Document:

exv10w63

 

Exhibit 10.63

WAIVER AND FOURTH AMENDMENT

     WAIVER AND FOURTH AMENDMENT, dated as of December 6, 2006 (this “Amendment”), to the
Loan and Security Agreement, dated as of August 1, 2005 (the “Loan Agreement”), among Del Global
Technologies Corp. (“Del Global”), RFI Corporation and Del Medical Imaging Corp. (collectively,
the “Borrowers”) and North Fork Business Capital Corporation (the “Lender”). Capitalized terms
used herein and not otherwise defined herein shall have the meanings ascribed to such terms in the
Loan Agreement.

WITNESSETH:

     WHEREAS, the Borrowers and the Lender are parties to the Loan Agreement, under which the
Lender has agreed to make, and has made, Loans and other extensions of credit and accommodations
to the Borrowers on the terms and subject to the conditions set forth therein; and

     WHEREAS, the Borrowers have requested that the Lender agree, and the Lender has agreed, (i)
to waive Events of Default that have occurred and are continuing and (ii) to amend certain
provisions of the Loan Agreement, each upon the terms and subject to the conditions set forth
herein.

     NOW, THEREFORE, the Borrowers and the Lender agree as follows:

     SECTION 1 Waiver. Effective as of the date hereof, the Lender hereby waives
compliance with Section 8.6 of the Loan Agreement solely to the extent of the Borrowers’ failure
to comply with the covenant contained therein for the fiscal year ending July 29, 2006 and the
fiscal quarter ending October 28, 2006.

     SECTION 2 Amendments to the Loan Agreement. Effective as of the date hereof, the Loan
Agreement is amended as follows:

          (a) Section 8.6 of the Loan Agreement is hereby deleted and is amended and
restated in its entirety as follows:

     Section 8.6      Tangible Net Worth. The Tangible Net Worth of Del Global and
its Subsidiaries as of the last day of each fiscal quarter commencing January 31, 2007
shall not be less than $4,250,000 plus 50% of the cumulative net income of Del
Global and its Subsidiaries for the quarter then ended.

     SECTION 3 Conditions of Effectiveness. This Amendment shall become effective when,
and only when, the Lender shall have received (a) counterparts of this Amendment, duly executed
by the Borrowers, and (b) payment of the costs and expenses (including, without limitation,
reasonable attorneys’ fees) incurred by the Lender in connection with this Amendment.

 

 

     SECTION 4 Representations and Warranties of the Borrowers. Each Borrower
represents and warrants as follows:

          (a) Such Borrower is a corporation duly organized, validly existing and in good
standing under the laws of the State of New York or Delaware, as the case may be, and is
qualified to do business under the laws of such other jurisdictions in which its failure to
so qualify could have a Material Adverse Effect.

          (b) The execution, delivery and performance by such Borrower of this Amendment (i) are
within such Borrower’s corporate powers, have been duly authorized by all necessary
corporate action and do not contravene (A) such Borrower’s Governing Documents, (B) any
Requirement of Law or (C) any Material Contract and (ii) will not result in or require the
creation or imposition of any Lien upon or with respect to any property now owned or
hereafter acquired by such Borrower.

          (c) No authorization, approval or other action by, and no notice to or filing with,
any Governmental Authority or other Person is required for the due execution, delivery and
performance by such Borrower of this Amendment.

          (d) This Amendment and the Loan Agreement as amended hereby constitute the legal,
valid and binding obligations of such Borrower enforceable against such Borrower in
accordance with their respective terms except as enforceability may be limited by (i)
bankruptcy, insolvency or similar laws affecting creditors’ rights generally and (ii)
general principles of equity.

          (e) Except as specified in Schedule 6.1(r) to the Loan Agreement and the litigation
between Del Global and Jeffrey Moeller, there is no pending or, to the best of such
Borrower’s knowledge after due inquiry, threatened litigation, contested claim,
investigation, arbitration or governmental proceeding by or against such Borrower before
any court, Governmental Authority or arbitrator which individually or in the aggregate
could reasonably be expected to have a Material Adverse Effect or which purports to affect
the legality, validity or enforceability of this Amendment or the Loan Agreement as amended
hereby.

          (f) Except as specified in Section 1 hereof, no Default has occurred and is
continuing.

     SECTION 5 Reference to and Effect on the Loan Agreement.

          (a) On and after the date hereof, each reference in the Loan Agreement to “this
Agreement,” “hereunder,” “hereof,” “herein” and words of like import, and each reference
in the other Loan Documents to the Loan Agreement shall mean and be a reference to the
Loan Agreement as amended hereby.

          (b) Except as specifically waived or amended above, (i) the Loan Agreement and each
other Loan Document shall remain in full force and effect and

2

 

are hereby ratified and confirmed by each of the parties hereto and (ii) the Lender shall
not be deemed to have waived any rights or remedies it may have under the Loan Agreement,
any other Loan Document or applicable law.

          (c) The execution, delivery and effectiveness of this Amendment shall not, except as
expressly provided herein, operate as a waiver of or an amendment to any right, power or
remedy of the Lender under any of the Loan Documents, or constitute a waiver of or an
amendment to any provision of any of the Loan Documents.

     SECTION 6 Costs and Expenses. The Borrowers agree to pay, on demand, all reasonable
out-of-pocket costs and expenses incurred by the Lender in connection with the preparation,
negotiation and execution of this Amendment (including, without limitation, the reasonable fees
and expenses of counsel to the Lender).

     SECTION 7 Counterparts; Telecopied Signatures. This Amendment may be executed in
counterparts and by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all of which shall together constitute one and the same
instrument. This Amendment may be executed and delivered by telecopier or other facsimile
transmission with the same force and effect as if the same were a fully executed and delivered
original manual counterpart.

     SECTION 8 GOVERNING LAW. THE VALIDITY, INTERPRETATION AND
ENFORCEMENT OF THIS AMENDMENT AND ANY DISPUTE ARISING OUT OF OR IN CONNECTION WITH THIS AMENDMENT,
WHETHER SOUNDING IN CONTRACT, TORT OR EQUITY OR OTHERWISE, SHALL BE GOVERNED BY THE INTERNAL LAWS
(AS OPPOSED TO THE CONFLICTS OF LAW PROVISIONS) AND DECISIONS OF
THE STATE OF NEW YORK.

SIGNATURES CONTINUE ON FOLLOWING PAGE

3

 

SIGNATURES CONTINUED FROM PREVIOUS PAGE

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

	 	 	 	 	 
	 	DEL GLOBAL TECHNOLOGIES CORP.

 	 
	 	By:  	/s/
Mark A. Zorko	 
	 	 	Name:  	Mark A. Zorko 	 
	 	 	Title:  	Chief Financial
Officer 	 
	 
	 	RFI CORPORATION

 	 
	 	By:  	/s/
Mark A. Zorko 	 
	 	 	Name:  	Mark A. Zorko 	 
	 	 	Title:  	Chief Financial
Officer 	 
	 
	 	DEL MEDICAL IMAGING CORP.

 	 
	 	By:  	/s/
Mark A. Zorko 	 
	 	 	Name:  	Mark A. Zorko 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	NORTH FORK BUSINESS CAPITAL CORPORATION

 	 
	 	By:  	/s/ Robert R. Wallace
 	 
	 	 	Name:  	Robert R. Wallace 	 
	 	 	Title:  	Vice President 	 
	 

4exv10wee

 

Exhibit 10.ee

EXECUTION COPY

Published
CUSIP Number: 73107FAA3

CREDIT AGREEMENT

among

POLARIS INDUSTRIES INC.

as Borrower,

AND

CERTAIN SUBSIDIARIES OF THE BORROWER

as Guarantors,

AND

THE LENDERS IDENTIFIED HEREIN,

AND

BANK OF AMERICA, N.A.,

as Administrative Agent and Issuing Lender

AND

U.S. BANK N.A.

and

ROYAL BANK OF CANADA

as Syndication Agents

AND

THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH

as Documentation Agent

DATED AS OF December 4, 2006

BANC OF AMERICA SECURITIES LLC

as Sole Book Manager and Sole Lead Arranger

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	SECTION 1 DEFINITIONS AND ACCOUNTING TERMS	 	 	1	 
	1.1
	 	Definitions	 	 	1	 
	1.2
	 	Computation of Time Periods and Other Definitional Provisions	 	 	26	 
	1.3
	 	Accounting Terms	 	 	26	 
	1.4
	 	Time	 	 	27	 
	1.5
	 	References to Agreements and Requirement of Laws	 	 	27	 
	1.6
	 	Letter of Credit Amounts	 	 	27	 
	1.7
	 	Exchange Rates; Currency Equivalents	 	 	27	 
	1.8
	 	Additional Alternative Currencies	 	 	28	 
	SECTION 2 CREDIT FACILITIES	 	 	29	 
	2.1
	 	Revolving Loans	 	 	29	 
	2.2
	 	Term Loan	 	 	31	 
	2.3
	 	Letter of Credit Subfacility	 	 	32	 
	2.4
	 	Continuations and Conversions	 	 	41	 
	2.5
	 	Minimum Amounts	 	 	42	 
	SECTION 3 GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT	 	 	42	 
	3.1
	 	Interest	 	 	42	 
	3.2
	 	Place and Manner of Payments	 	 	43	 
	3.3
	 	Prepayments	 	 	45	 
	3.4
	 	Fees	 	 	46	 
	3.5
	 	Payment in full at Maturity	 	 	47	 
	3.6
	 	Computations of Interest and Fees	 	 	47	 
	3.7
	 	Pro Rata Treatment	 	 	48	 
	3.8
	 	Sharing of Payments	 	 	48	 
	3.9
	 	Capital Adequacy	 	 	49	 
	3.10
	 	Inability To Determine Interest Rate	 	 	50	 
	3.11
	 	Illegality	 	 	51	 
	3.12
	 	Requirements of Law	 	 	51	 
	3.13
	 	Taxes	 	 	52	 
	3.14
	 	Compensation	 	 	53	 
	3.15
	 	Determination and Survival of Provisions	 	 	56	 
	SECTION 4 GUARANTY	 	 	57	 
	4.1
	 	Guaranty of Payment	 	 	57	 
	4.2
	 	Obligations Unconditional	 	 	57	 
	4.3
	 	Modifications	 	 	57	 
	4.4
	 	Waiver of Rights	 	 	58	 
	4.5
	 	Reinstatement	 	 	59	 
	4.6
	 	Remedies	 	 	59	 
	4.7
	 	Limitation of Guaranty	 	 	59	 
	4.8
	 	Rights of Contribution	 	 	60	 
	SECTION 5 CONDITIONS PRECEDENT	 	 	60	 
	5.1
	 	Closing Conditions	 	 	60	 

i

 

	 	 	 	 	 	 	 
	5.2
	 	Conditions to All Extensions of Credit	 	 	62	 
	SECTION 6 REPRESENTATIONS AND WARRANTIES	 	 	63	 
	6.1
	 	Organization and Good Standing	 	 	63	 
	6.2
	 	Due Authorization	 	 	64	 
	6.3
	 	Enforceable Obligations	 	 	64	 
	6.4
	 	No Conflicts	 	 	64	 
	6.5
	 	Consents	 	 	64	 
	6.6
	 	Financial Condition; Internal Control Event	 	 	65	 
	6.7
	 	No Material Change	 	 	65	 
	6.8
	 	Disclosure	 	 	65	 
	6.9
	 	No Default	 	 	65	 
	6.10
	 	Litigation	 	 	66	 
	6.11
	 	Taxes	 	 	66	 
	6.12
	 	Compliance with Law	 	 	66	 
	6.13
	 	Licenses, etc.	 	 	66	 
	6.14
	 	Title to Properties	 	 	66	 
	6.15
	 	Insurance	 	 	67	 
	6.16
	 	Use of Proceeds	 	 	67	 
	6.17
	 	Government Regulation	 	 	67	 
	6.18
	 	No Burdensome Restrictions	 	 	67	 
	6.19
	 	ERISA	 	 	67	 
	6.20
	 	Environmental Matters	 	 	69	 
	6.21
	 	Intellectual Property	 	 	70	 
	6.22
	 	Subsidiaries	 	 	71	 
	6.23
	 	Solvency	 	 	71	 
	6.24
	 	Indebtedness	 	 	71	 
	6.25
	 	Investments; Liens	 	 	71	 
	6.26
	 	Force Majeure	 	 	71	 
	SECTION 7 AFFIRMATIVE COVENANTS	 	 	71	 
	7.1
	 	Information Covenants	 	 	71	 
	7.2
	 	Financial Covenants	 	 	76	 
	7.3
	 	Preservation of Existence and Franchises	 	 	76	 
	7.4
	 	Books and Records	 	 	76	 
	7.5
	 	Compliance with Law	 	 	76	 
	7.6
	 	Payment of Taxes and Other Indebtedness	 	 	76	 
	7.7
	 	Insurance	 	 	77	 
	7.8
	 	Maintenance of Property	 	 	77	 
	7.9
	 	Performance of Obligations	 	 	77	 
	7.10
	 	Use of Proceeds	 	 	77	 
	7.11
	 	Audits/Inspections	 	 	77	 
	7.12
	 	Additional Credit Parties	 	 	78	 
	SECTION 8 NEGATIVE COVENANTS	 	 	78	 
	8.1
	 	Indebtedness	 	 	79	 
	8.2
	 	Guaranty Obligations	 	 	80	 
	8.3
	 	Liens	 	 	80	 
	8.4
	 	Nature of Business	 	 	81	 

ii

 

	 	 	 	 	 	 	 
	8.5
	 	Consolidation and Merger	 	 	81	 
	8.6
	 	Sale or Lease of Assets	 	 	81	 
	8.7
	 	Sale Leasebacks	 	 	82	 
	8.8
	 	Investments	 	 	82	 
	8.9
	 	Foreign Subsidiaries	 	 	82	 
	8.10
	 	Transactions with Affiliates	 	 	82	 
	8.11
	 	Fiscal Year; Accounting; Organizational Documents	 	 	83	 
	8.12
	 	No Limitations	 	 	83	 
	8.13
	 	No Other Negative Pledges	 	 	83	 
	8.14
	 	PAI Assets	 	 	83	 
	8.15
	 	Restricted Payments	 	 	83	 
	SECTION 9 EVENTS OF DEFAULT	 	 	84	 
	9.1
	 	Events of Default	 	 	84	 
	9.2
	 	Acceleration; Remedies	 	 	87	 
	9.3
	 	Allocation of Payments After Event of Default	 	 	88	 
	SECTION 10 AGENCY PROVISIONS	 	 	89	 
	10.1
	 	Appointment	 	 	89	 
	10.2
	 	Delegation of Duties	 	 	90	 
	10.3
	 	Exculpatory Provisions	 	 	90	 
	10.4
	 	Reliance on Communications	 	 	90	 
	10.5
	 	Notice of Default	 	 	91	 
	10.6
	 	Non-Reliance on Administrative Agent and Other Lenders	 	 	91	 
	10.7
	 	Indemnification	 	 	92	 
	10.8
	 	Administrative Agent in Its Individual Capacity	 	 	93	 
	10.9
	 	Successor Agent	 	 	93	 
	10.10
	 	Administrative Agent May File Proof of Claims	 	 	94	 
	SECTION 11 MISCELLANEOUS	 	 	95	 
	11.1
	 	Notices Effectiveness; Electronic Communications	 	 	95	 
	11.2
	 	Right of Set-Off, Automatic Debits	 	 	97	 
	11.3
	 	Benefit of Agreement	 	 	97	 
	11.4
	 	No Waiver; Remedies Cumulative	 	 	102	 
	11.5
	 	Payment of Expenses; Indemnification	 	 	102	 
	11.6
	 	Amendments, Waivers and Consents	 	 	104	 
	11.7
	 	Counterparts	 	 	106	 
	11.8
	 	Headings	 	 	106	 
	11.9
	 	Defaulting Lender	 	 	106	 
	11.10
	 	Survival of Indemnification and Representations and Warranties	 	 	106	 
	11.11
	 	Governing Law; Jurisdiction	 	 	106	 
	11.12
	 	Waiver of Jury Trial	 	 	107	 
	11.13
	 	Severability	 	 	107	 
	11.14
	 	Further Assurances	 	 	107	 
	11.15
	 	Confidentiality	 	 	107	 
	11.16
	 	Entirety	 	 	108	 
	11.17
	 	Binding Effect; Continuing Agreement	 	 	108	 
	11.18
	 	USA PATRIOT Act Notice	 	 	109	 
	11.19
	 	Judgment Currency	 	 	109	 

iii

 

	 	 	 	 	 	 	 
	11.20
	 	No Advisory or Fiduciary Responsibility	 	 	110	 

iv

 

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	Schedule 1.1(a)
	 	Commitment Percentages/Lending Offices
	Schedule 1.1(c)
	 	Mandatory Cost Formulae
	Schedule 6.22
	 	Subsidiaries
	Schedule 8.1(k)
	 	Indebtedness
	Schedule 8.2(a)
	 	Repurchase Agreements
	Schedule 8.2(d)
	 	Existing PAI Obligations
	Schedule 8.3
	 	Liens
	Schedule 8.6
	 	Sales of Accounts Receivable
	Schedule 8.8
	 	Investments
	Schedule 11.1
	 	Notices
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Exhibit 2.1(b)
	 	Form of Notice of Borrowing
	Exhibit 2.4
	 	Form of Notice of Continuation/Conversion
	Exhibit 7.1(c)
	 	Form of Officer’s Certificate
	Exhibit 7.12
	 	Form of Joinder Agreement
	Exhibit 11.3(b)
	 	Form of Assignment and Assumption

v

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Credit Agreement”), is entered into as of December 4,
2006 among POLARIS INDUSTRIES INC., a Minnesota corporation (the “Borrower”), certain of
the Subsidiaries of the Borrower (individually a “Guarantor” and collectively the
“Guarantors”), the Lenders (as defined herein), and BANK OF AMERICA, N.A., as Issuing
Lender and Administrative Agent for the Lenders.

RECITALS

     WHEREAS, the Borrower and the Guarantors have requested the Lenders to provide senior credit
facilities to the Borrower in an aggregate principal amount of up to $450,000,000; and

     WHEREAS, the Lenders party hereto have agreed to make the requested senior credit facilities
available to the Borrower on the terms and conditions hereinafter set forth.

     NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

SECTION 1

DEFINITIONS AND ACCOUNTING TERMS

     1.1 Definitions.

     As used herein, the following terms shall have the meanings herein specified unless the
context otherwise requires. Defined terms herein shall include in the singular number the plural
and in the plural the singular:

     “Acceptance Partnership” means Polaris Acceptance, an Illinois general
partnership.

     “Acceptance Partnership Agreement” means that certain Partnership Agreement,
dated as of February 7, 1996, between PAI and Transamerica Joint Ventures, Inc., pursuant to
which the Acceptance Partnership was created, as the same may be amended, restated or
otherwise modified from time to time.

     “Acquisition” means the acquisition by any Person of (a) all or substantially
all of the Capital Stock of another Person, (b) all or substantially all of the assets of
another Person or (c) all or substantially all of a line of business of another Person, in
each case whether or not involving a merger or consolidation with such other Person.

1

 

     “Additional Credit Party” means each Person that becomes a Guarantor after the
Closing Date, as provided in Section 7.12 or otherwise.

     “Adjusted Eurodollar Rate” means, with respect to Eurodollar Loans, the
Eurodollar Rate plus the Applicable Percentage.

     “Adjusted Leverage Ratio” means, as of the last day of each fiscal quarter, the
ratio of (a) the quotient of (i) the sum of all Funded Debt for each day during the period
of four fiscal quarters ending on such date, divided by (ii) the number of days in such
period to (b) EBITDA for the period of four fiscal quarters ending on such date.

     “Administrative Agent” means Bank of America, N.A. (or any successor thereto)
or any successor administrative agent appointed pursuant to Section 10.9.

     “Administrative Agent’s Office” means the Administrative Agent’s address and,
as appropriate, account as set forth on Schedule 11.1 or such other address or
account as the Administrative Agent may from time to time notify to the Borrower and the
Lenders.

     “Administrative Questionnaire” means an Administrative Questionnaire in a form
supplied by the Administrative Agent.

     “Affiliate” means, with respect to any Person, any other Person directly or
indirectly controlling (including but not limited to all directors and officers of such
Person), controlled by or under direct or indirect common control with such Person. A
Person shall be deemed to control a corporation if such Person possesses, directly or
indirectly, the power (a) to vote 10% or more of the securities having ordinary voting power
for the election of directors of such corporation or (b) to direct or cause direction of
the management and policies of such corporation, whether through the ownership of voting
securities, by contract or otherwise.

     “Agency Services Address” means the address listed on Schedule 11.1 or
such other address as may be identified by written notice from the Administrative Agent to
the Borrower and the Lenders.

     “Agent-Related Person” means the Administrative Agent (including any successor
administrative agent), together with its Affiliates (including, in the case of Bank of
America in its capacity as the Administrative Agent, BAS), and their respective officers,
directors, employees, agents, counsel and attorneys-in-fact.

     “Alternative Currency” means Euro and each other currency (other than Dollars)
that is approved in accordance with Section 1.8.

     “Alternative Currency Equivalent” means, at any time, with respect to any
amount denominated in Dollars, the equivalent amount thereof in the applicable Alternative
Currency as determined by the Administrative Agent or the Issuing Lender, as the case

2

 

may be, at such time on the basis of the Spot Rate (determined in respect of the most recent
Revaluation Date) for the purchase of such Alternative Currency with Dollars.

     “Alternative Currency Sublimit” means an amount equal to $95,000,000. The
Alternative Currency Sublimit is part of, and not in addition to, the Revolving Committed
Amount.

     “Applicable Percentage” means the appropriate applicable percentages
corresponding to the Adjusted Leverage Ratio in effect as of the most recent Calculation
Date as shown below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable	 	Applicable	 	Applicable	 	Applicable
	 	 	 	 	Percentage for	 	Percentage	 	Percentage for	 	Percentage
	Pricing	 	Adjusted	 	Eurodollar	 	for Eurodollar	 	Letter of Credit	 	for Facility
	Level	 	Leverage Ratio	 	Revolving Loans	 	Term Loans	 	Fees	 	Fee
	I
	 	< .75 to 1.0	 	 	.320	%	 	 	.400	%	 	 	.320	%	 	 	.080	%
	 
	 	> .75 to 1.0 but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	II
	 	< 1.50 to 1.0	 	 	.400	%	 	 	.500	%	 	 	.400	%	 	 	.100	%
	 
	 	> 1.50 to 1.0 but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	III
	 	< 2.0 to 1.0	 	 	.500	%	 	 	.625	%	 	 	.500	%	 	 	.125	%
	 
	 	> 2.0 to 1.0 but	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	IV
	 	< 2.50 to 1.0	 	 	.600	%	 	 	.750	%	 	 	.600	%	 	 	.150	%
	V
	 	> 2.5 to 1.0	 	 	.700	%	 	 	.875	%	 	 	.700	%	 	 	.175	%

The Applicable Percentage for Loans, the Letter of Credit Fees and the Facility Fees shall,
in each case, be determined and adjusted quarterly on the date (each a “Calculation
Date”) five Business Days after the date by which the Borrower is required to provide
the officer’s certificate in accordance with the provisions of Section 7.1(c);
provided that (a) the initial Applicable Percentage for Loans, the Letter of Credit
Fees and the Facility Fees shall be based on Pricing Level III (as shown above) and shall
remain at Pricing Level III until the first Calculation Date subsequent to the Closing Date
and, thereafter, the Pricing Level shall be determined by the Adjusted Leverage Ratio
calculated as of the most recent fiscal quarter end; (b) if the Borrower fails to provide
the officer’s certificate required by Section 7.1(c) on or before the most recent
Calculation Date, the Applicable Percentage for Loans, the Letter of Credit Fees and the
Facility Fees from such Calculation Date shall be based on Pricing Level V (and the Borrower
may be subject to a default rate of interest, if applicable, pursuant to Section 3.1(b))
until such time as an appropriate officer’s certificate is provided whereupon the Pricing
Level shall be determined by the then current Adjusted Leverage Ratio and (c) for purposes
of clarification, if an officer’s certificate delivered pursuant to Section 7.1(c) is found
to contain a misstatement that would have resulted in application of a higher Pricing Level
then such higher Pricing Level shall be applied retroactively and all additional amounts
resulting therefrom shall become due and payable upon demand of the Administrative Agent.
Each Applicable Percentage shall be effective from one Calculation Date until the next
Calculation Date. Any adjustment in the Applicable

3

 

Percentage shall be applicable to all existing Loans and Letters of Credit as
well as any new Loans made or Letters of Credit issued.

     “Applicable Time” means, with respect to any borrowings and payments in any
Alternative Currency, the local time in the place of settlement for such Alternative
Currency as may be determined by the Administrative Agent or the Issuing Lender, as the case
may be, to be necessary for timely settlement on the relevant date in accordance with normal
banking procedures in the place of payment.

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

     “Assignment and Assumption” means an assignment and assumption entered into by
a Lender and an Eligible Assignee (with the consent of any party whose consent is required
by Section 11.3(b), and accepted by the Administrative Agent, in substantially the form of
Exhibit 11.3(b) or any other form approved by the Administrative Agent and the
applicable Lenders).

     “Attributable Indebtedness” means, on any date, (a) in respect of any Capital
Lease of any Person, the capitalized amount thereof that would appear on a balance sheet of
such Person prepared as of such date in accordance with GAAP, (b) in respect of any
Synthetic Lease, the capitalized amount of the remaining lease payments under the relevant
lease that would appear
on a balance sheet of such Person prepared as of such date in accordance with GAAP if such
lease were accounted for as a Capital Lease, (c) in respect of any Securitization
Transaction of any Person, the outstanding principal amount of such financing, after taking
into account reserve accounts and making appropriate adjustments, determined by the
Administrative Agent in its reasonable judgment and (d) in respect of any Sale and Leaseback
Transaction, the present value (discounted in accordance with GAAP at the debt rate implied
in the applicable lease) of the obligations of the lessee for rental payments during the
term of such lease).

     “Attorney Costs” means all reasonable fees and disbursements of any law firm or
other external counsel and the reasonable allocated cost of internal legal services and all
disbursements of internal counsel.

     “Authorized Officer” means any of the president, chief financial officer, vice
president of finance, treasurer or assistant treasurer of the Borrower.

     “Bank of America” means Bank of America, N.A. or any successor thereto.

     “Bankruptcy Code” means the Bankruptcy Code in Title 11 of the United States
Code, as amended, modified, succeeded or replaced from time to time.

4

 

     “BAS” means Banc of America Securities LLC.

     “Base Rate” means for any day a fluctuating rate per annum equal to the higher
of (a) the Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such
day as publicly announced from time to time by Bank of America as its “prime rate.” The
“prime rate” is a rate set by Bank of America based upon various factors including Bank of
America’s costs and desired return, general economic conditions and other factors, and is
used as a reference point for pricing some loans, which may be priced at, above, or below
such announced rate. Any change in such rate announced by Bank of America shall take effect
at the opening of business on the day specified in the public announcement of such change.

     “Base Rate Loan” means any Loan bearing interest at a rate determined by
reference to the Base Rate. All Base Rate Loans shall be denominated in Dollars.

     “Borrower” means Polaris Industries Inc., a Minnesota corporation, together
with any successors and permitted assigns.

     “Borrower Materials” shall have the meaning set forth in Section 7.1.

     “Business Day” means any day other than a Saturday, Sunday or other day on
which commercial banks are authorized to close under the laws of, or are in fact closed in
San Francisco, California, Dallas, Texas, New York, New York, Chicago, Illinois or the state
where the Administrative Agent’s Lending Office with respect to Credit Party Obligations
denominated in Dollars is located and:

     (a) if such day relates to any interest rate settings as to a Eurodollar Loan
denominated in Dollars, any fundings, disbursements, settlements and payments in
Dollars in respect of any such Eurodollar Loan, or any other dealings in Dollars to
be carried out pursuant to this Credit Agreement in respect of any such Eurodollar
Loan, means any such day on which dealings in deposits in Dollars are conducted by
and between banks in the London interbank eurodollar market;

     (b) if such day relates to any interest rate settings as to a Eurodollar Loan
denominated in Euro, any fundings, disbursements, settlements and payments in Euro
in respect of any such Eurodollar Loan, or any other dealings in Euro to be
carried out pursuant to this Credit Agreement in respect of any such Eurodollar
Loan, means a TARGET Day;

     (c) if such day relates to any interest rate settings as to a Eurodollar Loan
denominated in a currency other than Dollars or Euro, means any such day on which
dealings in deposits in the relevant currency are conducted by and

5

 

between banks in
the London or other applicable offshore interbank market for such currency; and

     (d) if such day relates to any fundings, disbursements, settlements and
payments in a currency other than Dollars or Euro in respect of a Eurodollar Loan
denominated in a currency other than Dollars or Euro, or any other dealings in any
currency other than Dollars or Euro to be carried out pursuant to this Credit
Agreement in respect of any such Eurodollar Loan (other than any interest rate
settings), means any such day on which banks are open for foreign exchange business
in the principal financial center of the country of such currency.

     “Calculation Date” has the meaning set forth in the definition of Applicable
Percentage.

     “Capital Expenditures” means all expenditures of the Borrower and its
Subsidiaries on a consolidated basis which, in accordance with GAAP, would be classified as
capital expenditures, including, without limitation, Capital Leases.

     “Capital Lease” means, as applied to any Person, any lease of any property
(whether real, personal or mixed) by that Person as lessee which, in accordance with GAAP,
is or should be accounted for as a capital lease on the balance sheet of that Person and the
amount of such obligation shall be the capitalized amount thereof determined in accordance
with GAAP.

     “Capital Stock” means (a) in the case of a corporation, all classes of capital
stock of such corporation, (b) in the case of a partnership, partnership interests (whether
general or limited), (c) in the case of a limited liability company, membership interests
and (d) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person.

     “Cash Collateralize” means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the Issuing Lender and the Lenders, as collateral
for the LOC Obligations, cash or deposit account balances pursuant to documentation in form
and substance satisfactory to the Administrative Agent and the Issuing Lender.

     “Cash Equivalents” means (a) securities issued or directly and fully guaranteed
or insured by the United States of America or any agency or instrumentality thereof
(provided that the full faith and credit of the United States of America is pledged in
support thereof) having maturities of not more than twelve months from the date of
acquisition, (b) Dollar denominated time and demand deposits, certificates of deposit and
banker’s acceptances of (i) any Lender, (ii) any domestic commercial bank having capital and
surplus in excess of $500,000,000 or (iii) any bank whose short-term commercial paper rating
from S&P is at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the
equivalent thereof (any such bank being an “Approved Bank”), in each case with
maturities of not more than

6

 

270 days from the date of acquisition, (c) commercial paper and
variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof)
or any variable rate notes issued by, or guaranteed by, any domestic corporation rated A-1
(or the equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) or better by
Moody’s and maturing within six months of the date of acquisition, (d) repurchase agreements
with a bank or trust company (including any of the Lenders) or recognized securities dealer
having capital and surplus in excess of $500,000,000 for direct obligations issued by or
fully guaranteed by the United States of America in which the
Borrower shall have a perfected first priority security interest (subject to no other Liens)
and having, on the date of purchase thereof, a fair market value of at least 100% of the
amount of the repurchase obligations, (e) Investments in tax-exempt municipal bonds rated AA
(or the equivalent thereof) or better by S&P or Aa2 (or the equivalent thereof) or better by
Moody’s and (f) Investments, classified in accordance with GAAP as current assets, in money
market investment programs registered under the Investment Company Act of 1940, as amended,
which are administered by reputable financial institutions having capital of at least
$500,000,000 and the portfolios of which are limited to Investments of the character
described in the foregoing subdivisions (a) through (e).

     “Change of Control” means either of the following events:

     (a) any “person” or “group” (within the meaning of Section 13(d) or 14(d) of
the Exchange Act) has become, directly or indirectly, the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act), by way of merger,
consolidation or otherwise of 25% or more of the Voting Stock of the Borrower on a
fully-diluted basis, after giving effect to the conversion and exercise of all
outstanding warrants, options and other securities of the Borrower convertible into
or exercisable for Voting Stock of the Borrower (whether or not such securities are
then currently convertible or exercisable); or

     (b) during any period of twelve calendar months, individuals who at the
beginning of such period constituted the board of directors of the Borrower together
with any new members of such board of directors whose elections by such board of
directors or whose nomination for election by the stockholders of the Borrower was
approved by a vote of a majority of the members of such board of directors then
still in office who either were directors at the beginning of such period or whose
election or nomination for election was previously so approved cease for any reason
to constitute a majority of the directors of the Borrower then in office.

     “Closing Date” means the date hereof.

     “Code” means the Internal Revenue Code of 1986 and the rules and regulations
promulgated thereunder, as amended, modified, succeeded or replaced from time to time.

7

 

     “Commitment Percentage” means, for any Lender in respect of the Revolving
Commitment and/or the Term Loan Commitment of such Lender, the percentage identified as its
Commitment Percentage for such Revolving Commitment and/or Term Loan Commitment on
Schedule 1.1(a), as such percentage may be modified in connection with any
assignment made in accordance with the provisions of Section 11.3.

     “Commitments” means, (a) with respect to each Lender, the Revolving Commitment
and/or the Term Loan Commitment of such Lender and (b) with respect to the Issuing Lender,
the LOC Commitment in Dollars.

     “Credit Documents” means this Credit Agreement, any Joinder Agreement, the LOC
Documents, any Notice of Borrowing, any promissory notes and all other related agreements
and documents issued or delivered hereunder or thereunder or pursuant hereto or thereto
other than Hedging Agreements.

     “Credit Exposure” has the meaning set forth in the definition of Required
Lenders in this Section 1.1.

     “Credit Parties” means the Borrower and the Guarantors and “Credit
Party” means any one of them.

     “Credit Party Obligations” means, without duplication, (a) all of the
obligations of the Credit Parties to the Lenders (including the Issuing Lender) and the
Administrative Agent, whenever arising, under this Credit Agreement or any of the other
Credit Documents to which any Credit Party is a party and (b) all liabilities and
obligations owing from such Credit Party to any Lender, or any Affiliate of a Lender,
arising under Hedging Agreements.

     “Default” means any event, act or condition which with notice or lapse of time,
or both, would constitute an Event of Default.

     “Defaulting Lender” means, at any time, any Lender that, (a) has failed to make
a Loan or purchase a Participation Interest required pursuant to the terms of this Credit
Agreement (but only for so long as such Loan is not made or such Participation Interest is
not purchased), (b) has failed to pay to the Administrative Agent or any Lender an amount
owed by such Lender pursuant to the terms of this Credit Agreement (but only for so long as
such amount has not been paid) or (c) has been deemed insolvent or has become subject to a
bankruptcy or insolvency proceeding or to a receiver, trustee or similar official.

     “Dollars” and “$” means dollars in lawful currency of the United States
of America.

     “Dollar Equivalent” means, at any time, (a) with respect to any amount
denominated in Dollars, such amount, and (b) with respect to any amount denominated in any
Alternative Currency, the equivalent amount thereof in Dollars as determined by the
Administrative Agent or the Issuing Lender, as the case may be, at such time on the basis

8

 

of the Spot Rate (determined in respect of the most recent Revaluation Date) for the purchase
of Dollars with such Alternative Currency.

     “Domestic Subsidiary” means each direct and indirect Subsidiary of the Borrower
that (a) is domiciled or organized under the laws of any State of the United States or the
District of Columbia or (b) maintains the major portion of its assets in the United States
of America.

     “EBIT” means, for any period, with respect to the Borrower and its Subsidiaries
on a consolidated basis, (a) Net Income for such period (excluding the effect of any
extraordinary or other non-recurring gains (including any gain from the sale of property))
plus (b) an amount which, in the determination of Net Income for such period, has been
deducted for (i) Interest Expense for such period and (ii) total Federal, state, foreign or
other income taxes for such period.

     “EBITDA” means, for any period, with respect to the Borrower and its
Subsidiaries on a consolidated basis, the sum of (a) EBIT for such period plus (b) an amount
which, in the determination of Net Income for such period has been deducted for all
depreciation and amortization for such period.

     “Eligible Assets” means any assets or any business (or any substantial part
thereof) used or useful in the same or a similar line of business as the Borrower and its
Subsidiaries are engaged on the Closing Date.

     “Eligible Assignee” means any Person that meets the requirements to be an
assignee under Sections 11.3(b)(iii), (v) and (vi) (subject to such consents, if any, as may
be required under Section 11.3(b)(iii)).

     “EMU” means the economic and monetary union in accordance with the Treaty of
Rome 1957, as amended by the Single European Act 1986, the Maastricht Treaty of 1992 and the
Amsterdam Treaty of 1998.

     “EMU Legislation” means the legislative measures of the European Council for
the introduction of, changeover to or operation of a single or unified European currency.

     “Environmental Claim” means any investigation, written notice, violation,
written demand, written allegation, action, suit, injunction, judgment, order, consent
decree, penalty, fine, lien, proceeding, or written claim whether administrative, judicial,
or private in nature arising (a) pursuant to, or in connection with, an actual or alleged
violation of, any Environmental Law, (b) in connection with any Hazardous Material, (c) from
any assessment, abatement, removal, remedial, corrective, or other response action in
connection with an Environmental Law or other order of a Governmental Authority or (d) from
any actual or alleged damage, injury, threat, or harm to health, safety, natural resources,
or the environment.

9

 

     “Environmental Laws” means any current or future legal requirement of any
Governmental Authority pertaining to (a) the protection of health, safety, and the indoor or
outdoor environment, (b) the conservation, management, or use of natural resources and
wildlife, (c) the protection or use of surface water and groundwater or (d) the management,
manufacture, possession, presence, use, generation, transportation, treatment, storage,
disposal, release, threatened release, abatement, removal, remediation or handling of, or
exposure to, any hazardous or toxic substance or material or (e) pollution (including any
release to land surface water and groundwater) and includes, without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended by
the Superfund Amendments and Reauthorization Act of 1986, 42 USC 9601 et seq., Solid Waste
Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Hazardous
and Solid Waste Amendments of 1984, 42 USC 6901 et seq., Federal Water Pollution Control
Act, as amended by the Clean Water Act of 1977, 33 USC 1251 et seq., Clean Air Act of 1966,
as amended, 42 USC 7401 et seq., Toxic Substances Control Act of 1976, 15 USC 2601 et seq.,
Hazardous Materials Transportation Act, 49 USC App. 1801 et seq., Occupational Safety and
Health Act of 1970, as amended, 29 USC 651 et seq., Oil Pollution Act of 1990, 33 USC 2701
et seq., Emergency Planning and Community Right-to-Know Act of 1986, 42 USC 11001 et seq.,
National Environmental Policy Act of 1969, 42 USC 4321 et seq., Safe Drinking Water Act of
1974, as amended, 42 USC 300(f) et seq., any analogous implementing or successor law, and
any amendment, rule, regulation, order, or directive issued thereunder.

     “Equity Interests” means, with respect to any Person, all of the shares of
capital stock of (or other ownership or profit interests in) such Person, all of the
warrants, options or other rights for the purchase or acquisition from such Person of shares
of capital stock of (or other ownership or profit interests in) such Person, all of the
securities convertible into or exchangeable for shares of capital stock of (or other
ownership or profit interests in) such Person or warrants, rights or options for the
purchase or acquisition from such Person of such shares (or such other interests), and all
of the other ownership or profit interests in such Person (including partnership, member or
trust interests therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of determination.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended,
and any successor statute thereto, as interpreted by the rules and regulations thereunder,
all as the same may be in effect from time to time. References to sections of ERISA shall
be construed also to refer to any successor sections.

     “ERISA Affiliate” means an entity, whether or not incorporated, which is under
common control with the Borrower or any Subsidiary of the Borrower within the meaning of
Section 4001(a)(14) of ERISA, or is a member of a group which includes the Borrower or any
Subsidiary of the Borrower and which is treated as a single employer under Sections 414(b),
(c), (m) or (o) of the Code.

10

 

     “ERISA Event” means (a) with respect to any Single Employer or Multiple
Employer Plan, the occurrence of a Reportable Event or the substantial cessation of
operations (within the meaning of Section 4062(e) of ERISA); (b) the withdrawal of the
Borrower, any Subsidiary of the Borrower or any ERISA Affiliate from a Multiple Employer
Plan during a plan year in which it was a substantial employer (as such term is defined in
Section 4001(a)(2) of ERISA), or the termination of a Multiple Employer Plan; (c) the
distribution of a notice of intent to terminate or the actual termination of a Plan pursuant
to Section 4041(a)(2) or 4041A of ERISA; (d) the institution of proceedings to terminate or
the actual termination of any Plan by the PBGC under Section 4042 of ERISA; (e) any event or
condition which might constitute grounds under Section 4042 of ERISA for the termination of,
or the appointment of a trustee to administer, any Plan; (f) the complete or partial
withdrawal of the Borrower, any Subsidiary of the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (g) the
conditions for imposition of a lien under Section 302(f) of ERISA exist with respect to any
Plan; or (h) the adoption of an amendment to any Plan requiring the provision of security to
such Plan pursuant to Section 307 of ERISA.

     “Euro” and “EUR” mean the lawful currency of the Participating Member
States introduced in accordance with the EMU Legislation.

     “Eurodollar Loan” means a Loan bearing interest based at a rate determined by
reference to the Eurodollar Rate. Eurodollar Loans may be denominated in Dollars or in an
Alternative Currency. All Loans denominated in an Alternative Currency must be Eurodollar
Loans.

     “Eurodollar Rate” means, for the Interest Period for each Eurodollar Loan
comprising part of the same borrowing (including conversions, extensions and renewals), a
per annum interest rate (rounded upwards to the nearest 1/100 of 1%) determined pursuant to
the following formula:

	 	 	 	 	 	 	 
	 

	 	  Eurodollar Rate =
	 	       London Interbank Offered Rate	 	 
	 

	 	 	 	 

       1 — Eurodollar Reserve Percentage
	 	 

     “Eurodollar Reserve Percentage” means for any day, that percentage (expressed
as a decimal) which is in effect from time to time under Regulation D, as such regulation
may be amended from time to time or any successor regulation, as the maximum reserve
requirement (including, without limitation, any basic, supplemental, emergency, special, or
marginal reserves) applicable with respect to Eurocurrency liabilities as that term is
defined in Regulation D (or against any other category of liabilities that includes deposits
by reference to which the interest rate of Eurodollar Loans is determined), whether or not a
Lender has any Eurocurrency liabilities subject to such reserve requirement at that time.
Eurodollar Loans shall be deemed to constitute Eurocurrency liabilities and as such shall be
deemed subject to reserve requirements without benefits of credits for proration, exceptions

11

 

or offsets that may be available from time to time to a Lender. The Eurodollar Rate shall
be adjusted automatically on and as of the effective date of any change in the Eurodollar
Reserve Percentage.

     “Event of Default” shall have the meaning given such term in Section 9.1.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder, as amended, modified, succeeded or replaced
from time to time.

     “Existing Credit Agreement” means that certain Five-Year Revolving Credit
Agreement, dated as of June 25, 2004 among the Borrower, as borrower, the banks signatories
thereto, and Bank of America, as administrative agent, as amended, supplemented, extended,
renewed, restated or replaced from time to time.

     “Extension of Credit” means, as to any Lender, the making of a Loan by such
Lender (or a participation therein by a Lender) or the issuance of, or participation in, a
Letter of Credit by such Lender.

     “Facility Fees” means the fees payable to the Lenders pursuant to Section
3.4(a).

     “Federal Funds Rate” means, for any day, the rate per annum (rounded upward, if
necessary, to a whole multiple of 1/100 of 1%) equal to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on
the Business Day next succeeding such day; provided that (a) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on
the next preceding Business Day as so published on the next succeeding Business Day, and (b)
if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate
for such day shall be the average rate charged to Bank of America on such day on such
transactions as determined by the Administrative Agent.

     “Fee Letter” means that certain letter agreement, dated as of November 7, 2006,
among the Borrower, BAS and Bank of America.

     “Foreign Lender” means any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is resident for tax purposes. For
purposes of this definition, the United States, each State thereof and the District of
Columbia shall be deemed to constitute a single jurisdiction.

     “Foreign Subsidiary” means any Subsidiary of the Borrower that is not a
Domestic Subsidiary.

12

 

     “Fuji Contract” means that certain Shareholder Agreement, dated as of February
3, 1995, between Fuji Heavy Industries, Ltd. and the Borrower, providing for the Borrower’s
acquisition of 40% of the shares of Robin Manufacturing U.S.A. Inc.

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

     “Funded Debt” means, without duplication, the sum of (a) the principal amount
of all obligations of the Borrower and its Subsidiaries for borrowed money, (b) all purchase
money Indebtedness of the Borrower and its Subsidiaries, (c) the principal portion of all
obligations of the Borrower and its Subsidiaries under Capital Leases and (d) all drawn but
unreimbursed amounts under all letters of credit (other than letters of credit supporting
trade payables in the ordinary course of business) issued for the account of the Borrower or
any of its Subsidiaries.

     “GAAP” means generally accepted accounting principles in the United States
applied on a consistent basis and subject to Section 1.3.

     “Governmental Authority” means any Federal, state, local, provincial or foreign
court or governmental agency, authority, instrumentality or regulatory body.

     “Guarantor” means each of the Domestic Subsidiaries of the Borrower and each
Additional Credit Party, together with their successors and assigns.

     “Guaranty” means the guaranty of the Credit Party Obligations provided by the
Guarantors pursuant to Section 4.

     “Guaranty Obligations” means, with respect to any Person, without duplication,
any obligations (other than endorsements in the ordinary course of business of negotiable
instruments for deposit or collection) guaranteeing any Indebtedness of any other Person in
any manner, whether direct or indirect, and including without limitation any obligation,
whether or not contingent, (a) to purchase any such Indebtedness or other obligation or any
property constituting security therefor, (b) to advance or provide funds or other support
for the payment or purchase of such Indebtedness or obligation or to maintain working
capital, solvency or other balance sheet condition of such other Person (including, without
limitation, maintenance agreements, comfort letters, take or pay arrangements, put
agreements or similar agreements or arrangements) for the benefit of the holder of
Indebtedness of such other Person, (c) to purchase or lease property, securities or services
for the purpose of assuring the obligee in respect of such Indebtedness or other obligation
of the payment or performance of such Indebtedness or other obligation, or (d) to otherwise
assure or hold harmless the owner of such Indebtedness or obligation against loss in respect
thereof. The amount of any Guaranty Obligation hereunder shall (subject to any limitations
set forth therein) be deemed to be an amount equal to the outstanding principal amount (or
maximum

13

 

principal amount, if larger) of the Indebtedness in respect of which such Guaranty
Obligation is made, or, if less, the maximum amount for which such Person may be liable
under the terms of the instruments evidencing such Guaranty Obligation.

     “Hazardous Materials” means any substance, material or waste defined in or
regulated under any Environmental Laws.

     “Hedging Agreements” means, collectively, interest rate protection agreements,
foreign currency exchange agreements, commodity purchase or option agreements or other
interest or exchange rate or commodity price hedging agreements, in each case, entered into
or purchased by a Credit Party.

     “Indebtedness” of any Person means, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments, or upon which interest payments are customarily
made, (c) all obligations of such Person under conditional sale or other title retention
agreements relating to property purchased by such Person to the extent of the value of such
property (other than customary reservations or retentions of title under agreements with
suppliers entered into in the ordinary course of business), (d) all obligations, other than
intercompany items, of such Person issued or assumed as the deferred purchase price of
property or services purchased by such Person which would appear as liabilities on a balance
sheet of such Person, (e) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien
on, or payable out of the proceeds of production from, property owned or acquired by such
Person, whether or not the obligations secured thereby have been assumed, (f) all Guaranty
Obligations of such Person, (g) the Attributable Indebtedness of such Person, (h) all
obligations of such Person to purchase, redeem, retire, defease or otherwise make any
payment in respect of any Equity Interest in such Person or any other Person or any warrant,
right or option to acquire such Equity Interest, valued, in the case of a redeemable
preferred interest, at the greater of its voluntary or involuntary liquidation preference
plus accrued and unpaid dividends, (i) all net obligations of such Person in respect
of Hedging Agreements, (j) the maximum amount of all performance and standby letters of
credit issued or bankers’ acceptances facilities created for the account of such Person and,
without duplication, all drafts drawn thereunder (to the extent unreimbursed), and (k) the
aggregate amount of uncollected accounts receivable of such Person subject at such time to a
sale of receivables (or similar transaction) unless such transaction is effected without
recourse to such Person. The Indebtedness of any Person shall include the Indebtedness of
any partnership or unincorporated joint venture to the extent such Indebtedness is recourse
to such Person.

     “Indemnitees” has the meaning specified in Section 11.5(b).

14

 

     “Interest Coverage Ratio” means, as of the last day of each fiscal quarter, the
ratio of (a) EBIT for the period of four fiscal quarters ending on such date to (b) Interest
Expense for the period of four fiscal quarters ending on such date.

     “Interest Expense” means, for any period, with respect to the Borrower and its
Subsidiaries on a consolidated basis, all interest expense including the interest component
under Capital Leases, as determined in accordance with GAAP.

     “Interest Payment Date” means (a) as to Base Rate Loans, the last Business Day
of each calendar month and the Maturity Date and (b) as to Eurodollar Loans, the last day of
each applicable Interest Period and the Maturity Date and in addition, where the applicable
Interest Period for a Eurodollar Loan is greater than three months, then also the date three
months from the beginning of the Interest Period and each three months thereafter.

     “Interest Period” means, as to Eurodollar Loans, a period of seven, fourteen or
twenty-one days’ duration or one, two, three or six months’ duration, as the Borrower may
elect, commencing, in each case, on the date of the borrowing (including continuations and
conversions thereof); provided, however, (a) if any Interest Period would
end on a day which is not a Business Day, such Interest Period shall be extended to the next
succeeding Business Day (except that where the next succeeding Business Day falls in the
next succeeding calendar month, then on the next preceding Business Day), (b) no Interest
Period shall extend beyond the Maturity Date and (c) where an Interest Period begins on a
day for which there is no numerically corresponding day in the calendar month in which the
Interest Period is to end, such Interest Period shall end on the last Business Day of such
calendar month.

     “Internal Control Event” means a material weakness in, or fraud that involves
management or other employees who have a significant role in, the Borrower’s internal
controls over financial reporting, in each case as described in the Securities Laws.

     “Investment” in any Person means (a) the acquisition (whether for cash,
property, services, assumption of Indebtedness, securities or otherwise, but excluding
Capital Expenditures and acquisitions of inventory in the ordinary course of business) of
assets, shares of Capital Stock, bonds, notes, debentures, partnership, joint ventures or
other ownership interests or other securities of such other Person or (b) any deposit with,
or advance, loan or other extension of credit to, such Person (other than deposits made in
connection with the lease or purchase of equipment, inventory or other assets in the
ordinary course of business) or (c) any other capital contribution to or investment in such
Person, including, without limitation, any Guaranty Obligation (including any support for a
letter of credit issued on behalf of such Person) incurred for the benefit of such Person.

     “Issuing Lender” means Bank of America (or any successor thereto) or such other
consenting Lender approved by Bank of America in its sole discretion.

     “Issuing Lender Fees” has the meaning set forth in Section 3.4(b).

15

 

\

     “Joinder Agreement” means a Joinder Agreement substantially in the form of
Exhibit 7.12.

     “Laws” means, collectively, all international, foreign, Federal, state and
local statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the interpretation or
administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative orders, directed
duties, requests, licenses, authorizations and permits of, and agreements with, any
Governmental Authority, in each case whether or not having the force of law.

     “Lender” means any of the Persons identified as a “Lender” on the signature
pages hereto, and any Eligible Assignee which may become a Lender by way of assignment in
accordance with the terms hereof, together with their successors and permitted assigns.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described in the Administrative Questionnaire, or such other office or offices as a Lender
may from time notify to the Borrower and the Administrative Agent.

     “Letter of Credit” means any letter of credit issued for the account of the
Borrower by the Issuing Lender pursuant to Section 2.3, as such letter of credit may be
amended, modified, extended, renewed or replaced. Letters of Credit may be issued in
Dollars or in an Alternative Currency.

     “Letter of Credit Application” means an application and agreement for the
issuance or amendment of a Letter of Credit in the form from time to time in use by the
Issuing Lender.

     “Letter of Credit Expiration Date” means the day that is seven days prior to
the Maturity Date then in effect (or, if such day is not a Business Day, the next preceding
Business Day).

     “Leverage Ratio” means, as of the last day of each fiscal quarter, the ratio of
(a) Funded Debt on such date to (b) EBITDA for the period of four fiscal quarters ending on
such date.

     “Lien” means any mortgage, pledge, hypothecation, assignment, deposit
arrangement, security interest, encumbrance, lien (statutory or otherwise), preference,
priority or charge of any kind, including, without limitation, any agreement to give any of
the foregoing, any conditional sale or other title retention agreement, and any lease in the
nature thereof.

16

 

     “Loan” or “Loans” means the Revolving Loans or the Term Loans (or a
portion of any Revolving Loan or Term Loan bearing interest at the Base Rate or the Adjusted
Eurodollar Rate and referred to as a Base Rate Loan or a Eurodollar Loan), individually or
collectively, as appropriate.

     “LOC Commitment” means the commitment of the Issuing Lender to issue Letters of
Credit for the account of the Borrower in an aggregate face amount any time outstanding
(together with the amounts of any unreimbursed drawings thereon) of up to the LOC Committed
Amount.

     “LOC Committed Amount” means FIFTEEN MILLION DOLLARS ($15,000,000). The LOC
Committed Amount is part of, and not in addition to, the Revolving Committed Amount.

     “LOC Documents” means, with respect to any Letter of Credit, such Letter of
Credit, any amendments thereto, any documents delivered in connection therewith, any
application therefor (including all Letter of Credit Applications), and any agreements,
instruments, guarantees or other documents (whether general in application or applicable
only to such Letter of Credit) governing or providing for (a) the rights and obligations of
the parties concerned or at risk or (b) any collateral security for such obligations.

     “LOC Obligations” means, at any time, the sum, without duplication, of (a) the
maximum amount which is, or at any time thereafter may become, available to be drawn under
Letters of Credit then outstanding, assuming compliance with all requirements for drawings
referred to in such Letters of Credit plus (b) the aggregate amount of all drawings
under Letters of Credit honored by the Issuing Lender but not theretofore reimbursed.

     “London Interbank Offered Rate” means:

17

 

     (a) with respect to any Eurodollar Loan for Interest Periods of one, two, three or six
months’ duration applicable thereto, the rate per annum equal to the British Bankers
Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially
available source providing quotations of BBA LIBOR as designated by the Administrative Agent
from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the
commencement of such Interest Period, for deposits in the relevant currency (for delivery on
the first day of such Interest Period) with a term equivalent to such Interest Period, or

     (b) with respect to any Eurodollar Loan for Interest Periods of seven, fourteen or
twenty-one days’ duration applicable thereto, the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate that appears on the page of
the Telerate screen (or any successor thereto) that displays an average British Bankers
Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day
of such Interest Period) with a term equivalent to such Interest Period, determined as of
approximately 11:00 a.m. (London time) two Business Days prior to the first day of such
Interest Period, for deposits in the relevant currency (for delivery on the first day of
such Interest Period) with a term equivalent to such Interest Period, or

     (c) with respect to any Eurodollar Loan for any Interest Period applicable thereto, if
the rates referenced in the preceding clauses (a) or (b) do not appear on such page or
service or such page or service shall not be available, the rate per annum determined by the
Administrative Agent to be the rate at which deposits in the relevant currency for delivery
on the first day of such Interest Period in Same Day Funds in the approximate amount of the
Eurodollar Loan being made, continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of America’s London Branch (or
other Bank of America branch or Affiliate) to major banks in the London or other offshore
interbank market for such currency at their request at approximately 11:00 a.m. (London
time) two Business Days prior to the commencement of such Interest Period.

     “Mandatory Borrowing” has the meaning set forth in Section 2.3(d).

     “Mandatory Cost” means, with respect to any period, the percentage rate per
annum determined in accordance with Schedule 1.1(c).

     “Material Adverse Effect” means a material adverse effect on (a) the business,
assets, liabilities (actual or contingent), operations, condition (financial or otherwise)
or prospects of the Borrower and its Subsidiaries taken as a whole, (b) the ability of the
Borrower, or of the Credit Parties taken as a whole, to perform its or their obligations
under this Credit Agreement or any of the other Credit Documents, or (c) the validity or
enforceability of this Credit Agreement or any of the other Credit Documents, or the
material rights and remedies of the Lenders hereunder or thereunder taken as a whole.

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     “Maturity Date” means December 2, 2011.

     “Moody’s” means Moody’s Investors Service, Inc., or any successor or assignee
of the business of such company in the business of rating securities.

     “Multiemployer Plan” means a Plan which is a multiemployer plan as defined in
Sections 3(37) or 4001(a)(3) of ERISA.

     “Multiple Employer Plan” means a Plan covered by Title IV of ERISA (other than
a Multiemployer Plan) in which the Borrower, any Subsidiary of the Borrower or any ERISA
Affiliate and at least one employer other than the Borrower, any Subsidiary of the Borrower
or any ERISA Affiliate are contributing sponsors.

     “Net Income” means, for any period, the net income after taxes for such period
of the Borrower and its Subsidiaries on a consolidated basis, as determined in accordance
with GAAP.

     “Notice of Borrowing” means a request by the Borrower for a Loan, in the form
of Exhibit 2.1(b).

     “Notice of Continuation/Conversion” means a request by the Borrower to continue
an existing Eurodollar Loan to a new Interest Period or to convert a Eurodollar Loan to a
Base Rate Loan or a Base Rate Loan to a Eurodollar Loan, in the form of Exhibit 2.4.

     “Overnight Rate” means, for any day, (a) with respect to any amount denominated
in Dollars, the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined
by the Administrative Agent or the Issuing Lender, as the case may be, in accordance with
banking industry rules on interbank compensation, and (b) with respect to any amount
denominated in an Alternative Currency, the rate of interest per annum at which overnight
deposits in the applicable Alternative Currency, in an amount approximately equal to the
amount with respect to which such rate is being determined, would be offered for such day by
a branch or Affiliate of Bank of America in the applicable offshore interbank market for
such currency to major banks in such interbank market.

     “PAI” means Polaris Acceptance, Inc., a Minnesota corporation.

     “Participating Member State” means each state so described in any EMU
Legislation.

     “Participation Interest” means the Extension of Credit by a Lender by way of a
purchase of a participation in Letters of Credit or LOC Obligations as provided in Section
2.3 or in any Loans as provided in Section 3.8.

19

 

     “Participant” shall have the meaning assigned to such term in Section 11.3(d).

     “PBGC” means the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA and any successor thereto.

     “PCAOB” means the Public Company Accounting Oversight Board.

     “Permitted Acquisition” means an Acquisition by a Credit Party or any of its
Subsidiaries for consideration no greater than the fair market value of the Capital Stock or
property acquired; provided that (a) the property acquired (or the property of the
Person acquired) in such Acquisition constitutes Eligible Assets (or goodwill associated
therewith), (b) in the case of an Acquisition of the Capital Stock of another Person, the
board of directors (or other comparable governing body) of such other Person shall have duly
approved such Acquisition, (c) if the aggregate consideration to be paid for such
Acquisition equals or exceeds $25,000,000 (including, without limitation, the amount of any
Indebtedness assumed in connection with such Acquisition), the Borrower shall have delivered
to the Administrative Agent, prior to the closing of such Acquisition, a certificate of an
Authorized Officer of the Borrower (i) providing calculations on a pro forma
basis of each of the financial covenants set forth in Section 7.2 by giving effect to such
Acquisition both (A) as of the actual date of such Acquisition and (B) as of the first day
of the most recently ended fiscal quarter, which calculations shall demonstrate that, as of
each such date, the Credit Parties are or would have been in compliance with all of the
financial covenants set forth in Section 7.2 and (ii) both before and after giving effect to
such Acquisition, no Default or Event of Default exists, (d) the representations and
warranties made by the Credit Parties in any Credit Document shall be true and correct in
all material respects at and as if made as of the date of such Acquisition (after giving
effect thereto) except to the extent such representations and warranties expressly relate to
an earlier date, (e) subsequent to the Closing Date, (i) the aggregate consideration paid
and Investments made with respect to all Acquisitions (including, without limitation,
Indebtedness assumed in connection with such Acquisitions) shall not exceed $300,000,000 and
(ii) the aggregate amount of Indebtedness assumed in connection with all Acquisitions shall
not exceed $150,000,000, (f) if such Acquisition involves the formation of a new Subsidiary
of the Borrower, such Subsidiary shall comply with Section 7.12 and (g) such Acquisition is
undertaken in accordance with all laws, rules, regulations, orders, writs, judgments,
injunctions, decrees and awards to which any party to such Acquisition may be subject.

     “Permitted Investments” means Investments which are, without duplication, (a)
cash or Cash Equivalents, (b) trade accounts receivable created, acquired or made in the
ordinary course of business and payable or dischargeable in accordance with customary trade
terms, (c) inventory, raw materials and general intangibles acquired in the ordinary course
of business, (d) Investments by a Credit Party in another Credit Party, (e) Permitted
Acquisitions, (f) travel advances to management personnel and employees in the ordinary
course of business, (g) Investments existing as of the Closing Date and set forth on
Schedule

20

 

 8.8, (h) additional Investments in Foreign Subsidiaries that do not exceed
$25,000,000 in the aggregate during the term of this Credit Agreement, (i) additional
Investments made pursuant to the Fuji Contract or pursuant to an expansion of the engine
manufacturing facility contemplated thereby that do not exceed $10,000,000 in the aggregate
during the term of this Credit Agreement, (j) in accordance with Section 8.2, the existing
Investments on Schedule 8.2(d) plus additional Investments in the form of capital
contributions by PAI in Acceptance Partnership (or by the Borrower in PAI to make such
capital contributions) in an amount not to exceed $30,000,000 in the aggregate, during the
term of this Credit Agreement; it being understood that the Borrower may not have or make
any Investments in Acceptance Partnership or PAI that constitute Guaranty Obligations (other
than the obligation regarding capital contributions as set forth herein), (k) additional
Investments in KTM Power Sports AG, an Austrian corporation, in an amount not to exceed
$10,000,000 and (l) additional Investments (in addition to those set forth above) not to
exceed, in the aggregate, $15,000,000 during the term of this Credit Agreement.

     “Permitted Liens” means (a) Liens securing all Credit Party Obligations, (b)
Liens for taxes not yet due or Liens for taxes being contested in good faith by appropriate
proceedings for which adequate reserves determined in accordance with GAAP have been
established (and as to which the property subject to any such Lien is not yet subject to
foreclosure, sale, collection, levy or loss on account thereof), (c) Liens in respect of
property imposed by law arising in the ordinary course of business such as materialmen’s,
mechanics’, warehousemen’s, carrier’s, landlords’ and other nonconsensual statutory Liens
which are not yet due and payable or which are being contested in good faith by appropriate
proceedings for which adequate reserves determined in accordance with GAAP have been
established (and as to which the property
subject to any such Lien is not yet subject to
foreclosure, sale or loss on account thereof), (d) Liens (other than Liens imposed under
ERISA) consisting of pledges or deposits made in the ordinary course of business to secure
payment of worker’s compensation insurance, unemployment insurance, pensions or social
security programs, (e) Liens arising from good faith deposits in connection with or to
secure performance of tenders, bids, leases, government contracts, performance and
return-of-money bonds and other similar obligations incurred in the ordinary course of
business (other than obligations in respect of the payment of borrowed money), (f) Liens
arising from good faith deposits in connection with or to secure performance of statutory
obligations and surety and appeal bonds, (g) easements, rights-of-way, restrictions
(including zoning restrictions), matters of plat, minor defects or irregularities in title
and other similar charges or encumbrances not, in any material respect, impairing the use of
the encumbered property for its intended purposes, (h) judgment Liens that would not
constitute an Event of Default, (i) Liens in connection with Indebtedness permitted by
Section 8.1(d), (j) Liens arising by virtue of any statutory or common law provision
relating to banker’s liens, rights of setoff or similar rights as to deposit accounts or
other funds maintained with a creditor depository institution and (k) Liens existing on the
date hereof and identified on Schedule 8.3 and any renewals and extensions thereof
not otherwise prohibited by this Credit Agreement; provided that, with respect to
Liens identified on Schedule 8.3, (i) no such Lien shall extend to any property

21

 

other than the property subject thereto on the Closing Date and (ii) the principal amount of
the Indebtedness secured by such Liens shall not be increased.

     “Person” means any individual, partnership, joint venture, firm, corporation,
limited liability company, association, trust or other enterprise (whether or not
incorporated), or any Governmental Authority.

     “Plan” means any employee benefit plan (as defined in Section 3(3) of ERISA)
which is covered by ERISA and with respect to which the Borrower, any Subsidiary of the
Borrower or any ERISA Affiliate is (or, if such plan were terminated at such time, would
under Section 4069 of ERISA be deemed to be) an “employer” within the meaning of Section
3(5) of ERISA.

     “Real Properties” has the meaning given thereto in Section 6.20.

     “Register” has the meaning given thereto in Section 11.3(c).

     “Regulation A, D, T, U or X” means Regulation A, D, T, U or X, respectively, of
the Board of Governors of the Federal Reserve System as from time to time in effect and any
successor to all or a portion thereof.

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

     “Reportable Event” means any of the events set forth in Section 4043(c) of
ERISA, other than those events as to which the notice requirement has been waived by
regulation or by the PBGC.

     “Required Lenders” means, Lenders (other than Defaulting Lenders) holding in
the aggregate at least a majority of (i) the Revolving Commitments (and Participation
Interests therein) and the outstanding Term Loans (and Participation Interests therein) or
(ii) if the Revolving Commitments have been terminated, the outstanding Revolving Loans,
Term Loans, LOC Obligations and Participation Interests (including the Participation
Interests of the applicable Issuing Lender in any Letters of Credit issued by such Issuing
Lender).

     “Restricted Payment” by the Borrower or any of its Subsidiaries means (i) any
dividend or other payment or distribution, direct or indirect, on account of any shares of
any class of Capital Stock of such Person, now or hereafter outstanding (including without
limitation any payment in connection with any dissolution, merger, consolidation or
disposition involving such Person), or to the holders, in their
capacity as such, of any shares of any class of Capital Stock of such Person, now or hereafter outstanding (other
than dividends or distributions payable in Capital Stock of the applicable Person and other
than dividends or distributions payable (directly or indirectly through Subsidiaries) to any
Credit

22

 

Party), (ii) any redemption, retirement, sinking fund or similar payment, purchase or
other acquisition for value, direct or indirect, of any shares of any class of Capital Stock
of such Person, now or hereafter outstanding, or (iii) any payment made to retire, or to
obtain the surrender of, any outstanding warrants, options or other rights to acquire shares
of any class of Capital Stock of such Person, now or hereafter outstanding (excluding the
issuance of Capital Stock by such Person).

     “Requirement of Law” means, as to any Person, the articles or certificate of
incorporation and by-laws or other organizational or governing documents of such Person, and
any law, treaty, rule or regulation or final, non-appealable determination of an arbitrator
or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or to which any of its
material property is subject.

     “Revaluation Date” means (a) with respect to any Loan, each of the following:
(i) each date of a borrowing of a Eurodollar Loan denominated in an Alternative Currency,
(ii) each date of a continuation of a Eurodollar Loan denominated in an Alternative Currency
pursuant to Section 2.1, and (iii) such additional dates as the Administrative Agent shall
determine or the Required Lenders shall require; and (b) with respect to any Letter of
Credit, each of the following: (i) each date of issuance of a Letter of Credit denominated
in an Alternative Currency, (ii) each date of an amendment of any such Letter of Credit
having the effect of increasing the amount thereof (solely with respect to the increased
amount), (iii) each date of any payment by the Issuing Lender under any Letter of Credit
denominated in an Alternative Currency, and (iv) such additional dates as the Administrative
Agent or the Issuing Lender shall determine or the Required Lenders shall require.

     “Revolving Commitment” means, with respect to each Revolving Lender, the
Commitment Percentage of such Revolving Lender multiplied by the Revolving Committed Amount
in Dollars.

     “Revolving Committed Amount” means TWO HUNDRED FIFTY MILLION DOLLARS
($250,000,000) or such lesser amount to which the Revolving Committed Amount may be reduced
pursuant to Section 2.1(d).

     “Revolving Lender” means a collective reference to the Lenders holding
Revolving Loans or Revolving Commitments.

     “Revolving Loan” or “Revolving Loans” means the Loans (or a portion of
any Loan), individually or collectively, as appropriate, made to the Borrower pursuant to
Section 2.1.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or any successor or assignee of the business of such division in the
business of rating securities.

23

 

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

     “Sale and Leaseback Transaction” means, with respect to the Borrower or any
Subsidiary, any arrangement, directly or indirectly, with any Person whereby the Borrower or
such Subsidiary shall sell or transfer any property used or useful in its business, whether
now owned or hereafter acquired, and thereafter rent or lease such property or other
property that it intends to use for substantially the same purpose or purposes as the
property being sold or transferred.

     “Same Day Funds” means (a) with respect to disbursements and payments in
Dollars, immediately available funds, and (b) with respect to disbursements and payments in
an Alternative Currency, same day or other funds as may be determined by the Administrative
Agent or the Issuing Lender, as the case may be, to be customary in the place of
disbursement or payment for the settlement of international banking transactions in the
relevant Alternative Currency.

     “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder, as amended, modified, succeeded or replaced from
time to time.

     “Securities Laws” means the Securities Act, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards
and practices promulgated, approved or incorporated by the SEC or the PCAOB.

     “Securitization Transaction” means, with respect to any Person, any financing
transaction or series of financing transactions (including factoring arrangements) pursuant
to which such Person or any Subsidiary of such Person may sell, convey or otherwise
transfer, or grant a security interest in, accounts, payments, receivables, rights to future
lease payments or residuals or similar rights to payment to a special purpose subsidiary or
affiliate of such Person.

     “Single Employer Plan” means any Plan which is covered by Title IV of ERISA,
but which is not a Multiemployer Plan or a Multiple Employer Plan.

     “Solvent” means, with respect to any Person as of a particular date, that on
such date (a) such Person is able to pay its debts and other liabilities, contingent
obligations and other commitments as they mature in the normal course of business, (b) such
Person does not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay as such debts and liabilities mature in their ordinary
course, (c) such Person is not engaged in a business or a transaction, and is not about to
engage in a business or a transaction, for which such Person’s assets would constitute
unreasonably small capital after

24

 

giving due consideration to the prevailing practice in the
industry in which such Person is engaged or is to engage, (d) the fair value of the assets
of such Person is greater than the total amount of liabilities, including, without
limitation, contingent liabilities, of such Person and (e) the present fair saleable value
of the assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and matured. In
computing the amount of contingent liabilities at any time, it is intended that such
liabilities will be computed at the amount which, in light of all the facts and
circumstances existing at such time, represents the amount that can reasonably be expected
to become an actual or matured liability.

     “Spot Rate” for a currency means the rate determined by the Administrative
Agent or the Issuing Lender, as applicable, to be the rate quoted by the Person acting in
such capacity as the spot rate for the purchase by such Person of such currency with another
currency through its principal foreign exchange trading office at approximately 11:00 a.m.
on the date two Business Days prior to the date as of which the foreign exchange computation
is made; provided that the Administrative Agent or the Issuing Lender may obtain
such spot rate from another financial institution designated by the Administrative Agent or
the Issuing Lender if the Person acting in such capacity does not have as of the date of
determination a spot buying rate for any such currency; and provided further
that the Issuing Lender may use such spot rate quoted on the date as of which the foreign
exchange computation is made in the case of any Letter of Credit denominated in an
Alternative Currency.

     “Subsidiary” means, as to any Person, (a) any corporation more than 50% of
whose stock of any class or classes having by the terms thereof ordinary voting power to
elect a majority of the directors of such corporation (irrespective of whether or not at the
time, any class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time owned by such Person directly or
indirectly through Subsidiaries, and (b) any partnership, association, joint venture or
other entity in which such person directly or indirectly through Subsidiaries has more than
a 50% equity interest at any time.

     “Synthetic Lease” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing arrangement whereby the
arrangement is considered borrowed money indebtedness for tax purposes but is classified as
an operating lease or does not otherwise appear on a balance sheet under GAAP.

     “TARGET Day” means any day on which the Trans-European Automated Real-time
Gross Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases
to be operative, such other payment system (if any) determined by the Administrative Agent
to be a suitable replacement) is open for the settlement of payments in Euro.

25

 

     “Term Lender” means a collective reference to the Lenders holding Term Loans or
Term Loan Commitments.

     “Term Loan” or “Term Loans” means the Loans (or a portion of any Loan),
individually or collectively, as appropriate, made to the Borrower pursuant to Section 2.2.

     “Term Loan Commitment” means, with respect to each Term Lender, the Commitment
Percentage of such Term Lender multiplied by the Term Loan Committed Amount in Dollars.

     “Term Loan Committed Amount” means TWO HUNDRED MILLION DOLLARS ($200,000,000).

     “Total Assets” means all items that in accordance with GAAP would be classified
as assets of the Borrower and its Subsidiaries on a consolidated basis.

     “Voting Stock” means all classes of the Capital Stock of such Person then
outstanding and normally entitled to vote in the election of directors (or similar governing
authority).

     1.2 Computation of Time Periods and Other Definitional Provisions.

     For purposes of computation of periods of time hereunder, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding.” References in this Credit
Agreement to “Articles”, “Sections”, “Schedules” or “Exhibits” shall be to Articles, Sections,
Schedules or Exhibits of or to this Credit Agreement unless otherwise specifically provided.

     1.3 Accounting Terms.

     Except as otherwise expressly provided herein, all accounting terms used herein shall be
interpreted, and all financial statements and certificates and reports as to financial matters
required to be delivered to the Lenders hereunder shall be prepared, in accordance with GAAP
applied on a consistent basis. All calculations made for the purposes of determining compliance
with this Credit Agreement shall (except as otherwise expressly provided herein) be made by
application of GAAP applied on a basis consistent with the most recent annual or quarterly
financial statements delivered pursuant to Section 7.1 (or, prior to the delivery of the first
financial statements pursuant to Section 7.1, consistent with the financial statements delivered
pursuant to Section 5.1(d)); provided, however, if (a) the Borrower shall object to
determining such compliance on such basis at the time of delivery of such financial statements due
to any change in GAAP or the rules promulgated with respect thereto or (b) the Administrative Agent
or the Required Lenders shall so object in writing within 30 days after delivery of such financial
statements, then such calculations shall be made on a basis consistent with GAAP as in effect as of
the date of the most recent financial statements delivered by the Borrower to the Lenders to which
no such objection shall have been made.

26

 

     1.4 Time.

     All references to time herein shall be references to Eastern Standard Time or Eastern Daylight
time, as the case may be, unless specified otherwise.

     1.5 References to Agreements and Requirement of Laws.

     Unless otherwise expressly provided herein: (a) references to organization documents,
agreements (including the Credit Documents) and other contractual instruments shall be deemed to
include all subsequent amendments, restatements, extensions, supplements and other modifications
thereto, but only to the extent that such amendments, restatements, extensions, supplements and
other modifications are not prohibited by any Credit Document and (b) references to any Requirement
of Law shall include all statutory and regulatory provisions consolidating, amending, replacing,
supplementing or interpreting such Requirement of Law.

     1.6 Letter of Credit Amounts.

     Unless otherwise specified, all references herein to the amount of a Letter of Credit at any
time shall be deemed to mean the Dollar Equivalent of the maximum face amount of such Letter of
Credit after giving effect to all increases thereof contemplated by such Letter of Credit or the
LOC Documents related thereto, whether or not such maximum face amount is in effect at such time.

     1.7 Exchange Rates; Currency Equivalents.

     (a) The Administrative Agent or the Issuing Lender, as applicable, shall determine the
Spot Rates as of each Revaluation Date to be used for calculating Dollar Equivalent amounts
of extensions of credit denominated in Alternative Currencies. Such Spot Rates shall become
effective as of such Revaluation Date and shall be the Spot Rates employed in converting any
amounts between the applicable currencies until the next Revaluation Date to occur. Except
for purposes of financial statements delivered by Credit Parties hereunder or calculating
financial covenants hereunder or except as otherwise provided herein, the applicable amount
of any currency (other than Dollars) for purposes of the Credit Documents shall be such
Dollar Equivalent amount as so determined by the Administrative Agent or the Issuing Lender,
as applicable.

     (b) Wherever in this Credit Agreement in connection with a borrowing, conversion,
continuation or prepayment of a Eurodollar Loan or the issuance, amendment or extension of a
Letter of Credit, an amount, such as a required minimum or multiple amount, is expressed in
Dollars, but such borrowing, Eurodollar Loan or Letter of Credit is denominated in an
Alternative Currency, such amount shall be the relevant Alternative Currency Equivalent of
such Dollar amount (rounded to the nearest unit of such

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Alternative Currency, with 0.5 of a
unit being rounded upward), as determined by the Administrative Agent or the Issuing Lender,
as the case may be.

     1.8 Additional Alternative Currencies.

     (a) The Borrower may from time to time request that Eurodollar Loans be made
and/or Letters of Credit be issued in a currency other than those specifically listed in the
definition of “Alternative Currency;” provided that such requested currency is a
lawful currency (other than Dollars) that is readily available and freely transferable and
convertible into Dollars. In the case of any such request with respect to the making of
Eurodollar Loans, such request shall be subject to the approval of the Administrative Agent
and the Lenders; and in the case of any such request with respect to the issuance of Letters
of Credit, such request shall be subject to the approval of the Administrative Agent and the
Issuing Lender.

     (b) Any such request shall be made to the Administrative Agent not later than 11:00
a.m., 20 Business Days prior to the date of the desired Extension of Credit (or such other
time or date as may be agreed by the Administrative Agent and, in the case of any such
request pertaining to Letters of Credit, the Issuing Lender, in its or their sole
discretion). In the case of any
such request pertaining to Eurodollar Loans, the Administrative Agent shall promptly
notify each Lender thereof; and in the case of any such request pertaining to Letters of
Credit, the Administrative Agent shall promptly notify the Issuing Lender thereof. Each
Lender (in the case of any such request pertaining to Eurodollar Loans) or the Issuing
Lender (in the case of a request pertaining to Letters of Credit) shall notify the
Administrative Agent, not later than 11:00 a.m., ten Business Days after receipt of such
request whether it consents, in its sole discretion, to the making of Eurodollar Loans or
the issuance of Letters of Credit, as the case may be, in such requested currency.

     (c) Any failure by a Lender or the Issuing Lender, as the case may be, to respond to
such request within the time period specified in the preceding sentence shall be deemed to
be a refusal by such Lender or the Issuing Lender, as the case may be, to permit Eurodollar
Loans to be made or Letters of Credit to be issued in such requested currency. If the
Administrative Agent and all the Lenders consent to making Eurodollar Loans in such
requested currency, the Administrative Agent shall so notify the Borrower and such currency
shall thereupon be deemed for all purposes to be an Alternative Currency hereunder for
purposes of any borrowings of Eurodollar Loans; and if the Administrative Agent and the
Issuing Lender consent to the issuance of Letters of Credit in such requested currency, the
Administrative Agent shall so notify the Borrower and such currency shall thereupon be
deemed for all purposes to be an Alternative Currency hereunder for purposes of any Letter
of Credit issuances. If the Administrative Agent shall fail to obtain consent to any
request for an additional currency under this Section 1.8, the Administrative
Agent shall promptly so notify the Borrower.

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SECTION 2

CREDIT FACILITIES

     2.1 Revolving Loans.

     (a) Revolving Loan Commitment. Subject to the terms and conditions set forth
herein, including but not limited to Section 5.2, each Revolving Lender severally agrees to
make revolving loans to the Borrower, in Dollars or in one or more Alternative Currencies,
at any time and from time to time, during the period from and including the Closing Date to
but not including the Maturity Date (or such earlier date if the Revolving Committed Amount
has been terminated as provided herein); provided, however, that (i) the sum
of the aggregate amount of the Dollar Equivalent amount of Revolving Loans outstanding plus
the Dollar Equivalent amount of the aggregate amount of LOC Obligations outstanding shall
not exceed the Revolving Committed Amount, (ii) with respect to each individual Revolving
Lender, the Revolving Lender’s pro rata share of outstanding Revolving Loans plus such
Revolving Lender’s pro rata share of outstanding LOC Obligations shall not exceed such
Revolving Lender’s Commitment Percentage of the Revolving Committed Amount and (iii) the
aggregate amount of Revolving Loans denominated in Alternative Currencies shall not exceed
the Alternative Currency Sublimit. Subject to the terms of this Credit Agreement (including
Section 3.3), the Borrower may borrow, repay and reborrow Loans. On the Closing Date, all
Revolving Loans shall be Base Rate Loans unless the Borrower shall have delivered at least
three Business Days prior to the Closing Date, a funding indemnity letter in form and
substance reasonably satisfactory to the Administrative Agent. Thereafter, Revolving Loans
may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

     (b) Method of Borrowing for Revolving Loans. By no later than 12:00 p.m. (i)
on the date of the requested borrowing of Revolving Loans that will be Base Rate Loans, (ii)
three Business Days prior to the date of the requested borrowing of Revolving Loans that
will be Eurodollar Loans
denominated in Dollars or (iii) four Business Days prior to the requested date of any
borrowing or continuation of Eurodollar Loans denominated in Alternative Currencies, the
Borrower shall provide telephonic notice to the Administrative Agent, followed promptly by a
written Notice of Borrowing in the form of Exhibit 2.1(b) (which may be submitted by
telecopy), each of such telephonic notice and such written Notice of Borrowing setting forth
(A) the amount requested, (B) whether such Revolving Loans shall accrue interest at the Base
Rate or the Adjusted Eurodollar Rate, (C) with respect to Loans that will be Eurodollar
Loans, the Interest Period applicable thereto, (D) certification that the Borrower has
complied in all respects with Section 5.2 and (E) the currency of the Revolving Loans to be
borrowed. If the Borrower fails to specify a currency in a Notice of Borrowing, then the
Revolving Loans so requested shall be made in Dollars.

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     (c) Funding of Loans. Upon receipt of a Notice of Borrowing, the
Administrative Agent shall promptly inform the Revolving Lenders as to the terms thereof.
Each Revolving Lender shall make its Commitment Percentage of the requested Revolving Loans
available to the Administrative Agent in Same Day Funds at the Agency Services Address for
the applicable currency (i) not later than 2:00 p.m., in the case of any Revolving Loan
denominated in Dollars, and (ii) not later than the Applicable Time specified by the
Administrative Agent in the case of any Revolving Loan in an Alternative Currency, in each
case on the date specified in the Notice of Borrowing. The amount of the requested
Revolving Loans will then be made available to the Borrower or the Designated Borrower by
the Administrative Agent as directed by the Borrower, to the extent the amount of such
Revolving Loans are made available to the Administrative Agent.

     (d) Reductions of Revolving Committed Amount. Upon at least three Business
Days’ prior written notice, the Borrower shall have the right to permanently reduce, without
premium or penalty, all or part of the aggregate unused amount of the Revolving Committed
Amount at any time or from time to time; provided that (i) each partial reduction
shall be in an aggregate amount at least equal to $5,000,000 and in integral multiples of
$1,000,000 above such amount and (ii) no reduction shall be made which would reduce the
Revolving Committed Amount to an amount less than the Dollar Equivalent amount of aggregate
amount of outstanding Revolving Loans plus the Dollar Equivalent amount of the aggregate
amount of outstanding LOC Obligations. Any reduction in (or termination of) the Revolving
Committed Amount pursuant to this Section 2.1(d) shall be permanent and may not be
reinstated. The Administrative Agent shall immediately notify the Revolving Lenders of any
reduction in the Revolving Committed Amount pursuant to this Section 2.1(d).

     (e) Revolving Notes. Upon the request of any Revolving Lender made through the
Administrative Agent, the Borrower shall execute and deliver to such Revolving Lender
(through the Administrative Agent) a promissory note which shall evidence such Revolving
Lender’s Revolving Loans in addition to such accounts or records.

     (f) Increases of the Revolving Committed Amount. The Borrower shall have the
right from time to time, prior to the Maturity Date and with the consent of the
Administrative Agent and the Issuing Lender (such consent not to be unreasonably withheld),
and subject to the terms and conditions set forth below, to increase the amount of the
Revolving Committed Amount; provided that (i) no Default or Event of Default shall exist at
the time of the request of the proposed increase in the Revolving Committed Amount or after
giving effect thereto; (ii) the representations and warranties contained in Section 6 and
the other Credit Documents are true and correct in all material respects, on and as of the
date of the increase in the Revolving Committed Amount, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case, they
are true and correct in all material respects as of such earlier date, (iii) such increase
must be in a minimum amount of $5,000,000 and in integral multiples of $5,000,000 above such
amount, (iv) the Revolving Committed Amount shall not exceed

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at any time $350,000,000, (v)
no individual Lender’s Revolving Commitment may be increased without such Lender’s written
consent, (vi) Schedule 1.1(a) shall be amended to reflect the revised amount of the
Revolving Committed Amount and revised Revolving Commitments of
the Lenders and (vii) if any Revolving Loans are outstanding at the time of an increase
in the Revolving Committed Amount, the Borrower will prepay (provided that any such
prepayment shall be subject to Section 3.14) one or more existing Revolving Loans (or in the
case of the addition of any new Lender as set forth in the paragraph below, prepay and
reborrow the outstanding Revolving Loans) in an amount necessary such that after giving
effect to the increase in the Revolving Committed Amount, each Lender will hold its
Committment Percentage (based on its Revolving Commitment of the revised Revolving Committed
Amount) of outstanding Revolving Loans.

     Any such increase in the Revolving Committed Amount shall apply, at the option of the
Borrower, to (x) the Revolving Commitment of one or more existing Lenders; provided that any
Lender whose Revolving Commitment is being increased must consent in writing thereto and/or
(y) the creation of a new Revolving Commitment to one or more institutions that is not an
existing Lender; provided that any such institution (A) must conform to the definition of
Eligible Assignee and (B) must become a Revolving Lender under this Credit Agreement by
execution and delivery of an appropriate joinder agreement or of counterparts to this Credit
Agreement in a manner reasonably acceptable to the Borrower and the Administrative Agent.

     2.2 Term Loan.

     (a) Term Loans. Subject to the terms and conditions set forth herein, each Term
Lender severally agrees to fund its Commitment Percentage of the Term Loan Committed Amount
to the Borrower on the Closing Date, in Dollars, in an aggregate amount not to exceed such
Term Lender’s Term Loan Commitment. All of the Term Loan Committed Amount shall be made in
one draw on the Closing Date. To the extent all or any portion of the Term Loans are repaid
or prepaid, they may not be reborrowed. On the Closing Date, all Term Loans shall be Base
Rate Loans unless the Borrower shall have delivered at least three Business Days prior to
the Closing Date, a funding indemnity letter in form and substance reasonably satisfactory
to the Administrative Agent. Thereafter, Term Loans may be Base Rate Loans or Eurodollar
Rate Loans, as further provided herein.

     (b) Term Notes. Upon the request of any Term Lender made through the
Administrative Agent, the Borrower shall execute and deliver to such Term Lender (through
the Administrative Agent) a promissory note which shall evidence such Term Lender’s Term
Loans in addition to such accounts or records.

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     2.3  Letter of Credit Subfacility.

     (a)  The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein and other terms and
conditions that the Issuing Lender may reasonably require, (A) the Issuing Lender
agrees, in reliance upon the agreements of the Revolving Lenders set forth in this
Section 2.3, from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue standby Letters of
Credit in Dollars or in one or more Alternative Currencies for the account of the
Borrower or, subject to the terms of Section 2.3(j), certain Subsidiaries of the
Borrower, and to amend Letters of Credit previously issued by it, in each case in
accordance with subsection (b) below and (B) the Revolving Lenders severally agree
to participate in Letters of Credit issued for the account of the Borrower or,
subject to the terms of Section 2.3(j), certain Subsidiaries of the Borrower;
provided, however, that after giving effect to the issuance of any
Letter of Credit (1) the sum of the Dollar Equivalent amount of aggregate principal
amount of outstanding Revolving Loans plus the Dollar Equivalent amount of the
aggregate principal
amount of outstanding LOC Obligations shall not exceed the Revolving Committed
Amount, (2) with respect to each individual Revolving Lender, the sum of the
aggregate principal amount of outstanding Revolving Loans of such Revolving Lender
plus such Revolving Lender’s pro rata share of the aggregate amount of LOC
Obligations shall not exceed such Revolving Lender’s Commitment Percentage of the
Revolving Committed Amount and (3) the Dollar Equivalent of the aggregate principal
amount of outstanding LOC Obligations shall not at any time exceed the LOC Committed
Amount. Within the foregoing limits, and subject to the terms and conditions
hereof, the 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.

     (ii) The Issuing Lender shall not issue or amend any Letter of Credit if:

     (A) any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain the Issuing
Lender from issuing such Letter of Credit, or any Requirement of Law
applicable to the Issuing Lender or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction
over the Issuing Lender shall prohibit, or request that the Issuing Lender
refrain from, the issuance of letters of credit generally or such Letter of
Credit in particular or shall impose upon the Issuing Lender with respect to
such Letter of Credit any restriction, reserve or capital requirement (for
which the Issuing Lender is not otherwise compensated

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hereunder) not in
effect on the Closing Date, or shall impose upon the Issuing Lender any
unreimbursed loss, cost or expense which was not applicable on the Closing
Date and which the Issuing Lender in good faith deems material to it;

     (B) the expiry date of such requested Letter of Credit would occur more
than twelve months after the date of issuance, unless the Required Lenders
have approved such expiry date;

     (C) the expiry date of such requested Letter of Credit would occur
after the Letter of Credit Expiration Date, unless all the Lenders have
approved such expiry date;

     (D) the issuance of such Letter of Credit would violate one or more
policies of the Issuing Lender;

     (E) a default of any Revolving Lender’s obligations to fund under
Section 2.3(d) exists or any Revolving Lender is at such time a Defaulting
Lender hereunder, unless the Issuing Lender has entered into satisfactory
arrangements with the Borrower or such Revolving Lender to eliminate the
Issuing Lender’s risk with respect to such Revolving Lender;

     (F) such Letter of Credit is in an initial amount less than $100,000
(unless otherwise agreed to by the Issuing Lender), is to be used for a
purpose other than as permitted by Section 7.10, or is denominated in a
currency other than Dollars;

     (G) except as otherwise agreed by the Administrative Agent and the
Issuing lender, such Letter of Credit is to be denominated in a currency
other than Dollars or an Alternative Currency; or

     (H) the Issuing Lender does not as of the issuance date of such
requested Letter of Credit issue Letters of Credit in the requested
currency.

     (iii) The Issuing Lender shall be under no obligation to amend any Letter of
Credit if (A) the Issuing Lender would have no obligation at such time to issue such
Letter of Credit in its amended form under the terms hereof or (B) the beneficiary
of such Letter of Credit does not accept the proposed amendment to such Letter of
Credit.

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     (b) Procedures for Issuance and Amendment of Letters of Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of the Borrower delivered to the Issuing Lender (with a copy to the
Administrative Agent) in the form of a Letter of Credit Application, appropriately
completed and signed by a Authorized Officer of the Borrower. The Letter of Credit
Application must be received by the Issuing Lender and the Administrative Agent not
later than 11:00 a.m. at least two Business Days (or such later date and time as the
Issuing Lender may agree in a particular instance in its sole discretion) prior to
the proposed issuance date or date of amendment, as applicable. In the case of a
request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the Issuing Lender: (A)
the proposed issuance date of the requested Letter of Credit (which shall be a
Business Day), (B) the amount and currency thereof, (C) the expiry date thereof, (D)
the name and address of the beneficiary thereof, (E) the documents to be presented
by such beneficiary in case of any drawing thereunder, (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing thereunder
and (G) such other matters as the Issuing Lender may require. In the case of a
request for an amendment of any outstanding Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the Issuing Lender (1)
the Letter of Credit to be amended, (2) the proposed date of amendment thereof
(which shall be a Business Day), (3) the nature of the proposed amendment and (4)
such other matters as the Issuing Lender may require.

     (ii) Promptly after receipt of any Letter of Credit Application, the Issuing
Lender will confirm with the Administrative Agent (by telephone or in writing) that
the Administrative Agent has received a copy of such Letter of Credit Application
from the Borrower and, if not, the Issuing Lender will provide the Administrative
Agent with a copy thereof. Upon receipt by the Issuing Lender of confirmation from
the Administrative Agent that the requested issuance or amendment is permitted in
accordance with the terms hereof, then, subject to the terms and conditions hereof,
the Issuing Lender shall, on the requested date, issue a Letter of Credit for the
account of the Borrower or enter into the applicable amendment, as the case may be,
in each case in accordance with the Issuing Lender’s usual and customary business
practices.

     (iii) Promptly after its 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 Issuing Lender will also deliver to the Borrower and the Administrative
Agent a true and complete copy of such Letter of Credit or amendment.

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     (c) Participations.

     Each Revolving Lender, upon issuance of a Letter of Credit, shall be deemed to have
purchased without recourse a risk participation from the Issuing Lender in such Letter of
Credit and the obligations arising thereunder and any collateral relating thereto, in each
case in an amount equal to its Commitment Percentage of the obligations under such Letter of
Credit, and shall absolutely, unconditionally and irrevocably assume, as primary obligor and
not as surety, and be obligated to pay to the Issuing Lender therefor and discharge when
due, its Commitment Percentage of the obligations arising under such Letter of Credit.

     (d) Reimbursement.

     (i) In the event of any drawing under any Letter of Credit, the Issuing Lender
will promptly notify the Borrower in writing. In the case of a Letter of Credit
denominated in an Alternative Currency, the Borrower shall reimburse the Issuing
Lender in such Alternative Currency, unless (A) the Issuing Lender (at its option)
shall have specified in such notice that it will require reimbursement in Dollars,
or (B) in the absence of any such requirement for reimbursement in Dollars, the
Borrower shall have notified the Issuing Lender promptly following receipt of the
notice of drawing that the Borrower will reimburse the Issuing Lender in Dollars.
In the case of any such reimbursement in Dollars of a drawing under a Letter of
Credit denominated in an Alternative Currency, the Issuing Lender shall notify the
Borrower of the Dollar Equivalent of the amount of the drawing promptly following
the determination thereof. The Borrower shall reimburse the Issuing Lender on the
day of drawing under any Letter of Credit either with the proceeds of a Loan
obtained hereunder or otherwise in immediately available funds in the applicable
currency. If the Borrower shall fail to reimburse the Issuing Lender as provided
hereinabove, the unreimbursed amount of such drawing shall bear interest at a per
annum rate equal to the Base Rate plus two percent (2%).

     (ii) Subsequent to a drawing under any Letter of Credit, unless the Borrower
shall immediately notify the Issuing Lender of its intent to otherwise reimburse the
Issuing Lender in the applicable currency, the Borrower shall be deemed to have
requested a Revolving Loan at the Base Rate in the amount of the drawing as
described herein, the proceeds of which will be used to satisfy the reimbursement
obligations. On any day on which the Borrower shall be deemed to have requested a
Revolving Loan borrowing to reimburse a drawing under a Letter of Credit, the
Administrative Agent shall give notice to the Revolving Lenders that a Revolving
Loan (expressed in Dollars in the amount of the Dollar Equivalent thereof in the
case of a Letter of Credit denominated in an Alternative Currency) has been deemed
requested in connection with a drawing under a Letter of Credit, in which case a
Revolving Loan borrowing comprised solely of

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Base Rate Loans (each such borrowing, a
“Mandatory Borrowing”) shall be made from all Revolving Lenders in Dollars
(without giving effect to any termination of the Commitments pursuant to Section 9.2
or otherwise) not later than 1:00 p.m. on the Business Day such notice by the
Administrative Agent is received if such notice is received before 12:00 Noon,
otherwise such payment shall be made at or before 2:00 p.m. on the next succeeding
Business Day. Each Revolving Lender that so makes funds available shall be deemed to
have made a Base Rate Loan in Dollars to the Borrower in such amount. The
Administrative Agent shall remit the funds so received to the Issuing Lender in
Dollars pro rata based on each Revolving Lender’s respective
Commitment Percentage and the proceeds thereof shall be paid directly to the Issuing
Lender for application to the respective LOC Obligations. Each Revolving Lender
hereby irrevocably agrees to make such Revolving Loans immediately upon any such
request or deemed request on account of each such Mandatory Borrowing in the amount
and in the manner specified in the preceding sentence and on the same such date
notwithstanding (A) any setoff, counterclaim, recoupment, defense, or other
right which such Revolving Lender may have against the Issuing Lender, the Borrower
or any other Person for any reason whatsoever, (B) the amount of Mandatory Borrowing
may not comply with the minimum amount for borrowings of Revolving Loans otherwise
required hereunder, (C) the failure of any conditions specified in Section 5.2 to
have been satisfied, (D) the existence of a Default or an Event of Default, (E) the
failure of any such request or deemed request for Revolving Loans to be made by the
time otherwise required hereunder, (F) the date of such Mandatory Borrowing, or (G)
any reduction in the Revolving Committed Amount or any
termination of the Commitments. This Section 2.3(d)(ii) is subject to the
provisions of Section 2.3(d)(iii).

     (iii) In the event that any Mandatory Borrowing cannot for any reason be made
on the date otherwise required above (including, without limitation, as a result of
the commencement of a proceeding under the Bankruptcy Code with respect to the
Borrower or any other Credit Party), then each Revolving Lender hereby agrees that
it shall forthwith fund (as of the date the Mandatory Borrowing would otherwise have
occurred, but adjusted for any payments received from the Borrower on or after such
date and prior to such purchase) its Participation Interest in Dollars in the
outstanding LOC Obligations; provided, that in the event any Revolving
Lender shall fail to fund its Participation Interest on the day the Mandatory
Borrowing would otherwise have occurred, then the amount of such Revolving Lender’s
unfunded Participation Interest therein shall bear interest payable to the Issuing
Lender upon demand, at the rate equal to, if paid within two Business Days of such
date, the applicable Overnight Rate from time to time in effect, and thereafter at a
rate equal to the Base Rate. Simultaneously with the making of each such payment by
a Revolving Lender to the Issuing Lender, such Revolving Lender shall, automatically
and without any further action on the part of the Issuing Lender or such Revolving
Lender, acquire a participation in an

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amount equal to such payment (excluding the
portion of such payment constituting interest owing to the Issuing Lender) in the
related unreimbursed drawing portion of the LOC Obligation and in the interest
thereon and shall have a claim against the Borrower and the other Credit Parties
with respect thereto. Any payment by the Revolving Lenders pursuant to this clause
(iii) shall not relieve or otherwise impair the obligations of the Borrower or any
Credit Party to reimburse the Issuing Lender under a Letter of Credit.

     (iv) Until each Revolving Lender funds its Base Rate Loan or Participation
Interest pursuant to this Section 2.3(d) to reimburse the Issuing Lender for any
amount drawn under any Letter of Credit, interest in respect of such Revolving
Lender’s Applicable Percentage of such amount shall be solely for the account of the
Issuing Lender.

     (v) Notwithstanding anything in this Credit Agreement to the contrary, to the
extent the conditions set forth in Section 5.2 cannot be satisfied, all Revolving
Loans arising on a Mandatory Borrowing shall be payable in full on the Business Day
immediately following the date of such Mandatory Borrowing.

     (e) Obligations Absolute. The obligation of the Borrower to reimburse the
Issuing Lender for each drawing under each Letter of Credit shall be absolute, unconditional
and irrevocable, and shall be paid strictly in accordance with the terms of this Credit
Agreement under all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this
Credit Agreement, or any other agreement or instrument relating thereto;

     (ii) the existence of any claim, counterclaim, set-off, defense or other right
that the Borrower may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the Issuing Lender or any other Person, whether in
connection with this Credit Agreement, the transactions contemplated hereby or by
such Letter of Credit or any agreement or instrument relating thereto, or any
unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such
Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect; or any loss or
delay in the transmission or otherwise of any document required in order to make a
drawing under such Letter of Credit;

     (iv) any payment by the Issuing Lender under such Letter of Credit against
presentation of a draft or certificate that does not strictly comply with the terms
of such Letter of Credit; or any payment made by the Issuing Lender under

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such Letter of Credit to any Person purporting to be a trustee in bankruptcy,
debtor-in-possession, assignee for the benefit of creditors, liquidator, receiver or
other representative of or successor to any beneficiary or any transferee of such
Letter of Credit, including any arising in connection with any proceeding under any
Bankruptcy Code;

     (v) any adverse change in the relevant exchange rates or in the availability of
the relevant Alternative Currency to the Borrower or any Subsidiary or in the
relevant currency markets generally; or

     (vi) any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing, including any other circumstance that might otherwise
constitute a defense available to, or a discharge of, the Borrower.

The Borrower shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with the
Borrower’s instructions or other irregularity, the Borrower will immediately notify the
Issuing Lender. The Borrower shall be conclusively deemed to have waived any such claim
against the Issuing Lender and its correspondents unless such notice is given as aforesaid.

     (f) Role of Issuing Lender. Each Revolving Lender and the Borrower agree that,
in paying any drawing under a Letter of Credit, the Issuing Lender shall not have any
responsibility to obtain any document (other than any sight draft, certificates and
documents expressly required by the Letter of Credit) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the Person executing or
delivering any such document. None of the Issuing Lender, any Agent-Related Person nor any
of the respective correspondents, participants or assignees of the Issuing Lender shall be
liable to any Revolving Lender for (i) any action taken or omitted in connection herewith at
the request or with the approval of the Revolving Lenders or the Required Lenders, as
applicable, (ii) any action taken or omitted in the absence of gross negligence or willful
misconduct or (iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Letter of Credit Application. The
Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee
with respect to its use of any Letter of Credit; provided, however, that
this assumption is not intended to, and shall not, preclude the Borrower’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law or under any
other agreement. None of the Issuing Lender, any Agent-Related Person, nor any of the
respective correspondents, participants or assignees of the Issuing Lender, shall be liable
or responsible for any of the matters described in clauses (i) through (v) of Section
2.3(e); provided, however, that anything in such clauses to the contrary notwithstanding,
the Borrower may have a claim against the Issuing Lender, and the Issuing Lender may be
liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to
consequential or exemplary, damages suffered by the Borrower

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which the Borrower proves were
caused by the Issuing Lender’s willful misconduct or gross negligence or the Issuing
Lender’s willful failure to pay under any Letter of Credit after the presentation to it by
the beneficiary of a sight draft and certificate(s) strictly complying with the terms and
conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing,
the Issuing Lender may accept documents that appear on their face to be in order, without
responsibility for further investigation and the Issuing Lender shall not be responsible for
the validity or sufficiency of any instrument transferring or assigning or purporting to
transfer or assign a Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason.

     (g) Cash Collateral.

     (i) If, as of the Letter of Credit Expiration Date, any Letter of Credit for any reason
remains outstanding and partially or wholly undrawn, the Borrower shall immediately Cash
Collateralize the then aggregate principal amount of all LOC Obligations (in an amount equal
to such aggregate principal amount determined as of the Letter of Credit Expiration Date).

     (ii) In addition, if the Administrative Agent notifies the Borrower at any time that
the Dollar Equivalent amount of the aggregate outstanding amount of all LOC Obligations at
such time exceeds 105% of the Letter of Credit Sublimit then in effect, then, within two
Business Days after receipt of such notice, the Borrower shall Cash Collateralize the LOC
Obligations in an amount equal to the amount by which the outstanding amount of all LOC
Obligations exceeds the Letter of Credit Sublimit.

     (iii) The Administrative Agent may, at any time and from time to time after the initial
deposit of Cash Collateral, request that additional Cash Collateral be provided in order to
protect against the results of exchange rate fluctuations.

     The Borrower hereby grants to the Administrative Agent, for the benefit of the Issuing
Lender and the Revolving Lenders, a security interest in all such cash, deposit accounts and
all balances therein and all proceeds of the foregoing. Cash collateral shall be maintained
in blocked, non-interest bearing deposit accounts at Bank of America.

     (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the
Issuing Lender and the Borrower when a Letter of Credit is issued, (i) the rules of the ISP
shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform Customs and
Practice for Documentary Credits, as most recently published by the International Chamber of
Commerce at the time of issuance shall apply to each commercial Letter of Credit.

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     (i) Conflict with Letter of Credit Application. In the event of any conflict
between the terms of this Credit Agreement and the terms of any Letter of Credit
Application, the terms of this Credit Agreement shall control.

     (j) Designation of Subsidiaries as Account Parties. Notwithstanding anything
to the contrary set forth in this Credit Agreement and any LOC Document, a Letter of Credit
issued hereunder may contain a statement to the effect that such Letter of Credit is issued
for the account of a Subsidiary of the Borrower; provided that notwithstanding such
statement, the Borrower shall be the actual account party for all purposes of this Credit
Agreement for such Letter of Credit and such statement shall not affect the Borrower’s
reimbursement obligations hereunder with respect to such Letter of Credit.

     (k) Indemnification of Issuing Lender.

     (i) In addition to its other obligations under this Credit Agreement, the
Credit Parties hereby agree to protect, indemnify, pay and hold the Issuing Lender
harmless from and against any and all claims, demands, liabilities, damages, losses,
costs, charges and expenses (including reasonable Attorney Costs) that the Issuing
Lender may incur or be subject to as a consequence, direct or indirect, of (A) the
issuance of any Letter of Credit or (B) the failure of the Issuing Lender to honor a
drawing under a Letter of Credit as a result of any act or omission, whether
rightful or wrongful, of any present or future de
jure or de facto government or Governmental Authority (all such acts or omissions,
herein called “Government Acts”).

     (ii) As between the Credit Parties and the Issuing Lender, the Credit Parties
shall assume all risks of the acts, omissions or misuse of any Letter of Credit by
the beneficiary thereof. In the absence of gross negligence or willful misconduct,
the Issuing Lender shall not be responsible for: (A) the form, validity,
sufficiency, accuracy, genuineness or legal effect of any document submitted by any
party in connection with the application for and issuance of any Letter of Credit,
even if it should in fact prove to be in any or all respects invalid, insufficient,
inaccurate, fraudulent or forged; (B) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any Letter of Credit
or the rights or benefits thereunder or proceeds thereof, in whole or in part, that
may prove to be invalid or ineffective for any reason; (C) failure of the
beneficiary of a Letter of Credit to comply fully with conditions required in order
to draw upon a Letter of Credit; (D) errors, omissions, interruptions or delays in
transmission or delivery of any messages, by mail, cable, telegraph, telex or
otherwise, whether or not they be in cipher; (E) errors in interpretation of
technical terms; (F) any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under a Letter of Credit or of the
proceeds thereof; and (G) any consequences arising from causes beyond the control of
the Issuing Lender, including, without limitation, any Government

40

 

Acts. None of the
above shall affect, impair, or prevent the vesting of the Issuing Lender’s rights or
powers hereunder.

     (iii) In furtherance and extension and not in limitation of the specific
provisions hereinabove set forth, any action taken or omitted by the Issuing Lender,
under or in connection with any Letter of Credit or the related certificates, if
taken or omitted in good faith, shall not put the Issuing Lender under any resulting
liability to the Borrower or any other Credit Party. It is the intention of the
parties that this Credit Agreement shall be construed and applied to protect and
indemnify the Issuing Lender against any and all risks involved in the issuance of
the Letters of Credit, all of which risks are hereby assumed by the Credit Parties,
including, without limitation, any and all risks of the acts or omissions, whether
rightful or wrongful, of any present or future Government Acts. The Issuing Lender
shall not, in any way, be liable for any failure by the Issuing Lender or anyone
else to pay any drawing under any Letter of Credit as a result of any Government
Acts or any other cause beyond the control of the Issuing Lender.

     (iv) Nothing in this subsection (k) is intended to limit the reimbursement
obligation of the Credit Parties contained in this Section 2.3. The obligations of
the Credit Parties under this subsection (k) shall survive the termination of this
Credit Agreement. No act or omission of any current or prior beneficiary of a
Letter of Credit shall in any way affect or impair the rights of the Issuing Lender
to enforce any right, power or benefit under this Credit Agreement.

     (l) Letter of Credit Amounts. Unless otherwise specified, all references
herein to the amount of a Letter of Credit at any time shall be deemed to mean the maximum
face amount of such Letter of Credit after giving effect to all increases thereof
contemplated by such Letter of Credit or the Letter of Credit Application therefor, whether
or not such maximum face amount is in effect at such time.

     2.4 Continuations and Conversions.

     Subject to the terms below, the Borrower shall have the option, on any Business Day, to
continue existing Eurodollar Loans for a subsequent Interest Period, to convert Base Rate Loans
into Eurodollar Loans or to convert Eurodollar Loans into Base Rate Loans. By no later than 11:00
a.m. (a) on the date of the
requested conversion of a Eurodollar Loan to a Base Rate Loan, (b) three Business Days prior to
the date of the requested continuation of a Eurodollar Loan denominated in Dollars or conversion of
a Base Rate Loan to a Eurodollar Loan denominated in Dollars or (c) four Business Days prior to the
requested date of any borrowing or continuation of Eurodollar Loans denominated in Alternative
Currencies, the Borrower shall provide telephonic notice to the Administrative Agent, followed
promptly by a written Notice of Continuation/Conversion, in the form of Exhibit 2.4 setting
forth (i) whether the Borrower wishes to continue or convert such Loans

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and (ii) if the request is
to continue a Eurodollar Loan or convert a Base Rate Loan to a Eurodollar Loan, the Interest Period
applicable thereto; provided, however, that in the case of a failure to timely
request a continuation of Loans denominated in an Alternative Currency, such Loans shall be
continued as Eurodollar Loans in their original currency with an Interest Period of one month.
Notwithstanding anything herein to the contrary, (A) except as provided in Section 3.11, Eurodollar
Loans may only be continued or converted into Base Rate Loans on the last day of the Interest
Period applicable thereto, (B) Eurodollar Loans may not be continued nor may Base Rate Loans be
converted into Eurodollar Loans during the existence and continuation of a Default or an Event of
Default (and the Required Lenders may demand that any or all of the then outstanding Eurodollar
Loans denominated in an Alternative Currency be redenominated into Dollars in the amount of the
Dollar Equivalent thereof on the last day of the then current Interest Period with respect thereto)
and (C) any request to continue a Eurodollar Loan that fails to comply with the terms hereof or any
failure to request a continuation of a Eurodollar Loan at the end of an Interest Period shall
constitute a conversion to a Base Rate Loan on the last day of the applicable Interest Period. No
Loan may be converted into or continued as a Loan denominated in a different currency, but instead
must be prepaid in the original currency of such Loan and reborrowed in the other currency.

     2.5 Minimum Amounts.

     Each request for a borrowing, conversion or continuation shall be subject to the requirements
that (a) each Eurodollar Loan shall be in a minimum amount of $5,000,000 and in integral multiples
of $1,000,000 in excess thereof, (b) each Base Rate Loan shall be in a minimum amount of the lesser
of $1,000,000 (and integral multiples of $1,000,000 in excess thereof) or the remaining amount
available under the Revolving Committed Amount or the remaining amount of Term Loans, as applicable
and (c) no more than ten (10) Eurodollar Loans shall be outstanding hereunder at any one time. For
the purposes of this Section 2.5, all Eurodollar Loans with the same Interest Periods that begin
and end on the same date shall be considered as one Eurodollar Loan, but Eurodollar Loans with
different Interest Periods, even if they begin on the same date, shall be considered as separate
Eurodollar Loans.

SECTION 3

GENERAL PROVISIONS APPLICABLE TO LOANS AND LETTERS OF CREDIT

     3.1 Interest.

     (a) Interest Rate. Subject to Section 3.1(b), all Base Rate Loans shall accrue
interest at the Base Rate and all Eurodollar Loans shall accrue interest at the Adjusted
Eurodollar Rate plus (in the case of a Eurodollar Loan which is lent from a Lending
Office in the United Kingdom or a Participating Member State) the Mandatory Cost.

     (b) Default Rate of Interest.

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     (i) Upon the occurrence, and during the continuation, of an Event of Default pursuant
to Section 9.1(a), the principal of and, to the extent permitted by law, interest on the
Loans and any other amounts owing hereunder or under the other Credit Documents (including
without limitation fees and expenses) shall bear interest, payable on demand, at a per annum
rate equal to 2% plus the rate which would otherwise be applicable (or if no rate is
applicable, then the Base Rate plus two percent (2%) per annum).

     (ii) Upon the occurrence, and during the continuation, of an Event of Default (other
than pursuant to Section 9.1(a)), then upon the request of the Required Lenders, the
principal of and, to the extent permitted by law, interest on the Loans and any other
amounts owing hereunder or under the other Credit Documents (including without limitation
fees and expenses) shall bear interest, payable on demand, at a per annum rate equal to 2%
plus the rate which would otherwise be applicable (or if no rate is applicable, then the
Base Rate plus two percent (2%) per annum).

     (c) Interest Payments. Interest on Loans shall be due and payable in arrears
on each Interest Payment Date. If an Interest Payment Date falls on a date which is not a
Business Day, such Interest Payment Date shall be deemed to be the next succeeding Business
Day, except that in the case of Eurodollar Loans where the next succeeding Business Day
falls in the next succeeding calendar month, then on the next preceding Business Day.

     3.2 Place and Manner of Payments.

     (a) All payments of principal, interest, fees, expenses and other amounts to be made by a
Credit Party under this Credit Agreement shall be made unconditionally and without any setoff,
deduction, counterclaim, defense, recoupment or withholding of any kind and received not later than
2:00 p.m. on the date when due, in Dollars (except with respect to principal of and interest on
Loans denominated in an Alternative Currency) and in Same Day Funds, to the Administrative Agent at
the Agency Services Address. Except as otherwise expressly provided herein, all payments by the
Borrower hereunder with respect to principal and interest on Loans denominated in an Alternative
Currency shall be made to the Administrative Agent, for the account of the respective Lenders to
which such payment is owed, at the applicable Agency Services Address in such Alternative Currency
and in Same Day Funds not later than the Applicable Time specified by the Administrative Agent on
the dates specified herein. Without limiting the generality of the foregoing, the Administrative
Agent may require that any payments due under this Credit Agreement be made in the United States.
If, for any reason, any Borrower is prohibited by any Law from making any required payment
hereunder in an Alternative Currency, such Borrower shall make such payment in Dollars in the
Dollar Equivalent of the Alternative Currency payment amount. Payments received after
such time shall be deemed to have been received on the next Business Day and additional interest
shall accrue and be payable for such additional period. The Borrower shall, at the time it makes
any payment under this Credit Agreement, specify to the Administrative Agent the Loans, Letters of
Credit, fees or other amounts payable by the Borrower

43

 

hereunder to which such payment is to be
applied (and in the event that it fails to specify, or if such application would be inconsistent
with the terms hereof, the Administrative Agent shall, subject to Section 3.7, distribute such
payment to the Lenders in such manner as the Administrative Agent may reasonably deem appropriate).
The Administrative Agent will distribute such payments to the Lenders on the same Business Day if
any such payment is received (i) at or before 2:00 p.m., in the case of payments in Dollars or (ii)
at or before the Applicable Time specified by the Administrative Agent in the case of payments in
an Alternative Currency, otherwise the Administrative Agent will distribute such payment to the
Lenders on the next succeeding Business Day. Whenever any payment hereunder shall be stated to be
due on a day which is not a Business Day, the due date thereof shall be extended to the next
succeeding Business Day (subject to accrual of interest and fees for the period of such extension),
except that, in the case of Eurodollar Loans, if the extension would cause the payment to be made
in the next following calendar month, then such payment shall instead be made on the next preceding
Business Day.

     (b) Unless the Borrower or any Lender has notified the Administrative Agent, prior to the time
any payment is required to be made by it to the Administrative Agent hereunder, that the Borrower
or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume
that the Borrower or such Lender, as the case may be, has timely made such payment and may (but
shall not be so required to), in reliance thereon, make available a corresponding amount to the
Person entitled thereto. If and to the extent that such payment was not in fact made to the
Administrative Agent in Same Day Funds, then:

     (i) if the Borrower failed to make such payment, each Lender shall forthwith on demand
repay to the Administrative Agent the portion of such assumed payment that was made
available to such Lender in Same Day Funds, together with interest thereon in respect of
each day from and including the date such amount was made available by the Administrative
Agent to such Lender to the date such amount is repaid to the Administrative Agent in Same
Day Funds at the Federal Funds Rate from time to time in effect; and

     (ii) if any Lender failed to make such payment, such Lender shall forthwith on demand
pay to the Administrative Agent the amount thereof in immediately available funds, together
with interest thereon for the period from the date such amount was made available by the
Administrative Agent to the Borrower to the date such amount is recovered by the
Administrative Agent (the “Compensation Period”) at a rate per annum equal to the
Overnight Rate from time to time in effect. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan included in the
applicable Borrowing. If such Lender does not pay such amount forthwith upon the
Administrative Agent’s demand therefor, the Administrative Agent may make a demand therefor
upon the Borrower, and the Borrower shall pay such amount to the Administrative Agent,
together with interest thereon for the Compensation Period at a rate per annum equal to the
rate of interest applicable to the applicable 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

44

 

Borrower may have against any Lender as a result of
any default by such Lender hereunder.

A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing
under this subsection (b) shall be conclusive, absent manifest error.

     (c) If any Lender makes available to the Administrative Agent funds for any Loan to be made by
such Lender as provided in the foregoing provisions of this Section 3.2, and such funds are not
made available to the Borrower by the Administrative Agent because the conditions to the applicable
Extension of Credit set forth in Section 2.1 or Section 2.2, as applicable, are not satisfied or
waived in accordance with the terms hereof, the Administrative Agent shall return such funds (in
like funds as received from such Lender) to such Lender, without interest, without prejudice to
such Lender’s rights against the Borrower under Section 3.14(b).

     (d) The obligations of the Lenders hereunder to make Loans and to fund participations in
Letters of Credit are several and not joint. The failure of any Lender to make any Loan or to fund
any such participation on any date required hereunder shall not relieve any other Lender of its
corresponding obligation to do so on such date, and no Lender shall be responsible for the failure
of any other Lender to so make its Loan or purchase its participation.

     (e) Nothing herein shall be deemed to obligate any Lender to obtain the funds for any Loan in
any particular place or manner or to constitute a representation by any Lender that it has obtained
or will obtain the funds for any Loan in any particular place or manner.

     3.3 Prepayments.

     (a) Voluntary Prepayments. The Borrower shall have the right to prepay Loans
in whole or in part from time to time without premium or penalty; provided,
however, that (i) Eurodollar Loans denominated in Dollars may only be prepaid on
three Business Days’ prior written notice to the Administrative Agent and any prepayment of
Eurodollar Loans denominated in Dollars will be subject to Section 3.14, (ii) Eurodollar
Loans denominated in Alternative Currencies may only be prepaid on three Business Days’
prior written notice to the Administrative Agent and any prepayment of Eurodollar Loans
denominated in Alternative Currencies will be subject to Section 3.14, (iii) each partial
prepayment of Eurodollar Loans denominated in Dollars shall be in the minimum principal
amount of $5,000,000 and integral multiples of $1,000,000, (iv) each partial prepayment of
Eurodollar Loans denominated in Alternative Currencies shall be in the minimum principal
amount of $5,000,000 and integral multiples of $1,000,000 and (v) each such partial
prepayment of Base Rate Loans shall be in the minimum principal amount of $1,000,000 and
integral multiples of $1,000,000. Amounts prepaid pursuant to this Section 3.3(a) shall be
applied as the Borrower may elect; however, if the Borrower fails to specify, such
prepayment will be applied in the manner set forth in Section 3.3(c) below.

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     (b) Mandatory Prepayments.

     (i) If at any time the sum of the Dollar Equivalent amount of the aggregate amount of
Revolving Loans outstanding plus the Dollar Equivalent amount of all LOC Obligations
outstanding exceeds the Revolving Committed Amount, the Borrower shall immediately make a
principal payment to the Administrative Agent in the manner and in an amount such that the
sum of the aggregate amount of Revolving Loans outstanding plus LOC Obligations outstanding
is less than or equal to the Revolving Committed Amount.

     (ii) If the Administrative Agent notifies the Borrower at any time that the aggregate
amount of Loans denominated in Alternative Currencies outstanding plus LOC Obligations
denominated in Alternative Currencies at such time exceeds an amount equal to 105% of the
Alternative Currency Sublimit then in effect, then, within two Business Days after receipt
of such notice, the Borrower shall prepay Loans in an aggregate amount sufficient to reduce
such outstanding amount as of such date of payment to an amount not to exceed 100% of the
Alternative Currency Sublimit then in effect.

     (c) Application of Prepayments. All amounts paid pursuant to Section 3.3(a),
if the Borrower has not otherwise elected an application of such amounts, and all amounts
required to be prepaid pursuant to Section 3.3(b) shall be applied first to Term
Loans, second to Revolving Loans and third to a cash collateral account in
respect of LOC Obligations. Within the parameters of the applications set forth above,
prepayments shall be applied first to Base Rate Loans and then to Eurodollar Loans in direct
order of Interest Period maturities. All prepayments hereunder shall be subject to Section
3.14.

     3.4 Fees.

     (a) Facility Fees. In consideration of the Revolving Committed Amount being
made available by the Revolving Lenders hereunder, the Borrower agrees to pay to the
Administrative Agent, for the pro rata benefit of each Revolving Lender (based on such
Revolving Lender’s Commitment Percentage of the Revolving Committed Amount), a per annum fee
in Dollars equal to the Applicable Percentage for Facility Fees (the “Facility
Fees”). The Facility Fees shall commence to accrue on the Closing Date and shall be due
and payable in arrears on the last Business Day of each fiscal quarter of the Borrower (as
well as on the Maturity Date and on any date that the Revolving Committed Amount is reduced)
for the immediately preceding fiscal quarter (or portion thereof), beginning with the first
of such dates to occur after the Closing Date.

     (b) Letter of Credit Fees.

     (i) Letter of Credit Fees. In consideration of the issuance of Letters
of Credit hereunder, the Borrower agrees to pay to the Administrative Agent, for the
pro rata benefit of each Revolving Lender (based on each Revolving Lender’s

46

 

Commitment Percentage), a per annum fee (the “Letter of Credit Fees”) equal
to the Applicable Percentage for the Letter of Credit Fees on the average daily
maximum amount available to be drawn under each such Letter of Credit from the date
of issuance to the date of expiration. The Letter of Credit Fees will be payable in
arrears on the last Business Day of each fiscal quarter of the Borrower (as
well as on the Maturity Date) for the immediately preceding fiscal quarter (or
portion thereof), beginning with the first of such dates to occur after the Closing
Date.

     (ii) Issuing Lender Fees. The Borrower shall pay directly to the
Issuing Lender for its own account a fronting fee in Dollars with respect to each
Letter of Credit in an amount equal to 0.125% times the Dollar Equivalent of
the daily maximum amount available to be drawn under such Letter of Credit (the
“L/C Fronting Fee”). The L/C Fronting Fee shall be computed on a quarterly
basis in arrears and shall be due and payable on the last Business Day of each
fiscal quarter of the Borrower (as well as on the Letter of Credit Expiration Date)
for the fiscal quarter (or portion thereof) then ending, beginning with the first of
such dates to occur after the issuance of such Letter of Credit. In addition, the
Borrower shall pay directly to the Issuing Lender for its own account, in Dollars,
the customary issuance, presentation, amendment and other processing fees, and other
standard costs and charges, of the Issuing Lender relating to letters of credit as
from time to time in effect. Such customary fees and standard costs and charges are
due and payable on demand and are nonrefundable.

     (c) Other Fees. The Borrower agrees to pay (i) to the Administrative Agent,
for its own account, an annual fee and (ii) to the Administrative Agent, for the account of
each of the Lenders, upfront fees on the Closing Date, in each case in accordance with the
terms of the Fee Letter.

     3.5 Payment in full at Maturity.

     On the Maturity Date, the entire outstanding principal balance of all Loans and all LOC
Obligations, together with accrued but unpaid interest and all other sums owing with respect
thereto, shall be due and payable in full, unless accelerated sooner pursuant to Section 9.

     3.6 Computations of Interest and Fees.

     (a) Except for Base Rate Loans that are based upon the Prime Rate, in which case
interest shall be computed on the basis of the actual number of days elapsed over a year of
365 or 366 days, as the case may be, all computations of interest and fees hereunder shall
be made on the basis of the actual number of days elapsed over a year of 360 days, or, in
the case of interest in respect of Revolving Loans denominated in Alternative Currencies as
to which market practice differs from the foregoing, in accordance with such market
practice. Interest shall accrue from and include the date of borrowing (or continuation or
conversion) but exclude the date of payment.

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     (b) It is the intent of the Lenders and the Credit Parties to conform to and contract
in strict compliance with applicable usury law from time to time in effect. All agreements
between the Lenders and the Credit Parties are hereby limited by the provisions of this
paragraph which shall override and control all such agreements, whether now existing or
hereafter arising and whether written or oral. In no way, nor in any event or contingency
(including but not limited to prepayment or acceleration of the maturity of any obligation),
shall the interest taken, reserved, contracted for, charged, or received under this Credit
Agreement or otherwise, exceed the maximum nonusurious amount permissible under applicable
law. If, from any possible construction of any of the Credit Documents or any other
document, interest would otherwise be payable in excess of the maximum nonusurious amount,
any such construction shall be subject to the provisions of this paragraph and such
documents shall be automatically reduced to the maximum nonusurious amount permitted under
applicable law, without the necessity of execution of any amendment or new document. If any
Lender shall ever receive anything of value which is characterized as interest on the Loans
under applicable law and which would, apart from this provision, be in excess of the maximum
nonusurious amount, an amount equal to the amount which would have been excessive interest
shall, without penalty, be applied to the reduction of the principal amount owing on the
Loans and not to the payment of interest, or refunded to the Borrower or the other payor
thereof if and to the extent such
amount which would have been excessive exceeds such unpaid principal amount of the Loans.
The right to demand payment of the Loans or any other Indebtedness evidenced by any of the
Credit Documents does not include the right to accelerate the payment of any interest which
has not otherwise accrued on the date of such demand, and the Lenders do not intend to
charge or receive any unearned interest in the event of such demand. All interest paid or
agreed to be paid to the Lenders with respect to the Loans shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the full stated
term (including any renewal or extension) of the Loans so that the amount of interest on
account of such Indebtedness does not exceed the maximum nonusurious amount permitted by
applicable law.

     3.7 Pro Rata Treatment.

     Except to the extent otherwise provided herein:

     (a) Loans. Each Loan borrowing (including, without limitation, each Mandatory
Borrowing), each payment or prepayment of principal of any Loan, each payment of fees (other
than the Issuing Lender Fees retained by the Issuing Lender for its own account and the fees
retained by the Administrative Agent for its own account), each reduction of the Revolving
Committed Amount, and each conversion or continuation of any Loan, shall (except as
otherwise provided in Section 3.11) be allocated pro rata among the relevant Lenders in
accordance with the respective Commitment Percentages of such Lenders (or, if the
Commitments of such Lenders have expired or been terminated, in accordance with the
respective principal amounts of the outstanding Loans and Participation Interests of such
Lenders); provided that, if any Lender shall have failed to pay its applicable pro
rata share of

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any Loan, then any amount to which such Lender would otherwise be entitled
pursuant to this subsection (a) shall instead be payable to the Administrative Agent until
the share of such Loan not funded by such Lender has been repaid; provided
further, that in the event any amount paid to any Lender pursuant to this subsection
(a) is rescinded or must otherwise be returned by the Administrative Agent, each Lender
shall, upon the request of the Administrative Agent, repay to the Administrative Agent the
amount so paid to such Lender, with interest for the period commencing on the date such
payment is returned by the Administrative Agent until the date the Administrative Agent
receives such repayment at a rate per annum equal to, during the period to but excluding the
date two Business Days after such request, the Federal Funds Rate, and thereafter, the Base
Rate plus two percent (2%) per annum; and

     (b) Letters of Credit. Each payment of unreimbursed drawings in respect of LOC
Obligations shall be allocated to each Revolving Lender pro rata in accordance with its
Commitment Percentage; provided that, if any Revolving Lender shall have failed to
pay its applicable pro rata share of any drawing under any Letter of Credit, then any amount
to which such Revolving Lender would otherwise be entitled pursuant to this subsection (b)
shall instead be payable to the Issuing Lender until the share of such unreimbursed drawing
not funded by such Revolving Lender has been repaid; provided further, that
in the event any amount paid to any Revolving Lender pursuant to this subsection (b) is
rescinded or must otherwise be returned by the Issuing Lender, each Revolving Lender shall,
upon the request of the Issuing Lender, repay to the Administrative Agent for the account of
the Issuing Lender the amount so paid to such Revolving Lender, with interest for the period
commencing on the date such payment is returned by the Issuing Lender until the date the
Issuing Lender receives such repayment at a rate per annum equal to, during the period to
but excluding the date two Business Days after such request, the Federal Funds Rate, and
thereafter, the Base Rate plus two percent (2%) per annum.

     3.8 Sharing of Payments.

     The Lenders agree among themselves that, except to the extent otherwise provided herein, in
the event that any Lender shall obtain payment in respect of any Loan, unreimbursed drawing with
respect to any LOC Obligations or any other obligation owing to such Lender under this Credit
Agreement through the
exercise of a right of setoff, banker’s lien or counterclaim, or pursuant to a secured claim under
Section 506 of the Bankruptcy Code or other security or interest arising from, or in lieu of, such
secured claim, received by such Lender under any applicable bankruptcy, insolvency or other similar
law or otherwise, or by any other means, in excess of its pro rata share of such payment as
provided for in this Credit Agreement, such Lender shall promptly pay in cash or purchase from the
other Lenders a participation in such Loans, LOC Obligations, and other obligations in such
amounts, and make such other adjustments from time to time, as shall be equitable to the end that
all Lenders share such payment in accordance with their respective ratable shares as provided for
in this Credit Agreement. The Lenders further agree among themselves that if payment to a Lender
obtained by such Lender through the exercise of a right of setoff, banker’s lien, counterclaim or
other event as aforesaid shall be rescinded or must otherwise be restored, each

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Lender which shall
have shared the benefit of such payment shall, by payment in cash or a repurchase of a
participation theretofore sold, return its share of that benefit (together with its share of any
accrued interest payable with respect thereto) to each Lender whose payment shall have been
rescinded or otherwise restored. The Borrower agrees that any Lender so purchasing such a
participation may, to the fullest extent permitted by law, exercise all rights of payment,
including setoff, banker’s lien or counterclaim, with respect to such participation as fully as if
such Lender were a holder of such Loan, LOC Obligation or other obligation in the amount of such
participation. Except as otherwise expressly provided in this Credit Agreement, if any Lender or
the Administrative Agent shall fail to remit to any other Lender an amount payable by such Lender
or the Administrative Agent to such other Lender pursuant to this Credit Agreement on the date when
such amount is due, such payments shall be made together with interest thereon for each date from
the date such amount is due until the date such amount is paid to the Administrative Agent or such
other Lender at a rate per annum equal to the Federal Funds Rate. If under any applicable
bankruptcy, insolvency or other similar law, any Lender receives a secured claim in lieu of a
setoff to which this Section 3.8 applies, such Lender shall, to the extent practicable, exercise
its rights in respect of such secured claim in a manner consistent with the rights of the Lenders
under this Section 3.8 to share in the benefits of any recovery on such secured claim.

     3.9 Capital Adequacy.

     (a) If, after the date thereof, the adoption or the becoming effective of, or any
change in, any law, rule or regulation or other Requirement of Law regarding capital
adequacy or any change therein or in the interpretation thereof, or compliance by any Lender
(or its Lending Office) therewith, has or would have the effect of reducing the rate of
return on the capital or assets of such Lender or any corporation controlling such Lender as
a consequence of such Lender’s obligations hereunder (taking into consideration its policies
with respect to capital adequacy and such Lender’s desired return on capital), then from
time to time within 10 days of demand of such Lender setting forth in reasonable detail such
change in law and the calculation of such reduced rate of return (with a copy of such demand
to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts
as will compensate such Lender for such reduction.

     (b) The Borrower shall not be required to compensate a Lender pursuant to this Section
3.9 for any additional amounts incurred more than 180 days prior to the date that such
Lender notifies the Borrower of the change in law giving rise to such additional amounts and
of such Lender’s intention to claim compensation therefor.

     (c) The Borrower shall pay to each Lender, as long as such Lender shall be required to
comply with any reserve ratio requirement or analogous requirement of any central banking or
financial regulatory authority imposed in respect of the maintenance of the Commitments or
the funding of the Eurodollar Loans, such additional costs (expressed as a percentage per
annum and rounded upwards, if necessary, to the nearest five decimal places) equal to the
actual costs allocated to such Commitment or Loan by

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such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which shall be due and
payable on each date on which interest is payable on such Loan, provided the
Borrower shall have received at least 10 days’ prior notice (with a copy to the
Administrative Agent) of such additional costs from such
Lender. If a Lender fails to give notice 10 days prior to the relevant Interest Payment
Date, such additional costs shall be due and payable 10 days from receipt of such notice.

     3.10 Inability To Determine Interest Rate.

     If the Administrative Agent determines (which determination shall be conclusive and binding
upon the Borrower) in connection with any request for a Eurodollar Loan or a conversion to or
continuation thereof that (a) deposits (whether in Dollars or an Alternative Currency) are not
being offered to banks in the applicable offshore market for such currency for the applicable
amount and Interest Period of such Eurodollar Loan, (b) adequate and reasonable means do not exist
for determining the Eurodollar Rate for such Eurodollar Loan, or (c) the Eurodollar Rate for such
Eurodollar Loan does not adequately and fairly reflect the cost to the Lenders of funding such
Eurodollar Loan (whether denominated in Dollars or an Alternative Currency), the Administrative
Agent will promptly notify the Borrower and all the Lenders. Thereafter, the obligation of the
Lenders to make or maintain Eurodollar Loans in the affected currency or currencies shall be
suspended until the Administrative Agent revokes such notice. Upon receipt of such notice, the
Borrower may revoke any pending Notice of Borrowing or Notice of Continuation/Conversion with
respect to Eurodollar Loans in the affected currency or currencies or, failing that, will be deemed
to have converted such request into a request for a borrowing of or conversion into a Base Rate
Loan in the amount specified therein. The Administrative Agent will withdraw such determination
pursuant to this Section 3.10 promptly as circumstances allow and no such suspension shall affect
the Eurodollar Rate for any Eurodollar Loan outstanding at the time such suspension is imposed.

     3.11 Illegality.

     If any Requirement of Law has made it unlawful, or that any Governmental Authority has
asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or
fund Eurodollar Loans (whether denominated in Dollars or an Alternative Currency), then, on notice
thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such
Lender to make or continue Eurodollar Loans in the affected currency or currencies or, in the case
of Eurodollar Loans in Dollars, to convert Base Rate Loans to Eurodollar Loans shall be suspended
until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving
rise to such determination no longer exist. Upon receipt of such notice, the Borrower shall, upon
demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable,
convert all Eurodollar Loans (in Dollars) of such Lender to Base Rate Loans, either on the last day
of the Interest Period thereof, if such Lender may lawfully continue to maintain such Eurodollar
Loans to such day, or immediately, if such Lender may not lawfully continue to maintain such
Eurodollar Loans. Upon any such conversion, the Borrower shall also pay interest on the amount so
converted, together with any amounts due with respect thereto

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pursuant to Section 3.14. Each
Lender agrees to designate a different Lending Office if such designation will avoid the need for
such notice and will not, in the good faith judgment of such Lender, otherwise be materially
disadvantageous to such Lender.

     3.12 Requirements of Law.

     (a) If, after the date hereof, as a result of the introduction of or any change in, or
in the interpretation of, any Requirement of Law, or a Lender’s compliance therewith, there
shall be any increase in the cost to such Lender of agreeing to make or making, funding or
maintaining Eurodollar Loans or (as the case may be) issuing or participating in Letters of
Credit, or a reduction in the amount received or receivable by such Lender in connection
with any of the foregoing (excluding for purposes of this subsection (a) any such increased
costs or reduction in amount resulting from (i) Taxes or Other Taxes (as to which Section
3.13 shall govern), (ii) reserve requirements utilized in the determination of the
Eurodollar Rate and (iii) the requirements of the Bank of England and the Financial Services
Authority or the European Central Bank reflected in the Mandatory Cost, other than as set
forth below), then from time to time, within 10 days of demand of such Lender (with a copy
of such demand to the Administrative Agent), the
Borrower shall pay to such Lender such additional amounts as will compensate such
Lender for such increased cost or reduction in yield. For purposes of this Section, the
Mandatory Cost, as calculated hereunder, does not represent the cost to any Lender of
complying with the requirements of the Bank of England and/or the Financial Services
Authority or the European Central Bank in relation to its making, funding or maintaining
Eurodollar Loans.

     (b) Each Lender shall promptly notify the Borrower and the Administrative Agent of any
event of which it has knowledge, occurring after the date hereof, which will entitle such
Lender to compensation pursuant to this Section 3.12 and will designate a different Lending
Office if such designation will avoid the need for, or reduce the amount of, such
compensation and will not, in the reasonable judgment of such Lender, be otherwise
materially disadvantageous to it. Any Lender claiming compensation under this Section 3.12
shall furnish to the Borrower and the Administrative Agent a statement setting forth in
reasonable detail the additional amount or amounts to be paid to it hereunder which shall be
conclusive absent manifest error.

     (c) The Borrower shall not be required to compensate a Lender pursuant to this Section
3.12 for any increased costs or reductions incurred more than 180 days prior to the date
that such Lender notifies the Borrower of the change of Law giving rise to such increased
costs or reductions and of such Lender’s intention to claim compensation therefor.

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     3.13 Taxes.

     (a) Any and all payments by a Credit Party to or for the account of the Administrative
Agent or any Lender under any Credit Document shall be made free and clear of and without
deduction for any and all present or future income, stamp or other taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and all liabilities
with respect thereto, but excluding, in the case of the Administrative Agent and each
Lender, taxes imposed on or measured by its net income, and franchise taxes imposed on it
(in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof)
under the laws of which the Administrative Agent or such Lender, as the case may be, is
organized or maintains its Lending Office (all such non-excluded taxes, duties, levies,
imposts, deductions, assessments, fees, withholdings or similar charges, and liabilities
being hereinafter referred to as “Taxes”). If a Credit Party shall be required by
any Requirement of Law to deduct any Taxes from or in respect of any sum payable under any
Credit Document to the Administrative Agent or any Lender, (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 3.13(a)), the Administrative Agent
and such Lender receives an amount equal to the sum it would have received had no such
deductions been made, (ii) such Credit Party shall make such deductions, (iii) such Credit
Party shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable Requirements of Law, and (iv) within 30 days after
the date of such payment, such Credit Party shall furnish to the Administrative Agent (which
shall forward the same to such Lender) the original or a certified copy of a receipt
evidencing payment thereof. Notwithstanding the foregoing, no additional sums shall be
payable pursuant to this Section 3.13(a) with respect to Taxes (A) that are attributable to
a Lender’s failure to comply with Section 3.13(e) or (B) that are United States withholding
taxes imposed on amounts payable to such Lender at the time the Lender becomes a party to
this Credit Agreement.

     (b) In addition, each Credit Party agrees to pay any and all present or future stamp,
court or documentary taxes and any other excise or property taxes or charges or similar
levies which arise from any payment made under any Credit Document or from the execution,
delivery, performance, enforcement or registration of, or otherwise with respect to, any
Credit Document (hereinafter referred to as “Other Taxes”).

     (c) If a Credit Party shall be required to deduct or pay any Taxes or Other Taxes from
or in respect of any sum payable under any Credit Document to the Administrative Agent or
any Lender, such Credit Party shall also pay to the Administrative Agent (for the account of
such Lender) or to such Lender, at the time interest is paid, such additional amount that
such Lender specifies as necessary to preserve the after-tax yield (after factoring in all
taxes, including taxes imposed on or measured by net income) such Lender would have received
if such Taxes or Other Taxes had not been imposed.

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     (d) Each Credit Party agrees to indemnify the Administrative Agent and each Lender for
(i) the full amount of Taxes and Other Taxes (including any Taxes or Other Taxes imposed or
asserted by any jurisdiction on amounts payable under this Section 3.13(d)) paid by the
Administrative Agent and such Lender, (ii) amounts payable under Section 3.13(c) and (iii)
any liability (including penalties, interest and expenses) arising therefrom or with respect
thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority.

     (e) Each Lender that is a “foreign corporation, partnership or trust” within the
meaning of the Code shall deliver to the Administrative Agent, prior to receipt of any
payment subject to withholding under the Code (or after accepting an assignment of an
interest herein), two duly signed completed copies of either IRS Form W-8BEN or any
successor thereto (relating to such Lender and entitling it to an exemption from, or
reduction of, withholding tax on all payments to be made to such Lender by a Credit Party
pursuant to this Credit Agreement) or IRS Form W-8ECI or any successor thereto (relating to
all payments to be made to such Lender by a Credit Party pursuant to this Credit Agreement)
or such other evidence satisfactory to the Borrower and the Administrative Agent that such
Lender is entitled to an exemption from, or reduction of, U.S. withholding tax. Thereafter
and from time to time, each such Lender shall (i) promptly submit to the Administrative
Agent such additional duly completed and signed copies of one of such forms (or such
successor forms 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 satisfactory to the Borrower and 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 Lender by a Credit Party pursuant to this Credit
Agreement, (ii) promptly notify the Agent of any change in circumstances which would modify
or render invalid any claimed exemption or reduction, and (iii) take such steps as shall not
be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may
be reasonably necessary (including the re-designation of its Lending Office) to avoid any
Requirement of Law that the Credit Parties make any deduction or withholding for taxes from
amounts payable to such Lender. If such Lender fails to deliver the above forms or other
documentation, then the Administrative Agent may withhold from any interest payment to such
Lender an amount equivalent to the applicable withholding tax imposed by Sections 1441 and
1442 of the Code, without reduction. If any Governmental Authority asserts that the
Administrative Agent did not properly withhold any tax or other amount from payments made in
respect of such Lender, such Lender shall indemnify the Administrative Agent therefor,
including all penalties and interest, any taxes imposed by any jurisdiction on the amounts
payable to the Administrative Agent under this Section 3.13(e), and costs and expenses
(including Attorney Costs) of the Administrative Agent. The obligation of the Lenders under
this Section 3.13(e) shall survive the payment of all Obligations and the resignation or
replacement of the Administrative Agent.

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     Without limiting the obligations of the Lenders set forth above regarding delivery of certain
forms and documents to establish each Lender’s status for U.S. withholding tax purposes, each
Lender agrees promptly to deliver to the Administrative Agent or the Borrower, as the
Administrative Agent or the Borrower shall reasonably request, on or prior to the Closing Date, and
in a timely fashion thereafter, such other documents and forms required by any relevant taxing
authorities under the Laws of any other jurisdiction, duly executed and completed by such Lender,
as are required under such Laws to confirm
such Lender’s entitlement to any available exemption from, or reduction of, applicable
withholding taxes in respect of all payments to be made to such Lender outside of the U.S. by the
Borrower pursuant to this Credit Agreement or otherwise to establish such Lender’s status for
withholding tax purposes in such other jurisdiction. Each Lender shall promptly (i) notify the
Administrative Agent of any change in circumstances which would modify or render invalid any such
claimed exemption or reduction, and (ii) take such steps as shall not be materially disadvantageous
to it, in the reasonable judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Lending Office) to avoid any requirement of applicable Laws of any such
jurisdiction that any Borrower make any deduction or withholding for taxes from amounts payable to
such Lender. Additionally, the Borrower shall promptly deliver to the Administrative Agent or any
Lender, as the Administrative Agent or such Lender shall reasonably request, on or prior to the
Closing Date, and in a timely fashion thereafter, such documents and forms required by any relevant
taxing authorities under the Laws of any jurisdiction, duly executed and completed by such
Borrower, as are required to be furnished by such Lender or the Administrative Agent under such
Laws in connection with any payment by the Administrative Agent or any Lender of Taxes or Other
Taxes, or otherwise in connection with the Credit Documents, with respect to such jurisdiction.

     (f) For any period with respect to which a Lender required to do so has failed to
provide the Borrower and the Administrative Agent with the appropriate form pursuant to
Section 3.13(e) (unless such failure is due to a change in treaty, law or regulation
occurring subsequent to that date on which a form originally was required to be provided),
such Lender shall not be entitled to indemnification under Section 3.13(a) or 3.13(b) with
respect to Taxes imposed by the United States of America; provided however,
that should a Lender that is otherwise exempt from withholding tax become subject to Taxes
because of its failure to deliver a form required hereunder, the Borrower shall take such
steps as such Lender shall reasonably request to assist such Lender to recover such Taxes.

     (g) If any Credit Party is required to pay any additional amounts to or for the account
of any Lender pursuant to this Section 3.13, then such Lender shall use reasonable efforts
to change the jurisdiction of its Lending Office so as to eliminate or reduce any such
additional payment which may thereafter accrue if such change, in the judgment of such
Lender, is not otherwise materially disadvantageous to such Lender.

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     (h) If the Administrative Agent or any Lender receives a refund with respect to Taxes
paid by the Borrower that, in the good faith judgment of such Lender, is allocable to such
payment, the Administrative Agent or such Lender, respectively, shall promptly pay the
amount of such refund, together with any other amounts paid by the Borrower in connection
with such refunded Taxes to the extent such other amounts are received by the Administrative
Agent or such Lender, to the Borrower, net of all out-of-pocket expenses of such Lender
incurred in obtaining such refund, provided, however, that the Borrower
agrees to promptly return such refund and such other amounts to the Administrative Agent or
such Lender, as applicable, if it receives notice from the Administrative Agent or such
Lender that the Administrative Agent or such Lender is required to repay such refund to the
applicable taxing authority. The Administrative Agent and each Lender agrees that it will
contest such Taxes or liabilities if the Administrative Agent or such Lender determined, in
its reasonable judgment, that it would not be disadvantaged or prejudiced as a result of
such contest.

     3.14 Compensation.

     Upon the written demand of any Lender, the Borrower shall promptly compensate (or cause the
applicable Designated Borrower to compensate) such Lender for and hold such Lender harmless from
any loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Eurodollar Loan on a day
other than the last day of the Interest Period for such Eurodollar Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise); or

     (b) any failure by any Borrower (for a reason other than the failure of such Lender to
make a Eurodollar Loan) to prepay, borrow, continue or convert any Loan other than a Base
Rate Loan on the date or in the amount previously requested or notified by the Borrower or
the applicable Designated Borrower; or

     (c) any failure by any Borrower to make payment of any Loan or drawing under any Letter
of Credit (or interest due thereon) denominated in an Alternative Currency on its scheduled
due date or any payment thereof in a different currency.

The amount each such Lender shall be compensated pursuant to this Section 3.14 shall include (a)
any loss incurred by such Lender in connection with the re-employment of funds prepaid, repaid, not
borrowed or paid, as the case may be, and the amount of such loss shall be the excess, if any, of
(i) interest or other cost to such Lender of the deposit or other source of funding used to make
any such Eurodollar Loan over (ii) the interest earned (or to be earned) by such Lender upon the
re-lending or other re-employment of the amount of such Eurodollar Loan for the remainder of its
respective Interest Period plus (b) any other loss of anticipated profits, any foreign
exchange losses and any loss or expense arising from the liquidation or re-employment of funds
obtained by it to maintain such Loan or from fees payable to terminate the deposits from which such
funds were obtained or from the performance of any foreign exchange contract plus

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(c) $250 plus (d) any reasonable out-of-pocket expenses (including Attorney Costs) incurred and
reasonably attributable thereto. Any Lender claiming compensation under this Section 3.14 shall
furnish to the Borrower and the Administrative Agent a statement setting forth in reasonable detail
the calculations of amounts to be paid hereunder, and the Borrower shall not be required to
compensate a Lender pursuant to this Section 3.14 for any such loss, cost or expense incurred more
than 180 days prior to the date that such Lender notifies the Borrower of the incurrence of such
loss, cost or expense.

For purposes of calculating amounts payable by the Borrower (or the applicable Designated Borrower)
to the Lenders under this Section 3.14, each Lender may deem that it funded each Eurodollar Loan
made by it at the Eurodollar Rate for such Eurodollar Loan by a matching deposit or other borrowing
in the offshore interbank market for such currency for a comparable amount and for a comparable
period, whether or not such Eurodollar Loan was in fact so funded.

     3.15 Determination and Survival of Provisions.

     All determinations by the Administrative Agent or a Lender of amounts owing under Sections 3.9
through 3.14, inclusive, shall, absent manifest error, be conclusive and binding on the parties
hereto. In determining such amount, the Administrative Agent or such Lender may use any reasonable
averaging and attribution methods. Section 3.9 through 3.14, inclusive, shall survive the
termination of this Credit Agreement and the payment of all Credit Party Obligations.

SECTION 4

GUARANTY

     4.1 Guaranty of Payment.

     Subject to Section 4.7 below, each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably guarantees to each Lender, each Affiliate of a Lender that enters
into a Hedging Agreement, the Issuing Lender and the Administrative Agent the prompt payment of the
Credit Party Obligations in full when due (whether at stated maturity, as a mandatory prepayment,
by acceleration or otherwise) and the
timely performance of all other obligations under the Credit Documents and such Hedging Agreements.
This Guaranty is a guaranty of payment and not of collection and is a continuing guaranty and shall
apply to all Credit Party Obligations whenever arising.

     4.2 Obligations Unconditional.

     The obligations of the Guarantors hereunder are absolute and unconditional, irrespective of
the value, genuineness, validity, regularity or enforceability of any of the Credit Documents or
the Hedging Agreements, or any other agreement or instrument referred to therein, to the fullest
extent

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permitted by applicable law, irrespective of any other circumstance whatsoever which might
otherwise constitute a legal or equitable discharge or defense of a surety or guarantor. Each
Guarantor agrees that this Guaranty may be enforced by the Lenders without the necessity at any
time of resorting to or exhausting any other security or collateral and without the necessity at
any time of having recourse to any of the Credit Documents or any collateral, if any, hereafter
securing the Credit Party Obligations or otherwise and each Guarantor hereby waives the right to
require the Lenders to proceed against the Borrower or any other Person (including a co-guarantor)
or to require the Lenders to pursue any other remedy or enforce any other right. Each Guarantor
further agrees that it shall have no right of subrogation, indemnity, reimbursement or contribution
against the Borrower or any other Guarantor of the Credit Party Obligations for amounts paid under
this Guaranty until such time as the Lenders (and any Affiliates of Lenders entering into Hedging
Agreements) have been paid in full, all Commitments under the Credit Agreement have been terminated
and no Person or Governmental Authority shall have any right to request any return or reimbursement
of funds from the Lenders in connection with monies received under the Credit Documents. Each
Guarantor further agrees that nothing contained herein shall prevent the Lenders from suing on any
of the Credit Documents or any of the Hedging Agreements or foreclosing its security interest in or
Lien on any collateral, if any, securing the Credit Party Obligations or from exercising any other
rights available to it under this Credit Agreement, any other of the Credit Documents, or any other
instrument of security, if any, and the exercise of any of the aforesaid rights and the completion
of any foreclosure proceedings shall not constitute a discharge of any of any Guarantor’s
obligations hereunder; it being the purpose and intent of each Guarantor that its obligations
hereunder shall be absolute, independent and unconditional under any and all circumstances.
Neither any Guarantor’s obligations under this Guaranty nor any remedy for the enforcement thereof
shall be impaired, modified, changed or released in any manner whatsoever by an impairment,
modification, change, release or limitation of the liability of the Borrower or by reason of the
bankruptcy or insolvency of the Borrower. Each Guarantor waives any and all notice of the
creation, renewal, extension or accrual of any of the Credit Party Obligations and notice of or
proof of reliance of by the Administrative Agent or any Lender upon this Guaranty or acceptance of
this Guaranty. The Credit Party Obligations, and any of them, shall conclusively be deemed to have
been created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon
this Guaranty. All dealings between the Borrower and any of the Guarantors, on the one hand, and
the Administrative Agent and the Lenders, on the other hand, likewise shall be conclusively
presumed to have been had or consummated in reliance upon this Guaranty. The Guarantors further
agree to all rights of set-off and automatic debits as set forth in Section 11.2.

     4.3 Modifications.

     Each Guarantor agrees that (a) all or any part of the collateral, if any, now or hereafter
held for the Credit Party Obligations, if any, may be exchanged, compromised or surrendered from
time to time; (b) the Lenders shall not have any obligation to protect, perfect, secure or insure
any such security interests, liens or encumbrances now or hereafter held, if any, for the Credit
Party Obligations or the properties subject thereto; (c) the time or place of payment of the Credit
Party Obligations may be changed or extended, in whole or in part, to a time certain or otherwise,
and may be renewed or accelerated, in whole or in part; (d) the Borrower and any other party liable
for

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payment under the Credit Documents may be granted indulgences generally; (e) any of the
provisions of the Credit Documents may be modified, amended or waived; (f) any party (including any
co-guarantor) liable for the payment thereof may be granted indulgences or be released; and (g) any
deposit balance for the credit of the Borrower or any other party liable for the payment of the
Credit Party Obligations or liable upon any security therefor may be released, in whole or in part,
at, before or after
the stated, extended or accelerated maturity of the Credit Party Obligations, all without notice to
or further assent by such Guarantor, which shall remain bound thereon, notwithstanding any such
exchange, compromise, surrender, extension, renewal, acceleration, modification, indulgence or
release.

     4.4 Waiver of Rights.

     Each Guarantor expressly waives to the fullest extent permitted by applicable law: (a) notice
of acceptance of this Guaranty by the Lenders and of all extensions of credit to the Borrower by
the Lenders; (b) presentment and demand for payment or performance of any of the Credit Party
Obligations; (c) protest and notice of dishonor or of default (except as specifically required in
the Credit Agreement) with respect to the Credit Party Obligations or with respect to any security
therefor; (d) notice of the Lenders obtaining, amending, substituting for, releasing, waiving or
modifying any security interest, lien or encumbrance, if any, hereafter securing the Credit Party
Obligations, or the Lenders’ subordinating, compromising, discharging or releasing such security
interests, liens or encumbrances, if any; and (e) all other notices to which such Guarantor might
otherwise be entitled.

     4.5 Reinstatement.

     The obligations of the Guarantors under this Section 4 shall be automatically reinstated if
and to the extent that for any reason any payment by or on behalf of any Person in respect of the
Credit Party Obligations is rescinded or must be otherwise restored by any holder of any of the
Credit Party Obligations, whether as a result of any proceedings in bankruptcy or reorganization or
otherwise, and each Guarantor agrees that it will indemnify the Administrative Agent and each
Lender on demand for all reasonable costs and expenses (including, without limitation, reasonable
Attorney Costs) incurred by the Administrative Agent or such Lender in connection with such
rescission or restoration, including any such costs and expenses incurred in defending against any
claim alleging that such payment constituted a preference, fraudulent transfer or similar payment
under any bankruptcy, insolvency or similar law.

     4.6 Remedies.

     The Guarantors agree that, as between the Guarantors, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, the Credit Party Obligations may be declared to be
forthwith due and payable as provided in Section 9 (and shall be deemed to have become
automatically due and payable in the circumstances provided in Section 9) notwithstanding any stay,
injunction or other prohibition preventing such declaration (or preventing such Credit Party
Obligations from becoming automatically due and payable) as against any other Person and that, in

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the event of such declaration (or such Credit Party Obligations being deemed to have become
automatically due and payable), such Credit Party Obligations (whether or not due and payable by
any other Person) shall forthwith become due and payable by the Guarantors.

     4.7 Limitation of Guaranty.

     Notwithstanding any provision to the contrary contained herein or in any of the other Credit
Documents, to the extent the obligations of any Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers) then the obligations of such Guarantor
hereunder shall be limited to the maximum amount that is permissible under applicable law (whether
federal or state or otherwise and including, without limitation, the Bankruptcy Code).

     4.8 Rights of Contribution.

     The Credit Parties agree among themselves that, in connection with payments made hereunder,
each Credit Party shall have contribution rights against the other Credit Parties as permitted
under applicable law. Such contribution rights shall be subordinate and subject in right of
payment to the obligations of the
Credit Parties under the Credit Documents and no Credit Party shall exercise such rights of
contribution until all Credit Party Obligations have been paid in full and the Commitments
terminated.

SECTION 5

CONDITIONS PRECEDENT

     5.1 Closing Conditions.

     The obligation of the Lenders, the Administrative Agent and the Issuing Lender to enter into
this Credit Agreement and make the initial Extension of Credit is subject to satisfaction (or
waiver) of the following conditions:

     (a) Executed Credit Documents. Receipt by the Administrative Agent of duly
executed copies of: (i) this Credit Agreement; (ii) any promissory notes requested by any
Lender; and (iii) all other Credit Documents, each in form and substance reasonably
acceptable to the Lenders in their sole discretion.

     (b) Authority Documents. Receipt by the Administrative Agent of the following
with respect to each Credit Party:

     (i) Organizational Documents. Copies of the articles or certificates
of incorporation or other organizational documents of each Credit Party certified to
be true and complete as of a recent date by the appropriate Governmental Authority
of

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the state or other jurisdiction of its formation and certified by a secretary or
assistant secretary of such Credit Party to be true and correct as of the Closing
Date.

     (ii) Bylaws. A copy of the bylaws or other governing documents of each
Credit Party certified by a secretary or assistant secretary of such Credit Party to
be true and correct as of the Closing Date.

     (iii) Resolutions. Copies of resolutions of the Board of Directors or
other governing body of each Credit Party approving and adopting the Credit
Documents to which it is a party, the transactions contemplated therein and
authorizing execution and delivery thereof, certified by a secretary or assistant
secretary of such Credit Party to be true and correct and in full force and effect
as of the Closing Date.

     (iv) Good Standing. Copies of certificates of good standing, existence
or its equivalent with respect to each Credit Party certified as of a recent date by
the appropriate Governmental Authority of the state or other jurisdiction of its
formation and, without duplication, the State of Minnesota except to the extent that
failure to do so could not reasonably be expected to have a Material Adverse Effect.

     (v) Incumbency. An incumbency certificate of each Credit Party
certified by a secretary or assistant secretary of such Credit Party to be true and
correct as of the Closing Date.

     (c) Opinion of Counsel. Receipt by the Administrative Agent of opinions
reasonably satisfactory to the Administrative Agent, addressed to the Administrative Agent,
the Issuing Lender and the Lenders and dated as of the Closing Date.

     (d) Financial Statements. Receipt by the Lenders of (i) the annual
consolidated financial statements (including balance sheets, income statements and cash flow
statements) of the
Borrower and its Subsidiaries for the fiscal year 2005 audited by independent public
accountants of recognized national standing, together with the “management letter” submitted
by such accountants in connection with such financial statements, (ii) the consolidated
financial statements (including balance sheets, income statements and cash flow statements)
of the Borrower and its Subsidiaries for the fiscal quarter ended September 30, 2006 and
(iii) such other financial information regarding the Borrower and its Subsidiaries as the
Administrative Agent or a Lender may request.

     (e) Consents. Receipt by the Administrative Agent of evidence that all
necessary governmental, shareholder and third party consents and approvals, if any, have
been received and no condition or Requirement of Law exists which would reasonably be likely
to restrain, prevent or impose any material adverse conditions on the transactions
contemplated hereby.

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     (f) Officer’s Certificates. The Administrative Agent shall have received a
certificate or certificates executed by an Authorized Officer of the Borrower as of the
Closing Date stating that (i) the Credit Parties and each of their Subsidiaries are in
compliance with all existing material financial obligations, (ii) no action, suit,
investigation or proceeding is pending or, to the knowledge of any Credit Party, threatened
in any court or before any arbitrator or Governmental Authority that purports to affect the
Credit Parties, any of their Subsidiaries or any transaction contemplated by the Credit
Documents, if such action, suit, investigation or proceeding would have or would reasonably
be expected to have a Material Adverse Effect, (iii) all governmental, shareholder and
third party consents and approvals, if any, with respect to the Credit Documents and the
transactions contemplated thereby have been obtained, (iv) the financial statements and
information delivered to the Administrative Agent on or before the Closing Date were
prepared in good faith and in accordance with GAAP and (v) immediately after giving effect
to this Credit Agreement, the other Credit Documents and all the transactions contemplated
herein or therein to occur on such date, (A) each Credit Party and each of their
Subsidiaries is Solvent, (B) no Default or Event of Default exists, (C) all representations
and warranties contained herein and in the other Credit Documents are true and correct in
all material respects, and (D) the Credit Parties are in compliance with each of the
financial covenants set forth in Section 7.2, including calculation thereof as of September
30, 2006.

     (g) Other Indebtedness. Receipt by the Administrative Agent of evidence
satisfactory to it that all of the Indebtedness of the Credit Parties under the Existing
Credit Agreements have been paid in full (or will be paid in full with the proceeds of the
initial Loans made herein) and all obligations of the lenders thereunder in connection
therewith have been terminated.

     (h) Fees and Expenses. Payment by the Credit Parties of all fees and expenses
owed by them to the Administrative Agent or the Lenders, including, without limitation, as
set forth in the Fee Letter.

     (i) Other. Receipt by the Lenders of such other documents, instruments,
agreements or information as reasonably and timely requested by any Lender.

     5.2 Conditions to All Extensions of Credit.

     In addition to the conditions precedent stated elsewhere herein, the Lenders shall not be
obligated to make Loans nor shall the Issuing Lender be required to issue or extend a Letter of
Credit unless:

     (a) Notice. (i) In the case of any new Loan, the Borrower shall have delivered
a Notice of Borrowing, duly executed and completed, by the time specified in Section 2.1
and/or Section 2.2, as applicable, and (ii) in the case of any Letter of Credit, the
Borrower shall have delivered to the Issuing Lender an appropriate request for issuance in
accordance with the provisions of Section 2.3.

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     (b) Representations and Warranties. The representations and warranties made by
the Credit Parties in any Credit Document are true and correct in all material respects at
and as if made as of such date except to the extent they expressly and exclusively relate to
an earlier date.

     (c) No Default. No Default or Event of Default shall exist and be continuing
either prior to or after giving effect thereto.

     (d) Availability. Immediately after giving effect to the making of such
Revolving Loan (and the application of the proceeds thereof) or to the issuance of such
Letter of Credit, as the case may be, the sum of the principal amount of Revolving Loans
outstanding plus LOC Obligations outstanding shall not exceed the Revolving Committed
Amount.

     (e) In the case of an Extension of Credit to be denominated in an Alternative Currency,
there shall not have occurred any change in national or international financial, political
or economic conditions or currency exchange rates or exchange controls which in the
reasonable opinion of the Administrative Agent, the Required Lenders (in the case of any
Loans to be denominated in an Alternative Currency) or the Issuing Lender (in the case of
any Letter of Credit to be denominated in an Alternative Currency) would make it
impracticable for such Extension of Credit to be denominated in the relevant Alternative
Currency.

The delivery of each Notice of Borrowing and each request for a Letter of Credit shall constitute a
representation and warranty by the Borrower of the correctness of the matters specified in
subsections (b), (c), and (d) above.

SECTION 6

REPRESENTATIONS AND WARRANTIES

     The Credit Parties hereby represent to the Administrative Agent, the Issuing Lender and each
Lender that:

     6.1 Organization and Good Standing.

     Each Credit Party (a) is either a partnership, a corporation or a limited liability company
duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization, (b) is duly qualified and in good standing as a foreign organization and authorized
to do business in every other jurisdiction where its ownership or operation of property or the
conduct of its business would require it to be qualified, in good standing and authorized, unless
the failure to be so qualified, in good standing or authorized would not have or would not
reasonably be expected to have a

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Material Adverse Effect and (c) has the power and authority to own
and operate its properties and to carry on its business as now conducted and as currently proposed
to be conducted.

     6.2 Due Authorization.

     Each Credit Party (a) has the power and authority to execute, deliver and perform this Credit
Agreement and the other Credit Documents to which it is a party and to incur the obligations herein
and therein provided for and (b) has duly taken all necessary action to authorize, and is duly
authorized, to execute, deliver and perform this Credit Agreement and the other Credit Documents to
which it is a party.

     6.3 Enforceable Obligations.

     Each Credit Party has duly executed this Credit Agreement and each other Credit Document to
which such Credit Party is a party and this Credit Agreement and such other Credit Documents
constitute
legal, valid and binding obligations of such Credit Party enforceable against such Credit Party in
accordance with their respective terms, except as may be limited by bankruptcy or insolvency laws
or similar laws affecting creditors’ rights generally or by general equitable principles.

     6.4 No Conflicts.

     Neither the execution and delivery of the Credit Documents to which it is a party, nor the
consummation of the transactions contemplated herein and therein, nor the performance of or
compliance with the terms and provisions hereof and thereof by a Credit Party will (a) violate,
contravene or conflict with any provision of such Credit Party’s organizational documents, (b)
violate, contravene or conflict with any Requirement of Law (including, without limitation,
Regulations T, U or X), order, writ, judgment, injunction, decree, license or permit applicable to
such Credit Party, (c) violate, contravene or conflict with contractual provisions of, or cause an
event of default under, any indenture, loan agreement, mortgage, deed of trust, contract or other
agreement or instrument to which such Credit Party is a party or by which it or its properties may
be bound, or (d) result in or require the creation of any Lien upon or with respect to the
properties of such Credit Party.

     6.5 Consents.

     Except for consents, approvals and authorizations which have been obtained, no consent,
approval, authorization or order of, or filing, registration or qualification with, any
Governmental Authority, equity owner or third party in respect of any Credit Party is required in
connection with the execution, delivery or performance of this Credit Agreement or any of the other
Credit Documents, or the consummation of any transaction contemplated herein or therein by such
Credit Party.

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     6.6 Financial Condition; Internal Control Event.

     (a) The financial statements delivered to the Administrative Agent and the Lenders pursuant to
Section 5.1(d) and Sections 7.1(a) and (b): (a) have been prepared in accordance with GAAP and (b)
present fairly the consolidated financial condition, results of operations and cash flows of the
Borrower and its Subsidiaries as of such date and for such periods. Since December 31, 2005, there
has been no sale, transfer or other disposition by the Borrower or any of its Subsidiaries of any
material part of the business or property of the Borrower and its Subsidiaries, taken as a whole,
or purchase or other acquisition by any such Person of any business or property (including any
Capital Stock of any other Person) material in relation to the consolidated financial condition of
the Borrower and its Subsidiaries, taken as a whole, in each case, which, is not (i) reflected in
the most recent financial statements delivered to the Lenders pursuant to Section 5.1(d) and
Section 7.1 or in the notes thereto or (ii) otherwise permitted by the terms of this Credit
Agreement and communicated to the Administrative Agent and the Lenders.

     (b) To the best knowledge of the Borrower, no Internal Control Event exists or has
occurred since the date of the financial statements delivered pursuant to Section 7.1(a) that has
resulted in or could reasonably be expected to result in a misstatement in any material respect, in
any financial information delivered or to be delivered to the Administrative Agent or the Lenders,
of (i) covenant compliance calculations provided hereunder or (ii) the assets, liabilities,
financial condition or results of operations of the Borrower and its Subsidiaries on a consolidated
basis.

     6.7 No Material Change.

     Since December 31, 2005, there has been no development or event relating to or affecting any
Credit Party or any of its Subsidiaries which has had or would reasonably be expected to have a
Material Adverse Effect.

     6.8 Disclosure.

     Neither this Credit Agreement, nor any other Credit Document, nor any financial statements
delivered to the Administrative Agent or the Lenders nor any other document, certificate or
statement furnished to the Administrative Agent, the Issuing Lender or the Lenders by or on behalf
of any Credit Party in connection with the transactions contemplated hereby contains any untrue
statement of a material fact or omits to state a material fact necessary in order to make the
statements contained therein or herein not misleading.

     6.9 No Default.

     No Credit Party nor any of its Subsidiaries is in default under any contract, lease, loan
agreement, indenture, mortgage, security agreement or other agreement or obligation to which it is
a party or by which any of its properties is bound, which default has had or would reasonably be
expected to have a Material Adverse Effect.

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     6.10 Litigation.

     There are no actions, suits or legal, equitable, arbitration or administrative proceedings,
pending or, to the knowledge of any Credit Party, threatened against, any Credit Party or any of
its Subsidiaries or with respect to its properties or revenues which (a) purport to affect or
pertain to this Credit Agreement or the other Credit Documents or the transactions contemplated
herein and therein or (b) would have or would reasonably be expected to have a Material Adverse
Effect.

     6.11 Taxes.

     Each Credit Party and each of its Subsidiaries has filed, or caused to be filed, all material
tax returns (federal, state, local and foreign) required to be filed and has paid (a) all amounts
of taxes shown thereon to be due (including interest and penalties) and (b) all other material
taxes, fees, assessments and other governmental charges (including mortgage recording taxes,
documentary stamp taxes and intangibles taxes) owing by it, except for such taxes (i) which are not
yet delinquent or (ii) that are being contested in good faith and by proper proceedings, and
against which adequate reserves are being maintained in accordance with GAAP. No Credit Party is
aware of any proposed material tax assessments against any Credit Party or any of its Subsidiaries.

     6.12 Compliance with Law.

     Each Credit Party and each of its Subsidiaries is in compliance with all material Requirements
of Law (including, without limitation, Environmental Laws and ERISA) and all material orders,
writs, injunctions and decrees applicable to it, or to its properties.

     6.13 Licenses, etc.

     Each Credit Party and each of its Subsidiaries has obtained, and holds in full force and
effect, all franchises, licenses, permits, certificates, authorizations, qualifications,
accreditations, easements, rights of way, intellectual property rights and other rights, consents
and approvals which are necessary for the operation of its business as presently conducted, except
for such exceptions as would not have or would not reasonably be expected to have a Material
Adverse Effect.

     6.14 Title to Properties.

     Each Credit Party, and each of its Subsidiaries, is the owner of, and has good and marketable
title to, or has a valid license or lease to use, all of its properties and assets (except for
minor defects in title, licenses or leases that do not materially interfere with its ability to
conduct its business or to utilize its properties or assets for their intended purposes) and none
of such properties or assets is subject to any Liens other than Permitted Liens.

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     6.15 Insurance.

     The properties of each Credit Party and each of its Subsidiaries are insured with financially
sound and reputable insurance companies that are not Affiliates of the Borrower, in such amounts,
with such deductibles and covering such risks, as are customarily carried by companies engaged in
similar businesses and owning similar properties in localities where the Credit Parties or their
Subsidiaries operate.

     6.16 Use of Proceeds.

     The proceeds of the Loans will be used solely for the purposes specified in Section 7.10. No
proceeds of the Loans will be used for the Acquisition of another Person unless such Acquisition is
a Permitted Acquisition.

     6.17 Government Regulation.

     (a) No Borrower is engaged or will engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U), or extending credit for the purpose of purchasing or carrying margin stock.
Following the application of the proceeds of each Loan or drawing under each Letter of
Credit, not more than 25% of the value of the assets (either of the applicable Borrower only
or of the Borrower and its Subsidiaries on a consolidated basis) will be margin stock.

     (b) No Credit Party is or is required to be registered as an “investment company” under
the Investment Company Act of 1940.

     6.18 No Burdensome Restrictions.

     No Credit Party nor any of its Subsidiaries is a party to any agreement or instrument or
subject to any other obligation or any charter or corporate restriction or any provision of any
applicable law, rule or regulation which, individually or in the aggregate, would have or would
reasonably be expected to have a Material Adverse Effect.

     6.19 ERISA.

     Except as would not result in or would not reasonably be expected to result in a Material
Adverse Effect:

     (a) (i) No ERISA Event has occurred, and, to the best knowledge of the Credit Parties,
each of their Subsidiaries and each ERISA Affiliate, no event or condition has occurred or
exists as a result of which any ERISA Event could reasonably be expected to occur, with
respect to any Plan; (ii) no “accumulated funding deficiency,” as such term is defined in
Section 302 of ERISA and Section 412 of the Code, whether or not waived, has

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occurred with
respect to any Plan and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with respect to any
Plan; (iii) each Plan has been maintained, operated, and funded in compliance with its own
terms and in material compliance with the provisions of ERISA, the Code,
and any other applicable federal or state laws; (iv) each Plan that is intended to qualify
under Section 401(a) of the Code has received a favorable determination letter from the IRS
or an application for such a letter is currently being processed by the IRS with respect
thereto and, to the best knowledge of the Credit Parties, each of their Subsidiaries and
each ERISA Affiliate, nothing has occurred which would prevent, or cause the loss of, such
qualification; and (v) no Lien in favor or the PBGC or a Plan has arisen or is reasonably
likely to arise on account of any Plan.

     (b) The actuarial present value of all “benefit liabilities” (as defined in Section
4001(a)(16) of ERISA), whether or not vested, under each Single Employer Plan, as of the
last annual valuation date prior to the date on which this representation is made or deemed
made (determined, in each case, in accordance with Financial Accounting Standards Board
Statement 87, utilizing the actuarial assumptions used in such Plan’s most recent actuarial
valuation report), did not exceed as of such valuation date the fair market value of the
assets of such Plan allocated to such accrued liabilities.

     (c) No Credit Party nor any Subsidiary of a Credit Party nor any ERISA Affiliate has
incurred, or, to the best of each such party’s knowledge, is reasonably expected to incur,
any liability under Title IV of ERISA with respect to any Single Employer Plan, or any
withdrawal liability under ERISA to any Multiemployer Plan or Multiple Employer Plan. No
Credit Party nor any Subsidiary of a Credit Party nor any ERISA Affiliate would become
subject to any withdrawal liability under ERISA if any such party were to withdraw
completely from all Multiemployer Plans and Multiple Employer Plans as of the valuation date
most closely preceding the date on which this representation is made or deemed made. No
Credit Party nor any Subsidiary of a Credit Party nor any ERISA Affiliate has received any
notification that any Multiemployer Plan is in reorganization (within the meaning of Section
4241 of ERISA), is insolvent (within the meaning of Section 4245 of ERISA), or has been
terminated (within the meaning of Title IV of ERISA), and no Multiemployer Plan is, to the
best of each such Person’s knowledge, reasonably expected to be in reorganization,
insolvent, or terminated. No Credit Party nor any Subsidiary of a Credit Party nor any
ERISA Affiliate has engaged in a transaction that could be subject to Sections 4069 or
4212(c) of ERISA.

     (d) No prohibited transaction (within the meaning of Section 406 of ERISA or Section
4975 of the Code) or breach of fiduciary responsibility has occurred with respect to a Plan
which has subjected or may subject a Credit Party, any Subsidiary of a Credit Party or any
ERISA Affiliate to any liability under Sections 406, 409, 502(i), or 502(l) of ERISA or
Section 4975 of the Code, or under any agreement or other instrument pursuant to which a
Credit Party, any Subsidiary of a Credit Party or any ERISA Affiliate has agreed or is
required to indemnify any person against any such liability. There are no pending or, to
the

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best knowledge of the Credit Parties, each of their Subsidiaries and each ERISA
Affiliate, threatened claims, actions or lawsuits, or action by any Governmental Authority,
with respect to any Plan that could reasonably be expected to have a Material Adverse
Effect.

     (e) No Credit Party nor any Subsidiary of a Credit Party nor any ERISA Affiliate has
any material liability with respect to “expected post-retirement benefit obligations” within
the meaning of the Financial Accounting Standards Board Statement 106. Each Plan that is a
welfare plan (as defined in Section 3(1) of ERISA) to which Sections 601-609 of ERISA and
Section 4980B of the Code apply has been administered in compliance in all material respects
with such sections.

     6.20 Environmental Matters.

     (a) Except as would not result in or would not reasonably be expected to result in a
Material Adverse Effect:

     (i) Each of the real properties owned, leased or operated by a Credit Party or
any of its Subsidiaries (the “Real Properties”) and all operations at the
Real Properties are in
compliance with all applicable Environmental Laws, and there is no violation of any
Environmental Law with respect to the Real Properties or the businesses operated by
the Credit Parties or any of their Subsidiaries (the “Businesses”), and
there are no conditions relating to the Businesses or Real Properties that would
reasonably be expected to give rise to liability under any applicable Environmental
Laws.

     (ii) No Credit Party nor any of its Subsidiaries has received any written
notice of, or inquiry from any Governmental Authority regarding, any violation,
alleged violation, non-compliance, liability or potential liability regarding
Hazardous Materials or compliance with Environmental Laws with regard to any of the
Real Properties or the Businesses, nor, to the knowledge of a Credit Party or any of
its Subsidiaries, is any such notice being threatened.

     (iii) Hazardous Materials have not been transported or disposed of from the
Real Properties, or generated, treated, stored or disposed of at, on or under any of
the Real Properties or any other location, in each case by, or on behalf or with the
permission of, a Credit Party or any of its Subsidiaries in a manner that would give
rise to liability under any applicable Environmental Laws.

     (iv) No judicial proceeding or governmental or administrative action is pending
or, to the knowledge of a Credit Party or any of its Subsidiaries, threatened, under
any Environmental Law to which a Credit Party or any of its Subsidiaries is or will
be named as a party, nor are there any consent decrees or other decrees, consent
orders, administrative orders or other orders, or other administrative or judicial

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requirements outstanding under any Environmental Law with respect to a Credit Party
or any of its Subsidiaries, the Real Properties or the Businesses.

     (v) There has been no release (including, without limitation, disposal) or
threat of release of Hazardous Materials at or from the Real Properties, or arising
from or related to the operations of a Credit Party or any of its Subsidiaries in
connection with the Real Properties or otherwise in connection with the Businesses
where such release constituted a violation of, or would give rise to liability
under, any applicable Environmental Laws.

     (vi) None of the Real Properties contains, or has previously contained, any
Hazardous Materials at, on or under the Real Properties in amounts or concentrations
that, if released, constitute or constituted a violation of, or could give rise to
liability under, Environmental Laws.

     (vii) No Credit Party, nor any of its Subsidiaries, has assumed any liability
of any Person (other than another Credit Party, or one of its Subsidiaries) under
any Environmental Law.

     (b) The Credit Parties and its Subsidiaries have adopted procedures that are designed
to (i) ensure that such Credit Party or Subsidiary, any of its operations and each of the
Real Properties complies with applicable Environmental Laws and (ii) minimize any
liabilities or potential liabilities that each Credit Party or Subsidiary, any of its
operations and each of the Real Properties may have under applicable Environmental Laws.

     6.21 Intellectual Property.

     Each Credit Party and each of its Subsidiaries owns, or has the legal right to use, all
patents, trademarks, tradenames, copyrights, technology, know-how and processes (the
“Intellectual Property”) necessary for each of them to conduct its business as currently
conducted, except where failure to own or have such legal right to use would not have or would not
reasonably be expected to have a Material Adverse
Effect. No claim has been asserted and is pending by any Person challenging or questioning the use
of any Intellectual Property owned by any Credit Party or any of its Subsidiaries or that any
Credit Party or any of its Subsidiaries has a right to use or the validity or effectiveness of any
such Intellectual Property, nor does any Credit Party or any of its Subsidiaries have knowledge of
any such claim, and, to the knowledge of the Credit Parties and their Subsidiaries, the use of any
Intellectual Property by the Credit Parties and their Subsidiaries does not infringe on the rights
of any Person, except for such claims and infringements that in the aggregate, would not have or
would not reasonably be expected to have a Material Adverse Effect.

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     6.22 Subsidiaries.

     Set forth on Schedule 6.22 is a complete and accurate list of all Subsidiaries of each
Credit Party. Schedule 6.22 may be updated from time to time by the Borrower by giving
written notice thereof to the Administrative Agent.

     6.23 Solvency.

     Each Credit Party is and, after consummation of the transactions contemplated by this Credit
Agreement, will be Solvent.

     6.24 Indebtedness.

     The Credit Parties and their Subsidiaries have no Indebtedness other than Indebtedness
permitted by Section 8.1.

     6.25 Investments; Liens.

     All Investments of each Credit Party and its Subsidiaries are Permitted Investments. All
Liens on the property or assets of the Credit Parties and their Subsidiaries are Permitted Liens.

     6.26 Force Majeure.

     Since the date of the financial statements delivered in accordance with Section 5.1(d) or, if
later, the date of the most recent financial statements delivered in accordance with Section 7.1(a)
or Section 7.1(b), no event or condition has occurred that results from fire or other casualty,
strike, lockout or other labor disruption, embargo, sabotage, confiscation, condemnation, riot,
civil disturbance, activity of armed forces or act of God that has had or would reasonably be
expected to have a Material Adverse Effect.

SECTION 7

AFFIRMATIVE COVENANTS

     Each Credit Party hereby covenants and agrees that so long as this Credit Agreement is in
effect and until the Loans and LOC Obligations, together with interest and fees and other
obligations then due and payable hereunder, have been paid in full and the Commitments and Letters
of Credit hereunder shall have terminated:

     7.1 Information Covenants.

     The Credit Parties will furnish, or cause to be furnished, to the Administrative Agent (for
further distribution to the Lenders):

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     (a) Annual Financial Statements. As soon as available, and in any event within
90 days after the close of each fiscal year of the Borrower, a consolidated balance sheet
and income
statement of the Borrower and its Subsidiaries, as of the end of such fiscal year, together
with related consolidated statements of operations, retained earnings, changes in
shareholders’ equity and cash flows for such fiscal year, setting forth in comparative form
consolidated figures for the preceding fiscal year, all such consolidated financial
information described above to be in reasonable form and detail and audited by independent
certified public accountants of recognized national standing reasonably acceptable to the
Administrative Agent and whose opinion shall be to the effect that such financial statements
have been prepared in accordance with GAAP and shall not be limited as to the scope of the
audit or qualified in any manner.

     (b) Quarterly Financial Statements. As soon as available, and in any event
within 45 days after the close of each of the first three fiscal quarters of the Borrower,
an unaudited consolidated balance sheet and income statement of the Borrower and its
Subsidiaries, as of the end of such fiscal quarter, together with related consolidated
statements of operations and consolidated statements of retained earnings and of cash flows
for such fiscal quarter in each case setting forth in comparative form consolidated figures
for the corresponding period of the preceding fiscal year, all such financial information
described above to be in reasonable form and detail and reasonably acceptable to the
Administrative Agent, and accompanied by a certificate of an Authorized Officer of the
Borrower to the effect that such quarterly financial statements fairly present in all
material respects the consolidated financial condition of the Borrower and its Subsidiaries
and have been prepared in accordance with GAAP, subject to changes resulting from audit and
normal year-end audit adjustments.

     (c) Officer’s Certificate. At the time of delivery of the financial statements
provided for in Sections 7.1(a) and 7.1(b) above, a certificate of an Authorized Officer of
the Borrower substantially in the form of Exhibit 7.1(c), (i) demonstrating
compliance with the financial covenants contained in Section 7.2 by calculation thereof as
of the end of each such fiscal period, (ii) demonstrating compliance with any other terms of
this Credit Agreement as reasonably requested by the Administrative Agent, (iii) stating
that no Default or Event of Default exists, or if any Default or Event of Default does
exist, specifying the nature and extent thereof and what action the Borrower proposes to
take with respect thereto and (iv) calculating the Adjusted Leverage Ratio as of the end of
such fiscal period.

     (d) Annual Business Plan and Budgets. Within 90 days after the end of each
fiscal year of the Borrower, an annual business plan and budget (including budgeted Capital
Expenditures) of the Borrower and its Subsidiaries on a consolidated basis containing, among
other things, pro forma financial projections for the next fiscal year (including income
statements, balance sheets and cash flow statements).

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     (e) Reports. Promptly upon transmission or receipt thereof, (a) copies of any
filings and registrations with, and reports to or from, the Securities and Exchange
Commission, or any successor agency, and copies of all financial statements, proxy
statements, notices and reports as a Credit Party or any of its Subsidiaries shall send to
its shareholders generally and (b) upon the written request of the Administrative Agent, all
reports and written information to and from the United States Environmental Protection
Agency, or any state or local agency responsible for environmental matters, the United
States Occupational Safety and Health Administration, or any state or local agency
responsible for health and safety matters, or any successor agencies or authorities
concerning environmental, health or safety matters.

     (f) Accountant’s Certificate. Within the period for delivery of the annual
financial statements provided in Section 7.1(a), a certificate of the accountants conducting
the annual audit stating that they have reviewed this Credit Agreement and stating further
whether, in the course of their audit, they have become aware that the Borrower is not in
compliance with any of the affirmative or negative covenants set forth in Section 7 or
Section 8 of this Credit Agreement,
insofar as such covenants relate to accounting matters or are calculated based upon audited
financial information.

     (g) Auditor’s Reports. Promptly upon receipt thereof, a copy of any other
report or “management letter” submitted or presented by independent accountants to any
Credit Party or any of its Subsidiaries in connection with any annual, interim or special
audit of the books of such Person.

     (h) Notices. Upon a Credit Party obtaining knowledge thereof, the Borrower
will give written notice to the Administrative Agent promptly (and in any event within two
Business Days) of (a) the occurrence of an event or condition consisting of a Default or
Event of Default, specifying the nature and existence thereof and what action the Borrower
proposes to take with respect thereto, (b) the occurrence of any of the following with
respect to any Credit Party or any of its Subsidiaries (i) the pendency or commencement of
any litigation, arbitration or governmental proceeding against a Credit Party or any of its
Subsidiaries which, if adversely determined, would have or would reasonably be expected to
have a Material Adverse Effect, (ii) material non-compliance with, or the institution of any
proceedings against a Credit Party or any of its Subsidiaries with respect to, or the
receipt of written notice by such Person of potential liability or responsibility for
violation, or alleged violation of, any Requirement of Law (including, without limitation,
Environmental Laws) the violation of which would have or would reasonably be expected to
have a Material Adverse Effect and (iii) non-compliance with any contractual obligation of a
Credit Party or any of its Subsidiaries which would have or would reasonably be expected to
have a Material Adverse Effect and (c) any change to the financial information used to
calculate the Adjusted Leverage Ratio for the most recently occurring Calculation Date that
would have the effect of changing the existing Pricing Level pursuant to the definition of
“Applicable Percentage” set forth in Section 1.1.

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     (i) ERISA. Upon a Credit Party, any Subsidiary of a Credit Party or any ERISA
Affiliate obtaining knowledge thereof, such Person shall give written notice to the
Administrative Agent and each of the Lenders promptly (and in any event within two Business
Days) of: (i) any event or condition, including, but not limited to, any Reportable Event,
that constitutes, or might reasonably lead to, an ERISA Event; (ii) with respect to any
Multiemployer Plan, the receipt of notice as prescribed in ERISA or otherwise of any
withdrawal liability assessed against a Credit Party, any Subsidiary of a Credit Party or
any ERISA Affiliate, or of a determination that any Multiemployer Plan is in reorganization
or insolvent (both within the meaning of Title IV of ERISA); (iii) the failure to make full
payment on or before the due date (including extensions) thereof of all amounts which a
Credit Party, any Subsidiary of a Credit Party or any ERISA Affiliate is required to
contribute to each Plan pursuant to its terms and as required to meet the minimum funding
standard set forth in ERISA and the Code with respect thereto; or (iv) any change in the
funding status of any Plan that could have a Material Adverse Effect; in each case together
with a description of any such event or condition or a copy of any such notice and a
statement by an Authorized Officer of the Borrower briefly setting forth the details
regarding such event, condition, or notice, and the action, if any, which has been or is
being taken or is proposed to be taken by such Person with respect thereto. Promptly upon
request, the Credit Parties shall furnish the Administrative Agent and the Lenders with such
additional information concerning any Plan as may be reasonably requested, including, but
not limited to, copies of each annual report/return (Form 5500 series), as well as all
schedules and attachments thereto required to be filed with the Department of Labor and/or
the Internal Revenue Service pursuant to ERISA and the Code, respectively, for each “plan
year” (within the meaning of Section 3(39) of ERISA).

     (j) Environmental. During the existence of an Event of Default, and upon the
written request of the Administrative Agent, the Credit Parties will furnish or cause to be
furnished to the Administrative Agent, at the Credit Parties’ expense, a report of an
environmental assessment of reasonable scope, form and depth, including, where appropriate,
invasive soil or groundwater sampling, by a consultant reasonably acceptable to the
Administrative Agent regarding any release
or threat of release of Hazardous Materials on any property owned, leased or operated by a
Credit Party and the compliance by the Credit Parties with Environmental Laws. If the
Credit Parties fail to deliver such an environmental report within seventy-five (75) days
after receipt of such written request, then the Administrative Agent may arrange for same,
and the Credit Parties hereby grant to the Administrative Agent and its representatives
access to the Real Properties and a license of a scope reasonably necessary to undertake
such an assessment (including, where appropriate, invasive soil or groundwater sampling).
The reasonable cost of any assessment arranged for by the Administrative Agent pursuant to
this provision will be payable by the Credit Parties on demand.

     (k) Other Information. With reasonable promptness upon any such request, such
other information regarding the business, properties or financial condition of the Credit

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Parties and their Subsidiaries as the Administrative Agent or any Lender may reasonably
request.

     Documents required to be delivered pursuant to this Credit Agreement (to the extent any such
documents are included in materials otherwise filed with the SEC) may be delivered electronically
and if so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower
posts such documents, or provide a link thereto on the Borrower’s website on the Internet at the
website address listed on Schedule 11.1 or (ii) on which such documents are posted on the
Borrower’s behalf on an Internet or intranet website, if any, to which each Lender and the
Administrative Agent have access (whether a commercial, third-party website or whether sponsored by
the Administrative Agent), including the SEC’s EDGAR website; provided that the Borrower
shall deliver paper copies of such documents to the Administrative Agent for any Lender that
requests the Borrower to deliver such paper copies until a written request to cease delivering
paper copies is given by the Administrative Agent or such Lender. Notwithstanding anything
contained herein, in every instance the Borrower shall be required to provide paper copies of the
officer certificate required by Section 7.1(c) to the Administrative Agent. Except for such
officer certificate, the Administrative Agent shall have no obligation to request the delivery or
to maintain copies of the documents referred to above, and in any event shall have no
responsibility to monitor compliance by the Borrower with any such request for delivery, and each
Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such
documents.

     The Borrower hereby acknowledges that (a) the Administrative Agent and/or the Arrangers will
make available to the Lenders and the Issuing Lender materials and/or information provided by or on
behalf of the Borrower hereunder (collectively, “Borrower Materials”) by posting the
Borrower Materials on IntraLinks or another similar electronic system (the “Platform”) and
(b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive
material non-public information with respect to the Borrower or its securities) (each, a
“Public Lender”). The Borrower hereby agrees that (w) all Borrower Materials (other than
SEC Reports) that are to be made available to Public Lenders shall be clearly and conspicuously
marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on
the first page thereof, (x) by marking Borrower Materials “PUBLIC,” the Borrower shall be deemed to
have authorized the Administrative Agent, the Arrangers, the L/C Issuer and the Lenders to treat
such Borrower Materials as either publicly available information or not containing any material
non-public information (although it may be sensitive and proprietary) with respect to the Borrower
or their securities for purposes of United States Federal and state securities laws; (y) all SEC
Reports and all Borrower Materials marked “PUBLIC” are permitted to be made available through a
portion of the Platform designated “Public Investor;” and (z) the Administrative Agent and the
Arrangers shall be entitled to treat any Borrower Materials (other than SEC Reports) that are not
marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated
“Public Investor.” The Borrower shall be in compliance with all requirements to deliver information
under this Credit Agreement if they have made such information available to the Administrative
Agent and, to the extent required, Lenders other than Public Lenders, and the failure of Public
Lenders to

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receive information made available to other Lenders shall not result in any breach of
this Credit Agreement.

     7.2 Financial Covenants.

     (a) Leverage Ratio. The Leverage Ratio, as of the last day of each fiscal
quarter of the Borrower, shall be less than or equal to 3.00 to 1.0.

     (b) Interest Coverage Ratio. The Interest Coverage Ratio, as of the last day
of each fiscal quarter of the Borrower, shall be greater than or equal to 3.50 to 1.0.

     7.3 Preservation of Existence and Franchises.

     Each of the Credit Parties will, and will cause its Subsidiaries to, do all things necessary
to preserve and keep in full force and effect its existence and all material rights, franchises,
intellectual property and authority except as permitted by Section 8.5.

     7.4 Books and Records.

     Each of the Credit Parties will, and will cause its Subsidiaries to, keep complete and
accurate books and records of its transactions in accordance with GAAP (including the establishment
and maintenance of appropriate reserves).

     7.5 Compliance with Law.

     Each of the Credit Parties will, and will cause its Subsidiaries to, comply with all material
Requirements of Law, and all material restrictions imposed by all Governmental Authorities,
applicable to it and its property (including, without limitation, Environmental Laws and ERISA).

     7.6 Payment of Taxes and Other Indebtedness.

     Each of the Credit Parties will, and will cause its Subsidiaries to, pay, settle or discharge
(a) all material taxes, assessments and governmental charges or levies imposed upon it, or upon its
income or profits, or upon any of its properties, before they shall become delinquent, (b) all
lawful claims (including claims for labor, materials and supplies) which, if unpaid, might give
rise to a Lien upon any of its properties, and (c) all of its other Indebtedness as it shall become
due (to the extent such repayment is not otherwise prohibited by this Credit Agreement);
provided, however, that a Credit Party shall not be required to pay any such tax,
assessment, charge, levy, claim or Indebtedness which is being contested in good faith by
appropriate proceedings and as to which adequate reserves therefor have been established in
accordance with GAAP, unless the failure to make any such payment (i) would give rise to an
immediate right to foreclose or collect on a Lien securing such amounts or (ii) would have or would
reasonably be expected to have a Material Adverse Effect.

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     7.7 Insurance.

     Each of the Credit Parties will, and will cause each of its Subsidiaries to, at all times
maintain in full force and effect insurance (including liability, casualty and business
interruption insurance) with reputable national companies that are not Affiliates of the Borrower,
in such amounts, covering such risks and liabilities and with such deductibles and self-insurance
retentions as are in accordance with normal industry practice; provided that the Borrower
may maintain a program of self-insurance with respect to products liability and worker’s
compensation liability.

     7.8 Maintenance of Property.

     Each of the Credit Parties will, and will cause its Subsidiaries to, maintain and preserve its
properties and equipment in good repair, working order and condition, normal wear and tear and
damages from
casualty excepted, and will make, or cause to be made, in such properties and equipment from time
to time all repairs, renewals, replacements, extensions, additions, betterments and improvements
thereto as may be needed or proper, to the extent and in the manner customary for companies in
similar businesses.

     7.9 Performance of Obligations.

     Each of the Credit Parties will, and will cause its Subsidiaries to, perform in all material
respects all of its obligations under the terms of all material contracts, agreements, indentures,
mortgages, security agreements or other debt instruments to which it is a party or by which it or
its properties may be bound.

     7.10 Use of Proceeds.

     The Credit Parties will use the proceeds of the Loans solely (a) to repay Indebtedness of the
Borrower identified in Section 5.1(g), (b) to provide working capital for the Borrower, (c) to
repurchase equity of the Borrower and (d) for general corporate purposes of the Borrower. The
Borrower will use the Letters of Credit solely for the purposes set forth in Section 2.3(a).

     7.11 Audits/Inspections.

     Upon reasonable notice and during normal business hours, at the Credit Parties’ expense, each
Credit Party will, and will cause each of its Subsidiaries to, permit representatives appointed by
the Administrative Agent or any Lender, including, without limitation, independent accountants,
agents, attorneys and appraisers to visit and inspect such Credit Party’s or Subsidiary’s property,
including its books and records, its accounts receivable and inventory, its facilities and its
other business assets, and to make photocopies or photographs thereof and to write down and record
any information such representative obtains and shall permit the Administrative Agent, any Lender
or its representatives to investigate and verify the accuracy of information provided to the
Administrative Agent or the Lenders and to discuss all such matters with the officers, employees
and representatives

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of the Credit Parties and/or their Subsidiaries; provided
however that, unless an Event of Default shall exist and be continuing, the Administrative
Agent and the Lenders shall not, in the aggregate, exercise their rights under this Section 7.11
more than two times during any calendar year and only one such time shall be at the Credit Parties’
expense. Notwithstanding the foregoing, no information protected by an attorney-client privilege
shall be required to be disclosed pursuant to this Section 7.11; provided however
that in the event any Credit Party claims that any materials requested for review, investigation or
discussion by the Administrative Agent or any Lender, or any of its representatives pursuant to
this Section 7.11 is protected by an attorney-client privilege, then such Credit party shall (a)
provide the Administrative Agent or such Lender with a reasonably acceptable basis for the
assertion of the privilege, (b) remove or redact only those portions of the materials deemed to be
privileged and (c) reasonably cooperate with the Administrative Agent or such Lender to determine a
method by which the information which the Administrative Agent or such Lender reasonably deemed
necessary to review, investigate or discuss may be obtained by the Administrative Agent in an
alternative method which will not jeopardize any attorney-client privilege.

     7.12 Additional Credit Parties.

     At the time any Person becomes a Domestic Subsidiary, the Borrower shall so notify the
Administrative Agent and promptly thereafter (but in any event within 30 days) shall cause such
Person to (a) execute a Joinder Agreement in substantially the same form as Exhibit 7.12,
(b) deliver such other documentation as the Administrative Agent may reasonably request in
connection with the foregoing, including, without limitation, certified resolutions and other
organizational and authorizing documents of such Person and favorable opinions of counsel to such
Person (which shall cover, among other things, the legality, validity, binding effect and
enforceability of the documentation referred to above), all in form, content and scope reasonably
satisfactory to the Administrative Agent and (c) update such schedules to the Credit Agreement as
appropriate to reflect the joinder of such new Domestic Subsidiary.

SECTION 8

NEGATIVE COVENANTS

     Each Credit Party hereby covenants and agrees that so long as this Credit Agreement is in
effect and until the Loans and LOC Obligations, together with interest, fees and other obligations
then due and payable hereunder, have been paid in full and the Commitments and Letters of Credit
hereunder shall have terminated:

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     8.1 Indebtedness.

     Subject to Section 8.2, no Credit Party will, nor will it permit any of its Subsidiaries to,
contract, create, incur, assume or permit to exist any Indebtedness, other than:

     (a) Indebtedness arising under this Credit Agreement and the other Credit Documents;

     (b) Indebtedness in respect of current accounts payable and accrued expenses incurred
in the ordinary course of business and to the extent not current, accounts payable and
accrued expenses that are subject to bona fide dispute and against which adequate reserves
have been established in accordance with GAAP;

     (c) Indebtedness owing by a Credit Party to another Credit Party;

     (d) purchase money Indebtedness (including Capital Leases) to finance the purchase of
fixed assets (including equipment); provided that (i) the sum of (A) the total
amount of all such Indebtedness outstanding for the Credit Parties and their Subsidiaries
plus (B) the aggregate amount of Synthetic Leases outstanding pursuant to clause (e) below
shall not exceed an aggregate principal amount of $30,000,000 at any one time outstanding;
(ii) such Indebtedness when incurred shall not exceed the purchase price of the asset(s)
financed; and (iii) no such Indebtedness shall be refinanced for a principal amount in
excess of the principal balance outstanding thereon at the time of such refinancing;

     (e) Indebtedness comprised of Synthetic Leases; provided that the sum of (i) the total
amount of all such Indebtedness for the Credit Parties and their Subsidiaries outstanding
plus (ii) the aggregate amount of purchase money Indebtedness outstanding pursuant to clause
(d) above shall not exceed an aggregate principal amount of $30,000,000 at any one time
outstanding.

     (f) Indebtedness owing by a Foreign Subsidiary to another Foreign Subsidiary or to a
Credit Party;

     (g) Indebtedness of the Foreign Subsidiaries in addition to clause (f) above in an
amount not to exceed $25,000,000 in the aggregate at any one time outstanding;

     (h) reimbursement obligations with respect to draws under letters of credit issued to
(i) provide for, or to ensure, the payment of the purchase prices of goods acquired by a
Credit Party or any of its Subsidiaries or (ii) support obligations of a Credit Party or any
of its Subsidiaries provided that such reimbursement obligations are paid in full on
the dates the financial institutions that issued such letters of credit pay the draws;

     (i) Guaranty Obligations permitted by Section 8.2;

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     (j) Indebtedness evidenced by Hedging Agreements entered into in the ordinary course of
business and not for speculative purposes;

     (k) Indebtedness set forth on Schedule 8.1(k); and

     (l) other unsecured Funded Debt of a Credit Party; provided that the principal
amount of such unsecured Funded Debt, if deemed included in the calculation of the Leverage
Ratio as of the last day of the most recently ended fiscal quarter, would not cause the
Leverage Ratio to exceed 2.25 to 1.0 on such date.

     8.2 Guaranty Obligations.

     Notwithstanding anything in Section 8.1 to the contrary, no Credit Party will, nor will it
permit its Subsidiaries to contract, create, incur, assume or permit to exist any Guaranty
Obligation other than:

     (a) the obligation of such Person to purchase the property of another Person from a
creditor of such other Person who has repossessed such property as a result of a default by
such other Person under a dealer floor-plan financing arrangement with such creditor,
pursuant to those repurchase agreements existing on the Closing Date as set forth on
Schedule 8.2(a);

     (b) Guaranty Obligations of any Subsidiary of the Borrower with respect to any Hedging
Agreement entered into by the Borrower with a Lender or an Affiliate of a Lender;

     (c) Guaranty Obligations of any Subsidiary of the Borrower with respect to any letter
of credit that is issued by a Lender or an Affiliate of a Lender for the account of the
Borrower; and

     (d) the liability, or potential liability, of (i) PAI as a general partner of
Acceptance Partnership and (ii) the Borrower and PAI consisting of obligations to make
capital contributions, in an amount not to exceed the sum of (A) the existing obligations
set forth on Schedule 8.2(d) plus (B) an additional $30,000,000 incurred during the
term of this Credit Agreement; and

     (e) other Guaranty Obligations of the Credit Parties in an aggregate amount not to
exceed $15,000,000.

     8.3 Liens.

     No Credit Party will, nor will it permit its Subsidiaries to, contract, create, incur, assume
or permit to exist any Lien with respect to any of its property or assets of any kind (whether real
or personal, tangible or intangible), whether now owned or after acquired, other than Permitted
Liens.

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     8.4 Nature of Business.

     No Credit Party will, nor will it permit its Subsidiaries to, alter the character of its
business from that conducted as of the Closing Date or engage in any business other than the
business conducted as of the Closing Date and activities which are substantially similar or related
thereto.

     8.5 Consolidation and Merger.

     No Credit Party will, nor will it permit any Subsidiary to, enter into any transaction of
merger or consolidation or liquidate, wind up or dissolve itself, or suffer any such liquidation,
wind-up or dissolution; provided that a Credit Party or a Subsidiary of a Credit Party may
merge or consolidate with or into another Person if the following conditions are satisfied:

     (a) the Administrative Agent is given prior written notice of such action;

     (b) if the merger or consolidation involves a Credit Party, the surviving entity of
such merger or consolidation shall either (i) be such Credit Party or (ii) be a Subsidiary
of the Borrower and expressly assumes in writing all of the obligations of such Credit Party
under the Credit Documents; provided that if the transaction is between the Borrower
and another Person, the Borrower must be the surviving entity;

     (c) the Credit Parties execute and deliver such documents, instruments and certificates
as the Administrative Agent may request;

     (d) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing; and

     (e) the Borrower delivers to the Administrative Agent an officer’s certificate stating
that such consolidation or merger, and any written agreement entered into in connection
therewith, comply with this Section 8.5.

     8.6 Sale or Lease of Assets.

     No Credit Party will, nor will it permit its Subsidiaries to, convey, sell, lease, transfer or
otherwise voluntarily dispose of, in one transaction or a series of transactions, all or any part
of its business or assets whether now owned or hereafter acquired, including, without limitation,
inventory, receivables, equipment, real property interests (whether owned or leasehold) and
securities, other than a sale, lease, transfer or other disposal (a) by a Credit Party of any or
all of its assets to another Credit Party; (b) of inventory in the ordinary course of business; (c)
of obsolete, slow-moving, idle or worn-out assets no longer used or useful in the business of such
Credit Party or the trade-in of equipment for equipment in better condition or of better quality;
(d) which constitutes a Permitted Investment in the ordinary course of business; (e) by PAI of its
partnership interest in Acceptance Partnership if required by Section 3.4 of the Acceptance
Partnership Agreement

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(without regard to any amendment of such section); (f) of accounts receivable
pursuant to the financing contracts set forth on Schedule 8.6 or any replacement
arrangement with the same economic effect; and (g) of assets of the Credit Parties and their
Subsidiaries after the Closing Date, in addition to those permitted above in this Section 8.6;
provided that (i) the transfer is for fair market value, (ii) no Default or Event of Default exists
either prior to or after giving effect thereto and (iii) after giving effect thereto, the aggregate
amount of all such transfers during the term of this Credit Agreement, calculated on a net book
value basis, does not exceed ten percent (10%) of Total Assets, as determined on the last day of
the most recently ended fiscal year of the Borrower.

     8.7 Sale Leasebacks.

     No Credit Party will, nor will it permit its Subsidiaries to, directly or indirectly become or
remain liable as lessee or as guarantor or other surety with respect to any lease of any property
(whether real or personal or mixed), whether now owned or hereafter acquired, (a) which such Credit
Party or its Subsidiary has sold or transferred or is to sell or transfer to any other Person other
than a Credit Party or (b) which such Credit Party or its Subsidiary intends to use for
substantially the same purpose as any other property which has been sold or is to be sold or
transferred by such Credit Party to any Person in connection with such lease, other than such
transactions permitted by the Required Lenders.

     8.8 Investments.

     No Credit Party will, nor will it permit its Subsidiaries to, make or permit to exist any
Investments except for Permitted Investments.

     8.9 Foreign Subsidiaries.

     No Credit Party will, nor will it permit its Subsidiaries to, permit the aggregate amount of
assets owned by the Foreign Subsidiaries, at any one time, to constitute more than twenty percent
(20%) of Total Assets.

     8.10 Transactions with Affiliates.

     No Credit Party will, nor will it permit its Subsidiaries to, enter into any transaction or
series of transactions, whether or not in the ordinary course of business, with any officer,
director, shareholder, Subsidiary or Affiliate other than the normal compensation, indemnification
and reimbursement of expenses of officers, employees and directors and transactions on terms and
conditions substantially as favorable as would be obtainable in a comparable arm’s-length
transaction with a Person other than an officer, director, shareholder, Subsidiary or Affiliate.

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     8.11 Fiscal Year; Accounting; Organizational Documents.

     No Credit Party will, nor will it permit its Subsidiaries to, (a) change its fiscal year, (b)
change its accounting procedures, except as a result of changes in GAAP and in accordance with
Section 1.3 or (c) in any manner that would reasonably be likely to adversely affect the rights of
the Lenders, change its organizational or governing documents.

     8.12 No Limitations.

     No Credit Party will, nor will it permit its Subsidiaries to, directly or indirectly, create
or otherwise cause, incur, assume, suffer or permit to exist or become effective any consensual
encumbrance or restriction of any kind on the ability of any such Person to (a) pay dividends or
make any other distribution on any of such Person’s Capital Stock, (b) pay any Indebtedness owed to
any other Credit Party, (c) make loans or advances to any other Credit Party or (d) transfer any of
its property to any other Credit Party, except for encumbrances or restrictions existing under or
by reason of (i) customary non-assignment provisions in any lease governing a leasehold interest
and (ii) this Credit Agreement and the other Credit Documents.

     8.13 No Other Negative Pledges.

     No Credit Party will, nor will it permit its Subsidiaries to, enter into, assume or become
subject to any agreement prohibiting or otherwise restricting the creation or assumption of any
Lien upon its properties or assets, whether now owned or hereafter acquired, or requiring the grant
of any security for such obligation if security is given for some other obligation except as set
forth in the Credit Documents.

     8.14 PAI Assets.

     No Credit Party will, nor will it permit any Subsidiary to, allow PAI to own any assets other
than equity interests in Acceptance Partnership and dividends or other distributions derived
therefrom; provided that PAI shall transfer any such dividends or distributions to Polaris
Industries Inc. or the Borrower within 15 Business Days of receipt.

     8.15 Restricted Payments.

     If at the end of any fiscal quarter the Leverage Ratio is greater than 2.25 to 1.0, then no
Credit Party will, nor will it permit any Subsidiary to, make Restricted Payments in excess of $100
million, in the aggregate, during the next four fiscal quarter period.

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SECTION 9

EVENTS OF DEFAULT

     9.1 Events of Default.

     An Event of Default shall exist upon the occurrence, and during the continuation, of any of
the following specified events (each an “Event of Default”):

     (a) Payment. Any Credit Party shall default in the payment (i) when due of any
principal of any of the Loans or any reimbursement obligation arising from drawings under
Letters of Credit or (ii) within three Business Days of when due of any interest on the
Loans or any fees or other amounts owing hereunder, under any of the other Credit Documents
or in connection herewith.

     (b) Representations. Any representation, warranty or statement made or deemed
to be made by any Credit Party herein, in any of the other Credit Documents, or in any
statement or certificate delivered or required to be delivered pursuant hereto or thereto
shall prove untrue in any material respect on the date as of which it was made or deemed to
have been made.

     (c) Covenants. Any Credit Party shall:

     (i) default in the due performance or observance of any term, covenant or
agreement contained in Sections 7.2, 7.3, 7.5, 7.10, 7.11 or 7.12 or Section 8
inclusive;

     (ii) default in the due performance or observance by it of any term, covenant
or agreement contained in Section 7.1 and such default shall continue unremedied for
a period of five Business Days; or

     (iii) default in the due performance or observance by it of any term, covenant
or agreement (other than those referred to in subsections (a), (b) or (c)(i) or (ii)
of this Section 9.1) contained in this Credit Agreement and such default shall
continue unremedied for a period of at least 30 days after the earlier of the
President, Chief Executive Officer, Chief Financial Officer or Treasurer of the
Borrower becoming aware of such default or notice thereof given by the
Administrative Agent.

     (d) Other Credit Documents. (i) Any Credit Party shall default in the due
performance or observance of any term, covenant or agreement in any of the other Credit
Documents and such default shall continue unremedied for a period of at least 30 days after
the earlier of an officer of a Credit Party becoming aware of such default or notice thereof
given by the Administrative Agent, (ii) any Credit Document shall fail to be in full force
and effect or any Credit Party shall so assert or (iii) any Credit Document shall fail to
give the

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Administrative Agent and/or the Lenders the liens, rights, powers and privileges
purported to be created by such Credit Document.

     (e) Guaranties. The Guaranty given by the Credit Parties hereunder or by any
Additional Credit Party or any provision thereof shall cease to be in full force and effect,
or any Guarantor or any Person acting by or on behalf of such Guarantor shall deny or
disaffirm such Guarantor’s obligations under such guaranty or such Guarantor shall default
in the due payment or performance of such Guaranty.

     (f) Bankruptcy, etc. The occurrence of any of the following with respect to a
Credit Party or any of its Subsidiaries (i) a court or governmental agency having
jurisdiction in the premises shall enter a decree or order for relief in respect of a Credit
Party or any of its Subsidiaries in an involuntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or appoint a receiver,
liquidator, assignee, custodian, trustee, sequestrator, administrator or
similar official of a Credit Party or any of its Subsidiaries or for any substantial part of
its property or ordering the winding up or liquidation of, or an administrator in respect
of, its affairs; or (ii) an involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect is commenced against a Credit Party or any of
its Subsidiaries and such petition remains unstayed and in effect for a period of 60
consecutive days; or (iii) a Credit Party or any of its Subsidiaries shall commence a
voluntary case under any applicable bankruptcy, insolvency or other similar law now or
hereafter in effect, or consent to the entry of an order for relief in an involuntary case
under any such law, or consent to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator, administrator or similar official of
such Person or any substantial part of its property or make any general assignment for the
benefit of creditors; or (iv) a Credit Party or any of its Subsidiaries shall fail
generally, or shall admit in writing its inability, to pay its debts as they become due or
any action shall be taken by such Person in furtherance of any of the aforesaid purposes.

     (g) Defaults under Other Agreements.

     (i) A Credit Party or any of its Subsidiaries shall default in the due
performance or observance (beyond any applicable grace period with respect thereto)
of any material obligation or condition of any contract or lease to which it is a
party, including, but not limited to, any Hedging Agreement; or

     (ii) With respect to any Indebtedness in excess of $10,000,000 (other than
Indebtedness outstanding under this Credit Agreement) of a Credit Party or any of
its Subsidiaries (A) such Person shall (x) default in any payment (beyond the
applicable grace period with respect thereto, if any) with respect to any such
Indebtedness, or (y) default (after giving effect to any applicable grace period) in
the observance or performance relating to such Indebtedness or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other event

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or condition shall occur or condition exist, the effect of which default or other
event or condition is to cause, or permit, the holder or holders of such
Indebtedness (or trustee or agent on behalf of such holders, if any) to require
(determined without regard to whether any notice or lapse of time is required) any
such Indebtedness to become due prior to its stated maturity; or (B) any such
Indebtedness shall be declared due and payable, or required to be prepaid other than
by a regularly scheduled required prepayment prior to the stated maturity thereof;
or (C) any such Indebtedness shall mature and remain unpaid.

     (h) Judgments. One or more judgments, orders, or decrees shall be entered
against any one or more of the Credit Parties and their Subsidiaries involving a liability
of $10,000,000 or more, in the aggregate, (to the extent not paid or covered by insurance
provided by a carrier who has acknowledged coverage) and such judgments, orders or decrees
(i) are the subject of any enforcement proceeding commenced by any creditor or (ii) shall
continue unsatisfied, undischarged and unstayed for a period ending on the first to occur of
(A) the last day on which such judgment, order or decree becomes final and unappealable or
(B) 60 days.

     (i) ERISA. The occurrence of any of the following events or conditions: (i)
any “accumulated funding deficiency,” as such term is defined in Section 302 of ERISA and
Section 412 of the Code, whether or not waived, shall exist with respect to any Plan, or any
Lien shall arise on the assets of a Credit Party, any Subsidiary of a Credit Party or any
ERISA Affiliate in favor of the PBGC or a Plan; (ii) an ERISA Event shall occur with respect
to a Single Employer Plan, which is, in the reasonable opinion of the Administrative Agent,
likely to result in the termination of such Plan for purposes of Title IV of ERISA; (iii) an
ERISA Event shall occur with respect to a Multiemployer Plan or Multiple Employer Plan,
which is, in the reasonable opinion of the Administrative Agent, likely to result in (A) the
termination of such Plan for purposes of Title IV of ERISA, or (B) a Credit Party, any
Subsidiary of a Credit Party or any ERISA Affiliate incurring any liability in connection
with a
withdrawal from, reorganization of (within the meaning of Section 4241 of ERISA), or
insolvency (within the meaning of Section 4245 of ERISA) of such Plan; (iv) any prohibited
transaction (within the meaning of Section 406 of ERISA or Section 4975 of the Code) or
breach of fiduciary responsibility shall occur which may subject a Credit Party, any
Subsidiary of a Credit Party or any ERISA Affiliate to any liability under Sections 406,
409, 502(i), or 502(l) of ERISA or Section 4975 of the Code, or under any agreement or other
instrument pursuant to which a Credit Party, any Subsidiary of a Credit Party or any ERISA
Affiliate has agreed or is required to indemnify any Person against any such liability; or
(v) a Credit Party, any Subsidiary of a Credit Party or any ERISA Affiliate fails to pay
when due, after the expiration of any applicable grace period, any installment payment with
respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan
in an aggregate amount in excess of $500,000.

     (j) Ownership. There shall occur a Change of Control.

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     (k) Condemnation. All or substantially all of the property of a Credit Party
or any of its Subsidiaries shall become subject to a condemnation, taking or other
appropriation action by any Governmental Authority.

     9.2 Acceleration; Remedies.

     Upon the occurrence and during the continuation of an Event of Default, the Administrative
Agent may or shall, upon the request and direction of the Required Lenders, take the following
actions without prejudice to the rights of the Administrative Agent or any Lender to enforce its
claims against the Credit Parties, except as otherwise specifically provided for herein:

     (a) Termination of Commitments. Declare the Commitments terminated whereupon
the Commitments shall be immediately terminated.

     (b) Acceleration of Loans. Declare the unpaid principal of and any accrued
interest in respect of all Loans, any reimbursement obligations arising from drawings under
Letters of Credit and any and all other Indebtedness or obligations of any and every kind
owing by a Credit Party to any of the Lenders under the Credit Documents to be due whereupon
the same shall be immediately due and payable without presentment, demand, protest or other
notice of any kind, all of which are hereby waived by the Credit Parties.

     (c) Cash Collateral. Direct the Borrower to Cash Collateralize (and the
Borrower agrees that upon receipt of such notice, or upon the occurrence of an Event of
Default under Section 9.1(f), it will immediately Cash Collateralize) all then outstanding
Letters of Credit in an amount equal to the maximum aggregate amount which may be drawn
under all Letters of Credits then outstanding. The Borrower will grant to the Administrative
Agent, for the benefit of the Issuing Lender and the Lenders, a security interest in all
such cash, deposit accounts and all balances therein and all proceeds of the foregoing. The
cash collateral shall be maintained in blocked, non-interest bearing deposit accounts at
Bank of America as additional security for the LOC Obligations.

     (d) Enforcement of Rights. Enforce any and all rights and interests created
and existing under the Credit Documents, including, without limitation, all rights and
remedies against a Guarantor and all rights of set-off.

Notwithstanding the foregoing, if an Event of Default specified in Section 9.1(f) shall occur, then
the Commitments shall automatically terminate and all Loans, all reimbursement obligations under
Letters of Credit, all accrued interest in respect thereof, all accrued and unpaid fees and other
indebtedness or obligations owing to the Lenders hereunder shall immediately become due and payable
without the giving of any notice or other action by the Administrative Agent or the Lenders, which
notice or other action is expressly waived by the Credit Parties.

Notwithstanding the fact that enforcement powers reside primarily with the Administrative Agent,
each Lender has, to the extent permitted by law, a separate right of payment and shall be
considered

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 a separate “creditor” holding a separate “claim” within the meaning of Section 101(5) of
the Bankruptcy Code or any other insolvency statute.

     9.3 Allocation of Payments After Event of Default.

     Notwithstanding any other provisions of this Credit Agreement, after the occurrence and during
the continuation of an Event of Default and the exercise of remedies by the Administrative Agent or
the Lenders pursuant to Section 9.2 (or after the Commitments shall automatically terminate and the
Loans (with accrued interest thereon) and all other amounts under the Credit Documents shall
automatically become due and payable in accordance with the terms of such Section), all amounts
collected or received by the Administrative Agent or any Lender on account of amounts outstanding
under any of the Credit Documents shall be paid over or delivered as follows:

     FIRST, to the payment of all reasonable out-of-pocket costs and expenses (including
without limitation reasonable Attorney Costs) of the Administrative Agent, the Issuing
Lender or any of the Lenders in connection with enforcing the rights of the Lenders under
the Credit Documents, pro rata as set forth below;

     SECOND, to payment of any fees owed to the Administrative Agent, the Issuing Lender or
any Lender, pro rata as set forth below;

     THIRD, to the payment of all accrued interest payable to the Lenders hereunder, pro
rata as set forth below;

     FOURTH, to the payment of the outstanding principal amount of the Loans and
unreimbursed drawings under Letters of Credit, and to the payment or to Cash Collateralize
the outstanding LOC Obligations, pro rata as set forth below;

     FIFTH, to all other obligations which shall have become due and payable under the
Credit Documents and not repaid pursuant to clauses “FIRST” through “FOURTH” above;

     SIXTH, to any principal amounts outstanding under Hedging Agreements between a Credit
Party and a Lender or Affiliate of a Lender, pro rata as set forth below; and

     SEVENTH, to the payment of the surplus, if any, to whoever may be lawfully entitled to
receive such surplus.

In carrying out the foregoing, (a) amounts received shall be applied in the numerical order
provided until exhausted prior to application to the next succeeding category; (b) each of the
Lenders shall receive an amount equal to its pro rata share (based on the proportion that the then
outstanding Loans, and LOC Obligations held by such Lender bears to the aggregate then outstanding
Loans and LOC Obligations, or, in the case of clause “SIXTH” above, the proportion of then
outstanding obligations under Hedging Agreements) of amounts available to be applied; and (c) to
the extent that any amounts available for distribution pursuant to clause “FOURTH” above are
attributable to the

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 issued but undrawn amount of outstanding Letters of Credit, such amounts shall
be held by the Administrative Agent in a cash collateral account and applied (i) first, to
reimburse the Issuing Lender from time to time for any drawings under such Letters of Credit and
(ii) then, following the expiration of all Letters of Credit, to all other obligations of the types
described in clauses “FOURTH”, “FIFTH” and “SIXTH” above in the manner provided in this Section
9.3.

SECTION 10

AGENCY PROVISIONS

     10.1 Appointment.

     (a) Each Lender hereby irrevocably appoints, designates and authorizes the
Administrative Agent to take such action on its behalf under the provisions of this Credit
Agreement and each other Credit Document and to exercise such powers and perform such duties
as are expressly delegated to it by the terms of this Credit Agreement or any other Credit
Document, together with such powers as are reasonably incidental thereto. Notwithstanding
any provision to the contrary contained elsewhere herein or in any other Credit Document,
the Administrative Agent shall not have any duties or responsibilities, except those
expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary or trustee relationship with any Lender or participant, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this
Credit Agreement or any other Credit Document or otherwise exist against the Administrative
Agent. Without limiting the generality of the foregoing sentence, the use of the term
“agent” herein and in the other Credit Documents with reference to the Administrative Agent
is not intended to connote any fiduciary or other implied (or express) obligations arising
under agency doctrine of any applicable law. Instead, such term is used merely as a matter
of market custom, and is intended to create or reflect only an administrative relationship
between independent contracting parties.

     (b) The Issuing Lender shall act on behalf of the Revolving Lenders with respect to any
Letters of Credit issued by it and the documents associated therewith until such time (and
except for so long) as the Administrative Agent may agree at the request of the Required
Lenders to act for the Issuing Lender with respect thereto; provided,
however, that the Issuing Lender shall have all of the benefits and immunities (i)
provided to the Administrative Agent in this Section 10 with respect to any acts taken by or
omissions of the Issuing Lender in connection with Letters of Credit issued by it or
proposed to be issued by it and the application and agreements for letters of credit
pertaining to the Letters of Credit as fully as if the term “Administrative Agent” as used
in this Section 10 included the Issuing Lender with respect to such acts or omissions, and
(ii) as additionally provided herein with respect to the Issuing Lender.

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     (c) None of the Lenders identified on the facing page or signature pages of this Credit
Agreement as a “syndication agent”, “documentation agent”, “book manager” or other title
shall have any right, power, obligation, liability, responsibility or duty under this Credit
Agreement or the other Credit Documents other than those applicable to all Lenders as such.
Without limiting the foregoing, none of the Lenders so identified shall have or be deemed to
have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders so identified in deciding to enter into
this Credit Agreement or the other Credit Documents or in taking or not taking action
hereunder.

     10.2 Delegation of Duties.

     The Administrative Agent may execute any of its duties under this Credit Agreement or any
other Credit Document by or through agents, employees or attorneys-in-fact and shall be entitled to
advice of counsel and other consultants or experts concerning all matters pertaining to such
duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any
agent or attorney-in-fact that it selects with reasonable care.

     10.3 Exculpatory Provisions.

     No Agent-Related Person shall (a) be liable for any action taken or omitted to be taken by any
of them under or in connection with this Credit Agreement or any other Credit Document or the
transactions contemplated hereby (except for its own gross negligence or willful misconduct in
connection with its duties expressly set forth herein), or (b) be responsible in any manner to any
Lender or participant for any recital, statement, representation or warranty made by any Credit
Party or any officer thereof, contained herein or in any other Credit Document, or in any
certificate, report, statement or other document referred to or provided for in, or received by the
Administrative Agent under or in connection with, this Credit Agreement or any other Credit
Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Credit
Agreement or any other Credit Document, or for any failure of any Credit Party or any other party
to any Credit Document to perform its obligations hereunder or thereunder. No Agent-Related Person
shall be under any obligation to any Lender or participant to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Credit
Agreement or any other Credit Document, or to inspect the properties, books or records of any
Credit Party or any Affiliate thereof.

     10.4 Reliance on Communications.

     (a) The Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any writing, communication, signature, resolution, representation, notice,
consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
electronic mail message, statement or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person or Persons,
and upon advice and statements of legal counsel

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(including counsel to any Credit Party),
independent accountants and other experts selected by the Administrative Agent. The
Administrative Agent may deem and treat each Lender as the owner of the interests hereunder
for all purposes unless a written notice of assignment, negotiation or transfer thereof
shall have been delivered to the Administrative Agent in accordance with Section 11.3(b).
The Administrative Agent shall be fully justified in failing or refusing to take any action
under any Credit Document unless it shall first receive such advice or concurrence of the
Required Lenders as it deems appropriate and, if it so requests, it shall first be
indemnified to its satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in refraining from
acting, under this Credit Agreement or any other Credit Document in accordance with a
request or consent of the Required Lenders or all the Lenders, if required hereunder, and
such request and any action taken or failure to act pursuant thereto shall be binding upon
all the Lenders and participants, and their respective successors and assigns. Where this
Credit Agreement expressly permits or prohibits an action unless the Required Lenders
otherwise determine, the Administrative Agent shall, and in all other instances, the
Administrative Agent may, but shall not be required to, initiate any solicitation for the
consent or a vote of the Lenders.

     (b) For purposes of determining compliance with the conditions specified in Section
5.1, each Lender that has signed this Credit Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter either sent by
the Administrative Agent to such Lender for consent, approval, acceptance or satisfaction,
or required thereunder to be consented to or approved by or acceptable or satisfactory to a
Lender.

     10.5 Notice of Default.

     The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default, except with respect to defaults in the payment of principal,
interest and fees required to be paid to the Administrative Agent for the account of the Lenders,
unless the Administrative Agent shall have received written notice from a Lender or the Borrower
referring to this
Credit Agreement, describing such Default or Event of Default and stating that such notice is
a “notice of default.” The Administrative Agent will notify the Lenders of its receipt of any such
notice. The Administrative Agent shall take such action with respect to such Default or Event of
Default as may be reasonably directed by the Required Lenders in accordance with Section 9.2;
provided, however, that unless and until the Administrative Agent has received any
such direction, the Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Default or Event of Default as it shall deem
advisable or in the best interest of the Lenders.

     10.6 Non-Reliance on Administrative Agent and Other Lenders.

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     Each Lender acknowledges that no Agent-Related Person has made any representation or warranty
to it, and that no act by the Administrative Agent hereinafter taken, including any consent to and
acceptance of any assignment or review of the affairs of any Credit Party or any Affiliate thereof,
shall be deemed to constitute any representation or warranty by any Agent-Related Person to any
Lender as to any matter, including whether Agent-Related Persons have disclosed material
information in their possession. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon any Agent-Related Person or any other Lender and based on
such documents and information as it has deemed appropriate, made its own appraisal of and
investigation into the business, prospects, operations, property, financial and other condition and
creditworthiness of the Credit Parties and their respective Affiliates, and all applicable bank or
other regulatory laws relating to the transactions contemplated hereby, and made its own decision
to enter into this Credit Agreement and to extend credit to the Borrower hereunder. Each Lender
also represents that it will, independently and without reliance upon any Agent-Related Person 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 analysis, appraisals and decisions in taking or not taking
action under this Credit Agreement and the other Credit Documents, and to make such investigations
as it deems necessary to inform itself as to the business, prospects, operations, property,
financial and other condition and creditworthiness of the Borrower. Except for notices, reports
and other documents expressly required to be furnished to the Lenders by the Administrative Agent
herein, the Administrative Agent shall not have any duty or responsibility to provide any Lender
with any credit or other information concerning the business, prospects, operations, property,
financial and other condition or creditworthiness of any of the Credit Parties or any of their
respective Affiliates which may come into the possession of any Agent-Related Person, it being
understood that the Administrative Agent shall forward to the Lenders information it receives
pursuant to Section 7.1.

     10.7 Indemnification.

     Whether or not the transactions contemplated hereby are consummated, the Lenders shall
indemnify upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of
any Credit Party and without limiting the obligation of any Credit Party to do so), pro rata, and
hold harmless each Agent-Related Person from and against any and all Indemnified Liabilities
incurred by it; provided, however, that no Lender shall be liable for the payment
to any Agent-Related Person of any portion of such Indemnified Liabilities resulting from such
Agent-Related Person’s gross negligence or willful misconduct; it being understood that no action
taken in accordance with the directions of the Required Lenders (or all Lenders, if applicable)
shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section
10.7. Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent
upon demand for its ratable share of any costs or out-of-pocket expenses (including Attorney Costs)
incurred by the Administrative Agent in connection with the preparation, execution, delivery,
administration, modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Credit Agreement, any other Credit Document, or any

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document contemplated by or referred to herein,
to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of
the Credit Parties. The undertaking in this Section 10.7 shall survive termination of the
Commitments, the payment of all Obligations hereunder and the resignation or replacement of the
Administrative Agent.

     10.8 Administrative Agent in Its Individual Capacity.

     Bank of America and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire equity interests in and generally engage in any kind of banking,
trust, financial advisory, underwriting or other business with each of the Credit Parties and their
respective Affiliates as though Bank of America were not the Administrative Agent or the Issuing
Lender hereunder and without notice to or consent of the Lenders. The Lenders acknowledge that,
pursuant to such activities, Bank of America or its Affiliates may receive information regarding
any Credit Party or its Affiliates (including information that may be subject to confidentiality
obligations in favor of such Credit Party or such Affiliate) and that the Administrative Agent
shall be under no obligation to provide such information to them. With respect to its Loans, Bank
of America shall have the same rights and powers under this Credit Agreement as any other Lender
and may exercise such rights and powers as though it were not the Administrative Agent or the
Issuing Lender, and the terms “Lender” and “Lenders” include Bank of America in its individual
capacity.

     10.9 Successor Agent.

     The Administrative Agent may resign as Administrative Agent upon 30 days’ notice to the
Lenders; provided that any such resignation by Bank of America shall also constitute its
resignation as Issuing Lender (other than with respect to Letters of Credit outstanding at such
time until such Letters of Credit expire or are substituted as set forth below). If the
Administrative Agent resigns under this Credit Agreement, the Required Lenders shall appoint from
among the Lenders a successor administrative agent for the Lenders which successor administrative
agent (such appointment, absent the existence of an Event of Default, to be subject to the consent
of the Borrower, which consent of the Borrower shall not be unreasonably withheld or delayed). If
no successor administrative agent is appointed prior to the effective date of the resignation of
the Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders
and the Borrower, a successor administrative agent from among the Lenders. Upon the acceptance of
its appointment as successor administrative agent hereunder, the Person acting as such successor
administrative agent shall succeed to all the rights, powers and duties of the retiring
Administrative Agent, Issuing Lender and the respective terms “Administrative Agent,” and “Issuing
Lender” shall mean such successor administrative agent, Letter of Credit issuer, and the retiring
Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated
and the retiring Issuing Lender’s rights, powers and duties as such shall be terminated (other than
as set forth above), without any other or further act or deed on the part of such retiring Issuing
Lender or any other Lender, other than the obligation of the successor Issuing Lender to issue
letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of
such succession or to make other arrangements satisfactory to

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the retiring Issuing Lender to
effectively assume the obligations of the retiring Issuing Lender with respect to such Letters of
Credit. After any retiring Administrative Agent’s resignation hereunder as Administrative Agent,
the provisions of this Section 10 and Sections 11.5 and 11.10 shall continue to inure to its
benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent
under this Credit Agreement. If no successor administrative agent has accepted appointment as
Administrative Agent by the date which is 30 days following a retiring Administrative Agent’s
notice of resignation, the retiring Administrative Agent’s resignation shall nevertheless thereupon
become effective and the Lenders shall perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided
for above.

     10.10 Administrative Agent May File Proof of Claims.

     In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any
Credit Party, the Administrative Agent (irrespective of whether the principal of any Loan or LOC
Obligation shall then be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the
Administrative Agent shall have made any demand on any Credit Party) shall be entitled and
empowered, by intervention in such proceeding or otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, LOC Obligations and all other Credit Party Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable
in order to have the claims of the Lenders and the Administrative Agent (including any claim
for the reasonable compensation, expenses, disbursements and advances of the Lenders and the
Administrative Agent and their respective agents and counsel and all other amounts due the
Lenders and the Administrative Agent under Sections 3.4 and 11.5) allowed in such judicial
proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent or the Issuing Lender, as applicable, and, in the event that the
Administrative Agent or Issuing Lender shall consent to the making of such payments directly to the
Lenders, to pay to the Administrative Agent or Issuing Lender any amount due for the reasonable
compensation, expenses, disbursements and advances of the Administrative Agent or Issuing Lender
and its respective agents and counsel, and any other amounts due the Administrative Agent or
Issuing Lender under Sections 3.4 and 11.5.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Credit Party Obligations or the rights of

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any Lender or to authorize the Administrative Agent to vote in respect of the claim of any
Lender in any such proceeding.

SECTION 11

MISCELLANEOUS

     11.1 Notices Effectiveness; Electronic Communications.

     (a) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in subsection (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 telecopier as
follows, and all notices and other communications expressly permitted hereunder to be given by
telephone shall be made to the applicable telephone number, as follows:

     (i) if to the Borrower or any other Credit Party, the Administrative Agent or the
Issuing Lender, to the address, telecopier number, electronic mail address or telephone
number specified for such Person on Schedule 11.1; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

     Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier shall be deemed to
have been given when sent (except 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). Notices delivered through electronic communications to the extent provided in
subsection (b) below, shall be effective as provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to the Lenders and
the Issuing Lender hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or the Issuing
Lender pursuant to Section 2 if such Lender or the Issuing Lender, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such Section by electronic
communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

     Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of

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an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications 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) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE AGENT
PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR
THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH THE
BORROWER MATERIALS OR THE PLATFORM. In no event shall the Administrative Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability to the Borrower, any
Lender, the Issuing Lender or any other Person for losses, claims, damages, liabilities or expenses
of any kind (whether in tort, contract or otherwise) arising out of the Borrower’s or the
Administrative Agent’s transmission of Borrower Materials through the Internet, except to the
extent that such losses, claims, damages, liabilities or expenses are determined by a court of
competent jurisdiction by a final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Agent Party; provided, however, that in no
event shall any Agent Party have any liability to the Borrower, any Lender, the Issuing Lender or
any other Person for indirect, special, incidental, consequential or punitive damages (as opposed
to direct or actual damages).

     (d) Change of Address, Etc. Each of the Borrower, the Administrative Agent and the
Issuing Lender may change its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto. Each other Lender may change its
address, telecopier or telephone number for notices and other communications hereunder by notice to
the Borrower, the Administrative Agent and the Issuing Lender. In addition, each Lender agrees to
notify the Administrative Agent from time to time to ensure that the Administrative Agent has on
record (i) an effective address, contact name, telephone number, telecopier number and electronic
mail address to which notices and other communications may be sent and (ii) accurate wire
instructions for such Lender.

     (e) Reliance by Administrative Agent, Issuing Lender and Lenders. The Administrative
Agent, the Issuing Lender and the Lenders shall be entitled to rely and act upon any notices
(including telephonic Notices of Borrowing) purportedly given by or on behalf of any Credit Party
even if (i) such notices were not made in a manner specified herein, were

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incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof. The Credit Parties shall
indemnify the Administrative Agent, the Issuing Lender, each Lender and the Related Parties of each
of them from all losses, costs, expenses and liabilities resulting from the reliance by such Person
on each notice purportedly given by or on behalf of a Credit Party. All telephonic notices to and
other telephonic communications with the Administrative Agent may be recorded by the Administrative
Agent, and each of the parties hereto hereby consents to such recording.

     11.2 Right of Set-Off, Automatic Debits.

     (a) In addition to any rights now or hereafter granted under applicable law or
otherwise, and not by way of limitation of any such rights, upon the occurrence of an Event
of Default and the commencement of remedies described in Section 9.2, each Lender is
authorized at any time and from time to time, without presentment, demand, protest or other
notice of any kind (all of which rights being hereby expressly waived), to set-off and to
appropriate and apply any and all deposits (general or special) and any other indebtedness
at any time held or owing by such Lender (including, without limitation, branches, agencies
or Affiliates of such Lender wherever located) to or for the credit or the account of any
Credit Party against obligations and liabilities of such Credit Party to the Lenders
hereunder, under the Credit Documents or otherwise, irrespective of whether the
Administrative Agent or the Lenders shall have made any demand hereunder and although such
obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any
such set-off shall be deemed to have been made immediately upon the occurrence of an Event
of Default even though such charge is made or entered on the books of such Lender subsequent
thereto. The Credit Parties hereby agree that any Participant may exercise all rights of
set-off with respect to its participation interest as fully as if such Person were a Lender
hereunder.

     (b) In addition to clause (a) above, with respect to any principal or interest payment,
fee, or any other cost or expense (including Attorney Costs), due and payable to the
Administrative Agent, the Issuing Lender or the Lenders under the Credit Documents, the
Credit Parties hereby irrevocably authorize and direct the Administrative Agent to debit any
deposit account of the Credit Parties with the Administrative Agent (as one of the Lenders)
in an amount such that the aggregate amount debited from all such deposit accounts does not
exceed such payment, fee, or other cost or expense. If there are insufficient funds in such
deposit accounts to cover the amount of the payment, fee, other cost or expense then due,
such debits will be reversed (in whole or in part, in the Administrative Agent’s sole
discretion) and such amount not debited shall be deemed to be unpaid. No such debit under
this Section 11.2(b) shall be deemed a set-off.

     11.3 Benefit of Agreement.

     (a) Successors and Assigns Generally. The provisions of this Credit Agreement and the
other Credit Documents shall be binding upon and inure to the benefit of the parties hereto

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and thereto and their respective successors and assigns permitted hereby, except that the Borrower may
not assign or otherwise transfer any of its rights or obligations hereunder or thereunder without
the prior written consent of the Administrative Agent and each Lender and no Lender may assign or
otherwise transfer any of its rights or obligations hereunder except (i) to an assignee in
accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section or (iii) by way of pledge or
assignment of a security interest subject to the restrictions of subsection (f) of this Section
(and any other attempted assignment or transfer by any party hereto shall be null and void).
Nothing in this Credit Agreement, expressed or implied, shall be construed to confer upon any
Person (other than the parties hereto, their respective successors and assigns permitted hereby,
Participants to the extent provided in subsection (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of the
Administrative Agent, the Issuing Lender and the Lenders) any legal or equitable right, remedy or claim under or by reason of
this Credit Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Credit Agreement and the other
Credit Documents (including all or a portion of its Commitment and the Loans (including for
purposes of this subsection (b), participations in LOC Obligations) at the time owing to it);
provided that any such assignment shall be subject to the following conditions:

     (i) Minimum Amounts.

     (A) in the case of an assignment of the entire remaining amount of the assigning
Lender’s Commitment and the related Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no minimum amount need
be assigned; and

     (B) in any case not described in subsection (b)(i)(A) of this Section, the aggregate
amount of the Commitment (which for this purpose includes Loans outstanding thereunder) or,
if the Commitment is not then in effect, the principal outstanding balance of the 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 or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall not be less than $5,000,000 in the case of an assignment of a Revolving
Commitment (and the related Revolving Loans thereunder) and $1,000,000 in the case of an
assignment of Term Loans unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each such consent
not to be unreasonably withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent assignments from
members of an Assignee Group to a single assignee (or to an assignee and members of its
Assignee Group) will be treated as a single assignment for purposes of determining whether
such minimum amount has been met.

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     (ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s Loans and Commitments, and
rights and obligations with respect thereto, assigned, except that this clause (ii) shall
not prohibit any Lender from assigning all or a portion of its rights and obligations in
respect of its Revolving Commitment (and the related Revolving Loans thereunder) and its
outstanding Term Loans on a non-pro rata basis;

     (iii) Required Consents. No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section, in addition:

     (A) the consent of the Borrower (such consent not to be unreasonably withheld
or delayed) shall be required unless (1) an Event of Default has occurred and
is continuing at the time of such assignment or (2) such assignment is to a Lender,
an Affiliate of a Lender or an Approved Fund;

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments in respect of
(i) any Term Loan Commitment or Revolving Commitment if such assignment is to a
Person that is not a Lender with a Commitment in respect of the Commitment subject
to such assignment, an Affiliate of such Lender or an Approved Fund with respect to
such Lender or (ii) any Term Loan to a Person that is not a Lender, an Affiliate of
a Lender or an Approved Fund; and

     (C) the consent of the Issuing Lender (such consent not to be unreasonably
withheld or delayed) shall be required for any assignment that increases the
obligation of the assignee to participate in exposure under one or more Letters of
Credit (whether or not then outstanding).

     Notwithstanding the foregoing, so long as no Event of Default has occurred and is
continuing no assignment (including those covered by subsection (b)(i)(A)) shall be made
without the Borrower’s consent (x) if an assignment to such Person would result in any
increased cost to the Borrower under Section 3.9, Section 3.12 or Section 3.13 on the date
of such assignment (provided that approval by the Borrower shall be deemed given if
no objection is received by the assigning Lender and the Administrative Agent from the
Borrower within five Business Days after notice of such proposed assignment has been
delivered to the Borrower) and (y) to a Person which, through its Lending Offices, is not
capable of lending the applicable Alternative Currencies to the Borrower without the
imposition of any additional Indemnified Taxes.

     (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee in the amount $3,500; provided, however, that
the Administrative Agent may, in its sole discretion, elect to waive such processing

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and recordation fee in the case of any assignment. The assignee, if it shall not be a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire.

     (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

     (vi) No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

     Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection
(c) of this Section, from and after the effective date specified in each Assignment and Assumption,
the assignee thereunder shall be a party to this Credit Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and obligations of a Lender
under this Credit 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
Credit Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Credit Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 3.9, 3.13, 3.14 and 11.5 with respect
to facts and circumstances occurring prior to the effective date of such assignment). Upon
request, the Borrower (at its expense) shall execute and deliver a promissory note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this Credit
Agreement that does not comply with this subsection shall be treated for purposes of this Credit
Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with subsection (d) of this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s Office 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 the Commitments of, and principal amounts of the Loans and LOC Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, and the Borrower, the Administrative Agent 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 Credit Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender at any reasonable time
and from time to time upon reasonable prior notice.

     (d) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Credit Agreement (including all or a portion of its Commitment and/or the Loans (including such
Lender’s participations in LOC Obligations) owing to it); provided that (i) such Lender’s
obligations under this Credit Agreement shall remain unchanged, (ii) such Lender shall remain
solely responsible to the other parties hereto for the performance of such obligations and (iii)
the

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Borrower, the Administrative Agent, the other Lenders and the Issuing Lender shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Credit 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 Credit
Agreement and to approve any amendment, modification or waiver of any provision of this Credit
Agreement; provided that such agreement or instrument may provide that such Lender will
not, without the consent of the Participant, agree to any amendment, waiver or other modification
described in clauses (i) through (vii) of the Section 11.6(a) that affects such Participant.
Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.9, 3.13 and 3.14 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to subsection (b) of this Section. To the
extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.2 as
though it were a Lender, provided such Participant agrees to be subject to Section 3.8 as
though it were a Lender.

     (e) Limitation on Participant Rights. A Participant shall not be entitled to receive
any greater payment under Section 3.9 or 3.13 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 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 3.13 unless the
Borrower is notified of the participation sold to such Participant and such Participant agrees, for
the benefit of the Borrower, to comply with Section 3.13 as though it were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security interest
in all or any portion of its rights under this Credit Agreement (including under its promissory
note, if any) to secure obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided that no such pledge or assignment shall
release such Lender from any of its obligations hereunder or substitute any such pledgee or
assignee for such Lender as a party hereto.

     (g) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act

     (h) Resignation as Issuing Lender after Assignment. Notwithstanding anything to the
contrary contained herein, if at any time Bank of America assigns all of its Commitment and Loans
pursuant to subsection (b) above, Bank of America may, upon thirty days’ notice to the Borrower and
the Lenders, resign as Issuing Lender. In the event of any such resignation as

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Issuing Lender, the
Borrower shall be entitled to appoint from among the Lenders a successor Issuing Lender hereunder;
provided, however, that no failure by the Borrower to appoint any such successor
shall affect the resignation of Bank of America as Issuing Lender. If Bank of America resigns as
Issuing Lender, it shall retain all the rights, powers, privileges and duties of the Issuing Lender
hereunder with respect to all Letters of Credit outstanding as of the effective date of its
resignation as Issuing Lender and all LOC Obligations with respect thereto (including the right to
require the Lenders to make Base Rate Loans or fund risk participations in unreimbursed amounts
pursuant to Section 2.3(d)). Upon the appointment of a successor Issuing Lender, (1) such
successor shall succeed to and become vested with all of the rights, powers, privileges and duties
of the retiring Issuing Lender, as the case may be, and (2) the successor Issuing Lender shall
issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time
of such succession or make other arrangements satisfactory to Bank of America to effectively assume
the obligations of Bank of America with respect to such Letters of Credit.

     11.4 No Waiver; Remedies Cumulative.

     No failure or delay on the part of the Administrative Agent or any Lender in exercising any
right, power or privilege hereunder or under any other Credit Document and no course of dealing
between the Borrower or any Credit Party and the Administrative Agent or any Lender shall operate
as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege
hereunder or under any other Credit Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege
hereunder or thereunder. The rights and remedies provided herein are cumulative and not exclusive
of any rights or remedies which the Administrative Agent or any Lender would otherwise have. No
notice to or demand on any Credit Party in any case shall entitle any Credit Party to any other or
further notice or demand in similar or other circumstances or constitute a waiver of the rights of
the Administrative Agent or the Lenders to any other or further action in any circumstances without
notice or demand.

     11.5 Payment of Expenses; Indemnification.

     (a) Costs and Expenses. The Credit Parties shall pay (i) all reasonable out-of-pocket
expenses incurred by any Agent Related Person (including the reasonable fees, charges and
disbursements of counsel for the Administrative Agent), in connection with the syndication of the
credit facilities provided for herein, the preparation, negotiation, execution, delivery and
administration of this Credit Agreement and the other Credit Documents or any amendments,
modifications or waivers of the provisions hereof or thereof (whether or not the transactions
contemplated hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses
incurred by the Issuing Lender in connection with the issuance, amendment, renewal or extension of
any Letter of Credit or any demand for payment thereunder and (iii) all out-of-pocket expenses
incurred by the Administrative Agent, any Lender or the Issuing Lender (including the fees, charges
and disbursements of any counsel for the Administrative Agent, any Lender or the Issuing Lender),
and shall pay all fees and time charges for attorneys who may be employees of the Administrative
Agent, any Lender or the Issuing Lender, in connection with

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the enforcement or protection of its
rights (A) in connection with this Credit Agreement and the other Credit Documents, including its
rights under this Section, or (B) in connection with the Loans made or Letters of Credit issued
hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Loans or Letters of Credit.

     (b) Indemnification by the Credit Parties. The Credit Parties shall indemnify the
Administrative Agent (and any sub-agent thereof), each Lender and the Issuing Lender, and each
Related Party of any of the foregoing Persons (each such Person being called an
“Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the fees, charges and disbursements of any
counsel for any Indemnitee) incurred by any Indemnitee or asserted against any Indemnitee by any
third party or by the Borrower or any other Credit Party arising out of, in connection with, or as
a result of (i) the execution or delivery of this Credit Agreement, any other Credit Document or
any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto
of their respective obligations hereunder or thereunder or the consummation of the transactions
contemplated hereby or thereby, or, in the case of the Administrative Agent (and any sub-agent
thereof) and its Related Parties only, the administration of this Credit Agreement and the other
Credit Documents, (ii) any Loan or Letter of Credit or the use or proposed use of the proceeds
therefrom (including any refusal by the Issuing Lender to honor a demand for payment under a Letter
of Credit if the documents presented in connection with such demand do not strictly comply with the
terms of such Letter of Credit), (iii) any actual or alleged presence or release of Hazardous
Materials on or from any property owned or operated by a Credit Party or any of its Subsidiaries,
or any Environmental Claim related in any way to a Credit Party or any of its Subsidiaries, or (iv)
any actual or prospective claim, litigation, investigation or proceeding relating to any of the
foregoing, whether based on contract, tort or any other theory, whether brought by a third party or
by the Borrower or any other Credit Party, and regardless of whether any Indemnitee is
a party thereto; provided that such indemnity shall not, as to any Indemnitee, be
available to the extent that such losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable judgment to have
resulted from the gross negligence or willful misconduct of such Indemnitee, (y) result from a
claim brought by the Borrower or any other Credit Party against an Indemnitee for breach in bad
faith of such Indemnitee’s obligations hereunder or under any other Credit Document, if the
Borrower or such Credit Party has obtained a final and nonappealable judgment in its favor on such
claim as determined by a court of competent jurisdiction or (z) are to reimburse an Indemnitee for
any claims, damages, actual losses, liabilities or expenses related to an investigation, litigation
or proceeding solely between or among Indemnitees.

     (c) Reimbursement by Lenders. To the extent that the Credit Parties for any reason
fail to indefeasibly pay any amount required under subsection (a) or (b) of this Section to be paid
by them to the Administrative Agent (or any sub-agent thereof), the Issuing Lender or any Related
Party of any of the foregoing, each Lender severally agrees to pay to the Administrative Agent (or
any such sub-agent), the Issuing Lender or such Related Party, as the case may be, such Lender’s
pro rata portion (determined as of the time that the applicable unreimbursed

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expense or indemnity
payment is sought) of such unpaid amount, provided that the unreimbursed expense or
indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by
or asserted against the Administrative Agent (or any such sub-agent) or the Issuing Lender in its
capacity as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or Issuing Lender in connection with such capacity.
The obligations of the Lenders under this subsection (c) are subject to the provisions of Section
3.2.

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, no Credit Party shall assert, and each Credit Party hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Credit Agreement, any other Credit Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of Credit
or the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above shall be
liable for any damages arising from the use by unintended recipients of any information or other
materials distributed to such unintended recipients by such Indemnitee through telecommunications,
electronic or other information transmission systems in connection with this Credit Agreement or
the other Credit Documents or the transactions contemplated hereby or thereby other than for direct
or actual damages resulting from the gross negligence, bad faith or willful misconduct of such
Indemnitee as determined by a final and nonappealable judgment of a court of competent
jurisdiction.

     (e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

     (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent, the Issuing Lender, the replacement of any Lender, the termination of the
Commitments and the repayment, satisfaction or discharge of all the other Credit Party Obligations.

     11.6 Amendments, Waivers and Consents.

     Neither this Credit Agreement nor any other Credit Document nor any of the terms hereof or
thereof may be amended, changed, waived, discharged or terminated unless such amendment, change,
waiver, discharge or termination is in writing and signed by the Required Lenders and the then
Credit Parties; provided that

     (a) no such amendment, change, waiver, discharge or termination shall without the consent of
all the Lenders:

     (i) extend the Maturity Date, or postpone or extend the time for any payment or
prepayment of principal;

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     (ii) (A) reduce the rate of interest or the amount of fees or (B) extend the time of
payment of interest (other than as a result of waiving the applicability of any post-default
increase in interest rates) thereon or fees hereunder;

     (iii) reduce or waive the principal amount of any Loan;

     (iv) increase or extend the Commitment of a Lender (it being understood and agreed that
a waiver of any Default or Event of Default or a waiver of any mandatory reduction in the
Commitments shall not constitute a change in the terms of any Commitment of any Lender);

     (v) release the Borrower from its obligations or consent to the assignment or transfer
by the Borrower of any of its rights and obligations under (or in respect of) the Credit
Documents or release all or substantially all of the Guarantors from their respective
obligations under the Credit Documents;

     (vi) amend, modify or waive any provision of this Section 11.6 or Section 3.4(a),
3.4(b)(i), 3.7, 3.8, 9.1(a), 9.3, 11.2, 11.3 or 11.5; and

     (vii) reduce any percentage specified in, or otherwise modify, the definition of
Required Lenders.

     (b) unless also signed by Revolving Lenders (other than Defaulting Lenders) holding in the
aggregate at least a majority of the Revolving Commitments (or if the Revolving Commitments have
been terminated, the outstanding Revolving Loans (and participations in any LOC Obligations)), no
such amendment, waiver or consent shall:

     (i) waive any Default or Event of Default for purposes of Section 5.2,

     (ii) amend or waive any mandatory prepayment on the Revolving Obligations under Section
3.3(b) or the manner of application thereof;

     (iii) amend or waive the provisions of Section 5.2, Section 9 or this Section 11.6(b);

Notwithstanding the above, (i) no provisions of Section 10 may be amended or modified without the
consent of the Administrative Agent and (ii) no provisions of Section 2.3 may be amended or
modified without the consent of the Issuing Lender.

Notwithstanding the fact that the consent of all the Lenders is required in certain circumstances
as set forth above, (x) each Lender is entitled to vote as such Lender sees fit on any
reorganization plan that affects the Loans or the Letters of Credit, and each Lender acknowledges
that the provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent
provisions set forth

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herein and (y) the Required Lenders may consent to allow a Credit Party to use
cash collateral in the context of a bankruptcy or insolvency proceeding.

     11.7 Counterparts.

     This Credit Agreement may be executed in any number of counterparts, each of which where so
executed and delivered shall be an original, but all of which shall constitute one and the same
instrument.

     11.8 Headings.

     The headings of the sections and subsections hereof are provided for convenience only and
shall not in any way affect the meaning or construction of any provision of this Credit Agreement.

     11.9 Defaulting Lender.

     Each Lender understands and agrees that if such Lender is a Defaulting Lender then
notwithstanding the provisions of Section 11.6 it shall not be entitled to vote on any matter
requiring the consent of the Required Lenders or to object to any matter requiring the consent of
all the Lenders; provided, however, that all other benefits and obligations under
the Credit Documents shall apply to such Defaulting Lender.

     11.10 Survival of Indemnification and Representations and Warranties.

     All indemnities set forth herein and all representations and warranties made hereunder and in
any other Credit Document or other document delivered pursuant hereto or thereto or in connection
herewith or therewith shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the Administrative Agent, the
Issuing Lender and each Lender, regardless of any investigation made by the Administrative Agent,
the Issuing Lender or any Lender or on their behalf and notwithstanding that the Administrative
Agent, the Issuing Lender or any Lender may have had notice or knowledge of any Default or Event of
Default at the time of any Extension of Credit, and shall continue in full force and effect as long
as any Loan or any other Credit Party Obligation hereunder shall remain unpaid or unsatisfied or
any Letter of Credit shall remain outstanding.

     11.11 Governing Law; Jurisdiction.

     THIS CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK, INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAWS BUT OTHERWISE WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES. Each Credit Party
irrevocably consents to the service of process in any action or proceeding with respect to this
Credit Agreement or any other Credit

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Document by the mailing of copies thereof by registered or
certified mail, postage prepaid, to it at the address for notices pursuant to Section 11.1, such
service to become effective 10 days after such mailing. Nothing herein shall affect the right of a
Lender to serve process in any other manner permitted by law.

     11.12 Waiver of Jury Trial.

     EACH PARTY TO THIS CREDIT AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY CREDIT DOCUMENT OR IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
ANY CREDIT DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY
AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY
COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS CREDIT AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     11.13 Severability.

     If any provision of any of the Credit Documents is determined to be illegal, invalid or
unenforceable, such provision shall be fully severable and the remaining provisions shall remain in
full force and effect and shall be construed without giving effect to the illegal, invalid or
unenforceable provisions.

     11.14 Further Assurances.

     The Credit Parties agree, upon the request of the Administrative Agent, to promptly take such
actions, as reasonably requested, as is necessary to carry out the intent of this Credit Agreement
and the other Credit Documents.

     11.15 Confidentiality.

     Each Lender agrees that it will use its reasonable best efforts to keep confidential and to
cause any representative designated under Section 7.11 to keep confidential any Information (as
defined below) from
time to time supplied to it under any Credit Document; provided, however, that
nothing herein shall prevent the disclosure of any such Information to (a) the extent a Lender in
good faith believes such disclosure is required by Requirement of Law or by any subpoena or similar
legal process, (b) the extent requested by any regulatory authority purporting to have jurisdiction
over it (including any self-regulatory authority, such as the National Association of Insurance
Commissioners), (c) counsel for a Lender or to its accountants, (d) bank examiners or auditors or

107

 

comparable Persons, (e) any Affiliate of a Lender and its respective partners, directors, officers,
employees, agents, advisors and representatives (it being understood that such Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (f) any other Lender, or any assignee, transferee or
Participant Purchaser, or any potential assignee, transferee or Participant Purchaser, of all or
any portion of any Lender’s rights under this Credit Agreement who is notified of the confidential
nature of the information, (g) to any Person with the consent of the Borrower, (h) any Person in
connection with the exercise of any remedies hereunder or under any other Credit Document or any
action or proceeding relating to this Credit Agreement or any other Credit Document or the
enforcement of rights hereunder or thereunder or (i) any other Person in connection with any
litigation to which any one or more of the Lenders is a party. No Lender shall have any obligation
under this Section11.15 to the extent any such information becomes available on a non-confidential
basis from a source other than a Credit Party or that any information becomes publicly available
other than by a breach of this Section 11.15 by any Lender or representative thereof.

For purposes of this Section, “Information” means all information received from any Credit
Party relating to any Credit Party or any of their respective businesses, other than any such
information that is available to the Administrative Agent, any Lender or the Issuing Lender on a
non-confidential basis prior to disclosure by such Credit Party, provided that, in the case
of information received from any Credit Party after the date hereof, such information is clearly
identified at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section 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.

     11.16 Entirety.

     This Credit Agreement together with the other Credit Documents and the Fee Letter represent
the entire agreement of the parties hereto and thereto, and supersede all prior agreements and
understandings, oral or written, if any, including any commitment letters or correspondence
relating to the Credit Documents or the transactions contemplated herein and therein.

     11.17 Binding Effect; Continuing Agreement.

     (a) This Credit Agreement shall become effective at such time when all of the
conditions set forth in Section 5.1 have been satisfied or waived by the Lenders and it
shall have been executed by the Borrower, the Guarantors and the Administrative Agent, and
the Administrative Agent shall have received copies hereof (telefaxed or otherwise) which,
when taken together, bear the signatures of each Lender, and thereafter this Credit
Agreement shall be binding upon and inure to the benefit of the Borrower, the Guarantors,
the Administrative Agent and each Lender and their respective successors and assigns. Upon
this Credit Agreement becoming effective, the Existing Credit Agreements shall be deemed terminated and
the Credit Parties and the lenders party to the Existing

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     Credit Agreements shall no longer
have any obligations thereunder (other than those obligations in the Existing Credit
Agreements that expressly survive the termination of the Existing Credit Agreements).

     (b) This Credit Agreement shall be a continuing agreement and shall remain in full
force and effect until all Loans, LOC Obligations, interest, fees and other Credit Party
Obligations have been paid in full and all Commitments and Letters of Credit have been
terminated. Upon termination, the Credit Parties shall have no further obligations (other
than the indemnification provisions that survive) under the Credit Documents;
provided that should any payment, in whole or in part, of the Credit Party
Obligations be rescinded or otherwise required to be restored or returned by the
Administrative Agent or any Lender, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, then the Credit Documents shall automatically be reinstated and
all amounts required to be restored or returned and all costs and expenses incurred by the
Administrative Agent or any Lender in connection therewith shall be deemed included as part
of the Credit Party Obligations.

     11.18 USA PATRIOT Act Notice.

     Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies each Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub.
L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies such Borrower, which information includes the name and address
of such Borrower and other information that will allow such Lender or the Administrative Agent, as
applicable, to identify such Borrower in accordance with the Act.

     11.19 Judgment Currency.

     If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due
hereunder or any other Credit Document in one currency into another currency, the rate of exchange
used shall be that at which in accordance with normal banking procedures the Administrative Agent
could purchase the first currency with such other currency on the Business Day preceding that on
which final judgment is given. The obligation of each Borrower in respect of any such sum due from
it to the Administrative Agent or the Lenders hereunder or under the other Credit Documents shall,
notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in
which such sum is denominated in accordance with the applicable provisions of this Credit Agreement
(the “Agreement Currency”), be discharged only to the extent that on the Business Day
following receipt by the Administrative Agent of any sum adjudged to be so due in the Judgment
Currency, the Administrative Agent may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so
purchased is less than the sum originally due to the Administrative Agent from any Borrower in the
Agreement Currency, such Borrower agrees, as a separate obligation and notwithstanding any such
judgment, to indemnify the Administrative Agent or the Person to whom such obligation was owing
against such loss. If the amount of the Agreement Currency so purchased is greater than the sum
originally due to the Administrative

109

 

Agent in such currency, the Administrative Agent agrees to return the
amount of any excess to such Borrower (or to any other Person who may be entitled thereto under
applicable law).

     11.20 No Advisory or Fiduciary Responsibility.

     In connection with all aspects of each transaction contemplated hereby, the Borrower
acknowledges and agrees, and acknowledge their Affiliates’ understanding, that: (i) the credit
facilities provided for hereunder and any related arranging or other services in connection
therewith (including in connection with any amendment, waiver or other modification hereof or of
any other Credit Document) are an arm’s-length commercial transaction between the Borrower and
their respective Affiliates, on the one hand, and the Administrative Agent, BAS and the Lenders, on
the other hand, and the Borrower is capable of evaluating and understanding and understand and
accept the terms, risks and conditions of the transactions contemplated hereby and by the other
Credit Documents (including any amendment, waiver or other modification hereof or thereof); (ii) in
connection with the process leading to such transaction, the Administrative Agent, BAS and each
Lender, each is and has been acting solely as a principal and is not the financial advisor, agent
or fiduciary, for the Borrower or any of their respective Affiliates, stockholders, creditors or
employees or any other Person; (iii) neither the Administrative Agent, BAS nor any Lender has
assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower
with respect to any of the transactions contemplated hereby or the process leading thereto,
including with respect to any amendment, waiver or other modification hereof or of any other Credit
Document (irrespective of whether the Administrative Agent, BAS or any Lender has advised or is
currently advising the Borrower or any of their respective Affiliates on other matters) and neither
the Administrative Agent, BAS or any Lender has any obligation to the Borrower or any of their
respective Affiliates with respect to the transactions contemplated hereby except those obligations
expressly set forth herein and in the other Credit Documents; (iv) the Administrative Agent, BAS
and the Lenders and their respective Affiliates may be engaged in a broad range of transactions
that involve interests that differ from those of the Borrower and its Affiliates, and neither the
Administrative Agent, BAS nor any Lender has any obligation to disclose any of such interests by
virtue of any advisory, agency or fiduciary relationship; and (v) the Administrative Agent, BAS and
the Lenders have not provided and will not provide any legal, accounting, regulatory or tax advice
with respect to any of the transactions contemplated hereby (including any amendment, waiver or
other modification hereof or of any other Credit Document) and the Borrower has consulted its own
legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. The
Borrower hereby waives and releases, to the fullest extent permitted by law, any claims that it may
have against the Administrative Agent, BAS and the Lenders with respect to any breach or alleged
breach of agency or fiduciary duty arising out of the transactions contemplated hereby.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     Each of the parties hereto has caused a counterpart of this Credit Agreement to be duly
executed and delivered as of the date first above written.

BORROWER:

	 	 	 	 	 	 	 
	 	 	POLARIS INDUSTRIES INC.,

a Minnesota corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Michael W. Malone	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Michael W. Malone	 	 
	 

	 	Title:
	 	Vice President—Finance, Chief Financial Officer	 	 
	 

	 	 	 	and Secretary	 	 

111

 

	 	 	 
	GUARANTORS:

	 	POLARIS ACCEPTANCE INC., a Minnesota corporation
	 
	 	 
	 

	 	POLARIS SALES INC., a Minnesota corporation
	 
	 	 
	 

	 	POLARIS DIRECT INC., a Minnesota corporation
	 
	 	 
	 

	 	POLARIS INDUSTRIES INC., a Delaware corporation
	 
	 	 
	 

	 	POLARIS INDUSTRIES MANUFACTURING LLC,

a Minnesota limited liability company
	 
	 	 
	 

	 	POLARIS INSURANCE SERVICES LLC,

a Minnesota limited liability company

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/Michael W. Malone
	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Michael W. Malone	 	 
	 

	 	Title:
	 	Vice President—Finance, Chief Financial Officer	 	 
	 

	 	 	 	and Secretary	 	 

112

 

	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:	 	BANK OF AMERICA, N.A.,	 	 
	 	 	as Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Charlene Wright—Jones	 	 
	 

	 	 	 	 	 	 
	 	 	Name: 	 	Charlene Wright—Jones	 
	 	 	Title:	 	Assistant Vice President	 

113

 

	 	 	 	 	 	 	 
	LENDERS:	 	BANK OF AMERICA, N.A.,	 	 
	 	 	as a Lender and Issuing Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Charles R. Dickerson	 	 
	 

	 	 	 	 
	 	 
	 	 	Name:	 	Charles R. Dickerson	 
	 	 	Title:	 	Managing Director	 

114

 

	 	 	 	 	 	 	 
	 	 	BOA LENDING LLP,

by Bank of America, N.A., it Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Charles R. Dickerson	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Charles R. Dickerson

Title: Managing Director	 	 

115

 

	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Karen Weathers	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Karen Weathers

Title: Vice President	 	 

116

 

	 	 	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

CHICAGO BRANCH	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Matthew A. Ross	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Matthew A. Ross

Title: Vice President & Manager	 	 

117

 

	 	 	 	 	 	 	 
	 	 	ROYAL BANK OF CANADA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Ken F. Klassen	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Ken F. Klassen

Title: Authorized Signatory	 	 

118

 

	 	 	 	 	 	 	 
	 	 	COMERICA BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Mark J. Leveille	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Mark. J. Leveille

Title: Assistant Vice President	 	 

119

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Jennifer D. Barrett	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Jennifer D. Barrett

Title: Vice President and Loan Team Manager	 	 

120

 

	 	 	 	 	 	 	 
	 	 	FIFTH THIRD BANK, an Ohio banking corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Christopher D. Jones	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Christopher D. Jones

Title: Vice President	 	 

121

 

	 	 	 	 	 	 	 
	 	 	NATIONAL CITY BANK	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/Michael Leong	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Michael Leong

Title: Vice President	 	 

122

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