Document:

exv10w17

 

Exhibit 10.17

Agreement

for

Pre-Construction Services

between

Southern Iowa Bioenergy, LLC, Lamoni and Osceola, Iowa

and

Renewable Energy Group, Inc.

	 	 	WHEREAS, Southern Iowa Bioenergy LLC (SIBE) has made a commitment to develop a Biodiesel
Plant and is diligently pursuing full funding that will move this project forward, and
	 
	 	 	WHEREAS, Renewable Energy Group, Inc (REG) was formed to provide turn-key engineering and
construction (design-build) services for biodiesel facilities, and
	 
	 	 	WHEREAS, both parties are targeting a field construction start date of no later than 2nd
Quarter 2007 and recognize that time is of the essence and to meet that projected start date
certain Engineering and long lead time activities need to progress,
	 
	 	 	NOW THEREFORE, IT IS AGREED by and between OWNER and REG as follows:
	 
	1.	 	In recognition of REG’s expertise and technical assistance capabilities, OWNER will retain
REG to complete Pre-Construction Services, including the following:

	 	A.	 	Additional engineering consisting of:

	 	•	 	Crown Iron Works Process and Instrumentation Diagrams
(P&IDs).
	 
	 	•	 	Crown Iron Works Piping Isometric drawings (ISOs).
	 
	 	•	 	Expanded General Arrangement drawings (GARs).
	 
	 	•	 	Expanded Architectural drawings (ARCs) as required.
	 
	 	•	 	Site Civil drawings (CIVs-drawing index, final grading,
drainage and site utility plans).
	 
	 	•	 	Initial engineering for structural drawings – anchor
bolts down (STRs – drawing index, foundations, embeds and anchor
bolts).
	 
	 	•	 	Initial engineering for tank drawings (TNKs).

					
	 	 	 	 	 
	 
	 	 	 	406 First Street
	 
	 	 	 	PO Box 128
	 
	 	 	 	Ralston, IA 51459
	 
	 	CONFIDENTIAL
	 	(712) 667-3500
	 
	 	 	 	Fax(712) 667-3599
	Page 1 of 4
	 	 	 	www.renewable-energy-group.com
	 	 	 	 	 

 

 

	 	•	 	Initial engineering for electrical drawings (ELEs –
drawing index, legends and symbols, temporary power for construction,
permanent power distribution one-lines, underground runs, grounding,
and panel board details).
	 
	 	•	 	Initial engineering for mechanical drawings (MECs –
drawing index, legends and symbols, underground site utilities,
P&IDs, tank drawings and utility rough-ins).

	 	B.	 	Assistance with additional permitting.
	 
	 	C.	 	Establish final Project Specifications, Contract
Documents and Contract Pricing.
	 
	 	D.	 	Place orders for long lead time equipment and make
required down payments on equipment. This will be done at the discretion
of REG based on both schedule and money’s available.
	 
	 	E.	 	OWNER agrees that all deliverables previously due
under the Phase 2 Services Agreement dated September 7th, 2005
will be covered within the scope of this agreement and that the Phase 2
Services will be considered paid in full.

	2.	 	In consideration of REG’s agreement to provide the foregoing services, OWNER agrees to pay
REG the sum of $2,500,000. If OWNER proceeds with the construction of a biodiesel facility,
REG agrees that the foregoing payment, as well as any previous payments to REG shall be
included in the final Design-Build Agreement Contract Price.

	3.	 	Both parties acknowledge that any down payments on equipment obligate REG to accept delivery
and make final payment on this equipment. Should OWNER not be in a position to accept
delivery and make final payment within 30 days of the targeted field construction start date,
then REG shall take steps to place this equipment on another REG project and this
Pre-Construction Services Agreement shall terminate. Renewable Energy Group agrees to update
Southern Iowa Bioenergy (SIBE) with a full accounting of the expenditures of the $2.5 million
down payment as the funds are expended. If the SIBE project is suspended prior to completion
of the equity drive and the signing of the AGC Agreement, REG will make every effort to
utilize the equipment purchased for SIBE. SIBE understands that they will only be responsible
for a “restocking” fee for the equipment that was purchased.

	4.	 	OWNER has the right to terminate this Pre-Construction Services Agreement at any time by
giving written notice to REG.

	5.	 	It is the intent of both OWNER and REG to proceed directly from this Pre-Construction
Services Agreement to a Design-Build Agreement based on the Standard Form of Design-Build
Agreement and General Conditions Between

					
	 	 	 	 	 
	 
	 	 	 	406 First Street
	 
	 	 	 	PO Box 128
	 
	 	 	 	Ralston, IA 51459
	 
	 	CONFIDENTIAL
	 	(712) 667-3500
	 
	 	 	 	Fax(712) 667-3599
	Page 1 of 4
	 	 	 	www.renewable-energy-group.com
	 	 	 	 	 

 

 

	 	 	Owner and Design-Builder (AGC Document No. 415).
Both parties agree to
negotiate in good faith towards the execution of this Design-Build Agreement no later than 30
days before the targeted field construction start date. Should the parties, for whatever
reason, be unable to execute a Design-Build Agreement within 30 days after the targeted field
construction start date then this Pre-Construction Services Agreement shall terminate.
	 
	6.	 	Should this Agreement be terminated under Article 3, Article 4, or Article 5 above, the REG
shall immediately take steps to stop the work and mitigate any further costs against this
Agreement. Should the final actual costs to REG (plus markup of 15%) be less than the
$2,500,000 payment then REG will reimburse the difference to OWNER. Should the final actual
costs to REG (plus markup of 15%) be higher than the $2,500,000 payment then REG shall bear
those additional costs and OWNER shall have no further obligation to REG.
	 
	7.	 	Any and all designs, plans, specifications, processes and other engineering or technical
information or data (herein referred to as “Confidential Information”) which are delivered to
OWNER in connection with this Agreement are confidential and proprietary to REG and shall at
all times remain the sole and exclusive property of REG. OWNER shall not directly or
indirectly be permitted, nor shall OWNER permit any other party, to use, transfer, assign,
disclose, divulge or publish any such Confidential Information to any third party for any
reason or purpose whatsoever without the prior written consent of REG. OWNER may disseminate
Confidential Information to parties such as its employees, agents and representatives
(“Consultants”) as may need to know to aid OWNER in analyzing for the purposes as set out
above, but not until such Consultants are aware of these provisions with respect to
confidentiality, and the need to prevent further dissemination of Confidential Information.
All Confidential Information shall be returned to REG at its request.

					
	 	 	 	 	 
	 
	 	 	 	406 First Street
	 
	 	 	 	PO Box 128
	 
	 	 	 	Ralston, IA 51459
	 
	 	CONFIDENTIAL
	 	(712) 667-3500
	 
	 	 	 	Fax(712) 667-3599
	Page 2 of 4
	 	 	 	www.renewable-energy-group.com
	 	 	 	 	 

 

 

This Agreement shall not be construed to convey any rights in REG’s intellectual properties,
including intellectual properties included in or related to the Confidential Information. OWNER
may acquire only such rights in these intellectual properties as may be conveyed under the terms of
further construction agreements entered into between the parties, if any.

Entered into as of this 8th day of October, 2006

	 	 	 	 	 	 	 	 	 
	OWNER	 	 	 	RENEWABLE ENERGY
GROUP, INC.
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ William T. Higdon
	 	 	 	By
	 	/s/ Jeffrey Stroburg
	 

	 	 
	 	 	 	 	 	 
	 

	 	Print Name William T. Higdon
	 	 	 	 	 	Print Name Jeffrey Stroburg
	 

	 	Print Title President
	 	 	 	 	 	Print Title CEO

					
	 	 	 	 	 
	 
	 	 	 	406 First Street
	 
	 	 	 	PO Box 128
	 
	 	 	 	Ralston, IA 51459
	 
	 	CONFIDENTIAL
	 	(712) 667-3500
	 
	 	 	 	Fax(712) 667-3599
	Page 3 of 4
	 	 	 	www.renewable-energy-group.comexv10w18

 

Exhibit 10.18

CONSENT TO ASSIGNMENT

Management and Operational Service Agreement

          This Consent to Assignment (the “Consent”) is given as of this  7 day of August,
2006, by Southern Iowa BioEnergy, LLC (“Southern Iowa BioEnergy”).

          RECITALS: West Central Cooperative entered into a Management and Operational Service
Agreement dated June 20, 2006, with Southern Iowa BioEnergy providing for assistance in the
management and operation of its biodiesel facility located at Lamoni, Iowa (“Agreement”).

          REG, LLC, InterWest, L.C., and West Central Cooperative joined their forces to expand upon
their biodiesel construction, management and marketing efforts by creating Renewable Energy Group,
Inc. (“REG, Inc.”) on July 31, 2006. In order to be continuing to fulfill the obligations under
the Agreement, Renewable Energy Group, Inc. would desire to confirm Southern Iowa BioEnergy’s
consent to an assignment of West Central Cooperative’s rights in the Agreement to Renewable Energy
Group, Inc.

          Performance of the Agreement will continue under the same leadership and personnel, supported
by the same strategic partners as were involved previously under West Central Cooperative. By
signature hereto, Renewable Energy Group, Inc. assumes and agrees to perform and discharge all
obligations as set forth in the Agreement previously entered into by West Central Cooperative with
Southern Iowa BioEnergy.

	 	 	 	 	 	 	 	 	 
	WEST CENTRAL COOPERATIVE	 	 	 	RENEWABLE ENERGY GROUP, INC.
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Jeffrey Stroburg
	 	 	 	By
	 	/s/ Nile Ramsbottom
	 

	 	 
	 	 	 	 	 	 
	 

	 	Jeffrey Stroburg, CEO
	 	 	 	 	 	Nile Ramsbottom, President

CONSENT TO ASSIGNMENT

          Southern Iowa BioEnergy hereby consents to the assignment of the Agreement to Renewable Energy
Group, Inc.

	 	 	 	 	 
	 	SOUTHERN IOWA BIOENERGY, LLC

 	 
	 	By   /s/ William T. Higdon
 	 
	 	President (Title)exv10w59

 

Exhibit 10.59

$1,500,000,000

CREDIT AGREEMENT

Dated as of January 19, 2007

Among

NAVISTAR INTERNATIONAL CORPORATION,

as Borrower,

THE SUBSIDIARY GUARANTORS PARTY HERETO,

THE LENDERS PARTY HERETO,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent,

CREDIT SUISSE SECURITIES (USA) LLC,

as Syndication Agent,

and

BANC OF AMERICA SECURITIES LLC,

and

CITIGROUP GLOBAL MARKETS INC.,

as Co-Documentation Agents

 

J.P. MORGAN SECURITIES INC.,

as Joint Lead Arranger and Joint Bookrunner

and

CREDIT SUISSE SECURITIES (USA) LLC,

as Joint Lead Arranger and Joint Bookrunner

and

BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arranger

E-1

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS AND ACCOUNTING TERMS
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01.   Certain Defined Terms
	 	 	1	 
	SECTION 1.02.   Computation of Time Periods; Other Definitional Provisions
	 	 	27	 
	SECTION 1.03.   Accounting Terms
	 	 	27	 
	SECTION 1.04.   Currency Equivalents Generally
	 	 	27	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	AMOUNTS AND TERMS OF THE TERM ADVANCES
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01.   Term Advances
	 	 	27	 
	SECTION 2.02.   Making the Term Advances
	 	 	28	 
	SECTION 2.03.   Repayment of the Term Advances
	 	 	29	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	AMOUNTS AND TERMS OF THE REVOLVING COMMITMENT AND ADVANCES
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01.   Revolving Advances
	 	 	29	 
	SECTION 3.02.   Making the Revolving Advances
	 	 	29	 
	SECTION 3.03.   Repayment of the Revolving Advances
	 	 	30	 
	SECTION 3.04.   Optional Termination or Reduction of the Total Revolving Credit-Linked Deposit Amount
	 	 	30	 
	SECTION 3.05.   Revolving Credit-Linked Deposit Accounts
	 	 	30	 
	SECTION 3.06.   Issuance of Letters of Credit
	 	 	34	 
	SECTION 3.07.   Participations; Unconditional Obligations
	 	 	35	 
	SECTION 3.08.   Agreement to Repay Letter of Credit Disbursement
	 	 	35	 
	SECTION 3.09.   Letter of Credit Operations
	 	 	37	 
	SECTION 3.10.   Cash Collateralization
	 	 	37	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	TERMS OF THE ADVANCES
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01.   Prepayments; Premiums
	 	 	38	 
	SECTION 4.02.   Interest 
	 	 	39	 
	SECTION 4.03.   Fees 
	 	 	40	 
	SECTION 4.04.   Conversion and Continuation of Advances
	 	 	40	 
	SECTION 4.05.   Increased Costs, Etc.
	 	 	41	 

i

 

	 	 	 	 	 
	 	 	Page
	SECTION 4.06.   Payments and Computations
	 	 	42	 
	SECTION 4.07.   Taxes 
	 	 	44	 
	SECTION 4.08.   Sharing of Payments, Etc.
	 	 	46	 
	SECTION 4.09.   Use of Proceeds
	 	 	47	 
	SECTION 4.10.   Evidence of Debt
	 	 	47	 
	 
	 	 	 	 
	ARTICLE V

	 
	 	 	 	 
	CONDITIONS TO EFFECTIVENESS OF LENDING

	 
	 	 	 	 
	SECTION 5.01.   Conditions Precedent
	 	 	48	 
	SECTION 5.02.   Conditions Precedent to the Initial Borrowing
	 	 	50	 
	SECTION 5.03.   Conditions Precedent to Each Borrowing
	 	 	50	 
	SECTION 5.04.   Determinations Under Section 5.01 and Section 5.02
	 	 	51	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES

	 
	 	 	 	 
	SECTION 6.01.   Representations and Warranties of the Borrower
	 	 	51	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	COVENANTS OF THE BORROWER

	 
	 	 	 	 
	SECTION 7.01.   Affirmative Covenants
	 	 	56	 
	SECTION 7.02.   Negative Covenants
	 	 	58	 
	SECTION 7.03.   Reporting Requirements
	 	 	70	 
	SECTION 7.04.   Financial Covenant
	 	 	73	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	EVENTS OF DEFAULT

	 
	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 
	THE AGENTS

	 
	 	 	 	 
	SECTION 9.01.   Authorization and Action
	 	 	77	 
	SECTION 9.02.   Agents’ Reliance, Etc.
	 	 	77	 
	SECTION 9.03.   JPMorgan Chase Bank and Affiliates
	 	 	78	 
	SECTION 9.04.   Lender Credit Decision
	 	 	78	 
	SECTION 9.05.   Indemnification
	 	 	78	 
	SECTION 9.06.   Successor Agents
	 	 	79	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE X
	 	 	 	 
	 
	 	 	 	 
	GUARANTY
	 	 	 	 
	 
	 	 	 	 
	SECTION 10.01.   Guaranty; Limitation of Liability
	 	 	80	 
	SECTION 10.02.   Guaranty Absolute
	 	 	80	 
	SECTION 10.03.   Waivers and Acknowledgments
	 	 	81	 
	SECTION 10.04.   Subrogation
	 	 	82	 
	SECTION 10.05.   Subsidiary Guaranty Supplements
	 	 	83	 
	SECTION 10.06.   Subordination
	 	 	83	 
	SECTION 10.07.   Continuing Guaranty; Assignments
	 	 	84	 
	 
	 	 	 	 
	ARTICLE XI
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 11.01.   Amendments, Etc.
	 	 	84	 
	SECTION 11.02.   Notices, Etc.
	 	 	85	 
	SECTION 11.03.   No Waiver; Remedies
	 	 	87	 
	SECTION 11.04.   Costs and Expenses
	 	 	87	 
	SECTION 11.05.   Right of Set-off
	 	 	89	 
	SECTION 11.06.   Binding Effect
	 	 	89	 
	SECTION 11.07.   Assignments and Participations
	 	 	90	 
	SECTION 11.08.   Execution in Counterparts
	 	 	94	 
	SECTION 11.09.   [Reserved]
	 	 	94	 
	SECTION 11.10.   Confidentiality
	 	 	94	 
	SECTION 11.11.   [Reserved]
	 	 	95	 
	SECTION 11.12.   PATRIOT Act Notice
	 	 	95	 
	SECTION 11.13.   Jurisdiction, Etc.
	 	 	95	 
	SECTION 11.14.   Governing Law
	 	 	95	 
	SECTION 11.15.   WAIVER OF JURY TRIAL
	 	 	95	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Schedule I           Commitments and Applicable Lending Offices
	 	 	 	 
	Schedule II          Subsidiary Guarantors (as of the date hereof)
	 	 	 	 
	Schedule III         Unrestricted Subsidiaries
	 	 	 	 
	Schedule 6.01(b) Loan Parties
	 	 	 	 
	Schedule 6.01(c) Subsidiaries (including Restricted and Unrestricted)
	 	 	 	 
	Schedule 6.01(g) Disclosed Litigation
	 	 	 	 
	Schedule 6.01(p) Existing Debt (Non-Intercompany) in Excess of $50,000,000
	 	 	 	 
	Schedule 6.01(q) Liens Securing Debt for Borrowed Money in Excess of
$50,000,000
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 

iii

 

	 	 	 	 	 
	 	 	Page
	Exhibit A-1 — Form of Term Note
	 	 	 	 
	Exhibit A-2 — Form of Revolving Note
	 	 	 	 
	Exhibit B  — Form of Assignment and Acceptance
	 	 	 	 
	Exhibit C  — Form of Subsidiary Guaranty Supplement
	 	 	 	 

iv

 

CREDIT AGREEMENT

          CREDIT AGREEMENT (this “Agreement”) dated as of January 19, 2007 among NAVISTAR INTERNATIONAL
CORPORATION, a Delaware corporation (the “Borrower”), THE SUBSIDIARY GUARANTORS (as hereinafter
defined), from time to time party hereto, THE LENDERS (as hereinafter defined), from time to time
party hereto, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (“JPMorgan Chase
Bank” or, together with any successor administrative agent appointed pursuant hereto, in such
capacity, the “Administrative Agent”), CREDIT SUISSE SECURITIES (USA) LLC, as syndication agent (in
such capacity, the “Syndication Agent”), BANC OF AMERICA SECURITIES LLC and CITIGROUP GLOBAL
MARKETS INC., as co-documentation agents (in such capacity, each, a “Co-Documentation Agent” and
together, the “Co-Documentation Agents”), J.P. MORGAN SECURITIES INC. (“JPM Securities”), CREDIT
SUISSE SECURITIES (USA) LLC (“CS Securities”) and BANC OF AMERICA SECURITIES LLC (“BAS”), as joint
lead arrangers (in such capacity, the “Lead Arrangers”), and JPM Securities and CS Securities, as
joint bookrunners (in such capacity, the “Bookrunners”).

PRELIMINARY STATEMENTS:

          (1) The Borrower is a party to the Credit Agreement dated as of February 22, 2006, as amended
by that certain Amendment No. 1 thereto, dated as of August 2, 2006, among the Borrower, the
subsidiary guarantors party thereto, the lenders from time to time party thereto, the agents party
thereto, and the lead arrangers party thereto (the “Existing Credit Agreement”).

          (2) The Borrower has requested the senior unsecured term loan facility as described herein
(the “Term Loan Facility”) and the senior unsecured synthetic revolving facility as described
herein (the “Revolving Facility” and, together with the Term Loan Facility, the “Facilities”) to
provide for (A) the refinancing of a portion of the amounts outstanding under the Existing Credit
Agreement, (B) general corporate purposes and working capital financing, and (C) the payment of
fees, costs and expenses incurred in connection with the foregoing.

          NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements
contained herein, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

     SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

     “Adjusted LIBOR” means, with respect to any LIBOR Borrowing for any Interest Period, an
interest rate per annum equal to the product of (a) the LIBOR in effect for such Interest
Period and (b) the Statutory Reserve Percentage.

 

 

2

     “Administrative Agent” has the meaning specified in the recital of parties to this
Agreement.

     “Administrative Agent’s Account” means the account of the Administrative Agent
specified by the Administrative Agent in writing to the Lenders from time to time.

     “Administrative Cost” means 0.10% (based on a 365 or 366 day year, as the case may be).

     “Advance” means a Term Advance or a Revolving Advance.

     “Affiliate” means, as to any Person, any other Person (other than, in the case of any
Loan Party, such Loan Party’s Restricted Subsidiaries) that, directly or indirectly,
controls, is controlled by or is under common control with such Person. For purposes of this
definition, the term “control” (including the terms “controlling,” “controlled by” and
“under common control with”) of a Person means the possession, direct or indirect, of the
power to direct or cause the direction of the management and policies of such Person,
whether through the ownership of Voting Interests or by contract.

     “Agent” means any of the Administrative Agent, the Lead Arrangers, the Co-Documentation
Agents and the Syndication Agent.

     “Agreement” has the meaning set forth in the preamble.

     “Agreement Value” means, for each Hedge Agreement, on any date of determination, an
amount reasonably determined by the Administrative Agent equal to the amount, if any, that
would be payable by any Loan Party or any of its Restricted Subsidiaries to its counterparty
to such Hedge Agreement in accordance with its terms as if (a) such Hedge Agreement was
being terminated early on such date of determination, and (b) such Loan Party or Restricted
Subsidiary was the sole “Affected Party.”

     “Applicable Lending Office” means, with respect to each Lender, such Lender’s Domestic
Lending Office in the case of a Base Rate Advance and such Lender’s Eurodollar Lending
Office in the case of a LIBOR Advance.

     “Applicable Premium” means, as of any date of determination, the present value at such
date, computed using a discount rate equal to the Treasury Rate plus 50 basis points, of (a)
the prepayment premium applicable to the Term Advances or the reduction of the total
Revolving Credit-Linked Deposit Amount on the first anniversary of the Effective Date, plus
(b) all interest, fees or return that would accrue on the portion of the Term Loan Facility
being prepaid or the amount of the reduction of the Total Revolving Credit-Linked Deposit
Amount from such date to the first anniversary of the Effective Date, computed using the
then Adjusted LIBOR for an Interest Period of three months plus the Applicable Spread on
such date.

     “Applicable Spread” means: (i) with respect to Base Rate Advances, the applicable “Base
Rate Spread” (expressed in basis points) which is a function of the “corporate family
credit” rating of the Borrower by Moody’s and S&P, as applicable, as

 

3

set forth on the table
below, and (ii) with respect to LIBOR Advances, the applicable
“LIBOR Spread” (expressed in basis points) which is a function of such ratings, as set
forth on the table below.

	 	 	 	 	 	 	 
	Category	 	Rating	 	LIBOR Spread	 	Base Rate Spread
	1

	 	Better than Ba3 or better

than BB-
	 	300 bps
	 	200 bps
	 
	 	 	 	 	 	 
	2

	 	Ba3 or BB-
	 	325 bps
	 	225 bps
	 
	 	 	 	 	 	 
	3

	 	Less than Ba3 or less than BB-
	 	375 bps
	 	275 bps
	 
	 	 	 	 	 	 
	4

	 	Unrated by both Moody’s and
S&P
	 	400 bps
	 	300 bps
	 
	 	 	 	 	 	 
	 

	 	*In the event that both
Category 1 and Category 2
apply, Category 1 shall be
used.	 	 	 	 
	 

	 	*In the event that Category 3
applies, and also either
Category 1 or 2 applies,
Category 2 shall be used.	 	 	 	 

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender,
(b) an Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that administers
or manages a Lender.

     “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender
and an Eligible Assignee (with the consent of any party whose consent is required by Section
11.07 or by the definition of “Eligible Assignee”), and accepted by the Administrative
Agent, in accordance with Section 11.07 and in substantially the form of Exhibit B hereto or
any other form approved by the Administrative Agent and the Borrower.

     “Bankruptcy Law” means Title 11, U.S. Code, or any similar foreign, federal or state
law for the relief of debtors.

     “Base Rate” means a fluctuating interest rate per annum in effect from time to time,
which rate per annum shall at all times be equal to the higher of:

     (a) the rate of interest announced by JPMorgan Chase Bank in New York, New
York, from time to time, as JPMorgan Chase Bank’s “Prime Rate”; and

     (b) 1/2 of 1% per annum above the Federal Funds Rate.

 

4

     “Base Rate Advance” means an Advance that bears interest as provided in Section
4.02(a)(i).

     “Board of Directors” means (a) with respect to a corporation, the board of directors of
the corporation, (b) with respect to a partnership, the board of directors of the general
partner of the partnership, and (c) with respect to any other Person, the Persons, the board
or committee of such Person serving a similar function.

     “Borrower” has the meaning specified in the recital of parties to this Agreement.

     “Borrower’s Account” means the account of the Borrower specified by the Borrower in
writing to the Administrative Agent from time to time.

     “Borrowing” means a borrowing consisting of simultaneous Advances of the same Type
under the same Facility.

     “Business Day” means a day of the year on which banks are not required or authorized by
law to close in New York City and, if the applicable Business Day relates to any LIBOR
Advances, on which dealings are carried on in the London interbank market.

     “Canadian Subsidiary” means any Foreign Subsidiary having its principal operations in
Canada.

     “Capital Expenditures” means, for any Person for any period, the sum of, without
duplication, all expenditures made, directly or indirectly, by such Person or any of its
Subsidiaries (or in the case of the Borrower or any Loan Party, solely its Restricted
Subsidiaries) during such period for equipment, fixed assets, real property or improvements,
or for replacements or substitutions therefor or additions thereto, that have been or should
be, in accordance with GAAP, reflected as additions to property, plant or equipment on a
Consolidated balance sheet of such Person. Capital Expenditures shall not include any such
expenditures which constitute (a) any acquisition permitted under Section 7.02(f) (including
any property, plant and equipment obtained as a part thereof), (b) to the extent permitted
by this Agreement, a reinvestment of the Net Cash Proceeds of any Asset Sale in accordance
with Section 4.01 or any issuance of Equity Interests by the Borrower permitted hereunder,
(c) expenditures of proceeds of insurance settlements, condemnation awards and other
settlements in respect of lost, destroyed, damaged or condemned assets, equipment or other
property to the extent such expenditures are made to replace or repair such lost, destroyed,
damaged or condemned assets, equipment or other property or otherwise to acquire, maintain,
develop, construct, improve, upgrade or repair assets or properties useful in the business
of the Borrower or its Subsidiaries within 12 months of receipt of such proceeds, (d)
expenditures that are accounted for as capital expenditures of such Person and that actually
are paid for by a third party (excluding any Loan Party) and for which no Loan Party has
provided or is required to provide or incur, directly or indirectly, any consideration or
obligation to such third party or any other person (whether before, during or after such
period), (e) property, plant and equipment

 

5

taken in settlement of an account, and (f) expenditures with the proceeds of an equity
issuance not otherwise required to be used to prepay the Facilities.

     “Capitalized Leases” means all leases that have been or should be, in accordance with
GAAP, recorded as capitalized leases.

     “Cash Equivalents” means:

     (a) securities issued or directly and fully guaranteed or insured by the United
States government (or, in the case of any Canadian Subsidiary, Canadian government
(federal or provincial)) or any agency or instrumentality of the United States
government (or Canadian government) (provided, that the full faith and credit of the
United States (or Canada (federal or provincial)), is pledged in support of those
securities) having maturities of not more than twenty-four months from the date of
acquisition;

     (b) certificates of deposit and eurodollar time deposits with maturities of 24
months or less from the date of acquisition, bankers’ acceptances with maturities
not exceeding twenty-four months and overnight bank deposits, in each case, with any
commercial bank having capital and surplus in excess of $500,000,000 and, as
applicable, a Thomson Bank Watch Rating of “B” or better;

     (c) repurchase obligations or securities lending arrangements for underlying
securities of the types described in clauses (a) and (b) above entered into with any
financial institution meeting the qualifications specified in clause (b) above;

     (d) commercial paper having a rating of at least “A-2” from S&P or “P-2” from
Moody’s and in each case maturing within 270 days after the date of acquisition or
asset-backed securities having a rating of at least “A” from S&P or “A2” from
Moody’s and in each case maturing within thirty-six months after the date of
acquisition;

     (e) demand or time deposit accounts used in the ordinary course of business
with overseas branches of commercial banks incorporated under the laws of the United
States of America, any state thereof or the District of Columbia (or, in the case of
any Canadian Subsidiary, Canada or any province or territory thereof), provided that
such commercial bank has, at the time of the Investment therein, (i) capital,
surplus and undivided profits (as of the date of such institution’s most recently
published financial statement) in excess of $100,000,000, and (ii) the long-term
unsecured debt obligations (other than such obligations rated on the basis of the
credit of a Person other than such institution) of such institution, at the time of
the Investment therein, are rated at least “A” from S&P or “A2” from Moody’s;

     (f) obligations (including, but not limited to demand or time deposits,
bankers’ acceptances and certificates of deposit) issued or guaranteed by a
depository institution or trust company incorporated under the laws of the
United

 

6

States of America, any state thereof or the District of Columbia (or, in the
case of any Canadian Subsidiary, Canada or any province or territory thereof),
provided that (i) such instrument has a final maturity not more than one year from
the date of purchase thereof, and (ii) such depository institution or trust company
has at the time of the Investment therein or contractual commitment providing for
such Investment, (A) capital, surplus and undivided profits (as of the date of such
institution’s most recently published financial statement) in excess of $100,000,000
and (B) the long-term unsecured debt obligations (other than such obligations rated
on the basis of the credit of a Person other than such institution) of such
institution, at the time of the Investment therein or contractual commitment
providing for such Investment, are rated at least “A” from S&P or “A2” from Moody’s;

     (g) (i) money market funds at least 95% of the assets of which constitute Cash
Equivalents of the kinds described in clauses (a) through (e) of this definition,
and (ii) money market funds which are rated at least “AAA” from S&P;

     (h) United States dollars or in the case of any Foreign Subsidiary, such local
currencies held by it from time to time in the ordinary course of business;

     (i) with respect to any Foreign Subsidiary having its principal operations in
Mexico only, (i) Certificados de la Tesoreria de la Federacion (Cetes), Bonos de
Desarrollo del Gobierno Federal (Bondes) or Bonos Adjustables del Gobierno Federal
(Adjustabonos), in each case, issued by the Mexican government; and (ii) any other
instruments issued or guaranteed by Mexico and denominated and payable in pesos;
provided, that, in each case, such investments under this clause (i) are made in the
ordinary course of business for cash management purposes; and

     (j) in the case of any Foreign Subsidiary, demand or time deposit accounts used
in the ordinary course of business with reputable commercial bank located in the
jurisdiction of organization of such Foreign Subsidiary.

Notwithstanding the foregoing, any investments which would otherwise constitute Cash
Equivalents of the kinds described in clauses (a), (b), (c) and (d) hereof that are
permitted to have maturities in excess of 12 months shall only be deemed to be Cash
Equivalents under this definition if and only if the total weighted average maturity of all
Cash Equivalents of the kinds described in clauses (a), (b), (c) and (d) does not exceed
twelve months on an aggregate basis.

     “Cash Infusion” means proceeds from the issuance of Equity Interests by the Borrower.
Any Cash Infusion provided by the required date for delivery of the reports set forth in
Section 7.03(b)(ii) for any Fiscal Quarter shall be treated as if such Cash Infusion had
been provided on the last day of such Fiscal Quarter. Only one Cash
Infusion shall be permitted to be included in EBITDA for any period of four Fiscal Quarters.

 

7

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended from time to time.

     “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability
Information System maintained by the U.S. Environmental Protection Agency.

     “Change of Control” means the occurrence of one or more of the following events:

     (a) any “person” or “group” (as such terms are used in Section 13(d) and 14(d)
of the Exchange Act), other than employee or retiree benefit plans or trusts
sponsored or established by the Borrower or another Loan Party, is or becomes the
“beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Borrower representing 35% or more of the combined
voting power of the Borrower’s then outstanding Voting Interests;

     (b) the following individuals cease for any reason to constitute more than a
majority of the number of directors then serving on the Board of Directors of the
Borrower: individuals who, on the date hereof, constitute the Board of Directors and
any new director (other than a director whose initial assumption of the office is in
connection with an actual or threatened election contest, including but not limited
to a consent solicitation, relating to the election of directors of the Borrower)
whose appointment or election by the Board of Directors or nomination for election
by the Borrower’s stockholders was approved (a) by the vote of at least a majority
of the directors then still in office or whose appointment, election or nomination
was previously so approved or recommended or (b) with respect to directors whose
appointment of election to the Board of Directors was made by the holders of the
Borrower’s nonconvertible junior preference stock, series B, by the holders of such
preference stock;

     (c) the shareholders of the Borrower shall approve any Plan of Liquidation
(whether or not otherwise in compliance with the provisions hereof);

     (d) the Borrower consolidates with or merges with or into another Person, other
than a merger or consolidation of the Borrower in which the holders of the common
stock of the Borrower outstanding immediately prior to the consolidation or merger
hold, directly or indirectly, at least a majority of the common stock of the
surviving corporation immediately after such consolidation or merger; or

     (e) the Borrower or any Restricted Subsidiary, directly or indirectly, sells,
assigns, conveys, transfers, leases or otherwise disposes of, in one
transaction or a series of related transactions, all or substantially all of
the property or assets of the Borrower and the Restricted Subsidiaries (determined
on a Consolidated basis) to any Person; provided, that neither (i) the merger of a

 

8

Restricted Subsidiary into the Borrower or into any other Restricted Subsidiary, nor
(ii) a series of transactions involving the sale of receivables or interests therein
in the ordinary course of business by a Finance Subsidiary in connection with a
Permitted Receivables Financing nor (iii) the grant of a lien on assets of the
Borrower or any Restricted Subsidiary in connection with Debt permitted under
Section 7.02(b)(xx) shall be deemed to be a Change of Control.

For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of the properties
or assets of one or more Restricted Subsidiaries, the Equity Interests of which constitutes
all or substantially all of the properties and assets of the Borrower, shall be deemed to be
the transfer of all or substantially all of the properties and assets of the Borrower.

     “Co-Documentation Agent” has the meaning specified in the recital of parties to this
Agreement.

     “Commitment” means a Term Commitment or a Revolving Commitment.

     “Confidential Information” means information that any Loan Party furnishes to any Agent
or any Lender, but does not include any such information that is or becomes generally
available to the public or that is or becomes available to such Agent or such Lender from a
source other than the Loan Parties that is not, to the best of such Agent’s or such Lender’s
knowledge, acting in violation of a confidentiality agreement with a Loan Party.

     “Consolidated” refers to the consolidation of accounts in accordance with GAAP.

     “Conversion,” “Convert” and “Converted” each refer to a conversion of Advances of one
Type into Advances of the other Type pursuant to Section 4.04 or 4.05.

     “Debt” of any Person means, without duplication, (a) all indebtedness of such Person
for borrowed money, (b) all Obligations of such Person for the accrued purchase price of
property or services (other than obligations under trade payables, deferred expenses,
deferred compensation and similar obligations arising in the ordinary course of business),
(c) all Obligations of such Person evidenced by notes, bonds, debentures or other similar
instruments, (d) all Obligations of such Person created or arising under any conditional
sale or other title retention agreement with respect to property acquired by such Person
(even though 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), (e) all Obligations
of such Person as lessee under Capitalized Leases, (f) all Obligations of such Person under
acceptance, letter of credit or similar facilities, (g) all Obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment in respect of any Equity
Interests in such Person or any other Person, to the extent either (i) such Obligations
would represent a claim against such Person in a proceeding under any
Bankruptcy Law or (ii) in the case of Redeemable Preferred Interests, such Interests
are redeemable by their terms or at the option of the holder prior to one year after the
Maturity Date, (h) all Obligations of such Person in respect of Hedge Agreements, valued

 

9

at
the Agreement Value thereof, (i) all Guaranteed Debt and Synthetic Debt of such Person and
(j) all indebtedness and other payment Obligations referred to in clauses (a) through (i)
above of another Person secured by (or for which the holder of such Debt has an existing
right, contingent or otherwise, to be secured by) any Lien on property (including, without
limitation, accounts and contract rights) owned by such Person, even though such Person has
not assumed or become liable for the payment of such indebtedness or other payment
Obligations.

     “Debt for Borrowed Money” of any Person means, at any date of determination, the sum of
(i) all items that, in accordance with GAAP, would be classified as indebtedness on a
Consolidated balance sheet of such Person at such date, (ii) all Obligations of such Person
under acceptance, letter of credit or similar facilities at such date and (iii) all
Synthetic Debt of such Person at such date.

     “Default” means any Event of Default or any event that would constitute an Event of
Default but for the passage of any grace period or the requirement that notice be given or
both.

     “Default Interest” has the meaning set forth in Section 4.02(b).

     “Disclosed Litigation” has the meaning specified in Section 5.01(b).

     “Disclosure Filings” means public filings made by the Borrower since December 31, 2004
pursuant to and in accordance with the Exchange Act filed and available to the public on or
before the date hereof and such further information as has been disclosed in writing to the
Agents and the Lenders on or before the date hereof.

     “Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or in the
Assignment and Acceptance pursuant to which it became a Lender, as the case may be, or such
other office of such Lender as such Lender may from time to time specify to the Borrower and
the Administrative Agent.

     “EBITDA” means, for any period:

     (a) the sum, determined on a Consolidated basis, of the Borrower and its
Restricted Subsidiaries’ (i) Consolidated net income (or net loss), (ii) aggregate
non-recurring, extraordinary or unusual charges, (iii) aggregate non-cash charges,
(iv) aggregate interest expenses, (v) aggregate income tax (including franchise
taxes in lieu thereof) expenses, (vi) aggregate depreciation expenses, (vii)
aggregate fees and expenses related to the provision of the Facilities, the tender
offers and the consent solicitations with respect to Existing Debt and the costs of
any refinancing of the Facilities, (viii) write-offs of debt discount and debt
issuance costs, (ix) aggregate amortization expenses, (x) all losses resulting from
any sale of assets or other disposition of property outside the ordinary course
of business, to the extent, in the case each of the items in clauses (ii) through
(x), deducted in arriving at such Consolidated net income (or loss), and (xi)
subject to

 

10

the limitation in the definition of “Cash Infusion” in this Section 1.01,
any Cash Infusion in respect of such period; minus

     (b) the sum of (i) all gains resulting from any sale of assets or other
disposition of property, including insurance and condemnation proceeds or and awards
with respect to the property of such Person (except to the extent that such proceeds
or awards are received in respect of a third party claim and are applied to pay such
claim or reimburse for the prior payment of such claim (including costs and
expenses)), occurring outside the ordinary course of business, (ii) all non-cash
gains, and (iii) any non-recurring, extraordinary or unusual gains, in each case to
the extent added in arriving at such Consolidated net income (or loss),

in each case determined in accordance with GAAP for such period on the basis of management’s
good faith calculations of the relative amounts allocable to Restricted Subsidiaries and
Unrestricted Subsidiaries, which shall be correct in all material respects; provided that
any amounts attributable to any other Person (other than a Restricted Subsidiary) shall be
included for that period only to the extent of the amount that has been actually received by
the Borrower or a Restricted Subsidiary in the form of cash dividends or other cash
distributions.

     “Effective Date” has the meaning specified in Section 5.01.

     “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender, (iii) an
Approved Fund, and (iv) any other Person (other than an individual) approved by the
Administrative Agent, such approval not to be unreasonably withheld or delayed; provided,
however, that no (x) Loan Party, (y) Affiliate of a Loan Party, or (z) competitor of any
Loan Party or Affiliate of such a competitor shall qualify as an Eligible Assignee
hereunder.

     “Environmental Action” means any action, suit, demand, demand letter, claim, written
notice of non compliance or violation, written notice of liability or potential liability,
investigation, proceeding, consent order or consent agreement relating in any way to any
Environmental Law, any Environmental Permit or Hazardous Material or arising from alleged
injury or threat to health, safety or the environment, including, without limitation, (a) by
any governmental or regulatory authority for enforcement, cleanup, removal, response,
remedial or other actions or damages, and (b) by any governmental or regulatory authority or
third party for damages, contribution, indemnification, cost recovery, compensation or
injunctive relief.

     “Environmental Law” means any Federal, state, local or foreign statute, law, ordinance,
rule, regulation, code, order, writ, judgment, injunction, decree or judicial or agency
interpretation, policy or guidance relating to pollution or protection of the environment,
health, safety or natural resources, including, without limitation, those
relating to the use, handling, transportation, treatment, storage, disposal, release or
discharge of Hazardous Materials.

 

11

     “Environmental Permit” means any permit, approval, identification number, license or
other authorization required under any Environmental Law.

     “Equity Interests” means, with respect to any Person, shares of capital stock of (or
other ownership or profit interests in) such Person, warrants, options or other rights for
the purchase or other acquisition from such Person of shares of capital stock of (or other
ownership or profit interests in) such Person, securities convertible into or exchangeable
for shares of capital stock of (or other ownership or profit interests in) such Person or
warrants, rights or options for the purchase or other acquisition
from such Person of such shares (or such other interests), and other ownership or profit interests in such Person
(including, without limitation, partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights or other
interests are existing on any date of determination.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and the regulations promulgated and rulings issued thereunder.

     “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member
of the controlled group of any Loan Party, or under common control with any Loan Party,
within the meaning of Section 414 of the Internal Revenue Code.

     “ERISA Event” means (a)(i) the occurrence of a reportable event, within the meaning of
Section 4043 of ERISA, with respect to any Plan unless the 30 day notice requirement with
respect to such event has been waived by the PBGC or (ii) the requirements of Section
4043(b) of ERISA apply with respect to a contributing sponsor, as defined in Section
4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (10), (11), (12) or
(13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan
within the following 30 days; (b) the application for a minimum funding waiver with respect
to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to
terminate such Plan, pursuant to Section 4041(a)(2) of ERISA (including any such notice with
respect to a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of
operations at the facilities of any Loan Party or any ERISA Affiliate in the circumstances
described in Section 4062(e) of ERISA; (e) the withdrawal by any Loan Party or any ERISA
Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial
employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a
lien under Section 302(f) of ERISA shall have been met with respect to any Plan; (g) the
adoption of an amendment to a Plan requiring the provision of security to such Plan pursuant
to Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a
Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition
described in Section 4042 of ERISA that constitutes grounds for the termination of, or the
appointment of a trustee to administer, such Plan.

     “Eurocurrency Liabilities” has the meaning specified in Regulation D of the Board of
Governors of the Federal Reserve System, as in effect from time to time.

 

12

     “Eurodollar Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule I hereto
or in the Assignment and Acceptance pursuant to which it became a Lender (or, if no such
office is specified, its Domestic Lending Office), or such other office of such Lender as
such Lender may from time to time specify to the Borrower and the Administrative Agent.

     “Events of Default” has the meaning specified in Article VIII.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “Existing Credit Agreement” has the meaning specified in the Preliminary Statements.

     “Existing Debt” means Debt of each Loan Party and its Restricted Subsidiaries
outstanding immediately before the occurrence of the Effective Date (exclusive of any Debt
under the Existing Credit Agreement).

     “Existing
Notes” means (a) the $400,000,000
93/8% senior notes due 2006; (b) the
$400,000,000 61/4% senior notes due 2012; (c) the $250,000,000 71/2% senior notes due 2011; (d)
the $190,000,000 21/2% senior convertible notes due 2007; and (e) the $220,000,000 43/4%
subordinated exchangeable notes due 2009.

     “Facilities” has the meaning specified in the Preliminary Statements.

     “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 published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average of the quotations for such day for
such transactions received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it.

     “Fee Letter” means any fee letters with respect to the Facilities to which the Borrower
and any Initial Lenders, the Lead Arrangers, the Syndication Agent, any Co-Documentation
Agent or the Administrative Agent are parties.

     “Finance Subsidiary” means NFC, any Subsidiary of NFC and any other Unrestricted
Subsidiary or any Restricted Subsidiary, in each case that provides wholesale, retail, lease
or other financing with respect to the business operations of the Borrower and its
Subsidiaries or to dealers or retail customers of the Borrower and its Subsidiaries.

     “Financial Officer” means, with respect to the Borrower, the chief financial officer of
the Borrower, the senior vice president — treasurer of the Borrower or the vice president
and controller of the Borrower.

 

13

     “Fiscal Quarter” means a fiscal quarter based upon a 12-month Fiscal Year of the
Borrower.

     “Fiscal Year” means a fiscal year of the Borrower and its Consolidated Subsidiaries
ending on October 31 in any calendar year.

     “Fixed Charge Coverage Ratio” means, for any Measurement Period, the ratio of (a)
Consolidated EBITDA, to (b) the sum (calculated without duplication) of (i) interest payable
on, and amortization of debt discount in respect of, all Debt for Borrowed Money giving
effect to Hedge Agreements, (ii) principal amounts of all Debt for Borrowed Money payable
(excluding all Existing Notes), (iii) all Capital Expenditures made, and (iv) all taxes paid
in cash (net of any cash refunds received), in each case, of or by the Borrower and its
Restricted Subsidiaries for or during such Measurement Period; provided that interest and
principal amounts of Debt for Borrowed Money (to the extent such Debt for Borrowed Money is
non-recourse to the Borrower and its Restricted Subsidiaries) and Capital Expenditures of
any variable interest entity (as defined by GAAP) shall be excluded from the calculation of
the Fixed Charged Coverage Ratio. Such ratio shall be based on management’s good faith
calculations of the relative amounts allocable to Restricted Subsidiaries and Unrestricted
Subsidiaries, which shall be correct in all material respects. Debt for Borrowed Money, for
purposes of this definition, shall include any Obligation of the Borrower or any Restricted
Subsidiary that is recharacterized or newly recognized as an Obligation of a lessee under
Capitalized Leases, in connection with the completion of the audit report for the annual
financial statements of the Borrower for each of the 2005 and 2006 Fiscal Years or any
restatement of its annual financial statements for the 2004 Fiscal Year or any prior Fiscal
Year (such inclusion to be consistent with the manner in which they are recharacterized or
newly recognized), but shall exclude any of their Obligations that are recharacterized or
newly recognized as Debt (other than Capitalized Leases), in connection with the completion
of any such audit reports or restatement.

     “Foreign Subsidiary” means any Subsidiary of the Borrower that is not organized under
the laws of the United States, any state thereof or the District of Columbia.

     “Fronting Fee” means a fronting fee in an amount agreed upon between the Borrower and
the applicable Issuing Bank, payable as agreed to by the Borrower and such Issuing Bank for
any Letter of Credit issued by such Issuing Bank; provided, that, it is agreed that to the
extent JPMorgan Chase Bank is acting as an Issuing Bank, the Fronting Fee shall be equal to
0.125% of the face amount of each Letter of Credit issued by it.

     “Fund” means any Person (other than an individual) that is or will be engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

     “GAAP” has the meaning specified in Section 1.03.

 

14

     “Governmental Authority” means any nation or government, any state, province, city,
municipal entity or other political subdivision thereof, and any governmental, executive,
legislative, judicial, administrative or regulatory agency, department, authority,
instrumentality, commission, board, bureau or similar body, whether federal, state,
provincial, territorial, local or foreign.

     “Governmental Authorization” means any authorization, approval, consent, franchise,
license, covenant, order, ruling, permit, certification, exemption, notice, declaration or
similar right, undertaking or other action of, to or by, or any filing, qualification or
registration with, any Governmental Authority.

     “Guaranteed Debt” means, with respect to any Person, any Obligation or arrangement of
such Person to guarantee or intended to guarantee any Debt (“primary obligations”) of any
other Person (the “primary obligor”) in any manner, whether directly or indirectly,
including, without limitation but without duplication, (a) the direct or indirect guarantee
(other than customary contractual indemnities or warranties in the ordinary course of
business), 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 the
Obligation of a primary obligor, (b) the Obligation to make take-or-pay or similar payments,
if required, regardless of nonperformance by any other party or parties to an agreement or
(c) any Obligation of such Person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security therefor, (ii)
to advance or supply funds (A) for the purchase or payment of any such primary obligation or
(B) to maintain working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, (iii) to purchase property,
assets, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary
obligation or (iv) otherwise to assure or hold harmless the holder of such primary
obligation against loss in respect thereof. The amount of any Guaranteed Debt shall be
deemed to be an amount equal to the stated or determinable amount of the primary obligation
in respect of which such Guaranteed Debt is made (or, if less, the maximum amount of such
primary obligation for which such Person may be liable pursuant to the terms of the
instrument evidencing such Guaranteed Debt) or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is required to
perform thereunder), as determined by such Person in good faith.

     “Guaranteed Obligations” has the meaning specified in Section 10.01(a).

     “Guarantors” means the Borrower and the Subsidiary Guarantors.

     “Guaranty” means the guaranty of the Guarantors set forth in Article X, together with
each Subsidiary Guaranty Supplement subsequently delivered pursuant to Section 7.01(i), in
each case as amended, amended and restated, modified or otherwise supplemented.

 

15

     “Hazardous Materials” means (a) petroleum or petroleum products, by-products or
breakdown products, radioactive materials, asbestos-containing materials, polychlorinated
biphenyls and radon gas and (b) any other chemicals, materials or substances designated,
classified or regulated as hazardous or toxic or as a pollutant or contaminant under any
Environmental Law.

     “Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate
future or option contracts, currency swap agreements, currency forward, future or option
contracts, commodity price/index swap, futures or option contracts, credit default swap or
option agreements and other hedging agreements.

     “Indemnified Party” has the meaning specified in Section 11.04(b).

     “Initial Borrowing Date” means the date of the first Borrowing to occur pursuant to the
terms hereof.

     “Initial Lenders” means the banks, financial institutions and other institutional
lenders listed on the signature pages hereof as the Initial Lenders.

     “Insufficiency” means, with respect to any Plan, the amount, if any, of its unfunded
benefit liabilities, as defined in Section 4001(a)(18) of ERISA.

     “Interest Period” means, for each LIBOR Advance comprising part of the same Borrowing,
the period commencing on the date of such LIBOR Advance or the date of the Conversion of any
Base Rate Advance into such LIBOR Advance, and ending on the last day of the period selected
by the Borrower pursuant to the provisions below and, thereafter, each subsequent period
commencing on the last day of the immediately preceding Interest Period and ending on the
last day of the period selected by the Borrower pursuant to the provisions below. The
duration of each such Interest Period shall be one, two, three or six months (or, if made
available to all Lenders, a period of two weeks, nine or 12 months, or any other period
reasonably requested by the Borrower), as the Borrower may, upon notice received by the
Administrative Agent not later than 11:00 A.M. (New York City time) on the third Business
Day prior to the first day of such Interest Period, select; provided, however, that:

     (a) the Borrower may not select any Interest Period with respect to any LIBOR
Advance that ends after the Maturity Date;

     (b) Interest Periods commencing on the same date for LIBOR Advances comprising
part of the same Borrowing shall be of the same duration;

     (c) whenever the last day of any Interest Period would otherwise occur on a day
other than a Business Day, the last day of such Interest Period shall be extended to
occur on the next succeeding Business Day, provided, however, that, if such
extension would cause the last day of such Interest Period to occur in the next
following calendar month, the last day of such Interest Period shall occur on the
next preceding Business Day; and

 

16

     (d) whenever the first day of any Interest Period occurs on a day of an initial
calendar month for which there is no numerically corresponding day in the calendar
month that succeeds such initial calendar month by the number of months equal to the
number of months in such Interest Period, such Interest Period shall end on the last
Business Day of such succeeding calendar month.

For each determination of a rate per annum provided to Section 3.05(d), “Interest
Period” shall be determined in a manner consistent with the foregoing (except that
clause (a) shall not apply to any such determination).

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time, and the regulations promulgated and rulings issued thereunder.

     “Investment” in any Person means any loan or advance to such Person, any purchase or
other acquisition of any Equity Interests or Debt or the assets comprising a division or
business unit or all or substantially all of the business of such Person, any capital
contribution to such Person or any other direct or indirect investment in such Person,
including, without limitation, any acquisition by way of a merger or consolidation (or
similar transaction) and any arrangement pursuant to which the investor incurs Debt of the
types referred to in clause (i) or (j) of the definition of “Debt” in respect of such
Person; provided, however, that for purposes of calculation, the amount of any
Investment outstanding at any time shall be the aggregate cash Investment less all cash
returns, cash dividends and cash distributions (or the fair market value of any non-cash
returns, dividends and distributions) received by such Person and less all liabilities
expressly assumed by another Person in connection with the sale of such Investment.

     “Issuing Bank” means, with respect to any Letter of Credit, JPMorgan Chase Bank and its
Affiliates including Chase Manhattan Bank (Delaware) or such other Lender, reasonably
acceptable to the Borrower, which has agreed to issue such Letter of Credit.

     “JPMorgan Chase Bank” has the meaning specified in the recital of parties to this
Agreement.

     “JPM Securities” has the meaning specified in the recital of parties to this Agreement.

     “Lead Arrangers” has the meaning specified in the recital of parties to this Agreement.

     “Lender” means each Initial Lender and each Person that shall become a Lender hereunder
pursuant to Section 11.07 for so long as such Initial Lender or Person, as the case may be,
shall be a party to this Agreement.

     “Letter of Credit” means any letter of credit, bank guarantee or similar instrument
issued by an Issuing Bank pursuant to Section 3.06.

 

17

     “Letter of Credit Disbursement” means a payment or disbursement made by an Issuing Bank
pursuant to a Letter of Credit.

     “Letter of Credit Exposure” means at any time the sum of (a) the aggregate undrawn
amount of all outstanding Letters of Credit and (b) the aggregate amount of all Letter of
Credit Disbursements not yet reimbursed by the Borrower principal.

     “LIBOR” means, with respect to any Interest Period applicable to any LIBOR Advance or
to a determination of a rate per annum pursuant to Section 3.05(d), the rate per annum
determined by the Administrative Agent at approximately 11:00 a.m. (London time) on the date
that is two Business Days prior to the beginning of the relevant Interest Period by
reference to the British Bankers’ Association Interest Settlement Rates for deposits in
Dollars (as set forth by the Bloomberg Information Service or any successor thereto or any
other service selected by the Administrative Agent which has been nominated by the British
Bankers’ Association as an authorized information vendor for the purpose of displaying such
rates) for a period equal to such Interest Period; provided that, to the extent that an
interest rate is not ascertainable pursuant to the foregoing provisions of this definition,
the “LIBOR” shall be the interest rate per annum determined by the Administrative Agent to
be the average of the rates per annum at which deposits in Dollars are offered for such
relevant Interest Period to major banks in the London interbank market in London, England by
the Administrative Agent at approximately 11:00 a.m. (London time) on the date that is two
Business Days prior to the beginning of such Interest Period.

     “LIBOR Advance” means an Advance that bears interest as provided in Section
4.02(a)(ii).

     “Lien” means any lien, security interest, encumbrance or other charge of any kind, or
any other type of preferential arrangement, including, without limitation, the lien or
retained security title of a conditional vendor and any easement, right of way or other
encumbrance on title to real property.

     “Loan Documents” means (a) this Agreement, (b) the Notes, (c) all Subsidiary Guaranty
Supplements entered into after the date hereof, and (d) the Fee Letter, in each case as
amended.

     “Loan Parties” means the Borrower and the Subsidiary Guarantors.

     “Margin Stock” has the meaning specified in Regulation U.

     “Master Intercompany Agreements” means (a) the Master Intercompany Agreement, dated as
of April 26, 1993, between NFC and International Truck and Engine Corporation (formerly
known as Navistar International Transportation Corp.), as amended; (b) the agreement, dated
as of December 18, 1986, among Navistar International Corporation Canada, Navistar Financial
Corporation Canada Inc. and General Electric Canadian Holdings Limited; and (c) one or more
similar agreements among the Borrower or one or more of its Restricted Subsidiaries and one
or more other Persons (including, without limitation, Unrestricted Subsidiaries that
comprise the

 

18

Borrower’s financial service operations with terms and conditions consistent
with the Borrower’s past practice and entered into in the ordinary course of business) on
terms no less favorable to the Borrower and its Restricted Subsidiaries than the agreements
in clauses (a) and (b) hereof, as each such agreement may be amended, modified, supplemented
or restated from time to time; provided, that none of the aforementioned agreements shall be
amended, modified, supplemented or restated in a manner adverse in any material respect to
the interests of Borrower or its Restricted Subsidiaries.

     “Material Adverse Change” means any material adverse change in the business, financial
condition, operations, performance or properties of the Borrower and its Subsidiaries, taken
as a whole (other than to the extent disclosed in the Disclosure Filings).

     “Material Adverse Effect” means a material adverse effect on (a) the business,
financial condition, operations, performance or properties of the Borrower and its
Subsidiaries, taken as a whole, (b) the rights and remedies of the Agents and the Lenders
under the Loan Documents or (c) the ability of the Loan Parties to perform their Obligations
under the Loan Documents.

     “Maturity Date” means the fifth anniversary of the Initial Borrowing Date.

     “Measurement Period” means each period of four consecutive fiscal quarters of the
Borrower.

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

     “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, to which any Loan Party or any ERISA Affiliate is making or accruing an obligation to
make contributions, or has within any of the preceding five plan years made or accrued an
obligation to make contributions.

     “Multiple Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of any Loan Party or any ERISA
Affiliate and at least one Person other than the Loan Parties and the ERISA Affiliates or
(b) was so maintained and in respect of which any Loan Party or any ERISA Affiliate could
have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were
to be terminated.

     “Net Cash Proceeds” means:

     (a) with respect to any sale, lease, transfer or other disposition of any asset
of the Borrower or any of its Restricted Subsidiaries (other than any sale, lease,
transfer or other disposition of assets pursuant to clauses (i), (iii) and (v)
through (xii) of Section 7.02(e), but including any insurance and condemnation
proceeds received with respect to property of such Person), the excess, if any, of
(i) the sum of cash and Cash Equivalents received in connection with such sale,
lease, transfer or other disposition (including any cash or Cash Equivalents
received by way of deferred payment pursuant to, or by monetization of, a note

 

19

receivable or otherwise, but only as and when so received) over, (ii) the sum of (A)
the principal amount of any Debt (other than Debt under the Loan Documents) that is
secured by such asset and that is required to be repaid in connection with such
sale, lease, transfer or other disposition thereof, (B) the out-of-pocket costs,
fees, commissions, premiums and expenses incurred by the Borrower or its Restricted
Subsidiaries, (C) federal, state, provincial, foreign and local taxes reasonably
estimated (on a Consolidated basis) to be actually payable within the current or the
immediately succeeding tax year as a result of any gain recognized in connection
therewith, and (D) a reasonable reserve or amounts placed in a funded escrow for (x)
any purchase price adjustment or any indemnification payments (fixed and contingent)
attributable to the seller’s obligations to the purchaser undertaken by the Borrower
or any of its Restricted Subsidiaries in connection with such sale, lease, transfer
or other disposition (but excluding any purchase price adjustment or any indemnity
that, by its terms, will not under any circumstances be made prior to the Maturity
Date) or (y) any other liabilities retained associated with the property sold;
provided, however, that, except to the extent that the total aggregate amount of
proceeds received from sales, leases, transfers or other dispositions of assets by
the Borrower and its Restricted Subsidiaries pursuant to Section 7.02(e)(ii) and
(iv) shall exceed $350,000,000, Net Cash Proceeds shall not include any such amounts
to the extent such amounts are reinvested in assets used or useful in the business
of the Borrower and its Restricted Subsidiaries within 12 months after the date of
receipt thereof;

     (b) with respect to the incurrence or issuance of any Debt by the Borrower or
any of its Restricted Subsidiaries (other than Debt incurred or issued pursuant to
Section 7.02(b), the excess of (i) the sum of the cash and Cash Equivalents received
in connection with such incurrence or issuance over (ii) the underwriting discounts
and commissions or other similar payments, and other out-of-pocket costs, fees,
commissions, premiums and expenses incurred by the Borrower or any of its Restricted
Subsidiaries in connection with such incurrence or issuance to the extent such
amounts were not deducted in determining the amount referred to in clause (i); and

     (c) with respect to the sale or issuance of any Equity Interests by the
Borrower or any Restricted Subsidiary, the excess of (i) the sum of the cash and
Cash Equivalents received in connection with such sale or issuance over (ii) the
underwriting discounts and commissions or similar payments, and other out-of-
pocket costs, fees, commissions, premiums and expenses, incurred by the
Borrower or any of its Restricted Subsidiaries in connection with such sale or
issuance to the extent such amounts were not deducted in determining the amount
referred to in clause (i); provided, however, that Net Cash Proceeds shall not
include any funds received in connection with the exercise of stock options granted
to employees, directors or consultants of the Borrower or any of its Restricted
Subsidiaries.

“NFC” means Navistar Financial Corporation, a Delaware corporation.

 

20

     “Note” means a promissory note of the Borrower payable to the order of any Lender, in
substantially the form of Exhibit A-1 or A-2 hereto, as the case may be, evidencing the
indebtedness of the Borrower to such Lender resulting from the Term Advance or Revolving
Advances made by such Lender, as amended.

     “Notice of Revolving Borrowing” has the meaning specified in Section 3.02(a).

     “Notice of Term Borrowing” has the meaning specified in Section 2.02(a).

     “NPL” means the National Priorities List under CERCLA.

     “Obligation” means, with respect to any Person, any payment, performance or other
obligation of such Person of any kind, including, without limitation, any liability of such
Person on any claim, whether or not the right of any creditor to payment in respect of such
claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
disputed, undisputed, legal, equitable, secured or unsecured, and whether or not such claim
is discharged, stayed or otherwise affected by any proceeding referred to in subsection (f)
of Article VIII. Without limiting the generality of the foregoing, the Obligations of any
Loan Party under the Loan Documents include (a) the obligation to pay principal, interest,
charges, expenses, fees, attorneys’ fees and disbursements, indemnities and other amounts
payable by such Loan Party under any Loan Document and (b) the obligation of such Loan Party
to reimburse any amount in respect of any of the foregoing that any Lender, in its sole
discretion, may elect to pay or advance on behalf of such Loan Party.

     “Other Taxes” has the meaning specified in Section 4.07(b).

     “PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into
law October 26, 2001.

     “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

     “Permitted Joint Venture” means any Person which is, directly or indirectly, through
its subsidiaries or otherwise, engaged principally in any business in which the Borrower is
engaged, or a reasonably related, ancillary or complementary business, and the Equity
Interests of which (i) is owned by the Borrower or a Restricted Subsidiary and
one or more Persons other than the Borrower or any affiliate of the Borrower or (ii) is
acquired by the Borrower or a Restricted Subsidiary, so long the Borrower and its Restricted
Subsidiaries shall be in pro forma compliance with the covenants set forth in Section 7.04
immediately after giving effect to such acquisition.

     “Permitted Liens” means such of the following: (a) Liens for taxes, assessments and
governmental charges or levies to the extent not required to be paid under Section 7.01(b);
(b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and
repairmen’s Liens and other similar Liens arising in the ordinary course of business
securing obligations that are not overdue for a period of more than 30 days; (c) pledges or
deposits in the ordinary course of business to secure obligations under

 

21

workers’
compensation laws or similar legislation or to secure public or statutory obligations; (d)
deposits to secure the performance of bids, trade contracts and leases (other than Debt for
Borrowed Money), statutory obligations, surety bonds (other than bonds related to judgments
or litigation), performance bonds and other obligations of a like nature incurred in the
ordinary course of business; (e) Liens securing judgments (or the payment of money not
constituting an Event of Default under subsection (g) of Article VIII or securing appeal or
other surety bonds related to such judgments, (f) Liens securing reimbursement obligations
with respect to trade letters of credit that encumber documents and goods acquired in
connection with such letters of credit and the products and proceeds thereof; (g) Liens in
favor of customs and revenue authorities arising as a matter of law to secure payment of
nondelinquent customs duties in connection with the importation of goods in the ordinary
course of business; (h) Liens encumbering deposits made in the ordinary course of business
to secure nondelinquent obligations arising from statutory, regulatory, contractual or
warranty requirements of the Borrower or its Restricted Subsidiaries for which a reserve or
other appropriate provision, if any, as may be required by GAAP has been made; (i) Liens
arising out of consignment or similar arrangements for the sale of goods entered into by the
Borrower or its Restricted Subsidiaries in the ordinary course of business and in accordance
with industry practice; and (j) easements, rights of way, zoning ordinances and similar
charges, title defects or other irregularities and other encumbrances on title to real
property that do not materially adversely affect the use of such property for its present
purposes.

     “Permitted Receivable Financing” means any receivable financing facility or arrangement
consistent with the Borrower’s past practice and entered into in the ordinary course of the
Borrower’s business pursuant to which a Finance Subsidiary purchases or otherwise acquires
accounts receivable of the Borrower or any Restricted Subsidiary and enters into a third
party financing thereof on terms that are market and customary to the Borrower and its
Restricted Subsidiaries, and in an aggregate amount not to exceed $25,000,000 in any fiscal
year.

     “Person” means an individual, partnership, limited partnership, limited liability
partnership, corporation (including a business trust), limited liability company, joint
stock company, trust, unincorporated association, joint venture or other entity, or a
government or any political subdivision or agency thereof.

     “Plan” means a Single Employer Plan or a Multiple Employer Plan.

     “Plan of Liquidation” means, with respect to any Person, a plan (including by operation
of law) that provides for, contemplates or the effectuation of which is preceded or
accompanied by (whether or not substantially contemporaneously) (a) the sale, lease,
conveyance or other disposition of all or substantially all of the assets of such Person;
and (b) the distribution of all or substantially all of the proceeds of sale, lease,
conveyance or other disposition and all or substantially all of the remaining assets of such
Person to holders of Equity Interests of such Person.

 

22

     “Post-Petition Interest” means all interest and expenses accruing after the
commencement of a proceeding under any Bankruptcy Law, whether or not constituting an
allowed claim in such proceeding.

     “Preferred Interests” means, with respect to any Person, Equity Interests issued by
such Person that are entitled to a preference or priority over any other Equity Interests
issued by such Person upon any distribution of such Person’s property and assets, whether by
dividend or upon liquidation.

     “Receivables Facility” means the Amended and Restated Credit Agreement dated as of July
1, 2005, as amended as of the Effective Date, among NFC, JPMorgan Chase Bank, N.A., as
administrative agent and the other parties referred to therein, as amended, supplemented,
amended and restated or otherwise modified from time to time, and the related guarantee by
the Borrower; provided that such agreement shall not be amended, supplemented, amended and
restated or otherwise modified in a manner adverse in any material respect to the interests
of the Borrower or its Restricted Subsidiaries.

     “Redeemable” means, with respect to any Equity Interest, any such Equity Interest that
(a) the issuer has undertaken to redeem at a fixed or determinable date or dates, whether by
operation of a sinking fund or otherwise, or upon the occurrence of a condition not solely
within the control of the issuer or (b) is redeemable at the option of the holder.

     “Register” has the meaning specified in Section 11.07(d).

     “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve
System, as in effect from time to time.

     “Required Lenders” means, at any time, Lenders owed or holding more than 50% of the sum
of (a) the aggregate principal amount of the Term Advances outstanding at such time, and (b)
the aggregate amount of the Revolving Credit-Linked Deposits, the Revolving Advances and the
participations in the Letter of Credit Disbursements.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer, senior vice president, vice president, controller or chief accounting
officer of the Borrower or any Subsidiary Guarantor.

     “Restricted Subsidiary” means a Subsidiary of the Borrower other than an Unrestricted
Subsidiary.

     “Revolving Advance” has the meaning specified in Section 3.01.

     “Revolving Commitment” means, with respect to any Lender at any time, the amount set
forth opposite such Lender’s name on Schedule I hereto under the caption “Revolving
Commitment” or, if such Lender has entered into one of more Assignment and Acceptances, set
forth for such Lender in the Register maintained by the Administrative Agent pursuant to
Section 11.07(d) as such Lender’s “Revolving Commitment,” as such amount may be reduced at
or prior to such time pursuant to

 

23

Section 3.04, which amount in any event shall be equal to
the obligation of such Lender to make or maintain a deposit in its Revolving Credit-Linked
Deposit Account in accordance with this Agreement and to permit such deposit to be used to
fund Revolving Advances and support Letters of Credit as provided in this Agreement. From
and after the Effective Date, the aggregate amount of the Revolving Commitments (unless they
have been terminated) shall be equal to the Total Credit-Linked Deposit Amount from time to
time in effect. The aggregate amount of the Revolving Commitments on the Effective Date is
$400,000,000.

     “Revolving Credit-Linked Deposit” means with respect to any Lender at any time, amounts
actually on deposit in its Revolving Credit-Linked Deposit Account at such time.

     “Revolving Credit-Linked Deposit Account” has the meaning set forth in Section 3.05.

     “Revolving Credit-Linked Deposit Amount” means, with respect to each Lender, an amount
equal to the amount set forth opposite such Lender’s name on Schedule I hereto, as the same
may be reduced from time to time pursuant to this Agreement. For the avoidance of doubt,
the Revolving Credit-Linked Deposit Amount of each Lender shall not be reduced by the making
of any Revolving Advances or reimbursement of drawings under Letters of Credit as a result
of the withdrawal of any amounts then on deposit in such Lender’s Revolving Credit-Linked
Account. Any reduction of the Total Revolving Credit-Linked Report Amount shall reduce
ratably the Revolving Credit-Linked Deposit Amounts of the Lenders under the Revolving
Facility.

     “Revolving Credit-Linked Deposit Return Date” means the date that the Revolving
Credit-Linked Accounts are closed pursuant to Section 3.05(c)(vi).

     “Revolving Credit-Linked Return” has the meaning specified in Section 3.05(d).

     “Revolving Facility” has the meaning specified in the Preliminary Statements.

     “Revolving Settlement Date” means the earlier to occur of (i) the Maturity Date and
(ii) the date of an acceleration of payment of the Obligations relating to the
Revolving Facility or termination of the Revolving Commitments pursuant to Article
VIII.

     “Sale/Lease-back Transaction” means an arrangement relating to property now owned or
hereafter acquired whereby the Borrower or a Restricted Subsidiary transfers such property
to a Person and the Borrower or a Restricted Subsidiary leases it from such Person.

     “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.

     “SEC” means the United States Securities and Exchange Commission.

 

24

     “Shy Settlement” shall mean that certain Amended and Restated Settlement Agreement
dated June 30, 1993 in reference to the class action of Shy et. Al v. Navistar, Civil Action
No. C-3-92-333 (S.D. Ohio).

     “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15)
of ERISA, that (a) is maintained for employees of any Loan Party or any ERISA Affiliate and
no Person other than the Loan Parties and the ERISA Affiliates or (b) was so maintained and
in respect of which any Loan Party or any ERISA Affiliate could have liability under Section
4069 of ERISA in the event such plan has been or were to be terminated.

     “Solvent” and “Solvency” mean, with respect to any Person on a particular date, that on
such date (a) the fair value of the property of such Person (on a going concern basis) is
greater than the total amount of liabilities, including, without limitation, contingent
liabilities, of such Person, (b) the present fair salable value of the assets (on a going
concern basis) of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and matured, (c) such
Person does not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such
Person is not engaged in business or a transaction, and is not about to engage in business
or a transaction, for which such Person’s property would constitute an unreasonably small
capital. The amount of contingent liabilities at any time shall be computed as the amount
that, in the 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.

     “Statutory Reserve Percentage” means, for any Interest Period, for all LIBOR Advances
comprising part of the same Borrowing, the reserve percentage applicable two Business Days
before the first day of such Interest Period under regulations issued from time to time by
the Board of Governors of the Federal Reserve System (or any successor) for determining the
maximum reserve requirement (including, without limitation, any emergency, supplemental or
other marginal reserve requirement) for a member bank of the Federal Reserve System in New
York City with respect to liabilities or assets consisting of or including Eurocurrency
Liabilities (or with respect to any other category
of liabilities that includes deposits by reference to which the interest rate on LIBOR
Advances is determined) having a term equal to such Interest Period.

     “Subordinated Debt” means any Debt of any Loan Party that is subordinated to the
Obligations of such Loan Party under the Loan Documents on and that otherwise contains,
terms and conditions reasonably satisfactory to the Required Lenders.

     “Subordinated Obligations” has the meaning specified in Section 10.06.

     “Subsidiary” of any person means any corporation, partnership, joint venture, limited
liability company, trust or estate of which (or in which) more than 50% of (a) the issued
and outstanding Equity Interests having ordinary voting power to elect a majority of the
Board of Directors of such corporation (irrespective of whether at the time Equity

 

25

Interests
of any other class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the right or power to direct, in the case of any entity
of which such Person or any of its Subsidiaries is a general partner, or both the beneficial
ownership of and the right or power to direct, in any other case, such limited liability
company, partnership or joint venture, or (c) the beneficial interest in such trust or
estate is at the time directly or indirectly owned or controlled by such Person, by such
Person and one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries.

     “Subsidiary Guarantors” means (a) the Subsidiaries of the Borrower listed on Schedule
II hereto, and (b) each other Subsidiary of the Borrower that shall be required to execute
and deliver a Subsidiary Guaranty Supplement pursuant to Section 7.01(i).

     “Subsidiary Guaranty Supplement” has the meaning specified in Section 10.05.

     “Support Agreement” means the Parent’s Side Agreement dated as of July 1, 2005, as
amended as of the Effective Date, between the Borrower and International Truck and Engine
Corporation, as it may be amended, modified, supplemented or restricted from time to time;
provided that such agreement shall not be amended, supplemented, amended and restated or
otherwise modified in a manner adverse in any material respect to the interests of the
Borrower or its Restricted Subsidiaries.

     “Syndication Agent” has the meaning specified in the recital of parties to this
Agreement.

     “Synthetic Debt” means, with respect to any Person, without duplication of any clause
within the definition of “Debt,” all (a) Obligations of such Person under any lease that is
treated as an operating lease for financial accounting purposes and a financing lease for
tax purposes (i.e., a “synthetic lease”), (b) Obligations of such Person in respect of
transactions entered into by such Person, the proceeds from which would be reflected on the
financial statements of such Person in accordance with GAAP as cash flows from financings at
the time such transaction was entered into (other than as a result of the issuance of Equity
Interests) and (c) Obligations of such Person in respect of other transactions entered into
by such Person that are not otherwise addressed in the definition
of “Debt” or in clause (a) or (b) above that are intended to function primarily as a
borrowing of funds (including, without limitation, any minority interest transactions that
function primarily as a borrowing).

     “Tax Allocation Agreements” means (a) the Tax Allocation Agreement among International
Truck and Engine Corporation and its affiliated group, effective as of October 1, 1981, as
it has been and may be amended and/or supplemented from time to time, and (b) the Tax
Allocation Agreement between the Borrower and International Truck and Engine Corporation,
effective April 1, 1987, as it has been and may be amended and/or supplemented from time to
time; provided, that such agreements shall not be amended, supplemented, amended and
restated or otherwise modified in a manner adverse in any material respect to the interests
of the Borrower or its Restricted Subsidiaries.

 

26

     “Taxes” has the meaning specified in Section 4.07(a).

     “Term Advance” has the meaning specified in Section 2.01.

     “Term Commitment” means, with respect to any Lender at any time, the amount set forth
opposite such Lender’s name on Schedule I hereto under the caption “Term Commitment” or, if
such Lender has entered into one of more Assignment and Acceptances, set forth for such
Lender in the Register maintained by the Administrative Agent pursuant to Section 11.07(d)
as such Lender’s “Term Commitment.” The aggregate amount of the Term Commitments is
$1,100,000,000.

     “Term Loan Facility” has the meaning specified in the Preliminary Statements.

     “Total Revolving Credit-Linked Deposit Amount” means, at any time, the sum of all
Revolving Credit-Linked Deposit Amounts at such time. The Total Revolving Credit-Linked
Deposit Amount on the Effective Date is $400,000,000.

     “Treasury Rate” means, with respect to any date of determination, the yield to maturity
at the time of computation of United States Treasury securities with a constant maturity (as
compiled and published in the most recent Federal Reserve Statistical Release H.15(519) that
has become publicly available at least two Business Days prior to such date (or, if such
Statistical Release is no longer published, any publicly available source of similar market
data)) most nearly equal to the period from such date to the first day after the second
anniversary of the Effective Date; provided, however, that if the period
from such date to the first day after the second anniversary of the Effective Date is not
equal to the constant maturity of a United States Treasury security for which a weekly
average yield is given, the Treasury Rate shall be obtained by linear interpolation
(calculated to the nearest one-twelfth of a year) from the weekly average yields of United
States Treasury securities for which such yields are given, except that if the period from
such date to the first date after the second anniversary of the Effective Date is less than
one year, the weekly average yield on actually traded United States Treasury securities
adjusted to a constant maturity of one year shall be used.

     “Type” refers to the distinction between Advances bearing interest at the Base Rate and
Advances bearing interest at LIBOR.

     “United States” means the United States of America.

     “Unrestricted Subsidiary” means (a) each entity listed on Schedule III hereto; (b) any
Subsidiary of an Unrestricted Subsidiary; and (c) any Subsidiary so designated by the Board
of Directors of the Borrower, so long as such Subsidiary is (i) newly formed for the purpose
of becoming an Unrestricted Subsidiary, and (ii) has equity capital of less than $1,000.

     “Voting Interests” means shares of Equity Interests issued by a corporation, or
equivalent Equity Interest in any other Person, the holders of which are ordinarily, in the
absence of contingencies, entitled to vote for the election of directors (or persons

 

27

performing similar functions) of such Person, even if the right so to vote has been
suspended by the happening of such a contingency.

     “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title IV of
ERISA.

     SECTION 1.02. Computation of Time Periods; Other Definitional Provisions. In this
Agreement and the other Loan Documents in the computation of periods of time from a specified date
to a later specified date, the word “from” means “from and including” and the words “to” and
“until” each mean “to but excluding.” References in the Loan Documents to any agreement or contract
“as amended” shall mean and be a reference to such agreement or contract as amended, amended and
restated, supplemented or otherwise modified from time to time in accordance with its terms.
References in the Loan Documents to “knowledge” or “aware” or words of similar import shall mean,
when used in reference to the Borrower or the Subsidiary Guarantors, shall mean the actual
knowledge of any Responsible Officer.

     SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with generally accepted accounting principles consistent with
those applied in the preparation of the financial statements referred to in Section 6.01(i)
(“GAAP”). Notwithstanding anything to the contrary contained herein, no Default or Event of
Default shall occur as a result of any Loan Party breaching the terms and conditions contained in
Section 7.02 as a result of (i) any change in the accounting treatment (including any
recharacterization or new recognition) of, any Obligations, assets, contractual or other
arrangements, transactions or relationships in connection with the completion of the audit report
for the annual financial statements of the Borrower for each of the 2005 and 2006 Fiscal Years or
any restatement of its annual financial statements for the 2004 Fiscal Year or any prior Fiscal
Year or (ii) accounting treatment which is inconsistent with the Borrower’s accounting practices in
effect on the Closing Date.

     SECTION 1.04. Currency Equivalents Generally. Any amount specified in this Agreement
(other than in Articles II, III, IV, IX and XI) or any of the other Loan Documents to be in U.S.
dollars shall also include the equivalent of such amount in any currency other than U.S. dollars,
such equivalent amount to be determined at the rate of exchange quoted by
JPMorgan Chase Bank in New York, New York at the close of business on the Business Day
immediately preceding any date of determination thereof, to prime banks in New York, New York for
the spot purchase in the New York foreign exchange market of such amount in U.S. dollars with such
other currency.

ARTICLE II

AMOUNTS AND TERMS OF THE TERM ADVANCES

     SECTION 2.01. Term Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make an advance (a “Term Advance”) to the Borrower on the
Effective Date in an amount equal to such Lender’s Term Commitment. The Borrowing of Term Advances
shall consist of Term Advances made simultaneously by Lenders ratably according to

 

28

their Term
Commitments. Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed.

     SECTION 2.02. Making the Term Advances. (a) The Term Advances shall be made on
notice, given (x) not later than 11:00 A.M. (New York City time) on the third Business Day prior to
the date of the proposed Borrowing thereof in the case of a Borrowing of Term Advances consisting
of LIBOR Advances, or (y) not later than 9:00 A.M. (New York City time) on the Effective Date in
the case of a Borrowing of Term Advances consisting of Base Rate Advances, by the Borrower to the
Administrative Agent, which shall give to each Lender prompt notice thereof by facsimile or
electronic transmission. Each such notice of a Borrowing of Term Advances (a “Notice of Term
Borrowing”) shall be by telephone or electronic transmission, confirmed promptly in writing, or by
telecopier, and specifying therein (i) the requested date of such Borrowing, (ii) the requested
Type of Advances comprising such Borrowing, and (iii) in the case of a Borrowing consisting of
LIBOR Advances, the requested initial Interest Period for each such Advance. Each Lender shall,
before 11:00 A.M. (New York City time) on the date of such Borrowing, make available for the
account of its Applicable Lending Office to the Administrative Agent at the Administrative Agent’s
Account, in same day funds, such Lender’s ratable portion of such Borrowing in accordance with the
Term Commitment of such Lender. After the Administrative Agent’s receipt of such funds and upon
fulfillment of the applicable conditions set forth in Article V, the Administrative Agent will make
such funds available to the Borrower by crediting the Borrower’s Account.

          (b) Each Notice of Term Borrowing shall be irrevocable and binding on the Borrower other than
as set forth in Section 4.05(b). In the case of any Borrowing that the related Notice of Term
Borrowing specifies is to be comprised of LIBOR Advances, the Borrower shall indemnify each Lender
against any actual loss (other than lost profit), cost or expense incurred by such Lender as a
result of any failure to fulfill on or before the date specified in such Notice of Term Borrowing
for such Borrowing the applicable conditions set forth in Article V, including, without limitation,
any actual loss, cost or expense incurred by reason of the liquidation or reemployment of deposits
or other funds acquired by such Lender to fund the Term Advance to be made by such Lender as part
of such Borrowing when such Term Advance, as a result of such failure, is not made on such date.

          (c) Unless the Administrative Agent shall have received notice from a Lender prior to the
Effective Date that such Lender will not make available to the Administrative Agent such Lender’s
ratable portion of the Borrowings of Term Advances, the Administrative Agent may assume that such
Lender has made such portion available to the Administrative Agent on the Effective Date in
accordance with subsection (a) of this Section 2.02 and the Administrative Agent may, in reliance
upon such assumption, make available to the Borrower on such date a corresponding amount. If and to
the extent that such Lender shall not have so made such ratable portion available to the
Administrative Agent, such Lender and the Borrower severally agree to repay or pay to the
Administrative Agent forthwith on demand such corresponding amount and to pay interest thereon, for
each day from the date such amount is made available to the Borrower until the date such amount is
repaid or paid to the Administrative Agent, at (i) in the case of the Borrower, the interest rate
applicable at such time under Section 4.02 to Term Advances comprising such Borrowing and (ii) in
the case of such Lender, the Federal Funds Rate. If such Lender shall pay to the Administrative
Agent such corresponding amount, such

 

29

amount so paid shall constitute such Lender’s Advance as part
of such Borrowing for all purposes.

          (d) The failure of any Lender to make the Term Advance to be made by it as part of any
Borrowing shall not relieve any other Lender of its obligation, if any, hereunder to make its Term
Advance on the Effective Date, but no Lender shall be responsible for the failure of any other
Lender to make the Term Advance to be made by such other Lender on the Effective Date.

     SECTION 2.03. Repayment of the Term Advances. The Borrower shall repay to the
Administrative Agent for the ratable account of the Lenders holding Term Advances the aggregate
outstanding principal amount of the Term Advances on or prior to the date that is the fifth
anniversary of the Initial Borrowing Date (the “Maturity Date”).

ARTICLE III

AMOUNTS AND TERMS OF THE REVOLVING COMMITMENT AND ADVANCES

     SECTION 3.01. Revolving Advances. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make advances (each a “Revolving Advance”) to the Borrower on
any Business Day during the period from the Effective Date through but not including the Maturity
Date in an aggregate amount at any time outstanding (including such Lender’s ratable percentage of
Letters of Credit Exposure) not to exceed such Lender’s Revolving Commitment. Each Borrowing of
Revolving Advances shall consist of Revolving Advances made simultaneously by Lenders ratably
according to their Revolving Commitments. Amounts borrowed under this Section 3.01 may be prepaid,
repaid and be reborrowed in accordance with this Agreement.

     SECTION 3.02. Making the Revolving Advances. (a) Each Borrowing of Revolving
Advances (other than any such Borrowing contemplated by Section 3.08) shall be made on notice,
given (x) not later than 12:00 noon (New York City time) on the third Business Day prior to the
date of the proposed Borrowing in the case of a Borrowing of Revolving Advances consisting of LIBOR
Advances, or (y) not later than 12:00 noon (New York City time) on the
date of the proposed Borrowing in the case of a Borrowing of Revolving Advances consisting of
Base Rate Advances, by the Borrower to the Administrative Agent. Each such notice of a Borrowing
(a “Notice of Revolving Borrowing”) shall be by telephone or electronic transmission, confirmed
promptly in writing, or by telecopier, and specifying therein (i) the requested date of such
Borrowing, (ii) the requested Type of Revolving Advances comprising such Borrowing, (iii) the
requested aggregate amount of such Borrowing; and (iv) in the case of a Borrowing consisting of
LIBOR Advances, the requested initial Interest Period for each such Advance. Upon making the
withdrawal with respect to such Borrowing as provided for in Section 3.05(c) and upon fulfillment
of the applicable conditions set forth in Article V, the Administrative Agent will make such
Borrowing available to the Borrower by crediting the Borrower’s Account.

          (b) Except to the extent set forth in Section 4.05(b), each Notice of Revolving Borrowing
shall be irrevocable and binding on the Borrower. In the case of any Borrowing that

 

30

the related
Notice of Revolving Borrowing specifies is to be comprised of LIBOR Advances, the Borrower shall
indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any
failure to fulfill on or before the date specified in such Notice of Revolving Borrowing for such
Borrowing the applicable conditions set forth in Article V, when such Revolving Advance, as a
result of such failure, is not made on such date.

          (c) Each Lender with a Revolving Commitment hereby irrevocably authorizes the Administrative
Agent to make available to the Borrower an amount on deposit in such Lender’s Revolving
Credit-Linked Deposit Account equal to such Lender’s ratable portion of each Borrowing of Revolving
Advances (it being understood that the funding obligations of each Lender with respect to such
Borrowing shall be required to be satisfied solely by having made such amount available in its
Revolving Credit-Linked Deposit Account, and the Borrower shall have no other recourse against such
Lender with respect to the satisfaction of such funding obligations if such deposit has been made).
The Revolving Advances comprising each Borrowing of Revolving Advances shall be funded by the
Lenders pro rata in accordance with their respective Revolving Commitments, solely from amounts on
deposit in their respective Revolving Credit-Linked Deposit Accounts. Each Lender with a Revolving
Commitment also irrevocably authorizes the Administrative Agent to make available to an Issuing
Bank upon demand such Lender’s ratable portion of any Letter of Credit Disbursement not promptly
reimbursed by the Borrower by withdrawing such amount from its Revolving Credit-Linked Deposit
Account (whether or not the conditions to borrowing set forth in Section 3.05(c) are satisfied).
Any amounts subsequently received by the Administrative Agent from the Borrower on account of the
principal of any Revolving Advance or Letter of Credit Disbursement shall be deposited by the
Administrative Agent into the Revolving Credit-Linked Deposit Accounts of the Lenders with
Revolving Commitments on a ratable basis.

     SECTION 3.03. Repayment of the Revolving Advances. The Borrower shall repay to the
Administrative Agent for the ratable account of the Lenders with Revolving Commitments the
aggregate principal amount of the outstanding Revolving Advances on, and the Revolving Commitments
shall terminate, on the Maturity Date.

     SECTION 3.04. Optional Termination or Reduction of the Total Revolving Credit-Linked
Deposit Amount. The Borrower may at any time or from time to time direct the Administrative
Agent to permanently reduce the Total Revolving Credit-Linked Deposit Amount; provided that each
partial reduction of the Total Revolving Credit-Linked Deposit Amount shall be in an amount that is
an integral multiple of $1,000,000 and not less than $5,000,000; provided, further, that no such
reduction shall be permitted if, after giving effect to such reduction, the aggregate principal
amount of the Revolving Advances and Letter of Credit Exposure would exceed the Total Revolving
Credit-Linked Deposit Amount as so reduced. In the event the Total Revolving Credit-Linked Deposit
Amount shall be reduced as provided in the preceding sentence, the Administrative Agent will return
all amounts in the Revolving Credit-Linked Deposit Accounts in excess of the reduced Total
Revolving Credit-Linked Deposit Amount to the Lenders, ratably in accordance with their ratable
portions.

     SECTION 3.05. Revolving Credit-Linked Deposit Accounts. (a) On the Effective Date,
JPMorgan Chase Bank shall establish a revolving credit-linked deposit account in the name of each
Initial Lender with a Revolving Commitment over which the Administrative Agent will

 

31

have sole
dominion and control (a “Revolving Credit-Linked Deposit Account”) Amounts on deposit in each
Revolving Credit-Linked Deposit Account shall be invested, or caused to be invested, by the
Administrative Agent as set forth in subsection (d) below, and no person (other than the
Administrative Agent or any of its subagents) shall have the right to make any withdrawals from any
Revolving Credit-Linked Deposit Account or exercise any other right or power with respect thereto,
except as expressly provided in subsection (c) below or Section 11.07(a). Without limiting the
generality of the foregoing, each party hereto acknowledges and agrees that no amount on deposit at
any time in any Revolving Credit-Linked Deposit Account shall be the property of any of the Loan
Parties or shall otherwise be available in any manner to satisfy any Obligation of any of the Loan
Parties under the Loan Documents. The Loan Parties will have no right, title or interest in or to
the Revolving Credit-Linked Deposit Accounts or the Revolving Credit-Linked Deposits. The making
of the Revolving Credit-Linked Deposits, the application thereof and the arrangements with respect
thereto set forth in this Agreement constitute agreements among the Administrative Agent and each
Lender with respect to the funding obligations of the Lenders with the Revolving Commitments and do
not constitute any advance or loan or other extension of credit to any Loan Party. The sole
funding obligation of each Lender in respect of the Revolving Facility shall be satisfied upon the
funding of its Revolving Credit-Linked Deposit Amount. Each Lender irrevocably and unconditionally
agrees that its Revolving Credit-Linked Deposit may be applied from time to time as set forth in
this Agreement. No Loan Parties shall have any responsibility or liability to the Lenders, the
Agents or any other Person in respect of the establishment, maintenance, administration or
misappropriation of the Revolving Credit-Linked Deposit Accounts (or any sub-accounts thereof) or
with respect to the investment of amounts held therein pursuant to subsection (d) of this Section
3.05 or the duties and responsibilities of the Administrative Agent (or any of its sub-agents or
Affiliates) with respect to the foregoing contemplated by subsection (g) of this Section 3.05.

          (b) Deposits in the Revolving Credit-Linked Deposit Accounts. The following amounts
shall be deposited in each Revolving Credit-Linked Deposit Account at the following times:

     (i) on the Effective Date, each Initial Lender with a Revolving Commitment shall
deposit in its Revolving Credit-Linked Deposit Account an amount equal to such Lender’s
Revolving Commitment. All funding obligations with respect to its Revolving Commitment
shall be satisfied upon such Lender’s making such deposit in its Revolving Credit-Linked
Deposit Account;

     (ii) on any date on which the Administrative Agent receives any payment for the account
of any Lender with respect to the principal amount of any of its Revolving Advances (whether
pursuant to Section 3.03 or 4.01 or Article VIII or otherwise) prior to the Revolving
Credit-Linked Deposit Return Date, the Administrative Agent shall deposit such amount in the
Revolving Credit-Linked Deposit Account of such Lender;

     (iii) on any date on which the Administrative Agent or an Issuing Bank receives any
reimbursement payment from the Borrower with respect to amounts withdrawn from any Revolving
Credit-Linked Deposit Account to reimburse such Issuing Bank with respect to any payment
made by it under any Letter of Credit prior to the

 

32

Revolving Credit-Linked Deposit Return
Date, the Administrative Agent or such Issuing Bank shall deposit in each Revolving
Credit-Linked Deposit Account the portion of such reimbursement payment to be deposited
therein, in accordance with Section 4.06; and

     (iv) concurrently with the effectiveness of any assignment by any Lender of all or any
portion of its Revolving Commitment, the Administrative Agent shall transfer the
coresponding portion of the Revolving Credit-Linked Deposit of such Lender to a Revolving
Credit-Linked Deposit of the assignee in the Revolving Credit-Linked Deposit Account of such
assignee, in accordance with Section 11.07(a).

     (c) Withdrawals from and Closing of Revolving Credit-Linked Deposit Accounts. Amounts
on deposit in each Revolving Credit-Linked Deposit Account shall be withdrawn and distributed (or
transferred, in the case of clause (iv) below) as follows:

     (i) on the date of any Borrowing of Revolving Advances (including any such Borrowing
under Section 3.08), subject to satisfaction or waiver of the conditions applicable thereto
set forth in Article V, the Administrative Agent shall withdraw from each relevant Lender’s
Revolving Credit-Linked Deposit Account an amount equal to such Lender’s ratable portion of
such Borrowing, and make such amount available to the Borrower in accordance with this
Section 3.05;

     (ii) on any date on which any Issuing Bank is to be reimbursed by the Lenders for any
payment made by such Issuing Bank with respect to a Letter of Credit, the Administrative
Agent shall withdraw from each Revolving Credit-Linked Deposit Account an amount equal to
the relevant Lender’s ratable portion of such unreimbursed payment, and make such amount
available to such Issuing Bank, in accordance with Section 3.06;

     (iii) concurrently with each optional reduction (including any optional termination) of
the Total Revolving Credit-Linked Deposit Amount pursuant to Section 3.04, the
Administrative Agent shall withdraw from the Revolving Credit-Linked Deposit
Accounts, and pay to the relevant Lenders, an amount equal to their respective ratable
portions of the amount of such optional reduction of the Total Revolving Credit-Linked
Deposit Amount, in accordance with Section 3.04;

     (iv) concurrently with the effectiveness of any assignment by any Lender of all or any
portion of its Revolving Credit-Linked Deposit, the corresponding portion of the amount on
deposit in the assignor’s Revolving Credit-Linked Deposit Account shall be transferred from
the assignor’s Revolving Credit-Linked Deposit Account to the assignee’s Revolving
Credit-Linked Deposit Account, in accordance with Section 11.07(a) and, if required by
Section 11.07, the Administrative Agent shall close such assignor’s Revolving Credit-Linked
Deposit Account;

     (v) promptly following the occurrence of a Revolving Settlement Date and promptly
following any deposit in the Revolving Credit-Linked Deposit Accounts pursuant to clause
(ii) and subsection (b) above or any reduction in the Letter of Credit Exposure thereafter,
the Administrative Agent shall withdraw from each Revolving

 

33

Credit-Linked Deposit Account an
amount equal to the applicable Lender’s ratable portion of the amount by which aggregate
amounts then on deposit in the Revolving Credit-Linked Deposit Accounts exceed the Letter of
Credit Exposure and pay such amount to such Lender; and

     (vi) upon the reduction of the Total Revolving Credit-Linked Deposit Amount to $0 and
the expiration or cancellation of all outstanding Letters of Credit, the Administrative
Agent shall withdraw from each Revolving Credit-Linked Deposit Account, and pay to the
relevant Lender, the aggregate amount then on deposit therein, and shall close each such
Revolving Credit-Linked Deposit Account.

Following the Revolving Credit-Linked Deposit Return Date, any repayment of any Revolving Advances
received by the Administrative Agent shall be promptly paid by it directly to the Lenders entitled
thereto on a ratable basis.

          (d) Investment of Amounts in Revolving Credit-Linked Deposit Accounts. The
Administrative Agent shall invest, or cause to be invested, the amount on deposit in the Revolving
Credit-Linked Deposit Account of each Lender so as to earn a rate of return equal to a rate per
annum, reset daily on each Business Day for the period until the next following Business Day, equal
to (i) the one month LIBOR rate as determined by the Administrative Agent on such day (or if such
day was not a Business Day, the first Business Day immediately preceding such day) based on rates
for deposits in dollars (as set forth by Bloomberg L.P. page BTMM or any other comparable publicly
available service as may be selected by the Administrative Agent) minus (ii) the Administrative
Cost, all based on a 365/366 day year (the “Revolving Credit-Linked Return”). Such return will be
paid by the Administrative Agent to each Lender for each calendar month (or portion thereof)
monthly in arrears on the first Business Day of the following calendar month and the Maturity Date
(or such earlier date on which the Revolving Advances become due and payable pursuant to Article
VIII), as applicable, as well as on the Revolving Credit-Linked Deposit Return Date. No Loan
Parties shall have any obligation under or in respect of the provisions of this Section 3.05(d) nor
shall such investment reduce the Total Revolving Credit-Linked Deposit Amount.

          (e) Revolving Fee. The Borrower shall pay to the Administrative Agent for the account
of the Lenders under the Revolving Facility a fee equal to the sum of (1) the Administrative Cost,
plus (2) the then Applicable Spread over Adjusted LIBOR for Advances under the Facilities, on the
average daily amount on deposit in the Revolving Credit-Linked Deposit Account calculated on the
basis of the actual days elapsed in a year of 360 days, such fee shall be payable for each quarter
(or portion thereof) quarterly in arrears on the first Business Day of the following Fiscal Quarter
and the Maturity Date (or such earlier date on which the Revolving Advances become due and payable
pursuant to Article VIII), as well as on the Revolving Credit-Linked Deposit Return Date. Such fee
shall be distributed to such Lenders on a ratable basis.

          (f) Fronting Fees. The Borrower agrees to pay to each Issuing Bank, for its own
account, the Fronting Fee for each Letter of Credit issued by such Issuing Bank for the account of
such Borrower and such other customary and reasonable fees with respect to the

 

34

negotiation,
amendment, issuing, payment of any such Letter of Credit, in the amounts separately agreed to by
such Issuing Bank and the Borrower.

          (g) Sub-agents. The Administrative Agent may perform any and all its duties and
exercise its rights and powers contemplated by this Section 3.05 by or through one or more
sub-agents appointed by it (which may include any of its Affiliates), and any such sub-agent shall
be entitled to the benefit of all the provisions of Article IX. The parties hereto acknowledge
that on or prior to the Effective Date the Administrative Agent has engaged JPMorgan Chase Bank
Institutional Services to act as its sub-agent for purposes of this Section 3.05, and that in such
capacity JPMorgan Chase Bank Institutional Services shall be entitled to the benefit of all the
provisions of Article IX of this Agreement and subject to the terms of Section 11.10.

     SECTION 3.06. Issuance of Letters of Credit. (a) Each Issuing Bank agrees, on the
terms and conditions hereinafter set forth, to issue Letters of Credit, in forms reasonably
acceptable to the Administrative Agent, such Issuing Bank and the Borrower, for the account of the
Borrower or any Subsidiary of the Borrower which is a Loan Party (in which case, references herein
to the Borrower with respect to any such Letter of Credit or payment obligation with respect
thereto shall be deemed to be references to such Subsidiary) at any time and from time to time on
and after the Effective Date until the earlier of the date five Business Days prior to the Maturity
Date and the termination of the Revolving Commitments in accordance with the terms hereof;
provided, however, that any Letter of Credit shall be issued by an Issuing Bank only if, and each
request by a Borrower for the issuance of any Letter of Credit shall be deemed a representation and
warranty of such Borrower that, immediately following the issuance of any such Letter of Credit,
the Letter of Credit Exposure (together with the aggregate principal amount of the outstanding
Revolving Advances) shall not exceed the Revolving Commitments in effect at the time. In
determining whether the issuance of a Letter of Credit will comply with the preceding sentence,
each Issuing Bank may rely conclusively on information obtained from the Administrative Agent,
regarding the aggregate principal amount of the outstanding Revolving Advances and the aggregate
Revolving Commitments. Each Letter of Credit shall provide for payments of drawings in U.S.
dollars.

          (b) Each Letter of Credit shall expire no later than the fifth Business Day preceding the
Maturity Date unless such Letter of Credit expires by its terms on an earlier date as described
below in subsection (c) of this Section 3.06; provided that any Letter of Credit with a one-year
term may provide for the renewal thereof for additional one-year periods (which shall in no event
extend beyond the date that is five Business Days prior to the Maturity Date).

          (c) Each issuance of any Letter of Credit shall be made on at least three Business Days’ prior
telephonic or electronic notice (promptly followed by notice in writing) from the Borrower to the
applicable Issuing Bank and the Administrative Agent specifying the date of issuance, the date on
which such Letter of Credit is to expire (which shall not be later than the earlier of (i) the
fifth Business Day preceding the Maturity Date, and (ii) subject to extension, the first
anniversary of the date of any such Letter of Credit), the amount of such Letter of Credit, the
name and address of the beneficiary of such Letter of Credit and such other information as may be
necessary to complete such Letter of Credit. Such Issuing Bank will give the Administrative Agent
prompt notice of the issuance and amount of each Letter of Credit and the expiration or return or
termination of such Letter of Credit.

 

35

          (d) No Issuing Bank shall be required to issue a Letter of Credit unless it has agreed with
the Borrower upon the Fronting Fees to be paid by the Borrower in connection with such Letter of
Credit and the form of such Letter of Credit is reasonably acceptable to such Issuing Bank.

     SECTION 3.07. Participations; Unconditional Obligations. (a) By the issuance of a
Letter of Credit and without any further action on the part of the applicable Issuing Bank, or the
Lenders in respect thereof, each Issuing Bank hereby grants to each Lender under the Revolving
Facility and each such Lender hereby agrees to acquire from such Issuing Bank, a participation in
such Letter of Credit equal to such Lender’s ratable portion of the face amount of such Letter of
Credit, effective upon the issuance of such Letter of Credit. In consideration and in furtherance
of the foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the
Administrative Agent, for the account of such Issuing Bank, in accordance with Section 3.05(c)(ii),
such Lender’s ratable portion of each Letter of Credit Disbursement made by such Issuing Bank to
the extent that such Issuing Bank is not promptly reimbursed by the Borrower as required pursuant
to Section 3.08.

          (b) Each Lender acknowledges and agrees that its obligation to acquire participations pursuant
to subsection (a) of this Section 3.07 in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of an Event of Default or Default hereunder, and that each such payment shall be
made without any offset, abatement, withholding or reduction whatsoever.

     SECTION 3.08. Agreement to Repay Letter of Credit Disbursement. (a) If an Issuing
Bank shall pay any draft presented under a Letter of Credit, the Borrower shall pay to the
Administrative Agent, for the account of such Issuing Bank, an amount equal to the amount of such
draft before 12:00 noon, New York City time, on the next Business Day after the Issuing Bank shall
have notified the Borrower that payment of such draft has been made. Unless the Revolving
Commitments have terminated, if the Borrower at any time fails to pay a reimbursement obligation
when due pursuant to this Section 3.08, the Borrower shall be deemed
to have requested a Borrowing of Revolving Advances from the Lenders, as at the time when such
reimbursement obligation is due, in an aggregate amount equal to such unpaid reimbursement
obligation. Such Revolving Advances shall be made as of such time, automatically, without notice
and without any requirement to satisfy the conditions precedent otherwise applicable to such
Borrowing. Revolving Advances made pursuant to this Section 3.08 shall initially be Base Rate
Advances. The Administrative Agent will promptly pay any amounts received by it from the Borrower
or the Lenders to the relevant Issuing Bank. Each Lender under the Revolving Facility authorizes
each of the Administrative Agent and Issuing Bank which has received payment of a reimbursement
obligation as to which it has previously received any payments from such Lender pursuant to this
Section 3.08 or Section 3.05(c)(ii) to deposit into its Revolving Credit-Linked Deposit Account its
ratable portion thereof.

          (b) The Borrower’s obligation to repay each Issuing Bank for payments and disbursements made
by such Issuing Bank under the outstanding Letters of Credit shall be absolute, unconditional and
irrevocable under any and all circumstances and irrespective of:

     (i) any lack of validity or enforceability of any Letter of Credit;

 

36

     (ii) the existence of any claim, set-off, defense or other right which the Borrower or
any other person may at any time have against the beneficiary under any Letter of Credit,
any Issuing Bank, the Administrative Agent, or any Lender (other than the defense of payment
in accordance with the terms of this Agreement) or any other person in connection with this
Agreement or any other agreement or transaction;

     (iii) any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

     (iv) payment by an Issuing Bank under a Letter of Credit against presentation of a
draft or other document which does not comply with the terms of such Letter of Credit; and

     (v) any other circumstance or event whatsoever, whether or not similar to any of the
foregoing.

Except as set forth below, neither the Administrative Agent, the Lenders under the Revolving
Facility, nor the applicable Issuing Bank, shall have any liability or responsibility by reason of
or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to
make any payment thereunder (irrespective of any of the circumstances referred to in the preceding
sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit (including any
document required to make a drawing thereunder), any error in interpretation of technical terms or
any consequence arising from causes beyond the control of such Issuing Bank; provided that the
foregoing shall not be construed to excuse such Issuing Bank from liability to the Borrower to the
extent of any direct damages (as opposed to consequential damages, claims in respect of which are
hereby waived by the Borrower to the extent permitted by applicable law) suffered by the Borrower
that are caused by the Issuing Bank’s or any of its employee’s, agent’s,
officer’s or director’s (i) failure to exercise care when determining whether drafts and other
documents presented under a Letter of Credit comply with the terms thereof, (ii) gross negligence,
(iii) bad faith or (iv) willful misconduct. The parties hereto expressly agree that, in the
absence of gross negligence, willful misconduct or bad faith on the part of an Issuing Bank or any
of its employees, agents, officers or directors (as finally determined by a court of competent
jurisdiction), such Issuing Bank shall be deemed to have exercised care in each such determination.
In furtherance of the foregoing and without limiting the generality thereof, the parties agree
that, with respect to documents presented which appear on their face to be in substantial
compliance with the terms of a Letter of Credit, the applicable Issuing Bank may, in its reasonable
discretion, either accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.

          (c) If an Issuing Bank shall make any Letter of Credit Disbursement, then, unless the Borrower
shall reimburse such Letter of Credit Disbursement in full within one Business Day of notice from
the Issuing Bank of such Letter of Credit Disbursement, the unpaid amount thereof shall bear
interest, for each day from and including the date such Letter of Credit

 

37

Disbursement is made to
but excluding the date that the Borrower reimburses such Letter of Credit Disbursement, at the rate
per annum then applicable to Base Rate Advances; provided that, if the Borrower fails to reimburse
such Letter of Credit Disbursement when due pursuant to subsection (a) above, then Section 4.02(b)
shall apply. Interest accrued pursuant to this subsection shall be for the account of the
applicable Issuing Bank, except that interest accrued on and after the date of payment by any
Lender under the Revolving Facility by a withdrawal from its Revolving Credit-Linked Deposit
Account pursuant to Section 3.05(c)(ii) to reimburse the Issuing Bank shall be for the account of
such Lender to the extent of such payment.

     SECTION 3.09. Letter of Credit Operations. Each Issuing Bank shall, promptly
following its receipt thereof, examine all documents purporting to represent a demand for payment
under an outstanding Letter of Credit to ascertain that the same appear on their face to be in
substantial conformity with the terms and conditions of such outstanding Letter of Credit. Such
Issuing Bank shall (i) as promptly as possible after such demand for payment give oral
notification, confirmed by telecopy, to the Administrative Agent and the Borrower of such demand
for payment and (ii) as promptly as possible after such Issuing Bank determines whether such demand
for payment was in accordance with the terms and conditions of such outstanding Letter of Credit,
give notice in the same manner to the Administrative Agent and such Borrower as to such
determination and as to whether such Issuing Bank has made or will make a Letter of Credit
Disbursement thereunder, provided that the failure to give such notices shall not relieve any
Borrower of its obligation to reimburse such Issuing Bank with respect to any such Letter of Credit
Disbursement, and the Administrative Agent shall promptly give each Lender notice thereof.

     SECTION 3.10. Cash Collateralization. If any Event of Default shall occur and be
continuing and the Advances shall become due and payable under Article VIII, the Borrower shall,
within one Business Day of the date it receives notice from the Administrative Agent or the Lenders
therefor, deposit in an account with the Administrative Agent, for the benefit of the
Lenders, an amount in cash equal to its Letter of Credit Exposure as of such date. Such
deposit shall be held by the Administrative Agent as collateral for the payment and performance of
the Obligations until such Event of Default is cured or waived. The Administrative Agent shall
have exclusive dominion and control, including the exclusive right of withdrawal, over such
account. Other than any interest earned on the investment of such deposits in Cash Equivalents for
the benefit of the Borrower, which investments shall be made at the option and sole discretion of
the Administrative Agent, such deposits shall not bear interest. Interest or profits, if any, on
such investments shall accumulate in such account for the benefit of the Borrower. To the extent
remaining in such account, moneys in such account shall automatically be applied by the
Administrative Agent to reimburse the applicable Issuing Banks and the Lenders under the Revolving
Facility for Letter of Credit Disbursements and, if the maturity of the loans under the Revolving
Facility has been accelerated, to satisfy the Obligations. The Administrative Agent shall return
all such moneys within five Business Days of all such Events of Default being cured or waived.

 

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ARTICLE IV

TERMS OF THE ADVANCES

     SECTION 4.01. Prepayments; Premiums. (a) Optional. The Borrower may, upon
at least three Business Days’ written notice to the Administrative Agent (which notice shall be
irrevocable, unless it shall be expressly conditioned on a refinancing) stating the proposed date
and aggregate principal amount of the prepayment and the Term Advances or Revolving Advances to be
prepaid, and after giving such notice the Borrower shall, prepay the outstanding aggregate
principal amount of such Advances in whole or ratably in part, together with accrued interest to
the date of such prepayment on the aggregate principal amount prepaid; provided, however, that (x)
each partial prepayment shall be in an aggregate principal amount of $5,000,000 or an integral
multiple of $1,000,000 in excess thereof, and (y) if any prepayment of a LIBOR Advance is made on a
date other than the last day of an Interest Period for such Advance, the Borrower shall also pay
any amounts owing pursuant to Section 11.04(c).

          (b) Mandatory. (i) The Borrower shall:

     (A) within three Business Days of receipt by the Borrower or any of its
Restricted Subsidiaries of any Net Cash Proceeds from asset sales or other
dispositions of property by the Borrower or any Restricted Subsidiary to the extent
resulting in Net Cash Proceeds in excess of $10,000,000 for any disposition or
series of related dispositions, as set forth in clause (a) of the definition of “Net
Cash Proceeds”, prepay an aggregate principal amount of the Term Advances (and, upon
prepayment in full of the Term Advances, the Revolving Advances) in an amount equal
to 100% of the amount of such Net Cash Proceeds in excess of $10,000,000;

     (B) within three Business Days following receipt by the Borrower or any of its
Restricted Subsidiaries of any Net Cash Proceeds from the incurrence or issuance of
any Debt by the Borrower or any Restricted Subsidiary to the extent resulting in Net
Cash Proceeds in excess of $10,000,000 for any incurrence or
issuance or series of related incurrences or issuances, as set forth in clause
(b) of the definition of “Net Cash Proceeds”, prepay an aggregate principal amount
of the Term Advances (and, upon prepayment in full of the Term Advances, the
Revolving Advances) in an amount equal to 100% of the amount of such Net Cash
Proceeds in excess of $10,000,000; and

     (C) within three Business Days following receipt by the Borrower or any of its
Restricted Subsidiaries of any Net Cash Proceeds from the sale or issuance of any
Equity Interests by the Borrower or any Restricted Subsidiary, as set forth in
clause (c) of the definition of “Net Cash Proceeds”, prepay an aggregate principal
amount of the Term Advances(and, upon prepayment in full of the Term Advances, the
Revolving Advances) in an amount equal to 75% of the amount of such Net Cash
Proceeds.

 

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     (ii) All prepayments under this subsection (b) shall be made together with accrued
interest to the date of such prepayment on the principal amount prepaid, together with any
amounts owing pursuant to Section 11.04(c).

     (iii) Any prepayments of the Revolving Advances pursuant to this Section 4.01(b) shall
not be accompanied by a corresponding mandatory permanent reduction of the Total Revolving
Credit-Linked Deposit Amount or the Revolving Commitments.

     (c) Premiums. Any repayment of the Term Advances pursuant to this Section 4.01 or
Article VIII, other than mandatory prepayments with the Net Cash Proceeds of asset sales or other
dispositions of property or of issuances of Equity Interests, and any reduction (including any
termination) of the Total Credit-Linked Deposit Amount (i) on or following the Effective Date and
prior to the first anniversary of the Effective Date, shall be accompanied by a premium equal to
the Applicable Premium of the aggregate principal amount so repaid or prepaid or the amount of such
reduction, as the case may be, and (ii) on or following the first anniversary of the Effective Date
through the second anniversary of the Effective Date, shall be accompanied by a premium of 1.00% of
the aggregate principal amount so repaid or prepaid or the amount of such reduction, as the case
may be.

     SECTION 4.02. Interest. (a) Scheduled Interest. The Borrower shall pay
interest on the unpaid principal amount of each Advance owing to each Lender from the date of such
Advance until such principal amount shall be paid in full, at the following rates per annum:

     (i) Base Rate Advances. During such periods as such Advance is a Base Rate
Advance, a rate per annum equal at all times to the sum of (A) the Base Rate in effect from
time to time plus (B) the Applicable Spread in effect from time to time, payable in arrears
quarterly on the last Business Day of each quarter during such periods and on the date such
Base Rate Advance shall be Converted or paid in full.

     (ii) LIBOR Advances. During such periods as such Advance is a LIBOR Advance, a
rate per annum equal at all times during each Interest Period for such Advance to the sum of
(A) Adjusted LIBOR for such Interest Period for such Advance plus (B) the Applicable Spread
in effect on the first day of such Interest Period, payable
in arrears on the last day of such Interest Period and, if such Interest Period has a
duration of more than three months, on each day prior to the last day of such Interest
Period that occurs at intervals of three months’ duration after the first day of such
Interest Period and on the date such LIBOR Advance shall be Converted or paid in full.

          (b) Default Interest. If any principal of or interest on any Advance or any Letter of
Credit Disbursement or any fee, premium or other amount payable by the Borrower hereunder is not
paid when due, whether at stated maturity, upon acceleration or otherwise, the Administrative Agent
may, and upon the request of the Required Lenders shall, require that the Borrower pay interest
(“Default Interest”) on such overdue amount, effective upon notice from the Administrative Agent or
upon the occurrence of any Event of Default under subsection (f) of Article VIII as an increase in
the Applicable Spread, at a rate per annum equal to (i) in the case of overdue principal of any
Advance, 2% per annum above the rate per annum required to be paid on such Advance pursuant to
clause (i) or (ii) of Section 4.02(a), as applicable, payable in

 

40

arrears on the dates referred to
in clause (i) or (ii) of Section 4.02(a), as applicable, and on demand, or (ii) in the case of any
other amount, 2% per annum plus the rate applicable to Base Rate Advances pursuant to clause (i) of
Section 4.02(a) payable in arrears on the date such amount shall be paid in full and on demand;
provided, however, that following the making of the request or the granting of the consent
specified by Article VIII to authorize the Administrative Agent to declare the Advances due and
payable pursuant to the provisions of Article VIII, Default Interest shall accrue and be payable
hereunder whether or not previously required by the Administrative Agent.

          (c) Notice of Interest Period and Interest Rate. Promptly after receipt of a Notice of
Term Borrowing or Notice of Revolving Borrowing, a notice of Conversion pursuant to Section 4.04 or
a notice of selection of an Interest Period pursuant to the terms of the definition of “Interest
Period,” the Administrative Agent shall give notice to the Borrower and each Lender of the
applicable Interest Period and the applicable interest rate determined by the Administrative Agent
for purposes of clause (a)(i) or (a)(ii) above.

     SECTION 4.03. Fees. The Borrower shall pay to the Administrative Agent for its
own account such fees as may from time to time be agreed between the Borrower and the
Administrative Agent, including under the Fee Letter.

     SECTION 4.04. Conversion and Continuation of Advances. (a) Optional
Conversion. The Borrower may on any Business Day, upon telephonic or electronic notice
(promptly followed by written notice) given to the Administrative Agent not later than 12:00 noon
(New York City time) on the third Business Day prior to the date of the proposed Conversion and
subject to the provisions of Section 4.05, Convert all or any portion of the Advances of one Type
comprising the same Borrowing into Advances of the other Type; provided, however, that any
Conversion of LIBOR Advances into Base Rate Advances shall be made only on the last day of an
Interest Period for such LIBOR Advances, any Conversion of Base Rate Advances into LIBOR Advances
shall be in an amount not less than $5,000,000, no conversion of any Advances shall result in more
than 10 separate Borrowings, and each Conversion of Advances shall be made ratably among the
relevant Lenders. Each such notice of Conversion shall, within the restrictions specified above,
specify (i) the date of such Conversion, (ii) the Advances to be
Converted and (iii) if such Conversion is into LIBOR Advances, the duration of the initial
Interest Period for such Advances. Each notice of Conversion shall be irrevocable and binding on
the Borrower.

          (b) Mandatory Continuation or Conversion. (i) On the date on which the aggregate
unpaid principal amount of LIBOR Advances comprising any Borrowing shall be reduced, by payment or
prepayment or otherwise, to less than $5,000,000, such Advances shall automatically Convert into
Base Rate Advances.

     (ii) If (A) the Borrower shall select a LIBOR Advance but fail to select an Interest
Period duration for such LIBOR Advance in accordance with the provisions contained in the
definition of “Interest Period” in Section 1.01, then such LIBOR Advance shall be made (or
continued, as the case may be) with an Interest Period of one month, or (B) the Borrower
shall fail to select a Type of Advance, then such Advance shall be made (or with respect to
an existing Advance, Converted into) a Base Rate

 

41

Advance; provided, that, in either case the
Administrative Agent shall notify the Lenders and the Borrower of such Conversion or
continuation.

     (iii) Upon the occurrence and during the continuance of any Event of Default upon
notice to the Borrower by the Administrative Agent, at the request of the Required Lenders,
(x) each LIBOR Advance will, on the last day of the then existing Interest Period therefor,
Convert into a Base Rate Advance and (y) the obligation of the Lenders to make, or to
Convert Advances into, LIBOR Advances shall be suspended.

     SECTION 4.05. Increased Costs, Etc. (a) If, due to either (i) the introduction of
or any change in or in the interpretation of any law or regulation, in each case after the date of
this Agreement, or (ii) the compliance with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law), made or issued after the date of
this Agreement, there shall be any increase in the cost to any Lender or Issuing Bank of agreeing
to make or of making, funding or maintaining LIBOR Advances or any amount in its Revolving
Credit-Linked Deposit Account or of any maintaining or agreeing to maintain any Letter of Credit
(excluding, for purposes of this Section 4.05, any such increased costs resulting from (x) Taxes or
Other Taxes (as to which Section 4.07 shall govern) and (y) changes after the date of this
Agreement in the basis of taxation of overall net income or overall gross income (and franchise
taxes imposed in lieu thereof) by the United States or by the foreign jurisdiction or state under
the laws of which such Lender or Issuing Bank is organized or has its Applicable Lending Office or
any political subdivision thereof), then the Borrower shall from time to time, within 10 days of
demand (accompanied by reasonably detailed documentation thereof) by such Lender or Issuing Bank
(with a copy of such demand to the Administrative Agent), pay to the Administrative Agent for the
account of such Lender or Issuing Bank additional amounts sufficient to compensate such Lender or
Issuing Bank for such increased cost; provided, however, that before making any such demand, each
Lender or Issuing Bank agrees to use reasonable efforts (consistent with its internal policy and
legal and regulatory restrictions) to designate a different Applicable Lending Office if the making
of such a designation would avoid the need for, or reduce the amount of, such increased cost and
would not, in the reasonable judgment of such Lender or Issuing Bank, be otherwise disadvantageous
to such Lender or
Issuing Bank. A certificate as to the amount of such increased cost, submitted to the Borrower
by such Lender or Issuing Bank, shall be presumptive evidence for all purposes, absent manifest
error.

          (b) If, with respect to any LIBOR Advances, Lenders owed at least 51% of the then aggregate
unpaid principal amount thereof notify the Administrative Agent that LIBOR for any Interest Period
for such Advances (after taking into account the provisions of this Section 4.05) will not
adequately reflect the cost to such Lenders of making, funding or maintaining their LIBOR Advances
for such Interest Period, the Administrative Agent shall forthwith so notify the Borrower and the
Lenders, except to the extent the Borrower withdraws such funding notice or conversion notice,
whereupon (i) each LIBOR Advance will automatically, on the last day of the then existing Interest
Period therefor, Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make,
or to Convert Advances into, LIBOR Advances shall be suspended until the Administrative Agent shall
notify the Borrower that such Lenders have determined that the circumstances causing such
suspension no longer exist.

 

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          (c) Notwithstanding any other provision of this Agreement, if the introduction of or any
change in or in the interpretation of any law or regulation issued after the date of this Agreement
shall make it unlawful, or any central bank or other governmental authority shall assert that it is
unlawful, for any Lender or its Eurodollar Lending Office to perform its obligations hereunder to
make LIBOR Advances or to continue to fund or maintain LIBOR Advances hereunder, then, on notice
thereof and demand therefor by such Lender to the Borrower through the Administrative Agent, (i)
each LIBOR Advance will automatically, to the extent required by such law, regulation or assertion,
Convert into a Base Rate Advance and (ii) the obligation of the Lenders to make, or to Convert
Advances into, LIBOR Advances shall be suspended until the Administrative Agent shall notify the
Borrower that such Lender has determined that the circumstances causing such suspension no longer
exist.

          (d) In the event that any Lender demands payment of costs or additional amounts pursuant to
this Section 4.05 or Section 4.07 or asserts, pursuant to Section 4.05(c), that it is unlawful for
such Lender to make LIBOR Advances, then (subject to such Lender’s right to rescind such demand or
assertion within 10 days after the notice from the Borrower referred to below) the Borrower may,
upon 20 days’ prior written notice to such Lender and the Administrative Agent, elect to cause such
Lender to assign its Advances and Revolving Commitment and Revolving Credit-Linked Deposit in full
to one or more Persons selected by the Borrower so long as (i) each such Person satisfies the
criteria of an Eligible Assignee, (ii) such Lender receives payment in full in cash of the
outstanding principal amount of all Advances made by it and the Revolving Credit-Linked Deposit
made by it and all accrued and unpaid interest and return and fees thereon and all other amounts
due and payable to such Lender as of the date of such assignment (including, without limitation,
amounts owing pursuant to Sections 4.05, 4.07 and 11.04) and (iii) each such assignee agrees to
accept such assignment and to assume all obligations of such Lender hereunder in accordance with
Section 11.07.

          (e) Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant
to this Section 4.05 shall not constitute a waiver of such Lender or Issuing Bank’s right to demand
such compensation; provided that the Borrower shall not be
required to compensate a Lender or Issuing Bank pursuant to this Section 4.05 for any
increased costs or reductions incurred more than six months prior to the date that such Lender
notifies the Borrower of the circumstances giving rise to such increased costs or reductions and of
such Lender or Issuing Bank’s intention to claim compensation therefor; provided further that, if
the circumstances giving rise to such increased costs or reductions is retroactive, then the
six-month period referred to above shall be extended to include the period of retroactive effect
thereof.

     SECTION 4.06. Payments and Computations. (a) The Borrower shall make each payment
hereunder and under the other Loan Documents, irrespective of any right of counterclaim or set-off,
not later than 12:00 Noon (New York City time) on the day when due in U.S. dollars to the
Administrative Agent at the Administrative Agent’s Account in same day funds, with payments being
received by the Administrative Agent after such time being deemed to have been received on the next
succeeding Business Day unless the Administrative Agent, in its sole discretion, shall otherwise
determine. The Administrative Agent will promptly thereafter cause like funds to be distributed (i)
if such payment by the Borrower is in respect of principal, interest, commitment fees or any other
Obligation then payable hereunder and under the other Loan Documents to more than one Lender, to
the relevant Lenders for the account of their

 

43

respective Applicable Lending Offices ratably in
accordance with the amounts of such respective Obligations then payable to such Lenders and (ii) if
such payment by the Borrower is in respect of any Obligation then payable hereunder to one Lender,
to such Lender for the account of its Applicable Lending Office, in each case to be applied in
accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance
and recording of the information contained therein in the Register pursuant to Section 11.07(d),
from and after the effective date of such Assignment and Acceptance, the Administrative Agent shall
make all payments hereunder and under the other Loan Documents in respect of the interest assigned
thereby to the assignee thereunder, and the parties to such Assignment and Acceptance shall make
all appropriate adjustments in such payments for periods prior to such effective date directly
between themselves.

          (b) The Borrower hereby authorizes each Lender, if and to the extent payment owed to such
Lender is not made when due hereunder or under the other Loan Documents to charge during the
continuance of an Event of Default, to the fullest extent permitted by law, against any or all of
the Borrower’s accounts (excluding payroll accounts, trust accounts and tax accounts held by the
Borrower for the benefit of any Person other than the Borrower or any of its Subsidiaries) with
such Lender any amount so due from the Borrower.

          (c) All computations of interest based on the Base Rate shall be made by the Administrative
Agent on the basis of a year of 365 or 366 days, as the case may be, and all computations of
interest based on LIBOR or the Federal Funds Rate and of fees shall be made by the Administrative
Agent on the basis of a year of 360 days (except as provided in Section 3.05(d)), in each case for
the actual number of days (including the first day but excluding the last day) occurring in the
period for which such interest or fees are payable. Each determination by the Administrative Agent
of an interest rate or fee hereunder shall be conclusive and binding for all purposes, absent
manifest error.

          (d) Whenever any payment hereunder or under the other Loan Documents shall be stated to be due
on a day other than a Business Day, such payment shall be made on the next succeeding Business Day,
and such extension of time shall in such case be included in the computation of payment of interest
or commitment or fee, as the case may be; provided, however, that, if such extension would cause
payment of interest on or principal of LIBOR Advances to be made in the next following calendar
month, such payment shall be made on the next preceding Business Day.

          (e) Unless the Administrative Agent shall have received notice from the Borrower prior to the
date on which any payment is due to any Lender hereunder that the Borrower will not make such
payment in full, the Administrative Agent may assume that the Borrower has 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 such Lender on such due date an amount equal to the
amount then due such Lender. If and to the extent the Borrower shall not have so made such payment
in full to the Administrative Agent, each such Lender shall repay to the Administrative Agent
forthwith on demand such amount distributed to such Lender together with interest thereon, 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, at the Federal Funds Rate.

 

44

          (f) If the Administrative Agent receives funds for application to the Obligations of the Loan
Parties under or in respect of the Loan Documents under circumstances for which the Loan Documents
do not specify the Advances or other amounts to which, or the manner in which, such funds are to be
applied, the Administrative Agent may, but shall not be obligated to, elect to distribute such
funds to each of the Lenders and Issuing Banks in accordance with each Lender’s and Issuing Bank’s
pro rata share of the outstanding Obligations at such time, in repayment or prepayment of such
Obligations as the Administrative Agent shall direct.

     SECTION 4.07. Taxes. (a) Any and all payments by any Loan Party to or for the
account of any Lender, any Issuing Bank or any Agent hereunder or under any other Loan Document
shall be made, in accordance with Section 4.06 or the applicable provisions of such other Loan
Document, if any, free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto,
excluding, in the case of each Lender, each Issuing Bank and each Agent, taxes that are imposed on
its overall net income by the United States and taxes that are imposed on its overall net income
(and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction under the laws
of which such Lender, such Issuing Bank or such Agent, as the case may be, is organized or any
political subdivision thereof and, in the case of each Lender, taxes that are imposed on its
overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign
jurisdiction of such Lender’s Applicable Lending Office or any political subdivision thereof (all
such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in
respect of payments hereunder or under any other Loan Document being hereinafter referred to as
“Taxes”). If any Loan Party shall be required by law to deduct any Taxes from or in respect of any
sum payable hereunder or under any other Loan Document to any Lender, any Issuing Bank or any
Agent, (i) the sum payable by such Loan Party shall be increased as may be
necessary so that after such Loan Party and the Administrative Agent have made all required
deductions (including deductions applicable to additional sums payable under this Section 4.07)
such Lender, such Issuing Bank or such Agent, as the case may be, receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Loan Party shall make all
such deductions and (iii) such Loan Party shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable law.

          (b) In addition, each Loan Party shall pay any present or future stamp, documentary, excise,
property, intangible, mortgage recording or similar taxes, charges or levies that arise from any
payment made by such Loan Party hereunder or under any other Loan Documents or from the execution,
delivery or registration of, performance under, or otherwise with respect to, this Agreement or the
other Loan Documents (hereinafter referred to as “Other Taxes”).

          (c) The Loan Parties shall indemnify each Lender, each Issuing Bank and each Agent for and
hold them harmless against the full amount of Taxes and Other Taxes, and for the full amount of
taxes of any kind imposed or asserted by any jurisdiction on amounts payable under this Section
4.07, imposed on or paid by such Lender or such Agent (as the case may be) and any liability
(including penalties, additions to tax, interest and expenses) arising therefrom or with respect
thereto. This indemnification shall be made within 30 days from the

 

45

date such Lender, such Issuing
Bank or such Agent (as the case may be) makes written demand therefor (accompanied by reasonably
detailed documentation thereof).

          (d) Within 30 days after the date of any payment of Taxes, the appropriate Loan Party shall
furnish to the Administrative Agent, at its address referred to in Section 11.02, the original or a
certified copy of a receipt evidencing such payment, to the extent such a receipt is issued
therefor, or other written proof of payment thereof that is reasonably satisfactory to the
Administrative Agent. In the case of any payment hereunder or under the other Loan Documents by or
on behalf of a Loan Party through an account or branch outside the United States or by or on behalf
of a Loan Party by a payor that is not a United States person, if such Loan Party determines that
no Taxes are payable in respect thereof, such Loan Party shall furnish, or shall cause such payor
to furnish, to the Administrative Agent, at such address, an opinion of counsel reasonably
acceptable to the Administrative Agent stating that such payment is exempt from Taxes. For purposes
of subsections (d) and (e) of this Section 4.07, the terms “United States” and “United States
person” shall have the meanings specified in Section 7701 of the Internal Revenue Code.

          (e) Each Lender organized under the laws of a jurisdiction outside the United States shall, on
or prior to the date of its execution and delivery of this Agreement in the case of each Initial
Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in
the case of each other Lender, and from time to time thereafter as reasonably requested in writing
by the Borrower or the Administrative Agent (but only so long thereafter as such Lender remains
lawfully able to do so), provide each of the Administrative Agent and the Borrower with two
original Internal Revenue Service Forms W-8BEN or W-8EC1 or (in the case of a Lender that has
certified in writing to the Administrative Agent that it is not (i) a “bank” as defined in Section
881(c)(3)(A) of the Internal Revenue Code), (ii) a 10-percent
shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of any
Loan Party or (iii) a controlled foreign corporation related to any Loan Party (within the meaning
of Section 864(d)(4) of the Internal Revenue Code), Internal Revenue Service Form W-8BEN, as
appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying
that such Lender is exempt from or entitled to a reduced rate of United States withholding tax on
payments pursuant to this Agreement or any other Loan Document or, in the case of a Lender that has
certified that it is not a “bank” as described above, certifying that such Lender is a foreign
corporation, partnership, estate or trust. If the forms provided by a Lender at the time such
Lender first becomes a party to this Agreement indicate a United States interest withholding tax
rate in excess of zero, withholding tax at such rate shall be considered excluded from Taxes unless
and until such Lender provides the appropriate forms certifying that a lesser rate applies,
whereupon withholding tax at such lesser rate only shall be considered excluded from Taxes for
periods governed by such forms; provided, however, that if, at the effective date of the Assignment
and Acceptance pursuant to which a Lender becomes a party to this Agreement, the Lender assignor
was entitled to payments under subsection (a) of this Section 4.07 in respect of United States
withholding tax with respect to interest paid at such date, then, to such extent, the term Taxes
shall include (in addition to withholding taxes that may be imposed in the future or other amounts
otherwise includable in Taxes) United States withholding tax, if any, applicable with respect to
the Lender assignee on such date. If any form or document referred to in this subsection (e)
requires the disclosure of information, other than information necessary to compute the tax payable
and information required on the date hereof by Internal

 

46

Revenue Service Form W-8BEN or W-8EC1 or
the related certificate described above, that the applicable Lender reasonably considers to be
confidential, such Lender shall give notice thereof to the Borrower and shall not be obligated to
include in such form or document such confidential information.

          (f) For any period with respect to which a Lender has failed to provide the Borrower with the
appropriate form, certificate or other document described in subsection (e) above (other than if
such failure is due to a change in law, or in the interpretation or application thereof, occurring
after the date on which a form, certificate or other document originally was required to be
provided or if such form, certificate or other document otherwise is not required under subsection
(e) above), such Lender shall not be entitled to indemnification under subsection (a) or (c) of
this Section 4.07 with respect to Taxes imposed by the United States by reason of such failure;
provided, however, that should a Lender become subject to Taxes because of its failure to deliver a
form, certificate or other document required hereunder, the Loan Parties shall take such steps as
such Lender shall reasonably request to assist such Lender to recover such Taxes.

          (g) If any Lender receives a refund in respect of any Taxes or Other Taxes paid by the
Borrower (a “Tax Refund”), which in the sole judgment of such Lender is allocable to such payment,
it shall promptly pay such Tax Refund to the Borrower net of all out-of-pocket expenses of such
Lender incurred in obtaining such Tax Refund; provided, however, that the Borrower agrees to
promptly return such Tax Refund to the applicable Lender if it receives notice from the applicable
Lender that such Lender is required to repay such Tax Refund. This paragraph shall not be construed
to require the Administrative Agent or any Lender to make
available its tax returns (or any other information relating to its taxes which it deems
confidential) to the Borrowers or any other Person.

          (h) Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant
to this Section shall not constitute a waiver of such Lender’s or Issuing Bank’s right to demand
such compensation; provided that the Borrower shall not be required to compensate a Lender or
Issuing Bank pursuant to this Section for any Taxes or Other Taxes incurred more than six months
prior to the date that such Lender or Issuing Bank notifies the Borrower of such Taxes or Other
Taxes and of such Lender or Issuing Bank’s intention to claim compensation therefor; provided
further that, if the circumstances giving rise to such Taxes or Other Taxes is retroactive, then
the six-month period referred to above shall be extended to include the period of retroactive
effect thereof.

          (i) Any Lender claiming any additional amounts payable pursuant to this Section 4.07 agrees to
use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions)
to change the jurisdiction of its Eurodollar Lending Office if the making of such a change would
avoid the need for, or reduce the amount of, any such additional amounts that may thereafter accrue
and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such
Lender.

     SECTION 4.08. Sharing of Payments, Etc. If any Lender shall obtain at any time any
payment (whether voluntary, involuntary, through the exercise of any right of set-off or otherwise
to the extent permitted by applicable law, other than as a result of an assignment

 

47

pursuant to
Section 11.07) (a) on account of Obligations due and payable to such Lender hereunder and under the
other Loan Documents at such time in excess of its ratable share (according to the proportion of
(i) the amount of such Obligations due and payable to such Lender at such time to (ii) the
aggregate amount of the Obligations due and payable to all Lenders hereunder and under the other
Loan Documents at such time) of payments on account of the Obligations due and payable to all
Lenders hereunder and under the other Loan Documents at such time obtained by all the Lenders at
such time, or (b) on account of Obligations owing (but not due and payable) to such Lender
hereunder and under the other Loan Documents at such time in excess of its ratable share (according
to the proportion of (i) the amount of such Obligations owing to such Lender at such time to (ii)
the aggregate amount of the Obligations owing (but not due and payable) to all Lenders hereunder
and under the other Loan Documents at such time) of payments on account of the Obligations owing
(but not due and payable) to all Lenders hereunder and under the other Loan Documents at such time
obtained by all of the Lenders at such time, such Lender shall forthwith purchase from the other
Lenders such interests or participating interests in the Obligations due and payable or owing to
them, as the case may be, as shall be necessary to cause such purchasing Lender to share the excess
payment ratably with each of them; provided, however, that if all or any portion of such excess
payment is thereafter recovered from such purchasing Lender, such purchase from each other Lender
shall be rescinded and such other Lender shall repay to the purchasing Lender the purchase price to
the extent of such Lender’s ratable share (according to the proportion of (i) the purchase price
paid to such Lender to (ii) the aggregate purchase price paid to all Lenders) of such recovery
together with an amount equal to such Lender’s ratable share (according to the proportion of (i)
the amount of such other Lender’s required repayment to (ii) the total amount so recovered from the
purchasing Lender) of any interest or other amount paid or payable by the purchasing Lender in
respect of the total amount so recovered. The Loan Parties agree that any Lender so purchasing an
interest or participating interest from another Lender pursuant to this Section 4.08 may, to the
fullest extent permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such interest or participating interest, as the case may be, as fully as
if such Lender were the direct creditor of the Loan Parties in the amount of such interest or
participating interest, as the case may be.

     SECTION 4.09. Use of Proceeds. The proceeds of the Advances shall be used by the
Borrower to repay amounts outstanding under the Existing Credit Agreement, for general corporate
purposes, working capital financings and to pay fees and expenses associated with the foregoing.

     SECTION 4.10. Evidence of Debt. (a) Each Lender shall maintain, in accordance with
its usual practice, an account or accounts evidencing the indebtedness of the Borrower to such
Lender resulting from each Advance owing to such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time hereunder. The Borrower
agrees that upon notice by any Lender to the Borrower (with a copy of such notice to the
Administrative Agent) to the effect that a promissory note or other evidence of indebtedness is
required or appropriate in order for such Lender to evidence (whether for purposes of pledge,
enforcement or otherwise) the Advances owing to, or to be made by, such Lender, the Borrower shall
promptly execute and deliver to such Lender, with a copy to the Administrative Agent, a Note in
substantially the form of Exhibit A-1 or A-2 hereto, as the case may be, payable to the order made
by such Lender in a principal amount equal to the Term

 

48

Commitment or the Revolving Commitment of
such Lender, as the case may be. All references to Notes in the Loan Documents shall mean Notes, if
any, to the extent issued hereunder.

          (b) The Administrative Agent shall, pursuant to Section 11.07(d), maintain the Register in
which the accounts of the Lenders (taken together) shall be recorded, including (i) the date and
amount of each Borrowing made hereunder, the Type of Advances comprising such Borrowing and, if
appropriate, the Interest Period applicable thereto, (ii) the terms of each Assignment and
Acceptance delivered to and accepted by it, (iii) the amount of any principal or interest due and
payable or to become due and payable from the Borrower to each Lender hereunder and (iv) the amount
of any sum received by the Administrative Agent from the Borrower hereunder and each Lender’s share
thereof, as well as all transactions with respect to the Revolving Credit-Linked Deposit Account of
such Lender.

          (c) Entries made in good faith by the Administrative Agent in the Register pursuant to
subsection (b) above, and by each Lender in its account or accounts pursuant to subsection (a)
above, shall be prima facie evidence of the amount of principal, interest and other amounts due and
payable or to become due and payable from the Borrower to, in the case of the Register, each Lender
and, in the case of such account or accounts, such Lender, under this Agreement, absent manifest
error; provided, however, that the failure of the Administrative Agent or such Lender to make an
entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall
not limit or otherwise affect the obligations of the Borrower under this Agreement.

ARTICLE V

CONDITIONS TO EFFECTIVENESS OF LENDING

     SECTION 5.01. Conditions Precedent. Section 2.01 of this Agreement shall become
effective on and as of the first Business Day (the “Effective Date”) on which the following
conditions precedent have been satisfied or waived, which Business Day shall not be later than
January 31, 2007 (and the obligation of each Lender to make an Advance on the Initial Borrowing
Date or make its Revolving Credit-Linked Deposit on the Effective Date is subject to the
satisfaction or waiver of such conditions precedent before or concurrently with the Effective
Date):

     (a) The Administrative Agent shall have received on or before the Effective Date the
following, each dated such day (unless otherwise specified), in form and substance
reasonably satisfactory to the Administrative Agent (unless otherwise specified):

     (i) The Notes payable to the order of the Lenders to the extent requested by
the Lenders pursuant to the terms of Section 4.10.

     (ii) Certified copies of the resolutions of the Board of Directors or Executive
Committee, as applicable, of each Loan Party approving each Loan Document to which
it is or is to be a party, and of all documents evidencing other necessary corporate
action and governmental and other third party approvals and

 

49

consents, if any, with
respect to each Loan Document to which it is or is to be a party.

     (iii) A copy of a certificate of the Secretary of State of the jurisdiction of
incorporation of each Loan Party, dated reasonably near the Effective Date
certifying (A) as to a true and correct copy of the charter of such Loan Party and
each amendment thereto on file in such Secretary’s office and (B) that (1) such
amendments are the only amendments to such Loan Party’s charter on file in such
Secretary’s office, (2) such Loan Party has paid all franchise taxes to the date of
such certificate and (3) such Loan Party is duly incorporated and in good standing
or presently subsisting under the laws of the State of the jurisdiction of its
incorporation.

     (iv) A certificate of each Loan Party signed on behalf of such Loan Party by
its President or a Senior Vice President or Vice President and its Secretary or any
Assistant Secretary, dated the Effective Date (the statements made in which
certificate shall be true on and as of the Effective Date), certifying as to (A) the
absence of any amendments to the charter of such Loan Party since the date of the
Secretary of State’s certificate referred to in Section 5.01(a)(iii), (B) a true and
correct copy of the bylaws of such Loan Party as in effect on the date on which the
resolutions referred to in Section 5.01(a)(ii) were adopted and on the Effective
Date, (C) the truth in all material respects of the representations and warranties
contained in the Loan Documents as though made on and as of the
Effective Date and (D) the absence of any event occurring and continuing, or,
if applicable, resulting from the initial Borrowing, that constitutes a Default.

     (v) A certificate of the Secretary or an Assistant Secretary of each Loan Party
certifying the names and true signatures of the officers of such Loan Party
authorized to sign each Loan Document to which it is or is to be a party and the
other documents to be delivered hereunder and thereunder.

     (vi) A certificate, in form and substance reasonably satisfactory to the
Administrative Agent, attesting to the Solvency of the Borrower and its
Subsidiaries, taken as a whole, from a Financial Officer.

     (b) There shall exist no action, suit, investigation, litigation or proceeding
affecting any Loan Party or any of its Restricted Subsidiaries, taken as a whole (other than
(x) the matters described on Schedule 6.01(g) hereto (the “Disclosed Litigation”), and (y)
the matters set forth in the Disclosure Filings or disclosed in writing by the Borrower to
the Agents and the Lenders, on or prior to the date hereof), pending or threatened before
any Governmental Authority that (i) would be reasonably expected to have a Material Adverse
Effect or (ii) purports to affect the legality, validity or enforceability of any Loan
Document, and there shall have been no material adverse change in the status, or financial
effect on the Borrower, any Loan Party or any of its Subsidiaries, of the Disclosed
Litigation from that described on Schedule 6.01(g) hereto.

 

50

     (c) The Borrower shall have paid all accrued fees of the Agents, the Lead Arrangers and
the Lenders, and all accrued and invoiced expenses of the Agents (including the reasonable
fees and expenses of counsel to the Administrative Agent) to the extent owing and payable,
including under the Fee Letter.

     SECTION 5.02. Conditions Precedent to the Initial Borrowing. The obligation of each
Lender to make an Advance on the occasion of the initial Borrowing, shall be subject to the further
conditions precedent that the Administrative Agent shall have received on or before the Initial
Borrowing Date the following, each dated such day (unless otherwise specified), in form and
substance reasonably satisfactory to the Administrative Agent (unless otherwise specified):

     (a) A customary insurance broker’s letter, in form and substance reasonably
satisfactory to the Administrative Agent, evidencing the insurance carried by the Borrower.

     (b) An opinion of Kirkland & Ellis LLP, counsel for the Loan Parties, in form and
substance reasonably satisfactory to the Lenders.

     (c) An opinion of general counsel of the Borrower, in form and substance reasonably
satisfactory to the Lenders.

     (d) All documentation and other information required by regulatory authorities under
applicable “know your customer” and anti money laundering rules and
regulations, including without limitation the PATRIOT Act, such documentation and
information to be received at least five Business Days prior to the Initial Borrowing Date.

     (e) All amounts outstanding under the Existing Credit Agreement shall have been repaid
in full before or contemporaneously with the such initial Borrowing, and all commitments
thereunder shall have terminated.

     SECTION 5.03. Conditions Precedent to Each Borrowing. The obligation of each Lender
to make an Advance on the occasion of each Borrowing (including the initial Borrowing) or of any
Issuing Bank to issue any Letter of Credit, shall be subject to the further conditions precedent
that on the date of such Borrowing, and both immediately before and after giving effect thereto,
the following statements shall be true:

     (i) the representations and warranties contained in each Loan Document are correct in
all material respects on and as of such date, immediately before and after giving effect to
such Borrowing and to the application of the proceeds therefrom, as though made on and as of
such date, other than any such representations or warranties that, by their terms, refer to
a specific date other than the date of such Borrowing, in which case as of such specific
date,

     (ii) no Default has occurred and is continuing, or would result from such Borrowing or
from the application of the proceeds therefrom; and

 

51

     (iii) since October 31, 2004 (or, from and after the delivery of the audited financial
statements pursuant to Section 7.03 herein for the year then ended, October 31, 2006), there
has been no Material Adverse Change.

     SECTION 5.04. Determinations Under Sections 5.01, 5.02 and 5.03. For purposes of
determining compliance with the conditions specified in Section 5.01, 5.02 and 5.03, each
applicable Lender shall be deemed to have consented to, approved or accepted or to be satisfied
with each document or other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to such Lender unless an officer of the Administrative Agent responsible
for the transactions contemplated by the Loan Documents shall have received notice from such Lender
prior to the Effective Date or the Initial Borrowing Date, as applicable specifying its objection
thereto, and such Lender shall not have made available to the Administrative Agent such Lender’s
ratable portion of such Borrowing.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

     SECTION 6.01. Representations and Warranties of the Borrower. The Borrower
represents and warrants as follows:

     (a) Each Loan Party and each of its Restricted Subsidiaries (i) is a corporation,
limited liability company or limited partnership duly organized, validly existing and in
good standing (to the extent applicable) under the laws of the jurisdiction
of its formation, (ii) is duly qualified and in good standing as a foreign corporation
or company in each other jurisdiction in which it owns or leases property or in which the
conduct of its business requires it to so qualify or be licensed except where the failure to
so qualify or be licensed would not be reasonably likely to have a Material Adverse Effect,
and (iii) has all requisite corporate, limited liability company or partnership (as
applicable) power and authority to enter into the Loan Documents to which it is a party.

     (b) Set forth on Schedule 6.01(b) hereto is a complete and accurate list of all Loan
Parties as of the date hereof, showing as of the date hereof (as to each Loan Party) the
jurisdiction of its incorporation, the address of its principal place of business and its
U.S. taxpayer identification number or, in the case of any non-U.S. Loan Party that does not
have a U.S. taxpayer identification number, its unique identification number issued to it by
the jurisdiction of its incorporation.

     (c) Set forth on Schedule 6.01(c) hereto is a complete and accurate list of all
Restricted Subsidiaries of each Loan Party as of the date hereof, showing as of the date
hereof (as to each such Subsidiary) the jurisdiction of its formation, the number of shares,
membership interests or partnership interests (as applicable) of each class of its Equity
Interests authorized, and the number outstanding, on the date hereof and the percentage of
each such class of its Equity Interests owned (directly or indirectly) by such Loan Party
and the number of shares covered by all outstanding options, warrants, rights of conversion
or purchase and similar rights at the date hereof. All of the outstanding Equity Interests
in each Loan Party’s Restricted Subsidiaries have been validly issued, are

 

 

52

owned by such Loan Party or one or more of its Restricted Subsidiaries and, with respect to the Equity
Interests in each Loan Party’s Restricted Subsidiaries, free and clear of all Liens other
than Permitted Liens and, to the extent applicable, are fully paid and non-assessable (to
the extent applicable).

     (d) The execution, delivery and performance by each Loan Party of each Loan Document to
which it is or is to be a party is within such Loan Party’s corporate, limited liability
company or limited partnership (as applicable) powers, have been duly authorized by all
necessary corporate, limited liability company or limited partnership (as applicable)
action, and do not (i) contravene such Loan Party’s charter, bylaws, limited liability
company agreement, partnership agreement or other constituent documents, (ii) violate any
law, rule, regulation (including, without limitation, Regulation X of the Board of Governors
of the Federal Reserve System), order, writ, judgment, injunction, decree,
determination or award binding upon any Loan Party, (iii) conflict with or result in
the breach of, or constitute a default or require any payment to be made under, any
contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument
binding on any Loan Party, any of its Subsidiaries or any of their properties except, in the
case of performance by any such Loan Party, to the extent that such conflict or breach would
not be reasonably expected to result in a Material Adverse Effect, or (iv) result in or
require the creation or imposition of any Lien upon or with respect to any of the properties
of any Loan Party or any of its Subsidiaries. As of the date hereof, no Loan Party or any
of its Subsidiaries is in violation of any such law, rule, regulation, order, writ,
judgment, injunction, decree, determination or award or in breach of any such contract, loan
agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or
breach of which would be reasonably likely to have a Material Adverse Effect, other than to
the extent described in the Disclosure Filings.

     (e) No Governmental Authorization, and no notice to or filing with, any Governmental
Authority is required for (i) the due execution, delivery, recordation, filing or
performance by any Loan Party of any Loan Document to which it is or is to be a party, or
(ii) the exercise by any Agent or any Lender of its rights under the Loan Documents, except
for authorizations, approvals, actions, notices and filings which have been duly obtained,
taken, given or made and are in full force and effect, routine renewals of existing licenses
and permits of the Borrower and its Subsidiaries in the ordinary course of business and such
filings as may be required under federal and state securities laws for purposes of
disclosure.

     (f) This Agreement has been, and each other Loan Document when delivered hereunder will
have been, duly executed and delivered by each Loan Party thereto. This Agreement is, and
each other Loan Document when delivered hereunder will be, the legal, valid and binding
obligation of each Loan Party party thereto, enforceable against such Loan Party in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium or other laws affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a proceeding in equity or at law.

 

53

     (g) There is no action, suit, investigation, litigation or proceeding against any Loan
Party or any of its Subsidiaries, including any Environmental Action, pending or threatened
before any Governmental Authority or arbitrator that (i) would be reasonably likely to have
a Material Adverse Effect (other than any shareholder litigation or regulatory investigation
arising from the matters described in the Disclosure Filings) or (ii) purports to affect the
legality, validity or enforceability of any Loan Document and there has been no material
adverse change (other than to the extent disclosed in the Borrower’s filings pursuant to the
Securities Exchange Act of 1934, as amended, made and publicly available on or before the
date hereof) in the status, or financial effect on any Loan Party or any of its
Subsidiaries, of the Disclosed Litigation from that described on Schedule 6.01(g) hereto.

     (h) There has been no Material Adverse Change since October 31, 2004 (or, from and
after the delivery of the audited financial statements pursuant to Section 7.03
herein for the year then ended, October 31, 2006); provided, however, the Agents and
the Lenders hereby acknowledge that the existence of the matters set forth in the Disclosure
Filings shall not be deemed to constitute a misrepresentation hereunder.

     (i) The Consolidated balance sheet, statement of income and statement of cash flows of
the Borrower and its Subsidiaries delivered to the Initial Lenders by the Borrower prior to
the date hereof, and any additional reporting requirements delivered to the Lenders pursuant
to Section 7.03(c) were prepared in good faith.

     (j) No written information, exhibit or report (other than the projections, budgets,
estimates, forward-looking information and general market data) about any Loan Party or
their Subsidiaries prepared by or on behalf of any Loan Party and furnished by or on behalf
of any Loan Party to any Agent or any Lender in connection with the negotiation and
syndication of the Loan Documents or pursuant to the terms of the Loan Documents contained,
when furnished and taken as a whole, any untrue statement of a material fact or omitted to
state a material fact necessary to make the statements made therein not materially
misleading in light of the circumstances under which such statements were made; provided,
however, that the Agents and the Lenders hereby acknowledge that the existence of the
matters referred to in the Disclosure Filings shall not be deemed to constitute a
misrepresentation hereunder.

     (k) The Borrower is not engaged in the business of extending credit for the purpose of
purchasing or carrying Margin Stock, and no proceeds of any Advance will be used to purchase
or carry any Margin Stock or to extend credit to others for the purpose of purchasing or
carrying any Margin Stock.

     (l) No Loan Party is required to be registered as 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, as amended.
Neither the making of any Advances, nor the application of the proceeds or repayment thereof
by the Borrower, nor the consummation of the other transactions contemplated by the Loan
Documents, will violate any provision of such Act or any rule, regulation or order of the
Securities and Exchange Commission thereunder.

 

54

     (m) The Loan Parties and their Subsidiaries, taken as a whole, are Solvent.

     (i) No ERISA Event has occurred or is reasonably expected to occur with respect
to any Plan that has resulted in or is reasonably expected to result in a material
liability of any Loan Party or any ERISA Affiliate.

     (ii) Schedule B (Actuarial Information) to the most recent annual report (Form
5500 Series) for each Plan, copies of which have been filed with the Department of
Labor and furnished to the Administrative Agent, is complete and accurate in all
material respects and fairly presents the funding status of such Plan, and since the
date of such Schedule B there has been no material adverse change in such funding
status.

     (iii) Neither any Loan Party nor any ERISA Affiliate has incurred or is
reasonably expected to incur any material Withdrawal Liability.

     (iv) Neither any Loan Party nor any ERISA Affiliate has been notified by the
sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or
has been terminated, within the meaning of Title IV of ERISA, and no such
Multiemployer Plan is reasonably expected to be in reorganization or to be
terminated, within the meaning of Title IV of ERISA.

     (n) (i) Except as would not reasonably be expected to have a Material Adverse Effect,
the operations and properties of each Loan Party and each of its Subsidiaries comply in all
respects with all applicable Environmental Laws and Environmental Permits, all past
non-compliance with such Environmental Laws and Environmental Permits has been resolved
without ongoing obligations or costs, and no circumstances exist that would be reasonably
likely to (A) form the basis of an Environmental Action against any Loan Party or any of its
Subsidiaries or any of their properties that could reasonably be expected to have a Material
Adverse Effect or (B) cause any such property to be subject to any restrictions on
ownership, occupancy, use or transferability under any Environmental Law.

     (ii) In each case except as would not reasonably be expected to have a Material
Adverse Effect: (A) none of the properties currently or formerly owned or operated
by any Loan Party or any of its Subsidiaries is listed or proposed for listing on
the NPL or on the CERCLIS or any analogous foreign, state or local list or is
adjacent to any such property; (B) there are no and never have been any underground
or aboveground storage tanks or any surface impoundments, septic tanks, pits, sumps
or lagoons in which Hazardous Materials are being or have been treated, stored or
disposed on any property currently owned or operated by any Loan Party or any of its
Subsidiaries or, to the best of its knowledge, on any property formerly owned or
operated by any Loan Party or any of its Subsidiaries; there is no asbestos or
asbestos-containing material on any property currently owned or operated by any Loan
Party or any of its Subsidiaries; and (C) Hazardous Materials have not been
released, discharged or disposed of on any

 

55

property currently or formerly owned or
operated by any Loan Party or any of its Subsidiaries.

     (iii) In each case except as would not reasonably be expected to have a
Material Adverse Effect: (A) neither any Loan Party nor any of its Subsidiaries is
undertaking, and has not completed, either individually or together with other
potentially responsible parties, any investigation or assessment or remedial or
response action relating to any actual or threatened release, discharge or disposal
of Hazardous Materials at any site, location or operation, either voluntarily or
pursuant to the order of any governmental or regulatory authority or the
requirements of any Environmental Law; and (B) all Hazardous Materials generated,
used, treated, handled or stored at, or transported to or from, any property
currently or formerly owned or operated by any Loan Party or any of its
Subsidiaries have been disposed of in a manner not reasonably expected to
result in liability to any Loan Party or any of its Subsidiaries.

     (o) Each Loan Party and each of its Restricted Subsidiaries has filed, has caused to be
filed or has been included in all tax returns (Federal and material state, local and
foreign) required to be filed and, except to the extent not required by Section 7.01(b), has
paid all taxes shown thereon to be due, together with applicable interest and penalties.

     (p) Set forth on Part I of Schedule 6.01(p) hereto is a complete and accurate list of
all Existing Debt outstanding in a principal amount in excess of $50,000,000 (and excluding
any intercompany debt as of the date hereof), showing as of the date hereof the obligor and
the principal amount outstanding thereunder, the maturity date thereof and the amortization
schedule therefor. Set forth on Part II of Schedule 6.01(p) is a complete and accurate
description as of the date hereof of all defaults under any Existing Debt, other than
defaults resulting from the matters disclosed in the Disclosure Filings.

     (q) Set forth on Schedule 6.01(q) hereto is a complete and accurate list of all Liens
on the property or assets of any Loan Party or any of its Restricted Subsidiaries securing
Debt for Borrowed Money outstanding in a principal amount in excess of $50,000,000 as of the
date hereof, showing as of the date hereof the lienholder thereof, the principal amount of
the obligations secured thereby and the property or assets of such Loan Party or such
Restricted Subsidiary subject thereto.

     (r) No “ownership change” as defined in Section 382(g) of the Internal Revenue Code,
and no event that would result in the application of the “separate return limitation year”
or “consolidated return change of ownership” limitations under the Federal income tax
consolidated return regulations, has occurred with respect to the Borrower.

 

56

ARTICLE VII

COVENANTS OF THE BORROWER

     SECTION 7.01. Affirmative Covenants. So long as any Advance or any other Obligation
(other than contingent indemnification obligations) of any Loan Party under any Loan Document shall
remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will:

     (a) Compliance with Laws, Etc. Comply, and cause each of its Restricted
Subsidiaries to comply, in all material respects, with all applicable laws, rules,
regulations and orders, such compliance to include, without limitation, compliance with
ERISA and the Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime
Control Act of 1970, in each case except (i) as would not reasonably be expected to have a
Material Adverse Effect or (ii) to the extent that such compliance is not possible as a
result of the matters described in the Disclosure Filings.

     (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its Restricted
Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes,
assessments and governmental charges or levies imposed upon it or upon its property and (ii)
all lawful claims that, if unpaid, might by law become a Lien upon its property, in each
case that, if not paid, could reasonably be expected to result in a Material Adverse Effect;
provided, however, that neither the Borrower nor any of its Restricted Subsidiaries shall be
required to pay or discharge any such tax, assessment, charge or claim that is being
contested in good faith and by proper proceedings and as to which appropriate reserves are
being maintained.

     (c) Compliance with Environmental Laws. Except in each case as would not
reasonably be expected to have a Material Adverse Effect: (i) comply, and cause each of its
Restricted Subsidiaries to comply, with all applicable Environmental Laws and Environmental
Permits; (ii) obtain and renew, and cause each of its Restricted Subsidiaries to obtain and
renew, all Environmental Permits necessary for its operations and properties; and (iii)
conduct, and cause each of its Restricted Subsidiaries to conduct, any investigation, study,
sampling and testing, and undertake any cleanup, removal, remedial or other action necessary
to remove and clean up all Hazardous Materials from any of its properties, in accordance
with the requirements of all Environmental Laws; provided, however, that neither the
Borrower nor any of its Restricted Subsidiaries shall be required to undertake any such
cleanup, removal, remedial or other action to the extent that its obligation to do so is
being contested in good faith and by proper proceedings and appropriate reserves are being
maintained with respect to such circumstances.

     (d) Maintenance of Insurance. Maintain, and cause each of its Restricted
Subsidiaries to maintain, insurance with responsible and reputable insurance companies or
associations (or self-insurance) in such amounts and covering such risks as is usually
carried by companies engaged in similar businesses and owning similar properties in the same
general areas in which the Borrower or such Restricted Subsidiary operates.

 

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     (e) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause
each of its Restricted Subsidiaries to preserve and maintain, its existence, legal
structure, legal name, rights (charter and statutory), permits, licenses, approvals,
privileges and franchises material and necessary to the conduct of its business; provided,
however, that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under this Agreement.

     (f) Visitation Rights. So long as no Event of Default shall have occurred and
be continuing, once a year, at any reasonable time during normal business hours with
reasonable prior notice, permit any of the Agents, or any agents or representatives thereof,
to examine and make copies of and abstracts from the records and books of account of, and
visit the properties of, the Borrower and any Restricted Subsidiaries, and to discuss the
affairs, finances and accounts of the Borrower and any Restricted Subsidiaries with any of
their officers and, provided that the Borrower is given the opportunity to be present, with
their registered public accountants; provided, that following the occurrence of an Event of
Default, and so long as such Event of Default shall remain uncured or unwaived, the Borrower
shall permit any of the Agents or the
Lenders, or any agents or representatives thereof, to conduct visits as described above
at any time during normal business hours and on reasonable prior notice as such Agents or
Lenders may deem reasonably necessary.

     (g) Keeping of Books. Keep, and cause each of its Restricted Subsidiaries to
keep, proper books of record and account, in which full and correct in all material respects
entries shall be made of all financial transactions and the assets and business of the
Borrower and each such Restricted Subsidiary, in accordance with generally accepted
accounting principles in effect from time to time.

     (h) Maintenance of Properties, Etc. Maintain and preserve, and cause each of
its Restricted Subsidiaries to maintain and preserve, all of its properties that are
material to the conduct of its business in satisfactory working order and condition,
ordinary wear and tear, damage from casualty and loss from condemnation excepted.

     (i) Covenant to Guarantee Obligations. In the event that any Restricted
Subsidiary of the Borrower (whether presently existing, or hereafter formed or acquired)
shall at any time guarantee any Debt for Borrowed Money in excess of $35,000,000 of the
Borrower or a Subsidiary Guarantor, then such Subsidiary shall be a “Guarantor” hereunder,
and shall be required to execute and deliver, in each case at the Borrower’s expense:

     (i) within 25 days after the issuing of such a guarantee by such a Subsidiary,
cause such Subsidiary to duly execute and deliver to the Administrative Agent a
Subsidiary Guaranty Supplement, on substantially the same terms as Article X,
guaranteeing the other Loan Parties’ obligations under the Loan Documents; and

     (ii) within 60 days after the issuing of such a guarantee by such a Subsidiary,
deliver to the Administrative Agent, upon the request of the

 

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Administrative Agent,
acting in its sole discretion, a signed copy of an opinion, addressed to the
Administrative Agent, of counsel for the Loan Parties reasonably acceptable in form
and substance to the Administrative Agent as to (1) the matters contained in clause
(i) above, and (2) such other matters with respect to such Subsidiary as the
Administrative Agent may reasonably request.

     (j) Ratings. Use commercially reasonable efforts to maintain a “corporate
family” rating for the Borrower by S&P or Moody’s, as applicable, including, without
limitation, providing to S&P or Moody’s, as applicable, such information as to its business
as S&P or Moody’s, as applicable, may reasonably request.

     (k) Speculative Transactions. In the event that the mark-to-market liability of
the Borrower or any Restricted Subsidiary in respect of any speculative transactions exceeds
$5,000,000, the Borrower or such Restricted Subsidiary shall promptly close out or unwind
such transactions and discharge all liabilities in respect thereof.

     SECTION
7.02. Negative Covenants. So long as any Advance or any other Obligation (other than a contingent indemnification
obligation) of any Loan Party under any Loan Document shall remain unpaid or any Lender shall have
any Commitment hereunder, the Borrower will not, at any time:

     (a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its
Restricted Subsidiaries to create, incur, assume or suffer to exist, any Lien on or with
respect to any of its properties of any character (including, without limitation, accounts)
whether now owned or hereafter acquired, or assign, or permit any of its Restricted
Subsidiaries to assign, any accounts or other right to receive income, except:

     (i) Liens created under the Loan Documents;

     (ii) Permitted Liens;

     (iii) Liens existing on the date hereof;

     (iv) purchase money Liens upon or in real property or equipment acquired or
held by the Borrower or any of its Restricted Subsidiaries in the ordinary course of
business to secure the purchase price of such property or equipment or to secure
Debt incurred for the purpose of financing the acquisition, construction or
improvement of any such property or equipment to be subject to such Liens, or Liens
existing on any such property or equipment at the time of acquisition (other than
any such Liens created in contemplation of such acquisition that do not secure the
purchase price), or extensions, renewals or replacements of any of the foregoing for
the same or a lesser amount; provided, however, that no such Lien shall extend to or
cover any property other than the property or equipment being acquired, constructed
or improved and such improvements, and no such extension, renewal or replacement
shall extend to or cover any property not theretofore subject to the Lien being
extended, renewed or replaced; and provided further that the aggregate principal
amount of the Debt

 

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secured by Liens permitted by this clause (iv) shall not exceed
the amount permitted under Section 7.02(b)(ii) at any time outstanding;

     (v) Liens arising under Capitalized Leases permitted under Sections
7.02(b)(iii) and (xviii); provided that no such Lien shall extend to or cover any
assets other than the assets subject to such Capitalized Leases;

     (vi) Liens on property of a Person existing at the time such Person is merged
into or consolidated with the Borrower, or any Restricted Subsidiary, or becomes a
Restricted Subsidiary; provided that (x) such merger or consolidation is otherwise
permitted under the Loan Documents, and (y) such Liens were not created in
contemplation of such merger, consolidation or investment and do not extend to any
assets other than those of the Person merged into or consolidated with the Borrower
or such Restricted Subsidiary or acquired by the Borrower or such Subsidiary;

     (vii) other Liens securing Debt outstanding in an aggregate principal amount
not to exceed $50,000,000 at any time;

     (viii) the replacement, extension or renewal of any Lien permitted above upon
or in the same property theretofore subject thereto or the replacement, extension or
renewal (without increase in the amount or change in any direct or contingent
obligor) of the Debt secured thereby;

     (ix) Liens incurred pursuant to the Master Intercompany Agreements;

     (x) leases or subleases, licenses, and sublicenses granted to others that do
not materially interfere with the ordinary course of business of the Borrower or of
any Restricted Subsidiary of the Borrower;

     (xi) Liens arising from filing Uniform Commercial Code financing statements
regarding leases;

     (xii) Liens arising to the extent taxes are not required to be paid pursuant to
Section 7.01(b);

     (xiii) Liens encumbering customary initial deposits and margin deposits, and
other Liens incurred in the ordinary course of business that are within the general
parameters customary in the industry, in each case securing Debt under any Hedge
Agreements;

     (xiv) Liens securing Permitted Receivables Financings; and

     (xv) Liens on accounts, inventory, related assets and any proceeds thereof of
the Borrower and its Subsidiaries securing Debt permitted under Section 7.02(b)(xx).

 

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     (b) Debt. Create, incur, assume or suffer to exist, or permit any of its
Restricted Subsidiaries to create, incur, assume or suffer to exist, any Debt, except:

     (i) Debt under the Loan Documents, and any refunding, refinancing or
replacement, in whole or in part, of any Debt under the Loan Documents; provided
that (A) the direct and contingent obligors on such Debt shall not be changed unless
any new obligors execute and deliver to the Agent a Subsidiary Guaranty Supplement
pursuant to Section 7.01(i) and (B) the maturity date of such extending, refunding
or refinancing Debt shall occur after the Maturity Date;

     (ii) Debt secured by Liens permitted by Section 7.02(a)(iv) not to exceed in
the aggregate $25,000,000 at any time outstanding;

     (iii) Capitalized Leases not to exceed in the aggregate $25,000,000 at any time
outstanding;

     (iv) the Existing Debt (including Obligations outstanding immediately before
the occurrence of the Effective Date that are recharacterized as Debt, in connection
with the completion of the audit report for the annual financial statements of the
Borrower for each of the 2005 and 2006 Fiscal Years or any
restatement of its annual financial statements for the 2004 Fiscal Year or any
prior Fiscal Year), and any Debt extending the maturity of, or refunding, replacing
or refinancing, in whole or in part, any Existing Debt; provided that (A) the
principal amount of such Debt shall not be increased above the principal amount
outstanding immediately prior to such extension, refunding or refinancing (plus any
expenses or premiums incurred in connection with refinancing, replacing or refunding
such Debt), and the direct and contingent obligors therefor shall not be changed, as
a result of or in connection with such extension, refunding or refinancing, (B) the
terms relating to principal amount, amortization, maturity, collateral (if any) and
subordination (if any), and other material terms taken as a whole, of any such
extending, refunding, replacement, refinancing or replacement Debt, and of any
agreement entered into and of any instruments issued in connection therewith, are
not materially less favorable to the Loan Parties or the Lenders than the terms of
any agreement or instrument governing the Existing Debt being extended, refunded or
refinanced, (C) any such extension, refunding or refinancing of Existing Debt shall
occur not more than one year before the scheduled maturity of such Existing Debt,
and (D) the maturity date of such extending, refunding, replacement or refinancing
Debt shall occur after the Maturity Date;

     (v) Debt in respect of Hedge Agreements incurred in the ordinary course of
business and consistent with prudent business practice;

     (vi) intercompany Debt between the Borrower and/or a Restricted Subsidiary of
the Borrower;

 

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     (vii) Subordinated Debt not to exceed in the aggregate $200,000,000 at any time
outstanding;

     (viii) other Debt not to exceed in the aggregate $150,000,000 at any time
outstanding;

     (ix) Guaranteed Debt of the Loan Parties with respect to (x) obligations of NFC
under the Receivables Facility and (y) obligations with respect to the Loan Parties’
financial service operations in Mexico; provided that the aggregate amount of all
such Guaranteed Debt shall not exceed the aggregate amount of such Guaranteed Debt
outstanding on the date hereof;

     (x) Debt under the Support Agreement;

     (xi) Debt under the Master Intercompany Agreements;

     (xii) Debt under Permitted Receivables Financings;

     (xiii) Debt incurred by the Borrower or any of its Restricted Subsidiaries
constituting reimbursement obligations with respect to letters of credit issued in
the ordinary course of business, including, without limitation, letters of credit in
response to worker’s compensation claims or self-insurance;

     (xiv) Debt arising from agreements of the Borrower or a Restricted Subsidiary
of the Borrower providing for adjustment of purchase price, earn-out or other
similar obligations, in each case, incurred or assumed in connection with any
acquisition permitted under Section 7.02(f); provided that the amount of such Debt
shall not exceed 25% of the total consideration for such acquisition;

     (xv) obligations in respect of performance and surety bonds and completion
guarantees provided by the Borrower or any Restricted Subsidiary of the Borrower in
respect of obligations arising in the ordinary course of business and not
constituting Debt for Borrowed Money;

     (xvi) Debt consisting of notes issued to current or former employees, officers
or directors in connection with the redemption or repurchase of Equity Interests
held by such Persons in an aggregate amount not in excess of $10,000,000 at any time
outstanding;

     (xvii) Debt consisting of take-or-pay obligations contained in supply
agreements entered into by the Borrower or its Restricted Subsidiaries in the
ordinary course of business consistent with past practices;

     (xviii) Debt in respect of any Sale/Leaseback Transaction with respect to the
purchase of tooling and related manufacturing equipment in the ordinary course of
business consistent with past practices;

 

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     (xix) Subordinated Debt owed by the Borrower and/or a Restricted Subsidiary to
any Unrestricted Subsidiary;

     (xx) Debt of no more than $200,000,000 under or in respect of an asset-based
revolving facility of the Borrower and all or certain of its Subsidiaries;

     (xxi) Guarantees issued by the Loan Parties of Debt otherwise permitted
hereunder; and

     (xxii) Investments to the extent constituting Debt (as defined in clause (i) or
(j) in the definition of “Debt”) or acquired in connection with Section
7.02(f)(vii).

     (c) Change in Nature of Business. Make, or permit any of its Restricted
Subsidiaries to make, any material change in the general nature of its business as carried
on at the date hereof; provided, that the Loan Parties and their Restricted Subsidiaries may
enter into complementary, ancillary or supportive businesses.

     (d) Mergers, Etc. Merge into or consolidate with any Person or permit any
Person to merge into it, or permit any of its Restricted Subsidiaries to do so, except that:

     (i) any Restricted Subsidiary of the Borrower may merge into or consolidate
with any other Restricted Subsidiary of the Borrower; provided that, in the case of
any such merger or consolidation, the Person formed by such
merger or consolidation shall be a direct or indirect Restricted Subsidiary of
the Borrower; and provided further that, in the case of any such merger or
consolidation to which a Subsidiary Guarantor is a party, the Person formed by such
merger or consolidation shall be a Subsidiary Guarantor;

     (ii) as part of any acquisition permitted under Section 7.02(f), any Restricted
Subsidiary of the Borrower may merge into or consolidate with any other Person or
permit any other Person to merge into or consolidate with it; provided that the
Person surviving such merger shall be a direct or indirect Restricted Subsidiary of
the Borrower; and provided further that, in the case of any merger or consolidation
to which a Subsidiary Guarantor is a party, the Person formed by such merger or
consolidation shall be a Subsidiary Guarantor; and

     (iii) as part of any sale or other disposition permitted under Section 7.02(e)
(other than clause (ii) thereof), any Restricted Subsidiary of the Borrower may
merge into or consolidate with any other Person or permit any other Person to merge
into or consolidate with it;

provided, however, that in each case, immediately before and after giving effect thereto, no
Event of Default shall have occurred and be continuing.

     (e) Sales, Etc. of Assets. Sell, lease, transfer or otherwise dispose of, or
permit any of its Restricted Subsidiaries to sell, lease, transfer or otherwise dispose of,
any

 

63

assets, or grant any irrevocable option or other right to purchase, lease or otherwise
acquire, or permit any of its Restricted Subsidiaries to grant any irrevocable option or
other right to purchase, lease or otherwise acquire, any assets, except:

     (i) sales of inventory in the ordinary course of its business and the granting
of any option or other right to purchase, lease or otherwise acquire inventory in
the ordinary course of its business;

     (ii) in a transaction authorized by Section 7.02(d) (other than subsection
(iii) thereof);

     (iii) sales, transfers or other dispositions of assets among Loan Parties and
their Restricted Subsidiaries;

     (iv) sales, transfers or other dispositions of assets for consideration
consisting of at least 75% cash and for fair value;

     (v) sales of assets pursuant to the Master Intercompany Agreements;

     (vi) Sale/Leaseback Transactions with respect to the purchase of tooling and
related manufacturing equipment in the ordinary course of business consistent with
past practices;

     (vii) any sale, transfer or other disposition of defaulted receivables for
collection or any sale, transfer or other disposition of property or assets in the
ordinary course of business;

     (viii) the grant of any license of patents, trademarks, registrations therefor
and other similar intellectual property in the ordinary course of business
consistent with past practices;

     (ix) the granting of any Lien (or foreclosure thereon) securing Debt to the
extent permitted hereunder;

     (x) any sale, transfer or other disposition expressly permitted by Section
7.02(f);

     (xi) any disposition of assets or property in the ordinary course of business
to the extent such property or assets are surplus, negligible, obsolete,
uneconomical, worn-out or no longer useful in the Borrower’s or any of its
Restricted Subsidiaries’ business; and

     (xii) sales of accounts receivable and related assets (including contract
rights) to a Finance Subsidiary for the fair market value thereof pursuant to a
Permitted Receivables Financing;

provided that in the case of sales of assets pursuant to clause (iv) above, the Borrower
shall, on the date of receipt by any Loan Party or any of its Subsidiaries of the Net Cash

 

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Proceeds from such sale, prepay the Advances pursuant to, and in the amount set forth in,
Section 4.01(b)(i).

     (f) Investments in Other Persons. Make or hold, or permit any of its Restricted
Subsidiaries to make or hold, any Investment in any other Person, except:

     (i) (A) Investments by the Borrower and its Restricted Subsidiaries in their
respective Subsidiaries outstanding on the date hereof, (B) additional Investments
by the Borrower and its Restricted Subsidiaries in Unrestricted Subsidiaries in the
form of Letters of Credit issued pursuant hereto to support Obligations of
Unrestricted Subsidiaries and (C) additional Investments by the Borrower and any
Restricted Subsidiaries in Restricted Subsidiaries; provided, however, that,
in the event the Loan Parties sell, lease transfer or otherwise dispose of, in a
single transaction or a series of related transactions, all or substantially all of
their assets to one or more Restricted Subsidiaries that are not Loan Parties, the
Borrower shall cause such Restricted Subsidiaries to execute and deliver to the
Administrative Agent a Subsidiary Guaranty Supplement pursuant to Section 7.01(i);

     (ii) loans and advances to employees in the ordinary course of the business of
the Borrower and its Subsidiaries, as presently conducted in an aggregate principal
amount not to exceed $5,000,000 at any time outstanding, and made in compliance with
the provisions of the Sarbanes-Oxley Act of 2002;

     (iii) Investments by the Borrower and its Subsidiaries in Cash Equivalents;

     (iv) Investments existing on the date hereof (including any Obligation, asset,
contractual or other arrangement, transaction or relationship in effect immediately
prior to the date hereof that is recharacterized or newly recognized as an
Investment, in connection with the completion of the audit report for the annual
financial statements of the Borrower for each of the 2005 or 2006 Fiscal Years or
any restatement of its annual financial statements for the 2004 Fiscal Year or any
prior Fiscal Year);

     (v) Investments in NFC made pursuant to the Support Agreement to the extent
required by the Support Agreement;

     (vi) Investments in Hedge Agreements permitted under Section 7.02(b)(vi);

     (vii) the purchase or other acquisition of a business unit, division or all of
the Equity Interests in any other Person that, upon the consummation thereof, will
be a Restricted Subsidiary, wholly owned directly by the Borrower or one or more of
its wholly owned Restricted Subsidiaries (including, without limitation, as a result
of a merger or consolidation) and the purchase or other acquisition by the Borrower
or one or more of its Restricted Subsidiaries of all or substantially

 

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all of the property and assets of any Person; provided that, with respect to each purchase or
other acquisition made pursuant to this clause (vii):

     (A) the lines of business of the Person to be (or the property and
assets of which are to be) so purchased or otherwise acquired shall be
substantially the same lines of business as one or more of the principal
businesses of the Borrower and its Subsidiaries in the ordinary course;

     (B) such purchase or other acquisition shall not include or result in
any contingent liabilities that could reasonably be expected to be material
to the business, financial condition or operations of the Borrower and its
Restricted Subsidiaries, taken as a whole (as determined in good faith by
the board of directors (or the persons performing similar functions) of the
Borrower, if the board of directors is otherwise approving such transaction,
or, in each other case, by a Financial Officer of the Borrower);

     (C) unless the Borrower shall have received confirmation from S&P or
Moody’s, as applicable, that its then current “corporate family” ratings of
the Borrower will not be reduced as a result of such purchase or other
acquisition, the total cash and noncash consideration (exclusive of Equity
Interests issued or transferred to the sellers of such Person or assets, but
including all indemnities, earnouts and other contingent payment obligations
to, and the aggregate amounts paid or to be paid
under noncompete, consulting and other affiliated agreements with, the
sellers of such Person or assets, all write-downs of property and assets and
reserves for liabilities with respect thereto and all assumptions of debt,
liabilities and other obligations in connection therewith) paid by or on
behalf of the Borrower and its Restricted Subsidiaries for any such purchase
or other acquisition, when aggregated with the total cash and noncash
consideration paid by or on behalf of the Borrower and its Restricted
Subsidiaries for all other purchases and other acquisitions made by the
Borrower and its Restricted Subsidiaries pursuant to this clause (vii),
shall not exceed $350,000,000;

     (D) (1) immediately before and immediately after giving effect to any
such purchase or other acquisition, no Event of Default shall have occurred
and be continuing and (2) immediately after giving effect to such purchase
or other acquisition, the Borrower, its Restricted Subsidiaries shall be in
pro forma compliance with all of the covenants set forth in Section 7.04,
such compliance to be determined on the basis of audited financial
statements of such Person or assets as though such purchase or other
acquisition had been consummated as of the first day of the fiscal period
covered thereby; and

     (E) the Borrower shall have delivered to the Administrative Agent, on
behalf of the Lenders, at least five Business Days prior to the

 

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date on which any such purchase or other acquisition is to be consummated, a
certificate of a Financial Officer, in form and substance reasonably
satisfactory to the Administrative Agent, certifying that all of the
requirements set forth in this clause (vii) have been satisfied or will be
satisfied on or prior to the consummation of such purchase or other
acquisition.

     (viii) Investments pursuant to the Master Intercompany Agreements;

     (ix) Investments in a Finance Subsidiary pursuant to a Permitted Receivables
Financing;

     (x) Investments in Permitted Joint Ventures; provided that, prior to making
such Investment, the Borrower shall have received confirmation from S&P or Moody’s,
as applicable, that the corporate family ratings then applicable to the Borrower
will not be reduced as a result of such Investment;

     (xi) trade receivables and prepaid expenses, in each case arising in the
ordinary course of business; provided, that such receivables and prepaid expenses
would be recorded as assets of such Person in accordance with GAAP;

     (xii) Investments received as consideration for asset dispositions permitted
pursuant to Section 7.02(e);

     (xiii) Investments for which the sole consideration provided is Equity
Interests of the Borrower;

     (xiv) Investments in securities of trade creditors, suppliers or customers
received pursuant to any plan of reorganization, restructuring, workout or similar
arrangement of such trade creditor, supplier or customer or upon the compromise of
any debt created in the ordinary course of business owning to the Borrower or a
Subsidiary, whether through litigation, arbitration or otherwise;

     (xv) Investments in Navistar Financial Corporation, Arrendadora Financiera
Navistar S.A. de C.V., Servicios Financieros Navistar S.A. de C.V., Servicios
Financieros NFC, S.A. de C.V. or Navistar Commercial, S.A. de C.V. having an
aggregate fair market value (measured on the date each Investment was made without
giving effect to subsequent changes in value), when taken together with all other
Investments made pursuant to this clause (xv) that are at that time outstanding not
to exceed $25,000,000;

     (xvi) other Investments in an aggregate amount not to exceed $25,000,000
(measured on the date each Investment was made without giving effect to subsequent
changes in value);

     (xvii) loans or advances to, guarantees in favor of, and other extensions of
credit to customers and suppliers in the ordinary course of business in an aggregate
amount not to exceed $25,000,000 at any time outstanding; and

 

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     (xviii) Guaranteed Debt otherwise permitted under Section 7.02(b) to the extent
constituting an Investment.

     (g) Restricted Payments. Declare or pay any dividends, purchase, redeem,
retire, defease or otherwise acquire for value any of its Equity Interests now or hereafter
outstanding, return any capital to its stockholders, partners or members (or the equivalent
Persons thereof) as such, make any distribution of assets, Equity Interests, obligations or
securities to its stockholders, partners or members (or the equivalent Persons thereof) as
such, or permit any of its Restricted Subsidiaries to do any of the foregoing, or permit any
of its Restricted Subsidiaries to purchase, redeem, retire, defease or otherwise acquire for
value any Equity Interests in the Borrower, except that:

     (i) the Borrower (A) may declare and pay dividends and make distributions
payable only in common stock of the Borrower, and (B) except to the extent the Net
Cash Proceeds thereof are required to be applied to the prepayment of the Advances
pursuant to Section 4.01(b), may purchase, repurchase, redeem, retire, defease or
otherwise acquire shares of its Equity Interests with the proceeds received
contemporaneously from the issue of new shares of its Equity Interests with equal or
inferior voting powers, designations, preferences and rights;

     (ii) so long as no Event of Default shall have occurred and be continuing, the
Borrower may (A) declare and pay cash dividends to its
stockholders, and (B) purchase, repurchase, redeem, retire, defease or
otherwise acquire shares of its Equity Interests (including purchases of stock from
current or former employees, employees’ spouses, estates or estate planning vehicles
in accordance with the terms of employee stock purchase plans), in an aggregate
amount not to exceed $50,000,000 annually;

     (iii) any Restricted Subsidiary may declare and pay dividends or distributions
to the Borrower or to any Restricted Subsidiary (of the Borrower) of which it is
itself a Subsidiary;

     (iv) repurchases of Equity Interests deemed to occur upon the exercise of stock
options if such Equity Interests represents a portion of the exercise price thereof
or tax withholding related to the exercise of such stock options; and

     (v) payments not to exceed $10,000,000 per annum in the aggregate to enable the
Borrower to make payments to holders of its Equity Interests in lieu of issuance of
fractional shares of its Equity Interests.

     (h) Accounting Changes. Make or permit, or permit any of its Restricted
Subsidiaries to make or permit, any change in (i) accounting policies or reporting
practices, except as required (x) by generally accepted accounting principles, or (y) to
rectify the matters disclosed in the Disclosure Filings or (ii) Fiscal Year.

     (i) Prepayments, Etc., of Debt. (i) Prepay, redeem, purchase, defease or
otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any

 

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payment in violation of any subordination terms of, any Debt, except (A) the prepayment of the
Advances in accordance with the terms of this Agreement, (B) regularly scheduled or required
repayments or redemptions of Existing Debt, (C) any prepayments or redemptions of Existing
Debt in connection with a refunding or refinancing of such Existing Debt permitted by
Section 7.02(b)(iv), (D) the repayment or prepayment of the amounts under, and in accordance
with, documentation with respect to Debt permitted by Section 7.02(b)(iii), (E) the
repayment or prepayment of the amounts under, and in accordance with, documentation with
respect to Debt permitted by Section 7.02(b)(xviii), (F) the repayment or prepayment of the
amounts under, and in accordance with, documentation with respect to Debt permitted by
Section 7.02(b)(xx) and (G) any prepayment or redemption of Debt in an amount not to exceed
$15,000,000 or (2) amend, modify or change in any manner which would have a Material Adverse
Effect or make the term or conditions of such Existing Debt more onerous, any term or
condition of any Existing Debt or permit any of its Restricted Subsidiaries to do any of the
foregoing other than (A) to prepay any Debt payable to the Borrower, and (B) the prepayment
of the Receivables Facility in accordance with its terms.

     (j) Negative Pledge. Enter into or suffer to exist, or permit any of its
Restricted Subsidiaries to enter into or suffer to exist, any agreement prohibiting or
conditioning the creation or assumption of any Lien upon any of its property or assets
except prohibitions or conditions under (A) any Existing Debt, or (B) any purchase money
Debt permitted by Section 7.02(b)(ii) solely to the extent that the agreement or
instrument governing such Debt prohibits a Lien on the property acquired with the
proceeds of such Debt, (C) any Capitalized Lease permitted by Section 7.02(b)(iii) solely to
the extent that such Capitalized Lease prohibits a Lien on the property subject thereto, (D)
any Debt outstanding on the date any Person first becomes a Restricted Subsidiaries of the
Borrower (so long as such agreement was not entered into solely in contemplation of such
Person becoming a Restricted Subsidiaries of the Borrower), (E) the Support Agreement, (F)
the Shy Settlement, (G) agreements relating to the sale of a Subsidiary pending such sale,
provided such restrictions and conditions apply only to the Subsidiary that is to be sold
and such sale is permitted hereunder, (H) leases, subleases or licenses, sublicenses or
service contracts restricting the assignment thereof, (I) any agreement in effect at the
time any Person becomes a Subsidiary of the Borrower or a Guarantor, provided that such
agreement was not entered in contemplation of such Person becoming a Subsidiary, (J) any
other contractual requirements (including pursuant to any corporate governance documents in
the nature of a charter or by-laws) of a Finance Subsidiary arising in connection with a
Permitted Receivables Financing, provided, that any such encumbrances and restrictions apply
only to such Finance Subsidiary, (K) any agreement in effect on the date hereof as any such
agreement is in effect on such date, (L) the documentation with respect to the Debt
permitted by Section 7.02(b)(xx) or (M) customary provisions in partnership agreements,
limited liability company organizational governance documents, joint venture agreements and
other similar agreements entered into in the ordinary course of business that restrict the
transfer of ownership interests in such partnership, limited liability company, joint
venture or similar Person.

     (k) Partnerships, Etc. Become a general partner in any general or limited
partnership or joint venture, or permit any of its Restricted Subsidiaries to do so, other

 

69

than any Restricted Subsidiaries, the sole assets of which consist of its interest in such
partnership or joint venture.

     (l) [Reserved].

     (m) Payment Restrictions Affecting Restricted Subsidiaries. Directly or
indirectly, enter into or suffer to exist, or permit any of its Restricted Subsidiaries to
enter into or suffer to exist, any agreement or arrangement limiting the ability of any of
its Subsidiaries to declare or pay dividends or other distributions in respect of its Equity
Interests or repay or prepay any Debt owed to, make loans or advances to, or otherwise
transfer assets to or make Investments in, the Borrower or any Restricted Subsidiary of the
Borrower (whether through a covenant restricting dividends, loans, asset transfers or
investments, a financial covenant or otherwise), except (i) the Loan Documents, (ii) any
agreement or instrument evidencing Existing Debt, (iii) any agreement in effect at the time
a Person first became a Restricted Subsidiary of the Borrower, so long as such agreement was
not entered into solely in contemplation of such Person becoming a Restricted Subsidiary of
the Borrower, (iv) the Support Agreement, (v) the Shy Settlement, (vi) agreements relating
to the sale of a Subsidiary pending such sale, provided such restrictions and conditions
apply only to the Subsidiary that is to be sold and such sale is permitted hereunder, (vii)
leases, subleases or licenses, sublicenses or service contracts restricting the assignment
thereof, (viii) any other contractual requirements (including pursuant to any corporate
governance documents in the nature of
a charter or by-laws) of a Finance Subsidiary arising in connection with a Permitted
Receivables Financing, provided, that any such encumbrances and restrictions apply only to
such Finance Subsidiary, (ix) any agreement in effect on the Effective Date as any such
agreement is in effect on such date, and (x) documentation with respect to Debt permitted
pursuant to Section 7.02(b)(xx) and (xi) customary provisions in partnership agreements,
limited liability company organizational governance documents, joint venture agreements and
other similar agreements entered into in the ordinary course of business that restrict the
payment of dividends from such partnership, limited liability company, joint venture or
similar Person.

     (n) Transactions with Affiliates. Conduct, or permit any of its Restricted
Subsidiaries to conduct, any transactions with an Affiliate otherwise permitted under the
Loan Documents on terms that are not fair and reasonable, and no less favorable to the
Borrower or such Restricted Subsidiary, as the case may be, than such Person would obtain in
a comparable arm’s length transaction, other than (i) transactions among the Borrower and
its Restricted Subsidiaries, (ii) transactions entered into pursuant to the terms of the
Master Intercompany Agreements, the Tax Allocation Agreements or the Support Agreement and
(iii) reasonable fees and compensation paid to and advances of expenses to and indemnity
provided on behalf of officers, directors, employees or consultants of the Borrower or any
Restricted Subsidiary as determined in good faith by the Borrower’s Board of Directors or
senior management.

     (o) Unrestricted Subsidiaries. Incur, or permit any Restricted Subsidiary to
incur any Guaranteed Debt in respect of Debt of any Unrestricted Subsidiary except pursuant
to (i) the terms of the Master Intercompany Agreements, the Tax Allocation

 

70

Agreements or the Support Agreement, (ii) the Receivables Facility and (iii) Permitted Receivables Financing,
or permit any Unrestricted Subsidiary to incur any Guaranteed Debt in respect of any Debt of
the Borrower or any Restricted Subsidiary except pursuant to (i) the terms of the Master
Intercompany Agreements, the Tax Allocation Agreements or the Support Agreement, (ii) the
Receivables Facility and (iii) Permitted Receivables Financing.

     SECTION 7.03. Reporting Requirements. So long as any Advance or any other Obligation
(other than contingent indemnification obligations) of any Loan Party under any Loan Document shall
remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will furnish to the
Agents:

     (a) Default Notice. As soon as possible and in any event within five Business
Days after a Responsible Officer has knowledge of the occurrence of each Default, a
statement of a Financial Officer of the Borrower setting forth details of such Default and
the action that the Borrower has taken and proposes to take with respect thereto.

     (b) Annual Financials. Until the Borrower has first filed with the SEC each of
its annual reports on Form 10-K and each of its quarterly reports on Form 10-Q then required
to be filed under Section 13 of the Exchange Act, promptly upon the filing by the Borrower
with the SEC of its annual report on Form 10-K for any Fiscal Year, and
thereafter within 90 days after the end of each Fiscal Year completed thereafter, a
copy of the annual report for such Fiscal Year for the Borrower and its Subsidiaries,
including therein (i) Consolidated balance sheets of the Borrower and its Subsidiaries as of
the end of such Fiscal Year and (ii) a Consolidated statement of income and a Consolidated
statement of cash flows of the Borrower and its Subsidiaries for such Fiscal Year, in each
case prepared in accordance with Rule 3-10 of Regulation S-X, consistent with the Borrower’s
past practice (unless otherwise required to conform with the results of the audit or changes
in GAAP), on the basis of management’s good faith calculations and fairly presenting in all
material respects the Consolidated financial condition of the Borrower and its Subsidiaries
as at such date and the Consolidated results of operations of the Borrower and its
Subsidiaries for the period ended on such date and accompanied by (A) in the case of the
annual report for a Fiscal Year ending on or after October 31, 2007, a certificate of a
Financial Officer of the Borrower stating that no Event of Default has occurred and is
continuing or, if an Event of Default has occurred and is continuing, a statement as to the
nature thereof and the action that the Borrower has taken and proposes to take with respect
thereto, and (B) if otherwise available, (1) an audit report opinion of KPMG or other
registered public accounting firm of recognized standing, and (2) a report of such
registered public accounting firm as to the internal controls of the Borrower required under
Section 404 of the Sarbanes-Oxley Act of 2002; provided, however, that (I) in the event the
Borrower is able to comply with the provisions of clauses (B)(1) and (2) above in respect of
a Fiscal Year ending on or after October 31, 2007 and (II) such registered public accounting
firm otherwise agrees (which agreement the Borrower agrees to use commercially reasonable
efforts to obtain), such financial statements shall also be accompanied by (x) a certificate
of such registered public accounting firm stating that in the course of such regular audit
of the business of the Borrower and its Subsidiaries, which audit was conducted by such
accounting firm in accordance with

 

71

generally accepted auditing standards, such accounting
firm has obtained no knowledge that an Event of Default under Section 7.04 has occurred and
is continuing, or if, in the opinion of such accounting firm, an Event of Default under
Section 7.04 has occurred and is continuing, a statement as to the nature thereof, and (y) a
schedule in form reasonably satisfactory to the Administrative Agent of the computations
used by such accounting firm in determining, as of the end of such Fiscal Year, compliance
with the covenants contained in Section 7.04; provided that, in the event of any change in
generally accepted accounting principles used in the preparation of such financial
statements, the Borrower shall also provide a reconciliation of its financial statements to
GAAP.

     (c) Other Financials.

     (i) Quarterly Financials. Until the Borrower has first filed with the
SEC each of its annual reports on Form 10-K and each of its quarterly reports on
Form 10-Q then required to be filed under Section 13 of the Exchange Act, promptly
upon the filing by the Borrower with the SEC of its report on Form 10-Q for any
Fiscal Quarter and thereafter within 45 days after the end of each of the first
three quarters of each Fiscal Year commencing with the first Fiscal Quarter
completed thereafter, (i) a Consolidated balance sheet of the Borrower and its
Subsidiaries as of the end of such quarter, (ii) a Consolidated statement of income
and a Consolidated statement of cash flows of the Borrower and its Subsidiaries
for the period commencing at the end of the previous Fiscal Quarter and ending
with the end of such quarter, and (iii) a Consolidated statement of income and a
Consolidated statement of cash flows of the Borrower and its Subsidiaries for the
period commencing at the end of the previous Fiscal Year and ending with the end of
such quarter, all prepared in accordance with Rule 3-10 of Regulation S-X,
consistent with the Borrower’s past practice (unless otherwise required to conform
with the results of the audit or changes in GAAP), on the basis of management’s good
faith calculations and fairly presenting in all material respects, subject to year
end audit adjustments and the absence of footnotes, the Consolidated financial
condition of the Borrower and its Subsidiaries as at such date and the Consolidated
results of operations of the Borrower and its Subsidiaries for the periods ended on
such date, setting forth in each case in comparative form the corresponding figures
for the corresponding date or period of the preceding Fiscal Year, all in reasonable
detail and duly certified (subject to normal year-end audit adjustments and the
absence of footnotes) by a Financial Officer of the Borrower as having been prepared
in accordance with GAAP, together with (A) in the case of financial statements for
any Fiscal Quarter ended on or after the Effective Date, a certificate of said
officer stating that no Event of Default has occurred and is continuing or, if an
Event of Default has occurred and is continuing, a statement as to the nature
thereof and the action that the Borrower has taken and proposes to take with respect
thereto, and (B) a schedule of the computations used by the Borrower in determining
compliance with the covenants contained in Section 7.04; provided that, in the event
of any change in generally accepted accounting principles used in the preparation of
such financial statements, the Borrower shall also provide a reconciliation of such
financial statements to GAAP.

 

72

     (ii) Special Reporting. As soon as available, and in any event within
30 days after the end of each month commencing with the month of February 2007,
monthly management financial reports in respect of the sales and income by segment
and cash balances, Debt, Capital Expenditures and depreciation and amortization of
the Borrower and its Restricted Subsidiaries prepared in a manner consistent with
the Borrower’s past practices (unless otherwise noted or required to conform with
the restatement of the audit or changes in GAAP) and on the basis of management’s
good faith calculations, in such form and detail reasonably satisfactory to the
Administrative Agent (including, without limitation, any financial information
prepared in accordance with generally accepted accounting principles to determine
compliance with the covenants hereunder); provided, however, that such reporting
shall not be required so long as the Borrower has filed all reports with the
Securities and Exchange Commission required pursuant to Section 13 of the Exchange
Act.

     (iii) Special Reporting, Quarterly Financials. As soon as available,
and in any event within 60 days after the end of each fiscal quarter (other than the
last Fiscal Quarter of a Fiscal Year) or 90 days after the end of the last fiscal
quarter of a Fiscal Year, commencing with the Fiscal Quarter ended October 31, 2006,
quarterly condensed manufacturing balance sheet and income statement of the
Borrower and its Consolidated Subsidiaries, with its finance subsidiaries
included on an equity basis, prepared in a manner consistent with the Borrower’s
past practices (unless otherwise noted or required to conform with the restatement
of the audit or changes in GAAP) and on the basis of management’s good faith
calculations.

The Lenders acknowledge that the financial information delivered pursuant to paragraphs (ii)
and (iii) above will be preliminary and unaudited and will be prepared by management based
on current data then available in a manner consistent with past practices (unless otherwise
noted or required to conform with the restatement of the audit or changes in the GAAP), will
not have been reviewed by the Borrower or the Borrower’s independent accountants, and when
the accounting review in connection with the audit of the annual report for Fiscal Years
2005 and 2006 is complete, the information provided may differ from such annual report and
such difference may be material.

     (d) Litigation. Promptly after any Responsible Officer of the Borrower obtains
knowledge thereof, the commencement thereof, notice of all actions, suits, investigations,
litigation and proceedings before any Governmental Authority against any Loan Party or any
of its Subsidiaries of the type described in Section 6.01(g).

     (e) Creditor Reports. Promptly after the furnishing thereof, copies of any
statement or report furnished to any holder of Debt of any Loan Party or of any of its
Restricted Subsidiaries pursuant to the terms of any indenture, loan or credit or similar
agreement and not otherwise required to be furnished to the Lenders pursuant to any other
clause of this Section 7.03.

 

73

     (f) ERISA. (i) ERISA Events and ERISA Reports. (A) Promptly and in
any event within 15 Business Days after any Loan Party or any ERISA Affiliate knows that any
ERISA Event has occurred, a statement of a Financial Officer of the Borrower describing such
ERISA Event and the action, if any, that such Loan Party or such ERISA Affiliate has taken
and proposes to take with respect thereto, and (B) promptly and in any event within 10
Business Days after the date any records, documents or other information must be furnished
to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such
records, documents and information.

     (ii) Plan Terminations. Promptly and in any event within 15 Business
Days after receipt thereof by any Loan Party or any ERISA Affiliate, copies of each
written notice from the PBGC stating its intention to terminate any Plan or to have
a trustee appointed to administer any Plan.

     (iii) Plan Annual Reports. Promptly upon the request of the
Administrative Agent, copies of each Schedule B (Actuarial Information) to the
annual report (Form 5500 Series) with respect to each Plan.

     (iv) Multiemployer Plan Notices. Promptly and in any event within 15
Business Days after receipt thereof by any Loan Party or any ERISA Affiliate from
the sponsor of a Multiemployer Plan, copies of each written notice
concerning (A) the imposition of Withdrawal Liability by any such Multiemployer
Plan, (B) the reorganization or termination, within the meaning of Title IV of
ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred, or
that may be incurred, by such Loan Party or any ERISA Affiliate in connection with
any event described in clause (A) or (B).

     (g) Environmental Conditions. Promptly after the assertion or occurrence
thereof, written notice of any Environmental Action against or of any noncompliance by any
Loan Party or any of its Restricted Subsidiaries with any Environmental Law or Environmental
Permit that could reasonably be expected to have a Material Adverse Effect.

     (h) Insurance. As soon as available and in any event within 30 days after the
end of each Fiscal Year, a report summarizing the insurance coverage (specifying type,
amount and carrier) in effect for the Borrower and its Restricted Subsidiaries and
containing such additional information as any Agent may reasonably specify.

     (i) Other Information. Such other information respecting the business,
financial condition, operations, performance, or properties of any Loan Party or any of its
Restricted Subsidiaries as any Agent may from time to time reasonably request.

     SECTION 7.04. Financial Covenant. So long as any Advance or any other Obligation
(other than contingent indemnification obligations) of any Loan Party under any Loan Document shall
remain unpaid or any Lender shall have any Commitment hereunder, the Borrower will maintain for
each Measurement Period a Fixed Charge Coverage Ratio of not less than 1.1 to 1.0.

 

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ARTICLE VIII

EVENTS OF DEFAULT

If any of the following events (“Events of Default”) shall occur and be continuing:

     (a) (i) the Borrower shall fail to pay any principal of any Advance when the same shall
become due and payable, or (ii) the Borrower shall fail to pay any interest on any Advance,
or any Loan Party shall fail to make any other payment under any Loan Document, in each case
under this clause (ii) within five Business Days after the same shall become due and
payable; or

     (b) any representation or warranty made by any Loan Party (or any of its officers)
under or in connection with any Loan Document shall prove to have been incorrect in any
material respect when made; or

     (c) the Borrower shall fail to perform or observe any term, covenant or agreement
contained in Section 4.09, 7.01(e), (f), (i) or (j), 7.02, 7.03(a) or (d), or 7.04; or

     (d) any Loan Party shall fail to perform or observe (x) any term, covenant or agreement
contained in Section 7.03(b), (c), (e), (f), (g), or (h) or (y) any other term, covenant or
agreement contained in any Loan Document on its part to be performed or observed if such
failure shall remain unremedied for 5 days (in the case of the foregoing clause (x)) or 30
days (in the case of the foregoing clause (y)) after the earlier of the date on which (A)
any Responsible Officer of a Loan Party becomes aware of such failure or (B) written notice
thereof shall have been given to the Borrower by any Agent or any Lender; or

     (e) any Loan Party or any of its Subsidiaries shall fail to pay any principal of,
premium or interest on or any other amount payable in respect of any Debt for Borrowed Money
of such Loan Party or such Subsidiary (as the case may be) that is outstanding in a
principal amount (or, in the case of any Hedge Agreement, an Agreement Value) of at least
$50,000,000 either individually or in the aggregate for all such Loan Parties and
Subsidiaries when the same becomes due and payable (whether by scheduled maturity, required
prepayment, acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement or instrument relating to such
Debt; or any other event shall occur or condition shall exist under any agreement or
instrument relating to any such Debt and shall continue after the applicable grace period,
if any, specified in such agreement or instrument, if the effect of such event or condition
is to accelerate, or to permit the acceleration of, the maturity of such Debt or otherwise
to cause, or to permit the holder thereof to cause, such Debt to mature, provided that in
the case of the Receivables Facility, so long as the Receivables Facility shall not have
been accelerated, any such event or condition shall have continued for a period of ten
Business Days; or any such Debt shall be declared to be due and payable or required to be
prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption),
purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be
required to be made, in each case prior to the

 

75

stated maturity thereof; provided, however,
that (i) none of the events described in this subsection (e) of Article VIII, to the extent
set forth in the Disclosure Filings or as further disclosed in writing by the Borrower to
the Agents and the Lenders on or prior to the date hereof shall constitute an Event of
Default hereunder and (ii) any defaults under sale-lease back transactions entered into
prior to February 9, 2006 arising from any financial reporting requirements, so long as no
amounts thereunder have been accelerated, shall not constitute an Event of Default
hereunder; or

     (f) any Loan Party or any of its material Subsidiaries shall generally not pay its
debts as such debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors; or any
proceeding shall be instituted by or against any Loan Party or any of its material
Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of
it or its debts under any 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 receiver,
trustee or other similar official for it or for any substantial part of its property and, in
the case of any such proceeding instituted against it (but not instituted by it) that is
being diligently contested by it in good faith, either such proceeding shall remain
undismissed
or unstayed for a period of 45 days or any of the actions sought in such proceeding
(including, without limitation, the entry of an order for relief against, or the appointment
of a receiver, trustee, custodian or other similar official for, it or any substantial part
of its property) shall occur; or any Loan Party or any of its Subsidiaries shall take any
corporate action to authorize any of the actions set forth above in this subsection (f) of
Article VIII; or

     (g) any judgments or orders, either individually or in the aggregate, for the payment
of money in excess of $50,000,000 shall be rendered against any Loan Party or any of its
Subsidiaries and either (i) enforcement proceedings shall have been commenced by any
creditor upon such judgment or order, or (ii) there shall be any period of 20 consecutive
days during which a stay of enforcement of such judgment or order, by reason of a pending
appeal or otherwise, shall not be in effect; or

     (h) any non-monetary judgment or order shall be rendered against any Loan Party or any
of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect, and
there shall be any period of 20 consecutive days during which a stay of enforcement of such
judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

     (i) any material provision of any Loan Document shall for any reason cease to be valid
and binding on or enforceable against any Loan Party party to it (other than as a result of
any Lender’s action or inaction), or any such Loan Party shall so state in writing; or

     (j) any ERISA Event shall have occurred with respect to a Plan and the sum (determined
as of the date of occurrence of such ERISA Event) of the Insufficiency of such Plan and the
Insufficiency of any and all other Plans with respect to which an

 

76

ERISA Event shall have
occurred and then exist (or the liability of the Loan Parties and the ERISA Affiliates
related to such ERISA Event) exceeds $10,000,000; or

     (k) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a
Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan in
an amount that, when aggregated with all other amounts required to be paid to Multiemployer
Plans by the Loan Parties and the ERISA Affiliates as Withdrawal Liability (determined as of
the date of such notification), exceeds $10,000,000 or requires payments exceeding
$2,500,000 per annum; or

     (l) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a
Multiemployer Plan that such Multiemployer Plan is in reorganization or is being terminated,
within the meaning of Title IV of ERISA, and as a result of such reorganization or
termination the aggregate annual contributions of the Loan Parties and the ERISA Affiliates
to all Multiemployer Plans that are then in reorganization or being terminated have been or
will be increased over the amounts contributed to such Multiemployer Plans for the plan
years of such Multiemployer Plans immediately preceding the plan year in which such
reorganization or termination occurs by an amount exceeding $10,000,000; or

     (m) the Obligations of the Loan Parties under the Loan Documents shall fail to
constitute “Senior Debt” under the terms of any Subordinated Debt; or

     (n) a Change of Control shall occur;

then, and in any such event, the Administrative Agent (i) shall at the request, or may with the
consent, of the Required Lenders, by written notice to the Borrower, declare the Commitments of
each Lender and the obligation of each Lender to make Advances or of any Issuing Bank to issue a
Letter of Credit to be terminated, whereupon the same shall forthwith terminate; and (ii) shall at
the request, or may with the consent, of the Required Lenders, by written notice to the Borrower,
declare the Advances, all interest thereon and all other amounts payable by the Borrower under this
Agreement and the other Loan Documents to be forthwith due and payable, whereupon the Advances, all
such interest and all such amounts shall become and be forthwith due and payable, without
presentment, demand, protest or further notice of any kind, all of which are hereby expressly
waived by the Borrower; provided, however, that, in the event of an actual or deemed entry of an
order for relief with respect to the Borrower under the Federal Bankruptcy Code, (x) the
Commitments of each Lender and the obligation of each Lender to make Advances and of any Issuing
Bank to issue Letters of Credit shall automatically be terminated and (y) the Advances, all such
interest and all such amounts shall automatically become and be due and payable, without
presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower.

 

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ARTICLE IX

THE AGENTS

     SECTION 9.01. Authorization and Action. (a) Each Lender hereby appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise such powers and
discretion under this Agreement and the other Loan Documents as are delegated to such Agent by the
terms hereof and thereof, together with such powers and discretion as are reasonably incidental
thereto. As to any matters not expressly provided for by the Loan Documents (including, without
limitation, enforcement or collection of the Obligations of the Loan Parties), no Agent shall be
required to exercise any discretion or take any action, but shall be required to act or to refrain
from acting (and shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding upon all Lenders and
all holders of Notes; provided, however, that no Agent shall be required to take any action that
exposes such Agent to personal liability or that is contrary to this Agreement or applicable law.

          (b) Any Agent may execute any of its duties under this Agreement or any other Loan Document by
or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and
other consultants or experts concerning all matters pertaining to such duties. No Agent shall be
responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in
accordance with the foregoing provisions of this Section 9.01(b) in the absence of such Agent’s
gross negligence or willful misconduct.

     SECTION 9.02. Agents’ Reliance, Etc. Neither any Agent nor any of their respective
directors, officers, agents or employees shall be liable for any action taken or omitted to be
taken by it or them under or in connection with the Loan Documents, except for its or their own
gross negligence or willful misconduct or the directors, officers, agents or employees of the Agent
to the extent acting at the direction of the Agent. Without limitation of the generality of the
foregoing, each Agent: (a) may consult with legal counsel (including counsel for any Loan Party),
independent public accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by it in accordance with the advice of such
counsel, accountants or experts; (b) makes no warranty or representation to any Lender and shall
not be responsible to any Lender for any statements, warranties or representations (whether written
or oral) made in or in connection with the Loan Documents; (c) shall not have any duty to ascertain
or to inquire as to the performance, observance or satisfaction of any of the terms, covenants or
conditions of any Loan Document on the part of any Loan Party or the existence at any time of any
Default under the Loan Documents or to inspect the property (including the books and records) of
any Loan Party and shall not be deemed to have notice or knowledge of a Default or Event of Default
unless it receives a written notice from the Borrower expressly stating that a Default or Event of
Default has occurred; (d) shall not be responsible to any Lender for the due execution, legality,
validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of
any lien or security interest created or purported to be created under or in connection with, any
Loan Document or any other instrument or document furnished pursuant thereto; and (e) shall incur
no liability under or in respect of any Loan Document by acting upon any notice, consent,
certificate or other instrument or writing (which may be by

 

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telegram, telecopy or electronic
communication) believed by it to be genuine and signed or sent by the proper party or parties.

     SECTION 9.03. JPMorgan Chase Bank and Affiliates. With respect to its Commitments,
the Advances made by it and any Notes issued to it, JPMorgan Chase Bank shall have the same rights
and powers under the Loan Documents as any other Lender and may exercise the same as though each
were not an Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated,
include JPMorgan Chase Bank in individual capacities. JPMorgan Chase Bank and its affiliates may
accept deposits from, lend money to, act as trustee under indentures of, accept investment banking
engagements from and generally engage in any kind of business with, any Loan Party, any of its
Subsidiaries and any Person that may do business with or own securities of any Loan Party or any
such Subsidiary, all as if JPMorgan Chase Bank was not an Agent and without any duty to account
therefor to the Lenders. No Agent shall have any duty to disclose any information obtained or
received by it or any of its Affiliates relating to any Loan Party or any of its Subsidiaries to
the extent such information was obtained or received in any capacity other than as such Agent.

     SECTION 9.04. Lender Credit Decision. Each Lender acknowledges that it has,
independently and without reliance upon any Agent or any other Lender and based on the financial
statements referred to in Section 6.01 and such other documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender
also acknowledges that it will,
independently and without reliance upon any Agent or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit
decisions in taking or not taking action under this Agreement.

     SECTION 9.05. Indemnification. (a) Each Lender severally agrees to indemnify each
Agent (to the extent not promptly reimbursed by the Borrower) from and against such Lender’s
ratable share (determined as provided below) of any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever that may be imposed on, incurred by, or asserted against such Agent, arising
solely in such Agent’s capacity as an Agent hereunder and under the other Loan Documents, or any
action taken or omitted by such Agent solely in its capacity as an Agent under the Loan Documents
(collectively, the “Indemnified Costs”); provided, however, that no Lender shall be liable for any
portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements resulting from such Agent’s gross negligence or willful misconduct
as found in a final, non-appealable judgment by a court of competent jurisdiction. Without
limitation of the foregoing, each Lender agrees to reimburse each Agent promptly upon demand for
its ratable share of any costs and expenses (including, without limitation, fees and expenses of
counsel) payable by the Borrower under Section 11.04, to the extent that such Agent, acting solely
in its capacity as an Agent hereunder, is not promptly reimbursed for such costs and expenses by
the Borrower. In the case of any investigation, litigation or proceeding giving rise to any
Indemnified Costs, this Section 9.05 applies whether any such investigation, litigation or
proceeding is brought by any Lender or any other Person.

          (b) For purposes of this Section 9.05, each Lender’s ratable share of any amount shall be
determined, as at the incurrence of the relevant Indemnified Costs, according to

 

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its share of the
aggregate principal amount of the Advances outstanding at such time, the aggregate Revolving
Credit-Linked Deposits at such time and the aggregate participation in the Letter of Credit
Disbursements at such time. The failure of any Lender to reimburse any Agent promptly upon demand
for its ratable share of any amount required to be paid by the Lenders to such Agent as provided
herein shall not relieve any other Lender of its obligation hereunder to reimburse such Agent for
its ratable share of such amount, but no Lender shall be responsible for the failure of any other
Lender to reimburse such Agent for such other Lender’s ratable share of such amount. Without
prejudice to the survival of any other agreement of any Lender hereunder, the agreement and
obligations of each Lender contained in this Section 9.05 shall survive the payment in full of
principal, interest and all other amounts payable hereunder and under the other Loan Documents.

     SECTION 9.06. Successor Agents. Any Agent may resign at any time by giving written
notice thereof to the Lenders and the Borrower and may be removed at any time with or without cause
by the Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the
right to appoint a successor Agent reasonably acceptable to the Borrower. If no successor Agent
shall have been so appointed by the Required Lenders and the Borrower, and shall have accepted such
appointment, within 30 days after the retiring Agent’s giving of notice of resignation or the
Required Lenders’
removal of the retiring Agent, then the retiring Agent may, on behalf of the Lenders, appoint
a successor Agent, which shall be a commercial bank organized under the laws of the United States
or of any State thereof and having a combined capital and surplus of at least $250,000,000. Upon
the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent
shall succeed to and become vested with all the rights, powers, discretion, privileges and duties
of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations
under the Loan Documents. If within 45 days after written notice is given of the retiring Agent’s
resignation or removal under this Section 9.06 no successor Agent shall have been appointed and
shall have accepted such appointment, then on such 45th day (a) the retiring Agent’s resignation or
removal shall become effective, (b) the retiring Agent shall thereupon be discharged from its
duties and obligations under the Loan Documents and (c) the Required Lenders shall thereafter
perform all duties of the retiring Agent under the Loan Documents until such time, if any, as the
Required Lenders and the Borrower appoint a successor Agent as provided above. After any retiring
Agent’s resignation or removal hereunder as Agent shall have become effective, the provisions of
this Article IX shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent under this Agreement. Upon the effectiveness of the resignation or removal of
the Administrative Agent, the retiring Administrative Agent may, at its option (i) transfer the
management of all then existing Revolving Credit-Linked Deposit Accounts to the successor
Administrative Agent or (ii) close all such Revolving Credit-Linked Deposit Accounts upon the
establishment of new Revolving Credit-Linked Deposit Accounts with the successor Administrative
Agent (and the successor Administrative Agent shall establish such new accounts) and transfer all
amounts on deposit in such Revolving Credit-Linked Deposit Accounts to such new accounts.

 

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ARTICLE X

GUARANTY

     SECTION 10.01. Guaranty; Limitation of Liability. (a) Each Guarantor, jointly and
severally, hereby absolutely, unconditionally and irrevocably guarantees the punctual payment when
due, whether at scheduled maturity or on any date of a required prepayment or by acceleration,
demand or otherwise, of all Obligations of each other Loan Party now or hereafter existing under or
in respect of the Loan Documents (including, without limitation, any extensions, modifications,
substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct
or indirect, absolute or contingent, and whether for principal, interest, premiums, fees,
indemnities, contract causes of action, costs, expenses or otherwise (such Obligations being the
“Guaranteed Obligations”), and agrees to pay any and all reasonable expenses (including, without
limitation, reasonable fees and out-of-pocket expenses of counsel) incurred by the Administrative
Agent or any other Lender in enforcing any rights under this Guaranty or any other Loan Document.
Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by any other Loan
Party to any Lender under or in respect of the Loan Documents but for the fact that they are
unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar
proceeding involving such other Loan Party.

          (b) Each Subsidiary Guarantor, and by its acceptance of this Guaranty, the Administrative
Agent and each other Lender, hereby confirms that it is the intention of all such Persons that this
Guaranty and the Obligations of each Subsidiary Guarantor hereunder not constitute a fraudulent
transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the
Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent
applicable to this Guaranty and the Obligations of each Subsidiary Guarantor hereunder. To
effectuate the foregoing intention, the Administrative Agent, the other Lenders and the Guarantors
hereby irrevocably agree that the Obligations of each Subsidiary Guarantor under this Guaranty at
any time shall be limited to the maximum amount as will result in the Obligations of such
Subsidiary Guarantor under this Guaranty not constituting a fraudulent transfer or conveyance.

          (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment
shall be required to be made to any Lender under this Guaranty or any other guaranty, such
Guarantor will contribute, to the maximum extent permitted by law, such amounts to each other
Guarantor and each other guarantor so as to maximize the aggregate amount paid to the Lenders under
or in respect of the Loan Documents.

     SECTION 10.02. Guaranty Absolute. Each Guarantor guarantees that the Guaranteed
Obligations will be paid strictly in accordance with the terms of the Loan Documents, regardless of
any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such
terms or the rights of any Lender with respect thereto. The Obligations of each Guarantor under or
in respect of this Guaranty are independent of the Guaranteed Obligations or any other Obligations
of any other Loan Party under or in respect of the Loan Documents, and a separate action or actions
may be brought and prosecuted against each Guarantor to enforce this

 

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Guaranty, irrespective of
whether any action is brought against the Borrower or any other Loan Party or whether the Borrower
or any other Loan Party is joined in any such action or actions. The liability of each Guarantor
under this Guaranty shall be irrevocable, absolute and unconditional irrespective of, and to the
extent permitted by applicable law, each Guarantor hereby irrevocably waives any defenses it may
now have or hereafter acquire in any way relating to, any or all of the following:

     (a) any lack of validity or enforceability of any Loan Document or any agreement or
instrument relating thereto;

     (b) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Guaranteed Obligations or any other Obligations of any other Loan Party under
or in respect of the Loan Documents, or any other amendment or waiver of or any consent to
departure from any Loan Document, including, without limitation, any increase in the
Guaranteed Obligations resulting from the extension of additional credit to any Loan Party
or any of its Subsidiaries or otherwise;

     (c) any taking, release or amendment or waiver of, or consent to departure from, any
other guaranty, for all or any of the Guaranteed Obligations;

     (d) any change, restructuring or termination of the corporate structure or existence of
any Loan Party or any of its Subsidiaries;

     (e) any failure of any Lender or affiliate thereof to disclose to any Loan Party any
information relating to the business, condition (financial or otherwise), operations,
performance, properties or prospects of any other Loan Party now or hereafter known to such
Lender (each Guarantor waiving any duty on the part of the Lenders to disclose such
information);

     (f) the failure of any other Person to execute or deliver this Agreement, any
Subsidiary Guaranty Supplement or any other guaranty or agreement or the release or
reduction of liability of any Guarantor or other guarantor or surety with respect to the
Guaranteed Obligations; or

     (g) any other circumstance (including, without limitation, any statute of limitations)
or any existence of or reliance on any representation by any Lender that might otherwise
constitute a defense available to, or a discharge of, any Loan Party or any other guarantor
or surety, in each case other than payment or performance of the Guaranteed Obligations
(other than contingent indemnification obligations).

This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time
any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by any
Lender or any other Person upon the insolvency, bankruptcy or reorganization of the Borrower or any
other Loan Party or otherwise, all as though such payment had not been made.

     SECTION 10.03. Waivers and Acknowledgments. (a) To the extent permitted by
applicable law, each Guarantor hereby unconditionally and irrevocably waives promptness, diligence,
notice of

 

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acceptance, presentment, demand for performance, notice of nonperformance, default,
acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed
Obligations and this Guaranty and any requirement that any Lender protect, secure, perfect or
insure any Lien or any property subject thereto or exhaust any right or take any action against any
Loan Party or any other Person.

          (b) To the extent permitted by applicable law, each Guarantor hereby unconditionally and
irrevocably waives any right to revoke this Guaranty and acknowledges that this Guaranty is
continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the
future.

          (c) To the extent permitted by applicable law, each Guarantor hereby unconditionally and
irrevocably waives (i) any defense arising by reason of any claim or defense based upon an election
of remedies by any Lender that in any manner impairs, reduces, releases or otherwise adversely
affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such
Guarantor or other rights of such Guarantor to proceed against any of the other Loan Parties, any
other guarantor or any other Person, and (ii) any defense based on any right of set-off or
counterclaim against or in respect of the Obligations of such Guarantor hereunder.

          (d) To the extent permitted by applicable law, each Guarantor hereby unconditionally and
irrevocably waives any duty on the part of any Lender to disclose to such Guarantor any matter,
fact or thing relating to the business, condition (financial or otherwise), operations,
performance, properties or prospects of any other Loan Party or any of its Subsidiaries now or
hereafter known by such Lender.

          (e) Each Guarantor acknowledges that it will receive substantial direct and indirect benefits
from the financing arrangements contemplated by the Loan Documents and that the waivers set forth
in Section 10.02 and this Section 10.03 are knowingly made in contemplation of such benefits.

     SECTION 10.04. Subrogation. Each Guarantor hereby unconditionally and irrevocably
agrees not to exercise any rights that it may now have or hereafter acquire against the Borrower,
any other Loan Party or any other insider guarantor that arise from the existence, payment,
performance or enforcement of such Guarantor’s obligations under or in respect of this Guaranty or
any other Loan Document, including, without limitation, any right of subrogation, reimbursement,
exoneration, contribution or indemnification and any right to participate in any claim or remedy of
any Lender against the Borrower, any other Loan Party or any other insider guarantor, whether or
not such claim, remedy or right arises in equity or under contract, statute or common law,
including, without limitation, the right to take or receive from the Borrower, any other Loan Party
or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or
in any other manner, payment or security on account of such claim, remedy or right, unless and
until all of the Guaranteed Obligations (other than contingent indemnification obligations) and all
other amounts payable under this Guaranty shall have been paid in full, and the Commitments shall
have expired or been terminated. If any amount shall be paid to any Guarantor in violation of the
immediately preceding sentence at any time prior to the latest of (a) the payment in full of the
Guaranteed Obligations (other than contingent indemnification obligations) and all other amounts
payable under this Guaranty and (b) the termination of the

 

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Commitments and the Total Revolving
Credit-Linked Deposit Amount, such amount shall be received and held for the benefit of the
Lenders, shall be segregated from other property and funds of such Guarantor and shall forthwith be
paid or delivered to the Administrative Agent in the same form as so received (with any necessary
endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other
amounts payable under this Guaranty, to the extent matured, in accordance with the terms of the
Loan Documents, or to be held as collateral for any Guaranteed Obligations or other amounts payable
under this Guaranty thereafter arising. If (i) any Guarantor shall make payment to any Lender of
all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations (other than
contingent indemnification obligations) and all other amounts payable under this Guaranty shall
have been paid in full in cash, and (iii) the termination of the Commitments and the Total
Revolving Credit-Linked Deposit Amount shall have occurred, the Lenders will, at such Guarantor’s
request and expense, execute and deliver to such Guarantor appropriate documents, without recourse
and without representation or warranty, necessary to evidence the transfer by subrogation to such
Guarantor of an interest in the Guaranteed Obligations resulting from such payment made by such
Guarantor pursuant to this Guaranty.

     SECTION 10.05. Subsidiary Guaranty Supplements. Upon the execution and delivery by
any Person of a guaranty supplement on substantially the same terms as this Article X (each, a
“Subsidiary Guaranty Supplement”), (a) such Person shall be referred to as an “Additional
Subsidiary Guarantor” and shall become and be a Subsidiary Guarantor hereunder, and each reference
in this Guaranty to a “Subsidiary Guarantor” shall also mean and be a reference to such Additional
Subsidiary Guarantor, and each reference in any other Loan Document to a “Subsidiary Guarantor”
shall also mean and be a reference to such Additional Subsidiary Guarantor, and (b) each reference
herein to “this Guaranty,” “hereunder,” “hereof” or words of like import referring to this
Guaranty, and each reference in any other Loan Document to the “Guaranty,” “thereunder,” “thereof”
or words of like import referring to this Guaranty, shall mean and be a reference to this Guaranty
as supplemented by such Subsidiary Guaranty Supplement.

     SECTION 10.06. Subordination. Each Guarantor hereby subordinates any and all debts,
liabilities and other Obligations owed to such Guarantor by each other Loan Party (the
“Subordinated Obligations”) to the Guaranteed Obligations to the extent and in the manner
hereinafter set forth in this Section 10.06:

     (a) Prohibited Payments, Etc. Except during the continuance of an Event of
Default, each Guarantor may receive payments from any other Loan Party on account of the
Subordinated Obligations. After the occurrence and during the continuance of any Event of
Default, however, until the Required Lenders provide written notice, any Guarantor may
demand, accept or take any action to collect any payment on account of the Subordinated
Obligations. Once all such Events of Default are cured or waived, each Guarantor
automatically has the right to receive such payment.

     (b) Prior Payment of Guaranteed Obligations. In any proceeding under any
Bankruptcy Law relating to any other Loan Party, each Guarantor agrees that the Lenders
shall be entitled to receive payment in full in cash of all Guaranteed Obligations

 

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(including all Post-Petition Interest) (other than contingent indemnification obligations)
before such Guarantor receives payment of any Subordinated Obligations.

     (c) Turn-Over. After the occurrence and during the continuance of any Event of
Default, each Guarantor shall, if the Administrative Agent so requests, collect, enforce and
receive payments on account of the Subordinated Obligations for the benefit of the Lenders
and deliver such payments to the Administrative Agent on account of the Guaranteed
Obligations (including all Post-Petition Interest), together with any necessary endorsements
or other instruments of transfer, but without reducing or affecting in any manner the
liability of such Guarantor under the other provisions of this Guaranty.

     (d) Administrative Agent Authorization. After the occurrence and during the
continuance of any Event of Default, the Administrative Agent is authorized and empowered
(but without any obligation to so do), in its reasonable discretion, (i) in the name of each
Guarantor, to collect and enforce, and to submit claims in respect of, the
Subordinated Obligations and to apply any amounts received thereon to the Guaranteed
Obligations (including any and all Post-Petition Interest), and (ii) to require each
Guarantor (A) to collect and enforce, and to submit claims in respect of, the Subordinated
Obligations and (B) to pay any amounts received on such obligations to the Administrative
Agent for application to the Guaranteed Obligations (including any and all Post-Petition
Interest).

     SECTION 10.07. Continuing Guaranty; Assignments. This Guaranty is a continuing
guaranty and shall (a) remain in full force and effect until the latest of (i) the payment in full
in cash of the Guaranteed Obligations (other than contingent obligations) and all other amounts
payable under this Guaranty (other than contingent obligations), and (ii) the termination of the
Commitments, (b) be binding upon each Guarantor, its successors and assigns, and (c) inure to the
benefit of and be enforceable by the Lenders and their successors, transferees and assigns. Without
limiting the generality of clause (c) of the immediately preceding sentence, any Lender may assign
or otherwise transfer all or any portion of its rights and obligations under this Agreement
(including, without limitation, all or any portion of its Commitments, the Advances owing to it,
any Note or Notes held by it and its Revolving Credit-Linked Deposit Amount) to any other Person,
and such other Person shall thereupon become vested with all the benefits in respect thereof
granted to such Lender herein or otherwise, in each case as and to the extent provided in Section
11.07. No Guarantor shall have the right to assign its rights hereunder or any interest herein
without the prior written consent of the Lenders.

ARTICLE XI

MISCELLANEOUS

     SECTION 11.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Notes, nor consent to any departure by any Loan Party therefrom, shall in any
event be effective unless the same shall be in writing and signed by the Required Lenders, and then
such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that (a) no amendment, waiver or consent shall, unless
in writing and signed by all of the Lenders, do any of the following at any time:

 

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     (i) change the percentage in the definition of the “Required Lenders,”

     (ii) release one or more Guarantors (or otherwise limit such Guarantors’ liability with
respect to the Obligations owing to the Agents and the Lenders under the Guaranties) if such
release or limitation is in respect of all or substantially all of the value of the
Guaranties to the Lenders (unless otherwise permitted hereunder),

     (iii) amend the definition of “Maturity Date” or otherwise extend the Maturity Date, or

     (iv) amend this Section 11.01,

and (b) no amendment, waiver or consent shall, unless in writing and signed by the Required Lenders
and each Lender specified below for such amendment, waiver or consent:

     (i) increase the Commitments of a Lender without the consent of such Lender;

     (ii) reduce the principal of, or stated rate of interest or return on, the Advances or
the Revolving Credit-Linked Deposit Account owed to a Lender (except for Default Interest
and as provided in the definition of “Applicable Spread”) or any fees, call premiums or
other amounts stated to be payable hereunder or under the other Loan Documents to such
Lender without the consent of such Lender; or

     (iii) postpone any date scheduled for any payment of principal of, or interest on, the
Advances or payments in respect of the Revolving Credit-Linked Deposits or any date fixed
for any payment of fees, call premiums or other amounts hereunder in each case payable to a
Lender without the consent of such Lender;

provided further that no amendment, waiver or consent shall, unless in writing and signed by an
Agent in addition to the Lenders required above to take such action, affect the rights or duties of
such Agent under this Agreement or the other Loan Documents.

     SECTION 11.02. Notices, Etc. (a) All notices and other communications provided for
hereunder shall be either (x) in writing (including telegraphic or telecopy communication) and
mailed, telegraphed, telecopied or delivered, or (y) as and to the extent set forth in Section
11.02(b) and in the proviso to this Section 11.02(a), in an electronic medium and delivered as set
forth in Section 11.02(b), if to any Loan Party, to the Borrower at its address at 4201 Winfield
Road, Warrenville, Illinois 60555, Attention: Treasurer, Fax: 630 753-2305, E-mail Address:
terry.endsley@nav-international.com; if to any Initial Lender, at its Domestic Lending Office
specified opposite its name on Schedule I hereto; if to any other Lender, at its Domestic Lending
Office specified in the Assignment and Acceptance pursuant to which it became a Lender; and if to
the Administrative Agent, at its address at JPMorgan Chase Bank, N.A., Agent Bank Services Group,
1111 Fanin Street, 10th Floor, Houston, Texas 77007, Attention: Alice Telles (Fax:
713-750-2938) with a copy to JPMorgan Chase Bank, N.A., 270 Park Avenue, 15th Floor, New
York, New York 10017, Attention: Vincent Bolognini (Fax: 212-270-4016); or, as to the Borrower or
the Administrative Agent, at such other address as shall be designated

 

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by such party in a written
notice to the other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Borrower and the Administrative Agent;
provided, however, that materials and information described in Section 11.02(b) shall be delivered
to the Administrative Agent in accordance with the provisions thereof or as otherwise specified to
the Borrower by the Administrative Agent. All such notices and other communications shall (i) when
telegraphed, telecopied, or (if permitted) e-mailed, be effective when delivered to the telegraph
company, transmitted by telecopier or (if permitted) sent by electronic communication,
respectively, and (ii) when transmitted by mail, be effective five Business Days after being
mailed, except that notices and communications to any Agent pursuant to Article II, III, IV or IX
shall not be effective until received by such Agent. Delivery by telecopier of an executed
counterpart of a
signature page to any amendment or waiver of any provision of this Agreement or the Notes
shall be effective as delivery of an original executed counterpart thereof.

          (b) The Borrower hereby agrees that it will provide to the Administrative Agent, for the
benefit of the other Agents and the Lenders, all information, documents and other materials that it
is obligated to furnish to the Administrative Agent pursuant to the Loan Documents, including,
without limitation, all notices, requests, financial statements, financial and other reports,
certificates and other information materials, but excluding any such communication that (i) relates
to a request for a new, or a Conversion of an existing, Borrowing or other extension of credit
(including any election of an interest rate or interest period relating thereto), (ii) relates to
the payment of any principal or other amount due under this Agreement prior to the scheduled date
therefor, (iii) provides notice of any Default or Event of Default under this Agreement or (iv) is
required to be delivered to satisfy any condition precedent to the effectiveness of this Agreement
and/or any Borrowing or other extension of credit thereunder (all such non-excluded communications
being referred to herein collectively as “Communications”), by transmitting the Communications in
an electronic/soft medium in a format reasonably acceptable to the Administrative Agent to an
electronic mail address specified by the Administrative Agent to the Borrower. In addition, the
Borrower agrees to continue to provide the Communications to the Administrative Agent in the manner
specified in the Loan Documents but only to the extent reasonably requested by the Administrative
Agent. The Borrower further agrees that the Administrative Agent may make the Communications
available to the Lenders and potential Lenders and participants by posting the Communications on
IntraLinks, Syndtrak, the internet, e-mail or a substantially similar electronic transmission
system (the “Platform”).

          (c) THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW)
DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM
AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY
KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE
COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE AGENT OR ANY OF ITS AFFILIATES OR ANY OF
THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR REPRESENTATIVES (COLLECTIVELY,
“AGENT PARTIES”) HAVE ANY LIABILITY TO THE BORROWER, ANY LENDER OR ANY OTHER PERSON OR ENTITY FOR
DAMAGES OF ANY KIND, INCLUDING,

 

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WITHOUT LIMITATION, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF
THE BORROWER’S OR SUCH AGENT PARTY’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO
THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND BY A COURT OF COMPETENT JURISDICTION TO HAVE
RESULTED FROM SUCH AGENT PARTY’S BAD FAITH, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, OR A MATERIAL
BREACH OF THE TERMS HEREOF.

          (d) The Administrative Agent agrees that the receipt of the Communications by the
Administrative Agent at its e-mail address set forth above shall constitute effective delivery of
the Communications to the Administrative Agent for purposes of the Loan Documents. Each Lender
agrees that notice to it (as provided in the next sentence) specifying that the Communications have
been posted to the Platform shall constitute effective delivery of the Communications to such
Lender for purposes of the Loan Documents. Each Lender agrees to notify the Administrative Agent
in writing (including by electronic communication) from time to time of such Lender’s e-mail
address to which the foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address. Nothing herein shall prejudice the right of
the Administrative Agent or any Lender to give any notice or other communication pursuant to any
Loan Document in any other manner specified in such Loan Document.

     SECTION 11.03. No Waiver; Remedies. No failure on the part of any Lender or any
Agent to exercise, and no delay in exercising, any right hereunder or under any Note or any other
Loan Document 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. The
remedies herein provided are cumulative and not exclusive of any remedies provided by law.

     SECTION 11.04. Costs and Expenses. (a) The Borrower agrees to pay within (x) one
Business Day (in the case of demands prior to the Initial Borrowing Date) and (y) ten Business Days
(in the case of demands thereafter) after written demand (which includes documentation reasonably
supporting such request) (i) all reasonable out-of-pocket costs and expenses of the Agents in
connection with the preparation, execution, delivery, administration, modification and amendment
of, or any consent or waiver under, the Loan Documents (including, without limitation, (A) all due
diligence, syndication, transportation, computer, duplication, appraisal, audit, insurance,
consultant, search, filing and recording fees and expenses and (B) the reasonable fees and
out-of-pocket expenses of one counsel for the Agents with respect thereto, with respect to advising
the Agents as to their rights and responsibilities, or the protection or preservation of rights or
interests, under the Loan Documents, with respect to negotiations with any Loan Party or with other
creditors of any Loan Party or any of its Restricted Subsidiaries arising out of any Default or any
events or circumstances that may give rise to a Default and with respect to presenting claims in or
otherwise participating in or monitoring any bankruptcy, insolvency or other similar proceeding
involving creditors’ rights generally and any proceeding ancillary thereto) and (ii) all
out-of-pocket costs and expenses of the Agents and each Lender in connection with the enforcement
of the Loan Documents, whether in any action, suit or litigation, or any bankruptcy, insolvency or
other similar proceeding affecting creditors’ rights generally (including, without limitation, the
reasonable fees and out-of-pocket expenses of

 

88

counsel for the Administrative Agent and each Lender
with respect thereto; provided that the Borrower shall only be required to reimburse the fees and
expenses of one legal counsel to the extent no conflict exists).

          (b) The Borrower agrees to indemnify, defend and save and hold harmless each Agent, each
Lender and each of their respective Affiliates, successors and permitted
assigns, and their respective officers, directors, employees, agents, members, controlling
persons and advisors (each, an “Indemnified Party”) from and against, and shall pay within ten
Business Days of written demand, any and all claims, damages, actual losses, liabilities and
expenses (including, without limitation, reasonable fees, disbursements and other charges of
counsel), joint or several, that may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or by reason of (including, without
limitation, in connection with any investigation, litigation or proceeding or preparation of a
defense in connection therewith) (i) the Facilities, the actual or proposed use of the proceeds of
the Advances, the Loan Documents or any of the transactions contemplated thereby, including,
without limitation, any transaction by the Borrower or any of its Restricted Subsidiaries or
Affiliates, or (ii) the actual or alleged presence of Hazardous Materials on any property of any
Loan Party or any of its Subsidiaries or any Environmental Action relating in any way to any Loan
Party or any of its Subsidiaries, except (i) to the extent such claim, damage, loss, liability or
expense is determined by a court of competent jurisdiction to have resulted from the bad faith,
gross negligence or willful misconduct of such Indemnified Party or its officers, directors,
employees or agents to the extent acting at the direction of such Indemnified Party, (ii) from a
material breach of a Loan Document by such Indemnified Party or (iii) that the dispute is solely
between Indemnified Persons or their respective officers, affiliates, directors, employees, agents,
advisors, controlling persons, members and successors and permitted assigns, except in respect of
any agent under the Facilities, in its capacity as an Agent. In the case of an investigation,
litigation or other proceeding to which the indemnity in this Section 11.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or proceeding is brought
by any Loan Party, its directors, shareholders or creditors, any Indemnified Party or any other
Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the
transactions set forth in the Loan Documents are consummated, but excluding from this indemnity any
disputes which are solely between or among Indemnified Parties, except in respect of any Agent in
its capacity as an Agent hereunder). The Borrower also agrees not to assert any claim against any
Agent, any Lender or any of their Affiliates, or any of their respective officers, directors,
employees, agents and advisors, on any theory of liability, for special, indirect, consequential or
punitive damages arising out of or otherwise relating to the Facilities, the actual or proposed use
of the proceeds of the Advances, the Loan Documents or any of the transactions contemplated by the
Loan Documents.

          (c) If any payment of principal of, or Conversion of, any LIBOR Advance is made by the
Borrower to or for the account of a Lender other than on the last day of the Interest Period for
such Advance, as a result of a payment or Conversion pursuant to Section 4.01, 4.04(b)(i) or
4.05(c), acceleration of the maturity of the Advances pursuant to Article VIII or for any other
reason, or by an Eligible Assignee to a Lender other than on the last day of the Interest Period
for such Advance upon an assignment of rights and obligations under this Agreement pursuant to
Section 11.07 as a result of a demand by the Borrower pursuant to Section 4.05(d), or if the
Borrower fails to make any payment or prepayment of an Advance for which a notice of

 

89

prepayment has
been given or that is otherwise required to be made, whether pursuant to Section 2.03, 3.03 or 4.01
or Article VIII or otherwise, the Borrower shall, upon demand by such Lender (with a copy of such
demand to the Administrative Agent), pay to the Administrative Agent for the account of such Lender
any amounts required to compensate such Lender for any additional losses, costs or expenses that it
may reasonably incur as a result of such payment or Conversion or such failure to pay or prepay, as
the case may be, including, without limitation, any loss
(including loss of anticipated profits), cost or expense incurred by reason of the liquidation
or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance.

          (d) If any Loan Party fails to pay when due any costs, expenses or other amounts payable by it
under any Loan Document, including, without limitation, fees and expenses of counsel and
indemnities, such amount may be paid on behalf of such Loan Party by the Administrative Agent or
any Lender, in its sole discretion.

          (e) Without prejudice to the survival of any other agreement of any Loan Party hereunder or
under any other Loan Document, the agreements and obligations of the Borrower contained in Sections
4.05 and 4.07 and this Section 11.04 shall survive the payment in full of principal, interest and
all other amounts payable hereunder and under any of the other Loan Documents.

     SECTION 11.05. Right of Set-off. Upon (a) the occurrence and during the continuance
of any Event of Default and (b) the making of the request or the granting of the consent specified
by Article VIII to authorize the Administrative Agent to declare the Advances due and payable
pursuant to the provisions of Article VIII, each Agent and each Lender and each of their respective
Related Parties (as defined below) is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and otherwise apply any and all deposits (general or
special, time or demand, provisional or final, but excluding payroll accounts and trust accounts
held by the Borrower for the benefit of a Person other than the Borrower or any of its
Subsidiaries) at any time held and other indebtedness at any time owing by such Agent, such Lender
or such Related Party to or for the credit or the account of the Borrower against any and all of
the Obligations of the Borrower now or hereafter existing under the Loan Documents, irrespective of
whether such Agent or such Lender shall have made any demand under this Agreement and although such
Obligations may be unmatured. Each Agent and each Lender agrees promptly to notify the Borrower
after any such set-off and application; provided, however, that the failure to give such notice
shall not affect the validity of such set-off and application. The rights of each Agent and each
Lender and their respective Related Parties under this Section 11.05 are in addition to other
rights and remedies (including, without limitation, other rights of set-off) that such Agent, such
Lender and their respective Related Parties may have. “Related Party” means, with respect to any
Agent or Lender, (i) any Person of which such Agent or Lender is a direct or indirect Subsidiary
and (ii) each other direct or indirect Subsidiary of such Person.

     SECTION 11.06. Binding Effect. This Agreement shall become effective when it shall
have been executed by the Borrower and each Agent and the Administrative Agent shall have been
notified by each Initial Lender that such Initial Lender has executed it and thereafter shall be
binding upon and inure to the benefit of the Borrower, each Agent and each Lender and their

 

90

respective successors and permitted assigns, except that the Borrower shall not have the right to
assign its rights hereunder or any interest herein without the prior written consent of each
Lender.

     SECTION 11.07. Assignments and Participations. (a) Each Lender may, and so long as
no Event of Default shall have occurred and be continuing, shall, following a demand made by the
Borrower pursuant to Section 4.05(d) upon at least five Business Days’ written notice from the
Borrower to such Lender and the Administrative Agent, assign to one or more Eligible Assignees all
or a portion of its rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitments, the Advances owing to it and the Note or Notes held by it and its
Revolving Credit-Linked Deposit Amounts); provided, however, that (i) each such assignment shall be
of a uniform, and not a varying, percentage of all rights and obligations under and in respect of
the Facilities; (ii) the aggregate amount of the Term Advances or Revolving Credit-Linked Deposit
Amounts being assigned to such Eligible Assignee pursuant to such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in no event be less
than $1,000,000 and shall be an integral multiple thereof (or such lesser amount as may be approved
by the Administrative Agent), provided, that for purposes of this Section 11.07(a)(ii), the Term
Advances and Revolving Credit-Linked Deposit Amounts held by Affiliates and related Approved Funds
may be aggregated; (iii) each such assignment shall be to an Eligible Assignee; (iv) each such
assignment made as a result of a demand by the Borrower pursuant to Section 4.05(d) shall be
arranged by the Borrower after consultation with the Administrative Agent and shall be either an
assignment of all of the rights and obligations of the assigning Lender under this Agreement or an
assignment of a portion of such rights and obligations made concurrently with another such
assignment or other such assignments that together cover all of the rights and obligations of the
assigning Lender under this Agreement; (v) no Lender shall be obligated to make any such assignment
as a result of a demand by the Borrower pursuant to Section 4.05(d) unless and until such Lender
shall have received one or more payments from either the Borrower or one or more Eligible Assignees
in an aggregate amount at least equal to the aggregate outstanding principal amount of the Advances
owing to such Lender and its Revolving Credit-Linked Deposits, together with accrued interest or
return thereon to the date of payment of such principal amount and all other amounts payable to
such Lender under this Agreement; (vi) no such assignments shall be permitted without the consent
of the Administrative Agent until the Administrative Agent shall have notified the Lenders that
syndication of the Commitments hereunder has been completed; and (vii) the parties to each such
assignment shall execute and deliver to the Administrative Agent, via an electronic settlement
system acceptable to the Administrative Agent (or, if previously agreed with the Administrative
Agent, manually), shall pay to the Administrative Agent a processing and recordation fee of $3,500
(which fee may be waived or reduced in the sole discretion of the Administrative Agent), and shall
deliver to the Administrative Agent any Notes subject to such assignment. Without the consent of
the Borrower and the Administrative Agent, the Revolving Credit-Linked Deposits of any Lender shall
not be released in connection with any assignment by such Lender, but shall instead be purchased by
the relevant assignee and continue to be held for application (to the extent not already applied)
in accordance with Section 3.01 to satisfy such assignee’s obligations in respect of Revolving
Advances and participation in Letters of Credit. Each Lender agrees that immediately prior to such
assignment (x) the Administrative Agent shall establish a new Revolving Credit-Linked Deposit
Account in the name of such assignee, (y) unless otherwise consented by the Administrative Agent, a
corresponding portion of the amount

 

91

on deposit in the Revolving-Credit Linked Deposit Account of
the assignor Lender shall be purchased by the assignee and shall be transferred from the assignor’s
Revolving Credit-Linked Deposit Account
to the assignee’s Revolving Credit-Linked Deposit Account and (z) if after giving effect to
such an assignment the aggregate amount of the Revolving Credit-Linked Deposit Account of the
assignor Lender shall be $0, the Administrative Agent shall close the Revolving Credit-Linked
Deposit Account of such assignor Lender.

          (b) Upon such execution, delivery, acceptance and recording, from and after the effective date
specified in such Assignment and Acceptance, (i) the assignee thereunder shall be a party hereto
and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (ii) the
Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other than its
rights under Sections 4.05, 4.07 and 11.04 to the extent any claim thereunder relates to an event
arising prior to such assignment) and be released from its obligations under this Agreement (and,
in the case of an Assignment and Acceptance covering all of the remaining portion of an assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party
hereto).

          (c) By executing and delivering an Assignment and Acceptance, each Lender assignor thereunder
and each assignee thereunder confirm to and agree with each other and the other parties thereto and
hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning
Lender makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with any Loan Document or the
execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the
perfection or priority of any lien or security interest created or purported to be created under or
in connection with, any Loan Document or any other instrument or document furnished pursuant
thereto; (ii) such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to the financial condition of any Loan Party or the performance or
observance by any Loan Party of any of its obligations under any Loan Document or any other
instrument or document furnished pursuant thereto; (iii) such assignee confirms that it has
received a copy of this Agreement, together with copies of the financial statements referred to in
Section 6.01 and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will,
independently and without reliance upon any Agent, such assigning Lender or any other Lender and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under this Agreement; (v) such assignee
confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes each Agent to
take such action as agent on its behalf and to exercise such powers and discretion under the Loan
Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers
and discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all of the obligations that by the terms of this Agreement
are required to be performed by it as a Lender, as the case may be.

          (d) The Administrative Agent, acting for this purpose (but only for this purpose) as the agent
of the Borrower, shall maintain at its address referred to in Section 11.02 a

 

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copy of each
Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the
names and addresses of the Lenders and the Commitments of, and principal
amount of the Advances owing to, and the Revolving Credit-Linked Deposit of, each Lender from
time to time (the “Register”). The entries in the Register shall be presumptive evidence for all
purposes, absent manifest error, and the Borrower, the Agents and the Lenders shall treat each
Person whose name is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrower at any reasonable time
and from time to time upon reasonable prior notice.

          (e) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee, together with any Note or Notes (if any) subject to such assignment, the Administrative
Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form
of Exhibit B hereto, (i) accept such Assignment and Acceptance, (ii) record the information
contained therein in the Register and (iii) give prompt notice thereof to the Borrower. In the case
of any assignment by a Lender, within five Business Days after its receipt of such notice, the
Borrower, at its own expense, shall execute and deliver to the Administrative Agent in exchange for
the surrendered Note or Notes (if any) a new Note to the order of such Eligible Assignee in an
amount equal to the relevant Commitment assumed by it pursuant to such Assignment and Acceptance
and, if any assigning Lender that had a Note or Notes prior to such assignment has retained a
Commitment hereunder, a new Note to the order of such assigning Lender in an amount equal to the
relevant Commitment retained by it hereunder. Such new Note or Notes shall be dated the effective
date of such Assignment and Acceptance and shall otherwise be in substantially the form of Exhibit
A hereto.

          (f) [Reserved].

          (g) Each Lender may sell participations to one or more Persons (other than any Loan Party or
any of its Affiliates) in or to all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitments, the Advances owing to it and
the Note or Notes (if any) held by it and its Revolving Credit-Linked Deposit Amount); provided,
however, that (i) such Lender’s obligations under this Agreement (including, without limitation,
its Commitments) shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) such Lender shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the Agents and the
other Lenders shall continue to deal solely and directly with such Lender in connection with such
Lender’s rights and obligations under this Agreement and (v) no participant under any such
participation shall have any right to approve any amendment or waiver of any provision of any Loan
Document, or any consent to any departure by any Loan Party therefrom, except to the extent that
such amendment, waiver or consent (A) would reduce the principal of, or interest on, the Advances
(except Default Interest) or any fees, call premiums or other amounts payable hereunder, in each
case to the extent subject to such participation, (B) postpone any date fixed for any payment of
principal of, or interest on, the Advances or any fees, call premiums or other amounts payable
hereunder, in each case to the extent subject to such participation, or (C) release all or
substantially all of the value of the Guaranties (except to the extent otherwise permitted herein).

 

93

          (h) Any Lender may, in connection with any assignment or participation or proposed assignment
or participation pursuant to this Section 11.07, disclose to the assignee or participant or
proposed assignee or participant any information relating to the Borrower
furnished to such Lender by or on behalf of the Borrower; provided, however, that, prior to
any such disclosure, the assignee or participant or proposed assignee or participant shall agree in
writing to preserve the confidentiality of any Confidential Information received by it from such
Lender and be bound by the terms of the confidentiality provisions contained in Section 11.10.

          (i) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create a security interest in all or any portion of its rights under this Agreement
(including, without limitation, the Advances owing to it and the Note or Notes (if any) held by it
and its Revolving Credit-Linked Deposit Amount) in favor of any Federal Reserve Bank in accordance
with Regulation A of the Board of Governors of the Federal Reserve System.

          (j) Notwithstanding anything to the contrary contained herein, any Lender that is a Fund may
create a security interest in all or any portion of the Advances owing to it and any Note or Notes
held by it and its Revolving Credit-Linked Deposit Amount to any creditor of or the trustee for
holders of obligations owed, or securities issued, by such Fund as security for such obligations or
securities; provided that, unless and until such creditor or trustee actually becomes a Lender in
compliance with the other provisions of this Section 11.07, (i) no such pledge shall release the
pledging Lender from any of its obligations under the Loan Documents and (ii) such trustee shall
not be entitled to exercise any of the rights of a Lender under the Loan Documents even though such
trustee may have acquired ownership rights with respect to the pledged interest through foreclosure
or otherwise.

          (k) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle identified as such in writing from time to
time by the Granting Lender to the Administrative Agent and the Borrower (an “SPC”) the option to
provide all or any part of any Advance or any Revolving Credit-Linked Deposit Amount that such
Granting Lender would otherwise be obligated to make pursuant to this Agreement; provided that (i)
nothing herein shall constitute a commitment by any SPC to fund any Advance or any Revolving
Credit-Linked Deposit Amount and (ii) if an SPC elects not to exercise such option or otherwise
fails to make all or any part of such Advance or such Revolving Credit-Linked Deposit Amount, the
Granting Lender shall be obligated to make such Advance or such Revolving Credit-Linked Deposit
Amount pursuant to the terms hereof. The making of an Advance or such Revolving Credit-Linked
Deposit Amount by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Advance or such Revolving Credit-Linked Deposit Amount were made by such
Granting Lender. Each party hereto hereby agrees that (i) no SPC shall be liable for any indemnity
or similar payment obligation under this Agreement for which a Lender would be liable, (ii) no SPC
shall be entitled to the benefits of Sections 4.05 and 4.07 (or any other increased costs
protection provision) and (iii) the Granting Lender shall for all purposes, including, without
limitation, the approval of any amendment or waiver of any provision of any Loan Document, remain
the Lender of record hereunder. Notwithstanding anything to the contrary contained in this
Agreement, any SPC may (i) with notice to, but without prior consent of, the Borrower and the
Administrative Agent, and without paying any processing fee therefor, assign all or any portion of
its interest in any

 

94

Advance to the Granting Lender and (ii) disclose on a confidential basis any
non-public information relating to its funding of Advances to any rating agency, commercial paper
dealer or provider of any surety or guarantee or credit or liquidity enhancement to such SPC. This
subsection (k) may not be amended without the prior written consent of each Granting Lender,
all or any part of whose Advances are being funded by the SPC at the time of such amendment.

     SECTION 11.08. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto 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. Delivery by telecopier or electronic transmission of an executed
counterpart of a signature page to this Agreement shall be effective as delivery of an original
executed counterpart of this Agreement.

     SECTION 11.09. [Reserved].

     SECTION 11.10. Confidentiality. (a) Neither any Agent nor any Lender shall
disclose any Confidential Information to any Person without the prior consent of the Borrower,
other than (a) to such Agent’s or such Lender’s Affiliates and their officers, directors,
employees, agents and advisors and to any pledgee referred to in Section 11.07(j) and to any actual
or prospective Eligible Assignees and participants, and then only on a confidential basis and
subject to the agreement of any such prospective Eligible Assignee, participant or pledgee with the
substance of the provisions of this Section 11.10 in writing or through electronic confirmation,
(b) as required by any law, rule or regulation or judicial process, (c) as requested or required by
any state, Federal or foreign authority or examiner (including the National Association of
Insurance Commissioners or any similar organization or quasi-regulatory authority) regulating such
Lender, (d) to any rating agency when required by it, provided that, prior to any such disclosure,
such rating agency shall agree to preserve the confidentiality of any Confidential Information
relating to the Loan Parties received by it from such Lender, (e) in connection with any litigation
or proceeding to which such Agent or such Lender or any of its Affiliates may be a party or (f) in
connection with the exercise of any right or remedy under this Agreement or any other Loan
Document; provided, that, prior to any disclosure pursuant to clause (b) or, other than the case of
any litigation between the Borrower and its Subsidiaries, on the one hand, and such Agent, Lender
or Affiliate, on the other, clause (e) hereof, such Agent or such Lender shall use commercially
reasonable efforts to provide the Borrower with prior notice thereof.

          (b) Each Lender acknowledges that information furnished to it pursuant to this Agreement or
the other Loan Documents may include material non-public information concerning the Borrower the
other Loan Parties or their respective securities, and confirms that it has developed compliance
procedures regarding the use of material non-public information and that it will handle such
material non-public information in accordance with those procedures and applicable law, including
Federal and state securities laws.

          (c) All information, including requests for waivers and amendments, furnished by the Borrower
or the Administrative Agent pursuant to, or in the course of administering, this Agreement or the
other Loan Documents will be syndicate-level information, which may contain material non-public
information about the Borrower and the other Loan
Parties or their respective securities. Accordingly, each Lender represents to the Borrower
and

 

95

the Administrative Agent that it has identified in its administrative questionnaire a credit
contact who may receive information that may contain material non-public information in accordance
with its compliance procedures and applicable law, including Federal and state securities laws.

     SECTION 11.11. [Reserved].

     SECTION 11.12. PATRIOT Act Notice. Each Lender and each Agent (for itself and not
on behalf of any Lender) hereby notifies the Loan Parties that pursuant to the requirements of the
PATRIOT Act, it is required to obtain, verify and record information that identifies each Loan
Party, which information includes the name and address of such Loan Party and other information
that will allow such Lender or such Agent, as applicable, to identify such Loan Party in accordance
with the PATRIOT Act. The Borrower shall, and shall cause each of the other Loan Parties to,
provide such information and take such actions as are reasonably requested by any Agent or any
Lender in order to assist the Agents and the Lenders in maintaining compliance with the PATRIOT
Act.

     SECTION 11.13. Jurisdiction, Etc. (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of any New York State court or Federal court of the United States of America sitting
in New York City, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement or any of the other Loan Documents to which it is a party, or for
recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in any such New York State court or, to the fullest extent permitted by law, in such
Federal court. Each of the parties hereto agrees that a non-appealable 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. Nothing in this Agreement shall affect any right
that any party may otherwise have to bring any action or proceeding relating to this Agreement or
any of the other Loan Documents in the courts of any jurisdiction.

          (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or any of
the other Loan Documents to which it is a party in any New York State or Federal court. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

     SECTION 11.14. Governing Law. This Agreement and the Notes shall be governed by,
and construed in accordance with, the laws of the State of New York.

     SECTION 11.15. WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW,
EACH OF THE BORROWER, THE AGENTS, THE ARRANGER AND THE LENDERS IRREVOCABLY WAIVES ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE ADVANCES, OR THE ACTIONS OF
THE ARRANGER, ANY AGENT

 

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OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT THEREOF.

[SIGNATURE PAGES FOLLOW]

 

 

     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.

	 	 	 	 	 
	 	NAVISTAR INTERNATIONAL CORPORATION

 	 
	 	By  	    /s/ TM Endsley
 	 
	 	 	Name:  	Terry M. Endsley 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	INTERNATIONAL TRUCK AND ENGINE

CORPORATION, as a Guarantor

 	 
	 	By  	    /s/ TM Endsley
 	 
	 	 	Name:  	Terry M. Endsley 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

  as Administrative Agent and Initial Lender

 	 
	 	By  	    /s/ Matthew H. Massie
 	 
	 	 	Name:  	Matthew H. Massie 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	J.P. MORGAN SECURITIES INC.,

  as Joint Lead Arranger and Joint Bookrunner

 	 
	 	By  	    /s/ John C. Riordan
 	 
	 	 	Name:  	John C. Riordan 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS

BRANCH, as Initial Lender

 	 
	 	By  	    /s/ SoVonna Day-Goins
 	 
	 	 	Name:  	SoVonna Day-Goins 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By  	  /s/ Adam Forchheimer
 	 
	 	 	Name:  	Adam Forchheimer 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	CREDIT SUISSE SECURITIES (USA) LLC, as

Joint Lead Arranger, and Joint Bookrunner, and

Syndication Agent

 	 
	 	By  	    /s/ SoVonna Day-Goins
 	 
	 	 	Name:  	SoVonna Day-Goins 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	BANC OF AMERICA BRIDGE LLC,

as Initial Lender

 	 
	 	By  	    /s/ John M. Rote
 	 
	 	 	Name:  	John M. Rote 	 
	 	 	Title:  	Managing Director 	 
	 

	 	 	 	 	 
	 	BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arranger and Co-Documentation

Agent

 	 
	 	By  	    /s/ John M. Rote
 	 
	 	 	Name:  	John M. Rote 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.,

as Initial Lender

 	 
	 	By  	    /s/ Fancesco A. Delvecchio
 	 
	 	 	Name:  	Fancesco A. Delvecchio 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CITIGROUP GLOBAL MARKETS INC., as 

Co-Documentation Agent

 	 
	 	By  	    /s/ Fancesco A. Delvecchio
 	 
	 	 	Name:  	Fancesco A. Delvecchio 	 
	 	 	Title:  	Director 	 
	 

 

 

Schedule I

Commitments and Applicable Lending Offices

	 	 	 	 	 	 	 	 	 
	Name of Initial Lender	 	Commitment	 	 	Domestic Lending Office
	JPMorgan Chase Bank, N.A.
	 	$	468,750,000	 	 	1111 Fannin St., 10th Floor
 Houston, Texas 77002
	 
	 	 	 	 	 	 	 	 
	Credit Suisse
	 	$	468,750,000	 	 	11 Madison Ave
New York, New York 10010
	 
	 	 	 	 	 	 	 	 
	Banc of America Bridge LLC
	 	$	375,000,000	 	 	On File
	 
	 	 	 	 	 	 	 	 
	Citicorp North America, Inc.
	 	$	187,500,000	 	 	388 Greenwich Street
New York, New York 10013

 

 

Schedule II

Subsidiary Guarantors (as of the date hereof)

International Truck and Engine Corporation

 

 

Schedule III

Unrestricted Subsidiaries

	1.	 	Navistar Financial Corporation.
	 
	2.	 	NFC Securitization Trusts
	 
	3.	 	Navistar Leasing Company
	 
	4.	 	Arrendadora Financiera Navistar S.A. de C.V.
	 
	5.	 	Servicios Financieros Navistar S.A. de C.V.
	 
	6.	 	Servicios Financieros Corporativos NFC, S.A. de C.V.
	 
	7.	 	Harbour Assurance Company of Bermuda Limited.
	 
	8.	 	Navistar Leasing Services Corporation f/k/a Harco Leasing Company, Inc.
	 
	9.	 	Grimsby Insurance Co. Ltd.
	 
	10.	 	Navistar Acceptance Corporation Limited.
	 
	11.	 	Navistar Comercial, S.A. de C.V.
	 
	12.	 	International Truck and Engine Corporation US Holding Company, LLC.
	 
	13.	 	International Truck and Engine Corporation Cayman Islands Holding Corporation.
	 
	14.	 	International Truck and Engine Investments Corporation.
	 
	15.	 	Blue Diamond Truck, S. de R.L. de C.V.
	 
	16.	 	Blue Diamond Parts, LLC
	 
	17.	 	International Dealcor Operations, Ltd.
	 
	18.	 	Diamond Force Engineering LLC
	 
	19.	 	International Truck and Engine Mauritius Holding Ltd.
	 
	20.	 	All subsidiaries owned as of the Closing Date by the Loan Parties or one of its Restricted
Subsidiaries or acquired by the Loan Parties or one of its Restricted Subsidiaries after the
Closing Date and their respective subsidiaries, in each case, whose principal business is a
dealership of the International Truck and Engine Corporation or a parts and service center,
including, without limitation, Archway International Trucks, LLC, Brickyard International
Trucks, LLC, Cedar River International Trucks, Inc. (dba Hawkeye International Trucks),
Central Maryland International Trucks, LLC, Chicago International Trucks, LLC, Co-Van
International Trucks Inc., Freedom International

 

 

	 	 	Trucks of New Jersey, Inc., Garden State International Trucks, Inc. , Great Lakes
International Trucks LLC, I-10 International Trucks, Inc. d/b/a McCandless International
Trucks of Arizona, KCR International Trucks, LLC, Northland International Trucks, LLC,
Patriot International Trucks, LLC, Prairie International Trucks, Inc., Rocky Mountain
International Trucks, Inc. d/b/a McCandless International Trucks of Colorado, Brickyard
Parts & Service of Brazil, LLC, Carolina International Trucks of Anderson LLC, Chicago
International of Bolingbrook LLC, Diamond International Trucks (Fort McMurray) Ltd., Parts
and Service Ventures, Inc., Parts and Service Ventures Canada, Inc., 1200698 Alberta Ltd.,
Distribuidora De Camiones International, S. de R.L. de C.V., Western Michigan International
Trucks, LLC, East Coast International Trucks, Inc., Western Toronto International Trucks,
Inc., West Island International Trucks, Inc., Piedmont International Trucks, LLC, Cascadia
International, LLC, Kile International Trucks, Inc. d/b/a Cumberland International Trucks,
Mid-Atlantic Truck Centre, Inc., Power City International Trucks, Inc., Chicago
International Trucks of Carol Stream, LLC, International Parts and Service of South Jersey,
LLC, Maudlin International Parts and Service of Daytona Beach, LLC and Maudlin International
Parts and Service of Palm Bay, LLC.
	 
	21.	 	International Truck Leasing Corp.
	 
	22.	 	Navistar Financial Retail Receivables Corporation
	 
	23.	 	Navistar Financial Securities Corporation
	 
	24.	 	Navistar, Inc.
	 
	25.	 	Truck Engine Receivables Financing Co.
	 
	26.	 	Truck Retail Accounts Corporation
	 
	27.	 	Truck Retail Instalment Paper Corp.
	 
	28.	 	Navistar Cayman Islands Intellectual Property Company
	 
	29.	 	Navistar Luxembourg Intellectual Property Company
	 
	30.	 	World Truck Rapid Service, LLC
	 
	31.	 	World Truck Rapid Service of Alsip, LLC
	 
	32.	 	Cumberland Servicenter, Inc.

 

 

Schedule 6.01(b)

Loan Parties

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jurisdiction of	 	 	Principal Place of	 	 	 	 
	Name	 	Organization	 	 	Business	 	Tax ID Number	 
	Navistar International Corporation
	 	Delaware	 	4201 Winfield Road
P.O. Box 1488
Warrenville, IL 60555	 	 	36-3359573	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	International Truck and Engine Corporation
	 	Delaware	 	4201 Winfield Road
P.O. Box 1488
Warrenville, IL 60555	 	 	36-1264810	 

 

 

Schedule 6.01(c)

Restricted Subsidiaries

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	# of Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Covered by
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	options,
	 	 	 	 	 	 	 	 	 	 	Outstanding	 	Percentage	 	warrants,
	 	 	 	 	 	 	 	 	 	 	Shares/	 	of Equity	 	rights of
	Issuer	 	 	 	Jurisdiction	 	Authorized	 	Interest	 	Interest	 	conversion or
	(Restricted	 	 	 	of	 	Shares/	 	(interpreted	 	Held by the	 	purchase and
	Subsidiary)	 	Holder	 	Formation	 	Interest	 	 	as Issued)	 	 	Holder	 	similar rights
	International Truck
and Engine
Corporation

	 	Navistar

International

Corporation
	 	Delaware
	 	 	100,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar Advanced 

Technologies, 

Incorporated

	 	Navistar

International

Corporation
	 	Delaware
	 	 	1,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar
Aftermarket
Products, Inc.

	 	Navistar

International

Corporation
	 	Delaware
	 	 	1,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International
Engine – Global
Services
Corporation (f/n/a
Navistar Ventures,
Inc.)

	 	Navistar

International

Corporation
	 	Delaware
	 	 	1,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International 

Engines Germany 

GmbH

	 	Navistar

International

Corporation
	 	Germany
	 	 	100	%	 	 	100	%	 	100% (Limited
Liability Company)
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International
Industria
Automotiva Da
America Do Sul
Ltda.

	 	Navistar
International
Corporation

International of
Mexico Holding
Corporation
	 	Brazil
	 	48,793,061
	BRL	 	48,793,061 	BRL	 	Navistar
International
Corporation
(93%)

International of
Mexico Holding
Corporation (6%)
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International Truck
and Engine
Corporation Canada

	 	International Truck
and Engine
Corporation
	 	Ontario
	 	Unlimited
	 	 	150,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Indianapolis 

Casting Corporation

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	1,000	 	 	 	500	 	 	 	100	%	 	None

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	# of Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Covered by
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	options,
	 	 	 	 	 	 	 	 	 	 	Outstanding	 	Percentage	 	warrants,
	 	 	 	 	 	 	 	 	 	 	Shares/	 	of Equity	 	rights of
	Issuer	 	 	 	Jurisdiction	 	Authorized	 	Interest	 	Interest	 	conversion or
	(Restricted	 	 	 	of	 	Shares/	 	(interpreted	 	Held by the	 	purchase and
	Subsidiary)	 	Holder	 	Formation	 	Interest	 	 	as Issued)	 	 	Holder	 	similar rights
	3096264 Nova Scotia 

Company

	 	International Truck
and Engine
Corporation Canada
	 	Nova Scotia
	 	$	1,100.00	 	 	 	1,100	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6325319 Canada Inc.

	 	3096264 Nova Scotia

Company
	 	Ontario
	 	Unlimited
	 	 	NA
	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Mascot Truck Parts
Ltd.

	 	6325319 Canada Inc.
	 	Ontario
	 	 	100,000	 	 	 	1	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Workhorse 

International 

Holding Company

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	100,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Workhorse Sales
Corp.

	 	Workhorse Custom

Chassis, LLC
	 	Delaware
	 	 	10,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Workhorse Custom 

Chassis, LLC

	 	Workhorse

International

Holding Company
	 	Illinois
	 	 	100	%	 	 	100	%	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Uptime Parts, LLC

	 	Workhorse

International

Holding Company
	 	Delaware
	 	 	100	%	 	 	100	%	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International Truck 

Intellectual 

Property Company, 

LLC

	 	International Truck
and Engine
Corporation
	 	Illinois
	 	 	100	%	 	 	100	%	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International 

Engine Intellectual 

Property Company, 

LLC

	 	International Truck
and Engine
Corporation
	 	Illinois
	 	 	100	%	 	 	100	%	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International Truck
and Engine Overseas
Corporation

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	50,000	 	 	 	250.00	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International Truck
and Engine Export
Corporation

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	150,000	 	 	 	100,000	 	 	 	100	%	 	None

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	# of Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Covered by
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	options,
	 	 	 	 	 	 	 	 	 	 	Outstanding	 	Percentage	 	warrants,
	 	 	 	 	 	 	 	 	 	 	Shares/	 	of Equity	 	rights of
	Issuer	 	 	 	Jurisdiction	 	Authorized	 	Interest	 	Interest	 	conversion or
	(Restricted	 	 	 	of	 	Shares/	 	(interpreted	 	Held by the	 	purchase and
	Subsidiary)	 	Holder	 	Formation	 	Interest	 	 	as Issued)	 	 	Holder	 	similar rights
	International
Diesel of Alabama,
LLC

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	100	%	 	 	100	%	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IC Corporation

	 	International Truck
and Engine
Corporation
	 	Arkansas
	 	 	1,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SST Truck Company,
LP

	 	SST Operations GP
LLC 

SST Operations LP
LLC
	 	Delaware
	 	 	100	%	 	 	100	%	 	SST Operations GP
LLC (1%)

SST Operations LP
LLC (99%)
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Integrated Coach
Corporation

	 	IC Corporation
	 	Arkansas
	 	 	10,000	 	 	 	10,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Integrated Coach of
Oklahoma, LLC

	 	IC of Oklahoma, LLC
	 	Delaware
	 	 	100	%	 	 	N/A	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IC of Oklahoma, LLC

	 	IC Corporation
	 	Delaware
	 	 	100	%	 	 	N/A	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NLP, Inc.

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	1,000	 	 	 	1,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International
Navistar Holding
Mexico S.A. de C.V.

	 	International of
Mexico Holding
Corporation
	 	Mexico
	 	 	50,000	 	 	 	50,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International Parts
Distribution, S.A.
de C.V.

	 	International
Navistar Holding
Mexico S.A. de C.V.
	 	Mexico
	 	 	50,000	 	 	 	50,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Servicios
Administrativos
Navistar, S.A. de
C.V.

	 	International
Navistar Holding
Mexico S.A. de C.V.
	 	Mexico
	 	 	50,000	 	 	 	50,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar Severe
Service Truck
Company

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	100	%	 	 	100	%	 	 	100	%	 	None

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	# of Shares
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Covered by
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	options,
	 	 	 	 	 	 	 	 	 	 	Outstanding	 	Percentage	 	warrants,
	 	 	 	 	 	 	 	 	 	 	Shares/	 	of Equity	 	rights of
	Issuer	 	 	 	Jurisdiction	 	Authorized	 	Interest	 	Interest	 	conversion or
	(Restricted	 	 	 	of	 	Shares/	 	(interpreted	 	Held by the	 	purchase and
	Subsidiary)	 	Holder	 	Formation	 	Interest	 	 	as Issued)	 	 	Holder	 	similar rights
	Navistar
International
Holdings (Canada)
Corp.

	 	International Truck
and Engine
Corporation
	 	Nova Scotia
	 	 	100,000	 	 	 	100	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MWM International
Industria De
Motores Da America
Do Sul Ltda.

	 	International Truck
and Engine
Corporation
Canada

International of
Mexico Holding
Corporation
	 	Brazil
	 	R$	 649,024,396.00	 	 	R$	 649,024,396.00	 	 	International Truck
and Engine
Corporation Canada
(99.90%)

International of
Mexico Holding
Corporation (0.10%)
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MWM International
Motores S.A.

	 	International of
Mexico Holding
Corporation

MWM International
Industria De
Motores Da America
Do Sul Ltda.
	 	Argentina
	 	 	100	%	 	 	100	%	 	International of
Mexico Holding
Corporation
(10.00%)

MWM International
Industria De
Motores Da America
Do Sul Ltda.
(90.00%)
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	I. Motores Trading,
Inc.

	 	MWM International
Industria De
Motores Da America
Do Sul Ltda.
	 	Florida
	 	 	10,000	 	 	 	10,000	 	 	 	100	%	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International
Military and
Government, L.L.C.

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	 	100	%	 	 	100	%	 	 	100	%	 	None

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	# of Shares
	 	 	 	 	 	 	 	 	 	 	 	 	Covered by
	 	 	 	 	 	 	 	 	 	 	 	 	outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	options,
	 	 	 	 	 	 	 	 	Outstanding	 	Percentage	 	warrants,
	 	 	 	 	 	 	 	 	Shares/	 	of Equity	 	rights of
	Issuer	 	 	 	Jurisdiction	 	Authorized	 	Interest	 	Interest	 	conversion or
	(Restricted	 	 	 	of	 	Shares/	 	(interpreted	 	Held by the	 	purchase and
	Subsidiary)	 	Holder	 	Formation	 	Interest	 	as Issued)	 	Holder	 	similar rights
	Camiones y Motores
International de
Mexico, S.A. de
C.V.

	 	International
Navistar Holding
Mexico S.A. de C.V.

Navistar
International
Corporation
	 	Mexico
	 	N/A (Mexican
variable capital
corporation (S.A.
de C.V.), so there
isn’t a fixed
number of
authorized shares)
	 	890,205,699 
	 	International
Navistar Holding
Mexico S.A. de C.V.
(99%) 

Navistar
International
Corporation (1%)
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	American 

Transportation 

Corporation

	 	IC Corporation
	 	Arkansas
	 	10,000 
	 	10,000 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	International of
Mexico Holding
Corporation

	 	Navistar

International

Corporation
	 	Delaware
	 	1,000 
	 	750 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	International Truck 

Finance Corporation

	 	Navistar

International

Corporation
	 	Delaware
	 	1,000 
	 	1,000 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar
Aftermarket
Products
Distribution Corp.

	 	Navistar

International

Corporation
	 	Delaware
	 	1,000 
	 	1,000 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar Diesel
Components, Inc.

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	1,000 
	 	1,000 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar Foundation

	 	N/A (Not For Profit

Corporation)
	 	Illinois
	 	N/A (Not For Profit

Corporation)
	 	N/A (Not For Profit

Corporation)
	 	N/A (Not For Profit

Corporation)

	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	International Gas
Supplier, S. de
R.L. de C.V.

	 	Blue Diamond Truck,
S. de R.L. de C.V.

Camiones y Motores
International de
Mexico, S.A. de
C.V.
	 	Mexico
	 	3,000 MXP
	 	3,000 MXP
	 	Blue Diamond Truck, S. de R.L. de C.V.
(1.00%)

Camiones y Motores
International de
Mexico, S.A. de
C.V. (99.00%)
	 	None

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	# of Shares
	 	 	 	 	 	 	 	 	 	 	 	 	Covered by
	 	 	 	 	 	 	 	 	 	 	 	 	outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	options,
	 	 	 	 	 	 	 	 	Outstanding	 	Percentage	 	warrants,
	 	 	 	 	 	 	 	 	Shares/	 	of Equity	 	rights of
	Issuer	 	 	 	Jurisdiction	 	Authorized	 	Interest	 	Interest	 	conversion or
	(Restricted	 	 	 	of	 	Shares/	 	(interpreted	 	Held by the	 	purchase and
	Subsidiary)	 	Holder	 	Formation	 	Interest	 	as Issued)	 	Holder	 	similar rights
	International Big
Bore Diesels of
Alabama, LLC

	 	International
Diesel of Alabama,
LLC
	 	Delaware
	 	100% 
	 	N/A 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar 

International 

Employee Leasing
Company

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	100 
	 	100 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SST Operations

 GP
LLC

	 	Navistar Severe

Service Truck

Company
	 	Delaware
	 	100% 
	 	N/A 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	SST Operations 
LP
LLC

	 	Navistar Severe

Service Truck

Company
	 	Delaware
	 	100% 
	 	N/A 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	North American 

Brake Logistics, 

LLC

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	100% 
	 	N/A 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	North American 

Remanufacturing 

Logistics, LLC

	 	International Truck
and Engine
Corporation
	 	Delaware
	 	100% 
	 	N/A 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar Brazil 

Engine Holding 

Corporation

	 	Navistar

International

Corporation
	 	Delaware
	 	1,000 
	 	1,000 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar Brazil 

Truck Holding 

Corporation

	 	Navistar

International

Corporation
	 	Delaware
	 	1,000 
	 	1,000 
	 	100% 
	 	None
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar
International
Transportation
Corp. (inactive;
being dissolved)

	 	Navistar

International

Corporation
	 	Delaware	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	International
Engine Corporation
(inactive; being
dissolved)

	 	International Truck
and Engine
Corporation
	 	Delaware	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	# of Shares
	 	 	 	 	 	 	 	 	 	 	 	 	Covered by
	 	 	 	 	 	 	 	 	 	 	 	 	outstanding
	 	 	 	 	 	 	 	 	 	 	 	 	options,
	 	 	 	 	 	 	 	 	Outstanding	 	Percentage	 	warrants,
	 	 	 	 	 	 	 	 	Shares/	 	of Equity	 	rights of
	Issuer	 	 	 	Jurisdiction	 	Authorized	 	Interest	 	Interest	 	conversion or
	(Restricted	 	 	 	of	 	Shares/	 	(interpreted	 	Held by the	 	purchase and
	Subsidiary)	 	Holder	 	Formation	 	Interest	 	as Issued)	 	Holder	 	similar rights
	International
Engines Europe GmbH
(inactive; being
dissolved)

	 	Navistar

International

Corporation
	 	Germany	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Navistar
International
Transportation de
Colombia Ltda.
(inactive; being
dissolved)

	 	International Truck
and Engine
Corporation
	 	Colombia	 	 	 	 	 	 	 	 

 

 

Schedule 6.01(g)

Disclosed Litigation

	1.	 	Along with other vehicle manufacturers, the company and certain of its subsidiaries have been
subject to an increase in the number of asbestos-related claims in recent years. Management
believes that such claims will not have a material adverse affect on the company’s financial
condition or results of operations. In general these claims relate to illnesses alleged to
have resulted from asbestos exposure from component parts found in older vehicles, although
some cases relate to the presence of asbestos in company facilities. In these claims the
company is not the sole defendant, and the claims name as defendants numerous manufacturers
and suppliers of a wide variety of products allegedly containing asbestos. Management has
strongly disputed these claims, and it has been the company’s policy to defend against them
vigorously. Historically, the actual damages paid out to claimants have not been material to
the company’s results of operations and financial condition. However, management believes the
company and other vehicle manufacturers are being more aggressively targeted, largely as a
result of bankruptcies of manufacturers of asbestos and products containing asbestos. It is
possible that the number of these claims will continue to grow, and that the costs for
resolving asbestos related claims could become significant in the future

	2.	 	On October 13, 2004, the company received a request from the staff of the SEC to voluntarily
produce certain documents and information related to the company’s accounting practices with
respect to defined benefit pension plans and other postretirement benefits. The company is
fully cooperating with this request. Based on the status of the inquiry, the company is not
able to predict the final outcome.

	3.	 	On January 31, 2005, the company announced that it would restate its financial results for
fiscal years 2002 and 2003 and the first three quarters of fiscal 2004. The SEC notified the
company on February 9, 2005, that it was conducting an informal inquiry into the company’s
restatement. On March 17, 2005, the company was advised by the SEC that the status of the
inquiry had been changed to a formal investigation. On April 7, 2006, the company announced
that it would restate its financial results for fiscal years 2002 through 2004 and for the
first nine months of fiscal 2005. The company is fully cooperating with the SEC on this
investigation. Based on the status of the investigation, the company is not able to predict
the final outcome.

	4.	 	On December 15, 2006 the New York Stock Exchange commenced delisting procedures with respect
to Navistar International Corporation’s common stock and preferred stock.

	5.	 	On January 11, 2006, the company became aware of a complaint filed in Oakland County Circuit
Court in Michigan by Ford Motor Company against the Loan Parties claiming damages relating to
warranty and pricing disputes with respect to certain engines purchased by Ford Motor Company
from the Loan Parties. As of the date hereof, the Loan Parties have not been served the
complaint. The company intends to further investigate this matter and believes that it has
meritorious defenses to Ford’s claims.

 

 

Schedule 6.01(p)

Existing Debt (Non-Intercompany) in Excess of $50,000,000 (as of December 31, 2006)

Part I.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Outstanding	 	 	 	Maturity	 	 
	Debtor	 	Guarantor	 	Amount	 	Rate	 	Date	 	Comments
	NIC

	 	ITEC
	 	$	1,300,000,000	 	 	Floating
	 	3/7/2009
	 	Outstanding balance
of the $1.5 billion
bridge loan
facility
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ITEC

	 	NIC
	 	$	387,575,859	 	 	Various
	 	6/5/2014
	 	Guarantee to
various 3rd Party
Lessors for Sale
Leasebacks -
Remaining Lease
Payments with
various lease
termination dates
thru 2014; includes
$12.7 million Early
Buy-Out for which
Notice has already
been provided – See
attached Schedule
for details
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NFC

	 	NIC
	 	$	306,457,000	 	 	Various
	 	N.A.
	 	Guarantee to NFC on
behalf of NFC’s
Guarantee to 3rd
Party Lenders – No
expiration date
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NFC

	 	NIC
	 	$	100,000,000	 	 	Floating
	 	7/1/2010
	 	Guarantee of
Revolving Loan
Facility Allocated
to Mexican Finance
Companies
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	NFCx

	 	NIC
	 	$	86,161,000	 	 	Floating
	 	8/30/2010
	 	Guarantee to 3rd
Party Lenders -
various maturity
dates thru 2010
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ITEC & ITEC- Canada

	 	NIC
	 	$	85,257,708	 	 	Various
	 	9/6/2026
	 	NIC Guarantee to
3rd Parties for
Real Estate
Operating Leases -
Remaining Lease
Payments with
various lease
termination dates
thru 2026

Part II

None.

 

 

Schedule 6.01(q)

Liens Securing Non-Intercompany Debt for Borrowed Money in Excess of $50,000,000

None.

 

 

EXHIBIT A-1

FORM OF NOTE

FORM OF TERM NOTE

 

			
	$                    
	 	Dated:                     , 200_

     FOR VALUE RECEIVED, the undersigned, NAVISTAR INTERNATIONAL CORPORATION, a Delaware
corporation (the “Borrower”), HEREBY PROMISES TO PAY to [the order of]                      [or its
registered assigns] (the “Lender”) for the account of its Applicable Lending Office (as defined in
the Credit Agreement referred to below) the principal amount of the Term Advance (as defined below)
owing to the Lender by the Borrower pursuant to that certain Credit Agreement (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “Credit Agreement"; terms
defined therein, unless otherwise defined herein, being used herein as therein defined), dated as
of January ___, 2007 by and among the Borrower, the Subsidiary Guarantors, the Lender and certain
other Lenders and Agents party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent for
the Lender and such other Lenders a party to the Credit Agreement, on the Maturity Date.

     The Borrower promises to pay interest on the unpaid principal amount of the Term Advance from
the date of such Term Advance until such principal amount is paid in full, at such interest rates,
and payable at such times, as are specified in the Credit Agreement.

     Both principal and interest are payable in lawful money of the United States of America to
JPMorgan Chase Bank, N.A., as Administrative Agent, at 1111 Fanin Street, Houston, Texas 77002, in
same day funds. The Term Advances owing to the Lender by the Borrower, and all payments made on
account of principal thereof, shall be recorded by the Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto, which is part of this Promissory Note; provided, however,
that the failure of the Lender to make any such recordation or endorsement shall not affect the
Obligations of the Borrower under this Promissory Note.

     This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of an
advance (a “Term Advance”) by the Lender to the Borrower in an aggregate amount not to exceed the
U.S. dollar amount first above mentioned, the indebtedness of the Borrower resulting from such Term
Advance being evidenced by this Promissory Note, and (ii) contains provisions for acceleration of
the maturity hereof upon the happening of certain stated events and also for prepayments on account
of principal hereof prior to the maturity hereof upon the terms and conditions therein specified.

 

 

	 	 	 	 	 	 	 
	 	 	NAVISTAR INTERNATIONAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 
	 	 	Amount of Principal	 	Unpaid Principal	 	Notation
	Date	 	Paid or Prepaid	 	Balance	 	Made By
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 

 

 

EXHIBIT A-2

FORM OF NOTE

FORM OF REVOLVING NOTE

 

			
	$                    
	 	Dated:                     , 200_

     FOR VALUE RECEIVED, the undersigned, NAVISTAR INTERNATIONAL CORPORATION, a Delaware
corporation (the “Borrower”), HEREBY PROMISES TO PAY to [the order of]                      [or its
registered assigns] (the “Lender”) for the account of its Applicable Lending Office (as defined in
the Credit Agreement referred to below) the principal amount of (a) [ ] Dollars ($[ ]), or, if
less, (b) the unpaid principal amount of the outstanding Revolving Advances (as defined below) made
by the Lender pursuant to that certain Credit Agreement (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Credit Agreement"; terms defined
therein, unless otherwise defined herein, being used herein as therein defined), dated as of
January ___, 2007 by and among the Borrower, the Subsidiary Guarantors, the Lender and certain other
Lenders and Agents party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent for the
Lender and such other Lenders a party to the Credit Agreement, on the Maturity Date.

     The Borrower promises to pay interest on the unpaid principal amount of each Revolving Advance
from the date of such Revolving Advance until such principal amount is paid in full, at such
interest rates, and payable at such times, as are specified in the Credit Agreement.

     Both principal and interest are payable in lawful money of the United States of America to
JPMorgan Chase Bank, N.A., as Administrative Agent, at 1111 Fanin Street, Houston, Texas 77002, in
same day funds. The Revolving Advances owing to the Lender by the Borrower, and all payments made
on account of principal thereof, shall be recorded by the Lender and, prior to any transfer hereof,
endorsed on the grid attached hereto, which is part of this Promissory Note; provided, however,
that the failure of the Lender to make any such recordation or endorsement shall not affect the
Obligations of the Borrower under this Promissory Note.

     This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of
advances (each a “Revolving Advance” and collectively, the “Revolving Advances”) by the Lender to
the Borrower in an aggregate amount not to exceed the U.S. dollar amount first above mentioned, the
indebtedness of the Borrower resulting from such Revolving Advance being evidenced by this
Promissory Note, and (ii) contains provisions for acceleration of the maturity hereof upon the
happening of certain stated events and also for prepayments on

 

 

account of principal hereof prior to the maturity hereof upon the terms and conditions therein
specified.

	 	 	 	 	 	 	 
	 	 	NAVISTAR INTERNATIONAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

 

 

PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 
	 	 	Amount of Principal	 	Unpaid Principal	 	Notation
	Date	 	Paid or Prepaid	 	Balance	 	Made By
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 

 

 

EXHIBIT B

FORM OF

ASSIGNMENT AND ACCEPTANCE

     Reference is made to that certain Credit Agreement (as amended, amended and restated,
supplemented or otherwise modified from time to time, the
“Credit Agreement”; the terms defined
therein, unless otherwise defined herein, being used herein as therein defined) dated as of January
___, 2007 by and among Navistar International Corporation, a Delaware corporation (the “Borrower”),
the Subsidiary Guarantors, the Lender, certain other Lenders and Agents party thereto, and JPMorgan
Chase Bank, N.A., as Administrative Agent for the Lender and such other Lenders a party to the
Credit Agreement.

     The “Assignor” referred to on Schedule 1 hereto (the “Assignor”) and the “Assignee” referred
to on Schedule 1 hereto (the “Assignee”) each agree with respect to all information relating to it
and its assignment hereunder and on Schedule 1 hereto as follows:

     (1) The Assignor hereby sells and assigns, without recourse except as to the
representations and warranties made by it herein, to the Assignee, and the Assignee hereby
purchases and assumes from the Assignor, an interest in and to the Assignor’s rights and
obligations under the Credit Agreement as of the date hereof equal to the percentage interest
specified on Schedule 1 hereto of all outstanding rights and obligations under the Credit
Agreement. After giving effect to such sale and assignment, the Assignee’s Commitments and the
amount of the Advances owing to the Assignee will be as set forth on Schedule 1 hereto.

     (2) The Assignor (i) represents and warrants that its name set forth on Schedule 1
hereto is its legal name, that it is the legal and beneficial owner of the interest or interests
being assigned by it hereunder and that such interest or interests are free and clear of any
adverse claim or Lien; (ii) makes no representation or warranty and assumes no responsibility with
respect to any statements, warranties or representations made in or in connection with any Loan
Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of
any Loan Document or any other instrument or document furnished pursuant thereto; (iii) makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
any Loan Party or the performance or observance by any Loan Party of any of its obligations under
any Loan Document or any other instrument or document furnished pursuant thereto; and (iv) attaches
the Note or Notes (if any) held by the Assignor and requests that the Administrative Agent exchange
such Note or Notes for a new Note or Notes payable to the order of the Assignee in an amount equal
to the Commitments assumed by the Assignee pursuant hereto or new Notes payable to the order of the
Assignee in an amount equal to the Commitments assumed by the Assignee pursuant hereto and the
Assignor in an amount equal to the Commitments retained by the Assignor under the Credit Agreement,
respectively, as specified on Schedule 1 hereto.

     (3) The Assignee (i) confirms that it has received a copy of the Credit Agreement,
together with copies of the financial statements referred to in Section 6.01 thereof and such other
documents and information as it has deemed appropriate to make its own credit

 

 

analysis and decision to enter into this Assignment and Acceptance; (ii) agrees that it will,
independently and without reliance upon any Agent, any Assignor or any other Lender and based on
such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under the Credit Agreement; (iii) represents and
warrants that its name set forth on Schedule 1 hereto is its legal name; (iv) represents and
warrants that it is an Eligible Assignee; (v) appoints and authorizes each Agent to take such
action as agent on its behalf and to exercise such powers and discretion under the Loan Documents
as are delegated to such Agent by the terms thereof, together with such powers and discretion as
are reasonably incidental thereto; (vi) agrees that it will perform in accordance with their terms
all of the obligations that by the terms of the Credit Agreement are required to be performed by it
as a Lender; and (vii) attaches any U.S. Internal Revenue Service forms required under Section 4.07
of the Credit Agreement.

     (4) Following the execution of this Assignment and Acceptance, it will be delivered
to the Administrative Agent for acceptance and recording by the Administrative Agent. The effective
date for this Assignment and Acceptance (the “Effective Date”) shall be the date of acceptance
hereof by the Administrative Agent, unless otherwise specified on Schedule 1 hereto.

     (5) Upon such acceptance and recording by the Administrative Agent, as of the
Effective Date, (i) the Assignee shall be a party to the Credit Agreement and, to the extent
provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder
and (ii) the Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish
its rights and be released from its obligations under the Credit Agreement (other than its rights
and obligations under the Loan Documents that are specified under the terms of such Loan Documents
to survive the payment in full of the Obligations of the Loan Parties under the Loan Documents to
the extent any claim thereunder relates to an event arising prior to the Effective Date of this
Assignment and Acceptance) and, if this Assignment and Acceptance covers all of the remaining
portion of the rights and obligations of the Assignor under the Credit Agreement, the Assignor
shall cease to be a party thereto.

     (6) Upon such acceptance and recording by the Administrative Agent, from and after
the Effective Date, the Administrative Agent shall make all payments under the Credit Agreement and
the other Loan Documents in respect of the interest assigned hereby (including, without limitation,
all payments of principal, interest and commitment fees with respect thereto) to the Assignee. The
Assignor and the Assignee shall make all appropriate adjustments in payments under the Credit
Agreement and the other Loan Documents for periods prior to the Effective Date directly between
themselves.

     (7) This Assignment and Acceptance shall be governed by, and construed in accordance
with, the laws of the State of New York.

     (8) This Assignment and Acceptance may be executed in any number of counterparts and
by different parties hereto 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. Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by
telecopier or electronic transmission, confirmed promptly in writing, shall be effective as
delivery of an original executed counterpart of this Assignment and Acceptance.

 

 

     IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this Assignment
and Acceptance to be executed by their officers thereunto duly authorized as of the date specified
thereon.

 

 

     Effective Date (if other than date of acceptance by Administrative Agent):

1                     , 200_

Assignor

	 	 	 	 	 	 	 
	 	 	                    , as Assignor
	 	 
	 	 	[Type or print legal name of Assignor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Dated:                      200_	 	 

 

			
	1	 	This date should be no earlier than five Business
Days after the delivery of this Assignment and Acceptance to the Administrative
Agent.

 

 

Assignee

	 	 	 	 	 	 	 
	 	 	                    ,
as Assignee
	 	 
	 	 	[Type or print
legal name of Assignee]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	Dated:                      200_	 	 
	 	 	Domestic Lending Office:	 	 

 

 

Accepted [and Approved]2 this ___

day of                     , 200_

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

	 	 	 	 	 
	By
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

 

			
	2	 	Required if the Assignee is an Eligible Assignee
solely by reason of clause (iv) of the definition of “Eligible
Assignee.”

 

 

SCHEDULE 1

TO

ASSIGNMENT AND ACCEPTANCE

Name of Assignor:                                         

Name of Assignee:                                         

Effective Date of Assignment:                                         

	 	 	 	 	 
	Credit	 	Principal	 	 
	Facility Assigned	 	Amount Assigned	 	Commitment Percentage Assigned3
	 
	 	$                    
	 	___.                    %

 

			
	3	 	Calculate the Commitment Percentage that is assigned
to at least 15 decimal places and show as a percentage of the aggregate
commitments of all Lenders.

 

 

EXHIBIT C

FORM OF SUBSIDIARY GUARANTY SUPPLEMENT

                     __, 200_

JPMorgan Chase Bank, N.A., as Administrative Agent

270 Park Avenue

New York, New York 10017

Attention:

Credit Agreement dated as of January _, 2007 among Navistar International Corporation,

as Borrower; the Subsidiary Guarantors party thereto;

the Lenders named therein; JPMorgan Chase Bank, N.A., as Administrative Agent;

and Credit Suisse Securities (USA) LLC, as Syndication Agent

Ladies and Gentlemen:

     Reference is made to the above-captioned Credit Agreement (such credit Agreement, as in effect
on the date hereof and as it may hereafter be amended, amended and restated, supplemented or
otherwise modified from time to time, being the “Credit Agreement”). The capitalized terms
defined in the Credit Agreement and not otherwise defined herein are used herein as therein
defined.

     Guaranty; Limitation of Liability. a. The undersigned hereby absolutely,
unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled
maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all
Obligations of each other Loan Party now or hereafter existing under or in respect of the Loan
Documents (including, without limitation, any extensions, modifications, substitutions, amendments
or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or
contingent, and whether for principal, interest, premium, fees, indemnities, contract causes of
action, costs, expenses or otherwise (such Obligations being the “Guaranteed Obligations”), and
agrees to pay any and all reasonable expenses (including, without limitation, reasonable fees and
out-of-pocket expenses of counsel) incurred by the Administrative Agent or any other Lender in
enforcing any rights under this Subsidiary Guaranty Supplement or any other Loan Document. Without
limiting the generality of the foregoing, the undersigned’s liability shall extend to all amounts
that constitute part of the Guaranteed Obligations and would be owed by any other Loan Party to any
Lender under or in respect of the Loan Documents but for the fact that they are unenforceable or
not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving
such other Loan Party.

     The undersigned, and by its acceptance of this Subsidiary Guaranty Supplement, the
Administrative Agent and each other Lender, hereby confirms that it is the intention of all such
Persons that this Subsidiary Guaranty Supplement, the Credit Agreement and the
Obligations of the undersigned hereunder and thereunder not constitute a fraudulent transfer
or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act,

 

 

the Uniform
Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to
this Subsidiary Guaranty Supplement, the Credit Agreement and the Obligations of the undersigned
hereunder and thereunder. To effectuate the foregoing intention, the Administrative Agent, the
other Lenders and the undersigned hereby irrevocably agree that the Obligations of the undersigned
under this Subsidiary Guaranty Supplement and the Credit Agreement at any time shall be limited to
the maximum amount as will result in the Obligations of the undersigned under this Subsidiary
Guaranty Supplement and the Credit Agreement not constituting a fraudulent transfer or conveyance.

     The undersigned hereby unconditionally and irrevocably agrees that in the event any payment
shall be required to be made to any Lender under this guaranty or any other guaranty, the
undersigned will contribute, to the maximum extent permitted by applicable law, such amounts to
each other Guarantor and each other guarantor so as to maximize the aggregate amount paid to the
Lenders under or in respect of the Loan Documents.

     Obligations Under the Guaranty. The undersigned hereby agrees, as of the date first
above written, to be bound as a Subsidiary Guarantor by all of the terms and conditions of the
Credit Agreement to the same extent as each of the other Subsidiary Guarantors thereunder. The
undersigned further agrees, as of the date first above written, that each reference in the Credit
Agreement to an “Additional Subsidiary Guarantor” or a “Subsidiary Guarantor” shall also mean and
be a reference to the undersigned, and each reference in any other Loan Document to a “Loan Party”
shall also mean and be a reference to the undersigned.

     Governing Law; Jurisdiction; Waiver of Jury Trial, Etc. b. This Subsidiary Guaranty
Supplement shall be governed by, and construed in accordance with, the laws of the State of New
York.

     The undersigned hereby irrevocably and unconditionally submits, for itself and its property,
to the nonexclusive jurisdiction of any New York State court or any federal court of the United
States of America sitting in New York City, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to this Subsidiary Guaranty Supplement, the Credit
Agreement or any of the other Loan Documents to which it is or is to be a party, or for recognition
or enforcement of any judgment, and the undersigned hereby irrevocably and unconditionally agrees
that all claims in respect of any such action or proceeding may be heard and determined in any such
New York State court or, to the extent permitted by law, in such Federal court. The undersigned
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.
Nothing in this Subsidiary Guaranty Supplement or the Credit Agreement or any other Loan Document
shall affect any right that any party may otherwise have to bring any action or proceeding relating
to this Subsidiary Guaranty Supplement, the Credit Agreement or any of the other Loan Documents to
which it is or is to be a party in the courts of any other jurisdiction.

     The undersigned irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection that it may now or hereafter have to the laying of venue of
any suit, action or proceeding arising out of or relating to this Subsidiary Guaranty Supplement,
the Credit Agreement or any of the other Loan Documents to which it is or is to be

 

 

a party in any
New York State or Federal court. The undersigned hereby irrevocably waives, to the fullest extent
permitted by law, the defense of an inconvenient forum to the maintenance of such suit, action or
proceeding in any such court.

     TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE UNDERSIGNED HEREBY IRREVOCABLY WAIVES ALL RIGHT
TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
OTHERWISE) ARISING OUT OF OR RELATING TO ANY OF THE LOAN DOCUMENTS, THE ADVANCES OR THE ACTIONS OF
THE ADMINISTRATIVE AGENT OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR
ENFORCEMENT THEREOF.

	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	[NAME OF ADDITIONAL SUBSIDIARY GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

 

 

Accepted and Acknowledged this ___

day of                     , 200_

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

	 	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]