Document:

Amended and Restated Credit Agreement, dated as of July 1, 2005

 Exhibit 10.01 
  
 Execution Copy 
  

  
 AMENDED AND RESTATED 
 CREDIT AGREEMENT 
  
 Dated as of 
  
 July 1, 2005 
  
 among 
  
 NAVISTAR FINANCIAL CORPORATION, 
  
 ARRENDADORA FINANCIERA NAVISTAR, S.A. DE C.V., ORGANIZACIÓN AUXILIAR

 DEL CRÉDITO 
  
 SERVICIOS FINANCIEROS NAVISTAR, S.A. DE C.V., SOCIEDAD FINANCIERA DE 
 OBJETO LIMITADO 
  
 and 

 
 NAVISTAR COMERCIAL, S.A. DE C.V. 
  
 as Borrowers 
  
 The Lenders Party Hereto, 
  
 JPMORGAN CHASE BANK, N.A. 
  
 as Administrative Agent 
  
 BANK OF AMERICA, N.A., 
  
 as Syndication Agent 
  
 and 
  
 THE BANK OF NOVA SCOTIA,

  
 as Documentation Agent 
  

  
 J.P. MORGAN SECURITIES INC. 
  
 and 
  
 BANC OF AMERICA SECURITIES,
LLC, 
  
 as Joint Book Managers and Joint Lead Arrangers

  

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	ARTICLE I DEFINITIONS	  	1
			
	            SECTION 1.01.	 	Defined Terms	  	1
	            SECTION 1.02.	 	Classification of Loans and Borrowings	  	27
	            SECTION 1.03.	 	Terms Generally	  	28
	            SECTION 1.04.	 	Accounting Terms; GAAP	  	28
	            SECTION 1.05.	 	Interpretation	  	28
		
	ARTICLE II THE US CREDIT FACILITIES	  	29
			
	            SECTION 2.01.	 	Tranche A Term Commitment	  	29
	            SECTION 2.02.	 	Procedure for Tranche A Term Loan Borrowing	  	29
	            SECTION 2.03.	 	Repayment of Tranche A Term Loans	  	29
	            SECTION 2.04.	 	US Revolving Commitments	  	30
	            SECTION 2.05.	 	US Revolving Loans and Borrowings	  	30
	            SECTION 2.06.	 	Procedure for US Revolving Borrowings	  	31
	            SECTION 2.07.	 	Certain Borrowings of US Revolving Loans and Refunding of Loans	  	31
	            SECTION 2.08.	 	Competitive Bid Procedure	  	32
	            SECTION 2.09.	 	Swingline Loans	  	34
	            SECTION 2.10.	 	Letters of Credit	  	35
		
	ARTICLE III THE MEXICAN CREDIT FACILITY	  	40
			
	            SECTION 3.01.	 	Commitments	  	40
	            SECTION 3.02.	 	Loans and Borrowings	  	40
	            SECTION 3.03.	 	Requests for Mexican Revolving Borrowings	  	41
		
	ARTICLE IV TERMS APPLICABLE TO US CREDIT FACILITIES AND MEXICAN CREDIT FACILITY	  	42
			
	            SECTION 4.01.	 	Funding of Borrowings	  	42
	            SECTION 4.02.	 	Interest Elections	  	42
	            SECTION 4.03.	 	Termination and Reduction of Revolving Commitments	  	44
	            SECTION 4.04.	 	Repayment of Loans; Evidence of Debt	  	44
	            SECTION 4.05.	 	Optional Prepayments of Loans	  	45
	            SECTION 4.06.	 	Mandatory Prepayments and Commitment Reductions	  	46
	            SECTION 4.07.	 	Fees	  	46
	            SECTION 4.08.	 	Interest	  	47
	            SECTION 4.09.	 	Alternate Rate of Interest	  	48
	            SECTION 4.10.	 	Increased Costs	  	49
	            SECTION 4.11.	 	Break Funding Payments	  	50
	            SECTION 4.12.	 	Taxes	  	51

  

 i 

					
	            SECTION 4.13.	 	Payments Generally; Pro Rata Treatment; Sharing of Set-offs	  	53
	            SECTION 4.14.	 	Mitigation Obligations; Replacement of Lenders	  	55
		
	ARTICLE V REPRESENTATIONS AND WARRANTIES	  	56
			
	            SECTION 5.01.	 	Organization; Powers	  	56
	            SECTION 5.02.	 	Authorization; Enforceability	  	56
	            SECTION 5.03.	 	Governmental Approvals; No Conflicts	  	56
	            SECTION 5.04.	 	Financial Condition; No Material Adverse Change	  	57
	            SECTION 5.05.	 	Litigation	  	57
	            SECTION 5.06.	 	Compliance with Laws and Agreements	  	58
	            SECTION 5.07.	 	Investment and Holding Company Status	  	58
	            SECTION 5.08.	 	Taxes	  	58
	            SECTION 5.09.	 	ERISA	  	58
	            SECTION 5.10.	 	Subsidiaries	  	58
	            SECTION 5.11.	 	Ownership of Property; Liens	  	58
	            SECTION 5.12.	 	Use of Proceeds	  	58
	            SECTION 5.13.	 	Foreign Exchange Regulations; Immunity; Enforcement	  	58
	            SECTION 5.14.	 	Disclosure	  	59
	            SECTION 5.15.	 	Title; No Other Liens	  	59
	            SECTION 5.16.	 	Perfected First Priority Lien	  	59
		
	ARTICLE VI CONDITIONS	  	60
			
	            SECTION 6.01.	 	Effective Date	  	60
	            SECTION 6.02.	 	Each Borrowing Event	  	62
	            SECTION 6.03.	 	Concurrent Condition for Initial Borrowing	  	62
		
	ARTICLE VII AFFIRMATIVE COVENANTS	  	63
			
	            SECTION 7.01.	 	Financial Statements and Other Information	  	63
	            SECTION 7.02.	 	Notices of Material Events	  	65
	            SECTION 7.03.	 	Existence; Conduct of Business	  	65
	            SECTION 7.04.	 	Payment of Obligations	  	66
	            SECTION 7.05.	 	Maintenance of Properties; Insurance	  	66
	            SECTION 7.06.	 	Books and Records; Inspection Rights	  	66
	            SECTION 7.07.	 	Compliance with Laws and Material Contractual Obligations	  	66
	            SECTION 7.08.	 	Intercompany Agreements	  	66
	            SECTION 7.09.	 	Federal Regulations	  	67
	            SECTION 7.10.	 	Additional Collateral, etc	  	67
	            SECTION 7.11.	 	Post-Closing Requirements	  	 
		
	ARTICLE VIII NEGATIVE COVENANTS	  	68
			
	            SECTION 8.01.	 	Financial Covenants	  	68
	            SECTION 8.02.	 	Indebtedness	  	68
	            SECTION 8.03.	 	Liens	  	69
	            SECTION 8.04.	 	Fundamental Changes	  	70

  

 ii 

					
	            SECTION 8.05.	 	Investments, Loans, Advances, Guarantees and Acquisitions; Hedging Agreements	  	70
	            SECTION 8.06.	 	Restricted Payments	  	72
	            SECTION 8.07.	 	Transactions with Affiliates	  	72
	            SECTION 8.08.	 	Negative Pledge	  	72
	            SECTION 8.09.	 	Prepayments of Subordinated Debt	  	73
	            SECTION 8.10.	 	Serviced Wholesale Portfolio Quality	  	73
	            SECTION 8.11.	 	Serviced Retail Portfolio Quality	  	74
	            SECTION 8.12.	 	Sales and Leasebacks	  	74
	            SECTION 8.13.	 	Changes in Fiscal Periods	  	74
		
	ARTICLE IX EVENTS OF DEFAULT	  	74
		
	ARTICLE X THE ADMINISTRATIVE AGENT	  	78
		
	ARTICLE XI GUARANTEE	  	79
			
	            SECTION 11.01.	 	Guarantee	  	79
	            SECTION 11.02.	 	Waiver of Subrogation	  	80
	            SECTION 11.03.	 	Modification of Mexican Obligations	  	80
	            SECTION 11.04.	 	Waiver by the US Borrower	  	81
	            SECTION 11.05.	 	Reinstatement	  	81
		
	ARTICLE XII MISCELLANEOUS	  	82
			
	            SECTION 12.01.	 	Notices	  	82
	            SECTION 12.02.	 	Waivers; Amendments	  	83
	            SECTION 12.03.	 	Expenses; Indemnity; Damage Waiver	  	84
	            SECTION 12.04.	 	Successors and Assigns	  	85
	            SECTION 12.05.	 	Survival	  	89
	            SECTION 12.06.	 	Counterparts; Integration	  	89
	            SECTION 12.07.	 	Severability	  	89
	            SECTION 12.08.	 	Right of Setoff	  	89
	            SECTION 12.09.	 	GOVERNING LAW	  	90
	            SECTION 12.10.	 	Submission To Jurisdiction; Waivers	  	90
	            SECTION 12.11.	 	Acknowledgments	  	90
	            SECTION 12.12.	 	WAIVERS OF JURY TRIAL	  	91
	            SECTION 12.13.	 	Headings	  	91
	            SECTION 12.14.	 	Confidentiality	  	91
	            SECTION 12.15.	 	Interest Rate Limitation	  	91
	            SECTION 12.16.	 	Waiver of Immunities	  	92
	            SECTION 12.17.	 	Judgment Currency	  	92
	            SECTION 12.18.	 	Loan Equalization; Loan Conversion	  	92
	            SECTION 12.19.	 	Release of Liens	  	93
	            SECTION 12.20.	 	Intercompany Security Agreements	  	93
	            SECTION 12.21.	 	Blocked Account	  	94
	            SECTION 12.22.	 	USA PATRIOT Act	  	94

  

 iii 

 SCHEDULES: 
  

	
	Schedule 2.01 – Commitments
	
	Schedule 5.05 – Disclosed Matters
	
	Schedule 5.10 – Subsidiaries
	
	Schedule 8.02 – Existing Indebtedness
	
	Schedule 8.03 – Existing Liens
	
	Schedule 8.05 – Scheduled Investments

  
 EXHIBITS: 
  

			
	Exhibit A	 	– Form of Assignment and Acceptance
		
	Exhibit B-1	 	– Form of Opinion of Borrower’s New York Counsel
		
	Exhibit B-2	 	– Form of Opinion of Borrower’s General Counsel
		
	Exhibit B-3	 	– Form of Opinion of Borrowers’ Mexican Counsel
		
	Exhibit C	 	– Form of Amended and Restated Parents’ Side Agreement
		
	Exhibit D	 	– Form of Report of Statistical Information
		
	Exhibit E	 	– Form of Borrowing Request
		
	Exhibit F	 	– Form of Compliance Certificate
		
	Exhibit G	 	– Form of Amended and Restated Parent Guarantee
		
	Exhibit H	 	– Form of Amended and Restated Security Agreement
		
	Exhibit I	 	– Form of Blocked Account Agreement
		
	Exhibit J	 	– Form of Blocked Account Certificate

  

 iv 

 AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”), dated as of July 1, 2005,
among NAVISTAR FINANCIAL CORPORATION, a Delaware corporation (the “US Borrower”), ARRENDADORA FINANCIERA NAVISTAR, S.A. DE C.V., ORGANIZACIÓN AUXILIAR DEL CRÉDITO, a Mexican corporation, SERVICIOS FINANCIEROS NAVISTAR,
S.A. DE C.V., SOCIEDAD FINANCIERA DE OBJETO LIMITADO, a Mexican corporation, and NAVISTAR COMERCIAL, S.A. DE C.V., a Mexican corporation (each, a “Mexican Borrower” and collectively, the “Mexican Borrowers”;
together with the US Borrower, the “Borrowers”), the LENDERS party hereto, JPMORGAN CHASE BANK, N.A., as Administrative Agent, BANK OF AMERICA, N.A., as Syndication Agent, and THE BANK OF NOVA SCOTIA, as Documentation Agent.

  
 W I T N E S S E T H: 
  
 WHEREAS, the Borrowers are parties to the Existing Credit Agreement (as
defined below); 
  
 WHEREAS, the Borrowers have requested that the
Existing Credit Agreement be amended and restated as set forth below; and 
  
 WHEREAS, it is the intent of the parties hereto that this Agreement amend and restate in its entirety the Existing Credit Agreement and evidence the obligations of the Borrowers hereunder; 
  
 NOW, THEREFORE, in consideration of the premises and the agreements
hereinafter set forth, the parties hereto hereby agree that, on the Effective Date, the Existing Credit Agreement will be amended and restated in its entirety as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 SECTION 1.01. Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 
  
 “ABR”, when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 
  
 “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest rate per annum (rounded
upwards, if necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate. 

 “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders under this Agreement and the other Loan Documents, or any successor agent appointed in accordance with Article X hereof. 
  
 “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
  
 “Affiliate” means, with respect to a specified Person,
another Person (other than, in the case of any Borrower, such Borrower’s respective Subsidiaries) that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person
specified. 
  
 “Alternate Base Rate” means, for
any day, a rate per annum equal to the greatest of (a) the Prime Rate in effect on such day, (b) the Base CD Rate in effect on such day plus 1% and (c) the Federal Funds Effective Rate in effect on such day plus 1⁄2 of 1%. Any change in the
Alternate Base Rate due to a change in the Prime Rate, the Base CD Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate, the Base CD Rate or the Federal Funds Effective
Rate, respectively. 
  
 “Applicable Rate” means,
for any day, with respect to any ABR Loan or Eurodollar Loan, or with respect to the facility fees payable hereunder, as the case may be, the applicable rate per annum set forth below under the caption “Applicable Rate for ABR Loans”
“Applicable Rate for Eurodollar Loans” or “Facility Fee Rate”, as the case may be, based upon the ratings (each a “Rating”) by S&P and Moody’s, respectively, applicable on such date to the Index Debt of
the US Borrower (or the Parent, in the circumstance described below): 
  

																		
	 	  	 	  	Revolving Credit Loans

	 	 	Tranche A Term Loans

	 	 	 	 
	 Level

	  	 Rating
 S&P/Moody’s

	  	Applicable
Rate for
ABR
Loans

	 	 	Applicable
Rate for
Eurodollar
Loans

	 	 	Applicable
Rate for
ABR
Loans

	 	 	Applicable
Rate for
Eurodollar
Loans

	 	 	Facility Fee
Rate

	 
	 1
	  	BBB-/Baa3 or higher	  	0.00	%	 	0.50	%	 	0.00	%	 	0.75	%	 	0.25	%
	 2
	  	BB+/Ba1	  	0.00	%	 	0.70	%	 	0.00	%	 	1.00	%	 	0.30	%
	 3
	  	BB/Ba2	  	0.00	%	 	0.90	%	 	0.25	%	 	1.25	%	 	0.35	%
	 4
	  	BB-/Ba3	  	0.375	%	 	1.375	%	 	0.75	%	 	1.75	%	 	0.375	%
	 5
	  	Less than BB-/Ba3	  	0.50	%	 	1.50	%	 	1.00	%	 	2.00	%	 	0.50	%

  
 For purposes of the
foregoing, if at any date, the US Borrower does not have a Rating from either (or both) of S&P or Moody’s (or a similar nationally recognized rating agency satisfactory to both the US Borrower and the Administrative Agent), (1) if the
Parent does have such a Rating, then such Rating of the Parent shall be used as if it were the Rating of the US Borrower to determine the applicable Level; and (2) if neither the US Borrower nor the Parent has any Ratings, other than by reason of
the circumstances referred to in the following sentence, Level 5 shall apply. If the rating system of S&P or Moody’s (or a similar nationally recognized rating agency satisfactory to both the US Borrower and the Administrative Agent)

  

 2 

 shall change, or if any such rating agency shall cease to be in the business of rating corporate debt obligations, the US
Borrower and the Lenders shall negotiate in good faith to amend the Applicable Rates hereunder to reflect such changed rating system or the unavailability of Ratings from such rating agency and, pending the effectiveness of any such amendment, the
Applicable Rates shall be determined by reference to the Rating most recently in effect prior to such change or cessation. 
  
 In the event the Ratings of S&P and Moody’s are in different levels set forth in the grid above, the higher of the two Ratings (i.e., the
rating set forth in the grid above opposite the lower numerical level number) shall govern; provided that, if the two Ratings are more than one level apart, the Rating level immediately below the higher Rating level shall apply. 

 
 “Approved Fund” has the meaning set forth in Section
12.04(b). 
  
 “Assessment Rate” means, for any
day, the annual assessment rate in effect on such day that is payable by a member of the Bank Insurance Fund classified as “well-capitalized” and within “supervisory subgroup B” (or a comparable successor risk classification)
within the meaning of 12 C.F.R. Part 327 (or any successor provision) to the Federal Deposit Insurance Corporation for insurance by such Corporation of time deposits made in dollars at the offices of such member in the United States; provided
that if, as a result of any change in any law, rule or regulation, it is no longer possible to determine the Assessment Rate as aforesaid, then the Assessment Rate shall be such annual rate as shall be determined by the Administrative Agent to be
representative of the cost of such insurance to the Lenders. 
  
 “Asset Sale” means any Disposition of property or series of related Dispositions of property (excluding the Disposition of obsolete or worn-out property in the ordinary course of business and any Disposition permitted by
Section 8.04) that yields gross proceeds to the US Borrower or its Subsidiaries (valued at the initial principal amount thereof in the case of non-cash proceeds consisting of notes or other debt securities and valued at fair market value in the case
of other non-cash proceeds) in excess of $10,000,000. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an assignee (with the consent of any party whose consent is required by Section 12.04), and accepted by the Administrative Agent,
in substantially the form of Exhibit A or any other form approved by the Administrative Agent. 
  
 “Availability Period” means the period from and including the Effective Date to but excluding the earlier of the Maturity Date and the date of termination of the Revolving Commitments. 
  
 “Available Mexican Commitment” means, as at any date of
determination (after giving effect to the making, and the application of the proceeds, of any US Revolving Loans required to be made on such date pursuant to Section 2.07), with respect to any Mexican Lender, an amount equal to the lesser of (a) the
excess, if any, of (i) the amount of such Mexican Lender’s Mexican Commitment in effect on such date over (ii) such Mexican Lender’s Mexican Commitment Percentage of the aggregate principal amount of Mexican Revolving Loans
outstanding on such date and (b) the excess, if any, of (i) the amount of such Mexican Lender’s US Revolving Commitment in effect on such date over (ii) the amount of the Revolving Credit Exposure of such Mexican Lender on such date.

  

 3 

 “Available US Revolving Commitment” means as at any date of determination with respect
to any US Lender (after giving effect to the making, and the application of the proceeds, of any US Revolving Loans required to be made on such date pursuant to Section 2.07 or for the prepayment of any outstanding Mexican Revolving Loans), an
amount equal to the excess, if any, of (a) the amount of such Lender’s US Revolving Commitment in effect on such date over (b) the Revolving Credit Exposure of such Lender on such date. 
  
 “Base CD Rate” means the sum of (a) the Three-Month
Secondary CD Rate multiplied by the Statutory Reserve Rate plus (b) the Assessment Rate. 
  
 “Blocked Account” means the bank account subject to the Blocked Account Agreement. 
  
 “Blocked Account Agreement” means the Blocked Account Control Agreement, substantially in the form of Exhibit I, among the US Borrower,
JPMorgan Chase Bank, N.A., as depositary bank, and the Administrative Agent, as the same may be amended, supplemented, waived or otherwise modified from time to time. 
  
 “Board” means the Board of Governors of the Federal Reserve System of the United States of America (or any
successor). 
  
 “Borrowers” has the meaning set
forth in the preamble to this Agreement. 
  
 “Borrowing” means, with respect to each Borrower as applicable, (a) Tranche A Term Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest
Period is in effect, (b) Revolving Loans of the same Type, made, converted or continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect, (c) a Competitive Loan or group of Competitive Loans of
the same Type made on the same date and as to which a single Interest Period is in effect or (d) a Swingline Loan. 
  
 “Borrowing Date” has the meaning set forth in Section 2.07. 
  
 “Borrowing Request” means a request, substantially in the form of Exhibit E, by the US Borrower for a US
Revolving Borrowing in accordance with Section 2.06 or a request by any Mexican Borrower for a Mexican Revolving Borrowing in accordance with Section 2.06. 
  
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London
interbank market. 
  
 “Capital Lease Obligations”
of any Person means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) 
  

 4 

 real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
  
 “Capital Stock” means any and all shares, interests, participations or other equivalents (however
designated) of capital stock of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights or options to purchase any of the foregoing. 
  
 “Cash Balance” means Unrestricted Cash of the US Borrower
and its Subsidiaries minus (i) any amounts utilized for normal operating expenses of the US Borrower and its Subsidiaries consistent with the US Borrower’s and its Subsidiaries’ past business practices, (ii) amounts utilized to purchase
receivables in the normal course of business, (iii) amounts utilized to make payments of permitted dividends consistent with the US Borrower’s past business practices and (iv) amounts on deposit in the Blocked Account. 
  
 “Change in Control” means the occurrence of one or more of
the following events: (i) any Person or group (within the meaning of the Securities Exchange Act of 1934 (the “Exchange Act”) and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof), other
than employee or retiree benefit plans or trusts sponsored or established by the US Borrower or International, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of (A)
securities of the Parent representing 35% or more of the combined voting power of the Parent’s then outstanding voting stock, or (B) securities of the US Borrower representing 50% or more of the combined voting power of the US Borrower’s
then outstanding voting stock; (ii) the following individuals cease for any reason to constitute more than three-fourths of the number of directors then serving on the Board of Directors of the Parent: individuals who, on the date hereof, constitute
the Board of Directors and any new director (other than a director whose initial assumption of the office is in connection with an actual or threatened election contest, including but not limited to a consent solicitation, relating to the election
of directors of the Parent) whose appointment or election by the Board of Directors or nomination for election by the Parent’s stockholders was approved by the vote of a majority of the directors then still in office or whose appointment,
election or nomination was previously so approved or recommended; (iii) the stockholders of the Parent shall approve any Plan of Liquidation; and (iv) the US Borrower consolidates with or merges with or into another Person, or the US Borrower or any
Subsidiary of the US Borrower, directly or indirectly, sells, assigns, conveys, transfers, leases or otherwise disposes of, in one transaction or a series of related transactions, all or substantially all of the property or assets of the US Borrower
and the Subsidiaries of the US Borrower (determined on a consolidated basis) to any Person, or any Person consolidates with, or merges with or into, the US Borrower, in any such event pursuant to a transaction in which the outstanding voting stock
of the US Borrower is converted into or exchanged for cash, securities or other property, and, as a result of which, neither the Parent nor International has “beneficial ownership” (as set forth above), directly or indirectly, of at least
50% of the combined voting power of the then outstanding voting stock of the surviving or transferee corporation, provided that neither (A) a merger permitted under Section 8.04 nor (B) a series of transactions involving the sale of Receivables or
interests therein in the ordinary course of business by the US Borrower or a Securitization Subsidiary in connection with a Qualified Securitization Transaction, shall be deemed to be a Change of Control. 
  

 5 

 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of
this Agreement, (b) any change in any law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or the Issuing Bank (or, for purposes of
Section 4.10(b), by any lending office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made
or issued after the date of this Agreement. 
  
 “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Tranche A Term Loans, Revolving Loans, Competitive Loans or Swingline Loans. 
  
 “Code” means the Internal Revenue Code of 1986, as amended
from time to time, or any successor statute. 
  
 “Collateral” means all property of the US Borrower, now owned or hereafter acquired, upon which a Lien is purported to be created by any Security Document. 
  
 “Commitments” means, collectively, the US Commitments and the Mexican Commitments. 
  
 “Competitive Bid” means an offer by a Lender to make a
Competitive Loan in accordance with Section 2.08. 
  
 “Competitive Bid Rate” means, with respect to any Competitive Bid, the Margin or the Fixed Rate, as applicable, offered by the Lender making such Competitive Bid. 
  
 “Competitive Bid Request” means a request by the US Borrower
for Competitive Bids in accordance with Section 2.08. 
  
 “Competitive Loan” means a Loan made pursuant to Section 2.08. 
  
 “Consolidated Leverage Ratio” means, on any date, the ratio of (a) Consolidated Total Debt on such date to (b) Consolidated Tangible Net Worth on such date. 
  
 “Consolidated Tangible Net Worth” means, on any date, the
consolidated stockholders’ equity of the US Borrower and its consolidated Subsidiaries less, without duplication, (a) their consolidated Intangible Assets and (b) all Redeemable Preferred Stock (if any), all determined as of such date. For
purposes of this definition, “Intangible Assets” means the amount (to the extent reflected in determining such consolidated stockholders’ equity) of (i) all investments in Subsidiaries of the US Borrower other than consolidated
Subsidiaries and (ii) all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, organization or developmental expenses and other intangible items. 
  

 6 

 “Consolidated Total Debt” means, on any date, the outstanding Indebtedness of the US
Borrower and its consolidated Subsidiaries determined on a consolidated basis as of such date; provided that the amount of such Indebtedness shall be (a) increased by all Debt Discount Adjustments (if any) applicable thereto (to the extent
not included in determining the amount of such Indebtedness) and (b) decreased by (i) the aggregate principal amount of all Warehousing Debt outstanding on such date and (ii) the aggregate principal amount of Indebtedness incurred in connection with
Qualified Securitization Transactions outstanding on such date. 
  
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or
otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
  
 “Customary Securitization Undertaking” means, with respect to any Person, any obligation of such Person under a Permitted Receivables
Document that is of a type customarily arising on the part of a seller or servicer of Receivables in securitization transactions of the same general type as the transaction contemplated by such Permitted Receivables Document, including without
limitation, any obligation to (A) purchase or repurchase Receivables or related assets upon the occurrence of certain events, (B) service Receivables or related assets, (C) fund a spread or reserve account at the time of the sale of Receivables,
rights to receive income from Receivables or undivided interests in Receivables or (D) indemnify other Persons; provided that the term “Customary Securitization Undertaking” shall not include any obligation to the extent that it (i)
results from credit losses on receivables or (ii) constitutes a direct obligation of such Person to repay any Indebtedness issued or incurred by any other Person or to indemnify any Person for losses resulting from the nonpayment of any such
Indebtedness or to provide additional capital to, or maintain the financial condition or otherwise support the credit of, the obligor in respect of such Indebtedness (except any obligation to provide additional funds to Subsidiaries of the US
Borrower as part of any Qualified Securitization Transaction). 
  
 “Debt Discount Adjustment” means at any time, with respect to any interest-bearing Indebtedness for Borrowed Money of the US Borrower or any of its consolidated Subsidiaries, the amount (if any) by which (a) the full
outstanding principal amount of such Indebtedness for Borrowed Money exceeds (b) the amount of the liability reflected on the books of the US Borrower or such consolidated Subsidiary with respect to such Indebtedness for Borrowed Money. Without
limiting the generality of the foregoing, it is understood that the concept of a “Debt Discount Adjustment” would not apply to non-interest bearing commercial paper issued at a discount or “zero coupon” bonds. 

 
 “Default” means any event or condition which constitutes
an Event of Default or which upon notice, lapse of time or both would, unless cured or waived, become an Event of Default. 
  
 “Deloitte & Touche” means Deloitte & Touche LLP. 
  
 “Disclosed Matters” means the actions, suits and proceedings disclosed in Schedule 5.05. 
  

 7 

 “Disposition” means, with respect to any property, any sale, lease, sale and leaseback,
transfer or other disposition thereof. The terms “Dispose” and “Disposed of” shall have correlative meanings. 
  
 “Dollars”, “dollars” or “$” refers to lawful money of the United States of America. 
  
 “Effective Date” means the date on which the conditions
specified in Section 6.01 are satisfied (or waived in accordance with Section 12.02). 
  
 “Equalization Date” means any date on which either (a) an Event of Default described in clause (i) or (j) of Article IX has occurred or (b) the Commitments shall have been terminated prior to the
Maturity Date and/or the Loans shall have been declared immediately due and payable, in either case pursuant to Article IX. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, or any successor statute. 
  
 “ERISA Affiliate” means any trade or business (whether or
not incorporated) that, together with the US Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer under Section
414 of the Code. 
  
 “ERISA Event” means (a) any
“reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application for a waiver of the
minimum funding standard with respect to any Plan; (d) the incurrence by the US Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of any Plan; (e) the receipt by the US Borrower or any
ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence by the US Borrower or any of its ERISA Affiliates of any
liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the US Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan from the US Borrower or any
ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA. 
  
 “Eurodollar”, when used in reference to any Loan or
Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate (or, in the case of a Competitive Loan, the LIBO Rate). 
  
 “Event of Default” has the meaning assigned to such term in
Article IX. 
  
 “Existing Credit Agreement” means
the Credit Agreement (as amended, supplemented or otherwise modified prior to the date hereof), dated as of December 8, 2000, 
  

 8 

 among the Borrowers, the banks listed therein, the co-arrangers listed therein and JPMorgan Chase Bank, N.A. (f/k/a The
Chase Manhattan Bank), as administrative agent, and Bank of America, N.A., as syndication agent. 
  
 “Facility” means each of (a) the Tranche A Term Commitments and the Tranche A Term Loans made thereunder (the “Tranche A Term
Facility”) and (b) the Revolving Commitments and the extensions of credit made thereunder (the “Revolving Facility”). 
  
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so
published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of
recognized standing selected by it. 
  
 “First
Lender” has the meaning set forth in Section 12.18(b). 
  
 “Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) the sum of (i) consolidated interest expense of the US Borrower and its consolidated Subsidiaries, (ii) consolidated income of the US Borrower and its
consolidated Subsidiaries before income taxes and (iii) dividends on any preferred stock of the US Borrower or other scheduled payments of a similar nature to (b) the sum of (i) consolidated interest expense of the US Borrower and its consolidated
Subsidiaries and (ii) dividends on any preferred stock of the US Borrower or other scheduled payments of a similar nature. 
  
 “Fixed Rate” means, with respect to any Competitive Loan (other than a Eurodollar Competitive Loan), the fixed rate of interest per annum
specified by the Lender making such Competitive Loan in its related Competitive Bid. 
  
 “Fixed Rate Loan” means a Competitive Loan bearing interest at a Fixed Rate. 
  
 “Foreign Lender” means, in respect of any Borrower, any Lender that is organized under the laws of a jurisdiction other than that in
which such Borrower is located. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
  
 “Funding Office” means the office of the Administrative
Agent specified in Section 12.01 or such other office as may be specified from time to time by the Administrative Agent as its funding office by written notice to the US Borrower and the US Lenders. 
  
 “GAAP” means generally accepted accounting principles in the
United States of America. 
  
 “Governmental
Authority” means the government of the United States of America, Mexico, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
  

 9 

 “Granting Lender” has the meaning set forth in Section 12.04(h). 
  
 “Guarantee” of or by any Person (the
“guarantor”) means any obligation, contingent or otherwise, of the guarantor guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including an aval and including any obligation of the guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such
Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such
Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or
other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness or obligation; provided, that the term Guarantee shall not include (i) endorsements for collection or
deposit or (ii) standard contractual indemnities, each in the ordinary course of business or (iii) any Customary Securitization Undertaking. The amount of any Guarantee of any guaranteeing Person shall be deemed to be the lower of (A) an amount
equal to the stated or determinable amount of the primary obligation in respect of which such Guarantee is made and (B) the maximum amount for which such guaranteeing Person may be liable pursuant to the terms of the instrument embodying such
Guarantee, unless such primary obligation and the maximum amount for which such guaranteeing Person may be liable are not stated or determinable, in which case the amount of such Guarantee shall be such guaranteeing Person’s maximum reasonably
anticipated liability (assuming such Person is required to perform) in respect thereof as determined by such Person in good faith. 
  
 “Hedging Agreement” means any interest rate protection agreement, foreign currency exchange agreement, currency swap agreement, commodity
price protection agreement or other interest or currency exchange rate or commodity price hedging arrangement. 
  
 “IMSS” means the Instituto Mexicano del Seguro Social or Mexican Social Security Institute. 
  
 “Indebtedness” of any Person means on any date, without
duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (c) all Guarantees by such Person of Indebtedness of others, (d) all Capital
Lease Obligations of such Person and (e) all obligations, contingent or otherwise, of such Person to reimburse issuers of letters of credit, surety bonds or similar obligations for payments made to repay, purchase or otherwise retire any
Indebtedness referred to in the foregoing clauses (a) through (d), excluding trade payables and accrued expenses.  
  
 “Indebtedness for Borrowed Money” means the types of Indebtedness referred to in clauses (a) and (b) of the definition of
“Indebtedness”. 
  

 10 

 “Index Debt” means senior, unsecured, long-term indebtedness for borrowed money that is
not guaranteed by any other Person or subject to any other credit enhancement. 
  
 “INFONAVIT” means the Mexican Instituto del Fondo Nacional de la Vivienda para los Trabajadores or Workers’ Housing Fund Institute. 
  
 “Intercompany Loan Agreements” means each agreement from
time to time creating or evidencing any Indebtedness owing from time to time to the US Borrower from one of its Subsidiaries. 
  
 “Interest Election Request” means a request by any Borrower to convert or continue a Borrowing in accordance with Section 4.02.

  
 “Interest Payment Date” means (a) with
respect to any ABR Loan (other than a Swingline Loan), the last day of each March, June, September and December, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part
and, in the case of a Eurodollar Borrowing with an Interest Period of more than three months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such
Interest Period, (c) with respect to any Fixed Rate Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part, and any other dates that are specified in the applicable Competitive Bid Request as Interest
Payment Dates with respect to such Borrowing and (d) with respect to any Swingline Loan, the day that such Loan is required to be repaid. 
  
 “Interest Period” means (a) with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on
the numerically corresponding day in the calendar month that is one, two, three, six, or nine months (or, if available from the relevant Lenders, two weeks, twelve months or other period requested by the relevant Borrower) thereafter, as the
relevant Borrower may elect, (b) with respect to any Eurodollar Competitive Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two or three months
thereafter, as the US Borrower may elect and (c) with respect to any Fixed Rate Borrowing, the period (which shall not be less than seven days or more than ninety days) commencing on the date of such Borrowing and ending on the date specified in the
applicable Competitive Bid Request; provided, that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case of a Eurodollar
Borrowing only, such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any Interest Period pertaining to a Eurodollar Borrowing that commences
on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period.
For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be the effective date of the most recent conversion or continuation of such
Borrowing. 
  

 11 

 “International” means International Truck and Engine Corporation, a Delaware
corporation. 
  
 “Investments” has the meaning
set forth in Section 8.05. 
  
 “Issuing Bank”
means JPMorgan Chase Bank, N.A., in its capacity as the issuer of Letters of Credit hereunder (or any affiliate thereof in its capacity as issuer of Letters of Credit hereunder), and its successors in such capacity as provided in Section 2.10(i).

  
 “Joint Lead Arrangers” means J.P. Morgan
Securities Inc. and Banc of America Securities LLC. 
  
 “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of Credit. 
  
 “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b)
the aggregate amount of all LC Disbursements in respect of Letters of Credit that have not yet been reimbursed by or on behalf of the US Borrower at such time. The LC Exposure of any US Lender in respect of any Letter of Credit shall be its US
Funding Revolving Commitment Percentage (determined on the date of issuance thereof, as reduced or increased by any assignment effected in accordance with Section 12.04) of the LC Exposure in respect of such Letter of Credit, as reduced by any
reduction of such Letter of Credit or any reimbursed drawings thereunder. 
  
 “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Acceptance, other than any such Person that ceases to be a
party hereto pursuant to an Assignment and Acceptance. Unless the context otherwise requires, the term “Lenders” includes the Swingline Lender and the Issuing Bank. 
  
 “Letter of Credit” means any letter of credit issued pursuant to Section 2.10. 
  
 “LIBO Rate” means, with respect to any Eurodollar Borrowing
for any Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on any successor or substitute page of such Service, or any successor to or substitute for such Service, providing rate quotations comparable to those currently
provided on such page of such Service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time for any reason, then the
“LIBO Rate” with respect to such Eurodollar Borrowing for such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the principal London office
of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 
  

 12 

 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
hypothecation, encumbrance, charge or security interest in, on or of such asset and (b) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such asset. 

 
 “Loans” means the loans made by the Lenders to the
Borrowers pursuant to this Agreement. 
  
 “Loan
Documents” means this Agreement, the Security Documents, the Notes, the Parent Guarantee, the Parents’ Side Agreement and any amendment, waiver, supplement or any other modification to any of the foregoing. 
  
 “Majority Facility Lenders” means with respect to any
Facility, the holders of more than 50% of the aggregate unpaid principal amount of the Tranche A Term Loans or the Total Revolving Credit Exposure, as the case may be, outstanding under such Facility (or, in the case of the Revolving Facility, prior
to any termination of the Revolving Commitments, the holders of more than 50% of the Total Revolving Commitments). 
  
 “Margin” means, with respect to any Competitive Loan bearing interest at a rate based on the LIBO Rate, the marginal rate of interest, if
any, to be added to or subtracted from the LIBO Rate to determine the rate of interest applicable to such Loan, as specified by the Lender making such Loan in its related Competitive Bid. 
  
 “Master Intercompany Agreement” means the Revised Master Intercompany Agreement, dated as of May 31, 2005,
between the US Borrower and International, as amended, supplemented or otherwise modified from time to time. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, assets, property or financial condition of the US Borrower
and its Subsidiaries taken as a whole, or (b) the validity or enforceability of any Loan Document or the rights and remedies of or benefits available to the Lenders under any Loan Document. 
  
 “Material Indebtedness” means Indebtedness (other than the
Loans and Letters of Credit), or obligations in respect of one or more Hedging Agreements in an aggregate principal amount exceeding (a) $10,000,000, in the case of the US Borrower, and (b) $5,000,000, in the case of each Mexican Borrower. For
purposes of determining Material Indebtedness, the “principal amount” of the obligations of any Borrower in respect of any Hedging Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that
such Borrower would be required to pay if such Hedging Agreement were terminated at such time. 
  
 “Maturity Date” means the fifth anniversary of the Effective Date, which date is July 1, 2010. 
  
 “Mexican”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are
being made to a Mexican Borrower. 
  
  

 13 

 “Mexican Borrowers” has the meaning set forth in the Preamble to this Agreement.

  
 “Mexican Change in Control” shall occur in
the event that the Parent ceases to own, directly or indirectly, more than 50% of the voting capital stock of any Mexican Borrower. 
  
 “Mexican Commitment” means, with respect to each Mexican Lender, the commitment of such Lender to make Mexican Revolving Loans hereunder,
in an aggregate amount not to exceed at any time outstanding the lesser of (i) the amount initially set forth opposite such Lender’s name on Schedule 2.01 under the heading “Mexican Commitment” or in the Assignment and Acceptance
pursuant to which such Lender shall have assumed its Mexican Commitment, as applicable, and (ii) the US Commitment of such Mexican Lender, as either such commitment may be (a) reduced from time to time pursuant to Section 4.03 and (b) reduced or
increased from time to time pursuant to assignments by or to such Lender pursuant to Section 12.04. The original aggregate principal amount of the Mexican Commitments is $100,000,000. 
  
 “Mexican Commitment Percentage” means, as to any Mexican Lender at any time, the percentage which such
Lender’s Mexican Commitment then constitutes of the aggregate Mexican Commitments of all Mexican Lenders (or, if the Mexican Commitments have terminated or expired, the percentage shall be determined based upon the Mexican Commitments most
recently in effect, giving effect to any assignments). 
  
 “Mexican Lender” means each Lender having an amount greater than zero set forth opposite such Lender’s name in Schedule 2.01 under the heading “Mexican Commitment” and any other Person that shall have become
a party hereto pursuant to an Assignment and Acceptance with respect to a Mexican Commitment. Any US Lender may cause a branch or affiliate of such US Lender to make available its Mexican Commitment and to make the Mexican Loans thereunder, and the
term “Mexican Lender” shall include such branch or affiliate in such capacity where the context permits. 
  
 “Mexican Obligations” means the unpaid principal of and interest on (including, without limitation, interest accruing after the maturity
of the Mexican Revolving Loans and interest accruing after the filing of any petition in bankruptcy (“concurso mercantil” or “quiebra”), or the commencement of any insolvency, reorganization or like proceeding,
relating to any Mexican Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Mexican Revolving Loans and all other obligations and liabilities of the Mexican Borrowers to the Administrative
Agent and the Lenders, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement and any other document made, delivered or
given in connection therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses (including, without limitation, all reasonable fees and disbursements of counsel to the Administrative Agent and
the Lenders that are required to be paid by the Mexican Borrowers pursuant to the terms of this Agreement) or otherwise. 
  
 “Mexico” means the United Mexican States. 
  

 14 

 “Minimum Ratings” means the Index Debt of the US Borrower shall be rated at least BB+ by
S&P and Ba1 by Moody’s, in each case with a stable or better outlook; provided that if either (or both) of S&P or Moody’s shall not have in effect a rating for the Index Debt of the US Borrower and either (or both) of
S&P or Moody’s has in effect such a rating for the Index Debt of the Parent, the rating of the Index Debt of the Parent shall be used as if it were the rating of the US Borrower for purposes of this definition. 
  
 “Moody’s” means Moody’s Investors Service, Inc.

  
 “Multiemployer Plan” means a multiemployer
plan as defined in Section 4001(a)(3) of ERISA. 
  
 “Net
Cash Proceeds” means in connection with any Asset Sale or any Recovery Event, the proceeds thereof in the form of cash and Permitted Investments (including any such proceeds received by way of deferred payment of principal pursuant to a
note or installment receivable or purchase price adjustment receivable or otherwise, but only as and when received), net of attorneys’ fees, accountants’ fees, investment banking fees, amounts required to be applied to the repayment of
Indebtedness secured by a Lien expressly permitted hereunder on any asset that is the subject of such Asset Sale or Recovery Event and other customary fees and expenses actually incurred in connection therewith and net of taxes paid or reasonably
estimated to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements). 
  
 “NFC Receivables Purchase Agreement” means the Receivables Purchase Agreement between the US Borrower and TRIP, dated as of October 16,
2000, as such agreement may be amended or supplemented from time to time. 
  
 “NFRRC” means Navistar Financial Retail Receivables Corporation, a Delaware corporation, and its successors. 
  
 “NFSC” means Navistar Financial Securities Corporation, a Delaware corporation, and its successors. 
  
 “Non-Excluded Taxes” has the meaning set forth in Section
4.12(a). 
  
 “Non-Mexican Lender” means each US
Lender which is not a Mexican Lender. 
  
 “Note”
has the meaning set forth in Section 4.04. 
  
 “Other
Lender” has the meaning set forth in Section 12.18. 
  
 “Other Taxes” means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or from the execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other Loan Document. 
  
 “Parent” means Navistar International Corporation, a Delaware corporation. 
  

 15 

 “Parent Guarantee” means the Amended and Restated Parent Guarantee, substantially in the
form of Exhibit G, as amended, supplemented, or otherwise modified from time to time. 
  
 “Parents’ Side Agreement” means the Amended and Restated Parents’ Side Agreement, substantially in the form of Exhibit C, dated as of the date hereof, by the Parent and International for the
benefit of the Lenders, as amended, supplemented or otherwise modified from time to time. 
  
 “Past Due Serviced Retail Notes” at the end of any month means the aggregate Unpaid Balances at the end of such month of all Serviced Retail Notes with respect to which any amount payable is more than
60 days past due at the end of such month. 
  
 “Past Due
Serviced Wholesale Notes” at the end of any month means the aggregate Unpaid Balances at the end of such month of all Serviced Wholesale Notes (or installments thereof) which are more than one month past due at the end of such month.

  
 “PBGC” means the Pension Benefit Guaranty
Corporation referred to and defined in ERISA and any successor entity performing similar functions. 
  
 “Permitted Encumbrances” means: 
  
 (a) Liens imposed by law for taxes, assessments or governmental charges that are not yet due or are being contested in compliance with Section 7.04;

  
 (b) carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of business and securing obligations that (i) are not overdue by more than 30 days or (ii) are being contested in compliance with Section 7.04;

  
 (c) pledges and deposits made in the ordinary course of
business in compliance with workers’ compensation, unemployment insurance, health insurance and other social security laws or regulations and withholding taxes; 
  
 (d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in the ordinary course of business; 
  
 (e) easements, zoning restrictions, rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business
that do not secure any monetary obligations and do not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the relevant Borrower or any of its Subsidiaries; 
  
 (f) Liens arising from judgments, decrees or attachments that do not
constitute an Event of Default hereunder; 
  

 16 

 (g) Liens arising from precautionary Uniform Commercial Code financing statements filed in connection
with operating leases of the US Borrower or its Subsidiaries; 
  
 (h) any interest or title of a licensor, lessor or sublessor under any license, lease or sublease entered into by any Borrower in the ordinary course of business and covering only the assets so licensed, leased or subleased; and 

 
 (i) Liens arising in connection with any Qualified Securitization
Transaction;  
  
 provided that, with respect to clauses (a) through
(h) above, the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness. 
  
 “Permitted Investments” means: 
  
 (a) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United States
government (provided that the full faith and credit of the United States is pledged in support of those securities) having maturities of not more than twenty-four months from the date of acquisition; 
  
 (b) certificates of deposit and eurodollar time deposits with maturities of
twenty-four months or less from the date of acquisition, bankers’ acceptances with maturities not exceeding twenty-four months and overnight bank deposits, in each case, with any commercial bank incorporated under the laws of the United States
of America, any state thereof or the District of Columbia having capital and surplus in excess of $500,000,000 and a Thomson Bank Watch Rating of “B” or better; 
  
 (c) repurchase obligations or securities lending arrangements for underlying securities of the types described in clauses
(a) and (b) above entered into with any financial institution meeting the qualifications specified in clause (b) above; 
  
 (d) commercial paper having a rating of at least “A-2” from S&P or “P-2” from Moody’s and in each case maturing within 270
days after the date of acquisition or asset-backed securities having a rating of at least “A” from S&P or “A2” from Moody’s and in each case maturing within thirty-six months after the date of acquisition; 
  
 (e) demand or time deposit accounts used in the ordinary course of business
with overseas branches of commercial banks incorporated under the laws of the United States of America, any state thereof or the District of Columbia, provided that such commercial bank has, at the time of the Investment therein, (1) capital,
surplus and undivided profits (as of the date of such institution’s most recently published financial statements) in excess of $100,000,000 and (2) the long-term unsecured debt obligations (other than such obligations rated on the basis of the
credit of a Person other than such institution) of such institution, at the time of the Investment therein, are rated at least “A” from S&P or “A2” from Moody’s; 
  
 (f) obligations (including, but not limited to demand or time deposits,
bankers’ acceptances and certificates of deposit) issued or guaranteed by a depository institution or trust company incorporated under the laws of the United States of America, any state thereof or the District of Columbia, provided that
(A) such instrument has a final maturity not more than 
  

 17 

 one year from the date of purchase thereof and (B) such depository institution or trust company has at the time of the
Investment therein or contractual commitment providing for such Investment, (x) capital, surplus and undivided profits (as of the date of such institution’s most recently published financial statements) in excess of $100,000,000 and (y) the
long-term unsecured debt obligations (other than such obligations rated on the basis of the credit of a Person other than such institution) of such institution, at the time of the Investment therein or contractual commitment providing for such
Investment, are rated at least “A” from S&P or “A2” from Moody’s; and 
  
 (g) money market funds at least 95% of the assets of which constitute Permitted Investments of the kinds described in clauses (a) through (e) of this
definition. 
  
 Notwithstanding the foregoing, Investments which would otherwise
constitute Permitted Investments of the kinds described in clauses (a), (b), (c) and (d) that are permitted to have maturities in excess of twelve months shall only be deemed to be Permitted Investments under this definition if and only if the total
weighted average maturity of all Permitted Investments of the kinds described in clauses (a), (b), (c) and (d) does not exceed twelve months on an aggregate basis. 
  
 “Permitted Receivables Document” means any document to which the US Borrower or any Subsidiary of the US
Borrower is a party that relates to a sale or transfer by the US Borrower or such Subsidiary of Receivables, undivided interests therein or rights to receive income therefrom. 
  
 “Person” means any natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity. 
  
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of
which the US Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  
 “Plan of Liquidation” means, with respect to the Parent, a
plan (including by operation of law) that provides for, contemplates or the effectuation of which is preceded or accompanied by (whether or not substantially contemporaneously) (i) the sale, lease, conveyance or other disposition of all or
substantially all of the assets of the Parent and (ii) the distribution of all or substantially all of the proceeds of such sale, lease, conveyance or other disposition and all or substantially all of the remaining assets of the Parent to holders of
capital stock of the Parent. 
  
 “Prime Rate”
means the rate of interest per annum publicly announced from time to time by JPMorgan Chase Bank, N.A. as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date
such change is publicly announced as being effective. 
  
 “Qualified Securitization Transaction” means any transaction or series of transactions that have been or may be entered into by the US Borrower or any of its Subsidiaries in connection with or reasonably related to a
transaction or series of transactions in which the US 
  

 18 

 Borrower or any of its Subsidiaries may sell, convey or otherwise transfer to (i) a Securitization Subsidiary or (ii) any
other Person, or may grant a security interest in, any Receivables or interests therein secured by the goods or services financed thereby (whether such Receivables are then existing or arising in the future) of the US Borrower or any of its
Subsidiaries, and any assets related thereto including, without limitation, all security interests in goods or services financed thereby, the proceeds of such Receivables, and other assets which are customarily sold or in respect of which security
interests are customarily granted in connection with securitization transactions involving such assets. 
  
 “Receivables” means, as the context may require, either (a) all assets of the types classified under the heading “Finance
Receivables” on the statement of consolidated financial condition of the US Borrower and its consolidated Subsidiaries as of October 31, 2004 and the related statements of consolidated income and retained earnings and consolidated cash flow for
the fiscal year then ended, together with the notes thereto, included in the 2004 Annual Report and reported on by Deloitte & Touche or (b) the aggregate Unpaid Balances thereof or (c) equipment on operating leases. 
  
 “Recovery Event” means any settlement of or payment in
respect of any property or casualty insurance claim or any condemnation proceeding relating to any asset of the US Borrower or its Subsidiaries that yields gross proceeds to the US Borrower or its Subsidiaries in excess of $10,000,000. 

 
 “Redeemable Preferred Stock” means preferred stock of the
US Borrower which is required, or at the option of the holder may be required, to be redeemed or repurchased at any time. 
  
 “Reimbursement Obligation” means the obligation of the US Borrower to reimburse the Issuing Lender for amounts drawn under Letters
of Credit. 
  
 “Reinvestment Deferred Amount”
means with respect to any Reinvestment Event, the aggregate Net Cash Proceeds received by the US Borrower or any of its Subsidiaries in connection therewith that are not applied to prepay the Tranche A Term Loans pursuant to Section 4.06(a) as a
result of the delivery of a Reinvestment Notice. 
  
 “Reinvestment Event” means any Asset Sale or Recovery Event in respect of which the US Borrower has delivered a Reinvestment Notice. 
  

“Reinvestment Notice” means a written notice executed by a Responsible Officer stating that no Event of Default has occurred and is
continuing and that the US Borrower (directly or indirectly through a Subsidiary) intends and expects to use all or a specified portion of the Net Cash Proceeds of an Asset Sale or Recovery Event to acquire or repair assets useful in the business of
the US Borrower and its Subsidiaries. 
  
 “Reinvestment
Prepayment Amount” means with respect to any Reinvestment Event, the Reinvestment Deferred Amount relating thereto less any amount expended prior to the relevant Reinvestment Prepayment Date to acquire or repair assets useful in the
business of the US Borrower and its Subsidiaries. 
  

 19 

 “Reinvestment Prepayment Date” means, with respect to any Reinvestment Event, the
earlier of (a) the date occurring six months after such Reinvestment Event and (b) the date on which the US Borrower shall have determined not to, or shall have otherwise ceased to, acquire or repair assets useful in business of the US Borrower and
its Subsidiaries with all or any portion of the relevant Reinvestment Deferred Amount. 
  
 “Register” has the meaning set forth in Section 12.04. 
  
 “Related Parties” means, with respect to any specified Person, such Person’s Affiliates and the respective directors, officers,
employees, agents and advisors of such Person and such Person’s Affiliates. 
  
 “Requested Mexican Loans” has the meaning set forth in Section 2.07. 
  
 “Required Lenders” means, at any time, the holders of more than 50% of (a) until the Effective Date, the US Commitments then in effect
and (b) thereafter, the sum of (i) the aggregate unpaid principal amount of the Tranche A Term Loans then outstanding and (ii) the aggregate US Revolving Commitments then in effect; provided that, for purposes of declaring the Loans to be due
and payable pursuant to Article IX, and for all purposes after the Loans become due and payable pursuant to Article IX or the Commitments expire or terminate, “Required Lenders” means Lenders having Tranche A Term Loans, Revolving Credit
Exposures and outstanding Competitive Loans representing more than 50% of the aggregate amount of the Tranche A Term Loans, the aggregate Revolving Credit Exposures and outstanding Competitive Loans of all Lenders. 
  
 “Responsible Officer” means, (1) with respect to the US
Borrower, the chief executive officer, president, vice president and treasurer, vice president and controller, and general counsel of such Borrower, but in any event, with respect to financial matters, the vice president and treasurer or the vice
president and controller of such Borrower and (2) with respect to each Mexican Borrower, the treasurer, financial director and managing director of such Borrower, but in any event, with respect to financial matters, the treasurer or the financial
director of such Borrower. 
  
 “Restricted
Payment” means any dividend or other distribution (whether in cash, securities or other property) with respect to any shares of any class of capital stock of any Borrower or any Subsidiary (except dividends payable solely in shares of its
capital stock), or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such shares of capital
stock of such Borrower or any option, warrant or other right to acquire any such shares of capital stock of such Borrower. 
  
 “Retail Accounts” means, as the context may require, (a) all assets of the types classified under the heading “Accounts” in the
statement of consolidated financial condition of the US Borrower and its consolidated Subsidiaries as of October 31, 2004 and the related statements of consolidated income and retained earnings and consolidated cash flow for the fiscal year then
ended, together with the notes thereto, included in the 2004 Annual Report and reported on by Deloitte & Touche (other than with respect to which the obligor is (i) a dealer in 
  

 20 

 or distributor of products manufactured, assembled or sold by International or any subsidiary of International or (ii) a
manufacturer which incorporates, in its products, products manufactured assembled or sold by International or any subsidiary of International) or (b) the aggregate Unpaid Balances thereof. 
  
 “Retail Notes” means, as the context may require, either (a)
all assets of the types classified under the heading “Retail notes and finance leases” in the statement of consolidated financial condition of the US Borrower and its consolidated Subsidiaries as of October 31, 2004 and the related
statements of consolidated income and retained earnings and consolidated cash flow for the fiscal year then ended, together with the notes thereto, included in the 2004 Annual Report and reported on by Deloitte & Touche or (b) the aggregate
Unpaid Balances thereof or (c) investment in equipment on operating leases. 
  
 “Revolving Commitments” means, collectively, the US Revolving Commitments and the Mexican Commitments. 
  
 “Revolving Credit Exposure” means, with respect to any Lender at any time, the sum of the outstanding principal amount of such
Lender’s Revolving Loans and its LC Exposure and Swingline Exposure at such time. 
  
 “Revolving Credit Exposure Percentage” means, on any date with respect to any Lender, the percentage which the Revolving Credit Exposure of such Lender constitutes of the Revolving Credit Exposure of
all Lenders. 
  
 “Revolving Loan” means a Loan
made pursuant to Section 2.06 or Section 3.03. 
  
 “Revolving Retail Facility Documents” means the NFC Receivables Purchase Agreement, the Revolving Retail Note Indenture and related documents. 
  
 “Revolving Retail Facility Trustee” means the trustee under the Revolving Retail Note Indenture.

  
 “Revolving Retail Note Indenture” means an
Indenture between TRIP and the Revolving Retail Facility Trustee, dated as of October 16, 2000, as such agreement may be amended or supplemented from time to time. 
  
 “Revolving Retail Notes” means the medium term notes issued by TRIP pursuant to the Revolving Retail Note
Indenture. 
  
 “S&P” means Standard &
Poor’s Ratings Services, a division of the McGraw-Hill Companies, Inc. 
  
 “SAR” means the Mexican Sistema de Ahorro para el Retiro or Savings for Retirement System. 
  
 “Securitization Subsidiary” means a wholly owned Subsidiary of the US Borrower which engages in no activities other than those reasonably
related to or in connection with the entering into of securitization transactions and which is designated by the Board of 
  

 21 

 Directors of the US Borrower (as provided below) as a Securitization Subsidiary (a) no portion of the Indebtedness or any
other obligations (contingent or otherwise) of which (i) is guaranteed by the US Borrower or any other Subsidiary of the US Borrower other than pursuant to Standard Securitization Undertakings, (ii) is recourse to or obligates the US Borrower or any
other Subsidiary of the US Borrower in any way other than pursuant to Standard Securitization Undertakings or (iii) subjects any property or asset of the US Borrower or any other Subsidiary of the US Borrower, directly or indirectly, contingently or
otherwise, to any Lien or to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings, (b) with which neither the US Borrower nor any other Subsidiary of the US Borrower (i) provides any credit support (for the avoidance
of doubt, no Intercompany Loan Agreement shall be deemed to constitute “credit support”) or (ii) has any contract, agreement, arrangement or understanding other than on terms that are fair and reasonable and that are no less favorable to
the US Borrower or such Subsidiary than could be obtained from an unrelated Person (other than Standard Securitization Undertakings and intercompany notes relating to the sale of Receivables to such Securitization Subsidiary) and (c) with which
neither the US Borrower nor any Subsidiary of the US Borrower has any obligation to maintain or preserve such Subsidiary’s financial condition or to cause such Subsidiary to achieve certain levels of operating results. Any such designation by
the Board of Directors of the US Borrower shall be evidenced to the Administrative Agent by filing with the Administrative Agent a certified copy of the resolutions of the Board of Directors of the US Borrower giving effect to such designation.

  
 “Security Agreement” means the Amended and
Restated Security, Pledge & Trust Agreement, substantially in the form of Exhibit H, to be dated the date hereof. 
  
 “Security Documents” means the collective reference to the Security Agreement, the Blocked Account Agreement and all other security
documents hereafter delivered to the Administrative Agent granting a Lien on any property of any Person to secure the obligations and liabilities of the Borrowers under any Loan Document. 
  
 “Serviced Retail Accounts” means, at any time, as the context may require, (a) all outstanding Retail
Accounts which the US Borrower or any Subsidiary of the US Borrower owns at such time or which the US Borrower or any Subsidiary of the US Borrower has theretofore sold and continues to have an economic interest in (through a right to receive
payment of deferred purchase price, an undivided interest in a trust or otherwise) at such time or (b) the Unpaid Balances thereof. 
  
 “Serviced Retail Notes” means, at any time, as the context may require, (a) all outstanding Retail Notes which the US Borrower, NFRRC,
TRIP or any other Subsidiary of the US Borrower owns at such time or which the US Borrower, NFRRC, TRIP or any other Subsidiary of the US Borrower has theretofore sold and continues to have an economic interest in (through a right to receive payment
of deferred purchase price, an undivided interest in a trust or otherwise) at such time or (b) the Unpaid Balances thereof. 
  
 “Serviced Retail Receivables” means Serviced Retail Notes and Serviced Retail Accounts. 
  

 22 

 “Serviced Wholesale Notes” means, at any time, as the context may require, (a) all
outstanding Wholesale Notes which the US Borrower, NFSC or any other Subsidiary of the US Borrower owns at such time or which the US Borrower, NFSC or any other Subsidiary of the US Borrower has theretofore sold and continues to have an economic
interest in (through ownership of a seller certificate, a right to receive payment of deferred purchase price, an undivided interest in a trust or otherwise) at such time or (b) the Unpaid Balances thereof. 
  
 “SPC” has the meaning set forth in Section 12.04(h).

  
 “Standard Securitization Undertakings” means
representations, warranties and covenants (including those relating to servicing) entered into in the ordinary course of business in connection with a Qualified Securitization Transaction. 
  
 “Statutory Reserve Rate” means a fraction (expressed as a
decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal
established by the Board to which the Administrative Agent is subject (a) with respect to the Base CD Rate, for new negotiable nonpersonal time deposits in dollars of over $100,000 with maturities approximately equal to three months and (b) with
respect to the Adjusted LIBO Rate, for Eurocurrency funding (currently referred to as “Eurocurrency liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar
Loans shall be deemed to constitute Eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D
or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 
  
 “Subordinated Debt” means Indebtedness that (i) is unsecured and is subordinated to the US Obligations,
(ii) is not Guaranteed by the Parent, International or any subsidiary of the Parent or International, (iii) does not mature or require any scheduled payment of principal or any mandatory repayment or prepayment (contingent or otherwise) prior to the
date that is six months after the Maturity Date, and (iv) contains other terms and conditions reasonably acceptable to the Administrative Agent (it being understood that the terms of such Indebtedness shall not include any financial covenants or a
default based solely on the occurrence of a Default or Event of Default). 
  
 “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company, partnership, association or other entity the accounts of which
would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date, as well as any other corporation, limited liability company,
partnership, association or other entity (a) of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the general
partnership interests are, as of such date, owned, controlled or held, or (b) that is, as of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

  

 23 

 “Subsidiary” means any subsidiary of any Borrower. 
  
 “Supermajority Lenders” means, at any time, the holders of
at least 66 2/3% of (a) until the Effective Date, the US Commitments then in effect and (b) thereafter, the sum
of (i) the aggregate unpaid principal amount of the Tranche A Term Loans then outstanding and (ii) the aggregate US Revolving Commitments then in effect; provided that, for purposes of declaring the Loans to be due and payable pursuant to
Article IX, and for all purposes after the Loans become due and payable pursuant to Article IX or the Commitments expire or terminate, “Supermajority Lenders” means Lenders having Tranche A Term Loans, Revolving Credit Exposures and
outstanding Competitive Loans representing at least 66 2/3% of the aggregate amount of the Tranche A Term Loans,
the aggregate Revolving Credit Exposures and outstanding Competitive Loans of all Lenders. 
  
 “Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline
Exposure of any Lender in respect of any Swingline Loan shall be its US Funding Revolving Commitment Percentage (determined on the date such Swingline Loan is made, as reduced or increased by any assignment effected in accordance with Section 12.04)
of the principal amount of such Swingline Loan. 
  
 “Swingline Fixed Rate Loan” has the meaning set forth in Section 2.09(b). 
  
 “Swingline Interest Period” has the meaning set forth in Section 2.09(b). 
  
 “Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans hereunder.

  
 “Swingline Loan” means a Loan made pursuant
to Section 2.09. 
  
 “Tax Allocation Agreement”
means the Tax Allocation Agreement, effective October 1, 1981, between and among International and certain of its subsidiaries, as amended, supplemented or otherwise modified from time to time. 
  
 “Taxes” means any and all present or future taxes, levies,
imposts, duties, deductions, charges or withholdings imposed by any Governmental Authority. 
  
 “Three-Month Secondary CD Rate” means, for any day, the secondary market rate for three-month certificates of deposit reported as being in effect on such day (or, if such day is not a Business Day,
the next preceding Business Day) by the Board through the public information telephone line of the Federal Reserve Bank of New York (which rate will, under the current practices of the Board, be published in Federal Reserve Statistical Release
H.15(519) during the week following such day) or, if such rate is not so reported on such day or such next preceding Business Day, the average of the secondary market quotations for three-month certificates of deposit of major money center banks in
New York City received at approximately 10:00 a.m., New York City time, on such day (or, if such day is not a Business Day, on the next preceding Business Day) by the Administrative Agent from three negotiable certificate of deposit dealers of
recognized standing selected by it. 
  

 24 

 “(Three-Month Total)” means, when used with respect to any type of Receivables (or
portions thereof) at the end of any month, the sum of the aggregate Unpaid Balances of such type of Receivables (or portions thereof) at the end of such month and at the end of each of the immediately preceding two months. 
  
 “Total Revolving Commitments” means at any time, the
aggregate amount of the Revolving Commitments then in effect. 
  
 “Total Revolving Credit Exposure” means at any time, the aggregate amount of the Revolving Credit Exposure of the Lenders outstanding at such time. 
  
 “Tranche A Term Commitment” means, as to any US Lender, the obligation of such US Lender, if any, to make a
Tranche A Term Loan to the US Borrower in a principal amount not to exceed the amount set forth under the heading “Tranche A Term Commitment” opposite such Lender’s name on Schedule 2.01. The original aggregate principal amount of the
Tranche A Term Commitments is $400,000,000. 
  
 “Tranche A
Term Lender” means each US Lender that has a Tranche A Term Commitment or that holds a Tranche A Term Loan. 
  
 “Tranche A Term Loan” has the meaning set forth in Section 2.01. 
  
 “Tranche A Term Percentage” means, as to any Tranche A Term Lender, at any time, the percentage which such
Lender’s Tranche A Term Commitment then constitutes of the aggregate Tranche A Term Commitments (or, at any time after the Effective Date, the percentage which the aggregate principal amount of such Lender’s Tranche A Term Loans then
outstanding constitutes of the aggregate principal amount of the Tranche A Term Loans then outstanding). 
  
 “Transactions” means the execution, delivery and performance by the Borrowers of this Agreement, the borrowing of Loans, the use of the
proceeds thereof and the issuance of Letters of Credit hereunder and the execution, delivery and performance by the Parent of the Parent Guarantee and by the Parent and International of the Parents’ Side Agreement. 
  
 “TRIP” means Truck Retail Instalment Paper Corp., a Delaware
corporation, and its successors. 
  
 “2004 Annual
Report” means the US Borrower’s 2004 Annual Report on Form 10-K for the fiscal year ended October 31, 2004, in the form delivered to the Lenders prior to the date hereof. 
  
 “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such
Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate, the Alternate Base Rate or, in the case of a Competitive Loan or Borrowing, the LIBO Rate or a Fixed Rate. 
  
 “Unpaid Balance” means at any time (a) with respect to any
Serviced Retail Note, the unpaid amount thereof at such time, including all finance income, whether or not earned, and other amounts due or to become due thereunder, except interest payments not already included in 
  

 25 

 scheduled installments, late payment charges, delinquency charges, extension fees and collection fees, (b) with respect
to any Serviced Wholesale Note (or installment thereof), the unpaid principal amount thereof at such time and (c) with respect to any Serviced Retail Account, the net balance of such Account at such time. 
  
 “Unrestricted Cash” means all cash and marketable securities
of the US Borrower and its Subsidiaries not classified as “Restricted Cash” in accordance with GAAP. 
  
 “Upgrading” means the Index Debt of the US Borrower has been upgraded to the Minimum Ratings. 
  
 “US”, when used in reference to any Loan or Borrowing,
refers to whether such Loan, or the Loans comprising such Borrowing, are being made to the US Borrower. 
  
 “US Borrower” has the meaning set forth in the preamble to this Agreement. 
  
 “US Commitments” means, collectively, the Tranche A Term Commitments and the US Revolving Commitments.

  
 “US Funding Revolving Commitment Percentage”
means, as at any date of determination (after giving effect to the making, and application of proceeds, of any Loans made on such date pursuant to Section 2.07), with respect to any US Lender, that percentage which the Available US Revolving
Commitment of such Lender then constitutes of the aggregate Available US Revolving Commitments; provided that each US Lender’s US Funding Revolving Commitment Percentage of any US Revolving Loan or Swingline Loan the proceeds of which
are applied to refund any Swingline Loan or to pay reimbursement obligations in respect of any Letter of Credit shall be equal to such US Lender’s US Funding Revolving Commitment Percentage of such Swingline Loan or reimbursement obligations
(determined on the date on which such Swingline Loans were made or such Letter of Credit was issued, as the case may be, but giving effect to any assignments). 
  

“US Lenders” means each Lender having an amount greater than zero set forth under the heading “US Revolving Commitment” or
“Tranche A Term Commitment” opposite its name on Schedule 2.01 and any other Person that shall have become a party hereto pursuant to an Assignment and Acceptance with respect to a US Commitment. 
  
 “US Obligations” means the unpaid principal of and interest
on (including interest accruing after the maturity of the Loans and Reimbursement Obligations and interest accruing after the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to
the US Borrower, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Loans and all other obligations and liabilities of the US Borrower to the Administrative Agent or to any Lender (or, in the case of
Hedging Agreements, any affiliate of any Lender), whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in connection with, this Agreement, any other Loan
Document, the Letters of Credit, any Hedging Agreement or any other document made, delivered or given in connection herewith or therewith, whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses
(including all fees, charges and disbursements of counsel to the Administrative Agent or to any Lender that are required to be paid by the US Borrower pursuant hereto) or otherwise. 
  

 26 

 “US Revolving Commitment” means, with respect to each US Lender, the commitment of such
Lender to make US Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, in an aggregate amount not to exceed at any time outstanding the amount initially set forth opposite such Lender’s name on
Schedule 2.01 under the heading “Total Revolving Commitment” or in the Assignment and Acceptance pursuant to which such Lender shall have assumed its US Revolving Commitment, as applicable, as such commitment may be (a) reduced from time
to time pursuant to Section 4.03 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 12.04. The original aggregate principal amount of the US Revolving Commitments is $800,000,000.

  
 “US Revolving Commitment Percentage” means,
as to any US Lender at any time, the percentage which such Lender’s US Revolving Commitment then constitutes of the aggregate US Revolving Commitments of all US Lenders (or, if the US Revolving Commitments have terminated or expired, the
percentage shall be determined based upon the US Revolving Commitments most recently in effect, giving effect to any assignments). 
  
 “Warehousing Collateral” means the collateral securing Warehousing Debt, including, without limitation, any spread account or reserve
required to be established under the Revolving Retail Facility Documents or any other relevant securitization documents. 
  
 “Warehousing Debt” means as of any date Indebtedness of (a) TRIP owing to holders of the Revolving Retail Notes or (b) the US Borrower or
any of its Subsidiaries, in each case with respect to which (i) neither the US Borrower nor any of its Subsidiaries (other than TRIP, in the case of clause (a), or the US Borrower or such Subsidiary, in the case of clause (b)) has any liability,
absolute or contingent, direct or indirect, provided that, for purposes of the foregoing, neither the US Borrower nor any of its Subsidiaries shall be deemed to have any liability with respect to any such Indebtedness solely as a result of any
Customary Securitization Undertaking of the US Borrower or such Subsidiary, as the case may be, and (ii) recourse for payment thereof is expressly limited to the Warehousing Collateral. 
  
 “Wholesale Notes” means, as the context may require, (a) all assets of the types classified under the
heading “Wholesale notes” in the statement of consolidated financial condition of the US Borrower and its consolidated Subsidiaries as of October 31, 2004 and the related statements of consolidated income and retained earnings and
consolidated cash flow for the fiscal year then ended, together with the notes thereto, included in the 2004 Annual Report and reported on by Deloitte & Touche or (b) the aggregate Unpaid Balances thereof. 
  
 “Withdrawal Liability” means liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  
 SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement and any other Loan Document, Loans may be classified and
referred to by Class 
  

 27 

 (e.g., a “Revolving Loan”), by Type (e.g., a “Eurodollar Loan”), by Borrower
(e.g., a “Mexican Loan”), by Class and Type (e.g., a “Eurodollar Revolving Loan”), by Class and Borrower (e.g., a “Mexican Revolving Loan”), by Borrower and Type (e.g., a “Mexican
Eurodollar Loan”) or by Class, Type and Borrower (e.g., a “Mexican Eurodollar Revolving Loan”). Borrowings also may be classified and referred to by Class (e.g., a “Revolving Borrowing”) by Type (e.g., a
“Eurodollar Borrowing”), by Borrower (e.g., a “Mexican Borrowing”), by Class and Type (e.g., a “Eurodollar Revolving Borrowing”), by Class and Borrower (e.g., a “Mexican Revolving Loan”),
by Borrower and Type (e.g., a “Mexican Eurodollar Loan”) or by Class, Type and Borrower (e.g., a “Mexican Eurodollar Revolving Loan”). 
  
 SECTION 1.03. Terms Generally. The definitions of terms herein shall apply equally to the singular and plural forms
of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by
the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement,
instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or
modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”, “hereof” and “hereunder”, and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights. 
  
 SECTION 1.04.
Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if the US Borrower
notifies the Administrative Agent that such Borrower requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the US Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP, or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith.

  
 SECTION 1.05. Interpretation. References in this
Agreement to the term “sale” with respect to any transfer of Receivables, rights to receive income therefrom or undivided interests therein are deemed to include any transfer which purports to be a sale on the face of the agreement
governing such transfer, without regard to whether such transfer would constitute a “true sale” under applicable legal principles. The terms “sell” and “sold”, as used as described in the foregoing sentence, shall have
correlative meanings. 
  

 28 

 ARTICLE II 
  
 THE US CREDIT FACILITIES 
  
 SECTION 2.01. Tranche A Term Commitment. Subject to the terms and conditions hereof, each Tranche A Term Lender severally agrees to make a term
loan (a “Tranche A Term Loan”) to the US Borrower on the Effective Date in an amount not to exceed the amount of the Tranche A Term Commitment of such Lender. The Tranche A Term Loans may from time to time be Eurodollar Loans or ABR
Loans, as determined by the US Borrower and notified to the Administrative Agent in accordance with Section 2.02 and Section 4.02(b). 
  
 SECTION 2.02. Procedure for Tranche A Term Loan Borrowing. The US Borrower shall give the Administrative Agent irrevocable notice (which notice
must be received by the Administrative Agent prior to 11:00 A.M., New York City time, (a) three Business Days prior to the anticipated Effective Date in the case of a Eurodollar Borrowing or (b) on the anticipated Effective Date in the case of an
ABR Borrowing) requesting that the Tranche A Term Lenders make the Tranche A Term Loans on the Effective Date. Upon receipt of such notice the Administrative Agent shall promptly notify each Tranche A Term Lender thereof. 
  
 SECTION 2.03. Repayment of Tranche A Term Loans. The Tranche A Term
Loan of each Tranche A Term Lender shall mature in 19 consecutive quarterly installments, commencing on October 31, 2005, and one installment on the Maturity Date, each of which shall be in an amount equal to such Lender’s Tranche A Term
Percentage multiplied by the percentage of the aggregate amount of the Tranche A Term Loans made on the Effective Date set forth below opposite such installment: 
  

				
	 Installment

	  	Percentage

	 
	 October 31, 2005
	  	0.25	%
	 January 31, 2006
	  	0.25	%
	 April 30, 2006
	  	0.25	%
	 July 31, 2006
	  	0.25	%
	 October 31, 2006
	  	0.25	%
	 January 31, 2007
	  	0.25	%
	 April 30, 2007
	  	0.25	%
	 July 31, 2007
	  	0.25	%
	 October 31, 2007
	  	0.25	%
	 January 31, 2008
	  	0.25	%
	 April 30, 2008
	  	0.25	%
	 July 31, 2008
	  	0.25	%
	 October 31, 2008
	  	0.25	%
	 January 31, 2009
	  	0.25	%
	 April 30, 2009
	  	0.25	%
	 July 31, 2009
	  	0.25	%
	 October 31, 2009
	  	0.25	%
	 January 31, 2010
	  	0.25	%
	 April 30, 2010
	  	0.25	%
	 Maturity Date
	  	95.25	%

  

 29 

 SECTION 2.04. US Revolving Commitments. Subject to the terms and conditions set forth herein, each
US Lender agrees to make US Revolving Loans to the US Borrower from time to time during the Availability Period so long as after giving effect thereto (a) the Available US Revolving Commitment of each US Lender is greater than or equal to zero and
(b) the sum of the aggregate Revolving Credit Exposures of all the Lenders plus the aggregate principal amount of outstanding Competitive Loans does not exceed the aggregate US Revolving Commitments. Within the foregoing limits and subject to the
terms and conditions set forth herein, the US Borrower may borrow, prepay and reborrow US Revolving Loans. 
  
 SECTION 2.05. US Revolving Loans and Borrowings. (a) Each US Revolving Loan shall be made as part of a US Borrowing consisting of US Revolving
Loans made by the US Lenders ratably in accordance with their US Funding Revolving Commitment Percentages. Each Competitive Loan shall be made in accordance with the procedures set forth in Section 2.08. The failure of any US Lender to make any US
Revolving Loan required to be made by it shall not relieve any other US Lender of its obligations hereunder; provided that the US Revolving Commitments and Competitive Bids of the US Lenders are several and no US Lender shall be responsible
for any other US Lender’s failure to make US Revolving Loans as required. 
  
 (b) Subject to Section 4.09, (i) each US Revolving Borrowing shall be comprised entirely of ABR Loans or Eurodollar Loans as the US Borrower may request in accordance herewith, and (ii) each Competitive Borrowing
shall be comprised entirely of Eurodollar Loans or Fixed Rate Loans as the US Borrower may request in accordance herewith. Unless otherwise agreed between the US Borrower and the Swingline Lender as provided in Section 2.09(a), each Swingline Loan
shall be an ABR Loan. Each US Lender at its option may make any US Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the
obligation of the US Borrower to repay such Loan in accordance with the terms of this Agreement. 
  
 (c) At the commencement of each Interest Period for any US Eurodollar Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $5,000,000. At the time that each US ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $5,000,000;
provided that a US ABR Revolving Borrowing may be in an aggregate amount that is equal to (i) the entire unused balance of the total US Revolving Commitments or (ii) that is required to finance the reimbursement of an LC Disbursement as
contemplated by Section 2.10(e) or (iii) that is required to repay any US Revolving Loans as contemplated by Section 2.07(a). Each Competitive Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than
$5,000,000. Each Swingline Loan shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000. US Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at
any time be more than a total of ten US Eurodollar Revolving Borrowings outstanding. 
  

 30 

 Notwithstanding any other provision of this Agreement, the US Borrower shall not be entitled to request,
or to elect to convert or continue, any US Borrowing if the Interest Period requested with respect thereto would end after the Maturity Date. 
  
 SECTION 2.06. Procedure for US Revolving Borrowings. To request a US Revolving Borrowing, the US Borrower shall notify the Administrative Agent of
such request by telephone (a) in the case of a US Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing or (b) in the case of a US ABR Borrowing, not later than 11:00 a.m.,
New York City time, on the date of the proposed Borrowing; provided that any such notice of a US ABR Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section 2.10(e) may be given not later than 10:00
a.m., New York City time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable (except in the circumstance where increased costs will result or where it is illegal to make a US Eurodollar Borrowing) and
shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the US Borrower. Each such telephonic and written Borrowing Request
shall specify the following information in compliance with Section 2.05: 
  
 (i) the aggregate amount of the requested Borrowing; 
  
 (ii) the date of such Borrowing, which shall be a Business Day; 
  
 (iii) whether such Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; 
  
 (iv) in the case of a Eurodollar Borrowing, the initial
Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (v) the location and number of the US Borrower’s account to which funds are to be disbursed, which shall comply with the requirements
of Section 4.01. 
  
 If no election as to the Type of US Revolving Borrowing is
specified, then the requested US Revolving Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Revolving Borrowing, then the US Borrower shall be deemed to have selected an Interest Period
of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each US Lender of the details thereof and of the amount of such Lender’s Loan to be made as
part of the requested US Borrowing. 
  
 SECTION 2.07. Certain
Borrowings of US Revolving Loans and Refunding of Loans. (a) If on any date (a “Borrowing Date”) on which a Mexican Borrower has requested the Mexican Lenders to make Mexican Revolving Loans (the “Requested Mexican
Loans”), (i) any Mexican Lender’s Mexican Commitment Percentage of the Requested Mexican Loans exceeds the Available Mexican Commitment of such Mexican Lender on such date (before giving effect to the making, and application of
proceeds, of any Loans required to be made pursuant to this Section 2.07 on such date) and (ii) the amount of such excess is less than or equal to the 
  

 31 

 aggregate Available US Revolving Commitments of all Non-Mexican Lenders (before giving effect to the making, and
application of proceeds, of any Loans pursuant to this Section 2.07 on such date), each Non-Mexican Lender shall make a US Revolving Loan to the US Borrower on such date, and the proceeds of such US Revolving Loans shall be simultaneously applied to
repay outstanding US Revolving Loans of the Mexican Lenders, in amounts such that, after giving effect to (A) such borrowings and repayments and (B) the making of the Requested Mexican Loans, the Revolving Credit Exposure Percentage of each US
Lender will equal (as nearly as possible) its US Revolving Commitment Percentage. To effect such borrowings and repayments, (1) not later than 12:00 Noon, New York City time, on such requested Borrowing Date, the proceeds of such US Revolving Loans
shall be made available by each Non-Mexican Lender to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders, in immediately available funds, and the Administrative Agent shall apply the
proceeds of such US Revolving Loans toward repayment of outstanding US Revolving Loans of the Mexican Lenders and (2) concurrently with the repayment of such Loans on such date, (x) the Mexican Lenders shall, in accordance with the applicable
provisions hereof, make the Requested Mexican Loans in an aggregate amount equal to the amount so requested by the relevant Mexican Borrower (but not in any event greater than the aggregate Available Mexican Commitments after giving effect to the
making of such repayment of US Revolving Loans on such date) and (y) the US Borrower shall pay to the Administrative Agent for the account of the Lenders whose US Revolving Loans are repaid on such date pursuant to this Section 2.07 all interest
accrued on the amounts repaid to the date of repayment, together with any amounts payable pursuant to Section 4.11 in connection with such repayment. 
  
 (b) If any borrowing of US Revolving Loans is required pursuant to this Section 2.07, the US Borrower shall notify the Administrative Agent in the manner
provided for US Revolving Loans in Section 2.06, except that the minimum borrowing amounts and threshold multiples in excess thereof applicable to ABR Loans set forth in Section 2.05(c) shall not be applicable to the extent that such minimum
borrowing amounts exceed the amounts of US Revolving Loans required to be made pursuant to this Section 2.07. 
  
 SECTION 2.08. Competitive Bid Procedure. (a) Subject to the terms and conditions set forth herein, from time to time during the Availability Period
the US Borrower may request Competitive Bids and may (but shall not have any obligation to) accept Competitive Bids and borrow Competitive Loans; provided that the sum of the aggregate Revolving Credit Exposures of all the Lenders plus the
aggregate principal amount of outstanding Competitive Loans at any time shall not exceed the aggregate US Revolving Commitments. To request Competitive Bids, the US Borrower shall notify the Administrative Agent of such request by telephone, in the
case of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, four Business Days before the date of the proposed Borrowing and, in the case of a Fixed Rate Borrowing, not later than 11:00 a.m., New York City time, one Business Day
before the date of the proposed Borrowing; provided that the US Borrower may submit up to (but not more than) five Competitive Bid Requests on the same day, but a Competitive Bid Request shall not be made within five Business Days after the
date of any previous Competitive Bid Request, unless any and all such previous Competitive Bid Requests shall have been withdrawn or all Competitive Bids received in response thereto rejected. Each such telephonic Competitive Bid Request shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Competitive Bid Request in a form approved by the Administrative Agent and 
  

 32 

 signed by the US Borrower. Each such telephonic and written Competitive Bid Request shall specify the following
information in compliance with Section 2.05: 
  
 (i) the aggregate amount of the requested Borrowing; 
  
 (ii) the date of such Borrowing, which shall be a Business Day; 
  
 (iii) whether such Borrowing is to be a Eurodollar Borrowing or a Fixed Rate Borrowing; 
  
 (iv) the Interest Period to be applicable to such Borrowing,
which shall be a period contemplated by the definition of the term “Interest Period”; 
  
 (v) the maturity date of such Borrowing, which shall be no later than the Maturity Date; and 
  
 (vi) the location and number of the US Borrower’s
account to which funds are to be disbursed, which shall comply with the requirements of Section 4.01. 
  
 Promptly following receipt of a Competitive Bid Request in accordance with this Section, the Administrative Agent shall notify the Lenders of the details thereof by telecopy, inviting the Lenders to submit Competitive
Bids. 
  
 (b) Each Lender may (but shall not have any obligation
to) make one or more Competitive Bids to the US Borrower in response to a Competitive Bid Request. Each Competitive Bid by a Lender must be in a form approved by the Administrative Agent and must be received by the Administrative Agent by telecopy,
in the case of a Eurodollar Competitive Borrowing, not later than 9:30 a.m., New York City time, three Business Days before the proposed date of such Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not later than 9:30 a.m., New
York City time, on the proposed date of such Competitive Borrowing. Competitive Bids that do not conform substantially to the form approved by the Administrative Agent may be rejected by the Administrative Agent, and the Administrative Agent shall
notify the applicable Lender as promptly as practicable. Each Competitive Bid shall specify (i) the principal amount (which shall be a minimum of $5,000,000 and an integral multiple of $1,000,000 and which may equal the entire principal amount of
the Competitive Borrowing requested by the US Borrower) of the Competitive Loan or Loans that the Lender is willing to make, (ii) the Competitive Bid Rate or Rates at which the Lender is prepared to make such Loan or Loans (expressed as a percentage
rate per annum in the form of a decimal to no more than four decimal places) and (iii) the Interest Period applicable to each such Loan and the last day thereof. 
  
 (c) The Administrative Agent shall promptly notify the US Borrower by telecopy of the Competitive Bid Rate and the principal
amount specified in each Competitive Bid and the identity of the Lender that shall have made such Competitive Bid. 
  
 (d) Subject only to the provisions of this paragraph, the US Borrower may accept or reject any Competitive Bid. The US Borrower shall notify the
Administrative Agent by telephone, confirmed by telecopy in a form approved by the Administrative Agent, whether 
  

 33 

 and to what extent it has decided to accept or reject each Competitive Bid, in the case of a Eurodollar Competitive
Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Competitive Borrowing, and in the case of a Fixed Rate Borrowing, not later than 11:00 a.m., New York City time, on the proposed date of
the Competitive Borrowing; provided that (i) the failure of the US Borrower to give such notice shall be deemed to be a rejection of each Competitive Bid, (ii) the US Borrower shall not accept a Competitive Bid made at a particular
Competitive Bid Rate if the US Borrower rejects a Competitive Bid made at a lower Competitive Bid Rate, (iii) the aggregate amount of the Competitive Bids accepted by the US Borrower shall not exceed the aggregate amount of the requested Competitive
Borrowing specified in the related Competitive Bid Request, (iv) to the extent necessary to comply with clause (iii) above, the US Borrower may accept Competitive Bids at the same Competitive Bid Rate in part, which acceptance, in the case of
multiple Competitive Bids at such Competitive Bid Rate, shall be made pro rata in accordance with the amount of each such Competitive Bid, and (v) except pursuant to clause (iv) above, no Competitive Bid shall be accepted for a Competitive Loan
unless such Competitive Loan is in a minimum principal amount of $5,000,000 and an integral multiple of $1,000,000; provided further that if a Competitive Loan must be in an amount less than $5,000,000 because of the provisions of
clause (iv) above, such Competitive Loan may be for a minimum of $1,000,000 or any integral multiple thereof, and in calculating the pro rata allocation of acceptances of portions of multiple Competitive Bids at a particular Competitive Bid Rate
pursuant to clause (iv) the amounts shall be rounded to integral multiples of $1,000,000 in a manner determined by the US Borrower. A notice given by the US Borrower pursuant to this paragraph shall be irrevocable. 
  
 (e) The Administrative Agent shall promptly notify each bidding Lender by
telecopy whether or not its Competitive Bid has been accepted (and, if so, the amount and Competitive Bid Rate so accepted), and each successful bidder will thereupon become bound, subject to the terms and conditions hereof, to make the Competitive
Loan in respect of which its Competitive Bid has been accepted. 
  
 (f) If the Administrative Agent shall elect to submit a Competitive Bid in its capacity as a Lender, it shall submit such Competitive Bid directly to the US Borrower at least one quarter of an hour earlier than the time by which the other
Lenders are required to submit their Competitive Bids to the Administrative Agent pursuant to paragraph (b) of this Section. 
  
 SECTION 2.09. Swingline Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the
US Borrower from time to time during the Availability Period, in an aggregate principal amount at any time outstanding not to exceed $50,000,000, so long as after giving effect thereto (i) the Available US Revolving Commitment of each US Lender is
greater than or equal to zero and (ii) the sum of the aggregate Revolving Credit Exposures of all the Lenders plus the aggregate principal amount of outstanding Competitive Loans does not exceed the aggregate US Revolving Commitments;
provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and conditions set forth herein, the US Borrower may borrow,
prepay and reborrow Swingline Loans. 
  
 (b) To request a
Swingline Loan, the US Borrower shall notify the Administrative Agent and the Swingline Lender of such request by telephone (confirmed by 
  

 34 

 telecopy), not later than 1:00 p.m., New York City time, on the day of a proposed Swingline Loan. Each such notice shall
be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline Loan. Each Swingline Loan shall be an ABR Loan; provided, that the US Borrower and the Swingline Lender may agree that
the Swingline Loan shall bear interest at a fixed rate for a fixed interest period (any such Swingline Loan, a “Swingline Fixed Rate Loan”; and any such fixed interest period, a “Swingline Interest Period”). The
Swingline Lender shall make each Swingline Loan available to the US Borrower by means of a credit to the general deposit account of the US Borrower with the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of
an LC Disbursement as provided in Section 2.09(e), by remittance to the Issuing Bank) by 3:00 p.m., New York City time, on the requested date of such Swingline Loan. 
  
 (c) The Swingline Lender may, by written notice given to the Administrative Agent not later than 10:00 a.m., New York City
time on any Business Day, require the Lenders to acquire participations on such Business Day in all or a portion of the Swingline Loans outstanding; provided, that unless a Default has occurred and is continuing, the Swingline Lender shall
not make such a request in respect of any Swingline Fixed Rate Loan until the end of the Swingline Interest Period applicable thereto. Such notice shall specify the aggregate amount of Swingline Loans in which Lenders will participate. Promptly upon
receipt of such notice, the Administrative Agent will give notice thereof to each Lender, specifying in such notice such Lender’s US Funding Revolving Commitment Percentage of such Swingline Loan or Loans. Each Lender hereby absolutely and
unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender, such Lender’s US Funding Revolving Commitment Percentage of such Swingline Loan or Loans. Each Lender
acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a
Default or reduction or termination of the US Revolving Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. Each Lender shall comply with its obligation under this paragraph by
wire transfer of immediately available funds, in the same manner as provided in Section 4.01 with respect to Loans made by such Lender (and Section 4.01 shall apply, mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Lenders. The Administrative Agent shall notify the US Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph,
and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any amounts received by the Swingline Lender from the US Borrower (or other party on behalf of the US Borrower) in
respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly
remitted by the Administrative Agent to the Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests may appear. The purchase of participations in a Swingline Loan pursuant to this
paragraph shall not relieve the US Borrower of any default in the payment thereof. 
  
 SECTION 2.10. Letters of Credit. (a) General. Subject to the terms and conditions set forth herein, the US Borrower may request the issuance of Letters of Credit for its 
  

 35 

 own account, in a form reasonably acceptable to the Administrative Agent and the Issuing Bank, at any time and from time
to time during the Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the US Borrower to,
or entered into by the US Borrower with, the Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. 
  
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal
or extension of an outstanding Letter of Credit), the US Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing Bank and the
Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended, the date
of issuance, amendment, renewal or extension, the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of the beneficiary thereof and such
other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the Issuing Bank, the US Borrower also shall submit a letter of credit application on the Issuing Bank’s standard form in
connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the US Borrower shall be deemed to represent
and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $75,000,000, (ii) the Available US Revolving Commitment of each US Lender is greater than or equal to zero and (iii) the
sum of the aggregate Revolving Credit Exposures of all the Lenders plus the aggregate principal amount of outstanding Competitive Loans shall not exceed the aggregate US Revolving Commitments. 
  
 (c) Expiration Date. Each Letter of Credit shall expire at or prior to
the close of business on the earlier of (i) the date that is one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof, one year after such renewal or extension) and (ii) the date that is
five Business Days prior to the Maturity Date. 
  
 (d)
Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit increasing the amount thereof) and without any further action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each
US Lender, and each US Lender hereby acquires from the Issuing Bank, a participation in such Letter of Credit equal to such US Lender’s US Funding Revolving Commitment Percentage of the aggregate amount available to be drawn under such Letter
of Credit. In consideration and in furtherance of the foregoing, each US Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the account of the Issuing Bank, such Lender’s US Funding Revolving Commitment
Percentage of each LC Disbursement made in respect of a Letter of Credit by the Issuing Bank and not reimbursed by the US Borrower on the date due as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded
to the US Borrower for any reason. Each US Lender acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any 
  

 36 

 amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or reduction or
termination of the US Revolving Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever. 
  
 (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the US Borrower shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 12:00 noon, New York City time, on the date that such LC Disbursement is made, if the US Borrower shall have received notice of such LC
Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by the US Borrower prior to such time on such date, then not later than 12:00 noon, New York City time, on (i) the Business Day that the US
Borrower receives such notice, if such notice is received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day immediately following the day that the US Borrower receives such notice, if such notice is not
received prior to such time on the day of receipt; provided that the US Borrower may, subject to the conditions to borrowing set forth herein, request in accordance with Section 2.06 or Section 2.09 that such payment be financed with a US ABR
Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, the US Borrower’s obligation to make such payment shall be discharged and replaced by the resulting US ABR Revolving Borrowing or Swingline Loan. If
the US Borrower fails to make such payment when due, the Administrative Agent shall notify each US Lender of the applicable LC Disbursement, the payment then due from the US Borrower in respect thereof and such US Lender’s US Funding Revolving
Commitment Percentage thereof. Promptly following receipt of such notice, each US Lender shall pay to the Administrative Agent its US Funding Revolving Commitment Percentage of the payment then due from the US Borrower, in the same manner as
provided in Section 4.01 with respect to Loans made by such Lender (and Section 4.01 shall apply, mutatis mutandis, to the payment obligations of the US Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the
amounts so received by it from the US Lenders. Promptly following receipt by the Administrative Agent of any payment from the US Borrower pursuant to this paragraph, the Administrative Agent shall distribute such payment to the Issuing Bank or, to
the extent that US Lenders have made payments pursuant to this paragraph to reimburse the Issuing Bank, then to such US Lenders and the Issuing Bank as their interests may appear. Any payment made by a US Lender pursuant to this paragraph to
reimburse the Issuing Bank for any LC Disbursement (other than the funding of US ABR Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall not relieve the US Borrower of its obligation to reimburse such LC
Disbursement. 
  
 (f) Obligations Absolute. The US
Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all
circumstances whatsoever and irrespective of: 
  
 (i) any lack of validity or enforceability of any Letter of Credit or this Agreement, or any term or provision therein; 
  
 (ii) any amendment or waiver of or any consent to or departure from all or any of the provisions of any Letter of Credit or this
Agreement; 
  

 37 

 (iii) the existence of any claim, setoff, defense or other right that the US Borrower,
any other party guaranteeing, or otherwise obligated with, the US Borrower, any Subsidiary or other Affiliate thereof or any other Person may at any time have against the beneficiary under any Letter of Credit, the Issuing Bank, the Administrative
Agent or any Lender or any other Person, whether in connection with this Agreement or any other related or unrelated agreement or transaction; 
  
 (iv) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any
statement therein being untrue or inaccurate in any respect; 
  
 (v) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply with the terms of such Letter of Credit, so long as such draft or other document appears
on its face to comply with the terms of such Letter of Credit; and 
  
 (vi) any other act or omission to act or delay of any kind of the Issuing Bank, the Lenders or the Administrative Agent or any other event or circumstance whatsoever, whether or not similar to any of the foregoing,
that might, but for the provisions of this Section, constitute a legal or equitable discharge of the US Borrower’s obligations hereunder, so long as such act or omission to act or delay has not resulted from the gross negligence or willful
misconduct of the Issuing Bank, the Lenders or the Administrative Agent. 
  
 Neither the Administrative Agent, the US Lenders nor the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any
payment or failure to make any payment thereunder, including any of the circumstances specified in clauses (i) through (vi) above, as well as any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other
communication under or relating to any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank;
provided that the foregoing shall not be construed to excuse the Issuing Bank from liability to the US Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the US
Borrower to the extent permitted by applicable law) suffered by the US Borrower that are caused by the Issuing Bank’s failure to exercise the agreed standard of care (as set forth below) in determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof. The parties hereto expressly agree that the Issuing Bank shall have exercised the agreed standard of care in the absence of gross negligence or willful misconduct on the part of the
Issuing Bank. Without limiting the generality of the foregoing, it is understood that the Issuing Bank may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit, without responsibility for
further investigation, regardless of any notice or information to the contrary, and may make payment upon presentation of documents that appear on their face to be in substantial compliance with the terms of such Letter of Credit; provided
that the Issuing Bank shall have the right, in its sole discretion, to decline to accept such documents and to make such payment if such documents are not in strict compliance with the terms of such Letter of Credit. 
  

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 (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt thereof,
examine all documents purporting to represent a demand for payment under a Letter of Credit. The Issuing Bank shall promptly notify the Administrative Agent and the US Borrower by telephone (confirmed by telecopy) of such demand for payment and
whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the US Borrower of its obligation to reimburse the Issuing Bank and the Lenders
with respect to any such LC Disbursement. 
  
 (h) Interim
Interest. If the Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, then, unless the US Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall
bear interest, for each day from and including the date such LC Disbursement is made to but excluding the date that the US Borrower reimburses such LC Disbursement, at the rate per annum then applicable to US ABR Revolving Loans; provided
that, if the US Borrower fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 4.08(e) shall apply. Interest accrued pursuant to this paragraph shall be for the account of the Issuing Bank, except
that interest accrued on and after the date of payment by any US Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank shall be for the account of such Lender to the extent of such payment. 
  
 (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced
at any time by written agreement among the US Borrower, the Administrative Agent and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of the Issuing Bank. At the time any such replacement shall
become effective, the US Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 4.07(b). From and after the effective date of any such replacement, (i) the successor Issuing Bank shall have all
the rights and obligations of the Issuing Bank under this Agreement and any other Loan Document with respect to Letters of Credit to be issued thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to refer to
such successor or to any previous Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and shall
continue to have all the rights and obligations of an Issuing Bank under this Agreement and any other Loan Document with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of
Credit. 
  
 (j) Cash Collateralization. If any Event of
Default shall occur and be continuing, on the Business Day that the US Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, US Lenders with LC Exposure representing
greater than 50% of the total LC Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the US Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of
the US Lenders, an amount in cash equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall
become immediately due and payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to any Borrower described in clause (i) or (j) of Article IX. Such deposit shall be held by 
  

 39 

 the Administrative Agent as collateral for the payment and performance of the obligations of the US Borrower under this
Agreement and any other Loan Document. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account, and the US Borrower hereby grants to the Administrative Agent, for the ratable
benefit of the Lenders, a security interest in such cash collateral account and all cash and other investment property from time to time credited thereto, and all proceeds thereof. Other than any interest earned on the investment of such deposit,
which investments shall be made at the option and sole discretion of the Administrative Agent and at the US Borrower’s risk and expense, such deposit shall not bear interest. Interest or profits, if any, on such investments shall accumulate in
such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements in respect of Letters of Credit for which it has not been reimbursed and, to the extent not so applied, shall be
held for the satisfaction of the reimbursement obligations of the US Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but subject to the consent of US Lenders with LC Exposure representing greater than
50% of the total LC Exposure), be applied to satisfy other obligations of the US Borrower under this Agreement and any other Loan Document. If the US Borrower is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the US Borrower within two Business Days after all Events of Default have been cured or waived. 
  
 ARTICLE III  
  
 THE MEXICAN CREDIT FACILITY 
  
 SECTION 3.01. Commitments. Subject to the terms and conditions set
forth herein, each Mexican Lender agrees to make Mexican Revolving Loans to the Mexican Borrowers from time to time during the Availability Period so long as after giving effect thereto (a) the aggregate principal amount of outstanding Mexican
Revolving Loans does not exceed $100,000,000, (b) the Available Mexican Commitment of each Mexican Lender is greater than or equal to zero and (c) the sum of the aggregate Revolving Credit Exposures of all the Lenders plus the aggregate principal
amount of outstanding Competitive Loans does not exceed the aggregate US Revolving Commitments. Within the foregoing limits and subject to the terms and conditions set forth herein, the Mexican Borrowers may borrow, prepay and reborrow Mexican
Revolving Loans. 
  
 SECTION 3.02. Loans and Borrowings.
(a) Each Mexican Revolving Loan shall be made as part of a Mexican Borrowing consisting of Mexican Revolving Loans made by the Mexican Lenders ratably in accordance with their respective Mexican Commitments. The failure of any Mexican Lender to make
any Mexican Revolving Loan required to be made by it shall not relieve any other Mexican Lender of its obligations hereunder; provided that the Mexican Commitments of the Mexican Lenders are several and no Mexican Lender shall be responsible
for any other Mexican Lender’s failure to make Mexican Revolving Loans as required. 
  

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 (b) Subject to Section 4.09, each Mexican Revolving Borrowing shall be comprised entirely of Eurodollar
Loans. Each Mexican Lender at its option may make any Mexican Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any exercise of such option shall not affect the obligation
of the relevant Mexican Borrower to repay such Loan in accordance with the terms of this Agreement. 
  
 (c) At the commencement of each Interest Period for any Mexican Eurodollar Revolving Borrowing, such Borrowing shall be in an aggregate amount that is an
integral multiple of $1,000,000 and not less than $5,000,000. There shall not at any time be more than a total of ten Mexican Eurodollar Revolving Borrowings outstanding. 
  
 (d) Notwithstanding any other provision of this Agreement, the Mexican Borrowers shall not be entitled to request, or to
elect to continue, any Mexican Borrowing having an Interest Period ending after the Maturity Date. 
  
 SECTION 3.03. Requests for Mexican Revolving Borrowings. To request a Mexican Revolving Borrowing, the relevant Mexican Borrower shall notify the
Administrative Agent of such request by telephone, not later than 11:00 a.m., New York City time, three Business Days before the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable (except in the circumstance
where increased costs will result or where it is illegal to make a Mexican Revolving Borrowing) and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the relevant Mexican Borrower. Each such telephonic and written Borrowing Request shall specify the following information in compliance with Section 3.02: 
  
 (i) the aggregate amount of the requested Borrowing;

  
 (ii) the date of such Borrowing, which shall
be a Business Day; 
  
 (iii) the initial Interest
Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (iv) the location and number of the relevant Mexican Borrower’s account to which funds are to be disbursed, which shall comply with
the requirements of Section 4.01. 
  
 If no Interest Period is specified, then the
relevant Mexican Borrower shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Mexican Lender
of the details thereof and of the amount of such Mexican Lender’s Loan to be made as part of the requested Borrowing. 
  

 41 

 ARTICLE IV 
  
 TERMS APPLICABLE TO US CREDIT FACILITIES AND MEXICAN CREDIT FACILITY 
  
 SECTION 4.01. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed
date thereof by wire transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall
be made as provided in Section 2.09. The Administrative Agent will make such Loans available to the relevant Borrower by promptly crediting the amounts so received, in like funds, to an account of such Borrower maintained with the Administrative
Agent in New York City and designated by such Borrower in the applicable Borrowing Request or Competitive Bid Request; provided that ABR Revolving Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.10(e)
shall be remitted by the Administrative Agent to the Issuing Bank. 
  
 (b) Unless the Administrative Agent shall have received notice from a Lender prior to the proposed time of any Borrowing or other funding that such Lender will not make available to the Administrative Agent such Lender’s share of such
Borrowing or such other funding, the Administrative Agent may assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the
relevant Borrower a corresponding amount. In such event, if a Lender has not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and such Borrower severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount with interest thereon, for each day from and including the date such amount is made available to such Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of such Lender, the Federal Funds Effective Rate or (ii) in the case of such Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the Administrative Agent, then such amount shall constitute such
Lender’s Loan included in such Borrowing. 
  
 SECTION 4.02.
Interest Elections. (a) Each US Borrowing initially shall be of the Type specified in the applicable Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request.
Thereafter, the US Borrower may elect to convert any of its Borrowings to a different Type or to continue any of such Borrowings and, in the case of a Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. Except
as provided in Section 4.09, all Mexican Revolving Loans shall be Eurodollar Loans, and the relevant Mexican Borrower may elect Interest Periods in respect thereof as provided in this Section. Each Borrower may elect different options with respect
to different portions of its respective affected Borrowings, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a
separate Borrowing. This Section shall not apply to Competitive Borrowings or Swingline Borrowings, which may not be converted or continued. 
  

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 (b) To make an election pursuant to this Section, the relevant Borrower shall notify the Administrative
Agent of such election by telephone by the time that a Borrowing Request would be required under Section 2.02 or Section 2.06 if the US Borrower, or Section 3.03 if a Mexican Borrower, as the case may be, were requesting a Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election Request shall be irrevocable (except in the circumstance where increased costs will result or where it is illegal to make the
proposed conversion or continuance) and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the relevant Borrower.

  
 (c) Each telephonic and written Interest Election Request
shall specify the following information in compliance with Section 2.02, Section 2.06 and Section 3.03: 
  
 (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing); 
  
 (ii) the effective date of the election made pursuant to
such Interest Election Request, which shall be a Business Day; 
  
 (iii) in the case of US Borrowings, whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar Borrowing; and 
  
 (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such
election, which shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an Interest Period, then the relevant Borrower shall be deemed to have selected an Interest Period of one month’s
duration. 
  
 (d) Promptly following receipt of an Interest
Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing. 
  
 (e) If the US Borrower fails to deliver a timely Interest Election Request with respect to a US Eurodollar Borrowing prior to the end of the Interest
Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be converted to an ABR Borrowing. If any Mexican Borrower fails to deliver a timely Interest Election
Request with respect to a Mexican Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest Period such Borrowing shall be
continued as a Eurodollar Revolving Borrowing with an Interest Period of one month’s duration. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing and the Administrative Agent, at the request of
the Required Lenders, so notifies the 
  

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 Borrowers, then, so long as an Event of Default is continuing (i) no outstanding US Borrowing may be converted to or
continued as a Eurodollar Borrowing and (ii) unless repaid, each US Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. 
  
 SECTION 4.03. Termination and Reduction of Revolving Commitments. (a) Unless previously terminated, the Revolving
Commitments shall terminate on the Maturity Date. 
  
 (b) (i) The
US Borrower may at any time terminate, or from time to time reduce, the US Revolving Commitments; provided that (i) each reduction of the US Revolving Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less
than $5,000,000 and (ii) the US Borrower shall not terminate or reduce the US Revolving Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 4.05, the Available US Revolving Commitment or Available
Mexican Commitment of any Lender would be less than zero. 
  
 (ii)
The US Borrower may at any time terminate, or from time to time reduce, the Mexican Commitments; provided that (i) each reduction of the Mexican Commitments shall be in an amount that is an integral multiple of $1,000,000 and not less than
$5,000,000 and (ii) the US Borrower shall not terminate or reduce the Mexican Commitments if, after giving effect to any concurrent prepayment of the Loans in accordance with Section 4.05, the Available Mexican Commitment of any Mexican Lender would
be less than zero. 
  
 (c) The US Borrower shall notify the
Administrative Agent of any election to terminate or reduce the US Revolving Commitments or the Mexican Commitments, as the case may be, under paragraph (b) of this Section at least three Business Days prior to the effective date of such termination
or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by the US Borrower pursuant to this
Section shall be irrevocable; provided that a notice of termination of the Revolving Commitments delivered by the US Borrower may state that such notice is conditioned upon the effectiveness of other credit facilities, in which case such
notice may be revoked by the US Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. Any termination or reduction of the US Revolving Commitments or the Mexican Commitments,
as the case may be, shall be permanent. 
  
 SECTION 4.04.
Repayment of Loans; Evidence of Debt. (a) The US Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each US Lender, the Tranche A Term Loans in accordance with Section 2.03, (ii) to the
Administrative Agent for the account of each US Lender, the then unpaid principal amount of each US Revolving Loan on the Maturity Date, (iii) to the Administrative Agent for the account of each US Lender, the then unpaid principal amount of each
Competitive Loan on the last day of the Interest Period applicable to such Loan, (iv) to the Swingline Lender, the then unpaid principal amount of each Swingline Loan (other than any Swingline Fixed Rate Loan) on the Maturity Date and (v) to the
Swingline Lender, the then unpaid principal amount of each Swingline Fixed Rate Loan on the last day of the Swingline Interest Period applicable thereto. Each Mexican Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of each Mexican Lender the then unpaid principal amount of each of its respective Mexican Revolving Loans on the Maturity Date. 
  

 44 

 (b) Each Lender shall maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of each Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from time to time hereunder. 
  
 (c) The Administrative Agent shall maintain accounts in which it shall record
(i) the amount of each Loan made hereunder, the Borrower, Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and payable from each Borrower to each Lender
hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to paragraph (b) or (c) of this Section shall be prima facie evidence of the
existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Borrowers to
repay the Loans in accordance with the terms of this Agreement. 
  
 (e) Any Lender may request that Loans made by it be evidenced by a promissory note (a “Note”). In such event, the relevant Borrower shall prepare, execute and deliver to such Lender a Note payable to the order of such
Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by such Note and interest thereon shall at all times (including after assignment
pursuant to Section 12.04) be represented by one or more Notes in such form payable to the order of the payee named therein (or, if such Note is a registered Note, to such payee and its registered assigns). 
  
 SECTION 4.05. Optional Prepayments of Loans. (a) Each Borrower shall
have the right at any time and from time to time to prepay any Borrowing in whole or in part, subject to prior notice in accordance with paragraph (b) of this Section; provided that the US Borrower shall not have the right to prepay any
Competitive Loan without the prior consent of the Lender thereof. Optional prepayments of the Tranche A Term Loans may not be reborrowed. 
  
 (b) The US Borrower or a Mexican Borrower, as the case may be, shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan,
the Swingline Lender) by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a Eurodollar Borrowing, not later than 11:00 a.m., New York City time, three Business Days before the date of prepayment, (ii) in
the case of prepayment of an ABR Borrowing, not later than 11:00 a.m., New York City time, one Business Day before the date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 12:00 noon, New York City time, on the
date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date and the principal amount of each Borrowing or portion thereof to be prepaid; provided that, if a notice of prepayment is given in connection with
a conditional notice of termination of the US Revolving Commitments or Mexican Commitments as contemplated by 
  

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 Section 4.03, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with
Section 4.03. Promptly following receipt of any such notice relating to a Borrowing, the Administrative Agent shall advise the Lenders of the contents thereof. Partial prepayments of Tranche A Term Loans and Revolving Loans shall be in an amount
that is an integral multiple of $1,000,000 and not less than $5,000,000. Partial prepayments of Swingline Loans shall be in an amount that is an integral multiple of $500,000 and not less than $1,000,000. Prepayments shall be accompanied by accrued
interest to the extent required by Section 4.08 and any amounts payable under Section 4.11 in connection with such prepayment. 
  
 SECTION 4.06. Mandatory Prepayments and Commitment Reductions. (a) If on any date the US Borrower or any of its Subsidiaries shall receive Net Cash
Proceeds from any Asset Sale or Recovery Event then, unless a Reinvestment Notice shall be delivered in respect thereof, such Net Cash Proceeds shall be applied within three Business Days toward the prepayment of the Tranche A Term Loans as set
forth in Section 4.06(b); provided, that, notwithstanding the foregoing, on each Reinvestment Prepayment Date, an amount equal to the Reinvestment Prepayment Amount with respect to the relevant Reinvestment Event shall be applied toward the
prepayment of the Tranche A Term Loans as set forth in Section 4.06(b). 
  
 (b) Amounts to be applied in connection with prepayments made pursuant to Section 4.06 shall be applied to the prepayment of the Tranche A Term Loans in accordance with Section 4.13(a)(iii). The application of any prepayment pursuant to
Section 4.06 shall be made, first, to ABR Loans and, second, to Eurodollar Loans in a manner that minimizes amounts due under Section 4.11. Each prepayment of the Loans under Section 4.06 shall be accompanied by accrued interest to the
date of such prepayment on the amount prepaid. 
  
 SECTION 4.07.
Fees. (a) The US Borrower agrees to pay to the Administrative Agent a facility fee for the account of each US Lender, which shall accrue at the Applicable Rate on the daily amount of the US Revolving Commitment of such Lender (whether used or
unused) during the period from and including the Effective Date to but excluding the date on which such Commitment terminates; provided that, if such Lender continues to have any Revolving Credit Exposure after its US Revolving Commitment
terminates, then such facility fee shall continue to accrue on the daily amount of such Lender’s Revolving Credit Exposure from and including the date on which its US Revolving Commitment terminates to but excluding the date on which such
Lender ceases to have any Revolving Credit Exposure. Accrued facility fees shall be payable in arrears on the last day of March, June, September and December of each year and on the date on which the US Revolving Commitments terminate, commencing on
the first such date to occur after the date hereof; provided that any facility fees accruing after the date on which the US Revolving Commitments terminate shall be payable on demand. All facility fees shall be computed on the basis of a year
of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last day). 
  
 (b) The US Borrower agrees to pay (i) to the Administrative Agent for the account of each Lender, a participation fee with respect to its participations
in Letters of Credit issued for the US Borrower’s account, which shall accrue at a rate per annum equal to the Applicable Rate applicable to interest on Eurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but 
  

 46 

 excluding the later of the date on which such Lender’s Commitment terminates and the date on which such Lender
ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on the average daily amount of the LC Exposure in respect of Letters of Credit issued for the US Borrower’s account
(excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Commitments and the date on which there ceases to be
any LC Exposure, as well as the Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or extension of any such Letter of Credit or processing of drawings thereunder. Participation fees and fronting fees accrued through
and including the last day of March, June, September and December of each year shall be payable on the third Business Day following such last day, commencing on the first such date to occur after the Effective Date; provided that all such
fees shall be payable on the date on which the Commitments terminate and any such fees accruing after the date on which the Commitments terminate shall be payable on demand. Any other fees payable to the Issuing Bank pursuant to this paragraph shall
be payable within 10 Business Days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed (including the first day but excluding the last
day). 
  
 (c) Each Borrower agrees to pay to the Administrative
Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrowers and the Administrative Agent. 
  
 (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds, to the Administrative Agent (or to the Issuing Bank, in the
case of fees payable to it) for distribution, in the case of facility fees and participation fees, to the Lenders. Fees paid shall not be refundable under any circumstances. 
  
 SECTION 4.08. Interest. (a) The Loans comprising each ABR Borrowing (including each Swingline Loan other than a
Swingline Fixed Rate Loan) shall bear interest at a rate per annum equal to the Alternate Base Rate plus the Applicable Rate. 
  
 (b) The Loans comprising each Eurodollar Borrowing shall bear interest at a rate per annum equal to (i) in the case of a Eurodollar Revolving Loan or a
Eurodollar Tranche A Term Loan, the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate, or (ii) in the case of a Eurodollar Competitive Loan, the LIBO Rate for the Interest Period in effect for such
Borrowing plus (or minus, as applicable) the Margin applicable to such Loan. 
  
 (c) Each Fixed Rate Loan shall bear interest at a rate per annum equal to the Fixed Rate applicable to such Loan. 
  
 (d) Each Swingline Fixed Rate Loan shall bear interest during the Swingline Interest Period applicable thereto at the fixed rate agreed upon by the US
Borrower and the Swingline Lender pursuant to Section 2.09(b); provided that, from and after the last day of such Swingline Interest Period (if such Swingline Fixed Rate Loan is not repaid on such date), and from and after the date of any
notice by the Swingline Lender with respect to such Swingline 
  

 47 

 Fixed Rate Loan pursuant to the proviso to the first sentence of Section 2.09(c), such Swingline Fixed Rate Loan shall
constitute an ABR Loan bearing interest in accordance with Section 4.08(a) or Section 4.08(e), as applicable. 
  
 (e) Notwithstanding the foregoing, if any principal of or interest on any Loan or any fee or other amount payable by any Borrower hereunder is not paid
when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate
otherwise applicable to such Loan as provided above or (ii) in the case of any other amount, 2% plus the rate applicable to ABR Loans as provided above. 
  
 (f) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan; provided that (i) interest accrued
pursuant to paragraph (e) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Loan prior to the end of the Availability Period), accrued interest on the
principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment, (iii) in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan
shall be payable on the effective date of such conversion and (iv) all accrued interest shall be payable upon termination of the Revolving Commitments. 
  
 (g) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by reference to the Alternate Base Rate at
times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual number of days elapsed (including the first day but
excluding the last day). The applicable Alternate Base Rate, Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error. 
  
 SECTION 4.09. Alternate Rate of Interest. If prior to the commencement
of any Interest Period for a Eurodollar Borrowing: 
  
 (a) the
Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period; or

  
 (b) the Administrative Agent is advised by the Majority
Facility Lenders in respect of the relevant Facility (or, in the case of a Eurodollar Competitive Loan, the Lender that is required to make such Loan) that the Adjusted LIBO Rate or the LIBO Rate, as applicable, for such Interest Period will not
adequately and fairly reflect the cost to such Lenders (or Lender) of making or maintaining their Loans (or its Loan) included in such Borrowing for such Interest Period; 
  
 then the Administrative Agent shall give notice thereof to the relevant Borrower and the Lenders by telephone or telecopy as promptly as
practicable thereafter and, until the Administrative Agent notifies the Borrowers and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that requests the conversion of any Borrowing to,

  

 48 

 or continuation of any Borrowing as, a Eurodollar Borrowing shall be revoked, (ii) if any Borrowing Request requests a US
Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing, (iii) any request for a Mexican Eurodollar Borrowing shall be revoked and (iv) any request by the US Borrower for a Eurodollar Competitive Borrowing shall be revoked;
provided that (A) if the circumstances giving rise to such notice do not affect all the Lenders, then requests by the US Borrower for Eurodollar Competitive Borrowings may be made to Lenders that are not affected thereby and (B) if the
circumstances giving rise to such notice affect only one Type of Borrowings, then the other Type of Borrowings shall be permitted. 
  
 SECTION 4.10. Increased Costs. (a) If any Change in Law shall: 
  
 (i) subject any Lender to any tax of any kind whatsoever (other than taxes to which the Lender or is subject
to as of the date hereof) with respect to this Agreement or Eurodollar Loans or Fixed Rate Loans made by such Lender or any Letter of Credit or participation therein, or change the basis of taxation of payments to such Lender in respect thereto
(except for Non-Excluded Taxes and changes in the rate of tax on the overall net income of such Lender); 
  
 (ii) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by, any Lender (except any such reserve requirement reflected in the Adjusted LIBO Rate); or 
  
 (iii) impose on any Lender or the London interbank market any other condition; 
  
 and the result of any of the foregoing shall be to increase the cost to such Lender of making
or maintaining any Eurodollar Loan or Fixed Rate Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender of participating in, issuing or maintaining any Letter of Credit or to reduce the amount of any sum
received or receivable by such Lender hereunder (whether of principal, interest or otherwise), then the US Borrower will pay to such Lender such additional amount or amounts as will compensate such Lender for such additional costs incurred or
reduction suffered. 
  
 (b) If any Lender determines that any
Change in Law regarding capital requirements has or would have the effect of reducing the rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans
made by, or participations in Letters of Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or such Lender’s holding company could have achieved but for such Change in Law
(taking into consideration such Lender’s policies and the policies of such Lender’s holding company with respect to capital adequacy), then from time to time the US Borrower will pay to such Lender such additional amount or amounts as will
compensate such Lender or such Lender’s holding company for any such reduction suffered. 
  
 (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such Lender or its holding company, as the case may be, as specified in paragraph 
  

 49 

 (a) or (b) of this Section shall be delivered to the US Borrower and shall be conclusive absent manifest error. The US
Borrower shall pay such Lender the amount shown as due on any such certificate within 10 days after receipt thereof. 
  
 (d) Failure or delay on the part of any Lender to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s right
to demand such compensation; provided that the US Borrower shall not be required to compensate a Lender pursuant to this Section for any increased costs or reductions incurred more than six months prior to the date that such Lender notifies
such Borrower of the Change in Law giving rise to such increased costs or reductions and of such Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof. 
  
 (e) Notwithstanding the foregoing provisions of this Section, a Lender shall not be entitled to compensation pursuant to this Section in respect of any
Competitive Loan if the Change in Law that would otherwise entitle it to such compensation shall have been publicly announced prior to submission of the Competitive Bid pursuant to which such Loan was made. 
  
 SECTION 4.11. Break Funding Payments. In the event of (a) the payment
of any principal of any Eurodollar Loan or Fixed Rate Loan other than on the last day of an Interest Period applicable thereto, or of a Swingline Fixed Rate Loan other than on the last day of the Swingline Interest Period applicable thereto
(including, in each case, as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert, continue or prepay any Revolving Loan
on the date specified in any notice delivered pursuant hereto (regardless of whether such notice is permitted to be revocable under Section 2.06, Section 3.03 or Section 4.02(b) and is revoked in accordance with Section 4.09(b) or is permitted to be
revocable under Section 4.05(b) and is revoked in accordance therewith), (d) the failure to borrow any Competitive Loan after accepting the Competitive Bid to make such Loan, or (e) the assignment of any Eurodollar Loan or Fixed Rate Loan other than
on the last day of the Interest Period applicable thereto as a result of a request by a Borrower pursuant to Section 4.14, then, in any such event, the Borrower in respect of such Loan shall compensate each Lender for the loss, cost and expense
attributable to such event. In the case of a Eurodollar Loan, the loss to any Lender attributable to any such event shall be deemed to include an amount determined by such Lender to be equal to the excess, if any, of (i) the amount of interest that
such Lender would pay for a deposit equal to the principal amount of such Loan for the period from the date of such payment, conversion, failure or assignment to the last day of the then current Interest Period for such Loan (or, in the case of a
failure to borrow, convert or continue, the duration of the Interest Period that would have resulted from such borrowing, conversion or continuation) if the interest rate payable on such deposit were equal to the Adjusted LIBO Rate for such Interest
Period, over (ii) the amount of interest that such Lender would earn on such principal amount for such period if such Lender were to invest such principal amount for such period at the interest rate that would be bid by such Lender (or an affiliate
of such Lender) for dollar deposits from other banks in the eurodollar market at the commencement of such period. A certificate of any Lender setting forth any amount or amounts that such Lender is entitled to receive pursuant to this Section shall
be delivered to the relevant Borrower and shall be conclusive absent manifest error. The relevant Borrower shall pay such Lender the amount shown as due on any such certificate within 10 Business Days after receipt thereof. 
  

 50 

 SECTION 4.12. Taxes. (a) Any and all payments made by each Borrower under this Agreement shall be
made free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected,
withheld or assessed by any Governmental Authority, excluding net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Administrative Agent or any Lender as a result of a present or former connection between the
Administrative Agent or such Lender and the jurisdiction of the Governmental Authority imposing such tax or any political subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Administrative Agent
or such Lender (i) having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan Document or (ii) having a representative office or a subsidiary in Mexico, provided that any
such representative office or subsidiary is not the lending office). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings (“Non-Excluded Taxes”) or Other Taxes are required to be
withheld or deducted from any amounts payable to the Administrative Agent or any Lender hereunder, the amounts so payable to the Administrative Agent or such Lender shall be increased to the extent necessary to yield to the Administrative Agent or
such Lender (after payment of all such Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts specified in this Agreement or any other Loan Document; provided, however,
that no such additional amounts shall be payable in respect of any taxes imposed by reason of the Administrative Agent or any Lender’s failure to comply with Section 4.12(c) or (d), in excess of the additional amounts that would have been
payable had the Administrative Agent or any Lender complied with such Section. Whenever any such Non-Excluded Taxes or Other Taxes are payable by any Borrower, thereafter such Borrower shall send to the Administrative Agent for its own account or
for the account of such Lender, as the case may be, the original official report or return, or a certified copy thereof, received by such Borrower showing payment thereof. If any Borrower fails to pay any such Non-Excluded Taxes or Other Taxes when
due to the appropriate taxing authority or fails to remit to the Administrative Agent the required receipts or other required documentary evidence, such Borrower shall indemnify the Administrative Agent and each Lender for any incremental taxes,
interest or penalties that may become payable by the Administrative Agent or such Lender as a result of any such failure. 
  
 (b) In addition, the US Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable law. 
  
 (c) No Mexican Borrower shall be obligated to pay the Administrative Agent or
any Lender any amounts described in Section 4.12(a) in respect of Non-Excluded Taxes or Other Taxes that would not have been imposed but for the failure of the Administrative Agent or such Lender: (I) to use its reasonable commercial efforts
(consistent with legal and regulatory restrictions) to (i) maintain its registration with the Mexican Ministry of Finance and Public Credit as a foreign financial institution or bank for purposes of and in conformity with Article 195-I of the
Mexican Income Tax Law, the rules thereunder and any administrative regulations (resoluciones misceláneas) thereunder, (ii) maintain its status as a resident (or its principal office 
  

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 to remain as a resident, if acting through an office or a branch thereof) for tax purposes in a country with which Mexico
has entered into a tax treaty for the avoidance of double taxation and (iii) comply with the requirements provided in such tax treaty to apply a reduced withholding tax rate on interest or (II) following a reasonable request of the Mexican Borrowers
upon 30 days’ written notice (unless a lesser period is reasonable under the circumstances), to (x) provide a letter specifying that such Lender is the effective beneficiary of interest hereunder and under any Note held by such Lender as set
forth in, and for so long as it is requested under, the Mexican Income Tax Law or in the applicable double taxation treaty to which Mexico is a party and which is in effect or any equivalent administrative regulations (resoluciones
misceláneas) in effect thereafter while this Agreement shall remain in full force and effect and (y) complete and file with the appropriate Governmental Authority, such forms, certificates or documents (collectively,
“Forms”) prescribed by law, rule or regulation enacted or issued by Mexico, or required under the applicable double taxation treaty to which Mexico is a party and which is in effect, that are necessary to avoid or reduce such
Non-Excluded Taxes or Other Taxes pursuant to provisions of any law, rule or regulation enacted or issued by Mexico, or a double taxation treaty to which Mexico is a party and which is in effect (provided, that (A) such Lender or the
Administrative Agent shall be under no obligation to provide any information of any nature (including the information specified above) to the Mexican Borrowers which such Lender or the Administrative Agent deems, in such Lender’s or the
Administrative Agent’s judgment, to be confidential or the disclosure of which is not permitted by law, (B) such Lender or the Administrative Agent is legally entitled to complete, execute and deliver such Forms and (C) the completion,
execution and delivery of such Forms will not result, in the good faith, reasonable determination of such Lender or the Administrative Agent, in the imposition on such Lender or the Administrative Agent of (1) any additional material legal or
regulatory burden or (2) any additional material out-of-pocket costs or (3) any other material adverse consequences). If the registration set forth in subparagraph (c)(I)(i) above is canceled or not renewed upon expiration during the term of this
Agreement, or if any Lender or beneficial owner of a Note fails to provide the Forms or the letter mentioned in subparagraph (c)(II)(x) above (other than as excepted in the prior proviso), or any Lender (but not an office or branch thereof through
which such Lender may be acting) is no longer a resident for tax purposes in a country with which Mexico has entered into a tax treaty for the avoidance of double taxation or due to its own action no longer complies with the requirements set forth
in such tax treaty to apply a reduced Mexican withholding tax on interest, the Mexican Borrowers may terminate the Mexican Commitment of such Lender and prepay the then outstanding Loans of the affected Lender, together with accrued interest
thereon, additional amounts payable in respect thereto and any other amounts payable hereunder. 
  
 (d) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which any Borrower is
located, or any treaty to which such jurisdiction is a party, with respect to payments under this Agreement shall deliver to the relevant Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable law or
reasonably requested by such Borrower, such properly completed and executed documentation prescribed by applicable law as will permit such payments to be made without withholding or at a reduced rate. Unless prejudicial to such Mexican Lender, each
Mexican Lender agrees that it shall file an application for renewal of its registration with the Ministry of Finance and Public Credit under Article 195-I of the Mexican Income Tax Law, the rules thereunder and/or any administrative regulations
(resoluciones misceláneas) thereunder. 
  

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 (e) If any Lender receives a refund in respect of any Non-Excluded Taxes or Other Taxes paid by any
Borrower, (a “Tax Refund”), which in the sole judgment of such Lender is allocable to such payment, it shall promptly pay such Tax Refund to such Borrower net of all out-of-pocket expenses of such Lender incurred in obtaining such
Tax Refund; provided, however, that such Borrower agrees to promptly return such Tax Refund to the applicable Lender if it receives notice from the applicable Lender that such Lender is required to repay such Tax Refund. This paragraph
shall not be construed to require the Administrative Agent or any Lender to make available its tax returns (or any other information relating to its taxes which it deems confidential) to the Borrowers or any other Person. 
  
 SECTION 4.13. Payments Generally; Pro Rata Treatment; Sharing of
Set-offs. (a) (i) Except as provided in Section 2.07, each Borrowing by the US Borrower from the US Lenders hereunder shall be made pro rata according to the respective US Funding Revolving Commitment Percentages or Tranche A Term
Percentages, as the case may be, of the US Lenders in effect on the date of such borrowing. Any reduction of the US Revolving Commitments of the US Lenders shall be allocated by the Administrative Agent among the US Lenders pro rata
according to the US Revolving Commitment Percentages of the US Lenders. 
  
 (ii) Except as provided in Section 2.07, each payment (other than any optional prepayment) by the US Borrower on account of principal of or interest on the US Revolving Loans or the Competitive Loans shall be allocated by the Administrative
Agent pro rata according to the respective principal amounts thereof then due and owing to each US Lender. Each optional prepayment by the US Borrower on account of principal of or interest on the US Revolving Loans shall be allocated by the
Administrative Agent pro rata according to the respective outstanding principal amounts thereof. 
  
 (iii) Each payment (including each prepayment) by the US Borrower on account of principal of and interest on the Tranche A Term Loans shall be made
pro rata according to the respective outstanding principal amounts of the Tranche A Term Loans then held by the Tranche A Term Lenders. The amount of each principal prepayment of the Tranche A Term Loans shall be applied to reduce the
then remaining installments of the Tranche A Term Loans in direct order of maturity. Amounts prepaid on account of the Tranche A Term Loans may not be reborrowed. 
  
 (iv) Each borrowing of Mexican Revolving Loans by any Mexican Borrower from the Mexican Lenders hereunder shall be made, and
any reduction of the Mexican Commitments shall be allocated by the Administrative Agent, pro rata according to the Mexican Commitment Percentages of the Mexican Lenders. 
  
 (v) Each payment (including each prepayment) by any Mexican Borrower on account of principal of and interest on Mexican
Revolving Loans shall be allocated by the Administrative Agent pro rata according to the respective principal amounts of the Mexican Loans then due and owing by such Borrower to each Mexican Lender. 
  

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 (b) Each Borrower shall make each payment required to be made by it hereunder (whether of principal,
interest, fees or reimbursement of LC Disbursements, or under Section 4.10, Section 4.11 or Section 4.12, or otherwise) prior to 12:00 noon, New York City time, on the date when due, in immediately available funds, without set-off or counterclaim.
Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for purposes of calculating interest thereon. All such payments shall be made to
the Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly provided herein and except that payments pursuant to Section 4.10, Section 4.11,
Section 4.12 and Section 12.03 shall be made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment hereunder shall be due on a day that is not a Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon shall be
payable for the period of such extension. All payments hereunder shall be made in Dollars. 
  
 (c) If at any time insufficient funds are received by and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds
shall be applied (i) first, to pay interest and fees then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, to pay principal and unreimbursed LC
Disbursements then due hereunder, ratably among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
  
 (d) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of its Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Loans and participations in LC Disbursements and
Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Loans and participations in LC
Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on their
respective Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto is recovered, such participations shall be
rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by any Borrower pursuant to and in accordance with the express
terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements or Swingline Loans to any assignee or participant, other than to
a Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable law, that any Lender acquiring
a participation pursuant to the foregoing arrangements may exercise against each Borrower rights of set-off and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of such Borrower in the amount of such
participation. 
  

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 (e) Unless the Administrative Agent shall have received notice from the relevant Borrower prior to the
date on which any payment is due from such Borrower to the Administrative Agent for the account of the Lenders hereunder that such Borrower will not make such payment, the Administrative Agent may assume that such Borrower has made such payment on
such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due. In such event, if the relevant Borrower has not in fact made such payment, then each of the Lenders severally agrees to repay to
the Administrative Agent forthwith on demand the amount so distributed to such Lender with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the date of payment to the Administrative Agent,
at the Federal Funds Effective Rate. 
  
 (f) If any Lender shall
fail to make any payment required to be made by it pursuant to Section 2.09(c), Section 2.10(d) or (e) or Section 4.01(b), then the Administrative Agent shall also be entitled to recover such amount with interest thereon at the rate per annum
applicable to ABR Loans under the relevant Facility, on demand, from the relevant Borrower. 
  
 SECTION 4.14. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation under Section 4.10, or if any Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 4.12, then such Lender shall use reasonable efforts to designate a different lending office for funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 4.10 or Section 4.12, as the case may be, in the future
and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to such Lender. Each Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any
such designation or assignment. 
  
 (b) If any Lender requests
compensation under Section 4.10, or if any Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 4.12, or if any Lender defaults in its obligation to fund
Loans hereunder, then the Borrowers may, at their sole expense and effort, upon notice to such Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions
contained in Section 12.04), all its interests, rights and obligations under this Agreement or any other Loan Document (other than any outstanding Competitive Loans held by it) to an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment); provided that (i) the Borrowers shall have received the prior written consent of the Administrative Agent (and, if a Revolving Commitment is being assigned, the Issuing Bank and Swingline
Lender), which consent or consents shall not unreasonably be withheld, (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans (other than Competitive Loans) and participations in LC Disbursements
and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the Borrowers (in the case of all 

 

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 other amounts) and (iii) in the case of any such assignment resulting from a claim for compensation under Section 4.10 or
payments required to be made pursuant to Section 4.12, such assignment will result in a reduction in such compensation or payments. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver
by such Lender or otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply. 
  
 ARTICLE V 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Each Borrower represents and warrants to the Administrative Agent and the Lenders that: 
  
 SECTION 5.01. Organization; Powers. Each Borrower and each of its respective Subsidiaries is duly organized, validly existing and in good standing
(to the extent such requirement shall be applicable) under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so, individually or in
the aggregate, could not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 
  
 SECTION 5.02. Authorization; Enforceability. (a) The Transactions to
be consummated by each Borrower are within such Borrower’s corporate powers and have been duly authorized by all necessary corporate and, if required, stockholder action. Each Loan Document has been duly executed and delivered by each Borrower
and constitutes a legal, valid and binding obligation of each Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and
subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. 
  
 (b) Each of the Master Intercompany Agreement and the Tax Allocation Agreement constitutes a legal, valid and binding obligation of the US Borrower,
enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law. 
  
 SECTION 5.03.
Governmental Approvals; No Conflicts. The Transactions (a) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except (i) such as have been obtained or made and are in
full force and effect, (ii) routine renewals of existing licenses and permits of the US Borrower and its Subsidiaries in the ordinary course of business and (iii) such filings as may be required under federal and state securities laws for purposes
of disclosure, (b) will not violate any applicable law or regulation (including, without limitation, all laws, rules and regulations promulgated by or relating to IMSS, INFONAVIT and SAR) or the charter, by-laws or other organizational documents of
any Borrower or any of its Subsidiaries or any order of any Governmental 
  

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 Authority, (c) will not violate or result in a default under any indenture, agreement or other instrument binding upon
any Borrower or any of its Subsidiaries or its assets, or give rise to a right thereunder to require any payment to be made by any Borrower or any of its Subsidiaries and (d) will not result in the creation or imposition of any Lien on any asset of
any Borrower or any of its Subsidiaries other than the Liens created by the Security Documents. 
  
 SECTION 5.04. Financial Condition; No Material Adverse Change. (a) The statement of consolidated financial condition of the US Borrower and its
Subsidiaries as at October 31, 2004 and the related statements of consolidated income and retained earnings and consolidated cash flow for such fiscal year ended on such date, reported on by Deloitte & Touche, copies of which have heretofore
been furnished to the Lenders, present fairly, in all material respects, the consolidated financial condition of the US Borrower and its Subsidiaries as at such date, and the consolidated results of its operations and cash flow for such fiscal year
then ended. 
  
 (b) The unaudited statement of consolidated
financial condition of the US Borrower and its Subsidiaries as at April 30, 2005 and the related unaudited statements of consolidated income and retained earnings and consolidated cash flow for the six-month period ended on such date, certified by a
Responsible Officer, copies of which have heretofore been furnished to the Lenders, present fairly, in all material respects, the consolidated financial condition of the US Borrower and its Subsidiaries as at such date, and the consolidated results
of its operations and cash flow for the six-month period then ended (subject to normal year-end audit adjustments and the absence of footnotes). 
  
 (c) All the financial statements referred to in clauses (a) and (b) of this Section 5.04, including the related schedules and notes thereto, have been
prepared in accordance with GAAP, applied consistently throughout the periods involved (except as approved by such accountants or Responsible Officer, as the case may be, and as disclosed therein). 
  
 (d) The US Borrower and its Subsidiaries do not have, at the date hereof, any
material Guarantee obligations, contingent liabilities and liabilities for taxes, or any long-term leases or unusual forward or long-term commitments, including any interest rate or foreign currency swap or exchange transaction or other obligation
in respect of derivatives that are not reflected in the financial statements referred to in this Section. 
  
 (e) Since October 31, 2004, there has been no material adverse change in the business, assets, property or financial condition of the US Borrower and its
Subsidiaries, taken as a whole. 
  
 SECTION 5.05.
Litigation. There are no actions, suits or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of any Borrower, threatened against or affecting any Borrower or any of its Subsidiaries (a)
which could reasonably be expected to result in an adverse determination and that, if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or
(b) that involve this Agreement, the Loan Documents or the Transactions. 
  

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 SECTION 5.06. Compliance with Laws and Agreements. Each Borrower and its Subsidiaries is in
compliance with all laws, regulations and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other instruments binding upon it or its property, except where the failure to do so, individually or
in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is continuing. 
  
 SECTION 5.07. Investment and Holding Company Status. None of the Borrowers is (a) an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935. 
  
 SECTION 5.08. Taxes. Each Borrower and its Subsidiaries has timely filed or caused to be filed all Tax returns and
reports required to have been filed and has paid or caused to be paid all Taxes required to have been paid by it, except (a) Taxes that are being contested in good faith by appropriate proceedings and for which the relevant Borrower or such
Subsidiary, as applicable, has set aside on its books adequate reserves with respect thereto in accordance with GAAP or (b) to the extent that the failure to do so could not reasonably be expected to result in a Material Adverse Effect. 

 
 SECTION 5.09. ERISA. No ERISA Event has occurred or is reasonably
expected to occur that, when taken together with all other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 5.10. Subsidiaries. As of the Effective Date, Schedule 5.10
sets forth the name, jurisdiction of incorporation and capital stock ownership of each Subsidiary owned by any Borrower. 
  
 SECTION 5.11. Ownership of Property; Liens. The US Borrower has title in fee simple to, or a valid leasehold interest in, all of its real property,
and good title to, a valid leasehold interest in or other rights to use, all of its other property (other than immaterial assets), and none of such property is subject to any Lien except as permitted by Section 8.03. 
  
 SECTION 5.12. Use of Proceeds. The proceeds of the Loans and the
Letters of Credit shall be used (a) to repay any amounts outstanding under the Existing Credit Agreement and (b) for general corporate purposes. 
  
 SECTION 5.13. Foreign Exchange Regulations; Immunity; Enforcement. (a) Under the laws of Mexico, with respect to the execution, delivery and
performance of this Agreement or any Note issued hereunder, each of the Mexican Borrowers and its respective Subsidiaries is subject to private commercial law and to suit, and neither it nor its properties have any immunity from the jurisdiction of
any court or any legal process that may be brought in the courts of Mexico (whether through service of notice, attachment prior to notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise). 
  
 (b) It is not necessary, in order to ensure the legality, validity,
enforceability or admissibility into evidence in Mexico of this Agreement or any Note issued hereunder, that 
  

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 any such document be filed, recorded or enrolled with any Governmental Authority, or that this Agreement or any Note
issued hereunder be stamped with any stamp, registration or similar transaction tax, except that in order for this Agreement or any Note issued hereunder to be admissible in evidence in legal proceedings in a court in Mexico, such documents would
have to be translated into the Spanish language by a court-approved translator and would have to be approved by such court after the defendant had been given an opportunity to be heard with respect to the accuracy of the translation, and proceedings
would thereafter be based upon the translated documents. 
  
 SECTION 5.14. Disclosure. (a) Each Borrower has disclosed to the Lenders all matters known to it that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 
  
 (b) None of the reports, financial statements, certificates or other
information furnished by or on behalf of the Borrowers to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished) contains any
material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that, with respect to projected financial
information, the Borrowers represent only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. 
  
 SECTION 5.15. Title; No Other Liens. Except for the security interest granted to the Administrative Agent for the ratable benefit of the Lenders
pursuant to Section 12.21 of this Agreement and the other Liens permitted to exist on the Blocked Account by the terms of this Agreement, the US Borrower owns the Blocked Account free and clear of any and all Liens or claims of others. 

 
 SECTION 5.16. Perfected First Priority Lien. The security interest
granted pursuant to Section 12.21 of this Agreement (a) upon execution of the Blocked Account Agreement will constitute a valid perfected security interest in the Blocked Account in favor of the Administrative Agent, for the ratable benefit of the
Lenders, as collateral security for the US Obligations, enforceable against all creditors of the US Borrower and (b) is prior to all other Liens on the Blocked Account except for unrecorded Liens permitted by the Credit Agreement which have priority
over the Liens on the Blocked Account by operation of law. 
  

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 ARTICLE VI 
  
 CONDITIONS 
  
 SECTION 6.01. Effective Date. This Agreement shall become effective upon the execution and delivery hereof by all parties hereto. The obligations
of the Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 12.02): 
  
 (a) The Administrative Agent (or its counsel) shall have received from each
party thereto either (i) a counterpart of this Agreement, the Security Agreement and the Blocked Account Agreement, as applicable, signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include
telecopy transmission of a signed signature page) that such party has signed a counterpart of this Agreement, the Security Agreement and the Blocked Account Agreement, as applicable. 
  
 (b) The Administrative Agent shall have received an executed copy of the Parents’ Side Agreement and the Parent
Guarantee, duly executed and delivered by the parties thereto, which shall be in full force and effect on the Effective Date. 
  
 (c) The Administrative Agent shall have received a copy of the Master Intercompany Agreement, as in effect on the Effective Date. 
  
 (d) The Administrative Agent shall have received a favorable written opinion
(addressed to the Administrative Agent and the Lenders and dated the Effective Date) of (i) Kirkland & Ellis LLP, New York counsel for the Borrowers, substantially in the form of Exhibit B-1, (ii) Kristin L. Moran, General Counsel of the US
Borrower, substantially in the form of Exhibit B-2 and (iii) Gamboa, Aguilar y Loera, Mexican counsel for the Borrowers, substantially in the form of Exhibit B-3, and, in each case, covering such matters relating to the Borrowers, this Agreement or
the Transactions as the Administrative Agent shall reasonably request. 
  
 (e) The Administrative Agent shall have received a certificate of each Borrower, dated the Effective Date, as to (i) the adoption of resolutions (or equivalent corporate actions including, in the case of each Mexican Borrower, notarized
powers of attorney, certified by a notary public, evidencing authority to, among other things, execute negotiable instruments), of the Board of Directors (or other similar governing body) of each Borrower authorizing (A) the execution, delivery and
performance of this Agreement and (B) the borrowings contemplated hereunder, (ii) the incumbency and true signature of the officers of each Borrower executing this Agreement and any Notes issued hereunder and (iii) the certificate of incorporation
and by-laws, in the case of the US Borrower, and the estatutos sociales (certified by a notary public), in the case of each Mexican Borrower, which certificate shall be reasonably satisfactory in form and substance to the Administrative Agent
and its counsel and executed by the secretary or any assistant secretary or a legal representative of such Borrower. 
  

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 (f) The Administrative Agent shall have received a certificate, dated the Effective Date and signed by a
Responsible Officer of the US Borrower, confirming compliance with the conditions set forth in paragraphs (a), (b) and (c) of Section 6.02. 
  
 (g) The Lenders shall have received (i) audited consolidated financial statements of the US Borrower for the fiscal year ended October 31, 2004 and (ii)
unaudited consolidated financial statements of the US Borrower for the quarterly period ended April 30, 2005, and such financial statements shall not, in the reasonable judgment of the Required Lenders, reflect any material adverse change in the
consolidated financial condition of the US Borrower, as reflected in the financial statements or projections contained in the Confidential Information Memorandum supplied to the Lenders, dated May, 2005. 
  
 (h) The Administrative Agent, the Lenders and the Joint Lead Arrangers shall
have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses required to be reimbursed or paid by the Borrowers
hereunder. 
  
 (i) The Administrative Agent shall have received
evidence that the US Borrower has agreed to act as agent for service of process in New York, New York on behalf of each Mexican Borrower under this Agreement (together with a notarized power of attorney to that effect). 
  
 (j) The Administrative Agent shall have received a Borrowing Request from the
US Borrower, requesting a US Revolving Borrowing and a Tranche A Term Borrowing to be made on the Effective Date and in an amount, together with available cash of the US Borrower, sufficient to repay all outstanding amounts due under the Existing
Credit Agreement. 
  
 (k) Approvals. All governmental and
third party approvals necessary in connection with the continuing operations of the Borrowers and their respective Subsidiaries and the Transactions shall have been obtained and be in full force and effect, and all applicable waiting periods shall
have expired without any action being taken or threatened by any competent authority that would restrain, prevent or otherwise impose adverse conditions on the Transactions. 
  
 (l) Lien Searches. The Administrative Agent shall have received the results of a recent lien search in each of the US
jurisdictions where assets of the US Borrower are located, and such search shall reveal no liens on any of the assets of the US Borrower except for liens permitted by Section 8.03 or discharged on or prior to the Effective Date pursuant to
documentation reasonably satisfactory to the Administrative Agent. 
  
 (m) Pledged Stock; Stock Powers; Pledged Notes. To the extent not previously delivered, the Administrative Agent shall have received (i) the certificates representing the shares of Capital Stock pledged pursuant to the Security
Agreement, together with an undated stock power for each such certificate executed in blank by a duly authorized officer of the pledgor thereof and (ii) each promissory note (if any) pledged to the Administrative Agent pursuant to the Security
Agreement endorsed (without recourse) in blank (or accompanied by an executed transfer form in blank) by the pledgor thereof. 
  

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 (n) Filings, Registrations and Recordings. Each document (including any Uniform Commercial Code
financing statement) required by the Security Agreement or under law or reasonably requested by the Administrative Agent to be filed, registered or recorded in order to create in favor of the Administrative Agent, for the benefit of the Lenders, a
perfected Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted by Section 8.03 which have priority), shall be in proper form for filing, registration or
recordation. 
  
 The Administrative Agent shall notify the Borrowers and the
Lenders of the Effective Date, and such notice shall be conclusive and binding. 
  
 SECTION 6.02. Each Borrowing Event. The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to
the satisfaction (or waiver) of the following conditions: 
  
 (a)
The representations and warranties of the Borrowers, the Parent and International set forth in this Agreement (except for, other than in the case of the Loans made on the Effective Date, the representations and warranties set forth in Section
5.04(e) and Section 5.14(a)) and any other Loan Document shall be true and correct in all material respects on and as of the date of such Borrowing or the date of issuance, amendment, renewal or extension of such Letter of Credit, as applicable.

  
 (b) At the time of and immediately after giving effect to such
Borrowing or the issuance, amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing. 
  
 (c) The Cash Balance of the US Borrower and its Subsidiaries as of such date (after giving effect to such extension of credit, the application of proceeds
of such Borrowing and the use of cash on hand) shall not exceed $50,000,000. If the Cash Balance exceeds $50,000,000, the US Borrower shall have caused all excess amounts to be deposited into the Blocked Account to be held as security for the US
Obligations in accordance with the terms hereof and of the Blocked Account Agreement. 
  
 (d) In the case of any Borrowing by a Mexican Borrower, the Parent Guarantee and the Guarantee contained in Article XI shall be in full force and effect and neither the Parent, nor the US Borrower nor any Affiliate
thereof shall have asserted that either such Guarantee is not in full force and effect. 
  
 Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by the relevant Borrower on the date thereof as to the matters specified in this Section
6.02. 
  
 SECTION 6.03. Concurrent Condition for Initial
Borrowing. Immediately upon the satisfaction (or waiver) of all conditions specified in Section 6.01 and Section 6.02, the US Borrower shall repay all outstanding amounts due under the Existing Credit Agreement and shall deliver evidence to the
Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent, that the Existing Credit Agreement shall have been terminated on the Effective Date and all obligations thereunder satisfied in full. 
  

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 SECTION 6.04. Post-Closing Conditions. Notwithstanding anything to the contrary set forth herein
or in any other Loan Document, no later than 10 Business Days after the Effective Date, the US Borrower will deliver to the Administrative Agent (i) a stock certificate representing 999 shares of Class I stock of Servicios Corporativos NFC, S.A. de
C.V., together with an undated stock power for such certificate executed in blank by a duly authorized officer of the US Borrower, (ii) a stock certificate representing 28,512 shares of Class II stock of Servicios Corporativos NFC, S.A. de C.V.,
together with an undated stock power for such certificate executed in blank by a duly authorized officer of the US Borrower, (iii) the Navistar Financial 2000-B Owner Trust Certificate, (iv) the Navistar Financial 2004-B Owner Trust Certificate, (v)
International Truck Leasing Corp. Revolving Note and (vi) the legal opinion from the Parent’s in-house counsel addressing matters reasonably requested by the Administrative Agent. 
  
 ARTICLE VII 
  
 AFFIRMATIVE COVENANTS 
  
 Until the Commitments have expired or been terminated, the principal of and interest on each Loan and all fees payable hereunder shall have been paid in
full, all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been reimbursed, each Borrower covenants and agrees with the Lenders that: 
  
 SECTION 7.01. Financial Statements and Other Information. Each of the Borrowers and the Parent, as applicable, will
furnish to the Administrative Agent, for prompt distribution to each Lender: 
  
 (a) (i) within 90 days after the end of each fiscal year of each of the Parent and the US Borrower, its Form 10-K for such fiscal year, which shall include its audited consolidated statement of financial condition and
related statements of consolidated income and retained earnings and consolidated cash flow as of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Deloitte &
Touche or other independent public accountants of recognized national standing (without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material respects
the financial condition and results of operations and cash flow of the Parent and its consolidated Subsidiaries and the US Borrower and its consolidated Subsidiaries, as the case may be, on a consolidated basis in accordance with GAAP, consistently
applied; 
  
 (ii) within 90 days after the end of
each fiscal year of each Mexican Borrower, its audited statement of financial condition and related statements of consolidated income and retained earnings and consolidated cash flow as of the end of and for such year, setting forth in each case in
comparative form the figures for the previous fiscal year, all reported on by Deloitte & Touche or other independent public accountants of recognized national standing (without any qualification or exception as to the scope of such audit) to the
effect that such consolidated financial statements present fairly in all material respects the financial condition and results of operations and cash flow of such Mexican Borrower and its consolidated Subsidiaries on a consolidated basis in
accordance with GAAP, consistently applied; 
  

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 (b) (i) within 45 days after the end of each of the first three fiscal quarters of each fiscal year of
each of the Parent and the US Borrower, its Form 10-Q for such fiscal quarter, which shall include its consolidated statement of financial condition and related statements of consolidated income and retained earnings and consolidated cash flow as of
the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the statement of financial condition,
as of the end of) the previous fiscal year, all certified by one of its Responsible Officers as presenting fairly in all material respects the financial condition and results of operations and cash flow of the Parent and its consolidated
Subsidiaries and the US Borrower and its consolidated Subsidiaries, as the case may be, on a consolidated basis in accordance with GAAP, consistently applied, subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (ii) within 45 days after the end of each of the first three
fiscal quarters of each fiscal year of each Mexican Borrower, its consolidated statement of financial condition and related statements of consolidated income and retained earnings and consolidated cash flow as of the end of and for such fiscal
quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the statement of financial condition, as of the end of) the previous
fiscal year, all certified by one of its respective Responsible Officers as presenting fairly in all material respects the financial condition and results of operations and cash flow of such Borrower and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP, consistently applied, subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (c) concurrently with the delivery of the financial statements under clause (a) above, a certificate of Deloitte & Touche or other independent public
accountants of recognized national standing stating that in making the examination necessary therefor no knowledge was obtained of any Default or Event of Default pursuant to Section 8.01, except as specified in such certificate; 
  
 (d) concurrently with any delivery of financial statements under clause (a)
or (b) above, a certificate of a Responsible Officer of the US Borrower, substantially in the form of Exhibit F (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken
or proposed to be taken with respect thereto, (ii) setting forth reasonably detailed calculations demonstrating compliance with Section 8.01(a) and (b) and (iii) stating whether any change in GAAP, or in the application thereof has occurred since
the date of the audited financial statements referred to in Section 5.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate; 
  
 (e) promptly following any request therefor, such other information regarding
the operations, business affairs and financial condition of any Borrower or any Subsidiaries, or compliance with the terms of this Agreement, as the Administrative Agent or any Lender may reasonably request; and 
  

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 (f) (i) within 55 days after the end of the second fiscal quarter of each fiscal year of the US Borrower,
a report containing statistical and other information in respect of all Serviced Wholesale Notes and Serviced Retail Receivables for the period of two consecutive fiscal quarters then ended and (ii) within 100 days after the end of the fourth fiscal
quarter of each fiscal year of the US Borrower, a report containing statistical and other information in respect of all Serviced Wholesale Notes and Serviced Retail Receivables for the period of two consecutive fiscal quarters then ended and for the
fiscal year then ended and, in the case of the reports delivered pursuant to subclauses (i) and (ii) of this clause (f), comparative information relating to the corresponding portion or portions of the previous fiscal year, all substantially in the
same form and scope (except for the periods covered) as set forth on Exhibit D hereto. 
  
 SECTION 7.02. Notices of Material Events. The US Borrower (or each Mexican Borrower, in the case of paragraph (b) below) will furnish to the Administrative Agent, for prompt distribution to each Lender, prompt
written notice of the following: 
  
 (a) the occurrence of any
Default; 
  
 (b) any changes in taxes, duties or other charges of
Mexico or any political subdivision or taxing authority thereof or any change in any laws of Mexico that may affect the amount or timing of receipt of any payment due under this Agreement or any Notes issued hereunder; 
  
 (c) the filing or commencement of any action, suit or proceeding by or before
any arbitrator or Governmental Authority against or affecting any Borrower, any Subsidiary or any Affiliate thereof that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; 
  
 (d) the occurrence of any ERISA Event that, alone or together with any other
ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; and 
  
 (e) any other development that results in, or could reasonably be expected to result in, a Material Adverse Effect. 
  
 Each notice delivered under this Section shall be accompanied by a statement of a Responsible
Officer of the relevant Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
  
 SECTION 7.03. Existence; Conduct of Business. Each Borrower will, and will cause each of its respective Subsidiaries
to, do or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, licenses, permits, privileges and franchises material and necessary to the conduct of its business;
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 8.04. 
  

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 SECTION 7.04. Payment of Obligations. Each Borrower will, and will cause each of its respective
Subsidiaries to, pay its obligations, including Tax liabilities, that, if not paid, could result in a Material Adverse Effect before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested
in good faith by appropriate proceedings, (b) the relevant Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP, and (c) the failure to make payment pending such contest could not
reasonably be expected to result in a Material Adverse Effect; provided, however, that nothing in this Section 7.04 shall impose an obligation on any Borrower to cause a Securitization Subsidiary to repay any Indebtedness or to repay
any Indebtedness of any Securitization Subsidiary. 
  
 SECTION
7.05. Maintenance of Properties; Insurance. Each Borrower will, and will cause each of its respective Subsidiaries to, (a) keep and maintain all property material to the conduct of its business in good working order and condition, ordinary
wear and tear and damage by casualty excepted, and (b) maintain, with financially sound and reputable insurance companies, insurance in such amounts and against such risks as are customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations. 
  
 SECTION
7.06. Books and Records; Inspection Rights. Each Borrower will, and will cause each of its respective Subsidiaries to, keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions
in relation to its business and activities. Each Borrower will, and will cause each of its respective Subsidiaries to, permit any representatives designated by the Administrative Agent or any Lender, upon reasonable prior notice, to visit and
inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent accountants, all at such reasonable times and as often as reasonably requested.

  
 SECTION 7.07. Compliance with Laws and Material Contractual
Obligations. Each Borrower will, and will cause each of its respective Subsidiaries to, comply with (a) all laws, rules, regulations and orders of any Governmental Authority applicable to it or its property (including, without limitation, all
laws, rules and regulations relating to INFONAVIT and SAR) and (b) all material obligations under any indenture, agreement or other instrument binding upon such Borrower or any of its Subsidiaries, in each case except where (i) the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect or (ii) the necessity of compliance therewith is contested in good faith by appropriate proceedings. 
  
 SECTION 7.08. Intercompany Agreements. (a) The US Borrower will (i)
perform all of its obligations under the Master Intercompany Agreement unless International shall have failed to make any payment payable by it to the US Borrower under the Master Intercompany Agreement or the Tax Allocation Agreement; (ii) enforce
the Master Intercompany Agreement against International in accordance with its terms; (iii) not cancel or terminate, or permit the cancellation or termination of, the Master Intercompany Agreement, or Article II, VI, VII or VIII (other than
paragraph C) thereof if such cancellation or termination is materially adverse to the US Borrower, and (iv) not agree to any amendment, waiver or modification of the Master Intercompany Agreement which is materially adverse to the US Borrower;
provided that the Master Intercompany agreement may be modified to modify, amend 
  

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 or eliminate Section II.A of the Master Intercompany Agreement insofar as such Section requires International to offer to
sell to the US Borrower, or requires the US Borrower to purchase, “Wholesale Contracts” (as such term is defined in the Master Intercompany Agreement). 
  
 (b) The US Borrower will (i) enforce the Tax Allocation Agreement against International in accordance with its terms, (ii)
not agree to any amendment, waiver or modification of the Tax Allocation Agreement which amends or modifies the provisions of the Amendment to Tax Allocation Agreement and Acknowledgement dated as of April 26, 1993 among the US Borrower,
International and TRIP or is in any manner adverse to the US Borrower or to the US Borrower and its Subsidiaries taken as a whole. 
  
 (c) The US Borrower will (i) enforce each Intercompany Loan Agreement against the Subsidiary of the US Borrower that is a party thereto in accordance with
its terms; (ii) cause each of its Subsidiaries to pay promptly all accounts payable from time to time owing by such Subsidiary to the US Borrower (including without limitation amounts payable from time to time by such Subsidiary to the US Borrower
under the Tax Allocation Agreement); (iii) not cancel or terminate, or permit the cancellation or termination of, any Intercompany Loan Agreement without the consent of the Required Lenders (other than the cancellation or termination of any
Intercompany Loan Agreement resulting from the termination of the Qualified Securitization Transaction to which such Intercompany Loan Agreement relates and the repayment of all amounts outstanding under such Intercompany Loan Agreement); (iv) not
agree to any amendment, waiver or modification of any provision of any Intercompany Loan Agreement if there is a reasonable possibility that such amendment, waiver or modification would have the effect of (1) reducing the amount owed by any
Subsidiary of the US Borrower to the US Borrower under any Intercompany Loan Agreement, (2) postponing the date that any payment would otherwise be payable to the US Borrower thereunder, (3) further subordinating the US Borrower’s right to
payment thereunder to the rights of any other creditors, (4) further restricting the Subsidiary party thereto from applying, or releasing to any extent such Subsidiary from its obligation to apply, cash received by it to pay its allocated share of
payments from time to time owing by the US Borrower to International under the Tax Allocation Agreement or (5) changing the transactions contemplated thereunder in a manner that makes them, taken as a whole, less favorable to the US Borrower; and
(v) deliver to the Administrative Agent, promptly upon receipt thereof, a copy of each certificate, notice, instruction or other document received or delivered by it in connection with each Intercompany Loan Agreement. 
  
 SECTION 7.09. Federal Regulations. No part of the proceeds of any
Loans, and no other extensions of credit hereunder, will be used for “buying” or “carrying” any “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board as now and from
time to time hereafter in effect or for any purpose that violates the provisions of the Regulations of the Board. If requested by any Lender or the Administrative Agent, the relevant Borrower will furnish to the Administrative Agent and each Lender
a statement to the foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1, as applicable, referred to in Regulation U. 
  
 SECTION 7.10. Additional Collateral, etc. The US Borrower will comply with all provisions in the Security Documents with respect to property
acquired after the Effective Date. 
  

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 ARTICLE VIII 
  
 NEGATIVE COVENANTS 
  
 Until the Commitments have expired or terminated, the principal of and interest on each Loan and all fees payable hereunder have been paid in full, all
Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, each Borrower covenants and agrees with the Lenders that: 
  
 SECTION 8.01. Financial Covenants. (a) The US Borrower will not permit the Consolidated Leverage Ratio to exceed 6.00 to 1.00 as of the last
Business Day of each calendar month. 
  
 (b) The US Borrower will
not permit the Fixed Charge Coverage Ratio as at the last day of any fiscal quarter for the period of four consecutive fiscal quarters then ended to be less than 1.25 to 1.00. 
  
 SECTION 8.02. Indebtedness. The US Borrower will not, and will not permit any of its Subsidiaries to create, issue,
incur, assume, become liable in respect of or suffer to exist any Indebtedness, except: 
  
 (a) Indebtedness of the US Borrower pursuant to any Loan Document; 
  
 (b) (i) Indebtedness of the US Borrower to any of its Subsidiaries, (ii) Indebtedness for Borrowed Money of the US Borrower to any Mexican Borrower (iii)
Indebtedness of any Subsidiary of the US Borrower to the US Borrower or any other Subsidiary of the US Borrower or (iv) Indebtedness for Borrowed Money of any Subsidiary of the US Borrower to any Mexican Borrower; 
  
 (c) Guarantees and Indebtedness permitted by Section 8.05(a); 
  
 (d) Indebtedness outstanding on the date hereof and listed on Schedule 8.02
and any refinancings, refundings, renewals or extensions thereof (without increasing, or shortening the maturity of, the principal amount thereof); 
  
 (e) Indebtedness (including, without limitation, Capital Lease Obligations) secured by Liens permitted by Section 8.03(d) in an aggregate principal amount
not to exceed $10,000,000 at any one time outstanding; 
  
 (f)
Subordinated Debt of the US Borrower; 
  
 (g) unsecured
Indebtedness of the US Borrower in an aggregate principal amount not to exceed $250,000,000 at any time outstanding, less the aggregate principal amount of loans and advances made by the US Borrower and its Subsidiaries to any Mexican
Borrower pursuant to Section 8.05(a)(iii) outstanding at such time; 
  

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 (h) Indebtedness with respect to Hedging Agreements permitted by Section 8.05(b); 
  
 (i) Indebtedness incurred pursuant to Qualified Securitization Transactions;

  
 (j) Indebtedness of any Person that becomes a Subsidiary after
the date hereof that is outstanding on the date such Person becomes a Subsidiary; provided that (i) such Indebtedness is not created in contemplation of or in connection with such Person becoming a Subsidiary and (ii) the amount of such
Indebtedness shall not be increased; 
  
 (k) Indebtedness assumed
in connection with the acquisition of any asset or property; provided that (i) immediately after giving effect thereto, no Default or Event of Default shall exist or result therefrom, (ii) the US Borrower will be in pro forma compliance with
the covenants set forth in Section 8.01 after giving effect to such acquisition and the incurrence of such Indebtedness, (iii) such Indebtedness is not created in contemplation of or in connection with such acquisition and (iv) the amount of such
Indebtedness shall not be increased; and 
  
 (l) Indebtedness
incurred in the ordinary course of business to finance insurance premiums. 
  
 SECTION 8.03. Liens. The US Borrower will not, and will not permit any of its Subsidiaries to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it,
or assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except: 
  
 (a) Permitted Encumbrances; 
  
 (b) any Lien on any property or asset of the US Borrower or any of its Subsidiaries existing on the date hereof and set forth in Schedule 8.03;
provided that (i) such Lien shall not apply to any other property or asset of the US Borrower or any Subsidiary and (ii) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals and
replacements thereof that do not increase the outstanding principal amount thereof; 
  
 (c) any Lien existing on any property or asset prior to the acquisition thereof by the US Borrower or any of its Subsidiaries or existing on any property or asset of any Person that becomes a Subsidiary after the date
hereof prior to the time such Person becomes a Subsidiary; provided that (i) such Lien is not created in contemplation of or in connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall
not apply to any other property or assets of the US Borrower or such Subsidiary and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be
and extensions, renewals and replacements thereof that do not increase the outstanding principal amount thereof; 
  
 (d) Liens on fixed or capital assets acquired, constructed or improved by the US Borrower or any of its Subsidiaries; provided that (i) such
security interests and the Indebtedness secured thereby are incurred prior to or within 90 days after such acquisition or the completion of such construction or improvement, (ii) the Indebtedness secured thereby does not 
  

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 exceed 100% of the cost of acquiring, constructing or improving such fixed or capital assets and (iii) such security
interests shall not apply to any other property or assets of the US Borrower or such Subsidiary; 
  
 (e) any rights of set-off of financial institutions holding accounts of the US Borrower and its Subsidiaries; 
  
 (f) any Lien created pursuant to the Security Documents; 
  
 (g) any Lien on unearned insurance premiums securing Indebtedness permitted
under Section 8.02(k); and 
  
 (h) Liens not otherwise permitted
by this Section so long as the aggregate outstanding principal amount of the obligations secured thereby does not at any time exceed $10,000,000. 
  
 SECTION 8.04. Fundamental Changes. (a) The US Borrower will not, and will not permit any of its Subsidiaries to, merge into or consolidate with any
other Person, or permit any other Person to merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets (other than sales of
Receivables, operating leases through its leasing Subsidiaries or interests therein in the ordinary course of business by the US Borrower or a Securitization Subsidiary in connection with a Qualified Securitization Transaction), or all or
substantially all of the stock of any of its Subsidiaries (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing, (i) any Person may merge into any Borrower in a transaction in which such Borrower is the surviving corporation, (ii) any Person (other than the US Borrower) may merge into any Subsidiary in a transaction in which the
surviving entity is a direct or indirect Subsidiary, (iii) any Subsidiary may sell, transfer, lease or otherwise dispose of its assets to the US Borrower or to another Subsidiary and (iv) any Subsidiary may liquidate or dissolve if the US Borrower
determines in good faith that such liquidation or dissolution is in the best interests of the US Borrower and is not materially disadvantageous to the Lenders; provided that any such merger involving a Person that is not a wholly owned
Subsidiary immediately prior to such merger shall not be permitted unless also permitted by Section 8.06. 
  
 (b) The US Borrower will not, and will not permit any of its Subsidiaries to, engage to any material extent in any business other than businesses of the
type conducted by the US Borrower and its Subsidiaries on the date of execution of this Agreement and businesses reasonably related, similar, supportive or ancillary thereto. 
  
 SECTION 8.05. Investments, Loans, Advances, Guarantees and Acquisitions; Hedging Agreements. (a) Other than in the
ordinary course of business for a finance company, the US Borrower will not, and will not permit any of its Subsidiaries to, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to
such merger) any capital stock, evidences of indebtedness or other securities (including any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any loans or advances to, make or permit to exist any investment
or any other interest in, 
  

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 or Guarantee any obligations of, any other Person, or purchase or otherwise acquire (in one transaction or a series of
transactions) any assets of any other Person constituting a business unit (all of the foregoing, “Investments”), except: 
  
 (i) Permitted Investments; 
  
 (ii) Investments by the US Borrower in the capital stock of its Subsidiaries; 
  
 (iii) loans or advances made by the US Borrower to any
Subsidiary or any Mexican Borrower and made by any Subsidiary to the US Borrower, any Mexican Borrower or any other Subsidiary; provided that the aggregate principal amount of loans and advances made by the US Borrower and its Subsidiaries to
the Mexican Borrowers together with the aggregate principal amount of Indebtedness permitted to be incurred pursuant to Section 8.02(g), shall not exceed $250,000,000 at any time outstanding; 
  
 (iv) loans and advances to employees of any Borrower or its
Subsidiaries in the ordinary course of business (including for travel and relocation expenses); 
  
 (v) loans made by the US Borrower to International in an amount not to exceed $50,000,000 at any one time outstanding; 
  
 (vi) deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in each case in the ordinary course of business; 
  
 (vii) the US Borrower and its Subsidiaries may acquire a Controlling interest in an entity, or any assets
constituting a business unit of a Person, that engages in a business similar to the business of the type conducted by the US Borrower and its Subsidiaries so long as, after giving pro forma effect thereto, the US Borrower is in compliance with
Section 8.01(a) and (b); 
  
 (viii) Investments
made in connection with Qualified Securitization Transactions; 
  
 (ix) Investments set forth on Schedule 8.05; 
  
 (x) the Guarantee by the US Borrower contained in Article XI and other Guarantee obligations of the US Borrower incurred in accordance with Section 8.02; 
  
 (xi) Guarantees by any Subsidiary, so long as such guarantor simultaneously delivers to the Administrative
Agent a Guarantee, in form and substance reasonably satisfactory to the Administrative Agent and on terms no less favorable than the terms in such original Guarantee entered into by such Subsidiary, for the benefit of the Administrative Agent, on
behalf of the Lenders; 
  
 (xii) in addition to
Investments otherwise expressly permitted by this Section, Investments in an aggregate amount (valued at cost) not to exceed $20,000,000 during the term of this Agreement; and 
  

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 (xiii) Investments (including debt obligations and equity) received in connection with
the bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers arising in the ordinary course of business. 
  
 (b) The US Borrower will not, and will not permit any of its Subsidiaries to,
enter into any Hedging Agreement, other than Hedging Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the US Borrower or such Subsidiary is exposed in the conduct of its business or the management of its
liabilities or as otherwise required by any Qualified Securitization Transaction. 
  
 SECTION 8.06. Restricted Payments. The US Borrower will not, and will not permit any of its Subsidiaries to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except (a)
any Subsidiary may make Restricted Payments to the US Borrower, (b) the US Borrower may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management or employees of the US Borrower and its
Subsidiaries and (c) so long as no Default or Event of Default has occurred and is continuing or would result after giving effect thereto, the US Borrower may make Restricted Payments to International provided that the aggregate amount of such
Restricted Payments made while this Agreement is in effect shall not exceed the sum of (i) $200,000,000, (ii) 100% of cumulative positive consolidated net income of the US Borrower since November 1, 2004 through the period prior to the date of such
payment, and (iii) the aggregate net cash proceeds of sales of non-core assets of the US Borrower and its Subsidiaries received by the US Borrower and its Subsidiaries after the Effective Date through the period prior to the date of such payment, to
the extent not reinvested or used to prepay the Loans in accordance with the terms hereof. 
  
 SECTION 8.07. Transactions with Affiliates. The US Borrower will not, and will not permit any of its Subsidiaries to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise
acquire any property or assets from, or otherwise engage in any other transactions with, any of its Affiliates, except (a) in the ordinary course of business at prices and on terms not less favorable to the US Borrower or such Subsidiary than could
be obtained on an arm’s-length basis from unrelated third parties, (b) transactions between or among the US Borrower and its wholly owned Subsidiaries not involving any other Affiliate, (c) any Restricted Payment permitted by Section 8.06, (d)
in connection with any Qualified Securitization Transaction (e) any Indebtedness or Guarantees permitted by Section 8.02, (f) any Investment permitted by Section 8.05 and (g) in connection with the Master Intercompany Agreement, the Tax Allocation
Agreement and any Intercompany Loan Agreement. 
  
 SECTION 8.08.
Negative Pledge. The US Borrower will not, and will not permit any of its Subsidiaries to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon
(a) the ability of the US Borrower or any of its Subsidiaries to create, incur or permit to exist any Lien upon any of its property or assets, or (b) the ability of any Subsidiary of the US Borrower to pay dividends or other distributions with
respect to any shares of its capital stock or to make or repay loans or advances to the US Borrower or any other Subsidiary or to Guarantee Indebtedness of the US Borrower or any other Subsidiary; provided that (i) the foregoing shall not
apply to restrictions and conditions imposed by law or by this Agreement, (ii) the foregoing shall not 
  

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 apply to restrictions and conditions existing on the date hereof, (iii) the foregoing shall not apply to Qualified
Securitization Transactions, (iv) the foregoing shall not apply to customary restrictions and conditions contained in agreements relating to the sale of a Subsidiary pending such sale, provided such restrictions and conditions apply only to the
Subsidiary that is to be sold and such sale is permitted hereunder, (v) clause (a) above shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or
conditions apply only to the property or assets securing such Indebtedness, (vi) clause (a) above shall not apply to customary provisions in leases and other contracts restricting the assignment thereof; and (vii) clause (a) above shall not apply to
restrictions and conditions that require that other Indebtedness be secured equally and ratably with Indebtedness under this Agreement; and provided, further, that so long as any Event of Default shall be continuing, neither the US
Borrower nor any of its Subsidiaries shall assume or incur any Indebtedness that is subject to a provision requiring such Indebtedness to be secured equally and ratably with, or prior to, the Indebtedness hereunder. 
  
 SECTION 8.09. Prepayments of Subordinated Debt. The US Borrower will
not, and will not permit any of its Subsidiaries to, prepay, purchase or otherwise retire any of the Subordinated Debt prior to the stated maturity thereof unless at the time of such prepayment, purchase or retirement or, in the case of any
Subordinated Debt of the US Borrower issued pursuant to an indenture, at the time notice of redemption is given to the holders thereof pursuant to the terms thereof, (a)(i) the US Borrower has at least two of the following ratings for its Index
Debt: (A) BBB- or higher by S&P, (B) Baa3 or higher by Moody’s and (C) BBB- or higher by Duff & Phelps Credit Rating Co. or (ii) after giving effect to such prepayment, purchase or retirement, the sum of (A) the aggregate amount of all
outstanding preferred stock of the US Borrower and (B) the aggregate principal amount of all outstanding Subordinated Debt, is at least equal to $100,000,000 and (b) no Default has occurred and is continuing or would result from such prepayment,
purchase or retirement. 
  
 SECTION 8.10. Serviced Wholesale
Portfolio Quality. The US Borrower will not permit: 
  
 (a)
Past Due Serviced Wholesale Notes (Three-Month Total) at the end of any month (determined substantially in accordance with practices, including policies as to extensions and rewrites, in effect as of the Effective Date), expressed as a percentage of
Serviced Wholesale Notes (Three-Month Total) at the end of such month, to exceed 5%; or 
  
 (b) net losses of the US Borrower (determined on the basis of the US Borrower’s normal practice) on Serviced Wholesale Notes recognized during any period of four consecutive fiscal quarters to exceed 0.5% of
Serviced Wholesale Notes liquidated during the same period. 
  
 For purposes of
clause (b) of this Section, Serviced Wholesale Notes liquidated during any period shall be determined on the same basis as was used in determining the statistics as to “Percent net losses (recoveries) to liquidations” for “Wholesale
notes” included under “Five Year Summary of Financial and Operating Data” in the 2004 Annual Report. 
  

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 SECTION 8.11. Serviced Retail Portfolio Quality. The US Borrower will not permit: 
  
 (a) Past Due Serviced Retail Notes (Three-Month Total) at the end of any
month (determined substantially in accordance with practices, including policies as to extensions and rewrites, in effect as of the Effective Date), expressed as a percentage of Serviced Retail Notes (Three-Month Total) at the end of such month, to
exceed 3%; or 
  
 (b) the Combined Retail Losses to Liquidations
Ratio to exceed 6% at any time. 
  
 For purposes of clause (b) of this Section:

  
 (i) “Combined Retail Losses to
Liquidations Ratio” means, as of any date, the ratio (expressed as a percentage) of (A) the sum of (1) Net Losses on Serviced Retail Notes for the period of twelve consecutive months ending on the last day of the then most recently ended month,
plus (2) the net losses of International (determined on the basis of International’s normal practice) on Serviced Retail Notes for such period to (B) Serviced Retail Liquidations for such period; 
  
 (ii) “Net Losses on Serviced Retail Notes” means,
for any period, the net credit losses of the US Borrower (determined on the basis of the US Borrower’s normal practice with the benefit of rights of recourse to International and dealers and other obligors and to reserves the US Borrower
maintains with regard to dealers) on Serviced Retail Notes for such period; and 
  
 (iii) “Serviced Retail Liquidations” means liquidations determined on the same basis as in the supplementary financial data
included in the 2004 Annual Report. 
  
 SECTION 8.12. Sales and
Leasebacks. The US Borrower will not, and will not permit any of its Subsidiaries to, enter into any arrangement with any Person providing for the leasing by the US Borrower or any of its Subsidiaries of real or personal property that has been
or is to be sold or transferred by, the US Borrower or any of its Subsidiaries, as applicable, to such Person or to any other Person to whom funds have been or are to be advanced by such Person on the security of such property or rental obligations
of, the US Borrower or any of its Subsidiaries, as applicable, except in connection with Qualified Securitization Transactions. 
  
 SECTION 8.13. Changes in Fiscal Periods. The US Borrower will not permit its fiscal year to end on a day other than October 31 or change its method
of determining fiscal quarters. 
  
 ARTICLE IX 
  
 EVENTS OF DEFAULT 
  
 If any of the following events (each, an “Event of Default”)
shall occur: 
  
 (a) any Borrower shall fail to pay any principal
of any Loan or any reimbursement obligation in respect of any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
  

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 (b) any Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an
amount referred to in clause (a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of five Business Days; 

 
 (c) any representation or warranty made or deemed made by or on behalf of
the Parent, the US Borrower or any of their respective Subsidiaries in or in connection with this Agreement or any other Loan Document or any amendment or modification thereof, or in any report, certificate, financial statement or other document
furnished pursuant to or in connection with this Agreement or any such other Loan Document or any amendment or modification thereof, shall prove to have been incorrect in any material respect when made or deemed made (for the avoidance of doubt, the
representations and warranties set forth in Section 5.04(d) and Section 5.14(a) are made or deemed made solely on and as of the Effective Date) and, if the consequences of such representation or warranty being incorrect shall be susceptible of
remedy in all material respects, such consequences shall not be remedied in all material respects within 10 Business Days after the Parent, the US Borrower or its respective Subsidiary becomes aware or is advised that such representation or warranty
was incorrect in any material respect; 
  
 (d) the US Borrower
shall fail to observe or perform any covenant, condition or agreement contained in Section 7.02, 7.03, or 7.09, or in Article VIII; 
  
 (e) the US Borrower shall fail to observe or perform any covenant, condition or agreement contained in this Agreement (other than those specified in
clause (a), (b), or (d) of this Article) or any other Loan Document, and such failure shall continue unremedied for a period of 30 days after notice thereof from the Administrative Agent (given at the request of any Lender) to the US Borrower;

  
 (f) at any time when any Mexican Obligations are outstanding,
the Parent Guarantee or the Guarantee contained in Article XI hereunder shall cease, for any reason, to be in full force and effect or the Parent, the US Borrower or any Affiliate of the Parent or the US Borrower shall so assert and such matter
shall continue unremedied for a period of 10 days after notice thereof from the Administrative Agent (given at the request of any Lender) to the Parent or the US Borrower, as applicable; 
  
 (g) any Borrower shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of
any Material Indebtedness, when and as the same shall become due and payable and such failure shall continue beyond the period of grace, if any, provided in the instrument or agreement under which such Material Indebtedness was created; 

 
 (h) any event or condition occurs that (A) results in any Material
Indebtedness becoming due prior to its scheduled maturity or (B) solely in the case of the US Borrower, enables or permits (with or without the giving of notice, the lapse of time or both) the holder or 
  

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 holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to
become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided that this paragraph (h) shall not apply to secured Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets securing such Indebtedness; 
  
 (i) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i) liquidation, reorganization, concurso mercantil, quiebra or other relief in respect of the Parent, International, any
Borrower or any of its Subsidiaries or its debts, or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver,
trustee, custodian, sequestrator, conciliador, síndico, conservator or similar official for the Parent, International, any Borrower or any of its Subsidiaries or for a substantial part of its assets, and, in any such case, such
proceeding or petition shall continue undismissed for 60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
  
 (j) the Parent, International, any Borrower or any of its Subsidiaries shall (i) voluntarily commence any proceeding or file any petition seeking
liquidation, reorganization, concurso mercantil, quiebra or other relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or petition described in clause (j) of this Article, (iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conciliador, síndico,
conservator or similar official for the Parent, International, any Borrower or any of its Subsidiaries or for a substantial part of its assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for the purpose of effecting any of the foregoing; 
  
 (k) the Parent, International, any Borrower or any of its Subsidiaries shall become unable, admit in writing or fail generally to pay its debts as they
become due; 
  
 (l) one or more judgments for the payment of money
in an aggregate amount in excess of $10,000,000 shall be rendered against the US Borrower, any of its Subsidiaries or any combination thereof and the same shall remain undischarged for a period of 30 consecutive days during which execution shall not
be effectively stayed, or any action shall be legally taken by a judgment creditor to attach or levy upon any assets of the US Borrower or any of its Subsidiaries to enforce any such judgment; 
  
 (m) an ERISA Event shall have occurred that, in the opinion of the Required
Lenders, when taken together with all other ERISA Events that have occurred, could reasonably be expected to result in a Material Adverse Effect; or 
  
 (n) a Change in Control shall occur; 
  
 (o) International or the Parent shall fail to observe or perform any of its obligations contained in the Parents’ Side Agreement for a period of 30
days after notice of such failure shall have been given to the US Borrower, International and the Parent by the 
  

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 Administrative Agent at the request of any Lender, or the Parents’ Side Agreement shall fail, at any time and for
any reason, to be in full force and effect or International or the Parent shall so assert in writing; 
  
 (p) International shall (i) cancel or terminate the Master Intercompany Agreement, or Article II, VI, VII or VIII (other than paragraph C) thereof, (ii)
fail to make any payment payable by it to the US Borrower under the Master Intercompany Agreement, the Tax Allocation Agreement, or otherwise, within ten Business Days after such payment is due or (iii) fail to observe or perform any of its other
covenants or obligations under the Master Intercompany Agreement for a period of 30 days after notice of such failure shall have been given to the US Borrower and International by the Administrative Agent at the request of any Lender; 
  
 (q) either the Parent or International shall fail to pay when due, or within
any applicable grace period, any principal of or interest on its Indebtedness for Borrowed Money which exceeds $50,000,000 in aggregate principal or face amount; or 
  
 (r) any Indebtedness for Borrowed Money of either the Parent or International which exceeds $50,000,000 in aggregate
principal or face amount shall become due prior to its stated maturity, or any event or circumstance shall occur which permits one or more Persons other than the Parent or International, as the case may be, to cause such Indebtedness for Borrowed
Money to become due prior to its stated maturity; 
  
 then, and in every such
event relating to the US Borrower or its Subsidiaries, the Parent or International (other than an event described in clause (i) or (j) of this Article), and at any time thereafter during the continuance of such event, the Administrative Agent may,
and at the request of the Required Lenders shall, by notice to the US Borrower, take either or both of the following actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately,
and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which case any principal not so declared to be due and payable may thereafter be declared to be due and payable), and thereupon the principal of the Loans so
declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder, shall become due and payable immediately, without presentment, demand, protest or other notice of any kind,
all of which are hereby waived by each Borrower; in the case of any event with respect to the US Borrower or its Subsidiaries (other than the Securitization Subsidiaries), the Parent or International described in clause (i) or (j) of this Article,
the Commitments shall automatically terminate and the principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder, shall automatically become due and payable,
without presentment, demand, protest or other notice of any kind, all of which are hereby waived by each Borrower; and in the case of any such event relating to any Mexican Borrower, the Administrative Agent may, and at the request of the Required
Lenders shall, by notice to the US Borrower, terminate the Commitments with respect to such Mexican Borrower and declare the Loans of such Mexican Borrower then outstanding to be due and payable in whole or in part, in which case any principal not
so declared to be due and payable may thereafter be declared to be due and payable. 
  

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 ARTICLE X 
  
 THE ADMINISTRATIVE AGENT 
  
 Each of the Lenders hereby irrevocably appoints the Administrative Agent as its agent and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof, together with such actions and powers as are reasonably incidental thereto. 
  
 The bank serving as the Administrative Agent hereunder shall have the same rights and powers in its capacity as a Lender as
any other Lender and may exercise the same as though it were not the Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with any Borrower or any Subsidiary or
other Affiliate thereof as if it were not the Administrative Agent hereunder. 
  
 The Administrative Agent shall not have any duties or obligations except those expressly set forth herein and the other Loan Documents. Without limiting the generality of the foregoing, (a) the Administrative Agent
shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby that the Administrative Agent is required to exercise in writing by the Required Lenders, and (c) except as expressly set forth herein, the Administrative Agent shall not
have any duty to disclose, and shall not be liable for the failure to disclose, any information relating to any Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders or in the absence of its own gross negligence or willful misconduct. The
Administrative Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Administrative Agent by the relevant Borrower or a Lender, and the Administrative Agent shall not be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement, (ii) the contents of any certificate, report or other document delivered hereunder or in connection herewith,
(iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein, (iv) the validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement, instrument or document,
or (v) the satisfaction of any condition set forth in Article VI or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the Administrative Agent. 
  
 The Administrative Agent shall be entitled to rely upon, and shall not incur
any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Administrative Agent also may rely
upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrowers), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  

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 The Administrative Agent may perform any and all its duties and exercise its rights and powers by or
through any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory
provisions of the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit
facilities provided for herein as well as activities as Administrative Agent. 
  
 Subject to the appointment and acceptance of a successor Administrative Agent as provided in this paragraph, the Administrative Agent may resign at any time by notifying the Lenders and the Borrowers. Upon any such
resignation, the Required Lenders shall have the right, with the consent of the US Borrower, to appoint a successor. If no successor shall have been so appointed by the Required Lenders and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent which shall be a Lender with an office in New York, New York, or an
Affiliate of any such bank. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers, privileges and duties of the retiring Administrative
Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrowers to a successor Administrative Agent shall be the same as those payable to its predecessor unless otherwise
agreed between the Borrowers and such successor. After the Administrative Agent’s resignation hereunder, the provisions of this Article and Section 12.03 shall continue in effect for its benefit in respect of any actions taken or omitted to be
taken by it while it was acting as Administrative Agent. 
  
 Each
Lender acknowledges that it has, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Administrative Agent or any other Lender and based on such documents and information as it shall from time to time deem appropriate, continue to
make its own decisions in taking or not taking action under or based upon this Agreement, any related agreement or any document furnished hereunder or thereunder. 
  
 ARTICLE XI  
  
 GUARANTEE 
  
 SECTION 11.01. Guarantee. To induce the Lenders to execute and deliver this Agreement and to make Mexican Loans, and in consideration thereof, the
US Borrower hereby unconditionally and irrevocably guarantees, as primary obligor and joint and several co-debtor 
  

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 and not merely as surety, to the Administrative Agent, the Lenders and their successors, indorsees, transferees and
assigns, the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of the Mexican Obligations, and the US Borrower further agrees to pay the expenses which may be paid or incurred by the
Administrative Agent or the Lenders in collecting any or all of the Mexican Obligations and/or enforcing any rights under this Article XI or under the Mexican Obligations in accordance with this Article XI. The guarantee contained in this Article XI
shall remain in full force and effect until the Mexican Obligations are paid in full. Anything herein to the contrary notwithstanding, the maximum liability of the US Borrower under this Article XI shall in no event exceed the amount which can be
guaranteed by the US Borrower under applicable federal and state laws relating to the insolvency of debtors. 
  
 SECTION 11.02. Waiver of Subrogation. Notwithstanding any payment or payments made by the US Borrower in respect of the Mexican Obligations or any
setoff or application of funds of the US Borrower by the Administrative Agent or any Lender, until payment in full of the Mexican Obligations, the US Borrower shall not be entitled to be subrogated to any of the rights of the Administrative Agent or
the Lenders against the Borrowers or any collateral security or guarantee or right of offset held by the Administrative Agent or any Lender for the payment of the Mexican Obligations, nor shall the US Borrower seek any reimbursement from any Mexican
Borrower in respect of payments made by the US Borrower hereunder. 
  
 SECTION 11.03. Modification of Mexican Obligations. The US Borrower hereby consents that, without the necessity of any reservation of rights against the US Borrower and without notice to or further assent by the US Borrower (except
as otherwise provided in this Agreement), (a) any demand for payment of the Mexican Obligations made by the Administrative Agent or any Lender may be rescinded by the Administrative Agent or such Lender, and the Mexican Obligations continued, (b)
the Mexican Obligations, or the liability of any other party upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended,
amended, modified, accelerated, compromised, waived, surrendered or released by the Administrative Agent or any Lender, (c) this Agreement may be amended, modified, supplemented or terminated, in whole or in part, as the Administrative Agent or the
Lenders may deem advisable from time to time, and (d) to the extent permitted by applicable law, any collateral security or guarantee or right of offset at any time held by the Administrative Agent or any Lender, for the payment of the Mexican
Obligations may be sold, exchanged, waived, surrendered or released, all without the necessity of any reservation of rights against the US Borrower and without notice to or further assent by the US Borrower, which will remain bound hereunder
notwithstanding any such renewal, extension, modification, acceleration, compromise, amendment, supplement, termination, sale, exchange, waiver, surrender or release. The Administrative Agent and the Lenders shall not have any obligation to protect,
secure, perfect or insure any collateral security document or property subject thereto at any time held as security for the Mexican Obligations. When making any demand hereunder against the US Borrower, the Administrative Agent or the Lenders may,
but shall be under no obligation to, make a similar demand on any other party or any other guarantor, and any failure by the Administrative Agent or any Lender to make any such demand or to collect any payments from any Borrower or any such other
guarantor shall not relieve the US Borrower of its obligations or liabilities hereunder 
  

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 and shall not impair or affect the rights and remedies, express or implied, or as a matter of law, of the Administrative
Agent or the Lenders against the US Borrower. For the purposes of this Section 11.03 “demand” shall include the commencement and continuance of any legal proceedings. 
  
 SECTION 11.04. Waiver by the US Borrower. The US Borrower waives the benefits of any and all notice of the creation,
renewal, extension or accrual of the Mexican Obligations and notice of or proof of reliance by the Administrative Agent or the Lenders upon the guarantee contained in this Article XI or acceptance of the guarantee contained in this Article XI, and
the Mexican Obligations, and any of them, shall conclusively be deemed to have been created, contracted, continued or incurred in reliance upon the guarantee contained in this Article XI, and all dealings between the US Borrower and the
Administrative Agent or the Lenders shall likewise be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Article XI. The US Borrower waives diligence, presentment, protest, demand for payment and
notice of default or nonpayment to or upon any Mexican Borrower or the US Borrower with respect to any relevant Mexican Obligations. This guarantee shall be construed as a continuing, absolute and unconditional guarantee of payment without regard to
the validity, regularity or enforceability of this Agreement or the Mexican Obligations, including, without limitation, any collateral security or guarantee therefor or right of offset with respect thereto at any time or from time to time held by
the Administrative Agent or any Lender and without regard to any defense, setoff or counterclaim which may at any time be available to or be asserted by any Borrower against the Administrative Agent or any Lender, or any other Person, or by any
other circumstance whatsoever (with or without notice to or knowledge of any Mexican Borrower or the US Borrower) which constitutes, or might be construed to constitute, an equitable or legal discharge of any Mexican Borrower for any of the Mexican
Obligations, or of the US Borrower under the guarantee contained in this Article XI in bankruptcy or in any other instance, and the obligations and liabilities of the US Borrower hereunder shall not be conditioned or contingent upon the pursuit by
the Administrative Agent or any Lender or any other Person at any time of any right or remedy against the relevant Mexican Borrower or against any other Person which may be or become liable in respect of any Mexican Obligations or against any
collateral security or guarantee therefor or right of offset with respect thereto. The guarantee contained in this Article XI shall remain in full force and effect and be binding in accordance with and to the extent of its terms upon the US Borrower
and the successors and assigns thereof, and shall inure to the benefit of the Lenders and their successors, indorsees, transferees and assigns, until the Mexican Obligations shall have been satisfied in full, notwithstanding that from time to time
during the term of this Agreement the Mexican Borrowers may be free from any Mexican Obligations. 
  
 SECTION 11.05. Reinstatement. This guarantee shall continue to be effective, or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Mexican Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the US Borrower or any Mexican
Borrower or upon or as a result of the appointment of a receiver, intervenor, síndico or conservator of, or trustee or similar officer for, the US Borrower, any Mexican Borrower or any substantial part of their respective property, or
otherwise, all as though such payments had not been made. 
  

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 ARTICLE XII 
  
 MISCELLANEOUS 
  
 SECTION 12.01. Notices. (a) Except in the case of notices and other communications expressly permitted to be given by telephone, all notices,
requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by telecopy), and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered, or three
Business Days after being deposited in the mail, postage prepaid, or, in the case of telecopy notice, when received, addressed as follows in the case of the Borrowers, the Administrative Agent, the Issuing Bank and the Swingline Lender, and as set
forth its Administrative Questionnaire delivered to the Administrative Agent in the case of the Lenders, or to such other address as may be hereafter notified by the respective parties hereto: 
  

			
	(i) if to the Borrowers:	 	 Navistar Financial Corporation
 425 N. Martingale
Road
 Schaumburg, IL 60173
 Attention:
 Treasurer Telecopy: 630-753-4090
  
 Servicios Financieros Navistar, S.A. de C.V.,
 Sociedad Financiera de Objeto Limitado
 Ejército Nacional 904-11° piso
 Palmas Polanco
 11510 México, D.F.
 Mexico
 Telephone: (525) 262-6260
 Fax: (525) 395-6452
 Attention: General Director
  
 Arrendadora Financiera Navistar, S.A. de
 C.V., Organizacion Auxiliar del Credito
 Ejército Nacional 904-11° piso
 Palmas Polanco
 11510 México, D.F.
 Mexico
 Telephone: (525) 262-6260
 Fax: (525) 395-6452
 Attention: General Director
  
 Navistar Comercial, S.A. de C.V.,
 Ejército Nacional 904-11° piso
 Palmas Polanco
 11510 México, D. F.
 Mexico
 Telephone: (525) 262-6260
 Fax: (525) 395-6452
 Attention: General Director

  

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	(ii) if to the Administrative Agent:	 	 JPMorgan Chase Bank, N.A.
 1111 Fannin Street,
10th Floor
 Houston,
Texas 77002-6925
 Attention: Loan and Agency Services
 Telecopy:
713-750-2938

		
	(iii) if to the Issuing Bank:	 	 JPMorgan Chase Bank, N.A.
 270 Park Avenue New
York,
 New York 10017
 Attention: Loan and Agency
Services
 Telecopy: 212-552-5650

		
	(iv) if to the Swingline Lender:	 	 JPMorgan Chase Bank, N.A.
 270 Park Avenue

New York, New York 10017
 Attention: Loan and Agency Services
 Telecopy: 212-552-5650

  
 (b) The Administrative
Agent and the Lenders are authorized to rely on instructions received by telephone from persons they believe in good faith to be authorized to give such instructions hereunder. Neither the Administrative Agent nor any Lender shall incur any
liability to any Borrower or any other person as a result of any act or omission by it in accordance with such instructions. 
  
 SECTION 12.02. Waivers; Amendments. (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in exercising any right or
power hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or
the exercise of any other right or power. The rights and remedies of the Administrative Agent, the Issuing Bank and the Lenders hereunder are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of this Agreement or consent to any departure by any Borrower therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time. 
  
 (b) Neither this Agreement, any other Loan Document nor any provision thereof may be waived, amended or modified except pursuant to an agreement or
agreements in writing entered into by the Borrowers and the Required Lenders or by the Borrowers and the Administrative Agent with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any
Lender without the written consent of such 
  

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 Lender, (ii) forgive the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon, or
reduce any fees payable hereunder, without the written consent of each Lender affected thereby, (iii) postpone the scheduled date of payment of the principal amount of any Loan or LC Disbursement, or any interest thereon, or any fees payable
hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without the written consent of each Lender affected thereby, (iv) change Section 4.13(a), (b) or (c) in a manner
that would alter the pro rata sharing of payments required thereby, without the written consent of each Lender, (v) change any of the provisions of this Section or the definition of “Required Lenders” or “Supermajority Lenders”
or any other provision hereof specifying the number or percentage of Lenders required to waive, amend or modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender, (vi) reduce
the percentage specified in the definition of Majority Facility Lenders with respect to any Facility without the written consent of all Lenders under such Facility (vii) release the US Borrower from its Guarantee obligations set forth in Article XI
or the Parent from its obligations under the Parent Guarantee, or modify Section 12.19 in a manner adverse to the Lenders, in each case without the written consent of the Supermajority Lenders, (viii) if the Liens granted pursuant to the Security
Documents shall be in effect, release all or substantially all of the assets of the US Borrower subject to such Liens (other than as permitted under Section 12.19), without the written consent of each Lender; or (ix) amend, modify or otherwise
affect the rights or duties of the Administrative Agent, the Issuing Bank or the Swingline Lender hereunder without the prior written consent of the Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be. 
  
 SECTION 12.03. Expenses; Indemnity; Damage Waiver. (a) Each Borrower
shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent and the Joint Lead Arrangers, including the reasonable fees, charges and disbursements of Simpson Thacher & Bartlett LLP and Ritch, Heather y Mueller, S.C.,
in connection with the syndication of the credit facilities provided for herein, the preparation and administration of this Agreement or any amendments, modifications or waivers of the provisions hereof (whether or not the transactions contemplated
hereby or thereby shall be consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii)
all reasonable out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender, including the reasonable fees, charges and disbursements of one firm of counsel for the Administrative Agent, the Issuing Bank and the
Lenders in each relevant jurisdiction, in connection with the enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued
hereunder, including in connection with any workout, restructuring or negotiations in respect thereof. 
  
 (b) Each Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each
such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any
Indemnitee, incurred by or asserted against any Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement or any agreement or instrument contemplated hereby, the performance by the parties
hereto of 
  

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 their respective obligations hereunder or the consummation of the Transactions or any other transactions contemplated
hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not
strictly comply with the terms of such Letter of Credit) or (iii) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of
whether any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses have resulted from the gross negligence or
willful misconduct of such Indemnitee. 
  
 (c) To the extent that
the Borrowers fail to pay any amount required to be paid by it to the Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Administrative Agent, the
Issuing Bank or the Swingline Lender, as the case may be, such Lender’s US Commitment Percentage (determined as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred by or asserted against the Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such. 
  
 (d) To the extent permitted by applicable law, each Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this
Agreement or any agreement or instrument contemplated hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 
  
 (e) All amounts due under this Section shall be payable promptly after written demand therefor. 
  
 (f) No Borrower shall indemnify any Person for any claim whatsoever against
any Securitization Subsidiary. 
  
 SECTION 12.04. Successors
and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that each Borrower may not assign or otherwise transfer
any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by such Borrower without such consent shall be null and void). Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative Agent, the
Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  
 (b) Any Lender may assign to one or more assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of its
US Commitment 
  

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 and the US Loans at the time owing to it or, if applicable, all or a portion of its Mexican Commitment and the Mexican
Loans at the time owing to it, which assignments may be made on a non pro rata basis); provided that (i) each Borrower (except in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund (as defined below) and
except when a payment or bankruptcy Event of Default has occurred and is continuing), the Administrative Agent (except in the case of an assignment of a Tranche A Term Loan to a Lender, an Affiliate of a Lender or an Approved Fund), and, in the case
of an assignment of all or a portion of a US Revolving Commitment or any Lender’s obligations in respect of its LC Exposure or Swingline Exposure, the Issuing Bank and the Swingline Lender must give their prior written consent to such
assignment (which consent shall not be unreasonably withheld), (ii) except in the case of an assignment to a Lender, an Affiliate of a Lender or an Approved Fund, if any US Lender assigns a part of its rights and obligations under this Agreement in
respect of its US Revolving Loans and/or US Revolving Commitment to an assignee, such US Lender shall assign proportionate interests in (A) its participations in the Letters of Credit and other rights and obligations hereunder in respect of the
Letters of Credit, (B) its participations in the Swingline Loans and other rights and obligations hereunder in respect of the Swingline Loans and (C) its Mexican Revolving Loans and Mexican Commitment to such assignee (provided, that with the
consent of the US Borrower and the Administrative Agent, a US Lender may assign portions of its US Revolving Commitment without assigning a proportionate share of its Mexican Commitment if either (x) such proportionate share of such Mexican
Commitment shall be assumed by another Lender or (y) if the US Borrower so agrees, such proportionate share of such Mexican Commitment shall be terminated), (iii) except in the case of an assignment to a Lender, an Affiliate of a Lender, an Approved
Fund or an assignment of the entire remaining amount of the assigning Lender’s Commitment or Loans, the amount of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as of the date the Assignment and
Acceptance with respect to such assignment is delivered to the Administrative Agent) shall not be less than $15,000,000 (or, in the case of the Tranche A Term Loans, $1,000,000) unless each Borrower and the Administrative Agent otherwise consent,
(iv) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement, except that clause (iv) shall not apply to rights in respect of outstanding
Competitive Loans, (v) the parties to each assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance, together with a processing and recordation fee of $3,500 (except in the case of an assignment to a Lender, an
Affiliate of a Lender or an Approved Fund), and (vi) the assignee, if it shall not be a Lender, shall deliver to the Administrative Agent an Administrative Questionnaire. Upon acceptance and recording pursuant to paragraph (d) of this Section, from
and after the effective date specified in each Assignment and Acceptance, the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Acceptance, have (in addition to any such rights and
obligations theretofore held by it) the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance, be released from its obligations
under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the
benefits of Section 4.10, Section 4.11, Section 4.12 and Section 12.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as
a sale by such Lender of a participation in such rights and obligations in accordance with paragraph (e) of this Section. 
  

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 For the purposes of this Section 12.04, “Approved Fund” means any Person (other than a natural
person) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course of its business and that is administered or managed by (a) a Lender, (b) an affiliate of a Lender or (c) an
entity or an affiliate of an entity that administers or manages a Lender. 
  
 (c) The Administrative Agent, acting for this purpose as an agent of the Borrowers, shall maintain at one of its offices in The City of New York a copy of each Assignment and Acceptance delivered to it and a register
for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to time (the “Register”). The
entries in the Register shall be conclusive absent manifest error, and the Borrowers, the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. 
  
 (d) Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a
Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and
Acceptance and record the information contained therein in the Register. No assignment shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 
  
 (e) Any Lender may, without the consent of the Borrowers, the Administrative
Agent, the Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a
portion of its Commitment and the Loans owing to it); provided that (i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrowers, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under
this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section
12.02(b) that affects such Participant. Subject to paragraph (f) of this Section, each Borrower agrees that each Participant shall be entitled to the benefits of Section 4.10, Section 4.11, and Section 4.12 to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to paragraph (b) of this Section. 
  

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 (f) A Participant shall not be entitled to receive any greater payment under Section 4.10 or Section 4.12
than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrowers’ prior written consent. A Participant
that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 4.12 unless the Borrowers are notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrowers,
to comply with Section 4.12(d) as though it were a Lender. 
  
 (g)
Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including any such pledge or assignment to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such assignee for such Lender
as a party hereto. 
  
 (h) Notwithstanding anything to the
contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such in writing from time to time by the Granting Lender to the Administrative
Agent and the Borrowers, the option to provide to the US Borrower or the Mexican Borrowers, as the case may be, all or any part of any Loan that such Granting Lender would otherwise be obligated to make to the US Borrower or the Mexican Borrowers,
as the case may be, pursuant to this Agreement; provided that (i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC elects not to exercise such option or otherwise fails to provide all or any part of
such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a Loan by an SPC hereunder shall utilize the US Commitment or the Mexican Commitment, as the case may be, of the Granting Lender to the
same extent, and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all liability for which shall remain with the
Granting Lender). In furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that, prior to the date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute against, or join any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of
the United States or any state thereof. In addition, notwithstanding anything to the contrary in this Section 12.04(h), any SPC may (A) with notice to, but without the prior written consent of, the Borrowers and the Administrative Agent and without
paying any processing fee therefor, assign all or a portion of its interests in any Loans to the Granting Lender, or with the prior written consent of the Borrowers and the Administrative Agent (which consent shall not be unreasonably withheld) to
any financial institutions providing liquidity and/or credit support to or for the account of such SPC to support the funding or maintenance of Loans, and (B) disclose on a confidential basis any non-public information relating to its Loans to any
rating agency, commercial paper dealer or provider of any surety, guarantee or credit or liquidity enhancement to such SPC; provided that non-public information with respect to any Borrower may be disclosed only with such Borrower’s
consent which will not be unreasonably withheld. This paragraph (h) may not be amended without the written consent of any SPC with Loans outstanding at the time of such proposed amendment. 
  

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 SECTION 12.05. Survival. All covenants, agreements, representations and warranties made by the
Borrowers herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this
Agreement and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or any Lender may have had
notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any accrued interest on any Loan or any fee or any
other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or terminated. The provisions of Section 4.10, Section 4.11, Section 4.12 and Section 12.03
and Article X shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the
termination of this Agreement or any provision hereof. 
  
 SECTION
12.06. Counterparts; Integration. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a
single contract. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement and any separate letter agreements with
respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject
matter hereof. This agreement amends and restates in its entirety the terms and provisions of the Existing Credit Agreement and supersedes and replaces the terms thereof in their entirety. 
  
 SECTION 12.07. Severability. Any provision of this Agreement held to
be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  
 SECTION 12.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from
time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final but excluding deposits designated to payroll accounts, any trust accounts or any accounts
related to any Qualified Securitization Transaction) at any time held and other indebtedness at any time owing by such Lender to or for the credit or the account of any Borrower against any of and all the obligations of such Borrower now or
hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of each Lender under this Section are
in addition to other rights and remedies (including other rights of setoff) which such Lender may have. 
  

 89 

 SECTION 12.09. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 
  
 SECTION 12.10. Submission To Jurisdiction; Waivers. Each party hereto hereby irrevocably and unconditionally: 
  
 (a) submits for itself and its property in any legal action or proceeding
relating to this Agreement, or for recognition and enforcement of any judgment in respect thereof, to the general jurisdiction of the courts of the State of New York in the Borough of Manhattan, City of New York, the courts of the United States for
the Southern District of New York, and appellate courts from any thereof and to the courts of its own corporate domicile in respect of any actions brought against it as a defendant in any action or proceeding arising out of this Agreement;

  
 (b) consents that any such action or proceeding may be brought
in such courts and waives any objection (including any objection based on place of residence or domicile) that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought
in an inconvenient court and agrees not to plead or claim the same; 
  
 (c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the US Borrower (in the case of
each Mexican Borrower, as such Mexican Borrower’s agent for service of process in New York City) or to any other party at its address set forth in Section 12.01 or at such other address of which the Administrative Agent shall have been notified
pursuant thereto; 
  
 (d) agrees that nothing herein shall affect
the right to effect service of process in any other manner permitted by law; and 
  
 (e) waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential
damages. 
  
 SECTION 12.11. Acknowledgments. Each Borrower
hereby acknowledges that: 
  
 (a) it has been advised by counsel
in the negotiation, execution and delivery of this Agreement; 
  
 (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Borrower arising out of or in connection with this Agreement, and the relationship between the Administrative Agent and Lenders, on one
hand, and each Borrower, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and 
  
 (c) no joint venture is created hereby or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Borrowers and
the Lenders. 
  

 90 

 SECTION 12.12. WAIVERS OF JURY TRIAL. EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH
OF THE LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN. 
  
 SECTION 12.13. Headings. Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 SECTION 12.14. Confidentiality. Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal counsel and other advisors involved with this financing (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent requested by any regulatory authority, (c) to the
extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this
Agreement or the enforcement of rights hereunder, (f) subject to an agreement containing provisions substantially the same as those of this Section, to any assignee of or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement, (g) with the consent of the relevant Borrower or (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to the
Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than the relevant Borrower. For the purposes of this Section, “Information” means all information received from such Borrower
relating to such Borrower or its business, other than any such information that is available to the Administrative Agent, the Issuing Bank or any Lender on a nonconfidential basis prior to disclosure by such Borrower; provided that, in the
case of information received from such Borrower after the date hereof, such information is identified at the time of delivery as confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information. 
  
 SECTION 12.15. Interest Rate Limitation. Notwithstanding anything
herein to the contrary, if at any time the interest rate applicable to any Loan, together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall
exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such
Loan hereunder, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of
the operation of this Section shall be cumulated and the interest and Charges payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with
interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been received by such Lender. 
  

 91 

 SECTION 12.16. Waiver of Immunities. To the extent permitted by applicable law, if any Borrower
has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from jurisdiction of any court or from set-off or any legal process (whether service or notice, attachment prior to judgment, attachment in
aid of execution of judgment, execution of judgment or otherwise) with respect to itself or any of its property, such Borrower hereby irrevocably waives and agrees not to plead or claim such immunity in respect of its obligations under this
Agreement. Each Borrower agrees that the waivers set forth above shall have the fullest extent permitted under the Foreign Sovereign Immunities Act of 1976 of the United States of America and are intended to be irrevocable and not subject to
withdrawal for purposes of such Act. 
  
 SECTION 12.17.
Judgment Currency. The obligation of the Borrowers hereunder to make payments in Dollars shall not be discharged or satisfied by any tender or recovery pursuant to any judgment expressed in or converted into any currency other than Dollars
except to the extent to which such tender or recovery shall result in the effective receipt by the Lenders of the full amount of Dollars expressed to be payable hereunder, and the Borrowers shall indemnify the Lenders (as an alternative or
additional cause of action) for the amount (if any) by which such effective receipt shall fall short of the full amount of Dollars expressed to be payable hereunder and such obligation to indemnify shall not be affected by judgment being obtained
for any other sums due hereunder. 
  
 SECTION 12.18. Loan
Equalization; Loan Conversion. (a) On any Equalization Date each US Lender severally, unconditionally and irrevocably agrees that it shall purchase a participating interest in the Mexican Revolving Loans of each Mexican Lender that have not been
assumed by the US Borrower pursuant to clause (c) below to the extent necessary to cause the Revolving Credit Exposure Percentage of each US Lender, after giving effect to such purchase and sale of participating interests, to equal its US Commitment
Percentage (calculated immediately prior to the termination or expiration of the US Commitments). Each US Lender will immediately transfer to the Administrative Agent, in immediately available funds, the amounts of its participation(s), and the
proceeds of such participation(s) shall be distributed by the Administrative Agent to each Lender from which a participating interest is being purchased in the amount(s) provided for in the preceding sentence. Notwithstanding the foregoing, Export
Development Canada (“EDC”) shall not be required to purchase a participating interest in any Mexican Revolving Loans, and in lieu of EDC’s purchase of such participating interest, (i) JPMorgan Chase Bank, N.A.
(“JPMorgan Chase Bank”) will purchase the participating interest that would, but for this sentence, be required to be purchased by EDC, and (ii) simultaneously therewith, EDC will purchase from JPMorgan Chase Bank a participating
interest in the US Revolving Loans of JPMorgan Chase Bank in an amount equal to the amount of the participating interest purchased by JPMorgan Chase Bank in Mexican Revolving Loans pursuant to clause (i) of this sentence. 
  
 (b) To the extent any Taxes are required to be withheld from any amounts
payable by a Lender (the “First Lender”) to another Lender (the “Other Lender”) in connection with its participating interest in any Mexican Revolving Loan, each Borrower, with respect to the 
  

 92 

 relevant Loans made to it, shall be required to pay increased amounts to the Other Lender receiving such payments from
the First Lender to the same extent they would be required under Section 4.12 if such Borrower were making payments with respect to the participating interest directly to the Other Lender. For purposes of receipt by any Other Lender of payments
pursuant to this Section 12.18(b), such Other Lender shall not be required to comply with the requirements of Section 4.12(c). 
  
 (c) If an Event of Default or a Mexican Change in Control has occurred and is continuing, upon the notice of any Mexican Lender to the Borrowers, the US
Borrower (through the guarantee contained in Section 11) shall automatically be deemed to have assumed the Mexican Revolving Loans of such Mexican Lender outstanding on such date. 
  
 SECTION 12.19. Release of Liens. (a) Notwithstanding anything to the contrary contained herein or in any other Loan
Document, the Administrative Agent is hereby irrevocably authorized by each Lender (without requirement of notice to or consent of any Lender except as expressly required by Section 12.02) to take any action requested by the US Borrower having the
effect of releasing any assets from the Liens granted pursuant to the Security Documents (i) to the extent necessary to permit consummation of any transaction not prohibited by any Loan Document or that has been consented to in accordance with
Section 12.02 or (ii) under the circumstances described in paragraph (b) or (c) below. 
  
 (b) Upon the occurrence of an Upgrading, the assets subject to the Liens granted pursuant to the Security Documents (which, for purposes of this Section 12.19(b) only, shall not include the Blocked Account) shall be
released from such Liens; provided that in the event the Minimum Ratings are not maintained after the occurrence of an Upgrading, the US Borrower shall, as promptly as possible after the date such Minimum Ratings are not maintained (and in
any event within 30 days after such date), take all actions required to reinstate the Liens granted pursuant to the Security Documents to the extent provided for prior to the occurrence of the Upgrading. 
  
 (c) At such time as the Commitments have expired or been terminated, the
principal of and interest on each Loan and all fees payable hereunder shall have been paid in full, all LC Disbursements shall have been reimbursed and no Letters of Credit shall be outstanding, the assets subject to the Liens granted pursuant to
the Security Documents, and the Security Documents and all obligations (other than those expressly stated to survive such termination) of the Administrative Agent and the US Borrower under the Security Documents shall terminate, all without delivery
of any instrument or performance of any act by any Person. 
  
 SECTION 12.20. Intercompany Security Agreements. Notwithstanding anything to the contrary contained in the intercompany security agreements between the US Borrower as secured party and certain of its Subsidiaries as pledgors, the
parties thereto may amend, waive, modify, restate, discharge or terminate such intercompany security agreements without the consent of the Administrative Agent and the Lenders so long as after giving effect to any such amendment, waiver,
modification, restatement, discharge or termination, no Event of Default shall have occurred and be continuing. 
  

 93 

 SECTION 12.21. Blocked Account. (a) The US Borrower hereby grants to the Administrative Agent, for
the ratable benefit of the Lenders, a security interest in the Blocked Account, as collateral security for the prompt and complete payment and performance when due of the US Obligations. 
  
 (b) The US Borrower shall have no right to issue instructions or have any other right or ability to access or withdraw or
transfer funds from the Blocked Account without the prior written consent of the Administrative Agent, which consent shall be given if the US Borrower has delivered a certificate, substantially in the form of Exhibit J, certifying that the following
conditions have been met: (i) no Default or Event of Default shall have occurred and be continuing, (ii) the US Borrower represents and warrants that such funds shall be utilized (A) for normal operating expenses of the US Borrower and its
Subsidiaries consistent with the US Borrower’s and its Subsidiaries’ past business practices, (B) to purchase receivables in the normal course of business or (C) to make payments of permitted dividends consistent with the US
Borrower’s past business practices and (iii) the Cash Balance shall be less than $50,000,000. 
  
 (c) The Blocked Account Agreement may not be terminated without the consent of the Administrative Agent and the Required Lenders. 
  
 SECTION 12.22. USA PATRIOT Act. Each Lender hereby notifies each
Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), it may be required to obtain, verify and record information that identifies each Borrower, which information includes
the name and address of each Borrower and other information that will allow such Lender to identify each Borrower in accordance with said Act. 
  

 94 

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

			
	NAVISTAR FINANCIAL CORPORATION
		
	By	 	 /s/ Andrew J. Cederoth

	Name:	 	Andrew J. Cederoth
	Title:	 	Vice President and Treasurer
	
	ARRENDADORA FINANCIERA NAVISTAR, S.A. DE C.V., ORGANIZACIÓN AUXILIAR DEL CRÉDITO
		
	By	 	 /s/ Jose A. Chacon

	Name:	 	Jose A. Chacon
	Title:	 	Attorney-in-Fact
	
	SERVICIOS FINANCIEROS NAVISTAR, S.A. DE C.V., SOCIEDAD FINANCIERA DE OBJETO LIMITADO
		
	By	 	 /s/ Jose A. Chacon

	Name:	 	Jose A. Chacon
	Title:	 	Attorney-in-Fact
	
	NAVISTAR COMERCIAL, S.A. DE C.V.
		
	By	 	 /s/ Jose A. Chacon

	Name:	 	Jose A. Chacon
	Title:	 	Attorney-in-Fact

			
	 JPMORGAN CHASE BANK, N.A.,
 as Administrative
Agent and a Lender

		
	By	 	 /s/ Karen M. Sharf

	Name:	 	Karen M. Sharf
	Title:	 	Vice President
	
	 BANK OF AMERICA, N.A.,
 as Syndication Agent
and a Lender

		
	By	 	 /s/ Chas McDonell

	Name:	 	Chas McDonell
	Title:	 	SVP
	
	 THE BANK OF NOVA SCOTIA,
 as Documentation
Agent and a Lender

		
	By	 	 /s/ M.D. Smith

	Name:	 	M.D. Smith
	Title:	 	Agent Operations
	
	 CREDIT SUISSE, as a Lender
 Cayman Islands
Branch

		
	By	 	 /s/ Thomas Cantello

	Name:	 	Thomas Cantello
	Title:	 	Vice President
		
	By	 	 /s/ Karim Blasetti

	Name:	 	Karim Blasetti
	Title:	 	Associate

			
	UBS Loan Finance LLC, as a Lender
		
	By	 	 /s/ Wilfred V. Saint

	Name:	 	Wilfred V. Saint
	Title:	 	Director
		
	By	 	 /s/ Richard L. Tawow

	Name:	 	Richard L. Tawow
	Title:	 	Director
	
	THE BANK OF NOVA SCOTIA, as a Lender
		
	By	 	 /s/ M.D. Smith

	Name:	 	M.D. Smith
	Title:	 	Agent Operations
	
	CITIBANK, N.A., as a Lender
		
	By	 	 /s/ Paul L. Burraghs Jr.

	Name:	 	Paul L. Burraghs Jr.
	Title:	 	Director
	
	ROYAL BANK OF CANADA, as a Lender
		
	By	 	 /s/ Barton Lund

	Name:	 	Barton Lund
	Title:	 	Authorized Signatory

			
	 THE ROYAL BANK OF SCOTLAND PLC,
 as a
Lender

		
	By	 	 /s/ Maria Amaral-LeBlanc

	Name:	 	Maria Amaral-LeBlanc
	Title:	 	Senior Vice President
	
	 GOLDMAN SACHS CREDIT PARTNERS L.P.,
 as a
Lender

		
	By	 	 /s/ Williams W. Archer

	Name:	 	William W. Archer
	Title:	 	Managing Director
	
	 LASALLE BANK NATIONAL ASSOCIATION,
 as a
Lender

		
	By	 	 /s/ Peg Laughlin

	Name:	 	Peg Laughlin
	Title:	 	Vice President
	
	 EXPORT DEVELOPMENT CANADA,
 as a
Lender

		
	By	 	 /s/ Julian Deschatelets

	Name:	 	Julian Deschatelets
	Title:	 	Financial Services Manager
		
	By	 	 /s/ Janet Boyd

	Name:	 	Janet Boyd
	Title:	 	Associate

			
	 THE NORTHERN TRUST COMPANY,
 as a
Lender

		
	By	 	 /s/ Preeti Jain

	Name:	 	Preeti Jain
	Title:	 	Vice President
	
	 SUMITOMO MITSUI BANKING
 CORPORATION, as a
Lender

		
	By	 	 /s/ Yoshihiro Hyakutome

	Name:	 	Yoshihiro Hyakutome
	Title:	 	Joint General Manager
	
	BNP PARIBAS, as a Lender
		
	By	 	 /s/ Tom Ambrose

	Name:	 	Tom Ambrose
	Title:	 	Directors
		
	By	 	 /s/ Gaye Plunkett

	Name:	 	Gaye Plunkett
	Title:	 	Vice President
	
	THE BANK OF NEW YORK, as a Lender
		
	By	 	 /s/ John M. Lokay, Jr.

	Name:	 	John M. Lokay, Jr.
	Title:	 	Vice President

			
	COMERICA BANK, as a Lender
		
	By	 	 /s/ Michael T. Shea

	Name:	 	Michael T. Shea
	Title:	 	Vice PresidentAmended and Restated Security, Pledge and Trust Agreement, dated July 1, 2005

 Exhibit 10.02 
  

  
 AMENDED AND RESTATED 
 SECURITY, PLEDGE AND TRUST AGREEMENT 
  
 between 
  
 NAVISTAR FINANCIAL CORPORATION 
  
 and 
  
 DEUTSCHE BANK TRUST COMPANY AMERICAS, 
  
 Trustee 
  
 Dated as of July 1,
2005 
  

 TABLE OF CONTENTS 
  

					
	 	  	Page

	ARTICLE I DEFINITIONS	  	2
			
	            SECTION 1.01.	 	Definitions	  	2
		
	ARTICLE II THE SECURITY INTEREST	  	13
			
	            SECTION 2.01.	 	Grant of Security Interest	  	13
			
	            SECTION 2.02.	 	Release of Security Interest in Receivables	  	14
			
	            SECTION 2.03.	 	Continuing Liability of Navistar Financial and its Subsidiaries	  	15
			
	            SECTION 2.04.	 	Rights of Secured Parties Under Secured Instruments	  	15
			
	            SECTION 2.05.	 	Release of Collateral	  	15
			
	            SECTION 2.06.	 	Senior Liens	  	16
			
	            SECTION 2.07.	 	Additional Secured Obligations	  	19
		
	ARTICLE III REPRESENTATIONS AND WARRANTIES	  	20
			
	            SECTION 3.01.	 	Title to Collateral; Validity of Security Interest	  	20
			
	            SECTION 3.02.	 	Enforceability of Navistar Financial Receivables	  	22
			
	            SECTION 3.03.	 	Location of Collateral	  	22
			
	            SECTION 3.04.	 	Jurisdiction of Organization; Chief Executive Office	  	22
			
	            SECTION 3.05.	 	Subsidiaries	  	22
		
	ARTICLE IV COVENANTS	  	23
			
	            SECTION 4.01.	 	Filings and Further Assurances	  	23
			
	            SECTION 4.02.	 	Marketable Securities	  	25
			
	            SECTION 4.03.	 	Subsidiary Shares and Subsidiary Notes	  	28
			
	            SECTION 4.04.	 	Liens on the Collateral	  	30
			
	            SECTION 4.05.	 	Place of Business and Collateral	  	30
			
	            SECTION 4.06.	 	Insurance	  	31

  

 i 

					
	            SECTION 4.07.	 	Collection Procedures	  	31
			
	            SECTION 4.08.	 	Delivery of Secured Instruments	  	35
			
	            SECTION 4.09.	 	Information as to Secured Parties	  	35
			
	            SECTION 4.10.	 	Stamp and Other Similar Taxes	  	35
			
	            SECTION 4.11.	 	Filing Fees; Excise Taxes	  	35
			
	            SECTION 4.12.	 	Collateral Reports	  	35
			
	            SECTION 4.13.	 	Government Receivables	  	36
		
	ARTICLE V ACCELERATION OF SECURED OBLIGATIONS; REMEDIES	  	37
			
	            SECTION 5.01.	 	Notice of Acceleration	  	37
			
	            SECTION 5.02.	 	General Authority of the Trustee over the Collateral	  	37
			
	            SECTION 5.03.	 	Remedies; Rights Upon Acceleration of Secured Obligations	  	38
			
	            SECTION 5.04.	 	Right to Initiate Judicial Proceedings	  	40
			
	            SECTION 5.05.	 	Right to Appoint a Receiver	  	40
			
	            SECTION 5.06.	 	Instructions of Required Secured Parties	  	41
			
	            SECTION 5.07.	 	Remedies Not Exclusive	  	41
			
	            SECTION 5.08.	 	Waiver and Estoppel	  	42
			
	            SECTION 5.09.	 	Limitation by Law	  	42
		
	ARTICLE VI COLLATERAL ACCOUNT; DISTRIBUTIONS	  	42
			
	            SECTION 6.01.	 	The Collateral Account	  	42
			
	            SECTION 6.02.	 	Control of Collateral Account	  	43
			
	            SECTION 6.03.	 	Investment of Funds Deposited in Collateral Account	  	43
			
	            SECTION 6.04.	 	Application of Moneys	  	44
			
	            SECTION 6.05.	 	Application of Moneys Distributable to Indenture Trustees	  	46
			
	            SECTION 6.06.	 	Trustee’s Calculations	  	46
			
	            SECTION 6.07.	 	Pro Rata Sharing	  	47

  

 ii 

					
	ARTICLE VII THE TRUSTEE	  	47
			
	            SECTION 7.01.	 	Acceptance of Trust	  	47
			
	            SECTION 7.02.	 	Exculpatory Provisions	  	47
			
	            SECTION 7.03.	 	Delegation of Duties	  	48
			
	            SECTION 7.04.	 	Reliance by Trustee	  	48
			
	            SECTION 7.05.	 	Limitations on Duties of Trustee	  	49
			
	            SECTION 7.06.	 	Moneys to be Held in Trust	  	50
			
	            SECTION 7.07.	 	Resignation and Removal of the Trustee	  	50
			
	            SECTION 7.08.	 	Status of Successor Trustees	  	51
			
	            SECTION 7.09.	 	Merger of the Trustee	  	51
			
	            SECTION 7.10.	 	Co-Trustee; Separate Trustees	  	51
			
	            SECTION 7.11.	 	Treatment of Payee or Indorsee by Trustee; Representatives of Secured Parties	  	53
			
	            SECTION 7.12.	 	Compensation and Expenses	  	53
			
	            SECTION 7.13.	 	Indemnification	  	53
		
	ARTICLE VIII RELEASE OF COLLATERAL	  	54
			
	            SECTION 8.01.	 	Permitted Releases	  	54
			
	            SECTION 8.02.	 	Conditions to Termination of Security Interest and Release of All Collateral	  	54
			
	            SECTION 8.03.	 	Procedure for Termination and Release	  	55
		
	ARTICLE IX MISCELLANEOUS	  	55
			
	            SECTION 9.01.	 	Notices	  	55
			
	            SECTION 9.02.	 	No Waivers	  	56
			
	            SECTION 9.03.	 	Amendments, Supplements and Waivers	  	56
			
	            SECTION 9.04.	 	Headings	  	56
			
	            SECTION 9.05.	 	Severability	  	57

  

 iii 

					
	            SECTION 9.06.	 	Successors and Assigns	  	57
			
	            SECTION 9.07.	 	Currency Conversions	  	57
			
	            SECTION 9.08.	 	Governing Law	  	57
			
	            SECTION 9.09.	 	Counterparts	  	57
			
	            SECTION 9.10.	 	Termination	  	57

  

 iv 

					
	 Schedule A
	  	-	 	Permitted Receivables Sale Agreements
			
	 Schedule B
	  	-	 	List of Collection Banks, Lock-boxes, Suspense Accounts and Collection Accounts
			
	 Schedule C
	  	-	 	List of Proceeds Account Banks and Proceeds Deposit Accounts
			
	 Schedule D
	  	-	 	Subsidiaries and Capitalization
			
	 Schedule E
	  	-	 	Instruments
			
	 Exhibit A
	  	-	 	Perfection Certificate
			
	 Exhibit B
	  	-	 	Confirmation

  

 v 

 AMENDED AND RESTATED SECURITY, PLEDGE AND TRUST AGREEMENT (this “Agreement”) dated as of
July 1, 2005, between NAVISTAR FINANCIAL CORPORATION, a Delaware corporation (with its successors, “Navistar Financial”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, a corporation duly organized and existing under the laws of the State of
New York, acting individually and as trustee for the holders of the Secured Obligations. 
  
 W I T N E S S E T H: 
  
 WHEREAS,
pursuant to the terms of the Credit Agreement (such capitalized term and other capitalized terms used herein being used with the meanings given to such terms in Section 1.01), Navistar Financial desires to secure, equally and ratably, the payment of
(i) the principal of and interest on the Loans and all other amounts from time to time owing by Navistar Financial under the Credit Agreement and (ii) all amounts from time to time owing by Navistar Financial in respect of Financial Services
Obligations; and 
  
 WHEREAS, from time to time after the date
hereof Navistar Financial may desire to secure additional Indebtedness equally and ratably with the Loans and Financial Services Obligations; 
  
 DECLARATION OF TRUST: 
  
 NOW, THEREFORE, in order to secure the payment of the Secured Obligations and in consideration of the premises and the mutual agreements set forth herein,
Navistar Financial hereby grants the Trust Estate to the Trustee and the Trustee declares that it holds the Trust Estate as trustee in trust under this Agreement. 
  
 TO HAVE AND TO HOLD the Trust Estate unto the Trustee in trust under this Agreement and its assigns and their assigns
forever. 
  
 IN TRUST NEVERTHELESS under and subject to the
conditions set forth herein and for the benefit of the Secured Obligations and the holders thereof, and for the enforcement of the payment of the Secured Obligations, and as security for the performance of and compliance with the covenants and
conditions of this Agreement. 
  
 PROVIDED, HOWEVER, that if
Navistar Financial or its assigns shall satisfy the conditions set forth in Section 8.02 and 8.03, then this Agreement, and the estates and rights hereby granted, shall cease, terminate and be void and of no further force and effect. 
  
 IT IS HEREBY FURTHER COVENANTED AND DECLARED that the Trust Estate is to be
held and applied by the Trustee, subject to the further covenants, conditions and trusts hereinafter set forth. 

 ARTICLE I 
  
 DEFINITIONS 
  
 SECTION 1.01. Definitions. The following terms, as used herein, have the following meanings: 
  
 “Account Debtor” means, with respect to any Receivable, any
“account debtor” (as defined in the UCC) on such Receivable. 
  
 “Additional Secured Obligation” means any obligation which Navistar Financial designates as an Additional Secured Obligation pursuant to Section 2.07 after the date hereof. 
  
 “Additional Short-Term Debt” means (i) commercial paper issued by
Navistar Financial and (ii) other Indebtedness for Borrowed Money (as defined in the Credit Agreement) of Navistar Financial owing to a bank, in each case (x) having a maturity not greater than 270 days from the date of the issuance or incurrence
thereof and (y) not subject to any provision for extension or renewal or automatic “roll-over” at the option of either party. 
  
 “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as Administrative Agent under the Credit Agreement, or any successor
Administrative Agent appointed in accordance with the respective terms of such agreement. 
  
 “Affiliate” has the meaning specified in the Credit Agreement. 
  
 “Bankruptcy Code” means the Bankruptcy Reform Act of 1978, as amended, or any successor statute. 
  
 “Blocked Account” has the meaning specified in the Credit
Agreement. 
  
 “Books and Records” means all computer
programs, tapes, discs, punch cards, data processing software, transaction files, master files and related property and rights (except computer and peripheral equipment) of Navistar Financial pertaining to any of the Collateral, or regularly used by
Navistar Financial in enforcing or identifying any of the Collateral or establishing the amount of any Navistar Financial Receivable, or identifying the Account Debtor with respect to any Navistar Financial Receivable, or identifying or establishing
the amount of any Proceeds of any of the Collateral. 
  
 “Chattel Paper” means Navistar Financial Receivables which constitute “chattel paper” (as defined in the UCC). 
  
 “Collateral” means all property in which a security interest is granted to the Trustee pursuant to Section 2.01 and not released pursuant to the
terms hereof. 
  
 “Collateral Account” has the meaning
set forth in Section 6.01. 
  
 “Collateral Release
Notice” has the meaning set forth in Section 8.03. 
  
 “Collection Account” has the meaning set forth in Section 4.07(a). 
  

 2 

 “Collection Bank” means each of the banks listed in Schedule C hereto, as amended from time to
time in accordance with Section 4.07(c), at which one or more Lock-boxes and/or Suspense Accounts and/or Collection Accounts are maintained. 
  
 “Commitment” has the meaning specified in the Credit Agreement. 
  
 “Concentration Bank” means JPMorgan Chase Bank, N.A., in its capacity as the agent of the Trustee (or of a
co-trustee or separate trustee), or any successor Concentration Bank appointed pursuant to Section 4.07(g) at which the Proceeds Allocation Account is maintained. If the Concentration Bank is an agent of a co-trustee or separate trustee appointed
pursuant to Section 7.10, references to the “Trustee” in connection with the Concentration Bank shall refer to such co-trustee or separate trustee, as the case may be. 
  
 “co-trustee” has the meaning set forth in Section 7.10. 
  
 “Credit Agreement” means the Amended and Restated Credit Agreement,
dated as of July 1, 2005, among Navistar Financial Corporation, Arrendadora Financiera Navistar, S.A. de C.V., Organización Auxiliar Del Crédito, Servicios Financieros Navistar, S.A. de C.V., Sociedad Financiera de Objeto Limitado, a
Mexican corporation, Navistar Comercial, S.A. de C.V., a Mexican corporation, the Lenders party thereto, JPMorgan Chase Bank, N.A. as administrative agent, Bank of America, N.A., as syndication agent and The Bank of Nova Scotia, as documentation
agent, as amended, supplemented or otherwise modified from time to time. 
  
 “Dealer” means (i) a Person with whom International or an affiliate of International has a valid dealer sales/maintenance agreement to sell Navistar Vehicles (it being understood that any such Person may
also have an agreement with an OEM Supplier to sell OEM Vehicles), (ii) a truck equipment manufacturer with whom International has a valid agreement to sell International vehicles, (iii) a Person with whom Navistar Financial has a valid agreement to
extend used truck floor plan terms or (iv) a Person for whom Navistar Financial provides financing for OEM Vehicles. 
  
 “Debt Indentures” means any indenture entered into after the date hereof pursuant to which Additional Secured Obligations are issued, in each
case as such indenture is amended from time to time. 
  
 “Documents” means all “documents” (as defined in the UCC) or other receipts covering, evidencing or representing goods, now owned or hereafter acquired by Navistar Financial. 
  
 “Dollars” and “$” mean lawful money of the United States
of America. 
  
 “Domestic Business Day” means any day
except a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close. 
  
 “Effective Date” has the meaning specified in the Credit Agreement. 
  
 “Engine Accounts Sale Agreement” means the agreement by and between International and Navistar Financial, dated as
of November 21, 2000. 
  

 3 

 “Equipment” means all “equipment” (as defined in the UCC) now or hereafter owned by
Navistar Financial, including, without limitation, all motor vehicles, trucks, trailers, office equipment and computer hardware; provided that any of the foregoing which constitute Inventory shall be included in the meaning of the term
“Inventory” and excluded from the meaning of the term “Equipment”. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, including (unless the context otherwise requires) all rules and regulations promulgated thereunder.

  
 “ERISA Affiliate” has the meaning specified in the
Credit Agreement. 
  
 “Event of Default” has the meaning
specified in the Credit Agreement. 
  
 “Excluded Foreign
Subsidiary” means any Navistar Financial Subsidiary that is not organized under the laws of any jurisdiction within the United States, in respect of which the pledge of all of the capital stock of such Subsidiary would, in good faith judgment
of Navistar Financial, result in adverse tax consequences to Navistar Financial. 
  
 “Existing Senior Lien” has the meaning specified in Section 2.06(d). 
  
 “Financial Services Obligations” means all obligations of Navistar Financial to any Lender, or any affiliate of any Lender, under any Secured
Interest Rate Agreement. 
  
 “General Intangibles” means
all “general intangibles” (as defined in the UCC) now owned or hereafter acquired by Navistar Financial (other than any Navistar Financial Receivable or Related Receivables Right), including, without limitation, to the extent the same
constitute “general intangibles” (as defined in the UCC), (i) all rights and privileges of Navistar Financial in, to and under the Material Agreements, (ii) all patents, patent licenses, trademarks, trademark licenses, rights in
intellectual property, goodwill, trade names, service marks, trade secrets, copyrights, permits and licenses, (iii) all rights or claims in respect of refunds for taxes paid and (iv) all rights in respect of any pension plan or similar arrangement
maintained for employees of Navistar Financial or any ERISA Affiliate. 
  
 “Government Account” has the meaning set forth in Section 4.13(c). 
  
 “Government Receivables” has the meaning set forth in Section 4.13(a). 
  
 “Governmental Authority” has the meaning specified in the Credit Agreement. 
  
 “hereunder”, “hereby”, “herein”, “hereof” and like words refer to this Agreement as
a whole (including any schedules and supplements hereto) and not merely to the specific section, paragraph or clause in which the respective word appears. 
  
 “Indebtedness” has the meaning specified in the Credit Agreement. 
  
 “Indenture Obligations” means the securities evidencing Indebtedness of Navistar Financial outstanding from time
to time under the Debt Indentures; provided that such securities are Additional Secured Obligations. 
  

 4 

 “Indenture Trustee” means a trustee under any Debt Indenture. 
  
 “Instruments” means all “instruments” (as defined in
Article 9 of the UCC) or “letters of credit” (as defined in the UCC), whether or not evidencing, representing, arising from or existing in respect of, relating to, securing or otherwise supporting the payment of, any of the Navistar
Financial Receivables, including (but not limited to) the Subsidiary Notes and any other promissory notes, drafts, bills of exchange and trade acceptances, in each case now owned by Navistar Financial or hereafter acquired by Navistar Financial or
arising, other than any of the foregoing which (i) constitute or are part of a group of writings that constitute Chattel Paper or (ii) are marketable securities or Subsidiary Shares. 
  
 “Insurance Policies” means all rights of Navistar Financial in, to and under insurance policies of every kind,
presently existing or hereafter acquired, under which any collateral securing any Navistar Financial Receivable is insured; provided that any such rights which constitute Proceeds shall be included in the meaning of the term
“Proceeds” and excluded from the meaning of the term “Insurance Policies”. 
  
 “Intercompany Debt” means any Indebtedness owing from time to time by a Navistar Financial Subsidiary to Navistar Financial, whether or not such Indebtedness is evidenced by a promissory note or other
“instrument” (as defined in Article 9 of the UCC). 
  
 “Intercompany Loan Agreement” means each agreement creating or evidencing Intercompany Debt, in each case as such agreement may be amended or supplemented from time to time. 
  
 “Interest Rate Agreement” means any interest rate protection
agreement, interest rate future agreement, interest rate option agreement, interest rate swap agreement, interest rate cap agreement, interest rate collar agreement, interest rate hedge agreement or other similar agreement or arrangement designed to
protect Navistar Financial against fluctuations in interest rates. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, or any successor statute. 
  
 “International” means International Truck and Engine Corporation, formerly Navistar International Transportation Corp., a Delaware corporation
and its successors. 
  
 “Inventory” means all
“inventory” (as defined in the UCC), now owned or hereafter acquired by Navistar Financial, wherever located. 
  
 “Lenders” means the lenders that are parties to the Credit Agreement, and their respective successors and assigns; and “Lender” means
each of the foregoing. 
  
 “Letter of Credit” has the
meaning specified in the Credit Agreement. 
  
 “Lien”
has the meaning specified in the Credit Agreement. 
  
 “Loans” means the loans made by the Lenders pursuant to the Credit Agreement. 
  

 5 

 “Local UCC” has the meaning set forth in Section 4.01(f). 
  
 “Lock-box” has the meaning set forth in Section 4.07(a).

  
 “Master Intercompany Agreement” has the meaning
specified in the Credit Agreement. 
  
 “Material
Agreements” means, collectively, (i) the Intercompany Loan Agreements, (ii) the Master Intercompany Agreement, (iii) the Tax Allocation Agreement, and (iv) each Receivables Sale Agreement, and each other agreement entered into by Navistar
Financial in connection with any Receivables Sale Agreement or pursuant thereto, to which Navistar Financial is or becomes a party, in each case as such agreement is amended from time to time. 
  
 “Navistar Financial Receivables” means all right, title and
interest, whether now owned or existing or hereafter arising or acquired, of Navistar Financial in Receivables, including, without limitation: 
  
 (a) all rights of Navistar Financial to receive payments of money or other consideration from International under the Master Intercompany
Agreement, the Engine Accounts Sale Agreement, the Parents’ Side Agreement, the Tax Allocation Agreement, or otherwise, or from any Person (other than any Navistar Financial Subsidiary) under secured or unsecured borrowing or other credit
arrangements, 
  
 (b) all rights of Navistar
Financial to receive payment in respect of the purchase price of any asset (other than any Receivable) sold by it, 
  
 (c) all rights of Navistar Financial to receive payments of money or other consideration from a Purchaser or any trust or other similar
entity created in connection with the sale of Receivables by Navistar Financial under any Receivables Sale Agreement or any other agreement executed in connection with such Receivables Sale Agreement (including, without limitation, all rights of
Navistar Financial (i) to receive the purchase price of any Sold Receivables, including any portion thereof which becomes payable at any time following such sale, (ii) to be reimbursed for advances made or expenses incurred on behalf of any such
Purchaser, trust or similar entity, and for expenses incurred by Navistar Financial in connection with its servicing of Receivables on behalf of any such Purchaser, trust or similar entity and (iii) to receive servicing fees in connection with the
collection and administration of Sold Receivables on behalf of any such Purchaser, trust or similar entity), 
  
 (d) all rights of Navistar Financial to receive payments of money or other consideration from Account Debtors in respect of Retail
Receivables and Wholesale Receivables (excluding any Sold Receivables) and 
  
 (e) all rights of Navistar Financial to receive payments of money or other consideration from any Navistar Financial Subsidiary in respect of any Intercompany Debt, any amounts payable from time to time to Navistar
Financial under the Tax Allocation Agreement, or otherwise; 
  

 6 

 provided that the term “Navistar Financial Receivables” shall include Navistar Financial’s right,
title and interest in Receivables with respect to which the United States of America or an agency or department thereof is the obligor only to the extent provided in Section 4.13; and provided, further, that the term “Navistar
Financial Receivables” shall not include any Sold Receivables. 
  
 “Navistar Financial Subsidiary” means each Subsidiary of Navistar Financial. 
  
 “Navistar Vehicle” means any medium or heavy-duty truck produced by, or for, International or an affiliate of International and sold by
International to Dealers. 
  
 “NFRRC” means Navistar
Financial Retail Receivables Corporation, a Delaware corporation, and its successors. 
  
 “NFSC” means Navistar Financial Securities Corporation, a Delaware corporation, and its successors. 
  
 “Notice of Acceleration” means a written notice delivered to the Trustee: 
  
 (i) by the Administrative Agent with respect to the Loans or other indebtedness outstanding under the Credit
Agreement, or 
  
 (ii) by the relevant Indenture
Trustee with respect to indebtedness constituting Secured Obligations hereunder and outstanding under a Debt Indenture, 
  
 in each case, stating that (a) such indebtedness has not been paid in full at the stated final maturity thereof and any applicable grace period has expired or (b) an
event of default has occurred under the provisions of the relevant Secured Instrument, and, as a result thereof, such indebtedness has become due and payable prior to the stated maturity thereof. 
  
 “OEM Supplier” means any Person who sells OEM Vehicles to a Dealer
and who has entered into an agreement for the benefit of Navistar Financial to repurchase new vehicle inventory from Navistar Financial upon Navistar Financial’s foreclosure upon such inventory owned by such Dealer (subject to such customary
conditions and limitations as are acceptable to Navistar Financial). 
  
 “OEM Vehicle” means a new medium or heavy-duty truck manufactured by, or for, a manufacturer other than International. 
  
 “Opinion of Counsel” means an opinion in writing signed by legal counsel to Navistar Financial (other than an employee of Navistar Financial or
any Affiliate of Navistar Financial) reasonably satisfactory to the Trustee. 
  
 “Parent” means Navistar International Corporation, a Delaware corporation, and its successors. 
  
 “Parents’ Side Agreement” has the meaning specified in the Credit Agreement. 
  
 “Perfection Certificate” means a certificate substantially in the form of Exhibit A hereto, completed and
supplemented with the schedules and attachments contemplated thereby to the reasonable satisfaction of the Trustee and duly executed by a Responsible Officer of Navistar Financial. 
  

 7 

 “Permitted Financial Intermediary” means at any time the Trustee, in its individual capacity,
or any Affiliate of the Trustee, provided that (i) such Person in the ordinary course of its business maintains securities accounts for its customers and (ii) such Person is at such time acting in the capacity of a “securities
intermediary” as defined in Section 8-102(a)(14) of the UCC. 
  
 “Permitted Liens” means the Liens on the Collateral permitted to be created, assumed or to exist pursuant to Section 8.03 of the Credit Agreement. 
  
 “Permitted Receivables Sale Agreement” means any Receivables Sale Agreement (i) which is listed in Schedule A
hereto or (ii) with respect to which the Trustee shall have received a certificate of a Responsible Officer (x) stating that such agreement was entered into after the date hereof and all sales thereunder are either expressly permitted or are not
prohibited by any Secured Instrument and (y) setting forth the name and address of each Purchaser under such agreement, as such agreement may be amended from time to time. 
  
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association,
company, partnership, Governmental Authority or other entity. 
  
 “Pledged Securities” means the Instruments and the Subsidiary Shares. 
  
 “Proceeds” means all “proceeds” (as defined in the UCC) of any of the Collateral described in clauses (i) through (xiv) of Section 2.01. 
  
 “Proceeds Account Bank” means any of the banks listed in Schedule C
hereto, as amended from time to time in accordance with Section 4.07(c), at which a Proceeds Deposit Account is maintained. 
  
 “Proceeds Allocation Account” has the meaning set forth in Section 4.07(a). 
  
 “Proceeds Deposit Account” has the meaning set forth in Section 4.07(a). 
  
 “Purchaser” means, as applicable, NFSC, NFRRC, TRIP or any other
purchaser of Receivables from Navistar Financial under any Receivables Sale Agreement. 
  
 “Qualified Securitization Transaction” has the meaning specified in the Credit Agreement. 
  
 “Receivable” means, as the context may require, either (a) all assets of the type classified under the heading “Finance Receivables”
on the statement of consolidated financial condition of Navistar Financial and its consolidated Subsidiaries as of October 31, 2004 and the related statements of consolidated income and retained earnings and consolidated cash flow for the fiscal
year then ended, together with the notes thereto, included in the 2004 Annual Report and reported on by Deloitte & Touche or (b) the aggregate Unpaid Balances thereof or (c) equipment on operating leases. 
  

 8 

 “Receivables Sale Agreement” means any agreement providing for the sale by Navistar Financial
of any Receivables or interests in Receivables. 
  
 “Related
Receivables Rights” means the rights with respect to Navistar Financial Receivables which are described in Section 2.01(i) to the extent such rights are “accounts”, “contract rights” or “general intangibles” (as
such terms are defined in the UCC) and are not excluded from the coverage of the UCC by reason of Section 9-109 thereof. 
  
 “Releasing Secured Parties” means all the Lenders. 
  
 “Relevant UCC” means, with respect to any UCC Deposit Account Jurisdiction at any time, the Uniform Commercial Code as then in effect in such
UCC Deposit Account Jurisdiction. 
  
 “Required Lenders”
has the meaning specified in the Credit Agreement. 
  
 “Required Secured Parties” means the Required Lenders under the Credit Agreement; provided that, if at any time all principal of and interest on the Loans and all other amounts due under the Credit Agreement shall have been
paid in full and the Commitments thereunder shall have terminated in their entirety, “Required Secured Parties” shall mean Indenture Trustees under Debt Indentures under which more than 50% of then aggregate outstanding principal amount of
the Indenture Obligations were issued. 
  
 “Requirement of
Law” means, as to any Person, the Certificate of Incorporation and By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 
  
 “Responsible Officer” means the chief executive officer, president, vice president and treasurer, vice president and controller, and general
counsel of Navistar Financial, but in any event, with respect to financial matters, the vice president and treasurer or the vice president and controller of Navistar Financial. 
  
 “Retail Receivables” means all Receivables of the types classified in the statement of consolidated financial
condition of Navistar Financial and its consolidated Subsidiaries as of October 31, 2004 and the related statements of consolidated income and retained earnings and consolidated cash flow for the fiscal year then ended, together with the notes
thereto, included in the 2004 Annual Report and reported on by Deloitte & Touche LLP (a) under the heading “Retail notes and lease financing” or (b) under the heading “Accounts”, except Wholesale Receivables. 
  
 “Retained Collections” means all amounts (except Sold Collections)
which from time to time are received by Navistar Financial, a Collection Bank, the Concentration Bank, a Proceeds Account Bank or the Trustee as Proceeds of Navistar Financial Receivables which are Wholesale Receivables or Retail Receivables,
including, without limitation, to the extent constituting Proceeds, (i) all payments of purchase prices, principal, finance charges, interest, late payment charges and other charges, (ii) all collection fees, extension fees and other fees, (iii) all
insurance proceeds, payments by guarantors and other amounts to be applied to the payment of 
  

 9 

 the foregoing, (iv) all net proceeds of the sale or other disposition of repossessed equipment, vehicle repair and
replacement parts inventory or other collateral and (v) all proceeds of any repurchase or purchase of any Navistar Financial Receivables by the original seller or a third party. 
  
 “Secured Instruments” means at any time (i) the Credit Agreement and any promissory note issued thereunder, (ii)
each Secured Interest Rate Agreement, and (iii) each other agreement, Debt Indenture, promissory note or “instrument” (as defined in Article 9 of the UCC), evidencing Additional Secured Obligations. 
  
 “Secured Interest Rate Agreement” means an Interest Rate Agreement
between Navistar Financial and any Lender or any affiliate of any Lender that is in effect on the date hereof or with respect to which Navistar Financial’s obligations are hereafter designated as Additional Secured Obligations pursuant to
Section 2.07. 
  
 “Secured Obligations” means:

  
 (i) all principal of and interest on the
Loans and all other sums payable by Navistar Financial under the Credit Agreement, 
  
 (ii) all sums payable by Navistar Financial under this Agreement including, without limitation, Trustee’s Fees, 
  
 (iii) all sums, if any, payable by Navistar Financial to any
Lender or any affiliate of any Lender under any Secured Interest Rate Agreement, and 
  
 (iv) all Additional Secured Obligations; 
  
 provided that the terms “interest”, “sums” and “Additional Secured Obligations” as used above shall each include, without limitation,
any interest which accrues on the relevant Secured Obligation after, or would so accrue but for the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of Navistar Financial. 
  
 “Secured Parties” means: 
  
 (i) so long as any Lender has any Commitment under the
Credit Agreement or any Loan is outstanding or any amount due and payable by Navistar Financial under the Credit Agreement remains unpaid, the Lenders and the Administrative Agent, 
  
 (ii) the Trustee, 
  

(iii) so long as any Secured Obligation (whether or not due and payable) is unpaid under any Debt Indenture, the Indenture Trustee
under such Debt Indenture, 
  
 (iv) each Lender
or affiliate thereof that is a party to a Secured Interest Rate Agreement, and 
  
 (v) each other holder of an Additional Secured Obligation. 
  

 10 

 “Securities Account” has the meaning set forth in Section 4.02. 
  
 “security interest” means a “security interest” (as
defined in the UCC). 
  
 “Senior Lien” has the meaning
specified in Section 2.06(a). 
  
 “Sold Collections”
means all amounts which from time to time (i) are received by Navistar Financial, International, a Collection Bank, the Concentration Bank, a Proceeds Account Bank or the Trustee in each case with respect to Sold Receivables and (ii) are owed to a
Purchaser or its assignee, or are required to be deposited in a special purpose trust or similar account, in connection with any Permitted Receivables Sale Agreement. 
  
 “Sold Receivables” means any Receivables transferred by Navistar Financial pursuant to any Permitted Receivables
Sale Agreement and not repurchased by Navistar Financial, except to the extent that Navistar Financial retains an ownership or other interest therein. 
  
 “Subsidiary” of any Person means any corporation or other entity of which securities or other ownership interests having ordinary voting power
to elect a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by such Person. 
  
 “Subsidiary Notes” means (i) the notes listed in Schedule E hereto evidencing Intercompany Debt and (ii) any other promissory notes or
“instruments” (as defined in Article 9 of the UCC) required to be pledged to the Trustee pursuant to Section 4.03(c). 
  
 “Subsidiary Shares” means (i) the shares of capital stock or membership interests of the Navistar Financial Subsidiaries listed in Schedule D
hereto and (ii) any other shares of capital stock or membership interests required to be pledged to the Trustee pursuant to Section 4.03(c). 
  
 “Supporting Obligations” means all “supporting obligations” (as defined in the UCC) 
  
 “Suspense Account” has the meaning set forth in Section 4.07(a).

  
 “Tax Allocation Agreement” has the meaning specified
in the Credit Agreement. 
  
 “TRIP” means Truck Retail
Instalment Paper Corp., a Delaware corporation, and its successors. 
  
 “TRIP Receivables Purchase Agreement” means the Receivables Purchase Agreement by and between TRIP and Navistar Financial, dated as of October 16, 2000. 
  
 “Trust Estate” means all right, title and interest of the Trustee in, to and under the Collateral. 
  
 “Trustee” means Deutsche Bank Trust Company Americas[, a New York
banking corporation,] in its capacity as Trustee hereunder, and any successor thereto in such capacity 
  

 11 

 appointed pursuant to Section 7.07, which successor shall be (a) a bank or trust company in good standing and having
power to act as Trustee hereunder, incorporated under the laws of the United States of America or any State thereof or the District of Columbia, having its principal corporate trust office within the 48 contiguous States and having capital, surplus
and undivided profits of not less than $250,000,000.00, and (b) selected by Navistar Financial, subject to the consent of the Administrative Agent (such consent not to be unreasonably withheld or delayed). 
  
 “Trustee’s Fees” means all fees, costs, indemnities and
expenses of the Trustee of the types described in Sections 4.10, 4.11, 7.12 and 7.13. 
  
 “Trustee’s Security Interest” means the security interest granted to the Trustee in Section 2.01. 
  
 “2004 Annual Report” means Navistar Financial’s 2004 Annual Report on Form 10-K for the fiscal year ended October 31, 2004, in the form
delivered to the Lenders prior to the date hereof. 
  
 “UCC” means at any time the Uniform Commercial Code as in effect in the State of New York; provided that if, by reason of mandatory provisions of law, the validity or perfection of the Trustee’s Security Interest in
any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to
such validity or perfection (and for purposes of definitions related to such provisions). 
  
 “UCC Deposit Account” means a “deposit account” (as defined in the Relevant UCC) now or hereafter maintained by Navistar Financial in a UCC Deposit Account Jurisdiction. 
  
 “UCC Deposit Account Jurisdiction” means, at any time, any
jurisdiction in which the Relevant UCC then governs the creation, attachment and perfection of security interests in “deposit accounts” (as defined in the Relevant UCC). 
  
 “Unpaid Balances” has the meaning set forth in the Credit Agreement. 
  
 “Upgrading” has the meaning set forth in the Credit Agreement.

  
 “Used Truck Center” means any facility (including,
without limitation, any Dealer or any facility of International) which regularly holds for sale any Inventory and/or Equipment. 
  
 “Wholesale Receivables” means all Receivables of the types classified in the statement of consolidated financial condition of Navistar Financial
and its consolidated Subsidiaries as of October 31, 2004 and the related statements of consolidated income and retained earnings and consolidated cash flow for the fiscal year then ended, together with the notes thereto, included in the 2004 Annual
Report and reported on by Deloitte & Touche LLP under the heading “Wholesale notes” or under the heading “Accounts”, but only such “Accounts” with respect to which the obligor is a Dealer. 
  
 SECTION 1.02. Interpretation. References in this Agreement to the term
“sale” with respect to any transfer of Receivables, rights to receive income therefrom or 
  

 12 

 undivided interests therein are deemed to include any transfer which purports to be a sale on the face of the agreement
governing such transfer, without regard to whether such transfer would constitute a “true sale” under applicable legal principles. The terms “sell” and “sold”, as used as described in the foregoing sentence, shall have
correlative meanings. 
  
 ARTICLE II 
  
 THE SECURITY INTEREST 
  
 SECTION 2.01. Grant of Security Interest. To secure the due and
punctual payment of all Secured Obligations, howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing or due or to become due, in accordance with the terms thereof and to secure the due
and punctual performance of all of the obligations of Navistar Financial contained herein, Navistar Financial hereby grants to the Trustee a continuing security interest in and to all of the following property of Navistar Financial (all being
collectively referred to as the “Collateral”): 
  
 (i) all Navistar Financial Receivables and all rights of Navistar Financial (A) with respect to any collateral security for any Navistar Financial Receivable, (B) under any “security agreement” (as defined
in the UCC) securing any Navistar Financial Receivable or (C) assertable against any Person other than the related obligor, under a guaranty, warranty or otherwise, in connection with any Navistar Financial Receivable or any collateral securing any
Navistar Financial Receivable, 
  
 (ii) all of
Navistar Financial’s right, title and interest in marketable securities, and all of Navistar Financial’s rights and privileges with respect thereto, and all income and profits thereon, and all interest and other payments with respect
thereto, 
  
 (iii) all Pledged Securities and all
of Navistar Financial’s rights and privileges with respect to the Pledged Securities, and all income and profits thereon, and all interest, dividends and other payments and distributions with respect thereto, and all rights of Navistar
Financial (A) with respect to any collateral security for any Instrument or (B) under any “security agreement” (as defined in the UCC) securing any Instrument, 
  
 (iv) all Chattel Paper, 
  
 (v) all General Intangibles and all of Navistar Financial’s rights and privileges with respect to the
General Intangibles, and all income and profits thereon, and all interest and other payments with respect thereto (excluding any General Intangibles, which by their terms, prohibit any security interest from being taken thereon, but not excluding
any Receivables arising out of any such General Intangibles or any money due or to become due under any such General Intangibles), 
  
 (vi) all Documents, 
  
 (vii) all Inventory, 
  

 13 

 (viii) all Equipment, 
  
 (ix) all right, title and interest of Navistar Financial in the Collateral Account, all funds deposited
therein from time to time, the investments made pursuant to Section 6.03 and other monies and property of any kind of Navistar Financial in the possession or under the control of the Trustee, 
  
 (x) all right, title and interest of Navistar Financial in
Books and Records, 
  
 (xi) all Insurance
Policies, and 
  
 (xii) all UCC Deposit Accounts,
all funds deposited therein from time to time, all interest earned thereon and all “proceeds” (as defined in the Relevant UCC) thereof, 
  
 (xiii) all other property not otherwise described above (except for any property specifically excluded from any clause in this section
above, and any property specifically excluded from any defined term used in any clause of this section above), and 
  
 (xiv) to the extent not otherwise included, all Proceeds, Supporting Obligations, and products of any and all of the foregoing and all
collateral security and guarantees given by any Person with respect to any of the foregoing, 
  
 in each case, whether now owned or existing or hereafter acquired or arising and regardless of where located; provided that the Trustee’s Security Interest may be released from time to time after the date
hereof with respect to certain Collateral as provided in Sections 2.02, 2.05, 4.02(f), 4.07(d) and 8.01; provided further that notwithstanding any of the other provisions set forth in this Section 2, this Agreement shall not constitute
a grant of a security interest in any property to the extent that such grant of a security interest is (i) prohibited by any Requirements of Law of a Governmental Authority, (ii) requires a consent not obtained of any Governmental Authority pursuant
to such Requirement of Law or (iii) is prohibited by, or constitutes a breach or default under or results in the termination of or requires any consent not obtained under, any contract, license, agreement, instrument or other document evidencing or
giving rise to such property or, in the case of any marketable security or Pledged Security, any applicable shareholder or similar agreement, except to the extent that such Requirement of Law or the term in such contract, license, agreement,
instrument or other document or shareholder or similar agreement providing for such prohibition, breach, default or termination or requiring such consent is ineffective under applicable law; and provided further that notwithstanding
any of the other provisions set forth in this Section 2, this Agreement shall not constitute a grant of a security interest in the Blocked Account or the Proceeds thereof or in more than 65% of the total outstanding capital stock of any Excluded
Foreign Subsidiary. The foregoing grant of a security interest shall not be effective at any time prior to the date hereof. 
  
 SECTION 2.02. Release of Security Interest in Receivables. Navistar Financial expects to sell or assign Receivables, or interests in Receivables,
from time to time pursuant to Permitted Receivables Sale Agreements. The Trustee’s Security Interest in any Sold Receivables, in all Sold Collections related thereto, in all related rights of the types described in Section 2.01(i) and related
Insurance Policies and Books and Records which are expressly sold or assigned by Navistar Financial pursuant to any Permitted Receivables Sale Agreement and in all 
  

 14 

 Proceeds of the foregoing (but not in Proceeds arising from the sale or assignment of such Receivables and related rights
by Navistar Financial) shall, immediately upon the sale or assignment of such Receivables pursuant to a Permitted Receivables Sale Agreement and without any further action on the part of the Trustee, be automatically released unless a Notice of
Acceleration is in effect at the time of such sale and the Purchaser under such Permitted Receivables Sale Agreement shall have received notice from the Trustee pursuant to Section 5.01, before Navistar Financial shall have become legally obligated
to sell such Receivables, stating that a Notice of Acceleration is in effect. 
  
 SECTION 2.03. Continuing Liability of Navistar Financial and its Subsidiaries. Anything herein to the contrary notwithstanding, Navistar Financial shall remain liable under each contract, agreement, interest
and obligation included in the Collateral, to observe and perform all the conditions and obligations to be observed and performed by it thereunder (including, without limitation, any undertaking to maintain insurance), all in accordance with and
pursuant to the terms and provisions thereof, and shall do nothing to impair the Trustee’s Security Interest in any Collateral. Neither the Trustee nor any other Secured Party shall have any obligation or liability under any such contract,
agreement, interest or obligation by reason of or arising out of this Agreement or the receipt by the Trustee or any other Secured Party of any payment relating to any such contract, agreement, interest or obligation pursuant hereto, nor shall the
Trustee or any Secured Party be required or obligated in any manner to perform or fulfill any of the obligations of Navistar Financial thereunder or pursuant thereto, or to make any payment, or to make any inquiry as to the nature or the sufficiency
of any payment received by it or the sufficiency of any performance by any party under any such contract, agreement, interest or obligation, or to present or file any claim, or to take any action to collect or enforce any performance or the payment
of any amount thereunder to which it may be entitled at any time. 
  
 SECTION 2.04. Rights of Secured Parties Under Secured Instruments. Notwithstanding any other provision of this Agreement, the right of each Secured Party to receive payment of each Secured Obligation held by such Secured Party when
due (whether at the stated maturity thereof, by acceleration or otherwise) as expressed in the relevant Secured Instrument or, subject to any limitations in such Secured Instrument or in any other agreement to which such Secured Party is a party or
by which such Secured Party is bound, to institute suit for the enforcement of such payment on or after such due date, and the obligation of Navistar Financial to pay such Secured Obligation when due, shall not be impaired or affected without the
consent of such Secured Party. 
  
 SECTION 2.05. Release of
Collateral. Unless a Notice of Acceleration is in effect, Navistar Financial may (in addition to its rights under Sections 2.02, 4.02 and 4.07(d)) (x) sell or otherwise dispose of any item of Collateral in the ordinary course of business if such
sale or disposition is not prohibited by any Secured Instrument, (y) sell any Collateral subject to any Senior Lien in a sale as to which the Trustee shall have waived its rights in accordance with Section 2.06 and (z) sell or otherwise dispose of
any item of Collateral (including UCC Deposit Accounts) pursuant to a Qualified Securitization Transaction. In connection with any such sale or disposition, 
  

 15 

 (i) the Trustee’s Security Interest in such item (but not in the Proceeds arising
from such sale or disposition) shall cease immediately upon such sale or disposition, without any further action on the part of the Trustee; 
  
 (ii) if such item is in the possession of the Trustee, any co-trustee or any of their respective agents, the Trustee, such co-trustee or
such agent shall deliver such item to Navistar Financial promptly following receipt of a certificate of a Responsible Officer (1) requesting such delivery and certifying that such sale or other disposition is permitted in accordance with this
Section 2.05, (2) certifying that such delivery is for a purpose that will cause the Trustee’s Security Interest in such item to remain perfected for a specified period following the date of delivery pursuant to Section 9-312(f) of the UCC and
(d) certifying that the relevant sale or disposition shall occur no later than five days prior to the expiration of such specified period; and 
  
 (iii) the Trustee, any co-trustee and any of their respective agents are each hereby authorized and instructed to deliver to the purchaser
of such item a certificate prepared by Navistar Financial stating that the Trustee no longer has any security interest therein, and such purchaser shall be entitled to rely conclusively on such certificate for any and all purposes; provided
that the Trustee, such co-trustee or such agent shall have received a certificate of a Responsible Officer requesting such delivery and certifying that such sale or other disposition is permitted in accordance with this Section 2.05. 
  
 Unless notified to the contrary by any Secured Party, the Trustee may assume that any sale or
disposition of an item of Collateral is not prohibited by any Secured Instrument and may so inform any of its agents and any co-trustee. 
  
 SECTION 2.06. Senior Liens. (a) If at any time Navistar Financial desires to subordinate the Trustee’s Security Interest in any cash,
marketable securities or Equipment and any Proceeds thereof to a Lien (a “Senior Lien”) on such Collateral that is not prohibited by any Secured Instrument, Navistar Financial shall deliver to the Trustee (and concurrently deliver to the
Administrative Agent for distribution to each of the Lenders) a certificate of a Responsible Officer: 
  
 (i) describing the proposed Senior Lien and the cash, marketable securities and/or Equipment subject thereto and certifying that the
creation and senior status thereof is not prohibited by any Secured Instrument, 
  
 (ii) requesting the subordination of the Trustee’s Security Interest in such Collateral to such Senior Lien, 
  
 (iii) if any marketable securities are to be delivered (or,
in the case of marketable securities as to which ownership or the existence of a security interest is evidenced by book entries, transferred) by the Trustee to the holder of such Senior Lien or its agent pursuant to subsection (c) below, requesting
such delivery (or transfer) thereof, 
  
 (iv)
attaching a copy of any documents to be prepared by Navistar Financial and executed by the Trustee and delivered by the Trustee to the holder of such Senior Lien or its agent pursuant to subsection (b) of this Section, and 
  

 16 

 (v) specifying the date on which Navistar Financial desires the Trustee to deliver said
documents and deliver or transfer, as the case may be, any marketable securities referred to in clause (iii) above to the holder of such Senior Lien or its agent. 
  
 (b) If the requirements set forth in subsection (a) above have been met with respect to any Senior Lien, the Trustee will,
at Navistar Financial’s expense, execute and deliver to the holder of such Senior Lien or its agent as set forth in subsection (a) above such documents as Navistar Financial shall reasonably request (copies of which documents shall have been
attached to the certificate delivered pursuant to subsection (a) above in accordance with clause (iv) thereof): 
  
 (i) evidencing the subordination of the Trustee’s Security Interest in the relevant cash, marketable securities and/or Equipment and
any Proceeds thereof to such Senior Lien, 
  
 (ii) waiving any objection the Trustee may otherwise be entitled to make under this Agreement or under applicable law to the sale or other disposition of the Collateral subject to such Senior Lien or any exercise by the holder of such
Senior Lien of remedies permitted by applicable law or contract, provided that the Trustee’s Security Interest shall continue in any Proceeds of such Collateral so sold or disposed of, subject in all respects to the rights of the holder
of such Senior Lien; and 
  
 (iii) waiving any
right of the Trustee under this Agreement or under applicable law to sell, or require the holder of such Senior Lien to sell, such Collateral prior to the satisfaction in full of the obligations secured by such Senior Lien. 
  
 If the holder of any such Senior Lien shall at any time sell or dispose of any marketable
securities subject to such Senior Lien for materially less than fair market value, Navistar Financial agrees to use reasonable efforts to recover, as promptly as is practicable, damages from such holder if Navistar Financial determines in its
reasonable discretion that such holder failed to act in a commercially reasonable manner in connection with such sale or disposal. 
  
 (c) If the requirements set forth in subsection (a) above have been met with respect to any Senior Lien and the certificate delivered pursuant to such
subsection requests the delivery and/or transfer of any marketable securities, then the Trustee (either directly, through one or more of its agents referred to in Section 4.02 or, in the case of any marketable securities as to which ownership or the
existence of a security interest is evidenced by book entries, through the relevant Permitted Financial Intermediary) will make appropriate arrangements for such delivery and/or transfer. 
  
 (d) Notwithstanding anything contained in this Agreement to the contrary, the Trustee’s Security Interest in any cash,
marketable securities or Equipment and any Proceeds thereof shall be junior and subordinate in all respects to any Lien (an “Existing Senior Lien”) on such Collateral existing on the date hereof and not prohibited by any Secured
Instrument, and the holder of such Existing Senior Lien may continue to hold (either directly, through a duly authorized agent or, in the case of any marketable securities as to which ownership or the existence of a security interest is evidenced by
book entries, through a “securities intermediary” (as defined in the UCC)) any such cash or marketable securities held by it on the date hereof and 
  

 17 

 any Proceeds thereof, provided that, on or before the date hereof, with respect to such cash or marketable
securities, the Trustee shall have received, in each case in form and substance reasonably satisfactory to the Trustee: 
  

	 	(i)	a certificate of a Responsible Officer: 

  
 (x) describing such Existing Senior Lien and the cash and/ or marketable securities subject thereto and certifying that the creation and
senior status of such Existing Senior Lien is not prohibited by any Secured Instrument, 
  
 (y) specifying any cash or marketable securities subject to the Trustee’s Security Interest that are to be held on or after the date
hereof by the holder of such Existing Senior Lien, its agent or, in the case of marketable securities as to which ownership or the existence of a security interest is evidenced by book entries, a “securities intermediary” (as defined in
the UCC), and 
  
 (z) if any Collateral is to be
held by or on behalf of the holder of such Existing Senior Lien, certifying that Navistar Financial has provided the holder of such Existing Senior Lien and any other Person who will hold such Collateral (and, in the case of an Existing Senior Lien
on marketable securities as to which ownership or the existence of a security interest is evidenced by book entries, the relevant “securities intermediary” (as defined in the UCC)), with (1) written notice of the existence of the
Trustee’s Security Interest in such Collateral and (2) irrevocable written instructions to transfer to or as directed by the Trustee any such Collateral and Proceeds thereof remaining after the obligations secured by such Existing Senior Lien
have been satisfied, unless such Person shall have previously received notice from the Trustee of the release of the Trustee’s Security Interest therein; and 
  

	 	(ii)	to the extent obtainable by Navistar Financial using commercially reasonable efforts, a writing signed by the holder of such Existing Senior Lien: 

  
 (x) acknowledging and consenting to the creation of the
Trustee’s Security Interest in such Collateral, and 
  
 (y) irrevocably agreeing to hold any such Collateral for the benefit of the Trustee and the other Secured Parties, as holders of a junior Lien with respect to such Collateral, and to transfer to or as directed by the
Trustee any such Collateral held or received by such holder immediately upon the satisfaction of the obligations secured by such Existing Senior Lien, unless such holder has previously received written notice from the Trustee of the release of the
Trustee’s Security Interest therein. 
  
 As of the date hereof, the Trustee
hereby irrevocably waives, for the benefit of the holders of Existing Senior Liens 
  

 18 

 (i) any objection the Trustee may otherwise be entitled to make under this Agreement or
under applicable law to the sale or other disposition of the Collateral subject to such Existing Senior Lien or any exercise by the holder of such Existing Senior Lien of remedies permitted by applicable law or contract, provided that (1) the
Trustee’s Security Interest shall continue in any Proceeds of such Collateral so sold or disposed of, subject in all respects to the rights of the holder of such Existing Senior Lien, and (2) if any marketable securities are to be so sold or
disposed of in connection with any sale or disposition as to which the Trustee shall not have consented, the Trustee shall have received a certificate of a Responsible Officer certifying that the consideration received for such marketable securities
is at least equal to the fair market value thereof, and 
  
 (ii) any right of the Trustee under this Agreement or under applicable law to sell, or require the holder of such Existing Senior Lien to sell, such Collateral prior to the satisfaction in full of the obligations
secured by such Existing Senior Lien. 
  
 SECTION 2.07.
Additional Secured Obligations. (a) If at any time Navistar Financial desires to designate any of its proposed or existing Indebtedness or other obligations as an Additional Secured Obligation for purposes hereof (other than any Additional
Short-Term Debt), Navistar Financial shall deliver to the Trustee (and concurrently deliver to the Administrative Agent for distribution to each of the Lenders) a certificate signed by a Responsible Officer which shall (x) identify such proposed or
existing Indebtedness or other obligation, (y) certify that the designation thereof as an Additional Secured Obligation is not prohibited by any provision of any Secured Instrument and (z) specify the name and address of the proposed or existing
holder or holders of each Additional Secured Obligation so designated or of an Indenture Trustee, agent or other duly authorized representative of such holder or holders designated in accordance with Section 7.11(b). Unless the Trustee (at the
written direction of the Administrative Agent) or the Administrative Agent, by no later than the ninth Domestic Business Day following the receipt of such certificate by the Trustee or the Administrative Agent, notifies Navistar Financial that the
Required Lenders have determined that such designation is prohibited by the Credit Agreement, such Indebtedness or other obligation shall be, from and after the later of (i) the tenth Domestic Business Day after the receipt of such certificate by
the Trustee and (ii) the incurrence of such Indebtedness or other obligation, an Additional Secured Obligation for purposes of this Agreement; provided that in the case of any such Indebtedness in a principal amount of $25,000,000 or less, such
Indebtedness shall be, from and after the later of (i) the date of the receipt of such certificate by the Trustee and (ii) the incurrence of such Indebtedness, an Additional Secured Obligation for purposes of this Agreement. The proviso to the
immediately preceding sentence shall be applicable during each fiscal year of Navistar Financial only to the extent that the aggregate principal amount of Indebtedness designated as Additional Secured Obligations during such fiscal year does not
exceed $100,000,000. 
  
 (b) If at any time Navistar Financial
desires to designate any Additional Short-Term Debt as an Additional Secured Obligation for purposes hereof, Navistar Financial shall deliver to the Trustee (and concurrently deliver to the Administrative Agent for distribution to each of the
Lenders) a certificate signed by a Responsible Officer which shall (w) state that Navistar Financial proposes to issue commercial paper and/or to incur other Additional Short-Term Debt owing to one or more banks, (x) specify the name and address of
each Person acting as a dealer with respect to any such commercial paper, (y) certify that the designation of 
  

 19 

 such Additional Short-Term Debt as an Additional Secured Obligation is not prohibited by any provision of any Secured
Instrument and that, after giving effect to the issuance or incurrence thereof, the aggregate amount of the unused commitments under (or, if less, the amount actually available to be borrowed or received in connection with a purchase under) the
Credit Agreement, the TRIP Receivables Purchase Agreement and all Permitted Receivables Sales Agreements shall be sufficient (taking into account any scheduled terminations of any such commitments) to provide funds to repay in full at maturity the
aggregate outstanding principal or face amount of all Additional Secured Obligations constituting Additional Short-Term Debt and (z) specify the name and address of each bank (other than a Lender) to which any such other Additional Short-Term Debt
is owing or proposed to be owing. Such commercial paper (if issued through a dealer so specified) and such other Additional Short-Term Debt (if owing to a Lender or another bank so specified) shall be, from and after the later of (i) the date of the
receipt of such certificate by the Trustee and (ii) the issuance or incurrence thereof, Additional Secured Obligations for purposes of this Agreement. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 3.01. Title to Collateral; Validity of Security Interest. In respect of all Collateral, Navistar Financial represents and warrants that: 
  
 (a) Navistar Financial owns or has rights in the Collateral free and clear of any Lien of any creditor of Navistar Financial
or, to the knowledge of Navistar Financial, of any other Person, except for Permitted Liens. 
  
 (b) Except for errors and omissions, the aggregate effect of which is immaterial, Navistar Financial has taken all actions necessary under the UCC to perfect, as against its assignors and their creditors, its interest
in Receivables purchased or otherwise acquired by it from such assignors and, upon compliance with the applicable provisions of Article IV, the Trustee will have a valid, perfected security interest in each such Receivable under the UCC which is
prior, subject only to Permitted Liens, to the extent priority is governed by the UCC, to claims of creditors, or a trustee in bankruptcy, of the assignor of such Receivable. 
  
 (c) The Subsidiary Shares include all of the issued and outstanding stock of each Navistar Financial Subsidiary which is
directly owned by Navistar Financial. 
  
 (d) The Subsidiary
Shares have been duly and validly issued. 
  
 (e) The Subsidiary
Shares (other than LLC membership interests) are fully paid and nonassessable. 
  
 (f) Each Subsidiary Note constitutes the legal, valid and binding obligation of the obligor with respect thereto, enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and
fair dealing. 
  

 20 

 (g) Navistar Financial is the record and beneficial owner of, and has good and marketable title to, the
Pledged Securities pledged by it hereunder, free of any and all Liens or options in favor of, or claims of, any other Person, except the Permitted Liens. 
  
 (h) To the extent the UCC is applicable thereto, the Trustee’s Security Interest constitutes a valid security interest under the UCC securing the
Secured Obligations. When UCC financing statements in the form specified in the Perfection Certificate shall have been filed in the offices specified by Navistar Financial in the Perfection Certificate the Trustee’s Security Interest shall
constitute a perfected security interest in the Collateral (except Inventory in transit) to the extent that a security interest therein may be perfected by filing financing statements pursuant to the UCC. Upon, and assuming the continuation of,
compliance with Sections 4.01(a)(i), 4.01(a)(vii), 4.02, 4.03 and, if applicable, 2.06, the Trustee will have a valid and perfected security interest in the Instruments, marketable securities, Subsidiary Shares and Subsidiary Notes, to the extent
the UCC and, in the case of marketable securities issued by the United States, Treasury regulations are applicable thereto. 
  
 (i) So long as (i) the relevant Instrument remains in the possession of the Trustee, a co-trustee or any of their respective agents or (ii) the relevant
marketable security, Subsidiary Note or certificate representing any Subsidiary Shares continues to be held as described below, the security interest of the Trustee in, as the case may be, (x) any Instrument that is delivered to the Trustee, a
co-trustee or any of their respective agents in accordance with Section 4.01(a)(ii), (y) any marketable security that is an “instrument” (as defined in Article 9 of the UCC) and is delivered to the Trustee or any agent thereof and held in
any Securities Account, or is otherwise held in accordance with Section 2.06(d), and (z) any Subsidiary Note and any certificate representing any Subsidiary Shares, will be prior to all Liens thereon of any creditor of Navistar Financial arising
under the UCC and existing at the time of such delivery and prior to all Liens created or arising under the UCC after such delivery, subject only to Permitted Liens. The security interest of the Trustee in all other Collateral will be prior, to the
extent that applicable law permits such priority to be determined by the absence of previously filed conflicting UCC financing statements, to all other Liens thereon of any creditor of Navistar Financial now existing or arising or created hereafter,
subject only to Permitted Liens. 
  
 No financing statement or
other similar document covering all or any part of the Collateral and naming Navistar Financial as debtor or seller is on file in any recording office in any jurisdiction in which such filing would be effective to perfect a security interest in such
Collateral, except for financing statements with respect to Permitted Liens and filings to be terminated on or prior to the Effective Date. No Collateral is in the possession of any Person (other than Navistar Financial) asserting any claim thereto
or security interest therein, except (A) such Collateral as may be in the possession of the Trustee, a co-trustee or any of their respective agents and (B) Collateral securing Permitted Liens or Senior Liens. 
  
 (j) Upon compliance by Navistar Financial with Section 4.01(a)(vii), a valid
and perfected security interest (as to the creation of which any consent required from any third party has been obtained), subject only to Permitted Liens, will have been created under the Relevant UCC in favor of the Trustee for the benefit of the
Secured Parties in all existing Collateral referred to in Section 2.01(xiii). 
  

 21 

 (k) Other than the filing of financing statements with respect to the Trustee’s Security Interest in
the jurisdictions specified in the Perfection Certificate, no registration, recordation or filing with any governmental body, agency or official is required in connection with the execution or delivery of this Agreement or necessary for the validity
or enforcement hereof or for the perfection or enforcement of the Trustee’s Security Interest (except as may be required pursuant to Section 4.13). Neither Navistar Financial nor any of the Navistar Financial Subsidiaries has performed or will
perform any acts which might prevent the Trustee from enforcing any of the terms and conditions of this Agreement or which would limit the Trustee in any such enforcement. 
  
 (l) As of the date hereof, except as specified in Schedule E hereto, (i) none of the Collateral is evidenced by any
Instrument and (ii) no collateral security for any Collateral is evidenced by any promissory note or other “instrument” (as defined in Article 9 of the UCC) or any “letter of credit” (as defined in the UCC). 
  
 SECTION 3.02. Enforceability of Navistar Financial Receivables.
Navistar Financial represents and warrants that to the best knowledge of Navistar Financial, (1) each Navistar Financial Receivable (i) constitutes a legal, valid and binding obligation of the related Account Debtor, enforceable in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or
at law and (ii) complies in all material respects with all applicable legal requirements, including, without limitation, all state and federal usury laws and (2) the amounts represented by Navistar Financial to the Trustee from time to time as owing
to Navistar Financial in respect of the Navistar Financial Receivables will at such times be accurate in all material respects. 
  
 SECTION 3.03. Location of Collateral. As of the date hereof, the Perfection Certificate is correct and complete in all material respects and
correctly sets forth the location of all of the Collateral (other than (i) Collateral to be delivered to the Trustee under this Agreement and (ii) repossessed and/or seized Inventory and Equipment held by any Dealer that is not a Used Truck Center)
and the chief executive office of Navistar Financial. 
  
 SECTION
3.04. Jurisdiction of Organization; Chief Executive Office. As of the date hereof, the Perfection Certificate correctly sets forth the jurisdiction of organization of Navistar Financial and the location of the chief executive office of
Navistar Financial. 
  
 SECTION 3.05. Subsidiaries. As of
the Effective Date, Schedule D sets forth the name, jurisdiction of incorporation and capital stock ownership of each Subsidiary owned by Navistar Financial. The amount listed directly opposite the name of each Subsidiary of Navistar Financial under
the column heading “Subsidiary Shares” in such Schedule correctly states the number of shares of such Subsidiary’s capital stock outstanding as of the date hereof. 
  

 22 

 ARTICLE IV 
  
 COVENANTS 
  
 SECTION 4.01. Filings and Further Assurances. (a) In respect of all Collateral, Navistar Financial will, at its expense, take the following steps:

  
 (i) as to all (a) Navistar Financial
Receivables (except those covered by clause (ii) below), (b) Related Receivable Rights, (c) marketable securities which are not “instruments” (as defined in Article 9 of the UCC), (d) General Intangibles and related rights and privileges
described in Section 2.01(iv) (except any such rights and privileges covered by clause (iv) below), (e) Documents, (f) Inventory, (g) Equipment and (h) Books and Records, Navistar Financial will at all times on and after the date hereof cause UCC
financing statements and continuation statements to be filed in all applicable jurisdictions as required to perfect the Trustee’s Security Interest, to the extent that applicable law permits perfection thereof by filing against Navistar
Financial under the UCC; 
  
 (ii) as to any
Instrument (other than any Subsidiary Note, as to which the provisions of Section 4.03 will apply) (including, without limitation, any Instrument received by Navistar Financial as a result of Navistar Financial’s realization upon the collateral
security for any Collateral), other than any check or draft constituting a payment in respect of any Navistar Financial Receivable, as to which the provisions of Section 4.07 shall apply, Navistar Financial will, immediately upon receiving such
Instrument, deliver it or cause it to be delivered to the Trustee, a co-trustee or any of their respective agents; 
  
 (iii) as to all marketable securities that are “instruments” (as defined in Article 9 of the UCC) (including, without
limitation, any such instrument received by Navistar Financial as a result of Navistar Financial’s realization upon the collateral security for any Collateral), Navistar Financial will comply with the provisions of Section 4.02; 
  
 (iv) as to all Subsidiary Shares and Subsidiary Notes,
Navistar Financial will comply with Section 4.03; 
  
 (v) as to Insurance Policies, Navistar Financial will comply with the provisions of Section 4.06; and 
  
 (vi) as to all UCC Deposit Accounts, all funds deposited therein and any interest earned thereon, by the later of the date hereof and the
date each such UCC Deposit Account is established, Navistar Financial will notify the organization with which such UCC Deposit Account is maintained of the Trustee’s Security Interest therein and obtain from such organization and furnish to the
Trustee a written acknowledgment of and consent to such notice and written confirmation that such organization (x) has not received notice of any other Lien or claim on such UCC Deposit Account, (y) does not itself have any Lien or other claim on
such UCC Deposit Account other than any Permitted Lien and (z) to the extent obtainable by Navistar Financial using commercially reasonable efforts, irrevocably waives its right of set-off with respect to such UCC Deposit Account except its right to
set-off against such UCC Deposit Account the face 
  

 23 

 amount of any check deposited in and credited to such UCC Deposit Account which is subsequently returned
for any reason, and will take such other action as may be necessary or appropriate from time to time under the Relevant UCC to perfect the Trustee’s Security Interest in any UCC Deposit Account. 
  
 (b) Navistar Financial will and will cause each Navistar Financial Subsidiary
to, from time to time, at its expense, execute, deliver, file and record any other statement, assignment, instrument, document, agreement or other paper and take any other action that from time to time may be necessary, or that the Trustee may
reasonably request, in order to create, preserve, perfect, confirm or validate the Trustee’s Security Interest or any security interest granted as collateral security for any Collateral, or to enable the Trustee to obtain the full benefits of
this Agreement or any security agreement securing any Collateral, or to exercise and enforce any of its rights, powers and remedies hereunder or thereunder with respect to any of the Collateral. If Navistar Financial or the servicer of any mortgage
or deed of trust securing any Collateral acquires title to any real property on foreclosure of any such mortgage or deed of trust then pledged hereunder (or pursuant to any deed in lieu of foreclosure) or repossesses any other real property
collateral securing any Collateral, Navistar Financial will promptly notify the Trustee thereof and, at the reasonable request of the Required Secured Parties and at its own expense, execute and record, or cause such servicer to execute and record,
a mortgage or deed of trust with respect to any such real property in favor of the Trustee for the benefit of the Secured Parties and take all further action as may be necessary, or that the Trustee may reasonably request, so that the Trustee shall
have a valid and perfected Lien on such real property prior to all Liens other than Permitted Liens. 
  
 (c) Navistar Financial will not, and will not permit any Navistar Financial Subsidiary to, change its name, identity or corporate structure in any manner
which would be reasonably likely to make any financing or continuation statement filed hereunder seriously misleading within the meaning of Section 9-507 of the UCC (or any other then applicable provision of the UCC) unless Navistar Financial shall
have given the Trustee at least 15 days’ prior written notice thereof and shall have taken all action (or made arrangements to take such action substantially simultaneously with such change if it is impossible to take such action in advance)
necessary or reasonably requested by the Trustee to amend such financing statement or continuation statement so that it is not seriously misleading. 
  
 (d) To the fullest extent permitted by law, Navistar Financial authorizes the Trustee to file or record financing and continuation statements and
amendments thereto with respect to the Collateral without the signature of Navistar Financial thereon. Navistar Financial authorizes the Trustee to use the Collateral description “all personal property” in any such financing statements.

  
 (e) If any Collateral is at any time in the possession or
control of any warehouseman or bailee or any of Navistar Financial’s agents or processors (including, without limitation, any Dealer or any Used Truck Center), Navistar Financial shall, at its expense, notify such warehouseman, bailee, agent or
processor of Navistar Financial’s ownership interest in such Collateral and the Trustee’s Security Interest therein and to hold all such Collateral for the Trustee’s account; provided that, in the case of any such Person that
is a Dealer, such notification may be made by inserting in Navistar Financial’s next regularly scheduled general mailing to 
  

 24 

 Dealers a statement to the effect that (i) Navistar Financial has entered into this Agreement and (ii) any property of
Navistar Financial (including, without limitation, any repossessed trucks) that may be held from time to time by such Dealer is owned by Navistar Financial in accordance with the terms of certain agreements between Navistar Financial and
International and is subject to the Trustee’s Security Interest therein. If any collateral security for any Collateral is at any time in the possession or control of any warehouseman or bailee or any of Navistar Financial’s or any Navistar
Financial Subsidiary’s agents or processors, Navistar Financial shall, at its expense, notify such warehouseman, bailee, agent or processor of the security interest to hold all such collateral security for the account of Navistar Financial. The
foregoing shall apply to single items of Collateral described herein with a fair market value greater than $100,000; provided that if the aggregate amount of Collateral with a fair market value not exceeding $100,000 exceeds $10,000,000 (the
“Maximum Level”), the foregoing shall apply to all Collateral acquired after such Maximum Level has been exceeded. 
  
 (f) If any Collateral constituting “goods” (as defined in the UCC) is regularly held for sale by any third party (including, without limitation,
any Used Truck Center), Navistar Financial shall, at its expense, promptly following the later of the date hereof and the date on which such third party begins regularly to receive any such goods, (i) file in the applicable filing offices
appropriately completed UCC financing statements, and (ii) execute, deliver, file and record any other statement, assignment, instrument, document, agreement or other paper and take any other action that from time to time may be necessary, or that
the Trustee may reasonably request, to ensure that such goods shall not be subject to the claims of such third party’s creditors. The foregoing provision shall apply to single items of Collateral described herein with a fair market value
greater than $100,000; provided that if the aggregate amount of Collateral with a fair market value not exceeding $100,000 exceeds the Maximum Level, the foregoing provision shall apply to all Collateral acquired after such Maximum Level has
been exceeded. 
  
 (g) Within 60 days after the date hereof,
Navistar Financial shall furnish to the Trustee file search reports from each UCC filing office set forth in Schedule 6 to the Perfection Certificate confirming the filing information set forth in such Schedule; provided that if Navistar
Financial’s reasonable efforts to provide such a search report within such 60-day period from any such filing office are unsuccessful, Navistar Financial shall furnish to the Trustee such a file search report from such filing office as promptly
as is reasonably practicable. 
  
 (h) If a Notice of Acceleration
is in effect, Navistar Financial shall, subject to Section 2.06, immediately upon its receipt thereof, deliver or cause to be delivered to the Trustee for deposit in the Collateral Account all Proceeds of Equipment, General Intangibles or Inventory
that is sold or otherwise disposed of pursuant to Section 2.05. 
  
 (i) Navistar Financial will not, without the prior consent of the Releasing Secured Parties, sell, lease, exchange, assign or otherwise dispose of or grant any option with respect to any Collateral, except as permitted by the Credit
Agreement, Section 2.02, Section 2.05, Section 4.02 or Section 4.07(d). 
  
 SECTION 4.02. Marketable Securities. (a) On or before the date hereof, Navistar Financial shall, subject to Section 2.06(d), transfer or cause to be transferred to one or more of the Securities Accounts referred to below (i) all
marketable securities (other than (x) 
  

 25 

 repurchase agreements and (y) marketable securities as to which ownership or the existence of a security interest is
evidenced by entries on the books of a “securities intermediary” (as defined in the UCC), custodian or other entity) owned by Navistar Financial on the date hereof, and (ii) all securities subject to, and all confirmations relating to,
repurchase agreements constituting marketable securities owned by Navistar Financial on the date hereof. The marketable securities so transferred (other than repurchase agreements and confirmations) shall be in suitable form for transfer by delivery
or shall be accompanied by duly executed and undated instruments of transfer or assignment in blank, in form and substance reasonably satisfactory to the Trustee. 
  
 (b) On and after the date hereof, all investments in marketable securities by Navistar Financial (except investments in
marketable securities that are UCC Deposit Accounts or are covered by subsection (c) below) shall be made by and in the name of the Trustee at the written direction of Navistar through one or more accounts (each a “Securities Account”)
established in the name of the Trustee and maintained with the Trustee or any agent thereof appointed for the purpose as provided in subsections (c) and (d) below. Unless a Notice of Acceleration is in effect, the purchase, sale or presentation for
payment of any such marketable securities and the receipt by Navistar Financial of the proceeds of the sale or collection thereof and any interest paid thereon shall all occur as provided below in this subsection. To initiate the purchase of such
marketable securities, Navistar Financial will in writing (i) inform the Trustee as to the particulars of such purchase and (ii) cause to be transferred to a bank account designated by, and in the name of, the Trustee (either as Trustee or in its
individual capacity) funds, and/or instruct the Trustee to apply funds received by the Trustee in respect of other marketable securities, in an amount equal to the sum of (x) the purchase price plus (y) any brokers’ fees and other out-of-pocket
expenses reasonably expected to be incurred in connection with such purchase, whereupon the Trustee will make arrangements (either directly or through one or more agents) for the purchase of such marketable securities, including the payment of the
purchase price thereof. All marketable securities (other than repurchase agreements) purchased by the Trustee as aforesaid (and all securities subject to, together with all confirmations relating to, repurchase agreements) will be delivered to and,
subject to the following sentence, held in the Securities Accounts. To initiate a sale or presentation for payment of such marketable securities, Navistar Financial will inform the Trustee in writing as to the particulars of such sale or
presentation, whereupon the Trustee will make arrangements (either directly or through the appropriate agents) for the sale or presentation of such marketable securities, and the transfer of funds received by the Trustee or such agents on the sale
or collection of such marketable securities to such bank account of Navistar Financial (other than a Proceeds Deposit Account that is not a UCC Deposit Account) as shall have been designated by Navistar Financial for the purpose, or for the
application of such funds to another investment in marketable securities, as Navistar Financial shall elect; provided that the Trustee shall revoke any such arrangements previously made for the transfer of such funds to a bank account of
Navistar Financial promptly after receiving a Notice of Acceleration. Any interest received by the Trustee or any agent thereof in respect of marketable securities held in a Securities Account will be similarly transferred or applied. 
  
 (c) Notwithstanding anything contained in this Agreement to the contrary, on
and after the date hereof Navistar Financial may make investments through a Securities Account in marketable securities as to which ownership or the existence of a security interest is evidenced by entries on the books of a “securities
intermediary” (as defined in the UCC), custodian or other entity; provided that, 
  

 26 

 
(i) (A) such investment is made through a Securities Account maintained by the Trustee with a Permitted Financial Intermediary, 
  
 (B) concurrently with the making of such investment, such
Permitted Financial Intermediary sends to the Trustee confirmation, substantially in the form of Exhibit B hereto, of the purchase of such marketable securities, and also by book entry to the relevant Securities Account identifies such marketable
securities as subject to the Trustee’s Security Interest, 
  
 (C) such Permitted Financial Intermediary shall have previously received a copy of this Agreement signed by Navistar Financial, and 
  
 (D) Navistar Financial promptly takes any other action that may be necessary under the UCC, or that the
Trustee may reasonably request, to perfect the Trustee’s Security Interest in such marketable securities; 
  
 or 
  
 (ii) (A)
before Navistar Financial makes such investment, the Trustee (1) has received an Opinion of Counsel setting forth the procedures to be followed so that, after making such investment, the Trustee will have a valid security interest in the relevant
marketable securities which is perfected to the same extent as if physical delivery were made to the Trustee of marketable securities in bearer definitive form or in other suitable form for such delivery, and (2) has not received notice of any
change in the law upon which such Opinion of Counsel is based, and 
  
 (B) the procedures set forth in such Opinion of Counsel are followed. 
  
 Navistar Financial shall promptly notify the Trustee as to any change in the law upon which any Opinion of Counsel referred to in clause (ii)(A) above is based and shall not make any investment in marketable
securities of the type covered in such Opinion of Counsel (other than any such investment made in compliance with clause (i) above) until it furnishes the Trustee with a new Opinion of Counsel to the effect set forth in clause (ii)(A)(1) above.

  
 To initiate the purchase of any marketable securities in
accordance with clause (i) above, Navistar Financial will (x) inform the Trustee in writing as to the particulars of such purchase and (y) cause to be transferred to a bank account designated by, and in the name of, the Trustee (either as Trustee or
in its individual capacity) funds, and/or instruct the Trustee to apply funds received by the Trustee in respect of other marketable securities, in an amount equal to the sum of (x) the purchase price plus (y) any brokers’ fees and other
out-of-pocket expenses reasonably expected to be incurred in connection with such purchase, whereupon the Trustee will make arrangements through a Permitted Financial Intermediary for the purchase of such marketable securities, including the payment
of the purchase price thereof. 
  

 27 

 Unless a Notice of Acceleration is in effect, the Trustee shall, upon the written instructions and for
the account of Navistar Financial, sell or otherwise dispose of marketable securities in which Navistar Financial has invested pursuant to this subsection (c). To initiate a sale or other disposition of such marketable securities, Navistar Financial
will inform the Trustee in writing as to the particulars of such sale or presentation, whereupon the Trustee will make arrangements through, and in accordance with the usual procedures of, the relevant Permitted Financial Intermediary for the sale
or disposition of such marketable securities, and the transfer of funds received by the Trustee on the sale or collection of such marketable securities to such bank account of Navistar Financial (other than a Proceeds Deposit Account that is not a
UCC Deposit Account) as shall have been designated by Navistar Financial for the purpose, or for the application of such funds to another investment in marketable securities, as Navistar Financial shall elect; provided that the Trustee shall
revoke any such arrangements previously made for the transfer of such funds to a bank account of Navistar Financial promptly after receiving a Notice of Acceleration. Any interest received by the Trustee or any agent thereof in respect of marketable
securities held in accordance with this subsection (c) will be similarly transferred or applied. 
  
 (d) The Trustee shall from time to time appoint, as its agent or agents, one or more Persons (which in no case shall be Navistar Financial or an
Affiliate, employee or agent of Navistar Financial) designated by Navistar Financial and reasonably acceptable to the Trustee, located in New York, with whom a Securities Account shall be established and maintained. Prior to establishing such a
Securities Account, the Person so appointed shall deliver to the Trustee a writing acknowledging that (i) in opening such Securities Account and holding securities therein, such Person is acting as agent of the Trustee, and will conduct transactions
in securities in such account in the name and upon the instruction of the Trustee (with any confirmations of such transactions sent by such Person to reflect that fact), and (ii) such Person shall in no event (except upon the termination of this
Agreement as provided in Section 9.10) deliver any securities held in such Securities Account to Navistar Financial or any Affiliate, employee or agent of Navistar Financial. The provisions of clause (ii) of the preceding sentence shall also apply
to any Securities Account maintained with the Trustee. 
  
 (e)
Upon receipt of a Notice of Acceleration and thereafter so long as such Notice of Acceleration is in effect, the Trustee shall transfer or cause to be transferred for deposit in the Collateral Account any funds in the Securities Accounts.

  
 (f) Upon the sale or disposition of any marketable securities
pursuant to this Section, the Trustee’s Security Interest therein (but not in the Proceeds arising from such sale or disposition) shall, without any further action on the part of the Trustee, be automatically released. 
  
 SECTION 4.03. Subsidiary Shares and Subsidiary Notes. (a) On or before
the date hereof, Navistar Financial shall deliver or cause to be delivered to the Trustee, a co-trustee or any of their respective agents, all Subsidiary Notes and certificates representing Subsidiary Shares endorsed or accompanied by duly executed
and undated instruments of transfer and assignment in blank so as to be in suitable form for transfer by endorsement and delivery by the Trustee, all in form and substance reasonably satisfactory to the Trustee. 
  

 28 

 (b) If a Notice of Acceleration is in effect, the Trustee may, in its sole discretion, cause any or all
of the Subsidiary Shares to be transferred of record into the name of the Trustee or its nominee. If a Notice of Acceleration is in effect, Navistar Financial will promptly give or cause to be given to the Trustee copies of any notices or other
communications received by it with respect to Subsidiary Shares registered in the name of Navistar Financial or any Navistar Financial Subsidiary and required to be delivered to the Trustee hereunder and the Trustee will promptly give to Navistar
Financial copies of any notices and communications received by the Trustee with respect to Subsidiary Shares registered in the name of the Trustee or its nominee. 
  
 (c) If any Navistar Financial Subsidiary at any time issues any shares of capital stock of any class (including, without
limitation, substitute shares of capital stock) to Navistar Financial or owes any Intercompany Debt which is evidenced by a promissory note or “instrument” (as defined in Article 9 of the UCC), including any substitute note or instrument,
which has not previously been delivered hereunder, Navistar Financial will immediately pledge and deposit with the Trustee, a co-trustee or any of their respective agents certificates representing all such shares and such notes or instruments
evidencing such Intercompany Debt as additional security for the Secured Obligations; provided that in no event shall more than 65% of the total outstanding capital stock of any Excluded Foreign Subsidiary be required to be so pledged and
deposited. All such shares, notes or instruments shall be endorsed or accompanied by duly executed and undated instruments of transfer and assignment in blank so as to be in suitable form for transfer by endorsement and delivery by the Trustee, all
in form and substance reasonably satisfactory to the Trustee. All such shares, notes and instruments constitute Pledged Securities and are subject to all relevant provisions of this Agreement. 
  
 (d) If any Navistar Financial Subsidiary at any time holds any certificate or
“instrument” (as defined in Article 9 of the UCC) representing such Navistar Financial Subsidiary’s right to receive any payment from the purchasers of any Receivables sold by such Navistar Financial Subsidiary or from any trust to
which any Receivables shall have been transferred (including, without limitation, any substitute certificate or instrument) which has not been previously delivered hereunder, Navistar Financial will immediately cause such Navistar Financial
Subsidiary to pledge and deposit such certificate or instrument with Navistar Financial, and Navistar Financial will immediately deliver such certificate or instrument to the Trustee hereunder as additional security (to the extent of Navistar
Financial’s interest therein) for the Secured Obligations. 
  
 (e) If a Notice of Acceleration is in effect, Navistar Financial shall promptly upon the request of the Required Secured Parties, (i) deliver to the Trustee hereunder as additional security (to the extent of Navistar Financial’s
interest therein) for the Secured Obligations any “instruments” (as defined in Article 9 of the UCC) or “letters of credit” (as defined in the UCC) which are pledged to and held by or on behalf of Navistar Financial and (ii) make
appropriate arrangements for any marketable securities as to which ownership or the existence of a security interest is evidenced by book entries which are pledged to Navistar Financial to be held by a Permitted Financial Intermediary in the name
and for the account of the Trustee as additional security (to the extent of Navistar Financial’s interest therein) for the Secured Obligations. All such instruments and letters of credit shall be endorsed or accompanied by duly executed and
undated instruments of transfer and assignment in blank so as to be in suitable form for transfer by endorsement and delivery by the Trustee, all in form and substance reasonably satisfactory to the Trustee. 
  

 29 

 (f) The Trustee shall have the right to receive and, while any Notice of Acceleration is in effect, to
retain as Collateral hereunder in the Collateral Account all dividends and other payments and distributions made upon or with respect to (A) the Subsidiary Shares and (B) any Instruments delivered hereunder pursuant to Section 4.01(a)(ii). Navistar
Financial shall take all such action as the Trustee may deem necessary or appropriate to give effect to such right. All such dividends and other payments and distributions which are received by Navistar Financial shall be received in trust for the
benefit of the Trustee and the other Secured Parties and, if the Trustee so directs so long as a Notice of Acceleration is in effect, shall be segregated from other funds of Navistar Financial and shall forthwith upon demand by the Trustee so long
as a Notice of Acceleration is in effect be paid over to the Trustee as Collateral for deposit in the Collateral Account in the same form as received (with any necessary endorsement). After a Notice of Acceleration has been cancelled, the
Trustee’s right to retain dividends, interest and other payments and distributions under this Section 4.03(g) shall cease and the Trustee shall pay over to Navistar Financial any such Collateral retained by it while such Notice of Acceleration
was in effect. 
  
 (g) (i) Unless a Notice of Acceleration shall
be in effect, Navistar Financial shall have the right, from time to time, to vote and to give consents, ratifications and waivers with respect to the Subsidiary Shares and the Trustee shall, upon receiving a written request from Navistar Financial,
deliver to Navistar Financial or as specified in such request such proxies, powers of attorney, consents, ratifications and waivers in respect of any of the Subsidiary Shares which are registered in the name of the Trustee or its nominee as shall be
specified in such request and be in form and substance satisfactory to the Trustee. 
  
 (ii) If a Notice of Acceleration has been received by the Trustee and so long as such Notice of Acceleration is in effect, the Trustee shall have the right (to the extent permitted by law), and Navistar Financial
shall take all such action as may be necessary, or as the Trustee may reasonably request, to give effect to such right, to vote and to give consents, ratifications and waivers, and take any other action with respect to any or all of the Subsidiary
Shares with the same force and effect as if the Trustee were the absolute and sole owner thereof. 
  
 SECTION 4.04. Liens on the Collateral. Navistar Financial shall not create or suffer to exist any Lien on any Collateral other than (except with
respect to Subsidiary Shares) Permitted Liens. Without limiting the generality of the foregoing, if any Lien on all or any part of the Collateral shall be filed pursuant to Section 4068 or 302(f) of ERISA or Section 6323 of the Internal Revenue
Code, Navistar Financial shall cause such Lien to be released within 30 days after such filing. 
  
 SECTION 4.05. Place of Business and Collateral. Navistar Financial will not change the location of any of (i) its places of business, (ii) its
chief executive office, (iii) its jurisdiction of incorporation or (iv) the offices or other locations where it keeps or holds any Collateral or any records relating thereto from the location listed in the Perfection Certificate (except to the
extent temporary location elsewhere is needed in connection with litigation, repossession or other collection activities) unless Navistar Financial, promptly, and in any event 
  

 30 

 within 30 days after making such change, notifies the Trustee of such change, makes all UCC filings required by Section
4.01(a) and takes all other action necessary, or that the Trustee may reasonably request, to preserve, perfect, confirm and protect (to the extent contemplated hereby) the Trustee’s Security Interest. Navistar Financial will not in any event
change the location of any Collateral, if such change would cause the Trustee’s Security Interest in such Collateral to lapse or cease to be perfected. Navistar Financial will at all times maintain its chief executive office within one of the
48 contiguous states in which Article 9 of the Uniform Commercial Code (Secured Transactions) is in effect. Navistar Financial will permit the Trustee, or any agent designated by it, at any time and from time to time at the Trustee’s reasonable
request during normal business hours with reasonable prior notice, to inspect, audit, check and make abstracts from Navistar Financial’s Books and Records. 
  

SECTION 4.06. Insurance. Navistar Financial will cause any group, property or casualty insurance policy maintained by it on the Collateral to
name the Trustee, for the benefit of the Secured Parties, as an additional named insured, loss payee, beneficiary or otherwise, as appropriate, to the extent its interest may appear. 
  
 SECTION 4.07. Collection Procedures. (a) On or before the date hereof,
Navistar Financial will establish a system of operations, accounts and instructions to the Concentration Bank, Collection Banks, Proceeds Account Banks, International, Dealers and Account Debtors, as provided in this Section. 
  
 Navistar Financial shall, subject to the provisions of Section 4.13, (i)
instruct any Account Debtor obligated to make payments under any Navistar Financial Receivable (other than any Navistar Financial Receivable referred to in clause (ii) below) to make such payments directly to a separate special purpose account of
Navistar Financial maintained at a Proceeds Account Bank and containing only Proceeds (a “Proceeds Deposit Account”) and (ii) subject to the provisions of Section 4.13, instruct any Account Debtor obligated to make payments under any
Navistar Financial Receivable referred to in clause (d) of the definition of Navistar Financial Receivables to make such payments (except to the extent that any Permitted Receivables Sale Agreement may require otherwise with respect to Receivables
sold thereunder) to lock-boxes (the “Lock-boxes”) (in the case of any payments in the form of cash, checks, drafts and other instruments or items for the payment of money) and accounts (the “Collection Accounts”) (in the case of
any payments made by wire transfer or similar electronic means) maintained by Navistar Financial with the Collection Banks. Payments on account of Wholesale Receivables shall be paid to Lock-boxes and Collection Accounts which are separate from
those to which payments on account of Retail Receivables are made. Navistar Financial shall, and shall request International and each Dealer to, pay forthwith into Lock-boxes and Collection Accounts, as appropriate, in the form received (or, in the
case of any such payment received by wire transfer or similar electronic means, by such means), all payments on account of Wholesale Receivables and Retail Receivables received directly by Navistar Financial, International or any such Dealer;
provided that any such payments received by International shall be deposited forthwith by International into the applicable retail suspense account of Navistar Financial (each such suspense account and each suspense account referred to in the
next succeeding sentence, a “Suspense Account”) maintained by a Collection Bank. Navistar Financial shall instruct each Collection Bank to transfer by wire transfer or similar electronic means, on the same business day as received, all
amounts deposited by wire transfer or similar electronic means into the 
  

 31 

 wholesale or retail Collection Account maintained by such Collection Bank pursuant to this Section into a special purpose
account of Navistar Financial maintained at the Concentration Bank (the “Proceeds Allocation Account”); provided that, if such Collection Bank receives any such amounts on a day that is not a business day, or too late on a business
day to make such a transfer in accordance with such Collection Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall instruct each Collection Bank (x) to deposit
all cash, checks, drafts and other instruments or items for the payment of money paid into the wholesale or retail Lock-box (if any) maintained by such Collection Bank pursuant to this Section forthwith in the wholesale or retail Suspense Account of
Navistar Financial, as appropriate, maintained by such Collection Bank (except that such Collection Bank may deal with items which are postdated, improperly endorsed or otherwise irregular in accordance with such Collection Bank’s usual
procedures) and (y) to transfer by wire transfer or similar electronic means all cash, checks, drafts and other instruments or items deposited into any Suspense Account maintained by such Collection Bank to the Proceeds Allocation Account on the
same business day as such items clear in accordance with such Collection Bank’s customary clearing schedule; provided that, if any such items so clear too late on a business day to make such a transfer in accordance with such Collection
Bank’s normal procedures, then such Collection Bank may make such transfer on the next succeeding business day. Navistar Financial shall not deposit or, except as set forth above in this subsection (a), cause to be deposited any amount in any
Proceeds Deposit Account. 
  
 The Trustee is hereby directed to
instruct the Concentration Bank to follow the instructions of Navistar Financial given pursuant to this subsection (a). Navistar Financial shall instruct the Concentration Bank to retain all amounts transferred into the Proceeds Allocation Account
in such account until they have been identified by Navistar Financial, either by actual identification or, so long as no Notice of Acceleration is in effect, by reasonable estimation in accordance with Navistar Financial’s usual procedures, as
(i) Sold Collections, (ii) Retained Collections or (iii) other amounts. Upon such identification, (w) Navistar Financial shall provide prompt notice thereof to the Concentration Bank and the Trustee, (x) Retained Collections shall be transferred
forthwith to a Proceeds Deposit Account, (y) Sold Collections shall be transferred in accordance with the terms under which the underlying Receivables were sold and (z) other amounts shall be transferred in accordance with Navistar Financial’s
usual procedures. Such identification by Navistar Financial shall be effected as soon as reasonably practicable. 
  
 Navistar Financial shall not permit any Proceeds to remain in any account described in this subsection (a) (other than any such account that is a UCC
Deposit Account) more than 10 days after receipt of such Proceeds by a Collection Bank. 
  
 If, notwithstanding the foregoing, the Trustee or any Purchaser shall in good faith challenge Navistar Financial’s identification of any item of payment or shall in good faith challenge any of Navistar
Financial’s formulas for allocating items of payment, Deloitte & Touche LLP (or such other accounting firm as shall be acceptable to Navistar Financial, such Purchaser and the Trustee), at Navistar Financial’s expense, shall determine
the proper identification of such item of payment or the propriety of such allocation formula. If any such determination shall result in additional amounts being transferable to a Proceeds Deposit Account with respect to any such item of payment,
Navistar Financial shall promptly so transfer such additional amounts and, if it has been determined that Navistar Financial’s formula for 
  

 32 

 allocation was in error, the proper allocation formula shall thereafter be applied to allocate items of payment, subject
to any subsequent revision as provided herein. No such determination shall prevent Navistar Financial, the Trustee or any Purchaser from litigating a claim to a greater portion of such funds. 
  
 Navistar Financial will use all reasonable efforts to cause International and
each Account Debtor, Dealer, Proceeds Account Bank and Collection Bank to comply with the foregoing procedures and instructions; provided that the failure of any of them so to comply shall not constitute a breach of this subsection.

  
 (b) The name in which such Lock-boxes, Collection Accounts,
Suspense Accounts and Proceeds Allocation Account are carried shall clearly indicate that (i) certain of the items and funds deposited therein are the property of Navistar Financial subject to the Trustee’s Security Interest and (ii) certain
other items and funds deposited therein are the property of one or more other Persons. The name in which each Proceeds Deposit Account is carried shall reflect the fact that all items and funds deposited therein are the property of Navistar
Financial subject to the Trustee’s Security Interest hereunder. The instructions governing such Lock-boxes and accounts shall not be altered in any material manner which is inconsistent with any Secured Instrument or which could reasonably be
expected to adversely affect the Trustee, any Secured Party or any other holder of a Secured Obligation without the prior consent of the Required Secured Parties. 
  
 (c) Not later than the date hereof, as to (i) any Lock-box, Suspense Account or Collection Account with a Collection Bank
established on or before the date hereof and (ii) any Proceeds Deposit Account with a Proceeds Account Bank established on or before the date hereof, and prior to establishing any such lock-boxes and accounts with any bank after the date hereof,
Navistar Financial will cause such bank to deliver a writing to the Trustee confirming that the bank in question has received the instructions and established the relevant accounts and procedures referred to in this Section. Navistar Financial may,
from time to time after the date hereof, designate a bank to act as a Collection Bank or a Proceeds Account Bank and such bank shall become a Collection Bank or a Proceeds Account Bank for purposes of this Agreement, provided that (i) such
bank is located in one of the 48 contiguous states in which Article 9 of the Uniform Commercial Code (Secured Transactions) is in effect, (ii) such bank has delivered a writing to the Trustee confirming the matters set forth in the first sentence of
this subsection (c), and (iii) Navistar Financial has delivered to the Trustee an amended Schedule B or C, setting forth the then current list of Collection Banks or Proceeds Account Banks, as the case may be. 
  
 (d) Unless a Proceeds Account Bank has received notice from the Trustee that
a Notice of Acceleration is in effect, Navistar Financial shall be entitled to instruct such Proceeds Account Bank to transfer amounts held in a Proceeds Deposit Account maintained with such bank to or upon the order of Navistar Financial,
whereupon, unless such amounts are deposited in a UCC Deposit Account, the Trustee’s Security Interest in such amounts (but not in any property or rights concurrently or subsequently acquired by Navistar Financial in consideration of Navistar
Financial’s payment of any such amounts) shall cease immediately without any further action on the part of the Trustee; provided that Navistar Financial shall not instruct any Proceeds Account Bank to transfer funds from a Proceeds
Deposit Account to any other bank account maintained by Navistar Financial which is not a Proceeds Deposit Account except to facilitate 
  

 33 

 the prompt application thereof in Navistar Financial’s business. After receiving notice from the Trustee that a
Notice of Acceleration is in effect, each Proceeds Account Bank shall immediately and from time to time thereafter (unless it receives notice from the Trustee stating that such Notice of Acceleration is no longer in effect) transfer all funds held
in its Proceeds Deposit Account to the Trustee for deposit in the Collateral Account and shall notify the Trustee by facsimile transmission as to the details of each such transfer. 
  
 (e) Unless a Notice of Acceleration is in effect, Navistar Financial will, at its expense and in accordance with its normal
commercial practices, for the benefit of the Trustee: 
  
 (i) ask for, demand, sue for, collect or cause to be collected from the Account Debtor or Account Debtors on each Navistar Financial Receivable, as and when due, any and all amounts, including interest, owing under or on account of such
Navistar Financial Receivable; 
  
 (ii)
compromise and settle any dispute related to any Navistar Financial Receivable; and 
  
 (iii) take or cause to be taken such action to repossess goods securing any Navistar Financial Receivable, or to enforce any rights or
liens arising thereunder and to dispose of such repossessed goods as Navistar Financial may deem proper; 
  
 provided that Navistar Financial will not be required to take any action under this subsection which would be contrary to any applicable law or court order. 
  
 (f) Not later than the date hereof, the Trustee will cause the Concentration
Bank to deliver a writing to the Trustee and Navistar Financial, confirming that the Concentration Bank has received the instructions of the Trustee and Navistar Financial referred to in subsection (a) of this Section. The Concentration Bank may at
any time, by giving written notice to the Trustee and Navistar Financial, resign its position as the Trustee’s agent and be discharged of its responsibilities hereunder, such resignation to be effective upon the appointment by the Trustee of a
successor Concentration Bank (which Navistar Financial shall have the right to designate) and the acceptance of such appointment by such successor Concentration Bank. If no successor Concentration Bank shall be appointed and shall have accepted such
appointment within 30 days after the Concentration Bank gives the aforesaid notice of resignation, the Trustee may appoint a successor Concentration Bank with the consent of Navistar Financial or apply to any court of competent jurisdiction to
appoint a successor Concentration Bank. Upon the instruction of Navistar Financial, the Trustee shall, upon ten days’ prior notice, remove the Concentration Bank and appoint as its agent a successor Concentration Bank designated by Navistar
Financial, provided that such successor Concentration Bank shall have accepted such appointment and delivered a writing to the Trustee and Navistar Financial confirming the matters set forth in the first sentence of this subsection (f). Any
successor Concentration Bank shall be a bank (i) located in one of the 48 contiguous states in which Article 9 of the Uniform Commercial Code (Secured Transactions) is in effect and in a state in which Section 9-306 of the Uniform Commercial Code
provides for continuous perfection of a security interest in separate deposit accounts containing only proceeds and (ii) having capital, surplus and undivided profits of at least $250,000,000 if there be such a bank with such capital, surplus and
undivided profits willing, qualified and able to act as Concentration Bank upon reasonable or customary terms. 
  

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 SECTION 4.08. Delivery of Secured Instruments. Within 30 days after the date hereof, Navistar
Financial shall deliver to the Trustee true and complete copies of all Secured Instruments as in effect on the date hereof. Navistar Financial will deliver to the Trustee, promptly upon the execution thereof, a true and complete copy of (i) each
Secured Instrument entered into after the date hereof and (ii) each amendment, modification or supplement to any Secured Instrument. 
  
 SECTION 4.09. Information as to Secured Parties. Navistar Financial shall deliver to the Trustee between November 1 and November 15 in each year,
and from time to time upon reasonable request of the Trustee, a list setting forth as of a date not more than 30 days prior to the date of such delivery, (i) for each Secured Instrument (other than any Secured Instrument referred to in clause (iii),
(iv) or (v) below), the aggregate unpaid principal or face amount outstanding thereunder, (ii) for each Secured Instrument (other than any Debt Indenture and the Credit Agreement), to the extent known, the names of the holders of Secured Obligations
outstanding thereunder and the unpaid principal or face amount thereof owing to each such holder, (iii) the aggregate unpaid principal amount of Indenture Obligations outstanding under each Debt Indenture and the name and address of the Indenture
Trustee thereunder, (iv) the aggregate unpaid principal amount of loans outstanding under the Credit Agreement and the name and address of the Administrative Agent thereunder, and (v) in the case of Secured Obligations other than Indenture
Obligations and the Credit Agreement, the name and address of any duly authorized representative of the Secured Parties holding such Secured Obligations designated in accordance with Section 7.11(b). Navistar Financial shall furnish to the Trustee
within 30 days after the date hereof a list setting forth the name and address of each party to whom notices must be sent under each Secured Instrument in effect on the date hereof and Navistar Financial shall furnish promptly to the Trustee any
changes or additions to such list of which it receives notice. The Trustee shall provide a copy of such list to any Secured Party requesting it. 
  
 SECTION 4.10. Stamp and Other Similar Taxes. Navistar Financial shall indemnify and hold harmless the Trustee and each Secured Party from any
present or future claim or liability for any stamp or any other similar tax and any penalties or interest with respect thereto which may be assessed, levied or collected by any jurisdiction in connection with this Agreement, the Trust Estate or any
Collateral. 
  
 SECTION 4.11. Filing Fees; Excise Taxes.
Navistar Financial shall make any and all payments in respect of all search, filing, recording and registration fees, taxes, excise taxes and other similar imposts which may be payable or determined to be payable in respect of the execution,
delivery and performance of this Agreement. 
  
 SECTION 4.12.
Collateral Reports. Navistar Financial shall furnish or cause to be furnished to the Trustee from time to time, as promptly as feasible upon the Trustee’s reasonable request, schedules or other reports generated by Navistar Financial in
the ordinary course of business identifying and describing the Collateral (including, without limitation, the locations of Books and Records and other Collateral), all as the Trustee may reasonably request. 
  

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 SECTION 4.13. Government Receivables. (a) Navistar Financial’s right, title and interest in
any Receivables as to which the United States of America or any agency or a department thereof is the obligor (“Government Receivables”) shall constitute “Navistar Financial Receivables” except for purposes of Sections 3.01(d),
(e) and (g); provided that nothing in this Agreement shall obligate Navistar Financial to comply with the federal Assignment of Claims Act as set forth in 31 U.S.C.A. § 3727 (1983) and 41 U.S.C.A. § 15 (1987) (the “FACA”) until
it is required to do so pursuant to subsection (b) below or to instruct any Account Debtor under any Government Receivable to make any payment into a Lock-box or Collection Account referred to in Section 4.07. 
  
 (b) If at any time: 
  
 (i) Navistar Financial notifies the Trustee that it desires
to comply with the FACA with respect to the assignment to the Trustee of any Government Receivable, or 
  
 (ii) the Required Secured Parties notify the Trustee and Navistar Financial that (A) they have determined that Government Receivables
constituted at the end of any month more than 5% of the total (net) receivables of Navistar Financial, determined on a basis consistent with the statement of consolidated financial condition of Navistar Financial and its consolidated Subsidiaries as
of October 31, 2004 and the related statements of consolidated income and retained earnings and consolidated cash flow for the fiscal year then ended, together with the notes thereto, included in the 2004 Annual Report and reported on by Deloitte
& Touche LLP, and (B) they have decided to require Navistar Financial to comply with the FACA with respect to the assignment to the Trustee of Government Receivables to the extent necessary so that Government Receivables as to which Navistar
Financial has not so complied will constitute less than 5% of such total (net) receivables, 
  
 then Navistar Financial will file with the appropriate contracting officer, head of department or agency or disbursing officer appropriate written notices of assignment which comply with the FACA 
  
 (x) within 30 days after the Trustee’s receipt of a
notice described in clause (i) or (ii) above as to Government Receivables arising before the receipt of such notice, and 
  
 (y) promptly after the execution of the relevant contract as to Government Receivables arising after receipt of such notice 
  
 to the extent required to comply with clause (i) or (ii) above and permitted by the terms of
such Government Receivables. 
  
 (c) Notwithstanding any other
provision of this Agreement, unless a Notice of Acceleration is in effect, any amounts received by the Trustee with respect to any Government Receivables assigned pursuant to the FACA shall be deposited in one or more special demand accounts of the
Trustee or any of its agents (each a “Government Account”), the balance of which shall be subject to withdrawal or transfer upon the order of Navistar Financial in accordance with the Trustee’s or such agent’s normal rules and
regulations governing 
  

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 commercial demand deposit accounts. If a Notice of Acceleration is delivered and so long as it remains in effect, any
amounts in Government Accounts shall be held and applied by the Trustee or such agent in accordance with the provisions of Article VI. The Trustee agrees that such reports as may be requested by Navistar Financial as to the source of funds deposited
in the Government Accounts will be rendered at reasonable intervals. 
  
 ARTICLE V 
  
 ACCELERATION OF SECURED OBLIGATIONS;
REMEDIES 
  
 SECTION 5.01. Notice of Acceleration. (a) Upon
receipt of a Notice of Acceleration, the Trustee shall (i) immediately notify Navistar Financial, any co-trustee, each Purchaser, the Concentration Bank, each Proceeds Account Bank and each insurance company that has issued an insurance policy
naming the Trustee as an additional named insured, loss payee, beneficiary or otherwise in accordance with Section 4.06 (provided that Navistar Financial shall have notified, and hereby agrees to notify, the Trustee of the proper address, or
facsimile number for such each such notice) of the receipt and contents thereof and (ii) within ten days thereafter, notify each Secured Party thereof. So long as such Notice of Acceleration is in effect, the Trustee shall exercise the rights and
remedies provided in this Article. The Trustee is not empowered to exercise any remedy hereunder unless a Notice of Acceleration is in effect. 
  
 (b) A Notice of Acceleration shall become effective upon receipt thereof by the Trustee. A Notice of Acceleration, once effective, shall remain in effect
unless and until it is cancelled as provided in Section 5.01(c). 
  
 (c) The party or parties giving a Notice of Acceleration shall be entitled to cancel such notice by delivering a written notice of cancellation to the Trustee (i) before the Trustee takes any action to exercise any remedy with respect to
the Collateral or (ii) thereafter, if the Trustee believes that all actions it has taken to exercise any remedy or remedies with respect to the Collateral can be reversed without undue difficulty; provided that no Notice of Acceleration shall
be cancelled more than 30 days after it is received by the Trustee. The Trustee shall immediately notify Navistar Financial as to the receipt and contents of any such notice of cancellation and shall promptly notify Navistar Financial, any
co-trustee, the Concentration Bank, each Proceeds Account Bank, each insurance company that has received notice of the relevant Notice of Acceleration in accordance with Section 5.01(a), each Purchaser and each other Secured Party as to the
cancellation of any Notice of Acceleration. 
  
 SECTION 5.02.
General Authority of the Trustee over the Collateral. Navistar Financial hereby irrevocably constitutes and appoints the Trustee and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with
full power and authority in the name of Navistar Financial or in its own name, from time to time in the Trustee’s discretion, so long as any Notice of Acceleration is in effect, to take any and all appropriate action and to execute any and all
documents and instruments which may be necessary or desirable to carry out the terms of this Agreement and accomplish the purposes hereof and, without limiting the generality of the foregoing, Navistar Financial hereby gives the Trustee the

  

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 power and right on behalf of Navistar Financial, without notice to or further assent by Navistar Financial, except as
provided in Section 5.03(b), to do the following: 
  
 (i) to ask for, demand, sue for, collect, receive and give acquittance for any and all moneys due or to become due upon, or in connection with, the Collateral; 
  
 (ii) to receive, take, endorse, assign and deliver any and all checks, notes, drafts, acceptances, documents
and other negotiable and non-negotiable instruments and Chattel Paper taken or received by the Trustee as, or in connection with, the Collateral; 
  
 (iii) to commence, prosecute, defend, settle, compromise or adjust any claim, suit, action or proceeding with respect to, or in connection
with, the Collateral; 
  
 (iv) to sell, transfer,
assign or otherwise deal in or with the Collateral or any part thereof or the proceeds or avails thereof as fully and effectively as if the Trustee were the absolute owner thereof; 
  
 (v) to extend the time of payment of any or all thereof and to make any allowance and other adjustments with
reference thereto; and 
  
 (vi) to do, at its
option and at the expense and for the account of Navistar Financial, at any time or from time to time, all acts and things which the Trustee deems necessary to protect or preserve the Collateral and to realize upon the Collateral. 
  
 SECTION 5.03. Remedies; Rights Upon Acceleration of Secured
Obligations. (a) If a Notice of Acceleration is in effect and the related 30-day cancellation period referred to in the proviso to the first sentence of Section 5.01(c) shall have expired: 
  
 (i) The Trustee may at any time, without further notice to
Navistar Financial, notify Account Debtors that a security interest in their obligations has been granted to the Trustee and that payments thereunder or in respect thereof should be made directly to the Trustee. If requested by the Trustee, Navistar
Financial will so notify Account Debtors. The Trustee may in its own name or in the name of others communicate with Account Debtors. 
  
 (ii) All payments received by Navistar Financial under or in connection with the Collateral shall be held by Navistar Financial in trust
for the Trustee, shall be segregated from other funds of Navistar Financial and shall, forthwith upon receipt by Navistar Financial, be turned over to the Trustee, in the same form as received by Navistar Financial (duly endorsed to the Trustee, if
required) for deposit in the Collateral Account. 
  
 (iii) Any and all such payments so received by the Trustee (whether from Navistar Financial or otherwise) shall be deposited by the Trustee in the Collateral Account. Any Proceeds, whether consisting of cash, checks, notes, drafts, bills of
exchange, money orders or commercial paper of any kind whatsoever, shall be deposited or held in the Collateral Account when received. 
  

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 (b) If a Notice of Acceleration is in effect, the Trustee may exercise, in addition to all other rights
and remedies granted to it in this Agreement, all rights and remedies of a secured party under the UCC (whether or not in effect in the jurisdiction where such rights are exercised) and, for the purpose of enforcing any and all rights and remedies
of the Trustee under this Agreement, may (i) enter, with or without process of law and without breach of the peace, any premises where any of the Collateral is or may be located, and without charge or liability to the Trustee seize and remove such
Collateral from such premises and (ii) have access to and use Navistar Financial’s Books and Records relating to the Collateral. Without limiting the generality of the foregoing, Navistar Financial agrees that in any such event the Trustee,
without demand of performance or other demand, advertisement or notice of any kind (except the notice specified below of the time and place of any public or private sale) to or upon Navistar Financial or any other Person (all of which demands,
advertisements and/or notices are hereby waived by Navistar Financial), may forthwith withdraw all cash and investments in the Collateral Account and apply such cash and investments and other cash, if any, then held by it as Collateral as specified
in Section 6.04, withdraw all or any portion of the funds on deposit in any UCC Deposit Account or Government Account and otherwise collect, receive, appropriate and realize upon the Collateral or any part thereof, and/or forthwith sell, lease,
assign, give an option or options to purchase or otherwise dispose of and deliver the Collateral (or contract to do so) or any part thereof in one or more parcels at public or private sale, at any exchange, broker’s board or at any office of
the Trustee or elsewhere in such commercially reasonable manner as it may deem best, for cash or on credit or for future delivery and at such price or prices as the Trustee may deem satisfactory. Upon any such sale the Trustee shall have the right
to deliver, assign and transfer to the purchaser thereof the Collateral so sold. Each purchaser at any such sale shall hold the Collateral so sold to it absolutely and free from any claim or right of whatsoever kind, including any equity or right of
redemption of Navistar Financial which may be waived, and Navistar Financial, to the extent permitted by applicable law, hereby specifically waives all rights of redemption, stay or appraisal which it has or may have under any law now existing or
hereafter adopted. The Trustee or any Secured Party shall have the right upon any such public sale, and, to the extent permitted by law, upon any such private sale or sales, to purchase the whole or any part of the Collateral so sold. Any such
public sale shall be held at such time or times within ordinary business hours and at such place or places as the Trustee may fix in the notice of such sale. The Trustee shall not be obligated to make any such sale pursuant to any such notice. The
Trustee may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may be made at any time or place to which the same
may be so adjourned. In the case of any sale of all or any part of the Collateral on credit or for future delivery, the Collateral sold may be retained by the Trustee until the selling price is paid by the purchaser thereof, but the Trustee shall
not incur any liability in case of the failure of such purchaser to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may again be sold upon like notice. The Trustee is authorized, in connection with any
such sale, if it deems it advisable so to do, (i) to restrict the prospective bidders on or purchasers of any of the Pledged Securities to a limited number of sophisticated investors who will represent and agree that they are purchasing for their
own account for investment and not with a view to the distribution or sale of any of such Pledged Securities, (ii) to cause to be placed on certificates for any or all of the Pledged Securities or on any other securities pledged hereunder a legend
to the effect that such security has not been registered under the Securities Act of 1933, as amended, and may not be disposed of in violation of the provision of said Act, and (iii) to impose such other limitations or conditions 
  

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 in connection with any such sale as the Trustee deems necessary or advisable in order to comply with said Act or any
other law. Navistar Financial covenants and agrees that it will and will cause each Navistar Financial Subsidiary to execute and deliver such documents and take such other action as the Trustee deems necessary or advisable in order that any such
sale may be made in compliance with the law. Navistar Financial further agrees, at the Trustee’s request, to assemble the Collateral, and to make it available to the Trustee at places which the Trustee shall reasonably select, whether at
Navistar Financial’s premises or elsewhere. The Trustee shall deposit the net proceeds of any such collection, recovery, receipt, appropriation, realization or sale in the Collateral Account. To the extent permitted by applicable law, Navistar
Financial waives all claims, damages and demands against the Trustee or any other Secured Party arising out of the foreclosure, repossession, retention or sale of the Collateral. The Trustee shall give Navistar Financial not less than 10 business
days’ notice (which notification shall be deemed given when mailed, postage prepaid, addressed to Navistar Financial at its address determined pursuant to Section 9.01) of the time and place of any public sale or other intended disposition or
of the time after which a private sale or other intended disposition may take place and Navistar Financial agrees that such notice is “reasonable notification” within the meaning of Section 9-611 of the UCC; provided that no such
notice shall be required in the case of the public or private sale or other intended disposition of any Collateral which is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market. The Trustee may
also render any or all of the Collateral unusable at Navistar Financial’s premises and may dispose of such Collateral on such premises without liability for rent or costs. Notwithstanding any provision hereof to the contrary, the rights and
remedies of the Trustee with respect to any Collateral subject to a Senior Lien or an Existing Senior Lien shall be subject to the terms of any subordination agreement with respect thereto executed and delivered in accordance with Section 2.06. The
Trustee shall be entitled to consult with financial advisors, accountants and counsel in connection with the sale of any Collateral and the Trustee shall not be liable for any actions it takes in reliance upon the advice of those financial advisors,
accountants and counsel selected by it without gross negligence or willful misconduct. 
  
 SECTION 5.04. Right to Initiate Judicial Proceedings. If a Notice of Acceleration is in effect, the Trustee (i) shall have the right and power to institute and maintain such suits and proceedings as it may deem
appropriate to protect and enforce the rights vested in it by this Agreement and (ii) may proceed by suit or suits at law or in equity to enforce such rights and to foreclose upon the Collateral and to sell all or, from time to time, any of the
Collateral under the judgment or decree of a court of competent jurisdiction. 
  
 SECTION 5.05. Right to Appoint a Receiver. If a Notice of Acceleration is in effect, upon the filing of a bill in equity or other commencement of judicial proceedings to enforce the rights of the Trustee or of
the other Secured Parties under this Agreement, the Trustee shall, to the extent permitted by law, be entitled as a matter of right to the appointment of a receiver or receivers (who may be the Trustee) of the Trust Estate, or any part thereof, and
of the profits, revenues and other income thereof, pending such proceedings, with such powers as the court making such appointment shall confer, and to the entry of an order directing that the profits, revenues and other income of the property
constituting the whole or any part of the Trust Estate be segregated, sequestered and impounded for the benefit of the Trustee and the Secured Parties, and Navistar Financial irrevocably consents to the appointment of such receiver or receivers and
to the entry of such order; provided that, notwithstanding the appointment of any receiver, the Trustee shall be entitled to retain possession and control of all cash held by or deposited with it pursuant to this Agreement. 
  

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 SECTION 5.06. Instructions of Required Secured Parties. (a) The Required Secured Parties shall
have the right, by one or more instruments in writing executed and delivered to the Trustee, to direct the time, method and place of conducting any proceeding for any right or remedy available to the Trustee, or of exercising any trust or power
conferred on the Trustee, or for the appointment of a receiver, or for the taking of any action authorized by this Article; provided that (i) such direction shall not conflict with the provisions of law or of this Agreement and (ii) the Trustee
shall be indemnified as provided in Section 7.04(d). Nothing in this Section shall impair the right of the Trustee in its discretion to take any action which it deems proper and which is not inconsistent with such direction by the Required Secured
Parties. In the absence of such direction, the Trustee shall have no duty to take or refrain from taking any action unless explicitly required herein. 
  
 (b) If, within 45 days after the Trustee receives a Notice of Acceleration which has not been cancelled, the Trustee shall not have received written
directions from the Required Secured Parties pursuant to subsection (a) above for the exercise of rights or remedies by the Trustee, the Trustee shall, until it receives written directions from the Required Secured Parties, follow written directions
from Secured Parties holding more than 50% of the Secured Obligations then outstanding under the Secured Instruments in respect of which Notices of Acceleration have been given; provided that (i) such direction shall not conflict with the
provisions of applicable law or of this Agreement, (ii) the Trustee shall be indemnified as provided in Section 7.04(d) and (iii) if any Secured Instrument is a Debt Indenture the relevant Indenture Trustee shall be deemed to be the holder of all
Secured Obligations outstanding thereunder. 
  
 SECTION 5.07.
Remedies Not Exclusive. (a) No remedy conferred upon or reserved to the Trustee herein is intended to be exclusive of any other remedy or remedies, but every such remedy shall be cumulative and shall be in addition to every other remedy
conferred herein or now or hereafter existing at law or in equity or by statute. 
  
 (b) No delay or omission by the Trustee to exercise any right, remedy or power hereunder shall impair any such right, remedy or power or shall be construed to be a waiver thereof, and every right, power and remedy
given under this Agreement to the Trustee may be exercised from time to time and as often as may be deemed expedient by the Trustee. 
  
 (c) If the Trustee shall have proceeded to enforce any right, remedy or power under this Agreement and the proceeding for the enforcement thereof shall
have been discontinued or abandoned for any reason or shall have been determined adversely to the Trustee, then Navistar Financial, the Trustee and the Secured Parties shall, subject to any determination in such proceeding, severally and
respectively be restored to their former positions and rights hereunder with respect to the Trust Estate and in all other respects, and thereafter all rights, remedies and powers of the Trustee shall continue as though no such proceeding had been
taken. 
  
 (d) All rights of action and of asserting claims upon
or under this Agreement may be enforced by the Trustee without the possession of any Secured Instrument or Indenture Obligation or the production thereof in any trial or other proceeding relative thereto, and any suit or proceeding instituted by the
Trustee shall be brought in its name as Trustee and any recovery of judgment shall be held as part of the Trust Estate. 
  

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 SECTION 5.08. Waiver and Estoppel. (a) Navistar Financial agrees, to the extent it may lawfully do
so, that it will not at any time in any manner whatsoever claim or take the benefit or advantage of any appraisement, valuation, stay, extension, moratorium, turnover or redemption law, or any law permitting it to direct the order in which the
Collateral shall be sold, now or at any time hereafter in force, which may delay, prevent or otherwise affect the performance or enforcement of this Agreement and hereby waives all benefit or advantage of all such laws and covenants that it will not
hinder, delay or impede the execution of any power granted to the Trustee in this Agreement but will suffer and permit the execution of every such power as though no such law were in force; provided that this subsection (a) shall not be construed as
a waiver of any rights of Navistar Financial under any applicable federal bankruptcy law. 
  
 (b) Navistar Financial, to the extent it may lawfully do so, on behalf of itself and all who may claim through or under it, including, without limitation, any and all subsequent creditors, vendees, assignees and
lienors, waives and releases all rights to demand or to have any marshalling of the Collateral upon any sale, whether made under any power of sale herein granted or pursuant to judicial proceedings or upon any foreclosure or any enforcement of this
Agreement and consents and agrees that all the Collateral may at any such sale be offered and sold as an entirety. 
  
 (c) Navistar Financial waives presentment, demand, protest and any notice of any kind (except notices explicitly required hereunder) in connection with
this Agreement and any action taken by the Trustee with respect to the Collateral. 
  
 SECTION 5.09. Limitation by Law. All rights, remedies and powers provided by this Article and by Article VI may be exercised only to the extent that the exercise thereof does not violate any applicable
provision of law, and all the provisions of this Article are intended to be subject to all applicable mandatory provisions of law which may be controlling and to be limited to the extent necessary so that they will not render this Agreement invalid
or unenforceable in whole or in part. 
  
 ARTICLE VI 
  
 COLLATERAL ACCOUNT; DISTRIBUTIONS 
  
 SECTION 6.01. The Collateral Account. On the date hereof there shall
be established and, at all times thereafter until the trusts created by this Agreement shall have terminated in accordance with the terms hereof, there shall be maintained with the Trustee at the office of the Trustee’s corporate trust division
an account which shall be entitled the “Navistar Financial Collateral Account” (the “Collateral Account”). All moneys which are required by this Agreement to be delivered to the Trustee while a 
  

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 Notice of Acceleration is in effect or which are received by the Trustee or any agent to the Trustee in respect of the
Collateral, whether in connection with the exercise of the remedies provided in this Agreement or otherwise, while a Notice of Acceleration is in effect shall be deposited in the Collateral Account and held by the Trustee as part of the Trust Estate
and applied in accordance with the terms of this Agreement. Upon the cancellation of any Notice of Acceleration pursuant to Section 5.01(c), the Trustee shall cause all funds on deposit in the Collateral Account to be applied as follows: 

 
 (i) all amounts transferred to the Collateral Account
from a Proceeds Deposit Account pursuant to Section 4.07(d) shall be returned to such Proceeds Deposit Account or, at the request of Navistar Financial, to any other Proceeds Deposit Account, and 
  
 (ii) all other amounts remaining in the Collateral Account
(including any amounts transferred to the Collateral Account from a Securities Account pursuant to Section 4.02(e), all dividends and other payments and distributions made upon or with respect to the Subsidiary Shares transferred into the Collateral
Account pursuant to Section 4.03(e) and any insurance proceeds transferred into the Collateral Account) shall be paid over by the Trustee to Navistar Financial or as it may direct. 
  
 SECTION 6.02. Control of Collateral Account. All right, title and interest in and to the Collateral Account shall
vest in the Trustee, and funds on deposit in the Collateral Account shall constitute part of the Trust Estate. The Collateral Account shall be subject to the exclusive dominion and control of the Trustee. 
  
 SECTION 6.03. Investment of Funds Deposited in Collateral Account. The
Trustee shall invest and reinvest moneys on deposit in the Collateral Account at any time at the written direction of Navistar Financial in: 
  
 (i) securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the
United States government (provided that the full faith and credit of the United States is pledged in support of those securities) having maturities of not more than twenty-four months from the date of acquisition; 
  
 (ii) certificates of deposit and eurodollar time deposits
with maturities of twenty-four months or less from the date of acquisition, bankers’ acceptances with maturities not exceeding twenty-four months and overnight bank deposits, in each case, with any commercial bank incorporated under the laws of
the United States of America, any state thereof or the District of Columbia having capital and surplus in excess of $500,000,000 and a Thomson Bank Watch Rating of “B” or better; 
  
 (iii) repurchase obligations or securities lending
arrangements for underlying securities of the types described in clauses (i) and (ii) above entered into with any financial institution meeting the qualifications specified in clause (ii) above; 
  
 (iv) commercial paper having a rating of at least
“A-2” from S&P or “P-2” from Moody’s and in each case maturing within 270 days after the date of acquisition or asset-backed securities having a rating of at least “A” from S&P or “A2” from
Moody’s and in each case maturing within thirty-six months after the date of acquisition; 
  

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 (v) demand or time deposit accounts used in the ordinary course of business with overseas
branches of commercial banks incorporated under the laws of the United States of America, any state thereof or the District of Columbia, provided that such commercial bank has, at the time of the investment therein, (1) capital, surplus and
undivided profits (as of the date of such institution’s most recently published financial statements) in excess of $100,000,000 and (2) the long-term unsecured debt obligations (other than such obligations rated on the basis of the credit of a
Person other than such institution) of such institution, at the time of the investment therein, are rated at least “A” from S&P or “A2” from Moody’s; 
  
 (vi) obligations (including, but not limited to demand or time deposits, bankers’ acceptances and
certificates of deposit) issued or guaranteed by a depository institution or trust company incorporated under the laws of the United States of America, any state thereof or the District of Columbia, provided that (A) such instrument has a
final maturity not more than one year from the date of purchase thereof and (B) such depository institution or trust company has at the time of the investment therein or contractual commitment providing for such investment, (x) capital, surplus and
undivided profits (as of the date of such institution’s most recently published financial statements) in excess of $100,000,000 and (y) the long-term unsecured debt obligations (other than such obligations rated on the basis of the credit of a
Person other than such institution) of such institution, at the time of the investment therein or contractual commitment providing for such investment, are rated at least “A” from S&P or “A2” from Moody’s; and

  
 (vii) money market funds at least 95% of the
assets of which constitute permitted investments of the kinds described in clauses (i) through (v) above; 
  
 provided that the aggregate amount invested in obligations of the types described in clauses (ii), (iii) and (vii) above of any one issuer shall not exceed $10,000,000 at any time. Notwithstanding the
foregoing, investments which would otherwise constitute permitted investments of the kinds described in clauses (i), (ii), (iii) and (iv) that are permitted to have maturities in excess of twelve months shall only be deemed to be permitted
investments under this section if and only if the total weighted average maturity of all permitted investments of the kinds described in clauses (i), (ii), (iii) and (iv) does not exceed twelve months on an aggregate basis. All such investments and
the interest and income received thereon and the net proceeds realized on the sale or redemption thereof shall be held in the Collateral Account as part of the Trust Estate. The Trustee shall not have any liability for any loss sustained as a result
of any investment made as provided above, any liquidation of any such investment prior to its maturity, or the failure of an authorized person of Navistar Financial to provide any written instruction to invest or reinvest moneys on deposit in the
Collateral Account or any earnings thereon. 
  
 SECTION 6.04.
Application of Moneys. (a) The Trustee shall have the right at any time to apply moneys of Navistar Financial held by it in the Collateral Account to the payment of due and unpaid Trustee’s Fees. Subject to Section 6.05, all remaining
moneys held by the Trustee in the Collateral Account while a Notice of Acceleration is in effect shall, to the extent available for distribution (it being understood that the Trustee may liquidate investments prior to maturity in order to make a
distribution pursuant to this Section), be distributed by the 
  

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 Trustee on dates fixed by the Trustee (the first of which shall be within 90 days after the Trustee receives a Notice of
Acceleration and the remainder of which shall be monthly thereafter on the day of the month corresponding to the first Distribution Date (or, if there is no such corresponding day, the last day of such month) for such distribution (individually a
“Distribution Date” and collectively “Distribution Dates”) in the following order of priority: 
  
 First: to any Secured Party which has theretofore advanced or paid any unpaid Trustee’s Fees constituting administrative expenses
allowable under Section 503(b) of the Bankruptcy Code, an amount equal to the amount thereof so advanced or paid by such Secured Party prior to such Distribution Date; 
  
 Second: to any Secured Party which has theretofore advanced or paid any unpaid Trustee’s Fees other
than such administrative expenses, an amount equal to the amount thereof so advanced or paid by such Secured Party prior to such Distribution Date; 
  
 Third: to the Secured Parties entitled thereto, an amount equal to their respective Catch-up Amounts (as defined in subsection (c) below),
if any, and, if such moneys shall be insufficient to pay such Catch-up Amounts in full, then to such Secured Parties ratably in proportion to their respective Catch-up Amounts; 
  
 Fourth: to the Secured Parties entitled thereto in an amount equal to the unpaid principal of, premium, if
any, and interest on the Secured Obligations (other than Financial Services Obligations) then outstanding whether or not then due and payable, and all unpaid amounts then due and payable by Navistar Financial in respect of the Financial Services
Obligations, and all unpaid fees and expenses of any Indenture Trustee under any Debt Indenture, and, if such moneys shall be insufficient to pay such principal, premium, interest and other amounts in full, then ratably (without priority of any one
over any other, except in accordance with applicable subordination provisions) to the Secured Parties in proportion to the unpaid amounts thereof on such Distribution Date; 
  
 Fifth: to the Secured Parties, amounts equal to all other sums then due and payable in respect of the
Secured Obligations, including, without limitation, the costs and expenses of the Secured Parties and their representatives which are due and payable under the relevant Secured Instruments as of such Distribution Date and, if such moneys shall be
insufficient to pay such sums in full, then ratably to the Secured Parties in proportion to such sums; and 
  
 Sixth: any surplus then remaining shall be paid to Navistar Financial or to whomsoever may be lawfully entitled to receive the same or as
a court of competent jurisdiction may direct. 
  
 (b) The term
“unpaid” as used in clause Fourth of subsection (a) above and in subsection (c) below, with respect to any Secured Obligations, refers: 
  
 (i) in the absence of a bankruptcy proceeding with respect to Navistar Financial, to all amounts of such Secured Obligations outstanding
as of a Distribution Date, and 
  

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 (ii) during the pendency of a bankruptcy proceeding with respect to Navistar Financial,
to all amounts which have not been disallowed by the bankruptcy court in respect of such Secured Obligations as a basis for distribution (including estimated amounts, if any, allowed in respect of contingent claims), 
  
 to the extent that prior distributions (whether actually distributed or set aside pursuant to
Section 6.05) have not been made in respect thereof. 
  
 (c)
Catch-up Amounts shall be calculated on any Distribution Date before giving effect to any distribution on such Distribution Date pursuant to clauses Fourth, Fifth and Sixth of subsection (a) above. The term “Catch-up Amount” means, with
respect to any Secured Instrument, the amount, if any, required to be distributed to the Secured Party or Parties in respect of Secured Obligations thereunder, so that, immediately after such distribution, the ratio of (i) all amounts theretofore
distributed hereunder to such Secured Party or Parties in respect of such Secured Instrument to (ii) the unpaid amount then due and payable to such Secured Party or Parties thereunder plus the amount of all distributions theretofore made hereunder
in respect thereof, is equal to the highest ratio of (x) all amounts theretofore distributed hereunder in respect of any other Secured Instrument to (y) the unpaid amount then due and payable to the Secured Party or Parties with respect thereto plus
the amount of all distributions theretofore made hereunder in respect thereof. 
  
 (d) Nothing in this Agreement shall affect the subordinated status of any subordinated Secured Obligation or affect the rights or obligations of any Secured Party under any applicable subordination provisions, and
payments made to or by a Secured Party by reason of any subordination provisions shall be disregarded for purposes of computing the amounts of distributions made pursuant to this Section. 
  
 SECTION 6.05. Application of Moneys Distributable to Indenture Trustees. If at any time any moneys collected or
received by the Trustee pursuant to this Agreement are distributable pursuant to Section 6.04 to an Indenture Trustee and if such Indenture Trustee shall notify the Trustee, which shall then notify Navistar Financial, that no provision is made under
the relevant Debt Indenture for the application by such Indenture Trustee of moneys (whether because the Secured Obligations issued under such Debt Indenture have not become due and payable or otherwise) and that such Debt Indenture does not
effectively provide for the receipt and the holding by such Indenture Trustee of such moneys pending the application thereof, then the Trustee shall invest such amounts at the written direction of Navistar Financial in obligations of the kinds
referred to in clauses (i) and (ii) of Section 6.03 maturing within 90 days after they are acquired by the Trustee and shall hold all such amounts so distributable and all such investments and the net proceeds thereof in trust solely for such
Indenture Trustee (in its capacity as trustee) and for no other purpose until such time as such Indenture Trustee shall request the delivery thereof by the Trustee for application pursuant to such Debt Indenture. 
  
 SECTION 6.06. Trustee’s Calculations. In making the
determinations and allocations required by Sections 6.04 and 6.05, the Trustee may rely upon information supplied by each Secured Party as to the amounts payable with respect to Secured Obligations held by such Secured Party or as to the amounts of
unpaid principal outstanding under the Debt Indentures, premium, if any, with respect thereto, and interest accrued thereon, as the case may 
  

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 be, and the Trustee shall have no liability to any of the other Secured Parties for actions taken in reliance on such
information. All distributions made by the Trustee pursuant to such Sections shall be (subject to any decree of any court of competent jurisdiction) final and the Trustee shall have no duty to inquire as to the application by the Secured Parties of
any amounts distributed to them. 
  
 SECTION 6.07. Pro Rata
Sharing. If, through the operation of any bankruptcy, reorganization, insolvency or other laws or otherwise, the Trustee’s Security Interest is avoided with respect to some, but not all, of the Secured Obligations then outstanding, the
Trustee shall nonetheless apply the proceeds of the Collateral net of any unpaid Trustee’s Fees collected by it for the benefit of the holders of all Secured Obligations (except any holder as to which such security interest would have been
enforced but for the gross negligence or willful misconduct of such holder or any predecessor in interest of such holder) in the proportions and subject to the priorities specified above; provided that, if the Trustee’s Security Interest is
avoided with respect to any Additional Secured Obligation, no proceeds of the Collateral collected with respect to other Secured Obligations shall be distributed under this Section with respect to such Additional Secured Obligation. To the extent
that the Trustee distributes proceeds collected with respect to Secured Obligations held by one holder to or on behalf of Secured Obligations held by a second holder, the first holder shall be deemed to have purchased a participation in the Secured
Obligations held by the second holder, or shall be subrogated to the rights of the second holder to receive any subsequent payments and distributions made with respect to the portion thereof paid or to be paid by the application of such proceeds.

  
 ARTICLE VII 
  
 THE TRUSTEE 
  
 SECTION 7.01. Acceptance of Trust. The Trustee, for itself and its successors, hereby accepts the trusts created by
this Agreement upon the terms and conditions hereof. 
  
 SECTION
7.02. Exculpatory Provisions. (a) The Trustee shall not be responsible in any manner whatsoever for the correctness of any recitals, statements, representations or warranties herein, all of which are made solely by Navistar Financial. The
Trustee makes no representations as to the value or condition of the Collateral or the Trust Estate or any part thereof, or as to the title of Navistar Financial thereto or as to the security afforded by this Agreement, or as to the validity,
execution (except its own execution), enforceability, legality or sufficiency of this Agreement or of the Secured Obligations, and the Trustee shall incur no liability or responsibility in respect of any such matters. The Trustee shall not be
responsible for insuring the Collateral or for the payment of taxes, charges or assessments or discharging of Liens upon the Collateral or otherwise as to the maintenance of the Collateral, except that if the Trustee takes possession of any
Collateral, the Trustee shall preserve the Collateral in its possession. 
  
 (b) The Trustee shall not be required to ascertain or inquire as to the performance by Navistar Financial of any of the covenants or agreements contained herein or in any Secured Instrument or Indenture Obligation.
Whenever it is necessary, or in the reasonable 
  

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 opinion of the Trustee advisable, for the Trustee to ascertain the amount of Secured Obligations then held by a Secured
Party, the Trustee may rely on a certificate of such Secured Party as to such amount and, if any such Secured Party shall not give such information to the Trustee, it shall not be entitled to receive distributions hereunder until it does so, in
which case distributions shall be calculated by the Trustee based, with respect to such Secured Party, on the list then most recently delivered by Navistar Financial pursuant to Section 4.09 and the amount so calculated to be distributable to such
Secured Party shall be held in trust for such Secured Party until such Secured Party has given such information to the Trustee, whereupon the amount distributable to such Secured Party shall be recalculated on the basis of such information and
distributed to it. 
  
 (c) Notwithstanding any other provision of
this Agreement, the Trustee, in its individual capacity, shall not be personally liable for any action taken or omitted to be taken by it in accordance with this Agreement except for its own gross negligence or willful misconduct. Other than as
expressly set forth in this Agreement, nothing in this Agreement shall be construed to require the Trustee to take any action which would cause it to become liable, in its individual capacity, to any Person. 
  
 (d) The Trustee shall have the same rights under any Secured Instrument under
which it is a party in its own right as any other Secured Party thereunder and may exercise such rights as though it were not the Trustee hereunder, and may accept deposits from, lend money to, and generally engage in any kind of banking or trust
business with, Navistar Financial, International and the Parent as if it were not the Trustee. 
  
 SECTION 7.03. Delegation of Duties. Subject to the first sentence of Section 4.02(d) and subject to Section 4.07(f), the Trustee may execute any of the trusts or powers hereof and perform any duty hereunder
either directly or by or through agents or attorneys-in-fact, who may include officers and employees of Navistar Financial; provided that the Trustee shall directly hold all Pledged Securities and other “instruments” (as defined in Article
9 of the UCC) and “letters of credit” (as defined in the UCC) delivered hereunder. The Trustee shall be entitled to advice of counsel concerning all matters pertaining to such trusts, powers and duties. The Trustee shall not be responsible
for the negligence or misconduct of any agents or attorneys-in-fact selected by it without gross negligence or willful misconduct. 
  
 SECTION 7.04. Reliance by Trustee. (a) Whenever in the administration of this Agreement, the Trustee shall deem it necessary or desirable that a
factual matter be proved or established in connection with the Trustee taking, suffering or omitting any action hereunder, such matter (unless other evidence in respect thereof is herein specifically prescribed) may be deemed to be conclusively
proved or established by a certificate of a Responsible Officer delivered to the Trustee and not challenged by any Secured Party and such certificate shall be full warrant to the Trustee for any action taken, suffered or omitted in reliance thereon,
subject, however, to the provisions of Section 7.05. 
  
 (b) The
Trustee may consult with counsel, and any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered by it hereunder in accordance therewith. The Trustee shall have the right at any time to
seek instructions concerning the administration of this Agreement from any court of competent jurisdiction. 
  

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 (c) The Trustee may rely, and shall be fully protected in acting, upon any resolution, statement,
certificate, instrument, opinion, report, notice, request, consent, order, bond or other paper or document which it has no reason to believe to be other than genuine and to have been signed or presented by the proper party or parties or, in the case
of facsimile transmissions, to have been sent by the proper party or parties. Without limiting the generality of the immediately preceding sentence, the Trustee may rely, and shall be fully protected in acting, upon the information most recently
delivered to the Trustee by Navistar Financial in accordance with Section 4.09. In the absence of its gross negligence or willful misconduct, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Agreement. 
  
 (d) The Trustee shall not be under any obligation to exercise any of the rights or powers vested in the Trustee by this Agreement at the request or
direction of the Required Secured Parties pursuant to this Agreement unless the Trustee shall have been provided adequate security and indemnity against the costs, expenses and liabilities which may be incurred by it in compliance with such request
or direction, including such reasonable advances as may be requested by the Trustee. 
  
 (e) Upon any application or demand by Navistar Financial to the Trustee to take or permit any action under any of the provisions of this Agreement, Navistar Financial shall furnish to the Trustee a certificate of a
Responsible Officer stating that all conditions precedent, if any, provided for in this Agreement relating to the proposed action have been complied with, and in the case of any such application or demand as to which the furnishing of any document
is specifically required by any provision of this Agreement relating to such particular application or demand, such additional document shall also be furnished. 
  

(f) Any Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate of a Responsible Officer or representations made
by a Responsible Officer in a writing filed with the Trustee. 
  
 SECTION 7.05. Limitations on Duties of Trustee. (a) Unless a Notice of Acceleration is in effect, the Trustee shall be obligated to perform such duties and only such duties as are specifically set forth in this Agreement, and no
implied covenants or obligations shall be read into this Agreement against the Trustee. If and so long as a Notice of Acceleration is in effect, the Trustee shall exercise the rights and powers vested in it by this Agreement, and shall not be liable
with respect to any action taken by it, or omitted to be taken by it, in accordance with the direction of the Required Secured Parties or directions given to the Trustee pursuant to Section 5.06(b). 
  
 (b) Except as herein otherwise expressly provided, the Trustee shall not be
under any obligation to take any action which is discretionary. The Trustee shall make available for inspection and copying by each Lender and each Indenture Trustee each certificate or other paper furnished to the Trustee by Navistar Financial
under or in respect of this Agreement or any of the Collateral. 
  
 (c) Beyond the exercise of reasonable care in the custody and preservation thereof, the Trustee shall have no duty as to any Collateral in its possession or control or in the 
  

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 possession or control of any agent or bailee or any income thereon or as to the preservation of rights against prior
parties or any other rights pertaining thereto. The Trustee shall be deemed to have exercised reasonable care in the custody of the Collateral in its possession if such items are accorded treatment substantially equal to that which it accords its
own property, and shall not be liable or responsible for any loss or damage thereto, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee
selected by the Trustee in good faith. 
  
 SECTION 7.06. Moneys
to be Held in Trust. All moneys received by the Trustee under or pursuant to any provision of this Agreement shall be held in trust for the purposes for which they were paid or are held. 
  
 SECTION 7.07. Resignation and Removal of the Trustee. (a) The Trustee
may at any time, by giving written notice to Navistar Financial and the Secured Parties, resign and be discharged of the responsibilities hereby created, such resignation to become effective upon (i) the appointment of a successor Trustee, (ii) the
approval of such successor Trustee (evidenced in writing) by Navistar Financial and the Administrative Agent (such approval not to be unreasonably withheld), and (iii) the acceptance of such appointment by such successor Trustee. If no successor
Trustee shall be appointed and shall have accepted such appointment within 45 days after the Trustee gives the aforesaid notice of resignation, the Trustee shall, or any Secured Party may, apply to any court of competent jurisdiction to appoint a
successor Trustee to act until such time, if any, as a successor Trustee shall have been appointed as above provided. Any successor Trustee so appointed by such court shall immediately and without further act be superseded by any successor Trustee
appointed by Navistar Financial and the Administrative Agent as provided above. So long as no Event of Default has occurred and is continuing, Navistar Financial may at any time, upon at least 10 days’ prior written notice, remove the Trustee
and appoint a successor Trustee with the approval of the Administrative Agent (such approval not to be unreasonably withheld or delayed), provided that such successor Trustee shall have accepted such appointment. If an Event of Default has occurred
and is continuing, the Administrative Agent may at any time, upon at least 10 days’ prior written notice, remove the Trustee and appoint a successor Trustee with the approval of Navistar Financial (such approval not to be unreasonably withheld
or delayed). Promptly upon receipt of such notice, the Trustee shall inform the Secured Parties of the contents thereof. Any Trustee shall be entitled to Trustee’s Fees to the extent incurred or arising, or relating to events occurring, before
such resignation or removal. 
  
 (b) If at any time the Trustee
shall resign or be removed or otherwise become incapable of acting, or if at any time a vacancy shall occur in the office of the Trustee for any other cause, a successor Trustee may, so long as no Event of Default has occurred and is continuing, be
appointed by Navistar Financial with the approval of the Administrative Agent (such approval not to be unreasonably withheld or delayed); provided that if an Event of Default has occurred and is continuing, a successor Trustee shall be
appointed by the Administrative Agent with the approval of Navistar Financial (such approval not to be unreasonably withheld or delayed), and the powers, duties, authority and title of the predecessor Trustee shall be terminated and cancelled
without procuring the resignation of such predecessor Trustee and without any formality (except as may be required by applicable law) other than appointment and designation of a successor Trustee in writing duly acknowledged and delivered to the
predecessor Trustee 
  

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 and Navistar Financial. Such appointment and designation shall be full evidence of the right and authority to make the
same and of all the facts therein recited, and this Agreement shall vest in such successor Trustee, without any further act, deed or conveyance, all the estates, properties, rights, powers, trusts, duties, authority and title of its predecessor
Trustee; but such predecessor Trustee shall, nevertheless, on the written request of Navistar Financial or the successor Trustee, execute and deliver an instrument transferring to such successor Trustee all the estates, properties, rights, powers,
trusts, duties, authority and title of such predecessor Trustee hereunder and deliver all Collateral held by it or its agents to such successor Trustee subject to the payment of all unpaid Trustee’s Fees due and owing to the predecessor
Trustee. Should any deed, conveyance or other instrument in writing from Navistar Financial be required by any successor Trustee for more fully and certainly vesting in such successor Trustee the estates, properties, rights, powers, trusts, duties,
authority and title vested or intended to be vested in the predecessor Trustee, any and all such deeds, conveyances and other instruments in writing shall, on request of such successor Trustee, be executed, acknowledged and delivered by Navistar
Financial. 
  
 SECTION 7.08. Status of Successor Trustees.
Every successor Trustee appointed pursuant to Section 7.07 shall be a bank or trust company in good standing and having power to act as Trustee hereunder, incorporated under the laws of the United States of America or any State thereof or the
District of Columbia and having its principal corporate trust office within the 48 contiguous States and shall also have capital, surplus and undivided profits of not less than $250,000,000, if there be such an institution with such capital, surplus
and undivided profits willing, qualified and able to accept the trust hereunder upon reasonable or customary terms. 
  
 SECTION 7.09. Merger of the Trustee. Any corporation into which the Trustee may be merged, or with which it may be consolidated, or any corporation
resulting from any merger or consolidation to which the Trustee shall be a party, shall be Trustee under this Agreement without the execution or filing of any paper or any further act on the part of the parties hereto. 
  
 SECTION 7.10. Co-Trustee; Separate Trustees. (a) If at any time or
times it shall be necessary or prudent in order to conform to any law of any jurisdiction in which any of the Collateral shall be located, or the Trustee shall be advised by counsel, satisfactory to it, that it is necessary or prudent in the
interest of the Secured Parties, or the Required Secured Parties shall in writing so request, or the Trustee shall deem it desirable for its own protection in the performance of its duties hereunder, the Trustee and Navistar Financial shall,
following consultation with each other, execute and deliver all instruments and agreements necessary or proper to constitute another bank or trust company, or one or more persons approved by the Trustee and Navistar Financial, either to act as
co-trustee or co-trustees (each a “co-trustee”) of all or any of the Collateral, jointly with the Trustee, or to act as separate trustee or trustees of any such property. If Navistar Financial shall not have joined in the execution of such
instruments and agreements within 10 days after it receives a written request from the Trustee to do so, or if a Notice of Acceleration is in effect, the Trustee may act under the foregoing provisions of this Section without the concurrence of
Navistar Financial. Navistar Financial hereby appoints the Trustee as its agent and attorney to act for it under the foregoing provisions of this Section in either of such contingencies. 
  

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 (b) Every separate trustee and every co-trustee, other than any successor Trustee appointed pursuant to
Section 7.07, shall, to the extent permitted by law, be appointed and act and be such, subject to the following provisions and conditions: 
  
 (i) except as the Required Secured Parties may otherwise expressly direct in writing, all rights, powers, duties and obligations conferred
upon the Trustee in respect of the custody and management of moneys, marketable securities and other securities (including, without limitation, Pledged Securities) shall be exercised solely by the Trustee or, if applicable, (x) any agent appointed
pursuant to Section 4.02(d) and (y) to the extent set forth in Section 4.07(a), the Concentration Bank; 
  
 (ii) all rights, powers, duties and obligations conferred or imposed upon the Trustee hereunder shall be conferred or imposed and
exercised or performed by the Trustee and such separate trustee or separate trustees or co-trustee or co-trustees, jointly, as shall be provided in the instrument appointing such separate trustee or separate trustees or co-trustee or co-trustees,
except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and
obligations shall be exercised and performed by such separate trustee or separate trustees or co-trustee or co-trustees; 
  
 (iii) no power given hereby to, or which it is provided herein may be exercised by, any such co-trustee or co-trustees or separate trustee
or separate trustees, shall be exercised hereunder by such co-trustee or co-trustees or separate trustee or separate trustees except jointly with, or with the consent in writing of, the Trustee, anything contained herein to the contrary
notwithstanding; 
  
 (iv) no trustee hereunder
shall be personally liable by reason of any act or omission of any other trustee hereunder; 
  
 (v) each such separate trustee or co-trustee shall be entitled to the benefits of Sections 7.12 and 7.13 to the same extent as if such
Person were the Trustee hereunder; and 
  
 (vi)
following consultation with each other, Navistar Financial and the Trustee, at any time by an instrument in writing executed by them jointly, may accept the resignation of or remove any such separate trustee or co-trustee and, in that case by an
instrument in writing executed by them jointly, may appoint a successor to such separate trustee or co-trustee, as the case may be, anything contained herein to the contrary notwithstanding. If Navistar Financial shall not have joined in the
execution of any such instrument within 10 days after it receives a written request from the Trustee to do so, or if a Notice of Acceleration is in effect, the Trustee shall have the power to accept the resignation of or remove any such separate
trustee or co-trustee and to appoint a successor without the concurrence of Navistar Financial. Navistar Financial hereby appoints the Trustee its agent and attorney to act for it in such connection in such contingency. If the Trustee shall have
appointed a separate trustee or separate trustees or co-trustee or co-trustees as above provided, the Trustee may at any time, by an instrument in writing, accept the resignation of or remove any such separate trustee or co-trustee and the successor
to any such separate trustee or co-trustee shall be appointed by Navistar Financial and the Trustee, or by the Trustee alone pursuant to this Section. 
  

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 SECTION 7.11. Treatment of Payee or Indorsee by Trustee; Representatives of Secured Parties. (a)
The Trustee may treat the registered holder or, if none, the payee or indorsee of any promissory note or debenture referred to in any Secured Instrument as the absolute owner thereof for all purposes and shall not be affected by any notice to the
contrary, whether such promissory note or debenture shall be past due or not. 
  
 (b) Any Person which shall be designated as the duly authorized representative of one or more Secured Parties to act as such in connection with any matters pertaining to this Agreement or the Collateral shall present
to the Trustee such documents, including, without limitation, Opinions of Counsel, as the Trustee may reasonably require, in order to demonstrate to the Trustee the authority of such Person to act as the representative of such Secured Parties.

  
 SECTION 7.12. Compensation and Expenses. Navistar
Financial shall pay to the Trustee, from time to time promptly upon written demand (together with appropriate backup documentation supporting such demand), (i) reasonable compensation in the amounts agreed upon by Navistar Financial and the Trustee
(which shall not be limited by any provision of law in regard to compensation of a trustee of an express trust unless such provision may not effectively be waived) for its services hereunder and for administering the Trust Estate and (ii) all of the
reasonable fees, costs and expenses incurred by the Trustee (including, without limitation, the reasonable fees and disbursements of its counsel and such special counsel as the Trustee elects to retain, any fees, costs and expenses arising pursuant
to computer software license agreements and any amounts payable by the Trustee to any of its agents, whether on account of fees, indemnities or otherwise) (A) arising in connection with the preparation, execution, delivery, modification, and
termination of this Agreement or the enforcement of any of the provisions hereof or (B) incurred or required to be advanced in connection with the administration of the Trust Estate, the sale or other disposition of Collateral hereunder and the
preservation, protection or defense of the Trustee’s rights hereunder and in and to the Collateral and the Trust Estate. 
  
 SECTION 7.13. Indemnification. (a) Navistar Financial shall pay, and indemnify and hold harmless the Trustee and its officers, directors, employees
and agents from and against, any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any, kind or nature whatsoever, unless arising from the gross negligence or willful
misconduct of the indemnitee, with respect to the execution, delivery, enforcement, performance and administration of this Agreement by the Trustee or any of its directors, officers, agents or employees. As security for such payment and for the
payment of all other Trustee’s Fees, the Trustee shall have a Lien prior to all other Secured Parties upon all the Collateral; provided that the foregoing is not intended to relieve Navistar Financial of its obligation to pay Trustee’s
Fees. 
  
 (b) In any suit, proceeding or action brought by
the Trustee under or with respect to the Collateral for any sum owing hereunder or to enforce any provision hereof, Navistar Financial will save, indemnify and hold harmless the Trustee, its agents, officers, directors and employees and the holders
of Secured Obligations from and against all expense, 
  

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 loss or damage suffered by reason of any defense, setoff, counterclaim, recoupment or reduction of liability whatsoever
of the obligor thereunder, arising out of a breach by Navistar Financial of any obligation thereunder or arising out of any other agreement, indebtedness or liability at any time owing to or in favor of such obligor or its successors from Navistar
Financial, and all such obligations of Navistar Financial shall be and remain enforceable against and only against Navistar Financial and shall not be enforceable against the Trustee, its agents or employees or any other Secured Party. 

 
 In no event shall the Trustee be liable for any indirect, special,
punitive or consequential loss or damage of any kind whatsoever, including, but not limited to, lost profits, even if the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action. 
  
 In no event shall the Trustee be liable for any failure or delay in the
performance of its obligations hereunder because of circumstances beyond their control, including, but not limited to, acts of God, flood, war (whether declared or undeclared), terrorism, fire, riot, embargo, government action, including any laws,
ordinances, regulations, governmental action or the like which delay, restrict or prohibit the providing of the services contemplated by this Agreement. 
  
 ARTICLE VIII 
  
 RELEASE OF COLLATERAL 
  
 SECTION 8.01. Permitted Releases. Unless a Notice of Acceleration is in effect, the Trustee may, at any time and from time to time prior to the termination of the Trustee’s Security Interest and release of
all Collateral pursuant to Sections 8.02 and 8.03, release any portion of the Collateral with the prior written consent of the Releasing Secured Parties; provided that the Trustee shall have received a certificate of a Responsible Officer of
Navistar Financial to the effect that no default, or event or condition which with notice or lapse of time or both would constitute a default, exists or, immediately after such release, will exist with respect to any of the Indenture Obligations.
Upon any release in accordance with this Section 8.01, the Trustee will promptly, at Navistar Financial’s written request and expense, execute and deliver to Navistar Financial such documents as Navistar Financial shall reasonably request to
evidence such release. 
  
 SECTION 8.02. Conditions to
Termination of Security Interest and Release of All Collateral. The Trustee’s Security Interest shall terminate and all right, title and interest of the Trustee in and to the Collateral shall terminate and shall revert to Navistar Financial
and its assigns upon the request of Navistar Financial as provided in Section 8.03 if (a): 
  
 (i) no default, or event or condition which with notice or lapse of time or both would constitute a default, exists or, immediately after
such termination, will exist with respect to any of the Indenture Obligations or any Letter of Credit; 
  

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 (ii) all principal of and interest on the Loans and all other amounts due under the
Credit Agreement shall have been paid in full or shall have been extended (or refinanced) on an unsecured basis; and 
  
 (iii) the Commitments of the Lenders under the Credit Agreement shall have terminated (except to the extent that the relevant Lenders
shall have agreed to maintain such respective Commitments on an unsecured basis). 
  
 or (b) an Upgrading shall have occurred. 
  
 SECTION 8.03. Procedure for Termination and Release. (a) Upon satisfaction of the conditions set forth in Section 8.02 necessary for terminating
the Trustee’s Security Interest in the Collateral, Navistar Financial may request the termination of such security interest and the release of the Collateral by delivering to the Trustee written notice (a “Collateral Release Notice”),
signed by a Responsible Officer of Navistar Financial. Such Collateral Release Notice shall certify that the conditions for release set forth in Section 8.02 have been satisfied. Promptly upon receiving a Collateral Release Notice, the Trustee shall
mail a copy thereof (and of the accompanying accountants’ certificate, if any) to each Secured Party. 
  
 (b) Upon the termination of the Trustee’s Security Interest and the release of the Collateral, the Trustee will promptly, at Navistar
Financial’s written request and expense, (i) execute and deliver to Navistar Financial such documents as Navistar Financial or its assigns shall reasonably request to evidence the termination of such security interest or the release of the
Collateral and (ii) deliver or cause to be delivered to Navistar Financial, all property of Navistar Financial then held by the Trustee, any co-trustee or any of their respective agents. Any release of Collateral shall be without prejudice to the
rights of the Trustee or any successor Trustee to charge and be reimbursed for any expenditures which it may thereafter incur in connection herewith. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 SECTION 9.01. Notices. Unless otherwise specified in this Agreement, all notices, requests, demands, consents or other communications given to Navistar Financial, the Trustee or any Secured Party shall be given in writing or by
facsimile transmission and shall be deemed to have been duly given when personally delivered or when duly deposited in the mails, registered or certified mail postage prepaid, or when transmitted by facsimile transmission, addressed (i) if to
Navistar Financial or the Trustee, to such party at its address, telecopy number specified on the signature pages hereof or any other address, telecopy number which such party shall have specified for the purpose of communications hereunder, by
notice in writing to the party sending such communication or (ii) if to any Secured Party, to it at its address, telecopy number specified from time to time by it or in the list provided by Navistar Financial to the Trustee pursuant to Section 4.09;
provided that any notice, request or demand to or upon the Trustee shall not be effective until received. 
  

 55 

 SECTION 9.02. No Waivers. No failure on the part of the Trustee, any co-trustee, any separate
trustee or any Secured Party to exercise, no course of dealing with respect to, and no delay in exercising, any right, power or privilege under this Agreement shall operate as a waiver thereof nor shall any single or partial exercise of any such
right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 
  
 SECTION 9.03. Amendments, Supplements and Waivers. (a) With the consent of the Required Secured Parties, the Trustee and Navistar Financial may,
from time to time, enter into written agreements supplemental hereto for the purpose of adding any provisions to this Agreement, waiving any provisions hereof or changing in any manner the rights of the Trustee, the Secured Parties, the holders of
Secured Obligations or Navistar Financial hereunder; provided that no such supplemental agreement shall (i) amend, modify or waive any provision of this subsection (a) without the consent of each Secured Party, (ii) change the definition of
“Required Secured Parties” or the definition of “Required Lenders” incorporated by reference therein, or change the definition of “Releasing Secured Parties” without the consent of each Secured Party adversely affected
thereby, (iii) amend, modify or waive any provision of this Agreement which requires the consent of all of the Releasing Secured Parties without the consent of all of the Releasing Secured Parties, (iv) amend, modify or waive any provision of
Section 6.04 or the definition of “Secured Obligations” without the consent of (x) each Secured Party whose rights would be adversely affected thereby and (y) each Indenture Trustee of a Debt Indenture under which rights to equal and
ratable security would be adversely affected thereby, or (v) amend, modify or waive any provision of Article VII hereof or alter the duties or obligations of the Trustee hereunder without the consent of the Trustee. Any such supplemental agreement
shall be binding upon Navistar Financial, the Secured Parties, the holders of Secured Obligations, the Trustee and their respective successors. The Trustee shall not enter into any such supplemental agreement unless it shall have received an Opinion
of Counsel to the effect that such supplemental agreement will not result in a breach of any provision or covenant contained in any Debt Indenture which requires the securing of the indebtedness outstanding thereunder equally and ratably with other
obligations or indebtedness of Navistar Financial. 
  
 (b) Without
the consent of any Secured Party, the Trustee and Navistar Financial, at any time and from time to time, may enter into one or more agreements supplemental hereto, in form satisfactory to the Trustee, (i) to add to the covenants of Navistar
Financial for the benefit of the Secured Parties or to surrender any right or power herein conferred upon Navistar Financial, (ii) to mortgage or pledge to the Trustee, or grant a security interest in favor of the Trustee in, any property or assets
as additional security for the Secured Obligations, or (iii) to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to make any other provision with respect to
matters or questions arising hereunder which shall not be inconsistent with any provision hereof; provided that any such action contemplated by this clause (iii) shall not adversely affect the interests of the Secured Parties. 
  
 SECTION 9.04. Headings. The table of contents and the headings of
Articles and Sections have been included herein for convenience only and should not be considered in interpreting this Agreement. 
  

 56 

 SECTION 9.05. Severability. Any provision of this Agreement which is prohibited or unenforceable
in any jurisdiction shall not invalidate 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 9.06. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of each of the parties hereto and shall inure to the benefit of each of the Secured Parties and their respective successors and permitted assigns and nothing herein is intended or shall be construed to give any other
Person any right, remedy or claim under, to or in respect of this Agreement or any Collateral. In addition, the final sentence of Section 2.06(d) shall inure to the benefit of the holders of any Existing Senior Liens. 
  
 SECTION 9.07. Currency Conversions. In calculating the amount of
Secured Obligations for any purpose hereunder, including, without limitation, voting or distribution purposes, the amount of any Secured Obligation which is denominated in a currency other than Dollars shall be converted into Dollars at the spot
rate of exchange in London that appears on the display page, applicable to such currency, on the Reuters System (or other such page as may replace such page on such service for the purpose of displaying the spot rate of exchange in London) for the
conversion of such currency into Dollars; provided that if at any time there shall no longer exist such a page on such service, the spot rate of exchange shall be determined by reference to another similar rate publishing service selected by the
Administrative Agent and if no such similar rate publishing service is available, by reference to the published rate of the Administrative Agent in effect at such date for similar commercial transactions. 
  
 SECTION 9.08. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, except as otherwise required by mandatory provisions of law; provided that all provisions of this Agreement relating to the Trustee’s Security Interest in any UCC Deposit Account
shall be governed by and construed in accordance with the substantive laws of the applicable UCC Deposit Account Jurisdiction without regard to the choice of law principles of such jurisdiction. 
  
 SECTION 9.09. Counterparts; Integration. This Agreement may be signed
in any number of counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument. Delivery of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement. This Agreement constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to
the subject matter hereof. This Agreement amends and restates in its entirety the terms and provisions of the Security, Pledge and Trust Agreement, dated as of June 8, 2001, between Navistar Financial and Deutsche Bank Trust Company Americas (f/k/a
Bankers Trust Company), as trustee, and supersedes and replaces the terms thereof in their entirety. 
  
 SECTION 9.10. Termination. This Agreement shall terminate when the security interest granted hereunder has terminated and all the Collateral has
been released; provided that the provisions of Sections 4.10, 4.11, 7.12 and 7.13 shall not be affected by any such termination. 
  

 57 

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

			
	NAVISTAR FINANCIAL CORPORATION
		
	By:	 	 /s/ Andrew J. Cederoth

	Name:	 	Andrew J. Cederoth
	Title:	 	Vice President & Treasurer
	
	425 N. Martingale Road
	Schaumburg, IL 60173
	Telecopy number:
	Attention: Treasurer
	
	 Copies of notices should be sent to each of the
 following:

	Navistar Financial Corporation
	425 N. Martingale Road
	Schaumburg, IL 60173
	Telecopy number:
	Attention: General Counsel
	
	International Truck and Engine Corporation
	4201 Winfield Road
	Warrenville, IL 60555-4025
	Telecopy number: (630) 753-2305
	Attention: Treasurer
	
	 DEUTSCHE BANK TRUST COMPANY
 AMERICAS

		
	By:	 	 /s/ Irina Golovashchuk

	Name:	 	Irina Golovashchuk
	Title:	 	Associate
	
	Deutsche Bank Trust Company Americas
	Trust & Security Services
	60 Wall Street
	New York, NY 10005
	Telecopy: (212) 797-8614
	Attn: Irina Golovashchuk

					
	STATE OF ILLINOIS	  	)	  	 
	 	  	:	  	ss:
	COUNTY OF COOK	  	)	  	 

  
 On the
                 day of June, 2005 before me personally came
                                        
and, to me personally known and known to me to be the persons described in and who executed the foregoing instrument as
                                        
of NAVISTAR FINANCIAL CORPORATION, who, being by me duly sworn, did depose and say that he resides at
                                    ; that he is
                                        
of NAVISTAR FINANCIAL CORPORATION, one of the corporations described in and which executed the foregoing instrument; that said instrument was signed and sealed on behalf of said corporation by order of its Board of Directors; that he signed his name
thereto by like order; and that he acknowledged said instrument to be the free act and deed of said corporation. 
  

	
	

  
 [NOTARIAL SEAL] 
  
 My commission expires: 

					
	 STATE OF NEW YORK
	  	)	  	 
	 	  	:	  	ss:
	 COUNTY OF NEW YORK
	  	)	  	 

  
 On the
                 day of June, 2005 before me personally came
                                        
and
                                        ,
to me personally known and known to me to be the persons described in and who executed the foregoing instrument as
                                        
of DEUTSCHE BANK TRUST COMPANY AMERICAS, who, being by me duly sworn, did depose and say that he resides at
                                        ;
that he is
                                        
of DEUTSCHE BANK TRUST COMPANY AMERICAS, one of the corporations described in and which executed the foregoing instrument; that said instrument was signed and sealed on behalf of said corporation by order of its Board of Directors; that he signed
his name thereto by like order; and that he acknowledged said instrument to be the free act and deed of said corporation. 
  

	
	

  
 [NOTARIAL SEAL] 
  
 My commission expires: 

 SCHEDULE A 
  

PERMITTED RECEIVABLES SALE AGREEMENTS 
  
 Dealer Note Master Trust 
  
 ARTICLE X Purchase Agreement, dated June 8, 1995, by and between NFC and NFSC. 
  
 Dealer Note Master Owner Trust 
  
 ARTICLE XI Series 2004-1 Indenture Supplement dated as of June 10, 2004 to Indenture dated as of June 10, 2004. 
  
 ARTICLE XII Series 2005-1 Indenture Supplement dated as of February 28, 2005 to Indenture
dated as of June 10, 2004. 
  
 2001-B Owner
Trust 
  
 ARTICLE XIII Purchase Agreement, dated November 1, 2001, between
NFC and NFRRC as Purchaser with respect to Navistar Financial 2001-B Owner Trust. 
  
 2002-A Owner Trust 
  
 ARTICLE XIV Purchase Agreement, dated April 30, 2002, between NFC and NFRRC as Purchaser with respect to Navistar Financial 2002-A Owner Trust. 
  
 2002-B Owner Trust 
  
 ARTICLE XV Purchase Agreement, dated as of November 19, 2002, between NFC and NFRRC as
Purchaser with respect to Navistar Financial 2002-B Owner Trust. 
  
 2003-A Owner Trust 
  
 ARTICLE XVI
Purchase Agreement, dated as of June 5, 2003, between NFC and NFRRC as Purchaser with respect to Navistar Financial 2003-A Owner Trust. 
  
 Jupiter Securitization Corporation 
  
 ARTICLE XVII Receivable Sales Agreement dated as of April 8, 2004 between Navistar Financial Corporation, as Transferor, and Truck Retail Accounts Corporation, as
Transferee. 
  
 TRIP Retail Warehousing
Facility 
  
 ARTICLE XVIII Receivables Purchase Agreement, dated as of
October 16, 2000, between TRIP and NFC. 

 ARTICLE XIX Series 2005-1 Supplement dated as of June 29, 2005 to Indenture dated as of October 16, 2000 between TRIP and
the Bank of New York. 
  
 2003-B Owner
Trust 
  
 ARTICLE XX Purchase Agreement, dated as of October 31, 2003,
between NFC and NFRRC as Purchaser with respect to Navistar Financial 2003-B Owner Trust. 
  
 Truck Engine Receivables Master Trust 
  
 ARTICLE XXI Receivables Purchase Agreement, dated as of November 21, 2000, between NFC and Truck Engine Receivables Financing Co. (“TERFCO”). 
  
 RBC Conduit - Thunder Bay Funding, LLC 
  
 ARTICLE XXII Receivables Purchase Agreement dated as of July 30, 2004 between NFC and NFRRC.

  
 ARTICLE XXIII Receivables Purchase Agreement dated as of April 29, 2005
between NFC and NFRRC. 
  
 2004-A Owner
Trust 
  
 ARTICLE XXIV Purchase Agreement, dated as of April 1, 2004, between
NFC and NFRRC as Purchaser with respect to Navistar Financial 2004-A Owner Trust. 
  
 2004-B Owner Trust 
  
 ARTICLE XXV Purchase Agreement dated as of November 17, 2004 between NFC and NFRRC as Purchaser with respect to Navistar Financial 2004-B Owner Trust. 
  
 ITLC Lease Purchase Agreement 
  
 ARTICLE XXVI ITLC Lease Purchase Agreement, dated as of June 30, 2004, between NFC and
International Truck Leasing Corp. 

 SCHEDULE B 
  

LIST OF COLLECTION BANKS, LOCK-BOXES, 
 SUSPENSE ACCOUNTS AND COLLECTION ACCOUNTS 
  

							
	 COLLECTION BANK
 AND
ADDRESS

	 	 LOCK-BOXES

	 	 SUSPENSE
 ACCOUNTS

	 	 COLLECTION
 ACCOUNTS

	 Bank of America Corporation
 231 S. LaSalle
St.
 Chicago, IL 60697
	 	No. 98454	 	 Harco Leasing Account
 No. 8188501208
	 	 
				
	 	 	No. 96070	 	 Retail Suspense Account
 No. 8188902116
	 	 
				
	 	 	No. 99438	 	Wholesale Suspense Account No. 8188302119	 	 
				
	 	 	 	 	 	 	 Dealer ACH Receipts
 Acct. No.
1233729140

				
	 The Northern Trust Company
 125 South Wacker
Drive
 Chicago, IL 60675
	 	No. 1852	 	 Retail Deposit Account
 No. 12114
	 	 Retail Deposit Account
 No. 12114

 SCHEDULE C 
  

LIST OF PROCEEDS 
 ACCOUNT BANKS AND PROCEEDS
DEPOSIT ACCOUNTS 
  

			
	 PROCEEDS ACCOUNT BANK
 AND
ADDRESS

	 	 PROCEEDS
 DEPOSIT ACCOUNT

	JPMorgan Chase Bank, N.A.	 	No. 323-2370-53
	140 E. 45th Street	 	 
	New York, NY 10017	 	 

 SCHEDULE D 
  

SUBSIDIARIES AND CAPITALIZATION 
  

							
	 Subsidiary

	 	 Outstanding share
                     information                
    

	 	Percent Pledged

	(f)	 	 Navistar Financial Retail Receivables
 Corporation, a Delaware corporation
	 	 1,000 shares of common stock,
 par value $1.00
 per share
	 	100%
				
	(g)	 	 Navistar Financial Securities Corporation,
 a Delaware corporation
	 	 1,000 shares of common stock,
 par value $1.00
 per share
	 	100%
				
	(h)	 	 Harco Leasing Company, Inc., a Delaware
 corporation
	 	 13,618 shares of common stock,
 par value
 $1.00 per share
	 	100%
				
	(i)	 	 Truck Retail Instalment Paper Corp., a
 Delaware
corporation
	 	 1,000 shares of common stock,
 par value $1.00
 per share
	 	100%
				
	(j)	 	Navistar, Inc., a Delaware corporation	 	 1,000 shares of common stock,
 par value $10.00
 per share
	 	100%
				
	(k)	 	 Navistar Leasing Company, a Delaware
 statutory
trust
	 	N/A	 	N/A
				
	(l)	 	 Truck Engine Receivables Financing Co.,
 a Delaware
corporation
	 	 1,000 shares of common stock,
 par value $0.01
 per share
	 	100%
				
	(m)	 	 Truck Retail Accounts Corporation, a
 Delaware
corporation
	 	 1,000 shares of common stock,
 par value $0.01
 per share
	 	100%
				
	(n)	 	 International Truck Leasing Corp., a
 Delaware
corporation
	 	 1,000 shares of common stock,
 par value $0.01
 per share
	 	100%
				
	(o)	 	 Servicios Corporativos NFC, S.A. de
 C.V., a Mexican
corporation
	 	 999 shares of Class I stock,
 par value $50.00
 pesos per share;
 28,512 shares of Class II stock,
 par value $50.00
 pesos per share
	 	65%

 SCHEDULE E 
  

INSTRUMENTS 
  
 A. Subsidiary Notes 
  
 Navistar
Financial Corporation Capital Contribution Note in the amount of $16,366,674 
  
 Harco Leasing Company, Inc. Second Amended and Restated Grid Note in the Amount of $200,000,000 
  
 Navistar Financial Securities Corporation Promissory Note in the amount of $25,000,000 
  
 Navistar Financial Retail Receivables Corporation Revolving Note 
  
 Truck Retail Instalment Paper Corp. Subordinated Revolving Note 
  
 Truck Retail Instalment Paper Corp. Revolving Note 
  
 Navistar Financial Securities Corporation Master Revolving Note 
  
 Servicios Financieros Navistar, S.A. de C.V. Promissory Note in the amount of $20,000,000 
  
 Arrendadora Financiera Navistar, S.A. de C.V. Promissory Note in the amount of $20,000,000 
  
 International Truck Leasing Corp. Revolving Note 
  
 B. Stock Certificates 
  
 Stock certificate number 1 for 1,000 shares of common stock of Navistar Financial Retail
Receivables Corporation, held by Navistar Financial Corporation. 

 Stock certificate number 2 for 1,000 shares of common stock of Navistar Financial Securities Corporation, held by
Navistar Financial Corporation. 
  
 Stock certificate number 34 for 13,615 shares
of the capital stock of Harco Leasing Company, Inc., held by International Harvester Credit Corporation. 
  
 Stock certificate number 35 for 3 shares of the capital stock of Harco Leasing Company, Inc., held by International Harvester Credit Corporation. 
  
 Stock certificate number 1 for 1,000 shares of common stock of Truck Retail Instalment Paper Corp., held by Navistar Financial Corporation.

  
 Stock certificate number 5 for 100 shares of capital stock of The Monarch
Agency, Inc., held by International Harvester Credit Corporation. 
  
 Stock
certificate number 6 for 190 shares of capital stock of The Monarch Agency, Inc., held by International Harvester Credit Corporation. 
  
 Stock certificate number 7 for 710 shares of capital stock of The Monarch Agency, Inc., held by International Harvester Credit Corporation. 
  
 Stock certificate number 001 for 1,000 shares of common stock of Truck Engine Receivables
Financing Co., held by Navistar Financial Corporation. 
  
 Stock certificate
number C-1 for 1,000 shares of common stock of Truck Retail Accounts Corporation, held by Navistar Financial Corporation. 
  
 Stock certificate number 1 for 1,000 shares of common stock of International Truck Leasing Corp., held by Navistar Financial Corporation. 
  
 Stock certificate representing 999 shares of Class I stock of Servicios Corporativos NFC,
S.A. de C.V., held by Navistar Financial Corporation. 

 Stock certificate representing 28,512 shares of Class II stock of Servicios Corporativos NFC, S.A. de C.V., held by
Navistar Financial Corporation. 
  
 C. Other Instruments 

 
 Navistar Financial 1991-1 Grantor Trust 6.40% Asset Backed Certificate, Class B

  
 Navistar Financial 2001-B Owner Trust Certificate 
  
 Navistar Financial 2002-A Owner Trust Certificate 
  
 Navistar Financial 2002-B Owner Trust Certificate 
  
 Navistar Financial 2003-A Owner Trust Certificate 
  
 Navistar Financial 2003-B Owner Trust Certificate 
  
 Navistar Financial 2004-A Owner Trust Certificate 
  
 Navistar Financial 2004-B Owner Trust Certificate 

 EXHIBIT A 
  
 PERFECTION CERTIFICATE 
  
 The undersigned, the chief legal officer of NAVISTAR FINANCIAL CORPORATION, a Delaware corporation (“Navistar Financial”), hereby certifies with
reference to the Amended and Restated Security, Pledge and Trust Agreement dated as of July 1, 2005 (the “Agreement”) between Navistar Financial and DEUTSCHE BANK TRUST COMPANY AMERICAS, as Trustee (terms defined therein being used herein
as therein defined), to the Trustee and each Secured Party as follows: 
  
 1. Names. (a) The exact corporate name of Navistar Financial as it appears in its certificate of incorporation is as follows: 
  
 Navistar Financial Corporation 
  
 (b) Set forth below is each other corporate name Navistar Financial has had since its organization, together with the date of the relevant change:

  
 Name changed from International Harvester Credit Corporation
on 2/20/86 
  
 (c) Navistar Financial has not changed its identity
or corporate structure in any way within the past five years. 
  
 (d) The following is a list of all other names (including trade names or similar appellations) used by Navistar Financial or any of its divisions or other business units at any time during the past five years: 
  
 International Finance Group 
  
 IFG 
  
 2. Current Locations. (a) The chief executive office of Navistar Financial is located at the following address: 

 

					
	 Mailing Address

	 	 County

	 	 State

	 425 N. Martingale Road
	 	 	 	 
	 Schaumberg, IL 60173
	 	Cook	 	Illinois

  
 (b) The jurisdiction
of incorporation of Navistar Financial is Delaware. 
  
 (c)
Navistar Financial from time to time maintains Inventory and/or Equipment in more than one county and more than one town in each state (other than Hawaii). Navistar Financial also maintains Inventory and/or Equipment in the District of Columbia.

 3. Unusual Transactions. All Inventory and Equipment has been acquired by Navistar Financial in
the ordinary course of its business. 
  
 4. File Search
Reports. Attached hereto as Schedule 4(A) is a true copy of a file search report from AL, AZ, AK, AR, CA, CO, CT, DE, DC, FL, GA (DeKalb County), IL, ID, IN, IA, KS, KY, LA (Orleans Parish County), MD, ME, MA, MI, MN, MS, MO (Jackson Kansas
County), MT, NE, NV, NH, NJ, NM, NY, NC, NC (Mecklenburg County), ND, OH, OH (Licking County), OK, OR, PA, PA (Philadelphia County), RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI and WY. Attached hereto as Schedule 4(B) is a true copy of each financing
statement or other filing identified in such file search reports. 
  
 5. UCC Filings. A duly signed financing statement on Form UCC-1 in substantially the form of Schedule 5(A) hereto has been duly filed in the Uniform Commercial Code filing office in each jurisdiction identified in Schedule 5(B)
hereto. 
  
 6. Filing Fees. All filing fees and taxes
payable in connection with the filings described in paragraph 5 above that have been made as of the date hereof have been paid. 
  
 7. Instruments. As of the date hereof, none of the Collateral (other than the Subsidiary Notes and the residual interest certificates) is evidenced
by any Instrument. 

 IN WITNESS WHEREOF, I have hereunto set my hand this [    ] day of
            , 2005. 
  

			
	  

	Title:	 	Chief Legal Officer

 SCHEDULE 5(A) 
  
 Description of Collateral 
  
 All personal property. 

 SCHEDULE 5(B) 
  
 FILING LOCATIONS 
  

			
	 Jurisdiction

	  	 Filing Office

	Delaware	  	Secretary of State

 EXHIBIT B 
  

CONFIRMATION 
  

			
	To:	  	Deutsche Bank Trust Company Americas, as Trustee
	 	  	Navistar Financial Corporation
		
	Re:	  	Purchase for the Account of Deutsche Bank Trust Company Americas,
	 	  	as Trustee, of the marketable securities indicated below

  
 Account
Number:                                 
  
 Dear Sir or Madam: 
  
 Reference is made to the Amended and Restated Security, Pledge and Trust Agreement dated as of
                 , 2005 (as the same may be amended from time to time, the “Agreement”) between Navistar Financial Corporation
(with its successors, “Navistar Financial”) and Deutsche Bank Trust Company Americas, as trustee (with its successors in such capacity, the “Trustee”). Terms defined in the Agreement and not otherwise defined herein have, as used
herein, the respective meanings provided for therein. 
  
 We
hereby confirm that we have purchased for the account of the Trustee the marketable securities identified on Schedule I hereto as to which ownership or the existence of a security interest is evidenced by entries on the books of a “securities
intermediary” (as defined in the UCC), custodian or other entity. In addition, we hereby confirm that (a) we are a Permitted Financial Intermediary for purposes of the Agreement and the above-referenced purchase, (b) we have made such purchase
through the above-referenced Securities Account of the Trustee, (c) we have made appropriate entries on our books to identify such marketable securities as being held for the Trustee, (d) we have received a copy of the Agreement executed by Navistar
Financial and the Trustee and (e) such marketable securities [consist of direct obligations of the United States held in book-entry form at the Federal Reserve Bank of New York] [consist of specific certificated securities in our possession]
[constitute or are part of a fungible bulk of “certificated securities” (as defined in the UCC) in our possession or of “uncertificated securities” (as so defined) registered in our name] [constitute or are part of a fungible
bulk of “securities” (as defined in the UCC) shown on our account on the books of another “securities intermediary” (as so defined)].2 
  
 We agree as
follows with respect to the above-referenced marketable securities: (a) we will have no right of compensation from any Person other than Navistar Financial; (b) we will look solely to Navistar Financial for payment of our expenses and charges, if
any, in connection with any marketable securities held for the account of the Trustee or in connection 
  

	2	Insert one of the four bracketed clauses, as appropriate. 

 with following the Trustee’s instructions with regard thereto; (c) such marketable securities will be maintained
free and clear of all Liens in our favor or in favor of anyone claiming by, through or under us; and (d) if certificates shall at any time be issued to us with regard to such marketable securities, we shall hold such certificates as the
Trustee’s bailee and agent. 
  
 This Confirmation shall be
governed by and construed in accordance with the laws of the State of New York. 
  

			
	Very truly yours,
	
	(Permitted Financial Intermediary)
		
	By:	 	  

	Title:	 	 

  

 2 

 SCHEDULE I

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