Exhibit 10.03

 

EXECUTION COPY

 

SERIES 2005-1 SUPPLEMENT

 

Dated as of June 29, 2005

 

to

 

INDENTURE

 

Dated as of October 16, 2000

 

TRUCK RETAIL INSTALMENT PAPER CORP.

 

as Issuer

 

and

 

THE BANK OF NEW YORK,

 

as Indenture Trustee

 

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TRUCK RETAIL INSTALMENT PAPER CORP.

SERIES 2005-1 NOTES

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TABLE OF CONTENTS

 

ARTICLE I DEFINITIONS

   4

ARTICLE II CREATION OF THE SERIES 2005-1 NOTES

   11

        Section 2.01.

  Designation    11

        Section 2.02.

  Denomination, Form, Book Entry Registration and Transfer Restrictions    12

ARTICLE III PAYMENTS TO SERIES 2005-1 HOLDERS AND ALLOCATION AND APPLICATION OF
FUNDS

   13

        Section 3.01.

  Interest    13

        Section 3.02.

  Principal    13

        Section 3.03.

  Allocations and Application of Funds    13

        Section 3.04.

  Establishment of the Series 2005-1 Accounts    15

ARTICLE IV DISTRIBUTIONS AND REPORTS TO SERIES 2005-1 HOLDERS

   17

        Section 4.01.

  Distributions    17

        Section 4.02.

  Reports and Statements to Series 2005-1 Holders    17

ARTICLE V AMORTIZATION EVENTS

   19

        Section 5.01.

  Additional Amortization Events    19

ARTICLE VI OPTIONAL REDEMPTION, TRANSFER RESTRICTIONS AND CERTAIN TERMS

   20

        Section 6.01.

  Optional Redemption    20

        Section 6.02.

  Transfer Restrictions    21

        Section 6.03.

  Certain Terms Used in Basic Documents    22

ARTICLE VII MISCELLANEOUS PROVISIONS

   23

        Section 7.01.

  Ratification of Agreement    23

        Section 7.02.

  Counterparts    23

        Section 7.03.

  GOVERNING LAW    23

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EXHIBITS

 

Exhibit A-I   Form of Class A Rule 144A Global Note Exhibit A-2   Form of Class
A Regulation S Global Note Exhibit A-3   Form of Euroclear/Clearstream
Certification Exhibit A-4   Form of Regulation S. Certification Exhibit B-1  
Form of Class B Rule 144A Global Note Exhibit B-2   Form of Class B Regulation S
Global Note Exhibit B-3   Form of Euroclear/Clearstream Certification
Exhibit B-4   Form of Regulation S Certification Exhibit C   Form of Monthly
Payment Date Statement Exhibit D   Form of Supplement No. 3 to Indenture
Schedule 1   Series 2005-1 Accounts

 

3

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THIS SERIES SUPPLEMENT, dated as of June 29, 2005 (as amended, supplemented or
otherwise modified, this “Series Supplement”) to the Indenture dated as of
October 16, 2000 (as amended, supplemented or otherwise modified, the
“Indenture”), between TRUCK RETAIL INSTALMENT PAPER CORP., a Delaware
corporation (the “Issuer”) and THE BANK OF NEW YORK, a New York banking
corporation, as Indenture Trustee (as indenture trustee and not in its
individual capacity, the “Indenture Trustee”).

 

Section 2.1 of the Indenture provides that the Issuer may from time to time
issue one or more new Series of Notes. The principal terms of any new Series of
Notes are to be set forth in a Series Supplement. Pursuant to this Series
Supplement, the Issuer and the Indenture Trustee shall create the Series 2005-1
Notes and specify the principal terms thereof. The Servicer is acknowledging
this Series Supplement and agrees to comply with the terms hereof applicable to
the Servicer.

 

ARTICLE I

DEFINITIONS

 

(a) Capitalized terms not otherwise defined herein shall have the respective
meanings assigned them in Part I of Appendix A to the Indenture. Whenever used
in this Series Supplement, the following words shall have the following
meanings:

 

“Aged Pool Period” shall mean a period of time beginning on any date when in
excess of 25% of the Issuer Receivables (measured by Pool Balance) as of such
date is represented by Receivables which have been Issuer Receivables for at
least seven continuous months and ending on the first Sale Date thereafter on
which the Issuer sells in excess of 50% of the Issuer Receivables (measured by
Pool Balance).

 

“Aggregate Issuer Net Losses” shall mean, with respect to a Monthly Period, the
result of (i) the aggregate Contract Values of all Issuer Receivables newly
designated during such Monthly Period as Liquidating Receivables minus (ii)
Liquidation Proceeds collected during such Monthly Period with respect to all
Liquidating Receivables which were Issuer Receivables during such Monthly
Period.

 

“Amendment Effective Date” shall mean the date on which the Series 2000-1 Notes
have been redeemed in full and are no longer outstanding.

 

“Class A Holder” shall mean a Holder of a Class A Note.

 

“Class A Interest Distributable Amount” shall mean, with respect to any Payment
Date, the sum of (1) the product of (A) the sum of (i) the outstanding principal
balance of the Class A Notes on the preceding Payment Date after giving effect
to all payments of principal in respect of the Class A Notes on such preceding
Payment Date (or, in the case of the Initial Payment Date, the outstanding
principal balance on the Series Issuance Date for the Series 2005-1 Notes) and
(ii) the aggregate amount of accrued and unpaid interest owed with respect to
the Class A Notes as of the preceding Payment Date and (B) the product of the
Class A Note Rate for the related Payment Period and a fraction, the numerator
of which is the actual number of days in such Payment Period and the denominator
of which is 360 and (2) the excess of the Class A Interest Distributable Amount
for the prior Payment Date over the amount that was actually deposited in the
Series 2005-1 Note Distribution Account on the Business Day preceding such
Payment Date in respect of interest on the Class A Notes.

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“Class A Note” shall have the meaning given to such term in Section 2.01 hereof.

 

“Class A Note Rate” shall mean (i) with respect to the initial Payment Period,
3.59563%, (ii) with respect to any Payment Period thereafter which begins before
the Targeted Final Payment Date for the Series 2005-1 Notes, One-Month LIBOR for
such Payment Period plus 0.27% and (iii) with respect to any Payment Period
which begins on or after the Targeted Final Payment Date for the Series 2005-1
Notes, One-Month LIBOR for such Payment Period plus 0.54%.

 

“Class B Holder” shall mean a Holder of a Class B Note.

 

“Class B Interest Distributable Amount” shall mean, with respect to any Payment
Date, the sum of (1) the product of (A) the sum of (i) the outstanding principal
balance of the Class B Notes on the preceding Payment Date after giving effect
to all payments of principal in respect of the Class B Notes on such preceding
Payment Date (or, in the case of the Initial Payment Date, the outstanding
principal balance on the Series Issuance Date for the Series 2005-1 Notes) and
(ii) the aggregate amount of accrued and unpaid interest owed with respect to
the Class B Notes as of the preceding Payment Date and (B) the product of the
Class B Note Rate for the related Payment Period and a fraction, the numerator
of which is the actual number of days in such Payment Period and the denominator
of which is 360 and (2) the excess of the Class B Interest Distributable Amount
for the prior Payment Date over the amount that was actually deposited in the
Series 2005-1 Note Distribution Account on the Business Day preceding such
Payment Date in respect of interest on the Class B Notes.

 

“Class B Note” shall have the meaning given to such term in Section 2.01 hereof.

 

“Class B Note Rate” shall mean (i) with respect to the initial Payment Period,
3.82563%, (ii) with respect to any Payment Period thereafter which begins before
the Targeted Final Payment Date for the Series 2005-1 Notes, One-Month LIBOR for
such Payment Period plus 0.50% and (iii) with respect to any Payment Period
which begins on or after the Targeted Final Payment Date for the Series 2005-1
Notes, One-Month LIBOR for such Payment Period plus 1.00%.

 

“Combined Three-Month Net Loss Percentage” shall mean, for any Reference Date,
the percentage equivalent of a fraction, the numerator of which is equal to
Combined Three-Month Net Losses for that Reference Date and the denominator of
which is equal to Three-Month Liquidations for the Monthly Period ending on such
Reference Date minus Combined Three-Month Net Losses for that Reference Date.

 

“Combined Three-Month Net Losses” shall mean, for any Reference Date, for all
Receivables in the Navistar Serviced Portfolio written off during the Monthly
Period ending on such Reference Date and the two Monthly Periods preceding such
Monthly Period, the sum of (A) the unpaid principal plus accrued and unpaid
interest on such Receivables at the time of repossession of the truck(s),
bus(es) or trailer(s) securing all such written off Receivables, net of all
recoveries with respect to such Receivables and (B) the net losses of
International (determined on the basis of International’s normal practices) on
the Navistar Serviced Portfolio.

 

5

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“Combined Twelve-Month Net Loss Percentage” shall mean for any Reference Date,
the percentage equivalent of a fraction, the numerator of which is equal to
Combined Twelve-Month Net Losses for that Reference Date and the denominator of
which is equal to Twelve-Month Liquidations for the Monthly Period ending on
such Reference Date minus Combined Twelve-Month Net Losses for that Reference
Date.

 

“Combined Twelve-Month Net Losses” shall mean, for any Reference Date, for all
Receivables in the Navistar Serviced Portfolio written off during the Monthly
Period ending on such Reference Date and the eleven Monthly Periods preceding
such Monthly Period, the sum of (A) the unpaid principal plus accrued and unpaid
interest at the time of repossession of the truck(s), bus(es) or trailer(s)
securing all such written off Receivables, net of all recoveries with respect to
such Receivables and (B) the net losses of International (determined on the
basis of International’s normal practices) on the Navistar Serviced Portfolio.

 

“Distribution Compliance Period” shall have the meaning set forth in Section
6.02.

 

“Exchange Date” shall have the meaning set forth in Section 2.02(e).

 

“Initial Payment Date” shall mean July 15, 2005.

 

“Issuer Delinquency Percentage” shall mean, with respect to a Monthly Period,
the aggregate Contract Value of all Issuer Receivables which are 60 days or more
past due as of the last day of such Monthly Period, as determined in accordance
with the Servicer’s normal practices, expressed as a percentage of the aggregate
Contract Value of all Issuer Receivables as of the last day of such Monthly
Period.

 

“Issuer Net Loss Percentage” shall mean, with respect to a date of
determination, the product (expressed as a percentage) of (A) twelve and (B) a
fraction, the numerator of which is equal to the sum of the Aggregate Issuer Net
Losses plus Liquidation Proceeds for each of the Monthly Periods which are the
sixth, fifth and fourth Monthly Periods preceding the Monthly Period in which
such determination date occurs, minus the sum of the Liquidation Proceeds for
the Monthly Periods which are the second, third and fourth Monthly Periods
preceding the Monthly Period in which such determination date occurs, and the
denominator of which is the sum of the Contract Value of all Receivables owned
directly or indirectly by the Issuer as of the last day of each of the seventh,
sixth and fifth Monthly Periods preceding the Monthly Period in which such
determination date occurs.

 

“NSP Delinquency Percentage” shall mean, with respect to a Monthly Period, the
aggregate Contract Value of all Receivables in the Navistar Serviced Portfolio
which are 61 days or more past due as of the last day of such Monthly Period, as
determined in accordance with the Servicer’s normal practices, expressed as a
percentage of the aggregate Contract Value of all Receivables in the Navistar
Serviced Portfolio as of the last day of such Monthly Period.

 

6

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“Purchase Agreement” shall mean the Purchase Agreement, dated June 16, 2005, by
and among Navistar Financial, the Issuer and J.P. Morgan Securities Inc., as
representative of the several initial purchasers.

 

“Redemption Price” shall have the meaning set forth in Section 6.01 hereof.

 

“Required Floor Percentage” means as of any Reference Date the percentage set
forth in the following chart under the column headed “Required Floor Percentage”
in the highest category (category 1 being the lowest and category 9 being the
highest) into which one or more of the Combined Three-Month Net Loss Percentage,
the Three-Month Delinquency Percentage and the Combined Twelve-Month Net Loss
Percentage fell as of the Reference Date with respect to the most recent
Calculation Date:

 

(A) if occurring before the Amendment Effective Date:

 

Category

--------------------------------------------------------------------------------

  

Combined

Three-Month Net

Loss Percentage

--------------------------------------------------------------------------------

   Three-Month
Delinquency
Percentage

--------------------------------------------------------------------------------

  Combined
Twelve-Month
Net Loss
Percentage

--------------------------------------------------------------------------------

  Required Floor
Percentage

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1.

   < or = 3.500%    < or = 2.000%   < or = 3.000%   4.00 %

2.

   3.501% to 4.250%    2.001% to 2.500%   3.001% to 3.500%   4.00 %

3.

   4.251% to 5.000%    2.501% to 3.000%   3.501% to 4.000%   5.00 %

4.

   5.001% to 5.750%    3.001% to 3.500%   4.001% to 4.500%   6.00 %

5.

   5.751% to 6.500%    3.501% to 4.000%   4.501% to 5.000%   7.00 %

6.

   6.501% to 7.250%    4.001% to 4.500%   5.001% to 5.500%   8.00 %

7.

   7.251% to 8.000%    4.501% to 5.000%   5.501% to 6.000%   9.00 %

8.

   8.001% to 8.750%    5.001% to 5.500%   6.001% to 6.500%   10.00 %

9.

   = or > 8.751%    = or > 5.501%   = or > 6.501%   11.00 %

 

or (B) if occurring on or after the Amendment Effective Date:

 

Category

--------------------------------------------------------------------------------

   Combined
Three-Month Net
Loss Percentage

--------------------------------------------------------------------------------

  Three-Month
Delinquency
Percentage

--------------------------------------------------------------------------------

  Combined
Twelve-Month
Net Loss
Percentage

--------------------------------------------------------------------------------

  Required Floor
Percentage

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1.

   < or = 3.000%   < or = 1.000%   < or = 2.000%   4.00 %

2.

   3.001% - 3.250%   1.001% - 1.500%   2.001% - 2.500%   4.00 %

3.

   3.251% - 3.500%   1.501% - 2.000%   2.501% - 3.000%   4.00 %

4.

   3.501% - 4.250%   2.001% - 2.500%   3.001% - 3.500%   4.00 %

5.

   4.251% - 5.000%   2.501% - 3.000%   3.501% - 4.000%   5.00 %

6.

   5.001% - 5.750%   3.001% - 3.500%   4.001% - 4.500%   6.00 %

7.

   5.751% - 6.500%   3.501% - 4.000%   4.501% - 5.000%   7.00 %

8.

   6.501% - 7.250%   4.001% - 4.500%   5.001% - 5.500%   8.00 %

9.

   7.251% - 8.000%   4.501% - 5.000%   5.501% - 6.000%   9.00 %

10.

   8.001% - 8.750%   5.001% - 5.500%   6.001% - 6.500%   10.00 %

11.

   = or > 8.751%   = or > 5.501%   = or > 6.501%   11.00 %

 

7

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“Required Reserve Percentage” means as of any Reference Date the percentage set
forth in the following chart under the column headed “Required Reserve
Percentage” in the highest category (category 1 being the lowest and category 9
being the highest) into which one or more of the Combined Three-Month Net Loss
Percentage, the Three-Month Delinquency Percentage and the Combined Twelve-Month
Net Loss Percentage fell as of the Reference Date with respect to the most
recent Calculation Date:

 

(A) if occurring before the Amendment Effective Date:

 

Category

--------------------------------------------------------------------------------

   Combined
Three-Month Net
Loss Percentage

--------------------------------------------------------------------------------

  Three-Month
Delinquency
Percentage

--------------------------------------------------------------------------------

  Combined
Twelve-Month
Net Loss
Percentage

--------------------------------------------------------------------------------

  Required
Reserve
Percentage

--------------------------------------------------------------------------------

 

1.

   < or = 3.500%   < or = 2.000%   < or = 3.000%   7.00 %

2.

   3.501% to 4.250%   2.001% to 2.500%   3.001% to 3.500%   10.00 %

3.

   4.251% to 5.000%   2.501% to 3.000%   3.501% to 4.000%   13.00 %

4.

   5.001% to 5.750%   3.001% to 3.500%   4.001% to 4.500%   16.00 %

5.

   5.751% to 6.500%   3.501% to 4.000%   4.501% to 5.000%   19.00 %

6.

   6.501% to 7.250%   4.001% to 4.500%   5.001% to 5.500%   22.00 %

7.

   7.251% to 8.000%   4.501% to 5.000%   5.501% to 6.000%   25.00 %

8.

   8.001% to 8.750%   5.001% to 5.500%   6.001% to 6.500%   28.00 %

9.

   = or > 8.751%   = or > 5.501%   = or > 6.501%   31.00 %

 

or (B) if occurring on or after the Amendment Effective Date:

 

Category

--------------------------------------------------------------------------------

   Combined
Three-Month Net
Loss Percentage

--------------------------------------------------------------------------------

  Three-Month
Delinquency
Percentage

--------------------------------------------------------------------------------

  Combined
Twelve-Month Net
Loss Percentage

--------------------------------------------------------------------------------

  Required
Reserve
Percentage

--------------------------------------------------------------------------------

 

1.

   < or = 3.000%   < or = 1.000%   < or = 2.000%   5.50 %

2.

   3.001% - 3.250%   1.001% - 1.500%   2.001% - 2.500%   6.50 %

3.

   3.251% - 3.500%   1.501% - 2.000%   2.501% - 3.000%   7.00 %

4.

   3.501% - 4.250%   2.001% - 2.500%   3.001% - 3.500%   10.00 %

5.

   4.251% - 5.000%   2.501% - 3.000%   3.501% - 4.000%   13.00 %

6.

   5.001% - 5.750%   3.001% - 3.500%   4.001% - 4.500%   16.00 %

7.

   5.751% - 6.500%   3.501% - 4.000%   4.501% - 5.000%   19.00 %

8.

   6.501% - 7.250%   4.001% - 4.500%   5.001% - 5.500%   22.00 %

9.

   7.251% - 8.000%   4.501% - 5.000%   5.501% - 6.000%   25.00 %

10.

   8.001% - 8.750%   5.001% - 5.500%   6.001% - 6.500%   28.00 %

11.

   = or > 8.751%   = or > 5.501%   = or > 6.501%   31.00 %

 

“Reserve Account Trigger Event” will occur if, as of the date of determination
thereof, an Aged Pool Period is in effect on such date and (i) the Issuer Net
Loss Percentage as of the most recent Reference Date for which the data used to
determine such percentage is available and has been distributed to the Series
2005-1 Holders exceeds 1.5% or (ii) the average of the Issuer Delinquency
Percentages for the three most recent Monthly Periods for which the data used to
determine such percentages is available and has been distributed to the Series
2005-1 Holders exceeds 2.0%.

 

8

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“Reserve Accounts” shall mean the Series 2005-1 Interest Reserve Account and the
Series 2005-1 Loss Reserve Account.

 

“Series 2005-1 EFA Deposit Amount” shall mean, with respect to any Payment Date,
the excess, if any, of the aggregate outstanding principal balance of the Series
2005-1 Notes as of the related Reference Date over the product of (i) the Series
Allocation Percentage for the Series 2005-1 Notes as of such Payment Date and
(ii) the Borrowing Base as of such Payment Date.

 

“Series 2005-1 Holders” shall mean the Holders of the Series 2005-1 Notes.

 

“Series 2005-1 Interest Reserve Account” shall have the meaning set forth in
Section 3.04(c).

 

“Series 2005-1 Interest Reserve Deposit Amount” shall mean, with respect to any
Payment Date, the excess, if any, of the Series 2005-1 Interest Reserve
Specified Balance for such Payment Date over the amount on deposit in the Series
2005-1 Interest Reserve Account at the close of business on the day preceding
such Payment Date.

 

“Series 2005-1 Interest Reserve Specified Balance” shall mean, as of any date of
determination during a Payment Period, the product of (a) 0.25% plus the
Weighted Average Interest Rate for such payment period minus One-Month LIBOR for
such Payment Period and (b) the outstanding principal balance of the Series
2005-1 Notes.

 

“Series 2005-1 Interest Reserve Withdrawal Amount” shall mean (1) for any
Payment Date prior to the Series 2005-1 Principal Payment Commencement Date, the
sum of (A) (i) the product of (a) the Class A Interest Distributable Amount with
respect to such Payment Date plus the Class B Interest Distributable Amount with
respect to such Payment Date and (b) the Weighted Average Excess Funding Account
Balance for the related Monthly Period divided by the Weighted Average Notes
Principal Balance for such Monthly Period minus (ii) the product of (a) Weighted
Average Series Allocation Percentage for such Monthly Period and (b) investment
earnings on the Excess Funding Account for such Monthly Period and (B) the
excess, if any, of (a) the amount on deposit in the Series 2005-1 Interest
Reserve Account as of such Payment Date over (b) the Series 2005-1 Interest
Reserve Specified Balance as of such Payment Date less the amount specified in
clause (A) of this definition for such Payment Date; provided that the Series
2005-1 Interest Reserve Withdrawal Amount may not be less than zero, and (2) for
any Payment Date on or after the Series 2005-1 Principal Payment Date, the
balance of the Series 2005-1 Interest Reserve Account.

 

“Series 2005-1 Loss Reserve Account” shall have the meaning set forth in Section
3.04(b).

 

“Series 2005-1 Loss Reserve Deposit Amount” shall mean, with respect to any
Payment Date, the excess, if any of the Series 2005-1 Loss Reserve Specified
Balance as of such Payment Date over the amount on deposit in the Series 2005-1
Loss Reserve Account at the close of business on the day preceding such Payment
Date.

 

9

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“Series 2005-1 Loss Reserve Specified Balance” means, as of any date of
determination, the lesser of (i) the Series Aggregate Discounted Asset Balance
with respect to the Series 2005-1 Notes on such date and (ii) the greater of (A)
the product of (1) the Required Reserve Percentage as of the most recent
Reference Date for which the data used to determine such percentage is available
and has been distributed to the Series 2005-1 Holders and (2) such Series
Aggregate Discounted Asset Balance, and (B) the product of (1) the Required
Floor Percentage as of the most recent Reference Date for which the data used to
determine such percentage is available and has been distributed to the Series
2005-1 Holders and (2) the highest Series Aggregate Discounted Asset Balance
with respect to the Series 2005-1 Notes since the date of the most recent sale
of Receivables by the Issuer; provided, however, that if a Reserve Account
Trigger Event has occurred and is continuing on such date, each percentage in
clauses (ii)(A)(1) and (ii)(B)(1) above shall equal the sum of 3.00% and such
percentage.

 

“Series 2000-1 Notes” shall mean the Series 2000-1 Floating Rate Asset Backed
Notes issued by the Issuer pursuant to the Indenture and the Series 2000-1
Supplement, dated as of October 16, 2000, between the Issuer and the Indenture
Trustee.

 

“Series 2005-1 Notes” shall have the meaning set forth in Section 2.01(a)
hereof.

 

“Series 2005-1 Note Distribution Account” shall have the meaning set forth in
Section 3.04(a) hereof.

 

“Series 2005-1 Principal Payment Commencement Date” shall mean the earlier of
the Targeted Final Payment Date for the Series 2005-1 Notes and the Amortization
Date, if any.

 

“Three-Month Delinquency Percentage” shall mean, with respect to any Reference
Date, the average of the NSP Delinquency Percentages for the Monthly Period
ending on such Reference Date and the two preceding Monthly Periods.

 

“Three-Month Liquidations” shall mean, for any Reference Date, the Gross Balance
of all Receivables in the Navistar Serviced Portfolio outstanding on the date
that is two Monthly Periods preceding the beginning of that Monthly Period plus
the Gross Balance of all Receivables added to the Navistar Serviced Portfolio
during that Monthly Period and the two Monthly Periods preceding the beginning
of that Monthly Period minus the Gross Balance of all Receivables in the
Navistar Serviced Portfolio outstanding at the end of such Monthly Period.

 

“Twelve-Month Liquidations” shall mean for any Monthly Period, the Gross Balance
of all Receivables in the Navistar Serviced Portfolio outstanding on the date
that is eleven Monthly Periods preceding the beginning of that Monthly Period
plus the Gross Balance of all Receivables added to the Navistar Serviced
Portfolio during that Monthly Period and the eleven Monthly Periods preceding
the beginning of that Monthly Period minus the Gross Balance of all Receivables
in the Navistar Serviced Portfolio outstanding at the end of that Monthly
Period.

 

10

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“U.S. Person” shall have the meaning set forth in Rule 902 under the Securities
Act.

 

“Weighted Average Class Percentage” shall mean, for any Payment Period with
respect to the Class A Notes or the Class B Notes, the aggregate outstanding
principal balance of such class on the first day of the Payment Period divided
by the aggregate outstanding principal balance of the Series 2005-1 Notes on the
first day of the Payment Period, after giving effect to any payment to be made
to the Series 2005-1 Holders on such date.

 

“Weighted Average EFA Balance” shall mean, for any Monthly Period, the result of
(i) the sum of the balance in the Excess Funding Account at the close of
business on each Business Day during such Monthly Period divided by (ii) the
actual number of Business Days during such Monthly Period.

 

“Weighted Average Interest Rate” shall mean, for any Payment Period, a fraction
expressed as a percentage equal to the sum of (i) the Class A Note Rate in
effect for such Payment Period multiplied by the Weighted Average Class
Percentage for the Class A Notes for such Payment Period and (ii) the Class B
Note Rate in effect for such Payment Period multiplied by the Weighted Average
Class Percentage for the Class B Notes for such Payment Period.

 

“Weighted Average Notes Principal Balance” shall mean, for any Monthly Period,
the result of (i) the sum of the aggregate outstanding principal balance of all
outstanding Notes at the close of business on each Business Day during such
Monthly Period divided by (ii) the actual number of Business Days during such
Monthly Period.

 

“Weighted Average Series Allocation Percentage” shall mean, for any Monthly
Period, the result of (i) the sum of the Series Allocation Percentage for the
Series 2005-1 Notes at the close of business on each Business Day during such
Monthly Period divided by (ii) the actual number of Business Days during such
Monthly Period.

 

(b) The rules of construction set forth in Part II of Appendix A to the
Indenture shall be applicable to this Series Supplement. References to any
Article, Section or Exhibit are references to Articles, Sections and Exhibits in
or to this Series Supplement unless otherwise specified.

 

ARTICLE II

CREATION OF THE SERIES 2005-1 NOTES

 

Section 2.01. Designation.

 

(a) There is hereby created a Series of Notes to be issued pursuant to the
Indenture and this Series Supplement to be known as the “Series 2005-1 Floating
Rate Asset Backed Notes.” Such Series shall be comprised of two classes: the
Series 2005-1 Floating Rate Asset Backed Notes, Class A (the “Class A Notes”)
and the Series 2005-1 Floating Rate Asset Backed Notes, Class B (the “Class B
Notes” and, together with the Class A Notes, the “Series 2005-1 Notes”).

 

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(b) In the event that any term or provision contained herein shall conflict with
or be inconsistent with any term or provision contained in the Indenture, the
terms and provisions of this Series Supplement shall govern.

 

(c) The Issuer shall issue and the Indenture Trustee shall authenticate and
deliver to the Issuer the Class A Notes, in the form of Notes as described in
Section 2.02 hereto, in the initial aggregate principal amount of $477,000,000
and the Class B Notes, in the form of Notes as described in Section 2.02 hereto,
in the initial aggregate principal amount of $23,000,000.

 

Section 2.02. Denomination, Form, Book Entry Registration and Transfer
Restrictions.

 

(a) The Series 2005-1 Notes shall be issued in minimum denominations of $100,000
and integral multiples of $l,000 in excess thereof.

 

(b) Upon original issuance, the Series 2005-1 Notes shall be issued as Book
Entry Notes in the form of typewritten Global Notes (“Global Notes”).

 

(c) The Global Notes in substantially the form set forth in Exhibits A-1 and
B-1, respectively, shall represent the Class A Notes and Class B Notes,
respectively, which have been issued and sold to the initial purchasers pursuant
to the Purchase Agreement and initially resold in reliance upon the exemption
from registration under the Securities Act provided by Rule l44A under the
Securities Act (the “Rule l44A Global Note”).

 

(d) The Global Notes in substantially the forms set forth in Exhibits A-2 and
B-2, respectively, shall initially represent the Class A Notes and the Class B
Notes, respectively, which have been initially sold to non-U.S. Persons in
reliance on the exemption from registration under the Securities Act provided by
Regulation S (the “Temporary Regulation S Global Notes”). The Temporary
Regulation S Global Notes will not be exchangeable for Definitive Notes in any
circumstances.

 

(e) Interests in the Temporary Regulation S Global Notes may be exchanged in
accordance with the terms thereof for interests in the Permanent Regulation S
Global Notes not earlier than the day following the last day of the Distribution
Compliance Period (the “Exchange Date”). Such exchange shall be made only upon
certification as to non-U.S. beneficial ownership.

 

(f) On or before the Exchange Date, the Indenture Trustee will execute one or
more Global Notes (the “Permanent Regulation S Global Notes”) to be issued and
delivered in exchange for all or part of the interests in the Temporary
Regulation S Global Notes upon presentation to the Indenture Trustee through the
Clearing Agency by Euroclear Bank S.A./N.V. and Clearstream Banking, société
anonyme, Luxembourg of a certification of non-U.S. beneficial ownership,
substantially in the form attached to the Temporary Regulation S Global Note.

 

(g) Each of the Global Notes will be in fully registered form, without interest
coupons attached. Each of the Global Notes will be registered on the Note
Register in the name of the Clearing Agency.

 

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ARTICLE III

PAYMENTS TO SERIES 2005-1 HOLDERS AND

ALLOCATION AND APPLICATION OF FUNDS

 

Section 3.01. Interest. Interest on the Series 2005-1 Notes shall accrue during
each Payment Period on the outstanding principal balance of the Series 2005-1
Notes at the Class A Note Rate or the Class B Note Rate, as applicable, in
effect for such Payment Period calculated on the basis of a 360-day year and the
actual number of days elapsed during such Payment Period (or, in the case of the
Initial Payment Date, from the Series Issuance Date for the Series 2005-1 Notes
to the end of such Payment Period). Accrued interest shall be due and payable to
the Class A Holders in respect of the Class A Notes on each Payment Date and
shall be paid from the deposits to the Series 2005-1 Note Distribution Account
in respect of the payment of interest on the Class A Notes pursuant to Section
3.03. Accrued interest shall be due and payable to the Class B Holders in
respect of the Class B Notes on each Payment Date and shall be paid in the
amount of and from the deposits to the Series 2005-1 Note Distribution Account
in respect of the payment of interest on the Class B Notes pursuant to Section
3.03. No interest shall be payable on the Class A Notes or the Class B Notes
from and after such time as the outstanding principal balance of such Class A
Notes or Class B Notes, as applicable, has been reduced to zero.

 

Section 3.02. Principal. Other than after the occurrence of an Event of Default
and acceleration of the Series 2005-1 Notes in accordance with Section 5.2(a) of
the Indenture, the principal of each class of the Series 2005-1 Notes shall be
due and payable in full on the Stated Final Maturity Date for the Series 2005-1
Notes and, to the extent of funds available therefor, on each Payment Date
occurring on and after the Series 2005-1 Principal Payment Commencement Date
from funds deposited in the Series 2005-1 Note Distribution Account in the
amounts and in accordance with the priorities set forth in Section 3.03 until
the outstanding principal balance of the Series 2005-1 Notes has been reduced to
zero. Payments to the Holders of the Class A Notes or the Class B Notes in
respect of principal shall reduce the outstanding principal balance of the Class
A Notes or the Class B Notes, as applicable.

 

Section 3.03. Allocations and Application of Funds.

 

(a) All funds and amounts allocated to the Series 2005-1 Notes pursuant to the
Indenture, including Section 8.2(i) thereof, this Series Supplement and any
other Basic Document shall be allocated and applied as set forth in this Section
3.03.

 

(b) On the Business Day immediately preceding the initial Payment Date occurring
on or after the Series 2005-1 Principal Payment Commencement Date, the Servicer
shall instruct the Indenture Trustee in writing to withdraw on that date (i) an
amount equal to the EFA Allocable Amount with respect to the Series 2005-1 Notes
for such Payment Date from the Excess Funding Account, to the extent of funds
available therefor and (ii) an amount equal to the Series 2005-1 Interest
Reserve Withdrawal Amount from the Series 2005-1 Interest Reserve Account, and
deposit such amount in the Series 2005-1 Note Distribution Account in respect of
the payment of principal on the Series 2005-1 Notes; provided that any amounts
to be deposited therein in excess of the aggregate outstanding principal amount
of the Series 2005-1 Notes shall instead be applied in accordance with Section
3.03(c).

 

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(c) On the Business Day immediately preceding each Payment Date, the Servicer
shall instruct the Indenture Trustee in writing to withdraw on that date (i) an
amount equal to the Series Allocable Amount for the Series 2005-1 Notes for the
related Payment Date from the Collection Account and (ii) an amount equal to the
Series 2005-1 Interest Reserve Withdrawal Amount for such Payment Date from the
Series 2005-1 Interest Reserve Account, in each case to the extent of funds
available therefor, and apply the sum of such amounts on that date in the
following order of priority (and only to the extent of funds remaining after all
prior applications) to the following accounts:

 

  (1) first, the Class A Interest Distributable Amount with respect to such
Payment Date shall be deposited in the Series 2005-1 Note Distribution Account
in respect of the payment of interest on the Class A Notes;

 

  (2) second, the Class B Interest Distributable Amount with respect to such
Payment Date shall be deposited in the Series 2005-1 Note Distribution Account
in respect of the payment of interest on the Class B Notes;

 

  (3) third, if such Payment Date will occur before the Series 2005-1 Principal
Payment Commencement Date, the Series 2005-1 EFA Deposit Amount with respect to
such Payment Date shall be deposited in the Excess Funding Account;

 

  (4) fourth, if such Payment Date will occur on or after the Series 2005-1
Principal Payment Commencement Date, the excess of the outstanding principal
balance of the Series 2005-1 Notes over any deposits made or to be made to the
Series 2005-1 Note Distribution Account pursuant to Section 3.03(b) on such
Business Day shall be deposited in the Series 2005-1 Note Distribution Account
in respect of the payment of principal on the Series 2005-1 Notes;

 

  (5) fifth, if such Payment Date will occur before the Series 2005-1 Principal
Payment Commencement Date, the Series 2005-1 Interest Reserve Deposit Amount
with respect to such Payment Date shall be deposited in the Series 2005-1
Interest Reserve Account;

 

  (6) sixth, if such Payment Date will occur before the Series 2005-1 Principal
Payment Commencement Date, the Series 2005-1 Loss Reserve Deposit Amount with
respect to such Payment Date shall be deposited in the Series 2005-1 Loss
Reserve Account;

 

  (7) seventh, any remaining amounts will be deemed “Excess Collections” for
purposes of the Indenture and shall be applied to make payments on other Series
as provided in Section 8.2(f) of the Indenture; and

 

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  (8) eighth, any remaining amounts shall be paid to or at the direction of the
Issuer.

 

If the amounts made available to make the deposits and payments described in the
preceding clauses (1), (2), (3) or (4) on the Business Day immediately preceding
any Payment Date are insufficient for such purposes, the Servicer shall instruct
the Indenture Trustee in writing to withdraw funds from the Series 2005-1 Loss
Reserve Account, to the extent of the funds available therein, and apply such
funds in the priority set forth above (but only on such Business Day to the
extent necessary to make the deposits or payments specified in such clauses (1),
(2), (3) and (4). If, after the application of the funds as provided in clauses
(1) through (7) above, the funds on deposit in the Series 2005-1 Loss Reserve
Account exceed the Series 2005-1 Loss Reserve Specified Balance or the funds on
deposit in the Series 2005-1 Interest Reserve Account exceed the Series 2005-1
Interest Reserve Specified Balance, then the Servicer shall instruct the
Indenture Trustee in writing to withdraw the amount of such excess from the
Series 2005-1 Loss Reserve Account or the Series 2005-1 Interest Reserve
Account, as applicable, for payment to or at the direction of the Issuer.

 

If the amounts available to make the deposits and payments described in the
preceding clauses (1) through (7) and the application of funds available in the
Series 2005-1 Loss Reserve Account in the preceding paragraph are insufficient
for such purposes, the amount of the shortfall in such deposits and payments
shall be the Series Shortfall for the Series 2005-1 Notes and any Excess
Collections allocable to the Series 2005-1 Notes pursuant to Section 8.2(e) of
the Indenture shall be applied to reduce such Series Shortfall by the Indenture
Trustee in the priority set forth above.

 

If the Series 2005-1 Notes have been accelerated or declared immediately due and
payable as provided in Section 5.2 of the Indenture following the occurrence of
an Event of Default specified in Section 5.1(a) or (b) of the Indenture, until
such time as all outstanding principal and interest on the Class A Notes has
been paid in full, any amounts deposited in the Series 2005-1 Note Distribution
Account shall be distributed to the Series 2005-1 Holders in the following
priority: (1) to the Class A Holders for the payment of interest and then
principal on the Class A Notes and (2) to the Class B Holders for the payment of
interest and then principal on the Class B Notes.

 

Notwithstanding anything to the contrary herein, in no event shall any amount be
deposited in the Series 2005-1 Note Distribution Account with respect to
principal in respect of the Class B Notes until all principal and interest
payable in respect of the Class A Notes has been deposited in the Series 2005-1
Note Distribution Account for payment to the Class A Holders on the related
Payment Date and any such deposits to be made in respect of principal of the
Class B Notes shall instead be made in respect of the payment of interest and
principal on the Class A Notes.

 

Section 3.04. Establishment of the Series 2005-1 Accounts.

 

(a) The Servicer, for the benefit of the Series 2005-1 Holders, shall cause to
be established and maintained in the name of the Indenture Trustee an Eligible
Deposit Account (the “Series 2005-1 Note Distribution Account”) which shall be
identified as the “Series 2005-1 Note Distribution Account for Truck Retail
Instalment Paper Corp.” and shall bear a designation

 

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clearly indicating that the funds deposited therein are held for the benefit of
the Series 2005-1 Holders. After the Series Issuance Date for the Series 2005-1
Notes, deposits to and withdrawals from the Series 2005-1 Note Distribution
Account shall be made as provided in the Indenture and this Series Supplement.

 

(b) The Servicer, for the benefit of the Series 2005-1 Holders, shall cause to
be established and maintained in the name of the Indenture Trustee, an Eligible
Deposit Account (the “Series 2005-1 Loss Reserve Account”) which shall be
identified as the “Series 2005-1 Loss Reserve Account for Truck Retail
Instalment Paper Corp.” and shall bear a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2005-1 Holders.
On or before the Series Issuance Date for the Series 2005-1 Notes, the Issuer
shall cause to be deposited in the Series 2005-1 Loss Reserve Account an amount
of cash or Eligible Investments equal to the Series 2005-1 Loss Reserve
Specified Balance as of the Series Issuance Date for the Series 2005-1 Notes.
If, on the Series Issuance Date for the Series 2005-1 Notes or on any Purchase
Date or Sale Date, after giving effect to all transactions on such date, the
amount of funds in the Series 2005-1 Loss Reserve Account exceeds the Series
2005-1 Loss Reserve Specified Balance, then the Servicer may instruct the
Indenture Trustee in writing to withdraw the amount of such excess for payment
to or at the direction of the Issuer. On any date, the Issuer may, at its
option, add funds to the Series 2005-1 Loss Reserve Account. After the Series
Issuance Date for the Series 2005-1 Notes, deposits to and withdrawals from the
Series 2005-1 Loss Reserve Account shall be made as provided in the Indenture
and this Series Supplement.

 

(c) The Servicer, for the benefit of the Series 2005-1 Holders, shall cause to
be established and maintained in the name of the Indenture Trustee, an Eligible
Deposit Account (the “Series 2005-1 Interest Reserve Account”) which shall be
identified as the “Series 2005-1 Interest Reserve Account for Truck Retail
Instalment Paper Corp.” and shall bear a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2005-1 Holders.
On or before the Series Issuance Date for the Series 2005-1 Notes, the Issuer
shall cause to be deposited in the Series 2005-1 Interest Reserve Account an
amount of cash or Eligible Investments equal to the Series 2005-1 Interest
Reserve Specified Balance on such date. If, on the Series Issuance Date for the
Series 2005-1 Notes or on any Purchase Date or Sale Date, after giving effect to
all transactions on such date, the amount of funds in the Series 2005-1 Interest
Reserve Account exceeds the Series 2005-1 Interest Reserve Specified Balance,
then the Servicer may instruct the Indenture Trustee in writing to withdraw the
amount of such excess for payment to or at the direction of the Issuer. On any
date, the Issuer may, at its option, add funds to the Series 2005-1 Interest
Reserve Account. After the Series Issuance Date for the Series 2005-1 Notes,
deposits to and withdrawals from the Series 2005-1 Interest Reserve Account
shall be made as provided in the Indenture and this Series Supplement.

 

(d) Schedule 1, which is hereby incorporated into and made part of this Series
Supplement, identifies each Series 2005-1 Reserve Account and the Series 2005-1
Note Distribution Account by setting forth the account number of each such
account, the account designation of each such account and the name of the
institution with which such account has been established. If a substitute
account for any of such accounts is established pursuant to Section 2.02 of the
Servicing Agreement, the Servicer shall provide to the Indenture Trustee an
amended Schedule I, setting forth the relevant information for such substitute
account.

 

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(e) All Eligible Investments in the Series 2005-1 Reserve Accounts and the
Series 2005-1 Note Distribution Account shall be held by the Indenture Trustee
solely for the benefit of the Series 2005-1 Holders. Pursuant to the authority
granted to the Servicer in Section 8.2 of the Indenture and Section 2.01 and
Section 2.02 of the Servicing Agreement, the Servicer shall have the power,
revocable by the Indenture Trustee to instruct the Indenture Trustee in writing
to make withdrawals and payments from the Series 2005-1 Reserve Accounts for the
purposes of carrying out the Servicer’s or Indenture Trustee’s duties hereunder.

 

ARTICLE IV

DISTRIBUTIONS AND REPORTS

TO SERIES 2005-1 HOLDERS

 

Section 4.01. Distributions.

 

(a) All deposits to the Series 2005-1 Note Distribution Account shall be held in
trust for the benefit of the Series 2005-1 Holders entitled thereto (unless the
Paying Agent is the Indenture Trustee) and all distributions from the Series
2005-1 Note Distribution Account shall be to the holders of the class of the
Series 2005-1 Notes in respect of which such deposit has been made and for the
purpose for which such deposit has been made, in each case as specified in this
Series Supplement, and no amounts so withdrawn from the Series 2005-1 Note
Distribution Account for payments on the Series 2005-1 Notes shall be paid over
to the Issuer or to any other Noteholders.

 

(b) On each Payment Date, the Indenture Trustee shall distribute to each Series
2005-1 Holder of record on the preceding Record Date (other than as provided in
Section 2.7(c) of the Indenture respecting a final distribution) such Series
2005-1 Holder’s pro rata share (based on the aggregate principal balance of the
Series 2005-1 Notes held by such Series 2005-1 Holder) of the amounts on deposit
in the Series 2005-1 Note Distribution Account which have been deposited in
respect of the payment of principal, interest or otherwise in respect of the
Series 2005-1 Notes held by such Series 2005-1 Holder on such Payment Date
pursuant to Sections 3.03(b) and (c), in each case in accordance with this
Series Supplement and the Indenture.

 

(c) Except as provided in Section 2.7(c) of the Indenture with respect to a
final distribution, distributions to Series 2005-1 Holders hereunder shall be
made by check mailed to each Series 2005-1 Holder at such Noteholder’s address
appearing in the Note Register without presentation or surrender of any Series
2005-1 Note or the making of any notation thereon; provided, however, that, with
respect to Series 2005-1 Notes registered in the name of a Clearing Agency, such
distributions shall be made to such Clearing Agency in immediately available
funds.

 

Section 4.02. Reports and Statements to Series 2005-1 Holders.

 

(a) On or prior to each Payment Date, commencing with the Initial Payment Date,
the Servicer will provide to the Indenture Trustee, and on each Payment Date,
the Indenture Trustee shall forward to each Series 2005-1 Holder (provided the
Indenture Trustee

 

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has received such report from the Servicer), a statement prepared by the
Servicer, substantially in the form attached as Exhibit C hereto, setting forth
the following information relating to the Issuer and the Series 2005-1 Notes:

 

  (1) the total amount to be paid to Class A Holders and Class B Holders on such
Payment Date;

 

  (2) the amount, if any, of the payment allocable to principal on the Class A
Notes and Class B Notes on such Payment Date;

 

  (3) the amount, if any, of the payment allocable to interest on the Class A
Notes and Class B Notes on such Payment Date;

 

  (4) the expected outstanding principal balance of the Class A Notes and the
Class B Notes, after giving effect to all payments reported under (2) above on
such Payment Date;

 

  (5) the Total Collected Amount for the related Monthly Period, the Total
Available Amount for such Payment Date and the Series Allocable Amount for the
Series 2005-1 Notes for the related Monthly Period;

 

  (6) the Series 2005-1 Loss Reserve Specified Balance for such Payment Date,
the amount to be deposited or withdrawn from the Series 2005-1 Loss Reserve
Account on such Payment Date and the balance of the Series 2005-1 Loss Reserve
Account after such deposits and withdrawals;

 

  (7) the Series 2005-1 Interest Reserve Specified Balance for such Payment
Date, the amount to be deposited or withdrawn from the Series 2005-1 Interest
Reserve Account on such Payment Date and the balance of the Series 2005-1
Interest Reserve Account after such deposits and withdrawals;

 

  (8) the amount of the Total Servicing Fee payable to the Servicer with respect
to the related Monthly Period; and

 

  (9) the Combined Three-Month Net Loss Percentage and the Combined Twelve-Month
Net Loss Percentage for the Reference Date, and the NSP Delinquency Percentage
for the related Monthly Period and, if an Aged Pool Period is then in effect,
the Issuer Net Loss Percentage and the Issuer Delinquency Percentage for the
related Monthly Period.

 

Each amount set forth pursuant to subclauses (1), (2) and (3) will be expressed
as a dollar amount per $1,000 of the initial outstanding principal balance of
the Series 2005-1 Notes.

 

(b) A copy of each statement provided pursuant to paragraph (a) will be made
available for inspection at the Corporate Trust Office of the Indenture Trustee.

 

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(c) On or before January 31 of each calendar year, beginning with January 31,
2006, the Indenture Trustee shall furnish or cause to be furnished to each
Person who at any time during the preceding calendar year was a Series 2005-1
Holder, a report prepared by the Servicer containing the information which is
required to be contained in the statement to Series 2005-1 Holders as set forth
in paragraph (a) above, aggregated for such calendar year or the applicable
portion thereof during which such Person was a Series 2005-1 Noteholder together
with other information as is necessary to enable the Series 2005-1 Holders to
prepare their tax returns. Such obligation of the Indenture Trustee shall be
deemed to have been satisfied to the extent that substantially comparable
information shall be provided by the Indenture Trustee pursuant to any
requirements of the Code as from time to time in effect.

 

ARTICLE V

AMORTIZATION EVENTS

 

Section 5.01. Additional Amortization Events.

 

(a) Except as provided in Section 5.01(b), the occurrence of any of the
following events shall, immediately upon the occurrence thereof without notice
or other action on the part of the Indenture Trustee or the Series 2005-1
Holders, be deemed to be an Amortization Event, including for purposes of
Section 5.17(c) of the Indenture, solely with respect to the Series 2005-1
Notes:

 

  (1) the Issuer shall fail to pay any interest on any Series 2005-1 Note as and
when the same becomes due and payable, and such payment default shall continue
unremedied for a period of 5 days;

 

  (2) the balance in the Series 2005-1 Loss Reserve Account equals zero after
the application of funds pursuant to Sections 3.03(b) and (c) hereof;

 

  (3) at the close of business of any Payment Date, the balance in the Series
2005-1 Interest Reserve Account is less than one-sixth of the Series 2005-1
Interest Reserve Specified Balance after the application of funds in Sections
3.03(b) and (c) hereof;

 

  (4) the Combined Twelve-Month Net Loss Percentage for any Reference Date
exceeds 7.00%;

 

  (5) the Three-Month Delinquency Percentage for any Reference Date exceeds
6.00%;

 

  (6) the Series 2005-1 Holders are not paid all outstanding principal and
accrued interest on the Series 2005-1 Notes on or prior to the Targeted Final
Payment Date for the Series 2005-1 Notes;

 

  (7) the occurrence of a Servicer Default that has a material adverse effect on
the Series 2005-1 Holders;

 

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  (8) the occurrence of a Receivable Purchase Termination Event under the
Receivables Purchase Agreement that has a material adverse effect on the Series
2005-1 Holders;

 

  (9) the Lien on the Collateral created in favor of the Indenture Trustee on
behalf of the holders of Notes shall become legally unenforceable;

 

  (10) the United States government or any agency or instrumentality thereof
files a notice of a lien on the assets of either the Seller or the Issuer under
Code Section 6323 or any similar statutory provision which is or may in the
future be prior to the lien of the Indenture Trustee. on behalf of the
Noteholders on the Collateral and such lien shall not have been terminated
within 30 days.

 

(b) If an Amortization Event of the type described in clauses (1) through (6) or
clause (9) or (10) of Section 5.01(a) should occur, such Amortization Event
shall be deemed to have occurred on the day such Amortization Event occurs. If
an Amortization Event of the type described in clause (7) or (8) of Section
5.01(a) should occur and be continuing, then and in every such case, unless the
principal amount of the Series 2005-1 Notes shall have already become due and
payable or an Amortization Event has been declared or has occurred with respect
to a Series other than the Series 2005-1 or pursuant to the Indenture, either
the Indenture Trustee or the Series 2005-1 Holders representing not less than a
majority of the outstanding principal balance of the Controlling Class for the
Series 2005-1 Notes must declare that the Amortization Event has occurred by a
notice in writing to the Issuer (and to the Indenture Trustee if given by the
Series 2005-1 Holders) setting forth the Amortization Event, and until such
declaration, such Amortization Event shall be deemed not to have occurred.

 

ARTICLE VI

OPTIONAL REDEMPTION, TRANSFER RESTRICTIONS

AND CERTAIN TERMS

 

Section 6.01. Optional Redemption.

 

(a) The Series 2005-1 Notes will be subject to optional redemption in full
pursuant to Section 10.1(b) of the Indenture and Section 6.01(b) upon the terms
and conditions set forth in this Section 6.01.

 

(b) On any date selected by the Issuer (the “Redemption Date”) which is a
Payment Date occurring on or after April 15, 2010, the Issuer may, at its
option, without premium or penalty, redeem the Series 2005-1 Notes in whole but
not in part at a purchase price equal to the Redemption Price for such Payment
Date; provided an amount at least equal to the aggregate Redemption Price shall
be on deposit in the Excess Funding Account on or prior the date upon which
notice of such redemption is given to the Indenture Trustee as provided in the
following sentence. If the Redemption Date occurs on a date other than the
Targeted Final Payment Date for the Series 2005-1 Notes, then the Issuer shall
give the Indenture Trustee not more than 60 nor less than 10 days prior written
notice of the Redemption Date. The Indenture

 

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Trustee shall give notice of redemption by first-class mail, postage prepaid,
mailed not more than 60 nor less than 10 days prior to the Redemption Date to
each Series 2005-1 Holder as of the close of business on the Record Date related
to such Payment Date at such Series 2005-1 Holder’s address appearing in the
note register to be maintained by the Indenture Trustee. The notice of
redemption of the Series 2005-1 Notes shall be given by the Indenture Trustee in
the name and at the expense of the Issuer. The failure to give notice of
redemption, or any defect, therein, to any Series 2005-1 Holder will not impair
or affect the validity of the redemption of any other Series 2005-1 Note. The
Issuer shall furnish the Rating Agencies notice of any such redemption
concurrently with notice to the Series 2005-1 Holders.

 

(c) The Series 2005-1 Notes shall, following notice of redemption, become due
and payable on the Redemption Date at a price equal to the outstanding principal
amount of the Series 2005-1 Notes, plus accrued and unpaid interest thereon at
the Class A Rate or Class B Rate, as the case may be, to but excluding the
Redemption Date (the “Redemption Price”) and (unless the Issuer defaults in the
payment of the Redemption Price) no interest will accrue on the Redemption Price
for any period after the date to which accrued interest is calculated for
purpose of calculating the Redemption Price.

 

(d) On the Business Day immediately preceding the Redemption Date, the Issuer
shall instruct the Indenture Trustee in writing to withdraw on that date an
amount equal to the EFA Allocable Amount with respect to the Series 2005-1 Notes
for the Payment Date on which such Redemption Date occurs from the Excess
Funding Account, to the extent of funds available therefor, and deposit the
lesser of such amount or the principal portion of the Redemption Price in the
Series 2005-1 Note Distribution Account in respect of the payment of the
Redemption Price.

 

(e) On the Business Day immediately preceding the Redemption Date, the Issuer
shall instruct the Indenture Trustee in writing to deposit in the Series 2005-1
Note Distribution Account, to the extent required such that the amounts on
deposit therein, after the deposit pursuant to Section 3.03(d) shall equal the
Redemption Price, all amounts on deposits in the Series 2005-1 Reserve Accounts
and the amounts permitted to be withdrawn from the Collection Account on such
Business Day pursuant to Section 3.03(c) hereof.

 

Section 6.02. Transfer Restrictions.

 

(a) During the period commencing on the Series Issuance Date for the Series
2005-1 Notes and ending on the 40th day thereafter (the “Distribution Compliance
Period”), a beneficial interest in any Temporary Regulation S Global Note may
not be transferred to a U.S. Person, unless the beneficial interest in the
Temporary Regulation S Global Note is exchanged for a beneficial interest in the
Rule 144A Global Note, and then only if such exchange occurs in connection with
a transfer pursuant to Rule 144A under the Securities Act and the transferor
first delivers to the Indenture Trustee a written certificate to the effect that
such transfer is being made to a Person that the transferor reasonably believes
is a QIB purchasing for its own account or the account of a “qualified
institutional buyer” (as defined in Rule 144A under the Securities Act) (a
“QIB”) in a transaction meeting the requirements of Rule 144A under the
Securities Act and in accordance with all applicable securities laws of all U.S.
states and other jurisdictions.

 

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(b) Beneficial interests in a Rule 144A Global Note may be transferred to a
Person that takes delivery in the form of an interest in a Temporary Regulation
S Global Note, prior to the expiration of the Distribution Compliance Period,
only if the transferor first delivers to the Indenture Trustee a written
certificate to the effect that such transfer is being made in accordance with
Rule 904 of Regulation S under the Securities Act.

 

(c) Any beneficial interest in one of the Global Notes that is transferred to a
Person that takes delivery in the form of an interest in another Global Note
will, upon transfer, cease to be an interest in the first such Global Note and
will become an interest in the other Global Note and, accordingly, will
thereafter be subject to all transfer restrictions and other procedures
applicable to such beneficial interest in such other Global Note for so long as
it remains such an interest.

 

(d) In addition to the foregoing restrictions, the transfer of the Series 2005-1
Notes, or beneficial interests therein, shall be subject to the restrictions set
forth in the respective Global Notes attached hereto.

 

Section 6.03. Certain Terms Used in Basic Documents. The following terms used in
the Basic Documents shall have the indicated meanings with respect to the Series
2005-1 Notes:

 

(a) The Series Issuance Date for the Series 2005-1 Notes shall be June 29, 2005.

 

(b) The Stated Final Maturity Date for the Series 2005-1 Notes shall be December
15, 2016.

 

(c) The Targeted Final Payment Date for the Series 2005-1 Notes shall be June
15, 2010.

 

(d) The Principal Payment Commencement Date for the Series 2005-1 Notes shall be
the Series 2005-1 Principal Payment Commencement Date.

 

(e) The Specified Balance for the Series 2005-1 Loss Reserve Account shall be
the Series 2005-1 Loss Reserve Specified Balance.

 

(f) The Specified Balance for the Series 2005-1 Interest Reserve Account shall
be the Series 2005-1 Interest Reserve Specified Balance.

 

(g) The Series Shortfall for the Series 2005-1 Notes shall be the amount
described as such in the last paragraph of Section 3.03 hereof.

 

(h) The Principal Distributable Amount for the Series 2005-1 Notes shall be the
outstanding principal balance of the Series 2005-1 Notes.

 

(i) Excess Collections for the Series 2005-1 Notes shall have the meaning given
to such term in clause (7) of Section 3.03(c) hereof.

 

22

--------------------------------------------------------------------------------

(j) The Note Distribution Account for the Series 2005-1 Notes shall be the
Series 2005-1 Note Distribution Account.

 

(k) The Rating Agencies rating the Series 2005-1 Notes shall be S&P and Moody’s.

 

ARTICLE VII

MISCELLANEOUS PROVISIONS

Section 7.01. Ratification of Agreement. As supplemented by this Series
Supplement, the Indenture is in all respects ratified and confirmed and the
Indenture as so supplemented by this Series Supplement shall be read, taken and
construed as one and the same instrument.

 

Section 7.02. Counterparts. This Series Supplement may be executed in two or
more counterparts (and by different parties on separate counterparts) each of
which shall be an original, but all of which together shall constitute one and
the same instrument.

 

Section 7.03. GOVERNING LAW. THIS SERIES SUPPLEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REFERENCE TO ITS
CONFLICT OF LAW PROVISIONS, EXCEPT THAT THE OBLIGATIONS, RIGHTS AND REMEDIES OF
THE INDENTURE TRUSTEE HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS.

 

Section 7.04. Consent to Amendment. By the acceptance of the Series 2005-1
Notes, each of the Series 2005-1 Noteholders hereby consents to the amendments
set forth in that certain Supplement No. 3 to Indenture, dated as of the date
hereof and attached hereto as Exhibit D, which amendments shall automatically
become effective on the Amendment Effective Date.

 

23

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Series
Supplement to be duly executed by their respective officers, thereunto duly
authorized, all as of the day and year first above written.

 

TRUCK RETAIL INSTALMENT PAPER CORP. By:   Navistar Financial Corporation By:  

/s/ Andrew J. Cederoth

--------------------------------------------------------------------------------

Name:   Andrew J. Cederoth Title:   Vice President & Treasurer THE BANK OF NEW
YORK, as Indenture Trustee By:  

/s/ Jonathan Farber

--------------------------------------------------------------------------------

Name:   Jonathan Farber Title:   Assistant Vice President

 

Acknowledged and Accepted:

 

NAVISTAR FINANCIAL CORPORATION, Servicer By:  

/s/ Andrew J. Cederoth

--------------------------------------------------------------------------------

Name:   Andrew J. Cederoth Title:   Vice President & Treasurer

--------------------------------------------------------------------------------

EXHIBIT A-1

 

REGISTERED   $                     No. R-1   CUSIP No. 897790AC5

 

[Form of Class A Rule 144A Global Note]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS NOTE (OR AN INTEREST HEREIN) IS HEREBY NOTIFIED THAT THE
SELLER OF THIS NOTE (OR SUCH INTEREST) MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER
(“RULE 144A”).

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) THIS NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY INSIDE THE UNITED
STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFF SHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, AND, IN EACH OF CASES (1) THROUGH (III), IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

Unless this Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is registered
in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

A-1-1

--------------------------------------------------------------------------------

TRUCK RETAIL INSTALMENT PAPER CORP.

(A Delaware Corporation)

 

SERIES 2005-1 FLOATING RATE ASSET BACKED NOTES, CLASS A

 

RULE 144A GLOBAL NOTE

 

Evidencing an indebtedness of the Issuer, the assets of which consists of retail
note receivables and an interest in retail lease receivables (collectively the
“Receivables”) generated from time to time in the ordinary course of business by
Navistar Financial Corporation, a Delaware corporation (“Navistar Financial”),
and its affiliates. This Note (the “Note”) does not represent any interest in,
or recourse obligation of, Navistar Financial or any of its affiliates (other
than the Issuer).

 

Truck Retail Instalment Paper Corp., a Delaware corporation (herein referred to
as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or
registered assigns (the “Noteholder”), the principal sum set forth on Schedule 1
to this Note (as maintained as described on the reverse side of this Note), at
the times specified and in the amounts specified in the Indenture (as defined on
the reverse side of this Note) and the Series 2005-1 Supplement; provided that
the entire outstanding principal amount of this Note shall be due and payable on
December 15, 2016 (the “Stated Final Maturity Date”). The Issuer shall pay
interest on this Note on the dates, in the amounts and in the manner set forth
in the Indenture and the Series 2005-1 Supplement.

 

Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

 

A-1-2

--------------------------------------------------------------------------------

Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

 

Dated: June 29, 2005   TRUCK RETAIL INSTALMENT PAPER CORP.     By:  

 

--------------------------------------------------------------------------------

    Name:  

 

--------------------------------------------------------------------------------

    Title:  

 

--------------------------------------------------------------------------------

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes designated above and referred to in the
within-mentioned Indenture and Series Supplement.

 

Dated: June 29, 2005   THE BANK OF NEW YORK,     not in its individual capacity
but solely as     Indenture Trustee     By:  

 

--------------------------------------------------------------------------------

    Name:  

 

--------------------------------------------------------------------------------

    Title:  

 

--------------------------------------------------------------------------------

 

A-1-3

--------------------------------------------------------------------------------

REVERSE OF NOTE

 

This Note is one of a duly authorized issue of Notes of the Issuer, designated
as its Series 2005-1 Floating Rate Asset Backed Notes, Class A (herein called
the “Class A Notes”), all issued under an Indenture, dated as of October 16,
2000 (as amended and supplemented from time to time, the “Indenture”), between
the Issuer and The Bank of New York, a New York banking corporation, as
indenture trustee (the “Indenture Trustee”, which term includes any successor
trustee under the Indenture) as supplemented by the Series 2005-1 Supplement,
dated as of June 29, 2005, between the Issuer and the Indenture Trustee (the
“Series 2005-1 Supplement”), to which Indenture and Series 2005-1 Supplement
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders.
The Class A Notes are one of the duly authorized series of Notes of the Issuer
issued and to be issued from time to time pursuant to the Indenture
(collectively, as to all Notes of all such series, the “Notes”). The Notes are
governed by and subject to all terms of the Indenture (which terms are
incorporated herein and made a part hereof), to which Indenture the Holder of
this Note (and each related Note Owner) by virtue of acceptance hereof (or of
any interest herein) assents and by which such Person is bound. All capitalized
terms used and not otherwise defined in this Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

 

Principal Amount. Upon initial issuance, this Rule 144A Global Note shall have
an initial principal balance equal to the principal balance of the Class A Notes
which were sold to the initial purchasers and initially resold in reliance on
the exemption from registration under the Securities Act provided by Rule 144A.
Such initial principal balance shall be indicated on Schedule 1 to this Rule
144A Global Note. Concurrently with the issuance of this Rule 144A Global Note,
the Issuer will issue another Global Note (the “Temporary Regulation S Global
Note”), the initial principal balance of which shall equal the principal amount
of the Class A Notes which were sold to non-U.S. Persons in reliance on the
exemption from registration under the Securities Act provided by Regulation S.
Under certain circumstances, all or part of the interests in the Temporary
Regulation S Global Note may be exchanged for interests in a permanent Global
Note (the “Permanent Regulation S Global Note” and, together with the Temporary
Regulation S Global Note, the “Regulation S Global Notes”).

 

Upon a transfer in compliance with the requirements of the Indenture by any Note
Owner holding a beneficial interest in this Rule 144A Global Note of all or a
portion of such beneficial interest to a non-U.S. Person who will hold such
beneficial interest through either Regulation S Global Note, the principal
amount represented by such transferred beneficial interest shall cease to be an
interest in this Rule 144A Global Note and shall become an interest in the
applicable Regulation S Global Note. Similarly, upon a transfer in compliance
with the requirements of the Series 2005-1 Supplement by any Note Owner holding
a beneficial interest in a Regulation S Global Note of all or a portion of such
beneficial interest to a Person who will hold such beneficial interest through
this Rule 144A Global Note, the principal amount represented by such transferred
beneficial interest shall cease to be an interest in such Regulation S Global
Note and shall become an interest in this Rule 144A Global Note. In either such
case, the Issuer shall procure that the principal amount of this Rule 144A
Global Note and of the Regulation S Global Note is increased or decreased
appropriately and that the remaining principal balance of this Rule 144A Global
Note is noted on Schedule 1 hereto, whereupon the principal amount of this Rule
144A Global Note shall be as most recently so noted.

 

A-1-4

--------------------------------------------------------------------------------

Equally and Ratably Secured. The Class A Notes and all other series of Notes
issued pursuant to the Indenture, except as otherwise provided thereunder, are
and shall be equally and ratably secured by the Collateral as provided in the
Indenture. The sole source of funds for payments on the Class A Notes and any
other series or class of Notes will be the Collateral and the Holders of such
Notes will not otherwise have recourse to the Issuer, Navistar Financial
Corporation, their affiliates or any other person.

 

No Recourse Against Persons in Individual Capacity. Each Holder or Note Owner,
by acceptance of a Note or, in the case of a Note Owner, a beneficial interest
in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee in its
individual capacity, (ii) any direct or indirect owner of the Issuer or (iii)
any partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee in its individual capacity, any direct or indirect owner of
the Issuer or the Indenture Trustee or of any successor or assign of the
Indenture Trustee in its individual capacity, except as any such Person .may
have expressly agreed (it being understood that the Indenture Trustee has no
such obligations in its individual capacity) and except that any such partner,
owner or beneficiary shall be fully liable, to the extent provided by applicable
law, for any unpaid consideration for stock, unpaid capital contribution or
failure to pay any instalment or call owing to such entity.

 

No Petition Covenant. Each Holder or Note Owner, by acceptance of a Note or, in
the case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that by accepting the benefits of the Indenture such Holder will not, prior to
the date which is one year and one day after the termination of such Indenture
with respect to the Issuer, acquiesce, petition or otherwise invoke or cause the
Issuer to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Issuer under any federal
or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Issuer or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Issuer.

 

Tax Characterization. Each Noteholder, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, unless otherwise required by
appropriate taxing authorities, agrees to treat the Notes as indebtedness
secured by the Collateral for the purpose of federal income taxes, state and
local income and franchise taxes, and any other taxes imposed upon, measured by
or based upon gross or net income.

 

Ownership Treatment. Prior to the due presentment for registration of transfer
of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee may treat the Person in whose name this Note (as of the
day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note shall be overdue, and neither the Issuer, the Indenture Trustee nor
any such agent shall be affected by notice to the contrary.

 

A-1-5

--------------------------------------------------------------------------------

Amendments to Indenture. The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Class A Holders under the
Indenture at any time by the Issuer and the Indenture Trustee without the
consent of the Holders of Notes. The Indenture also permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Issuer and the rights of the Class A Holders
under the Indenture at any time by the Issuer with the consent of the Holders of
Notes representing a majority of the principal amount of the outstanding Class A
Notes. The Indenture also contains provisions permitting the Holders of Notes
representing a majority of the principal amount of the outstanding Class A
Notes, on behalf of the Holders of all the Notes, to waive compliance by the
Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder
of this Note (or anyone or more Predecessor Notes) shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof whether or not notation of such consent or waiver is made upon this
Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of the Class
A Holders.

 

Miscellaneous.

 

The Issuer is permitted by the Indenture, under certain circumstances, to merge
or consolidate, subject to the rights of the Indenture Trustee and the Holders
of Notes under the Indenture.

 

The term “Issuer” as used in this Note includes any successor to the Issuer
under the Indenture.

 

The Class A Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

 

This Note and the Indenture shall be construed in accordance with the laws of
the State of Illinois, without reference to its conflict of law provisions, and
the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

 

No reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in
the Basic Documents, neither the Seller, the Servicer nor the Indenture Trustee
in their respective individual capacities, any owner of a beneficial interest in
the Issuer, nor any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns, shall be personally
liable for, nor shall recourse be had to any of them for, the payment of
principal of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that such

 

A-1-6

--------------------------------------------------------------------------------

covenants, obligations and indemnifications have been made by the Issuer. The
Holder of this Note by the acceptance hereof agrees that, except as expressly
provided in the Basic Documents, in the case of an Event of Default under the
Indenture, the Holder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
Collateral for any and all liabilities, obligations and undertakings contained
in the Indenture or in this Note. Notwithstanding anything to the contrary
herein, the Issuer shall make the payments required under this Indenture, the
Series Supplements and the Notes from the Collateral.

 

A-1-7

--------------------------------------------------------------------------------

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of assignee

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints                     , as attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

 

Dated:

 

Signature Guaranteed:1

 

--------------------------------------------------------------------------------

1 NOTE: The signature to this assignment must correspond with the name of the
registered holder as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

 

A-1-8

--------------------------------------------------------------------------------

Schedule 1

 

Payments and Transfers of Interests to Regulation S Global Note

 

Date of payment,

delivery or

cancellation

--------------------------------------------------------------------------------

 

Principal amount of

Rule 144A Global

Note transferred to

Reg. S Global Note

--------------------------------------------------------------------------------

 

Principal amount of

Reg. S Global Note
transferred to Rule

144A Global Note

--------------------------------------------------------------------------------

  

Remaining principal
amount of Rule

144A Global Note

--------------------------------------------------------------------------------

  

Authorized

Signatory

--------------------------------------------------------------------------------

 

A-1-9

--------------------------------------------------------------------------------

EXHIBIT A-2

 

REGISTERED

  $                    

No. R-l

  CUSIP No. U89683AC7

 

[Form of Class A Temporary Regulation S Global Note]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE U.S. SECURITIES
ACT PROVIDED BY REGULATION S THEREUNDER (“REGULATION S”).

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) THIS NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) INSIDE THE
UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT) IN A
TRANSACTION. MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 OF REGULATION S,
OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S.
SECURITIES ACT, AND, IN EACH OF CASES (I) THROUGH (III), IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN CLAUSE (A) ABOVE.

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

Unless this Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is registered
in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

A-2-1

--------------------------------------------------------------------------------

TRUCK RETAIL INSTALMENT PAPER CORP.

(A Delaware Corporation)

 

SERIES 2005-1 FLOATING RATE ASSET BACKED NOTES, CLASS A

 

Evidencing an indebtedness of the Issuer, the assets of which consists of retail
note receivables and an interest in retail lease receivables (collectively the
“Receivables”) generated from time to time in the ordinary course of business by
Navistar Financial Corporation, a Delaware corporation (“Navistar Financial”),
and its affiliates. This Note (the “Note”) does not represent any interest in,
or recourse obligation of, Navistar Financial or any of its affiliates (other
than the Issuer).

 

Truck Retail Instalment Paper Corp., a Delaware corporation (herein referred to
as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or
registered assigns (the “Noteholder”), the principal sum set forth on Schedule 1
to this Note (as maintained as described on the reverse side of this Note), at
the times specified and in the amounts specified in the Indenture (as defined on
the reverse side of this Note) and the Series 2005-1 Supplement; provided that
the entire outstanding principal amount of this Note shall be due and payable on
December 15, 2016 (the “Stated Final Maturity Date”). The Issuer shall pay
interest on this Note on the dates, in. the amounts and in the manner set forth
in the Indenture and the Series 2005-1 Supplement.

 

Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

 

Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof or be valid or obligatory for any purpose.

 

A-2-2

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

 

Dated: June 29, 2005   TRUCK RETAIL INSTALMENT PAPER CORP.     By:  

 

--------------------------------------------------------------------------------

    Name:  

 

--------------------------------------------------------------------------------

    Title:  

 

--------------------------------------------------------------------------------

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes designated above and referred to in the
within-mentioned Indenture and Series Supplement.

 

Dated: June 29, 2005  

THE BANK OF NEW YORK,

not in its individual capacity but solely as

Indenture Trustee

    By:  

 

--------------------------------------------------------------------------------

    Name:  

 

--------------------------------------------------------------------------------

    Title:  

 

--------------------------------------------------------------------------------

 

A-2-3

--------------------------------------------------------------------------------

REVERSE OF NOTE

 

This Note is one of a duly authorized issue of Notes of the Issuer, designated
as its Series 2005-1 Floating Rate Asset Backed Notes, Class A (herein called
the “Class A Notes”), all issued under an Indenture, dated as of October 16,
2000 (as amended and supplemented from time to time, the “Indenture”), between
the Issuer and The Bank of New York, a New York banking corporation, as
indenture trustee (the “Indenture Trustee”, which term includes any successor
trustee under the Indenture) as supplemented by the Series 2005-1 Supplement,
dated as of June 29, 2005, between the Issuer and the Indenture Trustee (the
“Series 2005-1 Supplement”) to which Indenture and Series 2005-1 Supplement
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders.
The Class A Notes are one of the duly authorized series of Notes of the Issuer
issued and to be issued from time to time pursuant to the Indenture
(collectively, as to all Notes of all such series, the “Notes”). The Notes are
governed by and subject to all terms of the Indenture (which terms are
incorporated herein and made a part hereof), to which Indenture the Holder of
this Note (and each related Note Owner) by virtue of acceptance hereof (or of
any interest herein) assents and by which such Person is bound. All capitalized
terms used and not otherwise defined in this Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

 

Exchange for Permanent Regulation S Global Note. On or after 40 days after the
date of issue of this Temporary Regulation S Global Note (the “Exchange Date”),
the Issuer shall procure the delivery of a permanent global note (the “Permanent
Regulation S Global Note”), in full or partial exchange for this Temporary
Regulation S Global Note against:

 

(e) presentation and surrender of this Temporary Regulation S Global Note at the
specified office of the Indenture Trustee; and

 

(f) receipt by the Indenture Trustee of a certificate or certificates issued by
each Clearing Agency dated not earlier than the Exchange Date and in
substantially the form set out in Exhibit A-3 to this Temporary Regulation S
Global Note.

 

The principal amount of the Permanent Regulation S Global Note on such date
shall be equal to the aggregate of the principal amounts specified in the
certificates issued by the Clearing Agencies and received by the Indenture
Trustee.

 

Any person who would, but for the provisions of this Temporary Regulation S
Global Note, the Permanent Global Note and the Indenture, otherwise be entitled
to receive a definitive Note or definitive Notes shall not be entitled to
require the exchange of an appropriate part of this Temporary Regulation S
Global Note for a like part of the Permanent Regulation S Global Note unless and
until he shall have delivered or caused to be delivered to Euroclear Bank
S.A./N.V. or Clearstream Banking, société anonyme, Luxembourg, a certificate
substantially in the form of the certificate attached as Exhibit A-4 (copies of
which form of certificate will be available at the offices of Euroclear Bank
S.A./N.V. in Brussels and Clearstream Banking, société anonyme, Luxembourg, and
the specified office of each of the Paying Agents).

 

A-2-4

--------------------------------------------------------------------------------

Principal Amount. Upon initial issuance, this Temporary Regulation S Global Note
shall have an initial principal balance equal to the principal balance of the
Class A Notes which were sold to the Initial Purchasers and initially resold in
reliance on the exemption from registration under the Securities Act provided by
Regulation S. Such initial principal balance shall be indicated on Schedule 1 to
this Temporary Regulation S Global Note. Concurrently with the issuance of this
Temporary Regulation S Global Note, the Issuer will issue another Global Note
(the “Rule 144A Global Note”), the initial principal balance of which shall
equal the principal amount of the Class A Notes which were sold to the Initial
Purchasers and initially resold in reliance on the exemption from registration
under the Securities Act provided by Rule 144A.

 

Upon a transfer in compliance with the requirements of the Indenture by any Note
Owner holding a beneficial interest in this Temporary Regulation S Global Note
of all or a portion of such beneficial interest to a Person who will hold such
beneficial interest through the Rule 144A Global Note, the principal amount
represented by such transferred beneficial interest shall cease to be an
interest in this Temporary Regulation S Global Note and shall become an interest
in the Rule 144A Global Note. Similarly, upon a transfer in compliance with the
requirements of the Series 2005-1 Supplement by any Note Owner holding a
beneficial interest in the Rule 144A Global Note of all or a portion of such
beneficial interest to a non-U.S. Person who will hold such beneficial interest
through this Temporary Regulation S Global Note, the principal amount
represented by such transferred beneficial interest shall cease to be an
interest in the Rule 144A Global Note and shall become an interest in this
Temporary Regulation S Global Note. In either such case, the Issuer shall
procure that the principal amount of this Temporary Regulation S Global Note and
of the Rule 144A Global Note is increased or decreased appropriately and that
the remaining principal balance of this Temporary Regulation S Global Note is
noted on Schedule 1 hereto, whereupon the principal amount of this Temporary
Regulation S Global Note shall be as most recently so noted.

 

Equally and Ratably Secured. The Class A Notes and all other Notes issued
pursuant to the Indenture, except as otherwise provided thereunder, are and
shall be equally and ratably secured by the Collateral pledged as security
therefor as provided in the Indenture. The sole source of funds for payments on
the Class A Notes and any other series or class of Notes will be the Collateral
and the Holders of such Notes will not otherwise have recourse to the Issuer,
Navistar Financial Corporation, their affiliates or any other person.

 

No Recourse Against Persons in Individual Capacity. Each Holder or Note Owner,
by acceptance of a Note or, in the case of a Note Owner, a beneficial interest
in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee in its
individual capacity, (ii) any direct or indirect owner of the Issuer or (iii)
any partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee in its individual capacity, any direct or indirect owner of
the Issuer or the Indenture Trustee or of any successor or assign of the
Indenture Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Indenture Trustee has no such
obligations in its individual capacity) and except that any such partner, owner
or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure
to pay any instalment or call owing to such entity.

 

A-2-5

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No Petition Covenant. Each Holder or Note Owner, by acceptance of a Note or, in
the case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that by accepting the benefits of the Indenture such Holder will not, prior to
the date which is one year and one day after the termination of such Indenture
with respect to the Issuer, acquiesce, petition or otherwise invoke or cause the
Issuer to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Issuer under any federal
or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Issuer or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Issuer.

 

Tax Characterization. Each Noteholder, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, unless otherwise required by
appropriate taxing authorities, agrees to treat the Notes as indebtedness
secured by the Collateral for the purpose of federal income taxes, state and
local income and franchise taxes, and any other taxes imposed upon, measured by
or based upon gross or net income.

 

Ownership Treatment. Prior to the due presentment for registration of transfer
of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee may treat the Person in whose name this Note (as of the
day of determination or as of such other date as maybe specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note shall be overdue, and neither the Issuer, the Indenture Trustee nor
any such agent shall be affected by notice to the contrary.

 

Amendments to Indenture. The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Class A Holders under the
Indenture at any time by the Issuer and the Indenture Trustee without the
consent of the Holders of Notes. The Indenture also permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Issuer and the rights of the Class A Holders
under the Indenture at any time by the Issuer with the consent of the Holders of
Notes representing a majority of the principal amount of the outstanding Class A
Notes. The Indenture also contains provisions permitting the Holders of Notes
representing a majority of the principal amount of the outstanding Class A
Notes, on behalf of the Holders of all the Notes, to waive compliance by the
Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder
of this Note (or anyone or more Predecessor Notes) shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof whether or not notation of such consent or waiver is made upon this
Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of the Class
A Holders.

 

A-2-6

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Miscellaneous.

 

The Issuer is permitted by the Indenture, under certain circumstances, to merge
or consolidate, subject to the rights of the Indenture Trustee and the Holders
of Notes under the Indenture.

 

The term “Issuer” as used in this Note includes any successor to the Issuer
under the Indenture.

 

The Class A Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

 

This Note and the Indenture shall be construed in accordance with the laws of
the State of Illinois, without reference to its conflict of law provisions, and
the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

 

No reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in
the Basic Documents, neither the Seller, the Servicer nor the Indenture Trustee
in their respective individual capacities, any owner of a beneficial interest in
the Issuer, nor any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns, shall be personally
liable for, nor shall recourse be had to any of them for, the payment of
principal of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that such covenants, obligations and
indemnifications have been made by the Issuer. The Holder of this Note by the
acceptance hereof agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the Collateral for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note. Notwithstanding anything to the contrary herein, the Issuer shall make the
payments required under this Indenture, the Series Supplements and the Notes
from the Collateral.

 

A-2-7

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ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of assignee

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

 

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints                     , as attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

 

Dated:

 

Signature Guaranteed:2

 

--------------------------------------------------------------------------------

2 NOTE: The signature to this assignment must correspond with the name of the
registered holder as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

 

A-2-8

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EXHIBIT A-3

 

[Form of Euroclear/Clearstream Certification]

 

Truck Retail Instalment Paper Corp.

 

Series 2005-1 Floating Rate Asset Backed Notes, Class A

 

This is to certify that, based solely on certifications we have received in
writing, by tested telex or by electronic transmission from member organizations
appearing in our records as persons being entitled to a portion of the principal
amount set forth below (our “Member Organizations”) substantially to the effect
set forth in the Temporary Regulation S Global Note issued in respect of the
Notes, as of the date hereof, $                 principal amount of the
above-captioned Notes (which are Notes of the category contemplated in Section
230.903(b)(3) of Regulation S under the United States Securities Act of 1933, as
amended (the “Securities Act”)), certifications that the Notes are beneficially
owned by non-US. person(s). As used in this paragraph the term “U.S. person” has
the meaning given to it in Rule 902(k) of Regulation S under the Securities Act.
As used herein, “United States” means the United States of America (including
the States and the District of Columbia); and its “possessions” include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

 

We further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the Temporary Regulation S Global Note excepted in such
certifications and (ii) that as of the date hereof we have not received any
notification from any of our Member Organizations to the effect that the
statements made by such Member Organizations with respect to any portion of the
part submitted herewith for exchange (or, if relevant, exercise of any rights or
collection of any interest) are no longer true and cannot be relied upon as of
the date hereof.

 

A-3-1

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We understand that this certification is required in connection with certain
securities laws of the United States. In connection therewith, if administrative
or legal proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification to any interested party in such proceedings.

 

Dated: [                    ]

 

Euroclear Bank S.A./N.V. as operator of the Euroclear System or

Clearstream Banking, société anonyme,

Luxembourg

By:  

 

--------------------------------------------------------------------------------

Name:  

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

 

A-3-2

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EXHIBIT A-4

 

Truck Retail Instalment Paper Corp.

 

Series 2005-1 Floating Rate Asset Backed Notes, Class A

(the “Notes”)

 

This is to certify that as of the date hereof, and except as set forth below,
the above-captioned Notes held by you for our account (which Notes are of the
category contemplated in Section 230.903(b)(3) of Regulation S under the U.S.
Securities Act of 1933, as amended (the “Act”)), are beneficially owned by (a)
non-U.S. person(s) or (b) U.S. person(s) who purchased the Notes in transactions
meeting the requirements of Section 230.904 of Regulation S or which otherwise
did not require registration under the Act. As used in this paragraph, the term
“U.S. person” has the meaning given to it by Regulation S under the Act.

 

As used herein, “United States” means the United States of America (including
the States and the District of Columbia); and its “possessions” include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

 

We undertake to advise you promptly by tested telex on or prior to the date on
which you intend to submit your certification relating to the Notes held by you
for our account in accordance with your operating procedures if any applicable
statement herein is not correct on such date, and in the absence of any such
notification it may be assumed that this certification applies as of such date.

 

This certification excepts and does not relate to $                     of such
interest in the above Notes in respect of which we are not able to certify and
as to which we understand exchange and delivery of definitive Notes (or, if
relevant, exercise of any rights or collection of any interest) cannot be made
until we do so certify.

 

We understand that this certification is required in connection with certain
securities laws of the United States. In connection therewith, if administrative
or legal proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification to any interested party in such proceedings.

 

Dated:

 

By:  

 

--------------------------------------------------------------------------------

[Name of person giving certification]

(As, or as agent for, the beneficial owner(s) of the Notes to which this
certification relates)

 

A-4-1

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Schedule 1

 

Payments, Exchange for Permanent Regulation S Global Note and

Transfers of Interests to Rule 144A Global Note

 

Date of payment,

delivery or

cancellation

--------------------------------------------------------------------------------

 

Principal amount of
Temp. Reg. S Global

Note exchanged for

a like part of

Permanent Reg. S

Global Note

--------------------------------------------------------------------------------

 

Principal amount of

Rule 144A Global

Note transferred to

Temp. Reg. S

Global Note

--------------------------------------------------------------------------------

 

Remaining principal

amount of this

Temp. Reg. S

Global Note

--------------------------------------------------------------------------------

 

Authorized

Signatory

--------------------------------------------------------------------------------

 

A-4-2

--------------------------------------------------------------------------------

EXHIBIT B-1

 

REGISTERED No.

                   $                         

R-1

   CUSIP No. 897790AD3

 

[Form of Class B Rule 144A Global Note]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS NOTE (OR AN INTEREST HEREIN) IS HEREBY NOTIFIED THAT THE
SELLER OF THIS NOTE (OR SUCH INTEREST) MAY BE RELYING ON THE EXEMPTION FROM THE
PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER
(“RULE 144A”).

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) THIS NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY INSIDE THE UNITED
STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFF SHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE
SECURITIES ACT, (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
SECURITIES ACT, AND, IN EACH OF CASES (I) THROUGH (III), IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

Unless this Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is registered
in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

B-1-1

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TRUCK RETAIL INSTALMENT PAPER CORP.

(A Delaware Corporation)

 

SERIES 2005-1 FLOATING RATE ASSET BACKED NOTES, CLASS A

 

RULE 144A GLOBAL NOTE

 

Evidencing an indebtedness of the Issuer, the assets of which consists of retail
note receivables and an interest in retail lease receivables (collectively the
“Receivables”) generated from time to time in the ordinary course of business by
Navistar Financial Corporation, a Delaware corporation (“Navistar Financial”),
and its affiliates. This Note (the “Note”) does not represent any interest in,
or recourse obligation of, Navistar Financial or any of its affiliates (other
than the Issuer).

 

Truck Retail. Instalment Paper Corp., a Delaware corporation (herein referred to
as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or
registered assigns (the “Noteholder”), the principal sum set forth on Schedule 1
to this Note (as maintained as described on the reverse side of this Note), at
the times specified and in the amounts specified in the Indenture (as defined on
the reverse side of this Note) and the Series 2005-1 Supplement; provided that
the entire outstanding principal amount of this Note shall be due and payable on
December 15, 2016 (the “Stated Final Maturity Date”). The Issuer shall pay
interest on this Note on the dates, in the amounts and in the manner set forth
in the Indenture and the Series 2005-1 Supplement.

 

Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

 

B-1-2

--------------------------------------------------------------------------------

Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof or be valid or obligatory for any purpose.

 

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

 

Dated: June 29, 2005

 

TRUCK RETAIL INSTALMENT PAPER CORP. By:  

 

--------------------------------------------------------------------------------

Name:  

 

--------------------------------------------------------------------------------

Title:  

 

--------------------------------------------------------------------------------

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes designated above and referred to in the
within-mentioned Indenture and Series Supplement.

 

Dated: June 29, 2005

 

THE BANK OF NEW YORK,

not in its individual capacity but solely as

Indenture Trustee

By:  

 

--------------------------------------------------------------------------------

Name:  

 

--------------------------------------------------------------------------------

Title:  

 

--------------------------------------------------------------------------------

 

B-1-3

--------------------------------------------------------------------------------

REVERSE OF NOTE

 

This Note is one of a duly authorized issue of Notes of the Issuer, designated
as its Series 2005-1 Floating Rate Asset Backed Notes, Class B (herein called
the “Class B Notes”), all issued under an Indenture, dated as of October 16,
2000 (as amended and supplemented from time to time, the “Indenture”), between
the Issuer and The Bank of New York, a New York banking corporation, as
indenture trustee (the “Indenture Trustee”, which term includes any successor
trustee under the Indenture) as supplemented by the Series 2005-1 Supplement,
dated as of June 29, 2005, between the Issuer and the Indenture Trustee (the
“Series 2005-1 Supplement”), to which Indenture and Series 2005-1 Supplement
reference is hereby made for a statement of the respective rights and
obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders.
The Class B Notes are one of the duly authorized series of Notes of the Issuer
issued and to be issued from time to time pursuant to the Indenture
(collectively, as to all Notes of all such series, the “Notes”). The Notes are
governed by and subject to all terms of the Indenture (which terms are
incorporated herein and made a part hereof), to which Indenture the Holder of
this Note (and each related Note Owner) by virtue of acceptance hereof (or of
any interest herein) assents and by which such Person is bound. All capitalized
terms used and not otherwise defined in this Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

 

Principal Amount. Upon initial issuance, this Rule 144A Global Note shall have
an initial principal balance equal to the principal balance of the Class B Notes
which were sold to the initial purchasers and initially resold in reliance on
the exemption from registration under the Securities Act provided by Rule 144A.
Such initial principal balance shall be indicated on Schedule 1 to this Rule
144A Global Note. Concurrently with the issuance of this Rule 144A Global ‘Note,
the Issuer will issue another Global Note (the “Temporary Regulation S Global
Note”), the initial principal balance of which shall equal the principal amount
of the Class B Notes which were sold to non-U.S. Persons in reliance on the
exemption from registration under the Securities Act provided by Regulation S.
Under certain circumstances, all or part of the interests in the Temporary
Regulation S Global Note may be exchanged for interests in a permanent Global
Note (the “Permanent Regulation S Global Note” and, together with the Temporary
Regulation S Global Note, the “Regulation S Global Notes”).

 

Upon a transfer in compliance with the requirements of the Indenture by any Note
Owner holding a beneficial interest in this Rule 144A Global Note of all or a
portion of such beneficial interest to a non-U.S. Person who will hold such
beneficial interest through either Regulation S Global Note, the principal
amount represented by such transferred beneficial interest shall cease to be an
interest in this Rule 144A Global Note and shall become an interest in the
applicable Regulation S Global Note. Similarly, upon a transfer in compliance
with the requirements of the Series 2005-1 Supplement by any Note Owner holding
a beneficial interest in a Regulation S Global Note of all or a portion of such
beneficial interest to a Person who will hold such beneficial interest through
this Rule 144A Global Note, the principal amount represented by such transferred
beneficial interest shall cease to be an interest in such Regulation S Global
Note and shall become an interest in this Rule 144A Global Note. In either such
case, the Issuer shall procure that the principal amount of this Rule 144A
Global Note and of the Regulation S Global Note is increased or decreased
appropriately and that the remaining principal balance of this Rule 144A Global
Note is noted on Schedule 1 hereto, whereupon the principal amount of this Rule
144A Global Note shall be as most recently so noted.

 

B-1-4

--------------------------------------------------------------------------------

Subordination. The Class B Holder acknowledges and agrees that its right to
receive payments in respect of this Class B Note are subordinated to the rights
of the Class A Holders as and to the extent described in the Indenture and the
Series 2005-1 Series Supplement.

 

Equally and Ratably Secured. The Class B Notes and all other series of Notes
issued pursuant to the Indenture, except as otherwise provided thereunder, are
and shall be equally and ratably secured by the Collateral as provided in the
Indenture. The sole source of funds for payments on the Class B Notes and any
other series or class of Notes will be the Collateral and the Holders of such
Notes will not otherwise have recourse to the Issuer, Navistar Financial
Corporation, their affiliates or any other person.

 

No Recourse Against Persons in Individual Capacity. Each Holder or Note Owner,
by acceptance of a Note or, in the case of a Note Owner, a beneficial interest
in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee in its
individual capacity, (ii) any direct or indirect owner of the Issuer or (iii)
any partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee in its individual capacity, any director indirect owner of the
Issuer or the Indenture Trustee or of any successor or assign of the Indenture
Trustee in its individual capacity, except as any such Person may have expressly
agreed (it being understood that the Indenture Trustee has no such obligations
in its individual capacity) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for
any unpaid consideration for stock, unpaid capital contribution or failure to
pay any instalment or call owing to such entity.

 

No Petition Covenant. Each Holder or Note Owner, by acceptance of a Note or, in
the case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that by accepting the benefits of the Indenture such Holder will not, prior to
the date which is one year and one day after the termination of such Indenture
with respect to the Issuer, acquiesce, petition or otherwise invoke or cause the
Issuer to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Issuer under any federal
or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Issuer or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Issuer.

 

Tax Characterization. Each Noteholder, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note, unless otherwise required by
appropriate taxing authorities, agrees to treat the Notes as indebtedness
secured by the Collateral for the purpose of federal income taxes, state and
local income and franchise taxes, and any other taxes imposed upon, measured by
or based upon gross or net income.

 

Ownership Treatment. Prior to the due presentment for registration of transfer
of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee

 

B-1-5

--------------------------------------------------------------------------------

may treat the Person in whose name this Note (as of the day of determination or
as of such other date as may be specified in the Indenture) is registered as the
owner hereof for all purposes, whether or not this Note shall be overdue, and
neither the Issuer, the Indenture Trustee nor any such agent shall be affected
by notice to the contrary.

 

Amendments to Indenture. The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Class B Holders under the
Indenture at any time by the Issuer and the Indenture Trustee without the
consent of the Holders of Notes. The Indenture also permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Issuer and the rights of the Class B Holders
under the Indenture at any time by the Issuer with the consent of the Holders of
Notes representing a majority of the principal amount of the outstanding Class B
Notes. The Indenture also contains provisions permitting the Holders of Notes
representing a majority of the principal amount of the outstanding Class B
Notes, on behalf of the Holders of all the Notes, to waive compliance by the
Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder
of this Note (or anyone or more Predecessor Notes) shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof whether or not notation of such consent or waiver is made upon this
Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of the Class
B Holders.

 

Miscellaneous.

 

The Issuer is permitted by the Indenture, under certain circumstances, to merge
or consolidate, subject to the rights of the Indenture Trustee and the Holders
of Notes under the Indenture.

 

The term “Issuer” as used in this Note includes any successor to the Issuer
under the Indenture.

 

The Class B Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

 

This Note and the Indenture shall be construed in accordance with the laws of
the State of Illinois, without reference to its conflict of law provisions, and
the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

 

No reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in
the Basic Documents, neither the Seller, the Servicer nor the Indenture Trustee
in their respective individual capacities, any owner of a beneficial interest in
the Issuer, nor any of their respective

 

B-1-6

--------------------------------------------------------------------------------

partners, beneficiaries, agents, officers, directors, employees or successors or
assigns, shall be personally liable for, nor shall recourse be had to any of
them for, the payment of principal of or interest on, or performance of, or
omission to perform, any of the covenants, obligations or indemnifications
contained in this Note or the Indenture, it being expressly understood that such
covenants, obligations and indemnifications have been made by the Issuer. The
Holder of this Note by the acceptance hereof agrees that, except as expressly
provided in the Basic Documents, in the case of an Event of Default under the
Indenture, the Holder shall have no claim against any of the foregoing for any
deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the
Collateral for any and all liabilities, obligations and undertakings contained
in the Indenture or in this Note. Notwithstanding anything to the contrary
herein, the Issuer shall make the payments required under this Indenture, the
Series Supplements and the Notes from the Collateral.

 

B-1-7

--------------------------------------------------------------------------------

ASSIGNMENT

 

Social Security or taxpayer I.D. or other identifying number of assignee

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

 

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints                     , as attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

 

Dated:

 

Signature Guaranteed:3

 

--------------------------------------------------------------------------------

3 NOTE: The signature to this assignment must correspond with the name of the
registered holder as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

 

B-1-8

--------------------------------------------------------------------------------

Schedule 1

 

Payments and Transfers of Interests to Regulation S Global Note

 

Date of payment,

delivery or

cancellation

--------------------------------------------------------------------------------

 

Principal amount of

rule 144A Global

Note transferred to

Reg. S Global Note

--------------------------------------------------------------------------------

 

Principal amount of

Reg. S Global Note
transferred to Rule

144A Global Note

--------------------------------------------------------------------------------

  

Remaining principal

amount of Rule

144A Global Note

--------------------------------------------------------------------------------

  

Authorized

Signatory

--------------------------------------------------------------------------------

 

B-1-9

--------------------------------------------------------------------------------

EXHIBIT B-2

 

REGISTERED   $                     No. R-l   CUSIP No. U89683AD5

 

[Form of Class B Temporary Regulation S Global Note]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE
RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE U.S. SECURITIES
ACT PROVIDED BY REGULATION S THEREUNDER (“REGULATION S”).

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) THIS NOTE
MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (I) INSIDE THE
UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE U.S. SECURITIES ACT) IN A
TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE UNITED
STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 OF REGULATION S,
OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S.
SECURITIES ACT, AND, IN EACH OF CASES (I) THROUGH (III), IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND (B) THE HOLDER
WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS
NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN CLAUSE (A) ABOVE.

 

SEE REVERSE FOR CERTAIN DEFINITIONS

 

Unless this Note is presented by an authorized representative of The Depository
Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for
registration of transfer, exchange or payment, and any Note issued is registered
in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other
entity as is requested by an authorized representative of DTC, ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE
AMOUNT SHOWN ON THE FACE HEREOF.

 

B-2-1

--------------------------------------------------------------------------------

TRUCK RETAIL INSTALMENT PAPER CORP.

(A Delaware Corporation)

 

SERIES 2005-1 FLOATING RATE ASSET BACKED NOTES, CLASS A

 

Evidencing an indebtedness of the Issuer, the assets of which consists of retail
note receivables and an interest in retail lease receivables (collectively the
“Receivables”) generated from time to time in the ordinary course of business by
Navistar Financial Corporation, a Delaware corporation (“Navistar Financial”),
and its affiliates. This Note (the “Note”) does not represent any interest in,
or recourse obligation of, Navistar Financial or any of its affiliates (other
than the Issuer).

 

Truck Retail Instalment Paper Corp., a Delaware corporation (herein referred to
as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or
registered assigns (the “Noteholder”), the principal sum set forth on Schedule I
to this Note (as maintained as described on the reverse side of this Note), at
the times specified and in the amounts specified in the Indenture (as defined on
the reverse side of this Note) and the Series 2005-1 Supplement; provided that
the entire outstanding principal amount of this Note shall be due and payable on
December 15, 2016 (the “Stated Final Maturity Date”). The Issuer shall pay
interest on this Note on the dates, in. the amounts and in the manner set forth
in the Indenture and the Series 2005-1 Supplement.

 

Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on
the face of this Note.

 

Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse
hereof or be valid or obligatory for any purpose.

 

B-2-2

--------------------------------------------------------------------------------

IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

 

Dated: June 29, 2005   TRUCK RETAIL INSTALMENT PAPER CORP.     By:  

 

--------------------------------------------------------------------------------

    Name:  

 

--------------------------------------------------------------------------------

    Title:  

 

--------------------------------------------------------------------------------

 

INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes designated above and referred to in the
within-mentioned Indenture and Series Supplement.

 

Dated: June 29, 2005   THE BANK OF NEW YORK,    

not in its individual capacity but solely as

Indenture Trustee

    By:  

 

--------------------------------------------------------------------------------

    Name:  

 

--------------------------------------------------------------------------------

    Title:  

 

--------------------------------------------------------------------------------

 

B-2-3

--------------------------------------------------------------------------------

REVERSE OF NOTE

 

This Note is one of a duly authorized issue of Notes of the Issuer, designated
as its Series 2005-1 Floating Rate Asset Backed Notes, Class B (herein called
the “Class B Notes”), all issued under an Indenture, dated as of October 16,
2000 (the “Indenture”), between the Issuer and The Bank of New York, a New York
banking corporation, as indenture trustee (the “Indenture Trustee”, which term
includes any successor trustee under the Indenture) as supplemented by the
Series 2005-1 Supplement, dated as of June 29, 2005, between the Issuer and the
Indenture Trustee (the “Series 2005-1 Supplement”) to which Indenture and Series
2005-1 Supplement reference is hereby made for a statement of the respective
rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Noteholders. The Class B Notes are one of the duly authorized series of Notes of
the Issuer issued and to be issued from time to time pursuant to the Indenture
(collectively, as to all Notes of all such series, the “Notes”). The Notes are
governed by and subject to all terms of the Indenture (which terms are
incorporated herein and made a part hereof), to which Indenture the Holder of
this Note (and each related Note Owner) by virtue of acceptance hereof (or of
any interest herein) assents and by which such Person is bound. All capitalized
terms used and not otherwise defined in this Note that are defined in the
Indenture shall have the meanings assigned to them in or pursuant to the
Indenture.

 

Exchange for Permanent Regulation S Global Note. On or after 40 days after the
date of issue of this Temporary Regulation S Global Note (the “Exchange Date”),
the Issuer shall procure the delivery of a permanent global note (the “Permanent
Regulation S Global Note”), in full or partial exchange for this Temporary
Regulation S Global Note against:

 

(g) presentation and surrender of this Temporary Regulation S Global Note at the
specified office of the Indenture Trustee; and

 

(h) receipt by the Indenture Trustee of a certificate or certificates issued by
each Clearing Agency dated not earlier than the Exchange Date and in
substantially the form set out in Exhibit A-3 to this Temporary Regulation S
Global Note.

 

The principal amount of the Permanent Regulation S Global Note on such date
shall be equal to the aggregate of the principal amounts specified in the
certificates issued by the Clearing Agencies and received by the Indenture
Trustee.

 

Any person who would, but for the provisions of this Temporary Regulation S
Global Note, the Permanent Global Note and the Indenture, otherwise be entitled
to receive a definitive Note or definitive Notes shall not be entitled to
require the exchange of an appropriate part of this Temporary Regulation S
Global Note for a like part of the Permanent Regulation S Global Note unless and
until he shall have delivered or caused to be delivered to Euroclear Bank
S.A./N.V. or Clearstream Banking, société anonyme, Luxembourg, a certificate
substantially in the form of the certificate attached as Exhibit A-4 (copies of
which form of certificate will be available at the offices of Euroclear Bank
S.A./N.V. in Brussels and Clearstream Banking, société anonyme, Luxembourg and
the specified office of each of the Paying Agents).

 

B-2-4

--------------------------------------------------------------------------------

Principal Amount. Upon initial issuance, this Temporary Regulation S Global Note
shall have an initial principal balance equal to the principal balance of the
Class B Notes which were sold to the Initial Purchasers and initially resold in
reliance on the exemption from registration under the Securities Act provided by
Regulation S. Such initial principal balance shall be indicated on Schedule 1 to
this Temporary Regulation S Global Note. Concurrently with the issuance of this
Temporary Regulation S Global Note, the Issuer will issue another Global Note
(the “Rule 144A Global Note”), the initial principal balance of which shall
equal the principal amount of the Class B Notes which were sold to the Initial
Purchasers and initially resold in reliance on the exemption from registration
under the Securities Act provided by Rule 144A.

 

Upon a transfer in compliance with the requirements of the Indenture by any Note
Owner holding a beneficial interest in this Temporary Regulation S Global Note
of all or a portion of such beneficial interest to a Person who will hold such
beneficial interest through the Rule 144A Global Note, the principal amount
represented by such transferred beneficial interest shall cease to be an
interest in this Temporary Regulation S Global Note and shall become an interest
in the Rule 144A Global Note. Similarly, upon a transfer in compliance with the
requirements of the Series 2005-1 Supplement by any Note Owner holding a
beneficial interest in the Rule 144A Global Note of all or a portion of such
beneficial interest to a non-U.S. Person who will hold such beneficial interest
through this Temporary Regulation S Global Note, the principal amount
represented by such transferred beneficial interest shall cease to be an
interest in the Rule 144A Global Note and shall become an interest in this
Temporary Regulation S Global Note. In either such case, the Issuer shall
procure that the principal amount of this Temporary Regulation S Global Note and
of the Rule 144A Global Note is increased or decreased appropriately and that
the remaining principal balance of this Temporary Regulation S Global Note is
noted on Schedule 1 hereto, whereupon the principal amount of this Temporary
Regulation S Global Note shall be as most recently so noted.

 

Subordination. The Class B Holder acknowledges and agrees that its right to
receive payments in respect of this Class B Note are subordinated to the rights
of the Class A Holders as and to the extent described in the Indenture and the
Series 2005-1 Series Supplement.

 

Equally and Ratably Secured. The Class B Notes and all other Notes issued
pursuant to the Indenture, except as otherwise provided thereunder, are and
shall be equally and ratably secured by the Collateral pledged as security
therefor as provided in the Indenture. The sole source of funds for payments on
the Class B Notes and any other series or class of Notes will be the Collateral
and the Holders of such Notes will not otherwise have recourse to the Issuer,
Navistar Financial Corporation, their affiliates or any other person.

 

No Recourse Against Persons in Individual Capacity. Each Holder or Note Owner,
by acceptance of a Note or, in the case of a Note Owner, a beneficial interest
in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing
delivered in connection therewith, against (i) the Indenture Trustee in its
individual capacity, (ii) any direct or indirect owner of the Issuer or (iii)
any partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee in its individual capacity, any direct

 

B-2-5

--------------------------------------------------------------------------------

or indirect owner of the Issuer or the Indenture Trustee or of any successor or
assign of the Indenture Trustee in its individual capacity, except as any such
Person may have expressly agreed (it being understood that the Indenture Trustee
has no such obligations in its individual capacity) and except that any such
partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any instalment or call owing to such entity.

 

No Petition Covenant. Each Holder or Note Owner, by acceptance of a Note or, in
the case of a Note Owner, a beneficial interest in a Note, covenants and agrees
that by accepting the benefits of the Indenture such Holder will not, prior to
the date which is one year and one day after the termination of such Indenture
with respect to the Issuer, acquiesce, petition or otherwise invoke or cause the
Issuer to invoke the process of any court or government authority for the
purpose of commencing or sustaining a case against the Issuer under any federal
or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of the Issuer or any substantial part of its property, or ordering the winding
up or liquidation of the affairs of the Issuer.

 

Tax Characterization. Each Noteholder, by acceptance of a Note or, in the case
of a Note Owner, a beneficial interest in a Note; unless otherwise required by
appropriate taxing authorities, agrees to treat the Notes as indebtedness
secured by the Collateral for the purpose of federal income taxes, state and
local income and franchise taxes, and any other taxes imposed upon, measured by
or based upon gross or net income.

 

Ownership Treatment. Prior to the due presentment for registration of transfer
of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or
the Indenture Trustee may treat the Person in whose name this Note (as of the
day of determination or as of such other date as may be specified in the
Indenture) is registered as the owner hereof for all purposes, whether or not
this Note shall be overdue, and neither the Issuer, the Indenture Trustee nor
any such agent shall be affected by notice to the contrary.

 

Amendments to Indenture. The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Issuer and the rights of the Class B Holders under the
Indenture at any time by the Issuer and the Indenture Trustee without the
consent of the Holders of Notes. The Indenture also permits, with certain
exceptions as therein provided, the amendment thereof and the modification of
the rights and obligations of the Issuer and the rights of the Class B Holders
under the Indenture at any time by the Issuer with the consent of the Holders of
Notes representing a majority of the principal amount of the outstanding Class B
Notes. The Indenture also contains provisions permitting the Holders of Notes
representing a majority of the principal amount of the outstanding Class B
Notes, on behalf of the Holders of all the Notes, to waive compliance by the
Issuer with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder
of this Note (or anyone or more Predecessor Notes) shall be conclusive and
binding upon such Holder and upon all future Holders of this Note and of any
Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof whether or not notation of such consent or waiver is made upon this
Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of the Class
B Holders.

 

B-2-6

--------------------------------------------------------------------------------

Miscellaneous.

 

The Issuer is permitted by the Indenture, under certain circumstances, to merge
or consolidate, subject to the rights of the Indenture Trustee and the Holders
of Notes under the Indenture.

 

The term “Issuer” as used in this Note includes any successor to the Issuer
under the Indenture.

 

The Class B Notes are issuable only in registered form in denominations as
provided in the Indenture, subject to certain limitations therein set forth.

 

This Note and the Indenture shall be construed in accordance with the laws of
the State of Illinois, without reference to its conflict of law provisions, and
the obligations, rights and remedies of the parties hereunder and thereunder
shall be determined in accordance with such laws.

 

No reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Issuer, which is absolute
and unconditional, to pay the principal of and interest on this Note at the
times, place and rate, and in the coin or currency herein prescribed.

 

Anything herein to the contrary notwithstanding, except as expressly provided in
the Basic Documents, neither the Seller, the Servicer nor the Indenture Trustee
in their respective individual capacities, any owner of a beneficial interest in
the Issuer, nor any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns, shall be personally
liable for, nor shall recourse be had to any of them for, the payment of
principal of or interest on, or performance of, or omission to perform, any of
the covenants, obligations or indemnifications contained in this Note or the
Indenture, it being expressly understood that such covenants, obligations and
indemnifications have been made by the Issuer. The Holder of this Note by the
acceptance hereof agrees that, except as expressly provided in the Basic
Documents, in the case of an Event of Default under the Indenture, the Holder
shall have no claim against any of the foregoing for any deficiency, loss or
claim therefrom; provided, however, that nothing contained herein shall be taken
to prevent recourse to, and enforcement against, the Collateral for any and all
liabilities, obligations and undertakings contained in the Indenture or in this
Note. Notwithstanding anything to the contrary herein, the Issuer shall make the
payments required under this Indenture, the Series Supplements and the Notes
from the Collateral.

 

B-2-7

--------------------------------------------------------------------------------

ASSIGNMENT

 

Social Security or taxpayer J.D. or other identifying number of assignee

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto

 

(name and address of assignee)

 

the within Note and all rights thereunder, and hereby irrevocably constitutes
and appoints                     , as attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the
premises.

 

Dated:

 

Signature Guaranteed:4

 

--------------------------------------------------------------------------------

4 NOTE: The signature to this assignment must correspond with the name of the
registered holder as it appears on the face of the within Note in every
particular, without alteration, enlargement or any change whatsoever.

 

B-2-8

--------------------------------------------------------------------------------

EXHIBIT B-3

 

[Form of Euroclear/Clearstream Certification]

 

Truck Retail Instalment Paper Corp.

 

Series 2005-1 Floating Rate Asset Backed Notes, Class B

 

This is to certify that, based solely on certifications we have received in
writing, by tested telex or by electronic transmission from member organizations
appearing in our records as persons being entitled to a portion of the principal
amount set forth below (our “Member Organizations”) substantially to the effect
set forth in the Temporary Regulation S Global Note issued in respect of the
Notes, as of the date hereof, $                     principal amount of the
above-captioned Notes (which are Notes of the category contemplated in Section
230.903(b)(3) of Regulation S under the United States Securities Act of 1933, as
amended (the “Securities Act”)), certifications that the Notes are beneficially
owned by non-U.S. person(s). As used in this paragraph the term “U.S. person”
has the meaning given to it in Rule 902(k) of Regulation S under the Securities
Act. As used herein, “United States” means the United States of America
(including the States and the District of Columbia); and its “possessions”
include Puerto Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island
and the Northern Mariana Islands.

 

We further certify (i) that we are not making available herewith for exchange
(or, if relevant, exercise of any rights or collection of any interest) any
portion of the Temporary Regulation S Global Note excepted in such
certifications and (ii) that as of the date hereof we have not received any
notification from any of our Member Organizations to the effect that the
statements made by such Member Organizations with respect to any portion of the
part submitted herewith for exchange (or, if relevant, exercise of any rights or
collection of any interest) are no longer true and cannot be relied upon as of
the date hereof.

 

B-3-1

--------------------------------------------------------------------------------

We understand that this certification is required in connection with certain
securities laws of the United States. In connection therewith, if administrative
or legal proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification to any interested party in such proceedings.

 

Dated: [                    ]

 

Euroclear Bank S.A./N.V., as operator of the Euroclear System or Clearstream
Banking, société anonyme, Luxembourg By:  

 

--------------------------------------------------------------------------------

Name:  

 

--------------------------------------------------------------------------------

Title:  

 

--------------------------------------------------------------------------------

 

B-3-2

--------------------------------------------------------------------------------

EXHIBIT B-4

 

Truck Retail Instalment Paper Corp.

 

Series 2005-1 Floating Rate Asset Backed Notes, Class B

(the “Notes”)

 

This is to certify that as of the date hereof, and except as set forth below,
the above-captioned Notes held by you for our account (which Notes are of the
category contemplated in Section 230.903(b)(3) of Regulation S under the U.S.
Securities Act of 1933, as amended (the “Act”)), are beneficially owned by (a)
non-U.S. person(s) or (b) U.S. person(s) who purchased the Notes in transactions
meeting the requirements of Section 230.904 of Regulation S or which otherwise
did not require registration under the Act. As used in this paragraph, the term
“U.S. person” has the meaning given to it by Regulation S under the Act.

 

As used herein, “United States” means the United States of America (including
the States and the District of Columbia); and its “possessions” include Puerto
Rico, the U.S. Virgin Islands, Guam, American Samoa, Wake Island and the
Northern Mariana Islands.

 

We undertake to advise you promptly by tested telex on or prior to the date on
which you intend to submit your certification relating to the Notes held by you
for our account in accordance with your operating procedures if any applicable
statement herein is not correct on such date, an in the absence of any such
notification it may be assumed that this certification applies as of such date.

 

This certification excepts and does not relate to $                     of such
interest in the above Notes in respect of which we are not able to certify and
as to which we understand exchange and delivery of definitive Notes (or, if
relevant, exercise of any rights or collection of any interest) cannot be made
until we do so certify.

 

We understand that this certification is required in connection with certain
securities laws of the United States. In connection therewith, if administrative
or legal proceedings are commenced or threatened in connection with which this
certification is or would be relevant, we irrevocably authorize you to produce
this certification to any interested party in such proceedings.

 

Dated:

 

By:  

 

--------------------------------------------------------------------------------

[Name of person giving certification]

(As, or as agent for, the beneficial owner(s) of the Notes to which this
certification relates)

 

B-4-1

--------------------------------------------------------------------------------

Schedule 1

 

Date of payment,
delivery or

cancellation

--------------------------------------------------------------------------------

 

Principal amount

of Temp. Reg. S

Global Note

exchanged for a

like part of

Permanent Reg. S

Global Note

--------------------------------------------------------------------------------

 

Principal amount

of Rule 144A

Global Note

transferred to

Temp. Reg. S

Global Note

--------------------------------------------------------------------------------

 

Principal Amount

of Temp. Reg. S

Global Note

transferred to

Rule 144A

Global Note

--------------------------------------------------------------------------------

 

Remaining

principal amount

of this Temp.

Reg. S

Global Note

--------------------------------------------------------------------------------

 

Authorized

Signatory

--------------------------------------------------------------------------------

 

B-4-2

--------------------------------------------------------------------------------

Exhibit C

 

Form of TRIP Series 2005-1

Monthly Report to Noteholders

 

For the Monthly Period ending                           

Payment Date is                                                      

 

I.

   Payments to Class A Noteholders on the Payment Date                Class A
Note Rate for the Payment Date         %      Interest payable to Class A
Noteholders    $                  

(Per $1000 Outstanding Class A Note principal balance)

        $      Principal payable to Class A Noteholders    $                  

(Per $1000 Outstanding Class A note principal balance)

        $      Total Amount payable to Class A Noteholders    $               
  

(Per $1000 Outstanding Class A Note principal balance)

        $      Remaining principal balance of Class A Notes after Distributions
        $

II.

   Payments to Class B Noteholders on the Payment Date                Class B
Note Rate for the Payment Date         %      Interest payable to Class B
Noteholders    $                  

(Per $1000 Outstanding Class B note principal balance)

        $      Principal payable to Class B Noteholders    $                  

(Per $1000 Outstanding Class B note principal balance)

        $      Total Amount payable to Class B Noteholders    $               
  

(Per $1000 Outstanding Class B note principal balance)

        $      Remaining principal balance of Class B Notes after Distributions
        $

III.

   Collections:                Collections Received during the Monthly Period   
$                   Monthly Advances made by the Servicer    $                  
Warranty Purchase Payments    $                   Administrative Purchase
Payments    $                   Investment Earnings:               

Collection Acct. Income

   $                  

Excess Funding Acct. Inc.

   $             

 

C-1

--------------------------------------------------------------------------------

    

Series 2005-1 Loss Reserve Acct. Inc.

   $                  

Series 200-1 Int. Reserve Acct. Inc.

   $                  

Series 200-1 Note Dist. Acct. Inc.

   $                  

Hedge Receipts

   $                   Total Collected Amount for the Monthly Period   
$             

IV.

   Servicing Fee                Basic Servicing Fee    $                  
Supplemental Servicing Fee    $                   Total Servicing Fee   
$             

V.

   Available Amount                Total Collected Amount    $                  
Less:     Total Servicing Fee Due Servicer    $                  

     Reimbursement of Outstanding Monthly Advances

   $                  

     Reimbursement of Liquidation Expenses

   $                   Total Available Amount    $             

VI.

   Series Allocable Amount                Series 2005-1 Allocation Percentage   
$                   Total Available Amount    $                   Series
Allocable Amount - Series 2005-1    $             

VII.

   Funds Available for Distribution                Series 2005-1 Allocable
Amount    $                   Withdrawal from Interest Reserve Account   
$                   Withdrawal from Loss Reserve Account    $                  
Excess Collections from other Series    $                   EFA Allocable Amount
   $                   Total Funds Available for Distribution    $             

VIII.

   Series Aggregate Discounted Asset Balance                Series 2005-1
Allocation Percentage    $                   Aggregate Discounted Asset Balance
   $                   Series 2005-1 Aggregate Discounted Asset Balance   
$             

IX.

   Prior Month’s Ending Balance (or Initial Deposit)    $                  
Plus: Monthly Investment Earnings    $             

 

C-2

--------------------------------------------------------------------------------

    

Amounts Transferred to/<from> Loss Reserve Account

   $                   Loss Reserve Balance    $                   Series 2005-1
Specified Loss Reserve Balance    $                   Deposit to/<Release from
Loss Reserve Account    $                   Series 2005-1 Loss Reserve Account
Ending Balance    $             

X.

   Series 2005-1 Interest Reserve Account                Prior Month’s Ending
Balance (or Initial Deposit)    $                   Plus:     Monthly Investment
Earnings    $                  

    Amounts Transferred to/<from Interest Reserve Account

   $                   Interest Reserve Balance    $                   Series
2005-1 Specified Interest Reserve Balance    $                   Deposit
to/<Release from> Interest Reserve Account    $                   Series 2005-1
Interest Reserve Account Ending Balance    $             

XI.

   Combined Three Month Loss Percentage                Combined Net Losses —
Prior 3 Months    $                   Three Month Liquidations Less 3 Month Net
Losses    $                   Combined Three Month Loss Percentage         %

XII.

   Combined Twelve Month Loss Percentage                Combined Net Losses —
Prior 12 Months    $                   Twelve Month Liquidations Less 12 Month
Net Losses    $                   Combined Twelve Month Loss Percentage        
%

XIII.

   NSP Delinquency Percentage                Agg. Contract Value - NSP
Receivables 61 days or more past due    $                   Aggregate Contract
Value of NSP Receivables    $                   NSP Delinquency Percentage     
   %

XIX.

   (Section Completed During Aged Pool Period Only)                Issuer Net
Loss Percentage         %      Issuer Delinquency Percentage         %

 

C-3

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Navistar Financial Corporation, as Servicer Name:  

 

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Title:  

 

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C-4

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Exhibit D

 

Form of Supplement No. 3 to Indenture

 

D-1

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SCHEDULE 1

 

SERIES 2005-1 ACCOUNTS

 

Series 2005-1 Note Distribution Account

 

The Bank of New York

ABA:

Account Number: 365115

Attn: Mr. Jonathan Farber

 

Series 2005-1 Interest Reserve Account

 

The Bank of New York

Account Number: 365117

Attn: Mr. Jonathan Farber

 

Series 2005-1 Loss Reserve Account

 

The Bank of New York

Account Number: 365116

Attn: Mr. Jonathan Farber

 

Excess Funding Account

 

The Bank of New York

Account Number: 266079

Attn: Mr. Jonathan Farber

 

Collection Account

 

The Bank of New York

Account Number: 266080

Attn: Mr. Jonathan Farber

 

Schedule 1-1