Note Purchase Agreement



 Exhibit 10.1 
 EXECUTION COPY 
 NOTE PURCHASE AGREEMENT 
 dated as of 
 November 28, 2007 
 among 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION, 
 as Seller 
 CAFCO,
LLC and CRC FUNDING, LLC, 
 as Conduit Investors 
 CITIBANK, N.A., 
 as Committed Investor 
 CITICORP NORTH AMERICA, INC., 
 as Agent for the Investors 
 and 
 NAVISTAR FINANCIAL CORPORATION,

 Individually and as Servicer 
 NAVISTAR FINANCIAL 2007-C OWNER TRUST, 
 Series 2007-C Floating Rate Asset Backed Notes 







 TABLE OF CONTENTS 
  


									
	 	 	 	 	 	 	 	  	Page
	ARTICLE I	 	Definitions	  	1
					
		 	SECTION	 	1.01.	 	 Defined Terms
	  	1
					
		 	SECTION	 	1.02.	 	 Terms Generally
	  	10
					
		 	SECTION	 	1.03.	 	 Computation of Time Periods
	  	10
			
	ARTICLE II	 	Purchase of the Purchased Note	  	10
					
		 	SECTION	 	2.01.	 	 Purchase of the Purchased Note
	  	10
					
		 	SECTION	 	2.02.	 	 The Note; Etc.
	  	11
					
		 	SECTION	 	2.03.	 	 Calculation of Interest; Etc.
	  	11
					
		 	SECTION	 	2.04.	 	 Sharing of Payments, Etc.
	  	12
			
	ARTICLE III	 	Representations and Warranties	  	13
					
		 	SECTION	 	3.01.	 	 Representation and Warranties
	  	13
			
	ARTICLE IV	 	Conditions	  	18
					
		 	SECTION	 	4.01.	 	 Conditions Precedent
	  	18
			
	ARTICLE V	 	Covenants of the Seller and Servicer	  	19
					
		 	SECTION	 	5.01.	 	 Access
	  	19
					
		 	SECTION	 	5.02.	 	 Information from NFC
	  	20
					
		 	SECTION	 	5.03.	 	 Security Interests; Further Assurances
	  	21
					
		 	SECTION	 	5.04.	 	 Conduct of Business
	  	21
					
		 	SECTION	 	5.05.	 	 Compliance with Laws
	  	21
					
		 	SECTION	 	5.06.	 	 Replacement of Trustee
	  	21
					
		 	SECTION	 	5.07.	 	 Compliance with Opinion Assumptions
	  	21
					
		 	SECTION	 	5.08.	 	 Further Covenants
	  	21
					
		 	SECTION	 	5.09.	 	 Amendments
	  	21
			
	ARTICLE VI	 	Indemnification	  	22
					
		 	SECTION	 	6.01.	 	 Indemnities by the Seller, NFC and the Servicer
	  	22
					
		 	SECTION	 	6.02.	 	 Increased Cost and Reduced Return
	  	22
					
		 	SECTION	 	6.03.	 	 Other Costs and Expenses
	  	23
			
	ARTICLE VII	 	The Agent	  	24
					
		 	SECTION	 	7.01.	 	 Authorization and Action
	  	24

  

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 TABLE OF CONTENTS 
 (continued) 
  

									
	 	 	 	 	 	 	 	  	Page
		 	SECTION	 	7.02.	 	 Delegation of Duties
	  	24
					
		 	SECTION	 	7.03.	 	 Liability of Agent
	  	24
					
		 	SECTION	 	7.04.	 	 Reliance by Agent
	  	25
					
		 	SECTION	 	7.05.	 	 Notice of Event of Default
	  	25
					
		 	SECTION	 	7.06.	 	 Credit Decision; Disclosure of Information by the Agent
	  	25
					
		 	SECTION	 	7.07.	 	 Indemnification of the Agent
	  	26
					
		 	SECTION	 	7.08.	 	 Agent in Individual Capacity
	  	26
					
		 	SECTION	 	7.09.	 	 Resignation of Agent
	  	27
					
		 	SECTION	 	7.10.	 	 Payments by the Agent
	  	27
			
	ARTICLE VIII	 	Miscellaneous	  	27
					
		 	SECTION	 	8.01.	 	 Assignment
	  	27
					
		 	SECTION	 	8.02.	 	 Notices
	  	29
					
		 	SECTION	 	8.03.	 	 Waivers; Amendments
	  	29
					
		 	SECTION	 	8.04.	 	 Survival
	  	30
					
		 	SECTION	 	8.05.	 	 Counterparts; Integration; Effectiveness
	  	30
					
		 	SECTION	 	8.06.	 	 Severability
	  	30
					
		 	SECTION	 	8.07.	 	 Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial Right
	  	31
					
		 	SECTION	 	8.08.	 	 No Bankruptcy Petition Against the Conduit Investors
	  	31
					
		 	SECTION	 	8.09.	 	 Benefits of Indenture
	  	31
					
		 	SECTION	 	8.10.	 	 Headings
	  	31
					
		 	SECTION	 	8.11.	 	 No Recourse Against Conduit Investors, Members, Officers or Directors
	  	31
					
		 	SECTION	 	8.12.	 	 Waiver of Confidentiality
	  	32
					
		 	SECTION	 	8.13.	 	 Confidentiality Agreement
	  	32
					
		 	SECTION	 	8.14.	 	 Excess Funds
	  	32
					
		 	SECTION	 	8.15.	 	 Limitation of Liability
	  	33

  

							
	EXHIBITS
		
	Exhibit A -	 	Documents to be Delivered to the Agent on or before the Closing Date
	Exhibit B -	 	Form of Notice of Funding

  

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 NOTE PURCHASE AGREEMENT dated as of November 28, 2007 (as amended, supplemented or otherwise
modified from time to time, the “Agreement”), among: 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION, a Delaware
corporation, as Seller (the “Seller”); 
 CAFCO, LLC and CRC FUNDING LLC, each a Delaware limited liability company, as
initial Conduit Investors (as defined below); 
 CITIBANK, N.A., a national banking association, as Committed Investor (the
“Committed Investor”); 
 CITICORP NORTH AMERICA, INC., a Delaware corporation (“CNAI”), as Agent for the
Investors; and 
 NAVISTAR FINANCIAL CORPORATION, a Delaware corporation, individually (“NFC”) and as Servicer (together
with its successors and assigns, the “Servicer”). 
 RECITALS 
 WHEREAS, the Trust and the Indenture Trustee are party to an Indenture dated as of November 28, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Indenture”), pursuant to which the Seller has authorized the issuance of the Series 2007-C Floating Rate Asset Backed Note (the “Note”); and 
 WHEREAS, on the Closing Date, the Seller intends to sell the Purchased Note to the Agent for the benefit of the Conduit Investors and the other Investors
and the Conduit Investors and the other Investors desire to acquire the Purchased Note. 
 Accordingly, the parties hereto agree as follows:

 ARTICLE I 
 Definitions 

 SECTION 1.01. Defined Terms. Terms used herein but not otherwise defined herein have the respective meanings given to such terms in
Part I of Appendix A to the Pooling Agreement, dated as of November 28, 2007 (the “Pooling Agreement”), between NFRRC (as defined below) and the Issuer, as amended, restated, supplemented or otherwise modified from time to
time. As used in this Agreement, the following terms have the meanings specified below: 
 “Agent” means CNAI in its capacity
as agent for the Investors, and its successors and assigns appointed pursuant to Section 7.09. 
 “Agent-Related
Person” means the Agent, together with its Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such Persons and their respective Affiliates. 







 “Agreement” is defined in the preamble. 
 “Alternate Rate” for any Fixed Period for any Funding Tranche means an interest rate per annum equal to the sum of (x) Applicable
Margin per annum and (y) the Eurodollar Rate for such Fixed Period; provided, however, that in the case of: 
 (i) any Fixed Period existing on or after the first day of which the Agent shall have been notified by any Conduit Investor, the Committed Investor or any Program Support Provider that: 
 (w) the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other
Governmental Authority asserts that it is unlawful, for such Conduit Investor, the Committed Investor or such Program Support Provider to fund any Funding Tranche (based on the Eurodollar Rate) set forth above (and such Conduit Investor, the
Committed Investor or such Program Support Provider shall not have subsequently notified the Agent that such circumstances no longer exist), 
 (x) U.S. dollar deposits in the London interbank market in the relevant amounts and for the relevant portion of such Fixed Period are not available, 
 (y) adequate and reasonable means do not exist for ascertaining LIBOR for such Fixed Period, or 
 (z) LIBOR does not accurately reflect the cost to such Conduit Investor, the Committed Investor or such Program Support Provider (as
conclusively determined by such Conduit Investor, the Committed Investor or such Program Support Provider (or by the Agent on its behalf)) of maintaining the applicable Funding Tranche during such Fixed Period; 
 (ii) any Fixed Period of one to (and including) 13 days, 
 (iii) any Fixed Period relating to a Funding Tranche which is less than $1,000,000, or 
 (iv) any Fixed Period with respect to which the Alternate Rate, for any reason, becomes applicable on notice to the Agent of less than
three (3) Business Days, 
 the “Alternate Rate” for each such Fixed Period shall be an interest rate per annum equal
to the Corporate Base Rate in effect on each day of such Fixed Period. The “Alternate Rate” for any day on or after the occurrence of an Event of Default shall be an interest rate equal to 2.0% per annum above the
Corporate Base Rate in effect on such day. 
 “Applicable Margin” has the meaning specified in the Fee Letter. 

“Assignee Rating Criteria” means a short term debt rating of “A-1” or higher from Standard & Poor’s,
“P-1” from Moody’s and, if applicable, “F-1” or higher from Fitch. 
  

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 “Bankruptcy Code” means the Bankruptcy Reform Act of 1978, 11 U.S.C.
§§ 101 et seq. 
 “Breakage Payment” is defined in Section 2.03(b). 
 “Commission” is defined in Section 3.01(c). 
 “Committed Investor” means, if applicable, each bank or financial institution designated as such with respect to a particular Conduit Investor on the signature pages hereto (or on any assignment or
similar agreement pursuant to which such Person becomes a party hereto as a Committed Investor). 
 “Conduit Assignee” means
any commercial paper conduit administered by CNAI or any of its Affiliates and designated by CNAI from time to time to accept an assignment from any Conduit Investor of all or a portion of its rights and obligations hereunder. 
 “Conduit Investors” means, initially, CAFCO, LLC and CRC FUNDING, LLC, together with their successors and assigns, including any of
their Conduit Assignees. A “Conduit Investor” may include one or more commercial paper conduits as long as such commercial paper conduits are either (i) Affiliates of one another or (ii) administered by the same Person or its
Affiliates. If a “Conduit Investor” consists of more than one commercial paper conduit, each such commercial paper conduit will have the rights and obligations with respect to the Note as may be determined between them from time to time.

 “Corporate Base Rate” means, for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds
Rate for such day, plus 0.50% and (b) the rate of interest in effect for such day as publicly announced from time to time by the Agent as its “prime rate”. The “prime rate” is a rate set by the Agent based upon
various factors including the Agent’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in
the prime rate announced by the Agent shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Corporate Services Provider” is defined in Section 8.11. 
 “Day Count Fraction”
means, as to any Funding Tranche for any Fixed Period, a fraction (a) the numerator of which is the number of days in such Fixed Period and (b) the denominator of which is 360 (or, with respect to any Funding Tranche which accrues interest
by reference to the Corporate Base Rate, the actual number of days in the related calendar year). 
 “Distribution Period”
means, initially, the period from, and including, the Closing Date to, but excluding, the first Distribution Date and thereafter the period from, and including, each Distribution Date to, but excluding, the next Distribution Date. 
 “Distribution Date” is defined in the Pooling Agreement. 
 “Eurodollar Rate” means, for any Fixed Period, an interest rate per annum (rounded upward to the nearest 1/1000th of 1%) determined pursuant to the following formula: 
  

							
	Eurodollar Rate =	 	 LIBOR
	  		  	
		 	1.00 - Eurodollar Reserve Percentage	  		  	

  

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 Where, 
 “Eurodollar Reserve Percentage” means, for any Fixed Period, the maximum reserve percentage (expressed as a decimal, rounded upward to the nearest 1/1000th of 1%) in effect on the date LIBOR for such
Fixed Period is determined under regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to
Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) having a term comparable to such Fixed Period; and 
 “LIBOR” means the rate per annum equal to the applicable British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters Screen FRBD as of 11:00 a.m. (London time) on the second
Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed Period, provided that, (i) if Reuters Screen FRBD is not available to the Agent for any
reason, LIBOR for such Fixed Period shall instead be the applicable British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars as reported by any other generally recognized financial information service as of 11:00 a.m.
(London time) on the second Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed Period, and (ii) if no such British Bankers’ Association
Interest Settlement Rate is available to the Agent, LIBOR for such Fixed period shall instead be the rate determined by the Agent to be the rate at which the Agent offers to place deposits in U.S. dollars with first-class banks in the London
interbank market at approximately 11:00 a.m. (London time) on the second Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed period. 
 “Event of Bankruptcy” means, with respect to any Person, (a) that such Person (i) shall generally not pay its debts as such
debts become due or (ii) shall admit in writing its inability to pay its debts generally or (iii) shall make a general assignment for the benefit of creditors; (b) any proceeding shall be instituted by or against such Person seeking
to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it or any substantial part of its property; or (c) such Person shall take any corporate, partnership or other
similar appropriate action to authorize any of the actions set forth in the preceding clauses (a) or (b) . 
 “Facility Termination Date” means November 26, 2008, as such date may be extended from time to time with the prior written consent, and in the sole discretion of, the Agent. 
  

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 “Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve
Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so
published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to the Agent on such day on such transactions as
determined by it. 
 “Fee Letter” means the agreement, dated as of the Closing Date, among the Seller, the Servicer and the
Agent. 
 “Fitch” means Fitch, Inc. and its successors in interest. 
 “Fixed Period” means, unless otherwise mutually agreed by the Agent and the Conduit Investors, (a) with respect to any Funding
Tranche funded by the issuance of Promissory Notes, (i) initially the period commencing on (and including) the date of the initial purchase or funding of such Funding Tranche and ending on (and including) the last day of the current calendar
month, and (ii) thereafter, each period commencing on (and including) the first day after the last day of the immediately preceding Fixed Period for such Funding Tranche and ending on (and including) the last day of the current calendar month
and (b) with respect to any Funding Tranche not funded by the issuance of Promissory Notes, (i) initially the period commencing on (and including) the date of the initial purchase or funding of such Funding Tranche and ending on (but
excluding) the next following Distribution Date and (ii) thereafter, each period commencing on (and including) the first day after the last day of the immediately preceding Fixed Period for such Funding Tranche and ending on (and excluding) the
next following Distribution Date; provided, that 
 (i) any Fixed Period with respect to any Funding Tranche not funded
by the issuance of Promissory Notes which would otherwise end on a day which is not a Business Day shall be extended to the next succeeding Business Day; provided, however, if interest in respect of such Fixed Period is computed by
reference to the Eurodollar Rate, and such Fixed Period would otherwise end on a day which is not a Business Day, and there is no subsequent Business Day in the same calendar month as such day, such Fixed Period shall end on the next preceding
Business Day; 
 (ii) in the case of any Fixed Period for any Funding Tranche which commences before the Final Scheduled
Distribution Date and would otherwise end on a date occurring after the Final Scheduled Distribution Date, such Fixed Period shall end on such Final Scheduled Distribution Date and the duration of each Fixed Period which commences on or after the
Final Scheduled Distribution Date shall be of such duration as shall be selected by the Agent; and 
 (iii) any Fixed Period
in respect of which interest is computed by reference to the Promissory Note Rate may be terminated at the election of, and upon notice thereof to the Seller by, the Agent any time, in which case the Funding Tranche allocated to such terminated
Fixed Period shall be allocated to a new Fixed Period commencing on (and including) the date of such termination and ending on (but excluding) the next following Distribution Date, and shall accrue interest at the Corporate Base Rate. 
  

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 “Funded Amount” means on any Business Day, an amount equal to the result of (a) the
Initial Invested Amount, plus (b) any Subsequent Invested Amount of any Incremental Funding, minus (c) the aggregate principal amount of principal payments made to the Noteholder prior to such day; provided, that the
Funded Amount shall be restored or reinstated to the extent any such principal payment so received and applied is at any time rescinded, returned or refunded for any reason. 
 “Funding Date” means, each date on which an advance or a funding is made hereunder by any Investor in respect of the Note. 

“Funding Limit” means with respect to any Investor, the amount set forth with respect to such Investor on the signature pages hereto
or on any assignment agreement or similar document pursuant to which such Person became a party hereto as an Investor. 
 “Funding
Period Expiration Date” means March 18, 2008. 
 “Funding Rate” means, with respect to any Fixed Period and
any Funding Tranche, (a) to the extent a Conduit Investor is funding such Funding Tranche during such Fixed Period through the issuance of Promissory Notes, the Promissory Note Rate, and (b) to the extent any Investor is not funding such
Funding Tranche through the issuance of Promissory Notes, a rate per annum (expressed as a percentage and an interest yield equivalent and calculated on the basis of a 360-day year and the actual days elapsed) equal to the Alternate Rate.

 “Funding Tranche” means, any time, each portion of the Funded Amount allocated to the same Fixed Period and accruing
interest by reference to the same Funding Rate at such time. 
 “Governmental Actions” means any and all consents,
approvals, permits, orders, authorizations, waivers, exceptions, variances, exemptions or licenses of, or registrations, declarations or filings with, any Governmental Authority required under any Governmental Rules. 
 “Governmental Authority” means the United States of America, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and having jurisdiction over the applicable Person. 
 “Governmental Rules” means any and all laws, statutes, codes, rules, regulations, ordinances, orders, writs, decrees and injunctions, of any Governmental Authority and any and all legally binding
conditions, standards, prohibitions, requirements and judgments of any Governmental Authority. 
 “Incremental Funding”
means all loans or advances made hereunder from time to time on any Funding Date following the Closing Date. 
 “Indemnified
Amounts” has the meaning specified in Section 6.01. 
  

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 “Indemnified Parties” has the meaning specified in Section 6.01. 

“Indenture” is defined in the first paragraph of the recitals. 
 “Indenture Trustee” is defined in the Indenture. 
 “Initial Invested Amount” means $387,366,325.06. 
 “Investors” means the
Conduit Investors, the Committed Investor and/or the Program Support Providers, as the context may require. 
 “Issuer” or
“Trust” means Navistar Financial 2007-C Owner Trust, a Delaware statutory trust. 
 “Material Adverse
Effect” means a material adverse effect on (i) the business, assets or financial condition of NFC or NFRRC, (ii) the ability of NFC or NFRRC to perform its obligations hereunder or under any other Transaction Document or
(iii) the interests of the Agent or any Investor hereunder and under the other Transaction Documents. 
 “Maximum Net
Investment” means $500,000,000. 
 “Moody’s” means Moody’s Investors Service, Inc., or any successor that
is a nationally recognized statistical rating organization. 
 “NFC” is defined in the preamble. 
 “NFRRC” means Navistar Financial Retail Receivables Corporation, a Delaware corporation, and its successors and permitted assigns.

 “Note” is defined in the first paragraph of the recitals. 
 “Noteholders’ Interest Distributable Amount” means, with respect to any Distribution Date, the sum of: 
 (A) the sum of (i) the summation of the amount of interest accrued on each day during the related Monthly Period on each Funding Tranche funded at
the Promissory Note Rate, determined by multiplying (a) the applicable Funding Rate on such day times (b) the Funded Amount for such Funding Tranche on such day divided by (c) 360 and (ii) any Noteholders’
Interest Distributable Amount calculated in accordance with clause (A)(i) above due but not paid with respect to the prior Monthly Period, plus interest on such unpaid amount calculated as the product of (x) the weighted average Funding Rate
for all Funding Tranches funded at the Promissory Note Rate during the most recent Monthly Period, times (y) the amount of such unpaid Noteholders’ Interest Distributable Amount, times (z) the quotient of the number of days in
the related Monthly Period divided by 360, 
 plus 
  

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 (B) the sum of (i) the summation of the amount of interest accrued on each day during the related
Distribution Period on each Funding Tranche not funded at the Promissory Note Rate, determined by multiplying (a) the applicable Funding Rate on such day times (b) the Funded Amount for such Funding Tranche on such day divided
by (c) 360 and (ii) any Noteholders’ Interest Distributable Amount calculated in accordance with clause (B)(i) above due but not paid with respect to the prior Distribution Period, plus interest on such unpaid amount calculated as
the product of (x) the weighted average Funding Rate for all Funding Tranches not funded at the Promissory Note Rate during the most recent Distribution Period, times (y) the amount of such unpaid Noteholders’ Interest
Distributable Amount, times (z) for Funding Tranches that do not accrue interest by reference to the Corporate Base Rate, the quotient of the number of days in the related Distribution Period divided by 360 (and otherwise, the actual number of
days in the related calendar year). 
 plus 
 (C) on any Distribution Date on which the Funded Amount is reduced to zero and on the Final Scheduled Distribution Date, any amounts which accrue in clause (A) above (together with all fees which accrue pursuant
to paragraph 1 of the Fee Letter) from (and excluding) the last day of the related Monthly Period through (and including) such Distribution Date. 
 “Note Interest” means, with respect to any Investor at any time, the undivided interest in the Note owned by such Investor at such time. 
 “Notice of Funding” means each notice of an Incremental Funding delivered pursuant to Section 2.01 (b) and in the form of Exhibit B attached hereto. 
 “Other Obligations” means the fees under the Fee Letter and any other amounts payable to the Agent or any Investor under or in
connection with this Agreement or any other Transaction Document (other than principal or interest in respect of the Notes), including, without limitation, all Breakage Payments and all amounts payable from time to time pursuant to Article
VI. 
 “Participant” has the meaning set forth in the definition of “Promissory Note Rate” herein. 

“Pooling Agreement” is defined in Section 1.01. 
 “Program Support Agreement” means and includes any agreement entered into by any Program Support Provider providing for the issuance of
one or more letters of credit for the account of a Conduit Investor, the issuance of one or more surety bonds for which a Conduit Investor is obligated to reimburse the applicable Program Support Provider for any drawings thereunder, the sale by a
Conduit Investor to any Program Support Provider of the Purchased Notes (or portions thereof or participations therein) and/or the making of loans and/or other extensions of credit to a Conduit Investor in connection with such Conduit
Investor’s commercial paper program, together with any letter of credit, surety bond or other instrument issued thereunder, whether any of the foregoing is for the purpose of providing credit support or liquidity to such Conduit Investor.

  

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 “Program Support Provider” means and includes any Person now or hereafter extending
credit or having a commitment to extend credit to or for the account of, or to make purchases from, a Conduit Investor or issuing a letter of credit, surety bond or other instrument to support any obligations arising under or in connection with such
Conduit Investor’s commercial paper program. 
 “Promissory Note Rate” means, for any Fixed Period and any Funding
Tranche relating to a Conduit Investor, the per annum rate equal to the weighted average of the per annum rates paid or payable by such Conduit Investor from time to time as interest on or otherwise (by means of interest rate hedges or otherwise) in
respect of the Promissory Notes that are allocated, in whole or in part, by the Agent (on behalf of a Conduit Investor) to fund or maintain such Conduit Investor’s Funding Tranche during such Fixed Period, as determined by the Agent (on behalf
of such Conduit Investor) and reported to the Servicer, which rates shall reflect and give effect to the commissions of placement agents and dealers in respect of Promissory Notes, to the extent such commissions are allocated, in whole or in part,
to such Promissory Notes by the Agent (on behalf of such Conduit Investor); provided, however, that if any component of such rate is a discount rate, in calculating the “Promissory Note Rate” for such Fixed Period, the
Agent shall for such component use the rate resulting from converting such discount rate to an interest bearing equivalent rate per annum ; provided, further, that the Promissory Note Rate with respect to Funding Tranches or portions
thereof, interests or participations in which have been sold or assigned by such Conduit Investors to any Person (each, a “Participant”) pursuant to Section 8.01(b) (other than to any Program Support Provider) shall be
the same rate as in effect from time to time on Funding Tranches or portions thereof that are not funded by a Participant; provided, further, that if all of the Funding Tranches maintained by such Conduit Investor are funded by
Participants, then the Promissory Note Rate shall be such Conduit Investor’s pool funding rate in effect from time to time for its largest size pool of transactions which settles with a frequency corresponding to such Fixed Period. 

“Promissory Notes” means, collectively, (i) promissory notes issued by the Conduit Investors and (ii) participations or
assignments sold by the Conduit Investors pursuant to Section 8.01(b); provided that the term “Promissory Notes” shall not include the interests sold by the Conduit Investors under a Program Support Agreement.

 “Purchased Note” means the Note, in the maximum aggregate principal amount of $500,000,000 to be issued to the Agent (or
its nominee) on behalf of the Investors pursuant to the Indenture and Section 2.01 hereof. 
 “Recipient” has
the meaning specified in Section 2.04. 
 “Seller” is defined in the preamble . 
 “Servicer” is defined in the preamble . 
 “Standard & Poor’s” or “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., or any successor that is a nationally recognized
statistical rating organization. 
  

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 “Subsequent Invested Amount” means the amount of all loans or advances made hereunder
from time to time in respect of any Incremental Funding following the Initial Invested Amount. 
 “Transaction Documents”
means the “Basic Documents” as defined in Part I of Appendix A to the Pooling Agreement. 
 SECTION 1.02. Terms Generally.
All terms defined directly or by incorporation herein shall have the defined meanings when used in any certificate or other document delivered pursuant hereto unless otherwise defined therein. For purposes of this Agreement and all such certificates
and other documents, unless the context otherwise requires: (a) accounting terms not otherwise defined herein, and accounting terms partly defined herein to the extent not defined, shall have the respective meanings given to them under, and
shall be construed in accordance with, generally accepted accounting principles in effect in the United States from time to time; (b) terms used in Article 9 of the applicable UCC as in effect from time to time, and not specifically defined
herein, are used herein as defined in such Article 9; (c) references to any amount as on deposit or outstanding on any particular date means such amount at the close of business on such day; (d) the words “hereof,”
“herein” and “hereunder” and words of similar import refer to this Agreement (or the certificate or other document in which they are used) as a whole and not to any particular provision of this Agreement (or such certificate or
document); (e) references to any Article, Section, Schedule or Exhibit are references to Articles, Sections, Schedules and Exhibits in or to this Agreement (or the certificate or other document in which the reference is made) and references to
any paragraph, subsection, clause or other subdivision within any Section or definition refer to such paragraph, subsection, clause or other subdivision of such Section or definition; (f) the term “including” means “including
without limitation”; (g) references to any law refer to that law as amended from time to time and include any successor law; (h) references to any agreement refer to that agreement as from time to time amended or supplemented or as
the terms of such agreement are waived or modified in accordance with its terms; (i) references to any Person include that Person’s successors and permitted assigns; and (j) headings are for purposes of reference only and shall not
otherwise affect the meaning or interpretation of any provision hereof. 
 SECTION 1.03. Computation of Time Periods. Unless otherwise
stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including”, the words “to” and “until” each means “to but
excluding”, and the word “within” means “from and excluding a specified date and to and including a later specified date”. 
 ARTICLE II 
 Purchase of the Purchased Note 
 SECTION 2.01. Purchase of the Purchased Note. (a) On the terms and subject to the conditions set forth in this Agreement, and in reliance on the covenants, representations, warranties and agreements herein
and therein set forth (including Article IV), the Seller shall cause to be issued, and shall cause the Indenture Trustee to authenticate and deliver to the Agent and the Agent shall purchase the Purchased Note, issued on the Closing Date, on 

  

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behalf of the Investors. The purchase price payable for the Purchased Note shall be equal to the Initial Invested Amount. The Agent (or its nominee) shall
hold the Purchased Note on behalf of the Investors pro rata in accordance with their respective outstanding portions (if any) of the Funded Amount funded by them from time to time. The Purchased Note so issued shall be dated the Closing Date,
registered in the name of the Agent (or its nominee) and duly authenticated in accordance with the provisions of the Indenture. Without limiting any other provision of this Agreement, the issuance of the Purchased Note and the funding of the Funded
Amount thereunder on the Closing Date is subject to the satisfaction of the conditions precedent set forth in Article IV. Upon such issuance, (i) the Agent shall thereby acquire the Purchased Note, and (ii) the Agent and the
Investors shall become subject to the terms and conditions set forth herein and the Indenture. 
 (b) Incremental Fundings. Subject to
the terms and conditions of this Agreement and the other Transaction Documents (including, without limitation, Section 4.01(c)), from time to time prior to the Funding Period Expiration Date (and in any event not later than the Facility
Termination Date) upon receipt by the Agent of a Notice of Funding, the Agent, on behalf of the Investors (ratably based on their respective Funding Limits), shall make Incremental Fundings to the Seller in the amounts so requested in any such
Notice of Funding (but in no event shall the Funded Amount after giving effect to such Incremental Funding exceed the Maximum Net Investment) within 5 (five) Business Days of receipt of such Notice of Funding or on such date as specified in such
Notice of Funding and upon such request, each Investor severally agrees to make available to the Agent the amount necessary to fund its ratable portion of such Incremental Funding; provided, however, that neither the Agent nor any
Investor shall be required to fund any portion of any Incremental Funding exceeding its Funding Limit if, after giving effect thereto, its ratable share of the Funded Amount would exceed its Funding Limit. Notwithstanding anything to the contrary
herein, in no event shall any Conduit Investor be committed or obligated to make any funding under Section 2.01(a) or (b). In the event any such Conduit Investor elects (in its sole discretion) not to make any funding in respect
of the Initial Invested Amount or any Subsequent Invested Amount, then the Committed Investor relating to such Conduit Investor shall, subject to all of the other terms and conditions set forth herein (including Article IV), make the funding that
which the related Conduit Investor elected not to fund. 
 SECTION 2.02. The Note; Etc. The funding of the Initial Invested Amount and
each Subsequent Invested Amount shall be evidenced by the Purchased Note and shall be governed by and subject to the Indenture. All payments to be made on the Note shall be made in accordance with the Indenture and the terms of this Agreement. The
sole Holder of the Purchased Note shall be the Agent, which shall hold such Note for the benefit of the Investors. Except as otherwise required in the Indenture, all payments to be made on the Note shall be made by wire transfer of immediately
available funds to the account set forth below the Agent’s signature to this Agreement (or to such other account as the Agent may specify from time to time in writing to the Seller and the Indenture Trustee). 
 SECTION 2.03. Calculation of Interest; Etc. 
 (a) On or before the second Business Day after the end of each Monthly Period, the Agent shall calculate for the related Distribution Date, the Noteholders’ Interest 

  

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Distributable Amount payable on such Distribution Date and provide such calculation to the Servicer in writing. If any Funding Tranche begins to accrue
interest at a Funding Rate other than the Promissory Note Rate after the date the Agent provides the Noteholders’ Interest Distributable Amount calculation for any Distribution Date, the Agent shall promptly provide the Servicer a calculation
of the interest that will accrue on such Funding Tranche and be included in the definition of “Noteholders’ Interest Distributable Amount” for such Distribution Date. The parties acknowledge that the interest calculation set forth in
clause (C) of the definition of “Noteholders’ Interest Distributable Amount” shall be an estimate. If the estimated accruals exceed the actual accruals, the Agent shall reimburse such excess. If the actual accruals exceed
the estimated accruals, the Seller shall reimburse the Agent. 
 (b) If (i) any distribution of principal is made with respect to any
Funding Tranche with a Fixed Period and a fixed interest rate other than on a Distribution Date or any Notice of Funding is delivered by the Seller but not drawn and (ii) as a consequence of such distribution or failure to draw the interest
paid by an Investor to providers of funds to it to fund that Funding Tranche exceeds returns earned by such Investor with respect to such Funding Tranche, factoring in actual returns earned during the Fixed Period and assuming redeployment of such
funds in highly rated short-term money market instruments from the date of principal distribution (or failure to draw) through the end of the Fixed Period, then, upon written notice (including a detailed calculation of such Breakage Payment) from
the Agent to the Servicer, such Investor shall be entitled to receive additional amounts in the amount of such excess (each, a “Breakage Payment”) on the second Business Day after the Servicer receives such notice or, if later, on
the date of such distribution. 
 (c) On each date the principal amount of the Purchased Note is reduced, a duly authorized officer, employee
or agent of the Agent (or its nominee) shall make appropriate notations in its books and records of the applicable rates of interest and the amount of each such reduction, as applicable. Each of the Servicer, the Seller and each Investor authorizes
each duly authorized officer, employee and agent of the Agent (or its nominee) to make such notations on the books and records as aforesaid and such notation made in accordance with the foregoing authority shall be binding on the Servicer, the
Seller and each Investor absent manifest error. 
 (d) Whenever any amount is paid pursuant to the Indenture to the Agent in connection with
the Purchased Note, the Agent shall promptly allocate such amounts among the applicable Investors and pay, or cause to be paid, out of such funds received by it, to each applicable Investor, its applicable share of such amount; provided, that
if any such amount paid to the Agent is insufficient to pay the amount due to each Investor in respect of such amounts, the Agent shall distribute the amount it has received to each Investor pro rata based on the amounts owed to each Investor and
forthwith report the amount of such deficiency to the Seller, the Indenture Trustee and the Servicer. 
 SECTION 2.04. Sharing of
Payments, Etc. If any Investor (for purposes of this Section only, being a “Recipient”) shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of any Note
Interest owned by it in excess of its ratable share of payments on account of the applicable Funded Amount obtained by the Investors entitled thereto, such Recipient shall forthwith purchase from the Investors entitled to a share of such amount
participations in the applicable Note Interests owned 

  

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by such Persons as shall be necessary to cause such Recipient to share the excess payment ratably with each such other Person entitled thereto;
provided, that if all or any portion of such excess payment is thereafter recovered from such Recipient, such purchase from each such other Person shall be rescinded and each such other Person shall repay to the Recipient the purchase price
paid by such Recipient for such participation to the extent of such recovery, together with an amount equal to such other Person’s ratable share (according to the proportion of (a) the amount of such other Person’s required payment to
(b) the total amount so recovered from the Recipient) of any interest or other amount paid or payable by the Recipient in respect of the total amount so recovered. 
 ARTICLE III 
 Representations and Warranties 
 SECTION 3.01. Representation and Warranties. 
 (a) The Seller hereby makes the following representations and warranties to the Agent and the Investors as of the Closing Date and as of each subsequent Funding Date and the Investors and the Agent shall be deemed to have relied on such
representations and warranties in purchasing the Purchased Note on the Closing Date and making any Incremental Fundings on any Funding Date: 
 (i) the Seller repeats and reaffirms that the representations and warranties of the Seller set forth in Section 2.05 and Section 3.01 the Pooling Agreement and represents and warrants that such
representations and warranties are true and correct; 
 (ii) each of the Transaction Documents executed by the Seller has been
duly authorized, executed and delivered by the Seller, and is the valid and legally binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except that the enforcement thereof may be subject to
(x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any
proceeding therefor may be brought; 
 (iii) the Purchased Note has been duly and validly authorized, and, when executed and
authenticated in accordance with the terms of the Indenture, and delivered to and paid for in accordance with this Agreement, will be duly and validly issued and outstanding and will be entitled to the benefits of the Indenture, except that the
enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the
discretion of the court before which any proceeding therefor may be brought; 
 (iv) there is no pending or, to the
Seller’s knowledge, threatened action, suit or proceeding by or against the Seller before any Governmental Authority or any arbitrator (w) asserting the invalidity of this Agreement, any other Transaction Document or the Purchased Note,
(x) seeking to prevent the issuance of the Purchased Note or the 

  

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consummation of any of the transactions contemplated by this Agreement or any other Transaction Document, (y) that might materially and adversely affect
the performance by the Seller or the Trust of its obligations under, or the validity or enforceability of, this Agreement, any other Transaction Document or the Purchased Note or (z) that if determined adversely as to the Seller or the Trust
would have a Material Adverse Effect; 
 (v) except for those caused by the failure of NFC and its affiliates to deliver its
financial statements and related financial information for the fiscal years ended October 31, 2005, October 31, 2006 and October 31, 2007, or for the fiscal quarters ended January 31, April 30 and July 31 of
2006, the fiscal quarters ended January 31, April 30 and July 31 of 2007 or the fiscal quarters ended January 31, April 30 and July 31 of 2008, in each case, prior to the earliest of (1) November 30,
2008, (2) five (5) Business Days after the filing thereof with the Commission and (3) the date on which such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, the Seller
(x) is not in violation of its Certificate of Incorporation or By-Laws and (y) is not in breach or violation of any of the terms or provisions of, or with the giving of notice or lapse of time, or both, would be in default under, any
contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement, or other agreement or instrument to which the Seller is a party or by which it may be bound or to which any of its properties or assets may be subject,
except for such violations or defaults that would not have a Material Adverse Effect; 
 (vi) any taxes, fees and other
charges of Governmental Authorities applicable to the Seller in connection with the execution, delivery and performance by the Seller of the Transaction Documents or otherwise applicable to the Seller in connection with the Trust have been paid or
will be paid by the Seller at or prior to the Closing Date or any subsequent Funding Date, as applicable, to the extent then due, except for any such failures to pay which, individually and in the aggregate, would not have a Material Adverse Effect;

 (vii) the Trust has been duly created and is validly existing under the laws of the State of Delaware and the Seller has
authorized the Trust to issue and sell the Purchased Note; 
 (viii) on the date hereof and on each subsequent Funding Date,
the Seller is not insolvent or the subject of any voluntary or involuntary bankruptcy proceeding; 
 (ix) no proceeds of a
purchase hereunder will be used by the Seller (x) for a purpose that violates or would be inconsistent with Regulations T, U or X promulgated by the Board of Governors of the Federal Reserve System from time to time or (y) to acquire any
security in any transaction in violation of Section 13 or 14 of the Securities Exchange Act of 1934, as amended; 
 (x)
assuming the accuracy of the representations and warranties of the Investors set forth herein, the sale of the Purchased Note pursuant to the terms of this Agreement and the Indenture will not require registration of the Purchased Note under the
Act; 
  

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 (xi) neither the Trust nor the Seller is an “investment company” or is
controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended; 
 (xii)
no written information furnished or to be furnished by the Seller or any of its Affiliates, agents or representatives to the Investors or the Agent for purposes of or in connection with this Agreement, including, without limitation, any reports
delivered pursuant to Section 5.02 and any information relating to the Receivables and NFC’s retail receivables financing business, is or shall be inaccurate in any material respect, or contains or shall contain any material misstatement
of fact, or omits or shall omit to state a material fact or any fact necessary to make the statements contained therein not misleading, in each case as of the date such information was or shall be stated or certified and as of the date such
information was delivered by the Seller or any of its Affiliates, agents or representatives to the Investors or the Agent; 
 (xiii) the Indenture is not required to be qualified under the Trust Indenture Act; 
 (xiv) (x) the Seller’s
chief executive office and principal place of business is, and has been at all times during the five years preceding the date of this Agreement, located in the State of Illinois and (y) the Seller is a “registered organization” (as
defined in Section 9-102 of the UCC) incorporated in the State of Delaware and, for purposes of Article 9 of the UCC, NFC is, and has been at all times during the five years preceding the date of this Agreement, located in the State of
Delaware; 
 (b) NFC hereby makes the following representations and warranties to the Investors and the Agent as of the Closing Date and as
of each subsequent Funding Date (except as to the Designated Receivables, which are made as of the date such Designated Receivables were sold to the Seller) and the Investors and the Agent shall be deemed to have relied on such representations and
warranties in purchasing the Purchased Note on the Closing Date and in making (or committing to make) Incremental Fundings on any Funding Date: 
 (i) NFC repeats and reaffirms to the Investors and the Agent the representations, warranties and covenants of the Servicer set forth in Section 5.01 of the Servicing Agreement and the representations and
warranties of NFC set forth in the Section 5.01 and 5.03 of the Purchase Agreement and the representations and warranties of NFC set forth in Section 3.01 and 3.02 the Purchase Agreement and represents and warrants that all such
representations and warranties are true and correct as of such date; 
 (ii) no Governmental Action which has not been
obtained is required by or with respect to NFC in connection with any of the Transaction Documents, except any such failure which would not have a Material Adverse Effect; 
 (iii) each of the Transaction Documents has been duly authorized, executed and delivered by NFC, and is the valid and legally binding
obligation of NFC, enforceable against NFC in accordance with its terms, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to
creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
  

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 (iv) the Purchased Note has been duly and validly authorized, and, when executed and
authenticated in accordance with the terms of the Indenture, and when delivered to and paid for in accordance with this Agreement, will be duly and validly issued and outstanding and will be entitled to the benefits of the Indenture, except that the
enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the
discretion of the court before which any proceeding therefor may be brought; 
 (v) there is no pending or, to NFC’s
knowledge, threatened action, suit or proceeding by or against NFC or the Seller before any Governmental Authority or any arbitrator (w) asserting the invalidity of this Agreement, any other Transaction Document or the Purchased Note,
(x) seeking to prevent the issuance of the Purchased Note or the consummation of any of the transactions contemplated by this Agreement or any other Transaction Document, (y) that might materially and adversely affect the performance by
any of NFC, the Seller or the Trust of its obligations under, or the validity or enforceability of, this Agreement, any other Transaction Document or the Purchased Note or (z) that if determined adversely as to NFC, the Seller or the Trust
would have a Material Adverse Effect; 
 (vi) except for those caused by the failure of NFC and its affiliates to deliver its
financial statements and related financial information for the fiscal years ended October 31, 2005, October 31, 2006 and October 31, 2007, or for the fiscal quarters ended January 31, April 30 and July 31 of
2006, the fiscal quarters ended January 31, April 30 and July 31 of 2007 or the fiscal quarters ended January 31, April 30 and July 31 of 2008, in each case, prior to the earliest of (1) November 30,
2008, (2) five (5) Business Days after the filing thereof with the Commission and (3) the date on which such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, NFC (x) is not
in violation of its Certificate of Incorporation or By-Laws and (y) is not in breach or violation of any of the terms or provisions of, or with the giving of notice or lapse of time, or both, would be in default under, any contract, indenture,
mortgage, deed of trust, loan agreement, note, lease, partnership agreement, or other agreement or instrument to which NFC is a party or by which it may be bound or to which any of its properties or assets may be subject, except for such violations
or defaults that would not have a Material Adverse Effect; 
 (vii) any taxes, fees and other charges of Governmental
Authorities applicable to NFC in connection with the execution, delivery and performance by NFC of the Transaction Documents or otherwise applicable to NFC in connection with the Trust have been paid or will be paid by NFC at or prior to the Closing
Date or subsequent Funding Date, as applicable, to the extent then due, except for any such failures to pay which, individually and in the aggregate, would not have a Material Adverse Effect; 
  

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 (viii) the Trust has been duly created and is validly existing under the laws of the
State of Delaware; 
 (ix) on the date hereof, neither of the Trust or NFC is insolvent or the subject of any insolvency
proceeding; 
 (x) no written information furnished or to be furnished by NFC or its Affiliates, agents or representatives to
the Investors or the Agent for purposes of or in connection with this Agreement, including, without limitation, any reports delivered pursuant to Section 5.02 and any information relating to the Receivables and NFC’s retail receivable
financing business, is or shall be inaccurate in any material respect, or contains or shall contain any material misstatement of fact, or omits or shall omit to state a material fact or any fact necessary to make the statements contained therein not
misleading, in each case as of the date such information was or shall be stated or certified, and such information heretofore furnished remains true and correct in all material respects as of the date such information was delivered by NFC or any of
its Affiliates, agents or representatives to the Investors or the Agent. 
 (xi) (x) NFC’s chief executive office and
principal place of business is, and has been at all times during the five (5) years preceding the date of this Agreement, located in the State of Illinois and (y) NFC is a “registered organization” (as defined in
Section 9-102 of the UCC) incorporated in the State of Delaware and, for purposes of Article 9 of the UCC, NFC is, and has been at all times during the five years preceding the date of this Agreement, located in the State of Delaware.

 (c) The Note purchased by the Agent on behalf of the Investors pursuant to this Agreement will be acquired for investment only and
not with a view to any public distribution thereof, and no Investor will offer to sell or otherwise dispose of its interest in the Note so acquired by it (or any interest therein) in violation of any of the registration requirements of the Act or
any applicable state or other securities laws. The Agent and each Investor acknowledges that it has no right to require the Seller to register under the Act or any other securities law the Note to be acquired by the Agent on behalf of such Investor
pursuant to this Agreement. 
 The Investors and the Agent have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of an investment in the Note and the Investors are able to bear the economic risk of such investment. The Investors and the Agent have reviewed the Pooling Agreement, the Servicing Agreement and the
Indenture (including the schedule and exhibits thereto) and have had the opportunity to perform due diligence with respect thereto and to ask questions of and receive answers from the Seller and its representatives concerning the Seller, the Trust
and the Note. Each of the Investors and the Agent is an “accredited investor” as defined in Rule 501, promulgated by the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended.

 (d) None of the Investors or the Agent is required to register as an “investment company” nor are the Investors or the Agent
controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
  

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 ARTICLE IV 
 Conditions 
 SECTION 4.01. Conditions Precedent. 
 (a) The obligation of the Agent, for the benefit of the Investors to purchase the Purchased Note or to make any Incremental Fundings is subject to the
conditions precedent that (i) the Agent shall have received on or before the Closing Date each of the Transactions Documents, (ii) the Agent shall have received the certificates, opinions, lien searches and other items listed on Exhibit
A hereto, (iii) the Agent shall have received all fees and expenses required to be paid on such date pursuant to the terms of this Agreement and the Fee Letter and (iv) all conditions precedent under the Indenture and the other
Transaction Documents shall have been satisfied. 
 (b) The funding of the Initial Invested Amount shall be subject to the further conditions
precedent that: 
 (i) the Agent has received copies of all settlement statements and all reports required to be delivered by
the Servicer to the pursuant to Section 2.17 of the Servicing Agreement; 
 (ii) each of the representations and
warranties of the Seller and the Servicer made herein and of the Trust made in the Transaction Documents shall be true and correct in all material respects as of the Closing Date (except to the extent they expressly relate to an earlier or later
time); 
 (iii) the Seller, the Trust and the Servicer shall be in compliance in all material respects with all of their
respective covenants contained in the Transaction Documents; 
 (iv) no Event of Default shall have occurred and be continuing
and no Event of Default shall occur as a result of funding the Initial Invested Amount, and no event shall have occurred and be continuing or shall occur as a result of funding such Initial Invested Amount which has had or is reasonably likely to
have a Material Adverse Effect with respect to the Seller, the Servicer, the Trust or NFC; and 
 (v) the Aggregate Starting
Receivables Balance shall equal or exceed $414,295,534.82. 
 (c) The funding of any Incremental Funding shall be subject to the condition
precedent that: 
 (i) the Agent has received copies of all settlement statements and all reports required to be delivered by
the Servicer to the pursuant to Section 2.17 of the Servicing Agreement; 
 (ii) each of the representations and
warranties of the Seller and the Servicer made herein and of the Trust made in the Transaction Documents shall be true and correct in all material respects as of such Funding Date (except to the extent they expressly relate to an earlier or later
time); 
  

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 (iii) the Seller, the Trust and the Servicer shall be in compliance in all material
respects with all of their respective covenants contained in the Transaction Documents; 
 (iv) no Event of Default shall have
occurred and be continuing and no Event of Default shall occur as a result of funding such Incremental Funding; and no event shall have occurred and be continuing or shall occur as a result of funding such Incremental Funding which has had or is
reasonably likely to have a Material Adverse Effect with respect to the Seller, the Servicer, the Trust or NFC; 
 (v) the
aggregate Funded Amount (after giving effect to any such Incremental Funding) shall not exceed the Maximum Net Investment; 
 (vi) the Agent shall have received (1) opinions of legal counsel for each of Truck Retail Instalment Paper Corp., NFC, NFRRC and the Issuer (which may include in-house counsel) reasonably acceptable to the Agent which address UCC,
bankruptcy and such other matters as the Agent may reasonably request in form and substance substantially similar as given on the Closing Date, (2) copies of proper financing statements or releases with respect to previously filed financing
statements, duly filed on or before the date of such Incremental Funding under the UCC of all jurisdictions that the Agent may deem necessary or desirable in order to perfect the ownership and security interests contemplated by this Agreement and
the other Transaction Documents and (3) such other certificates or documentation reasonably requested by the Agent; 
 (vii) neither the Funding Period Expiration Date nor the Facility Termination Date shall have occurred; and 
 (viii)
the Indenture Trustee shall have delivered to the Agent and the Servicer, on or prior to such Funding Date, a certificate signed by one or more of its officers and stating that each of the representations and warranties of the Indenture Trustee set
forth in Section 6.13 of the Indenture are true and correct in all material respects as of such Funding Date (as if made on such date). 
 ARTICLE V 
 Covenants of the Seller and Servicer 
 SECTION 5.01. Access. Notwithstanding anything to the contrary contained in any Transaction Document, so long as the Purchased Note remains
outstanding, each of NFC and the Seller will, at any time from time to time during regular business hours with reasonable notice to the Seller and NFC, permit the Investors or the Agent, or their agents or representatives to: 
 (a) examine all books, records and documents (including computer tapes and disks) in the possession or under the control of the Seller or NFC relating to
the Receivables, and 
  

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 (b) visit the offices and property of the Seller or NFC for the purpose of examining such materials
described in clause (a) above; 
 it being understood that except as provided in Section 8.12, any information obtained by an
Investor or the Agent pursuant to this Section 5.01 shall be held in confidence by the Investors and the Agent unless and to the extent such information (i) has become available to the public, (ii) is required or requested by any
Governmental Authority or in any court proceeding or (iii) is required by any Governmental Rule. In the case of any disclosure permitted by clause (ii) or (iii) an Investor and the Agent shall use commercially reasonable efforts to
(x) provide the Seller with advance notice of any such disclosure and (y) cooperate with the Seller in limiting the extent or effect of any such disclosure. 
 SECTION 5.02. Information from NFC. So long as the Purchased Note remains outstanding, NFC will furnish to the Agent: 
 (a) a copy of each certificate, opinion, report, statement, notice or other communication (other than investment instructions) furnished by or on behalf of NFC or the Seller to the Indenture Trustee under any
Transaction Document, concurrently therewith, and promptly after receipt thereof, a copy of each notice, demand or other communication received by or on behalf of NFC or the Seller under any Transaction Document; 
 (b) such other information (including financial information), documents, records or reports respecting the Trust, the Receivables, the Seller or, to the
extent it relates to the origination of Receivables or the servicing of the Trust, NFC, as the Investors or Agent may from time to time reasonably request; 
 (c) (I) except as provided in immediately succeeding clause (II), as soon as available and in any event within (i) 45 days after the end of each of the first three fiscal quarters of any fiscal year and
(ii) 120 days after the end of the last fiscal quarter of any fiscal year, copies of the interim or annual, as applicable, financial statements of NFC, prepared in conformity with generally accepted accounting principles consistently applied
(and, solely in the case of the financial statements described in clause (ii), above, prepared by a nationally recognized independent accounting firm) and (II) on or before the earliest of (1) November 30, 2008, (2) five
(5) Business Days after the filing thereof with the Commission and (3) the date on which such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, copies of the interim or annual, as
applicable, financial statements of NFC for the fiscal years ended October 31, 2005, October 31, 2006 and October 31, 2007, for the fiscal quarters ended January 31, April 30 and July 31 of 2006, the fiscal
quarters ended January 31, April 30 and July 31 of 2007 and the fiscal quarters ended January 31, April 30 and July 31 of 2008, in each case, prepared in conformity with generally accepted accounting
principles consistently applied; and 
 (d) as soon as possible and in any event within two Business Days after knowledge thereof by a
Responsible Officer of NFC, notice of each Event of Default or event which with the giving of notice or the passage of time or both would constitute an Event of Default. 
  


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 SECTION 5.03. Security Interests; Further Assurances. The Seller will take all action reasonably
necessary to maintain the Indenture Trustee’s first priority perfected security interest in the Receivables and the other Collateral (to the extent it constitutes Code Collateral) granted pursuant to the Indenture. The Seller agrees to take any
and all acts and to execute any and all further instruments necessary or reasonably requested by the Investors or the Agent to more fully effect the purposes of this Agreement. 
 SECTION 5.04. Conduct of Business. The Seller and the Servicer shall do all things necessary to remain duly incorporated, validly existing and in
good standing as a domestic corporation (or other business entity) in its jurisdiction of incorporation (or formation) and the Seller will cause the Trust to do all things necessary to remain duly organized, validly existing and in good standing as
a statutory trust in the State of Delaware. The Servicer shall maintain all requisite authority to conduct its business in each jurisdiction in which its business requires such authority except, in each case, where the failure to do so does not, and
is not reasonably expected to, have a Material Adverse Effect. 
 SECTION 5.05. Compliance with Laws. The Seller and the Servicer
shall comply in all material respects with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject or which are applicable to the Collateral except where the failure to so comply does not,
and is not reasonably expected to, have a Material Adverse Effect. 
 SECTION 5.06. Replacement of Trustee. If at any time the
identity of the Owner Trustee and the Indenture Trustee is such that the Trust Indenture Act would require the replacement of the Owner Trustee and/or the Indenture Trustee (assuming for this purpose that the Indenture were required to be qualified
thereunder), then the Seller shall (or shall cause the Issuer to) so replace the Owner Trustee and/or the Indenture Trustee, as applicable, in each case, within 180 days following the event which precipitated such replacement, with an Owner Trustee
and/or Indenture Trustee, as applicable, reasonably satisfactory to the Agent. 
 SECTION 5.07. Compliance with Opinion Assumptions.
Each of the Seller and NFC shall at all times (as to itself) conduct its affairs in all material respects in accordance with the factual assumptions applicable to it set forth in, and forming the basis of, the bankruptcy opinion(s) of
Kirkland & Ellis delivered pursuant to Section 4.01(a). 
 SECTION 5.08. Further Covenants. Each of the Seller
and NFC will duly observe and perform each of its covenants set forth in the other Transaction Documents in all material respects. 
 SECTION
5.09. Amendments. Neither the Seller nor NFC will make, or permit any Person to make, any amendment, modification or change to, or provide any waiver under any Transaction Document without the prior written consent of the Agent. 

 

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 ARTICLE VI 
 Indemnification 
 SECTION 6.01. Indemnities by the Seller, NFC and the Servicer. Without
limiting any other rights that the Agent or any Investor may have hereunder or under applicable law, (A) the Seller and NFC (in its capacity as seller under the Purchase Agreement) hereby agree to indemnify (and pay upon demand to) the Agent
and each Investor and their respective assigns, officers, directors, agents and employees (each an “Indemnified Party”) from and against any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other
amounts payable, including reasonable attorneys’ fees (which attorneys may be employees of the Agent or such Investor) and disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded
against or incurred by any of them arising out of or as a result of this Agreement or the acquisition, either directly or indirectly, by an Investor of the Notes (or any interest therein), and (B) the Servicer hereby agrees to indemnify (and
pay upon demand to) each Indemnified Party for Indemnified Amounts awarded against or incurred by any of them arising out of the Servicer’s activities as Servicer excluding, however, in all of the foregoing instances under the preceding
clauses (A) and (B): 
 (i) Indemnified Amounts to the extent such Indemnified Amounts resulted from gross
negligence or willful misconduct on the part of the Indemnified Party seeking indemnification; 
 (ii) Indemnified Amounts to
the extent arising from the acts or omissions of a successor Servicer; 
 (iii) Indemnified Amounts to the extent the same
includes losses in respect of Receivables that are uncollectible as a result of credit worthiness of the related Obligors; or 
 (iv) taxes imposed by any jurisdiction in which such Indemnified Party is or would be subject to tax (unless such tax arises solely as a result of the transactions contemplated by this Agreement) on or measured by the overall net income of
such Indemnified Party to the extent that the computation of such taxes is consistent with the characterization for income tax purposes of the acquisition by the Investors of interests in the Purchased Note as a loan or loans by the Investors to
Seller secured by the Receivables; 
 provided, however, that nothing contained in this sentence shall limit the liability of the Seller or NFC
or limit the recourse of the Agent or the Investors to the Seller or NFC for amounts otherwise specifically provided to be paid by the Seller or NFC under the terms of this Agreement or any other Transaction Document. 
 SECTION 6.02. Increased Cost and Reduced Return. If after the date hereof, any Investor shall be charged any fee, expense or increased cost on
account of the adoption of any applicable law, rule or regulation (including any applicable law, rule or regulation regarding capital adequacy) or any change therein, or any change in the interpretation 

  

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or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof or any
accounting board or authority (whether or not part of government) which is responsible for the establishment or interpretation of national or international accounting principles, or compliance with any request or directive (whether or not having the
force of law) of any such authority, central bank or comparable agency or accounting board or authority (a “Regulatory Change”): (i) that subjects any Investor to any charge, increased capital costs or withholding on or with
respect to this Agreement or any Program Support Agreement or an Investor’s obligations under this Agreement or a Program Support Agreement, or on or with respect to the Receivables, or changes the basis of taxation of payments to any Investor
of any amounts payable under this Agreement or any Program Support Agreement (except for changes in the rate of tax on the overall net income of an Investor) or taxes excluded by Section 6.01 or (ii) that imposes, modifies or deems
applicable any reserve, assessment, insurance charge, special deposit or similar requirement against assets of, deposits with or for the account of an Investor, or credit extended by an Investor pursuant this Agreement or a Program Support Agreement
or (iii) that imposes any other condition the result of which is to increase the cost to an Investor of performing its obligations under this Agreement or a Program Support Agreement, or to reduce the rate of return on an Investor’s
capital as a consequence of its obligations under this Agreement or a Program Support Agreement, or to reduce the amount of any sum received or receivable by an Investor under this Agreement or a Program Support Agreement or to require any payment
calculated by reference to the amount of interests or loans held or interest received by it, then, upon demand by the Agent, Seller shall pay to the Agent, for the benefit of the relevant Investor, such amounts charged to such Investor or such
amounts to otherwise compensate such Investor for such increased cost or such reduction. 
 SECTION 6.03. Other Costs and Expenses. In
addition to its obligations under Section 6.01 and 6.02, Seller agrees to pay within three Business Days of demand: 
 (a)
all reasonable out-of-pocket costs and expenses incurred by the Agent and the Investors in connection with due diligence, negotiation, preparation, execution and delivery, the amendment to, or waiver of, or the enforcement of, or any breach by NFC
or NFRRC of, this Agreement and the other Transaction Documents, including, without limitation (i) the reasonable fees and expenses of outside counsel to any of such Persons incurred in connection with any of the foregoing or in advising such
Persons as to their respective rights and remedies under any of the Transaction Documents in connection with any of the foregoing, and (ii) all reasonable out-of-pocket expenses (including reasonable fees and expenses of independent accountants
(it being understood that if no Event of Default has occurred, the Seller shall be responsible for the reasonable out-of-pocket costs and expenses of one audit of its financial records per year related to the transactions contemplated herein or in
the other Basic Documents and if an Event of Default has occurred, the Seller shall be responsible for the reasonable out-of-pocket costs and expenses of such audits of its financial records related to the transactions contemplated herein or in the
other Basic Documents as the Agent may request)), incurred in connection with any review of the books and records of the Seller, NFC or their Affiliates either prior or subsequent to the execution and delivery hereof; and 
 (b) all stamp and other taxes and fees payable or determined to be payable in connection with the execution, delivery, filing and recording of this
Agreement or the other Transaction Documents, and agrees to indemnify each Indemnified Party against any liabilities with respect to or resulting from any delay in paying or omission to pay such taxes and fees. 
  

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 ARTICLE VII 
 The Agent 
 SECTION 7.01. Authorization and Action. Each Investor hereby irrevocably appoints,
designates and authorizes the Agent to take such action on its behalf under the provisions of this Agreement and each other Transaction Document and to exercise such powers and perform such duties as are expressly delegated to the Agent by the terms
of this Agreement and any other Transaction Document, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Transaction Document, the
Agent shall not have any duties or responsibilities, except those expressly set forth in this Agreement, nor shall the Agent have or be deemed to have any fiduciary relationship with any Investor, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Transaction Document or otherwise exist against the Agent. Without limiting the generality of the foregoing sentence, the use of the term
“agent” in this Agreement with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of
market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 
 SECTION
7.02. Delegation of Duties. The Agent may execute any of its duties under this Agreement or any other Transaction Document by or through agents, employees or attorneys-in-fact and shall be entitled to the advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects with reasonable care. 
 SECTION 7.03. Liability of Agent. No Agent-Related Person shall (i) be liable for any action taken or omitted to be taken by any of them
under or in connection with this Agreement or any other Transaction Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (ii) be responsible in any manner to any Investor for any
recital, statement, representation or warranty made by the Seller, the Servicer, the Indenture Trustee, or any officer thereof, contained in this Agreement or in any other Transaction Document, or in any certificate, report, statement or other
document referred to or provided for in, or received by the Agent under or in connection with, this Agreement or any other Transaction Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other Transaction Document, or for any failure of the Seller, the Servicer, the Indenture Trustee, or any other party to any Transaction Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any
obligation to any Investor to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Transaction Document, or to inspect the properties, books or records of
the Seller, the Servicer, the Indenture Trustee, or any of their respective Affiliates. 
  

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 SECTION 7.04. Reliance by Agent. 
 (a) The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit,
letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by or on behalf of the proper Person or Persons, and upon advice and
statements of legal counsel (including counsel to the Seller, the Servicer and the Indenture Trustee), independent accountants and other experts selected by the Agent. The Agent shall be fully justified in failing or refusing to take any action
under this Agreement or any other Transaction Document unless it shall first receive such advice or concurrence of the Conduit Investors (and, if required by any Program Support Agreement, the requisite Program Support Providers) as it deems
appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Investors against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Agent shall
in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Transaction Document in accordance with a request or consent of the Conduit Investors (and, if required by any Program Support Agreement, the
requisite Program Support Providers) or, if required hereunder, all Investors and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Investors. 
 (b) For purposes of determining compliance with the conditions specified in Article IV on the Closing Date or any subsequent Funding Date,
each Investor that has executed this Agreement or transferred funds to the Agent in the case of a Funding Date shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Agent
to such Investor for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to such Investor. 
 SECTION 7.05. Notice of Event of Default. The Agent shall not be deemed to have knowledge or notice of the occurrence of an Event of Default or an
event which, with the giving of notice or passage of time, or both, would constitute an Event of Default unless the Agent has received written notice from an Investor referring to this Agreement, describing such Event of Default or event which, with
the giving of notice or passage of time, or both, would constitute an Event of Default stating that such notice is a “Notice of Event of Default”. The Agent will notify the Investors of its receipt of any such notice. The Agent shall
(subject to Section 7.04) take such action with respect to such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default as may be requested by the Conduit Investors
(and, if required by any Program Support Agreement, the requisite Program Support Providers), provided, that, unless and until the Agent shall have received any such request, the Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default as it shall deem advisable or in the best interest of the Investors.

 SECTION 7.06. Credit Decision; Disclosure of Information by the Agent. Each Investor acknowledges that none of the Agent-Related
Persons has made any representation or warranty to it, and that no act by the Agent hereinafter taken, including any consent to and 

  

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acceptance of any assignment or review of the affairs of the Seller, the Servicer, the Indenture Trustee, or any of their respective Affiliates, shall be
deemed to constitute any representation or warranty by any Agent-Related Person to any Investor as to any matter, including whether the Agent-Related Persons have disclosed material information in their possession. Each Investor, including any
Investor by assignment, represents to the Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into
the business, prospects, operations, property, financial and other condition and creditworthiness of the Seller, the Servicer or the Indenture Trustee, or their respective Affiliates, and all applicable bank regulatory laws relating to the
transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to the Seller hereunder. Each Investor also represents that it shall, independently and without reliance upon any Agent-Related Person and
based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Transaction Documents, and to make
such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Seller, the Servicer or the Indenture Trustee. Except for notices, reports and
other documents expressly herein required to be furnished to the Investors by the Agent herein, the Agent shall not have any duty or responsibility to provide any Investor with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of the Seller, the Servicer, the Indenture Trustee, or their respective Affiliates which may come into the possession of any of the Agent-Related Persons. 
 SECTION 7.07. Indemnification of the Agent. Whether or not the transactions contemplated hereby are consummated, the Program Support Providers
shall indemnify upon demand each Agent-Related Person, pro rata, and hold harmless each Agent-Related Person from and against any and all damages, losses, claims, liabilities, costs and expenses, including reasonable attorneys’ fees (which such
attorneys may be employees of the Program Support Providers or the Agent) and disbursements awarded against or incurred by it; provided, that no Program Support Provider shall be liable for the payment to any Agent-Related Person of any portion of
such amounts resulting from such Person’s gross negligence or willful misconduct; provided, further, that no action taken in accordance with the directions of the Conduit Investors (and, if required by any Program Support Agreement, the
requisite Program Support Providers) shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section. Without limitation of the foregoing, each Program Support Provider shall reimburse the Agent upon demand for its
ratable share of any costs or out-of-pocket expenses (including attorney’s fees) incurred by the Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Transaction Document, or any document contemplated by or referred to herein. The undertaking in this Section
shall survive payment in full of the Note and the resignation or the replacement of the Agent. 
 SECTION 7.08. Agent in Individual
Capacity. CNAI (and any successor acting as Agent) and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial
advisory, underwriting or other business with any of the Seller, the Servicer, the 

  

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Indenture Trustee, or any of their Affiliates as though CNAI were not the Agent hereunder and without notice to or consent of the Investors. The Investors
acknowledge that, pursuant to such activities, CNAI or its Affiliates may receive information regarding the Seller, the Servicer, the Indenture Trustee, or their respective Affiliates (including information that may be subject to confidentiality
obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them. 
 SECTION 7.09. Resignation of Agent. The Agent may resign as Agent upon thirty (30) days’ notice to the Investors. If the Agent resigns under this Agreement, the Investors shall appoint from among the Program Support
Providers a successor agent for the Investors. If no successor agent is appointed prior to the effective date of the resignation of the Agent, the Agent may appoint, after consulting with the Investors, a successor agent from among the Program
Support Providers. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and the term “Agent” shall mean such successor agent and
the retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 7.09 and Sections 7.03 and 7.07 shall
inure to its benefit as to any actions taken or omitted to be taken by it while it was the Agent under this Agreement. If no successor agent has accepted appointment as Agent by the date which is thirty (30) days following a retiring
Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become effective and the Program Support Providers shall perform all of the duties of the Agent hereunder until such time, if any, as the
Investors appoint a successor agent as provided for above; provided that until such time as a successor agent shall have been appointed, the resigning Agent shall continue to hold the Purchased Note as “nominee” for the Investors.

 SECTION 7.10. Payments by the Agent. Unless specifically allocated to an Investor pursuant to the terms of this Agreement, all
amounts received by the Agent on behalf of the Investors shall be paid by the Agent to the Investors pro rata in accordance with their respective outstanding funded portions of the Funded Amount on the Business Day received by the
Agent, unless such amounts are received after 12:00 noon on such Business Day, in which case the Agent shall use its reasonable efforts to pay such amounts to the Investors on such Business Day, but, in any event, shall pay such amounts to the
Investors not later than the following Business Day. 
 ARTICLE VIII 
 Miscellaneous 
 SECTION 8.01. Assignment. 
 (a) This Agreement shall be binding on the parties hereto and their respective successors and assigns; provided, that the Seller may not assign any
of its rights or delegate any of its duties hereunder without the prior written consent of the Agent. Each Conduit Investor may only assign, participate, grant security interest in, or otherwise transfer any portion of its Note Interest as provided
in clauses (b) or (c) below. No provision of this Agreement shall in any manner restrict the ability of any Program Support Provider to assign, participate, grant security 

  

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interests in, or otherwise transfer any portion of its Note Interest, provided that any such transfer shall be in accordance with the terms of the
Indenture. All costs and expenses of the Agent incurred in connection with any assignment hereunder shall be borne by the Seller. 
 (b) The
Conduit Investors may, from time to time, in one transaction or a series of transactions, assign, participate, grant security interests in, or otherwise transfer all or a portion of its Note Interest and its rights and obligations under this
Agreement and any other Transaction Document to which it is a party (x) without the consent of the Seller or any other Person, (i) to a Conduit Assignee, (ii) to any Program Support Provider or (iii) to any other commercial paper
conduit which satisfies the Assignee Rating Criteria and (y) with the consent of the Seller (such consent not to be unreasonably withheld or delayed), to any Person not described in preceding clause (x); provided, that, the Conduit
Investors may, during the continuance of an Event of Default, assign, participate, grant security interests in, or otherwise transfer all or a portion of its Note Interest and its rights and obligations under this Agreement and any other Transaction
Document to which it is a party, in each case, without the consent of the Seller or any other Person. Subject to the transfer restrictions set forth in the Indenture, upon and to the extent of such assignment or other transfer by a Conduit Investor,
(i) such assignee shall be the owner of the assigned or transferred portion of the Note Interest, (ii) if such assignee is a Conduit Assignee (or another commercial paper conduit), such Conduit Assignee (or other commercial paper conduit)
and its liquidity support provider(s) and credit support provider(s) and other related parties shall have the benefit of all the rights and protections provided to the applicable Conduit Investor and its Program Support Provider(s) herein and in the
other Transaction Documents (including any limitation on recourse against such Conduit Assignee (or other commercial paper conduit) or related parties, any agreement not to file or join in the filing of a petition to commence an insolvency
proceeding against such Conduit Assignee (or other commercial paper conduit), and the right to assign or otherwise transfer to another Conduit Assignee (or commercial paper conduit) as provided in this paragraph), (iii) such assignee shall
assume all (or the assigned or assumed portion) of the applicable Conduit Investor’s obligations, if any, hereunder or under any other Transaction Document, and such Conduit Investor shall be released from such obligations, in each case to the
extent of such assignment, and the obligations of such Conduit Investor and such assignee shall be several and not joint, (iv) all distributions in respect of its Note Interest shall be made to the Agent, on behalf of the applicable Conduit
Investor and such assignee according to their respective Note Interests, (v) the defined terms and other terms and provisions of this Agreement and the other Transaction Documents shall be interpreted in accordance with the foregoing, and
(vi) if requested by the Agent with respect to the assignee, the parties will execute and deliver such further agreements and documents and take such other actions as the Agent may reasonably request to evidence and give effect to the
foregoing. 
 (c) Notwithstanding any other provision of this Section 8.01 or otherwise in this Agreement, any Investor (or any
Program Support Provider of any Investor) may at any time pledge or grant a security interest in all or any portion of its rights (including, without limitation, rights to payment of interest and repayment of Note) under this Agreement to secure
obligations of such Investor or Program Support Provider to a Federal Reserve Bank, without notice to or consent of any Person; provided, that no such pledge or grant of a security interest shall release a Investor or Program Support Provider
from any of its obligations hereunder or substitute any such pledgee or grantee for such Investor or Program Support Provider as a party hereto. 
  

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 SECTION 8.02. Notices. Except in the case of notices and other communications expressly permitted
to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service or sent by telecopy or by e-mail (if the recipient has provided an e-mail address), as
follows: 
 (a) if to the Seller or the Servicer, at its address or telecopy number set forth in Appendix B to the Pooling Agreement;

 (b) if to the Conduit Investor or Committed Investor: 
  

											
		 	CAFCO, LLC/CRC FUNDING, LLC	  		  	
		 	c/o Citicorp North America, Inc.	  		  	
		 	388 Greenwich Street, 19th Floor	  		  	
		 	New York, New York 10013	  		  	
		 	Attention: James Huddleston	  		  	
		 	Email:	 	james.r.huddleston@citi.com	 		  		  	
		 	Phone:	 	(212) 816-0674	 		  		  	
		 	Fax:	 	(646) 843-3657	 		  		  	

 (c) if to the Agent: 
  

											
		 	Citicorp North America, Inc.	  		  	
		 	388 Greenwich Street, 19th Floor	  		  	
		 	New York, New York 10013	  		  	
		 	Attention: James Huddleston	  		  	
		 	Email:	 	james.r.huddleston@citi.com	 		  		  	
		 	Phone:	 	(212) 816-0674	 		  		  	
		 	Fax:	 	(646) 843-3657	 		  		  	

 All notices and other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt. 
 SECTION 8.03. Waivers; Amendments. 
 (a) No waiver of any provision of this Agreement or consent to any departure by the Seller therefrom shall in any event be effective unless the same shall
be permitted by Section 8.03(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the Funding of the Purchased Note
shall not be construed as a waiver of any Event of Default, regardless of whether the Indenture Trustee, the Seller, the Servicer, the Agent or the Conduit Investors may have had notice or knowledge of such Event of Default at the time. 

(b) Any provision of the Agreement may be amended or waived by (x) the Seller or Servicer if, but only if, it is in writing and signed by such
Person and (y) the Agent and 

  

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the Investors, if, but only if, it is in writing and signed by the Agent and the Conduit Investors. Any consent or other election or action to be taken by an
Investor pursuant to the Indenture shall be taken by the Agent as registered Holder of the Purchased Note, in each case with the consent of the applicable Investors (the Seller shall have no obligation to inquire as to such consent and may rely on
any consent, election or action taken by the Agent as such Holder). 
 (c) No waiver, amendment or modification of the Transaction Documents
or any other agreement referred to herein or therein to which the Seller is a party (other than this Agreement) shall affect any of the rights or obligations under this Agreement of any party hereto unless such party has given its written consent to
such waiver, amendment or modification. 
 (d) A failure or delay in exercising any right, power or privilege in respect of this Agreement
will not be presumed to operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or privilege or the exercise of any other right,
power or privilege. 
 SECTION 8.04. Survival. All covenants, agreements, representations and warranties made by the Seller and the
Servicer herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this
Agreement and the funding of the Purchased Note, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Indenture Trustee, the Agent or the Conduit Investors may have had notice or knowledge of any
Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the Note or any amount payable under this Agreement is outstanding and unpaid. 

SECTION 8.05. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the Indenture and the other Transaction Documents constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been executed by each of
the parties hereto and thereafter this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy
shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 8.06. Severability. Any provision of
this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  

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 SECTION 8.07. Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial
Right. 
 (a) This Agreement shall be construed in accordance with the laws of the State of Illinois, without reference to its conflict of
laws provisions (other than 735 ILCS 105/5-5), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
 (b) TO THE EXTENT PERMITTED BY LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 (c) EACH OF THE PARTIES HERETO HEREBY SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF ILLINOIS AND OF ANY ILLINOIS STATE COURT SITTING IN THE CITY OF CHICAGO FOR PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A
COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. NOTHING IN THIS SECTION 8.07(c) SHALL AFFECT THE RIGHT OF ANY PARTY TO BRING ANY ACTION OR PROCEEDING AGAINST ANY OTHER PARTY OR ITS RESPECTIVE PROPERTIES IN THE COURTS OF OTHER JURISDICTIONS.

 SECTION 8.08. No Bankruptcy Petition Against the Conduit Investors. Each of the Investors, the Agent, the Seller and the Servicer
hereby covenants and agrees that, prior to the date which is one year and one day (or the then applicable preference period) after the payment in full of all outstanding Promissory Notes or other rated indebtedness of all Conduit Investors, it will
not institute against, or join any other Person in instituting against, any Conduit Investor any proceeding of a type referred to in the definition of Event of Bankruptcy. 
 SECTION 8.09. Benefits of Indenture. Each of the Seller and the Servicer hereby acknowledges and confirms that each representation, warranty,
covenant and agreement made pursuant to the Indenture by the Seller and the Servicer is also made herein, all for the benefit and security of the Investors and the Agent. 
 SECTION 8.10. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement. 
 SECTION 8.11. No Recourse Against Conduit Investors, Members, Officers or
Directors. Notwithstanding anything to the contrary contained in this Agreement, the obligations of each Conduit Investor under this Agreement and all other Transaction Documents are solely the corporate obligations of such Conduit Investor and
shall be payable solely to the extent of funds received in accordance herewith or from any party to any Transaction Document in accordance with the terms thereof in excess of funds necessary to pay matured and maturing 

  

 31 








 
Promissory Notes. No recourse under any obligation, covenant or agreement of any Conduit Investors contained in this Agreement shall be had against any
stockholder, member, employee, officer, director or incorporator of such Conduit Investor or any beneficial owner of any of them, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or
otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation of such Conduit Investor, and that no personal liability whatsoever shall attach to or be incurred by the any stockholder, member, employee,
officer, director or incorporator of such Conduit Investor or any beneficial owner of any of them, as such, under or by reason of any of the obligations, covenants or agreements of such Conduit Investor contained in this Agreement, or implied
therefrom, and that any and all personal liability for breaches by the Conduit Investor of any of such obligations, covenants or agreements, either at common law or at equity, or by statute or constitution, of every such stockholder, member,
employee, officer, director or incorporator of such Conduit Investor or any beneficial owner of any of them, as such, is hereby expressly waived as a condition of and consideration for the execution of this Agreement; provided, that this
Section 8.11 shall not relieve any such stockholder, member, employee, officer, director or incorporator of the Conduit Investor or any beneficial owner of any of them, as such, of any liability it might otherwise have for its own
intentional misrepresentation or willful misconduct. 
 SECTION 8.12. Waiver of Confidentiality. Each of the Seller and the Servicer
hereby consents to the disclosure of any non-public information with respect to it received by the Agent or any Investor to (i) the Agent, any nationally recognized statistical rating organization rating a Conduit Investor’s Promissory
Notes, any Program Support Provider or other Person providing financing to, or any member or other Person holding equity interests in, a Conduit Investor or any of the foregoing Person’s counsel or accountants in relation to this Agreement or
any other Transaction Document (as long as each of the foregoing Persons has been advised to keep such information confidential); and (ii) with the Seller’s and the Servicer’s consent (such consent not to be unreasonably withheld or
delayed), any other Investor or potential Investor. 
 SECTION 8.13. Confidentiality Agreement. Each of the Seller and the Servicer
hereby agrees that it will not disclose the contents of this Agreement or any other Transaction Document or any other proprietary or confidential information of or with respect to any Investor, the Agent or any Program Support Provider to any other
Person except (a) its auditors and attorneys, employees or financial advisors (other than any commercial bank) and any nationally recognized statistical rating organization, provided such auditors, attorneys, employees, financial advisors or
rating agencies are informed of the highly confidential nature of such information, (b) as otherwise required by applicable law or order of a court of competent jurisdiction, including its regulators, (c) in connection with any proceeding
brought by or against it with respect to this Agreement or the related transactions contemplated hereby, (d) in any offering circular prepared for the issuance and sale of the Note, if such disclosure has been reviewed and agreed to by the
Investors and the Agent and (e) that the Seller and Servicer may file copies of the Transaction Documents (other than the Fee Letter) with the Commission. 
 SECTION 8.14. Excess Funds. Notwithstanding any provisions contained in this Agreement to the contrary, a Conduit Investor shall not, and shall not be obligated to, pay any amount pursuant to this Agreement
unless (i) the Conduit Investor has received funds which 

  

 32 








 
may be used to make such payment and which funds are not required to repay its Promissory Notes when due and (ii) after giving effect to such payment,
either (x) the Conduit Investor could issue Promissory Notes to refinance all of its outstanding Promissory Notes (assuming such outstanding Promissory Notes matured at such time) in accordance with the program documents governing the Conduit
Investor’s securitization program or (y) all of such Conduit Investor’s Promissory Notes are paid in full. Any amount which the Conduit Investor does not pay pursuant to the operation of the preceding sentence shall not constitute a
claim (as defined in § 101 of the United States Bankruptcy Code) against or corporate obligation of the Conduit Investor for any such insufficiency unless and until the Conduit Investor satisfies the provisions of clauses (i) and
(ii) above. This Section shall survive the termination of this Agreement. 
 SECTION 8.15. Limitation of Liability. No claim may
be made by the Issuer, Seller, NFC, the Servicer, any of their Affiliates, or any other Person against the Agent, the Investors, any Program Support Provider, or their respective Affiliates, directors, officers, employees, attorneys or agents for
any special, indirect, consequential or punitive damages in respect of any claim for breach of contract or any other theory of liability arising out of or related to the transactions contemplated by this Agreement or the other Transaction Documents,
or any act, omission or event occurring in connection therewith and each of the Issuer, the Seller, the Servicer and NFC, to the extent permitted by law, hereby waives, releases, and agrees not to sue upon any claim for any such damages, whether or
not accrued and whether or not known or suspected to exist in its favor. 
 [Signature Pages Follow] 
  

 33 








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

			
	CONDUIT INVESTOR:
	
	CAFCO, LLC
		
	By:	 	 /s/ James Huddleston

	Name:	 	James Huddleston
	Title:	 	Attorney-in-fact
	
	CRC FUNDING, LLC
		
	By:	 	 /s/ James Huddleston

	Name:	 	James Huddleston
	Title:	 	Attorney-in-fact
	
	COMMITTED INVESTOR TO CAFCO, LLC and CRC FUNDING, LLC:
	
	CITIBANK, N.A., as Committed Investor
		
	By:	 	 /s/ James Huddleston

	Name:	 	James Huddleston
	Title:	 	Vice President
	
	Funding Limit: $500,000,000


  

 S-1 
 [Signature Page to 2007-C Note Purchase Agreement] 









			
	SELLER:
	
	NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION, as Seller
		
	By:	 	 /s/ John V. Mulvaney, Sr.

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	V.P., CFO & Treasurer
	
	INDIVIDUALLY AND AS SERVICER:
	
	NAVISTAR FINANCIAL CORPORATION, individually and as Servicer
		
	By:	 	 /s/ John V. Mulvaney, Sr.

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	V.P., CFO & Treasurer


  

 S-2 
 [Signature Page to 2007-C Note Purchase Agreement] 









			
	AGENT:
	
	CITICORP NORTH AMERICA, INC., as Agent
		
	By:	 	 /s/ James Huddleston

	Name:	 	James Huddleston
	Title:	 	Vice President
	
	Payment Information:
	
	Citibank, N.A.
	ABA: 021-000-089
	Account Number: 4051-7805
	Account Name: CRC Redemption Account
	Ref: Navistar


  

 S-3 
 [Signature Page to 2007-C Note Purchase Agreement] 








 EXHIBIT A 
 DOCUMENTS TO BE DELIVERED TO THE AGENT 
 ON OR PRIOR TO THE CLOSING DATE 
  

	1.	Copies of the Resolutions of the board of Directors of each of Truck Retail Instalment Paper Corp., NFC and NFRRC certified by its Secretary authorizing its execution, delivery and
performance of each Transaction Document to which it is a party. 

  

	2.	Articles or Certificate of Incorporation or Formation for each of Truck Retail Instalment Paper Corp., NFC, NFRRC and the Issuer certified by the Secretary of State of its
jurisdiction of incorporation or formation on or within thirty (30) days prior to the Closing Date. 

  

	3.	Good Standing Certificates for each of Truck Retail Instalment Paper Corp., NFC, NFRRC and the Issuer issued by the Secretary of State of Delaware. 

  

	4.	A certificate of the Secretary of each of Truck Retail Instalment Paper Corp., NFC and NFRRC certifying (i) the names and signatures of the officers authorized on its behalf to
execute each Transaction Documents to which it is a party and (ii) a copy of By-Laws of NFC, NFRRC and Truck Retail Instalment Paper Corp. 

  

	5.	A favorable opinion of legal counsel for each of Truck Retail Instalment Paper Corp., NFC, NFRRC and the Issuer (which may include in-house counsel) reasonably acceptable to the
Agent which addresses the following matters and such other matters as the Agent may reasonably request: 

  

	 	-	authorization, execution and delivery of the Transaction Documents 

  

	 	-	enforceability of the Transaction Documents against Truck Retail Instalment Paper Corp., NFC, NFRRC and the Issuer 

  

	 	-	perfection and priority of security interests 

  

	 	-	true sale of the Receivables from Truck Retail Instalment Paper Corp. to NFC and of the Receivables from NFC to the Seller, and non-consolidation of the Seller with NFC


  

	 	-	treatment of the Note as debt for tax purposes 

  

	6.	(i) UCC lien search reports (in Delaware) dated a date reasonably near the Closing Date listing all effective financing statements which name Truck Retail Instalment Paper Corp.,
NFC, NFRRC or the Issuer (under its respective present or previous names), as debtor, together with copies of all such financing statements and (ii) tax lien search reports (in Delaware and Illinois) dated a date reasonably near the Closing
Date listing all effective federal tax liens which name Truck Retail Instalment Paper Corp., NFC or NFRRC (under its respective present or previous names), as debtor. 

  

 A-1 









	7.	UCC-1 financing statements filed in Delaware (i) naming Truck Retail Instalment Paper Corp., as seller or debtor and NFC, as purchaser or secured party, identifying the
Receivables and Related Security sold by it to NFC as collateral, (ii) naming NFC, as seller or debtor and NFRRC, as purchaser or secured party, identifying the Designated Receivables and Related Security as collateral, (iii) naming NFRRC,
as debtor, the Issuer, as assignor secured party, and the Indenture Trustee, as secured party, identifying the Receivables and Related Security as collateral and (iv) naming the Issuer, as debtor and the Indenture Trustee, as secured party,
identifying the Collateral as collateral. 

  

	8.	UCC-3 financing statements for filing in all appropriate jurisdictions to the extent necessary to terminate or release as a matter of record any security interest in the
Receivables, Related Security and Collections. 

  

	9.	A fully executed Retail Note Bill of Sale and Assignment, dated as of the Closing Date, duly executed by Truck Retail Instalment Paper Corp., relating to the Receivables and Related
Security sold by it to NFC, together with the related Release, dated as of the Closing Date, duly executed by The Bank of New York, as Indenture Trustee under the Indenture, dated as of October 16, 2000, between Truck Retail Instalment Paper
Corp. and The Bank of New York, as Indenture Trustee. 

  

	10.	Certificates and opinions with respect to the Indenture Trustee and the Owner Trustee as are customary in transactions of the type contemplated in the Transaction Documents, the
form and substance of which shall be reasonably satisfactory to the Agent. 

  

 A-2