Credit Agreement (2006)Full Document 

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CREDIT AGREEMENT
among
POLARIS INDUSTRIES INC.
as Borrower,
AND
CERTAIN SUBSIDIARIES OF THE BORROWER
as Guarantors,
AND
THE LENDERS IDENTIFIED HEREIN,
AND
BANK OF AMERICA, N.A.,
as Administrative Agent and Issuing Lender
AND
U.S. BANK N.A.
and
ROYAL BANK OF CANADA
as Syndication Agents
AND
THE BANK OF TOKYO-MITSUBISHI, LTD., CHICAGO BRANCH
as Documentation Agent
DATED AS OF December 4, 2006
BANC OF AMERICA SECURITIES LLC
as Sole Book Manager and Sole Lead Arranger


 

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

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

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8.5
  Consolidation and Merger  

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