Document:

EX-10.2

INDEMNIFICATION AGREEMENT

FOR INTERIM EXECUTIVE

THIS INDEMNIFICATION AGREEMENT FOR INTERIM EXECUTIVE (the “Agreement”) is made and
entered into as of June      , 2007 between CSK Auto Corporation, a Delaware corporation, CSK Auto,
Inc., an Arizona corporation, and CSK Auto.com, Inc., a Delaware corporation (individually and
collectively herein, the “Company”), and Steven L. Korby (“Indemnitee”). CSK Auto
Corporation and CSK Auto.com, Inc. are referred to herein from time to time as the “Delaware
Corporations” and CSK Auto, Inc. is referred to herein from time to time as the “Arizona
Corporation”.

WITNESSETH THAT:

WHEREAS, James B. Riley has resigned as Chief Financial Officer of the Company; and

WHEREAS, Indemnitee has been serving as a consultant to the Company in connection with various
matters relating to accounting and finance since July 2006; and

WHEREAS, the Company wishes to retain Indemnitee as Interim Chief Financial Officer during the
period in which it engages in a search for a permanent Chief Financial Officer; and

WHEREAS, the Company and the Indemnitee recognize the risk of litigation and other claims
being asserted against the Indemnitee in connection with such interim service; and

WHEREAS, in recognition of the Indemnitee’s need for substantial protection against liability
and in order to induce the Indemnitee to accept the position of Interim Chief Financial Officer
(and recognizing the Indemnitee’s unwillingness to accept the position of Interim Chief Financial
Officer without the indemnifications and agreements provided herein), the Company desires to
provide for the indemnification of, and the advancing of expenses to, the Indemnitee to the fullest
extent permitted by law and as set forth in this Agreement; and

WHEREAS, the parties hereto recognize the uncertainties relating to directors and officers
insurance; and

WHEREAS, the Board of Directors has determined that it would be difficult to attract an
Interim Chief Financial Officer without providing indemnities substantially similar hereto and that
therefore, it is in the best interests of the Company’s stockholders to enter into this Agreement;
and

WHEREAS, this Agreement is a supplement to and in furtherance of the charter and by-laws and
any resolutions adopted pursuant thereto, and shall not be deemed to be a substitute therefore, nor
to diminish or abrogate the rights of Indemnitee thereunder; and

WHEREAS, Indemnitee does not regard the protection available under the charter and by-laws and
existing directors and officers insurance to be adequate in the present circumstances, and is not
willing to serve as Interim Financial Officer without adequate protection, and the Company desires
Indemnitee to serve in such capacity.

NOW, THEREFORE, in consideration of Indemnitee’s service heretofore and as Interim Chief
Financial Officer after the date hereof, the parties hereto agree as follows:

1. Indemnity of Indemnitee. The Company hereby agrees to hold harmless and indemnify
Indemnitee to the fullest extent authorized or permitted by the provisions of the General
Corporation Law of the State of Delaware, with respect to the Delaware corporations, and the
Arizona Business Corporation Act, with respect to the Arizona corporation, and applicable common
law, as such may be amended or revised from time to time (herein, the “Law”). In addition
to, but not in limitation of, the prior sentence, the Company also agrees to hold harmless and
indemnify Indemnitee to the fullest extent authorized or permitted by the provisions of Article
Eighth of the Company’s Restated Certificate of Incorporation, as amended to the date hereof, and
Article V of the Company’s Amended and Restated By-laws, as amended to the date hereof. In
furtherance of the foregoing indemnification, and without limiting the generality thereof:

(a) Proceedings Other than Proceedings by or in the Right of the Company. Indemnitee
shall be entitled to the rights of indemnification provided in this Section l(a) if, by reason of
his Corporate Status (as hereinafter defined), he is, or is threatened to be made, a party to or
participant in any Proceeding (as hereinafter defined). Pursuant to this Section 1(a), Indemnitee
shall be indemnified against all Expenses (as hereinafter defined), judgments, penalties, fines and
amounts paid in settlement actually and reasonably incurred by him, or on his behalf, in connection
with such Proceeding or any claim, issue or matter therein, if he acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best interests of the Company, and
with respect to any criminal Proceeding, had no reasonable cause to believe his conduct was
unlawful.

(b) Proceedings by or in the Right of the Company. Indemnitee shall be entitled to
the rights of indemnification provided in this Section 1(b) if, by reason of his Corporate Status,
he is, or is threatened to be made, a party to or participant in any Proceeding brought by or in
the right of the Company. Pursuant to this Section 1(b), Indemnitee shall be indemnified against
all Expenses actually and reasonably incurred by him, or on his behalf, in connection with such
Proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed
to the best interests of the Company; provided, however, if applicable law so
provides, no indemnification against such Expenses shall be made in respect of any claim, issue or
matter in such Proceeding as to which Indemnitee shall have been finally adjudged by a court in a
non-appealable decision to be liable to the Company, unless the Court of Chancery of the State of
Delaware shall determine that, despite the adjudication of liability but in view of all the
circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

(c) Indemnification for Expenses of a Party Who is Wholly or Partly Successful.
Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason
of his Corporate Status, a party to and is successful, on the merits or otherwise, in any
Proceeding, he shall be indemnified to the maximum extent permitted by Law against all Expenses
actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is
not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one
or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify
Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in
connection with each successfully resolved claim, issue or matter. For purposes of this Section
and without limitation, the termination of any claim, issue or matter in such a Proceeding by
dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim,
issue or matter.

2. Additional Indemnity. In addition to, and without regard to any limitations on,
the indemnification provided for in Section 1 of this Agreement, the Company shall and hereby does
indemnify and hold harmless Indemnitee to the fullest extent permitted by law against all Expenses,
judgments, penalties, fines and amounts paid in settlement actually and reasonably incurred by him
or on his behalf if, by reason of his Corporate Status, he is, or is threatened to be made, a party
to or participant in any Proceeding (including a Proceeding by or in the right of the Company),
including, without limitation, all liability arising out of the negligence or active or passive
wrongdoing of Indemnitee. The only limitation that shall exist upon the Company’s obligations
pursuant to this Agreement shall be that the Company shall not be obligated to make any payment to
Indemnitee that is finally determined by Independent Counsel (as hereinafter defined) (under the
procedures, and subject to the presumptions, set forth in Sections 6 and 7 hereof) to be unlawful
under Delaware law. The meaning of the phrase “to the fullest extent permitted by law”
shall include, but not be limited to: (i) to the fullest extent authorized or permitted by the
provisions of the General Corporation Law of the State of Delaware (the “DGCL”), with respect to
the Delaware corporations, or the Arizona Business Corporation Act, with respect to the Arizona
corporation, as in effect as of the date of this Agreement, that authorize or contemplate
indemnification by contract; and (ii) to the fullest extent authorized or permitted by any
amendments to or replacement of the DGCL, with respect to the Delaware corporations, or the Arizona
Business Corporation Act, with respect to the Arizona corporation, adopted after the date of this
Agreement that increase the extent to which a corporation may indemnify its officers and directors.

3. Contribution in the Event of Joint Liability.

(a) Whether or not the indemnification provided in Sections 1 and 2 hereof is available, in
respect of any threatened, pending or completed action, suit or Proceeding in which the Company is
jointly liable with Indemnitee (or would be if joined in such action, suit or proceeding), the
Company shall pay, in the first instance, the entire amount of any judgment or settlement of such
action, suit or proceeding without requiring Indemnitee to contribute to such payment and the
Company hereby waives, fully, completely and without reservation, and relinquishes any right of
contribution it may have against Indemnitee. The Company shall not enter into any settlement of
any action, suit or Proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such action, suit or Proceeding) unless such settlement provides for a full, final
and unqualified release of all claims asserted against Indemnitee.

(b) Without diminishing or impairing the obligations of the Company set forth in the preceding
subparagraph, if, for any reason, Indemnitee shall elect or be required to pay all or any portion
of any judgment or settlement in any threatened, pending or completed action, suit or Proceeding in
which the Company is jointly liable with Indemnitee (or would be if joined in such action, suit or
Proceeding), or if for any reason whatsoever the indemnification provided in this Agreement is
unavailable to Indemnitee in whole or in part, the Company shall contribute to the amount of
Expenses, judgments, fines and amounts otherwise paid, actually and reasonably incurred and paid or
payable by Indemnitee, in proportion to the relative benefits received by the Company and all
present, future and former officers, directors or employees of the Company, other than Indemnitee,
who are jointly liable with Indemnitee (or would be if joined in such action, suit or Proceeding),
on the one hand, and Indemnitee, on the other hand, from the transaction or events from which such
action, suit or proceeding arose; provided, however, that the proportion determined
on the basis of relative benefit may, to the extent necessary to conform to law, be further
adjusted by reference to the relative fault and knowledge of the Company and all present, future
and former officers, directors or employees of the Company other than Indemnitee who are jointly
liable with Indemnitee (or would be if joined in such action, suit or Proceeding), on the one hand,
and Indemnitee, on the other hand, in connection with the events that resulted in such Expenses,
judgments, fines or settlement amounts, as well as any other equitable considerations which the Law
may require to be considered, including, without limitation, the fact that Indemnitee was serving
the Company on a limited and interim basis. The relative fault and knowledge of the Company and
all present, future and former officers, directors or employees of the Company, other than
Indemnitee, who are jointly liable with Indemnitee (or would be if joined in such action, suit or
proceeding), on the one hand, and Indemnitee, on the other hand, shall be determined by reference
to, among other things, the degree to which their actions were motivated by intent to gain personal
profit or advantage, the degree to which their liability is primary or secondary, the degree to
which their conduct is active or passive, and the limited and interim nature of Indemnitee’s
service with the Company.

(c) The Company hereby agrees to fully indemnify and hold Indemnitee harmless from any claims
of contribution which may be brought by present, future and former officers, directors or employees
of the Company, other than Indemnitee, who may be jointly liable with Indemnitee.

4. Indemnification for Expenses of a Witness. Notwithstanding any other provision of
this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in
any Proceeding to which Indemnitee is not a party, he shall be fully indemnified against all
Expenses actually and reasonably incurred by him or on his behalf in connection therewith.

5. Advancement of Expenses. Notwithstanding any other provision of this Agreement,
the Company shall advance all Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding by reason of Indemnitee’s Corporate Status within ten (10) days after the receipt by
the Company of a statement or statements from Indemnitee requesting such advance or advances from
time to time, whether prior to or after final disposition of such Proceeding. Any advances and
undertakings to repay pursuant to this Section 5 shall be unsecured, interest free and shall be
made without regard to Indemnitee’s ability to repay the Expenses and without regard to
Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.
Advances of Expenses shall include any and all reasonable Expenses incurred pursuing a Proceeding
to enforce this right of advancement, including Expenses incurred preparing and forwarding
statement to the Company to support the advances claimed. The Indemnitee shall qualify for
advances solely upon the execution and delivery to the Company of an unsecured undertaking
providing that Indemnitee undertakes to repay the advance to the extent that it is fully, finally
and ultimately determined that Indemnitee is not entitled to be indemnified by the Company. For
purposes of clarity and not limitation, the parties acknowledge and agree that any Expenses related
to legal proceedings to secure a determination that Indemnitee should be indemnified under
applicable Law shall be “Expenses” as defined herein and shall be fully reimbursable as provided in
this Agreement.

6. Procedures and Presumptions for Determination of Entitlement to Indemnification.
It is the intent of this Agreement to secure for Indemnitee rights of indemnity that are the most
favorable possible, as may be permitted under the Law. Accordingly, the parties agree that the
following procedures and presumptions shall apply in the event of any question as to whether
Indemnitee is entitled to indemnification under this Agreement:

(a) To obtain indemnification (including, but not limited to, the advancement of Expenses and
contribution by the Company) under this Agreement, Indemnitee shall submit to the Board of
Directors of the Company a written request, including therein or therewith such documentation and
information as is reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification. The Secretary of the Company
shall, promptly upon receipt of such a request for indemnification, advise the Board of Directors
in writing that Indemnitee has requested indemnification.

(b) Upon written request by Indemnitee for indemnification pursuant to the first sentence of
Section 6(a) hereof, a determination, if required by applicable Law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case by one of the following two methods, which
shall be at the election of Indemnitee: (1) by a majority vote of the disinterested directors on
the Board of Directors, even though less than a quorum, or (2) by Independent Counsel in a written
opinion.

(c) If Indemnitee requests that the determination of entitlement to indemnification is to be
made by Independent Counsel pursuant to Section 6(b) hereof, the Independent Counsel shall be
selected as provided in this Section 6(c). If Indemnitee requests that the determination be made by
Independent Counsel, such method of determination shall be exclusive and no other method of
determination shall be permitted. The Independent Counsel shall be selected by Indemnitee (unless
Indemnitee requests that such selection be made by the Board of Directors). The Company may,
within ten (10) days after written notice of selection shall have been given, deliver to Indemnitee
a written objection to such selection; provided, however, that such objection may
be asserted only on the ground that the Independent Counsel so selected does not meet the
requirements of “Independent Counsel” as defined in Section 12 of this Agreement, and the objection
shall set forth with particularity the factual basis of such assertion. Absent a proper and timely
objection, the person so selected shall act as Independent Counsel. If a written objection is made
and substantiated, the Independent Counsel selected may not serve as Independent Counsel unless and
until such objection is withdrawn or a court has determined that such objection is without merit.
If, within twenty (20) business days after submission by Indemnitee to the Company of the name of
his chosen Independent Counsel, any objection thereto by the Company shall not have been resolved,
Indemnitee may petition a court of competent jurisdiction for resolution of any objection which
shall have been made by the Company to Indemnitee’s selection of Independent Counsel and/or for the
appointment as Independent Counsel of a person selected by the court, and the person with respect
to whom all objections are so resolved or the person so appointed shall act as Independent Counsel
under Section 6(b) hereof. The Company shall pay any and all reasonable fees and expenses of
Independent Counsel incurred by such Independent Counsel in connection with acting pursuant to
Section 6(b) hereof, and the Company shall pay all reasonable fees and expenses incident to the
procedures of this Section 6(c), regardless of the manner in which such Independent Counsel was
selected or appointed. The Company agrees to fully indemnify the Independent Counsel against any
and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or
its engagement pursuant hereto.

(d) In making a determination with respect to entitlement to indemnification hereunder, the
person or persons or entity making such determination shall presume that Indemnitee is entitled to
indemnification under this Agreement. Anyone seeking to overcome this presumption shall have the
burden of proof and the burden of persuasion by clear and convincing evidence.

(e) Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on
the books and records, including the books of account, of the Company, or on information supplied
to Indemnitee by the officers of the Company in the course of their duties, or on the advice of
legal counsel or on information or records given or reports made to the Company by an independent
certified public accountant or by an appraiser or other expert selected by the Company. In
addition, the actual or imputed knowledge and/or actions, or failure to act, of any present, future
or former director, officer, agent or employee of the Company shall not be imputed to Indemnitee
for purposes of determining the right to indemnification under this Agreement. Whether or not the
foregoing provisions of this Section 6(e) are satisfied, it shall in any event be presumed that
Indemnitee has at all times acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Company. Anyone seeking to overcome this presumption
shall have the burden of proof and the burden of persuasion by clear and convincing evidence.

(f) If the person, persons or entity empowered or selected under Section 6 to determine
whether Indemnitee is entitled to indemnification shall not have made a determination within thirty
(30) days after receipt by the Company of the request therefor, the requisite determination of
entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled
to such indemnification absent (i) a deliberate misstatement by Indemnitee of a material fact, or a
deliberate omission of a material fact necessary to make Indemnitee’s statement not materially
misleading, in connection with the request for indemnification, or (ii) a clear prohibition of such
indemnification under applicable Law; provided, however, that such thirty (30)-day
period may be extended for a reasonable time, not to exceed an additional fifteen (15) days, if the
person, persons or entity making such determination with respect to entitlement to indemnification
in good faith requires such additional time to obtain or evaluate documentation and/or information
relating thereto.

(g) Indemnitee shall cooperate with the person, persons or entity making such determination
with respect to Indemnitee’s entitlement to indemnification, including providing to such person,
persons or entity upon reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee
and reasonably necessary to such determination. Any Independent Counsel, member of the Board of
Directors or stockholder of the Company shall act reasonably and in good faith in making a
determination regarding the Indemnitee’s entitlement to indemnification under this Agreement. Any
costs or expenses (including attorneys’ fees, expenses, out-of-pocket costs and disbursements)
incurred by Indemnitee in so cooperating with the person, persons or entity making such
determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee
harmless therefrom.

(h) The Company acknowledges that a settlement or other disposition short of final judgment
may be successful if it permits a party to avoid expense, delay, distraction, disruption and
uncertainty. In the event that any action, claim or Proceeding to which Indemnitee is a party is
resolved in any manner other than by adverse judgment against Indemnitee (including, without
limitation, settlement of such action, claim or proceeding with or without payment of money or
other consideration) it shall be presumed that Indemnitee has been successful on the merits or
otherwise in such action, suit or Proceeding. Anyone seeking to overcome this presumption shall
have the burden of proof and the burden of persuasion by clear and convincing evidence.

(i) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall
not of itself adversely affect the right of Indemnitee to indemnification or create a presumption
that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or
not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that
Indemnitee had reasonable cause to believe that his conduct was not unlawful.

7. Remedies of Indemnitee.

(a) In the event that (i) a determination is made pursuant to Section 6 of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is
not timely made pursuant to Section 5 of this Agreement, (iii) no determination of entitlement to
indemnification is made pursuant to Section 6(b) of this Agreement within forty-five (45) days
after receipt by the Company of the request for indemnification, (iv) payment of indemnification is
not made pursuant to this Agreement within ten (10) days after receipt by the Company of a written
request therefor or (v) payment of indemnification is not made within ten (10) days after a
determination has been made that Indemnitee is entitled to indemnification or such determination is
deemed to have been made pursuant to Section 6 of this Agreement, Indemnitee shall be entitled to
an adjudication in an appropriate court in Dallas County, Texas, of his entitlement to such
indemnification. The Company shall not oppose Indemnitee’s right to seek any such adjudication.
Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted in
Dallas, Texas by a single arbitrator pursuant to the Commercial Arbitration Rules of the American
Arbitration Association. Except as set forth herein, the provisions of Delaware law (without
regard to its conflict of laws rules) shall apply to any such arbitration. The Company shall not
oppose Indemnitee’s right to seek any such adjudication or award in arbitration.

(b) In the event that a determination shall have been made pursuant to Section 6(b) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 7 shall be conducted in all respects as a de novo
trial or arbitration on the merits, and Indemnitee shall not be prejudiced by reason of the adverse
determination under Section 6(b). In any judicial proceeding or arbitration commenced pursuant to
this Section 7, Indemnitee shall be presumed to be entitled to indemnification under this Agreement
and the Company shall have the burden of proving Indemnitee is not entitled to indemnification or
advancement of Expenses, as the case may be, and the Company shall not refer to or introduce into
evidence any determination adverse to Indemnitee for any purpose. If Indemnitee commences a
judicial proceeding or arbitration pursuant to this Section 7, Indemnitee shall not be required to
reimburse the Company for any advances until a final determination is made with respect to
Indemnitee’s entitlement to indemnification (as to which all rights of appeal have been exhausted
or lapsed).

(c) If a determination shall have been made pursuant to Section 6(b) of this Agreement that
Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any
judicial proceeding commenced pursuant to this Section 7, absent a prohibition of such
indemnification under applicable Law.

(d) In the event that Indemnitee, pursuant to this Section 7, seeks a judicial adjudication of
his rights under, or to recover damages for breach of, this Agreement, or to recover under any
directors’ and officers’ liability insurance policies maintained by the Company, the Company shall
pay on his behalf, in advance, any and all expenses (of the types described in the definition of
Expenses in Section 13 of this Agreement) actually and reasonably incurred by him in such judicial
adjudication, regardless of whether Indemnitee ultimately is determined to be entitled to such
indemnification, advancement of expenses or insurance recovery.

(e) The Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 7 that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such court that the Company is bound by all the
provisions of this Agreement.

(f) The Company shall indemnify and hold harmless Indemnitee to the fullest extent permitted
by law against all Expenses and, if requested by Indemnitee, shall (within ten (10) days after the
Company’s receipt of such written request) advance such Expenses to Indemnitee, which are incurred
by Indemnitee in connection with any judicial proceeding or arbitration brought by Indemnitee (i)
to enforce his rights under, or to recover damages for breach of, this Agreement or any other
indemnification, advancement or contribution agreement or arrangement or provision of the Company’s
Certificate of Incorporation or By-laws now or hereafter in effect; or (ii) for recovery or
advances under any insurance policy maintained by any person for the benefit of Indemnitee,
regardless of whether Indemnitee ultimately is determined to be entitled to such indemnificaiton,
advance, contribution or insurance recovery, as the case may be.

(g) Interest shall be paid by the Company to Indemnitee at the then-effective Federal funds
rate, plus four percent, for amounts which the Company indemnifies or is obliged to indemnify
Indemnity. Such interest shall be paid for the period commencing with the date on which Indemnitee
pays such amount and ending with the date on which such payment is made to Indemnitee by the
Company.

8. Non-Exclusivity; Survival of Rights; Insurance; Subrogation.

(a) The rights of indemnification as provided by this Agreement shall not be deemed exclusive
of any other rights to which Indemnitee may at any time be entitled under applicable Law, the
certificate of incorporation of the Company, the By-laws (as they may be altered or amended), any
agreement, a vote of stockholders, a resolution of directors or otherwise. Indemnitee shall, in
any event and without limitation of his rights under this Agreement, but in augmentation thereof,
be entitled to the fullest indemnity and protection provided by the Company to any of its directors
and executive officers. No amendment, alteration or repeal of this Agreement or of any provision
hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment,
alteration or repeal. To the extent that a change in the Law, whether by statute or judicial
decision, permits greater indemnification than would be afforded currently under the Amended and
Restated By-laws, the Certificate of Incorporation and this Agreement, it is the intent of the
parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by
such change. No right or remedy herein conferred is intended to be exclusive of any other right or
remedy, and every other right and remedy shall be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The
assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other right or remedy.

(b) To the extent that the Company maintains an insurance policy or policies providing
liability insurance for directors, officers, employees, or agents or fiduciaries of the Company or
of any other corporation, partnership, joint venture, trust, employee benefit plan or other
enterprise that such person serves at the request of the Company, Indemnitee shall be covered by
such policy or policies in accordance with its or their terms to the maximum extent of the coverage
available for any director, officer, employee, agent or fiduciary under such policy or policies.

(c) In the event of any payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers
reasonably required and take all reasonable action necessary to secure such rights, including
execution of such documents as are necessary to enable the Company to bring suit to enforce such
rights. The Company shall fully reimburse and hold harmless Indemnitee from Expenses relating to
his performance of his obligations under this paragraph, and any such reimbursal shall not be
subject to any of the limitations set forth in Section 6 hereof.

9. Exception to Right of Indemnification. Notwithstanding any other provision of this
Agreement, Indemnitee shall not be entitled to indemnification under this Agreement with respect to
any Proceeding brought by Indemnitee, or any claim therein, unless (a) the bringing of such
Proceeding or making of such claim shall have been approved by the Board of Directors of the
Company or (b) such Proceeding is being brought by Indemnitee to assert, interpret or enforce his
rights under this Agreement.

10. Duration of Agreement. This Agreement shall continue until and terminate upon the
later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a
director or officer of the Company (incuding as Interim Chief Financial Officer) or as a director,
officer, trustee, partner, managing member, fiduciary, employee or agent of any other corporation,
partnership, joint venture, trust, employee benefit plan or other Enterprise which Indemnitee
served at the request of the Company; or (b) one (1) year after the final termination of any
Proceeding (including the rights of appeal thereto) then pending in respect of which Indemnitee is
granted rights of indemnification or advancement of Expenses hereunder and of any proceeding
commenced by Indemnitee hereunder relating hereto (including any rights of appeal).

11. Enforcement.

(a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumes the obligations imposed on it hereby in order to induce Indemnitee to serve as Interim
Financial Officer of the Company, and the Company acknowledges that Indemnitee is relying upon this
Agreement in serving as Interim Financial Officer of the Company.

(b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof.

(c) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and their respective successors (including any direct or indirect successor by
purchase, merger, consolidation or otherwise to all or substantially all of the business or assets
of the Company) and assigns, and Indemnitee’s spouse, heirs, executors, administrators and personal
and legal representatives, shall continue as to Indemnitee when he has ceased to be a director,
officer, employee or agent of the Company or of any other Enterprise at the Company’s request. The
Company agrees that it shall not enter into any agreement or arrangement to merge or consolidate
with or into another entity, or to sell all or substantially all of its assets, or otherwise
transfer its operations and assets to another entity, unless and until the successor entity shall
have expressly assumed the Company’s obligations under this Agreement, in a writing reasonably
satisfactory to Indemnitee. The Company shall not enter into any agreement or plan of liquidation
or distribution that does not fully provide for a bond, insurance or an escrow acceptable to
Indemnitee in Indemnitee’s sole judgment to cover the Company’s obligations under this Agreement.

(d) The Company and Indemnitee agree that a monetary remedy for breach of this Agreement, at
some later date, may be inadequate, impracticable and difficult of proof, and further agree that
any breach hereof may cause Indemnitee irreparable harm. Accordingly, the parties hereto agree
that Indemnitee may enforce this Agreement by seeking injunctive relief and/or specific performance
hereof, without any necessity of showing actual damage or irreparable harm and that by seeking
injunctive relief and/or specific performance, Indemnitee shall not be precluded from seeking or
obtaining any other relief to which he may be entitled. The Company and Indemnitee further agree
that Indemnitee shall be entitled to such specific performance and injunctive relief, including
temporary restraining orders, preliminary injunctions and permanent injunctions, without the
necessity of posting bonds or other undertakings in connection therewith. The Company acknowledges
that in the absence of a waiver, a bond or undertaking may be required of Indemnitee by a court,
and the Company hereby expressly, fully and completely waives any such requirement of such a bond
or undertaking and agrees that it will not seek a bond, undertaking or similar requirement in any
Proceeding.

12. Definitions. For purposes of this Agreement:

(a) “Corporate Status” describes the status of a person who is or was a director, officer,
employee, agent or fiduciary of the Company or of any other corporation, partnership, joint
venture, trust, employee benefit plan or other enterprise that such person is or was serving at the
express written request of the Company.

(b) “Disinterested Director” means a director of the Company who is not and was not a party to
the Proceeding in respect of which indemnification is sought by Indemnitee.

(c) “Enterprise” shall mean the Company and any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise that Indemnitee is or was serving at the express
written request of the Company as a director, officer, employee, agent or fiduciary.

(d) “Expenses” shall include all reasonable attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and
binding costs, telephone charges, postage, delivery service fees, costs of investigation and all
other disbursements or expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, participating, or being or preparing to
be a witness in a Proceeding.

(e) “Independent Counsel” means a national law firm, or a member of a national law firm, that
is experienced in matters of Delaware corporation law, has not had a personal relationship with
the Company or the Indemnitee in the past five years, and neither presently is, nor in the past
five years has been, retained to represent: (i) the Company or Indemnitee in any matter material
to either such party (other than with respect to matters concerning Indemnitee under this
Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other
party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest in
representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under
this Agreement.

(f) “Proceeding” includes any threatened, pending or completed action, suit, arbitration,
alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other
actual, threatened or completed proceeding, whether brought by or in the right of the Company or
otherwise and whether civil, criminal, administrative or investigative, in which Indemnitee was, is
or will or could be involved as a party or otherwise, by reason of the fact that Indemnitee is or
was an officer or director of the Company, by reason of any action taken by him or of any inaction
on his part while acting as an officer or director of the Company, or by reason of the fact that he
is or was serving at the request of the Company as a director, officer, employee, agent or
fiduciary of another corporation, partnership, joint venture, trust or other Enterprise; in each
case whether or not he is acting or serving in any such capacity at the time any liability or
expense is incurred for which indemnification can be provided under this Agreement; including one
pending on or before the date of this Agreement.

13. Severability. If any provision or provisions of this Agreement shall be held by a
court of competent jurisdiction to be invalid, void, illegal or otherwise unenforceable for any
reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of
this Agreement (including without limitation, each portion of any section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable that is not itself
invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall
remain enforceable to the fullest extent permitted by Law; and (b) to the fullest extent possible,
the provisions of this Agreement (including, without limitation, each portion of any section of
this Agreement containing any such provision held to be invalid, illegal or unenforceable that is
not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent
manifested thereby. Without limiting the generality of the foregoing, this Agreement is intended to
confer upon Indemnitee indemnification rights to the fullest extent permitted by applicable Laws
and contract. In the event any provision hereof conflicts with any applicable Law, such provision
shall be deemed modified, consistent with the aforementioned intent, to the extent necessary to
resolve such conflict.

14. Modification and Waiver. No supplement, modification, termination or amendment of
this Agreement shall be binding unless executed in writing by both of the parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions hereof (whether or not similar) nor shall such waiver constitute a continuing
waiver.

15. Notice by Indemnitee and the Company. Indemnitee agrees promptly to notify the
Company in writing upon being served with or otherwise receiving any summons, citation, subpoena,
complaint, indictment, information or other document relating to any Proceeding or matter which may
be subject to indemnification covered hereunder. The failure to so notify the Company shall not
relieve the Company of any obligation which it may have to Indemnitee under this Agreement or
otherwise unless and only to the extent that such failure or delay materially prejudices the
Company. The Company agrees promptly to notify Indemnitee in writing upon being served with or
otherwise receiving any summons, citation, subpoena, complaint, indictment, information or other
document relating to any Proceeding or matter which may be subject to indemnification covered
hereunder.

16. Notices. All notices, requests, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given if (i) delivered by hand and receipted
for by the party to whom said notice or other communication shall have been directed, or
(ii) mailed by certified or registered mail with postage prepaid, on the third business day after
the date on which it is so mailed:

(a) If to Indemnitee, to the address set forth below Indemnitee signature hereto.

	 	(b)	 	If to the Company, to:

     

     

     

Attention:      

or to such other address as may have been furnished to Indemnitee by the Company or to the Company
by Indemnitee, as the case may be.

17. Identical Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall for all purposes be deemed to be an original but all of which
together shall constitute one and the same Agreement. Only one such counterpart signed by the
party against whom enforceability is sought needs to be produced to evidence the existence of this
Agreement.

18. Headings. The headings of the paragraphs of this Agreement are inserted for
convenience only and shall not be deemed to constitute part of this Agreement or to affect the
construction thereof.

19. Governing Law. The parties agree that this Agreement and the rights and
obligations of the parties hereunder, and any claim or controversy directly or indirectly based
upon or arising out of this Agreement (whether based upon contract, tort or any other theory),
including all matters of construction, validity and performance, shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware without application of
the conflict of laws principles thereof that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

20. Consent to Jurisdiction. Each party irrevocably submits to the exclusive
jurisdiction of (a) the state courts of the State of Texas located in Dallas, Dallas County, Texas
for purposes of any action arising out of this Agreement; provided, however, that an action to
determine solely and exclusively that Indemnitee is entitled to indemnification hereunder
notwithstanding an adjudication of liability to the Company, as contemplated by Section 1(b), may
be brought in the Court of Chancery of the State of Delaware. Each party agrees that no proceeding
arising out of or in connection with this Agreement shall be brought in any other state or Federal
court in the United States of America or any court in any other country, and each party consents to
submit to the exclusive jurisdiction of the courts set forth in the first sentence of this
paragraph for purposes of any action or proceeding, as contemplated in such sentence. Each party
irrevocably and unconditionally waives any objection to the laying of venue of any action arising
out of this Agreement in such courts, and hereby further irrevocably and unconditionally waives and
agrees not to plead or claim in any such court that any such action brought in any such court has
been brought in an inconvenient forum.

21. Representations and Warranties of the Company. The Company hereby represents and
warrants to Indemnitee that it has all necessary corporate power and authority to enter into and be
bound by the terms of this Agreement, and the execution, delivery and performance of the
undertakings contemplated by this Agreement have been duly authorized by the Company. This
Agreement, when executed and delivered by the Company in accordance with the provisions hereof,
shall be a legal, valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization or similar laws affecting the enforcement of creditors’
rights generally.

[The Remainder of this Page Is Intentionally Blank.]

1

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

INDEMNITORS:

CSK AUTO CORPORATION:

     

CSK AUTO, INC.

By:

Name:

Title:

CSK AUTO.COM, INC.

By:

Name:

Title:

INDEMNITEE:

Name: Steven L. Korby

Address:

2EX-10.11

CREDIT AGREEMENT

Pennsylvania

June 26, 2007

Borrower: STERLING FINANCIAL CORPORATION, a corporation organized under the laws of the
Commonwealth of Pennsylvania having its chief executive office at 101 North Pointe Boulevard,
Lancaster, Pennsylvania 17601.

	 	 	Bank: MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation with its chief
executive office at One M&T Plaza, Buffalo, NY 14240. Attention: Office of General Counsel.

The Bank and the Borrower agree, intending to be legally bound, as follows:

1. DEFINITIONS.

	 	a.	 	“BLC” means BLC Bank, N.A., a national banking association.

	 	b.	 	“Credit” means any and all credit facilities and any other financial accommodations
made by the Bank in favor of the Borrower whether now or hereafter in existence.

	 	c.	 	“G.A.A.P.” means, with respect to any date of determination, generally accepted
accounting principles as used by the Financial Accounting Standards Board and/or the
American Institute of Certified Public Accountants consistently applied and maintained
throughout the periods indicated.

	 	d.	 	“Governmental Authority” means any nation or government, any state or other political
subdivision thereof and any entity or person exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government, including, without
limitation, any department, commission, board, bureau, agency, administration, official,
service or other instrumentality of the United States of America, of any state, the
District of Columbia, municipality or any other governmental entity.

	 	e.	 	“Note” means the Libor Note (Line of Credit) dated the date hereof by the Borrower,
payable to the order of the Bank, in the principal amount of up to $80,000,000, as the same
may be extended, amended, supplemented or modified from time to time.

	 	f.	 	“Obligations” means any and all indebtedness or other obligations of the Borrower to
the Bank in any capacity, now existing or hereafter incurred, however created or evidenced,
regardless of kind, class or form, whether direct, indirect, absolute or contingent
(including obligations pursuant to any guaranty, endorsement, other assurance of payment or
otherwise), whether joint or several, whether from time to time reduced and thereafter
increased, or entirely extinguished and thereafter reincurred, together with all
extensions, renewals and replacements thereof, and all interest, fees, charges, costs or
expenses which accrue on or in connection with the foregoing, including any indebtedness or
obligations (i) not yet outstanding but contracted for, or with regard to which any other
commitment by the Bank exists; (ii) arising prior to, during or after any pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether
allowed or allowable in such proceeding; (iii) owed by the Borrower to others and which
the Bank obtained, or may obtain, by assignment or otherwise; and (iv) payable under this
Agreement.

	 	g.	 	“Person” means an individual, partnership, corporation, trust, estate,
unincorporated association, syndicate, joint venture or organization, or a governmental
department or agency thereof.

	 	h.	 	“Pledge of Securities” means the Pledge of Securities dated the date hereof by the
Borrower as pledgor to the Bank as secured party, securing the Obligations, as the same may
be extended, amended, supplemented or modified from time to time.

	 	i.	 	“Subsidiary” means any corporation or other business entity of which at least fifty
percent (50%) of the voting stock or other ownership interest is owned by the Borrower
directly or indirectly through one or more Subsidiaries. If the Borrower has no
Subsidiaries, the provisions of this Agreement relating to the Subsidiaries shall be
disregarded, without affecting the applicability of such provisions to the Borrower alone.

	 	j.	 	“Tangible Net Worth” means the aggregate assets of BLC excluding all intangible
assets, including, but not limited to, goodwill, licenses, trademarks, patents, copyrights,
organization costs, appraisal surplus, officer, stockholder, related entity and employee
advances or receivables, mineral rights and the like, less liabilities, all determined in
accordance with G.A.A.P. (except to the extent that under G.A.A.P. “tangible net worth”
excludes leasehold improvements which are included in “Tangible Net Worth” as defined
herein).

	 	k.	 	“Transaction Documents” means this Agreement, the Note, the Pledge of Securities,
and all documents, instruments or other agreements by the Borrower in favor of the Bank in
connection (directly or indirectly) with the Obligations, whether now or hereafter in
existence, including promissory notes, security agreements, guaranties and letter of credit
reimbursement agreements.

	2.	 	REPRESENTATIONS AND WARRANTIES. The Borrower makes the following representations and
warranties and any “Additional Representations and Warranties” on the schedule attached hereto
and made part hereof (the “Schedule”), all of which shall be deemed to be continuing
representations and warranties as long as this Agreement is in effect:

	 	a.	 	Good Standing; Authority. The Borrower and each Subsidiary (if either is not an
individual) is duly organized, validly existing and in good standing under the laws of the
jurisdiction in which it was formed. The Borrower and each Subsidiary is duly authorized
to do business in each jurisdiction in which failure to be so qualified might have a
material adverse effect on its business or assets and has the power and authority to own
each of its assets and to use them in the ordinary course of business now and in the
future.

	 	b.	 	Compliance. The Borrower and each Subsidiary conducts its business and operations
and the ownership of its assets in compliance with each applicable statute, regulation and
other law, including environmental laws. Except as otherwise disclosed in writing to the
Bank prior to the date hereof, all approvals, including regulatory approvals,
authorizations, permits, consents, franchises, licenses, registrations, filings,
declarations, reports and notices (the “Approvals”) necessary for the conduct of the
Borrower’s and each Subsidiary’s business and for the Credit have been duly obtained and
are in full force and effect. The Borrower and each Subsidiary is in compliance with the
Approvals. The Borrower and each Subsidiary (if either is not an individual) is in
compliance with its certificate of incorporation, by-laws, partnership agreement, articles
of organization, operating agreement or other applicable organizational or governing
document as may be applicable to the Borrower or a Subsidiary depending on its
organizational structure (“Governing Documents”). The Borrower and each Subsidiary is in
compliance with each agreement to which it is a party or by which it or any of its assets
is bound.

	 	c.	 	Legality. The execution, delivery and performance by the Borrower of this Agreement
and all related documents, including the Transaction Documents, (i) are in furtherance of
the Borrower’s purposes and within its power and authority; (ii) do not (A) violate any
statute, regulation or other law or any judgment, order or award of any court, agency or
other governmental authority or of any arbitrator with respect to the Borrower or any
Subsidiary or (B) violate the Borrower’s or any Subsidiary’s Governing Documents (if either
is not an individual), constitute a default under any agreement binding on the Borrower or
any Subsidiary or result in a lien or encumbrance on any assets of the Borrower or any
Subsidiary; and (iii) if the Borrower or any Subsidiary is not an individual, have been
duly authorized by all necessary organizational actions.

	 	d.	 	Fiscal Year. The fiscal year of the Borrower is the calendar year.

	 	e.	 	Title to Assets. The Borrower and each Subsidiary has good and marketable title to
each of its assets free of security interests, mortgages or other liens or encumbrances,
except as set forth on the Schedule titled “Permitted Liens” or pursuant to the Bank’s
prior written consent.

	 	f.	 	Judgments and Litigation. Except as set forth in Exhibit B attached hereto,
there is no pending or threatened claim, audit, investigation, action or other legal
proceeding or judgment, order or award of any court, agency or other governmental authority
or arbitrator (any, an “Action”) which involves the Borrower, its Subsidiaries or their
respective assets and might have a material adverse effect upon the Borrower or any
Subsidiary or threaten the validity of the Credit, any Transaction Document or any related
document or action.

	 	g.	 	Full Disclosure. Neither this Agreement nor any certificate, financial statement or
other writing provided to the Bank by or on behalf of the Borrower or any Subsidiary
contains any statement of fact that is incorrect or misleading in any material respect or
omits to state any fact necessary to make any such statement not incorrect or misleading.
The Borrower has not failed to disclose to the Bank any fact that might have a material
adverse effect on the Borrower or any Subsidiary.

	3.	 	AFFIRMATIVE COVENANTS. So long as this Agreement is in effect, the Borrower will
comply with any “Additional Affirmative Covenant” contained in the Schedule and shall:

	 	a.	 	Financial Statements and Other Information. Promptly deliver to the Bank (i) no
later than November 15, 2007, amended financial statements of the Borrower dated as of
December 31, 2006 audited by an independent certified public accountant acceptable to the
Bank; (ii) within sixty (60) days after the end of each of its first three fiscal quarters,
a copy of the Call Report for each banking Subsidiary in the forms required to be filed by
such Subsidiary by the Federal Financial Institutions Examination Council (“FFIEC”) or such
other regulatory agency or authority having jurisdiction over financial reporting by banks
(the “Call Report”) and financial statements of the Borrower and each Subsidiary as of the
end of such fiscal quarter, which financial statement shall consist of income and cash
flows for the quarter, for the corresponding quarter in the previous fiscal year and for
the period from the end of the previous fiscal year, with a consolidating and consolidated
balance sheet as of the quarter end all in such detail as the Bank may request;
(iii) within ninety (90) days after the end of each fiscal year, a copy of the Call Report
for each banking Subsidiary, a copy of the Form 10K for the Borrower and each Subsidiary
required to be filed with the United States Securities and Exchange Commission and
consolidating and consolidated statements of the Borrower’s and each Subsidiary’s income
and cash flows and its consolidating and consolidated balance sheet as of the end of such
fiscal year, setting forth comparative figures for the preceding fiscal year and to be
audited by an independent certified public accountant acceptable to the Bank; all such
statements shall be prepared in accordance with G.A.A.P. or if otherwise required, in
accordance with any applicable regulatory accounting principles and certified by the
Borrower’s chief financial officer to be correct and in accordance with the Borrower’s and
each Subsidiary’s records and to present fairly the results of the Borrower’s and each
Subsidiary’s operations and cash flows and its financial position at year end; and (iv)
with each statement of income, a certificate executed by the Borrower’s chief executive and
chief financial officers or other such person responsible for the financial management of
the Borrower (A) setting forth the computations required to establish the Borrower’s
compliance with each financial covenant, if any, during the statement period, (B) stating
that the signers of the certificate have reviewed this Agreement and the operations and
condition (financial or other) of the Borrower and each of its Subsidiaries during the
relevant period and (C) stating that no Event of Default occurred during the period, or if
an Event of Default did occur, describing its nature, the date(s) of its occurrence or
period of existence and what action the Borrower has taken with respect thereto. The
Borrower shall also promptly provide the Bank with copies of all annual reports, proxy
statements and similar information distributed to shareholders, partners or members, and
copies of all filings with the Securities and Exchange Commission and the Pension Benefit
Guaranty Corporation, and shall provide, in form satisfactory to the Bank, such additional
information, reports or other information as the Bank may from time to time reasonably
request regarding the financial and business affairs of the Borrower or any Subsidiary.

	 	b.	 	Accounting; Tax Returns and Payment of Claims. The Borrower and each Subsidiary
will maintain a system of accounting and reserves in accordance with generally accepted
accounting principles, has filed and will file each tax return required of it and, except
as disclosed in the Schedule, has paid and will pay when due each tax, assessment, fee,
charge, fine and penalty imposed by any taxing authority upon it or any of its assets,
income or franchises, as well as all amounts owed to mechanics, materialmen, landlords,
suppliers and the like in the normal course of business.

	 	c.	 	Inspections. Promptly upon the Bank’s request, the Borrower will permit, and cause
its Subsidiaries to permit, the Bank’s officers, attorneys or other agents to inspect its
and its Subsidiary’s premises, examine and copy its records and discuss its and its
Subsidiary’s business, operations and financial or other condition with its and its
Subsidiary’s responsible officers and independent accountants.

	 	d.	 	Depository Accounts. Maintain a depository account with the Bank.

	 	e.	 	Changes in Management and Control. If the Borrower is not an individual,
immediately upon any change in the identity of the Borrower’s chief executive officers or
in its beneficial ownership, the Borrower will provide to the Bank a certificate executed
by its senior individual authorized to transact business on behalf of the Borrower,
specifying such change.

	 	f.	 	Notice of Defaults and Material Adverse Changes. Immediately upon acquiring reason
to know of (i) any Event of Default, (ii) any event or condition that might have a
material adverse effect upon the Borrower or any Subsidiary or (iii) any Action, the
Borrower will provide to the Bank a certificate executed by the Borrower’s senior
individual authorized to transact business on behalf of the Borrower, specifying the
date(s) and nature of the event or the Action and what action the Borrower or its
Subsidiary has taken or proposes to take with respect to it.

	 	g.	 	Insurance. Maintain its, and cause its Subsidiaries to maintain, property in good
repair and will on request provide the Bank with evidence of insurance coverage
satisfactory to the Bank, including fire and hazard, liability, workers’ compensation and
business interruption insurance and flood hazard insurance as required.

	 	h.	 	Further Assurances. Promptly upon the request of the Bank, the Borrower will
execute, and cause its Subsidiaries to execute, and deliver each writing and take each
other action that the Bank deems necessary or desirable in connection with any transaction
contemplated by this Agreement.

SEE SCHEDULE FOR ADDITIONAL AFFIRMATIVE COVENANTS.

	4.	 	NEGATIVE COVENANTS. As long as this Agreement is in effect, the Borrower shall not
violate, and shall not suffer or permit any of its Subsidiaries to violate, any of the
following covenants and any “Additional Negative Covenant” on the Schedule. The Borrower
shall not, other than as required in the ordinary course of the current respective businesses
of the Borrower and each of its Subsidiaries:

	 	a.	 	Indebtedness. Permit any indebtedness (including direct and contingent liabilities)
not described on the Schedule titled “Permitted Indebtedness” except for trade indebtedness
or current liabilities for salary and wages incurred in the ordinary course of business and
not substantially overdue.

	 	b.	 	Guaranties. Become a guarantor, a surety, or otherwise liable for the debts or
other obligations of another, whether by guaranty or suretyship agreement, agreement to
purchase indebtedness, agreement for furnishing funds through the purchase of goods,
supplies or services (or by way of stock purchase, capital contribution, advance or loan)
for the purpose of paying or discharging indebtedness, or otherwise, except as an endorser
of instruments for the payment of money deposited to its bank account for collection in the
ordinary course of business and except as may be specified in the Schedule titled
“Permitted Guaranties”.

	 	c.	 	Liens. Permit any of its assets to be subject to any security interest, mortgage or
other lien or encumbrance, except as set forth on the Schedule titled “Permitted Liens” and
except for liens for property taxes not yet due; pledges and deposits to secure obligations
or performance for workers’ compensation, bids, tenders, contracts other than notes, appeal
bonds or public or statutory obligations; and materialmen’s, mechanics’, carriers’ and
similar liens arising in the normal course of business.

	 	d.	 	Investments. Make any investment other than in FDIC insured deposits or United
States Treasury obligations of less than one year, or in money market or mutual funds
administering such investments, except as set forth on the Schedule titled “Permitted
Investments”.

	 	e.	 	Loans. Make any loan, advance or other extension of credit except as disclosed on
the Schedule titled “Permitted Loans”, except for endorsements of negotiable instruments
deposited to the Borrower’s deposit account for collection, trade credit in the normal
course of business and intercompany loans approved in writing by the Bank.

	 	f.	 	Distributions. If the Borrower is not an individual, declare or pay any
distribution, except for (i) dividends payable solely in stock, (ii) cash dividends paid to
the Borrower by its Subsidiary and (iii) cash distributions to BLC as set forth in Section
2(k) of the Note. Notwithstanding the foregoing, the Borrower shall not pay any dividends
so long as BLC is not permitted to distribute funds to the Borrower.

	 	g.	 	Changes In Form. (i) Transfer or dispose of substantially all of its assets, (ii)
acquire substantially all of the assets of any other entity, (iii) do business under or
otherwise use any name other than its true name, except for business done under the name
of the Borrower or the current names of any Subsidiaries in the ordinary course of business
and in compliance with all applicable statutes, regulations and other laws, or (iv) make
any material change in its business, structure, purposes or operations that might have a
material adverse effect on the Borrower or any of its Subsidiaries. If the Borrower or any
Subsidiary is not an individual, (i) participate in any merger, consolidation or other
absorption or (ii) make, terminate or permit to be revoked any election pursuant to
Subchapter S of the Internal Revenue Code.

	 	 	 	SEE SCHEDULE FOR ADDITIONAL NEGATIVE COVENANTS.

	5.	 	FINANCIAL COVENANTS. During the term of this Agreement, the Borrower shall not
violate, and shall not suffer or permit any of its Subsidiaries to violate, the following
covenant or any Additional Financial Covenants on the Schedule. For purposes of this Section,
if the Borrower has any Subsidiaries all references to the Borrower shall include the Borrower
and all of its Subsidiaries on a consolidated basis. Unless a different measurement period is
specified, compliance for the financial covenants shall be required at all times.

a. BLC shall maintain as of July 31, 2007 and at each quarter end thereafter
consolidated Tangible Net Worth equal to the greater of (i) $190,000,000, or (ii) 95% of the
Tangible Net Worth of BLC as of the date of the closing of the Credit and both being prior to
the capital distribution described in Section 2(k)(i) of the Note plus 100% of any other
capital distribution by the Borrower to BLC.

SEE SCHEDULE FOR ADDITIONAL FINANCIAL COVENANTS.

	6.	 	DEFAULT.

	 	a.	 	Events of Default. Any of the following events or conditions shall constitute an
“Event of Default”: (i) failure by the Borrower to pay within ten (10) days following
written notice that the same is due (whether at the stated maturity, by acceleration, upon
demand or otherwise) the Obligations, or any part thereof, or there occurs any event or
condition which after notice, lapse of time or after both notice and lapse of time will
permit acceleration of any Obligation; (ii) failure by the Borrower to cure a default by
the Borrower in the performance of any other obligation, term or condition of this
Agreement, the other Transaction Documents or any other agreement with the Bank or any of
its affiliates or subsidiaries (collectively, “Affiliates”) within twenty (20) days after
Borrower first receives notice of any such default; (iii) failure by the Borrower to pay
when due and after the receipt of any applicable notice and the passage of any applicable
cure period (whether at the stated maturity, by acceleration, upon demand or otherwise) any
indebtedness or obligation in an aggregate amount equal to or greater than $500,000 owing
to the Bank (other than under the Note), any third party(ies) or any Affiliate(s), the
occurrence of any event which could result in acceleration of payment of any such
indebtedness or obligation or the failure to perform any agreement with any third
party(ies) or any Affiliate(s); (iv) the Borrower is dissolved, becomes insolvent,
generally fails to pay or admits in writing its inability generally to pay its debts as
they become due; (v) the Borrower makes a general assignment, arrangement or composition
agreement with or for the benefit of its creditors or makes, or sends notice of any
intended, bulk sale; the sale, assignment, transfer or delivery of all or substantially all
of the assets of the Borrower to a third party; or the cessation by the Borrower as a going
business concern; (vi) the Borrower files a petition in bankruptcy or institutes any action
under federal or state law for the relief of debtors or seeks or consents to the
appointment of an administrator, receiver, custodian or similar official for the wind up of
its business (or has such a petition or action filed against it and such petition action or
appointment is not dismissed or stayed within forty-five (45) days’); (vii) the
reorganization, merger, consolidation or dissolution of the Borrower (or the making of any
agreement therefor); (viii) Intentionally Deleted; (ix) failure to pay, withhold or collect
any tax as required by law; the service or filing against Borrower or any of its assets of
any lien (other than a lien permitted by the Bank), judgment, garnishment, order or award
of any court, other governmental authority or arbitrator against the Borrower, other than a
judgment, order or award for which the Borrower is fully insured, if ten (10) days
thereafter such judgment, order or award is not satisfied, vacated, bonded or stayed
pending appeal; (x) any representation or warranty made in this Agreement, any related
document, any agreement between Borrower and the Bank or any Affiliate or in any financial
statement of Borrower proves to have been misleading in any material respect when made;
Borrower omits to state a material fact necessary to make the statements made in this
Agreement, any related document, any agreement between Borrower and the Bank or any
Affiliate or any financial statement of Borrower not misleading in light of the
circumstances in which they were made; or, if upon the date of execution of this Agreement,
there shall have been any materially adverse change in any of the facts disclosed in any
financial statement, representation or warranty that was not disclosed in writing to the
Bank at or prior to the time of execution hereof; (xi) an adverse change in the Borrower,
its business, assets, operations, affairs or condition (financial or otherwise) from the
status shown on any financial statement or other document submitted to the Bank or any
Affiliate, and which change the Bank determines will have a material adverse affect on (a)
the Borrower, its business, assets, operations or condition (financial or otherwise), or
(b) the ability of the Borrower to pay or perform the Obligations; (xii) any
noncontributory retirement plan of the Borrower fails to comply with applicable law or has
vested unfunded liabilities that, in the opinion of the Bank, might have a material adverse
effect on the Borrower’s ability to repay its debts; (xiii) any indication or evidence
received by the Bank that the Borrower may have directly or indirectly been engaged in any
type of activity which, in the Bank’s discretion, might result in the forfeiture or any
property of the Borrower to any governmental authority; (xiv) the occurrence of any event
described in Section 6(a)(i) through and including 6(a)(xiii) with respect to any
Subsidiary or to any endorser, guarantor or any other party liable for, or whose assets or
any interest therein secures, payment of any of the Obligations; (xv) Borrower fails to
supply new or additional collateral within ten (10) days of request by the Bank; (xvi) the
Bank in good faith deems itself insecure with respect to payment or performance of the
Obligations; (xvii) the occurrence of any formal regulatory action against the Borrower or
any Subsidiaries including but not limited to any cease and desist order, temporary cease
and desist order, written or supervisory agreement, removal and prohibition order, or civil
money penalty which is not satisfied and/or cured within sixty (60) days after receipt of
notice of such action, but excluding any formal regulatory action which has either: (a)
occurred or is pending and which was disclosed to the Bank prior to the date hereof or (b)
any regulatory action that occurs as a continuation of regulatory activity initiated in
response to the Equipment Finance, LLC loan scheme announced by the Borrower on May 24,
2007, provided, however, that any informal regulatory action against the Borrower or any
Subsidiary including but not limited to memoranda of understanding shall not constitute an
Event of Default hereunder so long as the Borrower or such Subsidiary is in compliance with
the actions and/or changes required under such regulatory action; (xviii) the failure of
BLC to maintain the required minimum Tangible Net Worth as set forth in Section 5(a) of
this Agreement; or (xix) the failure by the Borrower or any Subsidiary to cure any failure
by the Borrower or such Subsidiary to maintain any Affirmative Financial Covenant as
required under Section 5 of this Agreement within twenty (20) days after Borrower first
receives notice of any such failure provided that at all times during the period of such
failure, BLC has maintained the minimum Tangible Net Worth required under Section 5(a).

	 	b.	 	Rights and Remedies Upon Default. Upon the occurrence of any Event of Default, the
Bank without demand of performance or other demand, presentment, protest, advertisement or
notice of any kind (except any notice required by law) to or upon the Borrower, any
Subsidiary or any other person (all and each of which demands, presentments, protests,
advertisements and notices are hereby waived), may exercise all rights and remedies under
the Borrower’s or its Subsidiaries’ agreements with the Bank or its Affiliates, applicable
law, in equity or otherwise and may declare all or any part of any Obligations not payable
on demand to be immediately due and payable without demand or notice of any kind and
terminate any obligation it may have to grant any additional loan, credit or other
financial accommodation to the Borrower or any Subsidiary. All or any part of any
Obligations whether or not payable on demand, shall be immediately due and payable
automatically upon the occurrence of an Event of Default in Section 6(a)(vi) above. The
provisions hereof are not intended in any way to affect any rights of the Bank with respect
to any Obligations which may now or hereafter be payable on demand.

	 	c.	 	Notwithstanding the foregoing Section 6(a) or any other provision in this Agreement
or any of the other Transaction Documents, the Bank hereby acknowledges and agrees that a
merger, reorganization, consolidation or dissolution of the Borrower in connection with the
sale of all or substantially all of the assets of the Borrower to a third party purchaser
(or the making of any agreement therefor [the “Sale Agreement”]) shall not constitute an
Event of Default hereunder or under any of the other Transaction Documents so long as prior
to such merger, reorganization, consolidation or dissolution but in no event later than
thirty (30) days after the Sale Agreement has been fully executed, the Bank has received a
fully executed agreement from such purchaser in form satisfactory to the Bank in its sole
discretion that at the time of such sale the Obligations shall be paid out of the proceeds
of such sale.

	7.	 	EXPENSES. The Borrower shall pay to the Bank on demand all reasonable costs and
expenses (including all fees and disbursements of counsel retained for advice, suit, appeal or
other proceedings or purpose and of any experts or agents it may retain), which the Bank may
incur in connection with (i) the administration of the Obligations, including any
administrative fees the Bank may impose for the preparation of discharges, releases or
assignments to third-parties; (ii) the enforcement and collection of any Obligations or any
guaranty thereof; (iii) the exercise, performance, enforcement or protection of any of the
rights of the Bank hereunder; or (iv) the failure of the Borrower or any Subsidiary to perform
or observe any provisions hereof. After such demand for payment of any cost, expense or fee
under this Section or elsewhere under this Agreement, the Borrower shall pay interest at the
highest default rate specified in any instrument evidencing any of the Obligations from the
date payment is demanded by the Bank to the date reimbursed by the Borrower. All such costs,
expenses or fees under this Agreement shall be added to the Obligations.

	8.	 	TERMINATION. This Agreement shall remain in full force and effect until (i) all
Obligations outstanding, or contracted or committed for (whether or not outstanding), shall be
finally and irrevocably paid in full and (ii) all Transaction Documents have been terminated
by the Bank.

	9.	 	RIGHT OF SETOFF. If an Event of Default occurs, the Bank shall have the right to set
off against the amounts owing under this Agreement and the other Transaction Documents any
property held in a deposit or other account or otherwise with the Bank or its Affiliates or
otherwise owing by the Bank or its Affiliates in any capacity to the Borrower, its Subsidiary
or any guarantor of, or endorser of any of the Transaction Documents evidencing, the
Obligations. Such setoff shall be deemed to have been exercised immediately at the time the
Bank or such Affiliate elect to do so.

10. MISCELLANEOUS.

	 	a.	 	Notices. Any notice or demand hereunder or required under applicable law shall be
duly given if delivered or mailed to the Borrower (at its address on the Bank’s records) or
to the Bank (at the address on page one and separately to the officer of the Bank
responsible for the Borrower’s relationship with the Bank). Such notice or demand shall be
deemed effective if delivered, upon personal delivery or if mailed, three (3) business days
after deposit in an official depository maintained by the United States Post Office for the
collection of mail or one (1) business day after delivery to a nationally recognized
overnight delivery service. Notice by e-mail is not valid notice under this or any other
agreement between the Borrower and the Bank.

	 	b.	 	Generally Accepted Accounting Principles. Any financial calculation to be made, all
financial statements and other financial information to be provided, and all books and
records, system of accounting and reserves to be kept in connection with the provisions of
this Agreement, shall be in accordance with generally accepted accounting principles
consistently applied during each interval and from interval to interval; provided, however,
that in the event changes in generally accepted accounting principles shall be mandated by
the Financial Accounting Standards Board or any similar accounting body of comparable
standing, or should be recommended by Borrower’s certified public accountants, to the
extent such changes would affect any financial calculations to be made in connection
herewith, such changes shall be implemented in making such calculations only from and after
such date as Borrower and the Bank shall have amended this Agreement to the extent
necessary to reflect such changes in the financial and other covenants to which such
calculations relate.

	 	c.	 	Indemnification. If after receipt of any payment of all, or any part of, the
Obligations, the Bank is, for any reason, compelled to surrender such payment to any person
or entity because such payment is determined to be void or voidable as a preference, an
impermissible setoff, or a diversion of trust funds, or for any other reason, the
Transaction Documents shall continue in full force and the Borrower shall be liable, and
shall indemnify and hold the Bank harmless for, the amount of such payment surrendered.
The provisions of this Section shall be and remain effective notwithstanding any contrary
action which may have been taken by the Bank in reliance upon such payment, and any such
contrary action so taken shall be without prejudice to the Bank’s rights under the
Transaction Documents and shall be deemed to have been conditioned upon such payment having
become final and irrevocable. The provisions of this Section shall survive the termination
of this Agreement and the Transaction Documents.

	 	d.	 	Further Assurances. From time to time, the Borrower shall take, and cause its
Subsidiaries to take, such action and execute and deliver to the Bank such additional
documents, instruments, certificates, and agreements as the Bank may reasonably request to
effectuate the purposes of the Transaction Documents.

	 	e.	 	Cumulative Nature and Non-Exclusive Exercise of Rights and Remedies. All rights and
remedies of the Bank pursuant to this Agreement and the Transaction Documents shall be
cumulative, and no such right or remedy shall be exclusive of any other such right or
remedy. In the event of any unreconcilable inconsistencies, this Agreement shall control.
No single or partial exercise by the Bank of any right or remedy pursuant to this Agreement
or otherwise shall preclude any other or further exercise thereof, or any exercise of any
other such right or remedy, by the Bank.

	 	f.	 	Governing Law; Jurisdiction. This Agreement has been delivered to and accepted by
the Bank and will be deemed to be made in the Commonwealth of Pennsylvania. Unless provided
otherwise under federal law, this Agreement will be interpreted in accordance with laws of
the Commonwealth of Pennsylvania, excluding its conflict of laws rules. BORROWER HEREBY
IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN THE
COMMONWEALTH OF PENNSYLVANIA IN A COUNTY OR JUDICIAL DISTRICT WHERE THE BANK MAINTAINS A
BRANCH, AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND AT
BORROWER’S ADDRESS AS SET FORTH IN THE ABOVE SECTION ENTITLED “NOTICES”; PROVIDED THAT
NOTHING CONTAINED IN THIS AGREEMENT WILL PREVENT THE BANK FROM BRINGING ANY ACTION,
ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST BORROWER INDIVIDUALLY,
AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF BORROWER WITHIN ANY OTHER COUNTY, STATE OR
OTHER FOREIGN OR DOMESTIC JURISDICTION. Borrower acknowledges and agrees that the venue
provided above is the most convenient forum for both the Bank and Borrower, and Borrower
waives any objection to venue and any objection based on a more convenient forum in any
action instituted under this Agreement.

	 	g.	 	Joint and Several; Successors and Assigns. If there is more than one Borrower,
each of them shall be jointly and severally liable for all amounts, which become due, and
the performance of all obligations under this Agreement, and the term “the Borrower” shall
include each as well as all of them. This Agreement shall be binding upon the Borrower and
upon its heirs and legal representatives, its successors and assignees, and shall inure to
the benefit of, and be enforceable by, the Bank, its successors and assignees and each
direct or indirect assignee or other transferee of any of the Obligations; provided,
however, that this Agreement may not be assigned by the Borrower without the prior written
consent of the Bank.

	 	h.	 	Waivers; Changes in Writing. No failure or delay of the Bank in exercising any
power or right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or power, or any abandonment or discontinuance of steps to
enforce such a right or power, preclude any other or further exercise thereof or the
exercise of any other right or power. The Borrower expressly disclaims any reliance on any
course of dealing or usage of trade or oral representation of the Bank (including
representations to make loans to the Borrower) and agrees that none of the foregoing shall
operate as a waiver of any right or remedy of the Bank. No notice to or demand on the
Borrower in any case shall entitle the Borrower to any other or further notice or demand in
similar or other circumstances. No waiver of any provision of this Agreement or consent to
any departure by the Borrower therefrom shall in any event be effective unless made
specifically in writing by the Bank and then such waiver or consent shall be effective only
in the specific instance and for the purpose for which given. No modification to any
provision of this Agreement shall be effective unless made in writing in an agreement
signed by the Borrower and the Bank.

	 	i.	 	Interpretation. Unless the context otherwise clearly requires, references to plural
includes the singular and references to the singular include the plural; references to
“individual” shall mean a natural person and shall include a natural person doing business
under an assumed name (e.g., a “DBA”); the word “or” has the inclusive meaning represented
by the phrase “and/or”; the word “including”, “includes” and “include” shall be deemed to
be followed by the words “without limitation”; and captions or section headings are solely
for convenience and not part of the substance of this Agreement. Any representation,
warranty, covenant or agreement herein shall survive execution and delivery of this
Agreement and shall be deemed continuous. Each provision of this Agreement shall be
interpreted as consistent with existing law and shall be deemed amended to the extent
necessary to comply with any conflicting law. If any provision nevertheless is held
invalid, the other provisions shall remain in effect. The Borrower agrees that in any
legal proceeding, a photocopy of this Agreement kept in the Bank’s course of business may
be admitted into evidence as an original.

	 	j.	 	Waiver of Jury Trial. THE BORROWER AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY, AND
INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THE BORROWER AND THE BANK MAY HAVE IN ANY
ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS AGREEMENT OR ANY
TRANSACTIONS RELATED HERETO. THE BORROWER REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE
OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WILL NOT, IN
THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL WAIVER. THE BORROWER ACKNOWLEDGES
THAT THE BANK HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE
PROVISIONS OF THIS SECTION.

	 	k.	 	Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be effective only upon delivery and thereafter shall be deemed an original, and
all of which shall be taken to be one and the same instrument, for the same effect as if
all parties hereto had signed the same signature page. Any signature page of this
Agreement may be detached from any counterpart of this Agreement without impairing the
legal effect of any signatures thereon and may be attached to another counterpart of this
Agreement identical in form hereto but having attached to it one or more additional
signature pages.

	11.	 	DISBURSEMENT MATTERS.

a. Conditions Precedent to the First Advance. The obligation of the Bank under this
Agreement to make the first advance is subject to the fulfillment of the following conditions to
the satisfaction of the Bank or its agents, in their sole discretion:

i. The Borrower shall have executed and delivered (or shall have caused to be executed and
delivered) to the Bank all of the Transaction Documents;

ii. All representations and warranties contained in this Agreement or in any of the other
Transaction Documents shall be true, correct and complete;

iii. The Borrower shall have performed all terms and conditions of the Transaction Documents;

iv. If requested by the Bank, the Borrower shall have delivered to the Bank an opinion of
counsel, satisfactory to the Bank, opining as to the legality, validity, enforceability and binding
effect of all Transaction Documents, and such other matters related to the transaction as the Bank
may require;

v. The Borrower shall have delivered to the Bank the stock certificates described in the
Pledge of Securities;

vi. The Borrower shall have delivered to the Bank true, correct and complete copies of (A) its
charter and other organizational documents and the charter and organizational documents of BLC, (B)
evidence of the taking of each action of the Borrower or of any other Person necessary to authorize
the execution, delivery and performance of the Transaction Documents, and (C) a certificate issued
by the Department of State of each respective state of organization, and of each other state where
Borrower and BLC, if any, conduct business, certifying that Borrower and BLC, exist and are in good
standing under the laws of such jurisdiction;

vii. No event shall have occurred which constitutes or which, with the giving of notice or the
lapse of time or both, would constitute an Event of Default;

viii. The Borrower and BLC shall have notified all applicable regulatory agencies, for which
notification is required, with respect to the Credit.

ix. The Borrower shall have delivered to the Bank each additional writing required by any
Transaction Document or deemed necessary or advisable by the Bank at the sole option of the Bank.

b. Conditions Precedent to Subsequent Advances. The obligation of the Bank under
this Agreement to make any advance subsequent to the first advance is subject to the fulfillment of
the following additional conditions to the satisfaction of the Bank or its agents, in their sole
discretion:

i. All of the conditions precedent to the first advance set forth above, shall have been
satisfied as of the date any subsequent advance is requested;

ii. The business and financial condition of the Borrower and its Subsidiaries shall not have
been materially affected in any way.

Acknowledgment. Borrower acknowledges that it has read and understands all the provisions of this
Agreement, including the Governing Law, Jurisdiction and Waiver of Jury Trial, and has been advised
by counsel as necessary or appropriate.

MANUFACTURERS AND TRADERS TRUST COMPANY

By:     (SEAL)

Name:      

Title:      

ACKNOWLEDGMENT

	 	 	 	 	 
	STATE OF MARYLAND
	 	 	)	 
	 
	 	: SS.
	CITY/COUNTY OF
	 	 	)	 
	 
	 	 	 	 

On the      day of June, in the year 2007, before me, the undersigned, a Notary Public in
and for said State, personally appeared      ,
personally known to me or proved to me on the basis of satisfactory evidence to be the
individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me
that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their
signature(s) on the instrument, the individual(s), or the person upon behalf of which the
individual(s) acted, executed the instrument.

     
     

Notary Public

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

1

STERLING FINANCIAL CORPORATION

By:     (SEAL)

Name:      

Title:      

ACKNOWLEDGMENT

COMMONWEALTH OF PENNSYLVANIA)

: SS.

COUNTY OF      )

On the      day of June, in the year 2007, before me, the undersigned, a Notary Public
in and for said Commonwealth, personally appeared
     , personally known to me or proved to me on the
basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the
within instrument and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individual(s) acted, executed the instrument.

     
     

Notary Public

 BANK USE ONLY

2

Authorization

Confirmed:_________________________________________________________________________SCHED

ULE

Additional Representations and Warranties (§2)

None

Additional Affirmative Covenants (§3)

i. Regulatory Actions. Deliver to the Bank no less frequently one time every thirty (30) days
information in the form of the Regulatory Action Grid delivered to the Bank prior to the closing of
the Credit with respect to any regulatory actions arising or in connection with the Borrower or any
Subsidiary.

Permitted Indebtedness (§4(a))

Debt from the Federal Home Loan Bank and the Federal Reserve and the sale and purchase of
Federal Reserve funds in the ordinary course of business.

The junior subordinated debentures as of the date of closing in an aggregate amount equal to
$87,630,000 issued by the Borrower to Sterling Financial Statutory Trust II, Sterling Financial
Statutory Trust III, Sterling Financial Statutory Trust IV, and Sterling Financial Statutory Trust
V (the “Junior Subordinated Debentures”).

The Additional Indebtedness (as defined below).

Permitted Guaranties (§4(b))

The Junior Subordinated Debentures.

The Borrower and BLC shall be permitted to guaranty an additional aggregate amount not to
exceed $15,000,000 solely with respect to indebtedness of Equipment Finance, LLC and/or Town &
Country Leasing, LLC (the “Additional Indebtedness”).

Permitted Liens (§4(c))

Liens related to the collateral securing the Federal Home Loan Bank and the Federal Reserve
loans.

Permitted Investments (§4(d))

(i) Investments permitted by applicable banking laws, regulations or regulatory
pronouncements; and (ii) existing investments in Subsidiaries and new investments in such
Subsidiaries in the ordinary course of its business.

Permitted Loans, including Permitted Sale of Loans (§4(e))

Sale of loans and leases and residential and commercial mortgages in the ordinary course of
business.

Intercompany loans and credit facilities to Equipment Finance, LLC and Town & Country Lease,
LLC in existence as of the date of closing.

3

Additional Negative Covenants (§ 4).

h. Intentionally Deleted.

i. Stock of Subsidiaries. Permit any of its Subsidiaries to issue any additional shares of
their respective capital stock or other equity securities which contain general voting powers, any
options therefore or any securities convertible thereto other than to the Borrower or another
Subsidiary. Neither the Borrower nor any of its Subsidiaries shall sell, transfer or otherwise
dispose of any of the capital stock or other equity securities of a Subsidiary which contain
general voting powers, except (i) to the Borrower or any of its Subsidiaries, (ii) to an officer,
employee or director of the Borrower or any Subsidiary; or (iii) to other persons or entities,
provided that such dispositions do not, singly or in the aggregate, constitute more than 10% of the
total number of shares of capital stock or other equity securities outstanding of such Subsidiary
which contain general voting powers.

j. Nonperforming Assets to Total Loans and Other Real Estate Owned Ratio. Permit its
Nonperforming Assets to Total Loans and Other Real Estate Owned Ratio to be greater than 0.65%. As
used in this Section 5(j), “Nonperforming Assets to Total Loans and Other Real Estate Owned Ratio”
means the ratio of (A) “Nonperforming Assets” to (B) the sum of (i) “Total Loans”, plus (ii) “Other
Real Estate Owned”; “Nonperforming Assets” means the consolidated loans, leases and other assets of
the Borrower that are not accruing interest or are 90 days or more past due in the payment of
principal or interest, plus consolidated “Other Real Estate Owned” by the Borrower; “Total Loans”
means the consolidated principal of loans and leases, made by Borrower to unrelated third parties,
net of unearned income and gross of reserve; and “Other Real Estate Owned” means the book value,
less accumulated depreciation and net of applicable valuation allowances, of all real estate owned
or controlled by the Borrower and its Subsidiaries, other that banking premises used by the
Borrower in its banking business (mortgages and other liens on such property are not deducted from
the book value of such property); in each case as shown on the consolidated financial statements of
Borrower, prepared in accordance with FFIEC requirements.

k. Minimum Loan Loss Reserve Ratio. Permit its Minimum Loan Loss Reserve Ratio to be less than
0.98%. As used in this Section 5(k), “Minimum Loan Loss Reserve Ratio” means the ratio of (i)
“Loan Loss Reserves” to (ii) “Total Loans”; “Loan Loss Reserves” means the loan loss reserves and
allocated transfer risk reserves of the Borrower, as shown on the financial statements of the
Borrower prepared in accordance with FFIEC requirements; and “Total Loans” means the consolidated
principal of loans and leases, made by Borrower to unrelated third parties, net of unearned income
and gross of reserve; in each case as shown on the consolidated financial statements of Borrower,
prepared in accordance with FFIEC requirements.

l. Capital/Leverage Ratios. The minimum ratios required with respect to each of the categories set
forth in the Capital/Leverage Ratio section of the Financial Certificate (as hereinafter defined)
shall be: (i) 8% Total Risk-Based Capital Ratio, (ii) 4% Tier I Risk-Based Capital Ratio and
(iii) 4% Tier I Leverage Ratio. Notwithstanding the foregoing, upon the first fiscal quarter end
that BLC achieves a Total Risk-Based Capital Ratio of 10%, a Total Tier I Risk-Based Capital Ratio
of 6% and a Tier I Leverage Ratio of 5%, the minimum ratios required with respect to each of the
categories set forth in the Capital/Leverage Ratio section of the Financial Certificate shall be:
(i) 10% Total Risk-Based Capital Ratio, (ii) 6% Tier I Risk-Based Capital Ratio and (iii) 5% Tier I
Leverage Ratio for such current fiscal quarter end and all fiscal quarter ends thereafter.

4

Additional Financial Covenants (§5)

b. The Borrower shall deliver to the Bank, as soon as available but no more than twenty-five
(25) days (i) after July 31, 2007 and (ii) thereafter within forty-five (45) days after the end of
each fiscal quarter of the Borrower, a certificate of the chief financial officer of the Borrower
in the form attached hereto as Exhibit A (the “Financial Certificate”), and shall maintain
the minimum or maximum financial ratios, as the case may be, set forth in the Financial Certificate
and Sections 4(j), 4(k) and 4(l) of this Agreement, measured as of July 31, 2007 and thereafter at
the end of each fiscal quarter.

5

EXHIBIT A

STERLING FINANCIAL CORPORATION (SLFI)

REPORT OF CHIEF FINANCIAL OFFICER

SLFI (the Borrower) HEREBY CERTIFIES that:

This Report is furnished pursuant to Section 5(b) of the Credit Agreement dated as of June 26,
2007 (the “Credit Agreement”) between the Borrower and MANUFACTURERS AND TRADERS TRUST COMPANY.
Unless otherwise defined herein, the terms used in this Report have the meanings given to them in
the Credit Agreement or in the Financial Statements (as hereinafter defined).

As required by Section 3(a) of the Credit Agreement, the consolidated financial statements of
the Borrower and its Subsidiaries for the [year/quarter] ended      , 20     (the
“Financial Statements”), prepared in accordance with generally accepted accounting principles
consistently applied or if otherwise required, in accordance with any applicable regulatory
accounting principles, accompany this Report. The Financial Statements present fairly the
consolidated financial position of the Borrower and its Subsidiaries as at the date thereof and the
consolidated results of operations of the Borrower and its Subsidiaries for the period covered
thereby (subject only to normal recurring year-end adjustments which will not in the aggregate be
material in amount).

The figures set forth in Schedule A for determining compliance by the Borrower with the
negative (financial) covenants contained in the Credit Agreement are true and complete as of the
date hereof.

As of the date hereof, Borrower and its consolidated subsidiaries and BLC Bank, N. A. and any
subsidiary bank or banks that may be acquired prior to the Maturity Date have total “Risk-Based
Capital Ratios”, “Tier I Risk Based Capital Ratios” and “Leverage Ratios”, as defined in applicable
FDIC regulations, sufficient to cause each of such entity or consolidated entity to comply with
Section 4 of the Credit Agreement.

The activities of the Borrower and its Subsidiaries during the period covered by the Financial
Statements have been reviewed by me as Borrower’s Chief Financial Officer or by employees or agents
of Borrower under my immediate supervision. Based on such review, to my best knowledge and belief,
and as of the date of this Report, no Default has occurred. *

WITNESS my hand this      day of     20     .

STERLING FINANCIAL CORPORATION

By:     

Chief Financial Officer

*If a default has occurred, this paragraph is to be modified with an appropriate statement as to
the nature thereof, the period of existence thereof and what action the Borrower has taken, is
taking, or proposes to take with respect thereto.

6

SCHEDULE A

NEGATIVE (FINANCIAL) COVENANTS

STERLING FINANCIAL CORPORATION

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Double Leverage Ratio	 	 	 	 	 	 	 	 	 	 	 	 
	MAXIMUM PERMITTED
	 	 	 	 	 	 	1.95	 	 	 	:	 	 	 	1.00	 
	ACTUAL:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(i)
	 	Consolidated equity Investments in	 	$	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Subsidiaries	 	 	 	 	 	 	 	 	 	 	 	 
	(ii)
	 	Consolidated stockholders’ equity	 	$	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	(iii)
	 	line (i) divided by line (ii)	 	 	 	 	 	 	:	 	 	 	1.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Capital/Leverage Ratios

MINIMUM REQUIRED:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Risk-Based Capital Ratio

	 	[7% as of 7/31/07;	 	of 12/31/07
	 
	 	 	 	 	 	8% as	 	 	—	 
	 
	 	 	 	 	 	and thereafter]	 	 	 	 
	Tier I Risk-Based Capital Ratio
	 	 	4	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Tier I Leverage Ratio
	 	 	 	 	 	 	4	%	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTUAL:
	 	 	 	 	 	 	 	 	 	 	 	 
	Total Risk-Based Capital Ratio
	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Tier I Risk-Based Capital Ratio
	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Tier I Leverage Ratio
	 	 	 	 	 	 	%	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

7

	 	 	 	 	 	 	 	 	 	 	 	 	 
	BLC BANK, N.A.
	 	 	 	 	 	 	 	 	 	 	 	 
	Tangible Net Worth
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	MINIMUM PERMITTED
	 	 	 	 	 	See line (c) below	 	 	 	 
	(a)
	 	Consolidated stockholders’ equity at closing	 	$	 	 	 	 	 	 

(b) Capital distributed from SLFI to BLC subsequent

	 	 	 	 	 	 	 	 	 
	 
	 	to closing	 	$	 	 
	(c)
	 	Minimum Tangible Net Worth:  line (a) plus line (b)	 	$	 	 
	ACTUAL:
	 	 	 	 	 	 	 	 
	(i)
	 	Consolidated stockholders’ equity	 	$	 	 
	(ii)
	 	Intangible Assets	 	$	 	 
	(iii)
	 	line (i) minus line (ii)	 	$	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non Performing Assets to Total Loans and OREO	 	 	 	 	 	 	 	 
	MAXIMUM PERMITTED
	 	 	 	 	 	 	0.65:	 	 	 	1.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTUAL:
	 	 	 	 	 	 	 	 	 	 	 	 
	(i)
	 	Non Performing Assets	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(ii)
	 	Total Loans and OREO	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(iii)
	 	line (i) divided by line (ii)	 	 	:	 	 	 	1.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

Allowance for Loan & Lease Losses to Total Loans & Leases

	 	 	 	 	 	 	 	 	 	 	 	 	 
	MAXIMUM PERMITTED
	 	 	 	 	 	 	0.98:	 	 	 	1.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	ACTUAL:
	 	 	 	 	 	 	 	 	 	 	 	 
	(i)
	 	Allowance for Loan & Lease Losses	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	(ii)
	 	Total Loans & Leases	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	(net of unearned income & gross of reserves)	 	 	 	 	 	 	 	 
	(iii)
	 	line (i) divided by line (ii)	 	 	:	 	 	 	1.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

Capital/Leverage Ratios

MINIMUM REQUIRED:

	 	 	 	 	 	 	 	 	 
	Total Risk-Based Capital Ratio
	 	 	 	 	 	8% or 10%*
	 
	 	 	 	 	 	 	 	 
	Tier I Risk-Based Capital Ratio
	 	 	 	 	 	4% or 6%*
	 
	 	 	 	 	 	 	 	 
	Tier I Leverage Ratio
	 	 	 	 	 	4% or 5%*
	 
	 	 	 	 	 	 	 	 
	ACTUAL:
	 	 	 	 	 	 	 	 
	Total Risk-Based Capital Ratio
	 	 	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 
	Tier I Risk-Based Capital Ratio
	 	 	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 
	Tier I Leverage Ratio
	 	 	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 	 

*The minimum required ratios are prescribed under Section 4(l) of this Agreement.

WITNESS my hand this      day of      , 20     .

STERLING FINANCIAL CORPORATION

By:

Chief Financial Officer

8

EXHIBIT B

Litigation and Judgments

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00125-of-00352.parquet"}]]