Document:

exv10w71

 

Exhibit 10.71

EXECUTION COPY

 

ABL CREDIT AGREEMENT

Dated as of June 15, 2007

among

INTERNATIONAL TRUCK AND ENGINE CORPORATION,

IC CORPORATION,

SST TRUCK COMPANY LP,

IC OF OKLAHOMA, LLC

and

INTERNATIONAL DIESEL OF ALABAMA, LLC,

as Borrowers,

THE LENDERS PARTY HERETO,

CREDIT SUISSE,

as Administrative Agent,

BANK OF AMERICA, N.A.,

as Collateral Agent,

BANC OF AMERICA SECURITIES LLC

and

JPMORGAN CHASE BANK, N.A.,

as Co-Syndication Agents,

and

GENERAL ELECTRIC CAPITAL CORPORATION

and

WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL),

as Co-Documentation Agents

 

CREDIT SUISSE SECURITIES (USA) LLC

and

BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arrangers and Joint Bookrunners,

and

J.P. MORGAN SECURITIES INC.,

as Joint Bookrunner

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS 
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Defined Terms
	 	 	2	 
	 
	 	 	 	 
	SECTION 1.02. Classification of Loans and Borrowings
	 	 	26	 
	 
	 	 	 	 
	SECTION 1.03. Terms Generally
	 	 	26	 
	 
	 	 	 	 
	SECTION 1.04. Accounting Terms; GAAP
	 	 	27	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	THE CREDITS
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. Commitments
	 	 	27	 
	 
	 	 	 	 
	SECTION 2.02. Loans and Borrowings
	 	 	28	 
	 
	 	 	 	 
	SECTION 2.03. Requests for Borrowings
	 	 	28	 
	 
	 	 	 	 
	SECTION 2.04. Protective Advances
	 	 	29	 
	 
	 	 	 	 
	SECTION 2.05. Swingline Loans
	 	 	30	 
	 
	 	 	 	 
	SECTION 2.06. Letters of Credit
	 	 	31	 
	 
	 	 	 	 
	SECTION 2.07. Funding of Borrowings
	 	 	35	 
	 
	 	 	 	 
	SECTION 2.08. Type; Interest Elections
	 	 	35	 
	 
	 	 	 	 
	SECTION 2.09. Termination and Reduction of Commitments
	 	 	36	 
	 
	 	 	 	 
	SECTION 2.10. Repayment of Loans; Evidence of Debt
	 	 	37	 
	 
	 	 	 	 
	SECTION 2.11. Prepayment of Loans
	 	 	38	 
	 
	 	 	 	 
	SECTION 2.12. Fees
	 	 	39	 
	 
	 	 	 	 
	SECTION 2.13. Interest
	 	 	40	 
	 
	 	 	 	 
	SECTION 2.14. Alternate Rate of Interest
	 	 	40	 
	 
	 	 	 	 
	SECTION 2.15. Increased Costs
	 	 	41	 
	 
	 	 	 	 
	SECTION 2.16. Break Funding Payments
	 	 	42	 

ITEC ABL Credit Agreement

i

 

	 	 	 	 	 
	 	 	Page	 
	 
	SECTION 2.17. Taxes
	 	 	42	 
	 
	 	 	 	 
	SECTION 2.18. Payments Generally; Allocation of Proceeds; Sharing of Set-offs
	 	 	44	 
	 
	 	 	 	 
	SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	 	 	46	 
	 
	 	 	 	 
	SECTION 2.20. Illegality
	 	 	47	 
	 
	 	 	 	 
	SECTION 2.21. Reserves; Change in Reserves
	 	 	47	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Organization
	 	 	47	 
	 
	 	 	 	 
	SECTION 3.02. Borrower Information
	 	 	48	 
	 
	 	 	 	 
	SECTION 3.03. Powers
	 	 	48	 
	 
	 	 	 	 
	SECTION 3.04. Governmental Authorization
	 	 	48	 
	 
	 	 	 	 
	SECTION 3.05. Due Execution
	 	 	48	 
	 
	 	 	 	 
	SECTION 3.06. No Action, Suit, Etc.
	 	 	48	 
	 
	 	 	 	 
	SECTION 3.07. No Material Adverse Change
	 	 	49	 
	 
	 	 	 	 
	SECTION 3.08. Consolidated Financials
	 	 	49	 
	 
	 	 	 	 
	SECTION 3.09. Information
	 	 	49	 
	 
	 	 	 	 
	SECTION 3.10. Margin Regulations
	 	 	49	 
	 
	 	 	 	 
	SECTION 3.11. Investment Company Act
	 	 	49	 
	 
	 	 	 	 
	SECTION 3.12. Solvency
	 	 	49	 
	 
	 	 	 	 
	SECTION 3.13. ERISA
	 	 	50	 
	 
	 	 	 	 
	SECTION 3.14. Environmental
	 	 	50	 
	 
	 	 	 	 
	SECTION 3.15. Taxes
	 	 	51	 
	 
	 	 	 	 
	SECTION 3.16. Existing Debt
	 	 	51	 
	 
	 	 	 	 
	SECTION 3.17. Existing Liens
	 	 	51	 
	 
	 	 	 	 
	SECTION 3.18. Ownership Change
	 	 	51	 
	 
	 	 	 	 
	SECTION 3.19. Insurance
	 	 	51	 

ITEC ABL Credit Agreement

ii

 

	 	 	 	 	 
	 	 	Page	 
	 
	SECTION 3.20. Security Interest in Collateral
	 	 	51	 
	 
	 	 	 	 
	SECTION 3.21. Sanctioned Persons
	 	 	52	 
	 
	 	 	 	 
	SECTION 3.22. “In the Business of Selling” Inventory Collateral
	 	 	52	 
	 
	 	 	 	 
	SECTION 3.23. Labor Disputes
	 	 	52	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	CONDITIONS
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Closing Date
	 	 	52	 
	 
	 	 	 	 
	SECTION 4.02. Each Borrowing
	 	 	55	 
	 
	 	 	 	 
	SECTION 4.03. Determinations Under Sections 4.01 and 4.02
	 	 	56	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	AFFIRMATIVE COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Financial Statements; Borrowing Base and Other Information
	 	 	56	 
	 
	 	 	 	 
	SECTION 5.02. Notices of Material Events
	 	 	60	 
	 
	 	 	 	 
	SECTION 5.03. Existence; Conduct of Business
	 	 	61	 
	 
	 	 	 	 
	SECTION 5.04. Payment of Taxes
	 	 	61	 
	 
	 	 	 	 
	SECTION 5.05. Maintenance of Properties
	 	 	61	 
	 
	 	 	 	 
	SECTION 5.06. Books and Records; Inspection Rights; Appraisals; Field
Examinations
	 	 	61	 
	 
	 	 	 	 
	SECTION 5.07. Compliance with Laws
	 	 	62	 
	 
	 	 	 	 
	SECTION 5.08. Use of Proceeds
	 	 	62	 
	 
	 	 	 	 
	SECTION 5.09. Insurance
	 	 	63	 
	 
	 	 	 	 
	SECTION 5.10. Further Assurances
	 	 	63	 
	 
	 	 	 	 
	SECTION 5.11. Establishment and Utilization of the Collection Account
	 	 	63	 
	 
	 	 	 	 
	SECTION 5.12. Speculative Transactions
	 	 	64	 
	 
	 	 	 	 
	SECTION 5.13. Compliance with Modified Borrowing Base
	 	 	64	 

ITEC ABL Credit Agreement

iii

 

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE VI 
	 	 	 	 
	 
	 	 	 	 
	NEGATIVE COVENANTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Debt
	 	 	64	 
	 
	 	 	 	 
	SECTION 6.02. Liens
	 	 	66	 
	 
	 	 	 	 
	SECTION 6.03. Change in Nature of Business
	 	 	67	 
	 
	 	 	 	 
	SECTION
6.04. Mergers, Etc.
	 	 	67	 
	 
	 	 	 	 
	SECTION 6.05. Sales, Etc. of Assets
	 	 	68	 
	 
	 	 	 	 
	SECTION 6.06. Investments in Other Persons
	 	 	69	 
	 
	 	 	 	 
	SECTION 6.07. Restricted Payments
	 	 	71	 
	 
	 	 	 	 
	SECTION 6.08. Accounting Changes
	 	 	71	 
	 
	 	 	 	 
	SECTION 6.09. Prepayments, Etc., of Debt
	 	 	71	 
	 
	 	 	 	 
	SECTION
6.10. Partnerships, Etc.
	 	 	72	 
	 
	 	 	 	 
	SECTION 6.11. Payment Restrictions Affecting Borrowers
	 	 	72	 
	 
	 	 	 	 
	SECTION 6.12. Transactions with Affiliates
	 	 	72	 
	 
	 	 	 	 
	SECTION 6.13. Amendment of Material Documents
	 	 	72	 
	 
	 	 	 	 
	SECTION 6.14. Sales of Receivables
	 	 	72	 
	 
	 	 	 	 
	SECTION 6.15. Designation of Designated Senior Debt
	 	 	72	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	EVENTS OF DEFAULT
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Events of Default
	 	 	73	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	THE AGENTS
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. The Agents
	 	 	76	 
	 
	 	 	 	 
	SECTION 8.02. Indemnification by Lenders
	 	 	78	 

ITEC ABL Credit Agreement

iv

 

	 	 	 	 	 
	 	 	Page	 
	 
	ARTICLE IX 
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Notices
	 	 	78	 
	 
	 	 	 	 
	SECTION 9.02. Waivers; Amendments
	 	 	80	 
	 
	 	 	 	 
	SECTION 9.03. Expenses; Indemnity; Damage Waiver
	 	 	82	 
	 
	 	 	 	 
	SECTION 9.04. Successors and Assigns
	 	 	84	 
	 
	 	 	 	 
	SECTION 9.05. Survival
	 	 	88	 
	 
	 	 	 	 
	SECTION 9.06. Counterparts; Integration; Effectiveness
	 	 	88	 
	 
	 	 	 	 
	SECTION 9.07. Severability
	 	 	88	 
	 
	 	 	 	 
	SECTION 9.08. Right of Setoff
	 	 	89	 
	 
	 	 	 	 
	SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	 	 	89	 
	 
	 	 	 	 
	SECTION 9.10. WAIVER OF JURY TRIAL
	 	 	90	 
	 
	 	 	 	 
	SECTION 9.11. Headings
	 	 	90	 
	 
	 	 	 	 
	SECTION 9.12. Confidentiality
	 	 	90	 
	 
	 	 	 	 
	SECTION 9.13. Lender Obligations Several; Violation of Law
	 	 	90	 
	 
	 	 	 	 
	SECTION 9.14. USA PATRIOT Act
	 	 	91	 
	 
	 	 	 	 
	SECTION 9.15. Disclosure
	 	 	91	 
	 
	 	 	 	 
	SECTION 9.16. Appointment for Perfection
	 	 	91	 
	 
	 	 	 	 
	SECTION 9.17. Interest Rate Limitation
	 	 	91	 
	 
	 	 	 	 
	SECTION 9.18. Borrower Liability
	 	 	91	 
	 
	 	 	 	 
	SECTION 9.19. Agency of ITEC as Administrative Borrower for Each Other
Borrower
	 	 	93	 
	 
	 	 	 	 
	SECTION 9.20. Additional Borrowers
	 	 	93	 
	 
	 	 	 	 
	SECTION 9.21. Obligations Absolute
	 	 	93	 
	 
	 	 	 	 
	SECTION 9.22. Express Waivers and Representations by Borrowers
	 	 	94	 

ITEC ABL Credit Agreement

v

 

	 	 	 
	SCHEDULES:
	 	 
	 
	 	 
	Commitment Schedule
	 	 
	Schedule 3.02

	 	- Borrowers
	Schedule 3.06

	 	- Disclosed Matters
	Schedule 3.16

	 	- Existing Debt
	Schedule 3.17

	 	- Existing Liens
	Schedule 3.19

	 	- Insurance
	 
	 	 
	EXHIBITS:
	 	 
	 
	 	 
	Exhibit A

	 	- Form of Administrative Questionnaire
	Exhibit B

	 	- Form of Assignment and Assumption
	Exhibit C

	 	- Form of Borrowing Base Certificate
	Exhibit D

	 	- Form of Perfection Certificate
	Exhibit E

	 	- Form of Letter of Credit Request
	Exhibit F

	 	- Form of Borrowing Request
	Exhibit G

	 	- Form of Promissory Note
	Exhibit H

	 	- Form of Security Agreement

ITEC ABL Credit Agreement

vi

 

ABL CREDIT AGREEMENT

          ABL CREDIT AGREEMENT (this “Agreement”), dated as of June 15, 2007, among
INTERNATIONAL TRUCK AND ENGINE CORPORATION, a Delaware corporation (“ITEC”), IC
CORPORATION, an Arkansas corporation (“IC”), SST TRUCK COMPANY LP, a Delaware limited
partnership (“SST”), IC OF OKLAHOMA, LLC, a Delaware limited liability company
(“ICO”), INTERNATIONAL DIESEL OF ALABAMA, LLC, a Delaware limited liability company
(“IDA” and, together with IC, ITEC, SST and ICO and any other Person joined to this Credit
Agreement as a “Borrower” in accordance with the terms herein, each a “Borrower”
and collectively, the “Borrowers”), THE LENDERS (as hereinafter defined) from time to time
party hereto, CREDIT SUISSE, as administrative agent for the Lenders hereunder (“Credit
Suisse” or, together with any successor administrative agent appointed pursuant hereto, in such
capacity and including any permitted successor or assign, the “Administrative Agent”), BANK
OF AMERICA, N.A., as collateral agent for the Lenders hereunder (“BofA” or, together with
any successor collateral agent appointed pursuant hereto, in such capacity and including any
permitted successor or assign, the “Collateral Agent”), BANC OF AMERICA SECURITIES LLC
(“BAS”) and JPMORGAN CHASE BANK, N.A. (“JPM Bank”), as co-syndication agents (in
such capacity and including any permitted successor or assign, each a “Syndication Agent”),
GENERAL ELECTRIC CAPITAL CORPORATION and WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL), as
co-documentation agents (in such capacity and including any permitted successor or assign, each a
“Documentation Agent”), CREDIT SUISSE SECURITIES (USA) LLC (“CS Securities”), BAS
and J.P. MORGAN SECURITIES INC. (“JPMS”), as joint lead bookrunners (in such capacity, each
a “Bookrunner”), and CS Securities and BAS, as joint lead arrangers (in such capacity, each
an “Arranger”).

PRELIMINARY STATEMENTS

          (1) The Borrowers have requested that (a) the Lenders extend credit in the form of Revolving
Loans from time to time during the Availability Period, in an aggregate principal amount at any
time outstanding not in excess of $200,000,000, (b) the Swingline Lender extend credit, from time
to time during the Availability Period, in the form of Swingline Loans, in an aggregate principal
amount at any time outstanding not in excess of $25,000,000, and (c) the Issuing Banks issue
Letters of Credit, in an aggregate face amount at any time outstanding not in excess of
$200,000,000, to support payment obligations incurred in the ordinary course of business by the
Borrowers (collectively, the “Facility”), so long as, in all cases, the aggregate Exposures
do not exceed the lesser of (i) the Available Commitments and (ii) the Modified Borrowing Base
(subject to Section 2.04).

          (2) The proceeds of the Revolving Loans and the Swingline Loans are to be used to provide
working capital financing and financing for the general corporate purposes of the Borrowers.

          (3) The Lenders and the Swingline Lender are willing to extend such credit to the Borrowers,
and the Issuing Banks are willing to issue Letters of Credit for the account of the Borrowers, in
each case on the terms and subject to the conditions set forth herein. Accordingly, the parties
hereto herein agree as follows (with capitalized terms used but not defined in these Preliminary
Statements or in the preamble above to have the meanings set forth in Article I below):

ITEC ABL Credit Agreement

- 1 -

 

ARTICLE I

DEFINITIONS

          SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the
meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

          “Accommodation Payment” means a repayment by a Borrower under this Agreement, as a
joint and several obligor, of any of the Obligations constituting Loans made to another Borrower
hereunder or other Obligations incurred directly and primarily by any other Borrower.

          “Account” has the meaning assigned to such term in the Security Agreement.

          “ACH” means automated clearing house transfers.

          “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.

          “Adjustment Date” means the first day of each February, May, August, and November as
applicable.

          “Administrative Agent” has the meaning assigned to such term in the preamble to this
Agreement.

          “Administrative Borrower” has the meaning assigned to such term in Section 9.19 of
this Agreement.

          “Administrative Questionnaire” means an Administrative Questionnaire in the form of
Exhibit A.

          “Affiliate” means, as applied to any Person, any other Person (other than, in the
case of a Borrower, any other Borrower) directly or indirectly Controlling, Controlled by, or
under common Control with, that Person.

          “Agents” means the Administrative Agent and the Collateral Agent.

          “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 Borrower 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 Borrower was the sole “Affected Party.”

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds

ITEC ABL Credit Agreement

- 2 -

 

Effective Rate shall be effective from and including the effective date of such change in the
Prime Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Percentage” means, with respect to any Lender, at any time, a percentage
equal to a fraction the numerator of which is such Lender’s Commitment and the denominator of
which is the aggregate Commitments. If the commitment of each Lender to make Loans and the
obligation of the Issuing Banks to issue Letters of Credit have been terminated pursuant to this
Agreement or if the aggregate Commitments have expired, then the Applicable Percentage of each
Lender shall be determined based on the Applicable Percentage of such Lender most recently in
effect, giving effect to any subsequent assignments.

          “Applicable Rate” means, for any day, with respect to any ABR Loan or LIBOR Loan, the
applicable rate per annum set forth below under the caption “LIBOR Spread”, based upon the Average
Historical Excess Availability as of the most recent Adjustment Date; provided that until the first
Adjustment Date occurring at least six full months after the Closing Date, the “Applicable Rate”
shall be the applicable rate per annum set forth below in Category 2:

	 	 	 	 	 	 	 	 	 
	Average Historical	 	LIBOR	 	 
	Excess Availability	 	Spread	 	ABR Spread
	Category 1
	 	 	 	 	 	 	 	 
	Average Historical Excess Availability
greater than or equal to $150,000,000.
	 	 	1.25	%	 	 	0.25	%
	 
	 	 	 	 	 	 	 	 
	Category 2
	 	 	 	 	 	 	 	 
	Average Historical Excess Availability
Greater than or equal to $50,000,000, but
less than $150,000,000.
	 	 	1.50	%	 	 	0.50	%
	 
	 	 	 	 	 	 	 	 
	Category 3
	 	 	 	 	 	 	 	 
	Average Historical Excess Availability less
than $50,000,000.
	 	 	1.75	%	 	 	0.75	%

The Applicable Rate shall be adjusted quarterly on a prospective basis on each Adjustment Date
based upon the Average Historical Excess Availability in accordance with the table above; provided,
however, that if an Event of Default shall have occurred and be continuing at the time any
reduction in the Applicable Rate would otherwise be implemented, no such reduction shall be
implemented until the date on which such Event of Default shall have been cured or waived.

          “Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course and 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, advises or manages a Lender.

          “Arranger” has the meaning assigned to such term in the preamble to this
Agreement.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, substantially in the form of Exhibit B or any
other form approved by the Administrative Agent.

ITEC ABL Credit Agreement

- 3 -

 

          “Availability Period” means the period from and including the Closing Date to
but excluding the Maturity Date.

          “Availability Reserves” means, without duplication of any other Reserves or items that
are otherwise addressed or excluded through eligibility criteria, such reserves as the Agents from
time to time determine in their Permitted Discretion as being appropriate reasonably to reflect any
impediments to the realization upon the Collateral consisting of Eligible Inventory included in the
Borrowing Base or otherwise in accordance with Section 2.21.

          “Available Commitments” means, at any time, an amount equal to (a) the aggregate
Commitments then in effect, minus (b) the Liquidity Block Amount.

          “Average Historical Excess Availability” means, at any Adjustment Date, the average
daily Excess Availability for the three month period immediately preceding such Adjustment Date
(with the Borrowing Base at such time for any such day used to determine “Excess Availability”
calculated by reference to the most recent Borrowing Base Certificate delivered to the
Administrative Agent on or prior to such day pursuant to Section 5.01(c)).

          “Banking Services” means each and any of the following bank services provided to any
Borrower at the written request of such Borrower by the Administrative Agent, any Lender or any of
their Affiliates: (a) commercial credit cards, and (b) stored value cards and treasury management
services (including, without limitation, overdraft, controlled disbursement, ACH transactions,
return items and interstate depository network services).

          “Banking Services Obligations” of the Borrowers means any and all obligations of the
Borrowers, whether absolute or contingent and however and whenever created, arising, evidenced or
acquired (including all renewals, extensions and modifications thereof and substitutions
therefor), in connection with Banking Services.

          “Bankruptcy Law” means Title 11, U.S. Code, as amended from time to time, or any
similar foreign, federal or state law for the relief of debtors, including all rules and
regulations promulgated thereunder.

          “BAS” has the meaning assigned to such term in the preamble to this
Agreement.

          “Blackout Period” means the first four Business Days of a calendar month or such
lesser period during which ITEC’s computer system is unavailable due to month-end file maintenance
and closing procedures.

          “Blocked Cash Amount” means the amount of unrestricted cash and Cash Equivalents of
the Borrowers, in each case deposited or held in a segregated depository account or investment
account that is subject to a blocked account or control agreement reasonably satisfactory to the
Collateral Agent in favor of the Collateral Agent (any such account, a “Blocked Cash
Account”).

          “Board” means the Board of Governors of the Federal Reserve System of the United
States of America (or any successor thereto).

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

ITEC ABL Credit Agreement

- 4 -

 

          “BofA” has the meaning assigned to such term in the preamble to this
Agreement.

          “Borrower” has the meaning assigned to such term in the preamble to this
Agreement.

          “Borrowing” means any (a) Revolving Loans of the same Type made, converted or
continued on the same date and, in the case of LIBOR Loans, as to which a single Interest Period
is in effect, (b) Swingline Loan or (c) Protective Advance.

          “Borrowing Base” means, at any time, an amount equal to the Inventory Component
minus, without duplication, the then-current amount of all Availability Reserves and other
Reserves (including any Inventory Reserves not already reflected in the determination of Net
Orderly Liquidation Value, Cost or market value, as applicable) as the Agents may at any time and
from time to time in the exercise of their Permitted Discretion establish; provided, that (a)
“FMI/Red Tag Items” shall not constitute more than $20,000,000 of the total Borrowing Base, and
(b) used trucks shall not constitute more than $100,000,000 of the total Borrowing Base. The
Borrowing Base at any time shall be determined by reference to the most recent Borrowing Base
Certificate delivered to the Administrative Agent pursuant to Section 5.01(c).

          “Borrowing Base Certificate” means a certificate, signed and certified as accurate
and complete in all material respects by a Financial Officer of the Administrative Borrower on
behalf of the Borrowers, in substantially the form of Exhibit C or another form which is
acceptable to the Agents in their reasonable discretion.

          “Borrowing Request” means a request by a Borrower for a Borrowing in accordance with
Section 2.03 and substantially in the form attached hereto as Exhibit F, or such other
form as shall be approved by the Administrative Agent.

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed; provided
that, when used in connection with a LIBOR Loan, the term “Business Day” shall also
exclude any day on which banks are not open for dealings in dollar deposits in the London
interbank market.

          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the amount thereof accounted for as a liability determined in accordance
with GAAP; provided, that a change in GAAP or the interpretation thereof shall not result in any
lease of real property that is, or would be, characterized by a Person as an operating lease in
accordance with GAAP in effect on the date hereof being considered a Capital Lease Obligation.

          “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 any agency or instrumentality of the United States government; provided, that
the full faith and credit of the United States, is pledged in support of those securities)
having maturities of not more than 24 months from the date of acquisition;

ITEC ABL Credit Agreement

- 5 -

 

     (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; 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 States of America, any state
thereof or the District of Columbia; 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, or (ii)
money market funds which are rated at least “AAA” from S&P; or

     (h) United States dollars.

          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.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or any

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Issuing Bank (or, for purposes of Section 2.15(b), by any lending office of such Lender or by such
Lender’s or such Issuing Bank’s holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or issued after the
date of this Agreement (other than any such request, guideline or directive to comply with any
law, rule or regulation that was in effect on the date of this Agreement).

          “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 Navistar or any Borrower is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Navistar
representing 35% or more of the combined voting power of Navistar’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 Navistar: individuals
who, on the date hereof, constitute such 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 Navistar) whose appointment or election by such Board of
Directors or nomination for election by such Person’s stockholders was approved 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 with respect to directors whose
appointment of election to such Board of Directors was made by the holders of Navistar’s
nonconvertible junior preference stock, series B, by the holders of such preference stock;

     (c) the shareholders of Navistar or any Borrower shall approve any Plan of Liquidation
(whether or not otherwise in compliance with the provisions hereof), other than (i) a
dissolution or winding up of a Borrower under which all of the assets of such Borrower are
transferred to another Borrower or (ii) as otherwise expressly permitted herein;

     (d) Navistar consolidates with or merges with or into another Person, other than a
merger or consolidation of Navistar in which the holders of the common stock of Navistar
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;

     (e) Navistar or any Borrower, 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 Navistar and its
Restricted Subsidiaries or any Borrower and its Restricted Subsidiaries (determined on a
Consolidated basis) to any Person; provided, that neither (i) the merger of a Restricted
Subsidiary of a Borrower into a 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 Navistar or any
Subsidiary thereof in connection with the Facility nor (iv) the sale, conveyance, transfer
or lease otherwise permitted hereunder shall be deemed to be a Change of Control; or

     (f) (i) ITEC ceases to be a wholly-owned direct or indirect Subsidiary of Navistar, or
(ii) any of IC, SST, ICO or IDA cease to be a wholly-owned direct or indirect Subsidiary of
ITEC.

ITEC ABL Credit Agreement

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          “Class”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are Loans, Swingline Loans or Protective Advances.

          “Closing Date” means June 15, 2007, which is the date on which the conditions
specified in Section 4.01 are satisfied (or are waived in accordance with Section 9.02).

          “Code” means the Internal Revenue Code of 1986, as amended from time to
time.

          “Collateral” means (a) any and all Inventory and the proceeds thereof (other than
Receivables sold by a Borrower pursuant to, and in accordance with, a Master Intercompany
Agreement); (b) any and all obligations to pay and any other “payment intangibles” (as defined in
the UCC) arising from the sale of Receivables by a Borrower under any Master Intercompany
Agreement, and all proceeds derived therefrom; and (c) any and all related property owned by any
Borrower subject to a Lien under the Collateral Documents (including, without limitation, the
Collection Account, the Blocked Cash Account and the LC Collateral Account) and any and all other
Inventory of any Borrower, now existing or hereafter acquired, that may at any time be or become
subject to a Lien in favor of the Collateral Agent, on behalf of itself and the Lenders, to secure
the Secured Obligations.

          “Collateral Access Agreement” has the meaning assigned to such term in the Security
Agreement.

          “Collateral Agent” has the meaning assigned to such term in the preamble to this
Agreement.

          “Collateral Documents” means, collectively, the Security Agreement, any Collateral
Access Agreement, any account control agreement and any other documents granting and/or perfecting
a Lien upon the Collateral as security for payment of the Secured Obligations.

          “Collection Account” has the meaning assigned to such term in Section 5.11.

          “Commitment” means, with respect to each Lender, (a) the commitment of such Lender to
make Revolving Loans, acquire participations in Letters of Credit, make Protective Advances and
make Swingline Loans hereunder, expressed as an amount representing the maximum possible aggregate
amount of such Lender’s Exposure hereunder, as such commitment may be (a) reduced from time to
time pursuant to Section 2.09, and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s
Commitment is set forth on the Commitment Schedule, or in the Assignment and Assumption
pursuant to which such Lender shall have assumed its Commitment, as applicable. The initial
aggregate amount of the Lenders’ Commitments is $200,000,000.

          “Commitment Fee Rate” means (a) for any day from the Closing Date until the first
Adjustment Date occurring at least six full months after the Closing Date, a rate equal to 0.375%
per annum, and (b) for any day thereafter, the applicable rate per annum set forth below based
upon the Total Utilization of Commitments:

	 	 	 	 	 
	Total Utilization of Commitments	 	Commitment Fee Rate
	Greater than or equal to $100,000,000
	 	 	0.250	%
	 
	 	 	 	 
	Less than $100,000,000
	 	 	0.375	%

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The Commitment Fee Rate shall be adjusted quarterly on a prospective basis on each Adjustment Date
in accordance with the table above, based on the average for the immediately preceding quarter of
the Total Utilization of Commitments; provided, however, that if an Event of Default shall have
occurred and be continuing at the time any reduction in the Commitment Fee Rate would otherwise be
implemented, no such reduction shall be implemented until the date on which such Event of Default
shall have been cured or waived.

          “Commitment Schedule” means the Schedule attached hereto and identified as
such.

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

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power or by contract. “Controlling” and “Controlled” have meanings
correlative thereto.

          “Cost” means the cost of purchases of Inventory determined according to the
accounting policies used in the preparation of the Borrowers’ financial statements (pursuant to
which the average cost method of accounting is utilized for substantially all merchandise
Inventories).

          “Credit Extensions” means each of (a) a Borrowing and (b) an LC Credit
Extension.

          “CS” has the meaning assigned to such term in the preamble to this
Agreement.

          “CS Securities” has the meaning assigned to such term in the preamble to
this Agreement.

          “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 Capital Lease Obligations of such Person, (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 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 shall not include customary contractual indemnities or warranties.

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

ITEC ABL Credit Agreement

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          “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.

          “Defaulting Lender” means any Lender that has (a) defaulted in its obligation to make
a Revolving Loan or to fund its participation in a Letter of Credit, Swingline Loan or Protective
Advance required to be made or funded by it hereunder, (b) notified the Administrative Agent or a
Borrower in writing that it does not intend to satisfy any such obligation, or (c) become
insolvent or the assets or management of which has been taken over by any Governmental Authority.

          “Disclosed Matters” has the meaning assigned to it in Section 4.01(1).

          “Disclosure Filings” means public filings made by Navistar 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.

          “Document” has the meaning set forth in Article 9 of the UCC.

          “Dollars” or “$” refers to lawful money of the United States of
America.

          “Eligible Assignee” means (a) a Lender, (b) a commercial bank, insurance company or
company engaged in the business of making commercial loans or a commercial finance company, which
Person, together with its Affiliates, has a combined capital and surplus in excess of
$1,000,000,000 (provided, that for purposes of determining eligibility with respect to Section
9.04(b)(i)(A), such Person, together with its Affiliates, shall only be required to have a
combined capital and surplus of at least $500,000,000 to the extent that an Event of Default has
occurred and is continuing at the time of such assignment, in accordance with the terms hereof),
(c) any Affiliate of a Lender under common control with such Lender, or (d) an Approved Fund of a
Lender; provided that in any event, “Eligible Assignee” shall not include (i) any natural person,
(ii) any Defaulting Lender, or (iii) Navistar or any Borrower or any Affiliate of any thereof.

          “Eligible In-Transit Inventory” means, at any time, without duplication of other
Eligible Inventory, Inventory which has been shipped from a domestic location of any Borrower for
receipt by any Borrower or a processor within the U.S., within ten days of the date of shipment,
but, in either case, which has not yet been delivered to such Borrower or processor, and (a) which
otherwise would constitute Eligible Inventory; (b) for which the purchase order is in the name of
a Borrower and title has passed to such Borrower; and (c) which is insured in accordance with the
terms of this Agreement.

          “Eligible Inventory” means, at any time, all Inventory (including, without
duplication, Eligible In-Transit Inventory) of the Borrowers; provided, however, that Eligible
Inventory shall not include any Inventory:

          (a) which is not subject to a first priority (subject to Permitted Liens arising by
operation of law, as described in clauses (a) and (b) of the definition of Permitted Liens)
perfected Lien in favor of the Collateral Agent;

          (b) which is subject to any Lien other than (i) a Lien in favor of the Collateral
Agent, (ii) a Permitted Lien arising by operation of law, as described in clauses (a) and
(b) of the definition of “Permitted Liens”, (iii) a Landlord Lien as to which either (x) a
subordination agreement reasonably satisfactory to the Collateral Agent has been obtained
or

ITEC ABL Credit Agreement

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(y) a Landlord Lien Reserve applies or (iv) a mechanics lien as to which an appropriate
Reserve has been established by the Agents in their Permitted Discretion;

          (c) which is (i) Slow Moving or (ii) obsolete, unmerchantable, defective, or unfit for sale
as determined in the ordinary course of business of the Borrowers consistent with past practices;

          (d) except as otherwise agreed by the Agents, which does not conform in all material respects
to the representations and warranties contained in this Agreement or the Security Agreement;

          (e) which is not owned only by one or more Borrowers;

          (f) which constitutes packaging and shipping material, supplies, samples, prototypes,
displays or display items, bill-and-hold goods, goods that are returned or marked for return (but
not held for resale and not otherwise constituting Eligible Inventory) or repossessed, or which
constitutes goods held on consignment or goods which are not of a type held for sale in the
ordinary course of business;

          (g) which is not located in the U.S. or is in transit (other than Eligible In-Transit
Inventory);

          (h) which is located at any location leased by a Borrower, unless (i) the lessor has
delivered to the Collateral Agent a Collateral Access Agreement as to such location or (ii) up to
a three month Reserve for rent, charges, and other amounts due or to become due with respect to
such location has been established by the Agents in their Permitted Discretion;

          (i) which is located in any third party warehouse or is in the possession of a bailee (other
than a third party processor) and is not evidenced by a Document, unless (i) such warehouseman or
bailee has delivered to the Collateral Agent a Collateral Access Agreement and such other
documentation as the Agents may reasonably require or (ii) an appropriate Reserve (not to exceed
three months of charges) or lien subordination has been established by the Agents in their
Permitted Discretion;

          (j) which is being processed offsite at a third party location or outside processor or is in
transit (in each case, other than Eligible In-Transit Inventory) to or from said third party
location or outside processor unless an appropriate Reserve (not to exceed the total amount payable
to such processor based on monthly sales) has been established by the Agents in their Permitted
Discretion;

          (k) which consists of used trucks which are located in, or originated from, a state which
requires such used trucks to be re-titled upon sale and such used trucks have not been so
re-titled;

          (l) which is the subject of a consignment for sale on behalf of a Borrower as consignor
unless a consignment agreement, security agreement, and UCC filing in each case reasonably
satisfactory to the Agents is in place with respect to such Inventory;

          (m) which contains or bears any intellectual property rights licensed to any Borrower by any
Person other than a Borrower unless the Collateral Agent may sell or otherwise dispose of such
Inventory without (i) infringing the rights of such licensor, (ii) violating any

ITEC ABL Credit Agreement

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contract with such licensor, or (iii) incurring any liability with respect to payment
of royalties other than royalties incurred pursuant to sale of such Inventory under the
current licensing agreement relating thereto;

          (n) which is not reflected in a current perpetual inventory report of a Borrower
(other than with respect to Eligible In-Transit Inventory);

          (o) which is acquired in connection with an acquisition permitted pursuant to Section
6.06 hereof, to the extent the Agents shall not have received a Report in respect of such
Inventory, which Report shows results reasonably satisfactory to the Agents; or

          (p) which falls into a category of ineligibility as may be established by the Agents
in their Permitted Discretion; provided that the Agents shall have provided the
Administrative Borrower at least five Business Days’ prior written notice of any such
establishment.

          “Engagement Letter” means that certain Engagement Letter, dated as of April 20, 2007,
by and among Navistar, the Administrative Borrower, Credit Suisse, CS Securities, BofA, BAS, JPM
Bank and JPMS.

          “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 Laws” means all laws, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, notices, promulgated or entered into by any Governmental
Authority, relating to the environment, preservation or reclamation of natural resources, the
management, release or threatened release of any Hazardous Material or to health and safety
matters.

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

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity
ownership interests in a Person, and any warrants, options or other rights entitling the holder
thereof to purchase or acquire any such equity interest.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

          “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member
of the controlled group of any Borrower, or under common control with any Borrower, 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

ITEC ABL Credit Agreement

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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 provisions 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 Borrower or
any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal
by any Borrower 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 provisions 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.

          “Event of Default” has the meaning assigned to such term in Section 7.01.

          “Excess Availability” means, at any time, an amount equal to (a) the lesser of the
applicable aggregate Commitments at such time and the applicable Borrowing Base at such time (as
determined by reference to the most recent Borrowing Base Certificate required to be delivered to
the Administrative Agent pursuant to Section 5.01(c)), minus (b) the Liquidity Block Amount, minus
(c) the aggregate Exposures of all Lenders at such time.

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

          “Excluded Taxes” means, with respect to any Agent, any Lender, any Issuing Bank or any
other recipient of any payment to be made by or on account of any obligation of the Administrative
Borrower or any other Borrower hereunder, (a) income or franchise taxes imposed on (or measured by)
its net income by the United States of America, or by the jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the case of any Lender,
in which its applicable lending office is located, (b) any branch profits taxes imposed by the
United States of America or any similar tax imposed by any other jurisdiction in which the
Administrative Borrower or any other Borrower is located and (c) in the case of a Foreign Lender
(other than an assignee pursuant to a request by a Borrower under Section 2.19(b)), any withholding
tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender
becomes a party to this Agreement (or designates a new lending office) or is attributable to such
Foreign Lender’s failure to comply with Section 2.17(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office
(or assignment), to receive additional amounts from the Administrative Borrower or any other
Borrower with respect to such withholding tax pursuant to Section 2.17(a).

          “Existing Debt” means Debt of each Borrower outstanding immediately before the
occurrence of the Closing Date.

          “Exposure” means, with respect to any Lender at any time, the sum of (a) the
outstanding principal amount of such Lender’s Revolving Loans, (b) its LC Exposure, (c) its
Applicable Percentage of the aggregate principal amount of Swingline Loans outstanding at such
time, and (d) its Applicable Percentage of the aggregate principal amount of Protective Advances
outstanding at such time.

ITEC ABL Credit Agreement

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          “Facility” has the meaning assigned to such term in the Preliminary Statements
to this Agreement.

          “Facility Obligations” means all unpaid principal of and accrued and unpaid interest
on the Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements,
indemnities and other obligations of the Borrowers to the Lenders or to any Lender, the Agents,
any Issuing Bank or any Indemnified Party arising under the Loan Documents.

          “Federal Funds Effective Rate” means, for any day, 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 on the
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.

          “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 Navistar and its subsidiaries or to
dealers or retail customers of Navistar and its subsidiaries.

          “Financial Officer” of any Person means the chief financial officer, treasurer, vice
president of finance, controller or assistant treasurer of such Person.

          “Fiscal Year” means a fiscal year of the Borrowers ending on October 31 in any
calendar year.

          “Foreign Lender” means a person that is not a “United States person” within the
meaning of Section 7701(a)(30) of the Code.

          “Funding Account” has the meaning assigned to such term in Section 4.02(e).

          “GAAP” means generally accepted accounting principles in the United States of America
in effect and applicable to that accounting period in respect of which reference to GAAP is being
made, subject to the provisions of Section 1.04.

          “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), 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

ITEC ABL Credit Agreement

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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.

          “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 assigned to such term in Section
9.03(b).

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Information” has the meaning set forth in Section 3.09.

          “Information Memorandum” means the Confidential Information Memorandum, dated May,
2007, relating to the Borrowers and the Transactions.

          “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 Election Request” means a request by a Borrower to convert or continue a
Borrowing in accordance with Section 2.08.

          “Interest Payment Date” means (a) with respect to any ABR Loan (including any
Swingline Loan), the last Business Day of each March, June, September and December (commencing
September 28, 2007) and the Maturity Date and (b) with respect to any LIBOR Loan, the last day of
the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a
LIBOR Borrowing with an Interest Period of more than three months’ duration, each day that would
have been an Interest Payment Date had successive Interest Periods of three months’ duration been
applicable to such Borrowing.

          “Interest Period” means (a) with respect to any LIBOR Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the

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calendar month that is one, two, three or six months (or, to the extent available to each
Lender, nine or twelve months, or such other period as may be agreed to by all the Lenders)
thereafter, as the applicable Borrower may elect; provided that (i) if any Interest Period would
end on a day other than a Business Day, such Interest Period shall be extended to the next
succeeding Business Day unless such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day and (ii)
any Interest Period that commences on the last Business Day of a calendar month (or on a day for
which there is no numerically corresponding day in the last calendar month of such Interest
Period) shall end on the last Business Day of the last calendar month of such Interest Period. For
purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is
made and thereafter shall be the effective date of the most recent conversion or continuation of
such Borrowing.

          “Inventory” has the meaning assigned to such term in the Security Agreement.

          “Inventory Component” means the lesser of (a) 65% of Eligible Inventory, valued at
the lower of Cost and market value, and (b) 85% of the Net Orderly Liquidation Value of Eligible
Inventory.

          “Inventory Reserves” means (a) such reserves as may be established from time to time
by the Agents, in their Permitted Discretion, with respect to changes in the determination of the
saleability, at retail, of the Eligible Inventory or which reflect such other factors as
negatively affect the market value of the Eligible Inventory, (b) Shrink Reserves, (c) such
Reserves as may be established from time to time by the Agents, in their Permitted Discretion,
with respect to export parts inventory, based on the Borrowers’ monthly sales of export parts,
and/or (d) such Reserves as shall have been established from time to time by the Agents in
accordance with Section 2.21.

          “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 each of Credit Suisse, BofA, JPM Bank and any other Lender which
at the request of a Borrower and with the consent of the Administrative Agent (not to be
unreasonably withheld) agrees to become an Issuing Bank. Each Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in
which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of
Credit issued by such Affiliate.

          “January Credit Agreement” means the Credit Agreement, as amended through the date
hereof, dated January 19, 2007, among, inter alia, Navistar, the subsidiary guarantors of Navistar
from time to time party thereto, JPM Bank, as administrative agent, and the lenders from time to
time party thereto as amended or otherwise modified from time to time in accordance with and
subject to Section 6.13 hereof.

          “January Credit Facility” means the $1,500,000,000 senior term loan and revolving
facilities provided for under the January Credit Agreement.

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          “JPM Bank” has the meaning assigned to such term in the preamble to
this Agreement.

          “JPMS” has the meaning assigned to such term in the preamble to this
Agreement.

          “Landlord Lien” means any Lien of a landlord on any Borrower’s property, granted by
statute.

          “Landlord Lien Reserve” means an amount equal to (a) up to three months’ rent for all
of the Borrowers’ leased locations where Eligible Inventory is located in each Landlord Lien
State, other than leased locations with respect to which the Collateral Agent shall have received
a landlord’s waiver or subordination of lien in form reasonably satisfactory to the Agents or (b)
zero, to the extent the Agents shall have otherwise waived the landlord waiver or subordination or
Reserve.

          “Landlord Lien State” means (a) each of Washington, Virginia and Pennsylvania and (b)
such other state(s) in which a landlord’s claim for rent has priority by operation of law over the
Lien of the Collateral Agent in any of the Collateral consisting of Eligible Inventory.

          “LC Collateral Account” has the meaning assigned to such term in Section
2.06(j).

          “LC Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof (in the face amount thereof) or any increase in the face amount thereof.

          “LC Disbursement” means a payment made by an Issuing Bank pursuant to a drawing on a
Letter of Credit.

          “LC Exposure” means, at any time of determination, the sum of (a) the aggregate
undrawn amount of all outstanding Letters of Credit at such time, plus (b) the aggregate amount of
all LC Disbursements that have not yet been reimbursed or converted to Loans by or on behalf of
the Administrative Borrower or any other Borrower at such time, less (c) the amount then on
deposit in the LC Collateral Account. The LC Exposure of any Lender at any time shall be its
Applicable Percentage of the total LC Exposure at such time.

          “Lead Arranger” has the meaning assigned to such term in the preamble to this
Agreement.

          “Lenders” means the Persons listed on the Commitment Schedule and any other
Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than
any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless
the context otherwise requires, the term “Lenders” includes the Swingline Lender.

          “Letter of Credit” means any standby or commercial letter of credit issued pursuant
to this Agreement.

          “Letter of Credit Request” has the meaning assigned to such term in Section
2.06(b).

          “LIBOR” means, with respect to any Interest Period applicable to any LIBOR Borrowing,
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

ITEC ABL Credit Agreement

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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.

          “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.

          “Liquidation” means the exercise by the Administrative Agent or Collateral Agent of
those rights and remedies accorded to such Agents under the Loan Documents and applicable law as a
creditor of the Borrowers with respect to the realization on the Collateral during the continuation
of an Event of Default, or the conduct by the Borrowers acting with the consent of the
Administrative Agent, of any public, private or going out of business sale or other disposition of
the Collateral for the purpose of liquidating the Collateral. Derivations of the word “Liquidation”
(such as “Liquidate”) are used with like meaning in this Agreement.

          “Liquidity Block Amount” means an amount equal to $15,000,000; provided, that, except
with respect to calculating Excess Availability for the purpose of determining pricing or fees
hereunder, such amount shall be reduced, on a dollar-for-dollar basis, by the aggregate amount of
the then-applicable Suppressed Availability and the then-available Blocked Cash Amount, up to a
maximum aggregate reduction of $5,000,000.

          “Loan Documents” means this Agreement, any promissory notes issued pursuant to the
Agreement, any Letters of Credit or Letter of Credit applications, the Engagement Letter and the
Collateral Documents. Any reference in this Agreement or any other Loan Document to a Loan
Document shall include all appendices, exhibits or schedules thereto, and all amendments,
restatements, supplements or other modifications thereto.

          “Loans” means the loans and advances made by the Lenders pursuant to this Agreement,
including Revolving Loans, Swingline Loans and Protective Advances.

          “Margin Stock” has the meaning assigned to such term in Regulation U.

          “Master Intercompany Agreements” means (a) the NFC MIA; (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 Navistar or one or more of its Restricted Subsidiaries and one or more
other Persons (including, without limitation, Unrestricted Subsidiaries that comprise Navistar’s
financial service operations with terms and conditions consistent with such Person’s past practice
and entered into in the ordinary course of business) on terms no less favorable to Navistar 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 Navistar or its Restricted
Subsidiaries.

ITEC ABL Credit Agreement

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

          “Material Adverse Effect” means (a) a material adverse effect on (i) the business,
financial condition, operations, performance or properties of the Borrowers and their
subsidiaries, taken as a whole, (ii) the rights and remedies of the Agents and the Lenders under
the Loan Documents, or (iii) the ability of the Borrowers to perform their Facility Obligations
under the Loan Documents, or (b) a material impairment of the rights or remedies, taken as a
whole, available to the Agents and the Lenders under the Loan Documents.

          “Maturity Date” means June 15, 2012 or any earlier date on which the aggregate
Commitments are otherwise terminated pursuant to the terms hereof.

          “Maximum Rate” has the meaning assigned to such term in Section 9.17.

          “Modified Borrowing Base” means, at any time, an amount equal to (a) the Borrowing
Base then in effect, minus (b) the Liquidity Block Amount.

          “Monthly Unaudited Reports” means monthly management financial reports in respect of
the sales and income by segment and cash balances, Debt, capital expenditures and depreciation and
amortization of Navistar and its “Restricted Subsidiaries” (as defined in the January Credit
Agreement) prepared in a manner consistent with Navistar’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
Navistar’s management’s good faith calculations at the time made, in such form and detail
reasonably satisfactory to the Administrative Agent.

          “Moody’s” means Moody’s Investors Service, Inc. and any successor to its rating
agency business.

          “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, to which any Borrower 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 Borrower or any ERISA Affiliate
and at least one Person other than the Borrowers and the ERISA Affiliates or (b) was so maintained
and in respect of which any Borrower 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.

          “Navistar” means Navistar International Corporation, a Delaware corporation.

          “Navistar Party” means Navistar and each of the Borrowers.

          “Net Orderly Liquidation Value” means, with respect to Inventory of any Person, an
amount equal to the orderly liquidation value (net of all costs and expenses incurred in connection
with liquidation) of Eligible Inventory as a percentage of the Cost of such Inventory, which
percentage shall be determined by reference to the most recent third-party appraisal of such
inventory received by the Agents and distributed to the Borrowers.

ITEC ABL Credit Agreement

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

          “NFC MIA” means the Amended and Restated Master Intercompany Agreement, dated as of
April 1, 2007, between NFC and ITEC, and its related manufacturing subsidiaries and affiliates, as
amended, modified, supplemented or restated from time to time in a manner that is not adverse in
any material respect to the interests of ITEC.

          “Non-Consenting Lender” has the meaning assigned to such term in Section
9.02(d).

          “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 Section 7.01(h). Without limiting the
generality of the foregoing, the Obligations of any Borrower 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 Borrower under any Loan Document and
(b) the obligation of such Borrower 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 Borrower.

          “OFAC” has the meaning assigned to such term in Section 3.21.

          “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

          “Participant” has the meaning assigned to such term in Section 9.04 (c).

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in
ERISA and any successor entity performing similar functions.

          “Pension Act” means the Pension Protection Act of 2006, as amended.

          “Perfection Certificate” means a certificate substantially in the form of Exhibit
D to this Agreement, or in any other form approved by the Agents (such approval not to be
unreasonably withheld, delayed or conditioned).

          “Permitted Discretion” means an Agent’s commercially reasonable judgment, exercised
in good faith in accordance with customary business practices for comparable asset-based lending
transactions, as to any factor which such Agent reasonably determines: (a) will or reasonably
could be expected to adversely affect in any material respect the value of any Collateral, the
enforceability or priority of the Collateral Agent’s Liens thereon or the amount which the Agents,
the Lenders or any Issuing Bank would be likely to receive (after giving consideration to delays
in payment and costs of enforcement) in the liquidation of such Collateral or (b) evidences that
any collateral report or financial information delivered to an Agent by the Administrative
Borrower or any other Borrower is incomplete, inaccurate or misleading in any material respect;
provided, however, that as to financial matters or matters based on financial statements, the
Agents and the Lenders hereby acknowledge that the existence of the matters set forth in the
Disclosure Filings and the results created by the existence thereof shall not be deemed to
constitute a misrepresentation hereunder, provided, further, that it is understood and agreed that
the foregoing proviso shall not limit the ability of the Agents to require Reserves or require
Collateral

ITEC ABL Credit Agreement

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reappraisals in accordance with the terms hereof. In exercising such judgment, an Agent may
consider, without duplication, such factors already included in or tested by the definition of
Eligible Inventory, as well as any of the following: (i) changes after the Closing Date in any
material respect in demand for, pricing of, or product mix of Inventory; (ii) changes after the
Closing Date in any material respect in any concentration of risk with respect to the Borrowers’
Collateral; and (iii) any other factors arising after the Closing Date that change in any material
respect the credit risk of lending to any Borrower on the security of such Borrower’s Collateral.

          “Permitted Joint Venture” means any Person which is, directly or indirectly, through
its subsidiaries or otherwise, engaged principally in any business in which any Borrower is
engaged, or a reasonably related, ancillary or complementary business, and the Equity Interests of
which (a) is owned by such Borrower or a Restricted Subsidiary thereof and one or more Persons
other than such Borrower or any affiliate of such Borrower or (b) is acquired by such Borrower or a
Restricted Subsidiary.

          “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 5.04; (b) Liens
imposed by law, such as materialmen’s, mechanics’, carriers’, warehousemens’, 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 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 Section 7.01(i) or
securing appeal or other surety bonds related to such judgments, (f) 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; (g) Liens
encumbering deposits made in the ordinary course of business to secure nondelinquent obligations
arising from statutory, regulatory, contractual or warranty requirements of a Borrower for which a
reserve or other appropriate provision, if any, as may be required by GAAP has been made; (h)
Liens arising out of consignment or similar arrangements for the sale of goods entered into by a
Borrower in the ordinary course of business and in accordance with industry practice; and (i)
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 Navistar’s past practice and entered into in the ordinary course of
the Navistar’s business pursuant to which a Finance Subsidiary purchases or otherwise acquires
accounts receivable of Navistar or any Restricted Subsidiary of Navistar and enters into a third
party financing thereof on terms that are market and customary to Navistar and its Restricted
Subsidiaries, and in an aggregate amount not to exceed $25,000,000 in any fiscal year.

          “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or any other entity.

          “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

ITEC ABL Credit Agreement

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proceeds of sale, lease, conveyance or other disposition and all or substantially all of the
remaining assets of such Person to holders or Equity Interests of such Person.

          “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.

          “Prime Rate” means the rate of interest per annum determined from time to time by
Credit Suisse as its prime rate in effect at its principal office in New York City and notified to
the Administrative Borrower, which rate is not necessarily the lowest rate offered by Credit
Suisse to its customers.

          “Protective Advance” has the meaning assigned to such term in Section
2.04(a).

          “Receivables” means any receivables generated from the sale of Collateral and
required to be sold pursuant to, and in accordance with, the terms of any Master Intercompany
Agreement.

          “Receivables Facility” means the Amended and Restated Credit Agreement dated as of
July 1, 2005, as amended as of January 19, 2007 and as of March 28, 2007, among NFC, JPMorgan Bank
and the other parties referred to therein, as amended and restated or otherwise modified from time
to time and the related guarantees by the Administrative Borrower and Navistar.

          “Receivables Trigger Event” means (a) if any counterparty to a Master Intercompany
Agreement becomes subject to any proceeding of any type referred to in Section 7.01(h); (b) the
failure of any counterparty to a Master Intercompany Agreement to pay in cash (after giving effect
to netting counterpayments made in the ordinary course of business consistent with the past
practices of the counterparties) to the applicable Borrower that is party thereto the full
purchase price of any Receivables sold to such counterparty thereunder within two Business Days of
the deadline for such payment pursuant to such Master Intercompany Agreement, provided that, with
respect to payments to be made pursuant to the NFC MIA, if such two-day payment deadline occurs
during a “Blackout Period” then the deadline for payment under this clause (b) shall be the first
Business Day following such Blackout Period; (c) if any counterparty to a Master Intercompany
Agreement gives notice of its intent to terminate such Master Intercompany Agreement and
terminates such Master Intercompany Agreement without a comparable replacement being in full force
and effect; or (d) if any counterparty to a Master Intercompany Agreement shall not have paid
principal or interest on Debt, which failure to pay continues for three days and which Debt is in
a principal amount of $10,000,000 (“Relevant Debt”) or more, or the commitments of lenders
with respect to Relevant Debt shall have been terminated by or on behalf of such lenders following
a default by such counterparty.

          “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 assigned to such term in Section 9.04(b).

          “Regulation T” means Regulation T of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof, and any successor provision thereto.

          “Regulation U” means Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof, and any successor provision thereto.

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          “Regulation X” means Regulation X of the Board as from time to time in effect
and all official rulings and interpretations thereunder or thereof, and any successor provision
thereto.

          “Related Funds” has the meaning assigned to such term in Section 9.04(b).

          “Related Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, trustees, employees, agents and advisors of
such Person and such Person’s Affiliates.

          “Report” means reports prepared by the Agents or another Person showing the results
of appraisals, field examinations or audits pertaining to the Borrowers’ assets from information
furnished by or on behalf of the Borrowers, after the Agents have exercised their rights of
inspection pursuant to this Agreement, which Reports may be distributed to the Lenders by the
Agents, subject to the provisions of Section 9.12.

          “Required Lenders” means, at any time, Lenders having Exposure and unused Commitments
representing more than 50% of the sum of the total Exposure and unused Commitments at such time;
provided that the Exposure and unused Commitments of any Defaulting Lender shall be disregarded in
the determination of the Required Lenders at any time.

          “Requirement of Law” means, as to any Person, any law, treaty, rule or regulation or
determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its
property is subject.

          “Reserves” means all (if any) Inventory Reserves and Availability Reserves (including
Landlord Lien Reserves).

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

          “Restricted Subsidiary” has the meaning assigned to such term in the January Credit
Agreement.

          “Revolving Loan” means a Loan made pursuant to Section 2.01.

          “S&P” means Standard & Poor’s Ratings Service, a division of the McGraw-Hill
Companies, Inc., and any successor to its rating agency business.

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

          “SEC” means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of its functions.

          “Secured Obligations” means all Facility Obligations, together with Banking Services
Obligations in an aggregate amount of up to $25,000,000.

          “Secured Parties” has the meaning assigned to such term in the Security
Agreement.

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          “Securities Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the SEC promulgated thereunder.

          “Security Agreement” means the Security Agreement, substantially in the form of
Exhibit H between the Borrowers and the Collateral Agent, for the benefit of the Collateral
Agent and the Lenders, including any amendments, restatements, modifications or supplements.

          “Shrink” means Inventory identified by the Administrative Borrower as lost,
misplaced, or stolen.

          “Shrink Reserve” means an amount reasonably estimated by the Agents to be equal to
that amount which is required in order that the Shrink reflected in current stock ledger of the
Borrowers would be reasonably equivalent to the Shrink calculated as part of the Borrowers’ most
recent physical inventory (it being understood and agreed that no Shrink Reserve established by
the Agents shall be duplicative of any Shrink as so reflected in the current stock ledgers of the
Borrowers or estimated by the Borrowers for purposes of computing the Borrowing Base other than at
month’s end).

          “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 Borrower or any ERISA Affiliate
and no Person other than the Borrowers and the ERISA Affiliates or (b) was so maintained and in
respect of which any Borrower or any ERISA Affiliate could have liability under Section 4069 of
ERISA in the event such plan has been or were to be terminated.

          “Slow Moving” means (a) with respect to parts, Inventory held in excess of three
years of usage, and (b) with respect to all other Inventory, such holding times as shall be
determined by the Agents in their Permitted Discretion.

          “Stated Amount” means, at any time, the maximum amount for which a Letter of Credit
may be honored.

          “Statutory Reserve Percentage” means, for any Interest Period, for all LIBOR
Borrowings 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 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 Borrowings is determined) having a term
equal to such Interest Period.

          “Subordinated Debt” means any Debt of any Borrower that is subordinated to the
Obligations of such Borrower under the Loan Documents on and that otherwise contains, terms and
conditions, including as to subordination, reasonably satisfactory to the Administrative Agent.

          “subsidiary” means, with respect to any Person (the “parent”) at any date,
any corporation, limited liability company, partnership, association or other entity (a) of which
securities or other ownership interests representing more than 50% of the equity or more than 50%
of the ordinary voting power or, in the case of a partnership, more than 50% of the general
partnership interests are, as of

ITEC ABL Credit Agreement

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such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled,
by the parent or one or more subsidiaries of the parent or by the parent and one or more
subsidiaries of the parent.

          “Super Majority Lenders” means, at any time, Lenders having Exposure and unused
Commitments representing more than
66-2/3% of the sum of the total Exposure and unused Commitments at
such time; provided that the Exposure and unused Commitments of any Defaulting Lender shall be
disregarded in the determination of the Super Majority Lenders at any time.

          “Support Agreement” means the Parent’s Side Agreement dated as of July 1, 2005,
between Navistar and ITEC, 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 ITEC.

          “Suppressed Availability” means the amount by which the then-applicable Borrowing
Base exceeds the then-effective Commitments.

          “Swingline Lender” means Credit Suisse, in its capacity as lender of Swingline Loans
hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.05.

          “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 ITEC 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 Navistar and ITEC,
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 ITEC or its
subsidiaries.

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

          “Total Utilization of Commitments” means the average daily aggregate Exposures (other
than Swingline Loans) of all Lenders.

          “Transaction Costs” means fees and expenses payable or otherwise borne by the
Borrowers in connection with the Transactions and the transactions contemplated thereby.

          “Transactions” means, collectively, (a) the execution, delivery and performance by the
Borrowers of the Loan Documents to which they are a party and the making of the Borrowings
hereunder, and (b) the payment of the Transaction Costs.

ITEC ABL Credit Agreement

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          “Type”, when used in reference to any Loan or Borrowing, refers to whether the
rate of interest on such Loan, or on the Loans comprising such Borrowing, is determined by
reference to the Adjusted LIBOR or the Alternate Base Rate.

          “UCC” means the Uniform Commercial Code as in effect from time to time in the State
of New York or any other state the laws of which are required to be applied in connection with the
issue of perfection of security interests.

          “UFCA” has the meaning assigned to such term in Section 9.18(b).

          “UFTA” has the meaning assigned to such term in Section 9.18(b).

          “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion
thereof) that are contingent in nature or unliquidated at such time, including any Secured
Obligation that is: (a) an obligation to reimburse a bank for drawings not yet made under a letter
of credit issued by it; (b) any other obligation (including any guarantee) that is contingent in
nature at such time; or (c) an obligation to provide collateral to secure any of the foregoing
types of obligations; but excluding unripened or contingent obligations related to indemnification
under Section 9.03 for which no written demand has been made.

          “Unrestricted Subsidiary” has the meaning assigned to such term in the January Credit
Agreement.

          “USA PATRIOT Act” means The Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L.
No. 107-56 (signed into law October 26, 2001)), as amended or modified from time to time.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I
of Subtitle E of Title IV of ERISA.

          SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a
“LIBOR Loan”) or by Class and Type (e.g., a “LIBOR Revolving Loan”). Borrowings also may be
classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “LIBOR
Borrowing”) or by Class and Type (e.g., a “LIBOR Revolving Borrowing”).

          SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to
the singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, amended and restated, supplemented or otherwise modified (subject to any
restrictions on such amendments, amendment and restatements, supplements or modifications set forth
herein), (b) any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e)
the words “asset” and “property” shall be construed to have the same

ITEC ABL Credit Agreement

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meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights and (f) the words “knowledge” or “aware”
or words of similar import shall mean, when used in reference to the Borrowers, the actual
knowledge of any Responsible Officer.

          SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein,
all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Administrative Borrower notifies the Administrative
Agent that any Borrower requests an amendment to any provision hereof to eliminate the effect of
any change occurring after the date hereof in GAAP or in the application thereof on the operation
of such provision (or if the Administrative Agent notifies the Administrative Borrower that the
Required Lenders request an amendment to any provision hereof for such purpose), regardless of
whether any such notice is given before or after such change in GAAP or in the application thereof,
then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately
before such change shall have become effective until such notice shall have been withdrawn or such
provision amended in accordance herewith. Notwithstanding anything to the contrary contained
herein, no Default or Event of Default shall occur as a result of any Borrower breaching the terms
and conditions contained in Articles V and VI as a result of (a) 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 (b) accounting treatment which is inconsistent with the Borrower’s
accounting practices in effect on the Closing Date. If the Borrower’s determine to modify how they
account for Cost of Inventory pursuant to a restatement of the accounting utilized for audited
financial statements furnished in the future, the Borrowers, the Agents and the Required Lenders
agree to negotiate in good faith to seek to modify the definition of “Cost” provided for in this
Agreement to reflect such modification, and to take such modification appropriately into account
elsewhere herein, including potentially in the advance ratios reflected in Inventory Component.

ARTICLE II

THE CREDITS

          SECTION 2.01. Commitments. (a) Subject to the terms and conditions set forth herein,
each Lender agrees, severally and not jointly, to make Revolving Loans to the Borrowers from time
to time during the Availability Period in an aggregate principal amount that will not result in:

          (i) such Lender’s Exposure exceeding the lesser of (A) such Lender’s Applicable
Percentage of the Available Commitment, and (B) such Lender’s Applicable Percentage of the
Modified Borrowing Base (except as provided for in Section 2.04); or

          (ii) the total Exposures of all the Lenders exceeding the lesser of (A) the aggregate
Available Commitments, and (B) the Modified Borrowing Base (except as provided for in
Section 2.04).

          (b) Within the foregoing limits and subject to the terms and conditions set forth herein
(including the Administrative Agent’s authority, in its sole discretion, to make Protective
Advances pursuant to the terms of Section 2.04), the Borrowers may borrow, repay and reborrow
Revolving Loans.

ITEC ABL Credit Agreement

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          SECTION 2.02. Loans and Borrowings. (a) Each Loan (other than a Swingline Loan
or a Protective Advance) shall be made as part of a Borrowing consisting of Loans of the same
Class and Type made by the Lenders ratably in accordance with their respective Commitments of the
applicable Class. Any Protective Advance and any Swingline Loan shall be made in accordance with
the procedures set forth in Sections 2.04 and 2.05, respectively.

          (b) Subject to Sections 2.14 and 2.15, each Borrowing shall be comprised entirely of ABR
Loans or LIBOR Loans as any Borrower may request in accordance herewith. Each Swingline Loan and
each Protective Advance shall be an ABR Loan. Each Lender at its option may make any LIBOR Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided,
that (i) any exercise of such option shall not affect the obligation of the Borrowers to repay
such Loan in accordance with the terms of this Agreement, and (ii) in exercising such option, such
Lender shall use reasonable efforts to minimize any increase in the Adjusted LIBOR or increased
costs to the Borrowers resulting therefrom (which obligation of such Lender shall not require it
to take, or refrain from taking, actions that it determines would result in increased costs for
which it will not be compensated hereunder or that it otherwise determines would be
disadvantageous to it and in the event of such request for costs for which compensation is
provided under this Agreement, the provisions of Section 2.15 shall apply).

          (c) At the commencement of each Interest Period for any LIBOR Borrowing, such Borrowing when
made shall be in a minimum principal amount of $1,000,000 and in integral multiples of $1,000,000
thereafter. Each ABR Borrowing when made shall be in a minimum principal amount of $1,000,000;
provided that an ABR Borrowing may be made in a lesser aggregate amount that is equal to the
entire unused balance of the Available Commitments or that is required to (i) finance the
reimbursement of an LC Disbursement as contemplated by Section 2.06(e), or (ii) repay Swingline
Loans as contemplated by Section 2.10(a). Borrowings of more than one Type and Class may be
outstanding at the same time; provided that there shall not at any time be more than a total of
ten different Interest Periods in effect for LIBOR Borrowings at any time outstanding.

          (d) Notwithstanding any other provision of this Agreement, the Borrowers shall not be
entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period
requested with respect thereto would end after the Maturity Date.

          SECTION 2.03. Requests for Borrowings. (a) To request a Borrowing, a Borrower shall
notify the Administrative Agent of such request either in writing by delivery of a Borrowing
Request (by hand, facsimile or a “pdf” electronic transmission) signed by such Borrower or the
Administrative Borrower on its behalf or by telephone (i) in the case of a LIBOR Borrowing, not
later than 2:00 p.m., New York City time, three Business Days (or, in the case of a LIBOR
Borrowing to be made on the Closing Date, two Business Days) before the date of the proposed
Borrowing, or (ii) in the case of an ABR Borrowing (including any such notice of an ABR Borrowing
to finance the reimbursement of an LC Disbursement as contemplated by Section 2.06(e)), not later
than 11:00 a.m., New York City time, on the date of the proposed Borrowing. Each such telephonic
Borrowing Request shall be irrevocable and shall be confirmed promptly by hand delivery, facsimile
or a “pdf” electronic transmission to the Administrative Agent of a written Borrowing Request
signed by the Borrower or the Administrative Borrower on its behalf. Each such telephonic and
written Borrowing Request shall specify the following information in compliance with Section 2.01:

               (A) the aggregate amount of the requested Borrowing;

               (B) the date of such Borrowing, which shall be a Business Day;

ITEC ABL Credit Agreement

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               (C) whether such Borrowing is to be an ABR Borrowing or
a LIBOR Borrowing;

 (D) in the case of a LIBOR
Borrowing, the initial Interest Period to be applicable
thereto, which shall be a period contemplated by the
definition of the term “Interest Period”; and

               (E) the location and number of the
Borrowers’ accounts or any other
designated account(s) to which funds are to be disbursed.

          (b) If no election as to the Type of Borrowing is specified, then the requested Borrowing
shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested LIBOR
Borrowing, then such Borrower shall be deemed to have selected an Interest Period of one month’s
duration. Promptly following receipt of a Borrowing Request in accordance with this Section 2.03,
the Administrative Agent shall advise each Lender of the details thereof and of the amount of such
Lender’s Loan to be made as part of the requested Borrowing.

          SECTION 2.04. Protective Advances. (a) Subject to the limitations set forth below
(and notwithstanding anything to the contrary in Section 4.02, including failure to satisfy or
waive any of the conditions precedent set forth in Section 4.02), the Administrative Agent is
authorized by the Borrowers and the Lenders, from time to time in the Administrative Agent’s sole
discretion (but shall have absolutely no obligation to), to make Loans to any Borrower, on behalf
of all Lenders at any time that any condition precedent set forth in Section 4.02 has not been
satisfied or waived, which the Administrative Agent, in its Permitted Discretion, deems necessary
or desirable (i) to preserve or protect the Collateral, or any portion thereof, (ii) to enhance
the likelihood of, or maximize the amount of, repayment of the Loans and other Obligations, or
(iii) to pay any other amount chargeable to or required to be paid by such Borrower pursuant to
the terms of this Agreement, including payments of reimbursable expenses (including costs, fees,
and expenses as described in Section 9.03) and other sums payable under the Loan Documents (each
such Loan, a “Protective Advance”). Any Protective Advance may be made in a principal
amount that would cause the aggregate Exposures to exceed the Modified Borrowing Base; provided
that no Protective Advance may be made to the extent that, after giving effect to such Protective
Advance (together with the outstanding principal amount of any outstanding Protective Advances),
the aggregate principal amount of Protective Advances outstanding hereunder would exceed 5% of the
aggregate Commitments as determined on the date of such proposed Protective Advance; and provided,
further that, the aggregate amount of such proposed Protective Advances plus the aggregate
Exposures shall not exceed the aggregate Commitments. No Protective Advance may remain outstanding
for more than 60 days without the consent of the Required Lenders. Each Protective Advance shall
be secured by the Liens in favor of the Collateral Agent in and to the Collateral and shall
constitute Obligations and Secured Obligations hereunder. The Administrative Agent’s authorization
to make Protective Advances may be revoked at any time by the Required Lenders. Any such
revocation must be in writing and shall become effective prospectively upon the Administrative
Agent’s receipt thereof. The making of a Protective Advance on any one occasion shall not obligate
the Administrative Agent to make any Protective Advance on any other occasion. At any time that
the conditions precedent set forth in Section 4.02 have been satisfied or waived, the
Administrative Agent may request the Lenders to make a Revolving Loan to repay a Protective
Advance. At any other time, the Administrative Agent may require the Lenders to fund their risk
participations described in Section 2.04(b).

          (b) Upon the making of a Protective Advance by the Administrative Agent (whether before or
after the occurrence of a Default), each Lender shall be deemed, without further action by any
party hereto, unconditionally and irrevocably to have purchased from the Administrative Agent
without recourse or warranty, an undivided interest and participation in such Protective Advance in
proportion to

ITEC ABL Credit Agreement

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its Applicable Percentage. From and after the date, if any, on which any Lender is required
to fund its participation in any Protective Advance purchased hereunder, the Administrative Agent
shall promptly distribute to such Lender, such Lender’s Applicable Percentage of all payments of
principal and interest and all proceeds of Collateral (if any) received by the Administrative
Agent in respect of such Protective Advance.

          SECTION 2.05. Swingline Loans. (a) Subject to the terms and conditions set forth
herein, the Swingline Lender agrees to make Swingline Loans to any Borrower from time to time
during the Availability Period, in an aggregate principal amount at any time outstanding that will
not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding
$25,000,000, (ii) the total Exposures exceeding the lesser of (A) the Available Commitments and
(B) the Modified Borrowing Base, or (iii) the Credit Extensions exceeding the lesser of (A) the
Available Commitments and (B) the Modified Borrowing Base; provided that the Swingline Lender
shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Each
Swingline Loan shall be in an integral multiple of $100,000 and not less than $1,000,000. Within
the foregoing limits and subject to the terms and conditions set forth herein, a Borrower may
borrow, prepay (without premium or penalty) and reborrow Swingline Loans. To request a Swingline
Loan, such Borrower or the Administrative Borrower on its behalf shall notify the Swingline Lender
of such request by telephone (confirmed by facsimile or a “pdf” electronic transmission to the
Swingline Lender, with a copy to the Administrative Agent), not later than 2:00 p.m., New York
City time, on the day of a proposed Swingline Loan. Each such notice shall be irrevocable and
shall specify the requested date (which shall be a Business Day) and amount of the requested
Swingline Loan and the location and number of the Borrowers’ accounts or other designated
account(s) to which funds are to be disbursed. The Swingline Lender shall make each Swingline Loan
available to such Borrower by means of a credit to the Funding Account or otherwise in accordance
with the instructions of such Borrower (or, in the case of a Swingline Loan made to finance the
reimbursement of an LC Disbursement as provided in Section 2.06(e), by remittance to the
applicable Issuing Bank, and in the case of repayment of another Loan or fees or expenses as
provided by Section 2.18(c), by remittance to the Administrative Agent to be distributed to the
Lenders) on the requested date of such Swingline Loan.

          (b) The Swingline Lender may, by written notice given to the Administrative Agent not later
than 1:00 p.m., New York City time, on any Business Day require the Lenders to acquire
participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which Lenders will participate.
Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each
Lender, specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or
Loans. Each Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided
above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s
Applicable Percentage of such Swingline Loan or Loans. Each Lender acknowledges and agrees that its
obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the occurrence
and continuance of a Default or reduction or termination of the Commitments, and that each such
payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each
Lender shall comply with its obligation under this paragraph by wire transfer of immediately
available funds, in the same manner as provided in Section 2.07 with respect to Loans made by such
Lender (and Section 2.07 shall apply, mutatis mutandis, to the payment obligations of the Lenders),
and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by
it from the Lenders. The Administrative Agent shall notify the Administrative Borrower of any
participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments
in respect of such Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender. Any amounts received by the Swingline Lender from any Borrower (or other party on
behalf of the Borrower) in respect of a Swingline Loan after receipt by the

ITEC ABL Credit Agreement

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Swingline Lender of the proceeds of a sale of participations therein shall be promptly
remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall
be promptly remitted by the Administrative Agent to the Lenders that shall have made their payments
pursuant to this paragraph and to the Swingline Lender, as their interests may appear; provided
that any such payment so remitted shall be repaid to the Swingline Lender or to the Administrative
Agent, as applicable, if and to the extent such payment is required to be refunded to such Borrower
for any reason. The purchase of participations in a Swingline Loan pursuant to this paragraph shall
not relieve any Borrower of any default in the payment thereof.

          SECTION 2.06. Letters of Credit. (a) General. Subject to the terms and conditions set forth
herein, (i) each Issuing Bank agrees, in reliance upon the agreements of the other Lenders set
forth in this Section 2.06, from time to time on any Business Day during the period from the
Closing Date to but not including the 30th day prior to the Maturity Date, upon the request of any
Borrower, to issue standby Letters of Credit denominated in Dollars only and issued for the account
of such Borrower (or any other Borrower to the extent such Borrower is a co-applicant), and to
amend or renew Letters of Credit previously issued by it, in accordance with Section 2.06(b); and
(ii) the Lenders severally agree to participate in the Letters of Credit issued pursuant to Section
2.06(d). Subject to the terms and conditions hereof, each Borrower’s ability to obtain Letters of
Credit shall be fully revolving, and accordingly such Borrower may, during the foregoing period,
obtain Letters of Credit to replace Letters of Credit that have expired or that have been drawn
upon and reimbursed.

          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the
issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter of
Credit), the applicable Borrower or the Administrative Borrower on its behalf shall hand deliver or
facsimile (or transmit by a “pdf” electronic communication) to the applicable Issuing Bank and the
Administrative Agent, at least two Business Days in advance of the requested date of issuance (or
such shorter period as is acceptable to the applicable Issuing Bank), a request to issue
substantially in the form of Exhibit E attached hereto (each a “Letter of Credit Request”). To
request an amendment, extension or renewal of a Letter of Credit, the applicable Borrower shall
submit such a request on its letterhead, addressed to the applicable Issuing Bank (with a copy to
the Administrative Agent) at least two Business Days in advance of the requested date of amendment,
extension or renewal, identifying the Letter of Credit to be amended, renewed or extended, and
specifying the proposed date (which shall be a Business Day) and other details of the amendment,
extension or renewal. Requests for issuance, amendment, renewal or extension must be accompanied by
such other information as shall be necessary to issue, amend, renew or extend such Letter of
Credit. If requested by the applicable Issuing Bank, the applicable Borrower also shall submit a
letter of credit application on such Issuing Bank’s standard form in connection with any request
for a Letter of Credit. In the event of any inconsistency between the terms and conditions of this
Agreement and the terms and conditions of any form of letter of credit application or other
agreement submitted by such Borrower to, or entered into by such Borrower with, the applicable
Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall
control. A Letter of Credit shall be issued, amended, renewed or extended only if (and on issuance,
amendment, renewal or extension of each Letter of Credit the applicable Borrower shall be deemed to
represent and warrant that), after giving effect to such issuance, amendment, renewal or extension
(i) the LC Exposure shall not exceed $200,000,000, and (ii) the aggregate amount of Credit
Extensions shall not exceed the lesser of (A) the Available Commitments and (B) the Modified
Borrowing Base. Promptly after the delivery of any Letter of Credit or any amendment to a Letter
of Credit to an advising bank with respect thereto or to the beneficiary thereof, the applicable
Issuing Bank will also deliver to the applicable Borrower and the
Administrative Agent a true and complete copy of such Letter of Credit or amendment. Upon
receipt of such Letter of Credit or amendment, the Administrative Agent shall notify the Lenders,
in writing, of such Letter of Credit or amendment, and if so requested by a Lender, the
Administrative Agent will provide such Lender with copies of such Letter of Credit or amendment.

ITEC ABL Credit Agreement

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          (c) Expiration Date. Each Letter of Credit shall expire not later than the earlier of (i)
the stated expiration date on such Letter of Credit, and (ii) the date that is five Business Days
prior to the Maturity Date (other than any Letter of Credit with a stated expiry date within 12
months following the Maturity Date that shall have been fully cash collateralized by the applicable
Borrower with cash equal to 103% of the LC Exposure as of the Maturity Date); provided, that, the
Borrowers may request the issuance of standby Letters of Credit with tenors in excess of 12 months,
so long as the aggregate total of the stated amounts of all such standby Letters of Credit (with
tenors in excess of 12 months) outstanding at any time shall not exceed $25,000,000, and all other
Letters of Credit issued hereunder shall have tenors of 12 months or less; provided, further, that
any standby Letter of Credit with a tenor of 12 months or less may provide for the automatic
extension thereof for any number of additional periods, each of up to one year in duration (none of
which, in any event, shall extend beyond the date referred to above). Each commercial Letter of
Credit shall expire on the earlier of (A) 180 days after the date of the issuance of such Letter of
Credit and (B) the date that is 30 days prior to the Maturity Date.

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of
Credit increasing the amount thereof) and without any further action on the part of the applicable
Issuing Bank or the Lenders, the applicable Issuing Bank hereby grants to each Lender, and each
Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit equal to
such Lender’s Applicable Percentage of the aggregate amount available to be drawn under 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 the applicable
Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank
and not reimbursed by the Borrowers on the date due as provided in paragraph (e) of this Section
2.06, or of any reimbursement payment required to be refunded to the Borrowers for any reason. Each
Lender acknowledges and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected
by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of
Credit or the occurrence and continuance of a Default or reduction or termination of the
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever.

          (e) Reimbursement. If the applicable Issuing Bank shall make any LC Disbursement in respect of
a Letter of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York
City time, on the Business Day immediately following the date the applicable Borrower receives
notice under paragraph (g) of this Section 2.06 of such LC Disbursement; provided that such
Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with
Section 2.03 or 2.05 that such payment be financed with an ABR Borrowing or Swingline Loan in an
equivalent amount and, to the extent so financed, the Borrowers’ obligation to make such payment
shall be discharged and replaced by the resulting ABR Borrowing or Swingline Loan. If the Borrowers
fail to make such payment when due, or if any payment made by a Borrower must be disgorged,
returned or otherwise relinquished for any
reason, including by reason of any event described in Section 7.01(h), the Administrative
Agent shall notify each Lender of the applicable LC Disbursement, the payment then due from the
Borrowers in respect thereof and such Lender’s Applicable Percentage thereof. Promptly following
receipt of such notice, each Lender shall pay to the Administrative Agent its Applicable Percentage
of the payment then due from the Borrowers, in the same manner as provided in Section 2.07 with
respect to Loans made by such Lender (and Section 2.07 shall apply, mutatis mutandis, to the
payment obligations of the Lenders), and the Administrative Agent shall promptly pay to the
applicable Issuing Bank the amounts so received by it from the Lenders. Promptly following receipt
by the Administrative Agent of any payment from the Borrowers pursuant to this paragraph, the
Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the extent
that Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank, then to
such Lenders and such Issuing Bank as their interests may appear.

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          (f) Obligations Absolute. The Borrowers’ and the Lenders’ obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section 2.06 shall be absolute, unconditional
and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement
under any and all circumstances whatsoever and irrespective of (i) any lack of validity or
enforceability of any Letter of Credit or this Agreement, or any term or provision therein, (ii)
any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or
invalid in any respect or any statement therein being untrue or inaccurate in any material respect,
(iii) payment by the applicable Issuing Bank under a Letter of Credit against presentation of a
draft or other document that does not comply with the terms of such Letter of Credit, or (iv) any
other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might,
but for the provisions of this Section 2.06, constitute a legal or equitable discharge of, or
provide a right of setoff against, the Borrowers’ obligations hereunder (other than payment or
performance, to the extent thereof). Neither the Administrative Agent, the Lenders nor any Issuing
Bank, nor any of their Related Parties, 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 (or any of its agents, employees,
officers or advisors) from liability to the applicable Borrower to the extent of any direct damages
(as opposed to consequential damages, claims in respect of which are hereby waived by each Borrower
to the extent permitted by applicable law) suffered by such Borrower that are caused by such
Issuing Bank’s (or any of its agents, employees, officers or advisors) (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) willful misconduct or (iv) bad faith. The parties
hereto expressly agree that, in the absence of gross negligence, bad faith or willful misconduct on
the part of applicable Issuing Bank (or its agents, officers, employees and advisors) (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 sole 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.

          (g) Disbursement Procedures. The applicable Issuing Bank shall, promptly following its
receipt thereof, examine all documents purporting to represent a demand for payment under a Letter
of Credit. Such Issuing Bank shall promptly notify the Administrative Agent and the applicable
Borrower by telephone (confirmed by facsimile or electronic transmission) of such demand for
payment and whether such Issuing Bank has made or will make an LC Disbursement thereunder; provided
that any failure to give or delay in giving such notice shall not relieve the Borrowers of their
obligation to reimburse such Issuing Bank and the Lenders with respect to any such LC Disbursement.

          (h) Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the
Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement is made,
the unpaid amount thereof shall bear interest, for each day from and including the date such LC
Disbursement is made to but excluding the date that the Borrowers reimburse such LC Disbursement,
at the rate per annum then applicable to Loans that are ABR Loans; provided that, if the Borrowers
fail to reimburse or convert such LC Disbursement when due pursuant to paragraph (e) of this
Section 2.06, then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall
be for the account of the applicable Issuing Bank, except that interest accrued on and after the
date of payment by any Lender

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pursuant to paragraph (e) of this Section 2.06 to reimburse such Issuing Bank shall be for the
account of such Lender to the extent of such payment.

          (i) Replacement of an Issuing Bank. An Issuing Bank may be replaced with the consent of the
Administrative Agent (not to be unreasonably withheld, delayed or conditioned) at any time by
written agreement among each Borrower, the Administrative Agent, the replaced Issuing Bank and the
successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement
of an Issuing Bank. At the time any such replacement shall become effective, the Borrowers shall
pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section
2.12(b). From and after the effective date of any such replacement, (i) the successor Issuing Bank
shall have all the rights and obligations of the replaced Issuing Bank under this Agreement with
respect to Letters of Credit to be issued thereafter and references herein to the term “Issuing
Bank” shall be deemed to refer to such successor or to any previous Issuing Bank, or to such
successor and all previous Issuing Banks, as the context shall require. After the replacement of an
Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall continue to
have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters
of Credit issued by it prior to such replacement to the extent such Letters of Credit remain
outstanding or otherwise with respect to indemnification and any other amounts owing to it
hereunder until such amounts have been paid in full, but shall not be required to issue additional
Letters of Credit.

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing, within one
Business Day of the date the Administrative Borrower receives notice from the Administrative Agent
acting at the direction of the Required Lenders (or, if the maturity of the Loans has been
accelerated, Lenders with LC Exposure representing greater than 50% of the total LC Exposure)
demanding the deposit of cash collateral pursuant to this paragraph, upon such demand, the
Administrative Borrower or any other Borrower shall deposit, in an account with the Collateral
Agent, in the name of the Collateral Agent and for the benefit of the Lenders
(the “LC Collateral Account”), an amount in cash equal to 103% of the LC Exposure as of such
date; provided that the obligation to deposit such cash collateral shall become effective
immediately, and such deposit shall become immediately due and payable, without demand or other
notice of any kind, upon the occurrence of any Event of Default with respect to the Administrative
Borrower or the other Borrowers described in clause (h) or (i) of Section 7.01. Such deposit shall
be held by the Collateral Agent as collateral for the payment and performance of the Secured
Obligations in accordance with the provisions of this paragraph (j) during the continuance of any
such Event of Default but shall be promptly released and returned to the Borrowers upon the cure or
waiver of such Event of Default. The Collateral Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over such account and each Borrower hereby grants the
Collateral Agent a security interest in the LC Collateral Account. Other than any interest earned
on the investment of such deposits, which investments shall be made at the discretion of the
Collateral Agent for the Borrowers’ benefit to the extent not applied to the Obligations or any
Banking Services Obligations during the continuance of an Event of Default in accordance with
Section 2.18 and at the Borrowers’ risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall be applied by the Administrative Agent to reimburse the applicable Issuing Bank for
LC Disbursements for which it has not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at
such time or, if the maturity of the Loans has been accelerated (but subject to the consent of
Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to
satisfy other Secured Obligations. If the Borrowers are required to provide an amount of cash
collateral hereunder as a result of the occurrence of an Event of Default, such amount (together
with all interest and other earnings with respect thereto, to the extent not applied as aforesaid)
shall be returned promptly to the applicable Borrower but in no event later than 3 Business Days
after such Event of Default has been cured or waived.

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          SECTION 2.07. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by
it hereunder on the proposed date thereof by wire transfer of immediately available funds by 2:30
p.m., New York City time, to the account of the Administrative Agent most recently designated by it
for such purpose by notice to the Lenders in an amount equal to such Lender’s respective Applicable
Percentage; provided, that Swingline Loans shall be made as provided in Section 2.05. The
Administrative Agent will make such Loans available to the applicable Borrower by promptly
crediting the amounts so received, in like funds, to the Funding Account or as otherwise directed
by the Borrower; provided that ABR Revolving Loans made to finance the reimbursement of (i) an LC
Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent to the
applicable Issuing Bank and (ii) a Protective Advance shall be retained by the Administrative Agent
to be applied as contemplated by Section 2.04 (and the Administrative Agent shall, upon the request
of the Borrower, deliver to the applicable Borrower a reasonably detailed accounting of either such
application).

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section 2.07 and
may, in reliance upon such assumption, make available to the applicable Borrower a corresponding
amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing
available to the Administrative Agent, then the applicable Lender and the applicable Borrower
severally agree to pay to the Administrative Agent forthwith
on demand (without duplication) such corresponding amount with interest thereon, for each day
from and including the date such amount is made available to such Borrower to but excluding the
date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the
Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with
banking industry rules on interbank compensation or (ii) in the case of such Borrower, the interest
rate applicable to Loans that are ABR Loans. If such Lender pays such amount to the Administrative
Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. Nothing
herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to
prejudice any rights which the Administrative Agent or the Administrative Borrower, or any other
Borrower may have against any Lender as a result of any default by such Lender hereunder.

          SECTION 2.08. Type; Interest Elections. (a) Each Borrowing initially shall be of the Type
specified in the applicable Borrowing Request and, in the case of a LIBOR Borrowing, shall have an
initial Interest Period as specified in such Borrowing Request. Thereafter, the applicable Borrower
or the Administrative Borrower on its behalf may elect to convert such Borrowing to a different
Type or to continue such Borrowing and, in the case of a LIBOR Borrowing, may elect Interest
Periods therefor, all as provided in this Section 2.08. The applicable Borrower or the
Administrative Borrower on its behalf may elect different options with respect to different
portions of the affected Borrowing, in which case each such portion shall be allocated ratably
among the Lenders (with respect to Loans), based upon their Applicable Percentages, and the Loans
comprising each such portion shall be considered a separate Borrowing. This Section 2.08 shall not
apply to Swingline Borrowings or Protective Advances, which may not be converted or continued.

          (b) To make an election pursuant to this Section 2.08, a Borrower or the Administrative
Borrower on its behalf shall notify the Administrative Agent of such election by telephone or
electronic transmission by the time that a Borrowing Request would be required under Section 2.03
if such Borrower were requesting a Borrowing of the Type resulting from such election to be made on
the effective date of such election. Each such telephonic Interest Election Request shall be
irrevocable and shall be confirmed promptly by hand delivery, facsimile or electronic “pdf”
transmission to the Administrative Agent of a written Interest Election Request in a form approved
by the Administrative Agent and signed by such Borrower.

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          (c) Each telephonic and written (including permitted electronic transmission) Interest
Election Request shall specify the following information in compliance with Section 2.02:

          (i) the Borrowing to which such Interest Election Request applies and, if different
options are being elected with respect to different portions thereof, the portions thereof
to be allocated to each resulting Borrowing (in which case the information to be specified
pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing);

          (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

          (iii) whether the resulting Borrowing is to be an ABR Borrowing or a LIBOR Borrowing;
and

          (iv) if the resulting Borrowing is a LIBOR Borrowing, the Interest Period to be
applicable thereto after giving effect to such election, which shall be a period
contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a LIBOR Borrowing but does not specify an Interest
Period, then such Borrower shall be deemed to have selected an Interest Period of one month’s
duration.

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

          (e) If the Administrative Borrower or the applicable Borrower fails to deliver a timely
Interest Election Request with respect to a LIBOR Borrowing prior to the end of the Interest Period
applicable thereto, and unless such Borrowing is repaid as provided herein (including any
prepayment notice required pursuant to Section 2.11), then, at the end of such Interest Period,
such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision
hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the
request of the Required Lenders, so notifies the Administrative Borrower, then, so long as an Event
of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a LIBOR
Borrowing and unless repaid, each LIBOR Borrowing shall be converted to an ABR Borrowing at the end
of the then-current Interest Period applicable thereto.

          SECTION 2.09. Termination and Reduction of Commitments. (a) Unless previously terminated, all
Commitments shall terminate on the Maturity Date.

          (b) Upon delivering the notice required by Section 2.09(d), the Borrowers may at any time
terminate the Commitments upon (i) the payment in full of all outstanding Loans, together with
accrued and unpaid interest thereon, (ii) the cancellation and return of all outstanding Letters of
Credit (or alternatively, with respect to each such Letter of Credit, the cash collateralization of
such Letter of Credit (or at the discretion of the Administrative Agent a backup standby letter of
credit satisfactory to the Administrative Agent) by depositing in the LC Collateral Account an
amount in cash equal to 103% of the LC Exposure as of such date), and (iii) the payment in full of
all accrued and unpaid fees and all reimbursable expenses and other Obligations then earned, due,
and owing as of such termination together with accrued and unpaid interest thereon.

          (c) Upon delivering the notice required by Section 2.09(d), the Administrative Borrower may
from time to time reduce the Commitments (without premium or penalty); provided that (i)

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each reduction of the Commitments shall be in an amount that is not less than $1,000,000, and
in integral multiples of $1,000,000 thereafter, and (ii) the Administrative Borrower shall not
reduce the Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans
in accordance with Section 2.10, the sum of the Exposures would exceed the Available Commitments.

          (d) The Administrative Borrower shall notify the Administrative Agent of any election to
terminate or reduce the Commitments under paragraph (b) or (c) of this Section
2.09 at least three Business Days prior to the effective date of such termination or
reduction, specifying such election and the effective date thereof. Promptly following receipt of
any notice, Administrative Agent shall advise the Lenders of the contents thereof. Each notice
delivered by the Administrative Borrower pursuant to this Section 2.09 shall be irrevocable;
provided that a notice of termination of the Commitments delivered by the Administrative Borrower
may state that such notice is conditioned upon the effectiveness of other credit facilities, in
which case such notice may be revoked by the Administrative Borrower (by notice to the
Administrative Agent on or prior to the specified effective date) if such condition is not
satisfied. Any termination or reduction of the Commitments pursuant to this Section 2.09 shall be
permanent. Upon any reduction of the Commitments, the Commitment of each Lender shall be reduced
by such Lender’s Applicable Percentage of such reduction amount.

          SECTION 2.10. Repayment of Loans; Evidence of Debt. (a) The Borrowers hereby unconditionally
jointly and severally promise to pay (i) to the Administrative Agent for the account of each Lender
the then unpaid principal amount of each Revolving Loan on the Maturity Date, (ii) to the
Administrative Agent the then unpaid amount of each Protective Advance on the earlier of the
Maturity Date and written demand by the Administrative Agent, and (iii) to the Swingline Lender the
then unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the
14th day following the date on which such Swingline Loan was made; provided that on each date that
a Revolving Loan is made while any Protective Advance is outstanding, the Borrowers shall repay all
Protective Advances with the proceeds of such requested Revolving Loan.

          (b) At all times after the occurrence and during the continuance of an Event of Default
(subject to the provisions of Section 2.18(b) and to the terms of the Security Agreement), on each
Business Day, at or before 1:00 p.m., New York City time, the Administrative Agent shall apply all
immediately available funds credited to the Collection Account (without any premium or penalty or
commitment reduction) as follows; first to pay any fees or expense reimbursements then earned, due
and owing to any Agent, the Issuing Banks and the Lenders (other than in connection with Banking
Services) pursuant to the terms of the Loan Documents, pro rata; second to pay interest due and
payable in respect of any Revolving Loans (including Swingline Loans) and any Protective Advances
that may be outstanding, pro rata; third to prepay the principal of any Protective Advances that
may be outstanding, pro rata; and fourth to prepay the principal of the Loans (including Swingline
Loans) and then in the amount necessary to cash collateralize 103% of the LC Exposure, pro rata.
Amounts to be applied pursuant to this Section 2.10 in prepayment of Revolving Loans shall be
applied, as applicable, first to reduce outstanding ABR Loans. Any amounts remaining after each
such application shall be applied to prepay LIBOR Loans.

          (c) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrowers to such Lender resulting from each Loan made by such
Lender, including the amounts of principal and interest payable and paid to such Lender from time
to time hereunder.

          (d) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period (if any) applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and

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payable from the Borrowers to each Lender hereunder and (iii) the amount of any sum received
by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share
thereof. In addition, the Administrative Borrower shall receive a monthly statement detailing such
accounts from the Administrative Agent.

          (e) The entries made in the accounts maintained pursuant to paragraph (d) of this Section 2.10
shall be prima facie evidence of the existence and amounts of the obligations recorded therein
(absent manifest error); provided that the failure of any Lender or the Administrative Agent to
maintain such accounts or any error therein shall not in any manner affect the obligation of the
Borrowers to repay the Loans in accordance with the terms of this Agreement.

          (f) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the applicable Borrower promptly shall prepare, execute and deliver to such Lender a
promissory note payable to such Lender and its registered assigns and
in substantially the form of Exhibit G hereto; provided that the Lenders agree to provide at least three Business Days prior
notice of any such request for promissory notes on the Closing Date. Thereafter, the Loans
evidenced by such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory notes in such form
payable to the payee named therein and its registered assigns.

          SECTION 2.11. Prepayment of Loans. (a) Upon prior notice in accordance with paragraph (c) of
this Section 2.11, the Borrowers shall have the right at any time and from time to time to prepay
any Borrowing in whole or in part without premium or penalty (but subject to Section 2.16).
Prepayments made pursuant to this Section 2.11(a), first, shall be applied ratably to the Swingline
Loans and to outstanding LC Disbursements; and second, shall be applied ratably to the outstanding
Revolving Loans.

          (b) Mandatory Prepayments. Except for Protective Advances permitted under Section 2.04, in
the event and on each Business Day (or, if such reduction is due to the imposition of a new Reserve
or a change in the methodology of calculating an existing Reserve, within five Business Days
following such notice), on which a Borrower receives notice that the total Exposure exceeds the
lesser of (i) the Available Commitments and (ii) the Modified Borrowing Base, the Borrowers shall
prepay (on the date of receipt of such notice, if such notice is received by 11:00 a.m., New York
City time, on such day, and by the next Business Day, if such notice is received after 11:00 a.m.,
New York City time, on such day) the Revolving Loans or Swingline Loans and/or reduce LC Exposure,
in an aggregate amount equal to such excess by taking any of the following actions as it shall
determine at its sole discretion: (A) prepayment of Revolving Loans or Swingline Loans or (B)
deposit of cash in the LC Collateral Account to cash collateralize any outstanding Letters of
Credit.

          (c) Voluntary Prepayments. the Administrative Borrower shall notify the Administrative Agent
(and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed
by facsimile to the Administrative Agent (or, in the case of prepayment of a Swingline Loan, by
facsimile to the Swingline Lender, with copy to the Administrative Agent)), or by “pdf” electronic
transmission or by facsimile of any prepayment hereunder (i) in the case of prepayment of a LIBOR
Borrowing, not later than 2:00 p.m., New York City time, three Business Days before the date of
prepayment, (ii) in the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York
City time, on the Business Day of prepayment, or (iii) in the case of prepayment of a Swingline
Loan, not later than 2:00 p.m., New York City time, on the date of prepayment. Each such notice
shall be irrevocable and shall specify the prepayment date and the principal amount of each
Borrowing or portion thereof to be
prepaid; provided that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments as contemplated by Section 2.09, then such notice of

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prepayment may be revoked if such notice of termination is revoked in accordance with Section
2.09. Promptly following receipt of any such notice relating to a Borrowing, the Administrative
Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing
shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same
Type as provided in Section 2.02. Each prepayment of a Borrowing pursuant to this paragraph (c)
shall be applied to Swingline Loans until paid in full, before application to Revolving Loans.
Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13.

          SECTION 2.12. Fees. (a) The Borrowers agree to pay to the Administrative Agent, for the
account of each Lender, a commitment fee, which shall accrue at the applicable Commitment Fee Rate
on the average daily amount of the Available Commitment, as applicable, of such Lender during the
period from and including the Closing Date to but excluding the date on which the Lenders’
Commitments terminate; provided that any commitment fee accrued with respect to the Commitment of a
Defaulting Lender during the period prior to the time such Lender became a Defaulting Lender and
unpaid at such time shall not be payable by the Borrowers so long as such Lender shall be a
Defaulting Lender except to the extent that such commitment fee shall otherwise have been due and
payable by the Borrowers prior to such time; provided, further, that no commitment fee shall accrue
on the Commitment of a Defaulting Lender so long as such Lender shall be a Defaulting Lender.
Accrued commitment fees shall be payable in arrears on the last Business Day of each March, June,
September and December (commencing September 28, 2007) and on the date on which the Commitments
terminate, commencing on the first such date to occur after the date hereof. All commitment fees
shall be computed on the basis of a year of 365 or 366 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day). For purposes of
calculating the commitment fees only, no portion of the Commitments shall be deemed utilized as a
result of outstanding Swingline Loans.

          (b) The Borrowers agree to pay (i) to the Administrative Agent for the account of each Lender
a participation fee with respect to its participations in Letters of Credit at the same Applicable
Rate used to determine the interest rate applicable to LIBOR Loans on the daily amount of such
Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements),
during the period from and including the Closing Date to but excluding the later of the date on
which such Lender’s Commitment terminates and the date on which such Lender ceases to have any LC
Exposure, and (ii) to each Issuing Bank, for its own account, a fronting fee, in respect of each
Letter of Credit issued by such Issuing Bank for the period from the date of issuance of such
Letter of Credit through the expiration date of such Letter of Credit (or if terminated on an
earlier date, to the termination date of such Letter of Credit), computed at a rate equal to 0.125%
per annum of the daily Stated Amount of such Letter of Credit, as well as such Issuing Bank’s
reasonable and customary standard fees with respect to the issuance, amendment, renewal or
extension of any Letter of Credit or processing of drawings thereunder. Participation fees and
fronting fees accrued to but excluding the last Business Day of each March, June, September and
December (commencing September 28, 2007) shall be payable on the first Business Day following such
last day, commencing on the first such date to occur after the Closing Date; provided that all such
fees shall be payable on the date on which the Commitments terminate and any such fees accruing
after the date on which the Commitments terminate shall be payable on demand. Any other fees
payable to any Issuing Bank pursuant to
this paragraph shall be payable within ten Business Days after demand (accompanied by
reasonable back-up documentation therefor). All participation fees and fronting fees shall be
computed on the basis of a year of 365 or 366 days and shall be payable for the actual number of
days elapsed.

          (c) The Borrowers agree to pay to each of the Administrative Agent and the Collateral Agent,
for their own respective accounts, the agency fees set forth in the Engagement Letter, payable in
the amounts and at the times specified therein or as so otherwise mutually agreed upon by the

ITEC ABL Credit Agreement

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Borrowers and the Administrative Agent or Collateral Agent, as applicable, or such agency fees
as may otherwise be separately agreed upon by the Borrowers and the Administrative Agent or
Collateral Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent or the Collateral Agent, as applicable, (or, in each case, to the
applicable Issuing Bank, in the case of fees payable to it) for distribution, in the case of
commitment fees and participation fees, to the Lenders. Fees paid shall not be refundable under any
circumstances.

          SECTION 2.13. Interest. (a) The Loans comprising each ABR Borrowing (including each Swingline
Loan and each Protective Advance) shall bear interest at the Alternate Base Rate plus the
Applicable Rate.

          (b) The Loans comprising each LIBOR Borrowing shall bear interest at the Adjusted LIBOR for
the Interest Period in effect for such Borrowing plus the Applicable Rate.

          (c) Notwithstanding the foregoing, upon the occurrence and during the continuance of an Event
of Default, upon the request of the Required Lenders and effective thereupon, all (i) all Loans
shall bear interest at a rate of 2.00% plus the rate otherwise applicable to such Loan as provided
in the preceding paragraphs of this Section 2.13, and (ii) all participation fees payable in
accordance with Section 2.12(b)(i) shall be increased by 2.00%, in addition to the rate otherwise
payable thereunder.

          (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date
for such Loan and upon termination of the Commitments; provided that (i) interest accrued pursuant
to paragraph (c) of this Section 2.13 shall be payable on written demand, (ii) in the event of any
repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the
Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable
on the date of such repayment or prepayment, and (iii) in the event of any conversion of any LIBOR
Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall
be payable on the effective date of such conversion.

          (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that
interest computed by reference to the Alternate Base Rate at times when the Alternate Base Rate is
based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap
year), and in each case shall be payable for the actual number of days elapsed (including the first
day but excluding the last day). The applicable Alternate Base Rate, Adjusted LIBOR or LIBOR shall
be determined by the Administrative Agent, and such determination shall be conclusive absent
manifest error.

          SECTION 2.14. Alternate Rate of Interest. If prior to the commencement of any Interest Period
for a LIBOR Borrowing:

          (a) the Administrative Agent reasonably determines (which determination shall be conclusive
absent manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted LIBOR or the LIBOR, as applicable, for such Interest Period; or

          (b) the Administrative Agent is advised by the Required Lenders that the Adjusted LIBOR or the
LIBOR, as applicable, for such Interest Period will not adequately and fairly reflect the cost to
such Lenders of making or maintaining their Loans included in such Borrowing for such Interest
Period;

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then the Administrative Agent shall promptly give written notice thereof to the Administrative
Borrower and the Lenders by telephone or facsimile or “pdf” electronic transmission as promptly as
practicable thereafter and, until the Administrative Agent notifies the Administrative Borrower and
the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or continuation of any Borrowing
as, a LIBOR Borrowing shall be ineffective and such Borrowing shall be converted to an ABR
Borrowing on the last day of the Interest Period applicable thereof, and (ii) unless withdrawn
timely in accordance with the terms hereof, if any Borrowing Request requests a LIBOR Borrowing,
such Borrowing shall be made as an ABR Borrowing.

          SECTION 2.15. Increased Costs. (a) If any Change in Law shall:

          (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit extended by,
any Lender (except any such reserve requirement reflected in the Adjusted LIBOR) or Issuing
Bank; or

          (ii) impose on any Lender or Issuing Bank or the London interbank market any other
condition affecting this Agreement or LIBOR Loans made by such Lender or any Letter of
Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any LIBOR Loan (or of maintaining its obligation to make any such Loan) or to increase
the cost to such Lender or Issuing Bank of participating in, issuing or maintaining any Letter of
Credit or to reduce the amount of any sum received or receivable by such Lender or Issuing Bank
hereunder (whether of principal, interest or otherwise), then, within 10 Business Days following
delivery of the certificate contemplated by paragraph (c) of this Section 2.15, the applicable
Borrower or the Administrative Borrower on its behalf will pay to such Lender or Issuing Bank, as
applicable, such additional amount or amounts as will compensate such Lender or Issuing Bank, as
applicable, for such additional costs incurred or reduction suffered (except for any Taxes, which
shall be dealt with exclusively pursuant to Section 2.17).

          (b) If any Lender or Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or
Issuing Bank’s capital or on the capital of such Lender’s or Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by such Issuing Bank, to a
level below that which such Lender or such Issuing Bank or such Lender’s or such Issuing
Bank’s holding company could have achieved but for such Change in Law other than due to Taxes,
which shall be dealt with exclusively pursuant to Section 2.17 (taking into consideration such
Lender’s or such Issuing Bank’s policies and the policies of such Lender’s or such Issuing Bank’s
holding company with respect to capital adequacy), then from time to time following delivery of the
certificate contemplated by paragraph (c) of this Section 2.15 the applicable Borrower or the
Administrative Borrower on its behalf will pay to such Lender or such Issuing Bank, as applicable,
such additional amount or amounts as will compensate such Lender or such Issuing Bank or such
Lender’s or such Issuing Bank’s holding company for any such reduction suffered.

          (c) A certificate of a Lender or an Issuing Bank setting forth the amount or amounts necessary
to compensate such Lender or Issuing Bank or its holding company, as applicable, as specified in
paragraph (a) or (b) of this Section 2.15 and setting forth in reasonable detail the manner in
which such amount or amounts was determined shall be delivered to the Administrative Borrower and
shall be conclusive absent manifest error. The applicable Borrower or the Administrative Borrower
on its behalf

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shall pay such Lender or Issuing Bank, as applicable, the amount shown as due on any such
certificate within ten Business Days after receipt thereof.

          (d) Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant
to this Section 2.15 shall not constitute a waiver of such Lender’s or Issuing Bank’s right to
demand such compensation; provided that no Borrower shall not be required to compensate a Lender or
an Issuing Bank pursuant to this Section 2.15 for any increased costs or reductions incurred more
than 180 days prior to the date that such Lender or Issuing Bank, as applicable, notifies such
Borrower of the Change in Law giving rise to such increased costs or reductions and of such
Lender’s or Issuing Bank’s intention to claim compensation therefor; provided, further that, if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day
period referred to above shall be extended to include the period of retroactive effect thereof.

          SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any principal of any
LIBOR Loan other than on the last day of an Interest Period applicable thereto (including as a
result of an Event of Default); (b) the conversion of any LIBOR Loan other than on the last day of
the Interest Period applicable thereto; (c) the failure to borrow, convert, continue or prepay any
LIBOR Loan on the date specified in any notice delivered pursuant hereto (regardless of whether
such notice may be revoked under Section 2.09(d) and is revoked in accordance therewith); or (d)
the assignment of any LIBOR Loan other than on the last day of the Interest Period applicable
thereto as a result of a request by the applicable Borrower pursuant to Section 2.19, then, in any
such event, the applicable Borrower shall compensate each Lender promptly upon request for the
loss, cost and expense attributable to such event (including the loss of anticipated profits). In
the case of a LIBOR Loan, such loss, cost or expense to any Lender shall be deemed to be the amount
determined by such Lender to be the excess, if any, of (i) the amount of interest which would have
accrued on the principal amount of such Loan had such event not occurred, at the Adjusted LIBOR
that would have been applicable to such Loan, for the period from the date of such event to the
last day of the then-current Interest Period therefor (or, in the case of a failure to borrow,
convert or continue, for the period that would have been the Interest Period for such Loan), over
(ii) the amount of interest which would accrue on such principal amount for such period at the
interest rate which such Lender would bid were it to bid,
at the commencement of such period, for dollar deposits of a comparable amount and period from
other banks in the eurodollar market. A certificate of any Lender setting forth any amount or
amounts that such Lender is entitled to receive pursuant to this Section 2.16 and the basis
therefor and setting forth in reasonable detail the manner in which such amount or amounts was
determined shall be delivered to the Administrative Borrower and shall be conclusive absent
manifest error. The applicable Borrower or the Administrative Borrower on its behalf shall pay (or
shall cause the applicable Borrower to pay) such Lender the amount shown as due on any such
certificate within ten Business Days after receipt thereof.

          SECTION 2.17. Taxes. (a) Any and all payments by or on account of any obligation of any
Borrower hereunder shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided that if a Borrower shall be required to deduct any Indemnified Taxes or
Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that
after making all required deductions (including deductions applicable to additional sums payable
under this Section 2.17) the Administrative Agent, Lender or any Issuing Bank (as applicable)
receives an amount equal to the sum it would have received had no such deductions been made, (ii)
such Borrower shall make such deductions and (iii) such Borrower shall timely pay the full amount
deducted to the relevant Governmental Authority in accordance with applicable law. If at any time a
Borrower is required by applicable law to make any deduction or withholding from any sum payable
hereunder, such Borrower shall promptly notify the relevant Lender, Administrative Agent or Issuing
Bank upon becoming aware of the same. In addition, each Lender, the Administrative Agent or Issuing
Bank shall promptly notify any Borrower or the Administrative Borrower upon becoming aware of any
circumstances as a result of which

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such Borrower is or would be required to make any deduction or withholding from any sum
payable hereunder.

          (b) In addition, the Borrowers shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) Each Borrower shall indemnify each Agent, each Lender and each Issuing Bank, within ten
Business Days after written demand therefor (including documentation reasonably supporting such
request), for the full amount of any Indemnified Taxes or Other Taxes paid by such Agent, such
Lender or such Issuing Bank, as applicable, on or with respect to any payment by or on account of
any obligation of such Borrower hereunder (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section 2.17) and any penalties, interest
and reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental
Authority. A certificate as to the amount of such payment or liability delivered to the
Administrative Borrower by a Lender or an Issuing Bank, or by an Agent on its own behalf or on
behalf of a Lender or an Issuing Bank, shall be conclusive absent manifest error.

          (d) Promptly after any payment of Indemnified Taxes or Other Taxes by a Borrower to a
Governmental Authority, such Borrower shall deliver to the Administrative Agent the original or a
certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy
of the return reporting such payment or other evidence of such payment reasonably satisfactory to
the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which any Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Administrative Borrower (with a copy to the Administrative Agent), at the time or times prescribed
by applicable law, such properly completed and executed documentation prescribed by applicable law
or reasonably requested by the Administrative Borrower as will permit such payments to be made
without withholding or at a reduced rate. In particular, on or prior to the date which is ten
Business Days after the Closing Date, each Foreign Lender shall deliver to the Administrative
Borrower (with a copy to the Administrative Agent) two duly signed, properly completed copies of
either IRS Form W-8BEN or any successor thereto (relating to such Foreign Lender and entitling it
to an exemption from, or reduction of, United States withholding tax on all payments to be made to
such Foreign Lender by the Administrative Borrower or any other Borrower pursuant to this Agreement
or any other Loan Document) or IRS Form W-8ECI or W-8IMY or any successor thereto (relating to all
payments to be made to such Foreign Lender by the Administrative Borrower or any other Borrower
pursuant to this Agreement or any other Loan Document) or such other evidence reasonably
satisfactory to the Administrative Borrower and the Administrative Agent that such Foreign Lender
is entitled to an exemption from, or reduction of, United States withholding tax, including any
exemption pursuant to Section 871(h) or 881(c) of the Code, and in the case of a Foreign Lender
claiming such an exemption under Section 881(c) of the Code, a certificate that establishes in
writing to the Administrative Borrower and the Administrative Agent that such Foreign Lender is not
(i) a “bank” as defined in Section 881(c)(3)(A) of the Code, (ii) a 10-percent stockholder within
the meaning of Section 881(c)(3)(B) of the Code, or (iii) a controlled foreign corporation related
to any Borrower within the meaning of Section 881(c)(3)(C) of the Code. Thereafter and from time to
time, each such Foreign Lender shall (A) promptly submit to the Administrative Borrower (with a
copy to the Administrative Agent) such additional duly completed and signed copies of one or more
of such forms or certificates (or such successor forms or certificates as shall be adopted from
time to time by the relevant United States taxing authorities) as may then be available under
then-current United States Laws and regulations to avoid, or such evidence as is reasonably
satisfactory to the Administrative Borrower and

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the Administrative Agent of any available exemption from, or reduction of, United States
withholding taxes in respect of all payments to be made to such Foreign Lender by the
Administrative Borrower or other Borrower pursuant to this Agreement, or any other Loan Document,
in each case, (1) on or before the date that any such form, certificate or other evidence expires
or becomes obsolete, (2) after the occurrence of any event requiring a change in the most recent
form, certificate or evidence previously delivered by it to the Administrative Borrower and (3)
from time to time thereafter if reasonably requested by ITEC or the Administrative Agent, and (B)
promptly notify the Administrative Borrower and the Administrative Agent of any change in
circumstances which would modify or render invalid any claimed exemption or reduction.

          (f) Each Lender, Agent or Issuing Bank that is a United States person, agrees to complete and
deliver to the Administrative Borrower a statement signed by an authorized signatory of the Lender
to the effect that it is a United States person together with a duly completed and executed copy of
Internal Revenue Service Form W-9 or successor form.

          (g) If the Administrative Agent or a Lender determines, in good faith in its reasonable
discretion, that it has received a refund of any Indemnified Taxes or Other Taxes as to which it
has been indemnified by a Borrower or with respect to which such Borrower has paid
additional amounts pursuant to this Section 2.17, it shall pay over such refund to such
Borrower (but only to the extent of indemnity payments made, or additional amounts paid, by such
Borrower under this Section 2.17 with respect to the Taxes or Other Taxes giving rise to such
refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender (including
any Taxes imposed with respect to such refund) as is determined by the Administrative Agent or such
Lender in good faith in its reasonable discretion, and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund); provided, that such
Borrower, upon the request of the Administrative Agent or such Lender, agrees to repay as soon as
reasonably practicable the amount paid over to such Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative Agent or such Lender
in the event the Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. This Section 2.17 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 such Borrower or any other Person.

          (h) If the Administrative Borrower determines in good faith that a reasonable basis exists for
contesting any Indemnified Taxes or Other Taxes for which additional amounts have been paid under
this Section 2.17, the relevant Lender, Agent or Issuing Bank shall cooperate with the
Administrative Borrower in challenging such Indemnified Taxes or Other Taxes, at the Administrative
Borrower’s expense, if so requested by the Administrative Borrower in writing.

          SECTION 2.18. Payments Generally; Allocation of Proceeds; Sharing of Set-offs. (a) Unless
otherwise specified, the Borrowers shall make each payment required to be made by them hereunder
(whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable
under Section 2.15, 2.16 or 2.17, or otherwise) prior to 2:00 p.m., New York City time, on the date
when due, in immediately available funds, without set-off or counterclaim. Any amounts received
after such time on any date may, in the reasonable discretion of the Administrative Agent, be
deemed to have been received on the next succeeding Business Day for purposes of calculating
interest thereon. All such payments shall be made to the Administrative Agent to the applicable
account designated to the Administrative Borrower by the Administrative Agent, except payments to
be made directly to the applicable Issuing Bank or the Swingline Lender as expressly provided
herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made
directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be

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due on a day that is not a Business Day, the date for payment shall be extended to the next
succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall
be payable for the period of such extension. All payments hereunder shall be made in Dollars. Any
payment required to be made by the Administrative Agent hereunder shall be deemed to have been made
by the time required if the Administrative Agent shall, at or before such time, have taken the
necessary steps to make such payment in accordance with the regulations or operating procedures of
the clearing or settlement system used by the Administrative Agent to make such payment.

          (b) All proceeds of Collateral received by the Agents after an Event of Default has occurred
and is continuing, shall, if the Required Lenders direct that such proceeds be applied to
repayment, be applied, first, to, ratably, pay any fees, indemnities, or expense
reimbursements then due to the Agents or any Issuing Bank from the Borrowers (other than in
connection with Banking Services) under the Loan Documents; second, ratably, to pay any fees or
expense reimbursements then due to the Agents from the Borrowers (other than in connection with
Banking Services) under the Loan Documents; third, to pay interest due and payable in respect of
any Revolving Loans, Swingline Loans and any Protective Advances, ratably; fourth, to pay the
principal of the Protective Advances; fifth, to prepay principal on the Loans (other than the
Protective Advances) and unreimbursed LC Disbursements, ratably; sixth, to pay an amount to the
Administrative Agent equal to 103% of the LC Exposure on such date, to be held in the LC Collateral
Account as cash collateral for such Obligations; seventh, to pay any Banking Services Obligations
then due with respect to Banking Services to the extent they constitute Secured Obligations;
eighth, to the payment of any other Secured Obligation then due and owing to the Agents or any
Lender by the Borrowers; and ninth, to the Borrowers or as the Administrative Borrower shall
direct.

          (c) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans or participations in
LC Disbursements, Swingline Loans or Protective Advances resulting in such Lender receiving payment
of a greater proportion of the aggregate amount of its Loans and participations in LC
Disbursements, Swingline Loans or Protective Advances and accrued interest thereon than the
proportion received by any other Lender, then the Lender receiving such greater proportion shall
purchase (for cash at face value) participations in the Loans and participations in LC
Disbursements, Swingline Loans and Protective Advances of other Lenders at such time outstanding to
the extent necessary so that the benefit of all such payments shall be shared by the Lenders
ratably in accordance with the aggregate amount of principal of and accrued interest on their
respective Loans and participations in LC Disbursements, Swingline Loans and Protective Advances;
provided that (i) if any such participations are purchased and all or any portion of the payment
giving rise thereto is recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the provisions of this
paragraph shall not be construed to apply to any payment made by any Borrower pursuant to and in
accordance with the express terms of this Agreement or any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its Loans or
participations in LC Disbursements, Swingline Loans or Protective Advances to any assignee or
participant, other than to any Borrower or any subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against any Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were a direct creditor
of such Borrower in the amount of such participation.

          (d) Unless the Administrative Agent shall have received notice from a Borrower prior to the
date on which any payment is due to the Administrative Agent for the account of the Lenders or the
applicable Issuing Bank hereunder that such Borrower will not make such payment, the Administrative
Agent may assume that such Borrower has made such payment on such date in

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accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or
the applicable Issuing Bank, as applicable, the amount due. In such event, if such Borrower has not
in fact made such payment, then each of the Lenders or the applicable Issuing Bank, as applicable,
severally agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender or Issuing Bank with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by
the Administrative Agent in accordance with banking industry rules on interbank compensation.

          (e) If any Lender shall fail to make any payment required to be made by it pursuant to
Sections 2.04(b), 2.05(b), 2.06(d) or (e), 2.07(b), 2.18(c) or 9.03, then the Administrative Agent
may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts
thereafter received by the Administrative Agent for the account of such Lender to satisfy such
Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid.

          SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests
compensation under Section 2.15, or if the Borrowers are required to pay any additional amount to
any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17,
then such Lender shall use reasonable efforts to designate a different lending office for funding
or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its
offices, branches or affiliates, if, in the reasonable judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as
applicable, in the future and (ii) would not subject such Lender to any material unreimbursed cost
or expense and would not otherwise be disadvantageous to such Lender in any material respect;
provided, however, that the Borrowers shall not be liable for such costs and expenses of a Lender
requesting compensation if (i) such Lender becomes a party to this Agreement on a date after the
Closing Date and (ii) the relevant Change in Law occurs on a date prior to the date such Lender
becomes a party hereto. The Borrowers hereby agree to pay all reasonable costs and out-of-pocket
expenses incurred by any Lender in connection with any such designation or assignment. A
certificate setting forth such costs and expenses shall be submitted by such Lender to the
Administrative Borrower, which shall be presumptive evidence thereof, absent manifest error.

          (b) If any Lender requests compensation under Section 2.15, or if the Borrowers are required
to pay any additional amount to any Lender or any Governmental Authority for the account of any
Lender pursuant to Section 2.17, or is a Defaulting Lender, then the Administrative Borrower may,
at its sole expense and effort, upon notice to such Lender and the Administrative Agent, replace
such Lender by requiring such Lender to assign and delegate (and such Lender shall be obligated to
assign and delegate), without recourse (in accordance with and subject to the restrictions
contained in Section 9.04), all its interests, rights and obligations under this Agreement to an
assignee that shall assume such obligations (which assignee may be another Lender, if a Lender
accepts such assignment); provided that (i) the Administrative Borrower shall have received the
prior written consent of the Administrative Agent and each Issuing Bank, which consent in each case
shall not unreasonably be withheld, delayed or conditioned (ii) such Lender shall have received
payment of an amount equal to the outstanding principal of its Revolving Loans and participations
in LC Disbursements, Swingline Loans and Protective Advances, accrued interest thereon, accrued
fees and all other amounts payable to it hereunder, from the assignee (to the extent of such
outstanding principal and accrued interest and fees) or the Administrative Borrower (in the case of
all other amounts), and (iii) in the case of any such assignment resulting from a claim for
compensation under Section 2.15 or payments required to be made pursuant to Section 2.17, such
assignment will result in a reduction in such compensation or payments. A Lender (other than a
Defaulting Lender) shall not be required to make any such assignment and delegation if, prior
thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Administrative Borrower

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to require such assignment and delegation cease to apply. Nothing in this Section 2.19 shall
be deemed to prejudice any rights that any Borrower may have against any Lender that is a
Defaulting Lender.

          SECTION 2.20. Illegality. If any Lender reasonably determines that any Change in Law has made
it unlawful, or that any Governmental Authority has asserted after the Closing Date that it is
unlawful, for such Lender or its applicable lending office to make or maintain any LIBOR Loans,
then, on notice thereof by such Lender to the Administrative Borrower through the Administrative
Agent, any obligations of such Lender to make or continue LIBOR Loans or to convert ABR Borrowings
to LIBOR Borrowings shall be suspended until such Lender notifies the Administrative Agent and the
Administrative Borrower that the circumstances giving rise to such determination no longer exist.
Upon receipt of such notice, the Administrative Borrower shall upon demand from such Lender (with a
copy to the Administrative Agent), either convert all LIBOR Borrowings of such Lender to ABR
Borrowings, either on the last day of the Interest Period therefor, if such Lender may lawfully
continue to maintain such LIBOR Borrowings to such day, or immediately, if such Lender may not
lawfully continue to maintain such Loans. Upon any such prepayment or conversion, the Borrowers
shall also pay accrued interest on the amount so prepaid or converted. Each Lender agrees to
designate a different lending office if such designation will avoid the need for such notice and
will not, in the determination of such Lender, otherwise be disadvantageous to it.

          SECTION 2.21. Reserves; Change in Reserves. If Excess Availability is not equal to at least
$25,000,000 (with an up to $10 million credit for Suppressed Availability then in effect), or if
the aggregate amount of funds not constituting Collateral deposited into the Collection Account
exceeds $7,500,000 for any monthly period as reported at the end of such month in the quarterly
report required to be delivered pursuant to Section 5.01 (b)(iii) hereof, the Agents may in their
Permitted Discretion establish a Reserve with respect to such funds. In addition, the Agents may at
any time and from time to time in the exercise of their Permitted Discretion establish and increase
or decrease Reserves; provided that the Agents shall have provided the Administrative Borrower at
least five Business Days’ prior written notice of any such establishment or increase. The amount of
any Reserve established by the Agents shall have a reasonable relationship to the event, condition
or other matter that is the basis for the Reserve. Upon delivery of such notice, the Agents shall
be available to discuss the proposed Reserve or increase, and the Administrative Borrower and the
other Borrowers may take such action as may be required so that the event, condition or matter that
is the basis for such Reserve or increase no longer exists, in a manner and to the extent
reasonably satisfactory to the Agents in the exercise of their Permitted Discretion. In no event
shall such notice and opportunity limit the right of the Agents to establish or change such
Reserve, unless the Agents shall have determined in their Permitted Discretion that the event,
condition or other matter that is the basis for such new Reserve or such change no longer exists or
has otherwise been adequately addressed by the Borrower. Notwithstanding anything herein to the
contrary, Reserves shall not duplicate eligibility criteria contained in the definition of
“Eligible Inventory” and vice versa, or reserves or criteria deducted in computing the cost or
market value of Eligible Inventory or the Net Orderly Liquidation Value of Eligible Inventory and
vice versa.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          Each Borrower hereby represents and warrants as follows:

          SECTION 3.01. Organization. Each Borrower (a) is a corporation, limited liability company or
limited partnership duly organized, validly existing and in good standing (to the extent

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applicable) under the laws of the jurisdiction of its formation, (b) 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 (c) 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.

          SECTION 3.02. Borrower Information. Set forth on Schedule 3.02 hereto is a complete and
accurate list of all Borrowers as of the date hereof, showing as of the date hereof (as to each
Borrower) the jurisdiction of its incorporation or formation, the address of its principal place of
business and its U.S. taxpayer identification number.

          SECTION 3.03. Powers. The execution, delivery and performance by each Borrower of each Loan
Document to which it is or is to be a party is within such Borrower’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 (a)
contravene such Borrower’s charter, bylaws, limited liability company agreement, partnership
agreement or other constituent documents, (b) violate any law, rule, regulation (including, without
limitation, Regulation X of the Board), order, writ, judgment, injunction, decree, determination or
award binding upon any Borrower, (c) 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 Borrower or any of the Borrowers’
properties except, in the case of performance by any such Borrower, to the extent that such
conflict or breach would not be reasonably expected to result in a Material Adverse Effect, or (d)
result in or require the creation or imposition of any Lien upon or with respect to any of the
properties of any Borrower. As of the date hereof, no Borrower 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.

          SECTION 3.04. Governmental Authorization. No Governmental Authorization, and no notice to or
filing with, any Governmental Authority is required for (a) the due execution, delivery,
recordation, filing or performance by any Borrower of any Loan Document to which it is or is to be
a party, or (b) 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 Borrowers and their subsidiaries in the ordinary course of business and such filings
as may be required under federal and state securities laws for purposes of disclosure.

          SECTION 3.05. Due Execution. This Agreement has been, and each other Loan
Document will have been, duly executed and delivered by each Borrower thereto. This Agreement
is, and each other Loan Document when delivered hereunder will be, the legal, valid and binding
obligation of each Borrower party thereto, enforceable against such Borrower 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.

          SECTION 3.06. No Action, Suit, Etc. There is no action, suit, investigation, litigation or
proceeding against any Borrower, including any Environmental Action, pending or threatened in
writing 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

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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 Navistar and the Borrowers’ 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 Borrower, of the Disclosed Matters from that described on Schedule 3.06
hereto.

          SECTION 3.07. No Material Adverse Change. There has been no Material Adverse Change since
October 31, 2004 (or, from and after the delivery of the financial statements pursuant to Section
4.01(c) 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.

          SECTION 3.08. Consolidated Financials. The unaudited financial statements delivered to the
Lenders by the Administrative Borrower pursuant to Section 4.01(c) prior to the date hereof, and
any additional reporting requirements delivered to the Lenders pursuant to Section 5.01 were
prepared in good faith.

          SECTION 3.09. Information. No written information, exhibit or report (other than the
projections, budgets, estimates, forward-looking information and general market data) about any
Borrower or its subsidiaries prepared by or on behalf of any Borrower and furnished by or on behalf
of any Borrower 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.

          SECTION 3.10. Margin Regulations. No Borrower is engaged in the business of extending credit
for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Loan 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.

          SECTION 3.11. Investment Company Act. No Borrower 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 Loans, 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.

          SECTION 3.12. Solvency. (a) Immediately after the consummation of the Transactions to occur on
the Closing Date and immediately following the making of each Loan and after giving effect to the
application of the proceeds of each Loan, (i) the fair value of the assets of the Borrowers, on a
consolidated basis, at a fair valuation and on a going concern basis, will exceed the debts and
liabilities, direct, subordinated, contingent or otherwise, of the Borrowers on a consolidated
basis; (ii) the present fair saleable value of the property of the Borrowers on a consolidated
basis (on a going concern basis) will be greater than the amount that will be required to pay the
probable liability of the Borrowers on a consolidated basis, on their debts and other liabilities,
direct, subordinated, contingent or otherwise, as such debts and other liabilities become absolute
and matured; (iii) the Borrowers on a consolidated basis will be able to pay their debts and
liabilities, direct, subordinated, contingent or otherwise, as such debts

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and liabilities become absolute and matured; and (iv) the Borrowers on a consolidated basis
will not have unreasonably small capital with which to conduct the businesses in which they are
engaged as such businesses are now conducted and are proposed to be conducted following the Closing
Date.

          (b) The Borrowers do not intend to incur debts beyond their ability to pay such debts as they
mature, taking into account the timing and amounts of cash to be received by the Borrowers and the
timing and amounts of cash to be payable by the Borrowers on or in respect of their Debt.

          SECTION 3.13. ERISA.

          (a) 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 Borrower or
any ERISA Affiliate.

          (b) 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.

          (c) Neither any Borrower nor any ERISA Affiliate has incurred or is reasonably expected to
incur any material Withdrawal Liability.

          (d) Neither any Borrower 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.

          SECTION 3.14. Environmental. (a) Except as would not reasonably be expected
to have a Material Adverse Effect, the operations and properties of each Borrower and 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 (i)
form the basis of an Environmental Action against any Borrower or their properties that could
reasonably be expected to have a Material Adverse Effect or (ii) cause any such property to be
subject to any restrictions on ownership, occupancy, use or transferability under any Environmental
Law.

          (b) In each case except as would not reasonably be expected to have a Material Adverse Effect:
(i) none of the properties currently or formerly owned or operated by any Borrower 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; (ii) 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 Borrower, to the best of its knowledge, on any property formerly
owned or operated by any Borrower; there is no asbestos or asbestos-containing material on any
property currently owned or operated by any Borrower; and (iii) Hazardous Materials have not been
released, discharged or disposed of on any property currently or formerly owned or operated by any
Borrower.

          (c) In each case except as would not reasonably be expected to have a Material Adverse Effect:
(i) neither any Borrower is undertaking, and has not completed, either individually or together
with other potentially responsible parties, any investigation or assessment or remedial or

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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 (ii)
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 Borrower have been disposed of in a
manner not reasonably expected to result in liability to any Borrower.

          SECTION 3.15. Taxes. Each Borrower 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 5.04 has paid all taxes shown thereon to be due, together with
applicable interest and penalties.

          SECTION
3.16. Existing Debt. Set forth on Part I of
Schedule 3.16 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 3.16 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.

          SECTION
3.17. Existing Liens. Set forth on Schedule 3.17 hereto is a complete and accurate
list of all Liens on the property or assets of any Borrower 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 Borrower subject thereto.

          SECTION 3.18. Ownership Change. 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 Borrowers.

          SECTION
3.19. Insurance. Schedule 3.19 sets forth a true, complete and correct description of
all property and liability insurance maintained by or on behalf of the Borrowers as of the Closing
Date. As of the Closing Date, all such insurance is in full force and effect and all premiums in
respect of such insurance have been duly paid. Each Borrower believes that the insurance maintained
by or on behalf of such Borrower complies with the requirements of Section 5.09 hereof. It is
acknowledged and agreed the insurance set forth on
Schedule 3.19 satisfies the insurance
requirements set forth in the Loan Documents.

          SECTION 3.20. Security Interest in Collateral. The provisions of this Agreement and the other
Loan Documents create legal and valid Liens on all the Collateral of the type in which a security
interest can be created under Article 9 of the UCC in favor of the Collateral Agent, for the
benefit of the Collateral Agent and the Lenders; and upon the proper filing of UCC financing
statements required pursuant to Section 4.01(k) (and payment of any applicable fees), such Liens
constitute perfected and continuing Liens on the Collateral (to the extent a security interest in
such Collateral and any proceeds of any item of Collateral can be perfected through the filing of
UCC financing statements), securing the Secured Obligations, enforceable against the applicable
Borrower and all third parties (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), and having priority
over all other Liens on the Collateral except in the case of (a) Permitted Liens, to the extent any
such Permitted Liens would have priority over the Liens in favor of the

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Collateral Agent pursuant to any applicable law, and (b) Liens perfected only by possession,
notation or control (including possession, notation or control of any certificate of title) to the
extent the Collateral Agent has not obtained or does not maintain possession of such Collateral;
provided, that such possession, control or notation shall only be required to the extent set forth
in the Security Agreement.

          SECTION 3.21. Sanctioned Persons. None of Navistar, any Borrower, or any subsidiary thereof,
nor, to the knowledge of any Borrower, any director, officer, agent, employee or Affiliate of
Navistar, any Borrower or any subsidiary thereof is currently subject to any U.S. sanctions
administered by the Office of Foreign Assets Control of the U.S.
Treasury Department (“OFAC”); and
the Borrowers will not directly or indirectly use the proceeds of the Loans or the Letters of
Credit or otherwise make available such proceeds to any person, for the purpose of financing the
activities of any person currently subject to any U.S. sanctions administered by OFAC.

          SECTION 3.22. “In the Business of Selling” Inventory Collateral. Each Borrower (a) sells
Inventory Collateral, (b) holds Inventory Collateral for sale, (c) is “in the business of selling”
Inventory Collateral for purposes of the applicability of UCC Section 9-311(d), and (d) does not
engage in the business of leasing trucks.

          SECTION 3.23. Labor Disputes. Except as would not reasonably be expected to have a Material
Adverse Effect: (a) there are no strikes, lockouts or slowdowns against any Borrower pending or, to
the knowledge of any Borrower, threatened, (b) the hours worked by and payments made to employees
of each Borrower have not been in violation of the Fair Labor Standards Act or any other applicable
Federal, state, local or foreign law dealing with such matters, and (c) all payments due from any
Borrower on account of wages and employee health and welfare insurance and other benefits, have
been paid or accrued as a liability on the books of each Borrower to the extent required by GAAP;
provided, however, the Agents and the Lenders hereby acknowledge, with respect to the GAAP
accounting treatment in clause (c) above, that the existence of the matters set forth in the
Disclosure Filings and the results created by the existence thereof shall not be deemed to
constitute a misrepresentation hereunder. Except as would not reasonably be expected to have a
Material Adverse Effect, the consummation of the Transactions will not give rise to a right of
termination or right of renegotiation on the part of any union under any collective bargaining
agreement to which Navistar or any Borrower (or any predecessor) is a party or by which Navistar or
any Borrower (or any predecessor) is bound.

ARTICLE IV

CONDITIONS

          SECTION 4.01. Closing Date. The obligations of the Lenders to make Loans, and of any Issuing
Bank to issue Letters of Credit hereunder, shall not become effective until the date on which each
of the following conditions is satisfied (or waived in accordance with this Agreement):

          (a) Credit Agreement and Loan Documents. The Administrative Agent (or its counsel) shall have
received:

          (i) from each party hereto either (A) a counterpart of this Agreement signed on behalf
of such party, or (B) written evidence reasonably satisfactory to the Administrative Agent
(which may include facsimile or electronic transmission of a signed signature page of this
Agreement) that such party has signed a counterpart of this Agreement; and

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          (ii) duly executed copies of the Loan Documents and such other certificates,
documents, instruments and agreements as provided for herein in connection with the
transactions contemplated by this Agreement and the other Loan Documents, including any
promissory notes requested by a Lender at least three Business Days prior to the Closing
Date pursuant to Section 2.10;

          (b) Legal Opinions. The Administrative Agent shall have received, on behalf of itself, the
Lenders and each Issuing Bank on the Closing Date (i) a written opinion of Kirkland & Ellis LLP,
counsel for Navistar, the Administrative Borrower and the other Borrowers, and (ii) a written
opinion of general counsel of the Administrative Borrower, in each case (A) in form and substance
reasonably satisfactory to the Agents, (B) dated the Closing Date, and (C) addressed to each
Issuing Bank on the Closing Date, the Agents and the Lenders.

          (c) Financial Statements. The Administrative Agent shall have received the Monthly Unaudited
Reports, in the form delivered under the January Credit Agreement, for each month since December
31, 2006 and ended at least 30 days prior to the Closing Date, and if any
Monthly Unaudited Report has been modified, any such modifications made to any Monthly
Unaudited Reports issued within the 24 months prior to the Closing Date

(d) Closing Certificates; Certified Certificate of Incorporation; Good Standing
Certificates. The Administrative Agent shall have received:

          (i) a certificate of each Borrower, dated the Closing Date and executed by its
Secretary or Assistant Secretary, which shall (A) certify as to the attached resolutions of
its Board of Directors, members or other body authorizing the execution, delivery and
performance of the Loan Documents to which it is a party, (B) identify by name and title
and bear the signatures of the officers of such Borrower authorized to sign the Loan
Documents to which it is a party, and (C) contain appropriate attachments, including the
certificate or articles of incorporation or organization of each Borrower certified by the
relevant authority of the jurisdiction of organization of such Borrower (which
certification shall confirm the payment of all franchise taxes) and a true and correct copy
of its by-laws or operating, management or partnership agreement; and

          (ii) a copy of a certificate of the Secretary of State of the jurisdiction of
incorporation of each Borrower, dated reasonably near the Closing Date, which shall certify
such Borrower is duly incorporated and in good standing or presently subsisting under the
laws of the State of the jurisdiction of its incorporation.

          (e) No Default Certificate. The Administrative Agent shall have received certificate of each
Borrower signed on behalf of such Borrower by its President or a Senior Vice President or Vice
President or Treasurer, dated the Closing Date (the statements made in which certificate shall be
true on and as of the Closing Date), certifying as to:

          (i) the absence of any amendments to the charter of such Borrower since the date of
the Secretary of State’s certificate referred to in Section 4.01(d)(ii);

          (ii) the truth in all material respects of the representations and warranties
contained in the Loan Documents as though made on and as of the Closing Date;

          (iii) the absence of any event occurring and continuing, or, if applicable, resulting
from the initial Borrowing, that constitutes a Default; and

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          (iv) the Excess Availability amount as of the Closing Date (giving effect to all
(A) Borrowings to be made, and (B) Letters of Credit to be issued, on such date).

          (f) Fees. The Agents shall have received all fees required to be paid by the Borrowers, and
all reasonable out-of-pocket expenses which are reimbursable pursuant to the Loan Documents and for
which invoices have been presented at least one Business Day prior to the Closing Date (including
the reasonable documented fees and expenses of legal counsel).

          (g) Lien and Judgment Searches. The Administrative Agent shall have received the results of
recent lien and judgment searches in each of the jurisdictions contemplated by the Perfection
Certificate, and such search shall reveal no material judgments and no Liens on
any of the inventory assets of the Borrowers, except for Liens permitted by Section 6.02 or
discharged on or prior to the Closing Date pursuant to a pay-off letter or other documentation
reasonably satisfactory to the Administrative Agent.

          (h) Solvency. The Administrative Agent shall have received a customary certificate from the
chief financial officer or treasurer of the Administrative Borrower certifying that the
Administrative Borrower, the other Borrowers, and their subsidiaries, on a consolidated basis after
giving effect to the Transactions contemplated to occur under the Loan Documents, are solvent
(within the meaning of Section 3.12).

          (i) Borrowing Base Certificate. The Administrative Agent shall have received prior to the
Closing Date a Borrowing Base Certificate which calculates the Borrowing Base as of the last
Business Day of the most recent month ended at least ten Business Days prior to the Closing Date.

          (j) Closing Minimum Excess Availability. After giving effect to all Borrowings to be made on
the Closing Date and the issuance of any Letters of Credit on the Closing Date, Excess Availability
shall be not less than $100,000,000.

          (k) Perfection Certificate; Filings, Registrations and Recordings. The Administrative Agent
shall have received from each Borrower a completed Perfection Certificate, dated the Closing Date
and signed by a Responsible Officer each Borrower, together with all attachments contemplated
thereby. Each document (including any UCC financing statement) required by the Collateral Documents
or under law or reasonably requested by the Agents to be filed, registered or recorded in order to
create in favor of the Collateral Agent, for the benefit of the Lenders, a perfected Lien on the
Collateral described therein, prior and superior in right to any other Person (other than with
respect to Liens permitted by Section 6.02), shall be in proper form for filing, registration or
recordation. The Collateral Agent, on behalf of the Lenders, shall have a security interest in the
Collateral of the type and priority described in the Collateral Documents (subject to Liens
permitted by Section 6.02).

          (l) No Litigation, Proceeding etc. There shall exist no action, suit, investigation,
litigation or proceeding against the Borrowers (other than (x) the matters described on Schedule
3.06 hereto (the “Disclosed Matters”), and (y) the matters set forth in the Disclosure Filings),
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 Navistar, any Borrower or any of its subsidiaries, of the Disclosed Matters
from that described on Schedule 3.06 hereto.

          (m) Other Debt. After giving effect to the Transactions, the Borrowers shall not have any
material outstanding Debt in a principal amount in excess of $50,000,000 (other than existing

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intercompany debt) other than (i) the Facility Obligations and Debt created hereunder, and
(ii) Existing Debt set forth on Schedule 3.16.

          (n) Insurance. The Administrative Agent shall have received a customary insurance broker’s
letter, in form and substance reasonably satisfactory to the Administrative Agent, confirming that
the insurance carried by the Borrowers complies with the terms of the
Security Agreement and is reasonable and customary, or other evidence thereof reasonably
satisfactory to the Administrative Agent.

          (o) Field Examination, Appraisal. The Agents shall have received (i) the results of a
completed field examination with respect to the Collateral to be included in calculating the
Borrowing Base and of the relevant accounting systems, policies and procedures of the Borrowers,
and (ii) an appraisal of the Net Orderly Liquidation Value of Inventory in form and substance
reasonably satisfactory to the Agents. The Agents shall be reasonably satisfied with the Borrowers’
cash management system, blocked account agreements and lockbox arrangements pertaining to the LC
Collateral Account and the Collection Account.

          (p) USA PATRIOT Act. The Administrative Agent shall have received 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 USA PATRIOT Act, such
documentation to be received at least five Business Days prior to the Closing Date.

The Administrative Agent shall notify the Administrative Borrower and the Lenders of the Closing
Date, and such notice shall be conclusive and binding.

          SECTION 4.02. Each Borrowing. The obligation of each Lender to make a Loan on the occasion of
each Borrowing (including any on the Closing Date), and of any Issuing Bank to issue, amend, renew,
extend or convert into a Loan any Letter of Credit, shall be subject to the further conditions
precedent that on the date of such Borrowing (which term shall, for the purposes of this Section
4.02, include any issuance, renewal, extension or conversion of a Letter Of Credit pursuant
hereto), and both immediately before and after giving effect thereto, the following statements
shall be true:

          (a) the Administrative Agent shall have received, in the case of a Borrowing, a Borrowing
Request as required by Section 2.03 or, in the case of the issuance of a Letter of Credit, the
applicable Issuing Bank and the Administrative Agent shall have received a notice requesting the
issuance of such Letter of Credit as required by Section 2.06(b) or, in the case of a Swingline
Borrowing, the Swingline Lender and the Administrative Agent shall have received a request as
required by Section 2.05(a), in each case such notice or request to a calculation, to be based on
the most recently reported Borrowing Base calculation, establishing the existence of sufficient
Excess Availability to make such Borrowing;

          (b) the representations and warranties of each Borrower contained in each Loan Document shall
be 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;

          (c) after giving effect to any Borrowing and/or the issuance of any Letters of Credit, Excess
Availability shall be not less than zero;

          (d) At the time of and immediately after giving effect to such Borrowing (other than an
amendment, extension or renewal of a Letter of Credit without any increase in the Stated Amount of

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such Letter of Credit), as applicable, no Event of Default or Default shall have occurred and
be continuing; and

          (e) By the date of the initial Borrowing or issuance of a Letter of Credit, the Administrative
Agent shall have received a notice setting forth the deposit account of the Borrowers (including
any subsequent deposit account information provided by the Borrowers, the “Funding Account”) to
which the Administrative Agent is authorized by the Borrowers to transfer the proceeds of any
Borrowings requested or authorized pursuant to this Agreement.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by each Borrower on the date thereof as to the
matters specified in paragraphs (b), (c) and (d) of this Section 4.02.

          SECTION 4.03. Determinations Under Sections 4.01 and 4.02. For purposes of determining
compliance with the conditions specified in Section 4.01 and 4.02, 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 Closing Date
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 V

AFFIRMATIVE COVENANTS

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees, expenses and other amounts payable under any Loan Document have been paid in
full (other than contingent indemnification obligations) and all Letters of Credit have expired or
terminated (or have been cash collateralized pursuant to Section 2.09(b)) and all LC Disbursements
shall have been reimbursed, each Borrower covenants and agrees, jointly and severally, with the
Agents and the Lenders that:

          SECTION 5.01. Financial Statements; Borrowing Base and Other Information. The Administrative
Borrower will furnish to the specified Agent (which will (a) in the case of the Administrative
Agent, promptly furnish such information to the Collateral Agent and the Lenders, and (b) in the
case of the Collateral Agent, upon request from a Lender or the Administrative Agent, promptly
furnish such information to such Lender or the Administrative Agent, as applicable):

          (a) Annual Financials. At such time as Navistar first files 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 Navistar with the SEC of their annual
report on Form 10-K for any Fiscal Year, and thereafter within 90 days after the end of each Fiscal
Year completed thereafter, deliver to the Administrative Agents a copy of the annual report for
such Fiscal Year for Navistar and its subsidiaries, including therein (i) Consolidated balance
sheets of Navistar 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 Navistar and its subsidiaries for
such Fiscal Year, in each case prepared in accordance with Rule 3-10 of Regulation S-X, consistent
with Navistar’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

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financial condition of Navistar and its subsidiaries as at such date and the Consolidated
results of operations of Navistar 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 Administrative 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 Borrowers have taken and
proposes to take with respect thereto, provided, that such certificate shall also include a
specific certification that no Borrower is engaged in the business of leasing trucks, 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 Navistar required under Section 404 of the Sarbanes-Oxley Act of 2002;
provided, however, that (x) in the event the Borrowers are 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
(y) such registered public accounting firm otherwise agrees (which agreement the Borrowers agree to
use commercially reasonable efforts to obtain), such financial statements shall also be accompanied
by a certificate of such registered public accounting firm stating that in the course of such
regular audit of the business of Navistar and its subsidiaries, which audit was conducted by such
accounting firm in accordance with generally accepted auditing standards, such accounting firm has
obtained no knowledge that an Event of Default has occurred and is continuing, or if, in the
opinion of such accounting firm, an Event of Default has occurred and is continuing, a statement as
to the nature thereof; provided that, in the event of any change in generally accepted accounting
principles used in the preparation of such financial statements, the Borrowers shall also provide a
reconciliation of such financial statements to GAAP.

          (b) Other Financials.

          (i) Quarterly Financials. At such time as Navistar first files with the SEC 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 Navistar with the SEC of their 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 deliver
to the Administrative Agents, (A) a Consolidated balance sheet of Navistar and its subsidiaries as
of the end of such quarter, (B) a Consolidated statement of income and a Consolidated statement of
cash flows of Navistar and its subsidiaries for the period commencing at the end of the previous
Fiscal Quarter and ending with the end of such quarter, and (C) a Consolidated statement of income
and a Consolidated statement of cash flows of Navistar 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 Navistar’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 Navistar and its subsidiaries as at such date and the Consolidated results
of operations of Navistar 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 Navistar as having been
prepared in accordance with GAAP, together with,
in the case of financial statements for any Fiscal Quarter ended on or after the Closing Date,
a certificate by a Financial Officer of the Administrative 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 Borrowers have taken and proposes to
take with respect thereto, provided, that such certificate shall also include (x) a specific
certification that no Borrower is engaged in the business of leasing trucks, and (y) if any

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Borrower obtains knowledge that the component of such Borrower’s business which
constitutes the “business of leasing” exceeds 5% of such Borrower’s aggregate revenues for
such quarterly period, notice of such event, provided, however that, in the event of any
change in generally accepted accounting principles used in the preparation of such
financial statements, the Borrowers shall also provide a reconciliation of such financial
statements to GAAP;

          (ii) Special Reporting – Monthly Reports. As soon as available, and in any event
within 30 days after the end of each month commencing with the month of July 2007, deliver
to the Administrative Agents monthly management financial reports in respect of the sales
and income by segment and cash balances, Debt (as defined in the January Credit Agreement),
capital expenditures (as defined in the January Credit Agreement), and depreciation and
amortization of Navistar and its Restricted Subsidiaries (as defined in the January Credit
Agreement) prepared in a manner consistent with the Borrowers’ past practices (unless
otherwise noted or required to conform with the restatement of the audit or changes in
GAAP) and on the basis of Navistar’s 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 Navistar has filed all reports with the
Securities and Exchange Commission required pursuant to Section 13 of the Exchange Act; and

          (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,
deliver to the Administrative Agents quarterly condensed manufacturing balance sheet and
income statement of Navistar and its Consolidated Subsidiaries (as defined in the January
Credit Agreement), with Navistar’s finance subsidiaries included on an equity basis,
prepared in a manner consistent with Navistar’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, to be accompanied by a certificate of a Financial
Officer of the Administrative 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 Borrowers have taken and proposes to take with
respect thereto (provided, that such certificate shall also include (x) a specific
certification that no Borrower is engaged in the business of leasing trucks, and (y) if any
Borrower obtains knowledge that the component of such Borrower’s business which constitutes
the “business of leasing” exceeds 5% of such Borrower’s aggregate revenues for such
quarterly period, notice of such event), together with a reconciliation report in
reasonable detail and reasonably satisfactory to the Agents commencing with the fiscal
quarter ended October 31, 2007, with respect to the
withdrawal of any funds from the Collection Account not constituting Collateral during
the quarterly period covered; provided, however, that such reporting (other than such
reconciliation report) shall not be required so long as Navistar has filed all reports with
the Securities and Exchange Commission required pursuant to Section 13 of the Exchange Act;

provided further that the Lenders acknowledge that the financial information delivered pursuant to
clauses (ii) and (iii) above will be preliminary and unaudited and will be prepared by Navistar’s
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 Navistar, the Borrowers or their 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.

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          (c) Borrowing Base Certificates. As soon as available but in any event on or prior to the
20th day of each calendar month (or more frequently as required below), deliver to the Collateral
Agent (which shall promptly provide copies of the same to the Lenders) a Borrowing Base Certificate
as of the close of business on the last day of the immediately preceding fiscal month (or in the
case of a voluntary delivery of a Borrowing Base Certificate at the election of the Borrower, a
subsequent date), together with such supporting information in connection therewith as the
Collateral Agent may reasonably request, which may include, without limitation, (i) Inventory
reports by category and location, together with a reconciliation to the corresponding Borrowing
Base Certificate, (ii) a reasonably detailed calculation of Eligible Inventory, and (iii) a
reconciliation of the Borrowers’ Inventory between the amounts shown in the Borrowers’ ledger
balance and any Inventory reports delivered pursuant to clause (i) above, and (iv) if a Receivables
Trigger Event shall have occurred and be continuing, a reasonably detailed aging of the Borrowers’
Accounts that are subject to an applicable Master Intercompany Agreement; provided that if Excess
Availability is less than $15,000,000 at any time, and in such case continuing until such time as
Excess Availability is greater than or equal to $15,000,000 for a period of 30 consecutive days, as
certified by the Borrowers to the Collateral Agent, the Borrowers shall deliver a Borrowing Base
Certificate and such supporting information on Wednesday of each week (or if Wednesday is not a
Business Day, on the next succeeding Business Day), as of the close of business on the immediately
preceding Saturday, together with such other information in respect of the Collateral as the
Collateral Agent shall reasonably request; and provided, further, that any Borrowing Base
Certificate delivered other than with respect to month’s end may be based on such estimates by the
Borrowers of Shrink and other amounts as the Borrowers may deem necessary.

          (d) Perfection Certificates. Deliver to the Collateral Agent as soon as commercially
practicable, upon the reasonable request of the Collateral Agent (but not more than once per
calendar year) an updated Perfection Certificate reflecting all changes since the last-delivered
Perfection Certificate was prepared.

          (e) Used Truck Titles. If Excess Availability is at any time less than $15,000,000 for three
consecutive days, promptly following the Collateral Agent’s reasonable request therefor, deliver to
the Collateral Agent all copies of the titles of the Inventory to the extent such Inventory
consists of used trucks.

          (f) USA Patriot Act. Promptly following the Administrative Agent’s
request therefor, deliver to the Administrative Agent all documentation and other information
that the Administrative Agent reasonably requests on its behalf or on behalf of any Lender in order
to comply with its ongoing obligations under applicable “know your customer” and anti-money
laundering rules and regulations, including the USA PATRIOT Act.

     (g) ERISA

          (i) ERISA Events and ERISA Reports. (i) Promptly and in any event within 15 Business Days
after any Borrower or any ERISA Affiliate knows that any ERISA Event has occurred, a statement of a
Financial Officer of the Administrative Borrower describing such ERISA Event and the action, if
any, that such Borrower or such ERISA Affiliate has taken and proposes to take with respect
thereto, and (ii) promptly and in any event within ten 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 Borrower or any ERISA Affiliate, copies of each written notice from

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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 Borrower 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 Borrower or any ERISA Affiliate in
connection with any event described in clause (A) or (B).

          (h) Creditor Reports. Promptly after the furnishing thereof, copies of any statement or report
furnished to any holder of Debt of any Borrower 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 5.01.

          (i) Insurance. As soon as available and in any event within 30 days after the end of each
Fiscal Year, deliver to the Administrative Agent a report summarizing the property and liability
insurance coverage (specifying type, amount and carrier) in effect for each of the Borrowers and
containing such additional information as the Administrative Agent may reasonably specify.

          (j) Other Information. Deliver to the Administrative Agent promptly following the
Administrative Agent’s request therefor, such other information regarding the operations, business
affairs and financial condition of Navistar or any Borrower, or compliance with the terms of any
Loan Document, as the Administrative Agent may reasonably request (on
behalf of itself or any Lender).

          SECTION 5.02. Notices of Material Events. The Administrative Borrower or the applicable
Borrower will furnish to the Agents prompt written notice of the following after any Responsible
Officer of the Administrative Borrower or such Borrower obtains knowledge thereof:

          (a) as soon as possible, but in any event within five Business Days of obtaining such
knowledge, the occurrence of any Event of Default or Default;

          (b) the filing or commencement of, or any written threat or notice of intention of any person
to file or commence, any action, suit or proceeding, whether at law or in equity or by or before
any Governmental Authority or in arbitration, against any Borrower as to which an adverse
determination is reasonably probable and which, if adversely determined, would reasonably be
expected to have a Material Adverse Effect;

          (c) any loss, damage, or destruction to the Collateral in the amount of $2,500,000 or more per
occurrence, whether or not covered by insurance;

          (d) any Environmental Action against, or of any noncompliance by, any Borrower with any
Environmental Law or Environmental Permit that would reasonably be expected to have a Material
Adverse Effect;

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          (e) as soon as possible, but in any event within two Business Days of obtaining such
knowledge, the occurrence of a Receivables Trigger Event;

          (f) any material breach of the terms of, or the occurrence of a default or an event of default
under, any Master Intercompany Agreement to which any Borrower is a party, and notice (in
reasonable detail) of any written notices delivered thereunder; and

          (g) any other development that results in, or would reasonably be expected to result in, a
Material Adverse Effect with respect to the Collateral.

Each notice delivered under this Section 5.02 shall be accompanied by a statement of a Responsible
Officer of the Administrative Borrower or the applicable Borrowers setting forth the details of the
event or development requiring such notice and any action taken or proposed to be taken with
respect thereto.

          SECTION 5.03. Existence; Conduct of Business. Each Borrower will, do or cause to be done all
things reasonably necessary (a) to preserve, renew and keep in full force and effect its legal
existence and the rights, qualifications, licenses, permits, franchises, governmental
authorizations, intellectual property rights, licenses and permits (except as such would otherwise
reasonably expire, be abandoned or permitted to lapse in the ordinary course of business),
necessary or desirable in the normal conduct of its business except to the extent failure to
maintain would not reasonably be expected to result in a Material Adverse Effect; provided,
however, that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under this Agreement; and (b) to maintain all requisite authority to conduct
its business in each jurisdiction in which its business is conducted, except, other than with
respect to any Borrower’s existence, to the extent such failure to do so would not reasonably be
expected to have a Material Adverse Effect.

          SECTION 5.04. Payment of Taxes. Each Borrower will pay or discharge all material Tax
liabilities, before the same shall become delinquent or in default, except where (a) (i) the
validity or amount thereof is being contested in good faith by appropriate proceedings, and (ii)
such Borrower has set aside on its books adequate reserves with respect thereto in accordance with
GAAP, or (b) the failure to make payment pending such contest would not reasonably be expected to
result in a Material Adverse Effect.

          SECTION 5.05. Maintenance of Properties. Each Borrower will (a) at all times maintain and
preserve all material property necessary to the normal conduct of its business in satisfactory
repair, working order and condition, ordinary wear and tear excepted and casualty or condemnation
excepted and (b) make, or cause to be made, all needful and proper repairs, renewals, additions,
improvements and replacements to the Collateral as necessary in accordance with prudent industry
practice in order that the business carried on in connection therewith, if any, may be properly
conducted at all times, except, in each case, where the failure to do so, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse Effect.

          SECTION 5.06. Books and Records; Inspection Rights; Appraisals; Field Examinations. (a) Each
Borrower will (i) keep proper books of record and account in accordance with GAAP in which entries
full, true and correct in all material respects are made of dealings and transactions in relation
to its business and activities and (ii) subject to the limitations in Section 5.06(b) so long as no
Event of Default shall have occurred and be continuing, permit any representatives designated by
the Agents (including employees of an Agent or any consultants, accountants, lawyers and appraisers
retained by the Agents), once a year, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, including environmental
assessment reports and Phase I or Phase II studies, and to discuss its affairs, finances and
condition with its officers and independent accountants, all at such

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reasonable times during normal business hours and at the expense of the Borrowers; provided,
that following the occurrence of an Event of Default, and so long as such Event of Default shall
remain uncured or unwaived, the Borrowers shall permit any representatives designated by the Agents
(including employees of an Agent or any consultants, accountants, lawyers and appraisers retained
by the Agents) to conduct visits as described above at any time during normal business hours and on
reasonable prior notice as such Agents may deem reasonable necessary; provided, further that the
Borrower shall be given the opportunity to be present during any discussions between the Agents (or
any of their agents) and the Borrowers’ accountants.

          (b) At reasonable times during normal business hours and upon reasonable prior notice that the
Agents request, independently of or in connection with the visits and inspections provided for in
clause (a) above, the Borrowers will grant access to the Agents (including employees of an Agent or
any consultants, accountants, lawyers and appraisers retained by the Agents) to such Person’s
books, records, accounts and Inventory so that the Agents or an appraiser retained by the Agents
may conduct an appraisal. In addition to, and not in limitation of, the foregoing, at any time and
from time to time the Agents may conduct (or engage third parties to conduct) field examinations,
verifications and evaluations as the Agents may deem necessary or appropriate. All such
appraisals, field examinations and other verifications and evaluations shall be in form and
substance reasonably acceptable to the Agents and at the sole expense of the Borrowers; provided
that the Agents shall provide the Borrowers with a
reasonably detailed accounting of all such expenses and provided, further that (i) absent the
existence and continuance of an Event of Default, the Agents may conduct no more than one field
examination and one appraisal in any calendar year, (ii) if Excess Availability is or has been less
than $35,000,000 for three consecutive Business Days in any calendar year and absent the existence
and continuance of an Event of Default, the Agents may conduct as many field examinations and as
many appraisals deemed necessary by the Agents in any calendar year in order to maintain such field
examination and appraisal data current within 180 days, and (iii) if an Event of Default has
occurred and is continuing, the Agents may conduct as many field examinations and as many
appraisals in any calendar year as such Agents may deem necessary.

          (c) The Borrowers acknowledge that the Agents, after exercising their rights of inspection,
may prepare and distribute to the Lenders certain Reports pertaining to the Borrowers’ assets for
internal use by the Agents and the Lenders, subject to the provisions of Section 9.12 hereof.

          (d) Notwithstanding anything to the contrary in this Section 5.06, none of the Borrowers or
any of their subsidiaries will be required to disclose, permit the inspection, examination or
making of extracts, or discussion of, any documents, information or other matter that (i)
constitutes non-financial trade secrets or non-financial proprietary information, (ii) in respect
of which disclosure to the Agents (or any designated representative) is then prohibited by law or
any agreement binding on the Borrowers or any of their subsidiaries or (iii) is subject to
attorney-client or similar privilege constitutes attorney work-product.

          SECTION 5.07. Compliance with Laws. Each Borrower will comply in all material respects with
all Requirements of Law applicable to it or its property, 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 where (a) the failure to do so would
not reasonably be expected to result in a Material Adverse Effect or (b) to the extent such
compliance is not possible as a result of matters described in the Disclosure Filings.

          SECTION 5.08. Use of Proceeds. The proceeds of the Loans will be used only for the purposes
specified in the introductory statement to this Agreement. No part of the proceeds of any Loan

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and no Letter of Credit will be used, whether directly or indirectly, for any purpose that
would entail a violation of Regulations T, U or X.

          SECTION 5.09. Insurance. Each Borrower will maintain, with financially sound and reputable
insurance companies (a) insurance in such amounts and against such risks, as are customarily
maintained by similarly situated companies engaged in the same or similar businesses operating in
the same or similar locations and (b) all insurance required pursuant to the Collateral Documents
(and shall cause the Collateral Agent to be listed as a loss payee on property policies covering
loss or damage to Collateral and as an additional insured on liability and casualty policies),
provided that the Borrower may self-insure as is customary by similarly situated companies engaged
in the same or similar businesses operating in the same or similar locations, except that with
respect to any Collateral, no Borrower may self-insure above a reasonable and customary deductible.
The Borrowers will furnish to the Agents, upon request, information in reasonable and customary
detail as to the insurance so maintained.

          SECTION 5.10. Further Assurances. Promptly upon reasonable request, each Borrower shall
deliver such instruments, assignments, title certificates, or other documents or agreements, and
shall take such actions, as the Collateral Agent deems appropriate under applicable law to evidence
or perfect its Lien on any Collateral, or otherwise to give effect to the intent of this Agreement
or any other Loan Document.

          SECTION 5.11. Establishment and Utilization of the Collection Account. No later than 60 days
after the Closing Date or such later time as the Administrative Agent shall agree, establish and
maintain a concentration account (the “Collection Account”) subject to an account control agreement
and other documentation providing for springing control by the Collateral Agent, all reasonably
acceptable to the Collateral Agent, into which all cash proceeds received from any sale of any
Collateral shall be deposited, and the Borrowers hereby agree that, if an Event of Default has
occurred and is continuing, the Collateral Agent will have exclusive dominion over the Collection
Account until such Event of Default is cured or waived for at least three days, provided that if
such Event of Default resulted from the aggregate Exposure exceeding the Borrowing Base, such cure
or waiver shall be required to be in effect for at least 30 consecutive days unless the overadvance
giving rise thereto is refunded, repaid or prepaid by the Borrowers in accordance with Section
2.11(b), in which case such cure or waiver shall be effective at the time of such refund, repayment
or prepayment. In the absence of an Event of Default, the Borrowers will be entitled to direct the
application of funds in the Collection Account, including directing the deposited Agent (or other
depository bank, if applicable) to apply funds to the repayment of the outstanding Loans and other
amounts payable under the Loan Documents and to otherwise withdraw funds from the Collection
Account. If an Event of Default has occurred and is continuing, (i) the Collateral Agent shall have
the right to apply proceeds received into the Collection Account to the outstanding Secured
Obligations as provided in Article V of the Security Agreement, and (ii) the Borrowers shall not be
entitled to present items drawn on or otherwise to withdraw or direct the dispositions of funds
from the Collection Account nor shall any Borrowers be entitled to close the Collection Account
until all Secured Obligations (other than contingent indemnification obligations or Banking
Services Obligations not owing) under this Agreement are paid and performed in full.
Notwithstanding any other agreements the Borrowers may have with any Secured Party, the Collateral
Agent shall be entitled, during the continuance of any Event of Default, for purposes of this
Agreement to give instructions as to the withdrawal or disposition of funds from time to time
credited to any deposit account with the Collateral Agent or the Collection Account, or as to any
other matters relating to any of the forgoing without further consent of the Borrowers. The
Collateral Agent’s power under this Agreement to give instructions as to the withdrawal or
disposition of any funds from time to time credited to the Collection Account or any other deposit
account with the Collateral Agent or as to any other matters relating to the foregoing includes,
without limitation, during an Event of Default, the power to give stop payment orders for any items
being presented to such accounts for payment. Notwithstanding the foregoing provisions of this

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Section 5.11, irrespective of whether an Event of Default has occurred and is continuing, if
no Borrowings are outstanding hereunder and either no Letters of Credit are outstanding hereunder
or any Letters of Credit which may be outstanding hereunder are cash collaterized by 103%, and so
long as no Banking Services Obligations are then due which have not been repaid, the Borrowers
shall be entitled to direct the application of funds in the Collection Account.

          SECTION 5.12. Speculative Transactions. In the event that the mark to market liability of any
Borrower in respect of any speculative transactions exceeds $5,000,000, such
Borrower shall promptly close out or unwind such transactions and discharge all liabilities in
respect thereof.

          SECTION 5.13. Compliance with Modified Borrowing Base. Each Borrower shall conduct any sales,
assignments, conveyances, transfers or other dispositions of Inventory other than in the ordinary
course of business in such a manner so as to remain in compliance with the Modified Borrowing Base
at all times.

ARTICLE VI

NEGATIVE COVENANTS

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees, expenses and other amounts payable under any Loan Document have been paid in
full (other than contingent indemnification obligations) and all Letters of Credit have expired or
terminated (or have been cash collateralized pursuant to Section 2.09(b)) and all LC Disbursements
shall have been reimbursed, the Borrowers covenant and agree, jointly and severally, that no
Borrower will, at any time:

          SECTION 6.01. Debt. Create, incur, assume or suffer to exist any Debt, except:

          (a) Debt created under the Loan Documents;

          (b) Debt created under the January Credit Agreement and any refunding, refinancing or
replacement, in whole or in part, of any Debt under the January Credit Agreement, provided that (i)
the principal amount of such Debt shall not be increased above the aggregate revolving commitment
and the outstanding principal amount of term loans constituting such Debt immediately prior to such
extension, refunding or refinancing (plus any accrued interest and 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, and (ii) the other terms and conditions applicable thereto are reasonably
satisfactory to the Agents;

          (c) Other Existing Debt (including obligations outstanding immediately before the occurrence
of the Closing Date that are later recharacterized as Debt, in connection with the completion of
the audit report for the annual financial statements of Navistar 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 (i) 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, (ii) the
terms and conditions relating to principal amount, amortization, maturity, collateral (if any) and
subordination (if any), and other material terms taken as a

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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 Borrowers or the Lenders than the terms of any agreement or
instrument governing the Existing Debt being extended, refunded or refinanced, (iii) 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 (iv) the maturity date of such extending, refunding,
replacement or refinancing Debt shall occur after the Maturity Date;

          (d) Debt secured by Liens permitted by Section 6.02(d) not to exceed in the aggregate
$25,000,000 at any time outstanding;

          (e) Capital Lease Obligations not to exceed in the aggregate $25,000,000 at any time
outstanding;

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

          (g) intercompany Debt between any Borrower and any other Borrower and/or a Restricted
Subsidiary of Navistar;

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

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

          (j) Guaranteed Debt of the Borrowers with respect to (x) obligations of NFC under the
Receivables Facility and (y) obligations with respect to Navistar’s 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;

          (k) Debt under the Master Intercompany Agreements and the Support Agreement;

          (l)
Debt under Permitted Receivables Financings;

          (m) Debt incurred by any Borrower
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;

          (n) Debt arising from agreements of any 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 6.06; provided that the amount of such Debt shall not exceed
25% of the total consideration for such acquisition;

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

          (p) 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;

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

          (r) 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;

          (s) Subordinated Debt owed by a Borrower to any other Borrower;

          (t) guarantees issued by a Borrower of Debt otherwise permitted hereunder; and

          (u) Investments to the extent constituting Debt (as defined in clause (i) or (j) in the
definition of “Debt”) or acquired in connection with Section 6.06(g).

          The accrual of interest and the accretion or amortization of original issue discount on Debt and
the payment of interest in the form of additional Debt originally incurred in accordance with this
Section 6.01 will not constitute an incurrence of Debt.

          SECTION 6.02. Liens. 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 any accounts or other right to receive income, except:

          (a) Liens created under the Loan Documents;

          (b)
Permitted Liens;

          (c) Liens existing on the date
hereof;

          (d) purchase money Liens upon or in real property or equipment acquired or held by any
Borrower 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 (i) the aggregate principal amount of the
Debt secured by Liens permitted by this clause (d) shall not exceed the amount permitted under
Section 6.01(d) at any time outstanding, and (ii) if any real property on which Collateral is
stored is mortgaged pursuant to this clause (d), the Administrative Borrower shall provide the
Collateral Agent with a Collateral Access Agreement (to be reasonably satisfactory to the
Collateral Agent) pertaining to such mortgaged real property;

          (e) Liens arising under Capitalized Leases permitted under Sections 6.01(e) and (s); provided
that no such Lien shall extend to or cover any assets other than the assets subject to such
Capitalized Leases;

          (f) Liens on property of a Person existing at the time such Person is merged into or
consolidated with a Borrower; 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,

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consolidation or investment and do not extend to any assets other than those of the Person
merged into or consolidated with a Borrower;

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

          (h) 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;

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

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

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

          (l) Liens arising to the extent taxes are not required to be paid pursuant to Section 6.01;

          (m) Liens securing Permitted Receivables Financings; and

          (n) 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.

Notwithstanding the foregoing, none of the Liens permitted pursuant to this Section 6.02 may at any
time attach to any Inventory of the Borrowers, any other Collateral, or to the Collection Account,
the LC Collateral Account or any Blocked Cash Account, other than those permitted under clauses
(a), (b), (c) and (f) of the definition of “Permitted Liens” and clause (a) of this Section 6.02;

          SECTION 6.03. Change in Nature of Business. Make any material change in the general nature of
its business as carried on at the date hereof such that any Borrower (a) would cease to hold
Inventory Collateral (including used trucks) for sale, (b) would no longer be “in the business of
selling” Collateral Inventory (for purposes of the applicability of UCC Section 9-311(d)), or (c)
would engage in the business of leasing trucks; provided, that the Borrowers may enter into
complementary, ancillary or supportive businesses (other than “in the business of” leasing trucks).

          SECTION 6.04. Mergers, Etc. Merge into or consolidate with any Person or permit any Person to
merge into it, except that:

          (a) any Borrower may merge into or consolidate with any other Borrower; and

          (b) as part of any acquisition permitted under Section 6.06, any Borrower may merge
into or consolidate with any other Person or permit any other Person to merge into or consolidate
with it; provided, that (i) the surviving Person formed by such merger or consolidation shall be a
Borrower; (ii) the then current “corporate family” ratings of the applicable Borrower from S&P or
Moody’s, as applicable, shall not be reduced or withdrawn as a result of such acquisition and/or
merger; (iii) the lines of business of the Person to be merged shall be substantially the same
lines of business as one or more of

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the principal businesses or such Borrower in the ordinary course; (iv) such Person or such
business is not, at the time of such merger, engaged in the business of leasing trucks; (v) the
Agents shall have received five Business Days notice (or such shorter notice as the Agents may
agree upon) prior to the consummation of such merger; and (vi) such Person shall be a domestic
United States corporation with assets domiciled in the United States;

provided, that (i) the parties to such merger or consolidation shall, prior to such merger or
consolidation, have taken such steps as may be reasonably required by the Collateral Agent to
ensure the continued perfection of the Collateral Agent’s security interest in the Collateral
following such merger or consolidation (as well as the perfection of the Collateral Agent’s
security interest in any assets previously owned by the other party to such merger or
consolidation); and (ii) following any Borrower’s merger with, or consolidation into, any Person
that is not a Borrower, any assets owned by such other Person prior to such merger or consolidation
shall undergo field exams and an audit by the Collateral Agent or its designee prior to such assets
being included in the calculation of the Borrowing Base;

provided, further that in each case, immediately before and after giving effect thereto, no Event
of Default shall have occurred and be continuing; and provided, further, that no Borrower shall
merge into or consolidate with any Person that is engaged in the business of leasing trucks.

          SECTION 6.05. Sales, Etc. of Assets. Sell, lease, transfer or otherwise dispose of any assets,
or grant any irrevocable option or other right to purchase, lease or otherwise acquire any assets,
except:

          (a) sales of Inventory in the ordinary course of its business, in compliance with the terms of
the Loan Documents, and the granting of any option or other right to purchase, lease or otherwise
acquire Inventory in the ordinary course of its business and in compliance with the terms of the
Loan Documents;

          (b) in a transaction authorized by Section 6.04;

          (c) sales, transfers or other dispositions of assets among Borrowers;

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

          (e) sales of Receivables pursuant to any Master Intercompany Agreement;

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

          (g) 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;

          (h) 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;

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

          (j) any sale, transfer or other disposition expressly permitted by Section 6.06;
and

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          (k) 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 Borrowers’ business;

provided, that any and all net cash proceeds from any sales, transfers, leases and other
dispositions permitted hereby, which sales, transfers, leases or dispositions shall reduce Excess
Availability to zero or less shall, on the date of receipt of payment for such sales, transfers,
leases or dispositions by any Borrower, be applied to the repayment of outstanding amounts under
and in accordance with Section 2.10(b). To the extent any Collateral is sold, transferred or
otherwise disposed of as permitted by this Section 6.05 to any Person other than to any Borrower,
such Collateral shall be sold free and clear of the Liens created by the Loan Documents, and the
Agents shall be authorized to take any actions deemed appropriate in order to effect or evidence
the foregoing.

          SECTION 6.06. Investments in Other Persons. Make or hold any Investment in any other Person,
except:

          (a) (i) Investments outstanding on the date hereof by a Borrower in its subsidiaries, and (ii)
additional Investments by a Borrower in another Borrower; provided, however, that, in the event any
Borrower sells, leases, transfers or otherwise disposes of, in a single transaction or a series of
related transactions, all or substantially all of their assets to one or more of its subsidiaries
that are not Borrowers, such a transaction will be permitted if (A) such subsidiary is a domestic
subsidiary wholly-owned by a Borrower, (B) the Administrative Borrower and such Borrower shall
cause such subsidiaries to become a Borrower pursuant to the terms of this Agreement and (C) the
same requirements as set forth in clause (e)(vi) below, shall have been complied with prior to its
assets being included in the Borrowing Base;

          (b) loans and advances to employees in the ordinary course of the business of a Borrower 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;

          (c) Investments by a Borrower in cash or Cash Equivalents;

          (d) 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 Navistar 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);

          (e) 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 wholly owned
subsidiary of a Borrower (including, without limitation, as a result of a merger or consolidation)
and the purchase or other acquisition by a Borrower of all or substantially all of the property and
assets of any Person; provided that, with respect to each purchase or other acquisition made
pursuant to this clause (e):

          (i) 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 such Borrower in the ordinary course;

          (ii) 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 such Borrower, taken as a whole (as determined in good faith by
the board of directors (or the persons performing similar functions) of such Borrower, if
the board of

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          directors is otherwise approving such transaction, or, in each other case, by a
Financial Officer of such Borrower);

          (iii) after giving pro forma effect to such purchase or other acquisition, Excess
Availability shall be equal to at least $25,000,000 (with an up to $5,000,000 credit for
Suppressed Availability then in effect) and the then current “corporate family” ratings of
the applicable Borrower from S&P or Moody’s, as applicable, shall not have been reduced or
withdrawn as a result of such proposed or actual purchase or other acquisition;

          (iv) immediately before and immediately after giving effect to any such purchase or
other acquisition, no Event of Default shall have occurred and be continuing;

          (v) such Person or such business is not, at the time of its acquisition, engaged in
the business of leasing trucks;

          (vi) any assets owned by such Person or business prior to its acquisition by a
Borrower shall both (A) undergo field exams and an audit by the Collateral Agent or its
designee and (B) be subject to the perfected security interest of the Collateral Agent
therein, prior to such assets being included in the calculation of the Borrowing Base; and

          (vii) The Administrative Borrower shall have delivered to the Administrative Agent, on
behalf of the Lenders, at least five Business Days prior to the 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
(e) have been satisfied or will be satisfied on or prior to the consummation of such
purchase or other acquisition;

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

          (g) 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;

          (h) Investments received as consideration for asset dispositions permitted pursuant to Section
6.05;

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

          (j) 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
owing to any Borrower or a Subsidiary, whether through litigation, arbitration or otherwise;

          (k) other Investments, if at the time of the making thereof Excess Availability shall be equal
to at least $50,000,000 (with an up to $10,000,000 credit for Suppressed Availability then in
effect), notwithstanding that the then current “corporate family” ratings of the applicable
Borrower from S&P or Moody’s, as applicable, shall have been reduced or withdrawn; provided that if
any such

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Investment involves any purchase or acquisition, the requirements of clauses (i) through
(vii), other than clause (iii), of paragraph (e) above shall have been satisfied;

          (l) 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);

          (m) 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

          (n) Guaranteed Debt otherwise permitted under Section 6.01 to the extent constituting an
Investment.

For purposes of covenant compliance, the amount of any Investment shall be the amount actually
invested, without adjustment for subsequent increases or decreases in the value thereof.

          SECTION 6.07. 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, except that:

          (a) a Borrower (A) may declare and pay dividends and make distributions payable only in common
stock of such Borrower, and (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;

          (b) so long as no Event of Default shall have occurred and be continuing, a 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); provided, that, after giving pro forma effect to
such payments, Excess Availability shall be equal to at least $50,000,000 (with an up to
$10,000,000 credit for Suppressed Availability then in effect); and

          (c) any Borrower may declare and pay dividends or distributions to any other Borrower.

          SECTION 6.08. Accounting Changes. Make or permit any change in (a) 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 (b) its Fiscal Year.

          SECTION 6.09. Prepayments, Etc., of Debt. (a) Prepay, redeem, purchase, defease or otherwise
satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of
any subordination terms of, any Debt, except: (i) the prepayment of the Borrowings and other
amounts outstanding in accordance with the terms of this Agreement, (ii) regularly scheduled or
required repayments or redemptions of Existing Debt, (iii) any prepayments or redemptions of
Existing Debt in connection with a refunding or refinancing of such Existing Debt permitted by
Section 6.01(c), (iv) the repayment or prepayment of the
amounts under, and in accordance with, documentation with respect to Debt permitted by Section
6.01(b) on the terms contained therein and Section 6.01(e), (v) the repayment

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or prepayment of the amounts under, and in accordance with, documentation with respect to Debt
permitted by Section 6.01(r), (vi) any repayment or prepayment of Debt under any agreement
permitting the reborrowing thereof, and (vii) any other prepayment or redemption of Debt so long
as, after giving pro forma effect to such prepayment or redemption, Excess Availability shall be
equal to at least $50,000,000 (with an up to $10,000,000 credit for Suppressed Availability
then in effect) ; or (b) 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.

          SECTION 6.10. Partnerships, Etc. Become a general partner in any general or limited
partnership or joint venture, the sole assets of which consist of its interest in such partnership
or joint venture.

          SECTION 6.11. Payment Restrictions Affecting Borrowers. Directly or indirectly enter into or
suffer to exist any agreement or arrangement limiting the ability of any of the Borrowers 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, any Borrower (whether through a covenant restricting dividends, loans, asset
transfers or investments, a financial covenant or otherwise), except (a) the Loan Documents, (b)
any agreement or instrument evidencing Existing Debt or any refinancing, extension or replacement
thereof permitted pursuant of Section 6.01(b) and (c), (c) the Shy Settlement, (d) leases,
subleases or licenses, sublicenses or service contracts restricting the assignment thereof, (e) any
agreement in effect on the Closing Date as any such agreement is in effect on such date, and (f)
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.

          SECTION 6.12. Transactions with Affiliates. 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 any Borrower than such Person would obtain in a comparable arm’s length transaction,
other than (a) transactions among the Borrowers, (b) transactions entered into pursuant to the
terms of the Master Intercompany Agreements, the Tax Allocation Agreements or the Support Agreement
and (c) reasonable fees and compensation paid to and advances of expenses to and indemnity provided
on behalf of officers, directors, employees or consultants of any Borrower, as determined in good
faith by such Borrower’s Board of Directors or senior management.

          SECTION 6.13. Amendment of Material Documents. Amend, modify or waive, any of the Borrowers’
rights under (a) the January Credit Agreement (or any instrument or agreement governing any
refinancing Indebtedness in respect thereof permitted under Section 6.01), or (b) its certificate
of incorporation, by-laws, operating, management or partnership agreement or other organizational
documents, to the extent, in the case of each of the foregoing clauses (a) or (b), any such
amendment, modification or waiver would be adverse to the interests of the Lenders in any material
respect.

          SECTION 6.14. Sales of Receivables. Following the occurrence and during the continuation of a
Receivables Trigger Event with respect to a counterparty under any Master
Intercompany Agreement, sell or otherwise transfer or assign, any Receivables or other
receivables or instruments, to the applicable counterparty under such Master Intercompany
Agreement.

          SECTION 6.15. Designation of Designated Senior Debt. Designate any Debt (or any similar term)
(other than the Debt under the January Credit Agreement or any refinancing, extension or
replacement thereof permitted pursuant to 6.01(b) and Debt under this Agreement or under the other
Loan

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Documents) of any Borrower “Designated Senior Debt” (or any similar term) under, and as defined in
any Subordinated Debt of any Borrower which contains such designations.

ARTICLE VII

EVENTS OF DEFAULT

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

          (a) the Borrowers shall fail to pay (i) any principal of any Loan or any reimbursement
obligation in respect of any unconverted LC Disbursement when and as the same shall become due and
payable, whether at the due date thereof or at a date fixed for prepayment thereof or by
acceleration thereof or otherwise, or (ii) any interest on any Loan or any fee or any other amount
payable under this Agreement or any other Loan Document within five Business Days after it shall
become due and payable; or

          (b) any representation or warranty made or deemed made by or on behalf of any Borrower herein
or in any other Loan Document or the Borrowing Base Certificate or any other certificate required
to be delivered under Article V hereof or required to be delivered in connection with the other
Loan Documents shall prove to have been materially incorrect when made or deemed made; or

          (c) any Borrower shall fail to observe or perform any covenant, condition, term or agreement
contained in Article VI, or Section 5.02(a), 5.02(b), 5.02(e), 5.03, 5.06, 5.08, 5.09 or 5.11 of
this Agreement or Article IV of the Security Agreement; or

          (d) any Borrower shall fail to perform or observe (i) any term, covenant or agreement
contained in Section 5.01(a), (b), (c), (d), (g), (h), (i), or 5.02(c), (d) or (f); or (ii) 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 five days (in the case of the foregoing clause
(i)) or 30 days (in the case of the foregoing clause (ii)) after the earlier of the date on which
(A) any Responsible Officer of a Navistar Party becomes aware of such failure or (B) written notice
thereof shall have been given to the Administrative Borrower by any Agent or any Lender; or

          (e) (i) any Collateral Document after delivery thereof pursuant to the terms of the Loan
Documents shall for any reason, other than pursuant to the terms hereunder or thereunder (including
as a result of a transaction permitted under Section 6.03, 6.04 or 6.05), fail to create a valid
and perfected security interest with the priority required by the Collateral Documents with respect
to any significant portion of the Collateral purported to be covered thereby, except to the extent
that any such loss of perfection or priority results from the failure of the Collateral Agent to
maintain possession of certificates actually delivered to it representing
securities pledged under the Collateral Documents or from the failure of the Administrative
Agent to file UCC continuation statements or (ii) except as otherwise permitted hereunder, any
Collateral Document shall fail to remain in full force or effect or any action shall be taken by
any Borrower to discontinue or to assert the invalidity or unenforceability of any Collateral
Document; or

          (f) any Loan Document, or any material provision therein, at any time after its execution and
delivery and for any reason other than as expressly permitted hereunder or thereunder (including as
a result of a transaction permitted under Section 6.03, 6.04 or 6.05) or as a result of the

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satisfaction in full of the Obligations (other than contingent indemnification obligations), ceases
to be in full force and effect, or any Borrower shall challenge in writing the validity or
enforceability of any Loan Document or any Borrower shall deny in writing that it has any further
liability or obligation under any Loan Document (other than as a result of repayment in full of the
Obligations (other than contingent indemnification obligations) and termination of the Commitments)
or purports in writing to revoke or rescind any Loan Document; or

          (g) Navistar 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 Navistar or
such Borrower 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 Borrowers 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; 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 stated maturity thereof; provided, however, that (i) none of the events described in this
subsection (g), to the extent set forth in the Disclosure Filings or as further disclosed in
writing by the Administrative 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

          (h) Navistar 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 Borrower 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 Borrower or any of its material subsidiaries shall take any corporate
action to authorize any of the actions set forth above in this subsection (h), provided that any
Borrower may dissolve or wind up so long as the assets of such Borrower are transferred to another
Borrower; or

          (i) 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 Borrower 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

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          (j) any non-monetary judgment or order shall be rendered against any Borrower 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

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

          (l) any Borrower 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 Borrowers 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

          (m) any Borrower 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 Borrowers 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

          (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 Administrative Borrower, declare the
Commitments of each Lender and the obligation of each Lender to make Loans or of any Issuing Bank
to issue a Letter of Credit to be terminated, whereupon the same shall forthwith terminate; (ii)
shall at the request, or may with the consent, of the Required Lenders, by written notice to the
Borrower, declare the Loans, all interest thereon and all other amounts payable by the
Administrative Borrower under this Agreement and the other Loan Documents to be forthwith due and
payable, whereupon the Loans, 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 each of the Borrowers; and (iii) shall at the request,
or may with the consent, of the Required Lenders, by written notice to the Administrative Borrower,
require that the Borrowers deposit in the LC Collateral Account an amount in cash equal to 103% of
the then-outstanding LC Exposure; provided, however, that, upon the occurrence of an event with
respect to any Borrower described in clause (h) of this Article VII, (x) the Commitments of each
Lender and the obligation of each Lender to make Loans and of any Issuing Bank to issue Letters of
Credit shall automatically be terminated and (y) the principal of the Loans then outstanding, 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
each Borrower, and the obligation of the Borrower to cash collateralize the outstanding Letters of
Credit as aforesaid shall automatically become effective, in each case without further act of the
Agents or any Lender. Upon the occurrence and during the continuance of an Event of Default, the
Agents may, and at the request of the Required Lenders shall, exercise any rights and remedies
provided to the Agents under the Loan Documents or at law or equity, including all remedies
provided under the UCC.

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ARTICLE VIII

THE AGENTS

          SECTION 8.01. The Agents.

          (a) Each of the Lenders and the Issuing Banks hereby irrevocably appoints the Administrative
Agent and the Collateral Agent as its agents and authorizes the Agents to take such actions on its
behalf, including execution of the other Loan Documents and acting as agent for purposes of
perfection, and to exercise such powers as are delegated to the Agents by the terms of the Loan
Documents, together with such actions and powers as are reasonably incidental thereto.

          (b) Each Person serving as an Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as though it were not an Agent,
and such Person and its Affiliates may accept deposits from, lend money to and generally engage in
any kind of business with the Borrowers or any subsidiary of a Borrower or other Affiliate thereof
as if it were not an Agent hereunder.

          (c) The Agents shall not have any duties or obligations except those expressly set forth in
the Loan Documents. Without limiting the generality of the foregoing, (i) neither Agent shall be
subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and
is continuing, (ii) neither Agent shall have any duty to take any discretionary action or exercise
any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan
Documents that the applicable Agent is required to exercise in writing as directed by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.02), and (iii) except as expressly set forth in the Loan
Documents, the Agents shall not have any duty to disclose, and shall not be liable for the failure
to disclose, any information relating to any Borrower or any of its subsidiaries that is
communicated to or obtained by the Person serving as an Agent or any of its Affiliates in any
capacity. Neither Agent shall be liable for any action taken or not taken by it with the consent or
at the request of the Required Lenders (or such other number or percentage of the Lenders as shall
be necessary under the circumstances as provided in Section 9.02) or in the absence of its own
gross negligence or willful misconduct. Neither Agent shall be deemed to have knowledge of any
Default unless and until written notice thereof is given
to such Agent by the Administrative Borrower or a Lender, and the Agents shall not be
responsible for or have any duty to ascertain or inquire into (A) any statement, warranty or
representation made in or in connection with any Loan Document, (B) the contents of any
certificate, report or other document delivered hereunder or in connection with any Loan Document,
(C) the performance or observance of any of the covenants, agreements or other terms or conditions
set forth in any Loan Document, (D) the validity, enforceability, effectiveness or genuineness of
any Loan Document or any other agreement, instrument or document, (E) the creation, perfection or
priority of Liens on the Collateral or the existence of the Collateral, or (F) the satisfaction of
any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm
receipt of items expressly required to be delivered to the Agents.

          (d) The Agents shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document or other writing
believed by it to be genuine and to have been signed or sent by the proper Person. Each Agent also
may rely upon any statement made to it orally or by telephone and believed by it to be made by the
proper Person, and shall not incur any liability for relying thereon. Each Agent may consult with
legal counsel (who may be counsel for the Borrower), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it in accordance with
the advice of any such

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counsel, accountants or experts except to the extent such action or inaction constitutes gross
negligence, willful misconduct or bad faith.

          (e) Each Agent may perform any and all its duties and exercise its rights and powers by or
through any one or more sub-agents appointed by such Agent. Each Agent and any such sub-agent may
perform any and all its duties and exercise its rights and powers through their respective Related
Parties. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agent
and to the Related Parties of the Agents and any such sub-agent, and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Agent.

          (f) Subject to the appointment and acceptance of a successor Agent as provided in this
paragraph, each Agent may resign at any time by notifying the other Agent, the Lenders, the Issuing
Banks and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with
the consent (not to be unreasonably withheld or delayed) of the Administrative Borrower, to appoint
a successor Agent; provided that, during the existence and continuation of an Event of Default, no
consent of the Administrative Borrower shall be required. If no successor shall have been so
appointed by the Required Lenders and shall have accepted such appointment within 30 days after the
retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of the other
Agent, the Lenders and the Issuing Banks, appoint a successor Agent which shall be a commercial
bank or an Affiliate of any such commercial bank reasonably acceptable to the Borrower. Upon the
acceptance of its appointment as an Agent hereunder by a successor, such successor shall succeed to
and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the
retiring Agent shall be discharged from its duties and obligations hereunder. The fees payable by
the Borrowers to a successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrowers and such successor. After an Agent’s resignation hereunder,
the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such
retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while it was acting as an Agent.

          (g) Each Lender acknowledges that it has, independently and without reliance upon either Agent
or any other Lender and based on such 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 either Agent or any other Lender and based on
such documents and information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or related agreement or any document furnished hereunder or thereunder.

          (h) Each Lender hereby agrees that (i) it has requested a copy of each Report prepared by or
on behalf of the Agents; (ii) neither Agent (A) makes any representation or warranty, express or
implied, as to the completeness or accuracy of any Report or any of the information contained
therein or any inaccuracy or omission contained in or relating to a Report and (B) shall be liable
for any information contained in any Report; (iii) the Reports are not comprehensive audits or
examinations, and that any Person performing any field examination will inspect only specific
information regarding the Borrowers and will rely significantly upon the Borrowers’ books and
records, as well as on representations of the Borrowers’ personnel and that the Agents undertake no
obligation to update, correct or supplement the Reports; (iv) it will keep all Reports confidential
and strictly for its internal use, not share the Report with any Borrower or any other Person
except as otherwise permitted pursuant to this Agreement; and (v) without limiting the generality
of any other indemnification provision contained in this Agreement, it will pay and protect, and
indemnify, defend, and hold the Agents and any such other Person preparing a Report harmless from
and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts
(including reasonable attorneys’ fees) incurred by either Agent or such other

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Person as the direct or indirect result of any third parties who might obtain all or part of any
Report through the indemnifying Lender.

          (i) The Arrangers, the Bookrunners, the Documentation Agents and the Syndication Agents shall
not have any right, power, obligation, liability, responsibility or duty under this Agreement other
than those applicable to all Lenders as such.

          SECTION 8.02. Indemnification by Lenders. (a) Each Lender severally agrees to indemnify each
Agent (to the extent not promptly reimbursed by the Borrowers) 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 Borrowers under Section 9.03, 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 Borrowers. In the case of any investigation, litigation or proceeding giving rise to any
Indemnified Costs, this Section 8.02 applies whether any such investigation, litigation or
proceeding is brought by any Lender or any other Person.

          (b) For purposes of this Section 8.02, each Lender’s ratable share of any amount shall be
determined, as at the incurrence of the relevant Indemnified Costs, according to its share of the
aggregate principal amount of the Advances outstanding at such time and the aggregate participation
in the LC 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 8.02 shall survive the payment in full of
principal, interest and all other amounts payable hereunder and under the other Loan Documents.

ARTICLE IX

MISCELLANEOUS

          SECTION 9.01. Notices. (a) Except in the case of notices and other communications expressly
permitted to be given by telephone (and subject to paragraph (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by facsimile, as follows:

               (i) if to the Administrative Borrower (or to any other Borrower care of the
Administrative Borrower):

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International Truck and Engine Corporation

4201 Winfield Road 

Warrenville, Illinois 60555

Attention: Treasurer

Facsimile No: (630) 753-2305

Email: terry.endsley@nav-international.com

               (ii) if to Credit Suisse, as the Administrative Agent, an Issuing Bank or the
Swingline Lender, at:

Eleven Madison Avenue
 New
York, NY 10010

Attention: Agency Group

Facsimile No.: (212) 325-8304

Email: Matthew.carter.2@credit-suisse.com

               (iii) if to Bank of America, N.A., as the Collateral Agent, at:

231 S. LaSalle Street, 7th Floor

IL1-231-07-49

Chicago, IL 60604

Attention: Loan Administration Manager

Facsimile No.: (312) 755-3345

Email: robert.lund@BankofAmerica.com

               (iv) if to any other Lender, to it at its address or facsimile number set
forth in its Administrative Questionnaire.

All such notices and other communications (x) sent by hand or overnight courier service, or mailed
by certified or registered mail, shall be deemed to have been given when received or (y) sent by
facsimile shall be deemed to have been given when sent and when receipt has been confirmed by
telephone; provided that if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next Business Day for the recipient.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications (including e-mail and Internet or intranet websites) pursuant to
procedures approved by the Administrative Agent; provided that the foregoing shall not apply,
except to the extent expressly provided for therein, to notices pursuant to Article II or to
compliance and no Event of Default certificates delivered pursuant to Section 5.01 unless otherwise
agreed by the Administrative Agent and the applicable Lender. Each Agent or the Administrative
Borrower (on behalf of the Borrowers) will agree to accept notices and other communications to it
hereunder by electronic “pdf” communications of actual signed documents which shall be directed to
the specific name of the individual person previously identified by the Administrative Agent to
receive such notice and otherwise pursuant to procedures that may be approved by it; provided that
approval of such procedures may be limited to particular notices or communications. All such
notices and other communications (i) sent to the e-mail address of the specific individual person
specified previously identified by the Administrative Agent to receive such notice shall be deemed
received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return e-mail or other

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written acknowledgement); provided, that if not given during the normal business hours of the
recipient, such notice or communication shall be deemed to have been given at the opening of
business on the next Business Day for the recipient, and (ii) posted to an Internet or intranet
website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that such notice or communication
is available and identifying the website address therefor.

          (c) Any party hereto may change its address or facsimile number or email address for notices
and other communications hereunder by notice to the other parties hereto.

          SECTION 9.02. Waivers; Amendments. (a) No failure or delay by any Agent, Issuing Bank or
Lender in exercising any right or power hereunder or under any other Loan Document shall operate as
a waiver thereof, nor shall any single or partial exercise of any such right or power, or any
abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of
the Agents, the Issuing Banks and the Lenders hereunder and under any other Loan Document are
cumulative and are not exclusive of any rights or remedies that they would otherwise have. No
waiver of any provision of any Loan Document or consent to any departure by any Borrower therefrom
shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section
9.02, and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. Without limiting the generality of the foregoing, to the extent permitted
by law, the making of a Loan or issuance of a Letter of
Credit shall not be construed as a waiver of any Default, regardless of whether any Agent,
Lender or Issuing Bank may have had notice or knowledge of such Default at the time.

          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except (i) in the case of this Agreement, pursuant to an agreement
or agreements in writing entered into by each Borrower and the Required Lenders (or the
Administrative Agent with the consent of the Required Lenders), or (ii) in the case of any other
Loan Document (other than any such amendment to effectuate any modification thereto expressly
contemplated by the terms of such other Loan Documents), pursuant to an agreement or agreements in
writing entered into by the Administrative Agent and the Borrowers that are parties thereto, with
the consent of the Required Lenders; provided that no such agreement shall (A) increase the
Commitment of any Lender without the written consent of such Lender; it being understood that a
waiver of any condition precedent set forth in Article IV or the waiver of any default interest,
Default or Event of Default that is not otherwise expressly required to be waived by more than
Required Lenders, mandatory prepayment or mandatory reduction of the Commitments, or the making of
any Protective Advance, so long as in compliance with the provisions of Section 2.04, shall not
constitute an increase of any Commitment of any Lender, provided that any change to the second
proviso to the second sentence of Section 2.04(a) shall require the written consent of each Lender;
(B) reduce or forgive the principal amount of any Loan or LC Disbursement or reduce the rate of
interest thereon, or reduce or forgive any interest or fees payable hereunder, without the written
consent of each Lender directly affected thereby, provided that only the consent of the Required
Lenders shall be necessary to amend the provisions of Section 2.13(c) providing for the default
rate of interest, or to waive any obligations of the Borrowers to pay interest at such default
rate, Event of Default or Default that is not otherwise expressly required to be waived by more
than Required Lenders; (C) postpone any scheduled date of payment of the principal amount of any
Loan or LC Disbursement, or any date for the payment of any interest, fees or other Obligations
payable hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the
scheduled date of expiration of any Commitment, without the written consent of each Lender directly
affected thereby, provided that only the consent of the Required Lenders shall be necessary to
amend the provisions of Section 2.13(c) providing for the default rate of interest, or to waive any
obligations of the Borrowers to pay interest at such default rate, Event of Default or Default that
is not otherwise expressly required to be

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waived by more than Required Lenders; (D) change Section 2.18(b) or (c) or Section 2.10(b) in a
manner that would alter the manner in which payments are shared, without the written consent of
each Lender directly affected thereby; (E) change the definition of the term “Liquidity Block
Amount” or “Borrowing Base” or any respective component definition thereof if as a result thereof
the amounts available to be borrowed by the Borrowers would be increased (provided that the
foregoing shall not limit the discretion of the Agents to change, establish or eliminate any
Reserves without the consent of any Lenders), or reduce the Dollar amount set forth in the
definition of “Blocked Cash Amount”, in each case without the written consent of the Super Majority
Lenders; (F) change any of the provisions of this Section 9.02 or reduce the minimum percentage set
forth in the definition of “Required Lenders” or the definition of “Super Majority Lenders” or any
other provision of any Loan Document specifying the number or percentage of Lenders (or Lenders of
any Class) required to waive, amend or modify any rights thereunder or make any determination or
grant any consent thereunder, without the written consent of each Lender; or (G) except as provided
in clause (c) or (d) of this Section 9.02 or in any Collateral Document, release all or
substantially all of the Collateral, without the written consent of each Lender; provided, further
that no such agreement shall amend, modify or otherwise affect the rights or duties of any Agent,
any Issuing Bank or the Swingline Lender hereunder without the
prior written consent of such Agent, such Issuing Bank or the Swingline Lender, as the case may be.
The Administrative Agent may also amend the Commitment Schedule to reflect assignments entered into
pursuant to Section 9.04. Notwithstanding anything to the contrary herein, no Defaulting Lender
shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except
that the Commitment of such Lender may not be increased without the consent of such Lender (it
being understood that any Commitment or Loan held or deemed held by any Defaulting Lender shall be
excluded from a vote of the Lenders hereunder requiring any consent of the Lenders).

          (c) The Lenders hereby irrevocably agree that the Liens granted to the Collateral Agent by the
Borrowers on any Collateral shall be automatically released (i) upon the termination of the
Commitments, payment and satisfaction in full in cash of all Secured Obligations owing as of the
date of such termination (other than Unliquidated Obligations), the termination, expiration or, to
the extent effected in a manner reasonably acceptable to the relevant Issuing Banks or as otherwise
provided for herein, cash collateralization or back-stopping of all outstanding Letters of Credit
in an amount equal to 103% of the face amount of all outstanding Letters of Credit; (ii) upon the
sale or other disposition of the property constituting such Collateral (including as part of or in
connection with any other sale or other disposition permitted hereunder) to any Person other than
another Borrower, to the extent such sale or other disposition is made in compliance with the terms
of this Agreement; (iii) subject to paragraph (b) of this Section 9.02, if the release of such Lien
is approved, authorized or ratified in writing by the Required Lenders, (iv) as required to effect
any sale or other disposition of such Collateral in connection with any exercise of remedies of the
Agents and the Lenders pursuant to the Collateral Documents, or (v) as required pursuant to, and in
accordance with the terms of, any Master Intercompany Agreement provided that the Agents may, in
their discretion, release the Lien on Collateral valued in the aggregate not in excess of
$5,000,000 during each fiscal year without the consent of any Lender. Any such release shall not in
any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly
being released) upon (or obligations of the Borrowers in respect of) all interests retained by the
Borrowers, including the proceeds of any sale, all of which shall continue to constitute part of
the Collateral to the extent required under the provisions of the Loan Documents.

          (d) If, in connection with any proposed amendment, waiver or consent requiring the consent of
“each Lender” or “each Lender directly affected thereby” or the “Super Majority Lenders”, the
consent of the Required Lenders is obtained, but the consent of other necessary Lenders is not
obtained (any such Lender whose consent is necessary but not obtained being referred to herein as a
“Non-Consenting Lender”), then the Borrowers may elect to replace a Non-Consenting Lender as a
Lender party to this Agreement; provided, that, concurrently with such replacement, (i) another
bank or other

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entity which is reasonably satisfactory to the Administrative Borrower and the Administrative Agent
shall agree, as of such date, to purchase for cash the Loans and other Obligations due to the
Non-Consenting Lender pursuant to an Assignment and Assumption and to become a Lender for all
purposes under this Agreement and to assume all obligations of the Non-Consenting Lender to be
terminated as of such date and to comply with the requirements of Section 9.04(b), (ii) the
replacement Lender shall pay the processing and recordation fee referred to in Section
9.04(b)(ii)(C), if applicable, in accordance with the terms of such Section, (iii) the replacement
Lender shall grant its consent with respect to the applicable proposed amendment, waiver or consent
and (iv) the Borrowers shall pay to such Non-Consenting Lender in same day funds on the day of such
replacement (1) all interest, fees and other amounts then accrued but unpaid to such Non-Consenting
Lender by the Borrowers hereunder to and including the date of
termination, including, without limitation, payments due to such Non-Consenting Lender under
Sections 2.15 and 2.17, and (2) an amount, if any, equal to the payment which would have been due
to such Lender on the day of such replacement under Section 2.16 had the Loans of such
Non-Consenting Lender been prepaid on such date rather than sold to the replacement Lender.

Notwithstanding anything to the contrary contained in this Section 9.02, if the Agents and the
Borrowers shall have jointly identified an obvious error or any error or omission of a technical or
immaterial nature, in each case, in any provision of this Agreement or any other Loan Document,
then the Agents and the Borrowers shall be permitted to amend such provision and such amendment
shall become effective without any further action or consent of any other party to this Agreement
or any other Loan Document if the same is not objected to in writing by the Required Lenders within
five Business Days following receipt of notice thereof.

          SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) Subject to any express limitations that
may be set forth in this Agreement with respect to the frequency of appraisals, the Borrowers agree
to pay within (x) one Business Day (in the case of demands prior to the Closing 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, field examination, Report preparation, Collection Account setup and maintenance,
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 Borrower or
with other creditors of any Borrower 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 counsel for the Administrative Agent and each Lender with respect thereto; provided
that the Borrowers shall only be required to reimburse the fees and expenses of one legal counsel
per jurisdiction to the extent no conflict exists).

          (b) Each Borrower agrees, jointly and severally, 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

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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 any
Borrower or Affiliates, or (ii) the actual or alleged presence of Hazardous Materials on any
property of any Borrower or any of its subsidiaries or any Environmental Action relating in any way
to any Borrower 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, willful misconduct or bad faith 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 its officers,
directors, employees or agents or (iii) that the dispute is solely between Indemnified Parties 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 9.03(b) applies, such indemnity shall be effective whether or
not such investigation, litigation or proceeding is brought by any Borrower, 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). Each 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 Borrowing is made by an
Eligible Assignee to a Lender other than on the last day of the Interest Period for such Borrowing
upon an assignment of rights and obligations under this Agreement pursuant to Section 9.04, as a
result of a demand by any Borrower pursuant to Section 2.20, or if such Borrower fails to make any
payment or prepayment of an Borrowing for which a notice of prepayment has been given or that is
otherwise required to be made, whether pursuant to Section 2.10, 2.11 or Article VII or otherwise,
such 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 Borrowing.

          (d) If any Borrower 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, with 3 days’ prior written notice to the Administrative Borrower such amount may be
paid on behalf of such Borrower by the Administrative Agent or any Lender, in its sole discretion.

          (e) Without prejudice to the survival of any other agreement of any Borrower hereunder or
under any other Loan Document, the agreements and obligations of the Borrowers contained in
Sections 2.15 and 2.17 and this Section 9.03 shall survive the payment in full of principal,
interest and all other amounts payable hereunder and under any of the other Loan Documents.

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          SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and permitted assigns permitted hereby (including any Affiliate of an Issuing Bank that
issues any Letter of Credit), except that (i) the Borrowers may not (except as permitted under
Section 6.04) assign or otherwise transfer any of its rights or obligations hereunder without the
prior written consent of each Lender (and any attempted assignment or transfer by any Borrower
without such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer
its rights or obligations hereunder except in accordance with this Section 9.04 (any attempted
assignment or transfer not complying with the terms of this Section 9.04 shall be null and void).
Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person
(other than the parties hereto, their respective successors and assigns permitted hereby (including
any Affiliate of an Issuing Bank that issues any Letter of Credit), Participants (to the extent
provided in paragraph (c) of this Section 9.04) and, to the extent expressly contemplated hereby,
the Related Parties of each of the Agents, the Issuing Banks and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more Eligible Assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans at the time owing to it) with
the prior written consent (such consent not to be unreasonably withheld or delayed) of:

	 	(A)	 	The Administrative Borrower; provided that no consent of the Administrative
Borrower shall be required for an assignment to another Lender, an Affiliate of a
Lender, an Approved Fund or, if an Event of Default has occurred and is
continuing, any other Eligible Assignee, and provided, further that no consent of
the Administrative Borrower shall be required for an assignment during the primary
syndication of the Loans to Persons identified by the Administrative Agent to the
Administrative Borrower on or prior to the Closing Date and reasonably acceptable
to the Administrative Borrower;
	 
	 	(B)	 	the Administrative Agent;
	 
	 	(C)	 	
the Swingline Lender; and
	 
	 	(D)	 	each Issuing Bank.

          (ii) Assignments shall be subject to the following additional conditions:

	 	(A)	 	except in the case of an assignment to another Lender, an Affiliate of a
Lender or an Approved Fund or an assignment of the entire remaining amount of the
assigning Lender’s Commitment or Loans of any Class, the amount of the Commitment
or the principal amount of Loans of the assigning Lender subject to each such
assignment (determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent and further determined
on an aggregate basis for all concurrent assignments to Related Funds (as defined
below)) shall be in a minimum amount of $5,000,000 and increments of $1,000,000 in
excess thereof unless each of the Administrative Borrower and the Administrative
Agent otherwise

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consent; provided that no such consent of the Administrative Borrower
shall be required if an Event of Default has occurred and is continuing;

(B)  each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this
Agreement (except that this clause (B) shall not limit the right of a Lender to
assign all or any portion of its Commitment (without the necessity of assigning a
proportionate portion of both));

(C)  the parties to each assignment shall (1) electronically execute and deliver to
the Administrative Agent an Assignment and Assumption via an electronic settlement
system acceptable to the Administrative Agent (which initially shall be ClearPar,
LLC) or (2) manually execute and deliver to the Administrative Agent an Assignment
and Assumption, together with a processing and recordation fee of $3,500 (provided
that such fee may be waived or reduced in the sole discretion of the
Administrative Agent; and

(D)  the assignee, if it shall not be a Lender, shall deliver on or prior to the
effective date of such assignment, to the Administrative Agent (1) an
Administrative Questionnaire and (2) if applicable, an appropriate Internal
Revenue Service form (such as Form W-8BEN or W-8ECI or any successor form adopted
by the relevant United States taxing authority) as required by applicable law
supporting such assignee’s position that no withholding by the Borrowers or the
Administrative Agent for United States income tax payable by such assignee in
respect of amounts received by it hereunder is required.

The term “Related Funds” shall mean with respect to any Lender that is an Approved Fund, any other
Approved Fund that is managed or advised by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

          (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv) of this
Section 9.04, from and after the effective date specified in each Assignment and Assumption the
assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under this Agreement, and
the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment
and Assumption, be released from its obligations under this Agreement (and, in the case of an
Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Sections 2.15, 2.16, 2.17 and 9.03 with respect to facts and circumstances occurring on
or prior to the effective date of such assignment). Any assignment or transfer by a Lender of
rights or obligations under this Agreement that does not comply with this Section 9.04 shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with paragraph (c) of this Section 9.04.

          (iv) The Administrative Agent, acting for this purpose as an agent of the Borrowers, shall
maintain at one of its offices a copy of each Assignment and Assumption delivered to it and a
register for the recordation of the names and addresses of the Lenders and their respective
successors and assigns, and the Commitment of, and principal amount of and interest on the Loans
and LC Disbursements owing to, each Lender pursuant to the terms hereof

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from time to time (the “Register”). The entries in the Register shall be conclusive, absent
manifest error, and the Borrowers, the Agents, the Issuing Banks and the Lenders may treat each
Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder
for all purposes of this Agreement, notwithstanding notice to the contrary. The Register shall be
available for inspection by the Borrowers, the Issuing Banks and any Lender, at any reasonable time
and from time to time upon reasonable prior notice.

          (v) Upon its receipt of a duly completed Assignment and Assumption executed by an assigning
Lender and an assignee, the assignee’s completed Administrative Questionnaire and tax
certifications required by Section 9.04(b)(ii)(D)(2) (unless the assignee shall already be a Lender
hereunder), the processing and recordation fee referred to in paragraph (b) of this Section 9.04,
if applicable, and any written consent to such assignment required by paragraph (b) of this Section
9.04, the Administrative Agent shall promptly accept such Assignment and Assumption and record the
information contained therein in the Register; provided that if either the assigning Lender or the
assignee shall have failed to make any payment required to be made by it pursuant to Section 2.05,
2.06(d) or (e), 2.07(b), 2.18(c) or 9.03, the Administrative Agent shall have no obligation to
accept such Assignment and Assumption and record the information therein in the Register unless and
until such payment shall have been made in full, together with all accrued interest thereon. No
assignment shall be effective for purposes of this Agreement unless it has been recorded in the
Register as provided in this paragraph.

          (vi) By executing and delivering an Assignment and Assumption, the assigning Lender thereunder
and the assignee thereunder shall be deemed to confirm to and agree with each other and the other
parties hereto as follows: (i) such assigning Lender warrants that it is the legal and beneficial
owner of the interest being assigned thereby free and clear of any adverse claim and that its
Commitment, and the outstanding balances of its Revolving Loans, in each case without giving effect
to assignments thereof which have not become effective, are as set forth in such Assignment and
Assumption, (ii) except as set forth in (i) above, 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 this Agreement, or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, any other Loan Document or any
other instrument or document furnished pursuant hereto, or the financial condition of the Borrowers
or any respective Subsidiary or the performance or observance by the Borrowers or any respective
Subsidiary of any of its obligations under this Agreement, any other Loan Document or any other
instrument or document furnished pursuant hereto; (iii) such assignee represents and warrants that
it is an Eligible Assignee, legally authorized to enter into such Assignment and Assumption; (iv)
such assignee confirms that it has received a copy of this Agreement, together with copies of the
most recent financial statements referred to in Section 3.08 or delivered pursuant to Section 5.01
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 Assumption; (v) such assignee will
independently and without reliance upon the Agents, 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; (vi) such assignee
appoints and authorizes each Agent to take such action as agent on its behalf and to exercise such
powers under this Agreement as are delegated to such Agent, by the terms hereof, together with such
powers as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all the obligations which by the terms of this Agreement are required
to be performed by it as a Lender.

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          (c) (i) Any Lender may, without the consent of the Administrative Borrower, the Administrative
Agent, the Issuing Banks or the Swingline Lender, sell participations to one or more banks or other
entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it); provided that
(A) such Lender’s obligations under this
Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (C) the Borrowers, the Agents, the
Issuing Banks 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. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any amendment, modification or
waiver of any provision of this Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver described in the first proviso to Section 9.02(b) that directly affects such
Participant. Subject to paragraph (c)(ii) of this Section 9.04, each Borrower agrees that each
Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as
if it were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this
Section 9.04.

          (ii) A Participant shall not be entitled to receive any greater payment under Section 2.15 or
2.17 than the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to such Participant is
made with the Administrative Borrower’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 2.17 unless the
Administrative Borrower is notified of the participation sold to such Participant and such
Participant agrees, for the benefit of the Borrowers, to comply with Section 2.17(e) as though it
were a Lender.

          (d) Any Lender may at any time pledge or grant a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or grant to secure obligations to a Federal Reserve Bank, and this Section 9.04 shall
not apply to any such pledge or grant of a security interest; provided that no such pledge or grant
of a security interest shall release a Lender from any of its obligations hereunder or substitute
any such pledgee or assignee for such Lender as a party hereto.

          (e) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing
from time to time by the Granting Lender to the Administrative Agent and the Administrative
Borrower, the option to provide to any Borrower all or any part of any Loan that such Granting
Lender would otherwise be obligated to make to such Borrower pursuant to this Agreement; provided
that (i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an
SPC elects not to exercise such option or otherwise fails to provide all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making
of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same
extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees
that (i) neither the grant to any SPC nor the exercise by any SPC of such option shall increase the
costs or expenses or otherwise increase or change the obligations of the Borrowers under this
Agreement (including its obligations under Section 2.15, 2.16 or 2.17), (ii) no SPC shall be liable
for any indemnity or similar payment obligation under this Agreement (all liability for which shall
remain with the Granting Lender) and the Granting Lender shall for all purposes including approval
of any amendment, waiver or other modification of any provision of the Loan Documents, remain the
Lender of record hereunder. In addition, notwithstanding anything to the contrary contained in this
Section 9.04, any SPC may (i) with notice to, but without the prior written consent of, ITEC or the
Administrative Agent and without paying any processing fee therefor, assign all or a portion of its
interests in any Loans to the Granting Lender or to any financial institutions (consented

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to by ITEC and Administrative Agent) providing liquidity and/or credit support to or for the
account of such SPC to support the funding or maintenance of Loans and (ii) disclose on a
confidential basis any Information relating to its Loans to any rating agency, commercial paper
dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC, which
person shall agree to be bound by the terms of confidentiality continued herein.

          (f) In the event that any Lender shall become a Defaulting Lender, then an Issuing Bank or the
Swingline Lender shall have the right, but not the obligation, at its own expense, upon notice to
such Lender and the Administrative Agent, to replace such Lender with an assignee (in accordance
with and subject to the restrictions contained in paragraph (b) above), and such Lender hereby
agrees to transfer and assign without recourse (in accordance with and subject to the restrictions
contained in paragraph (b) above) all its interests, rights and obligations in respect of its
Commitment to such assignee; provided, however, that (i) no such assignment shall conflict with any
law, rule and regulation or order of any Governmental Authority, and (ii) such Issuing Bank or the
Swingline Lender, as applicable, or such assignee, as the case may be, shall pay to such Lender in
immediately available funds on the date of such assignment the principal of and interest accrued to
the date of payment on the Loans made by such Lender hereunder and all other amounts accrued for
such Lender’s account or owed to it hereunder.

          SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the
Borrowers in the Loan Documents and in the certificates or other instruments delivered in
connection with or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the other parties hereto and shall survive the execution and delivery of
the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of
any investigation made by any such other party or on its behalf and notwithstanding that an Agent,
an Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect
representation or warranty at the time any credit is extended hereunder, and shall continue in full
force and effect as long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is
outstanding and so long as the Commitments have not expired or terminated. The provisions of
Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and
effect regardless of the consummation of the transactions contemplated hereby, the repayment of the
Loans, the expiration or termination of the Letters of Credit and the Commitments or the
termination of this Agreement or any provision hereof.

          SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement, the other Loan Documents and the Engagement Letter and any separate letter
agreements with respect to fees payable to the Agents constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the Agents
and when the Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by facsimile or
electronic transmission shall be effective as delivery of a manually executed counterpart of this
Agreement.

          SECTION 9.07. Severability. To the extent permitted by law, any provision of any Loan
Document held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability
without affecting

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the validity, legality and enforceability of the remaining provisions thereof; and the invalidity
of a particular provision in a particular jurisdiction shall not invalidate such provision in any
other jurisdiction.

           SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing,
each Lender and each of its Affiliates, with the prior written consent of the Agents, is hereby
authorized at any time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional or final) (other
than payroll, petty cash, trust or tax accounts) at any time held and other obligations at any time
owing by such Lender or Affiliate to or for the credit or the account of any Borrower against any
of and all the Secured Obligations held by such Lender, irrespective of whether or not such Lender
shall have made any demand under the Loan Documents and although such obligations may be unmatured.
The applicable Lender shall notify ITEC and the Administrative Agent of such set-off or
application; provided that any failure to give or any delay in giving such notice shall not affect
the validity of any such set-off or application under this Section 9.08. The rights of each Lender
under this Section 9.08 are in addition to other rights and remedies (including other rights of
setoff) which such Lender may have.

           SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS (OTHER THAN LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN
DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.
EACH LETTER OF CREDIT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR
RULES DESIGNATED IN SUCH LETTER OF CREDIT, OR IF NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM
CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS MOST RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE
SUCH LETTER OF CREDIT WAS ISSUED, BY THE INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”)
AND, AS TO MATTERS NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

           (b) Each Borrower hereby irrevocably and unconditionally submits, for itself and its property,
to the exclusive jurisdiction of any U.S. Federal or New York State court sitting in the Borough of
Manhattan, New York, New York in any action or proceeding arising out of or relating to any Loan
Documents, 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 such New York State or, to the extent permitted by law, in such
Federal court. Each of the parties hereto 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 Agreement or any other Loan Document shall
affect any right that any Agent, any Issuing Bank or any Lender may otherwise have to bring any
action or proceeding relating to this Agreement or any other Loan Document against any Borrower or
its properties in the courts of any jurisdiction.

           (c) Each Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which 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 other Loan Document in any court referred to in paragraph (ii) of this
Section 9.09. 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.

           (i) To the extent permitted by law, each party to this Agreement hereby irrevocably waives
personal service of any and all process upon it and agrees that all such service of process may be
made by registered mail (return receipt requested) directed to it at its address for notices as
provided for in

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Section 9.01. Nothing in this Agreement or any other Loan Document will affect the right of any
party to this Agreement to serve process in any other manner permitted by law.

          SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION 9.10.

          SECTION 9.11. Headings. Article and Section headings and the Table of Contents used herein are
for convenience of reference only, are not part of this Agreement and shall not affect the
construction of, or be taken into consideration in interpreting, this Agreement.

          SECTION 9.12. Confidentiality. Each Agent, each Issuing Bank and each Lender agrees (and each
Lender agrees to cause its SPC, if any and agrees to be liable for any breach thereof by its SPC)
to maintain the confidentiality of the Information (as defined below), except that Information may
be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including
accountants, legal counsel and other advisors (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential); (b) to the extent requested by any regulatory, governmental
or administrative authority; (c) to the extent required by law or by any subpoena or similar legal
process; (d) to any other party to this Agreement; (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan
Document or the enforcement of rights hereunder or thereunder; (f) subject to an agreement
containing provisions substantially the same as those of this Section 9.12, to (i) any assignee of
or Participant in, or any prospective assignee of or Participant in, any of its rights or
obligations under this Agreement, including, without limitation, any SPC, (ii) any pledgee referred
to in Section 9.04(d), or (iii) any actual or prospective counterparty (or its advisors) to any
swap or derivative transaction relating to the Borrowers and their obligations; (g) with the
consent of the Borrower; or (h) to the extent such Information (x) becomes publicly available other
than as a result of a breach of this Section 9.12, or (y) becomes
available to an Agent, an Issuing Bank or any Lender on a nonconfidential basis other than as
a result of a breach of this Section 9.12 from a source other than the Borrower. For the purposes
of this Section 9.12 only, “Information” means all information received from any Borrower relating
to the Borrowers or their businesses or the Transactions, other than any such information that is
available to any Agent, any Issuing Bank or any Lender on a nonconfidential basis prior to
disclosure by any Borrower. Any Person required to maintain the confidentiality of Information as
provided in this Section 9.12 shall be considered to have complied with its obligation to do so if
such Person has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

          SECTION 9.13. Lender Obligations Several; Violation of Law. The respective obligations of the
Lenders hereunder are several and not joint and the failure of any Lender to make any Loan or
perform any of its obligations hereunder shall not relieve any other Lender from any of its
obligations hereunder. Anything contained in this Agreement to the contrary notwithstanding,
neither the

ITEC ABL Credit Agreement

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Issuing Banks nor any Lender shall be obligated to extend credit to the Borrowers in violation of
any Requirement of Law.

          SECTION 9.14. USA PATRIOT Act. Each Lender and each Agent (for itself and not on behalf of any
Lender) hereby notifies the Borrowers that pursuant to the requirements of the USA PATRIOT Act, it
is required to obtain, verify and record information that identifies each Borrower, which
information includes the name and address of such Borrower and other information that will allow
such Lender or such Agent, as applicable, to identify such Borrower in accordance with the USA
PATRIOT Act. Each Borrower shall, and shall cause each of the other Borrowers 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 USA PATRIOT Act.

          SECTION 9.15. Disclosure. Each Borrower and each Lender hereby acknowledges and agrees that
the Agents and/or their Affiliates from time to time may hold investments in, make other loans to
or have other relationships with any of the Borrowers and their respective Affiliates. In addition,
each Borrower and each Lender hereby acknowledges that the Agents and/or their Affiliates may make
a loan to the Borrowers under the Senior Secured Term Loan Facility.

          SECTION 9.16. Appointment for Perfection. Each Lender hereby appoints each other Lender as its
agent for the purpose of perfecting Liens, for the benefit of the Collateral Agent and the Lenders,
in assets which, in accordance with Article 9 of the UCC or any other applicable law can be
perfected only by possession. Should any Lender (other than the Collateral Agent) obtain possession
of any such Collateral, such Lender shall notify the Collateral Agent thereof, and, promptly upon
the Collateral Agent’s request therefor shall deliver such Collateral to the Collateral Agent or
otherwise deal with such Collateral in accordance with the Collateral Agent’s instructions.

          SECTION 9.17. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if
at any time the interest rate applicable to any Loan, together with all fees, charges and other
amounts which are treated as interest on such Loan under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for,
charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable
law, the rate of interest payable in respect of such Loan hereunder,
together with all Charges payable in respect thereof, shall be limited to the Maximum Rate
and, to the extent lawful, the interest and Charges that would have been payable in respect of such
Loan but were not payable as a result of the operation of this Section 9.17 shall be cumulated and
the interest and Charges payable to such Lender in respect of other Loans or periods shall be
increased (but not above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been
received by such Lender.

          SECTION 9.18. Borrower Liability.

          (a) Joint and Several Liability. All Loans, upon funding, shall be deemed to be jointly
funded to and received by the Borrowers. Each Borrower jointly and severally agrees to pay, and
shall be jointly and severally liable under this Agreement for, all Obligations, regardless of the
manner or amount in which proceeds of Loans are used, allocated, shared, or disbursed by or among
the Borrowers themselves, or the manner in which an Agent and/or any Lender accounts for such Loans
or other extensions of credit on its books and records. Each Borrower shall be liable for all
amounts due to an Agent and/or any Lender under this Agreement, regardless of which Borrower
actually receives Loans or other extensions of credit hereunder or the amount of such Loans and
extensions of credit received or the manner in which such Agent and/or such Lender accounts for
such Loans or other extensions of credit on its books and records. Each Borrower’s Obligations with
respect to Loans and other extensions of credit

ITEC ABL Credit Agreement

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made to it, and such Borrower’s Obligations arising as a result of the joint and several liability
of such Borrower hereunder, with respect to Loans made to the other Borrowers hereunder, shall be
separate and distinct obligations, but all such Obligations shall be primary obligations of such
Borrower. The Borrowers acknowledge and expressly agree with the Agents and each Lender that the
joint and several liability of each Borrower is required solely as a condition to, and is given
solely as inducement for and in consideration of, credit or accommodations extended or to be
extended under the Loan Documents to any or all of the other Borrowers and is not required or given
as a condition of extensions of credit to such Borrower. Each Borrower’s obligations under this
Agreement shall be separate and distinct obligations. Each Borrower’s obligations under this
Agreement shall, to the fullest extent permitted by law, be unconditional irrespective of (i) the
validity or enforceability, avoidance, or subordination of the Secured Obligations of any other
Borrower or of any promissory note or other document evidencing all or any part of the Secured
Obligations of any other Borrower, (ii) the absence of any attempt to collect the Secured
Obligations from any other Borrower, or any other security therefor, or the absence of any other
action to enforce the same, (iii) the waiver, consent, extension, forbearance, or granting of any
indulgence by an Agent and/or any Lender with respect to any provision of any instrument evidencing
the Secured Obligations of any other Borrower, or any part thereof, or any other agreement now or
hereafter executed by any other Borrower and delivered to an Agent and/or any Lender, (iv) the
failure by an Agent and/or any Lender to take any steps to perfect and maintain its security
interest in, or to preserve its rights to, any security or collateral for the Secured Obligations
of any other Borrower, (v) an Agent’s and/or any Lender’s election, in any proceeding instituted
under the Bankruptcy Code, of the application of Section 1111(b)(2) of the Bankruptcy Code, (vi)
any borrowing or grant of a security interest by any other Borrower, as debtor-in-possession under
Section 364 of the Bankruptcy Code, (vii) the disallowance of all or any portion of an Agent’s
and/or any Lender’s claim(s) for the repayment of the Obligations of any other Borrower under
Section 502 of the Bankruptcy Code, or (viii) any other circumstances which might constitute a
legal or equitable discharge or defense of a guarantor or of any other Borrower (other than payment
or performance, to the extent thereof). With respect to any Borrower’s Secured Obligations arising
as a result of the joint and several liability of the
Borrowers hereunder with respect to Loans or other extensions of credit made to any of the other
Borrowers hereunder to the extent permitted by applicable law, such Borrower waives, until the
Secured Obligations (other than contingent indemnification obligations) shall have been paid in
full and this Agreement shall have been terminated, any right to enforce any right of subrogation
or any remedy which an Agent and/or any Lender now has or may hereafter have against any other
Borrower, any endorser or any guarantor of all or any part of the Secured Obligations, and any
benefit of, and any right to participate in, any security or collateral given to an Agent and/or
any Lender to secure payment of the Secured Obligations of any Borrower to an Agent and/or any
Lender. Upon any Event of Default, the Agents may proceed directly and at once, without notice,
against any Borrower to collect and recover the full amount, or any portion of the Secured
Obligations, without first proceeding against any other Borrower or any other Person, or against
any security or collateral for the Secured Obligations. Each Borrower consents and agrees that the
Agents shall be under no
obligation to marshal any assets in favor of any Borrower or against or in
payment of any or all of the Secured Obligations.

          (b) Contribution and Indemnification among the Borrowers. Each Borrower is obligated to repay
the Facility Obligations as joint and several obligor under this Agreement. To the extent that any
Borrower shall make an Accommodation Payment, then the Borrower making such Accommodation Payment
shall be entitled to contribution and indemnification from, and be reimbursed by, each of the other
Borrowers in an amount, for each of such other Borrowers, equal to a fraction of such Accommodation
Payment, the numerator of which fraction is such other Borrower’s Allocable Amount (as defined
below) and the denominator of which is the sum of the Allocable Amounts of all of the Borrowers. As
of any date of determination, the “Allocable Amount” of each Borrower shall be equal to the maximum
amount of liability for Accommodation Payments which could be asserted against such Borrower
hereunder without (i) rendering such Borrower “insolvent” within the meaning of Section 101

ITEC ABL Credit Agreement

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(31) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer Act (“UFTA”) or Section 2
of the Uniform Fraudulent Conveyance Act (“UFCA”), (ii) leaving such Borrower with unreasonably
small capital or assets, within the meaning of Section 548 of the Bankruptcy Code, Section 4 of the
UFTA, or Section 5 of the UFCA, or (iii) leaving such Borrower unable to pay its debts as they
become due within the meaning of Section 548 of the Bankruptcy Code or Section 4 of the UFTA, or
Section 5 of the UFCA. All rights and claims of contribution, indemnification, and reimbursement
under this Section 9.18 shall be subordinate in right of payment to the prior payment in full of
the Facility Obligations (other than contingent indemnification obligations). The provisions of
this Section 9.18 shall, to the extent expressly inconsistent with any provision in any Loan
Document, supersede such inconsistent provision.

          SECTION 9.19. Agency of ITEC as Administrative Borrower for Each Other Borrower. Each of the
other Borrowers irrevocably appoints ITEC as its agent for all purposes relevant to this Agreement
(in such capacity, the “Administrative Borrower”), including the giving and receipt of notices and
execution and delivery of all documents, instruments, and certificates contemplated herein
(including, without limitation, execution and delivery to the Agents of Borrowing Base
Certificates, Borrowing Requests, Letter of Credit Requests and Interest Election Requests) and all
modifications hereto. Any acknowledgment, consent, direction, certification, or other action which
might otherwise be valid or effective only if given or taken by all or any of the Borrowers or
acting singly, shall be valid and effective if given or taken only by the Administrative Agent,
whether or not any of the other Borrowers joins therein, and the Agents and the Lenders shall have
no duty or obligation to make further inquiry with respect to the authority of the Administrative
Agent under this Section 9.19; provided that nothing in this Section 9.19 shall limit the
effectiveness of, or the right of the Agents and the
Lenders to rely upon, any notice (including without limitation a Borrowing Request, a Letter
of Credit Request or an Interest Election Request), document, instrument, certificate,
acknowledgment, consent, direction, certification, or other action delivered by any Borrower
pursuant to this Agreement.

          SECTION 9.20. Additional Borrowers. Any addition of any Person as a Borrower under this
Agreement is subject to consent by the Agents, which consent may not be unreasonably withheld,
delayed or conditioned, which conditions may include, without limitation, (a) the furnishing of
such financial and other information (including, but not limited to, a completed audit and field
examination of such Person) as the Agents may reasonably request; (b) approval by all appropriate
approval authorities of the Agents; and (c) execution and delivery by the Borrowers, such Person,
the Administrative Agent, and the Collateral Agent of such agreements and other documentation, and
the furnishing by such Person or any of the Borrowers of such certificates, opinions, and other
documentation, as the Administrative Agent and any such Lender may reasonably request; provided,
that the written consent of each Lender shall be required for the addition of any Person that is
not a “United States person” (within the meaning of Section 7701(a)(30) of the Code) as a Borrower.

          SECTION 9.21. Obligations Absolute. Each Borrower hereby covenants and agrees, jointly and
severally, that the Facility 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
joint and several liability of each Borrower under this Agreement shall be irrevocable, absolute
and unconditional irrespective of, and to the extent permitted by applicable law, each Borrower
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 Facility Obligations or any other Obligations of any other Borrower under or in respect of

ITEC ABL Credit Agreement

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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 Facility Obligations resulting from
the extension of additional credit to any Borrower or any of its subsidiaries or otherwise;

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

          (d) any change, restructuring or termination of the corporate structure or existence of any
Borrower or any of its subsidiaries;

          (e) any failure of any Lender or affiliate thereof to disclose to any Borrower any information
relating to the business, condition (financial or otherwise), operations, performance, properties
or prospects of any other Borrower now or hereafter known to such Lender (each Borrower 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 or any other
agreement or the release or reduction of liability of any Borrower with respect to the Facility
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 Borrower or any other guarantor or surety, in each
case other than payment or performance of the Facility Obligations (other than contingent
indemnification obligations).

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

          SECTION 9.22. Express Waivers and Representations by Borrowers. Each Borrower agrees as
follows, to the extent permitted by applicable law:

          (a) Each Borrower hereby unconditionally and irrevocably waives: (i) notice of acceptance of
this Agreement; (ii) notice of the making of any Loans, the issuance of any Letter of Credit or any
other financial accommodations made or extended under the Loan Documents or the creation or
existence of any Obligations; (iii) notice of the amount of the Obligations, subject, however, to
such Borrower’s right to make inquiry of the Administrative Agent to ascertain the amount of the
Obligations at any reasonable time; (iv) notice of any adverse change in the financial condition of
any other Borrower or of any other fact that might increase such Borrower’s risk with respect to
such other Borrower under the Loan Documents; (v) notice of presentment for payment, demand,
protest, and notice thereof as to any promissory notes or other instruments among the Loan
Documents; and (vii) all other notices (except if such notice is specifically required to be given
to such Borrower hereunder or under any of the other Loan Documents to which such Borrower is a
party) and demands to which such Borrower might otherwise be entitled;

          (b) Each Borrower hereby unconditionally and irrevocably waives the right by statute or
otherwise to require an Agent or any Lender to institute suit against any other Borrower or to
exhaust any rights and remedies which an Agent or any Lender has or may have against any other
Borrower. Each Borrower further waives any defense arising by reason of any disability or other
defense of any other Borrower (other than the defense that the Obligations shall have performed and
paid, to the

ITEC ABL Credit Agreement

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extent thereof) or by reason of the cessation from any cause whatsoever of the liability of any
such Borrower in respect thereof.

          (c) Each Borrower hereby unconditionally and irrevocably waives promptness, diligence, notice
of acceptance, presentment, demand for performance, notice of nonperformance, default,
acceleration, protest or dishonor and any other notice with respect to any of the Obligations 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 Borrower or any other Person.

          (d) Each Borrower hereby unconditionally and irrevocably waives any right to revoke its joint
and several liability hereunder, and acknowledges that such liability is continuing in nature and
applies to all Obligations, whether existing now or in the future.

          (e) Each Borrower 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 Borrower or
other rights of such Borrower to proceed against any of the other Borrowers 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 Borrower hereunder.

          (f) Each Borrower hereby unconditionally and irrevocably waives any duty on the part of any
Lender to disclose to such Borrower any matter, fact or thing relating to the business, condition
(financial or otherwise), operations, performance, properties or prospects of any other Borrower or
any of its subsidiaries now or hereafter known by such Lender.

          (g) Each Borrower 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 9.18 and this Section 9.22 are knowingly made in contemplation of such benefits.

          (h) Each Borrower hereby represents and warrants to the Agents and the Lenders that such
Borrower is currently informed of the financial condition of all other Borrowers and all other
circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of
the Obligations. Each Borrower further represents and warrants that such Borrower has read and
understands the terms and conditions of the Loan Documents. Each Borrower agrees that none of the
Agents, any Lender, or any Issuing Bank has any responsibility to inform any Borrower of the
financial condition of any other Borrower or of any other circumstances which bear upon the risk of
nonpayment or nonperformance of the Obligations.

[SIGNATURES APPEAR ON FOLLOWING PAGE]

ITEC ABL Credit Agreement

- 95 -

 

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

	 	 	 	 	 
	 	INTERNATIONAL TRUCK AND ENGINE CORPORATION 

 	 
	 	By:  	/s/
TM Endsley
 	 
	 	 	Name:  	TM Endsley 	 
	 	 	Title:  	SVP & Treasurer 	 
	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 
	 	IC CORPORATION 

 	 
	 	By:  	/s/ Michael A. Cancelliere
 	 
	 	 	Name:  	Michael A. Cancelliere 	 
	 	 	Title:  	VP 	 
	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 
	 	IC OF OKLAHOMA, LLC 

 	 
	 	By:  	/s/
Michael A. Cancelliere
 	 
	 	 	Name:  	Michael A. Cancelliere 	 
	 	 	Title:  	VP 	 
	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 
	 	INTERNATIONAL DIESEL OF ALABAMA, LLC 

 	 
	 	By:  	/s/ T. M. Endsley
 	 
	 	 	Name:  	T. M. Endsley 	 
	 	 	Title:  	Treasurer 	 
	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 
	 	SST TRUCK COMPANY LP

 	 
	 	By:  	/s/ TM Endsley
 	 
	 	 	Name:  	TM Endsley 	 
	 	 	Title:  	SVP & Treasurer 	 
	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
	 	 	as Administrative Agent, Issuing Bank and Swingline
Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Ian Nalitt	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Ian Nalitt	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James Neira	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James Neira	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title: Associate	 	 

Signature Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE SECURITIES (USA) LLC,
	 	 	as Lead Arranger and Bookrunner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James S. Finch	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: James S. Finch	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title: Managing Director	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,
	 	 	as Syndication Agent and Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Richard W. Duker	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Richard W. Duker	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title: Managing Director	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	J.P. MORGAN SECURITIES INC.,
	 	 	as Bookrunner
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Donald R. Benson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Donald R. Benson	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title: Managing Director	 	 

Signature Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,
	 	 	as Collateral Agent and Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert J. Lund	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Robert J. Lund	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title: Senior Vice President	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	BANC OF AMERICA SECURITIES LLC,
	 	 	as Syndication Agent, Lead Arranger and Bookrunner
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Janet Jarrett	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Janet Jarrett	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Title: Managing Director	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL CORPORATION,
	 	 	as Documentation Agent and Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Rebecca L. Milligan	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Rebecca L. Milligan	 	 
	 
	 

	 	 	 	Title: Duly Authorized Signatory	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL FINANCE CORPORATION (CENTRAL),
	 	 	as Documentation Agent and Lender
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Steven Linderman	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Steven Linderman	 	 
	 
	 

	 	 	 	Title: Managing Director	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	UPS CAPITAL CORPORATION,	 	 
	 	 	as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John P. Holloway	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: John P. Holloway	 	 
	 
	 

	 	 	 	Title: Director of Portfolio Management	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, LLC,	 	 
	 	 	as Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Eunnie Kim	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Eunnie Kim	 	 
	 
	 

	 	 	 	Title: Vice President	 	 

Signature
Page to ITEC ABL Credit Agreement

 

 

COMMITMENT SCHEDULE

	 	 	 
	Lender	 	Commitment
	Credit Suisse
	 	$30,000,000
	Bank of America, N.A.
	 	$30,000,000
	JPMorgan Chase Bank, N.A.
	 	$25,000,000
	General Electric Capital Corporation
	 	$35,000,000
	Wachovia Capital Finance Corporation
(Central)
	 	$35,000,000
	Wells Fargo Foothill, LLC
	 	$30,000,000
	UPS Capital Corporation
	 	$15,000,000
	 
	 	 
	Total
	 	$200,000,000

ITEC ABL Credit Agreement

 

 

Schedule 3.02

Borrower Information

	 	 	 	 	 	 	 
	 	 	Jurisdiction of	 	Principal Place of	 	 
	Name	 	Organization	 	Business	 	Tax ID Number
	International
Truck and Engine
Corporation

	 	Delaware
	 	4201
Winfield Road

P.O. Box 1488
Warrenville, IL

60555
	 	36-1264810
	 
	 	 	 	 	 	 
	IC  Corporation

	 	Arkansas
	 	751 S.
Harkrider

Conway, Arkansas 

72035
	 	71-0537857
	 
	 	 	 	 	 	 
	SST Truck Company, LP

	 	Delaware
	 	4030 Forest
Lane
 Garland, Texas

75042
	 	75-2688054
	 
	 	 	 	 	 	 
	IC of Oklahoma,
LLC

	 	Delaware
	 	2322 North
Mingo
 Road, Tulsa, OK
 74116
	 	36-4362728
	 
	 	 	 	 	 	 
	International
Diesel of Alabama,
LLC

	 	Delaware
	 	646 James Record
 Road Huntsville, Alabama

35824
	 	36-4321267

 

 

Schedule 3.06

Disclosed Matters

The Borrowers are subject to various claims arising in the ordinary course of business, and are
parties to various legal proceedings that constitute ordinary routine litigation incidental to the
business of the company and its subsidiaries. The majority of these claims and proceedings relate
to commercial, product liability and warranty matters. In the opinion of the Borrowers’ management,
apart from the actions set forth below, the disposition of these proceedings and claims, after
taking into account established reserves and the availability and limits of the company’s insurance
coverage, will not have a material adverse affect on the business or the financial condition of the
company.

On
October 13, 2004, Navistar International Corpation (“NIC”), the Borrowers’ parent company,
received a request from the staff of the U.S. Securities and Exchange
Commission (“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. NIC is fully
cooperating with this request. Based on the status of the inquiry, the company is not able to
predict the final outcome of this matter.

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

On January 11, 2007, a complaint was filed against ITEC in Oakland County Circuit Court in Michigan
by Ford Motor Company claiming damages relating to warranty and pricing disputes with respect to
certain engines purchased by Ford Motor Company from ITEC. While Ford has not quantified its
alleged damages, ITEC estimates from Ford’s allegations that the range of damages that Ford Motor
Company is seeking to be between $500 million and $600 million. ITEC has filed an answer to the
complaint denying Ford’s allegations in all material respects. ITEC has also asserted affirmative
defenses to Ford’s claims, as well as counterclaims alleging that, among other things, Ford has
materially breached contracts between it and ITEC in several different respects. ITEC has also
raised counterclaims against Ford for breach of the covenant of good faith and fair dealing,
tortious interference, conversion, and misrepresentation. Based on ITEC’s investigation to date,
ITEC believes it has meritorious defenses to this matter, and ITEC intends to vigorously defend
itself. There can be no assurance, however, that ITEC will be successful in its defense, and an
adverse resolution of the lawsuit could have a material adverse effect on ITEC’s financial position
and results of operations.

Along with other vehicle manufacturers, ITEC and certain of its subsidiaries have been
subject to an increase in the number of asbestos-related claims in recent years. 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 ITEC 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 ITEC’s policy to defend against them
vigorously. Historically, the actual damages paid out to claimants have not been material to ITEC’s
results of operations and financial condition. However, management believes ITEC 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.

 

 

Schedule 3.16

Existing Debt (Non-Intercompany) in Excess of $50,000,000

Part I.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Outstanding	 	 	 	Maturity	 	 
	Debtor	 	Guarantor	 	Amount	 	Rate	 	Date	 	Comments
	ITEC
	 	NIC	 	$356,621,713	 	Various	 	6/5/2014	 	Guarantee to various 3rd Party
	 
	 	 	 	 	 	 	 	 	 	Lessors for Sale Leasebacks -
	 
	 	 	 	 	 	 	 	 	 	Remaining Lease Payments with
	 
	 	 	 	 	 	 	 	 	 	various lease termination dates
	 
	 	 	 	 	 	 	 	 	 	thru 2014
	 
	 	 	 	 	 	 	 	 	 	 
	NIC
	 	ITEC	 	$1,445,000,000	 	L+325	 	1/19/2012	 	Term Loan/Synthetic Revolver
	 
	 	 	 	 	 	 	 	 	 	entered into on January 19,2007.
	 
	 	 	 	 	 	 	 	 	 	Excludes standby letters of credit
	 
	 	 	 	 	 	 	 	 	 	issued under the Synthetic
	 
	 	 	 	 	 	 	 	 	 	Revolver
	 
	 	 	 	 	 	 	 	 	 	 
	NIC
	 	ITEC	 	$29,846,600 *	 	N/A	 	Various	 	Standby letters of credit issued
	 
	 	 	 	 	 	 	 	 	 	under the Synthetic Revolver

 

* Amount shown represents the aggregate amount of Standby Letters of Credit issued
under the January 19, 2007 Credit Facility. This amount is not Debt (i.e. the company is not
paying interest expense for the amount shown).

[Note: Excludes $78.85 million of Real Estate Operating Leases where ITEC is either the Lessee or
Guarantor. These leases will be treated as Operating Leases for GAAP. It is expected that these
will be treated as Operating Leases for Tax purposes (and therefore not considered as Debt for
covenant purposes), but the determination is not yet final.]

Part II.

None.

 

 

Schedule 3.17

Existing Liens Securing Debt for Borrowed Money in Excess of $50,000,000

None.

 

 

Schedule 3.19

Insurance

	 	 	 	 	 	 	 	 	 
	Coverage	 	Type	 	Exp. Date	 	Policy Limit ($000)	 	Insurer
	Property
	 	Replacement Cost	 	 	 	$500 Property Damage	 	Self-Insured Retention
	 
	 	 	 	 	 	$1,000 Business Interruption	 	Self-Insured Retention
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	15-Dec-07	 	$3,929,586 Property Damage	 	FM Global
	 
	 	 	 	 	 	 	 	 
	Automobile Liability
	 	Occurrence	 	01-Jan-08	 	$2,000	 	Zurich American
	 
	 	 	 	 	 	 	 	 
	General Liability
	 	Occurrence Reported	 	 	 	$2,000 Each Occurrence	 	Self-Insured Retention
	Products Liability
	 	Occurrence Reported	 	 	 	$10,000 Each Occurrence	 	Self-Insured Retention
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	14-Aug-07	 	$25,000 (inclusive of SIR)	 	Lexington (w/ Starr PD wrap)
	 
	 	 	 	14-Aug-07	 	$25,000 excess $25,000	 	XL Europe
	 
	 	 	 	14-Aug-07	 	$50,000 excess $50,000	 	Gerling
	 
	 	 	 	14-Aug-07	 	$50,000 excess $100,000	 	Swiss Re
	 
	 	 	 	14-Aug-07	 	$100,000 excess $150,000	 	XL Bermuda
	 
	 	 	 	 	 	 	 	 
	D&O Liability
	 	Claims Made	 	 	 	$10,000 Each Occurrence — Side B	 	Self-Insured Retention
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	15-Apr-08	 	$25,000	 	National Union
	 
	 	 	 	15-Apr-08	 	$10,000 excess $25,000	 	Federal
	 
	 	 	 	15-Apr-08	 	$10,000 excess $35,000	 	Twin City
	 
	 	 	 	15-Apr-08	 	$10,000 excess $45,000	 	American Casualty

 

 

	 	 	 	 	 	 	 	 	 
	Coverage	 	Type	 	Exp. Date	 	Policy Limit ($000)	 	Insurer
	 
	 	 	 	15-Apr-08	 	$10,000 excess $55,000	 	Zurich American
	 
	 	 	 	15-Apr-08	 	$20,000 excess $65,000	 	AWAC
	 
	 	 	 	15-Apr-08	 	$15,000 excess  $85,000	 	Starr Excess
	 
	 	 	 	 	 	 	 	 
	D&O Liability — IDL
	 	Claims Made	 	15-Apr-08	 	$15,000	 	Illinois National
	 
	 	 	 	 	 	 	 	 
	Blanket Crime
	 	 	 	 	 	$1,000	 	Self-Insured Retention
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	01-Nov-08	 	$10,000	 	Zurich American
	 
	 	 	 	 	 	 	 	 
	
	 	 	 	 	 	 	 	 
	Workers
Compensation / Employers Liability
	 	Occurrence	 	01-Jan-08	 	“A” Statutory	 	Zurich American
	 
	 	 	 	 	 	“B”  $2,000 per Accident	 	 
	 
	 	 	 	 	 	 	 	 
	Excess Work Comp / EL

	 	Occurrence	 	01-Jan-08	 	“A” Statutory excess  $1,000 SIR	 	Zurich American
	(IL, IN, OH, AR, AL, OK)
	 	 	 	 	 	“B”  $1,000 per Accident excess	 	 
	 
	 	 	 	 	 	$1,000 SIR	 	 

 

 

EXHIBIT A

FORM OF ADMINISTRATIVE QUESTIONNAIRE

[INTERNATIONAL TRUCK AND ENGINE CORPORATION]

[IC CORPORATION]

[SST TRUCK COMPANY LP]

[IC OF OKLAHOMA, LLC]

[INTERNATIONAL DIESEL OF ALABAMA, LLC]1

Please accurately complete the following information and return via Fax to the attention of Agency
Administration at Credit Suisse as soon as possible, at Fax No. 212-325-8304.

LENDER LEGAL NAME TO APPEAR IN DOCUMENTATION:

GENERAL INFORMATION — DOMESTIC LENDING OFFICE:

Institution Name:                                                                   
                                                                          

Street Address:                                                                   
                                                                          

City, State, Zip Code:                                                                  
                                                                           

GENERAL INFORMATION — EURODOLLAR LENDING OFFICE:

Institution Name:                                                                  
                                                                           

Street Address:                                                                  
                                                                           

City, State, Zip Code:                                                                  
                                                                           

POST-CLOSING, ONGOING CREDIT CONTACTS/NOTIFICATION METHODS:

CREDIT CONTACTS:

Primary
Contact:                                                                  
                                                                          

Street Address:                                                                     
                                                                       

 

			
	1	 	To be cloned out — one for each Borrower.

               
Form of ITEC ABL Administrative Questionnaire

Ex.
A-1

 

 

City, State, Zip Code:                                                                 
                                                                           

Phone Number:                                                                  
                                                                          

Fax Number:                                                                   
                                                                         

Backup
Contact:                                                                  
   
                                                                       

Street Address:                                                                  
   
                                                                       

City, State, Zip Code:                                                                 
                                                                           

Phone Number:                                                                   
                                                                          

Fax Number:                                                                    
                                                                         

TAX
WITHHOLDING:

Nonresident Alien           Y*       N

 

* Form 4224 Enclosed

Tax ID Number                                         

POST-CLOSING, ONGOING ADMIN. CONTACTS / NOTIFICATION METHODS:

ADMINISTRATIVE CONTACTS — BORROWINGS, PAYDOWNS, FEES, ETC.

Contact:                                                                   
                                                                              
               

Street Address:                                                                  
                                                                          

City, State, Zip Code:                                                                 
                                                       

Phone Number:                                                                  
                                                                          

               
Form of ITEC ABL Administrative Questionnaire

Ex. A-2

 

 

	 	 	 	 	 	 	 	 	 
	Fax Number:
	 	 	 	 	 	 	 	 
	  

	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	PAYMENT INSTRUCTIONS:
	 
	 	 	 	 	 	 	 	 
	Name of Bank to which funds are to be transferred:	 	 	 	 
	  

	 
	 	 	 	 	 	 	 	 
	 
	 
	 	 	 	 	 	 	 	 
	Routing Transit/ABA number of Bank to which funds are to be transferred:	 	 
	
 

	 
	 	 	 	 	 	 	 	 
	Name of Account, if applicable:	 	 	 	 	 	 
	 	 	
 

	 
	 	 	 	 	 	 	 	 
	Account Number: 
	 	 	 	 	 	 	 	 
	 	 
	 
	 	 	 	 	 	 	 	 
	Additional information:	 	 	 	 	 	 	 
	 	
 

MAILINGS:

Please specify the person to whom the Borrower should send financial and compliance information
received subsequent to the closing (if different from primary credit contact):

	 	 	 	 	 
	Name:
	 	 	 	 
	 	 
	 
	 	 	 	 
	Street Address:	 	 
	 

	 	  

	 
	 	 	 	 
	City, State, Zip Code:	 	 
	 

	 	 	 	 

It is very
important that all the above information be accurately completed and that this
questionnaire be returned to the person specified in the introductory paragraph of this
questionnaire as soon as possible. If there is someone other than yourself who should receive this
questionnaire, please notify us of that person’s name and Fax number and we will Fax a copy of the
questionnaire. If you have any questions about this form, please call Agency Administration at
Credit Suisse.

Form
of ITEC ABL Administrative Questionnaire

Ex. A-3

 

 

EXHIBIT B

FORM OF ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the Effective
Date set forth below and is entered into by and between [Insert name of Assignor] (the “Assignor”)
and [Insert name of Assignee] (the “Assignee”). Capitalized terms used but not defined herein
shall have the meanings given to them in the ABL Credit Agreement identified below (as amended,
amended and restated supplemented or otherwise modified from time to time, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and
Conditions set forth in Annex I attached hereto are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth herein in full.

     For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit,
guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii)
above being referred to herein collectively as the “Assigned Interest”). Such sale and assignment
is without recourse to the Assignor and, except as expressly provided in this Assignment and
Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1. Assignor:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	2. Assignee:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 	 	[and is an Affiliate/Approved Fund of [identify Lender]2]
	 
	 	 	 	 
	 	 	[International Truck and Engine Corporation]
	 	 	[IC Corporation]
	 	 	[SST Truck Company LP]
	3. Borrower:	 	[IC of Oklahoma, LLC]

[International Diesel of Alabama, LLC]
	4. Administrative Agent:	 	Credit Suisse, as administrative agent under the Credit Agreement.

 

			
	2	Select as applicable

Form of ITEC ABL Assignment and Assumption

Ex. B-1

 

	 	 	 
	5. Credit Agreement:

	 	The ABL Credit Agreement dated as of June 15,
2007, among, inter alia, International
Truck and Engine Corporation, a Delaware
corporation (“ITEC”), IC Corporation, an
Arkansas corporation (“IC”), SST Truck Company
LP, a Delaware limited partnership (“SST”), IC
of Oklahoma, LLC, a Delaware limited liability
company (“ICO”), International Diesel of
Alabama, LLC, a Delaware limited liability
company (“IDA” and, together with ITEC, IC, SST
and ICO, each a “Borrower” and collectively,
the “Borrowers”), the Lenders from time to time
party hereto (the “Lenders”), Credit Suisse, as
administrative agent for the Lenders (“Credit
Suisse” or, together with any successor
administrative agent appointed pursuant hereto,
in such capacity, the “Administrative Agent”)
and Bank of America, N.A., as collateral agent
for the Lenders (“BofA” or, together with any
successor collateral agent appointed pursuant
hereto, in such capacity, the “Collateral
Agent” and, together with the Administrative
Agent, the “Agents”).
	 
	 	 
	6. Assigned Interest
	 	 

	 	 	 	 	 	 	 	 	 
	Aggregate Amount of	 	Amount of	 	Percentage Assigned of
	Commitment/Loans	 	Commitment/Loans Assigned	 	Commitment/Loans3
	$
	 	$	 	 	 	 	%	 
	$
	 	$	 	 	 	 	%	 
	$
	 	$	 	 	 	 	%	 

Effective
Date:___  ___, 20___ [TO BE INSERTED BY THE ADMINISTRATIVE AGENT AND WHICH SHALL BE
THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

The terms set forth in this Assignment and Assumption are hereby agreed to:

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	 	 
	 	 	 
	 	 	 
	 

 

			
	3	Set forth, to at least [9] decimals, as a percentage of the Commitment/Loans of
all Lenders thereunder.

Form of ITEC ABL Assignment and Assumption

Ex. B-2

 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Consented to and Accepted:

CREDIT SUISSE, as Administrative Agent, Swingline

Lender and Issuing Bank

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name: 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[ISSUING BANK], as Issuing Bank

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	Consented to:

INTERNATIONAL TRUCK AND ENGINE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of ITEC ABL Assignment and Assumption

Ex. B-3

 

ANNEX 1

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

          1.1 Assignor. The Assignor (a) represents and warrants that (i) it is the legal and
beneficial owner of the Assigned Interest, (ii) the Assigned Interest is free and clear of any
lien, encumbrance or other adverse claim, (iii) its Commitment, and the outstanding balances of its
Revolving Loans, in each case without giving effect to assignments thereof which have not become
effective, are as set forth herein, and (iv) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and Assumption and to consummate the
transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any
statements, warranties or representations made in or in connection with the Credit Agreement or any
other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial
condition of the Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in
respect of any Loan Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective obligations under any
Loan Document.

          1.2 Assignee. The Assignee (a) represents and warrants that (i) it is an Eligible Assignee
and has full power and authority, and has taken all action necessary, to execute and deliver this
Assignment and Assumption and to consummate the transactions contemplated hereby and to become a
Lender under the Credit Agreement, (ii) it satisfies the requirements, if any, specified in the
Credit Agreement that are required to be satisfied by it in order to acquire the Assigned Interest
and become a Lender, (iii) from and after the Effective Date, it shall be bound by the provisions
of the Credit Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall
have the obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement,
together with copies of the most recent financial statements referred to in Section 3.08 or
delivered pursuant to Section 5.01 thereof, as applicable, 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 Assumption and to purchase the Assigned Interest on the basis of which it has made
such analysis and decision independently and without reliance on any Agent or any other Lender, and
(v) if it is a Foreign Lender, attached to the Assignment and Assumption is any documentation
required to be delivered by it pursuant to the terms of the Credit Agreement, duly completed and
executed by the Assignee; and (b) agrees that (i) it will, independently and without reliance on
any Agent, the 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 Loan Documents, (ii) it appoints and authorizes the Agents to take such
action on its behalf and to exercise such powers under the Credit Agreement as are delegated to the
Agents, by the terms thereof, together with such powers as are reasonably incidental thereto, and
(iii) it will perform in accordance with their terms all of the obligations which by the terms of
the Loan Documents are required to be performed by it as a Lender.

          2. Payments. From and after the Effective Date, the Administrative Agent shall make all
payments in respect of the Assigned Interest (including payments of principal, interest,

Form of ITEC ABL Assignment and Assumption

Ex. B-4

 

fees and other amounts) to the Assignor for amounts which have accrued to but excluding the Effective Date and to the Assignee for amounts which have
accrued from and after the Effective Date.

          3. General Provisions. This Assignment and Assumption shall be binding upon, and inure to the benefit of, the parties hereto and their respective permitted
successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one instrument.
Delivery of an executed counterpart of a signature page of this Assignment and Assumption by facsimile shall be effective as delivery of a manually
executed counterpart of this Assignment and Assumption. This Assignment and Assumption shall be construed in accordance with and governed by the laws of
the State of New York.

Form of ITEC ABL Assignment and Assumption

Ex. B-5

 

Exhibit C

Borrowing Certificate

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	International Truck and Engine Corporation	 	Raw	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Used	 	Grand
	Report #: xx Report Date: x/xx/xx	 	Material	 	Parts	 	WIP	 	Red Tag	 	Sold Inv.	 	FG’s	 	Trucks	 	Total
	 
	Gross (per perpetuals) (in $000’s)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Ineligible
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Eligible Inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Advance Rate (lesser of 65% or 85% NOLV)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Available
	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Less:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Red Tag in Excess of $20MM
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Used Trucks in Excess of $100MM
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Reserve for A/P Contra (Applies to Sold
& Used Trucks)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Rent Reserve (3 mo’s)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Availability before Line Limit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 
	Liquidity Block (from collateral)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Suppressed Availability -Net of Block-
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Availability Net of Suppressed
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Liquidity Block (from availability)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Availability
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Appraised NOLV
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NOLV @ 85%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ineligible Categories:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Obsolete and Surplus
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Book Std to Actual Writedown (LCM)
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Returnable Containers
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Perpetual to GL Overstatements
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non-Conforming/Major Repair/Return
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Ineligible
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

The foregoing information is delivered to Bank of America Business Capital in accordance with
the Security Agreement (as may be amended, amended and restated, supplemented or otherwise modified
from time to time, the “Security Agreement”), dated as of June 15, 2007, among International Truck
and Engine Corporation, a Delaware corporation (the “Administrative Borrower”), IC Corporation, an
Arkansas corporation (“IC”), SST Truck Company LP, a Delaware limited partnership (“SST”), IC of
Oklahoma, LLC, a Delaware limited liability company (“IC OK”), International Diesel of Alabama,
LLC, a Delaware limited liability company (“IDA”), Bank of America, N.A., as collateral agent (the
“Collateral Agent”) and Credit Suisse, as administrative agent (the “Administrative Agent”), and in
accordance with the ABL Credit Agreement (as may be amended, amended and restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), dated as of June 15, 2007, among,
inter alia, the Administrative Borrower, IC, SST, IC OK, IDA, the Lenders (as defined therein), the
Administrative Agent and the Collateral Agent.

Dated:                                        

I hereby certify, solely on behalf of the Administrative Borrower and not in my
individual capacity that the information contained herein is true and correct as
of the dates shown herein. Nothing contained herein shall constitute a waiver,
modification, or limitation of any of the terms or conditions set forth in the
referenced Security Agreement or the referenced Credit Agreement.

	 	 	 	 	 	 	 
	 

	 	Prepared by:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Date:	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Approved by:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Date:	 	 
	 	 	 	 	 

 

 

Availability Detail

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	A	 	B	 	C	 	D	 	E	 	F	 	G	 	H	 	I	 	J	 	K	 	L
	1	 	NAVISTAR - ITEC AVAILABILITY @ ______, 20__
	 	 	 	 	 	 	 	 	 	 	 	 	Parts	 	 	 	 	 	 	 	 	 	Truck - SST	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Used Truck	 	Distribution	 	Trk Plant - IC	 	Trk Plant - IC	 	Truck Garland,	 	Truck - ITEC	 	Sold Inventory	 	Engine -	 	Engine -	 	Engine - Melrose
	2	 	(In $000’s)	 	Grand Total	 	Centers (UTC)	 	Centers (PDC)	 	Corp Conway, AK	 	Corp Tulsa, OK	 	TX	 	Springfield, OH	 	(Corp Books)	 	Huntsville, AL	 	Indianapolis, IN	 	Park, IL
	 
	3	 	Raw Material Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	Perpetual Value @__ , 20__
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	5	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6	 	Less Ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7	 	Returnable Containers (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	8	 	Standard Cost Resets (Cost Test)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	9	 	Non Conforming Inventory (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	10	 	Returns/Teardowns (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	11	 	Service Parts (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	12	 	Major Repair Items (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	13	 	Consigned Inv (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	14	 	DSW/NON — Lost Material Warehouses (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	15	 	RTV — Return to Vendor Warehouse (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	16	 	Obsolete & Surplus Calculations (GL & Actual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	17	 	Book Std to Actual Cost Writedown -LCM (GL)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	18	 	Inventory Located in Dubai, UAE (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	19	 	Book to Physical/Inv Corrections Reserve (GL)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	20	 	Inventory Revluation Contra (GL)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	21	 	Perpetual to GL overstatement
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	22	 	Total Ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	23	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	24	 	Net Eligible RM Inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	25	 	Advance Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	26	 	RM Inventory Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	27	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	28	 	Work In Process Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	29	 	Perpetual Value @__ , 20__
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	30	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	31	 	Less Ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	32	 	Obsolescence, Shrink & Surplus Reserve (GL)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	33	 	Book Std to Actual Cost Writedown -LCM (GL)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 
	34	 	Perpetual to GL overstatement
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	35	 	Total Ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	36	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	37	 	Net Eligible WIP Inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	38	 	Advance Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	39	 	WIP Inventory Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	40	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	41	 	Red Tag Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	42	 	Perpetual Value @__ , 20__
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	43	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	44	 	Less Ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	45	 	None
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	46	 	Total Ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	47	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	48	 	Net Eligible WIP Inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	49	 	Advance Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	50	 	Red Tag Inventory Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	51	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	52	 	Finished Goods Inventory & Truck Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	53	 	Perpetual Value @__ , 20__
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	54	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	55	 	Less Ineligibles:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	56	 	Returned Engines (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	57	 	Major Repair Items (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	58	 	Demo Unit Trucks (perpetual)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	59	 	Trucks — Orders Cancelled — Stock Unit by Order (per
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	60	 	Trucks — Sold to Canadian Customers (perpetual)
	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 
	61	 	Obsolescence, Shrink & Surplus Reserve (GL)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	62	 	Book Std to Actual Cost Writedown -LCM (GL)
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	63	 	Repossessed Trucks (perpetual)
	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	64	 	Perpetual to GL overstatement
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	65	 	Total Ineligibles
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	66	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	67	 	Net Eligible FG Inventory
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	68	 	Advance Rate
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	69	 	FG & Truck Inventory Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 
	70	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	71	 	Grand Total Gross Inventory Availability
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	 	 	 	 	 

 

 

EXHIBIT D

FORM OF PERFECTION CERTIFICATE

     Reference is hereby made to (i) the Security Agreement dated as of June 15, 2007 (as such
Security Agreement may be amended, amended and restated, supplemented or otherwise modified from
time to time, the “Security Agreement”), among International Truck and Engine Corporation,
a Delaware corporation (“ITEC”), IC Corporation, an Arkansas corporation (“IC”),
SST Truck Company LP, a Delaware limited partnership (“SST”), IC of Oklahoma, LLC, a
Delaware limited liability company (“ICO”), International Diesel of Alabama, LLC, a
Delaware limited liability company (“IDA”, and together with ITEC, IC, SST and ICO, the
“Borrowers”), Bank of America, N.A. (“BofA” and, in its capacity as collateral
agent for the Lenders (as defined below), the “Collateral Agent”), and Credit Suisse
(“CS”) and, in its capacity as administrative agent for the Lenders (as defined below), the
“Administrative Agent”, and together with the Collateral Agent, the “Agents”); and
(ii) the ABL Credit Agreement dated as of June 15, 2007 (as such ABL Credit Agreement may be
amended, amended and restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), among, inter alia, ITEC, IC, SST, ICO, IDA, each Lender party thereto
from time to time (the “Lenders”), the Administrative Agent and the Collateral Agent.
Capitalized terms used herein and not otherwise defined have the respective meanings assigned in
the Security Agreement. 

     Each of the undersigned hereby certifies, solely in such person’s capacity
as an officer and not individually, to the Collateral Agent as follows as of the date hereof:

     1. Names. (a) The exact legal name of each of Borrower, as such name appears in its
respective certificate of incorporation or certificate of formation, is as set forth in
Schedule 1(a) hereto. Each Borrower is (i) the type of entity disclosed next to its name
in Schedule 1(a) and (ii) a registered organization except to the extent otherwise
disclosed in Schedule 1(a) . Also set forth in Schedule 1(a) is the respective
organizational identification number, of each Borrower that is a registered organization, the
Federal Taxpayer Identification Number of each Borrower and the state of formation of each
Borrower.

     (b) Set forth in Schedule 1(b) hereto is each other corporate or organizational
name (if any) that each Borrower has had [On the Closing Date: in the past year] [Subsequent to
the Closing Date: since the date of its last Perfection Certificate delivered to the Collateral
Agent], together with the date of the relevant name change, and attached to such schedule are all
amended certificates of incorporation or certificates of formation and any attachments thereto
filed with the relevant state authority or other related corporate documents.

     (c) Set forth in
Schedule 1(c) hereto is a list of any other business or organization to which any Borrower
became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction
of organization or otherwise, [On the Closing Date: in the past year] [Subsequent to the Closing
Date: since the date of its last Perfection Certificate delivered to the Collateral Agent] and
attached to such schedule are all certificates of merger and any attachments thereto filed by any
Borrower with the relevant state authority. Also set forth in Schedule 1(c) is the
information required by Section 1 of this certificate for any other business or organization to
which ITEC, IC, SST, ICO and IDA became the successor by merger, consolidation, acquisition, change
in form, nature or jurisdiction of organization or otherwise, [On the Closing Date: in the past
year] [Subsequent to the Closing Date: since the date of its last Perfection Certificate delivered
to the Collateral Agent] and attached to such schedule are all related certificates of merger and
any attachments thereto filed with the relevant state authority.

Form of ITEC ABL Perfection Certificate

Ex. D - 1

 

2. Current Locations. (a) The chief executive office of each Borrower is located at
the respective address for each set forth in Schedule 2(a) hereto.

     (b) Attached hereto as
Schedule 2(b) hereto is a list that includes all locations (other than locations where
Collateral is stored for repair) where each Borrower maintains any material books or records
relating to any Collateral.

     (c) Set forth in Schedule 2(c) hereto are all other locations
where each Borrower maintains any of the Collateral consisting of inventory not identified above
(with an aggregate value in excess of $5.0 million at any one location).

     (d) Set forth in
Schedule 2(d) hereto are the names and addresses of all persons or entities, other than
the Borrowers, such as lessees, consignees, warehousemen or purchasers of chattel paper, which have
possession of any of the Collateral consisting of Instruments or Chattel Paper (with an aggregate
value in excess of $1.0 million at any one location) or Inventory (with an aggregate value in
excess of $5.0 million at any one location).

3. Good Standing. Attached hereto as Schedule 3 are all of the good standing
certificates of each of the Borrowers dated within 45 days of the date hereof from the relevant
state authority.

4. File Search Reports. The file search reports and financing statements and other filings
attached hereto as Schedule 4 include the reports of file searches conducted within 45 days
of the date hereof by the Borrowers, and related copies of each financing statement or other filing
identified in such file search reports from the applicable Uniform Commercial Code filing offices
(a) in each jurisdiction identified in Section 1(a) or Section 2 with respect to each legal name
set forth in Section 1, and (b) in each jurisdiction described in Schedule 1(c) relating
to any of the transactions described in Schedule 1(c) with respect to each legal name of
the person or entity from which such Borrower purchased or otherwise acquired any of the Collateral
or merged or consolidated with or acquired (except to the extent provided to the Collateral Agent
at the time of such merger, consolidation or acquisition).

5. UCC Filings. (a) Attached hereto as Schedule 5(a) are copies of
UCC-1 financing statements containing the indications of the Collateral, which are to be
filed in the filing offices in the jurisdictions identified in Schedule 6 hereto.

     (b) Attached as Schedule 5(b) are copies of the UCC-3 financing statement amendments,
which are to be filed in the filing offices in the jurisdictions identified in Schedule
6 hereto.

6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule setting forth,
with respect to the filings described in Section 5 above, each filing and the filing office in
which such filing is to be made.

7. Pledged Accounts. Attached hereto as Schedule 7 is a true and complete list of
all Pledged Accounts (as defined in the Security Agreement) maintained by the Borrowers.

8. Counterparts. This Perfection Certificate may be executed in two or more
counterparts, each of which shall constitute an original but all of which, when taken
together, shall constitute but one Perfection Certificate. Delivery of a counterpart by
facsimile or pdf electronic transmission shall constitute delivery of an original.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

Form of ITEC ABL Perfection Certificate

Ex. D - 2

 

     IN WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of this 15th
day of June, 2007.

	 	 	 	 	 
	 	INTERNATIONAL TRUCK AND ENGINE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	IC CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SST TRUCK COMPANY LP

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	IC OF OKLAHOMA, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INTERNATIONAL DIESEL OF ALABAMA, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of ITEC ABL Perfection Certificate

 

 

Schedule 1(a)

Exact legal name of each Borrower, as such name appears in its respective certificate of incorporation or

certificate of formation, type of entity, organizational identification number, Federal Taxpayer

Identification Number and the state of formation

Form
of ITEC ABL Perfection Certificate

Ex. D - 4

 

Schedule 1(b)

Corporate or organizational name that each Borrower has had [On the Closing Date: in the past year]

[Subsequent to the Closing Date: since the date of its last Perfection Certificate delivered to the Collateral

Agent], together with the date of the relevant change

Form of ITEC ABL Perfection Certificate

Ex. D - 5

 

Schedule 1(c)

List of all other names used by each Borrower, or any other business or organization to which any

Borrower became the successor by merger, consolidation or otherwise, [On the Closing Date: in the past

year] [Subsequent to the Closing Date: since the date of its last Perfection Certificate delivered to the

Collateral Agent]

Form of ITEC ABL Perfection Certificate

Ex. D - 6

 

Schedule 2(a)

Chief Executive Offices of each Borrower

Form of ITEC ABL Perfection Certificate

Ex. D - 7

 

Schedule 2(b)

Locations of material books or records relating to any Collateral

Form of ITEC ABL Perfection Certificate

Ex. D - 8

 

Schedule 2(c)

All other locations where the Borrowers maintain Collateral with an aggregate value in excess of $5.0

million at any one location

Form of ITEC ABL Perfection Certificate

Ex. D - 9

 

Schedule 2(d)

Details of all persons other than the Borrowers in possession or intended to have possession of any

Collateral consisting of Instruments or Chattel Paper (with an aggregate value in excess of $1.0 million at

any one location) or Inventory (with an aggregate value in excess of $5.0 million at any one location)

Form of ITEC ABL Perfection Certificate

Ex. D - 10

 

Schedule 3

Good standing certificates of each Borrower

Form of ITEC ABL Perfection Certificate

Ex. D - 11

 

Schedule 4

File search reports, financing statements and other filings

Form of ITEC ABL Perfection Certificate

Ex. D - 12

 

Schedule 5(a)

UCC-1 financing statements

Form of ITEC ABL Perfection Certificate

Ex. D - 13

 

Schedule 5(b)

UCC-3 financing statement amendments

Form of ITEC ABL Perfection Certificate

Ex. D - 14

 

Schedule 6

Filings and the relevant Filing Office

Form of ITEC ABL Perfection Certificate

Ex. D - 15

 

Schedule 7

Pledged Accounts

Form of ITEC ABL Perfection Certificate

Ex. D - 16

 

EXHIBIT E

FORM OF LETTER OF CREDIT REQUEST

[Applicable Issuing Bank],1

as Issuing Bank

			
	Attention:	 	[Name]
[Address]
 Fax: [•]

			
	with a copy to:	 	Credit Suisse,
as Administrative Agent for the Lenders referred to below

			
	Attention:	 	Agency Group
Eleven Madison Avenue 
New York, NY 10010
Fax: (212) 325-8304

[Date]

Ladies and Gentlemen:

     We hereby request that [•]2, as an Issuing Bank, in its individual capacity, issue
a [Standby][Commercial] Letter of Credit on [•]3, which Letter of Credit shall be
denominated in United States Dollars, shall be in the aggregate amount of [•]4 and shall
be for the account of [•]5. For the purposes of this Letter of Credit Request, unless
otherwise defined herein, all capitalized terms used herein and defined in the ABL Credit Agreement
dated as of June 15, 2007 (as amended, amended and restated, supplemented or otherwise modified
from time to time, the “Credit
Agreement”), among, inter alia, International Truck and Engine
Corporation, a Delaware corporation (“ITEC”), IC Corporation, an Arkansas corporation
(“IC”), SST Truck Company LP, a Delaware limited partnership (“SST”), IC of
Oklahoma, LLC, a Delaware limited liability company (“ICO”), International Diesel of
Alabama, LLC (“IDA” and, together with ITEC, IC, SST and ICO, each a “Borrower” and
collectively, the “Borrowers”), the Lenders from time to time party hereto (the
“Lenders”), Credit Suisse, as administrative agent for the Lenders (“Credit Suisse”
or, together with any successor administrative agent appointed pursuant hereto, in such capacity,
the “Administrative Agent”) and Bank of America, N.A., as collateral agent for the Lenders
(“BofA” or, together with any successor collateral agent appointed pursuant hereto, in such
capacity, the “Collateral Agent” and, together with the Administrative Agent, the
“Agents”), shall have the respective meaning assigned to such terms in

 

			
	1	 	Insert name and address of the applicable Issuing Bank.
	 
	2	 	Insert name of the applicable Issuing Bank.
	 
	3	 	Insert date of issuance, which must be a Business Day.
	 
	4	 	Insert aggregate initial amount of the Letter of Credit.
	 
	5	 	Insert name of account party, which must be the Borrower or, so long as the Borrower
is a joint and several co-applicant, a Subsidiary of the Borrower.

Form of ITEC ABL Letter of Credit Request

Ex. E-1

 

the Credit Agreement. The beneficiary of the requested Letter of Credit is [l]6,
and such Letter of Credit will have a stated expiration date of [l]7.

 

			
	6	 	Insert name and address of beneficiary.
	 
	7	 	Date may not be later than the date referred to in Section 2.06(c) of the Credit
Agreement.

Form of ITEC ABL Letter of Credit Request

Ex. E-2

 

	 	 	 	 	 
	 	INTERNATIONAL TRUCK AND ENGINE 

CORPORATION 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of ITEC ABL Letter of Credit Request

Ex. E-3

 

EXHIBIT F

FORM OF BORROWING REQUEST

Credit Suisse,

as Administrative Agent for the Lenders referred to below

Eleven Madison Avenue

New York, NY 10010

Attention: Agency Group

[l], 200[l]1

Ladies and Gentlemen:

     Reference is made to the ABL Credit Agreement dated as of June 15, 2007, among, inter
alia, International Truck and Engine Corporation, a Delaware corporation (“ITEC”), IC Corporation,
an Arkansas corporation (“IC”), SST Truck Company LP, a Delaware limited partnership (“SST”), IC of
Oklahoma, LLC, a Delaware limited liability company (“ICO”), International Diesel of Alabama, LLC
(“IDA” and, together with ITEC, IC, SST and ICO, each a “Borrower” and collectively, the
“Borrowers”), the Lenders from time to time party hereto (the “Lenders”), Credit Suisse, as
administrative agent for the Lenders (“Credit Suisse” or, together with any successor
administrative agent appointed pursuant hereto, in such capacity, the “Administrative Agent”) and
Bank of America, N.A., as collateral agent for the Lenders (“BofA” or, together with any successor
collateral agent appointed pursuant hereto, in such capacity, the “Collateral Agent” and, together
with the Administrative Agent, the
“Agents”) (as amended, amended and restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”). Terms defined in the Credit Agreement are used herein with the same
meanings.

     The undersigned hereby gives you notice pursuant to Section 2.03 of the Credit Agreement that
it requests a Borrowing under the Credit Agreement, and in that
connection sets forth below the terms on which such Borrowing is requested to be made:

	 	 	 	 	 	 	 
	(A)

	 	Date of Borrowing	 	 	 	 
	 

	 	(which shall be a Business Day)
	 	 

	 	 
	 
	 	 	 	 	 	 
	(B)

	 	Principal Amount of Borrowing2	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	(C)

	 	Type of Borrowing3	 	 	 	 
	 

	 	 	 	 

	 	 

 

			
	1	 	Must be notified in writing or by telephone (with such telephonic notification to
be confirmed promptly in writing by hand delivery, facsimile or a
“pdf” electronic transmission) (i) in the case of a LIBOR Borrowing, not later than 2:00 p.m., New York City
time, three (3) Business Days (or, in the case of a LIBOR Borrowing to be made on the Closing
Date, two (2) Business Days) before the date of the proposed Borrowing or (ii) in the case of
an ABR Borrowing, not later than 11:00 a.m., New York City time, on the date of the proposed
Borrowing.
	 
	2	 	Not less than the minimum principal amount as indicated in Section 2.02(c) and in an
integral multiple as indicated therein.
	 
	3	 	Specify a LIBOR Borrowing or an ABR Borrowing.

Form of ITEC ABL Borrowing Request

Ex. F-1

 

	 	 	 	 	 	 	 
	(D)

	 	Interest Period and the last day
thereof (in the case of a LIBOR Borrowing)4	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	(E)

	 	Account Number and Location
	 	 

	 	 

	 	 	 	 	 
	 	[INTERNATIONAL TRUCK AND ENGINE CORPORATION]

[IC CORPORATION]

[SST TRUCK COMPANY LP]

[IC OF OKLAHOMA, LLC]

[INTERNATIONAL DIESEL OF OKLAHOMA, LLC]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

 

			
	4	 	The initial Interest Period applicable to a LIBOR Borrowing shall be subject to
the definition of “Interest Period”.

Form of ITEC ABL Borrowing Request

Ex. F-2

 

EXHIBIT G

FORM OF PROMISSORY NOTE

			
	 	 	 
	$[     ]
	 	New York, New York

[l], 200[l]

     FOR VALUE RECEIVED, the undersigned, INTERNATIONAL TRUCK AND ENGINE CORPORATION, a Delaware
corporation (the “Borrower”), hereby promises to pay to [     ] (the “Lender”) or its registered
assigns, at the office of Credit Suisse (the “Administrative Agent”) at [Eleven Madison Avenue, New
York, New York 10010], on the dates and in the amounts set forth in the ABL Credit Agreement dated
as of June 15, 2007 (as the same may be amended, amended and restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among International Truck and Engine
Corporation, a Delaware corporation (“ITEC”), IC Corporation, an Arkansas corporation (“IC”), SST
Truck Company, LP, a Delaware limited partnership (“SST”), IC of Oklahoma, LLC, a Delaware limited
liability company (“ICO”), International Diesel of Oklahoma, a Delaware limited liability company
(“IDA” and, together with ITEC, IC, SST and ICO, each a “Borrower” and collectively, the
“Borrowers”), the Lenders (as hereinafter defined) from time to time party hereto, Credit Suisse,
as administrative agent for the Lenders hereunder (“Credit Suisse” or, together with any successor
administrative agent appointed pursuant hereto, in such capacity, the “Administrative Agent”), Bank
of America, N.A., as collateral agent for the Lenders hereunder (“BofA” or, together with any
successor collateral agent appointed pursuant hereto, in such capacity, the “Collateral Agent”),
Banc of America Securities LLC (“BAS”) and JPMorgan Chase Bank, N.A. (“JPM Bank”), as
co-syndication agents (in such capacity, each a “Syndication Agent”), Credit Suisse Securities
(USA) LLC (“CS Securities”), BAS and J.P. Morgan Securities Inc. (“JPMS”), as joint lead
bookrunners (in such capacity, each a “Bookrunner”), CS Securities and BAS, as joint lead arrangers
(in such capacity, each an “Arranger”), and Wachovia Capital Finance Corporation (Central)
(“Wachovia”) and General Electric Capital Corporation (“GECC”) as co-documentation agents (in such
capacity, each a “Documentation Agent”), in lawful money of the United States of America in
immediately available funds, the aggregate unpaid principal amount of all Loans made by the Lender
to the Borrower pursuant to the Credit Agreement and to pay interest from the date of such Loans on
the principal amount thereof from time to time outstanding, in like funds, at said office, at the
rate or rates per annum and payable on the dates provided in the Credit Agreement. Terms used but
not defined herein shall have the meanings assigned to them in the Credit Agreement.

     The Borrower promises to pay interest, on demand, on any overdue principal and, to the
extent permitted by law, overdue interest from the due dates at a rate or rates provided in the
Credit Agreement.

     The Borrower hereby waives diligence, presentment, demand, protest and notice of any kind
whatsoever. The nonexercise by the holder hereof of any of its rights hereunder in any particular
instance shall not constitute a waiver thereof in that or any other instance.

     All borrowings evidenced by this promissory note and all payments and prepayments of the
principal hereof and interest hereon and the respective dates thereof shall be

Form of ITEC ABL Promissory Note

Ex. G-1

 

endorsed by the holder hereof on the schedules attached hereto and made a part hereof or on a
continuation thereof which shall be attached hereto and made a part hereof, or otherwise recorded
by such holder in its internal records; provided, however, that the failure of the holder hereof to
make such a notation or any error in such notation shall not affect the obligations of the Borrower
under this Note.

     This promissory note is one of the promissory notes referred to in the Credit Agreement that,
among other things, contains provisions for the acceleration of the maturity hereof upon the
happening of certain events, for optional and mandatory prepayment of the principal hereof prior to
the maturity hereof and for the amendment or waiver of certain provisions of the Credit Agreement,
all upon the terms and conditions therein specified. This promissory note is entitled to the
benefit of the Credit Agreement and is guaranteed and secured as provided therein and in the other
Loan Documents referred to in the Credit Agreement. THIS PROMISSORY NOTE SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

	 	 	 	 	 
	 	INTERNATIONAL TRUCK AND ENGINE 

CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of ITEC ABL Promissory Note

Ex. G-2

 

Schedule A to Note

LOANS, CONVERSIONS AND REPAYMENTS OF ABR LOANS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date
	 	Amount of ABR

Loans
	 	Amount Converted

to ABR Loans
	 	Amount of

Principal of ABR

Loans Repaid
	 	Amount of ABR

Loans Converted to

LIBO Rate Loans
	 	Unpaid Principal

Balance of ABR

Loans
	 	Notation Made By
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

Form of ITEC ABL Promissory Note

Ex. G-3

 

Schedule B to Note

LOANS, CONTINUATIONS, CONVERSIONS AND REPAYMENTS OF LIBO RATE LOANS

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Date
	 	Amount of LIBO

Rate Loans
	 	Amount Converted

to LIBO Rate

Loans
	 	Interest Period and

Adjusted LIBO

with Respect

Thereto
	 	Amount of

Principal of LIBO

Rate Loans Repaid
	 	Unpaid Principal

Balance of LIBO

Rate Loans
	 	Notation Made By
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

Form of ITEC ABL Promissory Note

Ex. G-4

 

EXHIBIT H

FORM OF SECURITY AGREEMENT

[Circulated Separately]

Form of ITEC ABL Security Agreement

Ex. H-1

 

EXECUTION COPY

 

SECURITY AGREEMENT

Dated as of June 15, 2007

Among

INTERNATIONAL TRUCK AND ENGINE CORPORATION,

IC CORPORATION,

SST TRUCK COMPANY LP,

IC OF OKLAHOMA, LLC,

and

INTERNATIONAL DIESEL OF ALABAMA, LLC

as Grantors,

CREDIT SUISSE,

as Administrative Agent

and

BANK OF AMERICA, N.A.,

as Collateral Agent

 

ITEC ABL Security Agreement

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	Article I DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. Terms Defined in Credit Agreement
	 	 	1	 
	 
	 	 	 	 
	Section 1.2. Terms Defined in UCC
	 	 	1	 
	 
	 	 	 	 
	Section 1.3. Definitions of Certain Terms Used Herein
	 	 	1	 
	 
	 	 	 	 
	Article II GRANT OF SECURITY INTEREST
	 	 	3	 
	 
	 	 	 	 
	Article III REPRESENTATIONS AND WARRANTIES
	 	 	4	 
	 
	 	 	 	 
	Section 3.1. Title, Perfection and Priority
	 	 	4	 
	 
	 	 	 	 
	Section 3.2. Pledged Accounts Information
	 	 	4	 
	 
	 	 	 	 
	Section 3.3. Accounts and Chattel Paper
	 	 	4	 
	 
	 	 	 	 
	Section 3.4. Inventory
	 	 	5	 
	 
	 	 	 	 
	Section 3.5. No Financing Statements, Security Agreements
	 	 	5	 
	 
	 	 	 	 
	Section 3.6. Pledged Collateral
	 	 	5	 
	 
	 	 	 	 
	Section 3.7. Perfection Certificate
	 	 	6	 
	 
	 	 	 	 
	Article IV COVENANTS
	 	 	6	 
	 
	 	 	 	 
	Section 4.1. General
	 	 	6	 
	 
	 	 	 	 
	Section 4.2. Receivables
	 	 	8	 
	 
	 	 	 	 
	Section 4.3. Inventory Count; Inventory Reporting System
	 	 	9	 
	 
	 	 	 	 
	Section 4.4. Delivery of Instruments, Chattel Paper and Documents
	 	 	9	 
	 
	 	 	 	 
	Section 4.5. Exercise of Rights in Pledged Collateral
	 	 	9	 
	 
	 	 	 	 
	Section 4.6. No Interference
	 	 	9	 
	 
	 	 	 	 
	Section 4.7. Insurance
	 	 	9	 
	 
	 	 	 	 
	Section 4.8. Collateral Access Agreement and Certain Payments
	 	 	10	 
	 
	 	 	 	 
	Article V REMEDIES
	 	 	10	 

ITEC ABL Security Agreement

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 5.1. Remedies
	 	 	10	 
	 
	 	 	 	 
	Section 5.2. Grantor’s Obligations Upon Default
	 	 	12	 
	 
	 	 	 	 
	Article VI ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY
	 	 	12	 
	 
	 	 	 	 
	Section 6.1. Account Verification
	 	 	12	 
	 
	 	 	 	 
	Section 6.2. Authorization for Secured Party to Take Certain Action
	 	 	12	 
	 
	 	 	 	 
	Section 6.3. PROXY
	 	 	13	 
	 
	 	 	 	 
	Section 6.4. NATURE OF APPOINTMENT; LIMITATION OF DUTY
	 	 	13	 
	 
	 	 	 	 
	Article VII GENERAL PROVISIONS
	 	 	14	 
	 
	 	 	 	 
	Section 7.1. Waivers
	 	 	14	 
	 
	 	 	 	 
	Section 7.2. Limitation on Collateral Agent’s and Secured Party’s Duty with Respect to the Collateral
	 	 	14	 
	 
	 	 	 	 
	Section 7.3. Compromises and Collection of Collateral
	 	 	15	 
	 
	 	 	 	 
	Section 7.4. Secured Party Performance of Debtor Obligations
	 	 	15	 
	 
	 	 	 	 
	Section 7.5. Specific Performance of Certain Covenants
	 	 	15	 
	 
	 	 	 	 
	Section 7.6. Dispositions Not Authorized
	 	 	16	 
	 
	 	 	 	 
	Section 7.7. No Waiver; Amendments; Cumulative Remedies
	 	 	16	 
	 
	 	 	 	 
	Section 7.8. Limitation by Law; Severability of Provisions
	 	 	16	 
	 
	 	 	 	 
	Section 7.9. Reinstatement
	 	 	16	 
	 
	 	 	 	 
	Section 7.10. Benefit of Agreement
	 	 	16	 
	 
	 	 	 	 
	Section 7.11. Survival of Representations
	 	 	17	 
	 
	 	 	 	 
	Section 7.12. Expenses
	 	 	17	 
	 
	 	 	 	 
	Section 7.13. Additional Borrowers
	 	 	17	 
	 
	 	 	 	 
	Section 7.14. Headings
	 	 	17	 
	 
	 	 	 	 
	Section 7.15. Termination or Release
	 	 	17	 
	 
	 	 	 	 
	Section 7.16. Entire Agreement
	 	 	18	 
	 
	 	 	 	 
	Section 7.17. CHOICE OF LAW
	 	 	18	 

ITEC ABL Security Agreement

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 7.18. CONSENT TO JURISDICTION
	 	 	18	 
	 
	 	 	 	 
	Section 7.19. WAIVER OF JURY TRIAL
	 	 	18	 
	 
	 	 	 	 
	Section 7.20. Indemnity
	 	 	18	 
	 
	 	 	 	 
	Section 7.21. Counterparts
	 	 	19	 
	 
	 	 	 	 
	Article VIII NOTICES
	 	 	19	 
	 
	 	 	 	 
	Section 8.1. Sending Notices
	 	 	19	 
	 
	 	 	 	 
	Section 8.2. Change in Address for Notices
	 	 	19	 
	 
	 	 	 	 
	Article IX THE AGENT
	 	 	19	 
	 
	 	 	 	 
	Section 9.1. The Collateral Agent
	 	 	19	 
	 
	 	 	 	 
	Schedules
	 	 	 	 
	 
	 	 	 	 
	Schedule 4.8  — Leased locations for Collateral Access Agreements
	 	 	 	 
	 
	 	 	 	 
	Exhibits
	 	 	 	 
	 
	 	 	 	 
	Exhibit A  — Offices in which financing statements and Security Agreements have been filed
	 	 	 	 
	Exhibit B  — Details of Pledged Accounts
	 	 	 	 
	Exhibit C  — Form of Amendment
	 	 	 	 
	Exhibit D  — Form of Perfection Certificate
	 	 	 	 
	Exhibit E  — Form of Supplement
	 	 	 	 

ITEC ABL Security Agreement

 

 

SECURITY AGREEMENT

          SECURITY AGREEMENT (as it may be amended, amended and restated, supplemented or otherwise
modified from time to time, this “Security Agreement”), dated as of June 15, 2007, among
INTERNATIONAL TRUCK AND ENGINE CORPORATION, a Delaware corporation (“ITEC” or the “Administrative
Borrower”), IC CORPORATION, an Arkansas corporation (“IC”), SST TRUCK COMPANY LP, a Delaware
limited partnership (“SST”), IC OF OKLAHOMA, LLC, a Delaware limited liability company (“ICO”),
INTERNATIONAL DIESEL OF ALABAMA, LLC, a Delaware limited liability company (“IDA”, and
together with ITEC, IC, SST and ICO, the “Borrowers”), BANK OF AMERICA, N.A. (“BofA”), as
collateral agent for the lenders party to the Credit Agreement referred to below (in such capacity,
the “Collateral Agent”), and CREDIT SUISSE, as administrative agent for the lenders party to the
Credit Agreement referred to below (in such capacity, the “Administrative Agent”, and together with
the Collateral Agent, the “Agents”).

PRELIMINARY STATEMENT

          Contemporaneously with their execution and delivery of this Security Agreement, the Grantors
and the Agents are entering into the ABL Credit Agreement, dated as of the date hereof, among,
inter alia, the Borrowers, the Lenders (as defined therein) and the Agents, which ABL Credit
Agreement provides for an inventory-secured, asset-based revolving credit facility in an aggregate
principal amount at any time outstanding not in excess of $200,000,000 (such ABL Credit Agreement,
as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”). The Borrowers are entering into this Security Agreement in order to induce the Lenders
to enter into and extend credit to the Borrowers under the Credit Agreement, and to secure the
Secured Obligations (as defined in the Credit Agreement) created thereunder.

          ACCORDINGLY, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1. Terms Defined in Credit Agreement. All capitalized terms used herein
and not otherwise defined shall have the meanings ascribed to them in the Credit Agreement.

     Section 1.2. Terms Defined in UCC. Terms defined in the UCC that are not otherwise
defined in this Security Agreement or the Credit Agreement are used herein as defined in the UCC.

     Section 1.3. Definitions of Certain Terms Used Herein. As used in this Security
Agreement, in addition to the terms defined in the preamble and Preliminary Statement above, the
following terms shall have the following meanings:

          “Account” shall have the meaning set forth in Article 9 of the UCC.

          “Article” means a numbered article of this Security Agreement, unless another document is
specifically referenced.

          “Chattel Paper” shall have the meaning set forth in Article 9 of the UCC.

          “Collateral” shall have the meaning set forth in Article II hereof.

ITEC ABL Security Agreement

 

 

     “Collateral Access Agreement” means a landlord waiver or other agreement, in such form as
shall be reasonably satisfactory to the Collateral Agent and the Borrowers, between the Collateral
Agent and any third party (including any bailee, consignee, customs broker, or other similar
Person) in possession of any Collateral or any landlord of any premises where any Collateral is
located, as such landlord waiver or other agreement may be amended, restated, or otherwise modified
from time to time.

     “Collateral Report” means any certificate (including, without limitation, any Borrowing Base
Certificate, Compliance Certificate or Perfection Certificate), report or other document delivered
by any Grantor to any Agent with respect to the Collateral pursuant to any Loan Document.

     “Control” shall have the meaning set forth in Article 8 or, if applicable, in Section 9-104,
9-105, 9-106 or 9-107 of Article 9 of the UCC.

     “Deposit Account” shall have the meaning set forth in Article 9 of the UCC.

     “Document” shall have the meaning set forth in Article 9 of the UCC.

     “Exhibit” refers to a specific exhibit to this Security Agreement, unless another document is
specifically referenced.

     “Export Trucks” means any trucks that are manufactured outside of the United States and sold
to any Borrower for the purpose of resale by such Borrower to customers, distributors or dealers
located outside of the United States.

     “General Intangible” shall have the meaning set forth in Article 9 of the UCC.

     “Goods” shall have the meaning set forth in Article 9 of the UCC.

     “Grantors” means each of the Borrowers, including any additional Borrowers which may become
parties to the Credit Agreement, pursuant to the terms thereof.

     “Instrument” shall have the meaning set forth in Article 9 of the UCC.

     “Inventory” shall have the meaning set forth in Article 9 of the UCC, provided that Inventory
consisting of Export Trucks shall not be included.

     “Investment Property” shall have the meaning set forth in Article 9 of the UCC.

     “MIA Receivables” means any receivables generated from the sale of Collateral and required to
be sold pursuant to, and in accordance with, the terms of any Master Intercompany Agreement.

     “Payment Intangible” shall have the meaning set forth in Article 9 of the UCC.

     “Perfection Certificate” means a certificate, substantially in the form of Exhibit D hereto,
completed and supplemented with the schedules and attachments contemplated thereby, and duly
executed by a Responsible Officer of each Borrower.

     “Pledged Accounts” means, collectively, the LC Collateral Account, the Blocked Cash Account
and the Collection Account.

ITEC ABL Security Agreement

 

 

          “Pledged Collateral” means all Instruments, Securities and other Investment Property
owned by any Grantor, whether or not physically delivered to the Collateral Agent pursuant to this
Security Agreement.

          “Receivables” means the Accounts, Chattel Paper, Documents, Investment Property, Instruments
and any other rights or claims to receive money that are General Intangibles arising from the sale
or other disposition of Inventory, or that are otherwise derived from the sale or other disposition
of Inventory and are included as Collateral.

          “Secured Parties” means (a) the Lenders, (b) each Agent, (c) each Issuing Bank, (d) the
Swingline Lender, (e) the beneficiaries of each indemnification obligations undertaken by any
Borrower under any Loan Document, and (f) the successors and permitted assigns of each of the
foregoing.

          “Security” shall have the meaning set forth in Article 8 of the UCC.

          “UCC” means the Uniform Commercial Code as in effect from time to time in the State
of New York.

          The foregoing definitions shall be equally applicable to both the singular and plural forms of
the defined terms.

ARTICLE II

GRANT OF SECURITY INTEREST

          (a) Each Grantor hereby pledges and grants to the Collateral Agent, on behalf of and
for the ratable benefit of the Secured Parties, a security interest in all of its right, title and
interest in, to and under all personal property and other assets of the Grantors described below,
whether now owned by or owing to, or hereafter acquired by or arising in favor of such Grantor, and
regardless of where located (subject to clause(b) of this Article II, all of which are collectively
referred to as the “Collateral”), including:

	 	(i)	 	all Inventory;
	 
	 	(ii)	 	all Receivables;
	 
	 	(iii)	 	all Payment Intangibles, Accounts, cash, Documents and
Instruments, in each case arising from the sale of MIA Receivables;
	 
	 	(iv)	 	all Pledged Accounts;
	 
	 	(v)	 	all Investment Property held in any Pledged Account;
	 
	 	(vi)	 	all cash or Cash Equivalents held in any Pledged Account; and
	 
	 	(vii)	 	all accessions to, substitutions for and replacements, proceeds,
insurance proceeds and products of the foregoing, together with all books and
records, customer lists, credit files, computer files, programs, printouts and
other computer materials and records related thereto and any General Intangibles
at any time evidencing or relating to any of the foregoing

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to secure the payment and performance of the Secured Obligations.

          (b) Notwithstanding the foregoing or anything herein to the contrary, automatically
upon the sale of any Receivables pursuant to a Master Intercompany Agreement, any and all security
interests in such Receivables granted hereunder shall be immediately released and the term
“Collateral” as used herein shall no longer include any such Receivable; provided, that such
release shall not be in derogation or limitation of any rights in any other Collateral, including
Collateral described in clause (a)(iii) above (and such release shall be deemed to be in exchange
for Collateral described in clause (a)(iii) above).

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          The Grantors, jointly and severally, represent and warrant to the Agents, for the benefit of
the Secured Parties, that:

     Section 3.1. Title, Perfection and Priority. Each Grantor has good and valid rights
in or the power to transfer the Collateral and title to the Collateral with respect to which it has
purported to grant a security interest hereunder, free and clear of all Liens except for Liens
permitted under Section 4.1(e), and has full power and authority to grant to the Collateral Agent
the security interest in such Collateral pursuant hereto. When financing statements have been
filed in the appropriate offices against such Grantor in the locations listed on Exhibit A hereto,
the Collateral Agent will have a fully perfected first priority security interest in that
Collateral in which a security interest may be perfected by filing under the Uniform Commercial
Code in effect in the applicable jurisdiction, subject only to Liens
permitted under Section 4.1(e).

     Section 3.2. Pledged Accounts Information. The names of the account banks, the
account numbers and the other details with respect to the Pledged Accounts are and will be
correctly stated, at the time furnished, on Exhibit B hereto (as amended from time to time).

     Section 3.3. Accounts and Chattel Paper.

          (a) As of the Closing Date, there is no Collateral consisting of Chattel Paper, and
all further references to Chattel Paper in this Section 3.3 shall be with respect to reporting
requirements occurring subsequent to the Closing Date.

          (b) Except as may be disclosed on the most recent Collateral Report, (i) all
Accounts represent bona fide sales of Inventory or rendering of services to Account Debtors in the
ordinary course of the applicable Grantor’s business and, unless the procedures set forth in
Section 4.1(c)(ii) have been complied with, are not evidenced by a judgment, Instrument or
Chattel Paper; (ii) there are no setoffs, claims or disputes existing or asserted with respect to
any Accounts referred to in such Collateral Report, except any setoff, claim or dispute occurring
in the ordinary course of business or except to the extent notice has been provided pursuant to
Section 4.2(c), and no Grantor has made any agreement with any Account Debtor with respect to any
material Account for any extension of time for the payment thereof, any compromise or settlement
for less than the full amount thereof, any release of any Account Debtor from liability therefor,
or any deduction therefrom except a discount or allowance allowed by a Grantor in the ordinary
course of its business for prompt payment; and (iii) to the knowledge of such Grantor, there are no
facts, events or occurrences that in any way impair the validity or enforceability (except as
enforceability may be limited by 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) thereof or could reasonably
be expected to reduce the

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amount payable thereunder as shown on such Grantor’s books and records, with respect to any
material portion of the Collateral.

          (c) In addition, no payments have been or shall be made on any Accounts except, from
and after the date the Collection Account is established in accordance with Section 5.11 of the
Credit Agreement, payments delivered to the Collection Account or the Blocked Cash Account.

     Section 3.4. Inventory. With respect to any Inventory scheduled or listed on the
most recent Collateral Report as of the date of such Collateral Report, except as disclosed
therein: (a) no Inventory (other than Inventory in transit) is now, or shall at any time or times
hereafter be stored at any other location not set forth in the Perfection Certificate except as
permitted by Section 4.1(h), (b) the Grantors have good title to such Inventory and such Inventory
is not subject to any Lien or security interest or document whatsoever except for the Lien granted
to the Collateral Agent, for the benefit of the Secured Parties, and except for other Liens
permitted under Section 4.1(e), (c) such Inventory is Eligible Inventory, (d) such Inventory which
contains or bears any intellectual property rights licensed to any Borrower by any Person other
than a Borrower is not subject to any licensing, patent, royalty, trademark, trade name or
copyright agreements with any third parties that would, upon sale or other disposition of such
Inventory by the Collateral Agent in accordance with the terms hereof (i) infringe the rights of
such licensor, (ii) violate any contract with such licensor, or (iii) cause the Collateral Agent to
incur any liability with respect to payment of royalties other than royalties incurred pursuant to
sale of such Inventory under the current licensing agreement relating thereto and (e) the sale or
other disposition of such Inventory (other than Inventory that is not material) by the Collateral
Agent following the occurrence and during the continuance of an Event of Default shall not require
the consent of any Person and shall not constitute a breach or default under any contract or
agreement to which such Inventory is subject.

     Section 3.5. No Financing Statements, Security Agreements. No financing statement
or security agreement describing all or any portion of the Collateral that has not lapsed or been
terminated naming a Grantor as debtor has been filed or is of record in any jurisdiction except (a)
for financing statements or security agreements naming the Collateral Agent on behalf of the
Secured Parties as the secured party and (b) as permitted by
Section 4.1(e) and 4.1(f).

     Section 3.6. Pledged Collateral.

          (a) As of the date hereof, the Perfection Certificate sets forth a complete and
accurate list of all of the Pledged Collateral. As of the date hereof, each Grantor is the direct,
beneficial owner and holder of record of the Pledged Collateral listed in the Perfection
Certificate as being owned by it, free and clear of any Liens, except for the security interest
granted to the Collateral Agent for the ratable benefit of the Secured Parties hereunder and
nonconsensual Liens permitted under Section 4.1(e). Each Grantor further represents and warrants
that (i) each Grantor has provided all material relevant information to the Collateral Agent so
that the Collateral Agent may take steps to perfect its security interest therein as a General
Intangible, (ii) from and after the date the Collection Account is established in accordance with
Section 5.11 of the Credit Agreement, all Pledged Collateral held by a depository bank is covered
by a control agreement among the applicable Grantor, the depository bank and the Collateral Agent
pursuant to which the Collateral Agent has Control, and (iii) all Pledged Collateral that
represents Indebtedness owed to any Grantor to the best of such Grantor’s knowledge, has been duly
authorized, authenticated or issued and delivered by the issuer of such Indebtedness, is the legal,
valid and binding obligation of such issuer and such issuer is not in default thereunder.

          (b) (i) None of the Pledged Collateral is or will be subject to any contractual or
other restriction of any material nature that might prohibit, impair, delay or otherwise adversely
affect the

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pledge of such Pledged Collateral hereunder, or the exercise by the Collateral Agent of rights
and remedies hereunder; (ii) no material consent, approval, authorization, or other action by, and
no giving of notice, filing with, any governmental authority or any other Person is required for
the pledge by the Grantors of the Pledged Collateral pursuant to this Security Agreement or for the
execution, delivery and performance of this Security Agreement by the Grantors, or for the exercise
by the Collateral Agent of remedies in respect of the Pledged Collateral provided for pursuant to
this Security Agreement, 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 Borrowers and their subsidiaries in the ordinary course of
business and such filings as may be required under federal and state securities laws for purposes
of disclosure.

     Section 3.7. Perfection Certificate. The information set forth in the Perfection
Certificate delivered on the date hereof is correct and complete in all material respects as of the
date hereof.

ARTICLE IV

COVENANTS

     From the date hereof, and thereafter until this Security Agreement is terminated, each Grantor
agrees that:

     Section 4.1. General.

          (a) Collateral Records. Each Grantor will maintain complete and accurate books and
records as is consistent with its practices as of the date hereof in all material respects with
respect to the Collateral, and furnish to each Agent such reports required pursuant to the Credit
Agreement relating to the Collateral as such Agent shall from time to time reasonably
request, provided, however, that as to financial matters or matters based on financial
statements, the Agents and the Lenders hereby acknowledge that the existence of the matters set
forth in the Disclosure Filings and the results created by the existence thereof shall not be
deemed to constitute a misrepresentation hereunder and this provision is subject in all respects to
the provisions of the last sentence of Section 1.04 of the Credit Agreement.

          (b) Authorization to File Financing Statements; Ratification. Each Grantor hereby
authorizes either Agent to file, and if requested will deliver to the requesting Agent, all
financing statements and other documents and take such other actions as may from time to time be
reasonably requested by such Agent in order to maintain a first priority perfected security
interest in and, if applicable, Control (to the extent required by the terms hereof) of, the
Collateral. Any financing statement filed by any Agent may be filed in any filing office in any
appropriate Uniform Commercial Code jurisdiction and may (i) indicate the Collateral by any
description which reasonably approximates the description contained in this Security Agreement, and
(ii) contain any other information required by part 5 of Article 9 of the UCC for the sufficiency
or filing office acceptance of any financing statement or amendment, including whether the Grantor
is an organization, the type of organization and any organizational identification number issued to
the Grantor. Each Grantor also agrees to furnish any such information to either Agent promptly upon
reasonable request. Each Grantor also ratifies its authorization for each Agent to have filed in
any Uniform Commercial Code jurisdiction any initial financing statements or amendments thereto if
filed prior to the date hereof, upon reasonable approval of such financing statements by the
Administrative Borrower.

          (c) Further Assurances. (i) Each Grantor agrees to take any and all reasonable
actions necessary to defend title to the Collateral against all persons and to defend the security
interest of the Collateral Agent in the Collateral and the priority thereof against any Lien not
permitted under Section 4.1(e).

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               (ii) Each Grantor agrees that from time to time, at the expense of such Grantor, such
Grantor will promptly execute and deliver, or otherwise authenticate, all further instruments and
documents, and take all further action that the Collateral Agent may reasonably request, in order
to perfect and protect any pledge or security interest granted or purported to be granted by such
Grantor hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any Collateral of such Grantor. Without limiting the generality of the
foregoing, each Grantor will promptly with respect to Collateral of such Grantor: (1) at the
request of the Collateral Agent, mark conspicuously each Document included in Inventory, each
Chattel Paper included in Receivables, any other Documents and, at the request of the Collateral
Agent, each of its records pertaining to such Collateral with a legend, in form and substance
reasonably satisfactory to the Collateral Agent, indicating that such Document, Chattel Paper or
other Collateral is subject to the security interest granted hereby; (2) if any such Collateral
shall be evidenced by a promissory note or other instrument or Chattel Paper valued in excess of
$1,000,000, promptly deliver and pledge to the Collateral Agent hereunder such note or instrument
or Chattel Paper duly indorsed and accompanied by duly executed instruments of transfer or
assignment, all in form and substance reasonably satisfactory to the Collateral Agent; (3) file
such financing or continuation statements, or amendments thereto, and such other instruments or
notices, as may be necessary or desirable, or as the Collateral Agent may reasonably request, in
order to perfect and preserve the security interest granted or purported
to be granted by such Grantor hereunder; and (4) at the reasonable request of the Collateral Agent,
in the circumstances outlined in Section 5.01(e) of the Credit Agreement, promptly take all action
to ensure that the Collateral Agent’s security interest is noted on any certificate of title
related to any used truck Collateral which is evidenced by a certificate of title.

          (d) Disposition of Collateral. No Grantor will sell, lease, transfer or otherwise
dispose of the Collateral except for sales, leases, transfers and other dispositions of Inventory
in the ordinary course of business and other sales, leases, transfers and other dispositions
permitted under Section 6.05 of the Credit Agreement.

          (e)  Liens. No Grantor will create, incur, or suffer to exist any Lien on the
Collateral except Liens permitted by Section 6.02 of the Credit Agreement.

          (f) Other Financing Statements. No Grantor will authorize the filing of any
financing statement naming it as debtor covering all or any portion of the Collateral, except to
cover security interests as permitted by Section 4.1(e). Until the termination of this Security
Agreement pursuant to Section 7.15, each Grantor acknowledges that it is not authorized to file any
financing statement or amendment or termination statement with respect to any financing statement
naming the Collateral Agent as secured party without the prior written consent of the Agents,
subject to such Grantor’s rights under Section 9-509(d)(2) of the UCC.

          (g) Change of Name, Etc. Each Grantor agrees to furnish to the Collateral Agent
prompt written notice of any change in: (i) such Grantor’s name; (ii) the location of such
Grantor’s chief executive office or its principal place of business; (iii) such Grantor’s
organizational legal entity designation or jurisdiction of incorporation or formation; (iv) such
Grantor’s organizational identification number assigned to it by its jurisdiction of incorporation
or formation; or (v) the acquisition by such Grantor of any material property for which additional
filings or recordings are necessary to perfect and maintain the Collateral Agent’s security
interest therein (to the extent perfection of the security interest in such property is required by
the terms hereof). Each Grantor agrees not to effect or permit any change referred to in the
preceding sentence unless all filings have been made under the Uniform Commercial Code or other
applicable law that are required in order for the Collateral Agent to continue at all times
following such change to have a valid, legal and perfected, first priority security interest
(subject to Liens permitted under Section 4.1(e) that have priority by operation of applicable law)
in the Collateral for its benefit and the benefit of the other Secured Parties.

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          (h) Locations of Collateral. No Grantor will maintain any Collateral consisting of
Inventory the aggregate value of which, at cost, is $5,000,000 or more at any location other than
those locations listed in the Perfection Certificate or facilities purchased or leased in the
United States by any Grantor after the date hereof not in violation of the Credit Agreement,
unless, in the case of any U.S. location (other than a dealer or a location that is owned by a
Grantor and that is not subject to any mortgage) where any Collateral consisting of Inventory the
aggregate value of which, at cost, is $5,000,000 or more is located, such Grantor shall promptly
notify the Collateral Agent of such new location.

          (i) Compliance with Terms. Each Grantor will perform and comply in all material
respects with all obligations in respect of the Collateral and all material agreements relating to
the Collateral to which it is a party or by which it is bound, that would reasonably be expected to
have a Material Adverse Effect.

     Section 4.2. Receivables.

          (a) Certain Agreements on Receivables Collateral. Except to the extent that notice
has been provided as required by Section 4.2(c), no Grantor will make or agree to make any material
discount, credit, rebate or other reduction in the original amount owing on a Receivable comprising
Collateral or accept in satisfaction of a Receivable comprising Collateral less than the original
amount thereof, other than in the ordinary course of business; provided that during the continuance
of an Event of Default, after notice from the Collateral Agent, the Grantor will not make or agree
to make any discount, credit, rebate or other reduction in the original amount owing on a
Receivable comprising Collateral or accept in satisfaction of a Receivable comprising Collateral
less than the original amount thereof.

          (b) Collection of Receivables. Except as otherwise provided in this Security
Agreement, each Grantor will use commercially reasonable efforts to collect and enforce, in the
ordinary course of business, all amounts due or hereafter due to such Grantor under the Receivables
comprising Collateral.

          (c) Disclosure of Counterclaims on Receivables. If (other than in the ordinary
course of business) (i) any material discount, credit or agreement to make a rebate or to otherwise
reduce the amount owing on a material Receivable comprising Collateral exists or (ii) if, to the
knowledge of any Grantor, any material dispute, setoff, claim, counterclaim or defense exists or
has been asserted or threatened in writing with respect to a material Receivable comprising
Collateral, the Grantors will promptly disclose such fact to the Collateral Agent in writing.

          (d) Electronic Chattel Paper. If any Grantor at any time holds or acquires an
interest in any Electronic Chattel Paper or any “transferable record”, as that term is defined in
Section 201 of the Federal Electronic Signatures in Global and National Commerce Act (other than as
shall constitute MIA Receivables), or in Section 16 of the Uniform Electronic Transactions Act as
in effect in any relevant jurisdiction constituting Collateral, in each case with a value in excess
of $1,000,000, such Grantor shall promptly notify the Collateral Agent thereof and, at the request
of the Collateral Agent, shall take such action as the Collateral Agent may reasonably request to
vest in the Collateral Agent Control under UCC Section 9-105 of such Electronic Chattel Paper or
control (to the extent the meaning of “control” has not been clearly established under such
provisions, “control” in this paragraph (c) to have such meaning as the Collateral Agent shall in
good faith specify in writing after consultation with the Borrower) under Section 201 of the
Federal Electronic Signatures in Global and National Commerce Act or, as the case may be, Section
16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such
transferable record. The Collateral Agent agrees with such Grantor that the Collateral Agent will
arrange, pursuant to procedures reasonably satisfactory to the Collateral Agent and so long as such

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procedures will not result in the Collateral Agent’s loss of Control or control, as
applicable, for the Grantor to make alterations to the Electronic Chattel Paper or transferable
record permitted under UCC Section 9-105 or, as the case may be, Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic
Transactions Act for a party in Control to allow without loss of Control or control, as applicable,
unless an Event of Default has occurred and is continuing or would occur after taking into
account any action by such Grantor with respect to such Electronic Chattel Paper or transferable
record.

     Section 4.3. Inventory Count; Inventory Reporting System. The Grantors shall
continue to conduct all cycle counts consistent with past practices or other inventory control
measures reasonably acceptable to the Collateral Agent, and shall supply the Collateral Agent with
mutually acceptable reports providing reasonable detail of the results of such counts,
reconciliations related thereto and other reports on a monthly basis, under procedures to be
mutually agreed by the Collateral Agent and the Administrative Borrower, provided that the
Collateral Agent agrees that any inventory count measure consistent with industry practice is
acceptable. The Grantors will maintain a perpetual inventory reporting system at all times.

     Section 4.4. Delivery of Instruments, Chattel Paper and Documents. Each Grantor
will (a) hold for the benefit of the Collateral Agent upon receipt and promptly thereafter deliver
to the Collateral Agent any Chattel Paper and Instruments constituting Collateral received after
the date hereof, in each case with a value in excess of $1,000,000, (b) upon the Collateral Agent’s
request, deliver to the Collateral Agent, and thereafter hold for the benefit of the Collateral
Agent upon receipt and promptly deliver to the Collateral Agent any Document (other than
certificates of title with respect to Collateral except in accordance with Section 5.01(e) of the
Credit Agreement) evidencing or constituting Collateral with a value in excess of $1,000,000, and
(c) upon the Collateral Agent’s reasonable request, deliver to the Collateral Agent a duly executed
amendment to this Security Agreement, in the form of
Exhibit C hereto (each, an “Amendment”),
pursuant to which such Grantor will pledge any additional Collateral to the extent required hereby
or by the Credit Agreement. Each Grantor hereby authorizes the Collateral Agent to attach each
Amendment to this Security Agreement and agrees that all additional collateral set forth in such
Amendments shall be considered to be part of the Collateral.

     Section 4.5. Exercise of Rights in Pledged Collateral Each Grantor shall be entitled
to receive and retain any and all interest, principal and other distributions paid on or
distributed in respect of the Pledged Collateral to the extent and only to the extent that such
interest, principal and other distributions are permitted by, and otherwise paid or distributed in
accordance with, the terms and conditions of the Credit Agreement, the other Loan Documents and
applicable law; provided, however, that any non-cash distributions that would constitute Pledged
Collateral, whether received in exchange for Pledged Collateral or any part thereof, or in
redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of
assets to which such issuer may be a party or otherwise, shall be and become part of the Pledged
Collateral, and, if received by any Grantor, shall not be commingled by such Grantor with any of
its other funds or property but shall be held separate and apart therefrom, shall be held for the
benefit of the Secured Parties and shall be promptly delivered to the Collateral Agent in the same
form as so received (with any necessary endorsement or instrument of assignment).

     Section 4.6. No Interference. Each Grantor agrees that it will not interfere with
any right, power and remedy of the Collateral Agent provided for in this Security Agreement or now
or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning
of the exercise by the Collateral Agent of any one or more of such rights, powers or remedies.

     Section 4.7. Insurance.

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          (a) In the event any Collateral is located in any area that has been designated
by the Federal Emergency Management Agency as a “Special Flood Hazard Area”, the applicable
Grantor shall purchase and maintain flood insurance on such Collateral (including any personal
property which is located on any real property leased by such Loan Party within a “Special Flood
Hazard Area”). The amount of all insurance required by this Section shall at a minimum comply with
applicable law, including the Flood Disaster Protection Act of 1973, as amended. All premiums on
such insurance shall be paid when due by such Grantor, and copies of the policies delivered to the
Collateral Agent. If any Grantor fails to obtain any insurance as required by this Section, the
Collateral Agent at the direction of the Required Lenders may obtain such insurance at the
Borrower’s expense. By purchasing such insurance, the Collateral Agent shall not be deemed to have
waived any Default arising from the Grantors’ failure to maintain such insurance or pay any
premiums therefor.

          (b) All insurance policies required under Section 5.09 of the Credit Agreement shall
name the Collateral Agent (for the benefit of the Collateral Agent and the other Secured Parties)
as an additional insured or as loss payee with respect to the Collateral, as applicable, and shall
contain loss payable clauses, through endorsements in form and substance reasonably satisfactory to
the Collateral Agent.

     Section 4.8. Collateral Access Agreement and Certain Payments. The Grantors shall
use commercially reasonable efforts to obtain as soon as commercially reasonable, Collateral Access
Agreements from the lessor with respect to the locations reflected on Schedule 4.8 hereto,
comprising their leased parts distribution centers, leased used trucks centers and leased
manufacturing plants. In addition, if any Grantor leases any other warehouse, distribution
facility or manufacturing plant after the Closing Date, such Grantor shall use commercially
reasonable efforts to promptly obtain a Collateral Access Agreement for such leased warehouse,
distribution facility or manufacturing plant. Except as would not reasonably be expected to have a
Material Adverse Effect, each Grantor shall perform its obligations under all leases and other
agreements with respect to any such leased location or third-party warehouse where any Collateral
is or may be located.

ARTICLE V

REMEDIES

     Section 5.1. Remedies.

          (a) Upon the occurrence and during the continuance of an Event of Default, the
Collateral Agent may exercise any or all of the following rights and remedies:

          (i) those rights and remedies provided in this Security Agreement, the
Credit Agreement, or any other Loan Document; provided, that this Section 5.1(a) shall not
be understood to limit any rights available to the Agents and the Lenders prior to an Event
of Default;

          (ii) those rights and remedies available to a secured party under the UCC
(whether or not the UCC applies to the affected Collateral) or under any other applicable
law (including, without limitation, any law governing the exercise of a bank’s right of
setoff or bankers’ Lien) when a debtor is in default under a security agreement;

          (iii) give notice of sole control or any other instruction under any blocked
account or account control agreement (with respect to the Blocked Cash Account and the

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Collection Account), Collateral Access Agreement or any other control or similar
agreement and take any action provided therein with respect to the applicable Collateral;

          (iv) without notice (except as specifically provided in Section 7.1 or
elsewhere herein), demand or advertisement of any kind to any Grantor or any other Person,
enter the premises of any Grantor where any Collateral is located (through self-help and
without judicial process) to collect, receive, assemble, process, appropriate, sell, lease,
assign, grant an option or options to purchase or otherwise dispose of, deliver, or realize
upon, the Collateral or any part thereof in one or more parcels at public or private sale
or sales (which sales may be adjourned or continued from time to time with or without
notice and may take place at such Grantor’s premises or elsewhere), for cash, on credit or
for future delivery without assumption of any credit risk, and upon such other terms as the
Collateral Agent may deem commercially reasonable; and

          (v) concurrently with written notice to the Grantors, transfer and register
in its name or in the name of its nominee the whole or any part of the Pledged Collateral,
to exercise all other rights as a holder with respect thereto, to collect and receive all
cash, interest, principal and other distributions made thereon and to otherwise act with
respect to the Pledged Collateral as though the Collateral Agent was the outright owner
thereof.

          (b) Each Grantor acknowledges and agrees that the compliance by the Collateral
Agent, on behalf of the Secured Parties, with any applicable state or federal law requirements in
connection with a disposition of the Collateral will not be considered to adversely affect the
commercial reasonableness of any sale of the Collateral.

          (c) The Collateral Agent shall have the right upon any public sale or sales and, to
the extent permitted by law, upon any private sale or sales, to purchase for the benefit of the
Collateral Agent and the Secured Parties, the whole or any part of the Collateral so sold, free of
any right of equity redemption, which equity redemption each Grantor hereby expressly releases.

          (d) Until the Collateral Agent is able to effect a sale, lease, transfer or other
disposition of Collateral, the Collateral Agent shall have the right to hold or use Collateral, or
any part thereof, to the extent that it deems appropriate for the purpose of preserving Collateral
or the value of the Collateral. The Collateral Agent may, if it so elects, seek the appointment of
a receiver or keeper to take possession of Collateral and to enforce any of the Collateral Agent’s
remedies (for the benefit of the Collateral Agent and Secured Parties), with respect to such
appointment without prior notice or hearing as to such appointment.

          (e) [Reserved].

          (f) Notwithstanding
the foregoing, none of the Collateral Agent, any other Agent or the Secured Parties shall be required to (i) make any demand upon, or pursue or exhaust any of
their rights or remedies against, the Grantors, any other obligor, guarantor, pledgor or any other
Person with respect to the payment of the Secured Obligations or to pursue or exhaust any of their
rights or remedies with respect to any Collateral therefor or any direct or indirect guarantee
thereof, (ii) marshal the Collateral or any guarantee of the Secured Obligations or to resort to
the
Collateral or any such guarantee in any particular order, or (iii) effect a public sale of any
Collateral.

          (g) Each Grantor recognizes that the Collateral Agent may be unable to effect a
public sale of any or all the Pledged Collateral and may be compelled to resort to one or more
private sales thereof. Each Grantor also acknowledges that any private sale may result in prices
and other terms

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less favorable to the seller than if such sale were a public sale and, notwithstanding such
circumstances, agrees that any such private sale shall not be deemed to have been made in a
commercially unreasonable manner solely by virtue of such sale being private.

     Section 5.2. Grantor’s Obligations Upon Default. Upon the reasonable request of the
Collateral Agent after the occurrence and during the continuance of an Event of Default, each
Grantor will:

          (a) assemble and make available to the Collateral Agent the Collateral and all books
and records relating thereto at any place or places reasonably specified by the Collateral Agent,
whether at such Grantor’s premises or elsewhere; and

          (b) permit the Collateral Agent, by the Collateral Agent’s representatives and
agents, to enter, occupy and use any premises where all or any part of the Collateral, or the books
and records relating thereto, or both, are located, to take possession of all or any part of the
Collateral or the books and records relating thereto, or both, to remove all or any part of the
Collateral or the books and records relating thereto, or both, and to conduct sales of the
Collateral, without any obligation to pay any Grantor for such use and occupancy.

ARTICLE VI

ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY

     Section 6.1. Account Verification. The Collateral Agent may (a) at any time and from
time to time, in the name of a nominee of the Collateral Agent or in the name of any Grantor, and
(b) upon substantially contemporaneous notice to the Grantor, at any time and from time to time
following the occurrence and during the continuance of an Event of Default, in the Collateral
Agent’s own name, in the name of a nominee of the Collateral Agent or in the name of any Grantor,
communicate (by mail, telephone, facsimile or otherwise) with the Account Debtors of such Grantor,
parties to contracts with such Grantor and obligors in respect of Instruments of such Grantor to
verify with such Persons, to the Collateral Agent’s satisfaction, the existence, amount, terms of,
and any other matter relating to, Accounts, Instruments, Chattel Paper, Payment Intangibles and/or
other Receivables that are Collateral.

     Section 6.2. Authorization for Secured Party to Take Certain Action.

          (a) Each Grantor irrevocably authorizes the Collateral Agent and appoints the
Collateral Agent as its attorney in fact (i) at any time and from time to time in the sole
discretion of the Collateral Agent (A) to execute on behalf of such Grantor as debtor and to file
financing statements necessary or desirable in the Collateral Agent’s reasonable discretion to
perfect and to maintain the perfection and priority of the Collateral Agent’s security interest in
the
Collateral, (B) to file a carbon, photographic or other reproduction of this Security
Agreement or any financing statement with respect to the Collateral as a financing statement and to
file any other financing statement or amendment of a financing statement (which would not add new
collateral or add a debtor, except as otherwise provided for herein or in any other Loan Document)
in such offices as the Collateral Agent in its reasonable discretion deems necessary or desirable
to perfect and to maintain the perfection and priority of the Collateral Agent’s security interest
in the Collateral, and (C) to discharge past due taxes, assessments, charges, fees or Liens on the
Collateral (except for such Liens as are permitted hereunder); (ii) at any time following the
occurrence and during the continuance of an Event of Default, (A) to endorse and collect any cash
proceeds of the Collateral and to apply the proceeds of any Collateral received by the Collateral
Agent to the Secured Obligations as provided herein or in the Credit Agreement or any other Loan
Document, (B) to demand payment or enforce payment of the Receivables in the name of the Collateral
Agent or any Grantor and to endorse any and all checks, drafts, and other instruments for the
payment of

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money relating to the Receivables, (C) upon substantially contemporaneous notice to such
Grantor, to sign any Grantor’s name on any invoice or bill of lading relating to the Receivables,
drafts against any Account Debtor of such Grantor, assignments and verifications of Receivables,
(D) upon substantially contemporaneous notice to such Grantor, to exercise all of any Grantor’s
rights and remedies with respect to the collection of the Receivables and any other Collateral, (E)
upon substantially contemporaneous notice to such Grantor, to settle, adjust, compromise, extend or
renew the Receivables, (F) to settle, adjust or compromise any legal proceedings brought to collect
Receivables, (G) to prepare, file and sign any Grantor’s name on a proof of claim in bankruptcy or
similar document against any Account Debtor of such Grantor, (H) to prepare, file and sign any
Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar document in
connection with the Receivables, and (I) to change the address for delivery of mail addressed to
any Grantor to such address as the Collateral Agent may designate and to receive, open and dispose
of all mail addressed to such Grantor; and (iii) with 5 Business Days prior notice to such Grantor,
to do all other acts and things necessary to carry out the terms of this Security Agreement; and
each Grantor agrees to reimburse the Collateral Agent within 10 Business Days of written demand for
any reasonable payment made or any reasonable documented out-of-pocket expense incurred by the
Collateral Agent in connection with any of the foregoing; provided that, this authorization shall
not relieve any Grantor of any of its obligations under this Security Agreement or under the Credit
Agreement.

          (b) All acts of said attorney or designee are hereby ratified and approved by the
Grantors. The powers conferred on the Collateral Agent, for the benefit of the Collateral Agent
and Secured Parties, under this Section 6.2 are solely to protect the Collateral Agent’s interests
in the Collateral and shall not impose any duty upon the Collateral Agent or any Secured Party to
exercise any such powers.

     Section 6.3. PROXY. EACH GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE
COLLATERAL AGENT AS ITS PROXY AND ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 6.2 ABOVE) WITH RESPECT
TO THE PLEDGED COLLATERAL, INCLUDING THE RIGHT TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL POWER OF
SUBSTITUTION TO DO SO. IN ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE
APPOINTMENT OF THE COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO
EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES AND REMEDIES
TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED. SUCH PROXY SHALL BE
EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION (INCLUDING ANY TRANSFER OF ANY
SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF) BY ANY PERSON (INCLUDING THE
ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF), UPON THE OCCURRENCE AND DURING
THE CONTINUANCE OF AN EVENT OF DEFAULT.

          Section 6.4. NATURE OF APPOINTMENT; LIMITATION OF DUTY. THE APPOINTMENT OF THE
COLLATERAL AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND
SHALL BE IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE
WITH SECTION 7.15. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE COLLATERAL AGENT, NOR
ANY SECURED PARTY, NOR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS
OR REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR
OTHERWISE OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY
IN DOING SO, EXCEPT TO THE EXTENT SUCH DAMAGES ARE ATTRIBUTABLE TO THEIR OWN GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT AS

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FINALLY
DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT SHALL THEY
BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

ARTICLE VII

GENERAL PROVISIONS

     Section 7.1. Waivers. Each Grantor hereby waives notice of the time and place of any
public sale or the time after which any private sale or other disposition of all or any part of the
Collateral may be made. To the extent such notice may not be waived under applicable law, any
notice made shall be deemed reasonable if sent to the Grantors, addressed as set forth in Article
VIII, at least ten days prior to (a) the date of any such public sale or (b) the time after which
any such private sale or other disposition may be made. To the maximum extent permitted by
applicable law, each Grantor waives all claims, damages, and demands against the Collateral Agent
or any Secured Party arising out of the repossession, retention or sale of the Collateral, except
such as arise solely out of the gross negligence or willful misconduct of the Collateral Agent or
such Secured Party as finally determined by a court of competent jurisdiction. To the extent it may
lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and
advantage of, and covenants not to assert against the Collateral Agent or any Secured Party, any
valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and all
rights or defenses it may have as a surety now or hereafter existing which, but for this provision,
might be applicable to the sale of any Collateral made under the judgment, order or decree of any
court, or privately under the power of sale conferred by this Security Agreement, or otherwise.
Except as otherwise specifically provided herein, each Grantor hereby waives presentment, demand,
protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection
with this Security Agreement or any Collateral.

     Section 7.2. Limitation on Collateral Agent’s and Secured Party’s Duty with
Respect to the Collateral. (a) The Collateral Agent shall have no obligation to clean-up or otherwise prepare
the Collateral for sale. The Collateral Agent and each Secured Party shall use reasonable care with
respect to the Collateral in its possession or under its control. None of the Collateral Agent, any
other Agent or any Secured Party shall have any other duty as to any Collateral in its possession
or control or in the possession or control of any agent or nominee of the Collateral Agent, any
other Agent or such Secured Party, or any income thereon or as to the preservation of rights
against prior parties or any other rights pertaining thereto. To the extent that applicable law
imposes duties on the Collateral Agent to exercise remedies in a commercially reasonable manner,
each Grantor acknowledges and agrees that it would be commercially reasonable for the Collateral
Agent (i) to fail to incur expenses deemed significant by the Collateral Agent, in its reasonable
discretion, to prepare Collateral for disposition or otherwise to transform raw material or work in
process into finished goods or other finished products for disposition, (ii) to fail to obtain
third party consents for access to Collateral to be disposed of, or to obtain or, if not required
by other law, to fail to obtain governmental or third party consents for the collection or
disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection
remedies against Account Debtors or other Persons obligated on Collateral or to remove Liens on or
any adverse claims against Collateral, (iv) to exercise collection remedies against Account Debtors
and other Persons obligated on Collateral directly or through the use of collection agencies and
other collection specialists, (v) to advertise dispositions of Collateral through publications or
media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to
contact other Persons, whether or not in the same business as the Grantor, for expressions of
interest in acquiring all or any portion of such Collateral, (vii) to hire one or more professional
auctioneers to assist in the disposition of Collateral, whether or not the Collateral is of a
specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for
the auction of assets of the types included in the Collateral or that have the reasonable capacity
of doing so, or that match buyers and sellers of assets, (ix) to dispose of assets in wholesale

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rather than retail markets, (x) to disclaim disposition warranties, such as title, possession
or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Collateral
Agent against risks of loss, collection or disposition of Collateral or to provide to the
Collateral Agent a guaranteed return from the collection or disposition of Collateral, or (xii) to
the extent deemed appropriate by the Collateral Agent, to obtain the services of other brokers,
investment bankers, consultants and other professionals to assist the Collateral Agent in the
collection or disposition of any of the Collateral. Each Grantor acknowledges that the purpose of
this Section 7.2 is to provide non-exhaustive indications of what actions or omissions by the
Collateral Agent would be commercially reasonable in the Collateral Agent’s exercise of remedies
against the Collateral and that other actions or omissions by the Collateral Agent shall not be
deemed commercially unreasonable solely on account of not being indicated in this Section 7.2.
Without limitation upon the foregoing, nothing contained in this Section 7.2 shall be construed to
grant any rights to any Grantor or to impose any duties on the Collateral Agent that would not have
been granted or imposed by this Security Agreement or by applicable law in the absence of this
Section 7.2.

          (b) Anything herein to the contrary notwithstanding, (i) each Grantor shall remain liable
under the contracts and agreements included in such Grantor’s Collateral to the extent set forth
therein to perform all of its duties and obligations thereunder to the same extent as if this
Security Agreement had not been executed, (ii) the exercise by the Collateral Agent of any of the
rights hereunder shall not release any Grantor from any of its duties or obligations under
the contracts and agreements included in the Collateral and (iii) no Secured Party shall have
any obligation or liability under the contracts and agreements included in the Collateral by reason
of this Security Agreement or any other Loan Document, nor shall any Secured Party be obligated to
perform any of the obligations or duties of any Grantor thereunder or to take any action to collect
or enforce any claim for payment assigned hereunder.

     Section 7.3. Compromises and Collection of Collateral. Each Grantor and the
Collateral Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted
by obligors with respect to certain of the Receivables, that certain of the Receivables may be or
become uncollectible in whole or in part and that the expense and probability of success in
litigating a disputed Receivable may exceed the amount that reasonably may be expected to be
recovered with respect to a Receivable. In view of the foregoing, each Grantor agrees that the
Collateral Agent may at any time and from time to time, if an Event of Default has occurred and is
continuing, and upon substantially contemporaneous notice to such Grantor, compromise with the
obligor on any Receivable, accept in full payment of any Receivable such amount as the Collateral
Agent in its sole discretion shall determine or abandon any Receivable, and any such action by the
Collateral Agent shall be commercially reasonable so long as the Collateral Agent acts in good
faith based on information known to it at the time it takes any such action.

     Section 7.4. Secured Party Performance of Debtor Obligations. Without having any
obligation to do so, the Collateral Agent may perform or pay any obligation which any Grantor has
agreed to perform or pay under this Security Agreement and the Grantor shall reimburse the
Collateral Agent for any amounts paid by the Collateral Agent
pursuant to this Section 7.4. Each
Grantor’s obligation to reimburse the Collateral Agent pursuant to the preceding sentence shall be
a Secured Obligation payable on demand.

     Section 7.5. Specific Performance of Certain Covenants. The Grantor acknowledges
and agrees that a breach of any of the covenants contained in Sections 4.1(d), 4.1(e), 4.4, 4.5,
4.7, 4.8, or 5.2, will cause irreparable injury to the Collateral Agent and the Secured Parties,
that the Collateral Agent and the Secured Parties have no adequate remedy at law in respect of such
breaches and therefore agrees, without limiting the right of the Collateral Agent or the Secured
Parties to seek and obtain specific performance of other obligations of any Grantor contained in
this Security Agreement, that the covenants of such Grantor contained in the Sections referred to
in this Section 7.5 shall be specifically enforceable against such Grantor.

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     Section 7.6. Dispositions Not Authorized. No Grantor is authorized to sell or
otherwise dispose of the Collateral, except as set forth in Section 4.1(d), and notwithstanding any
course of dealing between any Grantor and the Collateral Agent or other conduct of the Collateral
Agent, no authorization to sell, lease or transfer or otherwise dispose of the Collateral (except
as set forth in Section 4.1(d)) shall be binding upon the Collateral Agent or the Secured Parties
unless such authorization is in writing signed by the Collateral Agent with the consent or at the
direction of the Required Lenders.

     Section 7.7. No Waiver; Amendments; Cumulative Remedies. No delay or omission of the
Collateral Agent, the Administrative Agent or any Secured Party to exercise any right or remedy
granted under this Security Agreement shall impair such right or remedy or be construed to be a
waiver of any Default or an acquiescence therein, and any single or partial exercise of any such
right or remedy shall not preclude any other or further exercise thereof or the exercise of any
other right or remedy. No waiver, amendment or other variation of the terms, conditions or
provisions of this Security Agreement whatsoever shall be valid unless in writing signed by
the Collateral Agent with the concurrence or at the direction of the Lenders required under Section
9.02 of the Credit Agreement and then only to the extent in such writing specifically set forth.
All rights and remedies contained in this Security Agreement or by law afforded shall be cumulative
and all shall be available to the Collateral Agent, the Administrative Agent and the Secured
Parties until termination of this Security Agreement in accordance with Section 7.15 below.

     Section 7.8. Limitation by Law; Severability of Provisions. All rights, remedies and
powers provided in this Security Agreement may be exercised only to the extent that the exercise
thereof does not violate any applicable provision of law, and all the provisions of this Security
Agreement are intended to be subject to all applicable mandatory provisions of law that may be
controlling and to be limited to the extent necessary so that they shall not render this Security
Agreement invalid, unenforceable or not entitled to be recorded or registered, in whole or in part.
Any provision in this Security Agreement that is held to be inoperative, unenforceable, or invalid
in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the operation, enforceability,
or validity of that provision in any other jurisdiction, and to this end the provisions of this
Security Agreement are declared to be severable.

     Section 7.9. Reinstatement. This Security Agreement shall remain in full force and
effect and continue to be effective should any petition be filed by or against any Grantor for
liquidation or reorganization, should any Grantor become insolvent or make an assignment for the
benefit of any creditor or creditors or should a receiver or trustee be appointed for all or any
significant part of its Grantor’s assets, and shall continue to be effective or be reinstated, as
the case may be, if at any time payment and performance of the Secured Obligations, or any part
thereof, is, pursuant to applicable law, rescinded or reduced in amount, or must otherwise be
restored or returned by any obligee of the Secured Obligations, whether as a “voidable preference,”
“fraudulent conveyance,” or otherwise, all as though such payment or performance had not been made.
In the event that any payment, or any part thereof, is rescinded, reduced, restored or returned,
the Secured Obligations shall be reinstated and deemed reduced only by such amount paid and not so
rescinded, reduced, restored or returned.

     Section 7.10. Benefit of Agreement. The terms and provisions of this Security
Agreement shall be binding upon and inure to the benefit of each Grantor, each Agent and the
Secured Parties and their respective successors and permitted assigns (including all Persons who
become bound as a debtor to this Security Agreement), except that no Grantor shall have the right
to assign its rights or delegate its obligations under this Security Agreement or any interest
herein, without the prior written consent of the Collateral Agent. No sales of participations,
assignments, transfers, or other dispositions of any agreement governing the Secured Obligations or
any portion thereof or interest therein shall in any

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manner impair the Lien granted to the Collateral Agent, for the benefit of the Collateral
Agent and the Secured Parties, hereunder.

     Section 7.11. Survival of Representations. All representations and warranties of
each Grantor contained in this Security Agreement shall survive the execution and delivery of this
Security Agreement.

     Section 7.12. Expenses. Each Grantor jointly and severally agrees to reimburse each
Agent within 10 Business Days of written demand for any and all reasonable documented
out-of-pocket expenses paid or incurred by such Agent in the administration, collection,
preservation or sale of the Collateral (including the reasonable documented expenses and charges
associated with any periodic or special audit or analysis of the Collateral to the extent provided
in the Credit Agreement). Any and all costs and expenses incurred by any Grantor in the performance
of actions required pursuant to the terms hereof shall be borne solely by such Grantor.

     Section 7.13. Additional Borrowers. Pursuant to and in accordance with Section 9.20
of the Credit Agreement, any addition of any Person as a Borrower under the Credit Agreement is
subject to execution and delivery by the Borrowers, such Person, the Administrative Agent, and the
Collateral Agent of this Security Agreement promptly upon becoming a Borrower. Upon execution and
delivery by the Collateral Agent and such Additional Borrower of an instrument substantially in the
form of Exhibit E hereto, such Borrower shall become a Borrower hereunder with the same force and
effect as if originally named as a Borrower herein. The execution and delivery of any such
instrument shall not require the consent of any other Loan Party hereunder. The rights and
obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the
addition of any new Loan Party as a party to this Security Agreement.

     Section 7.14. Headings. The title of and section headings in this Security Agreement
are for convenience of reference only, and shall not govern the interpretation of any of the terms
and provisions of this Security Agreement.

     Section 7.15. Termination or Release.

          (a) This Security Agreement shall continue in effect until (i) the Credit Agreement
has terminated pursuant to its express terms, and (ii) payment and satisfaction in full in cash of
all Secured Obligations (other than unripened, contingent indemnity obligations) owing as of the
date of such termination (or with respect to any outstanding Letters of Credit, have been cash
collateralized as required by the Credit Agreement) and no Commitments of any Agent or the Lenders
which would give rise to any Obligations are outstanding.

          (b) Upon any sale, lease, transfer or other disposition by any Grantor of any
Collateral that is permitted under Section 4.1(d) to any Person that is not another Grantor or,
upon the effectiveness of any written consent to the release of the security interest granted
hereby in any Collateral pursuant to Section 9.02 of the Credit Agreement, the security interest in
such Collateral shall be automatically released.

          (c) In connection with any termination or release pursuant to paragraph (a) or (b)
above, the Collateral Agent shall promptly execute and deliver to any Grantor, at such Grantor’s
expense, all UCC termination statements and similar documents that such Grantor shall reasonably
request to evidence such termination or release. Any execution and delivery of documents pursuant
to this Section 7.15 shall be without recourse to or representation or warranty by the Collateral
Agent or any Secured Party. Without limiting the provisions of Section 7.12, the Borrower shall
reimburse the Collateral Agent promptly upon demand for all reasonable and documented costs and
out-of-pocket

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expenses, including the reasonable and documented fees, charges and expenses of one primary
counsel (plus any applicable local counsel), incurred by it in connection with any action
contemplated by this Section 7.15.

     Section 7.16. Entire Agreement. This Security Agreement, together with the other Loan
Documents, embodies the entire agreement and understanding between each Grantor and the Collateral
Agent relating to the Collateral and supersedes all prior agreements and understandings between
any Grantor and the Collateral Agent relating to the Collateral.

     Section 7.17. CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

     Section 7.18. CONSENT TO JURISDICTION. EACH GRANTOR HEREBY
IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY U.S. FEDERAL OR NEW YORK STATE COURT
SITTING IN NEW YORK, NEW YORK IN THE BOROUGH OF MANHATTAN IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT AND TO THE EXTENT PERMITTED BY
APPLICABLE LAW, THE GRANTOR HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT
MAY NOW OR HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A
COURT OR THAT SUCH COURT IS AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF ANY
AGENT OR ANY SECURED PARTY TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER
JURISDICTION. ANY JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST ANY AGENT OR ANY SECURED PARTY OR ANY
AFFILIATE OF ANY AGENT OR ANY SECURED PARTY INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY
WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN
DOCUMENT SHALL BE BROUGHT ONLY IN A COURT IN NEW YORK, NEW YORK IN THE BOROUGH OF MANHATTAN.

     Section 7.19. WAIVER OF JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH
GRANTOR, EACH AGENT AND EACH SECURED PARTY HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING
INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN
ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE RELATIONSHIP ESTABLISHED THEREUNDER.

     Section 7.20. Indemnity. (b) Each Grantor agrees, jointly and severally, to indemnify,
defend and save and hold harmless each Agent, each Secured Party 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 10 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) this Security Agreement, or the
ownership, delivery, lease, possession, use, operation, condition, sale, return or other
disposition of any Collateral; provided, that such indemnity shall not be available to the extent
that such

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losses, claims, damages, penalties, liabilities or related expenses are determined by a court
of competent jurisdiction to have resulted from (i) 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 this Security
Agreement by such Indemnified Party or its officers, directors, employees or agents or (iii) that
the dispute is solely between Indemnified Parties or their respective officers, affiliates,
directors, employees, agents, advisors, controlling persons, members and successors and permitted
assigns, except in respect of any agent under this Security Agreement, in its capacity as an
Agent.

     Section 7.21. Counterparts. This Security Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one agreement, and any of the parties
hereto may execute this Security Agreement by signing any such counterpart.

ARTICLE VIII

NOTICES

     Section 8.1. Sending Notices. Any notice required or permitted to be given under this
Security Agreement (a) sent by hand or overnight courier service, or mailed by certified or
registered mail, shall be deemed to have been given when received, (b) sent by facsimile shall be
deemed to have been given when sent and when receipt has been confirmed by telephone (provided,
that if not given during normal business hours for the recipient, shall be deemed to have been
given at the opening of business on the next Business Day for the recipient) or (c) delivered or
furnished by electronic communications (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Agents and the Administrative Borrower as set forth in
Section 9.01 of the Credit Agreement, in each case addressed to the Administrative Borrower at the
address set forth in Section 9.01 of the Credit Agreement, and to the Agents and the Lenders at the
addresses set forth in accordance with Section 9.01 of the Credit Agreement.

     Section 8.2. Change in Address for Notices. Each of the Grantors, the Agents and the
Lenders may change the address or facsimile number for service of notice upon it by a notice in
writing to the other parties.

ARTICLE IX

THE AGENT

     Section 9.1. The Collateral Agent. Bank of America, N.A. has been appointed
Collateral Agent for the Lenders hereunder pursuant to Article VIII of the Credit Agreement. It is
expressly understood and agreed by the parties to this Security Agreement that any authority
conferred upon the Collateral Agent hereunder is subject to the terms of the delegation of
authority made by the Lenders to the Collateral Agent pursuant to the Credit Agreement, and that
the Collateral Agent has agreed to act (and any successor Collateral Agent shall act) as such
hereunder only on the express conditions contained in such Article VIII. Any successor Collateral
Agent appointed pursuant to Article VIII of the Credit Agreement shall be entitled to all the
rights, interests and benefits of the Collateral Agent hereunder.

[SIGNATURE PAGE FOLLOWS]

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     IN WITNESS WHEREOF, each Grantor and each Agent have executed this Security Agreement as
of the date first above written.

Grantors:

	 	 	 	 	 
	 	INTERNATIONAL TRUCK AND ENGINE CORPORATION

 	 
	 	By:  	/s/      TM Endsley
 	 
	 	 	Name:  	TM Endsley 	 
	 	 	Title:  	SVP & Treasurer 	 
	 

Signature Page to ITEC ABL Security Agreement

 

 

	 	 	 	 	 
	 	IC CORPORATION

 	 
	 	By:  	/s/ Michael A. Cancelliere
 	 
	 	 	Name:  	Michael A. Cancelliere 	 
	 	 	Title:  	VP 	 
	 

Signature Page to ITEC ABL Security Agreement

 

 

	 	 	 	 	 	 
	 	IC OF OKLAHOMA, LLC.

 	 
	 	 	By:  	/s/ Michael A. Cancelliere
 	 
	 	 	 	Name:  	Michael A. Cancelliere 	 
	 	 	 	Title:  	VP 	 
	 

Signature Page to ITEC ABL Security Agreement

 

 

	 	 	 	 	 	 
	 	INTERNATIONAL DIESEL OF ALABAMA, LLC

 	 
	 	 	By:  	/s/ TM Endsley
 	 
	 	 	 	Name:  	TM Endsley 	 
	 	 	 	Title:  	Treasurer 	 
	 

Signature Page to ITEC ABL Security Agreement

 

 

	 	 	 	 	 	 
	 	SST TRUCK COMPANY LP

 	 
	 	 	By:  	/s/ TM Endsley
 	 
	 	 	 	Name:  	TM Endsley 	 
	 	 	 	Title:  	SVP & Treasurer 	 
	 

Signature Page to ITEC ABL Security Agreement

 

 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Administrative Agent

 	 
	 	By:  	/s/ Ian Nalitt
 	 
	 	 	Name: Ian Nalitt 	 
	 	 	Title:   Vice President 	 
	 
	 	 	 
	 	By:  	/s/ James Neira
 	 
	 	 	Name:  	James Neira  	 
	 	 	Title:  	Associate 	 
	 

Signature Page to ITEC ABL Security Agreement

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., 

as Collateral Agent

 	 
	 	By:  	/s/
Robert J. Lund
 	 
	 	 	Name:  	Robert J. Lund 	 
	 	 	Title:  	Senior Vice President 	 
	 

Signature Page to ITEC ABL Security Agreement

 

 

Schedule 4.8

Leased Locations for Collateral Access Agreements

	 	 	 	 	 	 	 
	PDC CENTERS	 	 	 	 	 	 
	1300 Oakley Industrial Blvd.
	 	Fairburn
	 	GA
	 	30213
	1160 Powis Road
	 	West Chicago
	 	IL
	 	60185
	1717 W. Harvester Road
	 	West Chicago
	 	IL
	 	60185
	3101 N. Lamb Blvd.
	 	Las Vegas
	 	NV
	 	89115
	22638 NE Townsend Way
	 	Fairview
	 	OR	 	97024
	105 Steamboat Blvd.
	 	Manchester
	 	PA
	 	17345
	4038 Rock Quarry Road
	 	Dallas
	 	TX
	 	75211

	 	 	 
	UTO CENTERS
	 	 
	3355 Moreland Ave.

	 	4030 North Point Rd.
	Conley, GA 30288

	 	Baltimore, MD 21222
	 
	 	 
	7510 Brighton Rd.

	 	37750 Northline Rd.
	Commerce City, CO 80022

	 	Romulus, MI 48174
	 
	 	 
	10 Hegenberger Court

	 	4505 West Capitol Ave.
	Oakland, CA 94621

	 	West Sacramento, CA 95691
	 
	 	 
	3325 Rotary Dr.

	 	163 Industrial Blvd.
	Charlotte, NC 28269

	 	LaVergne, TN 37086
	 
	 	 
	1429 Harding Court

	 	1475 N. Corrington Ave.
	Indianapolis, IN 46217

	 	Kansas City, MO 64120
	 
	 	 
	8800 State Rd.

	 	7900 Greenwood Rd.
	Philadelphia, PA 19136

	 	Shreveport, LA 71119
	 
	 	 
	16 West 020 79th St.

	 	5909 Adamo Dr.
	Burr Ridge, IL 60521

	 	Tampa, FL 33619
	 
	 	 
	1400 East Terra Lane

	 	I-70 & Route 310
	O’fallon, MO 63366

	 	Etna, OH 43018
	 
	 	 
	MANUFACTURING PLANTS
	 	 
	 
	 	 
	646 James Record Road

	 	2322 North Mingo Road
	Huntsville, AL 35824

	 	Tulsa, OK 74116

ITEC ABL Security Agreement

Schedule 4.8

 

 

EXHIBIT A

(See Section 3.1 of Security Agreement)

OFFICES IN WHICH FINANCING STATEMENTS AND SECURITY AGREEMENTS

HAVE BEEN FILED

	 	 	 
	Grantor	 	Filing Office
	International Truck and Engine Corporation

	 	Secretary of State of the State of Delaware
	 
	IC Corporation

	 	Secretary of State of the State of Arkansas
	 
	SST Truck Company, LP

	 	Secretary of State of the State of Delaware
	 
	IC of Oklahoma, LLC

	 	Secretary of State of the State of Delaware
	 
	International Diesel of Alabama, LLC

	 	Secretary of State of the State of Delaware

ITEC ABL Security Agreement

Ex - A

 

 

EXHIBIT B

(See Section 3.2 of Security Agreement)

DETAILS OF PLEDGED ACCOUNTS

	 	 	 	 	 	 	 
	No.	 	Name of Account	 	Account Bank	 	Account Number
	1.

	 	Collection Account
	 	To be established post-closing
	 	To be established post-closing
	 
	 	 	 	 	 	 
	2.

	 	L/C Collateral Account
	 	To be established post-closing
	 	To be established post-closing
	 
	 	 	 	 	 	 
	3

	 	Blocked Cash Account
	 	To be established post-closing
	 	To be established post-closing

ITEC ABL Security Agreement

Ex – B

 

 

EXHIBIT C

(See Section 4.4 of Security Agreement)

FORM OF AMENDMENT

          This Amendment, dated as of [                                         ], 20[___] is delivered pursuant to
Section 4.4 of the Security Agreement (as defined below). All capitalized terms used herein
shall have the respective meanings ascribed thereto or incorporated by reference in the Security
Agreement. The undersigned hereby certifies that the representations and warranties set forth in
Article III of the Security Agreement are, and continue to be, true and correct in all material
respects (expect to the extent such representations and warranties relate to any earlier date, and
in such case are true and correct in all material respects as of such date). The undersigned
further agrees that this Amendment may be attached to that certain Security Agreement, dated as of
June 15, 2007, among the undersigned, the other Grantors, Bank of America, N.A., as the Collateral
Agent, and Credit Suisse, as the Administrative Agent (as amended, restated, modified or
supplemented from time to time, the “Security Agreement”) and that the Collateral listed on
Schedule I to this Amendment shall be and become a part of the “Collateral” referred to in
such Security Agreement, and shall secure all Secured Obligations referred to in such Security
Agreement.

	 	 	 	 	 	 	 
	 	 	[NAME OF GRANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

ITEC ABL Security Agreement

Ex – C - 1

 

 

SCHEDULE I TO AMENDMENT

[ADDITIONAL COLLATERAL]

ITEC ABL Security Agreement

Ex – C - 2

 

 

EXHIBIT D

FORM OF PERFECTION CERTIFICATE

     Reference is hereby made to (i) the Security Agreement dated as of June 15, 2007 (as such
Security Agreement may be amended, amended and restated, supplemented or otherwise modified from
time to time, the “Security Agreement”), among International Truck and Engine Corporation,
a Delaware corporation (“ITEC”), IC Corporation, an
Arkansas corporation (“IC”), SST Truck
Company LP, a Delaware limited partnership (“SST”), IC of Oklahoma, LLC, a Delaware limited
liability company (“ICO”), International Diesel of Alabama, LLC, a Delaware limited
liability company (“IDA”, and together with ITEC,
IC, SST and ICO, the “Borrowers”), Bank
of America, N.A. (“BofA” and, in its capacity as collateral agent for the Lenders (as
defined below), the “Collateral Agent”), and Credit Suisse (“CS”) and, in its
capacity as administrative agent for the Lenders (as defined below), the “Administrative
Agent”, and together with the Collateral Agent, the “Agents”); and (ii) the ABL Credit
Agreement dated as of June 15, 2007 (as such ABL Credit Agreement may be amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
among, inter alia, ITEC, IC, SST, ICO, IDA, each Lender party thereto from time to time (the
“Lenders”), the Administrative Agent and the Collateral Agent. Capitalized terms used
herein and not otherwise defined have the respective meanings assigned in the Security Agreement.

     Each of the undersigned hereby certifies, solely in such person’s capacity as an officer and
not individually, to the Collateral Agent as follows as of the date hereof:

1. Names. (a) The exact legal name of each of Borrower, as such name appears in its
respective certificate of incorporation or certificate of formation, is as set forth in
Schedule 1(a) hereto. Each Borrower is (i) the type of entity disclosed next to its name
in Schedule 1(a) and (ii) a registered organization except to the extent otherwise
disclosed in Schedule 1(a). Also set forth in Schedule 1(a) is the respective
organizational identification number, of each Borrower that is a registered organization, the
Federal Taxpayer Identification Number of each Borrower and the state of formation of each
Borrower.

     (b) Set forth in Schedule 1(b) hereto is each other corporate or organizational name
(if any) that each Borrower has had [On the Closing Date: in the past year] [Subsequent to the
Closing Date: since the date of its last Perfection Certificate delivered to the Collateral Agent],
together with the date of the relevant name change, and attached to such schedule are all amended
certificates of incorporation or certificates of formation and any attachments thereto filed with
the relevant state authority or other related corporate documents.

     (c) Set forth in Schedule 1(c) hereto is a list of any other business or organization
to which any Borrower became the successor by merger, consolidation, acquisition, change in form,
nature or jurisdiction of organization or otherwise, [On the Closing Date: in the past year]
[Subsequent to the Closing Date: since the date of its last Perfection Certificate delivered to the
Collateral Agent] and attached to such schedule are all certificates of merger and any attachments
thereto filed by any Borrower with the relevant state authority. Also
set forth in Schedule 1(c) is the information required by Section 1 of this certificate for any other business or
organization to which ITEC, IC, SST, ICO and IDA became the successor by merger, consolidation,
acquisition, change in form, nature or jurisdiction of organization or otherwise, [On the Closing
Date: in the past year] [Subsequent to the Closing Date: since the date of its last Perfection
Certificate delivered to the Collateral Agent] and attached to such schedule are all related
certificates of merger and any attachments thereto filed with the relevant state authority.

     2. Current Locations. (a) The chief executive office of each Borrower is located at the
respective address for each set forth in Schedule 2(a) hereto.

Form of ITEC ABL Perfection Certificate

Ex. D - 1

 

     (b) Attached hereto as Schedule 2(b) hereto is a list that includes all locations
(other than locations where Collateral is stored for repair) where each Borrower maintains any
material books or records relating to any Collateral.

     (c) Set forth in Schedule 2(c) hereto are all other locations where each Borrower
maintains any of the Collateral consisting of inventory not identified above (with an aggregate
value in excess of $5.0 million at any one location).

     (d) Set forth in Schedule 2(d) hereto are the names and addresses of all persons or
entities, other than the Borrowers, such as lessees, consignees, warehousemen or purchasers of
chattel paper, which have possession of any of the Collateral consisting of Instruments or Chattel
Paper (with an aggregate value in excess of $1.0 million at any one location) or Inventory (with an
aggregate value in excess of $5.0 million at any one location).

3. Good
Standing. Attached hereto as Schedule 3 are all of the good standing certificates
of each of the Borrowers dated within [45 days] of the date hereof from the relevant state
authority.

4. File Search Reports. The file search reports and financing statements and other filings
attached hereto as Schedule 4 include the reports of file searches conducted within 45 days
of the date hereof by the Borrowers, and related copies of each financing statement or other filing
identified in such file search reports from the applicable Uniform Commercial Code filing offices
(a) in each jurisdiction identified in Section 1(a) or Section 2 with respect to each legal name
set forth in Section 1, and (b) in each jurisdiction described in Schedule 1(c) relating to
any of the transactions described in Schedule 1(c) with respect to each legal name of the
person or entity from which such Borrower purchased or otherwise acquired any of the Collateral or
merged or consolidated with or acquired (except to the extent provided to the Collateral Agent at
the time of such merger, consolidation or acquisition).

5. UCC Filings. (a) Attached hereto as Schedule 5(a) are copies of UCC-1 financing
statements containing the indications of the Collateral, which are to be filed in the filing
offices in the jurisdictions identified in Schedule 6 hereto.

     (b) Attached as Schedule 5(b) are copies of the UCC-3 financing statement amendments,
which are to be filed in the filing offices in the jurisdictions identified in Schedule 6
hereto.

6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule setting forth,
with respect to the filings described in Section 5 above, each filing and the filing office in
which such filing is to be made.

7. Pledged Accounts. Attached hereto as Schedule 7 is a true and complete list of
all Pledged Accounts (as defined in the Security Agreement) maintained by the Borrowers.

8. Counterparts. This Perfection Certificate may be executed in two or more counterparts,
each of which shall constitute an original but all of which, when taken together, shall constitute
but one Perfection Certificate. Delivery of a counterpart by facsimile or pdf electronic
transmission shall constitute delivery of an original.

[THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

Form of ITEC ABL Perfection Certificate

Ex. D - 2

 

          IN
WITNESS WHEREOF, we have hereunto signed this Perfection Certificate as of this ___ day of
___, 20___.

	 	 	 	 	 
	 	INTERNATIONAL TRUCK AND ENGINE CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	IC CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SST TRUCK COMPANY LP

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	IC OF OKLAHOMA, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INTERNATIONAL DIESEL OF ALABAMA, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Form of ITEC ABL Perfection Certificate

 

Schedule 1(a)

Exact legal name of each Borrower, as such name appears in its respective certificate of
incorporation or
 certificate of formation, type of entity, organizational identification number,
Federal Taxpayer
 Identification Number and the state of formation

Form of ITEC ABL Perfection Certificate

Ex. D - 4

 

Schedule 1(b)

Corporate or organizational name that each Borrower has had [On the Closing Date: in the past
year]
 [Subsequent to the Closing Date: since the date of its last Perfection Certificate delivered
to the Collateral
 Agent], together with the date of the relevant change

Form of ITEC ABL Perfection Certificate

Ex. D - 5

 

Schedule 1(c)

List of all other names used by each Borrower, or any other business or organization to which
any 
Borrower became the successor by merger, consolidation or otherwise, [On the Closing Date: in
the past 
year] [Subsequent to the Closing Date: since the date of its last Perfection Certificate
delivered to the
 Collateral Agent]

Form of ITEC ABL Perfection Certificate

Ex. D - 6

 

Schedule 2(a)

Chief Executive Offices of each Borrower

Form of ITEC ABL Perfection Certificate

Ex. D - 7

 

Schedule 2(b)

Locations of material books or records relating to any Collateral

Form of ITEC ABL Perfection Certificate

Ex. D - 8

 

Schedule 2(c)

All other locations where the Borrowers maintain Collateral with an aggregate value in excess of
$5.0 
million at any one location

Form of ITEC ABL Perfection Certificate

Ex. D - 9

 

Schedule 2(d)

Details of all persons other than the Borrowers in possession or intended to have possession
of any 
Collateral consisting of Instruments or Chattel Paper (with an aggregate value in excess of
$1.0 million at 
any one location) or Inventory (with an aggregate value in excess of $5.0 million
at any one location)

Form of ITEC ABL Perfection Certificate

Ex. D - 10

 

Schedule 3

Good standing certificates of each Borrower

Form of ITEC ABL Perfection Certificate

Ex. D - 11

 

Schedule 4

File search reports, financing statements and other filings

Form of ITEC ABL Perfection Certificate

Ex. D - 12

 

Schedule 5(a)

UCC-1 financing statements

Form of ITEC ABL Perfection Certificate

Ex. D - 13

 

Schedule 5(b)

UCC-3 financing statement amendments

Form of ITEC ABL Perfection Certificate

Ex. D - 14

 

Schedule 6

Filings and the relevant Filing Office

Form of ITEC ABL Perfection Certificate

Ex. D - 15

 

Schedule 7

Pledged Accounts

Form of ITEC ABL Perfection Certificate

Ex. D - 16

 

EXHIBIT E

FORM OF SUPPLEMENT

(See Section 7.13 of Security Agreement)

          SUPPLEMENT
NO. [•] dated as of [•] (this “Supplement”), to the Security Agreement dated as of
June 15, 2007 (the “Security Agreement”), among INTERNATIONAL TRUCK AND ENGINE CORPORATION,
a Delaware corporation (“ITEC”), IC CORPORATION, an
Arkansas corporation (“IC”), SST TRUCK
COMPANY LP, a Delaware limited partnership (“SST”), IC OF OKLAHOMA, LLC (“ICO”), a
Delaware limited liability company, INTERNATIONAL DIESEL OF ALABAMA, LLC, a Delaware limited
liability company (“IDA” and together with ITEC, IC,
SST and ICO, the “Grantors”), BANK OF
AMERICA, N.A. (“BofA”), as collateral agent for the lenders party to the Credit Agreement
referred to below (in such capacity, the “Collateral Agent”), and Credit Suisse, as
administrative agent for the lenders party to the Credit Agreement referred to below (in such
capacity, the “Administrative Agent”, and together with the Collateral Agent, the
“Agents”).

          A. Reference is made to the Credit Agreement dated as of June 15, 2007 (as amended, amended
and restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”), among,
inter alia, the Borrowers, the Lenders (as defined therein) and the Agents.

          B. Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to such terms in the Credit Agreement and the Security Agreement referred to therein.

          C. The Grantors have entered into the Security Agreement in order to induce the Lenders to
make Loans and the Issuing Bank to issue Letters of Credit. Section 7.13 of the Security
Agreement and Section 9.20 of the Credit Agreement provide that Additional Borrowers may become
Parties under the Security Agreement by execution and delivery of an instrument in the form of this
Supplement. The undersigned Borrower (the “Additional Borrower”) is executing this
Supplement in accordance with the requirements of the Credit Agreement to become an Additional
Borrower under the Security Agreement in order to induce the Lenders to make additional Loans and
the Issuing Bank to issue additional Letters of Credit and as consideration for Loans previously
made and Letters of Credit previously issued.

          Accordingly, the each Agent and the Additional Borrower agree as follows:

          SECTION 1. In accordance with Section 7.13 of the Security Agreement, the Additional Borrower
by its signature below becomes an Additional Borrower and a Grantor under the Security Agreement
with the same force and effect as if originally named therein as a Borrower and the Additional
Borrower hereby (a) agrees to all the terms and provisions of the Security Agreement applicable to
it as an Additional Borrower and Grantor thereunder and (b) represents and warrants that the
representations and warranties made by it as a Grantor thereunder are true and correct in all
material respects on and as of the date hereof other than any such representations or warranties
that, by their terms, refer to a specific date other than the date hereof, in which case as of such
specific date. In furtherance of the foregoing, the Additional Borrower, as security for the
payment and performance in full of the Secured Obligations, does
hereby create and grant to the Collateral Agent, its successors and permitted assigns, for the
benefit of the Secured Parties, their successors and permitted assigns, a security interest in and
Lien on all of the Additional Borrower’s right, title and interest in and to the Collateral of the
Additional Borrower. Each reference to a “Grantor” in the Security Agreement shall be deemed to
include the Additional Borrower. The Security Agreement is hereby incorporated herein by reference.

ITEC ABL Security Agreement

Ex – E - 1

 

          SECTION 2. The Additional Borrower represents and warrants to the Collateral Agent and
the other Secured Parties that this Supplement has been duly authorized, executed and delivered by
it and constitutes its legal, valid and binding obligation, enforceable against it in accordance
with its terms, subject to applicable bankruptcy, insolvency or similar laws affecting creditors’
rights generally and to general principles of equity.

          SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken
together shall constitute a single contract. This Supplement shall become effective when the
Collateral Agent shall have received a counterpart of this Supplement that bears the signature of
the Additional Borrower and the Collateral Agent has executed a counterpart hereof. Delivery of an
executed signature page to this Supplement by facsimile or electronic transmission shall be as
effective as delivery of a manually signed counterpart of this Supplement.

          SECTION 4. The Additional Borrower hereby represents and warrants that, in each case as of the
date hereof, (a) set forth on Schedule I attached hereto is a true and correct schedule of the
location of any and all Collateral constituting Inventory of the Additional Borrower, and (b) set
forth under its signature hereto, is the true and correct legal name of the Additional Borrower,
its jurisdiction of formation and the location of its chief executive office.

          SECTION 5. Except as expressly supplemented hereby, the Security Agreement shall remain in
full force and effect.

          SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK.

          SECTION 7. In case any one or more of the provisions contained in this Supplement should be
held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of
the remaining provisions contained herein and in the Security Agreement shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a particular provision in
a particular jurisdiction shall not in and of itself affect the validity of such provision in any
other jurisdiction). The parties hereto shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

          SECTION 8. All communications and notices hereunder shall be in writing and given as provided
in Section 8.1 of the Security Agreement.

          SECTION 9. The Additional Borrower agrees to reimburse each Agent for its reasonable and
documented out-of-pocket expenses in connection with this Supplement, including the reasonable and
documented fees, other charges and disbursements of counsel for such Agent.

ITEC ABL Security Agreement

Ex – E - 2

 

          IN WITNESS WHEREOF, the Additional Borrower and each Agent have duly executed this Supplement
to the Security Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	[NAME OF ADDITIONAL BORROWER]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Legal Name:	 	 
	 

	 	 	 	 	 	Jurisdiction of Formation:	 	 
	 

	 	 	 	 	 	Location of Chief Executive office:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BANK OF AMERICA,
N.A. 
as Collateral Agent	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	by	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 
	 	 	CREDIT SUISSE, 
as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 
	 

	 	 	 	 	 	 

ITEC ABL Security Agreement

Ex – E - 3

 

SCHEDULE I TO SUPPLEMENT

LOCATIONS OF INVENTORY COLLATERAL

	 	 	 	 	 
	Description	 	Location	 
	 
	 	 	 	 

ITEC ABL Security Agreement

Ex – E - 4exv10w1

 

Exhibit 10.1

Big Stone II Power Plant

Amendment No. 4 to

Participation Agreement

By and Among

CENTRAL MINNESOTA MUNICIPAL POWER AGENCY,

GREAT RIVER ENERGY,

HEARTLAND CONSUMERS POWER DISTRICT,

MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU

RESOURCES GROUP, INC.,

OTTER TAIL CORPORATION dba OTTER TAIL POWER COMPANY,

SOUTHERN MINNESOTA MUNICIPAL POWER AGENCY, AND

WESTERN MINNESOTA MUNICIPAL POWER AGENCY

As

Owners

Effective

June 8, 2007

			
	 	 	 
	 
	 	Amendment No. 4 to Participation Agreement

June 8, 2007

 

 

Amendment No. 4 to Participation Agreement

     THIS AMENDMENT NO. 4 TO PARTICIPATION AGREEMENT (this “Amendment”) is made as of June 8,
2007, by and among Central Minnesota Municipal Power Agency, an agency incorporated under the laws
of the State of Minnesota (“CMMPA”), Great River Energy, a cooperative corporation incorporated
under the laws of the State of Minnesota (“GRE”), Heartland Consumers Power District, a consumers
power district formed and organized under the South Dakota Consumers Power District Law (Chapter
49-35 of the South Dakota Codified Laws) (“Heartland”), Montana-Dakota Utilities Co., a Division of
MDU Resources Group, Inc., a corporation incorporated under the laws of the State of Delaware
(“Montana-Dakota”), Otter Tail Corporation, a corporation incorporated under the laws of the State
of Minnesota, doing business as Otter Tail Power Company (“Otter Tail”), Southern Minnesota
Municipal Power Agency, a municipal corporation and political subdivision of the State of Minnesota
(“SMMPA”), and Western Minnesota Municipal Power Agency, a municipal corporation and political
subdivision of the State of Minnesota (“WMMPA”) (each individually a “Party” and, collectively, the
“Parties”).

RECITALS

     WHEREAS, the Parties have entered into a Participation Agreement, dated June 30, 2005 (the
“Agreement”), and an Amendment No. 1 to the Participation Agreement dated effective as of June 1,
2006 (the “Amendment No. 1”), an Amendment No. 2 to the Participation Agreement dated August 1,
2006 (the “Amendment No. 2”) and an Amendment No. 3 to the Participation Agreement dated effective
as of September 1, 2006 (individually, the “Amendment No. 3”, and collectively with the Agreement
and the Amendment No. 1, the Amendment No. 2 and the Amendment No. 3, the “Amended Agreement”), to
provide for their ownership as tenants in common of BSP II and set forth certain responsibilities
and mechanisms for the design, construction, ownership, operation, maintenance and repair of BSP
II; and

     WHEREAS, the Parties desire to amend the Amended Agreement as and to the extent provided in
this Amendment.

     NOW, THEREFORE, in consideration of the agreements and covenants set forth herein, and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and
intending to be legally bound by this Amendment, the Parties covenant and agree as follows:

AGREEMENTS

     1.01 Defined Terms. Capitalized terms used but not otherwise defined herein shall have the
meanings ascribed to such terms in the Agreement.

     1.02 Amendments. The Amended Agreement is hereby amended as follows:

     (a) In Section 3.05(b) of the Amended Agreement, “on June 28, 2007” is hereby deleted and
replaced with “not later than September 12, 2007”.

			
	 	 	 
	 
	 	Amendment No. 4 to Participation Agreement

June 8, 2007

 

 

     (b) The portion of the sentence included in Section 3.05(b)(i), subsection (B) of the Amended
Agreement is hereby deleted in its entirety and replaced with the following: “deposits into the
Trust Account on or before November 30, 2007, a payment equal to the difference of the following
(such difference being referred to herein as the “Net Exit Payment ”):

     Thirty-Seven Dollars and Fifty Cents ($37.50) per kilowatt multiplied by that Owner’s
Ownership Share (calculated based on a 600 MW plant and expressed in kilowatts as reflected on
Exhibit B hereto (the “Exit Payment”) less the withdrawing Owner’s prorated portion (also
based on Exhibit B hereto) of the Project Costs that have been incurred or that relate to
any obligations created during the period starting September 1, 2006 through the date of receipt by
the non-withdrawing Owners of such withdrawing Owner’s notice of withdrawal (the “Interim Project
Costs”).

     If there is a positive Net Exit Payment balance in the Trust Account after November 30, 2007
and if notice of Interim Project Costs is received by the non-withdrawing Owners after the
withdrawing Owner’s deposit, the non-withdrawing Owners shall pay the withdrawing Owner’s prorata
portion of such Interim Project Costs first using any balance of the Net Exit Payment remaining in
the Trust Account. The non-withdrawing Owners shall provide the withdrawing Owner a monthly
statement reflecting such activity and evidence of the paid Interim Project Costs. When and if the
Net Exit Payment equals zero or is a negative number, then the withdrawing Owner shall pay such
Interim Project Costs not more than thirty (30) days after receipt of any invoice received from the
non-withdrawing Owners regarding such Interim Project Costs.

     Notwithstanding the foregoing, however, in no event (other than as provided in Section 3.05(c)
below) shall the non-withdrawing Owners pay the withdrawing Owner, even if the withdrawing Owner’s
Net Exit Payment is a negative number, meaning that its portion of the Interim Project Costs
exceeds its Exit Payment.

     (c) Section 3.05 is hereby amended by adding a new clause “(c)” reading in its entirety as
follows:

“(c) Notwithstanding any provision of this Agreement as amended to the contrary (other
than Section 9.06 hereof), in the event SMMPA withdraws from the Project in accordance with
Section 3.05(b)(i)(A), (i) the amount payable by SMMPA pursuant to Section 3.05(b)(i)(B)
shall equal a total fixed amount of $1,762,500 (calculated by multiplying $37.50 by 47,000
kilowatts, which represents SMMPA’s Ownership Share expressed in kilowatts and calculated
based on a 600 MW plant) (the “Fixed Payment”); and (ii) SMMPA shall be obligated to pay the
Fixed Payment whether or not a Double Majority approves the continuation of the Project;
provided that to the extent (x) the amount of the Fixed Payment exceeds the
amount SMMPA has deposited into the Trust Account pursuant to Section 7.02 for Interim
Project Costs as of the date of receipt by the other Owners of SMMPA’s notice of withdrawal
(the “Notice Date”), SMMPA shall deposit the amount of such difference into the Trust
Account on or before November 30,

			
	 	 	 
	 
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2007; and (y) the amount of the Fixed Payment is less than the amount SMMPA has deposited
into the Trust Account pursuant to Section 7.02 for Interim Project Costs as of the Notice
Date, each other Owner (whether a non-withdrawing Owner or a withdrawing Owner) shall either
directly pay to SMMPA or deposit into the Trust Account for SMMPA’s benefit such Owner’s
prorated portion (calculated based on Exhibit B hereto) of the amount of such
difference within thirty (30) days after November 30, 2007. For the avoidance of doubt, (i)
the Fixed Payment shall be deemed to be SMMPA’s Net Exit Payment; and (ii) SMMPA shall not
be obligated to pay any other Project Costs, Interim Project Costs, Exit Payment, Net Exit
Payment or costs and expenses incurred in connection with the Owners’ compliance with
Section 14.02 (Windup Events) of this Agreement, or any other costs or expenses except those
obligations arising under Section 9.06 hereof, and shall not be entitled to receive any
refunds, rebates or other amounts, payable under the terms of this Agreement.”

     1.03 Continuing Effect; Ratification. Except as expressly amended herein, all other terms,
covenants and conditions contained in the Amended Agreement shall continue to remain unchanged and
in full force and effect and are hereby ratified and confirmed.

     1.04 Governing Law. This Amendment shall be interpreted and enforced in accordance with the
Laws of the State of South Dakota, notwithstanding any conflict of law provision to the contrary.

     1.05 Captions. All titles, subject headings, section titles and similar items are provided
for the purpose of reference and convenience and are not intended to affect the meaning of the
content or scope of this Amendment.

     1.06 Counterparts. This Amendment may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which together shall constitute but one and the
same agreement. Counterpart signatures may be delivered by facsimile or electronic transmission,
each of which shall have the same force and effect as an original signed copy.

     1.07 Authority. Each signatory to this Amendment represents that he/she has the authority to
execute and deliver this Amendment on behalf of the party set forth above his/her signature.

[Signature pages follow.

The remainder of this page is intentionally blank.]

			
	 	 	 
	 
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     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

	 	 	 	 	 	 	 
	OWNERS:	 	 	 	 
	 
	 	 	 	 	 	 
	CENTRAL MINNESOTA MUNICIPAL	 	 	 	 
	POWER AGENCY	 	 	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ Bob Elston	 	 	 	 
	Name:

	 	 

Bob Elston
	 	 	 	 
	Title:

	 	President	 	 	 	 

[Signatures continued on next page.]

			
	 	 	 
	 
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June 8, 2007

4

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

	 	 	 	 	 	 	 
	OWNERS:	 	 	 	 
	 
	 	 	 	 	 	 
	HEARTLAND CONSUMERS POWER	 	 	 	 
	DISTRICT	 	 	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ Michael McDowell	 	 	 	 
	Name:

	 	 

Michael McDowell
	 	 	 	 
	Title:

	 	General Manager	 	 	 	 

[Signatures continued on next page.]

			
	 	 	 
	 
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June 8, 2007

5

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

	 	 	 	 	 	 	 
	OWNERS:	 	 	 	 
	 
	 	 	 	 	 	 
	SOUTHERN MINNESOTA MUNICIPAL	 	 	 	 
	POWER AGENCY	 	 	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ Raymond A. Hayward	 	 	 	 
	Name:

	 	 

Raymond A. Hayward
	 	 	 	 
	Title:

	 	Executive Director and CEO	 	 	 	 

[Signatures continued on next page.]

			
	 	 	 
	 
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June 8, 2007

6

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

	 	 	 	 	 	 	 
	OWNERS:	 	 	 	 
	 
	 	 	 	 	 	 
	WESTERN MINNESOTA MUNICIPAL	 	 	 	 
	POWER AGENCY	 	 	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ Thomas J. Heller	 	 	 	 
	Name:

	 	 

Thomas J. Heller
	 	 	 	 
	Title:

	 	Assistant Secretary & Assistant Treasurer	 	 	 	 

[Signatures continued on next page.]

			
	 	 	 
	 
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June 8, 2007

7

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

	 	 	 	 	 	 	 
	OWNERS:	 	 	 	 
	 
	 	 	 	 	 	 
	GREAT RIVER ENERGY	 	 	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ David Saggau	 	 	 	 
	Name:

	 	 

David Saggau
	 	 	 	 
	Title:

	 	President and Chief Executive Officer	 	 	 	 

[Signatures continued on next page.]

			
	 	 	 
	 
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June 8, 2007

8

 

     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

	 	 	 	 	 	 	 
	OWNERS:	 	 	 	 
	 
	 	 	 	 	 	 
	MONTANA-DAKOTA UTILITIES CO.,	 	 	 	 
	a Division of MDU Resources Group, Inc.	 	 	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ Bruce T. Imsdahl	 	 	 	 
	Name:

	 	 

Bruce T. Imsdahl
	 	 	 	 
	Title:

	 	President and Chief Executive Officer	 	 	 	 

[Signatures continued on next page.]

			
	 	 	 
	 
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     IN WITNESS WHEREOF, the Parties have caused their names to be hereunto subscribed by their
officers thereunto duly authorized, intending thereby that this Amendment shall be effective as of
the date set forth above.

	 	 	 	 	 	 	 
	OWNERS:	 	 	 	 
	 
	 	 	 	 	 	 
	OTTER TAIL CORPORATION	 	 	 	 
	dba Otter Tail Power Company	 	 	 	 
	 
	 	 	 	 	 	 
	By

	 	/s/ Charles S. MacFarlane	 	 	 	 
	Name:

	 	 

Charles S. MacFarlane
	 	 
	 	 
	Title:

	 	President	 	 	 	 

			
	 	 	 
	 
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June 8, 2007

10

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