirect assignee (other than pursuant to Section 2.18 (Substitution of
Lenders)) of any other Secured Party that was entitled, at the time the assignment of such
other Secured Party became effective, to receive additional amounts under this clause (b).

(c) Other Taxes. In addition, the Borrowers agree to pay, and authorize the
Administrative Agent to pay in their names, any stamp, documentary, excise or property tax, charges
or similar levies imposed by any applicable Requirement of Law or Governmental Authority and all
Liabilities with respect thereto (including by reason of any delay in payment thereof), in each
case arising from the execution, delivery or registration of, or otherwise with respect to, any
Loan Document or any transaction contemplated therein (collectively, “Other Taxes”).
Within 30 days after the date of any payment of Taxes or Other Taxes by any Loan Party, the
Borrowers shall furnish to the Administrative Agent, at its address referred to in Section
11.11, the original or a certified copy of a receipt evidencing payment thereof.

(d) Indemnification. Except as provided in Section 2.17(b), the Borrowers shall
reimburse and indemnify, within 30 days after receipt of demand therefor (with copy to the
Administrative Agent), each Secured Party for all Taxes and Other Taxes (including any Taxes and
Other Taxes imposed by any jurisdiction on amounts payable under this Section 2.17) paid by
such Secured Party and any Liabilities arising therefrom or with respect thereto, whether or not
such Taxes or Other Taxes were correctly or legally asserted. Each Secured Party agrees to use
commercially reasonable efforts to make any claim for payment to which it is entitled under this
Section 2.17(d) within a reasonable period of time after becoming aware of its entitlement
thereto. A certificate of the Secured Party (or of the Administrative Agent on behalf of such
Secured Party) claiming any compensation under this clause (d), setting forth the amounts
to be paid thereunder and delivered to the Borrowers with copy to the Administrative Agent, shall
be conclusive, binding and final for all purposes, absent manifest error. In determining such
amount, the Administrative Agent and such Secured Party may use any reasonable averaging and
attribution methods.

(e) Tax Forms.

(i) Each Lender shall (A) on the Closing Date, (B) on or prior to the date on which
any such form or certification expires or becomes obsolete, (C) after the occurrence of any
event requiring a change in the most recent form or certification previously delivered by
it pursuant to this clause (e) and (D) from time to time if requested by the
Borrower Representative or the Administrative Agent (or, in the case of a participant, the
relevant Lender), provide the Administrative Agent and the Borrower Representative (or, in
the case of a participant, the relevant Lender) with two completed originals of Form W-9
(certifying that such Lender is entitled to an exemption from U.S. backup withholding tax)
or any successor form.

 

33

 

(ii) Each Lender having sold a participation in any of its Obligations to the
Administrative Agent shall collect from such participant the documents described in this
clause (e) and provide them to the Administrative Agent.

(f) If any Secured Party determines, in its sole discretion, that it has received a refund of
any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to
which any Loan Party has paid additional amounts pursuant to this Section 2.17, such
Secured Party shall pay to the Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by any Loan Party under this Section
2.17 with respect to such Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of such Secured Party and without interest (other than any interest paid by
the relevant Governmental Authority with respect to such refund); provided, that,
the Borrower, upon the request of such Secured Party, shall repay the amount paid over to the
Borrower (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Secured Party in the event the Secured Party is required to repay such refund to such Governmental
Authority. This paragraph shall not be construed to require any Secured Party to make available
its tax returns (or any other information relating to its taxes which it deems confidential) to the
Borrower or any other person.

Section 2.18 Substitution of Lenders. (a) Substitution Right. In
the event that any Lender (an “Affected Lender”), (i) notifies the Borrower Representative
pursuant to Section 2.15(b) (Illegality) that it becomes illegal for such Lender to
continue to fund or make any LIBOR Rate Loan, (ii) makes a claim for payment pursuant to
Section 2.17(b) (Taxes — Gross Up) or (iii) does not consent to any amendment,
waiver or consent to any Loan Document for which the consent of the Required Lenders is obtained
but that requires the consent of other Lenders, the Borrowers may either pay in full such Affected
Lender with respect to amounts due with the consent of the Administrative Agent or substitute for
such Affected Lender any Lender or any Affiliate or Approved Fund of any Lender or any other Person
acceptable (which acceptance shall not be unreasonably withheld or delayed) to the Administrative
Agent (in each case, a “Substitute Lender”). Notwithstanding anything herein to the
contrary, with respect to a Lender that is a Non-Funding Lender, the Administrative Agent may, but
shall not be obligated to, obtain a Substitute Lender and execute an Assignment on behalf of such
Non-Funding Lender at any time with three Business Days’ prior notice to such Non-Funding Lender
(unless notice is not practicable under the circumstances) and cause such Lender’s Loans and
Commitments to be sold and assigned, in whole or in part, at par.

(b) Procedure. To substitute such Affected Lender or pay in full the Obligations owed
to such Affected Lender as described in the first sentence of clause (a) above, the
Borrower Representative shall deliver a notice to the Administrative Agent and such Affected
Lender. The effectiveness of such payment or substitution shall be subject to the delivery to the
Administrative Agent by the Borrowers (or, as may be applicable in the case of a substitution, by
the Substitute Lender) of (i) payment for the account of such Affected Lender, of, to the extent
accrued through, and outstanding on, the effective date for such payment or substitution, all
Obligations owing to such Affected Lender, (ii) in the case of a payment in full of the Obligations
owing to such Affected Lender, payment of any amount that, after giving effect to the termination
of the Commitment of such Affected Lender, is required to be paid pursuant to Section
2.8(a) (Excess Outstandings) and (iii) in the case of a substitution, (A) payment of
the assignment fee set forth in Section 11.2(c) and (B) an assumption agreement in form and
substance satisfactory to the Administrative Agent whereby the Substitute Lender shall, among other
things, agree to be bound by the terms of the Loan Documents and assume the Commitment of the
Affected Lender.

 

34

 

(c) Effectiveness. Upon satisfaction of the conditions set forth in clause
(b) above or in the case of a substitution of a Non-Funding Lender as described in the last
sentence of clause (a) above, the Administrative Agent shall record such substitution or
payment in the Register, whereupon (i) in the case of any payment in full, such Affected Lender’s
Commitments shall be terminated and (ii) in the case of any substitution, (A) the Affected Lender
shall sell and be relieved of, and the Substitute Lender shall purchase and assume, all rights and
claims of such Affected Lender under the Loan Documents and the relevant Lender Interest Letter,
except that the Affected Lender shall retain such rights expressly providing that they survive the
repayment of the Obligations and the termination of the Commitments, (B) the Substitute Lender
shall become a “Lender” hereunder having a Commitment in the amount of such Affected
Lender’s Commitment and (C) the Affected Lender shall execute and deliver to the Administrative Agent
an Assignment to evidence such substitution; provided, however, that the failure of
any Affected Lender to execute any such Assignment shall not render such sale and purchase (or the
corresponding assignment) invalid. Each Lender agrees that if the Borrower Representative or the
Administrative Agent exercises its option hereunder to cause an assignment by such Lender as an
Affected Lender, such Lender shall, promptly after receipt of written notice of such election,
execute and deliver all documentation necessary to effectuate such assignment in accordance with
Section 11.2. In the event that a Lender does not comply with the requirements of the
immediately preceding sentence within one Business Day after receipt of such notice, each Lender
hereby authorizes and directs the Administrative Agent to execute and deliver, on behalf of such
Lender as assignor, any assignment agreement or other documentation as may be required to give
effect to an assignment in accordance with Section 11.2 on behalf of an Affected Lender and
any such documentation so executed by the Administrative Agent shall be effective for purposes of
documenting an assignment pursuant to Section 11.2.

ARTICLE 3

SECURITY INTEREST

To secure payment of all Obligations, Holdings and each Borrower grants to the Administrative
Agent, for the benefit of the holders of the Obligations, a security interest in all present and
future Inventory of Holdings or such Borrower, together with all attachments, accessories,
exchanges, replacement parts, repairs, and additions to any such Inventory, and all chattel paper,
documents, certificates of title, certificates of origin, general intangibles, instruments,
accounts and contract rights now existing or hereafter arising with respect thereto, and all cash
and non-cash proceeds of any of the foregoing (collectively, the “Collateral”). Each
Borrower agrees that at any time and from time to time, upon the request of Administrative Agent,
Borrowers will promptly (i) deliver to Administrative Agent all Collateral other than Inventory,
(ii) mark all chattel paper, documents and instruments and Borrowers’ books of account, ledger
cards and other records relative to the Collateral with a notation reasonably satisfactory to
Administrative Agent disclosing that they are subject to Administrative Agent’s security interest,
(iii) execute and deliver to Administrative Agent such

 

35

 

instruments, statements and agreements as
Administrative Agent may reasonably request to evidence further each Loan
 and the security interests granted hereunder; provided, however, a Borrower’s failure to comply with
such request shall not affect or limit Administrative Agent’s security interest or other rights in
and to the Collateral, and (iv) permit Administrative Agent or its representatives to examine the
Collateral and Borrowers’ books and records and, during the continuation of an Event of Default,
Borrowers agree to pay to Administrative Agent its actual costs relating to such examinations
immediately upon receipt of Administrative Agent’s invoice therefore. Borrowers agree that
Administrative Agent may directly collect any amount owed to Borrowers with respect to the
Collateral (hereafter referred to as an “Account”) and credit Borrowers with all sums
received by Administrative Agent. With the consent of the Borrower Representative, not to be
unreasonably withheld or delayed, or at any time that an Event of Default has occurred and is
continuing, Administrative Agent may contact any customer of Borrower to confirm and verify the
terms of sale, payments made on an Account, and any modifications claimed to be made by the
Borrowers with such customer of Borrower. If an Event of Default has occurred and is continuing,
Borrowers agree that Administrative Agent may at any time notify any customer of Borrower of the
assignment of said Account and revoke the authority of the Borrowers to collect the same and should
the Administrative Agent at any time receive any checks, drafts, money orders or other
instruments or orders for money payable to a Borrower to apply to an Account, Administrative Agent
is irrevocably appointed attorney-in-fact for each such Borrower to endorse each such instrument
with the name of the Borrower and collect the same.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

To induce the Lenders and the Administrative Agent to enter into the Loan Documents, each Loan
Party represents and warrants that:

Section 4.1 Corporate Existence; Compliance with Law; Line of Business. Each
Group Member (a) is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) is duly qualified to do business as a foreign entity and in
good standing under the laws of each jurisdiction where such qualification is necessary, except
where the failure to be so qualified or in good standing would not, in the aggregate, have a
Material Adverse Effect, (c) has all requisite corporate or limited partnership power, as
applicable, and authority and the legal right to own, pledge, mortgage and operate its property, to
lease or sublease any property it operates under lease or sublease and to conduct its business as
now or currently proposed to be conducted, (d) is in compliance in all material respects with its
Constituent Documents, (e) is in compliance with all applicable Requirements of Law, except where
the failure to be in compliance would not have a Material Adverse Effect and (f) has all necessary
Permits from or by, has made all necessary filings with, and has given all necessary notices to,
each Governmental Authority having jurisdiction, to the extent required for such ownership, lease,
sublease, operation, occupation or conduct of business, except where the failure to obtain such
Permits, make such filings or give such notices would not, in the aggregate, have a Material
Adverse Effect. The Borrowers are engaged in the business of selling Inventory at retail.

 

36

 

Section 4.2 Loan. (a) Power and Authority. The execution, delivery
and performance by each Loan Party of the Loan Documents (i) are within such Loan Party’s corporate
or similar powers and, at the time of execution thereof, have been duly authorized by all necessary
corporate and similar action (including, if applicable, consent of holders of its Securities), (ii)
do not (A) contravene such Loan Party’s Constituent Documents, (B) violate any applicable
Requirement of Law, (C) conflict with, contravene, constitute a default or breach under, or result
in or permit the termination or acceleration of, any material Contractual Obligation of any Loan
Party or any of its Subsidiaries (including other Loan Documents) other than those that would not,
in the aggregate, have a Material Adverse Effect or (D) result in the imposition of any Lien (other
than a Lien securing the Obligations) upon any property of any Loan Party or any of its
Subsidiaries and (iii) do not require any Permit of, or filing with, any Governmental Authority or
any consent of, or notice to, any Person, other than (A) with respect to the Loan Documents, the
filings required to perfect the Liens created by the Loan Documents, and (B) those listed on
Schedule 4.2 and that have been, or will be prior to the Closing Date, obtained or made,
copies of which have been, or will be prior to the Closing Date, delivered to the Administrative
Agent, and each of which on the Closing Date will be in full force and effect.

(b) Due Execution and Delivery. From and after its delivery to the Administrative
Agent, each Loan Document has been duly executed and delivered to the other
parties thereto by each Loan Party party thereto, is the legal, valid and binding obligation of
such Loan Party and is enforceable against such Loan Party in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally or by equitable principles
relating to enforceability.

Section 4.3 Ownership of Group Members. Set forth on Schedule 4.3 is
a complete and accurate list showing, as of the Closing Date, for each Group Member and each
Subsidiary of any Group Member and each joint venture of any of them, its legal name, its
jurisdiction of organization and the percentage of its Voting Stock owned by Holdings and each
other Subsidiary, and for each joint venture, the nature of the application.

Section 4.4 Financial Statements. Each of (i) the audited Consolidated balance sheet of Holdings
as at December 31, 2009 and the related Consolidated statements of income, retained earnings and
cash flows of Holdings for the Fiscal Year then ended, certified by Group Members’ Accountants, and
(ii) subject to the absence of footnote disclosure and normal recurring year-end audit adjustments,
the unaudited Consolidated balance sheets of Holdings as at September 30, 2010 and the related
Consolidated statements of income, retained earnings and cash flows of Holdings for the 9 months
then ended, copies of each of which have been furnished to the Administrative Agent, fairly present
in all material respects the Consolidated financial position, results of operations and cash flow
of Holdings as at the dates indicated and for the periods indicated in accordance with GAAP.

Section 4.5 Material Adverse Effect. Since December 31, 2009, there have been
no events, circumstances, developments or other changes in facts that would, in the aggregate, have
a Material Adverse Effect.

Section 4.6 Solvency. Giving effect to the contribution rights of the Loan
Parties contained in Section 12.7 and the limitation in Section 12.6(b), both
before and after giving effect to (a) the Loans made on or prior to the date this representation
and warranty is made, (b) the disbursement of the proceeds of such Loans, and (c) the payment and
accrual of all transaction costs in connection with the foregoing, both the Loan Parties taken as a
whole and each Borrower are Solvent.

Section 4.7 Litigation. There are no pending (or, to the knowledge of any
Group Member, threatened) actions, suits, proceedings, claims, demands, orders or disputes, or to
the knowledge of any Group Member, any pending or threatened investigation or audit, against any
Borrower or any of its Subsidiaries with, by or before any Governmental Authority other than those
that cannot reasonably be expected to adversely affect the Obligations, the Loan Documents and the
other transactions contemplated therein and would not, in the aggregate, have a Material Adverse
Effect.

 

37

 

Section 4.8 Taxes. All federal, state, local and foreign income and franchise
and other material tax returns, reports and statements (collectively, the “Tax Returns”)
required to be filed by any Tax Affiliate have been filed with the appropriate Governmental
Authorities in all jurisdictions in which such Tax Returns are required to be filed, all such Tax
Returns are true and correct in all material respects, and all taxes, charges
and other impositions reflected therein or otherwise due and payable have been paid prior to
the date on which any Liability may be added thereto for non-payment thereof except for those
contested in good faith by appropriate proceedings diligently conducted and for which adequate
reserves are maintained on the books of the appropriate Tax Affiliate in accordance with GAAP.

Section 4.9 Margin Regulations. No Borrower is engaged in the business of
extending credit for the purpose of, and no proceeds of any Loan or other extensions of credit
hereunder will be used for the purpose of, buying or carrying margin stock (within the meaning of
Regulation U of the Federal Reserve Board) or extending credit to others for the purpose of
purchasing or carrying any such margin stock, in each case in contravention of Regulation T, U or X
of the Federal Reserve Board.

Section 4.10 No Burdensome Obligations; No Defaults. No Group Member is a
party to any Contractual Obligation, no Group Member has Constituent Documents containing
obligations, and, to the knowledge of any Group Member, there are no applicable Requirements of
Law, in each case the compliance with which would have, in the aggregate, a Material Adverse
Effect. No Group Member (and, to the knowledge of each Group Member, no other party thereto) is in
default under or with respect to any Contractual Obligation of any Group Member, other than those
that would not, in the aggregate, have a Material Adverse Effect.

Section 4.11 Investment Company Act; Public Utility Holding Company Act. No
Group Member is (a) an “investment company” or an “affiliated person” of, or “promoter” or
“principal underwriter” for, an “investment company”, as such terms are defined in the Investment
Company Act of 1940 or (b) a “holding company” or an “affiliate” of a “holding company” or a
“subsidiary company” of a “holding company”, as each such term is defined and used in the Public
Utility Holding Company Act of 2005.

Section 4.12 Full Disclosure. All of the information prepared or furnished by
or on behalf of the Group Members in connection with any Loan Document (including the information
contained in any Financial Statement or Disclosure Document) or any other transaction contemplated
therein, when read together, does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements contained therein, in light of the
circumstances when made, not misleading; provided, however, that projections
contained therein are not to be viewed as factual and that actual results during the periods
covered thereby may differ from the results set forth in such projections by a material amount.
All projections that are part of such information are based upon good faith estimates and stated
assumptions believed to be reasonable and fair as of the date made in light of conditions and facts
then known and, as of such date, reflect good faith, reasonable and fair estimates of the
information projected for the periods set forth therein. All facts (other than facts of a general
economic or political nature) known to any Group Member and material to an understanding of the
financial condition, business, property or prospects of the Group Member taken as one enterprise
have been disclosed to the Lenders.

 

38

 

Section 4.13 Patriot Act. No Group Member (and, to the knowledge of each
Group Member, no joint venture or subsidiary thereof) is in violation in any material respects of
any United States Requirements of Law relating to terrorism, sanctions or money laundering (the
“Anti-Terrorism Laws”), including the United
States Executive Order No. 13224 on Terrorist Financing (the “Anti-Terrorism Order”) and the
Patriot Act.

Section 4.14 Collateral. The Collateral is free from all Liens other than
those Liens securing the Obligations and mechanics’, materialmen’s, repairmen’s or other similar
Liens arising by operation of law in the ordinary course of business which are not delinquent for
more than ninety (90) days or remain payable without penalty or which are being contested in good
faith by proper proceedings diligently conducted and for which adequate reserves are maintained on
the books of the appropriate Group Member in accordance with GAAP, in each case so long as no
proceeding to enforce such Lien or marshall such Collateral has been commenced. Except as herein
specifically permitted, no financing statement covering the Collateral is now on file in favor of
anyone other than the Administrative Agent. The Collateral is not used by any Group Member for
personal, family or household purposes.

ARTICLE 5

FINANCIAL COVENANTS

Each of Holdings and each Borrower agrees that as long as any Obligation (other than
contingent indemnification Obligations to the extent no claim giving rise thereto has been
asserted) or any Commitment remains outstanding:

Section 5.1 Maximum Consolidated Leverage Ratio. Holdings shall not have, on
the last day of each Fiscal Quarter, a Consolidated Leverage Ratio greater than 2.50 to 1.00.

Section 5.2 Minimum Consolidated Fixed Charge Coverage Ratio. Holdings shall
not have, on the last day of each Fiscal Quarter, a Consolidated Fixed Charge Coverage Ratio for
the four Fiscal Quarter period ending on such day less than (i) 1.15:1.0 on or prior to September
30, 2011 and (ii) 1.20:1.0 thereafter.

Section 5.3 Minimum Consolidated Tangible Net Worth. Holdings shall have, on
the last day of each Fiscal Quarter, a Consolidated Tangible Net Worth at least equal to the
Minimum Consolidated Tangible Net Worth with respect to such Fiscal Quarter.

Section 5.4 Minimum Consolidated Net Worth. Holdings shall have, on the last
day of each Fiscal Quarter, a Consolidated Net Worth at least equal to the Minimum Consolidated Net
Worth with respect to such Fiscal Quarter.

 

39

 

ARTICLE 6

REPORTING COVENANTS

Each of Holdings and each Borrower agrees that, as long as any Obligation (other than
contingent indemnification Obligations to the extent no claim giving rise thereto has been
asserted) or any Commitment remains outstanding:

Section 6.1 Financial Statements. The Borrower Representative shall deliver
to the Administrative Agent each of the
following that are not publicly available on the United States Securities and Exchange
Commission’s Electronic Data Gathering, Analysis and Retrieval System (or “EDGAR”):

(a) Reserved.

(b) Quarterly Reports. As soon as available, and in any event within 45 days after
the end of each Fiscal Quarter, the Consolidated unaudited balance sheet of Holdings as of the
close of such Fiscal Quarter and related Consolidated statements of income and cash flow for such
Fiscal Quarter and that portion of the Fiscal Year ending as of the close of such Fiscal Quarter,
setting forth in comparative form the figures for the corresponding period in the prior Fiscal
Year, in each case certified by a Responsible Officer of the Borrower Representative as fairly
presenting in all material respects the Consolidated financial position, results of operations and
cash flow of Holdings as at the dates indicated and for the periods indicated in accordance with
GAAP (subject to the absence of footnote disclosure and normal year-end audit adjustments).

(c) Annual Reports. As soon as available, and in any event within 90 days after the
end of each Fiscal Year, the Consolidated balance sheet of Holdings as of the end of such year and
related Consolidated statements of income, stockholders’ equity and cash flow for such Fiscal Year,
each prepared in accordance with GAAP, together with a certification by the Group Members’
Accountants that such Consolidated Financial Statements fairly present in all material respects the
Consolidated financial position, results of operations and cash flow of Holdings as at the dates
indicated and for the periods indicated therein in accordance with GAAP without qualification as to
the scope of the audit or as to going concern and without any other similar qualification.

(d) Compliance Certificate. Together with each delivery of any Financial Statement
pursuant to clause (b) or (c) above, a Compliance Certificate duly executed by a
Responsible Officer of the Borrower Representative that, among other things, states that no Default
is continuing as of the date of delivery of such Compliance Certificate or, if a Default is
continuing, states the nature thereof and the action that the Borrowers propose to take with
respect thereto.

(e) Collateral Updates. As part of the Compliance Certificate delivered pursuant to
clause (d) above, a certification by a Responsible Officer of the Borrower Representative
that (i) the corporate chart attached thereto (or the last corporate chart delivered pursuant to
this clause (e)) is correct and complete as of the date of such Compliance Certificate,
(ii) the Loan Parties have delivered all documents (including updated schedules as to locations of
Collateral and acquisition of intellectual property or real property) they are required to deliver
pursuant to any Loan Document on or prior to the date of delivery of such Compliance Certificate
and (iii) complete and correct copies of all documents modifying any term of any Constituent
Document of any Group Member (other than Immaterial Subsidiaries) or any Subsidiary or joint
venture thereof on or prior to the date of delivery of such Compliance Certificate have been
delivered to the Administrative Agent or are attached to such certificate. The Borrower
Representative will notify the Administrative Agent in writing of any change in name of any
Borrower or change in chief executive office or place of business of any Borrower, in each case at
least 30 days prior to such change.

 

40

 

(f) Reserved.

(g) Reserved.

(h) Audit Reports, Management Letters, Etc. Together with each delivery of any
Financial Statement for any Fiscal Year pursuant to clause (c) above, copies of each
management letter, audit report or similar letter or report received by any Group Member from any
independent registered certified public accountant (including the Group Members’ Accountants) in
connection with such Financial Statements or any audit thereof, each certified to be complete and
correct copies by a Responsible Officer of the Borrower Representative as part of the Compliance
Certificate delivered in connection with such Financial Statements.

(i) Insurance. Upon request of the Administrative Agent, a reasonably detailed summary
of all material insurance coverage related to the Collateral maintained as of the date thereof by
any Group Member, together with such other related documents and information as the Administrative
Agent may reasonably require.

Section 6.2 Other Events. The Borrowers shall give the Administrative Agent
notice of each of the following (which may be made by telephone if promptly confirmed in writing)
promptly after any Responsible Officer of any Group Member knows or has reason to know of it:
(a)(i) any Default and (ii) any event that would have a Material Adverse Effect, specifying, in
each case, the nature and anticipated effect thereof and any action proposed to be taken in
connection therewith, or (b) the commencement of, or any material developments in, any action,
investigation, suit, proceeding, audit, claim, demand, order or dispute with, by or before any
Governmental Authority affecting any Group Member or any property of any Group Member that (i)
seeks injunctive or similar relief, (ii) in the reasonable judgment of the Borrowers, exposes any
Group Member to liability in an aggregate amount in excess of $2,500,000 or (iii) if adversely
determined would have a Material Adverse Effect.

Section 6.3 Copies of Notices and Reports. The Borrowers shall promptly
deliver to the Administrative Agent copies of each of the following: (a) all reports that Holdings
transmits to its security holders generally, (b) all documents that any Group Member files with the
Securities and Exchange Commission, the National Association of Securities Dealers, Inc., any
securities exchange or any Governmental Authority exercising similar functions, (c) all press
releases not made available directly to the general public, and (d) any material document
transmitted or received pursuant to, or in connection with, any Contractual Obligation governing
Indebtedness of any Group Member, which in the case of clauses (a) and (b) are not publicly
available on EDGAR.

Section 6.4 Other Information. The Borrowers shall provide the Administrative
Agent with such other documents and information with respect to the business, property, condition
(financial or otherwise), legal, financial or corporate or similar affairs or operations of any
Group Member as the Administrative Agent or such Lender through the Administrative Agent may from
time to time reasonably request.

 

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ARTICLE 7

AFFIRMATIVE COVENANTS

Each of Holdings and each Borrower agrees that as long as any Obligation (other than
contingent indemnification Obligations to the extent no claim giving rise thereto has been
asserted) or any Commitment remains outstanding:

Section 7.1 Maintenance of Corporate Existence. Each Group Member (other than
Immaterial Subsidiaries) shall (a) preserve and maintain its legal existence, except in the
consummation of transactions expressly permitted by Section 8.2, and (b) preserve and
maintain it rights (charter and statutory), privileges franchises and Permits necessary or
desirable in the conduct of its business, except, in the case of this clause (b), where the
failure to do so would not, in the aggregate, have a Material Adverse Effect.

Section 7.2 Compliance with Laws, Etc. Each Group Member shall comply with
all applicable Requirements of Law, Contractual Obligations and Permits, except for such failures
to comply that would not, in the aggregate, have a Material Adverse Effect.

Section 7.3 Payment of Obligations. Each Group Member shall pay or discharge
before they become delinquent (a) all material claims, taxes, assessments, charges and levies
imposed by any Governmental Authority and (b) all other lawful claims that if unpaid would, by the
operation of applicable Requirements of Law, become a Lien upon any Collateral, except, in each
case, for those whose amount or validity is being contested in good faith by proper proceedings
diligently conducted and for which adequate reserves are maintained on the books of the appropriate
Group Member in accordance with GAAP.

Section 7.4 Maintenance of Property. Each Group Member (other than Immaterial
Subsidiaries) shall maintain and preserve (a) in good working order and condition all of its
property necessary in the conduct of its business and (b) all rights, permits, licenses, approvals
and privileges (including all Permits) necessary or used, whether because of its ownership, lease,
sublease or other operation or occupation of property or other conduct of its business, and shall
make all necessary or appropriate filings with, and give all required notices to, Government
Authorities, except for such failures to maintain and preserve the items set forth in clauses
(a) and (b) above that would not, in the aggregate, have a Material Adverse Effect. No
Inventory shall be used for any purpose other than demonstration at or in reasonable proximity to a
Borrower’s place of business or at industry trade shows and any such demonstration shall be in
conformity in all material respects with any applicable Requirements of Law. All Inventory shall
be kept at a Borrower’s place of business other than (i) Inventory used in a demonstration or at an
industry trade show in accordance with the immediately preceding sentence and (ii) Inventory
undergoing body work or repairs. Without limitation to Section 8.1, no Inventory
undergoing up-fitting work, other body work or repairs shall be on consignment without the consent
of the Administrative Agent or otherwise subject to a Lien (other than mechanics’, materialmen’s,
repairmen’s or other similar Liens arising by operation of law in the ordinary course of business
which are not delinquent for more than ninety (90) days or remain payable without penalty or which
are being contested in good faith by proper proceedings diligently conducted and for which adequate
reserves are maintained on the books of
the appropriate Group Member in accordance with GAAP, in each case so long as no proceeding to
enforce such Lien or marshall such Collateral has been commenced) in favor of any Person performing
such body work or repairs or any Person at whose location such Inventory is located while
undergoing such body work or repairs. The Borrowers shall use and maintain the Collateral in
compliance with any insurance policies and all applicable Requirements of Laws.

 

42

 

Section 7.5 Maintenance of Insurance. (a) Loan Parties shall at all times
bear all risk of loss, damage to or destruction of the Collateral. Each Group Member shall
maintain or cause to be maintained in full force and effect all policies of insurance of any kind
with respect to the property and businesses of the Group Members (including policies of life, fire,
theft, product liability, public liability, flood insurance, property damage, other casualty,
employee fidelity, workers’ compensation, business interruption and employee health and welfare
insurance) with financially sound and reputable insurance companies or associations (in each case
that are not Affiliates of any Borrower) of a nature and providing such coverage as is sufficient
in light of the size and character of the business of the Group Members. Without limiting the
foregoing, Loan Parties agree to procure forthwith and maintain insurance on the Inventory, all in
form and amount and with insurers reasonably satisfactory to Administrative Agent.

(b) Each Group Member (other than Immaterial Subsidiaries) shall cause all such insurance
relating to any property or business of any Loan Party to name the Administrative Agent on behalf
of the Secured Parties as additional insured or loss payee, as appropriate, to provide that
Administrative Agent’s interest therein will not be invalidated by the acts, omissions or neglect
of anyone other than Administrative Agent, and to provide that no cancellation, material addition
in amount or material change in coverage shall be effective until after 45 days’ notice thereof to
the Administrative Agent. Loan Parties assign to Administrative Agent all proceeds of such
insurance, including returned and unearned premiums, not to exceed the sum of all amounts payable
pursuant hereto. Loan Parties direct all insurers to make payment of such proceeds jointly payable
to Administrative Agent and the appropriate Loan Party unless the Loan Parties are legally required
to pay such proceeds directly to a third party.

Section 7.6 Keeping of Books. Holdings shall keep proper books of record and
account for itself and its Subsidiaries, in which full, true and correct entries shall be made in
accordance with GAAP and all other applicable Requirements of Law of all financial transactions and
the assets and business of each Group Member.

Section 7.7 Access to Books and Property. Each Group Member shall permit the
Administrative Agent, and during the continuance of an Event of Default the Lenders, and any
Related Person of any of them, as often as reasonably requested, at any reasonable time during
normal business hours and with reasonable advance notice (except that, during the continuance of an
Event of Default, no such notice shall be required) to (a) visit and inspect the property of each
Group Member (other than Immaterial Subsidiaries) and examine and make copies of and abstracts
from, the corporate (and similar), financial, operating and other books and records of each Group
Member (other than Immaterial Subsidiaries), (b) discuss the affairs, finances and accounts of each
Group Member with any officer or director of any Group Member (other than Immaterial
Subsidiaries) and (c) communicate directly with any registered certified public accountants
(including the Group Members’ Accountants) of any Group Member (other than Immaterial
Subsidiaries). Each Group Member shall authorize their respective registered certified public
accountants (including the Group Members’ Accountants) to communicate directly with the Administrative Agent, and during
the continuance of an Event of Default the Lenders, and their Related Persons and to disclose to
the
 Administrative Agent, and during the continuance of an Event of Default the Lenders, and their
Related Persons all financial statements and other documents and information as they might have and
the

 

43

 

 Administrative Agent or, during the continuance of an Event of Default, any Lender reasonably
requests with respect to any Group

Member (other than Immaterial Subsidiaries). Without limiting
the foregoing, (i) each Group Member shall permit the Administrative Agent and its Related Persons
to conduct semi-annual audits of its Inventory, with such audits rotating on a monthly basis
through the different Borrowers and shall permit the Lenders to be present at such audits; and (ii)
Holdings and each Group Member (other than Immaterial Subsidiaries) shall permit the Administrative
Agent and its Related Persons to conduct comprehensive financial audits of the Group Members (other
than any Immaterial Subsidiaries) and shall permit the Lenders to be present at such audits;
provided, however, that, unless an Event of Default has occurred and is continuing, the
Administrative Agent shall not be permitted to conduct more than one such audit in any twelve month
period.

Section 7.8 Use of Proceeds. The proceeds of the New Equipment Loans shall be
used by the Borrowers (and, to the extent distributed to them by the Borrowers, each other Group
Member) solely to finance the purchase of new Inventory not previously used or sold at retail. The
proceeds of the Used Equipment Loans shall be used by the Borrowers (and, to the extent distributed
to them by the Borrowers, each other Group Member) solely to finance the purchase of used Inventory
and Inventory previously sold at retail. The proceeds of the Working Capital Loans shall be used
by the Borrowers (and, to the extent distributed to them by the Borrowers, each other Group Member)
for working capital and other general corporate purposes. 

Section 7.9 Future Borrowers. In the event that, subsequent to the Closing
Date, any Person becomes a Subsidiary of the Borrower Representative, other than Immaterial
Subsidiaries, then such Person shall become a Borrower under this Agreement upon (i) the
Administrative Agent’s receipt of a joinder to this Agreement, in form and substance reasonably
satisfactory to Administrative Agent and duly executed by such Person, and the Administrative
Agent’s receipt of all relevant documentation with respect thereto as such Person would have been
required to provide and take if such Person had been a Borrower on the Closing Date and (ii)
completion of all actions with respect to this Agreement as such Person would have been required to
provide and take if such Person had been a Borrower on the Closing Date.

ARTICLE 8

NEGATIVE COVENANTS

Each of Holdings and each Borrower agrees that as long as any Obligation (other than
contingent indemnification Obligations to the extent no claim giving rise thereto has been
asserted) or any Commitment remains outstanding:

Section 8.1 Liens. No Group Member shall incur, maintain or otherwise suffer
to exist any Lien upon or with respect to any of the Collateral, whether now owned or hereafter
acquired, or assign any right to receive income or profits in connection with the Collateral,
except Liens securing the Obligations and mechanics’, materialmen’s, repairmen’s or other similar
Liens arising by operation of law in the ordinary
course of business which are not delinquent for more than ninety (90) days or remain payable
without penalty or which are being contested in good faith by proper proceedings diligently
conducted and for which adequate reserves are maintained on the books of the appropriate Group
Member in accordance with GAAP, in each case so long as no proceeding to enforce such Lien or
marshall such Collateral has been commenced.

 

44

 

Section 8.2 Fundamental Changes. Unless consented to by the Administrative
Agent, such consent not to be unreasonably withheld, no Group Member shall merge, consolidate or
amalgamate with any Person or Sell, lease as lessor, transfer or otherwise dispose of all or
substantially all of its property, other than (i) the merger, consolidation or amalgamation of any
Borrower with another Borrower or any Subsidiary of the Borrowers into any Borrower and (ii) the
merger, consolidation or amalgamation of any Borrower with any Person that is not a Borrower so
long as (A) such Borrower is the surviving entity or, if the surviving entity is not the Borrower,
such surviving entity executes a joinder to this agreement, in form and substance satisfactory to
Administrative Agent, and (B) no Default or Event of Default results therefrom. Unless consented
to by the Administrative Agent, such consent not to be unreasonably withheld, the Borrower
Representative shall not, and shall not permit the Group Members to, sell all or substantially all
of the Consolidated assets of the Borrower Representative and its Subsidiaries.

Section 8.3 Change in Nature of Business. No Group Member (other than
Immaterial Subsidiaries) shall carry on any business, operations or activities (whether directly,
through a joint venture, in connection with an acquisition or otherwise) substantially different
from those carried on by the Borrowers and their Subsidiaries at the date hereof and business,
operations and activities reasonably related thereto.

Section 8.4 Transactions with Affiliates. No Group Member shall, except as
otherwise expressly permitted herein, enter into any other transaction directly or indirectly with,
or for the benefit of, any Affiliate of the Borrowers that is not a Loan Party (including Guaranty
Obligations with respect to any obligation of any such Affiliate), except for transactions in the
ordinary course of business on a basis no less favorable in the aggregate to such Group Member as
would be obtained in a comparable arm’s length transaction with a Person not an Affiliate of the
Borrowers.

Section 8.5 Modification of Certain Documents; Change in Jurisdiction of
Organization. No Group Member (other than Immaterial Subsidiaries) shall waive or otherwise
modify any term of any Constituent Document of any Group Member (other than Immaterial
Subsidiaries) except for those modifications and waivers that do not materially affect the rights
and privileges of any Group Member or any Secured Party under the Loan Documents or in the
Collateral. No Group Member (other than Immaterial Subsidiaries) will change its jurisdiction of
organization if it is a corporation, limited liability company, limited partnership or other
registered organization without giving the Administrative Agent at least thirty (30) days’ prior
written notice.

Section 8.6 Accounting Changes; Fiscal Year. No Group Member shall change its
(a) accounting treatment or reporting practices, except as required by GAAP or any Requirement of
Law, or (b) its Fiscal Year or its method for determining Fiscal Quarters.

Section 8.7 Margin Regulations. No Group Member shall use all or any portion
of the proceeds of any credit extended hereunder to purchase or carry margin stock (within the
meaning of Regulation U of the Federal Reserve Board) in contravention of Regulation U of the
Federal Reserve Board.

 

45

 

ARTICLE 9

EVENTS OF DEFAULT

Section 9.1 Definition. Each of the following shall be an “Event of
Default”:

(a) the Borrowers shall fail to pay any principal of any Loan when the same becomes due and
payable or any interest on any Loan, any fee under any Loan Document or any other Obligation and
such non-payment continues for a period of ten days after the due date therefor; or

(b) any representation, warranty or certification made or deemed made by or on behalf of any
Loan Party in any Loan Document or by or on behalf of any Loan Party (or any Responsible Officer
thereof) in connection with any Loan Document (including in any document delivered in connection
with any Loan Document) shall prove to have been incorrect in any material respect (or in any
respect if such representation or warranty is qualified by “material” or “Material Adverse Effect”)
when made or deemed made; or

(c) any Loan Party shall fail to comply with (i) any provision of Article 5 (Financial
Covenants), Section 6.1 (Financial Statements), Section 6.2(a)(i) (Notice of
Default), Section 7.1 (Maintenance of Corporate Existence) or Article 8 (Negative
Covenants) or (ii) any other provision of any Loan Document if, in the case of this clause
(ii), such failure shall remain unremedied for 30 days after the earlier of (A) the date on
which a Responsible Officer of any Borrower becomes aware of such failure and (B) the date on which
notice thereof shall have been given to the Borrower Representative by the Administrative Agent or
the Required Lenders; or

(d) (i) any Group Member (other than Immaterial Subsidiaries) shall fail to make any payment
when due (whether due because of scheduled maturity, required repayment and prepayment provisions,
acceleration, demand or otherwise) on any Indebtedness of any Group Member (other than Immaterial
Subsidiaries) other than the Obligations and, in each case, such failure relates to Indebtedness
having a principal amount of $10,000,000 or more, (ii) any other event shall occur or condition
shall exist under any Contractual Obligation relating to any such Indebtedness, if the effect of
such event or condition is to accelerate, or to permit the acceleration of, the maturity of such
Indebtedness or (iii) any such Indebtedness shall become or be declared to be due and payable, or
be required to be prepaid, redeemed, defeased or repurchased (other than by a regularly scheduled
required repayment or prepayment), prior to the stated maturity thereof; or

(e) (i) any Group Member (other than Immaterial Subsidiaries) shall generally not pay its
debts as such debts become due, shall admit in writing its inability to pay its debts generally or
shall make a general assignment for the benefit of creditors, (ii) any proceeding shall be
instituted by or against any Group Member (other than Immaterial Subsidiaries) seeking to
adjudicate it a bankrupt or insolvent or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, composition of it or its debts or any similar order,
in each case under any Requirement of Law relating to bankruptcy, insolvency or reorganization or
relief of debtors or seeking the entry of an order for relief or the appointment of a custodian,
receiver, trustee, conservator, liquidating agent, liquidator, other similar official or other
official with similar powers, in each case for it or for any substantial part of its property and,
in the case of any such proceedings instituted against (but not by or with the consent of) any
Group Member (other than Immaterial Subsidiaries), either such proceedings shall remain undismissed
or unstayed for a period of 60 days or more or any action sought in such proceedings shall occur or
(iii) any Group Member (other than Immaterial Subsidiaries) shall take any corporate or similar
action or any other action to authorize any action described in clause (i) or (ii)
above; or

 

46

 

(f) one or more judgments, orders or decrees (or other similar process) shall be rendered
against any Group Member (other than Immaterial Subsidiaries) (i)(A) in the case of money
judgments, orders and decrees, involving an aggregate amount (excluding amounts adequately covered
by insurance payable to any Group Member (other than Immaterial Subsidiaries), to the extent the
relevant insurer has not denied coverage therefor) in excess of $10,000,000 or (B) otherwise, that
would have, in the aggregate, a Material Adverse Effect and (ii)(A) enforcement proceedings shall
have been commenced by any creditor upon any such judgment, order or decree or (B) such judgment,
order or decree shall not have been vacated or discharged for a period of 30 consecutive days and
there shall not be in effect (by reason of a pending appeal or otherwise) any stay of enforcement
thereof; or

(g) except pursuant to a valid, binding and enforceable termination or release permitted under
the Loan Documents and executed by the Administrative Agent or as otherwise expressly permitted
under any Loan Document, (i) any provision of any Loan Document shall, at any time after the
delivery of such Loan Document, fail to be valid and binding on, or enforceable against, any Loan
Party party thereto or (ii) any Loan Document purporting to grant a Lien to secure any Obligation
shall, at any time after the delivery of such Loan Document, fail to create a valid and enforceable
Lien on any Collateral purported to be covered thereby or such Lien shall fail or cease to be a
perfected Lien with the priority required in the relevant Loan Document, or any Group Member shall
state in writing that any of the events described in clause (i) or (ii) above shall
have occurred; or

(h) any Borrower shall permit another financing source to commence financing Inventory (other
than construction equipment); or

(i) any Collateral having a value in excess of one percent of the Collateral is attached and
such attachment is not contested and or resolved within ninety (90) days thereof and if part of the
Collateral, paid off after such ninety (90) day period; or

(j) there shall occur any Material Adverse Effect; or

(k) any Person in control of any Group Member is accused or alleged or charged (whether or not
subsequently arraigned, indicted or convicted) by any Governmental
Authority to have used any Inventory in connection with the commission of any crime (other
than a misdemeanor moving violation); or

(l) there shall occur any Change of Control.

Section 9.2 Remedies. During the continuance of any Event of Default, the
Administrative Agent may, and, at the request of the Required Lenders, shall, in each case by
notice to the Borrowers and in addition to any other right or remedy provided under any Loan
Document or by any applicable Requirement of Law, do each of the following: (a) declare all or any
portion of the Commitments terminated, whereupon the Commitments shall immediately be reduced by
such portion or, in the case of a termination in whole, shall terminate together with any
obligation any Lender may have hereunder to make any Loan, (b) declare immediately due and payable
all or part of any Obligation (including any accrued but unpaid interest thereon), whereupon the
same shall become

 

47

 

immediately due and payable, without presentment, demand,
 protest or further
notice or other requirements of any kind, all of which are hereby expressly waived by Holdings and
each Borrower (and, to the extent provided in any other Loan Document, other Loan Parties), (c)
cancel any insurance purchased by the Administrative Agent and credit any refund to the
Obligations, and (d) exercise all of the rights and remedies of a secured party under the Uniform
Commercial Code and any other applicable laws, including, without limitation, the right to require
the Loan Parties to assemble the Collateral and deliver it to the Administrative Agent at a place
to be designated by the Administrative Agent which is reasonably convenient to both parties;
provided, however, that, effective immediately upon the occurrence of the Events of
Default specified in Section 9.1(e)(ii), (x) the Commitments of each Lender to make Loans
shall automatically be terminated and (y) each Obligation (including in each case all accrued but
unpaid interest thereon) shall automatically become and be due and payable, without presentment,
demand, protest or further notice or other requirement of any kind, all of which are hereby
expressly waived by Holdings and each Borrower (and, to the extent provided in any other Loan
Document, any other Loan Party).

ARTICLE 10

THE ADMINISTRATIVE AGENT

Section 10.1 Appointment and Duties. (a) Appointment of Administrative
Agent. Each Lender hereby appoints GE Capital (together with any successor Administrative
Agent pursuant to Section 10.9) as the Administrative Agent hereunder and authorizes the
Administrative Agent to (i) execute and deliver the Loan Documents and Lender Interest Letters,
(ii) accept delivery of the Loan Documents on its behalf from any Group Member, (iii) take such
action on its behalf and to exercise all rights, powers and remedies and perform the duties as are
expressly delegated to the Administrative Agent under such Loan Documents and Lender Interest
Letters and (iv) exercise such powers as are reasonably incidental thereto.

(b) Duties as Collateral and Disbursing Agent. Without limiting the generality of
clause (a) above, the Administrative Agent shall have the sole and exclusive right and
authority (to the exclusion of the Lenders), and is hereby authorized, to (i) act as the disbursing
and collecting agent for the Lenders with respect to all payments and collections arising in
connection with the Loan Documents or Lender Interest Letters (including in any proceeding
described in Section 9.1(e)(ii) or any other bankruptcy, insolvency or similar
proceeding), and each Person making any payment in connection with any Loan Document or any
Lender Interest Letter to any Secured Party is hereby authorized to make such payment to the
Administrative Agent, (ii) file and prove claims and file other documents necessary or desirable to
allow the claims of the Secured Parties with respect to any Obligation in any proceeding described
in Section 9.1(e)(ii) or any other bankruptcy, insolvency or similar proceeding (but not to
vote, consent or otherwise act on behalf of such Secured Party), (iii) act as collateral agent for
each Secured Party for purposes of the perfection of all Liens created by such agreements and all
other purposes stated therein, (iv) manage, supervise and otherwise deal with the Collateral, (v)
take such other action as is necessary or desirable to maintain the perfection and priority of the
Liens created or purported to be created by the Loan Documents, (vi) except as may be otherwise
specified in any Loan Document, exercise all remedies given to the Administrative Agent and the
other Secured Parties with respect to the Collateral, whether under the Loan Documents, Lender
Interest Letters, applicable Requirements of Law or otherwise and (vii) execute any amendment,
consent or waiver under the Loan Documents on behalf of any Lender that has consented in writing to
such amendment, consent or waiver; provided, however, that the Administrative Agent
hereby appoints, authorizes and directs each Lender to act as collateral sub-agent for the
Administrative Agent and the Lenders for purposes of the perfection of all Liens with respect to
the Collateral, including any deposit account maintained by a Loan Party with, and cash and Cash
Equivalents held by, such Lender, and may further authorize and direct the Lenders to take further
actions as collateral sub-agents for purposes of enforcing such Liens or otherwise to transfer the
Collateral subject thereto to the Administrative Agent, and each Lender hereby agrees to take such
further actions to the extent, and only to the extent, so authorized and directed.

 

48

 

(c) Limited Duties. Under the Loan Documents and Lender Interest Letters, the
Administrative Agent (i) is acting solely on behalf of the Lenders (except to the limited extent
provided in Section 2.14(b) with respect to the Register and in Section 10.6), with
duties that are entirely administrative in nature, notwithstanding the use of the defined term
“Administrative Agent”, the terms “agent”, “administrative agent” and “collateral agent” and
similar terms in any Loan Document or any Lender Interest Letter to refer to the Administrative
Agent, which terms are used for title purposes only, (ii) is not assuming any obligation under any
Loan Document or any Lender Interest Letter other than as expressly set forth therein or any role
as agent, fiduciary or trustee of or for any Lender or any other Secured Party and (iii) shall have
no implied functions, responsibilities, duties, obligations or other liabilities under any Loan
Document or any Lender Interest Letter, and each Lender hereby waives and agrees not to assert any
claim against the Administrative Agent based on the roles, duties and legal relationships expressly
disclaimed in clauses (i) through (iii) above.

Section 10.2 Binding Effect. Each Lender agrees that (i) any action taken by
the Administrative Agent or the Required Lenders (or, if expressly required hereby, a greater
proportion of the Lenders) in accordance with the provisions of the Loan Documents and the Lender
Interest Letters, (ii) any action taken by the Administrative Agent in reliance upon the
instructions of Required Lenders (or, where so required, such greater proportion) and (iii) the
exercise by the Administrative Agent or the Required Lenders (or, where so required, such greater
proportion) of the powers set forth herein or therein, together with such other powers as are
reasonably incidental thereto, shall be authorized and binding upon all of the Secured Parties.

Section 10.3 Use of Discretion. (a) No Action without Instructions.
The Administrative Agent shall not be required to
exercise any discretion or take, or to omit to take, any action, including with respect to
enforcement or collection, except any action it is required to take or omit to take (i) under any
Loan Document or any Lender Interest Letter or (ii) pursuant to instructions from the Required
Lenders (or, where expressly required by the terms of this Agreement, a greater proportion of the
Lenders).

(b) Right Not to Follow Certain Instructions. Notwithstanding clause (a)
above, the Administrative Agent shall not be required to take, or to omit to take, any action (i)
unless, upon demand, the Administrative Agent receives an indemnification satisfactory to it from
the Lenders (or, to the extent applicable and acceptable to the Administrative Agent, any other
Secured Party) against all Liabilities that, by reason of such action or omission, may be imposed
on, incurred by or asserted against the Administrative Agent or any Related Person thereof or (ii)
that is, in the opinion of the Administrative Agent or its counsel, contrary to any Loan Document,
any Lender Interest Letter or applicable Requirement of Law.

Section 10.4 Delegation of Rights and Duties. The Administrative Agent may,
upon any term or condition it specifies, delegate or exercise any of its rights, powers and
remedies under, and delegate or perform any of its duties or any other action with respect to, any
Loan Document or any Lender Interest Letter by or through any trustee, co-agent, employee,
attorney-in-fact and any other Person (including any Secured Party). Any such Person shall benefit
from this Article 10 to the extent provided by the Administrative Agent.

 

49

 

Section 10.5 Reliance and Liability. (a) The Administrative Agent may,
without incurring any liability hereunder, (i) rely on the Register to the extent set forth in
Section 2.14, (ii) consult with any of its Related Persons and, whether or not selected by
it, any other advisors, accountants and other experts (including advisors to, and accountants and
experts engaged by, any Loan Party) and (iii) rely and act upon any document and information
(including those transmitted by Electronic Transmission) and any telephone message or conversation,
in each case believed by it to be genuine and transmitted, signed or otherwise authenticated by the
appropriate parties.

(b) None of the Administrative Agent and its Related Persons shall be liable for any action
taken or omitted to be taken by any of them under or in connection with any Loan Document or any
Lender Interest Letter, and each Lender, Holdings and the Borrower hereby waive and shall not
assert (and each of Holdings and the Borrower shall cause each other Loan Party to waive and agree
not to assert) any right, claim or cause of action based thereon, except to the extent of
liabilities resulting primarily from the gross negligence or willful misconduct of the
Administrative Agent or, as the case may be, such Related Person (each as determined in a final,
non-appealable judgment by a court of competent jurisdiction) in connection with the duties
expressly set forth herein. Without limiting the foregoing, the Administrative Agent:

(i) shall not be responsible or otherwise incur liability for any action or omission
taken in reliance upon the instructions of the Required Lenders or for the actions or
omissions of any of its Related Persons selected with reasonable care (other than
employees, officers and directors of the Administrative Agent, when acting on behalf of the
Administrative Agent);

(ii) shall not be responsible to any Secured Party for the due execution, legality,
validity, enforceability, effectiveness, genuineness, sufficiency or
value of, or the attachment, perfection or priority of any Lien created or purported
to be created under or in connection with, any Loan Document or any Lender Interest Letter;

(iii) makes no warranty or representation, and shall not be responsible, to any
Secured Party for any statement, document, information, representation or warranty made or
furnished by or on behalf of any Related Person or any Loan Party in connection with any
Loan Document, any Lender Interest Letter or any transaction contemplated therein or any
other document or information with respect to any Loan Party, whether or not transmitted or
(except for documents expressly required under any Loan Document to be transmitted to the
Lenders) omitted to be transmitted by the Administrative Agent, including as to
completeness, accuracy, scope or adequacy thereof, or for the scope, nature or results of
any due diligence performed by the Administrative Agent in connection with the Loan
Documents or the Lender Interest Letters;

(iv) shall not be responsible or liable for any election to make or not make any
Revolving Loan or any other Loan, regardless of the credit profile of any Borrower or the
Borrowers generally at the time of such Loan, any information known or that should have
been known by the Administrative Agent at the time of such Loan, the Borrowers’ failure to
comply with the terms of this Agreement or any other matter; and

 

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(v) shall not have any duty to ascertain or to inquire as to the performance or
observance of any provision of any Loan Document or any Lender Interest Letter, whether any
condition set forth in any Loan Document is satisfied or waived, as to the financial
condition of any Loan Party or as to the existence or continuation or possible occurrence
or continuation of any Default or Event of Default and shall not be deemed to have notice
or knowledge of such occurrence or continuation unless it has received a notice from the
Borrower or any Lender describing such Default or Event of Default clearly labeled “notice
of default” (in which case the Administrative Agent shall promptly give notice of such
receipt to all Lenders);

and, for each of the items set forth in clauses (i) through (v) above, each Lender,
Holdings and the Borrower hereby waives and agrees not to assert (and each of Holdings and the
Borrower shall cause each other Loan Party to waive and agree not to assert) any right, claim or
cause of action it might have against the Administrative Agent based thereon. Each Lender
acknowledges and agrees that Revolving Loans will be made at the election of the Administrative
Agent, acting in its sole discretion, but the Administrative Agent shall not be liable to any
Lender due to or in connection with such election to make or not make any Revolving Loan and each
Lender completely absolves the Administrative Agent of any responsibility or liability due to or in
connection with such election to make or not make any Revolving Loan.

Section 10.6 Administrative Agent Individually. The Administrative Agent and
its Affiliates may make loans and other extensions of credit to, acquire Stock and Stock
Equivalents of, engage in any kind of business with, any Loan Party or Affiliate thereof as though
it were not acting as Administrative Agent and may receive separate fees and other payments
therefor. To the extent the Administrative Agent or any of its Affiliates makes any Loan or
otherwise becomes a Lender hereunder, it shall have and may exercise the same rights and powers
hereunder and shall be subject to the same obligations and liabilities as any other Lender and the
terms “Lender” and “Required Lender” and any similar terms shall, except where
otherwise expressly provided in any Loan Document, include, without limitation, the
Administrative Agent or such Affiliate, as the case may be, in its individual capacity as Lender,
or as one of the Required Lenders.

Section 10.7 Lender Credit Decision. Each Lender acknowledges that it shall,
independently and without reliance upon the Administrative Agent, any Lender or any of its Related
Persons or upon any document (including the Disclosure Documents) solely or in part because such
document was transmitted by the Administrative Agent or any of its Related Persons, conduct its own
independent investigation of the financial condition and affairs of each Loan Party and make and
continue to make its own credit decisions in connection with entering into, and taking or not
taking any action under, any Loan Document, any Lender Interest Letter or with respect to any
transaction contemplated in any Loan Document or any Lender Interest Letter, in each case based on
such documents and information as it shall deem appropriate. Except for documents expressly
required by any Loan Document or any Lender Interest Letter to be transmitted by the Administrative
Agent to the Lenders, the Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business, prospects, operations,
property, financial and other condition or creditworthiness of any Loan Party or any Affiliate of
any Loan Party that may come in to the possession of the Administrative Agent or any of its Related
Persons.

 

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Section 10.8 Expenses; Indemnities. (a) Each Lender agrees to reimburse the
Administrative Agent and each of its Related Persons (to the extent not reimbursed by any Loan
Party) promptly upon demand for such Lender’s Pro Rata Share of any costs and expenses (including
fees, charges and disbursements of financial, legal and other advisors and Other Taxes paid in the
name of, or on behalf of, any Loan Party) that may be incurred by the Administrative Agent or any
of its Related Persons in connection with the preparation, syndication, execution, delivery,
administration, modification, consent, waiver or enforcement (whether through negotiations, through
any work-out, bankruptcy, restructuring or other legal or other proceeding or otherwise) of, or
legal advice in respect of its rights or responsibilities under, any Loan Document or any Lender
Interest Letter.

(b) Each Lender further agrees to indemnify the Administrative Agent and each of its Related
Persons (to the extent not reimbursed by any Loan Party), from and against such Lender’s aggregate
Pro Rata Share of the Liabilities (including taxes, interests and penalties imposed for not
properly withholding or backup withholding on payments made to on or for the account of any Lender)
that may be imposed on, incurred by or asserted against the Administrative Agent or any of its
Related Persons in any matter relating to or arising out of, in connection with or as a result of
any Loan Document, any Lender Interest Letter or any other act, event or transaction related,
contemplated in or attendant to any such document, or, in each case, any action taken or omitted to
be taken by the Administrative Agent or any of its Related Persons under or with respect to any of
the foregoing; provided, however, that no Lender shall be liable to the
Administrative Agent or any of its Related Persons to the extent such liability has resulted
primarily from the gross negligence or willful misconduct of the Administrative Agent or, as the
case may be, such Related Person, as determined by a court of competent jurisdiction in a final
non-appealable judgment or order.

(c) To the extent required by any applicable law, the Administrative Agent may withhold from
any payment to any Lender an amount equivalent to any applicable withholding Tax. If any payment
has been made to any Lender by the Administrative Agent
without the applicable withholding Tax being withheld from such payment and the Administrative
Agent has paid over the applicable withholding Tax to the Internal Revenue Service or any other
Governmental Authority, or the Internal Revenue Service or any other Governmental Authority asserts
a claim that the Administrative Agent did not properly withhold Tax from amounts paid to or for the
account of any Lender because the appropriate form was not delivered or was not properly executed
or because such Lender failed to notify the Administrative Agent of a change in circumstance which
rendered the exemption from, or reduction of, withholding Tax ineffective or for any other reason,
such Lender shall indemnify the Administrative Agent fully for all amounts paid, directly or
indirectly, by the Administrative Agent as Tax or otherwise, including any penalties or interest
and together with all expenses (including legal expenses, allocated internal costs and
out-of-pocket expenses) incurred.

Section 10.9 Resignation of Administrative Agent. (a) The Administrative
Agent may resign at any time by delivering notice of such resignation to the Lenders and the
Borrower, effective on the earlier to occur of (i) the expiration of thirty (30) days after such
notice is delivered, (ii) the appointment by retiring Administrative Agent of a successor
Administrative Agent from among the Lenders (as provided for below) and (iii) the appointment by
the Required Lenders of a successor Administrative Agent (as provided for below). If the
Administrative Agent delivers any such notice, the Required Lenders shall have the right to appoint
a successor Administrative Agent. If, within 30 days after the retiring Administrative Agent
having given notice of resignation, no successor Administrative Agent has been appointed by the
Required Lenders that has accepted such appointment, then the retiring Administrative Agent may, on
behalf of the Lenders, appoint a successor Administrative Agent. Each appointment under this
clause (a) shall be subject to the prior consent of the Borrower, which consent may not be
unreasonably withheld, delayed or conditioned, but which shall not be required during the
continuance of an Event of Default.

 

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(b) Effective immediately upon its resignation, (i) the retiring Administrative Agent shall be
discharged from its duties and obligations under the Loan Documents and the Lender Interest
Letters, (ii) the Lenders shall assume and perform all of the duties of the Administrative Agent
until a successor Administrative Agent shall have accepted a valid appointment hereunder, (iii) the
retiring Administrative Agent and its Related Persons shall no longer have the benefit of any
provision of any Loan Document or any Lender Interest Letter other than with respect to any actions
taken or omitted to be taken while such retiring Administrative Agent was, or because such
Administrative Agent had been, validly acting as Administrative Agent under the Loan Documents and
the Lender Interest Letters and (iv) subject to its rights under Section 10.3, the retiring
Administrative Agent shall take such action as may be reasonably necessary to assign to the
successor Administrative Agent its rights as Administrative Agent under the Loan Documents and the
Lender Interest Letters. Effective immediately upon its acceptance of a valid appointment as
Administrative Agent, a successor Administrative Agent shall succeed to, and become vested with,
all the rights, powers, privileges and duties of the retiring Administrative Agent under the Loan
Documents and the Lender Interest Letters.

Section 10.10 Release of Collateral or Guarantors. Each Lender hereby
consents to the automatic release and hereby directs the Administrative Agent to release (or, in
the case of clause (b)(ii) below, release or subordinate) the following:

(a) any Subsidiary of the Borrower from its guaranty of any Obligation of any Loan Party if
all of the Securities of such Subsidiary owned by any Group Member are Sold in a Sale permitted
under the Loan Documents (including pursuant to a waiver or consent), to the extent that, after
giving effect to such Sale, such Subsidiary would not be a Borrower hereunder or required to
guaranty any Obligations; and

(b) any Lien held by the Administrative Agent for the benefit of the Secured Parties against
(i) any Collateral that is Sold by a Loan Party in a Sale permitted by the Loan Documents
(including pursuant to a valid waiver or consent) and (ii) all of the Collateral and all Loan
Parties, upon (A) termination of the Commitments, (B) payment and satisfaction in full of all Loans
and all other Obligations that the Administrative Agent has been notified in writing are then due
and payable by the holder of such Obligation, (C) deposit of cash collateral with respect to all
contingent Obligations (excluding contingent Obligations as to which no claim has been asserted),
in amounts and on terms and conditions and with parties reasonably satisfactory to the
Administrative Agent and each Indemnitee that is owed such Obligations and (D) to the extent
requested by the Administrative Agent, receipt by the Secured Parties of liability releases from
the Loan Parties each in form and substance acceptable to the Administrative Agent.

Each Lender hereby directs the Administrative Agent, and the Administrative Agent hereby agrees,
upon receipt of reasonable advance notice from the Borrower, to execute and deliver or file such
documents and to perform other actions reasonably necessary to release the guaranties and Liens
when and as directed in this Section 10.10.

 

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ARTICLE 11

MISCELLANEOUS

Section 11.1 Amendments, Waivers, Etc. (a) No amendment or waiver of any
provision of any Loan Document and no consent to any departure by any Loan Party therefrom shall be
effective unless the same shall be in writing and signed by the Required Lenders (or by the
Administrative Agent with the consent of the Required Lenders) and the Borrower; provided,
however, that no amendment, consent or waiver shall, unless in writing and signed by each
Lender directly affected thereby (or by the Administrative Agent with the consent of such Lender),
in addition to any other Person the signature of which is otherwise required pursuant to any Loan
Document, do any of the following:

(i) increase the Commitment of such Lender or subject such Lender to any additional
obligation;

(ii) reduce (A) the principal amount of, the interest rate on, or any obligation of
the Borrower to repay (whether or not on a fixed date), any outstanding Loan owing to such
Lender, or (B) any accrued interest payable to such Lender; provided,
however, that this clause (ii) does not apply to (x) any change to any
provision increasing any interest rate or fee during the continuance of an Event of Default
or to any payment of any such increase or (y) any modification to any financial covenant
set forth in Article 5 or in any definition set forth therein or principally used
therein;

(iii) except as expressly set forth in this Agreement, waive or postpone any scheduled
maturity date or other scheduled date fixed for the payment, in
whole or in part, of principal of or interest on any Loan or fee owing to such Lender
or for the reduction of such Lender’s Commitment;

(iv) except as provided in Section 10.10, release all or substantially all of
the Collateral or any Guarantor from its guaranty of any Obligation of the Borrower;

(v) reduce or increase the proportion of Lenders required for the Lenders (or any
subset thereof) to take any action hereunder or change the definition of the terms
“Required Lenders” or “Pro Rata Share”; or

(vi) amend Section 2.4 (Reallocation of Loans), Section 2.7 (Optional
Prepayments), Section 2.8 (Mandatory Repayments), Section 2.12 (Application
of Payments), Section 10.10 (Release of Collateral or Guarantors), Section
11.9 (Sharing of Payments, Etc.) or this Section 11.1;

and provided, further, that (y) no amendment, waiver or consent shall affect the
rights or duties under any Loan Document of, or any payment to, the Administrative Agent (or
otherwise modify any provision of Article 10 or the application thereof), unless in writing
and signed by the Administrative Agent in addition to any signature otherwise required and (z) the
consent of the Borrower shall not be required to change any order of priority set forth in
Section 2.12.

(b) Each waiver or consent under any Loan Document shall be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or demand on any Loan
Party shall entitle any Loan Party to any notice or demand in the same, similar or other
circumstances. No failure on the part of any Secured Party to exercise, and no delay in
exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the exercise of any
other right.

 

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Section 11.2 Assignments and Participations; Binding Effect. (a) Binding
Effect. This Agreement shall become effective when it shall have been executed by Holdings,
the Borrower and the Administrative Agent and when the Administrative Agent shall have been
notified by each Lender that such Lender has executed it. Thereafter, it shall be binding upon and
inure to the benefit of, but only to the benefit of, Holdings, the Borrower (in each case except
for Article 10), the Administrative Agent, each Lender and each other Indemnitee and, in
each case, their respective successors and permitted assigns. Except as expressly provided in any
Loan Document (including in Section 10.9), none of Holdings, the Borrower or the
Administrative Agent shall have the right to assign any rights or obligations hereunder or any
interest herein.

(b) Right to Assign. Each Lender may sell, transfer, negotiate or assign all or a
portion of its rights and obligations hereunder (including all or a portion of its Commitments and
its rights and obligations with respect to Loans) to (i) any existing Lender (other than a
Non-Funding Lender), (ii) any Affiliate or Approved Fund of any existing Lender (other than a
Non-Funding Lender) or (iii) any other Person (other than the Borrower Representative or its
Affiliates) acceptable (which acceptance shall not be unreasonably withheld or delayed) to the
Administrative Agent and, so long as no Event of Default is continuing, the Borrower
Representative; provided, however, that (x) the aggregate outstanding principal
amount (determined as of the effective date of the applicable Assignment) of the Loans, and
Commitments subject to any such Sale shall be in a minimum amount of $1,000,000, unless such Sale
is made to an existing Lender or an Affiliate or Approved Fund of any existing Lender, is of the
assignor’s (together with its Affiliates and Approved Funds) entire interest or is made with the
prior consent of the Administrative Agent and (y) such Sales by Lenders who are Non-Funding Lenders
due to clause (a) of the definition of Non-Funding Lender shall be subject to the
Administrative Agent’s prior written consent in all instances, unless in connection with such sale,
such Non-Funding Lender cures, or causes the cure of, its Non-Funding Lender status. The
Administrative Agent’s refusal to accept a Sale to a Loan Party, an Affiliate of a Loan Party, or
to a Person that would be (or could reasonably be expected to become) a Non-Funding Lender, or the
imposition of conditions or limitations (including limitations on voting) upon Sales to such
Persons, shall not be deemed to be unreasonable.

(c) Procedure. The parties to each Sale made in reliance on clause (b) above
shall execute and deliver to the Administrative Agent an Assignment via an electronic settlement
system designated by the Administrative Agent (or if previously agreed with the Administrative
Agent, via a manual execution and delivery of the assignment) evidencing such Sale, any tax forms
required to be delivered pursuant to Section 2.17(e) and payment of an assignment fee in
the amount of $3,500, provided that (1) if a Sale by a Lender is made to an Affiliate or an
Approved Fund of such assigning Lender, then no assignment fee shall be due in connection with such
Sale, and (2) if a Sale by a Lender is made to an assignee that is not an Affiliate or Approved
Fund of such assignor Lender, and concurrently to one or more Affiliates or Approved Funds of such
assignee, then only one assignment fee of $3,500 shall be due in connection with such Sale. Upon
receipt of all the foregoing, and conditioned upon such receipt and, if such assignment is made in
accordance with Section 11.2(b)(iii), upon the Administrative Agent consenting to such
Assignment, from and after the effective date specified in such Assignment, the Administrative
Agent shall record or cause to be recorded in the Register the information contained in such
Assignment.

 

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(d) Effectiveness. Subject to the recording of an Assignment by the Administrative
Agent in the Register pursuant to Section 2.14(b), (i) the assignee thereunder shall become
a party hereto and, to the extent that rights and obligations under the Loan Documents have been
assigned to such assignee pursuant to such Assignment, shall have the rights and obligations of a
Lender and (ii) the assignor thereunder shall, to the extent that rights and obligations under this
Agreement have been assigned by it pursuant to such Assignment, relinquish its rights (except for
those surviving the termination of the Commitments and the payment in full of the Obligations) and
be released from its obligations under the Loan Documents, other than those relating to events or
circumstances occurring prior to such assignment (and, in the case of an Assignment covering all or
the remaining portion of an assigning Lender’s rights and obligations under the Loan Documents,
such Lender shall cease to be a party hereto except that each Lender agrees to remain bound by
Article 10, Section 11.8 (Right of Setoff) and Section 11.9
(Sharing of Payments).

(e) Grant of Security Interests. In addition to the other rights provided in this
Section 11.2, each Lender may grant a security interest in, or otherwise assign as
collateral, any of its rights under this Agreement, whether now owned or hereafter acquired
(including rights to payments of principal or interest on the Loans), to (A) any federal reserve
bank (pursuant to Regulation A of the Federal Reserve Board), without notice to the Administrative
Agent or (B) any holder of, or trustee for the benefit of the holders of, such Lender’s Securities
by notice to the Administrative Agent; provided, however, that no such holder or trustee,
whether because of such grant or assignment or any foreclosure thereon (unless such foreclosure is
made through an assignment in accordance with clause (b) above), shall be entitled to any
rights of such Lender hereunder and no such Lender shall be relieved of any of its obligations
hereunder.

Section 11.3 Costs and Expenses. Any action taken by any Loan Party under or
with respect to any Loan Document, even if required under any Loan Document or at the request of
any Secured Party, shall be at the expense of such Loan Party, and no Secured Party shall be
required under any Loan Document to reimburse any Loan Party or Group Member therefor except as
expressly provided therein. In addition, the Borrowers and Holdings agree to pay or reimburse upon
demand (a) the Administrative Agent for all reasonable out-of-pocket costs and expenses incurred by
it or any of its Related Persons in connection with the investigation, development, preparation,
negotiation, syndication, execution, interpretation or administration of, any modification of any
term of or termination of, any Loan Document, any Lender Interest Letter, any commitment or
proposal letter therefor, any other document prepared in connection therewith or the consummation
and administration of any transaction contemplated therein (including periodic audits in connection
therewith and environmental audits and assessments), in each case including the reasonable fees,
charges and disbursements of legal counsel to the Administrative Agent or such Related Persons,
fees, costs and expenses incurred in connection with COMS® or any other E-System and
allocated to the credit facilities contemplated by this Agreement by the Administrative Agent in
its sole discretion and fees, charges and disbursements of the auditors, appraisers, printers and
other of their Related Persons retained by or on behalf of any of them or any of their Related
Persons, (b) the Administrative Agent for all reasonable costs and expenses incurred by it or any
of its Related Persons in connection with internal audit reviews, field examinations and Collateral
examinations (which shall be reimbursed, in addition to the out-of-pocket costs and expenses of
such examiners, at the per diem rate per individual charged by the Administrative Agent for its
examiners), (c) each of the Administrative Agent and its Related Persons for all costs and expenses
incurred in connection with (i) any refinancing or restructuring of the credit arrangements
provided hereunder in the nature of a “work-out”, (ii) the enforcement or preservation of any right
or remedy under any Loan Document, any Obligation, with respect to the Collateral or any other
related right or remedy or (iii) the commencement, defense, conduct of, intervention in, or the
taking of any other action with respect to, any proceeding (including any bankruptcy or insolvency
proceeding) related to any Group Member, Loan Document, Obligation (or the response to and
preparation for any subpoena or request for document production relating thereto) and (d) fees and
disbursements of one law firm on behalf of all Lenders (other than the Administrative Agent)
incurred in connection with any matters referred to in clause (c) above.

 

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Section 11.4 Indemnities. The Borrower agrees to indemnify, hold harmless and
defend the Administrative Agent, each Lender and each of their respective Related Persons (each
such Person being an “Indemnitee”) from and against all Liabilities (including brokerage
commissions, fees and other compensation) that may be imposed on, incurred by or asserted against
any such Indemnitee in any matter relating to or arising out of, in connection with or as a result
of (i) any Loan Document, any Disclosure Document, any Obligation (or the repayment thereof), the
use or intended use of the proceeds of any Loan, or any securities filing of, or with respect to,
any Group Member, (ii) any commitment letter, proposal letter or term sheet with any Person or any
Contractual Obligation, arrangement or understanding with any broker, finder or consultant, in each
case entered into by or on behalf of any Group Member or any Affiliate of any of them in connection with any of the foregoing and
any Contractual Obligation entered into in connection with any E-Systems or other Electronic
Transmissions, (iii) any actual or prospective investigation, litigation or other proceeding,
whether or not brought by any such Indemnitee or any of its Related Persons, any holders of
Securities or creditors (and including attorneys’ fees in any case), whether or not any such
Indemnitee, Related Person, holder or creditor is a party thereto, and whether or not based on any
securities or commercial law or regulation or any other Requirement of Law or theory thereof,
including common law, equity, contract, tort or otherwise, or (iv) any other act, event or
transaction related, contemplated in or attendant to any of the foregoing (collectively, the
“Indemnified Matters”); provided, however, that the Borrower shall not have
any liability under this Section 11.4 to any Indemnitee with respect to any Indemnified
Matter, and no Indemnitee shall have any liability with respect to any Indemnified Matter other
than (to the extent otherwise liable), to the extent such liability has resulted primarily from the
gross negligence or willful misconduct of such Indemnitee, as determined by a court of competent
jurisdiction in a final non-appealable judgment or order. Furthermore, each of Holdings and the
Borrower waives and agrees not to assert against any Indemnitee, and shall cause each other Loan
Party to waive and not assert against any Indemnitee, any right of contribution with respect to any
Liabilities that may be imposed on, incurred by or asserted against any Related Person.

Section 11.5 Survival. Any indemnification or other protection provided to
any Indemnitee pursuant to any Loan Document (including pursuant to Section 2.17
(Taxes), Section 2.16 (Breakage Costs), Article 10 (The
Administrative Agent), Section 11.3 (Costs and Expenses), Section 11.4
(Indemnities) or this Section 11.5) and all representations and warranties made in
any Loan Document shall (A) survive the termination of the Commitments and the payment in full of
other Obligations and (B) inure to the benefit of any Person that at any time held a right
thereunder (as an Indemnitee or otherwise) and, thereafter, its successors and permitted assigns.

 

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Section 11.6 Limitation of Liability for Certain Damages. In no event shall
any Indemnitee be liable on any theory of liability for any special, indirect, consequential or
punitive damages (including any loss of profits, business or anticipated savings). Each of
Holdings and the Borrower hereby waives, releases and agrees (and shall cause each other Loan Party
to waive, release and agree) not to sue upon any such claim for any special, indirect,
consequential or punitive damages, whether or not accrued and whether or not known or suspected to
exist in its favor.

Section 11.7 Lender-Creditor Relationship. The relationship between the
Lenders and the Administrative Agent, on the one hand, and the Loan Parties, on the other hand, is
solely that of lender and creditor. No Secured Party has any fiduciary relationship or duty to any
Loan Party arising out of or in connection with, and there is no agency, tenancy or joint venture
relationship between the Secured Parties and the Loan Parties by virtue of, any Loan Document or
any transaction contemplated therein.

Section 11.8 Right of Setoff. Each of the Administrative Agent, each Lender
and each Affiliate (including each branch office thereof) of any of them is hereby authorized,
without notice or demand (each of which is hereby waived by Holdings and the Borrower), at any time
and from time to time during the continuance of any Event of Default and to the fullest extent
permitted by applicable Requirements of Law, to set off and apply any and all deposits (whether general or special,
time or demand, provisional or final) at any time held and other Indebtedness, claims or other
obligations at any time owing by the Administrative Agent, such Lender or any of their respective
Affiliates to or for the credit or the account of Holdings or the Borrower against any Obligation
of any Loan Party now or hereafter existing, whether or not any demand was made under any Loan
Document with respect to such Obligation and even though such Obligation may be unmatured. Each of
the Administrative Agent and each Lender agrees promptly to notify the Borrower and the
Administrative Agent after any such setoff and application made by such Lender or its Affiliates;
provided, however, that the failure to give such notice shall not affect the
validity of such setoff and application. The rights under this Section 11.8 are in
addition to any other rights and remedies (including other rights of setoff) that the
Administrative Agent, the Lenders and their Affiliates and other Secured Parties may have.

Section 11.9 Sharing of Payments, Etc. If any Lender, directly or through an
Affiliate or branch office thereof, obtains any payment of any Obligation of any Loan Party
(whether voluntary, involuntary or through the exercise of any right of setoff or the receipt of
any Collateral or “proceeds” (as defined under the applicable UCC) of Collateral) other
than pursuant to Sections 2.16 (Breakage Costs), 2.17 (Taxes),
2.18 (Substitution of Lenders) and 11.2 (Assignments and
Participations; Binding Effect) and such payment exceeds the amount such Lender would have been
entitled to receive if all payments had gone to, and been distributed by, the Administrative Agent
in accordance with the provisions of the Loan Documents and the Lender Interest Letters, such
Lender shall purchase for cash from other Secured Parties such participations in their Obligations
as necessary for such Lender to share such excess payment with such Secured Parties to ensure such
payment is applied as though it had been received by the Administrative Agent and applied in
accordance with this Agreement (or, if such application would then be at the discretion of the
Borrower, applied to repay the Obligations in accordance herewith); provided,
however, that (a) if such payment is rescinded or otherwise recovered from such Lender in
whole or in part, such purchase shall be rescinded and the purchase price therefor shall be
returned to such Lender without interest and (b) such Lender shall, to the fullest extent permitted
by applicable Requirements of Law, be able to exercise all its rights of payment (including the
right of setoff) with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation. If a Non-Funding Lender receives any
such payment as described in the previous sentence, such Lender shall turn over such payments to
Agent.

 

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Section 11.10 Marshaling; Payments Set Aside. No Secured Party shall be under
any obligation to marshal any property in favor of any Loan Party or any other party or against or
in payment of any Obligation. To the extent that any Secured Party receives a payment from the
Borrower, from the proceeds of the Collateral, from the exercise of its rights of setoff, any
enforcement action or otherwise, and such payment is subsequently, in whole or in part,
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a
trustee, receiver or any other party, then to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied, and all Liens, rights and remedies therefor, shall be
revived and continued in full force and effect as if such payment had not occurred.

Section 11.11 Notices. (a) Addresses. All notices, demands,
requests, directions and other communications required or expressly authorized to be made by this Agreement shall, whether or not specified to be in
writing but unless otherwise expressly specified to be given by any other means, be given in
writing and (i) addressed to (A) if to Holdings or the Borrower, to Rush Enterprises, Inc., 555 IH
35 South, Suite 500, New Braunfels, Texas 78130, Attention: Steven Keller, Chief Financial
Officer, Tel: (830) 626-5256, Fax: (830) 626-5307, with copy to Rush Enterprises, Inc., 555 IH 35
South, Suite 500, New Braunfels, Texas 78130, Attention: Derrek Weaver, General Counsel, Tel:
(830) 626-5929, Fax: (830) 626-5307, (B) if to the Administrative Agent, to General Electric
Capital Corporation, 300 E. John W. Carpenter Freeway, Suite 510, Irving, TX 75062, Attention:
Randy Talley/Rush Enterprises Account Manager, Tel: (972) 830-6621, Fax: (972) 830-6620, with copy
to General Electric Capital Corporation, 300 E. John W. Carpenter Freeway, Suite 510, Irving, TX
75062, Attention: Matthew J. Cleaves/Associate General Counsel, Tel: (469) 586-2044, Fax: (469)
519-4014 and (C) otherwise to the party to be notified at its address specified opposite its name
on Schedule II or on the signature page of any applicable Assignment, or (ii) addressed to
such other address as shall be notified in writing (A) in the case of the Borrower and the
Administrative Agent, to the other parties hereto and (B) in the case of all other parties, to the
Borrower and the Administrative Agent; provided that (x) any Request for Equipment Borrowing with
respect to any franchised or name brand Inventory shall be given by facsimile or email and
addressed to General Electric Capital Corporation, Attention: Sherri Long, Tel: 972-830-6074, Fax:
866-205-6336, email: Sherri.A.Long@ge.com,(y) any manufacturer of Inventory may provide notice of a
sale of such Inventory to a Borrower and a related New Equipment Loan by use of the
COMS® system and (z) any Request for Working Capital Borrowing or Request for Equipment
Borrowing not made pursuant to clause (x) or clause (y) shall be given by email or fax to the
Administrative Agent as provided in clause (i)(B) above.

(b) Effectiveness. All communications described in clause (a) above and all
other notices, demands, requests and other communications made in connection with this Agreement
shall be effective and be deemed to have been received (i) if delivered by hand, upon personal
delivery, (ii) if delivered by overnight courier service, one Business Day after delivery to such
courier service, (iii) if delivered by mail, when deposited in the mails, (iv) if delivered by
facsimile (other than to post to an E-System pursuant to clause (a)(v) below), upon
sender’s receipt of confirmation of proper transmission, and (v) if delivered by posting to any
E-System, on the later of the date of such posting in an appropriate location and the date access
to such posting is given to the recipient thereof in accordance with the standard procedures
applicable to such E-System; provided, however, that no communications to the
Administrative Agent pursuant to Article 2 or Article 10 shall be effective until
received by the Administrative Agent.

 

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Section 11.12 Electronic Transmissions. (a) Authorization. Subject to the provisions of
Section 11.11(a), each of the Administrative Agent, the Borrower, the Lenders and each of
their Related Persons is authorized (but not required) to transmit, post or otherwise make or
communicate, in its sole discretion, Electronic Transmissions in connection with any Loan Document
and the transactions contemplated therein. Each of Holdings, each Borrower and each Secured Party
hereby acknowledges and agrees, and each of Holdings and each Borrower shall cause each other Group
Member to acknowledge and agree, that the use of Electronic Transmissions is not necessarily secure
and that there are risks associated with such use, including risks of interception, disclosure and
abuse and each indicates it assumes and accepts such risks by hereby authorizing the transmission
of Electronic Transmissions.

(b) Signatures. Subject to the provisions of Section 11.11(a), (i)(A) no
posting to any E-System shall be denied legal effect merely because it is made electronically, (B)
each PDF or other digital signature on any such posting shall be deemed sufficient to satisfy any
requirement for a “signature” and (C) each such posting shall be deemed sufficient to satisfy any
requirement for a “writing”, in each case including pursuant to any Loan Document, any applicable
provision of any UCC, the federal Uniform Electronic Transactions Act, the Electronic Signatures in
Global and National Commerce Act and any substantive or procedural Requirement of Law governing
such subject matter, (ii) each such posting that is not readily capable of bearing either a
signature or a reproduction of a signature may be signed, and shall be deemed signed, by attaching
to, or logically associating with such posting, a PDF or other digital signature, upon which each
Secured Party and Loan Party may rely and assume the authenticity thereof, (iii) each such posting
containing a signature, a reproduction of a signature or a PDF or other digital signature shall,
for all intents and purposes, have the same effect and weight as a signed paper original and (iv)
each party hereto or beneficiary hereto agrees not to contest the validity or enforceability of any
posting on any E-System or PDF or other digital signature on any such posting under the provisions
of any applicable Requirement of Law requiring certain documents to be in writing or signed;
provided, however, that nothing herein shall limit such party’s or beneficiary’s
right to contest whether any posting to any E-System or PDF or other digital signature has been
altered after transmission.

(c) Separate Agreements. All uses of an E-System (including, without limitation, the
COMS®  system) shall be governed by and subject to, in addition to Section
11.11 and this Section 11.12, separate terms and conditions posted or referenced in
such E-System and related Contractual Obligations executed by Secured Parties and Group Members in
connection with the use of such E-System.

(d) Limitation of Liability. All E-Systems and Electronic Transmissions shall be
provided “as is” and “as available”. None of Administrative Agent or any of its Related Persons
warrants the accuracy, adequacy or completeness of any E-Systems or Electronic Transmission, and
each disclaims all liability for errors or omissions therein. No warranty of any kind is made by
the Administrative Agent or any of its Related Persons in connection with any E-Systems or
Electronic Transmission, including any warranty of merchantability, fitness for a particular
purpose, non-infringement of third-party rights or freedom from viruses or other code defects.
Each of Holdings, the Borrower and each Secured Party agrees (and each of Holdings and the Borrower
shall cause each other Loan Party to agree) that the Administrative Agent has no responsibility for
maintaining or providing any equipment, software, services or any testing required in connection
with any Electronic Transmission or otherwise required for any E-System.

 

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Section 11.13 GOVERNING LAW. THIS AGREEMENT, EACH OTHER LOAN DOCUMENT THAT
DOES NOT EXPRESSLY SET FORTH ITS APPLICABLE LAW, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HERETO AND THERETO SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW
OF THE STATE OF NEW YORK.

Section 11.14 JURISDICTION. (a) SUBMISSION TO JURISDICTION. ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO ANY LOAN DOCUMENT SHALL BE BROUGHT EXCLUSIVELY IN THE
COURTS OF THE STATE OF NEW YORK LOCATED IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, OR OF THE
UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF
HOLDINGS AND THE BORROWER HEREBY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND
UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS; PROVIDED, THAT NOTHING IN THIS
AGREEMENT SHALL LIMIT THE RIGHT OF ADMINISTRATIVE AGENT TO COMMENCE ANY PROCEEDING IN THE FEDERAL
OR STATE COURTS OF ANY OTHER JURISDICTION TO THE EXTENT ADMINISTRATIVE AGENT DETERMINES THAT SUCH
ACTION IS NECESSARY OR APPROPRIATE TO EXERCISE ITS RIGHTS OR REMEDIES UNDER THE LOAN DOCUMENTS.
THE PARTIES HERETO (AND, TO THE EXTENT SET FORTH IN ANY OTHER LOAN DOCUMENT, EACH OTHER LOAN PARTY)
HEREBY IRREVOCABLY WAIVE ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON
THE GROUNDS OF FORUM NON CONVENIENS, THAT ANY OF THEM MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF
ANY SUCH ACTION OR PROCEEDING IN SUCH JURISDICTIONS.

(b) SERVICE OF PROCESS. EACH OF HOLDINGS AND BORROWER (AND, TO THE EXTENT SET FORTH
IN ANY OTHER LOAN DOCUMENT, EACH OTHER LOAN PARTY) HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF
ANY AND ALL LEGAL PROCESS, SUMMONS, NOTICES AND OTHER DOCUMENTS AND OTHER SERVICE OF PROCESS OF ANY
KIND AND CONSENTS TO SUCH SERVICE IN ANY SUIT, ACTION OR PROCEEDING BROUGHT IN THE UNITED STATES OF
AMERICA WITH RESPECT TO OR OTHERWISE ARISING OUT OF OR IN CONNECTION WITH ANY LOAN DOCUMENT BY ANY
MEANS PERMITTED BY APPLICABLE REQUIREMENTS OF LAW, INCLUDING BY THE MAILING THEREOF (BY REGISTERED
OR CERTIFIED MAIL, POSTAGE PREPAID) TO THE ADDRESS OF BORROWER SPECIFIED IN SECTION 11.11
(AND SHALL BE EFFECTIVE WHEN SUCH MAILING SHALL BE EFFECTIVE, AS PROVIDED THEREIN). EACH OF
HOLDINGS AND THE BORROWER (AND, TO THE EXTENT SET FORTH IN ANY OTHER LOAN DOCUMENT, EACH OTHER LOAN
PARTY) AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.

(c) NON-EXCLUSIVE JURISDICTION. NOTHING CONTAINED IN THIS SECTION 11.14 SHALL
AFFECT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE REQUIREMENTS OF LAW OR COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED
AGAINST ANY LOAN PARTY IN ANY OTHER JURISDICTION.

 

61

 

Section 11.15 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO, OR DIRECTLY OR INDIRECTLY
ARISING OUT OF, UNDER OR IN CONNECTION WITH, ANY LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
THEREIN OR RELATED THERETO (WHETHER FOUNDED IN CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
HERETO (A) CERTIFIES THAT NO OTHER PARTY AND NO RELATED PERSON OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THE LOAN
DOCUMENTS, AS APPLICABLE, BY THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.15.

Section 11.16  Severability. Any provision of any Loan Document being
held illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such
provision not held illegal, invalid or unenforceable, any other provision of any Loan Document or
any part of such provision in any other jurisdiction.

Section 11.17 Execution in Counterparts. This Agreement may be executed in
any number of counterparts and by different parties in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall constitute one and
the same agreement. Signature pages may be detached from multiple separate counterparts and
attached to a single counterpart. Delivery of an executed signature page of this Agreement by
facsimile transmission or Electronic Transmission shall be as effective as delivery of a manually
executed counterpart hereof.

Section 11.18 Entire Agreement. The Loan Documents and Lender Interest
Letters embody the entire agreement of the parties and supersede all prior agreements and
understandings relating to the subject matter thereof and any prior letter of interest, commitment
letter, fee letter, confidentiality and similar agreements involving any Loan Party and any of the
Administrative Agent or any Lender or any of their respective Affiliates relating to a financing of
substantially similar form, purpose or effect, including without limitation, that certain Amended
and Restated Wholesale Security Agreement, dated as of August 1, 2007 (the “Wholesale Security
Agreement”), by and among GE Capital and the Borrowers party thereto. For the avoidance of
doubt, this Agreement shall not be deemed to be an extension, amendment and restatement, or other
modification of the Wholesale Security Agreement. In the event of any conflict between the terms
of this Agreement and any other Loan Document, the terms of this Agreement shall govern (unless
such terms of such other Loan Documents are necessary to comply with applicable Requirements of
Law, in which case such terms shall govern to the extent necessary to comply therewith).

Section 11.19 Use of Name. Each of Holdings and the Borrower agrees, and
shall cause each other Loan Party to agree, that it shall not, and none of its Affiliates shall,
issue any press release or other public disclosure (other than any document filed with any
Governmental Authority (i) relating to a public offering of the Securities of any Loan Party or
(ii) pursuant to the Securities Exchange Act of 1934, as amended) using the name, logo or otherwise
referring to GE Capital or of any of its Affiliates, the Loan Documents or any transaction
contemplated therein to which the Secured Parties are party without at least 2 Business Days’ prior
notice to GE Capital and without the prior consent of GE Capital except to the extent required to
do so under applicable Requirements of Law and then, only after consulting with GE Capital prior
thereto (any such consultation not to be required more than once with respect to duplicate
references).

 

62

 

Section 11.20 Non-Public Information; Confidentiality. (a) Each Lender
acknowledges and agrees that it may receive material non-public information hereunder concerning
the Loan Parties and their Affiliates and Securities and agrees to use such information
in compliance with all relevant policies, procedures and Contractual Obligations and
applicable Requirements of Laws (including United States federal and state security laws and
regulations).

(b) Each Lender and the Administrative Agent agrees to use all reasonable efforts to maintain,
in accordance with its customary practices, the confidentiality of information obtained by it
pursuant to any Loan Document and designated in writing by any Loan Party as confidential, except
that such information may be disclosed (i) with the Borrower’s consent, (ii) to Related Persons of
such Lender or the Administrative Agent, as the case may be, that are advised of the confidential
nature of such information and are instructed to keep such information confidential in accordance
with the terms hereof, (iii) to the extent such information presently is or hereafter becomes (A)
publicly available other than as a result of a breach of this Section 11.20 or (B)
available to such Lender or the Administrative Agent or any of their Related Persons, as the case
may be, from a source (other than any Loan Party) not known to them to be subject to disclosure
restrictions, (iv) to the extent disclosure is required by applicable Requirements of Law or other
legal process or requested or demanded by any Governmental Authority, (v) to the extent necessary
or customary for inclusion in league table measurements or in any tombstone or other advertising
materials (and the Loan Parties consent to the publication of such tombstone or other advertising
materials by the Administrative Agent, any Lender or any of their Related Persons), (vi) to the
National Association of Insurance Commissioners or any similar organization, any examiner or any
nationally recognized rating agency or otherwise to the extent consisting of general portfolio
information that does not identify Loan Parties, (vii) to current or prospective assignees,
grantees of any option described in Section 11.2 or participants, direct or contractual
counterparties to any swap agreement permitted hereunder and to their respective Related Persons,
in each case to the extent such assignees, participants, counterparties or Related Persons agree to
be bound by provisions substantially similar to the provisions of this Section 11.20 (and
such Person may disclose information to their respective Related Persons in accordance with
clause (ii) above), (viii) to any other party hereto and (ix) in connection with the
exercise or enforcement of any right or remedy under any Loan Document, in connection with any
litigation or other proceeding to which such Lender or the Administrative Agent or any of their
Related Persons is a party or bound, to the extent necessary to respond to public statements or
disclosures by Loan Parties or their Related Persons referring to a Lender or the Administrative
Agent or any of their Related Persons. In the event of any conflict between the terms of this
Section 11.20 and those of any other Contractual Obligation entered into with any Loan
Party (whether or not a Loan Document), the terms of this Section 11.20 shall govern. Any
Person required to maintain the confidentiality of information as provided in this Section
11.20 shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord its own confidential information.

 

63

 

(c) Notwithstanding the foregoing, Administrative Agent may receive from and disclose to any
individual, corporation, business trust, association, company, partnership, joint venture, or other
entity (herein collectively, the “Entity”), including, without limitation, Administrative
Agent’s parent or any affiliate or any subsidiary of Administrative Agent and any credit reporting
agency or other entity whether or not related to Administrative Agent for any purpose, information
about any Loan Party’s accounts, credit application and credit experience with Administrative Agent
and each Loan Party authorizes any Entity to release to Administrative Agent any information
related to such Loan Party’s accounts, credit experience and account information regarding such
Loan Party. This shall be continuing authorization for all present and future disclosures of the
Loan Parties’ account information, credit application and credit
experience on the Loan Parties made by Administrative Agent, or any Entity requested to
release such information to Administrative Agent.

Section 11.21 Actions in Concert. Notwithstanding anything herein or in the
other Loan Documents to the contrary, each Lender hereby agrees with each other Lender that no
Lender shall take any action to protect or enforce its rights against any Loan Party arising out of
this Agreement or any other Loan Document (including exercising any rights of setoff) without first
obtaining the prior written consent of the Administrative Agent or the Required Lenders, it being
the intent of the Lenders that any such action to protect or enforce rights under this Agreement
and the other Loan Documents shall be taken in concert and at the direction or with the consent of
the Administrative Agent or the Required Lenders.

Section 11.22 Patriot Act Notice. Each Lender subject to the USA Patriot Act
of 2001 (31 U.S.C. 5318 et seq.) hereby notifies the Borrower that, pursuant to Section 326
thereof, it is required to obtain, verify and record information that identifies the Borrower,
including the name and address of the Borrower and other information allowing such Lender to
identify the Borrower in accordance with such act.

ARTICLE 12

CROSS-GUARANTY

Section 12.1 Cross-Guaranty. Each Borrower hereby agrees that such Borrower
is jointly and severally liable for, and hereby absolutely and unconditionally guarantees to the
Administrative Agent and the Lenders and their respective successors and assigns, the full and
prompt payment (whether at stated maturity, by acceleration or otherwise) and performance of, all
Obligations owed or hereafter owing to the Administrative Agent and the Lenders by each other
Borrower (“Guaranteed Obligations”). Each Borrower agrees that its guaranty obligation
hereunder is a continuing guaranty of payment and performance and not of collection, that its
obligations under this Article 12 shall not be discharged until payment and performance, in
full, of the Obligations has occurred, and that its obligations under this Article 12 shall
be absolute and unconditional, irrespective of, and unaffected by:

(a) the genuineness, validity, regularity, enforceability or any future amendment of, or
change in, this Agreement, any other Loan Document or any other agreement, document or instrument
to which any Borrower is or may become a party;

(b) the absence of any action, against any Person other than such Borrower, to enforce this
Agreement (including this Article 12) or any other Loan Document or the waiver or consent
by the Administrative Agent and the Lenders with respect to any of the provisions thereof;

 

64

 

(c) the existence, value or condition of, or failure to perfect its Lien against, any security
for the Obligations or any action, or the absence of any action, by the Administrative Agent and
the Lenders in respect thereof (including the release of any such security);

(d) the insolvency of any Loan Party; or

(e) any other action or circumstances that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor.

Each Borrower shall be regarded, and shall be in the same position, as principal debtor with
respect to the Guaranteed Obligations.

Section 12.2 Waivers by Borrowers. Each Borrower expressly waives all rights
it may have now or in the future under any statute, or at common law, or at law or in equity, or
otherwise, to compel the Administrative Agent or the Lenders to marshal assets or to proceed in
respect of the Obligations guaranteed hereunder against any other Loan Party, any other party or
against any security for the payment and performance of the Guaranteed Obligations before
proceeding against, or as a condition to proceeding against, such Borrower. It is agreed among
each Borrower, the Administrative Agent and the Lenders that the foregoing waivers are of the
essence of the transaction contemplated by this Agreement and the other Loan Documents and that,
but for the provisions of this Article 12 and such waivers, the Administrative Agent and
the Lenders would decline to enter into this Agreement.

Section 12.3 Benefit of Guaranty. Each Borrower agrees that the provisions of
this Article 12 are for the benefit of the Administrative Agent and the Lenders and their
respective successors, transferees, endorsees and assigns, and nothing herein contained shall
impair, as between any other Borrower and the Administrative Agent or the Lenders, the obligations
of such other Borrower under the Loan Documents.

Section 12.4 Subordination of Subrogation, Etc. Notwithstanding anything to
the contrary in this Agreement or in any other Loan Document, and except as set forth in
Section 12.7, each Borrower hereby expressly and irrevocably subordinates to payment of the
Obligations any and all rights at law or in equity to subrogation, reimbursement, exoneration,
contribution, indemnification or set off and any and all defenses available to a surety, guarantor
or accommodation co-obligor until the Obligations are paid in full in cash and the applicable
preference period has passed. Each Borrower acknowledges and agrees that this subordination is
intended to benefit the Administrative Agent and the Lenders and shall not limit or otherwise
affect such Borrower’s liability hereunder or the enforceability of this Article 12, and
that the Administrative Agent, the Lenders and their respective successors and assigns are intended
third party beneficiaries of the waivers and agreements set forth in this Section 12.4.

 

65

 

Section 12.5 Election of Remedies. If the Administrative Agent or any Lender
may, under applicable law, proceed to realize its benefits under any of the Loan Documents giving
the Administrative Agent or such Lender a Lien upon any Collateral, whether owned by any Borrower
or by any other Person, either by judicial foreclosure or by non judicial sale or enforcement, the
Administrative Agent or any Lender may, at its sole option, determine which of its remedies or
rights it may pursue without affecting any of its rights and remedies under this Article
12. If, in the exercise of any of its rights and remedies, the Administrative Agent or any
Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency
judgment against any Borrower or any other Person, whether because of any applicable laws
pertaining to “election of remedies” or the like, each Borrower hereby consents to such action by
the Administrative Agent or such Lender and waives any claim based upon such action, even if such
action by the Administrative Agent or
such Lender shall result in a full or partial loss of any rights of subrogation that such
Borrower might otherwise have had but for such action by the Administrative Agent or such Lender.
Any election of remedies that results in the denial or impairment of the right of the
Administrative Agent or any Lender to seek a deficiency judgment against any Borrower shall not
impair any other Borrower’s obligation to pay the full amount of the Obligations. In the event the
Administrative Agent or any Lender shall bid at any foreclosure or trustee’s sale or at any private
sale permitted by law or the Loan Documents, the Administrative Agent or such Lender may bid all or
less than the amount of the Obligations and the amount of such bid need not be paid by the
Administrative Agent or such Lender but shall be credited against the Obligations. The amount of
the successful bid at any such sale, whether the Administrative Agent, Lender or any other party is
the successful bidder, shall be conclusively deemed to be the fair market value of the Collateral
and the difference between such bid amount and the remaining balance of the Obligations shall be
conclusively deemed to be the amount of the Obligations guaranteed under this Article 12,
notwithstanding that any present or future law or court decision or ruling may have the effect of
reducing the amount of any deficiency claim to which the Administrative Agent or any Lender might
otherwise be entitled but for such bidding at any such sale.

Section 12.6 Limitation. Notwithstanding any provision herein contained to
the contrary, each Borrower’s liability under this Article 12 (which liability is in any
event in addition to amounts for which such Borrower is primarily liable under Article 2)
shall be limited to an amount not to exceed as of any date of determination the greater of:

(a) the net amount of all Loans advanced to any other Borrower under this Agreement and then
re-loaned or otherwise transferred to, or for the benefit of, such Borrower; and

(b) the amount that could be claimed by the Administrative Agent and the Lenders from such
Borrower under this Article 12 without rendering such claim voidable or avoidable under
Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent
Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common law after taking into
account, among other things, such Borrower’s right of contribution and indemnification from each
other Borrower under Section 12.7.

 

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Section 12.7 Contribution with Respect to Guaranty Obligations.

(a) To the extent that any Borrower shall make a payment under this Article 12 of all
or any of the Obligations (other than Loans made to that Borrower for which it is primarily liable)
(a “Guarantor Payment”) that, taking into account all other Guarantor Payments then
previously or concurrently made by any other Borrower, exceeds the amount that such Borrower would
otherwise have paid if each Borrower had paid the aggregate Obligations satisfied by such Guarantor
Payment in the same proportion that such Borrower’s “Allocable Amount” (as defined below) (as
determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of
each of the Borrowers as determined immediately prior to the making of such Guarantor Payment,
then, following payment in full in cash of the Obligations, termination of the Commitments and the
passage of the applicable preference period, such Borrower shall be entitled to receive
contribution and indemnification payments from, and be reimbursed by, each other Borrower for the
amount of such excess, pro rata based upon their respective Allocable Amounts in effect immediately
prior to such Guarantor Payment.

(b) As of any date of determination, the “Allocable Amount” of any Borrower shall be
equal to the maximum amount of the claim that could then be recovered from such Borrower under this
Article 12 without rendering such claim voidable or avoidable under Section 548 of Chapter
11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform
Fraudulent Conveyance Act or similar statute or common law.

(c) This Section 12.7 is intended only to define the relative rights of the Borrowers
and nothing set forth in this Section 12.7 is intended to or shall impair the obligations
of the Borrowers, jointly and severally, to pay any amounts as and when the same shall become due
and payable in accordance with the terms of this Agreement, including Section 12.1.
Nothing contained in this Section 12.7 shall limit the liability of any Borrower to pay the
Loans made directly or indirectly to such Borrower and accrued interest, fees and expenses with
respect thereto for which such Borrower shall be primarily liable.

(d) The parties hereto acknowledge that the rights of contribution and indemnification
hereunder shall constitute assets of the Borrowers to which such contribution and indemnification
is owing.

(e) The rights of the indemnifying Borrowers against other Loan Parties under this Section
12.7 shall be exercisable upon the full and final payment of the Obligations, the termination
of the Commitments and the passage of the applicable preference period.

Section 12.8 Liability Cumulative. The liability of the Borrowers under this
Article 12 is in addition to and shall be cumulative with all liabilities of each Borrower
to the Administrative Agent and the Lenders under this Agreement and the other Loan Documents to
which such Borrower is a party or in respect of any Obligations or obligation of the other
Borrower, without any limitation as to amount, unless the instrument or agreement evidencing or
creating such other liability specifically provides to the contrary.

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	BORROWERS:

RUSH TRUCK CENTERS OF ALABAMA, INC.

RUSH TRUCK CENTERS OF ARIZONA, INC.

RUSH TRUCK CENTERS OF CALIFORNIA, INC.

RUSH MEDIUM DUTY TRUCK CENTERS OF COLORADO, INC.

RUSH TRUCK CENTERS OF COLORADO, INC.

RUSH TRUCK CENTERS OF FLORIDA, INC.

RUSH TRUCK CENTERS OF GEORGIA, INC.

RUSH TRUCK CENTERS OF NEW MEXICO, INC.

RUSH TRUCK CENTERS OF OKLAHOMA, INC.

RUSH TRUCK CENTERS OF TENNESSEE, INC.

RUSH TRUCK CENTERS OF NORTH CAROLINA, INC.

RUSH TRUCK CENTERS OF IDAHO, INC.

RUSH TRUCK CENTERS OF UTAH, INC.

RUSH TRUCK CENTERS OF OREGON, INC.

 	 
	 	By:  	/s/ W.M. “Rusty” Rush
 	 
	 	 	Name:  	W.M. “Rusty” Rush 	 
	 	 	Title:  	President of each of the foregoing entities 	 
	 
	 	RUSH TRUCK CENTERS OF TEXAS, L.P.

By: Rushtex, Inc., a Delaware corporation

 	 
	 	By:  	/s/ W.M. “Rusty” Rush
 	 
	 	 	Name:  	W.M. “Rusty” Rush 	 
	 	 	Title:  	President 	 
	 
	 	HOLDINGS:

RUSH ENTERPRISES, INC.

 	 
	 	By:  	/s/ W.M. “Rusty” Rush
 	 
	 	 	Name:  	W.M. “Rusty” Rush 	 
	 	 	Title:  	CEO & President 	 

[SIGNATURE PAGE TO RUSH ENTERPRISES, INC. CREDIT AGREEMENT]

 

 

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION, AS
 ADMINISTRATIVE AGENT AND LENDER

 	 
	 	By:  	/s/ C. Daniel Clark	 
	 	 	Name:  	C. Daniel Clark	 
	 	 	Title:  	Vice President	 

[SIGNATURE PAGE TO RUSH ENTERPRISES, INC. CREDIT AGREEMENT]

 

 

 

	 	 	 	 	 
	 	OTHER LENDERS:

BANK OF THE WEST,

AS A LENDER

 	 
	 	By:  	/s/ James Chesser	 
	 	 	Name:  	 James Chesser	 
	 	 	Title:  	 Vice President	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

AS A LENDER

 	 
	 	By:  	/s/ Robert L. Bidinger	 
	 	 	Name:  	 Robert L. Bidinger	 
	 	 	Title:  	 SVP	 
	 
	 	MASSMUTUAL ASSET FINANCE LLC,

AS A LENDER

 	 
	 	By:  	/s/ Don Buttler	 
	 	 	Name:  	 Don Buttler	 
	 	 	Title:  	 Director	 
	 
	 	COMERICA BANK,

AS A LENDER

 	 
	 	By:  	/s/ Jonathan S. Heine	 
	 	 	Name:  	 Jonathan S. Heine	 
	 	 	Title:  	 Vice President	 

[SIGNATURE PAGE TO RUSH ENTERPRISES, INC. CREDIT AGREEMENT]

 

 

 

Schedule 1.1

Immaterial Subsidiaries

	 	 	 
	Rig Tough, Inc.

	 	Importer of truck parts sold at dealerships
	Rush Truck Center of Albuquerque, Inc.

	 	No revenue
	Rush GMC Truck Center of El Paso, Inc.

	 	Inactive
	Rush GMC Truck Center of Phoenix, Inc.

	 	Inactive
	Rush GMC Truck Center of San Diego, Inc.

	 	Inactive
	Rush GMC Truck Center of Tucson, Inc.

	 	Inactive
	Rush Equipment Centers of Texas, Inc.

	 	Inactive
	Rushtex, Inc.

	 	General Partner of Rush Truck Centers of Texas, L.P.
	Rushco, Inc.

	 	Limited Partner of Rush Truck Centers of Texas, L.P.
	Rush Real Estate Holdings, Inc.

	 	Owns corporate headquarters
	International General Agency

	 	Insurance Agency that sells insurance to truck
owners
	Los Cuernos, Inc.

	 	Ranch used for customer entertainment
	AiRush, Inc.

	 	This entity owns the corporate aircraft
	Rush Retail Centers, Inc.

	 	Inactive
	Associated Acceptance, Inc.

	 	Owned by International General Agency above
	Associated Acceptance of Florida, Inc.

	 	Owned by International General Agency above
	Advance Premium Finance, Inc.

	 	Owned by International General Agency above
	Adams International Trucks, Inc.

	 	Inactive

 

 

 

Schedule 4.2

Consents and Approvals

None.

 

 

 

Schedule 4.3

Group Members 

Rush Enterprises, Inc.

Jurisdiction of Organization: Texas

WHOLLY OWNED Subsidiaries Of Rush Enterprises, Inc.:

AiRush, Inc.

Jurisdiction of Organization: Delaware

International General Agency, Inc.

Jurisdiction of Organization: Texas

Wholly Owned Subsidiaries of International General Agency, Inc.:

Advance Premium Finance, Inc.

Jurisdiction of Organization: California

Associated Acceptance, Inc.

Jurisdiction of Organization: Texas

Associated Acceptance of Florida, Inc.

Jurisdiction of Organization: Delaware

Los Cuernos, Inc.

Jurisdiction of Organization: Delaware

Rig Tough, Inc.

Jurisdiction of Organization: Delaware

Rushco, Inc.

Jurisdiction of Organization: Delaware

Rushtex, Inc.

Jurisdiction of Organization: Delaware

 

 

 

Rush Accessories Corporation

Jurisdiction of Organization: Delaware

Rush Administrative Services, Inc.

Jurisdiction of Organization: Delaware

Rush Equipment Centers of Texas, Inc.

Jurisdiction of Organization: Delaware

Rush Retail Centers, Inc.

Jurisdiction of Organization: Delaware

Rush GMC Truck Center of El Paso, Inc.

Jurisdiction of Organization: Delaware

Rush GMC Truck Center of Phoenix, Inc.

Jurisdiction of Organization: Delaware

Rush GMC Truck Center of San Diego, Inc.

Jurisdiction of Organization: Delaware

Rush GMC Truck Center of Tucson, Inc.

Jurisdiction of Organization: Delaware

Rush Idealease, Inc.

Jurisdiction of Organization: Delaware

Rush Real Estate Holdings, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Leasing, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Alabama, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Arizona, Inc.

Jurisdiction of Organization: Delaware

 

 

 

Rush Truck Centers of California, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Colorado, Inc.

Jurisdiction of Organization: Delaware

Wholly Owned Subsidiary of Rush Truck Centers of Colorado, Inc.:

Rush Medium Duty Truck Centers of Colorado, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Florida, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Georgia, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Idaho, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of New Mexico, Inc.

Jurisdiction of Organization: Delaware

Wholly Owned Subsidiary of Rush Truck Centers of New Mexico, Inc.:

Rush Truck Center of Albuquerque, Inc.

Jurisdiction of Organization: New Mexico

Rush Truck Centers of North Carolina, Inc.

Jurisdiction of Organization: Delaware

Wholly Owned Subsidiary of Rush Truck Centers of North Carolina, Inc.:

Adams International Trucks, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Oklahoma, Inc.

Jurisdiction of Organization: Delaware

 

 

 

Rush Truck Centers of Oregon, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Texas, L.P.

Jurisdiction of Organization: Texas

General Partner: Rushtex, Inc., a Delaware corporation (0.1% owner)

Limited Partner: Rushco, Inc., a Delaware corporation (99.9% owner)

Rush Truck Centers of Tennessee, Inc.

Jurisdiction of Organization: Delaware

Rush Truck Centers of Utah, Inc.

Jurisdiction of Organization: Delaware

 

 

 

Exhibit A

to

Credit Agreement

Form of Assignment

This ASSIGNMENT, dated as of the Effective Date, is entered into between the Assignor and the
Assignee (each as defined below).

The parties hereto hereby agree as follows:

	 	 	 
	Borrower:

	 	Rush Truck Centers of Alabama, Inc., Rush Truck
Centers of Arizona, Inc., Rush Truck Centers of
California, Inc., Rush Medium Duty Truck Centers of
Colorado, Inc., Rush Truck Centers of Colorado,
Inc., Rush Truck Centers of Florida, Inc., Rush
Truck Centers of Georgia, Inc., Rush Truck Centers
of New Mexico, Inc., Rush Truck Centers of Oklahoma,
Inc., Rush Truck Centers of Tennessee, Inc., Rush
Truck Centers of North Carolina, Inc., Rush Truck
Centers of Idaho, Inc., Rush Truck Centers of Utah,
Inc., and Rush Truck Centers of Oregon, Inc., each a
Delaware corporation and Rush Truck Centers of
Texas, L.P., a Texas limited partnership
(collectively, the “Borrowers” and individually a
“Borrower”)
	 
	 	 
	Administrative Agent:

	 	General Electric Capital Corporation, as
administrative agent and collateral agent for the
Lenders (in such capacity and together with its
successors and permitted assigns, the
“Administrative Agent”)
	 
	 	 
	Credit Agreement:

	 	Credit Agreement, dated as of  _____, 2010,
among the Borrowers, Rush Enterprises, Inc., a Texas
corporation, as one of the Guarantors and the
Borrower Representative, the Lenders party thereto
and the Administrative Agent (as the same may be
amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”;
capitalized terms used herein without definition are
used as defined in the Credit Agreement)
	 
	 	 
	[Trade Date:

	 	
 _____,
 _____]1
	 
	 	 
	Effective Date:

	 	
 _____,
 _____2

 

	 	 	 
	1	 	Insert for informational purposes only if needed to
determine other arrangements between the assignor and the assignee.

	 
	2	 	To be filled out by Administrative Agent upon entry in
the Register.

 

A-1

 

	 	 	 	 	 
	Aggregate amount of 

Commitments or 

principal amount of 

Revolving Loans for 

all Lenders
	 	Aggregate amount of 

Commitments or 

principal amount of 

Revolving Loans 

Assigned3
	 	Percentage Assigned4
	$_____ 

	 	$_____ 

	 	___.
 _____%

[The Remainder of this Page Was Intentionally Left Blank]

 

	 	 	 
	3	 	Amount to be adjusted by the counterparties to take
into account any payments or prepayments made between the Trade Date and the
Effective Date. The aggregate amounts are inserted for informational purposes
only to help in calculating the percentages assigned which, themselves, are for
informational purposes only.

	 
	4	 	Set forth, to at least 5 decimals, the Assigned
Interest as a percentage of the aggregate Commitment or Loans in the credit
facility. This percentage is set forth for informational purposes only and is
not intended to be binding. The assignments are based on the amounts assigned
not on the percentages listed in this column.

 

A-2

 

1. Assignment. Assignor hereby sells and assigns to Assignee, and Assignee hereby
purchases and assumes from Assignor, Assignor’s rights and obligations in its capacity as Lender
under the Credit Agreement (including Liabilities owing to or by Assignor thereunder) and the other
Loan Documents, in each case to the extent related to the amounts identified above (the
“Assigned Interest”).

2. Representations, Warranties and Covenants of Assignors. Assignor (a) represents
and warrants to Assignee and the Administrative Agent that (i) it has full power and authority, and
has taken all actions necessary for it, to execute and deliver this Assignment and to consummate
the transactions contemplated hereby and (ii) it is the legal and beneficial owner of its Assigned
Interest and that such Assigned Interest is free and clear of any Lien and other adverse claims,
and (iii) by executing, signing and delivering this Assignment, the Person signing, executing and
delivering this Assignment on behalf of the Assignor is an authorized signer for the Assignor and
is authorized to execute, sign and deliver this Agreement, (b) makes no other representation or
warranty and assumes no responsibility, including with respect to the aggregate amount of the Loans
and Commitments, the percentage of the Loans and Commitments represented by the amounts assigned,
any statements, representations and warranties made in or in connection with any Loan Document or
any other document or information furnished pursuant thereto, the execution, legality, validity,
enforceability or genuineness of any Loan Document or any document or information provided in
connection therewith and the existence, nature or value of any Collateral, and (c) assumes no
responsibility (and makes no representation or warranty) with respect to the financial condition of
any Group Member or Loan Party or the performance or nonperformance by any Loan Party of any
obligation under any Loan Document or any document provided in connection therewith.

3. Representations, Warranties and Covenants of Assignees. Assignee (a) represents
and warrants to Assignor and the Administrative Agent that (i) it has full power and authority, and
has taken all actions necessary for Assignee, to execute and deliver this Assignment and to
consummate the transactions contemplated hereby, [(ii) is an Affiliate or an Approved Fund of the
Lender set forth above,]5 (iii) it is sophisticated with respect to decisions to acquire
assets of the type represented by the Assigned Interest assigned to it hereunder and either such
Assignee or the Person exercising discretion in making the decision for such assignment is
experienced in acquiring assets of such type, and (iv) by executing, signing and delivering this
Assignment, the Person signing, executing and delivering this Assignment on behalf of the Assignee
is an authorized signer for the Assignee and is authorized to execute, sign and deliver this
Agreement, (b) appoints and authorizes the Administrative Agent to take such action as
administrative agent and collateral agent on its behalf and to exercise such powers under the Loan
Documents as are delegated to the Administrative Agent by the terms thereof, together with such
powers as are reasonably incidental thereto, (c) shall perform in accordance with their terms all
obligations that, by the terms of the Loan Documents, are required to be performed by it as a
Lender, (d) confirms it has received such documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Assignment and shall continue to make
its own credit decisions in taking or not taking any action under any Loan Document independently
and without reliance upon any Secured Party and based on such documents and information as it shall
deem appropriate at the time, (e) acknowledges and agrees that, as a Lender, it may receive
material non-public information and confidential information concerning the Loan Parties and their Affiliates and Securities and agrees to use such
information in accordance with Section 11.20 of the Credit Agreement, (f) specifies as its
applicable lending offices (and addresses for notices) the offices at the addresses set forth
beneath its name on the signature pages hereof, (g) shall pay to the Administrative Agent an
assignment fee in the amount of $3,500 to the extent such fee is required to be paid under
Section 11.2(c) of the Credit Agreement and (h) to the extent required pursuant to
Section 2.17(e) of the Credit Agreement, attaches two completed originals of Forms W-9.

 

	 	 	 
	5	 	Remove if not applicable.

 

A-3

 

4. Determination of Effective Date; Register. Following the due execution and
delivery of this Assignment by Assignor and Assignee, this Assignment (including its attachments)
will be delivered to the Administrative Agent for its acceptance and recording in the Register.
The effective date of this Assignment (the “Effective Date”) shall be the later of (i) the
acceptance of this Assignment by the Administrative Agent and (ii) the recording of this Assignment
in the Register. The Administrative Agent shall insert the Effective Date when known in the space
provided therefor at the beginning of this Assignment.

5. Effect. As of the Effective Date, (a) Assignee shall be a party to the Credit
Agreement and, to the extent provided in this Assignment, have the rights and obligations of a
Lender under the Credit Agreement and (b) Assignor shall, to the extent provided in this
Assignment, relinquish its rights (except those surviving the termination of the Commitments and
payment in full of the Obligations) and be released from its obligations under the Loan Documents
other than those obligations relating to events and circumstances occurring prior to the Effective
Date.

6. Distribution of Payments. On and after the Effective Date, the Administrative
Agent shall make all payments under the Loan Documents in respect of each Assigned Interest (a) in
the case of amounts accrued to but excluding the Effective Date, to Assignor and (b) otherwise, to
the Assignee.

7. Miscellaneous. This Assignment is a Loan Document and, as such, is subject to
certain provisions of the Credit Agreement, including Sections 1.4
(Interpretation), 11.14(a) (Submission to Jurisdiction) and 11.15
(Waiver of Jury Trial) thereof. On and after the Effective Date, this Assignment shall be
binding upon, and inure to the benefit of, the Assignors, Assignees, the Administrative Agent and
their Related Persons and their successors and assigns. This Assignment shall be governed by, and
be construed and interpreted in accordance with, the law of the State of New York. This Assignment
may be executed in any number of counterparts and by different parties in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which taken together
shall constitute one and the same agreement. Signature pages may be detached from multiple
separate counterparts and attached to a single counterpart. Delivery of an executed signature page
of this Assignment by facsimile transmission or Electronic Transmission shall be as effective as
delivery of a manually executed counterpart of this Assignment.

[Signature Pages Follow]

 

A-4

 

IN WITNESS WHEREOF, the parties hereto have caused this Assignment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]

as Assignor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]

as Assignee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Lending Office for LIBOR Rate Loans:	 	 
	 
	 	 	 	 	 	 
	 	 	[Insert Address (including contact name, fax

number and e-mail address)]	 	 
	 
	 	 	 	 	 	 
	 	 	Lending Office (and address for notices)

for any other purpose:	 	 
	 
	 	 	 	 	 	 
	 	 	[Insert Address (including contact name, fax

number and e-mail address)]	 	 

[SIGNATURE PAGE FOR ASSIGNMENT FOR RUSH ENTERPRISES, INC. CREDIT AGREEMENT]

 

 

 

	 	 	 	 	 
	ACCEPTED and AGREED

this __ day of ______ _____:	 	 
	 
	 	 	 	 
	GENERAL ELECTRIC CAPITAL CORPORATION

as Administrative Agent	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[SIGNATURE PAGE FOR ASSIGNMENT FOR RUSH ENTERPRISES, INC. CREDIT AGREEMENT]

 

 

 

Exhibit B-1

to

Credit Agreement

Form of Notice of Borrowing for Equipment Loan Borrowing

GENERAL ELECTRIC CAPITAL CORPORATION

as Administrative Agent under the

Credit Agreement referred to below

_________ __, ____

Attention:

	 	Re: 	 	 Rush Truck Centers of Alabama, Inc., Rush
Truck Centers of Arizona, Inc., Rush Truck Centers of
California, Inc., Rush Medium Duty Truck Centers of Colorado,
Inc., Rush Truck Centers of Colorado, Inc., Rush Truck
Centers of Florida, Inc., Rush Truck Centers of Georgia,
Inc., Rush Truck Centers of New Mexico, Inc., Rush Truck
Centers of Oklahoma, Inc., Rush Truck Centers of Tennessee,
Inc., Rush Truck Centers of North Carolina, Inc., Rush Truck
Centers of Idaho, Inc., Rush Truck Centers of Utah, Inc., and
Rush Truck Centers of Oregon, Inc., each a Delaware
corporation and Rush Truck Centers of Texas, L.P., a Texas
limited partnership (collectively, the “Borrowers”
and individually a “Borrower”)

Reference is made to the Credit Agreement, dated as of
 _____, 2010 (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among the Borrowers, Rush Enterprises, Inc., a Texas corporation, as one of the Guarantors and the
Borrower Representative, the Lenders party thereto and General Electric Capital Corporation, as
administrative agent and collateral agent for such Lenders. Capitalized terms used herein without
definition are used as defined in the Credit Agreement.

The Borrower Representative hereby gives you irrevocable notice, pursuant to Section 2.2 of
the Credit Agreement of its request of a Borrowing (the “Proposed Borrowing”) under the
Credit Agreement and, in that connection, sets forth the following information:

The Borrower is
 _____.

The date of the Proposed Borrowing is
 _____,
 _____ 
(the “Funding Date”).

The aggregate principal amount of Revolving Loans is
 $_____.

The Proposed Borrowing shall be a [New Equipment Loan][Used Equipment Loan].

 

B-1

 

The undersigned hereby certifies that the following statements are true on the date hereof, both
before and after giving effect to the Proposed Borrowing and any other Loan to be made on or before
the Funding Date:

(i) the representations and warranties set forth in Article 4 of the Credit
Agreement and elsewhere in the Loan Documents are true and correct in all material
respects, except to the extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties were true and correct as of
such date;

(ii) no Default is continuing; [and]

(iii) [copies of the invoices to be paid with the proceeds of the Proposed Borrowing
are attached hereto]/[the invoices to be paid with the proceeds of the Proposed Borrowing
have previously been electronically submitted to the Administrative Agent.]6

OR

(iii) [the used equipment to be purchased with the proceeds of the Proposed Borrowing
includes the following: [DESCRIBE USED EQUIPMENT AND PURCHASE PRICE THEREFOR]; copies of
the certificates of title of the Inventory to be purchased with the Proposed Borrowing are
attached hereto; and

(iv) the aggregate principal amount of the Revolving Loan requested does not exceed
the lesser of (A) the cost to the relevant Borrower of the used equipment to be purchased
with the proceeds of such Proposed Borrowing or (B) 105% of the wholesale value of the used
inventory to be purchased with the proceeds of such Proposed Borrowing.]7

 

	 	 	 
	6	 	Either option to be used for New Equipment Loans.

	 
	7	 	To be used for Used Equipment Loans.

 

B-2

 

	 	 	 	 	 
	 	RUSH ENTERPRISES, INC., AS BORROWER

REPRESENTATIVE

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURE PAGE TO EQUIPMENT LOAN NOTICE OF BORROWING DATED _________ __, ____]

 

 

Exhibit B-2

to

Credit Agreement

Form of Notice of Borrowing for Working Capital Borrowing

GENERAL ELECTRIC CAPITAL CORPORATION

as Administrative Agent under the

Credit Agreement referred to below

_________ __, ____

Attention:

	 	Re: 	 	 Rush Truck Centers of Alabama, Inc., Rush
Truck Centers of Arizona, Inc., Rush Truck Centers of
California, Inc., Rush Medium Duty Truck Centers of Colorado,
Inc., Rush Truck Centers of Colorado, Inc., Rush Truck
Centers of Florida, Inc., Rush Truck Centers of Georgia,
Inc., Rush Truck Centers of New Mexico, Inc., Rush Truck
Centers of Oklahoma, Inc., Rush Truck Centers of Tennessee,
Inc., Rush Truck Centers of North Carolina, Inc., Rush Truck
Centers of Idaho, Inc., Rush Truck Centers of Utah, Inc., and
Rush Truck Centers of Oregon, Inc., each a Delaware
corporation and Rush Truck Centers of Texas, L.P., a Texas
limited partnership (collectively, the “Borrowers”
and individually a “Borrower”)

Reference is made to the Credit Agreement, dated as of
 _____, 2010 (as the same may be amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among the Borrowers, Rush Enterprises, Inc., a Texas corporation, as one of the Guarantors and the
Borrower Representative, the Lenders party thereto and General Electric Capital Corporation, as
administrative agent and collateral agent for such Lenders. Capitalized terms used herein without
definition are used as defined in the Credit Agreement.

The Borrower Representative hereby gives you irrevocable notice, pursuant to Section 2.2 of
the Credit Agreement of its request of a Borrowing (the “Proposed Borrowing”) under the
Credit Agreement and, in that connection, sets forth the following information:

The date of the Proposed Borrowing is
 _____,
 _____ 
(the “Funding Date”).

The aggregate principal amount of Revolving Loans is
 $_____.

The Proposed Borrowing shall be a Working Capital Loan.

 

B-4

 

The undersigned hereby certifies that the following statements are true on the date hereof, both
before and after giving effect to the Proposed Borrowing and any other Loan to be made on or before
the Funding Date:

(i) the representations and warranties set forth in Article 4 of the Credit
Agreement and elsewhere in the Loan Documents are true and correct in all material
respects, except to the extent such representations and warranties expressly relate to an
earlier date, in which case such representations and warranties were true and correct as of
such date; and

(ii) no Default is continuing.

 

B-5

 

	 	 	 	 	 
	 	RUSH ENTERPRISES, INC., AS BORROWER

REPRESENTATIVE

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[SIGNATURE PAGE TO WORKING CAPITAL NOTICE OF BORROWING DATED _________ __, ____]

 

 

Exhibit C

to

Credit Agreement

Form of Compliance Certificate

[Date]

This certificate is delivered pursuant to Section 6.1(d) of, and in connection with the
consummation of the transactions contemplated in, the Credit Agreement, dated as of
 _____, 2010
(as the same may be amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among Rush Truck Centers of Alabama, Inc., Rush Truck Centers of
Arizona, Inc., Rush Truck Centers of California, Inc., Rush Medium Duty Truck Centers of Colorado,
Inc., Rush Truck Centers of Colorado, Inc., Rush Truck Centers of Florida, Inc., Rush Truck Centers
of Georgia, Inc., Rush Truck Centers of New Mexico, Inc., Rush Truck Centers of Oklahoma, Inc.,
Rush Truck Centers of Tennessee, Inc., Rush Truck Centers of North Carolina, Inc., Rush Truck
Centers of Idaho, Inc., Rush Truck Centers of Utah, Inc., and Rush Truck Centers of Oregon, Inc.,
each a Delaware corporation and Rush Truck Centers of Texas, L.P., a Texas limited partnership
(collectively, the “Borrowers” and individually a “Borrower”), Rush Enterprises,
Inc., a Texas corporation, as one of the Guarantors and the Borrower Representative, the Lenders
party thereto and General Electric Capital Corporation, as administrative agent and collateral
agent for the Lenders (the “Administrative Agent”). Capitalized terms used herein and not
otherwise defined herein are used herein as defined in the Credit Agreement.

The undersigned, a duly authorized Responsible Officer of the Borrower having the name and title
set forth below under his signature, hereby certifies, on behalf of the Borrower for the benefit of
the Secured Parties and pursuant to Section 6.1 of the Credit Agreement that such
Responsible Officer of the Borrower is familiar with the Credit Agreement and that, in accordance
with each of the following sections of the Credit Agreement, each of the following is true on the
date hereof, both before and after giving effect to any Loan to be made on or before the date
hereof:

(a) [In accordance with Section 6.1[(b)/(c)] of the Credit Agreement, attached
hereto as Annex A are the Financial Statements for the [Fiscal Quarter/Fiscal Year]
ended
 _____,
 _____ 
required to be delivered pursuant to Section 6.1[(b)/(c)] of
the Credit Agreement. Such Financial Statements]8 [The Financial Statements for
the [Fiscal Quarter][Fiscal Year] ended
 _____,
 _____ 
made available on
EDGAR]9, fairly present in all material respects the Consolidated financial
position, results of operations and cash flow of Holdings as at the dates indicated therein
and for the periods indicated therein in accordance with GAAP [(subject to the absence of
footnote disclosure and normal year-end audit adjustments)]10 [without
qualification as to the scope of the audit or as to going concern and without any other
similar qualification.]11

 

	 	 	 
	8	 	Insert if the financial statements are not available on
EDGAR.

	 
	9	 	Insert if the financial statements are available on
EDGAR.

	 
	10	 	Insert language in brackets only for quarterly
reports.

	 
	11	 	Insert language in brackets only for annual
certifications.

 

C-1

 

(b) Attached hereto as Annex B are the calculations used to determine the
Consolidated Leverage Ratio, the Consolidated Fixed Charge Coverage Ratio and to
determine compliance with each financial covenant contained in Article 5 of
the Credit Agreement [that are tested on a quarterly basis]12.

(c) In accordance with Section 6.1(d) of the Credit Agreement, no Default is
continuing as of the date hereof[, except as provided for on Annex C attached
hereto, with respect to each of which the Borrower proposes to take the actions set forth
on Annex C].

(d) In accordance with Section 6.1(e) of the Credit Agreement, (i) the
[corporate chart attached hereto as Annex D[-1]] [last corporate chart delivered
pursuant to such Section)], is correct and complete as of the date hereof, (ii) all
documents (including updated schedules as to locations of Collateral and acquisition of
Intellectual Property or real property) required to be delivered pursuant to the Loan
Documents by any Loan Party in the preceding Fiscal Quarter have been delivered thereunder
(or such delivery requirement was otherwise duly waived or extended) and (iii) complete and
correct copies of all documents modifying any term of any Constituent Document of any Group
Member or any Subsidiary or joint venture thereof on or prior to the date hereof have been
delivered to the Administrative Agent [or are attached hereto as Annex D[-2]].

(e) [In accordance with Section 6.1(h) of the Credit Agreement, attached
hereto as Annex E are complete and correct copies of each management letter, audit
report or similar letter or report received by any Group Member from any independent
registered certified public accountant (including the Group Members’ Accountants) in
connection with such Financial Statements or any audit thereof].13

[Signature Page Follows]

 

	 	 	 
	12	 	Insert bracketed language only for quarterly
certifications.

	 
	13	 	Insert bracketed language only for annual reports.

 

C-2

 

In Witness Whereof, the undersigned has executed this certificate on the date
first written above.

	 	 	 	 	 
	 	 	 
	 	  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to compliance certificate of RUSH ENTERPRISES, INC. dated _________ __, ____]

 

 

 

ANNEX A

to

COMPLIANCE CERTIFICATE OF ___________________________

DATED _________, ____

financial statements

 

 

 

ANNEX B

to

COMPLIANCE CERTIFICATE OF __________________________ 

DATED _________, ____

financial calculations

 

 

 

[ANNEX C

to

COMPLIANCE CERTIFICATE OF _____________________________ 

DATED _________, ____

continuing
 defaults]14

 

	 	 	 
	14	 	Delete if not used in the text of the certificate.

 

 

 

ANNEX D[-1]

to

COMPLIANCE CERTIFICATE OF ______________________ 

DATED _________, ____

corporate chart 

 

 

 

ANNEX D[-2]

to

COMPLIANCE CERTIFICATE OF __________________________

DATED _________, ____

modifications to constituent documents

 

 

 

 ANNEX E

to

COMPLIANCE CERTIFICATE OF _______________________ 

DATED _________, ____

management letters

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