Document:

Servicing Agreement, dated as of May 27, 2010

 Exhibit 10.5 

EXECUTION COPY 
  

 
 SERVICING AGREEMENT 

AMONG 
 NAVISTAR
FINANCIAL RETAIL RECEIVABLES CORPORATION, 
 CITIBANK, N.A., 

AS INDENTURE TRUSTEE, 

NAVISTAR FINANCIAL 2010-A OWNER TRUST, 

AS ISSUER, 
 AND

 NAVISTAR FINANCIAL CORPORATION, 

AS SERVICER 

DATED AS OF MAY 27, 2010 
  

 

 TABLE OF CONTENTS 

 

					
	 	  	 	  	Page
		
	ARTICLE I DEFINITIONS; SERVICING SUPPLEMENT	  	1
	 SECTION 1.01
	  	Certain Defined Terms	  	1
		
	ARTICLE II ADMINISTRATION AND SERVICING OF RECEIVABLES	  	1
	 SECTION 2.01
	  	Duties of the Servicer	  	1
	 SECTION 2.02
	  	Establishment of Accounts.	  	2
	 SECTION 2.03
	  	Collection of Receivables Payments	  	6
	 SECTION 2.04
	  	Realization Upon Liquidating Receivables.	  	6
	 SECTION 2.05
	  	Maintenance of Insurance Policies	  	7
	 SECTION 2.06
	  	Maintenance of Security Interests in Vehicles	  	7
	 SECTION 2.07
	  	Covenants of the Servicer	  	7
	 SECTION 2.08
	  	Purchase of Receivables Upon Breach of Covenant.	  	8
	 SECTION 2.09
	  	Servicing Fee	  	8
	 SECTION 2.10
	  	Servicer Expenses	  	8
	 SECTION 2.11
	  	Deposits to Collection Account	  	9
	 SECTION 2.12
	  	Collections	  	9
	 SECTION 2.13
	  	Application of Collections	  	9
	 SECTION 2.14
	  	Monthly Advances	  	10
	 SECTION 2.15
	  	Additional Deposits	  	10
	 SECTION 2.16
	  	Net Deposits	  	10
	 SECTION 2.17
	  	Servicer’s Certificate	  	11
		
	ARTICLE III STATEMENTS AND REPORTS	  	11
	 SECTION 3.01
	  	Annual Statement as to Compliance; Notice of Servicer Default; Tax Reports.	  	11
	 SECTION 3.02
	  	Annual Accountants’ Report.	  	12
	 SECTION 3.03
	  	Access to Certain Documentation and Information Regarding Receivables	  	12
	 SECTION 3.04
	  	Maintenance of Schedule of Retail Notes	  	13
	 SECTION 3.05
	  	Amendments to Schedule of Retail Notes	  	13
	 SECTION 3.06
	  	Maintenance of Systems and Receivables List.	  	13
		
	ARTICLE IV THE CUSTODIAN	  	14
	 SECTION 4.01
	  	Custody of Receivable Files	  	14
	 SECTION 4.02
	  	Duties of Servicer as Custodian.	  	15
	 SECTION 4.03
	  	Custodian’s Indemnification	  	16
	 SECTION 4.04
	  	Effective Period and Termination	  	16
		
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE SERVICER	  	16
	 SECTION 5.01
	  	Representations and Warranties of the Servicer	  	16

  

 - i - 

					
		
	ARTICLE VI THE SERVICER	  	17
	 SECTION 6.01
	  	Merger or Consolidation of, or Assumption of the Obligations of, the Servicer	  	17
	 SECTION 6.02
	  	Limitation on Liability of Servicer and Others.	  	18
	 SECTION 6.03
	  	Delegation of Duties	  	18
	 SECTION 6.04
	  	Servicer not to Resign	  	18
	 SECTION 6.05
	  	Servicer Indemnification.	  	19
	 SECTION 6.06
	  	Backup Servicer	  	20
		
	ARTICLE VII DEFAULT	  	20
	 SECTION 7.01
	  	Servicer Defaults	  	20
	 SECTION 7.02
	  	Consequences of a Servicer Default	  	21
	 SECTION 7.03
	  	Appointment of Successor Servicer	  	22
	 SECTION 7.04
	  	Notification to Securityholders	  	23
	 SECTION 7.05
	  	Repayment of Advances	  	23
	 SECTION 7.06
	  	Waiver of Past Defaults	  	23
		
	ARTICLE VIII MISCELLANEOUS	  	24
	 SECTION 8.01
	  	Amendment	  	24
	 SECTION 8.02
	  	Termination	  	24
	 SECTION 8.03
	  	Notices	  	24
	 SECTION 8.04
	  	Governing Law	  	24
	 SECTION 8.05
	  	Severability	  	24
	 SECTION 8.06
	  	Assignment; Rights of the Indenture Trustee	  	24
	 SECTION 8.07
	  	Successors and Assigns	  	25
	 SECTION 8.08
	  	Counterparts	  	25
	 SECTION 8.09
	  	Headings and Cross-References	  	25
	 SECTION 8.10
	  	No Petition Covenants	  	25
	 SECTION 8.11
	  	Limitation of Liability of the Trustees.	  	25
	 SECTION 8.12
	  	MUTUAL WAIVER OF JURY TRIAL	  	26

  

	EXHIBIT A	Form of Servicer’s Certificate 

  

 - ii - 

 SERVICING AGREEMENT 

SERVICING AGREEMENT, dated as of May 27, 2010 (as it may be further amended, supplemented or modified, this
“Agreement”), among Navistar Financial Retail Receivables Corporation, a Delaware corporation (“NFRRC”), Navistar Financial 2010-A Owner Trust, a Delaware statutory trust (the “Issuer”), Navistar
Financial Corporation, a Delaware corporation (hereinafter, together with its successors and assigns, “NFC” or, in its capacity as servicer hereunder, the “Servicer”), Citibank, N.A., a national banking association,
acting in its capacity as Indenture Trustee pursuant to the Indenture (the “Indenture Trustee”). 
 R
E C I T A L S: 
 WHEREAS, NFRRC and NFC are parties to the Purchase Agreement,
pursuant to which NFRRC will purchase the Designated Receivables and the Related Security with respect thereto from NFC; 

WHEREAS, the Issuer will issue Notes pursuant to the Indenture between the Issuer and the Indenture Trustee and exchange the Notes and
the Certificates for the Receivables and the Related Security with respect thereto transferred by NFRRC pursuant to the Pooling Agreement; 

WHEREAS, the Servicer desires to perform the servicing obligations set forth herein relating to the Receivables and the Related Security
owned by the Issuer for and in consideration of the fees and other benefits set forth in this Agreement; and 
 WHEREAS, the
parties wish to set forth the terms and conditions upon which the Receivables are to be serviced by the Servicer. 
 NOW,
THEREFORE, in consideration of the foregoing, the other good and valuable consideration and the mutual terms and covenants contained herein, the parties hereto agree as follows: 

ARTICLE I 

DEFINITIONS; SERVICING SUPPLEMENT 

SECTION 1.01 Certain Defined Terms. Capitalized terms used in the above recitals and in this Agreement shall have the respective
meanings assigned them in Part I of Appendix A to the Pooling Agreement dated as of the date hereof between the Issuer and NFRRC (as it may be amended, supplemented or modified from time to time), unless otherwise defined herein. The rules
of construction set forth in Part II of Appendix A to the Pooling Agreement shall be applicable to this Agreement. 

ARTICLE II 

ADMINISTRATION AND SERVICING OF RECEIVABLES 

SECTION 2.01 Duties of the Servicer. The Servicer is hereby appointed and authorized to act as agent for the Owner and the
Indenture Trustee with respect to servicing the Receivables and in such capacity shall manage, service, administer and make collections on the 

 
Receivables with reasonable care, using that at least degree of skill and attention that the Servicer exercises as of the date of this Agreement with respect to comparable medium and heavy duty
truck, truck chassis, bus and trailer receivables that it services for itself or others. The Servicer hereby accepts such appointment and authorization and agrees to perform the duties of Servicer with respect to the Receivables set forth herein.
The Servicer’s duties with respect to all Receivables shall include collection and posting of all payments, responding to inquiries of Obligors on the Receivables, investigating delinquencies, sending payment coupons to Obligors, reporting tax
information to Obligors, policing the collateral securing the Receivables, accounting for collections with respect thereto and performing the other duties specified herein. Subject to the provisions of Section 2.02, the Servicer shall
follow its customary standards, policies and procedures and shall have full power and authority, acting alone, to do any and all things in connection with such managing, servicing, administration and collection that it may deem necessary or
desirable. 
 Without limiting the generality of the foregoing, the Servicer is hereby authorized and empowered by the Owner and
the Indenture Trustee pursuant to this Section 2.01, to execute and deliver any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable instruments, with respect to the
Receivables and the related Financed Vehicles. The Servicer is hereby authorized to commence in the name of the Owner or, to the extent necessary, in its own name, a legal proceeding to enforce a Liquidating Receivable as contemplated by
Section 2.04, and to commence or participate in any legal proceeding (including a bankruptcy proceeding) relating to or involving a Receivable (including a Liquidating Receivable). If the Servicer commences or participates in any such
legal proceeding in its own name, the Owner thereupon shall be deemed to have automatically assigned such Receivable to the Servicer solely for purposes of commencing and participating in any such proceeding as a party or claimant, and the Servicer
is hereby authorized and empowered by the Owner, to execute and deliver in the Servicer’s name any notices, demands, claims, complaints, responses, affidavits or other documents or instruments in connection with any such proceeding. If in any
proceeding it is held that the Servicer may not enforce a Receivable on the ground that it is not a real party in interest or a holder entitled to enforce the Receivable, the Owner shall, at the Servicer’s expense and written directions, take
such reasonable steps as the Servicer reasonably deems necessary to enforce the Receivable, including bringing suit in the name of such Person. The Owner, upon the written request of the Servicer, shall furnish the Servicer with any powers of
attorney and other documents and take any other steps which the Servicer may reasonably deem necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties under this Agreement and the other Basic Documents.
Except to the extent required by the preceding three sentences, the authority and rights granted to the Servicer in this Section 2.01 shall be nonexclusive and shall not be construed to be in derogation of any equivalent authority and
rights of the Owner. 
 SECTION 2.02 Establishment of Accounts. 

(a) (i) The Servicer, for the benefit of the Financial Parties, shall establish and maintain in the name of the Indenture Trustee an
Eligible Deposit Account known as the Navistar Financial 2010-A Owner Trust Collection Account (the “Collection Account”), bearing an additional designation clearly indicating that the funds deposited therein are held for the
benefit of the Financial Parties. 
  

 - 2 - 

 (ii) The Servicer, for the benefit of the Noteholders, shall establish and maintain in the
name of the Indenture Trustee an Eligible Deposit Account known as the Navistar Financial 2010-A Owner Trust Note Distribution Account (the “Note Distribution Account”), bearing an additional designation clearly indicating that the
funds deposited therein are held for the benefit of the Noteholders. 
 (iii) Pursuant to the Trust Agreement, the Servicer,
for the benefit of the Certificateholders, shall establish and maintain in the name of the Trust an Eligible Deposit Account known as the Navistar Financial 2010-A Owner Trust Certificate Distribution Account (the “Certificate Distribution
Account”), bearing an additional designation clearly indicating that the funds deposited therein are held for the benefit of the Certificateholders. 

(iv) The Servicer, for the benefit of the Financial Parties (excluding the Certificateholder), shall establish and maintain in the name
of the Indenture Trustee an Eligible Deposit Account known as the Navistar Financial 2010-A Owner Trust Reserve Account (the “Reserve Account”), bearing an additional designation clearly indicating that the funds deposited therein
are held for the benefit of such Financial Parties. 
 (b) (i) Each of the Designated Accounts and the Certificate Distribution
Account shall be initially established with the Indenture Trustee and shall be maintained with the Indenture Trustee so long as (A) the short-term unsecured debt obligations of the Indenture Trustee have the Required Deposit Rating or
(B) each of the Designated Accounts and the Certificate Distribution Account qualifies as an Eligible Deposit Account. All amounts held in such accounts (including amounts, if any, which the Servicer is required to remit daily to the Collection
Account pursuant to Section 2.11) shall, to the extent permitted by applicable laws, rules and regulations, be invested, at the written direction of the Servicer, by such bank or trust company in Eligible Investments. Such written
direction shall constitute certification by the Servicer that any such investment is authorized by this Section 2.02. Funds deposited in the Reserve Account shall be invested in Eligible Investments which mature, unless payable on
demand, prior to the next Distribution Date; provided, that such investments may mature on a later date if the Rating Agency Condition is satisfied with respect thereto. Investments in Eligible Investments shall be made in the name of the Indenture
Trustee or its nominee, and such investments shall not be sold or disposed of prior to their maturity. Eligible Investments may include those investments with respect to which the Indenture Trustee or an Affiliate of the Indenture Trustee is an
obligor or provides services and received compensation. Should the short-term unsecured debt obligations of the Indenture Trustee (or any other bank or trust company with which the Designated Accounts or the Certificate Distribution Account are
maintained) no longer have the Required Deposit Rating, then the Servicer shall within 10 Business Days (or such longer period, not to exceed 30 calendar days, upon satisfaction of the Rating Agency Condition with respect thereto), with the
Indenture Trustee’s assistance as necessary, cause the Designated Accounts and the Certificate Distribution Account (X) to be moved to a bank or trust company, the short-term unsecured debt obligations of which shall have the Required
Deposit Rating, or (Y) to be moved to an Eligible Deposit Account. Investment Earnings on funds deposited in the Designated Accounts shall be deposited into the Certificate Distribution Account for distribution to the Certificateholders, except
when the Indenture Trustee is acting as successor Servicer in which case such Investment Earnings shall be payable to the Indenture Trustee as successor Servicer. The Indenture Trustee or the other Person holding the

  

 - 3 - 

 
Designated Accounts and the Certificate Distribution Account as provided in this Section 2.02(b)(i) shall be the “Securities Intermediary.” If the Securities
Intermediary shall be a Person other than the Indenture Trustee, the Servicer shall obtain the express agreement of such Person to the obligations of the Securities Intermediary set forth in this Section 2.02. 

(ii) With respect to the Designated Account Property, the Securities Intermediary agrees, by its acceptance hereof, that: 

(A) The Designated Accounts are accounts to which Financial Assets will be credited. 

(B) All securities or other property underlying any Financial Assets credited to the Designated Accounts shall be
registered in the name of the Securities Intermediary, indorsed to the Securities Intermediary or in blank or credited to another securities account maintained in the name of the Securities Intermediary, and in no case will any Financial Asset
credited to any of the Designated Accounts be registered in the name of the Issuer, the Servicer or the Seller, payable to the order of the Issuer, the Servicer or the Seller or specially endorsed to the Issuer, the Servicer or the Seller except to
the extent the foregoing have been specially indorsed to the Securities Intermediary or in blank. 
 (C) All
property delivered to the Securities Intermediary pursuant to this Agreement will be promptly credited to the appropriate Designated Account. 

(D) Each item of property (whether investment property, Financial Asset, security, instrument or cash) credited to a
Designated Account shall be treated as a “financial asset” within the meaning of Section 8-102(a)(9) of the New York UCC. 

(E) If at any time the Securities Intermediary shall receive any order from the Indenture Trustee directing transfer or
redemption of any Financial Asset relating to the Designated Accounts, the Securities Intermediary shall comply with such entitlement order without further consent by the Issuer, the Servicer, the Seller or any other Person. 

(F) The Designated Accounts shall be governed by the laws of the State of New York, regardless of any provision in any
other agreement. For purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction and the Designated Accounts (as well as the Securities Entitlements related thereto) shall be governed by the laws of the State
of New York. 
 (G) The Securities Intermediary has not entered into, and until the termination of this Agreement
will not enter into, any agreement with any other person relating to the Designated Accounts and/or any Financial Assets credited thereto pursuant to which it has agreed to comply with entitlement orders (as defined in Section 8-102(a)(8) of
the New York UCC) of such other person 
  

 - 4 - 

 
and the Securities Intermediary has not entered into, and until the termination of this Agreement will not enter into, any agreement with the Issuer, the Seller, the Servicer or the Indenture
Trustee purporting to limit or condition the obligation of the Securities Intermediary to comply with entitlement orders as set forth in Section 2.02(b)(ii)(E). 

(H) Except for the claims and interest of the Indenture Trustee and of the Issuer in the Designated Accounts, the
Securities Intermediary knows of no claim to, or interest in, the Designated Accounts or in any Financial Asset credited thereto. If any other person asserts any lien, encumbrance or adverse claim (including any writ, garnishment, judgment, warrant
of attachment, execution or similar process) against the Designated Accounts or in any Financial Asset carried therein, the Securities Intermediary will promptly notify the Indenture Trustee, the Servicer and the Issuer thereof. 

(I) The Securities Intermediary will promptly send copies of all statements, confirmations and other correspondence
concerning the Designated Accounts and/or any Designated Account Property simultaneously to each of the Servicer and the Indenture Trustee at the addresses set forth in Appendix B to the Pooling Agreement. 

(iii) The Servicer shall have the power, revocable by the Indenture Trustee (or by the Issuer with the consent of the Indenture Trustee)
to instruct the Indenture Trustee to make withdrawals and payments from the Designated Accounts for the purpose of permitting the Servicer or the Issuer to carry out its respective duties hereunder or permitting the Indenture Trustee to carry out
its duties under the Indenture. 
 (iv) The Indenture Trustee shall possess all right, title and interest in and to all funds
on deposit from time to time in the Designated Accounts and in all proceeds thereof (except Investment Earnings). Except as otherwise provided herein or in the Indenture, the Designated Accounts shall be under the sole dominion and control of the
Indenture Trustee for the benefit of the applicable Financial Parties. 
 (v) The Servicer shall not direct the Indenture
Trustee to make any investment of any funds or to sell any investment held in any of the Designated Accounts unless the security interest granted and perfected in such account shall continue to be perfected in such investment or the proceeds of such
sale, in either case without any further action by any Person, and, in connection with any direction to the Indenture Trustee to make any such investment or sale, if requested by the Indenture Trustee, the Servicer shall deliver to the Indenture
Trustee an Opinion of Counsel, acceptable to the Indenture Trustee, to such effect. 
 (c) Pursuant to the Trust Agreement, the
Issuer shall possess all right, title and interest in and to all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof. Except as otherwise provided herein or in the Trust Agreement, the Certificate
Distribution Account shall be under the sole dominion and control of the Issuer for the benefit of the Certificateholders. If, at any time, the Certificate Distribution Account ceases to be an Eligible Deposit Account, the Servicer shall within 10
Business Days (or such longer 
  

 - 5 - 

 
period, not to exceed 30 calendar days, as to which the Certificateholder or any Rating Agency may consent) establish a new Certificate Distribution Account as an Eligible Deposit Account and
shall cause the Issuer to transfer any cash and/or any investments in the old Certificate Distribution Account to such new Certificate Distribution Account. 

(d) The Indenture Trustee, the Issuer, the Securities Intermediary and each other Eligible Deposit Institution with whom a Designated
Account or the Certificate Distribution Account is maintained waives any right of set-off, counterclaim, security interest or bankers’ lien to which it might otherwise be entitled. 

SECTION 2.03 Collection of Receivables Payments. The Servicer shall make reasonable efforts to collect all payments called for
under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection practices, policies and procedures as it follows with respect to comparable medium and heavy duty truck, truck chassis, bus and
trailer receivables that it services for itself or others. Except as provided in Section 2.07(c), the Servicer is hereby authorized to grant extensions, rebates or adjustments on a Receivable without the prior consent of the Owner of
such Receivable and to rewrite, in the ordinary course of its business, a Receivable to reflect the Full Prepayment of a Receivable with respect to any related Financed Vehicle without the prior consent of the Owner of such Receivable. The Servicer
is authorized in its discretion to waive any prepayment charge, late payment charge or any other fees that may be collected in the ordinary course of servicing such Receivable. Subject to Section 2.13 of this Agreement, the Servicer
shall allocate payments on Receivables between principal and interest in accordance with the customary servicing procedures it follows with respect to all comparable medium and heavy duty truck, truck chassis, bus and trailer receivables that it
services for itself or others. 
 SECTION 2.04 Realization Upon Liquidating Receivables. 

(a) The Servicer shall use commercially reasonable efforts, consistent with its customary servicing procedures, to repossess or otherwise
comparably convert the ownership or otherwise take possession of each Financed Vehicle that it has reasonably determined should be repossessed or otherwise converted following a default under the Receivable secured by or relating to each such
Financed Vehicle. The Servicer is authorized to follow such practices, policies and procedures as it shall deem necessary or advisable and as shall be customary and usual in its servicing of medium and heavy duty truck, truck chassis, bus and
trailer receivables that it services for itself or others, which practices, policies and procedures may include reasonable efforts to realize upon or obtain benefits of any lease assignments, any Dealer Liability, any Navistar Purchase Obligations,
any Insurance Policies and any Guaranties, in each case with respect to the Receivables, selling the related Financed Vehicle or Vehicles at public or private sale or sales and other actions by the Servicer in order to realize upon any Receivable.
The foregoing is subject to the provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with any repair or towards the repossession of such Financed Vehicle unless it
shall determine in its discretion that such repair or repossession shall increase the proceeds of liquidation of the related Receivable by an amount greater than or equal to the amount of such expenses. The Servicer shall be entitled to receive
Liquidation Expenses with respect to each Liquidating Receivable at such time as the Receivable becomes a Liquidating Receivable in accordance with Section 8.2(b)(i) of the Indenture. 

 

 - 6 - 

 (b) The Servicer shall pay all costs, expenses and liabilities incurred by it in connection
with any action taken in respect of a Financed Vehicle; provided, however, that it shall be entitled to reimbursement of such costs and expenses to the extent they constitute Liquidation Expenses or expenses recoverable under an
applicable Insurance Policy. 
 SECTION 2.05 Maintenance of Insurance Policies. The Servicer shall, in accordance with
its customary servicing procedures, require that each Obligor under a Receivable shall have obtained physical damage insurance covering each Financed Vehicle as of the execution of such Receivable, unless the Servicer has in accordance with its
customary procedures permitted an Obligor to self-insure the Financed Vehicle or Financed Vehicles securing such Receivable. The Servicer shall, in accordance with its customary servicing procedures, monitor such physical damage insurance with
respect to each Financed Vehicle that secures or is related to each Receivable. 
 SECTION 2.06 Maintenance of Security
Interests in Vehicles. The Servicer shall, in accordance with its customary servicing procedures and at its own expense, promptly take such steps as are necessary to maintain perfection of the first priority security interest created by a
Receivable in the related Financed Vehicle or Financed Vehicles. The Owner of each Receivable hereby authorizes the Servicer to re-perfect such security interests as necessary because of the relocation of a Financed Vehicle or for any other
reason. 
 SECTION 2.07 Covenants of the Servicer. The Servicer hereby makes the following covenants on which the Issuer
is relying in acquiring the Receivables under the Pooling Agreement and issuing the Securities under the Further Transfer and Servicing Agreements: 

(a) except as contemplated by the other Basic Documents, the Servicer shall not release any Financed Vehicle from the security or
ownership interest securing the related Receivable; 
 (b) the Servicer shall do nothing to impair the rights of NFRRC, the
Issuer, the Securityholders or the Indenture Trustee in and to such Receivables; 
 (c) the Servicer shall not amend or
otherwise modify any Receivable such that the Starting Receivable Balance, the Annual Percentage Rate or the total number of Scheduled Payments is altered or such that the final scheduled payment on such Receivable will be due any later than
April 30, 2017; and 
 (d) other than solely for the purpose of collecting or enforcing the Receivables for the benefit of
the Owner, (i) the Servicer shall not at any time have or in any way attempt to assert any interest in any Receivables or Related Security or records related to the Collateral and (ii) the entire legal and equitable interest of the Owner
of a Receivable in such Receivable and the Related Security shall at all times be vested in such Owner. 
  

 - 7 - 

 SECTION 2.08 Purchase of Receivables Upon Breach of Covenant. 

(a) Upon discovery by the Servicer or a Responsible Officer of any of the Interested Parties of a breach of any of the covenants set
forth in Sections 2.06 and 2.07 with respect to any Receivable, the party discovering such breach shall give prompt written notice thereof to the others. As of the second Accounting Date (or, at the Servicer’s election, the
first Accounting Date) following notice to or discovery by the Servicer of a breach of any covenant of the Servicer that materially and adversely affects any Receivable, unless such breach is cured in all material respects, the Servicer shall, with
respect to such Receivable (an “Administrative Receivable”) purchase such Administrative Receivable from the Issuer at a price equal to the Administrative Purchase Payment. The Servicer shall pay the Administrative Purchase Payment
as described in Section 2.11. 
 It is understood and agreed that the obligation of the Servicer to purchase any
Receivable with respect to which such a breach has occurred and is continuing shall, if such obligation is fulfilled, constitute the sole remedy against the Servicer for such breach available to any Interested Party for any such uncured breach.

 (b) Upon receipt of the Administrative Purchase Payment with respect to a Receivable which is an Administrative Receivable,
the Owner shall assign, without recourse, representation or warranty, to the Servicer (and shall take such other actions as the Servicer may reasonably request in writing to perfect or confirm such assignment) all of such Person’s right, title
and interest in, to and under (i) such Administrative Receivable and all monies due thereon and (ii) all Related Security with respect to such Administrative Receivable, such assignment being an assignment outright and not for security.
Upon the assignment of such Administrative Receivable described in the preceding sentence, the Servicer shall own such Administrative Receivable, and all such Related Security, free of any further obligations to such Person with respect thereto.

 SECTION 2.09 Servicing Fee. In consideration for its services hereunder and as compensation for expenses paid as
contemplated by Section 2.10, the Servicer shall be entitled to receive on each Distribution Date a servicing fee (the “Basic Servicing Fee”) for the related Monthly Period equal to one-twelfth of 1% (the “Basic
Servicing Fee Rate”) multiplied by the Aggregate Receivables Balance as of the last day of the preceding Monthly Period. On each Distribution Date, the Servicer will be paid the Basic Servicing Fee and any unpaid Basic Servicing Fees from
all prior Distribution Dates (collectively, the “Total Servicing Fee”) pursuant to Section 8.2(c) of the Indenture to the extent of funds available therefor. In addition, the Servicer will be entitled to receive any late fees,
prepayment charges or certain similar fees and charges collected during a Monthly Period (the “Supplemental Servicing Fee”). The Servicer shall retain all Supplemental Servicing Fees and shall not be obligated to deposit them into
the Collection Account. 
 SECTION 2.10 Servicer Expenses. The Servicer shall be required to pay all expenses incurred by
it in connection with its activities hereunder, including fees and disbursements of the Issuer, any trustees and independent accountants, taxes imposed on the Servicer and expenses incurred in connection with distributions and reports and all other
fees and expenses not expressly stated under this Agreement to be for the account of the Interested Parties, but excluding federal, state and local income taxes, if any, of the Issuer or any Securityholder. 

 

 - 8 - 

 SECTION 2.11 Deposits to Collection Account. The Servicer shall remit to the
Indenture Trustee for deposit to the Collection Account all Collections it receives during each Monthly Period within two Business Days after receipt thereof. However, Collections received during the period from the Cutoff Date to the Closing Date
shall be deposited to the Collection Account within two Business Days after the Closing Date. The Servicer shall remit to the Indenture Trustee for deposit (in immediately available funds) in the Collection Account the aggregate Administrative
Purchase Payments with respect to Administrative Receivables to be purchased as of the last day of any Monthly Period on the Business Day immediately preceding the immediately succeeding Distribution Date. 

SECTION 2.12 Collections. In the event that: 

(a) NFC is the Servicer, 

(b) a Servicer Default shall not have occurred and be continuing, and 

(c) (i) the Servicer satisfies the requirements for monthly remittances of Collections established by each Rating Agency, and upon
satisfaction of such requirements, each Rating Agency reaffirms the rating of the Notes at the level at which they would be rated if Collections were remitted within two Business Days of receipt, or 

(ii) the short-term unsecured debt of the Servicer is rated at least “R-1” by DBRS, if rated by DBRS, and “P-1” by
Moody’s, or 
 (iii) a standby letter of credit has been issued by an Eligible Institution which, as of each date during
the period that the Servicer is making monthly remittances of Collections, has an undrawn amount at least equal to 150% of all Scheduled Payments due in respect of the Receivables for the latest Monthly Period ended prior to the next succeeding
Distribution Date (and the aggregate amount of unremitted Collections does not at any time exceed 90% of the undrawn amount of such letter of credit), 

then, the Servicer shall not be required to deposit Collections into the Collection Account until the Business Day preceding the Distribution Date
following the Monthly Period during which such Collections were received. Pending deposit into the Collection Account, Collections may be employed by the Servicer at its own risk and for its own benefit and will not be segregated from its own funds.

 SECTION 2.13 Application of Collections. For the purposes of this Agreement, all Collections for the related Monthly
Period with respect to each Receivable shall be applied by the Servicer as follows: 
 (a) all payments by or on behalf of the
Obligor or other collections on a Receivable (including Warranty Payments and Administrative Purchase Payments but excluding Supplemental Servicing Fees and Investment Earnings) shall be applied (i) first, to reduce Outstanding Monthly
Advances, if any, with respect to such Receivable, (ii) second, to the Scheduled Payment on such Receivable for such Monthly Period, and (iii) third, the remainder shall constitute, with respect to such Receivable, a Full
Prepayment or Partial Prepayment; and 
  

 - 9 - 

 (b) a Partial Prepayment made on a Receivable is applied to reduce the final Scheduled
Payment and will thereafter, to the extent the Partial Prepayment exceeds the final Scheduled Payment, reduce Scheduled Payments in reverse chronological order beginning with the penultimate Scheduled Payment. The Rebate related to such Partial
Prepayment will reduce the final Scheduled Payment and will thereafter, to the extent the Rebate exceeds the final Scheduled Payment, reduce Scheduled Payments in reverse chronological order beginning with the penultimate Scheduled Payment.

 SECTION 2.14 Monthly Advances. Subject to the following sentence, as of each Accounting Date, if the payments received
by the Servicer during the related Monthly Period by or on behalf of the Obligor on a Receivable (other than an Administrative Receivable, a Warranty Receivable or a Liquidating Receivable) after application of such payments under
Section 2.13(a) shall be less than the Scheduled Payment on such Receivable for such Monthly Period, whether as a result of any extension granted to the Obligor or otherwise, then the Servicer shall advance any such shortfall (such
amount, a “Monthly Advance”). The Servicer shall be obligated to make a Monthly Advance in respect of a Receivable only to the extent that the Servicer, in its sole discretion, shall determine that such advance shall be recoverable
(in accordance with the two immediately following sentences) from subsequent collections or recoveries on such Receivable. Subject to Section 8.2 of the Indenture, the Servicer shall be reimbursed for unreimbursed Outstanding Monthly Advances
with respect to a Receivable from the following sources with respect to such Receivable, in each case as set forth in this Agreement, (a) subsequent payments by or on behalf of the Obligor, (b) Liquidation Proceeds, (c) the
Administrative Purchase Payment, together with the amount of any Monthly Advance released pursuant to the definition thereof, and (d) the Warranty Payment. At such time as the Servicer shall determine that Outstanding Monthly Advances with
respect to any Receivable shall not be recoverable from payments with respect to such Receivable, the Servicer shall be reimbursed from any Collections made on other Receivables. 

SECTION 2.15 Additional Deposits. The Servicer shall deposit in the Collection Account the aggregate Monthly Advances pursuant to
Section 2.14. The Servicer and the Warranty Purchaser shall deposit in the Collection Account the aggregate Administrative Purchase Payments and Warranty Payments with respect to Administrative Receivables and Warranty Receivables,
respectively. All such deposits with respect to a Monthly Period shall be made in immediately available funds on the Transfer Date with respect to the Distribution Date related to such Monthly Period. 

SECTION 2.16 Net Deposits. At any time that (a) NFC shall be the Servicer and (b) the Servicer shall be permitted by
Section 2.12 of this Agreement to remit collections on a basis other than a daily basis, the Indenture Trustee at the written request of the Servicer may make any remittances pursuant to this Article II or Article VIII of the
Indenture net of amounts to be distributed by the Indenture Trustee to such remitting party. Nonetheless, each such party shall account for all of the above described remittances and distributions as if the amounts were deposited and/or transferred
separately. 
  

 - 10 - 

 SECTION 2.17 Servicer’s Certificate 

(a) Not later than 10:00 a.m. (Chicago, Illinois time) on each Determination Date, the Servicer shall deliver to each Trustee, the Backup
Servicer and the Rating Agencies (in the case of DBRS, ABS_Surveillance@DBRS.com) a Servicer’s Certificate with respect to the immediately preceding Monthly Period, substantially in the form attached hereto as Exhibit A, executed by
the President, any Vice President or the Assistant Treasurer of the Servicer containing all information necessary to each such party for making the calculations, withdrawals, deposits, transfers and distributions required by Sections 8.2
and 8.10 of the Indenture, and all information required to be provided to the Interested Parties under Section 8.8 of the Indenture. Receivables to be purchased by the Servicer under Section 2.08 of this Agreement, by
NFC pursuant to Section 5.04 of the Purchase Agreement or by NFRRC under Section 2.06 of the Pooling Agreement as of the last day of any Monthly Period shall be identified by Receivable number with respect to Retail Notes (in
each case, as set forth in the Schedule of Retail Notes). With respect to any Receivables for which the Seller is the Owner, the Servicer shall deliver to the Seller such accountings relating to such Receivables and the actions of the Servicer with
respect thereto as the Seller may reasonably request. 
 (b) On or before each Determination Date, with respect to the preceding
Monthly Period and the related Distribution Date, the Servicer shall calculate the Available Amount, the Total Available Amount, the Total Servicing Fee, the Backup Servicing Fee, the Aggregate Class A Noteholders’ Interest Distributable
Amount, the Class B Noteholders’ Interest Distributable Amount, the Class C Noteholders’ Interest Distributable Amount, the Priority Principal Distribution Amount, the Regular Principal Distribution Amount, the Principal
Distributable Amount, the Reserve Account Deposit Amount and all other amounts required to determine the amounts to be deposited in or paid from each of the Collection Account, the Note Distribution Account, the Certificate Distribution Account and
the Reserve Account on the next succeeding Distribution Date or Transfer Date, as applicable, and supply such information to the Issuer and the Indenture Trustee. 

(c) On the Closing Date (with respect to the remainder of calendar year 2010) and thereafter, within 15 days prior to the end of each
calendar year while this Agreement remains in effect (with respect to the next succeeding calendar year), the Servicer shall deliver to either the Indenture Trustee or the Owner Trustee, following receipt of a written request, an Officers’
Certificate specifying the days on which banking institutions in Chicago, Illinois are authorized or obligated by law or executive order to be closed. 

ARTICLE III 

STATEMENTS AND REPORTS 

SECTION 3.01 Annual Statement as to Compliance; Notice of Servicer Default; Tax Reports. 

(a) The Servicer shall deliver to the Issuer, the Rating Agencies and the Indenture Trustee, on or before March 1 of each year,
beginning March 1, 2011, an officer’s certificate signed by the Chairman of the Board, Vice Chairman of the Board, the President or any Vice President of the Servicer, dated as of the immediately preceding October 31, stating that
(i) a review of the activities of the Servicer during the Servicer’s immediately preceding fiscal year (or, with respect to the first such certificate, such period as shall have elapsed from

  

 - 11 - 

 
the Closing Date to the last day of the Servicer’s immediately preceding fiscal year) and of its performance under this Agreement has been made under such officer’s supervision and
(ii) to such officer’s knowledge, based on such review, the Servicer has fulfilled all its obligations under this Agreement throughout such period, or, if there has been a default in the fulfillment of any such obligation, specifying each
such default known to such officer and the nature and status thereof. A copy of such certificate may be obtained by any Noteholder or Certificateholder by a request in writing to the Indenture Trustee or Issuer, respectively, addressed to the
Corporate Trust Office of the Indenture Trustee or the Owner Trustee, respectively. 
 (b) The Servicer shall deliver to the
Issuer, each Trustee and the Rating Agencies, promptly after having obtained knowledge thereof, but in no event later than five Business Days thereafter, written notice in an Officer’s Certificate of any Servicer Default under
Section 7.01 or event which with the giving of notice or lapse of time, or both, would become a Servicer Default under Section 7.01. 

(c) The Servicer shall prepare and deliver to the Issuer and the Indenture Trustee the annual report described in
Section 8.8(b) of the Indenture. 
 SECTION 3.02 Annual Accountants’ Report. 

(a) The Servicer shall cause a firm of independent public accountants, who may also render other services to the Servicer or NFRRC, to
deliver to the Issuer, each Trustee and the Rating Agencies, on or before March 1 of each year, beginning with March 1, 2011, with respect to the Servicer’s immediately preceding fiscal year, (or, with respect to the first such
report, such period as shall have elapsed from the Closing Date to the last day of the Servicer’s immediately preceding fiscal year), a copy of the report (the “Accountants’ Report”) addressed to the board of directors of
the Servicer, the Issuer, and to each Trustee to the effect that such firm has audited the financial statements of the Servicer and issued its report thereon and that such audit (i) was made in accordance with generally accepted auditing
standards, (ii) included tests relating to receivables (including certain of the Receivables) serviced for others in accordance with the requirements of the Uniform Single Attestation Program for Mortgage Bankers (the
“Program”), to the extent the procedures in the Program are applicable to the servicing obligations set forth in this Agreement, and (iii) except as described in the report, disclosed no exceptions or errors in the records
relating to receivables (including certain of the Receivables) serviced for others that, in the firm’s opinion, the Program requires such firm to report. 

(b) The same firm of independent public accountants shall have certified to NFRRC that the firm is independent of NFRRC and the Servicer
within the meaning of the Code of Professional Ethics of the American Institute of Certified Public Accountants. 
 (c) A copy
of the Accountant’s Report may be obtained by any Noteholder or Certificateholder by a request in writing to the Indenture Trustee or the Issuer, addressed to the Corporate Trust Office of the Indenture Trustee or the Owner Trustee,
respectively. 
 SECTION 3.03 Access to Certain Documentation and Information Regarding Receivables. The Servicer shall,
upon receipt of reasonable notice, provide to the Issuer, each 
  

 - 12 - 

 
Trustee and Securityholders reasonable access to the Servicer’s records regarding the Receivables owned by the Issuer. The Servicer shall provide such access to any Securityholder only in
such cases where a Securityholder is required by applicable statutes or regulations to review such documentation. In each case, such access shall be afforded without charge but only upon reasonable request and during normal business hours at offices
of the Servicer designated by the Servicer. Nothing in this Section 3.03 shall derogate from the obligation of the Servicer to observe any applicable law prohibiting disclosure of information regarding Obligors, and the failure of the
Servicer to provide access as provided in this Section 3.03 as a result of such obligation shall not constitute a breach of this Section 3.03. 

SECTION 3.04 Maintenance of Schedule of Retail Notes. The Servicer shall maintain at all times the Schedule of Retail Notes, which
shall list separately all Retail Notes which are owned by the Issuer. The Schedule of Retail Notes shall be updated to reflect all sales of Receivables as a result of a Receivable becoming a Warranty Receivable or an Administrative Receivable. The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee an updated Schedule of Retail Notes on or before each Distribution Date. 

SECTION 3.05 Amendments to Schedule of Retail Notes. If the Servicer, during a Monthly Period, assigns to a Receivable an account
number that differs from the account number previously identifying such Receivable on the Schedule of Retail Notes, the Servicer shall amend the Schedule of Retail Notes to report the newly assigned account number. Each Schedule of Retail Notes
delivered on a Distribution Date pursuant to Section 3.04 shall list all new account numbers assigned to Receivables during such Monthly Period and shall show by cross reference the prior account numbers identifying such Receivables on
the previously distributed Schedule of Retail Notes. 
 SECTION 3.06 Maintenance of Systems and Receivables List.

 (a) The Servicer shall maintain accounts and records as to each Receivable accurately and in sufficient detail to permit
(i) the reader thereof to know the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and extensions of any scheduled payments made not less than 45 days prior thereto, and
(ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the amounts from time to time deposited in the Collection Account with respect to such Receivable. 

(b) The Servicer shall maintain its computer systems so that the Servicer’s master computer records (including any backup archives)
that refer to any Receivable shall indicate clearly that the Receivable is owned by the Issuer and that such Receivable has been pledged by the Issuer to the Indenture Trustee. Indication of the Issuer’s and the Indenture Trustee’s
interest in a Receivable shall be deleted from or modified on the Servicer’s computer systems when, and only when, the Receivable shall have been paid in full, repurchased by NFC, purchased by the Servicer or become a Liquidating Receivable as
to which the Servicer and NFC has discontinued pursuing remedies with respect to collection in accordance with its customary servicing procedures and such Receivable is deleted from the Servicer’s computer systems. 

 

 - 13 - 

 (c) If at any time the Servicer shall propose to sell, grant a security interest in, or
otherwise transfer any interest in truck, truck chassis, bus or trailer receivables to any prospective purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser, lender or other transferee, computer tapes, records
or printouts (including any of those restored from backup archives) that, if they refer in any manner whatsoever to any Receivable, indicate clearly that such Receivable has been sold and is owned by the Issuer and has been pledged to the Indenture
Trustee unless such Receivable has been paid in full, repurchased by NFC or purchased by the Servicer. 
 (d) The Servicer will
furnish to the Issuer and the Indenture Trustee at any time upon request a list of all Receivables then held as part of the Owner Trust Estate, together with a reconciliation of such list to the Schedule of Retail Notes and to each of the
Servicer’s Certificates furnished before such request indicating removal of Receivables from the Owner Trust Estate. Upon request, the Servicer shall furnish a copy of any such list to the Seller. 

(e) The Servicer shall prepare and file such financing statements and cause to be prepared and filed such continuation and other
statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of the Issuer under the Pooling Agreement in the Receivables, the Related Security and the other property conveyed
thereunder (to the extent such property constitutes Code Collateral) and the Indenture Trustee’s security interest in the Receivables, the Related Security and the other Collateral (to the extent such Collateral constitutes Code Collateral).
The Servicer shall deliver (or cause to be delivered) to the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing. 

ARTICLE IV 

THE CUSTODIAN 

SECTION 4.01 Custody of Receivable Files. To assure uniform quality in servicing the Receivables and to reduce administrative
costs, the Owner of each Receivable and the Indenture Trustee hereby appoint the Servicer, and the Servicer hereby accepts such appointment, to act as agent for the Owner of each Receivable and the Indenture Trustee (for the benefit of the Financial
Parties) as custodian to maintain custody of the following documents or instruments with respect to such Receivable (as to each Receivable, the “Receivable File”), which will be hereby constructively delivered to the Owner of the
related Receivable and the Indenture Trustee: 
 (a) the fully executed original of the Retail Note; 

(b) documents evidencing or related to any related Insurance Policy; 

(c) a copy of the credit application of each Obligor, fully executed by each such Obligor on NFC’s customary form, or on a form
approved by NFC, for such application; 
 (d) where permitted by law, the original Certificate of Title (when received) and
otherwise such documents, if any, that NFC keeps on file in accordance with its customary procedures indicating that the Financed Vehicle is owned by the Obligor and subject to the interest of NFC as first lienholder or secured party; and

  

 - 14 - 

 (e) any and all other documents that NFC keeps on file in accordance with its customary
procedures relating to the individual Receivable, Obligor or Financed Vehicle. 
 SECTION 4.02 Duties of Servicer as
Custodian. 
 (a) The Servicer shall hold each Receivable File for the benefit of the Owner of the related Receivable and
the Indenture Trustee (for the benefit of the Financial Parties) and maintain such accurate and complete accounts, records and computer systems pertaining to each Receivable File as shall enable NFRRC, the Issuer and the Indenture Trustee to comply
with their respective obligations under the Purchase Agreement and the Further Transfer and Servicing Agreements. Each Receivable shall be identified as such on the books and records of the Servicer to the extent the Servicer reasonably determines
to be necessary to comply with the terms and conditions of the Purchase Agreement and, if applicable, the Further Transfer and Servicing Agreements. In performing its duties as custodian, the Servicer shall act with reasonable care, using at least
that degree of skill and attention that the Servicer exercises as of the date of this Agreement with respect to the receivable files relating to comparable truck, truck chassis, bus and trailer receivables that the Servicer services and holds for
itself or others. The Servicer shall conduct, or cause to be conducted, periodic physical inspections of the Receivable Files held by it under this Agreement, and of the related accounts, records and computer systems, in such manner as shall enable
the Owner Trustee and the Indenture Trustee to verify the accuracy of the Servicer’s inventory and record keeping. The Servicer shall promptly report to each Owner and the Indenture Trustee any failure on its part to hold the Receivable Files
and maintain its accounts, records and computer systems as herein provided and promptly take appropriate action to remedy any such failure. 

(b) The Servicer shall maintain each Receivable File at its principal office at 425 N. Martingale Road, Suite 1800, Schaumburg,
Illinois, 60173, or at such other office of the Servicer as shall from time to time be identified to the Owners and the Indenture Trustee upon 60 days’ prior written notice. Subject only to the Custodian’s security requirements applicable
to its own employees having access to similar records held by the Servicer and the limitations set forth in Section 3.03 hereof and otherwise in the Basic Documents, the Servicer shall permit the Owners, the Indenture Trustee or their
duly authorized representatives, attorneys or auditors to inspect the Receivable Files and the related accounts, records and computer systems maintained by the Servicer pursuant hereto at such times as such party may reasonably request. 

(c) In general, the Servicer shall attend to all nondiscretionary details in connection with maintaining custody of the Receivable Files.
In addition, the Servicer shall assist the Owner Trustee generally in the preparation of routine reports to Securityholders, if any, or to regulatory bodies to the extent necessitated by the Servicer’s custody of the Receivable Files.

 (d) Except as otherwise contemplated in any other Basic Document, the Servicer shall not be required to physically separate
the Receivables Files from receivables files relating to receivables owned by NFC or its affiliates; provided, that the Receivables Files shall at all times be physically segregated from receivables files relating to receivables owned or
serviced by others. 
  

 - 15 - 

 SECTION 4.03 Custodian’s Indemnification. The Servicer as custodian shall
indemnify the Issuer, the Indenture Trustee, the Owner Trustee and the Financial Parties and each of their officers, directors and agents for any and all liabilities, obligations, losses, compensatory damages, payments, costs or expenses of any kind
whatsoever that may be imposed on, incurred by or asserted against the Issuer, the Indenture Trustee, the Owner Trustee and the Financial Parties or any of their officers, directors and agents as the result of any improper act or omission in any way
relating to the maintenance and custody by the Servicer as custodian of the Receivable Files; provided, however, that the Servicer shall not be liable to the Issuer, the Indenture Trustee, the Owner Trustee or the Financial Parties or
any of their officers, directors and agents for any portion of any such amount resulting from the willful misfeasance, bad faith or negligence of such Person. 

SECTION 4.04 Effective Period and Termination. The Servicer’s appointment as Custodian with respect to a Receivable File
hereunder shall become effective as of the Purchase Date and shall continue in full force and effect until terminated pursuant to this Section 4.04. If the Servicer shall resign as Servicer in accordance with the provisions of this
Agreement, or if all of the rights and obligations of the Servicer shall have been terminated under Article VII, the appointment of such Servicer as custodian shall be terminated and the terminated Custodian shall deliver the Receivables
Files to (or at the direction of) the Indenture Trustee pursuant to Section 7.02 of this Agreement. Upon (a) the repurchase of a Warranty Receivable by NFC pursuant to the Purchase Agreement, (b) purchase of a Warranty
Receivable by NFRRC pursuant to the Pooling Agreement, or (c) purchase of an Administrative Receivable by the Servicer pursuant to Section 2.08(a) of this Agreement, the Servicer shall deliver the related Receivable File to or at
the direction of the purchaser. Upon delivery of such Receivable File, the Servicer’s obligations as Custodian with respect to such Receivable File shall terminate. 

ARTICLE V 

REPRESENTATIONS AND WARRANTIES 

OF THE SERVICER 

SECTION 5.01 Representations and Warranties of the Servicer. The Servicer hereby represents and warrants to NFRRC, the Issuer and
the Indenture Trustee that as of the Purchase Date: 
 (a) Organization and Good Standing. The Servicer has been duly
organized and is validly existing as a corporation, and in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is
presently conducted, and had at all relevant times, and now has, power, authority and legal right to service the Receivables as provided in this Agreement. 

(b) Due Qualification. The Servicer is duly qualified to do business as a foreign corporation in good standing, and has obtained
all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business (including the servicing of the Receivables as required by this Agreement) requires or shall require such
qualification. 
  

 - 16 - 

 (c) Power and Authority. The Servicer has the power and authority to execute and
deliver this Agreement and to perform its obligations hereunder and the execution, delivery and performance by the Servicer of this Agreement have been duly authorized by all necessary corporate action on the part of the Servicer. This Agreement has
been duly executed and delivered by the Servicer. 
 (d) Binding Obligation. This Agreement constitutes a legal, valid
and binding obligation of the Servicer, enforceable against the Servicer in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 

(e) No Violation. The execution and delivery of this Agreement by the Servicer and its performance of its obligations hereunder
will not violate any Requirement of Law or Contractual Obligation of the Servicer and will not result in, or require, the creation or imposition of any Lien on any of its property or assets pursuant to any such Requirement of Law or Contractual
Obligation other than as expressly permitted by the Basic Documents. 
 (f) No Proceedings. There are no actions,
proceedings or, to the Servicer’s knowledge, investigations pending or, to the Servicer’s knowledge, threatened before any Governmental Authority (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement or the issuance of the Securities, or (iii) seeking any determination or ruling that would reasonably be expected to have a Material Adverse Effect with respect to the
Servicer. 
 (g) No Consent. Except as expressly contemplated by the Basic Documents, no consent, permit, approval or
authorization of, or declaration to or filing with, or other act by or in respect of, any Governmental Authority or any other Person is required in connection with the execution, delivery, performance, validity or enforceability by or against the
Servicer of this Agreement. 
 ARTICLE VI 

THE SERVICER 

SECTION 6.01 Merger or Consolidation of, or Assumption of the Obligations of, the Servicer. Any Person (a) into which the
Servicer may be merged or consolidated, (b) resulting from any merger, conversion or consolidation to which the Servicer shall be a party, (c) succeeding to the business of the Servicer, or (d) more than 50% of the voting stock or
other interest of which is owned directly or indirectly by Navistar International Corporation, a Delaware corporation, and which is otherwise servicing NFC’s receivables, which Person in any of the foregoing cases executes an agreement of
assumption to perform every obligation of the Servicer under this Agreement shall be the successor to the Servicer under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this
Agreement, notwithstanding anything in this Agreement to the contrary. The Servicer shall provide prompt notice of any merger, consolidation or succession pursuant to this Section 6.01 to the Rating Agencies, the Owner Trustee and the
Indenture Trustee. 
  

 - 17 - 

 SECTION 6.02 Limitation on Liability of Servicer and Others. 

(a) Neither the Servicer nor any of the directors or officers or employees or agents of the Servicer shall be under any liability to the
Issuer or any Noteholder, except as specifically provided in this Agreement, for any action taken or for refraining from the taking of any action pursuant to this Agreement or any other Further Transfer and Servicing Agreement or for errors in
judgment; provided, however, that this provision shall not protect the Servicer or any such Person against any liability that would otherwise be imposed by reason of willful misfeasance, bad faith or negligence (except errors in
judgment) in the performance of the Servicer’s duties or by reason of reckless disregard of obligations and duties under the Further Transfer and Servicing Agreements. The Servicer and any director, officer or employee or agent of the Servicer
may rely in good faith on the advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising under this Agreement. 

(b) Except as provided in this Agreement, the Servicer shall not be under any obligation to appear in, prosecute or defend any legal
action that is not incidental to its duties to service the Receivables in accordance with this Agreement and that, in its opinion, may involve it in any expense or liability; provided, however, that the Servicer may undertake any
reasonable action that it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties to this Agreement and the interests of the Securityholders under this Agreement and the Noteholders and (to the extent
expressly provided therein) the Certificateholders under the Indenture and the interests of the Certificateholders under the Trust Agreement. In such event, the legal expenses and costs for such action and any liability resulting therefrom shall be
expenses, costs and liabilities of the Issuer, and the Servicer shall be entitled to be reimbursed therefor. 
 SECTION 6.03
Delegation of Duties. So long as NFC acts as Servicer, the Servicer may, at any time without notice or consent, delegate any duties under this Agreement to any Person more than 50% of the voting stock or other interest of which is owned,
directly or indirectly, by NFC. The Servicer may at any time perform specific duties as Servicer through subservicers who are in the business of servicing medium and heavy duty truck, truck chassis, bus and trailer receivables. Any delegation of the
Servicer’s duties under this Section 6.03 shall not relieve the Servicer of its responsibility with respect to such duties. 

SECTION 6.04 Servicer not to Resign. Subject to the provisions of Section 7.02, the Servicer shall not resign from the
obligations and duties imposed on it by this Agreement as Servicer except upon determination that the performance of its duties under this Agreement is no longer permissible under applicable law. Any such determination permitting the resignation of
the Servicer shall be evidenced by an Opinion of Counsel to such effect delivered to the Indenture Trustee. No such resignation shall become effective until the Indenture Trustee or a successor Servicer shall have assumed the responsibilities and
obligations of the Servicer in accordance with Section 7.02. 
  

 - 18 - 

 SECTION 6.05 Servicer Indemnification. 

(a) The Servicer (other than the Indenture Trustee in its capacity as successor Servicer pursuant to Section 7.03 hereof)
shall be liable in accordance with this Agreement only to the extent of the obligations in this Agreement specifically undertaken by the Servicer. Such obligations shall include the following: 

(i) The Servicer (other than any successor Servicer who is not an affiliate of the initial Servicer, including the Indenture Trustee in
its capacity as successor Servicer pursuant to Section 7.03 hereof it being understood that the removed Servicer shall retain such liability) shall defend, indemnify and hold harmless the Indenture Trustee, the Owner Trustee, the Issuer
and the Interested Parties from and against any and all costs, expenses, losses, damages, claims and liabilities arising out of or resulting from the use, ownership or operation by the Servicer or any Affiliate thereof of any Financed Vehicle;

 (ii) The Servicer (other than any successor Servicer who is not an affiliate of the initial Servicer, including the
Indenture Trustee in its capacity as successor Servicer pursuant to Section 7.03 hereof it being understood that the removed Servicer shall retain such liability) shall indemnify, defend and hold harmless the Issuer, the Owner Trustee
and the Indenture Trustee from and against any taxes that may at any time be asserted against any such Person with respect to the transactions contemplated in this Agreement and the Pooling Agreement, including any sales, gross receipts, general
corporation, Illinois corporate income, tangible personal property, privilege or license taxes (but not including any taxes asserted with respect to, and as of the date of, the sale of the Receivables to the Trust or the issuance and original sale
of the Securities, or asserted with respect to ownership of the Receivables, or federal or other income taxes arising out of distributions on the Securities, or any fees or other compensation payable to any such Person) and costs and expenses in
defending against the same; provided, that, if the Issuer is treated as a partnership for federal income tax purpose and is subject to the Illinois Personal Property Replacement Tax, the Servicer shall indemnify the Issuer for any amount of
Illinois Personal Property Replacement Tax to which the Issuer is subject; 
 (iii) The Servicer shall indemnify, defend and
hold harmless the Issuer, the Owner Trustee, the Indenture Trustee and the Interested Parties from and against any and all costs, expenses, losses, claims, damages, and liabilities to the extent that such cost, expense, loss, claim, damage, or
liability arose out of, or was imposed upon such Person through the negligence, willful misfeasance or bad faith of the Servicer in the performance of its duties under this Agreement and any other Transfer and Servicing Agreement or by reason of
reckless disregard of its obligations and duties under any of the Transfer and Servicing Agreements; 
 (iv) The Servicer
(other than any successor Servicer who is not an affiliate of the initial Servicer, including the Indenture Trustee in its capacity as successor Servicer pursuant to Section 7.03 hereof it being understood that the removed Servicer shall
retain such liability) shall indemnify, defend and hold harmless each Trustee and their respective agents, officers, directors and servants, from and against all costs, expenses, losses, claims, damages and liabilities arising out of or incurred in
connection with (A) in the case of the Owner Trustee, the Indenture Trustee’s performance of its duties under the Basic Documents, (B) in the case of the Indenture Trustee, the Owner Trustee’s performance of its duties under the
Basic 
  

 - 19 - 

 
Documents, or (C) the acceptance, administration or performance by, or action or inaction of, the applicable Trustee of the trusts and duties contained in this Agreement, the Basic
Documents, the Indenture (in the case of the Indenture Trustee), including the administration of the Collateral, and the Trust Agreement (in the case of the Owner Trustee), including the administration of the Owner Trust Estate, except in each case
to the extent that such cost, expense, loss, claim, damage or liability: (X) is due to the willful misfeasance, bad faith or negligence (except for errors in judgment) of the Person seeking to be indemnified, (Y) to the extent otherwise
payable to the Indenture Trustee, arises from the Indenture Trustee’s breach of any of its representations or warranties in Section 6.13 of the Indenture, or (Z) to the extent otherwise payable to the Owner Trustee, arises from the
Owner Trustee’s breach of any of its representations or warranties set forth in Section 6.6 of the Trust Agreement; and 

(v) The Servicer (other than any successor Servicer who is not an affiliate of the initial Servicer, including the Indenture Trustee in
its capacity as successor Servicer pursuant to Section 7.03 hereof it being understood that the removed Servicer shall retain such liability) will indemnify the Owner Trustee in accordance with the provisions specified in
Section 6.9 of the Trust Agreement. 
 (b) Indemnification under this Section 6.05 shall survive the
resignation or removal of the Owner Trustee or the Indenture Trustee or the termination of this Agreement or the Trust Agreement and shall include reasonable fees and expenses of counsel and expenses of litigation. If the Servicer has made any
indemnity payments pursuant to this Section 6.05 and the recipient thereafter collects any of such amounts from others, the recipient shall promptly repay such amounts collected to the Servicer, without interest. 

SECTION 6.06 Backup Servicer. On or prior to the Closing Date, NFC, as Servicer, will enter into a backup servicing agreement with
a Person who meets the criteria specified for a successor Servicer as set forth in Section 7.03 pursuant to which such Person agrees to become a successor Servicer and Custodian in accordance with the terms and conditions of this
Agreement and the other Basic Documents if appointed by the Indenture Trustee pursuant to Section 7.03 (the “Backup Servicer”); provided, that, the Backup Servicer’s responsibilities, restrictions, duties and
liabilities as Servicer or Custodian under this Agreement and the other Basic Documents may be modified in the Backup Servicing Agreement (including any exhibit thereto). 

ARTICLE VII 

DEFAULT 

SECTION 7.01 Servicer Defaults. Each of the following shall constitute a “Servicer Default”: 

(a) any failure by the Servicer to deliver to the Indenture Trustee for deposit in any of the Designated Accounts or to the Owner Trustee
for deposit in the Certificate Distribution Account any required deposit or to direct the Indenture Trustee to make any required distributions therefrom, in each case which failure continues unremedied for five Business Days after the earlier of
(i) written notice is received by the Servicer from the applicable Trustee or (ii) after discovery of such failure by an officer of the Servicer; 
  

 - 20 - 

 (b) any failure by the Servicer duly to observe or perform any other covenant or agreement
of the Servicer set forth in this Agreement (other than as set forth in this Section 7.01) or any other Basic Document which failure materially and adversely affects the rights of the Noteholders or the Certificateholders and which
continues unremedied for 60 days after the giving of written notice of such failure (i) to the Servicer by either Trustee or (ii) to the Servicer and to either Trustee by the holders of not less than 25% of the Outstanding Amount of the
Controlling Class; 
 (c) any representation, warranty or certification made by the Servicer pursuant to this Agreement or any
other Basic Document shall prove to have been incorrect in any material respect when made, and if the consequences of such representation, warranty or certification being incorrect shall be susceptible of remedy in all material respects, such
consequences shall not be remedied in all material respects within 30 days after the Servicer first becomes aware or is advised that such representation, warranty or certification was incorrect in a material respect; 

(d) the occurrence of an Insolvency Event with respect to the Servicer; and 

(e) the failure by the Servicer to engage a replacement Backup Servicer within one hundred eighty (180) days after the date that the
Backup Servicer is terminated as backup servicer, unless the Backup Servicer is terminated as backup servicer in the Servicer’s sole discretion and the Rating Agencies then rating the Notes have been given at least 10 Business Days prior notice
thereof and have notified the Indenture Trustee that the Rating Agency Condition is satisfied, in which case a backup servicer will no longer be required, notwithstanding anything in the Basic Documents to the contrary. 

SECTION 7.02 Consequences of a Servicer Default. If a Servicer Default shall occur and be continuing, the Indenture Trustee or
holders of Securities evidencing not less than a majority of the Outstanding Amount of the Controlling Class may, in addition to other rights and remedies available in a court of law or equity to damages, injunctive relief and specific performance,
terminate all the rights and obligations of the Servicer hereunder and under all sub-servicing agreements whereupon (except as otherwise provided in Section 7.03) (x) the Servicer, (y) the Backup Servicer, as successor
Servicer, or (y) if there is no longer a Backup Servicer, the Indenture Trustee, will succeed to all the responsibilities, duties and liabilities of the Servicer under this Agreement and will be entitled to similar compensation arrangements. On
or after the receipt by the Servicer and the Backup Servicer of such written notice, all authority and power of the Servicer under this Agreement, whether with respect to the Receivables, the Receivable Files or otherwise, shall pass to and be
vested in the Backup Servicer or, if there is no longer a Backup Servicer, the Indenture Trustee, as applicable, pursuant to and under this Section 7.02. Subject to Section 7.03 and upon the effective date specified in such
notice, the Servicer’s appointment as custodian shall be terminated and, upon instruction from the Indenture Trustee, the Servicer shall release all Receivable Files to the Backup Servicer or, if there is no longer a Backup Servicer, the
Indenture Trustee or its respective agent or assignee, as the case may be, at such place or places as the Backup Servicer or the Indenture Trustee, as applicable, may designate, as soon as practicable. The Servicer shall be deemed to have received
proper instructions with respect to the Receivable Files upon its receipt of written instructions signed by an officer of the Indenture Trustee. The Indenture Trustee is hereby authorized and empowered to execute and deliver, on

  

 - 21 - 

 
behalf of the predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to complete the transfer and endorsement of the Receivables and related documents, or otherwise. The predecessor Servicer agrees to cooperate with the Indenture Trustee or any
successor Servicer in effecting the termination of the responsibilities and rights of the Servicer under this Agreement, including the transfer to the Indenture Trustee for administration by it of all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or that shall have been deposited by the Servicer in the Collection Account, the Reserve Account, the Note Distribution Account or the Certificate Distribution Account or thereafter received that shall at any
time be held with respect to the Receivables by the Servicer. All reasonable costs and expenses (including attorneys’ fees) incurred in connection with such transfer, including the costs of transferring the Receivable Files to the successor
Servicer and amending this Agreement to reflect its succession as Servicer, shall be paid by the predecessor Servicer upon presentation of reasonable documentation of such costs and expenses.

SECTION 7.03 Appointment of Successor Servicer. Upon the Servicer’s receipt of notice of termination pursuant to
Section 7.02, the predecessor Servicer shall continue to perform its functions as Servicer under this Agreement until the date specified in such termination notice, which period shall not exceed sixty (60) days from the date of the
notice, or, if no such date is specified in a notice of termination, until receipt of such notice; provided, that if the Backup Servicer is to be appointed as successor Servicer, the effective date of the predecessor Servicer’s
termination as Servicer shall be the same as the date upon which the Backup Servicer’s appointment as successor Servicer becomes effective in accordance with the terms of the Backup Servicing Agreement. In the event of the Servicer’s
termination hereunder, if there is no longer a Backup Servicer, the Indenture Trustee shall be the successor in all respects to the Servicer in its capacity as servicer and custodian under this Agreement and the transactions set forth or provided
for in this Agreement and the other Basic Documents and shall be subject to all the responsibilities, restrictions, duties and liabilities relating thereto placed on the Servicer and the Custodian by the terms and provisions of this Agreement and
the other Basic Documents; provided, however, that if the Backup Servicer satisfies the criteria for a successor servicer specified below, the Indenture Trustee shall promptly appoint the Backup Servicer as the successor Servicer;
provided, further, that the predecessor Servicer shall remain liable for, and the successor Servicer shall have no liability for, any indemnification obligations of the Servicer arising as a result of acts, omissions or occurrences
during the period in which the predecessor Servicer was the Servicer; and provided, further, that NFC shall remain liable for all such indemnification obligations of the Servicer without regard to whether it is still Servicer
hereunder. If the Backup Servicer is appointed as the successor Servicer, at or prior to the effectiveness of such appointment, the Backup Servicer shall execute a counterpart of this Agreement and thereafter shall assume the rights, obligations and
duties of a success Servicer and a successor Custodian as expressly set forth hereunder, subject to the terms, provisions and limitations described in the Backup Servicing Agreement. As compensation therefor, the Indenture Trustee or the Backup
Servicer shall, upon the effectiveness of the termination of the predecessor Servicer, be entitled to such compensation (whether payable out of the Collection Account or otherwise) as the Servicer would have been entitled to under this Agreement if
no such notice of termination had been given including, but not limited to, the Total Servicing Fee and Supplemental Servicing Fees and shall be entitled to Investment Earnings as set forth in

  

 - 22 - 

 
Section 2.02(b) hereof. Notwithstanding the above, if the Indenture Trustee does not appoint the Backup Servicer as the successor servicer then the Indenture Trustee may, if it shall
be unwilling to so act, or shall, if it is legally unable to so act, appoint, or petition a court of competent jurisdiction to appoint, a successor (i) having a net worth of not less than $100,000,000 or whose majority owner is, either directly
or indirectly, a Person having a net worth on a consolidated basis of not less than $100,000,000 and (ii) whose regular business includes the servicing of receivables of the type included in the Collateral, as the successor to the Servicer
under this Agreement in the assumption of all or any part of the responsibilities, duties or liabilities of the Servicer under this Agreement. In connection with such appointment and assumption, the Indenture Trustee may make such arrangements for
the compensation of such successor out of payments on Receivables as it and such successor shall agree; provided, however, that no such compensation shall be in excess of that permitted the Servicer under this Agreement. The Indenture
Trustee and such successor shall take such action, consistent with this Agreement, as shall be necessary to effectuate any such succession. Upon termination of the Servicer and after appointment of a successor Servicer, the Servicer shall reasonably
cooperate with such successor Servicer to notify all Obligors to cease remitting payments to bank accounts and lock boxes controlled by the Servicer and to instead remit payment directly to any bank accounts and lock boxes designated by such
successor Servicer. If at any time on or after the date on which the Servicer is terminated the Servicer receives any payment from any Obligor, then the Servicer shall promptly forward the amount of such payment, along with copies of any remittances
or other documentation accompanying such payment, to the successor Servicer. 
 SECTION 7.04 Notification to
Securityholders. Upon any termination of, or appointment of a successor to, the Servicer pursuant to this Article VII, the Indenture Trustee shall give prompt written notice thereof to the Noteholders and the Rating Agencies and the
Owner Trustee shall give prompt written notice thereof to the Certificateholders. 
 SECTION 7.05 Repayment of Advances.
If a successor Servicer shall be appointed, the predecessor Servicer shall be entitled to receive, to the extent of available funds, reimbursement for Outstanding Monthly Advances pursuant to Section 2.14 in the manner specified in
Section 8.2 of the Indenture with respect to all Monthly Advances made by such predecessor Servicer. The successor Servicer shall not be entitled to reimbursement for Monthly Advances made by the predecessor Servicer. 

SECTION 7.06 Waiver of Past Defaults. The Indenture Trustee, at the direction of the holders of not less than a majority of the
Outstanding Amount of the Controlling Class, may waive any default by the Servicer in the performance of its obligations hereunder and its consequences, except a default in making any required deposits to or payments from any of the Designated
Accounts in accordance with this Agreement. Upon any such waiver of a past default, such default shall cease to exist, and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of this Agreement. No such
waiver shall extend to any subsequent or other default or impair any right consequent thereon. The Servicer shall give written notice of each such waiver to the Rating Agencies. 

 

 - 23 - 

 ARTICLE VIII 

MISCELLANEOUS 

SECTION 8.01 Amendment. This Agreement may be amended from time to time (subject to any expressly applicable amendment provision
of the Further Transfer and Servicing Agreements) by a written amendment duly executed and delivered by the parties hereto; provided, however, that this Agreement may not be amended unless such amendment is in accordance with the
provisions of Section 5.01 of the Pooling Agreement as if such Section 5.01 were contained herein and were applicable to this Agreement. Prior to the execution of any such amendment, the Servicer shall furnish written notification of the
substance of such amendment to each of the Rating Agencies. 
 SECTION 8.02 Termination. The respective obligations and
responsibilities of the parties hereto pursuant to this Agreement shall terminate upon the earlier of: 
 (a) the maturity or
other liquidation of the last Receivable and the disposition of any amounts received upon liquidation of any such remaining Receivables or 

(b) the termination of the Pooling Agreement pursuant to Section 4.02 thereof. 

SECTION 8.03 Notices. All notices, requests and demands to NFRRC, the Servicer, either Trustee or Rating Agencies under this
Agreement shall be delivered as specified in Appendix B to the Pooling Agreement. 
 SECTION 8.04 Governing Law. All
questions concerning the construction, validity and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Illinois, without giving effect to any choice of law or
conflict provision or rule (whether of the State of Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois. 

SECTION 8.05 Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. 
 SECTION 8.06 Assignment; Rights of the Indenture Trustee.
Except to the extent permitted by Article VI or as required by Article VII, the Servicer may not assign its rights or delegate its obligations hereunder. The Servicer acknowledges that the Issuer shall assign all of its
rights, title and interest in this Agreement to the Indenture Trustee on behalf of the Noteholders pursuant to the Indenture. The Servicer agrees that the Indenture Trustee, to the extent provided in the Indenture, shall be entitled to enforce the
terms of this Agreement and the rights (including, without limitation, the right to grant or withhold any consent or waiver) of Issuer directly against the Servicer. Until the satisfaction and discharge of all obligations of the Issuer, the Servicer
further agrees that, in respect of its obligations hereunder, it will act at the direction of and in accordance with all requests and instructions from the Indenture Trustee given in accordance with the Indenture. The Indenture Trustee shall have
the rights of a third-party beneficiary under this Agreement. The Servicer shall deliver copies of all statements, reports, Opinions of Counsel, notices, requests, demands and other documents to be delivered by the Servicer to Issuer pursuant to the
terms hereof to the Indenture Trustee. 
  

 - 24 - 

 SECTION 8.07 Successors and Assigns . This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective successors and permitted assigns. Except as otherwise provided in Section 6.03 or in this Article VIII, no other Person shall have any right or obligation hereunder.

 SECTION 8.08 Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of
which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 

SECTION 8.09 Headings and Cross-References. The various headings in this Agreement are included for convenience only and
shall not affect the meaning or interpretation of any provision of this Agreement. 
 SECTION 8.10 No Petition Covenants.

 (a) Notwithstanding any prior termination of this Agreement, the Servicer shall not, prior to the date which is one year and
one day after payment in full of all obligations and the final distribution with respect to the Securities, acquiesce, petition or otherwise invoke or cause the Issuer or NFRRC to invoke or join any other Person in instituting the process of any
court or government authority for the purpose of commencing or sustaining a case against the Issuer or NFRRC any bankruptcy, reorganization, arrangement, insolvency, liquidation proceeding, or similar law of the United States or any state of the
United States. 
 (b) Notwithstanding any prior termination of this Agreement, the Issuer shall not, prior to the date which is
one year and one day after the last maturing indebtedness for borrowed money, whether evidenced by notes, certificates or otherwise, of NFRRC and its subsidiaries (including any statutory trust) have been paid in full, acquiesce, petition or
otherwise invoke or join any other Person in instituting the process of any court or government authority for the purpose of commencing or sustaining a case against NFRRC any bankruptcy, reorganization, arrangement, insolvency, liquidation
proceeding, or similar law of the United States or any state of the United States. 
 (c) Notwithstanding any prior termination
of this Agreement, the Servicer shall not, prior to the date which is one year and one day after the last maturing indebtedness for borrowed money, whether evidenced by notes, certificates or otherwise, of NFRRC and its subsidiaries (including any
statutory trust) have been paid in full, acquiesce, petition or otherwise invoke or join any other Person in instituting the process of any court or government authority for the purpose of commencing or sustaining a case against NFRRC any
bankruptcy, reorganization, arrangement, insolvency, liquidation proceeding, or similar law of the United States or any state of the United States. 

SECTION 8.11 Limitation of Liability of the Trustees. 

(a) Notwithstanding anything contained herein to the contrary, this Agreement has been acknowledged and accepted by Citibank N.A., not in
its individual capacity 
  

 - 25 - 

 
but solely as Indenture Trustee, and in no event shall Citibank, N.A. have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or
in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer. 

(b) Notwithstanding anything contained herein to the contrary, this Agreement has been executed by Deutsche Bank Trust Company Delaware
not in its individual capacity but solely in its capacity as Owner Trustee and in no event shall Deutsche Bank Trust Company Delaware in its individual capacity or, except as expressly provided in the Trust Agreement, as Owner Trustee of the Issuer
have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer. For all purposes of this Agreement, in the performance of its duties or obligations hereunder, or in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and
entitled to the benefits of, the terms and provisions of Article VI of the Trust Agreement. 
 SECTION 8.12 MUTUAL
WAIVER OF JURY TRIAL. BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN
ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS AGREEMENT
HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR
INCIDENTAL TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 

*        *        *      
  * 
  

 - 26 - 

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

			
	 NAVISTAR FINANCIAL CORPORATION,

as Servicer

		
	By:	 	 /s/ William V. McMenamin

	Name:	 	William V. McMenamin
	Title:	 	 Vice President, Chief Financial Officer

and Treasurer

	
	NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION
		
	By:	 	 /s/ William V. McMenamin

	Name:	 	William V. McMenamin
	Title:	 	 Vice President, Chief Financial Officer

and Treasurer

	
	NAVISTAR FINANCIAL 2010-A OWNER TRUST
	
	By: DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity, but solely as Owner Trustee
		
	By:	 	 /s/ Michele HY Voon

	Name:	 	Michele HY Voon
	Title:	 	Attorney-in-fact
		
	By:	 	 /s/ Mark DiGiacomo

	Name:	 	Mark DiGiacomo
	Title:	 	Attorney-in-fact

			
	CITIBANK, N.A., not in its individual capacity, but solely as Indenture Trustee
		
	By:	 	 /s/ Jacqueline Suarez

	Name:	 	Jacqueline Suarez
	Title:	 	Vice President
	
	The Indenture Trustee, in its role as Securities Intermediary, hereby acknowledges its undertaking as set forth in Section 2.02
		
	By:	 	 /s/ Jacqueline Suarez

	Name:	 	Jacqueline Suarez
	Title:	 	Vice President

  

 EXHIBIT A 

FORM OF SERVICER’S CERTIFICATE 

See attached. 
  

 Ex. A-1 

 

 

  

 Ex. A-2 

 

 

  

 Ex. A-3 

 

 

  

 Ex. A-4Second Supplemental Indenture

 DISCOVERY COMMUNICATIONS, LLC, 

Issuer 

DISCOVERY COMMUNICATIONS, INC., 

Guarantor 

and 

U.S. BANK NATIONAL ASSOCIATION, 

Trustee 

SECOND SUPPLEMENTAL INDENTURE 

DATED AS OF JUNE 3, 2010 

TO 

INDENTURE 

DATED AS OF AUGUST 19, 2009 

Relating To 

$850,000,000 3.700% Senior Notes due 2015 

$1,300,000,000 5.050% Senior Notes due 2020 

$850,000,000 6.350% Senior Notes due 2040 

 SECOND SUPPLEMENTAL INDENTURE 

SECOND SUPPLEMENTAL INDENTURE, dated as of June 3, 2010 (the “Supplemental Indenture”), to the Base
Indenture (defined below) among Discovery Communications, LLC, a Delaware limited liability company (the “Company”), Discovery Communications, Inc., a Delaware corporation (the “Guarantor”), and U.S. Bank National
Association, as Trustee (the “Trustee”). 
 RECITALS 

WHEREAS, the Company has executed and delivered to the Trustee the Indenture, dated as of the date hereof (the “Base
Indenture” and, together with this Supplemental Indenture, the “Indenture”), providing for the issuance from time to time of its Securities; 

WHEREAS, pursuant to the terms of the Base Indenture, the Company desires to provide for the establishment of a new series of its
Securities to be known as its 3.700% Senior Notes due 2015 (the “2015 Notes”), 5.050% Senior Notes due 2020 (the “2020 Notes”) and 6.350% Senior Notes due 2040 (the “2040 Notes” and together with
the 2015 Notes and the 2020 Notes, the “Notes”), the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this Supplemental Indenture; 

WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture, and all requirements necessary to
make this Supplemental Indenture a valid instrument in accordance with its terms, and to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid and legally binding obligations of the Company, and all
acts and things necessary have been done and performed to make this Supplemental Indenture enforceable in accordance with its terms, and the execution and delivery of this Supplemental Indenture has been duly authorized in all respects. 

WITNESSETH: 

NOW, THEREFORE, for and in consideration of the premises contained herein, each party agrees for the benefit of each other party and for
the equal and ratable benefit of the Holders of the Notes, as follows: 
 ARTICLE 1 

DEFINITIONS 

Section 1.01 Capitalized terms used but not defined in this Supplemental Indenture shall have the meanings ascribed to them in the
Base Indenture. 

 Section 1.02 References in this Supplemental Indenture to article and section numbers
shall be deemed to be references to article and section numbers of this Supplemental Indenture unless otherwise specified. 

Section 1.03 For purposes of this Supplemental Indenture, the following terms have the meanings ascribed to them as follows:

 “2015 Notes” has the meaning provided in the recitals. 

“2020 Notes” has the meaning provided in the recitals. 

“2040 Notes” has the meaning provided in the recitals. 

“Attributable Debt” means, with respect to a Sale and Leaseback Transaction, an amount equal to the present value of the
lease payments with respect to the term of the lease remaining on the date as of which the amount is being determined, without regard to any renewal or extension options contained in the lease, discounted at the rate of interest set forth or
implicit in the terms of the lease, compounded semi-annually. 
 “Base Indenture” has the meaning provided in
the recitals. 
 “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended. 

“GAAP” means generally accepted accounting principles in the United States set forth in the opinions and pronouncements
of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 

“Guarantor” has the meaning provided in the preamble. 

“Indenture” has the meaning provided in the recitals. 

“Interest Payment Date” has the meaning provided in Section 2.04. 

“Lien” means any mortgage, pledge, hypothecation, assignment, deposit, arrangement, encumbrance, lien (statutory or
other), charge, or preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any easement, right of way or other encumbrance on
title to real property, and any financing lease substantially having the same economic effect as any of the foregoing). 

“Notes” has the meaning provided in the recitals. 

 

 2 

 “Paying Agent” has the meaning provided in Section 2.03(d).

 “Permitted Sale and Leaseback Transaction” has the meaning provided in Section 3.02(b). 

“Sale and Leaseback Transaction” means any arrangement with any Person pursuant to which the Company or any Subsidiary
leases any property that has been or is to be sold or transferred by the Company or the Subsidiary to such person. 

“Supplemental Indenture” has the meaning provided in the preamble. 

“Total Consolidated Assets” means, as of any date, the total consolidated assets of the Guarantor and its Subsidiaries
computed in accordance with GAAP as of the last day of the fiscal quarter most recently ended prior to such date, subject to the second sentence of the definition of “Debt” in the Base Indenture. 

“Trustee” has the meaning provided in the recitals. 

ARTICLE 2 

GENERAL TERMS AND CONDITIONS OF THE
NOTES 
 Section 2.01. Designation and Principal Amount. The Notes are hereby authorized and are
designated the “3.700% Notes due 2015,” the “5.050% Notes due 2020” and the “6.350% Notes due 2040,” respectively, each series unlimited in aggregate principal amount. The 2015 Notes issued on the date hereof pursuant
to the terms of this Indenture shall be in an aggregate principal amount of $850,000,000, the 2020 Notes issued on the date hereof pursuant to the terms of this Indenture shall be in an aggregate principal amount of $1,300,000,000 and the 2040 Notes
issued on the date hereof pursuant to the terms of this Indenture shall be in an aggregate principal amount of $850,000,000, each of which amounts shall be set forth in the written order of the Company for the authentication and delivery of the
Notes pursuant to Section 2.05 of the Base Indenture. In addition, the Company may, from time to time, without notice to or the consent of the Holders of the Notes, create and issue additional Notes ranking equally and ratably with the Notes of
any series issued on the date hereof in all respects (or in all respects except for the payment of interest accruing prior to the issue date of such additional Notes or except for the first payment of interest following the issue date of such
additional Notes), so that such additional Notes shall be consolidated and form a single series with such series of Notes issued on the date hereof and shall have the same terms as to status, redemption or otherwise as such series of Notes issued on
the date hereof. 
 Section 2.02. Maturity. The principal amount of the 2015 Notes shall be payable on June 1,
2015, the principal amount of the 2020 Notes shall be payable on June 1, 2020 and the principal amount of the 2040 Notes shall be payable on June 1, 2040. 

 

 3 

 Section 2.03. Form and Payment. (a) The Notes of each series shall be
issued as global notes, only in fully registered book-entry form, without coupons, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. 

(b) Principal, premium, if any, and/or interest, if any, on the global notes representing the Notes of each series shall be made to the
Paying Agent (defined below) which in turn shall make payment to The Depository Trust Company as the Depositary with respect to the Notes of such series or its nominee. 

(c) The global notes representing the Notes of each series shall be deposited with, or on behalf of, the Depositary and shall be
registered, at the request of the Depositary, in the name of Cede & Co. 
 (d) U.S. Bank National Association shall act
as paying agent for each series of Notes (the “Paying Agent”). The Company may appoint and change the Paying Agent without prior notice to the Holders. 

Section 2.04. Interest. Interest on the 2015 Notes shall accrue at the rate of 3.700% per annum. Interest on the 2020
Notes shall accrue at the rate of 5.050% per annum. Interest on the 2040 Notes shall accrue at the rate of 6.350% per annum. Interest on the Notes shall accrue from June 3, 2010. Interest on the Notes shall be payable semiannually in
arrears on June 1 and December 1, commencing on December 1, 2010 (each an “Interest Payment Date”), to the Holders in whose names the Notes are registered at the close of business on the May 15 and
November 15 immediately preceding such Interest Payment Date. Interest on the Notes shall be computed on the basis of a 360-day year comprised of twelve 30-day months. If any Interest Payment Date is not a Business Day, then the related payment
of interest for such Interest Payment Date shall be paid on the next succeeding Business Day with the same force and effect as if made on such Interest Payment Date and no further interest shall accrue as a result of such delay. 

Section 2.05. Other Terms. The Notes shall be unsecured senior indebtedness of the Company and shall rank equally and ratably
in right of payment with all of the Company’s other unsecured and unsubordinated indebtedness outstanding from time to time. The Notes shall not be convertible into, or exchangeable for, any other securities of the Company, except that the
Notes shall be exchangeable for other Notes to the extent provided for in the Base Indenture. 
  

 4 

 ARTICLE 3 

ADDITIONAL COVENANTS 

Section 3.01. Limitation on Liens. (a) The Company shall not, and shall not permit any of its Subsidiaries to, create,
incur, assume or permit to exist any Lien on any property or asset, to secure any Debt of the Company, any of its Subsidiaries or any other Person, or permit any of its Subsidiaries to do so, without securing the Notes equally and ratably with such
Debt for so long as such Debt will be so secured, subject to the exceptions set forth in Section 3.01(b). 
 (b) The
foregoing restriction does not apply, with respect to any Person, to any of the following: 
 (i) Liens existing
on the date hereof; 
 (ii) Liens on assets or property of a Person at the time it becomes a Subsidiary securing
only indebtedness of such Person or Liens existing on assets or property at the time of the acquisition of such assets, provided such indebtedness was not incurred or such Liens were not created in connection with such Person becoming a Subsidiary
or such assets being acquired; 
 (iii) Liens on assets created at the time of or within 12 months after the
acquisition, purchase, lease, improvement or development of such assets to secure all or a portion of the purchase price or lease for, or the costs of improvement or development of, such assets; 

(iv) Liens to secure any extension, renewal, refinancing or refunding (or successive extensions, renewals, refinancings or
refundings), in whole or in part, of any indebtedness secured by Liens referred to in the foregoing clauses (i) through (iii) or Liens created in connection with any amendment, consent or waiver relating to such indebtedness, so long as
such Lien does not extend to any other property and the amount of Debt secured is not increased (other than by the amount equal to any costs and expenses incurred in connection with any extension, renewal, refinancing or refunding); 

(v) Liens on property incurred in a Permitted Sale and Leaseback Transaction; 

(vi) Liens in favor of only the Guarantor, the Company or one or more Subsidiaries granted by the Company or a Subsidiary
to secure any obligations owed to the Guarantor, the Company or a Subsidiary of the Guarantor; 
 (vii)
carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, laborers’, landlords’ and similar Liens arising in the ordinary 

 

 5 

 
course of business securing obligations that are not overdue for a period of more than 90 days or that are being contested in good faith by appropriate proceedings; 

(viii) pledges or deposits in the ordinary course of business in connection with workers’ compensation, unemployment
insurance and other social security legislation, other than any Lien imposed by the Employee Retirement Income Security Act of 1974, as amended; 

(ix) deposits to secure the performance of bids, trade contracts and leases, statutory obligations, surety bonds (other
than bonds related to judgments or litigation), performance bonds and other obligations of a like nature incurred in the ordinary course of business; 

(x) Liens arising out of a judgment, decree or order of court being contested in good faith by appropriate proceedings,
provided that adequate reserves with respect thereto are maintained on the books of the Guarantor, the Company or the books of their Subsidiaries, as the case may be, in conformity with GAAP; 

(xi) Liens for taxes not yet due and payable, or being contested in good faith by appropriate proceedings, provided that
adequate reserves with respect thereto are maintained on the books of the Guarantor, the Company or the books of their Subsidiaries, as the case may be, in conformity with GAAP; 

(xii) easements, rights of way, restrictions and similar Liens affecting real property incurred in the ordinary course of
business that do not secure any monetary obligations and do not materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of business of the Guarantor, the Company or of such Subsidiary;

 (xiii) Liens securing reimbursement obligations with respect to letters of credit related to trade payables
and issued in the ordinary course of business, which Liens encumber documents and other property relating to such letters of credit and the products and proceeds thereof; 

(xiv) Liens encumbering customary initial deposits and margin deposits and other Liens in the ordinary course of business,
in each case securing indebtedness under any interest swap obligations and currency agreements and forward contract, option, futures contracts, futures options or similar agreements or arrangements designed to protect the Guarantor or any of its
Subsidiaries from fluctuations in interest rates or currencies; 
 (xv) Liens in the nature of voting, equity
transfer, redemptive rights or similar terms under any such agreement or other term 
  

 6 

 
customarily found in such agreements, in each case, encumbering the Company’s or such Subsidiary’s equity interests or other investments in such Subsidiary or other Person; 

(xvi) Liens created in favor of a producer or supplier of television programming or films over distribution revenues
and/or distribution rights which are allocable to such producer or supplier under related distribution arrangements; or 

(xvii) Liens otherwise prohibited by this Section 3.01, securing indebtedness which, together with the amount of
Attributable Debt incurred in Sale and Leaseback Transactions, do not at any time exceed 10% of Total Consolidated Assets. 

Section 3.02. Limitation on Sale and Leasebacks. (a) The Company shall not, and shall not permit any Subsidiary to,
enter into any Sale and Leaseback Transaction (other than a Permitted Sale and Leaseback Transaction), unless the Company or such Subsidiary would be entitled to secure the property to be leased (without equally and ratably securing the outstanding
Notes) in a principal amount equal to the amount of Attributable Debt incurred in such Sale and Leaseback Transaction. 
 (b)
For purposes of Section 3.01 and this Section 3.02, “Permitted Sale and Leaseback Transaction” means any of the following: (i) temporary leases for a term, including renewals at the option of the lessee, of not more
than three years, (ii) leases between only the Company and a Subsidiary or only between Subsidiaries of the Company, (iii) leases of property executed by the time of, or within 12 months after the latest of (A) the acquisition,
(B) the completion of construction or improvement or (C) the commencement of commercial operation of the property and (iv) any Sale and Leaseback Transaction regarding the real property in Silver Spring, Maryland and the
Company’s headquarters building located on such property. 
 Section 3.03. Consolidation, Sale, Merger or
Conveyance. (a) In addition to complying with the provisions of Section 9.01 of the Base Indenture, the Company agrees that if, as a result of any consolidation, merger, conveyance, transfer or lease to which such Section 9.01
applies, properties or assets of the Company or any Subsidiary would become subject to any lien that would not be permitted by Section 3.01 hereof without equally and ratably securing the Notes, (i) the Company or the Person formed by such
consolidation or into which the Company is merged or the Person that acquires by conveyance or transfer, or that leases, the properties and assets of the Company substantially as an entirety, as the case may be, shall take the steps as are necessary
to effectively secure the Notes equally and ratably with, or prior to, all indebtedness secured by those liens as provided for in Section 3.01 and (ii) the Officer’s Certificate and an Opinion of Counsel required by
Section 9.01(c) of the Base Indenture shall also state that such consolidation, merger, conveyance, transfer or lease and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this
Section 3.03(a). 
  

 7 

 (b) In addition to complying with the provisions of Section 9.03 of the Base Indenture,
the Guarantor agrees that if, as a result of any consolidation, merger, conveyance, transfer or lease to which such Section 9.03 applies, properties or assets of the Company or any Subsidiary would become subject to any lien that would not be
permitted by Section 3.01 hereof without equally and ratably securing the Notes, (i) the Guarantor or the Person formed by such consolidation or into which the Guarantor is merged or the Person that acquires by conveyance or transfer, or
that leases, the properties and assets of the Guarantor substantially as an entirety, as the case may be, shall take the steps as are necessary to effectively secure the Notes equally and ratably with, or prior to, all indebtedness secured by those
liens as provided for in Section 3.01 and (ii) the Officer’s Certificate and an Opinion of Counsel required by Section 9.03(c) of the Base Indenture shall also state that such consolidation, merger, conveyance, transfer or lease
and, if a supplemental indenture is required in connection with such transaction, such supplemental indenture comply with this Section 3.03(b). 

(c) Nothing contained in the last paragraph of each of Sections 9.01 and 9.03 of the Base Indenture shall limit the application of
Section 3.01 hereof to any consolidation or merger of any Person into the Company or the Guarantor where the Company or the Guarantor is the survivor of such transaction, or the acquisition by the Company or the Guarantor, by purchase or
otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company or the Guarantor). 

ARTICLE 4 

REDEMPTION OF THE NOTES 

Section 4.01. Optional Redemption.  

(a) The 2015 Notes, the 2020 Notes and the 2040 Notes shall be redeemable, in each case, in whole or in part, at the option of the Company
at any time and from time to time at a redemption price equal to the greater of: 
 (i) 100% of the principal
amount of the Notes to be redeemed, and 
 (ii) as determined by the Quotation Agent (as defined below), the sum
of the present values of the remaining scheduled payments of principal and interest on the Notes to be redeemed (not including any portion of such payments of interest accrued as of the date of redemption) discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 25 basis points in the case of the 

 

 8 

 
2015 Notes, 30 basis points in the case of the 2020 Notes and 35 basis points in the case of the 2040 Notes, plus, in each case, accrued interest on the principal amount being redeemed to the
date of redemption. 
 (b) For purposes of this Section 4.01, the following definitions are applicable: 

“Adjusted Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the semi-annual
equivalent yield to maturity of the Comparable Treasury Issue (as defined below), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined below) for
such redemption date. 
 “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of such Notes. 
 “Comparable Treasury Price” means,
with respect to any redemption date, (i) the average of the Reference Treasury Dealer Quotations (as defined below) for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the
trustee obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such quotations. 

“Quotation Agent” means the Reference Treasury Dealer appointed by the Company. 

“Reference Treasury Dealer” means (i) each of Citigroup Global Markets Inc., J.P. Morgan Securities Inc. and their
respective successors; provided, however, that if any of foregoing ceases to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”), the Company shall substitute therefor another Primary
Treasury Dealer; and (ii) any other Primary Treasury Dealers selected by the Company. 
 “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such redemption date. 

Section 4.02. Purchase of Notes Upon a Change of Control Triggering Event. (a) If a Change of Control Triggering Event
occurs, unless the Company 
  

 9 

 
has exercised its right to redeem the 2015 Notes, the 2020 Notes and the 2040 Notes in full, pursuant to Section 4.01, Holders of Notes shall have the right to require the Company to
repurchase all or a portion of such Holders’ 2015 Notes, 2020 Notes and 2040 Notes pursuant to the offer described in 4.02(b) below (such offer, the “Change of Control Offer”), at a purchase price equal to 101% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of repurchase, subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date. 

(b) Within 30 days following the date upon which the Change of Control Triggering Event occurred, or at the Company’s option, prior
to any Change of Control but after the public announcement of the pending Change of Control, the Company shall be required to send, by first class mail, a notice to Holders of Notes, with a copy to the Trustee, which notice shall govern the terms of
the Change of Control Offer. Such notice shall state, among other things, the repurchase date, which must be no earlier than 30 days nor later than 60 days from the date such notice is mailed, other than as may be required by law (the
“Change of Control Payment Date”). The notice, if mailed prior to the date of consummation of the Change of Control, may state that the Change of Control Offer is conditioned on the Change of Control being consummated on or prior to
the Change of Control Payment Date. Holders of Notes electing to have Notes repurchased pursuant to a Change of Control Offer shall be required to surrender their Notes, with the form entitled “Option of Holder to Elect Purchase” on the
reverse of the Notes completed, to the Paying Agent at the address specified in the notice, or transfer their Notes to the Paying Agent by book-entry transfer pursuant to the applicable procedures of the Paying Agent, prior to the close of business
on the third Business Day prior to the Change of Control Payment Date. 
 (c) The Company shall not be required to make a Change
of Control Offer if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for such an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn
under its offer. 
 (d) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act and any other
securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any such
securities laws or regulations conflict with the Change of Control Offer provisions of the Notes, the Company shall comply with those securities laws and regulations and shall not be deemed to have breached its obligations under the provisions in
the Indenture governing the Change of Control Offer by virtue of any such conflict. 
  

 10 

 (e) For purposes of this Section 4.02, the following definitions are applicable:

 “Below Investment Grade Rating Event” with respect to the Notes means that such Notes become rated below
Investment Grade by each Rating Agency on any date from the date of the public notice by the Guarantor or the Company of an arrangement that results in a Change of Control until the end of the 60-day period following public notice by the Guarantor
or the Company of the occurrence of a Change of Control (which period will be extended so long as the rating of such Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies); provided, however, that a
Below Investment Grade Rating Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Below Investment Grade Rating Event
for purposes of the definition of “Change of Control Triggering Event”), if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the Trustee in
writing at its request that the reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control
has occurred at the time of the Below Investment Grade Rating Event). 
 “Change of Control” means the
occurrence of any one of the following: 
 (i) the direct or indirect sale, lease, transfer, conveyance or other
disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the assets of the Guarantor and its Subsidiaries, or the Company and its Subsidiaries, taken as a whole, to any
“person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than to the Guarantor or one of its Subsidiaries; 

(ii) the consummation of any transaction (including without limitation, any merger or consolidation) the result of which
is that any “person” (as that term is used in Section 13(d)(3) of the Exchange Act) other than any Significant Shareholder (as defined below) or any combination of Significant Shareholders becomes the “beneficial owner” (as
defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock of the Guarantor or the Company, measured by voting power rather than number of shares; 

(iii) the consummation of a so-called “going private/Rule 13e-3 Transaction” that results in any of the effects
described in paragraph (a)(3)(ii) of Rule 13e-3 under the Exchange Act (or any successor provision) with respect to each class of the Guarantor’s common stock, following which any Significant Shareholder or any combination of Significant
Shareholders “beneficially own” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, more than 50% of the outstanding Voting Stock of the Guarantor or the Company, measured by voting power rather than
number of shares; 
  

 11 

 (iv) the first day on which the majority of the members of the Board of
Directors of the Guarantor cease to be Continuing Directors; or 
 (v) the adoption of a plan relating to the
liquidation, dissolution or winding up of the Guarantor. 
 “Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Below Investment Grade Rating Event. Notwithstanding the foregoing, no Change of Control Triggering Event shall be deemed to have, occurred in connection with any particular Change of Control unless and
until such Change of Control has actually been consummated. 
 “Continuing Director” means, as of any date of
determination, any member of the Board of Directors (or equivalent body) of the Guarantor who: 
 (i) was a
member of such board of directors on the date of the issuance of the Notes; or 
 (ii) was nominated for
election, elected or appointed to such board of directors with the approval of a majority of the Continuing Directors who were members of such board of directors at the time of such nomination, election or appointment (either by a specific vote or
by approval of the Guarantor’s proxy statement in which such member was named as a nominee for election as a director, without objection to such nomination). 

“Fitch” means Fitch Ratings Ltd., and its successors. 

“Investment Grade” means a rating of “BBB–” or better by S&P (or its equivalent under any successor
rating category of S&P), a rating of “Baa3” or better by Moody’s (or its equivalent under any successor rating category of Moody’s) and a rating of “BBB–” or better by Fitch (or its equivalent under any
successor rating category of Fitch). 
 “Moody’s” means Moody’s Investors Service, Inc., and its
successors. 
 “Rating Agency” means (i) each of S&P, Moody’s and Fitch; and (ii) if any of
S&P, Moody’s or Fitch ceases to rate the Notes or fails to make a rating of the Notes publicly available for reasons outside of the Company’s control, a “nationally recognized statistical rating organization” within the
meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Company (as certified by a resolution of the Board of Directors of the Guarantor and reasonably acceptable to the Trustee) as a replacement agency for S&P, Moody’s
or Fitch, or all of them, as the case may be. 
  

 12 

 “S&P” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc., and its successors. 
 “Significant Shareholder” means each of
(i) Advance/Newhouse Programming Partnership, (ii) the Guarantor or any of its Subsidiaries and (iii) any other “person” (as that term is used in Section 13(d)(3) of the Exchange Act) if 50% or more of the Voting Stock
of such person is “beneficially owned” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, by Advance/Newhouse Programming Partnership or the Guarantor or one of its Subsidiaries or any combination
thereof. 
 “Voting Stock” of any specified Person as of any date means any and all shares or equity interests
(however designated) of such Person that are at the time entitled to vote generally in the election of the board of directors, managers or trustees of such Person, as applicable. 

ARTICLE 5 

EVENTS OF DEFAULT 

Section 5.01. Events of Default. (a) Solely with respect to the Notes, the first paragraph of Section 5.01 of the
Base Indenture shall be amended as follows: 
 (i) Clause (a) shall be amended by replacing the phrase
“60 days (or such other period as may be established for the Securities of such series as contemplated by Section 2.04)” with “30 days” therein; 

(ii) Clause (b) shall be amended by deleting the phrase “, and the continuance of such default for five days (or
such other period as may be established for the Securities of such series as contemplated by Section 2.04)” therein; 

(iii) The following clause shall be added immediately following clause (e): “(f) the Guarantee ceases to be in full
force and effect (except as contemplated by the terms of the Indenture) or is declared null and void in a judicial proceeding or the Guarantor denies or disaffirms its obligations under the Indenture or the Guarantee; or”; and 

(iv) Clause (f) shall be amended and restated in its entirety to read as follows: 

“(g) default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or
evidenced any indebtedness for money borrowed by the Guarantor, the Company or any of their Subsidiaries (or the payment of which is guaranteed by the Guarantor, the Company or any of their Subsidiaries),

  

 13 

 
whether such indebtedness or guarantee now exists, or is created after the date hereof, if that default (i) is caused by a failure to pay principal on such indebtedness at its stated final
maturity (after giving effect to any applicable grace periods provided in such indebtedness) (a “Payment Default”) or (ii) results in the acceleration of such indebtedness prior to its express maturity (an “Acceleration
Event”) and (A) in each case, the principal amount of any such indebtedness, together with the principal amount of any other such indebtedness under which there has been a Payment Default or an Acceleration Event, aggregates $100
million or more and (B) in the case of a Payment Default, such indebtedness is not discharged and, in the case of an Acceleration Event, such acceleration is not rescinded or annulled, within ten days after there has been given, by registered
or certified mail, to the Company and the Guarantor by the Trustee or to the Company, the Guarantor and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Notes, a written notice specifying such default or breach and
requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder.” 
 (b) Solely with
respect to the Notes, the first sentence of the second paragraph of Section 5.01 of the Base Indenture shall be amended by replacing the phrase “in clauses (a), (b), (c) or (f)” with “in clauses (a), (b), (c), (f) or
(g)” therein. 
 Section 5.02. Collection of Debt by Trustee; Trustee May Prove Debt. Solely with respect to
the Notes, the first sentence of the first paragraph of Section 5.02 of the Base Indenture shall be amended as follows: 

(a) Clause (a) shall be amended by replacing the phrase “60 days” with “30 days” therein; and 

(b) Clause (b) shall be amended by deleting the phrase “, and such default shall have continued for a period of five days”
therein. 
 ARTICLE 6 

SUPPLEMENTAL INDENTURES 

Section 6.01. Supplemental Indentures with Consent of Securityholders. Solely with respect to the Notes, the first paragraph
of Section 8.02 of the Base Indenture shall be amended as follows: 
 (a) the following clauses shall be added immediately
following clause (a) in the proviso of that paragraph (but before the word “or” immediately preceding clause (b)): “(b) reduce the amount payable upon repurchase of any Note, or change the time at which any Note may be so
repurchased; (c) make any change to the Guarantee in any manner adverse to the Holders of the Notes;” and 
  

 14 

 (b) clause (b) in the proviso of that paragraph shall become clause (d). 

ARTICLE 7 

MISCELLANEOUS 

Section 7.01. Covenant Defeasance. Article 10 of the Base Indenture shall be applicable to the Notes. If the Company effects
“covenant defeasance” (as defined in Section 10.05 of the Base Indenture) pursuant to Article 10 of the Base Indenture, then the Company shall be released from its obligations under Article Three and Section 4.02 of this
Supplemental Indenture with respect to the Notes as provided for in Article 10 of the Base Indenture. 
 Section 7.02.
Form of Notes. (a) The Notes and the Trustee’s certificates of authentication to be endorsed thereon are to be substantially in the form of Exhibit A, Exhibit B and Exhibit C attached hereto, which forms are hereby incorporated in and
made a part of this Supplemental Indenture. 
 (b) The terms and provisions contained in the Notes shall constitute, and are
hereby expressly made, a part of this Supplemental Indenture, and the Company and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. 

Section 7.03. Ratification of Base Indenture. The Base Indenture, as supplemented by this Supplemental Indenture, is in all
respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. 

Section 7.04. Trust Indenture Act Controls. If any provision hereof limits, qualifies or conflicts with the duties imposed by
Section 310 through 317 of the Trust Indenture Act of 1939, the imposed duties shall control. 
 Section 7.05.
Conflict with Indenture. To the extent not expressly amended or modified by this Supplemental Indenture, the Base Indenture shall remain in full force and effect. If any provision of this Supplemental Indenture relating to the Notes is
inconsistent with any provision of the Base Indenture, the provision of this Supplemental Indenture shall control. 

Section 7.06. Governing Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE DEEMED TO BE A CONTRACT UNDER THE LAWS OF THE
STATE OF NEW YORK, AND FOR ALL PURPOSES SHALL 
  

 15 

 
BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF SUCH STATE, EXCEPT AS MAY OTHERWISE BE REQUIRED BY MANDATORY PROVISIONS OF LAW. 

Section 7.07. Successors. All agreements of the Company and the Guarantor in the Base Indenture, this Supplemental Indenture
and the Notes shall bind their respective successors. All agreements of the Trustee in the Base Indenture and this Supplemental Indenture shall bind its successors. 

Section 7.08. Counterparts. This instrument may be executed in any number of counterparts, each of which so executed shall be
deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 

Section 7.09. Trustee Disclaimer. The Trustee makes no representation as to the validity or sufficiency of this Supplemental
Indenture other than as to the validity of its execution and delivery by the Trustee. The recitals and statements herein are deemed to be those of the Company and the Guarantor and not the Trustee. 

 

 16 

 IN WITNESS WHEREOF, the parties hereto have caused the Supplemental Indenture to be duly
executed as of the day and year first above written. 
  

					
	DISCOVERY COMMUNICATIONS, LLC
		
	By:	 	   /s/ Bradley E. Singer

		 	Name:	 	Bradley E. Singer
		 	Title:	 	Chief Financial Officer and Treasurer
	
	DISCOVERY COMMUNICATIONS, INC.
		
	By:	 	   /s/ Bradley E. Singer

		 	Name:	 	Bradley E. Singer
		 	Title:	 	Senior Executive Vice President and Chief Financial Officer
	
	U.S. BANK NATIONAL ASSOCIATION, Trustee
		
	By:	 	   /s/ Earl W. Dennison Jr.

		 	Name:	 	Earl W. Dennison Jr.
		 	Title:	 	Vice President

 [Second
Supplemental Indenture] 
  

 17 

 EXHIBIT A 

Form of 2015 Note 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

 

 A-1 

 DISCOVERY COMMUNICATIONS, LLC 

3.700% Senior Note Due 2015 
  

			
		  	CUSIP No.: 25470DAB5
	No. [    ]	  	ISIN No.: US25470DAB55
		  	$            

DISCOVERY COMMUNICATIONS, LLC, a Delaware limited liability company (the “Company”, which term includes any successor
corporation), for value received promises to pay to CEDE & CO., or registered assigns, the principal sum of $            (the “Principal”) on June 1, 2015.

 Interest Payment Dates: June 1 and December 1 (each, an “Interest Payment Date”), commencing on
December 1, 2010. 
 Interest Record Dates: May 15 and November 15 (each, an “Interest Record
Date”). 
 Reference is made to the further provisions of this Security contained herein, which will for all purposes
have the same effect as if set forth at this place. 
  

 A-2 

 IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by
facsimile by its duly authorized officer under its seal. 
  

					
	DISCOVERY COMMUNICATIONS, LLC
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

 A-3 

 NOTATION OF GUARANTEE 

Discovery Communications, Inc., a Delaware corporation (the “Guarantor”, which term includes any successor thereto under
the Indenture (the “Indenture”) referred to in the Security on which this notation is endorsed) has unconditionally guaranteed, pursuant to the terms of the Guarantee contained in Article 13 of the Indenture, the due and punctual
payment of the principal of and any premium and interest on this Security, when and as the same shall become due and payable in accordance with the terms of this Security and the Indenture. 

The obligations of the Guarantor to the Holders of the Securities and to the Trustee pursuant to the Guarantee and the Indenture are
expressly set forth in Article 13 of the Indenture, and reference is hereby made to such Article and Indenture for the precise terms of the Guarantee. 

The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Security upon which this
notation of the Guarantee is endorsed shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized signatories. 
  

 A-4 

					
	DISCOVERY COMMUNICATIONS, INC.
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	

  

 A-5 

 This is one of the Securities of the series designated herein and referred to in the
within-mentioned Indenture. 
 Dated: 
  

					
	U.S. BANK NATIONAL ASSOCIATION, Trustee
		
	By:	 	  

		 	Name:	 	
		 	Title:	 	Authorized Officer

  

 A-6 

 (REVERSE OF SECURITY) 

DISCOVERY COMMUNICATIONS, LLC 

3.700% Senior Note Due 2015 
  

	 	1.	Interest. 

 DISCOVERY
COMMUNICATIONS, LLC, a Delaware limited liability company (the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum shown above. Cash interest on the Securities will accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from June 3, 2010. The Company will pay interest semi-annually in arrears on each Interest Payment Date, commencing December 1, 2010. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. If any Interest Payment Date is not a Business Day, then the related payment of interest for such Interest Payment Date shall be paid on the next succeeding Business Day with the same
force and effect as if made on such Interest Payment Date and no further interest shall accrue as a result of such delay. 
 The
Company shall pay interest on overdue principal from time to time on demand at the rate borne by the Securities and on overdue installments of interest (without regard to any applicable grace periods) to the extent lawful. 

 

	 	2.	Method of Payment. 

 The Company
shall pay interest on the Securities (except defaulted interest) to the persons who are the registered Holders at the close of business on the Interest Record Date immediately preceding the Interest Payment Date notwithstanding any transfer or
exchange of such Security subsequent to such Interest Record Date and prior to such Interest Payment Date. Holders must surrender Securities to the Trustee to collect principal payments. The Company shall pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). Payment of principal of (and premium, if any) and any such interest on this Security will be made at the
Corporate Trust Office of the Trustee in Boston, Massachusetts or at any other office or agency designated by the Company for such purpose; provided that at the option of the Company payment of interest may be made by check mailed to the address of
the Holder entitled thereto as such address appears in the Security register. However, the payments of interest, and any portion of the principal (other than interest payable at maturity or on any redemption or repayment date or the final payment of
principal) shall be made by the Paying Agent, upon receipt from the Company of immediately available funds by 12:30 p.m., New York City time (or such other time as may be agreed to between the Company and the Paying Agent or the Company), directly
to a Holder (by Federal funds wire transfer or otherwise) if the Holder has delivered written instructions to the Trustee 15 days prior to such payment date requesting that such payment will be so made and designating the bank account to which

  

 A-7 

 
such payments shall be so made and in the case of payments of principal surrenders the same to the Trustee in exchange for a Security or Securities aggregating the same principal amount as the
unredeemed principal amount of the Securities surrendered. 
  

	 	3.	Paying Agent. 

 Initially, U.S.
Bank National Association (the “Trustee”) will act as Paying Agent. The Company may change any Paying Agent without notice to the Holders. 
  

	 	4.	Indenture. 

 The Company issued
the Securities under an Indenture, dated as of August 19, 2009 (the “Indenture”), among the Company, the Guarantor and the Trustee. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture. Notwithstanding anything to the contrary herein, the Securities are subject to all such terms, and holders of Securities are referred to the Indenture and the TIA for a statement of them. To the extent the terms of the Indenture and this
Security are inconsistent, the terms of the Indenture shall govern. 
 The Company, the Guarantor and the Trustee entered into a
Second Supplemental Indenture, dated as of June 3, 2010 setting forth certain terms of the Securities pursuant to Section 2.04 of the Indenture (the “Supplemental Indenture”). The Supplemental Indenture imposes certain
limitations on the incurrence of liens and certain sale and leaseback transactions and limits the Company’s ability to consolidate, merge, convey, transfer or lease its properties and assets substantially as an entirety. To the extent the terms
of the Supplemental Indenture are inconsistent with the Indenture or this Security, the terms of the Supplemental Indenture shall govern. 
  

	 	5.	Guarantee. 

 The payment by the
Company of the principal of, and premium and interest on, the Securities is irrevocably and unconditionally guaranteed on a senior basis by the Guarantor. 
  

	 	6.	Optional Redemption 

 The
Securities are redeemable, in whole or in part, at the option of the Company, at any time and from time to time at the redemption price described in the Supplemental Indenture. 

 

 A-8 

	 	7.	Change of Control Offer to Repurchase 

If a Change of Control Triggering Event (as defined in the Supplemental Indenture) occurs, unless the Company has exercised its right to
redeem the Securities, Holders of the Securities will have the right to require the Company to repurchase all or a portion of their Securities pursuant to the offer described in the Supplemental Indenture at a purchase price equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase, subject to the rights of Holders of Securities on the relevant Interest Record Date to receive interest due on the relevant Interest Payment Date.

  

	 	8.	Denominations; Transfer; Exchange. 

The Securities are in registered form, without coupons, in denominations of $2,000 and multiples of $1,000. A Holder shall register the
transfer of or exchange Securities in accordance with the Indenture. The Company may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture. The Company need not issue, authenticate, register the transfer of or exchange any Securities or portions thereof for a period of 15 days before such series is selected for redemption,
nor need the Company register the transfer or exchange of any Security selected for redemption in whole or in part. 
  

	 	9.	Persons Deemed Owners. 

 The
registered Holder of a Security shall be treated as the owner of it for all purposes. 
  

	 	10.	Unclaimed Funds. 

 If funds for
the payment of principal or interest remain unclaimed for two years, the Trustee and the Paying Agent will repay the funds to the Company or the Guarantor at its written request. After that, all liability of the Trustee and such Paying Agent with
respect to such funds shall cease. 
  

	 	11.	Legal Defeasance and Covenant Defeasance. 

The Company may be discharged from its obligations under the Securities and under the Indenture with respect to the Securities except for
certain provisions thereof, and may be discharged from obligations to comply with certain covenants contained in the Securities and in the Indenture with respect to the Securities, in each case upon satisfaction of certain conditions specified in
the Indenture. 
  

	 	12.	Amendment; Supplement; Waiver. 

Subject to certain exceptions, the Securities and the provisions of the Indenture relating to the Securities may be amended or
supplemented with the 
  

 A-9 

 
written consent of the Holders of at least a majority in aggregate principal amount of the Securities of all series then outstanding affected by such amendment or supplement (voting as one
class), and any existing Default or Event of Default or compliance with certain provisions may be waived with the consent of the Holders of a majority in aggregate principal amount of all the Securities of such series, each series voting as a
separate class, (or of all the Securities, as the case may be, voting as a single class) then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Securities to, among other
things, cure any ambiguity, defect or inconsistency, provide for uncertificated Securities in addition to or in place of certificated Securities, or make any other change that does not adversely affect the rights of any Holder of a Security.

  

	 	13.	Defaults and Remedies. 

 If an
Event of Default (other than certain bankruptcy Events of Default with respect to the Company or the Guarantor) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of Securities of this series then
outstanding (voting as a separate class) may declare all of the Securities to be due and payable immediately in the manner and with the effect provided in the Indenture. If a bankruptcy Event of Default with respect to the Company or the Guarantor
occurs and is continuing, the entire principal amount of the Securities then outstanding and interest accrued thereon, if any, shall immediately become due and payable. Holders of Securities may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Securities unless it has received indemnity satisfactory to it. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Securities then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Securities notice of certain continuing Defaults or Events of Default if it
determines that withholding notice is in their interest. 
  

	 	14.	Trustee Dealings with Company. 

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with the Company as if it were not the Trustee. 
  

	 	15.	No Recourse Against Others. 

 No
stockholder, director, officer, employee, member or incorporator, as such, of the Company, of the Guarantor or any successor Person thereof shall have any liability for any obligation under the Securities or the Indenture or for any claim based on,
in respect of or by reason of, such obligations or their creation. Each Holder of a Security by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Securities.

  

 A-10 

	 	16.	Authentication. 

 This Security
shall not be valid until the Trustee manually signs the certificate of authentication on this Security. 
  

	 	17.	Abbreviations and Defined Terms. 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

 

	 	18.	CUSIP Numbers. 

 Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the
accuracy of such numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon. 
  

	 	19.	Governing Law. 

 The laws of the
State of New York shall govern the Indenture and this Security thereof. 
  

 A-11 

 ASSIGNMENT FORM 

I or we assign and transfer this Security to 

(Print or type name, address and zip code of assignee or transferee) 

(Insert Social Security or other identifying number of assignee or transferee) 

and irrevocably appoint
                                         agent to
transfer this Security on the books of the Company. The agent may substitute another to act for him. 
 Dated: 

 

					
	Signed:
		
		 	  

		 	(Signed exactly as name appears on the other side of this Security)

  

							
	 Signature

Guarantee:
	 	  
	 		 	
		 	 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the
Trustee)
	 	

  

 A-12 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Security purchased by the Company pursuant to Section 4.02 of the Supplemental Indenture, check
the box   ̈. 
 If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.02 of the Supplemental Indenture, state the amount you elect to have purchased (must be integral multiples of $1,000): 

$ 
 Dated: 

 

					
	Signed:
		
		 	  

		 	(Signed exactly as name appears on the other side of this Security)

  

							
	 Signature

Guarantee:
	 	  
	 		 	
		 	 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the
Trustee)
	 	

  

 A-13 

 EXHIBIT B 

Form of 2020 Note 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

 

 B-1 

 DISCOVERY COMMUNICATIONS, LLC 

5.050% Senior Note Due 2020 
  

							
		 		 		  	CUSIP No.: 25470DAC3
	No. [    ]	 		 		  	ISIN No.: US25470DAC39
		 		 		  	$

 DISCOVERY COMMUNICATIONS,
LLC, a Delaware limited liability company (the “Company”, which term includes any successor corporation), for value received promises to pay to CEDE & CO., or registered assigns, the principal sum of $ (the
“Principal”) on June 1, 2020. 
 Interest Payment Dates: June 1 and December 1 (each, an
“Interest Payment Date”), commencing on December 1, 2010. 
 Interest Record Dates: May 15 and
November 15 (each, an “Interest Record Date”). 
 Reference is made to the further provisions of this
Security contained herein, which will for all purposes have the same effect as if set forth at this place. 
  

 B-2 

 IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by
facsimile by its duly authorized officer under its seal. 
  

			
	DISCOVERY COMMUNICATIONS, LLC
		
	By:	 	  

		 	Name:
		 	Title:

  

 B-3 

 NOTATION OF GUARANTEE 

Discovery Communications, Inc., a Delaware corporation (the “Guarantor”, which term includes any successor thereto under
the Indenture (the “Indenture”) referred to in the Security on which this notation is endorsed) has unconditionally guaranteed, pursuant to the terms of the Guarantee contained in Article 13 of the Indenture, the due and punctual
payment of the principal of and any premium and interest on this Security, when and as the same shall become due and payable in accordance with the terms of this Security and the Indenture. 

The obligations of the Guarantor to the Holders of the Securities and to the Trustee pursuant to the Guarantee and the Indenture are
expressly set forth in Article 13 of the Indenture, and reference is hereby made to such Article and Indenture for the precise terms of the Guarantee. 

The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Security upon which this
notation of the Guarantee is endorsed shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized signatories. 
  

 B-4 

			
	DISCOVERY COMMUNICATIONS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

 B-5 

 This is one of the Securities of the series designated herein and referred to in the
within-mentioned Indenture. 
 Dated: 
  

			
	U.S. BANK NATIONAL ASSOCIATION, Trustee
		
	By:	 	  

		 	Name:
		 	Title: Authorized Officer

  

 B-6 

 (REVERSE OF SECURITY) 

DISCOVERY COMMUNICATIONS, LLC 

5.050% Senior Note Due 2020 
  

	 	1.	Interest. 

 DISCOVERY
COMMUNICATIONS, LLC, a Delaware limited liability company (the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum shown above. Cash interest on the Securities will accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from June 3, 2010. The Company will pay interest semi-annually in arrears on each Interest Payment Date, commencing December 1, 2010. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. If any Interest Payment Date is not a Business Day, then the related payment of interest for such Interest Payment Date shall be paid on the next succeeding Business Day with the same
force and effect as if made on such Interest Payment Date and no further interest shall accrue as a result of such delay. 
 The
Company shall pay interest on overdue principal from time to time on demand at the rate borne by the Securities and on overdue installments of interest (without regard to any applicable grace periods) to the extent lawful. 

 

	 	2.	Method of Payment. 

 The Company
shall pay interest on the Securities (except defaulted interest) to the persons who are the registered Holders at the close of business on the Interest Record Date immediately preceding the Interest Payment Date notwithstanding any transfer or
exchange of such Security subsequent to such Interest Record Date and prior to such Interest Payment Date. Holders must surrender Securities to the Trustee to collect principal payments. The Company shall pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). Payment of principal of (and premium, if any) and any such interest on this Security will be made at the
Corporate Trust Office of the Trustee in Boston, Massachusetts or at any other office or agency designated by the Company for such purpose; provided that at the option of the Company payment of interest may be made by check mailed to the address of
the Holder entitled thereto as such address appears in the Security register. However, the payments of interest, and any portion of the principal (other than interest payable at maturity or on any redemption or repayment date or the final payment of
principal) shall be made by the Paying Agent, upon receipt from the Company of immediately available funds by 12:30 p.m., New York City time (or such other time as may be agreed to between the Company and the Paying Agent or the Company), directly
to a Holder (by Federal funds wire transfer or otherwise) if the Holder has delivered written instructions to the Trustee 15 days prior to such payment date requesting that such payment will be so made and designating the bank account to which

  

 B-7 

 
such payments shall be so made and in the case of payments of principal surrenders the same to the Trustee in exchange for a Security or Securities aggregating the same principal amount as the
unredeemed principal amount of the Securities surrendered. 
  

	 	3.	Paying Agent. 

 Initially, U.S.
Bank National Association (the “Trustee”) will act as Paying Agent. The Company may change any Paying Agent without notice to the Holders. 
  

	 	4.	Indenture. 

 The Company issued
the Securities under an Indenture, dated as of August 19, 2009 (the “Indenture”), among the Company, the Guarantor and the Trustee. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture. Notwithstanding anything to the contrary herein, the Securities are subject to all such terms, and holders of Securities are referred to the Indenture and the TIA for a statement of them. To the extent the terms of the Indenture and this
Security are inconsistent, the terms of the Indenture shall govern. 
 The Company, the Guarantor and the Trustee entered into a
Second Supplemental Indenture, dated as of June 3, 2010 setting forth certain terms of the Securities pursuant to Section 2.04 of the Indenture (the “Supplemental Indenture”). The Supplemental Indenture imposes certain
limitations on the incurrence of liens and certain sale and leaseback transactions and limits the Company’s ability to consolidate, merge, convey, transfer or lease its properties and assets substantially as an entirety. To the extent the terms
of the Supplemental Indenture are inconsistent with the Indenture or this Security, the terms of the Supplemental Indenture shall govern. 
  

	 	5.	Guarantee. 

 The payment by the
Company of the principal of, and premium and interest on, the Securities is irrevocably and unconditionally guaranteed on a senior basis by the Guarantor. 
  

	 	6.	Optional Redemption 

 The
Securities are redeemable, in whole or in part, at the option of the Company, at any time and from time to time at the redemption price described in the Supplemental Indenture. 

 

 B-8 

	 	7.	Change of Control Offer to Repurchase 

If a Change of Control Triggering Event (as defined in the Supplemental Indenture) occurs, unless the Company has exercised its right to
redeem the Securities, Holders of the Securities will have the right to require the Company to repurchase all or a portion of their Securities pursuant to the offer described in the Supplemental Indenture at a purchase price equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase, subject to the rights of Holders of Securities on the relevant Interest Record Date to receive interest due on the relevant Interest Payment Date.

  

	 	8.	Denominations; Transfer; Exchange. 

The Securities are in registered form, without coupons, in denominations of $2,000 and multiples of $1,000. A Holder shall register the
transfer of or exchange Securities in accordance with the Indenture. The Company may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture. The Company need not issue, authenticate, register the transfer of or exchange any Securities or portions thereof for a period of 15 days before such series is selected for redemption,
nor need the Company register the transfer or exchange of any Security selected for redemption in whole or in part. 
  

	 	9.	Persons Deemed Owners. 

 The
registered Holder of a Security shall be treated as the owner of it for all purposes. 
  

	 	10.	Unclaimed Funds. 

 If funds for
the payment of principal or interest remain unclaimed for two years, the Trustee and the Paying Agent will repay the funds to the Company or the Guarantor at its written request. After that, all liability of the Trustee and such Paying Agent with
respect to such funds shall cease. 
  

	 	11.	Legal Defeasance and Covenant Defeasance. 

The Company may be discharged from its obligations under the Securities and under the Indenture with respect to the Securities except for
certain provisions thereof, and may be discharged from obligations to comply with certain covenants contained in the Securities and in the Indenture with respect to the Securities, in each case upon satisfaction of certain conditions specified in
the Indenture. 
  

	 	12.	Amendment; Supplement; Waiver. 

Subject to certain exceptions, the Securities and the provisions of the Indenture relating to the Securities may be amended or
supplemented with the 
  

 B-9 

 
written consent of the Holders of at least a majority in aggregate principal amount of the Securities of all series then outstanding affected by such amendment or supplement (voting as one
class), and any existing Default or Event of Default or compliance with certain provisions may be waived with the consent of the Holders of a majority in aggregate principal amount of all the Securities of such series, each series voting as a
separate class, (or of all the Securities, as the case may be, voting as a single class) then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Securities to, among other
things, cure any ambiguity, defect or inconsistency, provide for uncertificated Securities in addition to or in place of certificated Securities, or make any other change that does not adversely affect the rights of any Holder of a Security.

  

	 	13.	Defaults and Remedies. 

 If an
Event of Default (other than certain bankruptcy Events of Default with respect to the Company or the Guarantor) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of Securities of this series then
outstanding (voting as a separate class) may declare all of the Securities to be due and payable immediately in the manner and with the effect provided in the Indenture. If a bankruptcy Event of Default with respect to the Company or the Guarantor
occurs and is continuing, the entire principal amount of the Securities then outstanding and interest accrued thereon, if any, shall immediately become due and payable. Holders of Securities may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Securities unless it has received indemnity satisfactory to it. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Securities then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Securities notice of certain continuing Defaults or Events of Default if it
determines that withholding notice is in their interest. 
  

	 	14.	Trustee Dealings with Company. 

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with the Company as if it were not the Trustee. 
  

	 	15.	No Recourse Against Others. 

 No
stockholder, director, officer, employee, member or incorporator, as such, of the Company, of the Guarantor or any successor Person thereof shall have any liability for any obligation under the Securities or the Indenture or for any claim based on,
in respect of or by reason of, such obligations or their creation. Each Holder of a Security by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Securities.

  

 B-10 

	 	16.	Authentication. 

 This Security
shall not be valid until the Trustee manually signs the certificate of authentication on this Security. 
  

	 	17.	Abbreviations and Defined Terms. 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

 

	 	18.	CUSIP Numbers. 

 Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the
accuracy of such numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon. 
  

	 	19.	Governing Law. 

 The laws of the
State of New York shall govern the Indenture and this Security thereof. 
  

 B-11 

 ASSIGNMENT FORM 

I or we assign and transfer this Security to 

(Print or type name, address and zip code of assignee or transferee) 

(Insert Social Security or other identifying number of assignee or transferee) 

and irrevocably appoint
                                         agent to
transfer this Security on the books of the Company. The agent may substitute another to act for him. 
 Dated: 

 

			
	Signed:
		
		 	  

		 	(Signed exactly as name appears on the other side of this Security)

  

							
	 Signature

Guarantee:
	 	  
	 		 	
		 	 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the
Trustee)
	 	

  

 B-12 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Security purchased by the Company pursuant to Section 4.02 of the Supplemental Indenture, check
the box   ̈. 
 If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.02 of the Supplemental Indenture, state the amount you elect to have purchased (must be integral multiples of $1,000): 

$ 
 Dated: 

 

			
	Signed:
		
		 	  

		 	(Signed exactly as name appears on the other side of this Security)

  

							
	Signature Guarantee:	 	  
	 		 	
		 	 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the
Trustee)
	 	

  

 B-13 

 EXHIBIT C 

Form of 2040 Note 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE REGISTERED FORM, THIS SECURITY MAY NOT BE TRANSFERRED
EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

 

 C-1 

 DISCOVERY COMMUNICATIONS, LLC 

6.350% Senior Note Due 2040 
  

							
	 	 	 	 	 	 	CUSIP No.: 25470DAD1
	No. [    ]	 		 		 	ISIN No.: US25470DAD12
		 		 		 	$

 DISCOVERY
COMMUNICATIONS, LLC, a Delaware limited liability company (the “Company”, which term includes any successor corporation), for value received promises to pay to CEDE & CO., or registered assigns, the principal sum of $
             (the “Principal”) on June 1, 2040. 

Interest Payment Dates: June 1 and December 1 (each, an “Interest Payment Date”), commencing on December 1,
2010. 
 Interest Record Dates: May 15 and November 15 (each, an “Interest Record Date”). 

Reference is made to the further provisions of this Security contained herein, which will for all purposes have the same effect as if set
forth at this place. 
  

 C-2 

 IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by
facsimile by its duly authorized officer under its seal. 
  

			
	DISCOVERY COMMUNICATIONS, LLC
		
	By:	 	  

		 	Name:
		 	Title:

  

 C-3 

 NOTATION OF GUARANTEE 

Discovery Communications, Inc., a Delaware corporation (the “Guarantor”, which term includes any successor thereto under
the Indenture (the “Indenture”) referred to in the Security on which this notation is endorsed) has unconditionally guaranteed, pursuant to the terms of the Guarantee contained in Article 13 of the Indenture, the due and punctual
payment of the principal of and any premium and interest on this Security, when and as the same shall become due and payable in accordance with the terms of this Security and the Indenture. 

The obligations of the Guarantor to the Holders of the Securities and to the Trustee pursuant to the Guarantee and the Indenture are
expressly set forth in Article 13 of the Indenture, and reference is hereby made to such Article and Indenture for the precise terms of the Guarantee. 

The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Security upon which this
notation of the Guarantee is endorsed shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized signatories. 
  

 C-4 

			
	DISCOVERY COMMUNICATIONS, INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

 C-5 

 This is one of the Securities of the series designated herein and referred to in the
within-mentioned Indenture. 
 Dated: 
  

			
	U.S. BANK NATIONAL ASSOCIATION, Trustee
		
	By:	 	  

		 	Name:
		 	Title: Authorized Officer

  

 C-6 

 (REVERSE OF SECURITY) 

DISCOVERY COMMUNICATIONS, LLC 

6.350% Senior Note Due 2040 
  

	 	1.	Interest. 

 DISCOVERY
COMMUNICATIONS, LLC, a Delaware limited liability company (the “Company”), promises to pay interest on the principal amount of this Security at the rate per annum shown above. Cash interest on the Securities will accrue from the
most recent date to which interest has been paid or, if no interest has been paid, from June 3, 2010. The Company will pay interest semi-annually in arrears on each Interest Payment Date, commencing December 1, 2010. Interest will be
computed on the basis of a 360-day year of twelve 30-day months. If any Interest Payment Date is not a Business Day, then the related payment of interest for such Interest Payment Date shall be paid on the next succeeding Business Day with the same
force and effect as if made on such Interest Payment Date and no further interest shall accrue as a result of such delay. 
 The
Company shall pay interest on overdue principal from time to time on demand at the rate borne by the Securities and on overdue installments of interest (without regard to any applicable grace periods) to the extent lawful. 

 

	 	2.	Method of Payment. 

 The Company
shall pay interest on the Securities (except defaulted interest) to the persons who are the registered Holders at the close of business on the Interest Record Date immediately preceding the Interest Payment Date notwithstanding any transfer or
exchange of such Security subsequent to such Interest Record Date and prior to such Interest Payment Date. Holders must surrender Securities to the Trustee to collect principal payments. The Company shall pay principal and interest in money of the
United States that at the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). Payment of principal of (and premium, if any) and any such interest on this Security will be made at the
Corporate Trust Office of the Trustee in Boston, Massachusetts or at any other office or agency designated by the Company for such purpose; provided that at the option of the Company payment of interest may be made by check mailed to the address of
the Holder entitled thereto as such address appears in the Security register. However, the payments of interest, and any portion of the principal (other than interest payable at maturity or on any redemption or repayment date or the final payment of
principal) shall be made by the Paying Agent, upon receipt from the Company of immediately available funds by 12:30 p.m., New York City time (or such other time as may be agreed to between the Company and the Paying Agent or the Company), directly
to a Holder (by Federal funds wire transfer or otherwise) if the Holder has delivered written instructions to the Trustee 15 days prior to such payment date requesting that such payment will be so made and designating the bank account to which

  

 C-7 

 
such payments shall be so made and in the case of payments of principal surrenders the same to the Trustee in exchange for a Security or Securities aggregating the same principal amount as the
unredeemed principal amount of the Securities surrendered. 
  

	 	3.	Paying Agent. 

 Initially, U.S.
Bank National Association (the “Trustee”) will act as Paying Agent. The Company may change any Paying Agent without notice to the Holders. 
  

	 	4.	Indenture. 

 The Company issued
the Securities under an Indenture, dated as of August 19, 2009 (the “Indenture”), among the Company, the Guarantor and the Trustee. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein.
The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S.C. Sections 77aaa-77bbbb) (the “TIA”), as in effect on the date of the
Indenture. Notwithstanding anything to the contrary herein, the Securities are subject to all such terms, and holders of Securities are referred to the Indenture and the TIA for a statement of them. To the extent the terms of the Indenture and this
Security are inconsistent, the terms of the Indenture shall govern. 
 The Company, the Guarantor and the Trustee entered into a
Second Supplemental Indenture, dated as of June 3, 2010 setting forth certain terms of the Securities pursuant to Section 2.04 of the Indenture (the “Supplemental Indenture”). The Supplemental Indenture imposes certain
limitations on the incurrence of liens and certain sale and leaseback transactions and limits the Company’s ability to consolidate, merge, convey, transfer or lease its properties and assets substantially as an entirety. To the extent the terms
of the Supplemental Indenture are inconsistent with the Indenture or this Security, the terms of the Supplemental Indenture shall govern. 
  

	 	5.	Guarantee. 

 The payment by the
Company of the principal of, and premium and interest on, the Securities is irrevocably and unconditionally guaranteed on a senior basis by the Guarantor. 
  

	 	6.	Optional Redemption 

 The
Securities are redeemable, in whole or in part, at the option of the Company, at any time and from time to time at the redemption price described in the Supplemental Indenture. 

 

 C-8 

	 	7.	Change of Control Offer to Repurchase 

If a Change of Control Triggering Event (as defined in the Supplemental Indenture) occurs, unless the Company has exercised its right to
redeem the Securities, Holders of the Securities will have the right to require the Company to repurchase all or a portion of their Securities pursuant to the offer described in the Supplemental Indenture at a purchase price equal to 101% of the
principal amount thereof plus accrued and unpaid interest, if any, to the date of repurchase, subject to the rights of Holders of Securities on the relevant Interest Record Date to receive interest due on the relevant Interest Payment Date.

  

	 	8.	Denominations; Transfer; Exchange. 

The Securities are in registered form, without coupons, in denominations of $2,000 and multiples of $1,000. A Holder shall register the
transfer of or exchange Securities in accordance with the Indenture. The Company may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges
payable in connection therewith as permitted by the Indenture. The Company need not issue, authenticate, register the transfer of or exchange any Securities or portions thereof for a period of 15 days before such series is selected for redemption,
nor need the Company register the transfer or exchange of any Security selected for redemption in whole or in part. 
  

	 	9.	Persons Deemed Owners. 

 The
registered Holder of a Security shall be treated as the owner of it for all purposes. 
  

	 	10.	Unclaimed Funds. 

 If funds for
the payment of principal or interest remain unclaimed for two years, the Trustee and the Paying Agent will repay the funds to the Company or the Guarantor at its written request. After that, all liability of the Trustee and such Paying Agent with
respect to such funds shall cease. 
  

	 	11.	Legal Defeasance and Covenant Defeasance. 

The Company may be discharged from its obligations under the Securities and under the Indenture with respect to the Securities except for
certain provisions thereof, and may be discharged from obligations to comply with certain covenants contained in the Securities and in the Indenture with respect to the Securities, in each case upon satisfaction of certain conditions specified in
the Indenture. 
  

	 	12.	Amendment; Supplement; Waiver. 

Subject to certain exceptions, the Securities and the provisions of the Indenture relating to the Securities may be amended or
supplemented with the 
  

 C-9 

 
written consent of the Holders of at least a majority in aggregate principal amount of the Securities of all series then outstanding affected by such amendment or supplement (voting as one
class), and any existing Default or Event of Default or compliance with certain provisions may be waived with the consent of the Holders of a majority in aggregate principal amount of all the Securities of such series, each series voting as a
separate class, (or of all the Securities, as the case may be, voting as a single class) then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture and the Securities to, among other
things, cure any ambiguity, defect or inconsistency, provide for uncertificated Securities in addition to or in place of certificated Securities, or make any other change that does not adversely affect the rights of any Holder of a Security.

  

	 	13.	Defaults and Remedies. 

 If an
Event of Default (other than certain bankruptcy Events of Default with respect to the Company or the Guarantor) occurs and is continuing, the Trustee or the Holders of at least 25% in aggregate principal amount of Securities of this series then
outstanding (voting as a separate class) may declare all of the Securities to be due and payable immediately in the manner and with the effect provided in the Indenture. If a bankruptcy Event of Default with respect to the Company or the Guarantor
occurs and is continuing, the entire principal amount of the Securities then outstanding and interest accrued thereon, if any, shall immediately become due and payable. Holders of Securities may not enforce the Indenture or the Securities except as
provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Securities unless it has received indemnity satisfactory to it. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in
aggregate principal amount of the Securities then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Securities notice of certain continuing Defaults or Events of Default if it
determines that withholding notice is in their interest. 
  

	 	14.	Trustee Dealings with Company. 

The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise
deal with the Company as if it were not the Trustee. 
  

	 	15.	No Recourse Against Others. 

 No
stockholder, director, officer, employee, member or incorporator, as such, of the Company, of the Guarantor or any successor Person thereof shall have any liability for any obligation under the Securities or the Indenture or for any claim based on,
in respect of or by reason of, such obligations or their creation. Each Holder of a Security by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Securities.

  

 C-10 

	 	16.	Authentication. 

 This Security
shall not be valid until the Trustee manually signs the certificate of authentication on this Security. 
  

	 	17.	Abbreviations and Defined Terms. 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 

 

	 	18.	CUSIP Numbers. 

 Pursuant to a
recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the
accuracy of such numbers as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon. 
  

	 	19.	Governing Law. 

 The laws of the
State of New York shall govern the Indenture and this Security thereof. 
  

 C-11 

 ASSIGNMENT FORM 

I or we assign and transfer this Security to 

(Print or type name, address and zip code of assignee or transferee) 

(Insert Social Security or other identifying number of assignee or transferee) 

and irrevocably appoint
                                         agent to
transfer this Security on the books of the Company. The agent may substitute another to act for him. 
 Dated: 

 

			
	Signed:
		 	  

		 	(Signed exactly as name appears on the other side of this Security)

  

							
	Signature Guarantee:	  	  
	 		 	
		  	 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the
Trustee)
	 	

  

 C-12 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Security purchased by the Company pursuant to Section 4.02 of the Supplemental Indenture, check
the box   ̈. 
 If you want to elect to have only part of this Security
purchased by the Company pursuant to Section 4.02 of the Supplemental Indenture, state the amount you elect to have purchased (must be integral multiples of $1,000): 

$ 
 Dated: 

 

			
	Signed:
		 	  

		 	(Signed exactly as name appears on the other side of this Security)

  

							
	Signature Guarantee:	  	  
	 		 	
		  	 Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor program reasonably acceptable to the
Trustee)
	 	

  

 C-13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00174-of-00352.parquet"}]]