Document:

Note Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 NOTE PURCHASE AGREEMENT 
 dated as of 
 February 16, 2007 
 among 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION, 
 as Seller 
 FALCON
ASSET SECURITIZATION COMPANY LLC, 
 and 
 JUPITER SECURITIZATION COMPANY LLC 
 collectively, as the Conduit Investor 
 JPMORGAN CHASE BANK, N.A., 
 as Agent for the Investors 
 and 
 NAVISTAR FINANCIAL CORPORATION,

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

 TABLE OF CONTENTS 

					
	 	  	Pages
		
	 ARTICLE I           Definitions
	  	1
			
	 SECTION 1.01.
	    	 Defined Terms
	  	1
			
	 SECTION 1.02.
	    	 Terms Generally
	  	9
			
	 SECTION 1.03.
	    	 Computation of Time Periods
	  	10
		
	 ARTICLE II         Purchase of the Purchased Note
	  	10
			
	 SECTION 2.01.
	    	 Purchase of the Purchased Note
	  	10
			
	 SECTION 2.02.
	    	 The Note; Etc
	  	10
			
	 SECTION 2.03.
	    	 Calculation of Interest; Etc
	  	10
			
	 SECTION 2.04.
	    	 Sharing of Payments, Etc
	  	11
		
	 ARTICLE III       Representations and Warranties
	  	12
			
	 SECTION 3.01.
	    	 Representation and Warranties
	  	12
		
	 ARTICLE IV       Conditions
	  	16
			
	 SECTION 4.01.
	    	 Conditions Precedent
	  	16
		
	 ARTICLE V         Covenants of the Seller and Servicer
	  	17
			
	 SECTION 5.01.
	    	 Access
	  	17
			
	 SECTION 5.02.
	    	 Information from NFC
	  	17
			
	 SECTION 5.03.
	    	 Security Interests; Further Assurances
	  	18
			
	 SECTION 5.04.
	    	 Conduct of Business
	  	18
			
	 SECTION 5.05.
	    	 Compliance with Laws
	  	18
			
	 SECTION 5.06.
	    	 Replacement of Trustee
	  	18
			
	 SECTION 5.07.
	    	 Compliance with Opinion Assumptions
	  	19
			
	 SECTION 5.08.
	    	 Further Covenants
	  	19
			
	 SECTION 5.09.
	    	 Amendments
	  	19
		
	 ARTICLE VI       Indemnification
	  	19
			
	 SECTION 6.01.
	    	 Indemnities by the Seller and the Servicer
	  	19
			
	 SECTION 6.02.
	    	 Increased Cost and Reduced Return
	  	20
			
	 SECTION 6.03.
	    	 Other Costs and Expenses
	  	20
		
	 ARTICLE VII     The Agent
	  	21
			
	 SECTION 7.01.
	    	 Authorization and Action
	  	21
			
	 SECTION 7.02.
	    	 Delegation of Duties
	  	21

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	    	 	  	Page
			
	 SECTION 7.03.
	    	 Liability of Agent
	  	21
			
	 SECTION 7.04.
	    	 Reliance by Agent
	  	22
			
	 SECTION 7.05.
	    	 Notice of Event of Default
	  	22
			
	 SECTION 7.06.
	    	 Credit Decision; Disclosure of Information by the Agent
	  	22
			
	 SECTION 7.07.
	    	 Indemnification of the Agent
	  	23
			
	 SECTION 7.08.
	    	 Agent in Individual Capacity
	  	23
			
	 SECTION 7.09.
	    	 Resignation of Agent
	  	24
			
	 SECTION 7.10.
	    	 Payments by the Agent
	  	24
		
	 ARTICLE VIII   Miscellaneous
	  	24
			
	 SECTION 8.01.
	    	 Assignment
	  	24
			
	 SECTION 8.02.
	    	 Notices
	  	25
			
	 SECTION 8.03.
	    	 Waivers; Amendments
	  	26
			
	 SECTION 8.04.
	    	 Survival
	  	27
			
	 SECTION 8.05.
	    	 Counterparts; Integration; Effectiveness
	  	27
			
	 SECTION 8.06.
	    	 Severability
	  	27
			
	 SECTION 8.07.
	    	 Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial Right
	  	28
			
	 SECTION 8.08.
	    	 No Bankruptcy Petition Against the Conduit Investor
	  	28
			
	 SECTION 8.09.
	    	 Benefits of Indenture
	  	28
			
	 SECTION 8.10.
	    	 Headings
	  	28
			
	 SECTION 8.11.
	    	 No Recourse Against Conduit Investor, Members, Officers or Directors
	  	28
			
	 SECTION 8.12.
	    	 Waiver of Confidentiality
	  	29
			
	 SECTION 8.13.
	    	 Confidentiality Agreement
	  	29
			
	 SECTION 8.14.
	    	 Excess Funds
	  	29

 Exhibits 
 Exhibit A -    Documents to be Delivered to the Agent on or before the Closing Date 
  

 -ii- 

 NOTE PURCHASE AGREEMENT dated as of February 16, 2007 (as amended, supplemented or
otherwise modified from time to time, the “Agreement”), among: 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION, a Delaware corporation, as Seller (the “Seller”); 
 FALCON ASSET SECURITIZATION COMPANY LLC, a
Delaware limited liability company (“Falcon”); 
 JUPITER SECURITIZATION COMPANY LLC, a Delaware limited
liability company (“Jupiter”; Falcon and Jupiter, collectively, the initial Conduit Investor (as defined below); 
 JPMORGAN CHASE BANK, N.A., a national banking association (“JPMorgan Chase”), as Agent for the Investors; and 
 NAVISTAR FINANCIAL CORPORATION, a Delaware corporation, individually (“NFC”) and as Servicer (together with its successors and assigns, the “Servicer”). 
 RECITALS 
 WHEREAS, the Trust
and the Indenture Trustee are party to an Indenture dated as of February 16, 2007 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), pursuant to which the Seller has authorized the
issuance of the Series 2007-JPM Floating Rate Asset Backed Note (the “Note”); and 
 WHEREAS, on the Closing
Date, the Seller intends to sell the Purchased Note to the Agent for the benefit of the Conduit Investor and the other Investors and the Conduit Investor and the other Investors desire to acquire the Purchased Note. 
 Accordingly, the parties hereto agree as follows: 
 ARTICLE I 
 Definitions 
 SECTION 1.01.        Defined Terms.    Terms used herein but not otherwise defined herein have the respective meanings given to
such terms in Part I of Appendix A to the Pooling Agreement. As used in this Agreement, the following terms have the meanings specified below: 
 “Agent” means JPMorgan Chase in its capacity as agent for the Investors, and its successors and assigns appointed pursuant to Section 7.09. 
 “Agent-Related Person” means the Agent, together with its Affiliates, and the officers, directors, employees, agents and
attorneys-in-fact of such Persons and their respective Affiliates. 
 “Agreement” is defined in the
preamble. 
  

 1 

 “Alternate Rate” for any Fixed Period for any Funding Tranche means an
interest rate per annum equal to the sum of (x) Applicable Margin per annum and (y) the Eurodollar Rate for such Fixed Period; provided, however, that in the case of: 
 (i)        any Fixed Period existing on or after the first day of which the Agent shall have been
notified by the Conduit Investor or any Program Support Provider that: 
 (w)        the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful,
for the Conduit Investor or such Program Support Provider to fund any Funding Tranche (based on the Eurodollar Rate) set forth above (and the Conduit Investor or such Program Support Provider shall not have subsequently notified the Agent that such
circumstances no longer exist), 
 (x)        U.S. dollar deposits in
the London interbank market in the relevant amounts and for the relevant portion of such Fixed Period are not available, 
 (y)        adequate and reasonable means do not exist for ascertaining LIBOR for such Fixed Period, or 
 (z)        LIBOR does not accurately reflect the cost to the Conduit Investor or
such Program Support Provider (as conclusively determined by the Conduit Investor or such Program Support Provider (or by the Agent on its behalf)) of maintaining the applicable Funding Tranche during such Fixed Period; 
 (ii)        any Fixed Period of one to (and including) 13 days, 
 (iii)      any Fixed Period relating to a Funding Tranche which is less than $1,000,000, or 
 (iv)      any Fixed Period with respect to which the Alternate Rate, for any reason, becomes applicable on
notice to the Agent of less than three (3) Business Days, 
 the “Alternate Rate” for each such Fixed
Period shall be an interest rate per annum equal to the Corporate Base Rate in effect on each day of such Fixed Period. The “Alternate Rate” for any day on or after the occurrence of an Event of Default shall be an interest rate
equal to 2.0% per annum above the Corporate Base Rate in effect on such day. 
 “Applicable
Margin” has the meaning specified in the Fee Letter. 
 “Assignee Rating Criteria” means a short
term debt rating of “A-1” or higher from Standard & Poor’s, “P-1” from Moody’s and, if applicable, “F-1” or higher from Fitch. 
 “Bankruptcy Code” means the Bankruptcy Reform Act of 1978, 11 U.S.C. §§ 101 et seq. 
 “Breakage Payment” is defined in Section 2.03(b). 
  

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 “Commercial Paper” means short-term promissory notes issued or to be
issued by the Conduit Investor to fund its investments in accounts receivable or other financial assets. 
 “Commission” is defined in Section 3.01(c). 
 “Conduit Assignee”
means any commercial paper conduit administered by JPMorgan Chase or any of its Affiliates and designated by JPMorgan Chase from time to time to accept an assignment from the Conduit Investor of all or a portion of its rights and obligations
hereunder. 
 “Conduit Investor” means, initially, Falcon and Jupiter, collectively, together with their
respective successors and assigns, including any of their respective Conduit Assignees. A “Conduit Investor” may include one or more commercial paper conduits as long as such commercial paper conduits are either (i) Affiliates of one
another or (ii) administered by the same Person or its Affiliates. If a “Conduit Investor” consists of more than one commercial paper conduit, each such commercial paper conduit will have the rights and obligations with respect to the
Note as may be determined between them from time to time. 
 “Corporate Base Rate” means, for any day a
fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate for such day, plus 0.50% and (b) the rate of interest in effect for such day as publicly announced from time to time by the Agent as its “prime
rate”. The “prime rate” is a rate set by the Agent based upon various factors including the Agent’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans,
which may be priced at, above, or below such announced rate. Any change in the prime rate announced by the Agent shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Corporate Services Provider” is defined in Section 8.11. 
 “CP Rate” for any Fixed Period for any Funding Tranche means, to the extent the Conduit Investor funds such Funding
Tranche for such Fixed Period by issuing Commercial Paper, the per annum rate equivalent to the “weighted average cost” (as defined below) related to the issuance of Commercial Paper that are allocated, in whole or in part, by the Conduit
Investor or the Agent to fund or maintain such Funding Tranche (and which may also be allocated in part to the funding of other Funding Tranches hereunder or of other assets of the Conduit Investor); provided, however, that if any
component of such rate is a discount rate, in calculating the “CP Rate” for such Funding Tranche for such Fixed Period, the Conduit Investor shall for such component use the rate resulting from converting such discount rate to an
interest bearing equivalent rate per annum. As used in this definition, a Conduit Investor’s “weighted average cost” shall consist of (w) the actual interest rate (or discount) paid to purchasers of the Conduit
Investor’s Commercial Paper, together with the commissions of placement agents and dealers in respect of such Commercial Paper, to the extent such commissions are allocated, in whole or in part, to such Commercial Paper by the Conduit Investor
or the Agent, (x) certain documentation and transaction costs associated with the issuance of such Commercial Paper, (y) any incremental carrying costs incurred with respect to Commercial Paper maturing on dates other than those on which
corresponding funds are received by the Conduit Investor, and (z) other borrowings by the Conduit Investor (other than under any Program Support Agreement), 

  

 3 

 
including borrowings to fund small or odd dollar amounts that are not easily accommodated in the commercial paper market. 
 “Day Count Fraction” means, as to any Funding Tranche for any Fixed Period, a fraction (a) the numerator of which
is the number of days in such Fixed Period and (b) the denominator of which is 360 (or, with respect to any Funding Tranche which accrues interest by reference to the Corporate Base Rate, the actual number of days in the related calendar year).

 “Distribution Period” means, initially, the period from, and including, the Closing Date to, but
excluding, the first Distribution Date and thereafter the period from, and including, each Distribution Date to, but excluding, the next Distribution Date. 
 “Distribution Date” is defined in the Indenture. 
 “Eurodollar Rate” means, for any Fixed Period, an interest rate per annum (rounded upward to the nearest 1/1000th of 1%) determined pursuant to the following formula: 
  

					
	 Eurodollar Rate =
	 	 LIBOR
	 	
		 	1.00 - Eurodollar Reserve Percentage	 	

 Where, 
 “Eurodollar Reserve Percentage” means, for any Fixed Period, the maximum reserve percentage (expressed as a decimal, rounded upward to the nearest 1/1000th of 1%) in effect on
the date LIBOR for such Fixed Period is determined under regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement)
with respect to Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) having a term comparable to such Fixed Period; and 
 “LIBOR” means the rate per annum equal to the applicable British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters Screen FRBD as of 11:00 a.m.
(London time) on the second Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed Period, provided that, (i) if Reuters Screen FRBD is not
available to the Agent for any reason, LIBOR for such Fixed Period shall instead be the applicable British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars as reported by any other generally recognized financial
information service as of 11:00 a.m. (London time) on the second Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed Period, and (ii) if no such
British Bankers’ Association Interest Settlement Rate is available to the Agent, LIBOR for such Fixed period shall instead be the rate determined by the Agent to be the rate at which the Agent offers to place deposits in U.S. dollars with
first-class banks in the London interbank market at approximately 11:00 a.m. (London time) on the second Business Day prior to the 

  

 4 

 
commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed period. 
 “Event of Bankruptcy” means, with respect to any Person, (a) that such Person (i) shall generally not pay its
debts as such debts become due or (ii) shall admit in writing its inability to pay its debts generally or (iii) shall make a general assignment for the benefit of creditors; (b) any proceeding shall be instituted by or against such
Person seeking to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it or any substantial part of its property; or (c) such Person shall take any corporate,
partnership or other similar appropriate action to authorize any of the actions set forth in the preceding clauses (a) or (b) . 
 “Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is
not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next
succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to the Agent on such day on such transactions as determined by it. 
 “Falcon” is defined in the preamble. 
 “Fee Letter” means the agreement, dated as of the Closing Date, among the Seller, the Servicer and the Agent. 
 “Fitch” means Fitch, Inc. and its successors in interest. 
 “Fixed
Period” means, unless otherwise mutually agreed by the Agent and the Conduit Investor, (a) with respect to any Funding Tranche funded by the issuance of Commercial Paper, (i) initially the period commencing on (and including) the
date of the initial purchase or funding of such Funding Tranche and ending on (and including) the last day of the current calendar month, and (ii) thereafter, each period commencing on (and including) the first day after the last day of the
immediately preceding Fixed Period for such Funding Tranche and ending on (and including) the last day of the current calendar month and (b) with respect to any Funding Tranche not funded by the issuance of Commercial Paper, (i) initially
the period commencing on (and including) the date of the initial purchase or funding of such Funding Tranche and ending on (but excluding) the next following Distribution Date and (ii) thereafter, each period commencing on (and including) the
first day after the last day of the immediately preceding Fixed Period for such Funding Tranche and ending on (and excluding) the next following Distribution Date; provided, that 
 (i)     any Fixed Period with respect to any Funding Tranche not funded by the issuance of
Commercial Paper which would otherwise end on a day which 

  

 5 

 
is not a Business Day shall be extended to the next succeeding Business Day; provided , however , if interest in respect of such Fixed Period
is computed by reference to the Eurodollar Rate, and such Fixed Period would otherwise end on a day which is not a Business Day, and there is no subsequent Business Day in the same calendar month as such day, such Fixed Period shall end on the next
preceding Business Day; 
 (ii)     in the case of any Fixed Period for any Funding
Tranche which commences before the Final Scheduled Termination Date and would otherwise end on a date occurring after the Final Scheduled Termination Date, such Fixed Period shall end on such Final Scheduled Termination Date and the duration of each
Fixed Period which commences on or after the Final Scheduled Termination Date shall be of such duration as shall be selected by the Agent; and 
 (iii)     any Fixed Period in respect of which interest is computed by reference to the CP Rate may be terminated at the election of, and upon notice thereof to the Seller by,
the Agent any time, in which case the Funding Tranche allocated to such terminated Fixed Period shall be allocated to a new Fixed Period commencing on (and including) the date of such termination and ending on (but excluding) the next following
Distribution Date, and shall accrue interest at the Corporate Base Rate. 
 “Funded Amount” means on any
Business Day, an amount equal to the result of (a) the Initial Invested Amount minus (b) the aggregate principal amount of principal payments made to the Noteholder prior to such day; provided, that the Funded Amount shall be
restored or reinstated to the extent any such principal payment so received and applied is at any time rescinded, returned or refunded for any reason. 
 “Funding Rate” means, with respect to any Fixed Period and any Funding Tranche, (a) to the extent the Conduit Investor is funding such Funding Tranche during such Fixed Period through the
issuance of Commercial Paper, the CP Rate, and (b) to the extent any Investor is not funding such Funding Tranche through the issuance of Commercial Paper, a rate per annum (expressed as a percentage and an interest yield equivalent and
calculated on the basis of a 360-day year and the actual days elapsed) equal to the Alternate Rate. 
 “Funding
Tranche” means, any time, each portion of the Funded Amount allocated to the same Fixed Period and accruing interest by reference to the same Funding Rate at such time. 
 “Governmental Actions” means any and all consents, approvals, permits, orders, authorizations, waivers, exceptions,
variances, exemptions or licenses of, or registrations, declarations or filings with, any Governmental Authority required under any Governmental Rules. 
 “Governmental Authority” means the United States of America, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government and having jurisdiction over the applicable Person. 
  

 6 

 “Governmental Rules” means any and all laws, statutes, codes, rules,
regulations, ordinances, orders, writs, decrees and injunctions, of any Governmental Authority and any and all legally binding conditions, standards, prohibitions, requirements and judgments of any Governmental Authority. 
 “Indemnified Amounts” has the meaning specified in Section 6.01. 
 “Indemnified Parties” has the meaning specified in Section 6.01. 
 “Indenture” is defined in the first paragraph of the recitals. 
 “Indenture Trustee” is defined in the Indenture. 
 “Initial Invested Amount” means $431,801,454.48. 
 “Investors” means the Conduit Investor and/or the Program Support Providers, as the context may require. 
 “Issuer” or “Trust” means Navistar Financial 2007-JPM Owner Trust, a Delaware statutory trust.

 “Jupiter” is defined in the preamble. 
 “Material Adverse Effect” means a material adverse effect on (i) the business, results of operations or financial
condition or the material properties or assets of NFC or NFRRC, (ii) the ability of NFC or NFRRC to perform its obligations hereunder or under any other Transaction Document or (iii) the interests of the Agent or any Investor hereunder.

 “Moody’s” means Moody’s Investors Service, Inc., or any successor that is a nationally
recognized statistical rating organization. 
 “NFC” is defined in the preamble. 
 “NFRRC” means Navistar Financial Retail Receivables Corporation, a Delaware corporation, and its successors and
permitted assigns. 
 “Note” is defined in the first paragraph of the recitals. 
 “Noteholders’ Interest Distributable Amount” means, with respect to any Distribution Date, the sum of: 

(A) the sum of (i) the summation of the amount of interest accrued during the related Monthly Period on each Funding Tranche
funded at the CP Rate, determined by multiplying (a) the applicable Funding Rate times (b) the Weighted Average Funded Amount for such Funding Tranche times (c) the applicable Day Count Fraction for which interest
accrued at such rate and (ii) any Noteholders’ Interest Distributable Amount calculated in accordance with clause (A)(i) above due but not paid with respect to the prior Monthly Period, plus interest on such unpaid amount calculated as the
product of (x) the weighted average Funding Rate for all 

  

 7 

 
Funding Tranches funded at the CP Rate during the most recent Monthly Period, times (y) the amount of such unpaid Noteholders’ Interest
Distributable Amount, times (z) the quotient of the number of days in the related Monthly Period divided by 360, 
 plus 
 (B) the sum of (i) the summation of the amount of interest accrued during the related
Distribution Period on each Funding Tranche not funded at the CP Rate, determined by multiplying (a) the applicable Funding Rate times (b) the Weighted Average Funded Amount for such Funding Tranche times (c) the
applicable Day Count Fraction for which interest accrued at such rate and (ii) any Noteholders’ Interest Distributable Amount calculated in accordance with clause (B)(i) above due but not paid with respect to the prior Distribution Period,
plus interest on such unpaid amount calculated as the product of (x) the weighted average Funding Rate for all Funding Tranches not funded at the CP Rate during the most recent Distribution Period, times (y) the amount of such
unpaid Noteholders’ Interest Distributable Amount, times (z) for Funding Tranches that do not accrue interest by reference to the Corporate Base Rate, the quotient of the number of days in the related Distribution Period divided by 360.

 plus 
 (C) on any Distribution Date on which the Funded Amount is reduced to zero and on the Final Scheduled Termination Date, any amounts which accrue in clause (A) above (together with all fees which accrue pursuant
to paragraph 1 of the Fee Letter) from (and excluding) the last day of the related Monthly Period through (and including) such Distribution Date. 
 “Note Interest” means, with respect to any Investor at any time, the undivided interest in the Note owned by such Investor at such time. 
 “Other Obligations” means the fees under the Fee Letter and any other amounts payable to the Agent or any Investor under
or in connection with this Agreement or any other Transaction Document (other than principal or interest in respect of the Notes), including, without limitation, all Breakage Payments and all amounts payable from time to time pursuant to Article
VI. 
 “Program Support Agreement” means and includes any agreement entered into by any Program Support
Provider providing for the issuance of one or more letters of credit for the account of the Conduit Investor, the issuance of one or more surety bonds for which the Conduit Investor is obligated to reimburse the applicable Program Support Provider
for any drawings thereunder, the sale by the Conduit Investor to any Program Support Provider of the Purchased Notes (or portions thereof or participations therein) and/or the making of loans and/or other extensions of credit to the Conduit Investor
in connection with the Conduit Investor’s commercial paper program, together with any letter of credit, surety bond or other instrument issued thereunder, whether any of the foregoing is for the purpose of providing credit support or liquidity
to the Conduit Investor. 
 “Program Support Provider” means and includes any Person now or hereafter
extending credit or having a commitment to extend credit to or for the account of, or to make purchases from, the Conduit Investor or issuing a letter of credit, surety bond or other instrument to support 

  

 8 

 
any obligations arising under or in connection with the Conduit Investor’s commercial paper program. 
 “Purchased Note” means the Note, in the maximum aggregate principal amount of $431,801,454.48 to be issued to the Agent
(or its nominee) on behalf of the Investors pursuant to the Indenture and Section 2.01 hereof. 
 “Recipient” has the meaning specified in Section 2.04. 
 “Seller” is
defined in the preamble. 
 “Servicer” is defined in the preamble. 
 “Standard & Poor’s” or “S&P” means Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc., or any successor that is a nationally recognized statistical rating organization. 
 “Transaction Documents” means the “Basic Documents” as defined in Part I of Appendix A to the Pooling Agreement. 
 “Weighted Average Funded Amount” means, with respect to any Funding Tranche for any Fixed Period, the quotient of (i) the summation of the portion of the Funded Amount allocated to such Funding
Tranche determined as of each day in such Fixed Period, divided by (ii) the number of days in such Fixed Period. 
 SECTION 1.02.         Terms Generally.    All terms defined directly or by incorporation herein shall have the defined meanings when used in any certificate or other
document delivered pursuant hereto unless otherwise defined therein. For purposes of this Agreement and all such certificates and other documents, unless the context otherwise requires: (a) accounting terms not otherwise defined herein, and
accounting terms partly defined herein to the extent not defined, shall have the respective meanings given to them under, and shall be construed in accordance with, generally accepted accounting principles in effect in the United States from time to
time; (b) terms used in Article 9 of the applicable UCC as in effect from time to time, and not specifically defined herein, are used herein as defined in such Article 9; (c) references to any amount as on deposit or outstanding on any
particular date means such amount at the close of business on such day; (d) the words “hereof,” “herein” and “hereunder” and words of similar import refer to this Agreement (or the certificate or other document in
which they are used) as a whole and not to any particular provision of this Agreement (or such certificate or document); (e) references to any Article, Section, Schedule or Exhibit are references to Articles, Sections, Schedules and Exhibits in
or to this Agreement (or the certificate or other document in which the reference is made) and references to any paragraph, subsection, clause or other subdivision within any Section or definition refer to such paragraph, subsection, clause or other
subdivision of such Section or definition; (f) the term “including” means “including without limitation”; (g) references to any law refer to that law as amended from time to time and include any successor law;
(h) references to any agreement refer to that agreement as from time to time amended or supplemented or as the terms of such agreement are waived or modified in accordance with its terms; (i) references to any Person include that
Person’s successors and permitted assigns; and (j) headings are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof. 
  

 9 

 SECTION 1.03.        Computation of Time
Periods.    Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date to a later specified date, the word “from” means “from and including”, the words
“to” and “until” each means “to but excluding”, and the word “within” means “from and excluding a specified date and to and including a later specified date”. 
 ARTICLE II 
 Purchase of the Purchased Note

 SECTION 2.01.        Purchase of the Purchased
Note.    On the terms and subject to the conditions set forth in this Agreement, and in reliance on the covenants, representations, warranties and agreements herein and therein set forth, the Seller shall cause to be issued,
and shall cause the Indenture Trustee to authenticate and deliver to the Agent and the Agent shall purchase the Purchased Note, issued on the Closing Date, on behalf of the Investors. The purchase price payable for the Purchased Note shall be equal
to the Initial Invested Amount. The Agent (or its nominee) shall hold the Purchased Note on behalf of the Investors pro rata in accordance with their respective outstanding portions (if any) of the Funded Amount funded by them from time to time. The
Purchased Note so issued shall be dated the Closing Date, registered in the name of the Agent (or its nominee) and duly authenticated in accordance with the provisions of the Indenture. Without limiting any other provision of this Agreement, the
issuance of the Purchased Note and the funding of the Funded Amount thereunder on the Closing Date is subject to the satisfaction of the conditions precedent set forth in Article IV. Upon such issuance, (i) the Agent shall thereby
acquire the Purchased Note, and (ii) the Agent and the Investors shall become subject to the terms and conditions set forth herein and the Indenture. 
 SECTION 2.02.        The Note; Etc.    The funding of the Initial Invested Amount shall be evidenced by the Purchased Note and shall be governed by
and subject to the Indenture. All payments to be made on the Note shall be made in accordance with the Indenture and the terms of this Agreement. The sole Holder of the Purchased Note shall be the Agent, which shall hold such Note for the benefit of
the Investors. Except as otherwise required in the Indenture, all payments to be made on the Note shall be made by wire transfer of immediately available funds to the account set forth below the Agent’s signature to this Agreement (or to such
other account as the Agent may specify from time to time in writing to the Seller and the Indenture Trustee). 
 SECTION
2.03.        Calculation of Interest; Etc. 
 (a)     On
or before the second Business Day after the end of each Monthly Period, the Agent shall calculate for the related Distribution Date, the Noteholders’ Interest Distributable Amount payable on such Distribution Date and provide such calculation
to the Servicer in writing. If any Funding Tranche begins to accrue interest at a Funding Rate other than the CP Rate after the date the Agent provides the Noteholders’ Interest Distributable Amount calculation for any Distribution Date, the
Agent shall promptly provide the Servicer a calculation of the interest that will accrue on such Funding Tranche and be included in the definition of “Noteholders’ Interest Distributable Amount” for such Distribution Date. The parties
acknowledge that the interest calculation set forth in clause (C) of the definition of “Noteholders’ Interest Distributable Amount” shall be an estimate. If the estimated accruals exceed the actual accruals, the Agent
shall reimburse such excess. If the actual accruals 

  

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exceed the estimated accruals, the Seller shall reimburse the Agent. 
 (b)     If (i) any distribution of principal is made with respect to any Funding Tranche with a Fixed Period and a fixed interest rate other than on a Distribution Date
and (ii) as a consequence of such distribution the interest paid by an Investor to providers of funds to it to fund that Funding Tranche exceeds returns earned by such Investor with respect to such Funding Tranche, factoring in actual returns
earned during the Fixed Period and assuming redeployment of such funds in highly rated short-term money market instruments from the date of principal distribution through the end of the Fixed Period, then, upon written notice (including a detailed
calculation of such Breakage Payment) from the Agent to the Servicer, such Investor shall be entitled to receive additional amounts in the amount of such excess (each, a “Breakage Payment”) on the date of such distribution, so long
as such written notice is received not later than noon, New York City time, on the first Business Day immediately preceding such distribution. 
 (c)     On each date the principal amount of the Purchased Note is reduced, a duly authorized officer, employee or agent of the Agent (or its nominee) shall make appropriate notations in its books
and records of the applicable rates of interest and the amount of each such reduction, as applicable. Each of the Servicer, the Seller and each Investor authorizes each duly authorized officer, employee and agent of the Agent (or its nominee) to
make such notations on the books and records as aforesaid and such notation made in accordance with the foregoing authority shall be binding on the Servicer, the Seller and each Investor absent manifest error. 
 (d)     Whenever any amount is paid pursuant to the Indenture to the Agent in connection with the Purchased Note, the
Agent shall promptly allocate such amounts among the applicable Investors and pay, or cause to be paid, out of such funds received by it, to each applicable Investor, its applicable share of such amount; provided, that if any such amount paid
to the Agent is insufficient to pay the amount due to each Investor in respect of such amounts, the Agent shall distribute the amount it has received to each Investor pro rata based on the amounts owed to each Investor and forthwith report the
amount of such deficiency to the Seller, the Indenture Trustee and the Servicer. 
 SECTION
2.04.        Sharing of Payments, Etc.    If any Investor (for purposes of this Section only, being a “Recipient”) shall obtain any payment (whether voluntary,
involuntary, through the exercise of any right of setoff, or otherwise) on account of any Note Interest owned by it in excess of its ratable share of payments on account of the applicable Funded Amount obtained by the Investors entitled thereto,
such Recipient shall forthwith purchase from the Investors entitled to a share of such amount participations in the applicable Note Interests owned by such Persons as shall be necessary to cause such Recipient to share the excess payment ratably
with each such other Person entitled thereto; provided, that if all or any portion of such excess payment is thereafter recovered from such Recipient, such purchase from each such other Person shall be rescinded and each such other Person
shall repay to the Recipient the purchase price paid by such Recipient for such participation to the extent of such recovery, together with an amount equal to such other Person’s ratable share (according to the proportion of (a) the amount
of such other Person’s required payment to (b) the total amount so recovered from the 

  

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Recipient) of any interest or other amount paid or payable by the Recipient in respect of the total amount so recovered. 
 ARTICLE III 
 Representations and
Warranties 
 SECTION 3.01.        Representation and Warranties.

 (a)     The Seller hereby makes the following representations and warranties to the Agent and the
Investors as of the Closing Date and the Investors and the Agent shall be deemed to have relied on such representations and warranties in purchasing the Purchased Note on the Closing Date: 
 (i)     the Seller repeats and reaffirms that the representations and warranties of the Seller set forth in
Section 3.01 of the Pooling Agreement and represents and warrants that such representations and warranties are true and correct; 
 (ii)     each of the Transaction Documents executed by the Seller has been duly authorized, executed and delivered by the Seller, and is the valid and legally binding obligation of the Seller,
enforceable against the Seller in accordance with its terms, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to
creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (iii)     the Purchased Note has been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the Indenture, and delivered to and
paid for in accordance with this Agreement, will be duly and validly issued and outstanding and will be entitled to the benefits of the Indenture, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization,
moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (iv)     there is no pending or, to the Seller’s knowledge, threatened action, suit or proceeding by or against
the Seller before any Governmental Authority or any arbitrator (w) asserting the invalidity of this Agreement, any other Transaction Document or the Purchased Note, (x) seeking to prevent the issuance of the Purchased Note or the
consummation of any of the transactions contemplated by this Agreement or any other Transaction Document, (y) that might materially and adversely affect the performance by the Seller or the Trust of its obligations under, or the validity or
enforceability of, this Agreement, any other Transaction Document or the Purchased Note or (z) that if determined adversely as to the Seller or the Trust would have a Material Adverse Effect; 
 (v)     except for those caused by the failure of NFC and its affiliates to deliver its financial statements and
related financial information for the fiscal years ended October 31, 2005 and October 31, 2006, or for the fiscal quarters ended January 31, April 30 and July 31 of 2006, or for the fiscal quarters ended
January 31, April 30 and July 31 of 2007, in each case, 

  

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prior to the earliest of (1) October 31, 2007, (2) five (5) Business Days after the filing thereof with the Commission and (3) the
date on which such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, the Seller (x) is not in violation of its Certificate of Incorporation or By-Laws and (y) is not in breach or
violation of any of the terms or provisions of, or with the giving of notice or lapse of time, or both, would be in default under, any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement, or other
agreement or instrument to which the Seller is a party or by which it may be bound or to which any of its properties or assets may be subject, except for such violations or defaults that would not have a Material Adverse Effect; 
 (vi)     any taxes, fees and other charges of Governmental Authorities applicable to the Seller in connection with
the execution, delivery and performance by the Seller of the Transaction Documents or otherwise applicable to the Seller in connection with the Trust have been paid or will be paid by the Seller at or prior to the Closing Date to the extent then
due, except for any such failures to pay which, individually and in the aggregate, would not have a Material Adverse Effect; 
 (vii)     the Trust has been duly created and is validly existing under the laws of the State of Delaware and the Seller has authorized the Trust to issue and sell the Purchased Note; 
 (viii)     on the date hereof, the Seller is not insolvent or the subject of any voluntary or involuntary bankruptcy
proceeding; 
 (ix)     no proceeds of a purchase hereunder will be used by the Seller (x) for a
purpose that violates or would be inconsistent with Regulations T, U or X promulgated by the Board of Governors of the Federal Reserve System from time to time or (y) to acquire any security in any transaction in violation of Section 13 or
14 of the Securities Exchange Act of 1934, as amended; 
 (x)     assuming the accuracy of the
representations and warranties of the Conduit Investor set forth herein, the sale of the Purchased Note pursuant to the terms of this Agreement and the Indenture will not require registration of the Purchased Note under the Act; 
 (xi)     neither the Trust nor the Seller is an “investment company” or is controlled by an
“investment company” within the meaning of the Investment Company Act of 1940, as amended; 
 (xii)
    no written information furnished or to be furnished by the Seller or any of its Affiliates, agents or representatives to the Investors or the Agent for purposes of or in connection with this Agreement, including, without
limitation, any reports delivered pursuant to Section 5.02 and any information relating to the Receivables and NFC’s retail receivables financing business, is or shall be inaccurate in any material respect, or contains or shall contain any
material misstatement of fact, or omits or shall omit to state a material fact or any fact necessary to make the statements contained therein not misleading, in each case as of the date such information was or shall be stated or certified and as of
the date such information was 

  

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delivered by the Seller or any of its Affiliates, agents or representatives to the Investors or the Agent; 
 (xiii)     the Indenture is not required to be qualified under the Trust Indenture Act; 
 (xiv)     (x) the Seller’s chief executive office and principal place of business is, and has been at all times
during the five years preceding the date of this Agreement, located in the State of Illinois and (y) the Seller is a “registered organization” (as defined in Section 9-102 of the UCC) incorporated in the State of Delaware and,
for purposes of Article 9 of the UCC, NFC is, and has been at all times during the five years preceding the date of this Agreement, located in the State of Delaware; 
 (b)     NFC hereby makes the following representations and warranties to the Investors and the Agent as of the Closing Date and the Investors and the Agent shall be deemed to
have relied on such representations and warranties in purchasing the Purchased Note on the Closing Date: 
 (i)     NFC repeats and reaffirms to the Investors and the Agent the representations, warranties and covenants of the Servicer set forth in Section 5.01 of the Servicing Agreement and the representations and
warranties of NFC set forth in Section 5.01 of the Purchase Agreement and the representations and warranties of NFC set forth in Section 3.02 of the Purchase Agreement and represents and warrants that all such representations and
warranties are true and correct as of such date; 
 (ii)     no Governmental Action which has not been
obtained is required by or with respect to NFC in connection with any of the Transaction Documents, except any such failure which would not have a Material Adverse Effect; 
 (iii)     each of the Transaction Documents has been duly authorized, executed and delivered by NFC, and is the valid and legally binding obligation of NFC, enforceable
against NFC in accordance with its terms, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally
and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (iv)     the Purchased Note has been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the Indenture, and when delivered to and paid for in accordance with this Agreement,
will be duly and validly issued and outstanding and will be entitled to the benefits of the Indenture, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (v)     there is no pending or, to NFC’s knowledge, threatened action, suit or proceeding by or against NFC or
the Seller before any Governmental Authority or any arbitrator (w) asserting the invalidity of this Agreement, any other Transaction Document or the Purchased Note, (x) seeking to prevent the issuance of the Purchased Note or the
consummation of any of the transactions contemplated by this Agreement or any other Transaction Document, (y) that 

  

 14 

 
might materially and adversely affect the performance by any of NFC, the Seller or the Trust of its obligations under, or the validity or enforceability of,
this Agreement, any other Transaction Document or the Purchased Note or (z) that if determined adversely as to NFC, the Seller or the Trust would have a Material Adverse Effect; 
 (vi)     except for those caused by the failure of NFC and its affiliates to deliver its financial statements and
related financial information for the fiscal years ended October 31, 2005 and October 31, 2006, or for the fiscal quarters ended January 31, April 30 and July 31 of 2006, or for the fiscal quarters ended
January 31, April 30 and July 31 of 2007, in each case, prior to the earliest of (1) October 31, 2007, (2) five (5) Business Days after the filing thereof with the Commission and (3) the date on which
such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, NFC (x) is not in violation of its Certificate of Incorporation or By-Laws and (y) is not in breach or violation of any of the
terms or provisions of, or with the giving of notice or lapse of time, or both, would be in default under, any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement, or other agreement or instrument to
which NFC is a party or by which it may be bound or to which any of its properties or assets may be subject, except for such violations or defaults that would not have a Material Adverse Effect; 
 (vii)     any taxes, fees and other charges of Governmental Authorities applicable to NFC in connection with the
execution, delivery and performance by NFC of the Transaction Documents or otherwise applicable to NFC in connection with the Trust have been paid or will be paid by NFC at or prior to the Closing Date to the extent then due, except for any such
failures to pay which, individually and in the aggregate, would not have a Material Adverse Effect; 
 (viii)     the Trust has been duly created and is validly existing under the laws of the State of Delaware; 
 (ix)     on the date hereof, NFC is not insolvent or the subject of any insolvency proceeding; 
 (x)     no written information furnished or to be furnished by NFC or its Affiliates, agents or representatives to the Investors or the Agent for purposes of or in connection with this Agreement,
including, without limitation, any reports delivered pursuant to Section 5.02 and any information relating to the Receivables and NFC’s retail receivable financing business, is or shall be inaccurate in any material respect, or contains or
shall contain any material misstatement of fact, or omits or shall omit to state a material fact or any fact necessary to make the statements contained therein not misleading, in each case as of the date such information was or shall be stated or
certified, and such information heretofore furnished remains true and correct in all material respects as of the date such information was delivered by NFC or any of its Affiliates, agents or representatives to the Investors or the Agent.

 (xi)    (x) NFC’s chief executive office and principal place of business is, and has been at all
times during the five (5) years preceding the date of this Agreement, located in the State of Illinois and (y) NFC is a “registered organization” (as defined in Section 9-102 of the UCC) incorporated in the State of Delaware
and, for purposes of Article 9 of the UCC, NFC is, 

  

 15 

 
and has been at all times during the five years preceding the date of this Agreement, located in the State of Delaware. 
 (c)    The Note purchased by the Agent on behalf of the Investors pursuant to this Agreement will be acquired
for investment only and not with a view to any public distribution thereof, and no Investor will offer to sell or otherwise dispose of its interest in the Note so acquired by it (or any interest therein) in violation of any of the registration
requirements of the Act or any applicable state or other securities laws. The Agent and each Investor acknowledges that it has no right to require the Seller to register under the Act or any other securities law the Note to be acquired by the Agent
on behalf of such Investor pursuant to this Agreement. 
 The Investors and the Agent have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and risks of an investment in the Note and the Investors are able to bear the economic risk of such investment. The Investors and the Agent have reviewed the Pooling Agreement,
the Servicing Agreement and the Indenture (including the schedule and exhibits thereto) and have had the opportunity to perform due diligence with respect thereto and to ask questions of and receive answers from the Seller and its representatives
concerning the Seller, the Trust and the Note. Each of the Investors and the Agent is an “accredited investor” as defined in Rule 501, promulgated by the Securities and Exchange Commission (the “Commission”) under the
Securities Act of 1933, as amended. 
 (d)     None of the Investors or the Agent is required to register
as an “investment company” nor are the Investors or the Agent controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 ARTICLE IV 
 Conditions 
 SECTION 4.01.         Conditions Precedent. 
 (a)    The obligation of the Agent, for the benefit of the Investors to purchase the Purchased Note is subject to the
conditions precedent that (i) the Agent shall have received on or before the Closing Date each of the Transactions Documents, (ii) the Agent shall have received the certificates, opinions, lien searches and other items listed on Exhibit
A hereto, (iii) the Agent shall have received all fees and expenses required to be paid on such date pursuant to the terms of this Agreement and the Fee Letter and (iv) all conditions precedent under the Indenture and the other
Transaction Documents shall have been satisfied. 
 (b)    The funding of the Initial Invested Amount
shall be subject to the further conditions precedent that: 
 (i)    the Agent has received copies of all
settlement statements and all reports required to be delivered by the Servicer to the pursuant to Section 2.17 of the Servicing Agreement; 
  

 16 

 (ii)    each of the representations and warranties of the Seller and
the Servicer made herein and of the Trust made in the Transaction Documents shall be true and correct in all material respects as of the Closing Date (except to the extent they expressly relate to an earlier or later time); 
 (iii)   the Seller, the Trust and the Servicer shall be in compliance in all material respects with all of their
respective covenants contained in the Transaction Documents; 
 (iv)    no Event of Default shall have
occurred and be continuing and no Event of Default shall occur as a result of funding the Initial Invested Amount; and 
 (v)    the Aggregate Starting Receivables Balance shall equal or exceed $461,819,737.41. 
 ARTICLE V 

Covenants of the Seller and Servicer 
 SECTION 5.01.         Access.     So long as the Purchased Note remains outstanding, each of NFC and the Seller will, at any time from time to time
during regular business hours with reasonable notice to the Seller and NFC, permit the Investors or the Agent, or their agents or representatives to: 
 (a)    examine all books, records and documents (including computer tapes and disks) in the possession or under the control of the Seller or NFC relating to the Receivables, and 
 (b)    visit the offices and property of the Seller or NFC for the purpose of examining such materials described in
clause (a) above; 
 it being understood that except as provided in Section 8.12, any information obtained by an
Investor or the Agent pursuant to this Section 5.01 shall be held in confidence by the Investors and the Agent unless and to the extent such information (i) has become available to the public, (ii) is required or requested by any
Governmental Authority or in any court proceeding or (iii) is required by any Governmental Rule. In the case of any disclosure permitted by clause (ii) or (iii) an Investor and the Agent shall use commercially reasonable efforts to
(x) provide the Seller with advance notice of any such disclosure and (y) cooperate with the Seller in limiting the extent or effect of any such disclosure. 
 SECTION 5.02.         Information from NFC.    So long as the Purchased Note remains outstanding, NFC will furnish to the Agent:

 (a)    a copy of each certificate, opinion, report, statement, notice or other communication (other
than investment instructions) furnished by or on behalf of NFC or the Seller to the Indenture Trustee under any Transaction Document, concurrently therewith, and promptly after receipt thereof, a copy of each notice, demand or other communication
received by or on behalf of NFC or the Seller under any Transaction Document; 
  

 17 

 (b)    such other information (including financial information),
documents, records or reports respecting the Trust, the Receivables, the Seller or, to the extent it relates to the origination of Receivables or the servicing of the Trust, NFC, as the Investors or Agent may from time to time reasonably request;

 (c)    (I) except as provided in immediately succeeding clause (II), as soon as available and in any
event within (i) 45 days after the end of each of the first three fiscal quarters of any fiscal year and (ii) 120 days after the end of the last fiscal quarter of any fiscal year, copies of the interim or annual, as applicable, financial
statements of NFC, prepared in conformity with generally accepted accounting principles consistently applied and (II) on or before the earliest of (1) October 31, 2007, (2) five (5) Business Days after the filing thereof with the
Commission and (3) the date on which such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, copies of the interim or annual, as applicable, financial statements of NFC for the fiscal years
ended October 31, 2005 and October 31, 2006, for the fiscal quarters ended January 31, April 30 and July 31 of 2006, and for the fiscal quarters ended January 31, April 30 and July 31 of 2007, in
each case, prepared in conformity with generally accepted accounting principles consistently applied; and 
 (d)    as soon as possible and in any event within two Business Days after knowledge thereof by a Responsible Officer of NFC, notice of each Event of Default or event which with the giving of notice or the passage of
time or both would constitute an Event of Default. 
 SECTION
5.03.        Security Interests; Further Assurances.    The Seller will take all action reasonably necessary to maintain the Indenture Trustee’s first priority perfected
security interest in the Receivables and the other Collateral granted pursuant to the Indenture. The Seller agrees to take any and all acts and to execute any and all further instruments necessary or reasonably requested by the Investors or the
Agent to more fully effect the purposes of this Agreement. 
 SECTION
5.04.        Conduct of Business.    The Seller and the Servicer shall do all things necessary to remain duly incorporated, validly existing and in good standing as a domestic
corporation (or other business entity) in its jurisdiction of incorporation (or formation) and the Seller will cause the Trust to do all things necessary to remain duly organized, validly existing and in good standing as a statutory trust in the
State of Delaware. The Servicer shall maintain all requisite authority to conduct its business in each jurisdiction in which its business requires such authority except, in each case, where the failure to do so does not, and is not reasonably
expected to, have a Material Adverse Effect. 
 SECTION 5.05.        Compliance
with Laws.    The Seller and the Servicer shall comply in all material respects with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject or which are applicable to
the Collateral except where the failure to so comply does not, and is not reasonably expected to, have a Material Adverse Effect. 
 SECTION 5.06.        Replacement of Trustee.    If at any time the identity of the Owner Trustee and the Indenture Trustee is such that the Trust Indenture Act would require
the 

  

 18 

 
replacement of the Owner Trustee and/or the Indenture Trustee (assuming for this purpose that the Indenture were required to be qualified thereunder), then
the Seller shall (or shall cause the Issuer to) so replace the Owner Trustee and/or the Indenture Trustee, as applicable, in each case, within 180 days following the event which precipitated such replacement, with an Owner Trustee and/or Indenture
Trustee, as applicable, reasonably satisfactory to the Agent. 
 SECTION
5.07.        Compliance with Opinion Assumptions.    Each of the Seller and NFC shall at all times (as to itself) conduct its affairs in all material respects in accordance with the
factual assumptions applicable to it set forth in, and forming the basis of, the bankruptcy opinion(s) of Kirkland & Ellis delivered pursuant to Section 4.01(a). 
 SECTION 5.08.        Further Covenants.    Each of the Seller and NFC
will duly observe and perform each of its covenants set forth in the other Transaction Documents in all material respects. 
 SECTION 5.09.        Amendments.    Neither the Seller nor NFC will make, or permit any Person to make, any amendment, modification or change to, or provide any waiver under
any Transaction Document without the prior written consent of the Agent. 
 ARTICLE VI 
 Indemnification 
 SECTION 6.01.        Indemnities by the Seller and the Servicer.    Without limiting any other rights that the Agent or any Investor may have hereunder or under applicable
law, (A) the Seller hereby agrees to indemnify (and pay upon demand to) the Agent and each Investor and their respective assigns, officers, directors, agents and employees (each an “Indemnified Party”) from and against any and
all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts payable, including reasonable attorneys’ fees (which attorneys may be employees of the Agent or such Investor) and disbursements (all of the foregoing
being collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result of this Agreement or the acquisition, either directly or indirectly, by an Investor of the Notes (or
any interest therein), and (B) the Servicer hereby agrees to indemnify (and pay upon demand to) each Indemnified Party for Indemnified Amounts awarded against or incurred by any of them arising out of the Servicer’s activities as Servicer
excluding, however, in all of the foregoing instances under the preceding clauses (A) and (B) : 
 (i)    Indemnified Amounts to the extent such Indemnified Amounts resulted from gross negligence or willful misconduct on the part of the Indemnified Party seeking indemnification; 
 (ii)    Indemnified Amounts to the extent arising from the acts or omissions of a successor Servicer; 
 (iii)   Indemnified Amounts to the extent the same includes losses in respect of Receivables that are uncollectible;

  

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 (iv)    taxes imposed by any jurisdiction in which such Indemnified
Party is or would be subject to tax (unless such tax arises solely as a result of the transactions contemplated by this Agreement) on or measured by the overall net income of such Indemnified Party to the extent that the computation of such taxes is
consistent with the characterization for income tax purposes of the acquisition by the Investors of interests in the Purchased Note as a loan or loans by the Investors to Seller secured by the Receivables; or 
 (v)    arising from a breach of any representation or warranty with respect to any Receivable, to the extent such
Receivable is repurchased in accordance with the terms of the Pooling Agreement and the Purchase Agreement; 
 provided,
however, that nothing contained in this sentence shall limit the liability of the Seller or NFC or limit the recourse of the Agent or the Investors to the Seller or NFC for amounts otherwise specifically provided to be paid by the Seller or
NFC under the terms of this Agreement or any otherTransaction Document. 
 SECTION
6.02.        Increased Cost and Reduced Return.    If after the date hereof, any Investor shall be charged any fee, expense or increased cost on account of the adoption of any
applicable law, rule or regulation (including any applicable law, rule or regulation regarding capital adequacy) or any change therein, or any change in the interpretation or administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof or any accounting board or authority (whether or not part of government) which is responsible for the establishment or interpretation of national or international accounting
principles, or compliance with any request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency or accounting board or authority (a “Regulatory Change”): (i) that
subjects any Investor to any charge or withholding on or with respect to this Agreement or any Program Support Agreement or an Investor’s obligations under this Agreement or a Program Support Agreement, or on or with respect to the Receivables,
or changes the basis of taxation of payments to any Investor of any amounts payable under this Agreement or any Program Support Agreement (except for changes in the rate of tax on the overall net income of an Investor) or taxes excluded by
Section 6.01 or (ii) that imposes, modifies or deems applicable any reserve, assessment, insurance charge, special deposit or similar requirement against assets of, deposits with or for the account of an Investor, or credit extended
by an Investor pursuant this Agreement or a Program Support Agreement or (iii) that imposes any other condition the result of which is to increase the cost to an Investor of performing its obligations under this Agreement or a Program Support
Agreement, or to reduce the rate of return on an Investor’s capital as a consequence of its obligations under this Agreement or a Program Support Agreement, or to reduce the amount of any sum received or receivable by an Investor under this
Agreement or a Program Support Agreement or to require any payment calculated by reference to the amount of interests or loans held or interest received by it, then, upon demand by the Agent, Seller shall pay to the Agent, for the benefit of the
relevant Investor, such amounts charged to such Investor or such amounts to otherwise compensate such Investor for such increased cost or such reduction. 
 SECTION 6.03.        Other Costs and Expenses.    Seller shall pay to the Agent on demand any and all costs and expenses of the Agent and the
Investors, if any, including reasonable counsel fees and expenses in connection with the enforcement of this Agreement and 

  

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

 21 

 SECTION 7.04.        Reliance by
Agent.    (a) The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to the
Seller, the Servicer and the Indenture Trustee), independent accountants and other experts selected by the Agent. The Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Transaction Document
unless it shall first receive such advice or concurrence of the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support Providers) as it deems appropriate and, if it so requests, it shall first be
indemnified to its satisfaction by the Investors against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in acting, or in
refraining from acting, under this Agreement or any other Transaction Document in accordance with a request or consent of the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support Providers) or, if
required hereunder, all Investors and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Investors. 
 (a)    For purposes of determining compliance with the conditions specified in Article IV on the Closing Date, each Investor that has executed this Agreement shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Agent to such Investor for consent, approval, acceptance or satisfaction, or required thereunder to be consented to or approved by or
acceptable or satisfactory to such Investor. 
 SECTION 7.05.        Notice of
Event of Default.    The Agent shall not be deemed to have knowledge or notice of the occurrence of an Event of Default or an event which, with the giving of notice or passage of time, or both, would constitute an Event of
Default unless the Agent has received written notice from an Investor referring to this Agreement, describing such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default stating
that such notice is a “Notice of Event of Default”. The Agent will notify the Investors of its receipt of any such notice. The Agent shall (subject to Section 7.04 ) take such action with respect to such Event of Default or
event which, with the giving of notice or passage of time, or both, would constitute an Event of Default as may be requested by the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support Providers),
provided , that, unless and until the Agent shall have received any such request, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default or event which, with
the giving of notice or passage of time, or both, would constitute an Event of Default as it shall deem advisable or in the best interest of the Investors. 
 SECTION 7.06.        Credit Decision; Disclosure of Information by the Agent.    Each Investor acknowledges that none of the
Agent-Related Persons has made any representation or warranty to it, and that no act by the Agent hereinafter taken, including any consent to and acceptance of any assignment or review of the affairs of the Seller, the Servicer, the Indenture
Trustee, or any of their respective Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Investor as to any matter, including whether the 

  

 22 

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

 23 

 regarding the Seller, the Servicer, the Indenture Trustee, or their respective Affiliates (including
information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them. 
 SECTION 7.09.        Resignation of Agent.    The Agent may resign as
Agent upon thirty (30) days’ notice to the Investors. If the Agent resigns under this Agreement, the Investors shall appoint from among the Program Support Providers a successor agent for the Investors. If no successor agent is appointed
prior to the effective date of the resignation of the Agent, the Agent may appoint, after consulting with the Investors, a successor agent from among the Program Support Providers. Upon the acceptance of its appointment as successor agent hereunder,
such successor agent shall succeed to all the rights, powers and duties of the retiring Agent and the term “Agent” shall mean such successor agent and the retiring Agent’s appointment, powers and duties as Agent shall be terminated.
After any retiring Agent’s resignation hereunder as Agent, the provisions of this Section 7.09 and Sections 7.03 and 7.07 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the
Agent under this Agreement. If no successor agent has accepted appointment as Agent by the date which is thirty (30) days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless
thereupon become effective and the Program Support Providers shall perform all of the duties of the Agent hereunder until such time, if any, as the Investors appoint a successor agent as provided for above; provided that until such time as a
successor agent shall have been appointed, the resigning Agent shall continue to hold the Purchased Note as “nominee” for the Investors. 
 SECTION 7.10.        Payments by the Agent.    Unless specifically allocated to an Investor pursuant to the terms of this Agreement, all amounts
received by the Agent on behalf of the Investors shall be paid by the Agent to the Investors pro rata in accordance with their respective outstanding funded portions of the Funded Amount on the Business Day received by the Agent, unless such
amounts are received after 12:00 noon on such Business Day, in which case the Agent shall use its reasonable efforts to pay such amounts to the Investors on such Business Day, but, in any event, shall pay such amounts to the Investors not later than
the following Business Day. 
 ARTICLE VIII 
 Miscellaneous 
 SECTION
8.01.        Assignment.    (a) This Agreement shall be binding on the parties hereto and their respective successors and assigns; provided , that the Seller may not
assign any of its rights or delegate any of its duties hereunder without the prior written consent of the Agent. The Conduit Investor may only assign, participate, grant security interests in, or otherwise transfer any portion of its Note Interest,
in each case, as provided in clause (b) below. No provision of this Agreement shall in any manner restrict the ability of any Program Support Provider to assign, participate, grant security interests in, or otherwise transfer any portion
of its Note Interest, provided that any such transfer shall be in accordance with the terms of the Indenture. All costs and expenses of the Agent incurred in connection with any assignment hereunder shall be borne by the Seller. 

 

 24 

 (b)    The Conduit Investor may, from time to time, with prior or
concurrent notice to the Seller and the Indenture Trustee, in one transaction or a series of transactions, assign, participate, grant security interests in, or otherwise transfer all or a portion of its Note Interest and its rights and obligations
under this Agreement and any other Transaction Document to which it is a party (x) without the consent of the Seller or any other Person, (i) to a Conduit Assignee, (ii) to any Program Support Provider or (iii) to any other
commercial paper conduit which satisfies the Assignee Rating Criteria and (y) with the consent of the Seller (such consent not to be unreasonably withheld or delayed), to any Person not described in preceding clause (x); provided, that,
the Conduit Investor may, during the continuance of an Event of Default, assign, participate, grant security interests in, or otherwise transfer all or a portion of its Note Interest and its rights and obligations under this Agreement and any other
Transaction Document to which it is a party, in each case, without the consent of the Seller or any other Person. Subject to the transfer restrictions set forth in the Indenture, upon and to the extent of such assignment or other transfer by the
Conduit Investor, (i) such assignee shall be the owner of the assigned or transferred portion of the Note Interest, (ii) if such assignee is a Conduit Assignee (or another commercial paper conduit), such Conduit Assignee (or other
commercial paper conduit) and its liquidity support provider(s) and credit support provider(s) and other related parties shall have the benefit of all the rights and protections provided to a Conduit Investor and its Program Support Provider(s)
herein and in the other Transaction Documents (including any limitation on recourse against such Conduit Assignee (or other commercial paper conduit) or related parties, any agreement not to file or join in the filing of a petition to commence an
insolvency proceeding against such Conduit Assignee (or other commercial paper conduit), and the right to assign or otherwise transfer to another Conduit Assignee(or commercial paper conduit) as provided in this paragraph), (iii) such assignee
shall assume all (or the assigned or assumed portion) of the Conduit Investor’s obligations, if any, hereunder or under any other Transaction Document, and the Conduit Investor shall be released from such obligations, in each case to the extent
of such assignment, and the obligations of the Conduit Investor and such assignee shall be several and not joint, (iv) all distributions in respect of its Note Interest shall be made to the Agent, on behalf of the Conduit Investor and such
assignee according to their respective Note Interests, (v) the defined terms and other terms and provisions of this Agreement and the other Transaction Documents shall be interpreted in accordance with the foregoing, and (vi) if requested
by the Agent with respect to the assignee, the parties will execute and deliver such further agreements and documents and take such other actions as the Agent may reasonably request to evidence and give effect to the foregoing. 
 SECTION 8.02.        Notices.    Except in the case of notices and
other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service or sent by telecopy or by e-mail (if the
recipient has provided an e-mail address), as follows: 
 (a)    if to the Seller or the Servicer, at its
address or telecopy number set forth in Appendix B to the Pooling Agreement; 
 (b)    if to the Conduit
Investor: 
  

 25 

 Falcon Asset Securitization Company LLC 
 10 S. Dearborn Street 
 13 Floor, Chase Tower 
 Chicago, Illinois 

Attention: Conduit Securitization Group 
 Email:     abs.treasury.dept@jpmorgan.com 
 Phone:    (312) 732-7206 
 Fax:        (312) 732-1844 
 Jupiter Securitization Company LLC 
 10 S. Dearborn Street 
 13 Floor, Chase Tower 
 Chicago, Illinois 

Attention: Conduit Securitization Group 
 Email:     abs.treasury.dept@jpmorgan.com 
 Phone:    (312) 732-7206 
 Fax:        (312) 732-1844 
 (c)      if to the Agent: 
 JPMorgan Chase Bank, N.A. 
 10 S. Dearborn Street 
 13 Floor, Chase Tower

 Chicago, Illinois 
 Attention: Conduit Securitization Group 
 Email:     abs.treasury.dept@jpmorgan.com 
 Phone:    (312)
732-7206 
 Fax:        (312) 732-1844 
 All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to
have been given on the date of receipt. 
 SECTION 8.03.         Waivers;
Amendments. 
 (a)    No waiver of any provision of this Agreement or consent to any departure by the
Seller therefrom shall in any event be effective unless the same shall be permitted by Section 8.03(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without
limiting the generality of the foregoing, the Funding of the Purchased Note shall not be construed as a waiver of any Event of Default, regardless of whether the Indenture Trustee, the Seller, the Servicer, the Agent or the Conduit Investor may have
had notice or knowledge of such Event of Default at the time. 
 (b)    Any provision of the Agreement
may be amended or waived by (x) the Seller or Servicer if, but only if, it is in writing and signed by such Person and (y) the Agent and the Investors, if, but only if, it is in writing and signed by the Agent and the Conduit Investor. Any
consent or other election or action to be taken by an Investor pursuant to the Indenture shall 

  

 26 

 
be taken by the Agent as registered Holder of the Purchased Note, in each case with the consent of the applicable Investors (the Seller shall have no
obligation to inquire as to such consent and may rely on any consent, election or action taken by the Agent as such Holder). 
 (c)    No waiver, amendment or modification of the Transaction Documents or any other agreement referred to herein or therein to which the Seller is a party (other than this Agreement) shall affect any of the rights or
obligations under this Agreement of any party hereto unless such party has given its written consent to such waiver, amendment or modification. 
 (d)    A failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of any right, power
or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or privilege or the exercise of any other right, power or privilege. 
 SECTION 8.04.        Survival.    All covenants, agreements, representations and warranties made by the Seller and the Servicer
herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement
and the funding of the Purchased Note, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Indenture Trustee, the Agent or the Conduit Investor may have had notice or knowledge of any Event of
Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the Note or any amount payable under this Agreement is outstanding and unpaid. 
 SECTION 8.05.        Counterparts; Integration; Effectiveness.    This
Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the Indenture
and the other Transaction Documents constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This
Agreement shall become effective when it shall have been executed by each of the parties hereto and thereafter this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery
of an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 8.06.        Severability.    Any provision of this Agreement held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a
particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  

 27 

 SECTION 8.07.        Governing Law;
Jurisdiction; Consent to Service of Process; Waiver of Jury Trial Right. 
 (a)    This Agreement
shall be construed in accordance with the laws of the State of New York, without reference to its conflict of laws provisions (other than Section 5-1401 of the new York General Obligations Law), and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws. 
 (b)    TO THE EXTENT PERMITTED BY
LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 SECTION 8.08.         No Bankruptcy Petition Against the Conduit
Investor.    Each of the Investors, the Agent, the Seller and the Servicer hereby covenants and agrees that, prior to the date which is one year and one day (or the then applicable preference period) after the payment in full
of all outstanding Commercial Paper or other rated indebtedness of the Conduit Investor, it will not institute against, or join any other Person in instituting against, the Conduit Investor any proceeding of a type referred to in the definition of
Event of Bankruptcy. 
 SECTION 8.09.        Benefits of
Indenture.    Each of the Seller and the Servicer hereby acknowledges and confirms that each representation, warranty, covenant and agreement made pursuant to the Indenture by the Seller and the Servicer is also made herein,
all for the benefit and security of the Investors and the Agent. 
 SECTION
8.10.        Headings.    Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting, this Agreement. 
 SECTION
8.11.        No Recourse Against Conduit Investor, Members, Officers or Directors.    Notwithstanding anything to the contrary contained in this Agreement, the obligations of each
Conduit Investor under this Agreement and all other Transaction Documents are solely the corporate obligations of such Conduit Investor and shall be payable solely to the extent of funds received in accordance herewith or from any party to any
Transaction Document in accordance with the terms thereof in excess of funds necessary to pay matured and maturing Commercial Paper. No recourse under any obligation, covenant or agreement of the Conduit Investor contained in this Agreement shall be
had against any stockholder, member, employee, officer, director or incorporator of the Conduit Investor or any beneficial owner of any of them, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any
statute or otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation of the Conduit Investor, and that no personal liability whatsoever shall attach to or be incurred by the any stockholder, member,
employee, officer, director or incorporator of the Conduit Investor or any beneficial owner of any of them, as such, under or by reason of any of the obligations, covenants or agreements of the Conduit Investor contained in this Agreement, or
implied therefrom, and that any and all personal liability for breaches by the Conduit Investor of any of such obligations, covenants or agreements, either at common law or at equity, or by statute or constitution, of every such stockholder, member,
employee, officer, director or incorporator of the Conduit Investor or any beneficial owner of any of them, as such, is hereby expressly waived as a condition of and consideration for the execution of this Agreement; provided, that this
Section 8.11 shall not relieve any such stockholder, member, 

  

 28 

 
employee, officer, director or incorporator of the Conduit Investor or any beneficial owner of any of them, as such, of any liability it might otherwise have
for its own intentional misrepresentation or willful misconduct. 
 SECTION
8.12.        Waiver of Confidentiality.    Each of the Seller and the Servicer hereby consents to the disclosure of any non-public information with respect to it received by the
Agent or any Investor to (i) the Agent, any nationally recognized statistical rating organization rating the Conduit Investor’s Commercial Paper, any Program Support Provider or other Person providing financing to, or any member or other
Person holding equity interests in, the Conduit Investor or any of the foregoing Person’s counsel or accountants in relation to this Agreement or any other Transaction Document (as long as each of the foregoing Persons has been advised to keep
such information confidential); and (ii) with the Seller’s and the Servicer’s consent (such consent not to be unreasonably withheld or delayed), any other Investor or potential Investor. 
 SECTION 8.13.        Confidentiality Agreement.    Each of the Seller
and the Servicer hereby agrees that it will not disclose the contents of this Agreement or any other Transaction Document or any other proprietary or confidential information of or with respect to any Investor, the Agent or any Program Support
Provider to any other Person except (a) its auditors and attorneys, employees or financial advisors (other than any commercial bank) and any nationally recognized statistical rating organization, provided such auditors, attorneys, employees,
financial advisors or rating agencies are informed of the highly confidential nature of such information, (b) as otherwise required by applicable law or order of a court of competent jurisdiction, including its regulators, (c) in
connection with any proceeding brought by or against it with respect to this Agreement or the related transactions contemplated hereby, (d) in any offering circular prepared for the issuance and sale of the Note, if such disclosure has been
reviewed and agreed to by the Investors and the Agent and (e) that the Seller and Servicer may file copies of the Transaction Documents (other than the Fee Letter) with the Commission. 
 SECTION 8.14.        Excess Funds.    Notwithstanding any provisions
contained in this Agreement to the contrary, the Conduit Investor shall not, and shall not be obligated to, pay any amount pursuant to this Agreement unless (i) the Conduit Investor has received funds which may be used to make such payment and
which funds are not required to repay its Commercial Paper when due and (ii) after giving effect to such payment, either (x) the Conduit Investor could issue Commercial Paper to refinance all of its outstanding Commercial Paper (assuming
such outstanding Commercial Paper matured at such time) in accordance with the program documents governing the Conduit Investor’s securitization program or (y) all of such Conduit Investor’s Commercial Paper is paid in full. Any
amount which the Conduit Investor does not pay pursuant to the operation of the preceding sentence shall not constitute a claim (as defined in § 101 of the United States Bankruptcy Code) against or corporate obligation of the Conduit
Investor for any such insufficiency unless and until the Conduit Investor satisfies the provisions of clauses (i) and (ii) above. This Section shall survive the termination of this Agreement. 
 [Signature Pages Follow] 
  

 29 

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

			
	 CONDUIT INVESTOR:

	
	 FALCON ASSET SECURITIZATION COMPANY LLC,

		
	 By:
	 	 JPMorgan Chase Bank, N.A.,
 its Attorney-in-Fact

		
	 By:
	 	 /s/ Alan P. English

	 Name:
	 	 Alan P. English

	 Title:
	 	 Vice President

	
	 JUPITER SECURITIZATION COMPANY LLC,

		
	 By:
	 	 JPMorgan Chase Bank, N.A.,
 its Attorney-in-Fact

		
	 By:
	 	 /s/ Alan P. English

	 Name:
	 	 Alan P. English

	 Title:
	 	 Vice President

  

 [Signature Page to Jupiter/Falcon Note Purchase Agreement] 

			
	 SELLER:

	
	 NAVISTAR FINANCIAL
RETAIL                
 RECEIVABLES CORPORATION,
as Seller

		
	 By:
	 	 /s/ John V. Mulvaney, Sr

	 Name:
	 	 John V. Mulvaney Sr.

	 Title:
	 	 Vice President, Chief Financial Officer and Treasurer

	
	 INDIVIDUALLY AND AS SERVICER:

	
	 NAVISTAR FINANCIAL CORPORATION, individually and as Servicer

		
	 By:
	 	 /s/ John V. Mulvaney, Sr

	 Name:
	 	 John V. Mulvaney Sr.

	 Title:
	 	 Vice President, Chief Financial Officer and Treasurer

  

 [Signature Page to Jupiter/Falcon Note Purchase Agreement] 

			
	
	 AGENT:

	
	 JPMORGAN CHASE BANK, N.A.

		
	 By:
	 	 /s/ Alan P. English

	 Name:
	 	 Alan P. English

	 Title:
	 	 Vice President

  

			
	 Payment Information:
	 	 JPMorgan Chase Bank, N.A.

		 	 ABA: 021000021

		 	 Account Number: 9008112016

		 	 Account Name: FMSD Incoming Clearing Account

		 	 Ref: Navistar Financial 2007-JPM Owner Trust

		 	 Contact: William Laird (312) 385-7045

  

 [Signature Page to Jupiter/Falcon Note Purchase Agreement] 

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

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

  

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

  

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

  

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

  

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

  

	 	 -
	 authorization, execution and delivery of the Transaction Documents 

  

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

  

	 	 -
	 perfection and priority of security interests 

  

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

  

	 	 -
	 treatment of the Note as debt for tax purposes 

  

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

  

 A-1 

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

  

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

  

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

  

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

  

 A-2Pooling Agreement

 Exhibit 10.2 
 EXECUTION COPY 
  

 POOLING AGREEMENT 
 BETWEEN 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION 
 SELLER 
 AND 
 NAVISTAR FINANCIAL 2007-JPM OWNER TRUST

 ISSUER 
 DATED AS OF FEBRUARY
16, 2007 
  

 TABLE OF CONTENTS 
  

							
	 	  	Page
		
	 ARTICLE I DEFINITIONS
	  	1
		 	 SECTION 1.01
	    	 Definitions
	  	1
		
	 ARTICLE II CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES
	  	1
		 	 SECTION 2.01
	    	 Conveyance of Receivables
	  	1
		 	 SECTION 2.02
	    	 [Reserved]
	  	2
		 	 SECTION 2.03
	    	 Custody of Receivable Files
	  	2
		 	 SECTION 2.04
	    	 Acceptance by Issuer; Limitation on Transfer of International Purchase Obligations
	  	3
		 	 SECTION 2.05
	    	 Representations and Warranties as to the Receivables
	  	3
		 	 SECTION 2.06
	    	 Repurchase of Receivables Upon Breach of Warranty
	  	4
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER
	  	4
		 	 SECTION 3.01
	    	 Representations and Warranties of the Seller
	  	4
		 	 SECTION 3.02
	    	 Liability of Seller
	  	6
		 	 SECTION 3.03
	    	 Merger or Consolidation of, or Assumption of the Obligations of, Seller; Amendment of Certificate of Incorporation
	  	6
		 	 SECTION 3.04
	    	 Limitation on Liability of Seller and Others
	  	6
		 	 SECTION 3.05
	    	 Seller May Own Securities
	  	7
		
	 ARTICLE IV TERMINATION
	  	7
		 	 SECTION 4.01
	    	 Optional Purchase of All Receivables
	  	7
		 	 SECTION 4.02
	    	 Termination
	  	7
		
	 ARTICLE V MISCELLANEOUS PROVISIONS
	  	8
		 	 SECTION 5.01
	    	 Amendment
	  	8
		 	 SECTION 5.02
	    	 Protection of Title to Owner Trust Estate
	  	9
		 	 SECTION 5.03
	    	 Notices
	  	10
		 	 SECTION 5.04
	    	 Governing Law
	  	11
		 	 SECTION 5.05
	    	 Severability of Provisions
	  	11
		 	 SECTION 5.06
	    	 [Reserved]
	  	11
		 	 SECTION 5.07
	    	 Assignment; Third-Party Beneficiaries
	  	11
		 	 SECTION 5.08
	    	 Separate Counterparts
	  	11
		 	 SECTION 5.09
	    	 Headings and Cross-References
	  	11
		 	 SECTION 5.10
	    	 Assignment to Indenture Trustee
	  	11
		 	 SECTION 5.11
	    	 No Petition Covenants; Waiver of Claims
	  	12
		 	 SECTION 5.12
	    	 Limitation of Liability of the Trustees
	  	12
		 	 SECTION 5.13
	    	 MUTUAL WAIVER OF JURY TRIAL
	  	12
		 	 SECTION 5.14
	    	 Survival; Termination
	  	13
		 	 SECTION 5.15
	    	 Waivers
	  	13

  

 - i - 

			
	 EXHIBIT A
	    	 Locations of Schedule of Retail Notes

	 EXHIBIT B
	    	 Form of PSA Assignment

	 APPENDIX A
	    	 Defined Terms and Rules of Construction

	 APPENDIX B
	    	 Notice Addresses and Procedures

  

 - ii - 

 POOLING AGREEMENT 
 THIS POOLING AGREEMENT is made as of February 16, 2007 by and between Navistar Financial Retail Receivables Corporation, a Delaware corporation (“NFRRC” and, in its capacity
as the Seller hereunder, the “Seller”) and Navistar Financial 2007-JPM Owner Trust, a Delaware statutory trust (the “Issuer”). 
 WHEREAS, NFC has sold the Receivables and the Related Security to the Seller pursuant to the Purchase Agreement. 
 WHEREAS, the Seller desires to sell the Receivables and the Related Security to the Issuer in exchange for the Securities and the receipt of funds drawn under the Notes. 
 WHEREAS, the Seller and the Issuer wish to set forth the terms pursuant to which the Receivables and the Related Security are to
be sold by the Seller to the Issuer. 
 NOW, THEREFORE, in consideration of the foregoing, the other good and valuable
consideration and the mutual terms and covenants contained herein, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION
1.01        Definitions.  Certain capitalized terms used in the above recitals and in this Agreement are defined in and shall have the respective meanings assigned them in Part I of
Appendix A to this Agreement. All references herein to “the Agreement” or “this Agreement” are to this Pooling Agreement as it may be amended, supplemented or modified from time to time, the exhibits hereto and the
capitalized terms used herein which are defined in such Appendix A, and all references herein to Articles, Sections and subsections are to Articles, Sections or subsections of this Agreement unless otherwise specified. The rules of
construction set forth in Part II of such Appendix A shall be applicable to this Agreement. 
 ARTICLE II 
 CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES 
 SECTION 2.01        Conveyance of Receivables.  In consideration of the Issuer’s delivery of the Securities to, or upon the order of,
the Seller and the receipt by the Seller of the funds drawn under such Notes on the date hereof, the Seller does hereby enter into this Agreement and agree to fulfill all of its obligations hereunder and hereby sells, transfers, assigns, sets over
and otherwise convey to the Issuer, without recourse (except as provided in Section 2.06), pursuant to an assignment in the form attached hereto as Exhibit B (the “PSA Assignment”), all right, title
and interest of the Seller in, to and under: 
 (a)     the Retail Notes identified on the Schedule of
Retail Notes to the PSA Assignment delivered to the Issuer and the Related Security with respect to those Retail Notes; and 

 (b)     the rights, but not the obligations, acquired by the Seller
under the Purchase Agreement and the PA Assignment pursuant to Section 2.01 of the Purchase Agreement with respect to the Receivables. 
 It is the intention of the Seller and the Issuer that the transfer and assignment contemplated by this Section 2.01 shall constitute a sale of the Receivables and Related Security by the Seller to the Issuer and the beneficial
interest in and title to the assets conveyed pursuant to this Section 2.01 shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. The Seller
intends to treat such transfer and assignment as a sale for accounting and tax purposes. Notwithstanding the foregoing, in the event a court of competent jurisdiction determines that such transfer and assignment did not constitute such a sale or
that such sale shall for any reason be ineffective or unenforceable or that such beneficial interest is a part of the Seller’s estate (any of the foregoing, a “Recharacterization”), then (i) the Seller shall be deemed to
have granted to the Issuer a first priority perfected security interest in all of the Seller’s right title and interest in, to and under the assets conveyed pursuant to this Section 2.01, and the Seller hereby grants such security
interest and (ii) the assets conveyed pursuant to this Section 2.01 shall be deemed to include all rights, powers and options (but none of the obligations, if any) of the Seller under any agreement or instrument included in the
assets conveyed pursuant to this Section 2.01, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the Receivables included in the assets conveyed
pursuant to this Section 2.01 and all other monies payable under the Receivables conveyed pursuant to this Section 2.01, to give and receive notices and other communications, to make waivers or other agreements, to exercise
all rights, powers and options, to bring Proceedings in the name of the Seller or otherwise and generally to do and receive anything that the Seller is or may be entitled to do or receive under or with respect to the assets conveyed pursuant to this
Section 2.01. For purposes of such grant, this Agreement shall constitute a security agreement under the UCC. In the case of any Recharacterization, each of the Seller and the Issuer represents and warrants as to itself that each
remittance of Collections by the Seller to the Issuer hereunder or in connection herewith will have been (i) in payment of a debt incurred by the Seller in the ordinary course of business or financial affairs of the Seller and the Issuer and
(ii) made in the ordinary course of business or financial affairs of the Seller and the Issuer. 
 In addition, on the Closing Date, the
Seller shall deposit the Reserve Account Initial Deposit into the Reserve Account. Within two Business Days after the Closing Date, the Seller shall cause to be deposited into the Collection Account all collections (from whatever source) on or with
respect to the assets conveyed pursuant to this Section 2.01 received by the Seller pursuant to Section 5.07 of the Purchase Agreement. 
 SECTION 2.02         [Reserved] 
 SECTION 2.03     Custody of Receivable Files. In connection with the sale, transfer and assignment of Receivables and the Related Security to the Seller from NFC pursuant to the Purchase
Agreement, the Seller, simultaneously with the execution and delivery of this Agreement, shall enter into the Servicing Agreement with NFC, pursuant to which the Seller shall revocably appoint NFC as the Custodian, and NFC shall accept such
appointment, to act as 
  

 - 2 - 

 
the agent of the Seller as Custodian of the following documents or instruments which shall be constructively delivered to the Trust, as of the Closing Date
with respect to each Receivable: 
 (a)     the fully executed original of the Retail Note for such
Receivable; 
 (b)     documents evidencing or related to any Insurance Policy; 
 (c)     a copy of the original credit application of each Obligor, fully executed by each such Obligor on NFC’s
customary form, or on a form approved by NFC, for such application; 
 (d)     where permitted by law,
the original certificate of title (when received) and otherwise such documents, if any, that NFC keeps on file in accordance with its customary procedures indicating that the Financed Vehicle is owned by the Obligor and subject to the interest of
NFC as first lienholder or secured party; and 
 (e)     any and all other documents that NFC keeps on
file in accordance with its customary procedures relating to the individual Receivable, Obligor or Financed Vehicle. 
 SECTION 2.04         Acceptance by Issuer; Limitation on Transfer of International Purchase Obligations.    The Issuer does hereby accept all property (and interests in
property) conveyed by the Seller pursuant to Section 2.01, and declares that the Issuer shall hold such property upon the trust set forth in the Trust Agreement for the benefit of Certificateholders, subject to the terms and conditions
of the Trust Agreement, the Indenture, this Agreement and the other Basic Documents; provided, however, that the Issuer acknowledges and agrees that (a) the rights pursuant to the International Purchase Obligations are personal to NFC and only
the proceeds of such rights have been assigned to the Issuer by NFRRC hereunder and by NFC to NFRRC under the Purchase Agreement, (b) neither the Issuer nor the Indenture Trustee is or is intended to be a third-party beneficiary of such rights,
and (c) accordingly such rights are not exercisable by, enforceable by or for the benefit of, or preserved for the benefit of, the Issuer or the Indenture Trustee. The Issuer hereby agrees and accepts the appointment and authorization of NFC as
Servicer pursuant to the Servicing Agreement. The parties agree that this Agreement (including the PSA Assignment), the Servicing Agreement, the Indenture and the Trust Agreement constitute the Further Transfer and Servicing Agreements. 

SECTION 2.05        Representations and Warranties as to the
Receivables.  Pursuant to Section 2.01(b), the Seller assigns to the Issuer all of its right, title and interest in, to and under the Purchase Agreement. Such assigned right, title and interest includes the representations
and warranties of NFC made to the Seller pursuant to Section 3.01 of the Purchase Agreement. The Seller hereby represents and warrants to the Issuer that the Seller has taken no action which would cause such representations and
warranties to be false in any material respect as of the Closing Date. The Seller further acknowledges that the Issuer is relying on the representations and warranties of the Seller under this Agreement and of NFC under the Purchase Agreement in
accepting the Receivables in trust and executing and delivering the Securities. The foregoing representation and warranty speaks as of the Closing Date, but shall survive the sale, transfer and 

  

 - 3 - 

 
assignment of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee pursuant to the Indenture. 
 SECTION 2.06        Repurchase of Receivables Upon Breach of
Warranty.    Upon discovery by the Seller, the Servicer, either Trustee or the Agent of a breach of any of the representations and warranties in Section 3.01 of the Purchase Agreement (and, with respect to
Section 3.01(j) of the Purchase Agreement, irrespective of any limitation regarding knowledge of NFC) or in Section 2.05 or Section 3.01 of this Agreement that materially and adversely affects the interests of the
Financial Parties in any Receivable, the party discovering such breach shall give prompt written notice thereof to the others. As of the second Accounting Date following its discovery or its receipt of notice of breach (or, at the Seller’s
election, the first Accounting Date following such discovery or notice), unless such breach shall have been cured in all material respects, in the event of a breach of the representations and warranties made by the Seller in Section 2.05
or Section 3.01, the Seller shall repurchase such Receivable from the Issuer on the related Distribution Date. Neither the Owner Trustee nor the Issuer shall have any affirmative duty to conduct any investigation as to the occurrence of
any event requiring the repurchase of any Receivable pursuant to this Section 2.06. 
 The repurchase price to be
paid by any Warranty Purchaser shall be an amount equal to the Warranty Payment and shall be deposited by the Warranty Purchaser into the Collection Account on the Transfer Date for the related Distribution Date. It is understood and agreed that the
obligation of the Warranty Purchaser to repurchase any Receivable as to which a breach has occurred and is continuing shall, if such repurchase obligations are fulfilled, constitute the sole remedy against the Seller, the Servicer or NFC for such
breach available to any Interested Party. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE SELLER 
 SECTION
3.01        Representations and Warranties of the Seller.    The Seller makes the following representations and warranties as to itself on which the Issuer is relying in acquiring
the Receivables and issuing the Securities under the other Further Transfer and Servicing Agreements. The following representations and warranties speak as of the Closing Date, but shall survive the sale, transfer and assignment of the Receivables
to the Issuer and the pledge thereof to the Indenture Trustee pursuant to the Indenture. 
 (a)
    Organization and Good Standing.  The Seller has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware, with power and authority to own its
properties and to conduct its business as such properties are presently owned and such business is presently conducted, and had at all relevant times, and now has, power, authority and legal right to acquire and own the Receivables; 
 (b)     Due Qualification.  The Seller is duly qualified to do business as a foreign corporation in
good standing, and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business requires or shall require such qualification; 
  

 - 4 - 

 (c)     Power and Authority.  The Seller has the
power and authority to execute and deliver the Further Transfer and Servicing Agreements to which it is a party (as used in this Section 3.01, the “applicable Further Transfer and Servicing Agreements”) and to carry out the
respective terms of such agreements and has the power and authority to sell and assign the property to be sold and assigned to and deposited with the Issuer as part of the Owner Trust Estate and has duly authorized such sale and assignment to the
Issuer by all necessary corporate action; and the execution, delivery and performance by the Seller of the applicable Further Transfer and Servicing Agreements have been duly authorized by the Seller by all necessary corporate action; 
 (d)     Binding Obligations.  The applicable Further Transfer and Servicing Agreements
have been duly executed and delivered by the Seller and constitute a legal, valid and binding obligation of the Seller enforceable against the Seller in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,
insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law;

 (e)     No Violation.  The consummation by the Seller of the transactions
contemplated by the applicable Further Transfer and Servicing Agreements and the fulfillment of the terms of such agreements by the Seller shall not conflict with, result in any breach of any of the terms and provisions of or constitute (with or
without notice or lapse of time) a default under, the certificate of incorporation or by-laws of the Seller, or any indenture, agreement or other instrument to which the Seller is a party or by which it is bound, or result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument, other than the applicable Further Transfer and Servicing Agreements, or violate any law or, to the Seller’s knowledge,
any order, rule or regulation applicable to the Seller of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or any of its properties; 
 (f)     No Proceedings.  There are no proceedings or, to the Seller’s knowledge, investigations
pending or, to the Seller’s knowledge, threatened before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller or its properties (i) asserting the invalidity
of any of the applicable Further Transfer and Servicing Agreements, any Securities issued pursuant thereto or the Administration Agreement, (ii) seeking to prevent the issuance of such Securities or the consummation of any of the transactions
contemplated by the applicable Further Transfer and Servicing Agreements or the Administration Agreement, or (iii) seeking any determination or ruling that might materially and adversely affect the performance by the Seller of its obligations
under, or the validity or enforceability of, such Securities, the applicable Further Transfer and Servicing Agreements or the Administration Agreement; 
 (g)     Good Title.  On the date hereof, the Seller has good title to each Receivable free and clear of all Liens (other than Liens that will be released as of such transfer). On
the date hereof, good and valid title to each such Receivable will be validly and effectively 

  

 - 5 - 

 
conveyed to, and vested in, the Issuer, free and clear of all Liens, other than Liens created pursuant to the Basic Documents and the transfer of such
Receivable by the Seller to the Issuer has been perfected under the UCC; 
 (h)     All Filings
Made.  All filings (including UCC filings) necessary in any jurisdiction to give the Issuer a first priority perfected security or ownership interest in the Purchased Property (to the extent it constitutes Code Collateral) shall have
been made, and the Receivables constitute Code Collateral; and 
 (i)     Valid
Sale.  This Agreement and the PSA Assignment constitute a valid sale, transfer and assignment of the Purchased Property transferred thereby, enforceable against creditors of and purchasers from the Seller. 
 SECTION 3.02        Liability of Seller.    The Seller shall be liable
in accordance with this Agreement only to the extent of the obligations in this Agreement specifically undertaken by the Seller. 
 SECTION 3.03        Merger or Consolidation of, or Assumption of the Obligations of, Seller; Amendment of Certificate of Incorporation. 
 (a)     Any Person (i) into which the Seller may be merged or consolidated, (ii) resulting from any merger
or consolidation to which the Seller shall be a party, (iii) succeeding to the business of the Seller, or (iv) more than 50% of the voting stock of which is owned directly or indirectly by NIC, which corporation in any of the foregoing
cases executes an agreement of assumption to perform every obligation of the Seller under this Agreement, shall be the successor to the Seller under this Agreement without the execution or filing of any document or any further act on the part of any
of the parties to this Agreement. The Seller shall provide 10 days’ prior notice of any merger, consolidation or succession pursuant to this Section 3.03 to the Agent. 
 (b)     The Seller hereby agrees that during the term of this Agreement it shall not amend Articles Third, Fourth,
Fifth, Twelfth or Fourteenth of its Restated Certificate of Incorporation without obtaining the prior written consent of the Agent or without obtaining the prior written consent of a majority of the Outstanding Amount of the Controlling Class as of
the close of the preceding Distribution Date and the prior written consent of the Holders of Certificates evidencing not less than a majority of the ownership interest in the Trust as of the close of the preceding Distribution Date. 
 SECTION 3.04         Limitation on Liability of Seller and
Others.    The Seller and any director or officer or employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind prima facie properly executed and submitted by any
Person respecting any matters arising under this Agreement. The Seller shall not be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its obligations as Seller of the Receivables under this Agreement
and that in its opinion may involve it in any expense or liability. 
  

 - 6 - 

 SECTION 3.05         Seller May Own
Securities.    Each of the Seller and any Person controlling, controlled by or under common control with the Seller may in its individual or any other capacity become the owner or pledgee of Securities with the same rights as
it would have if it were not the Seller or an Affiliate thereof except as otherwise specifically provided herein. Except as otherwise provided herein, Securities so owned by or pledged to the Seller or such controlling or commonly controlled Person
shall have an equal and proportionate benefit under the provisions of this Agreement, without preference, priority or distinction as among all of such Securities. 
 ARTICLE IV 
 TERMINATION 
 SECTION 4.01         Optional Purchase of All Receivables.    On the
last day of any Monthly Period as of which the Aggregate Receivables Balance is 10% or less of the Aggregate Starting Receivables Balance, the Servicer shall have the option to purchase the assets of the Owner Trust Estate other than the Designated
Accounts and the Certificate Distribution Account. If the Servicer’s long term unsecured debt rating from Moody’s is equal to or higher than Baa3 at the time that it seeks to exercise such option, then to exercise such option, the Servicer
shall deposit in the Collection Account an amount equal to the aggregate Administrative Purchase Payments for the Receivables (including Liquidating Receivables), plus the appraised value of any such other property contained in the Owner Trust
Estate (less the Liquidation Expenses to be incurred in connection with the recovery thereof), such value to be determined by an appraiser mutually agreed upon by the Servicer, each Trustee and the Agent. If the Servicer’s long term unsecured
debt rating from Moody’s is less than Baa3 at the time that it seeks to exercise such option, then to exercise such option, the Servicer shall deposit in the Collection Account an amount equal to the appraised value of the Receivables
(including Liquidating Receivables), plus the appraised value of any such other property contained in the Owner Trust Estate (less the Liquidation Expenses to be incurred in connection with the recovery thereof), such values to be determined by an
appraiser mutually agreed upon by the Servicer, each Trustee and the Agent; provided, in all events that such amount (when added to any funds then on deposit in the Designated Accounts) must be at least equal to the aggregate Redemption Price of the
outstanding Notes to be redeemed with such proceeds for, together with all Other Obligations accrued or to accrue and amounts due the Swap Counterparty through, the Distribution Date related to the Monthly Period in which such option is exercised.
Thereupon, the Servicer shall succeed to all interests in and to the Owner Trust Estate (other than the Designated Accounts and the Certificate Distribution Account). 
 SECTION 4.02        Termination. 
 (a)     Following the satisfaction and discharge of the Indenture with respect to the Notes, and the payment in full of the principal and interest on the Notes and the Other Obligations, the
Certificateholders shall succeed to the rights of the Noteholders hereunder and the Owner Trustee shall succeed to the rights of the Indenture Trustee thereafter arising pursuant to this Agreement (subject to the continuing obligations of the
Indenture Trustee set forth in Section 4.4 of the Indenture). 
  

 - 7 - 

 (b)     After payment to each Trustee, the Swap Counterparty, the
Noteholders and the Servicer of all amounts required to be paid under this Agreement, the Interest Rate Swap, the Indenture and the other Basic Documents, any amounts on deposit in the Reserve Account and the Collection Account (after all other
distributions required to be made from such accounts have been made) shall be deposited into the Certificate Distribution Account for distribution to the Certificateholders and any other assets remaining in the Owner Trust Estate shall be
distributed to the Certificate Distribution Account for distribution to the Certificateholders. 
 (c)
    This Agreement shall terminate when (i) the Certificateholders have succeeded to the rights of the Agent and the Noteholders pursuant to Section 4.02(a) and (ii) amounts on deposit in the Reserve Account
and the Collection Account have been deposited into the Certificate Distribution Account pursuant to Section 4.02(b). 
 ARTICLE V 
 MISCELLANEOUS PROVISIONS 
 SECTION 5.01         Amendment. 
 (a)     This Agreement may be amended by the Seller and the Issuer with the consent of the Indenture Trustee, the Certificateholders and the Agent, but without the consent of any of the other
Financial Parties. 
 (b)     [Reserved]. 
 (c)     Prior to the execution of any such amendment or consent, the Indenture Trustee shall furnish written
notification to the Agent of the substance of such amendment or consent as provided to the Indenture Trustee. 
 (d)
    Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to each Certificateholder, and the Indenture Trustee shall
furnish written notification to each Noteholder of the substance of such amendment or consent as provided to the Indenture Trustee. 
 (e)     [Reserved]. 
 (f)     Prior to the execution of any amendment to
this Agreement, each Trustee and the Agent shall be entitled to receive and rely upon the Opinion of Counsel referred to in Section 5.02(i) and an Opinion of Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and that all conditions precedent to the execution and delivery of such amendment have been satisfied. Each Trustee may, but shall not be obligated to, enter into any such amendment which affects such Trustee’s own rights,
duties or immunities under this Agreement or otherwise. 
 (g)     Notwithstanding any other provision of
this Agreement, if the consent of the Swap Counterparty is required pursuant to the Swap Counterparty Rights Agreement to amend this Agreement, any such purported amendment shall be null and void ab initio unless the Swap Counterparty consents in
writing to such amendment. 
  

 - 8 - 

 SECTION 5.02         Protection of Title to
Owner Trust Estate. 
 (a)     The Seller shall prepare and file such financing statements and cause
to be prepared and filed such continuation and other statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of the Issuer under this Agreement in the Receivables, the Related
Security and other property conveyed hereby (to the extent such property constitutes Code Collateral) and the Indenture Trustee’s security interest in the Receivables, the Related Security and other property conveyed hereby (to the extent such
property constitutes Code Collateral) and hereby authorizes the Issuer (and the Indenture Trustee) to file such financing statements or continuation statements relating to all or any part thereof. The Seller shall deliver (or cause to be delivered)
to the Owner Trustee, the Indenture Trustee and the Agent file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing. 
 (b)     The Seller shall not change its name, identity or corporate structure in any manner that would, could or
might make any financing statement or continuation statement filed in accordance with paragraph (a) above seriously misleading within the meaning of Section 9-506 of the UCC, unless it shall have given each Trustee and the Agent at least
60 days prior written notice thereof and shall file such financing statements or amendments as may be necessary to continue the perfection of the Issuer’s security interest in the Receivables, the Related Security and other property conveyed
hereby (to the extent such property constitutes Code Collateral). 
 (c)     The Seller shall give each
Trustee and the Agent at least 60 days prior written notice of any change in its jurisdiction of formation and shall file such financing statements or amendments as may be necessary to continue the perfection of the Issuer’s security interest
in the Designated Receivables and the Related Security and other property conveyed hereunder. The Seller shall at all times maintain its jurisdiction of formation within the United States of America. 
 (d)     The Seller will cause the Servicer to maintain accounts and records as to each Receivable accurately and in
sufficient detail to permit (i) the reader thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and extensions of any scheduled payments made not less than
45 days prior thereto, and (ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the amounts from time to time deposited in the Collection Account in respect of such Receivable. 
 (e)     The Seller will cause the Servicer to maintain its computer systems so that, from and after the time of sale
under this Agreement of the Receivables to the Issuer, the Servicer’s master computer records (including any back-up archives) that refer to any Receivable indicate clearly that the Receivable is owned by the Issuer and has been pledged by the
Issuer to the Indenture Trustee. Indication of the Issuer’s ownership of a Receivable shall be deleted from or modified on the Servicer’s computer systems when, and only when, the Receivable shall have been paid in full, repurchased by the
Seller, purchased by the Servicer or become a Liquidating 

  

 - 9 - 

 
Receivable as to which the Servicer has discontinued pursuing remedies with respect to collection in accordance with its customary servicing procedures.

 (f)     If at any time the Seller proposes to sell, grant a security interest in, or otherwise
transfer any interest in truck, truck chassis, bus and trailer receivables to any prospective purchaser, lender or other transferee, the Seller shall give to such prospective purchaser, lender or other transferee computer tapes, records or
print-outs (including any restored from back-up archives) that, if they refer in any manner whatsoever to any Receivable, indicate clearly that such Receivable has been sold and is owned by the Issuer and has been pledged by the Issuer to the
Indenture Trustee unless such Receivable has been paid in full, repurchased by the Seller or purchased by the Servicer. 
 (g)     The Seller will cause the Servicer to permit each Trustee and their respective agents at any time to inspect, audit and make copies of and abstracts from the Servicer’s records regarding any Receivables then
or previously included in the Owner Trust Estate. 
 (h)     The Seller will cause the Servicer to
furnish to each Trustee at any time upon request a list of all Receivables then held as part of the Owner Trust Estate, together with a reconciliation of such list to the Schedule of Retail Notes and to each of the Servicer’s Certificates
furnished before such request indicating removal of Receivables from the Owner Trust Estate. Upon request, the Servicer shall furnish a copy of any such list to the Seller. Each Trustee and the Seller shall hold any such list and the Schedule of
Retail Notes for examination by interested parties during normal business hours at their respective offices located at the addresses set forth in Section 5.03. 
 (i)     The Seller will deliver to each Trustee and the Agent promptly after the execution and delivery of this Agreement and of each amendment thereto, an Opinion of Counsel
either (a) stating that, in the opinion of such counsel, all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the Issuer and the Indenture Trustee in
the Receivables and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given, or (b) stating that, in the opinion of such counsel, no such action is necessary to preserve and protect such
interest. 
 (j)     Except for the conveyances hereunder and as contemplated by the Further Transfer and
Servicing Agreements, the Seller shall not sell, pledge, assign or transfer the Designated Receivables or the Related Security to any other Person, or grant, create, incur, assume or suffer to exist any Lien (except any Permitted Lien) on any
interest therein, and the Seller shall defend the right, title and interest of the Trust in, to and under the Designated Receivables and Related Security against all claims of third parties claiming through or under the Seller. 
 SECTION 5.03         Notices.   All demands, notices and communications upon or
to the Seller, either Trustee or the Agent under this Agreement shall be delivered as specified in Appendix B hereto. 
  

 - 10 - 

 SECTION 5.04         Governing Law.
    All questions concerning the construction, validity and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Illinois, without giving effect to
any choice of law or conflict provision or rule (whether of the State of Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois; provided, however, that
(i) the duties and immunities of the Owner Trustee hereunder shall be governed by the laws of the State of Delaware and (ii) the rights and remedies of the Indenture Trustee shall be governed by the laws of the State of New York.

 SECTION 5.05         Severability of Provisions.   If any one or
more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Securities or the rights of the holders thereof. 
 SECTION 5.06         [Reserved]. 
 SECTION 5.07         Assignment; Third-Party Beneficiaries.   The Seller may not
assign any of its rights or obligations hereunder or any interest herein without the prior written consent of the Agent. The Issuer may not assign any of its rights or obligations hereunder or any interest herein without the prior written consent of
NFRRC and the Agent; provided, however, that each of the transactions contemplated in Section 5.10 may be consummated without the further consent of any Person. The Seller and the Issuer agree that the Indenture Trustee is
an express third-party beneficiary with respect to this Agreement and, as such, shall have the right to enforce this Agreement and to exercise directly all of the Issuer’s rights and remedies under this Agreement (including, without limitation,
the right to give or withhold any consents or approvals of the Issuer to be given or withheld hereunder). The Swap Counterparty shall be a third-party beneficiary to this Agreement only to the extent that it has rights specified herein or rights
with respect to this Agreement specified in the Swap Counterparty Rights Agreement. Except as otherwise provided in the Swap Counterparty Rights Agreement or in this Article V, no other Person shall have any right or obligation hereunder.

 SECTION 5.08         Separate Counterparts.   This Agreement may
be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 
 SECTION 5.09         Headings and Cross-References.   The various headings in
this Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. 
 SECTION 5.10         Assignment to Indenture Trustee.   The Seller hereby acknowledges and consents to any mortgage, pledge, assignment and grant of a security
interest by the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of the Financial Parties of all right, title and interest of the Issuer in, to and under the Owner Trust Estate and/or the assignment of 

  

 - 11 - 

 
any or all of the Issuer’s rights and obligations hereunder to the Indenture Trustee and the Financial Parties. 
 SECTION 5.11        No Petition Covenants; Waiver of Claims.  Notwithstanding
any prior termination of this Agreement the Seller shall not, prior to the date which is one year and one day after the final distribution with respect to the Securities, acquiesce, petition or otherwise invoke or cause the Issuer to invoke the
process of any court or government authority for the purpose of commencing or sustaining a case against the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Issuer or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer. 
 SECTION 5.12         Limitation of Liability of the Trustees. 
 (a)    Notwithstanding anything contained herein to the contrary, this Agreement has been acknowledged and accepted by The Bank of New York not in its individual capacity but
solely as Indenture Trustee and in no event shall The Bank of New York have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements
delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer. 
 (b)    Notwithstanding anything contained herein to the contrary, this Agreement has been executed by Deutsche Bank Trust Company Delaware not in its individual capacity but solely in its capacity as Owner Trustee and in
no event shall Deutsche Bank Trust Company Delaware in its individual capacity or, except as expressly provided in the Trust Agreement, as Owner Trustee of the Issuer have any liability for the representations, warranties, covenants, agreements or
other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer. For all purposes of this Agreement, in the
performance of its duties or obligations hereunder, or in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Article VI of
the Trust Agreement. 
 SECTION 5.13        MUTUAL WAIVER OF JURY
TRIAL.  BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX TRANSACTIONS ARE MOST QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN
ARBITRATION RULES), THE PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION, EACH PARTY TO THIS AGREEMENT
HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE BETWEEN OR AMONG ANY OF THE PARTIES HERETO, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT OF, CONNECTED WITH, RELATED OR
INCIDENTAL TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
  

 - 12 - 

 SECTION 5.14         Survival;
Termination.   This Agreement shall create and constitute the continuing obligations of the parties hereto and shall remain in full force and effect until terminated in accordance with Section 4.02; provided,
however, that this Section 5.14 and the rights and remedies with respect to Sections 5.11 and 5.12 shall be continuing and shall survive any termination of this Agreement. 
 SECTION 5.15         Waivers.   No failure or delay on the part of the Issuer
(or the Indenture Trustee or the Agent) in exercising any power, right or remedy under this Agreement or the PA Assignment shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any
other or further exercise thereof or the exercise of any other power, right or remedy. 
 *   *   *   *
  * 
  

 - 13 - 

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

			
	 NAVISTAR FINANCIAL 2007-JPM
 OWNER TRUST

	
	 By:         DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Owner Trustee on behalf
of the Trust

		
	 By:
	 	 /s/ Michele HY Voon

	 Name:
	 	 Michele HY Voon

	 Title:
	 	 Attorney-in-fact

		
	 By:
	 	 /s/ Susan Barstock

	 Name:
	 	 Susan Barstock

	 Title:
	 	 Attorney-in-fact

	
	 NAVISTAR FINANCIAL RETAIL
 RECEIVABLES CORPORATION, as
 Seller

		
	 By:
	 	 /s/ John V. Mulvaney, Sr.

	 Name:
	 	 John V. Mulvaney Sr.

	 Title:
	 	 Vice President, Chief Financial Officer and Treasurer

  

			
	
	 Acknowledged and Accepted:

	
	 THE BANK OF NEW YORK, not in its individual capacity but solely as Indenture Trustee

		
	 By:
	 	 /s/ John Bobko

	 Name:
	 	 John Bobko

	 Title:
	 	 Vice President

			
	 NAVISTAR FINANCIAL CORPORATION,
 as Servicer

		
	 By:
	 	 /s/ John V. Mulvaney, Sr.

	 Name:
	 	 John V. Mulvaney Sr.

	 Title:
	 	 Vice President, Chief Financial
 Officer and Treasurer

  

 - 5 - 

 EXHIBIT A 
 Locations of Schedule of Retail Notes 
 The Schedule of Retail Notes is 
 on file at the offices of: 
  

	 	 1.
	 The Indenture Trustee 

  

	 	 2.
	 The Owner Trustee 

  

	 	 3.
	 Navistar Financial Corporation 

  

	 	 4.
	 Navistar Financial Retail Receivables Corporation 

  

 A-1 

 EXHIBIT B 
 Form of PSA Assignment 
 As of February 16, 2007, for value received, in
accordance with the Pooling Agreement, dated as of February 16, 2007 (the “Pooling Agreement”), between Navistar Financial Retail Receivables Corporation, a Delaware corporation (the “Seller”) and Navistar Financial 2007-JPM
Owner Trust (the “Issuer”), the Seller does hereby sell, assign, transfer and otherwise convey unto the Issuer, without recourse (except as provided in Section 2.06 of the Pooling Agreement), all right, title and interest of
the Seller in, to and under (a) the Retail Notes identified on the Schedule of Retail Notes attached hereto having an aggregate Starting Receivable Balance of $461,819,737.41 and the Related Security with respect to those Retail Notes; and
(b) the Seller’s rights, but not its obligations, under the Purchase Agreement and the PA Assignment acquired by the Seller pursuant to Section 2.01 of the Purchase Agreement with respect to the Receivables. 
 The foregoing sale does not constitute and is not intended to result in any assumption by the Issuer of any obligation of the undersigned
or NFC to the Obligors, Dealers, insurers or any other Person in connection with the Receivables, the agreements with Dealers, any Insurance Policies or any agreement or instrument relating to any of them. 
 This PSA Assignment is made pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained
in the Pooling Agreement and is to be governed by the Pooling Agreement. 
 Capitalized terms used herein and not otherwise
defined shall have the meaning assigned to them in the Pooling Agreement. 
 *   *   *   *   *

  

 App. B-1 

 IN WITNESS WHEREOF, the undersigned has caused this PSA Assignment to be duly executed as
of the day and year first above written. 
  

	
	 NAVISTAR FINANCIAL RETAIL
 RECEIVABLES CORPORATION

	
	 By::
                                        
                                        
             

	 Name:

	 Title:

  

 App. B-2 

 APPENDIX A 
 PART I - DEFINITIONS 
 All terms used in this Appendix shall have the defined meanings set forth in
this Part I when used in the Basic Documents, unless otherwise defined therein. 
 Accountants’ Report: As
defined in Section 3.02 of the Servicing Agreement. 
 Accounting Date:   With respect to a
Distribution Date, the last day of the related Monthly Period, or, with respect to any initial Distribution Date that occurs in the same calendar month as the Closing Date, the close of business on the Closing Date. 
 Act: An Act as specified in Section 11.3(a) of the Indenture. 
 Actual Payment:   With respect to a Distribution Date and to a Receivable, all payments received by the Servicer from or
for the account of the Obligor during the related Monthly Period (and, in the case of the first Distribution Date occurring after the date such Receivable is transferred to the Trust, all payments received by the Servicer from or for the account of
the Obligor on or after the Cutoff Date) except for any Overdue Payments or Supplemental Servicing Fees. 
 Administration
Agreement:   That certain Administration Agreement, dated as of the Closing Date among NFC, as Administrator, the Trust and the Indenture Trustee, as amended, modified and supplemented from time to time. 
 Administrative Purchase Payment:   With respect to a Distribution Date and to an Administrative Receivable purchased as
of the related Accounting Date, a release of all claims for reimbursement of Monthly Advances made on such Administrative Receivable plus a payment equal to the sum of (i) the sum of the Scheduled Payments on such Administrative Receivable due
after the Accounting Date, (ii) the amount of any reimbursements made pursuant to the last sentence of Section 2.14 of the Servicing Agreement with respect to such Administrative Receivable, (iii) all past due Scheduled
Payments with respect to which a Monthly Advance has not been made minus (iv) the Rebate minus (v) any Liquidation Proceeds with respect to such Administrative Receivable to the extent applied on or prior to the Accounting Date that are
not reflected in items (i) through (iii). 
 Administrative Receivable:   As defined in
Section 2.08 of the Servicing Agreement. 
 Administrator:   NFC or any successor Administrator
under the Administration Agreement. 
 Affiliate:   With respect to any specified Person, any other Person
controlling, controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of such
Person, directly or indirectly, whether through the ownership 

  

 App. A-1 

 
of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

 Agency Office: The office of the Issuer maintained pursuant to Section 3.2 of the Indenture.

 Agent: means JPMorgan Chase Bank, N.A., together with its successors and assigns, in its capacity as agent for the
Investors under or with respect to the Note Purchase Agreement. 
 Aggregate Losses: With respect to any calendar
month, the sum of (i) the aggregate of the Receivable Balances of all Receivables newly designated during such calendar month as Liquidating Receivables, plus (ii) the aggregate principal portion of Scheduled Payments due but not received
with respect to all such Receivables prior to the date any such Receivable was designated a Liquidating Receivable minus (iii) Liquidation Proceeds collected during such calendar month with respect to all Liquidating Receivables. 
 Aggregate Note Principal Balance: With respect to the close of a Distribution Date, the sum of the Note Principal Balances for the
Notes. 
 Aggregate Receivables Balance: As of any date, the sum of the Receivables Balances of all outstanding
Receivables (other than Liquidating Receivables). 
 Aggregate Starting Receivables Balance: As of any date of
determination, the aggregate of the Starting Receivable Balances of the Receivables as of the Cutoff Date, which is $461,819,737.41. 
 Annual Percentage Rate or APR: The annual percentage rate specified in the Contract related to such Retail Note. 
 Applicable Trustee: So long as the Aggregate Note Principal Balance is greater than zero and the Indenture has not been discharged in accordance with its terms, the Indenture Trustee, and
thereafter, the Owner Trustee. 
 Assignment: Any PA Assignment or PSA Assignment. 
 Authenticating Agent: The Bank of New York or any successor appointed by the Owner Trustee pursuant to the Trust Agreement.

 Authorized Officer: With respect to the Issuer, any officer or attorney-in-fact of the Owner Trustee who is
authorized to act for the Owner Trustee in matters relating to the Issuer and who is identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture Trustee on the Closing Date (as such list may be modified or
supplemented from time to time thereafter) and, so long as the Administration Agreement is in effect, any Vice President or more senior officer of the Administrator who is authorized to act for the Administrator in matters relating to the Issuer and
to be acted upon by the Administrator pursuant to the Administration Agreement and who is identified on the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on the Closing Date (as such list may be modified or
supplemented from time to time thereafter) and with respect to any other Person, a Vice 

  

 App. A-2 

 
President or more senior officer of such Person who is authorized to act for such Person with respect to such matters. 
 Backup Servicer: As defined in Section 6.06 of the Servicing Agreement. 
 Backup Servicing Agreement: As defined in Section 6.06 of the Servicing Agreement. 
 Basic Documents: The Trust Agreement, the Certificate of Trust, the Purchase Agreement, the PA Assignment, the Pooling Agreement,
the PSA Assignment, the Administration Agreement, the Indenture (including any supplements thereto), the Servicing Agreement, the Schedule of Retail Notes, the Interest Rate Swap, the Swap Counterparty Rights Agreement, the Note Purchase Agreement,
the Fee Letter, the Notes and the other documents and certificates delivered in connection with each of the foregoing from time to time. 
 Basic Servicing Fee: As defined in Section 2.09 of the Servicing Agreement. 
 Basic Servicing Fee Rate: As defined in Section 2.09 of the Servicing Agreement. 
 Benefit
Plan: Any one of (a) an employee benefit plan (as described in Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA, (b) a plan described in Section 4975(e)(1) of the Code or (c) any entity whose
underlying assets include plan assets by reason of a plan’s investment in such entity. 
 Business Day: Any day
other than a Saturday, a Sunday or any other day on which banking institutions in New York, New York or Chicago, Illinois are authorized or required by law to close. 
 Certificate: Any one of the certificates executed by the Issuer and authenticated by or on behalf of the Owner Trustee in substantially the form set forth in Exhibit A to the Trust
Agreement. 
 Certificate Distribution Account: The account designated as such, established and maintained pursuant to
Section 5.1(a) of the Trust Agreement. 
 Certificate of Title: With respect to a Financed Vehicle, the
certificate of title or other evidence of ownership of such Financed Vehicle issued by a registrar of titles in the jurisdiction in which such Financed Vehicle is registered. 
 Certificate of Trust: The certificate of trust of the Issuer substantially in the form of Exhibit B to the Trust Agreement filed for the Trust pursuant to Section 3810(a) of the
Statutory Trust Statute. 
 Certificate Register: The register of Certificates specified in Section 3.4 of
the Trust Agreement. 
 Certificate Registrar: The registrar at any time of the Certificate Register, appointed
pursuant to Section 3.4(a) of the Trust Agreement. 
  

 App. A-3 

 Certificated Security: Shall have, as of any date, the meaning given to such term
under the applicable UCC in effect on such date. 
 Certificateholder: A Person in whose name a Certificate is
registered pursuant to the terms of the Trust Agreement. 
 Closing: As defined in Section 2.03 of the
Purchase Agreement. 
 Closing Date: February 16, 2007. 
 Code: The Internal Revenue Code of 1986, as amended, and Treasury Regulations promulgated thereunder. 
 Code Collateral: Any property a security interest in which may be perfected by filing under the applicable UCC. 
 Collateral: As defined in the granting clause of the Indenture. 
 Collected Amount: With respect to any Distribution Date, the sum of the following amounts with respect to the related Monthly
Period: (i) all Collections received by the Servicer during such Monthly Period, (ii) all Monthly Advances made by the Servicer pursuant to Section 2.14 of the Servicing Agreement, (iii) all Warranty Payments and Administrative
Purchase Payments or the Optional Purchase Proceeds and (iv) the net amount received by the Trust under the Interest Rate Swap since the immediately preceding Distribution Date; less an amount equal to the aggregate of the amounts representing
reimbursement for Outstanding Monthly Advances and Liquidation Expenses pursuant to Section 8.2(b)(i) of the Indenture. 
 Collection Account: The account designated as such, established and maintained pursuant to Section 2.02(a)(i) of the Servicing Agreement. 
 Collections: All amounts received from Obligors or otherwise in respect of Receivables during the related Monthly Period, whether constituting principal or interest, prepayments, proceeds
of sales of Financed Vehicles, Insurance Proceeds, Liquidation Proceeds or otherwise, except for Supplemental Servicing Fees received on the Receivables and the Related Security. 
 Conduit Investor: Jupiter Securitization Company LLC, a Delaware limited liability company, and Falcon Asset Securitization
Company LLC, a Delaware limited liability company, collectively together with their respective successors and assigns under or with respect to the Note Purchase Agreement. 
 Contract: With respect to a Retail Note, the related contract(s) or other agreement(s) with the related Obligor which set forth the terms of such Retail Note. 
 Contractual Obligation: As to any Person, any provision of any security issued by such Person or any agreement, instrument or
other undertaking to which such Person is a party or by which it or any of its property is bound. 
  

 App. A-4 

 Controlling Class: (a) So long as any Notes are outstanding, the Notes and
(b) if the Notes are no longer outstanding, the Certificates. 
 Corporate Trust Office: With respect to the
Indenture Trustee or the Owner Trustee, the principal office at which at any particular time the corporate trust business of that Person shall be administered, which office at the Closing Date is located at The Bank of New York, 101 Barclay Street,
New York, New York 10286 with respect to the Indenture Trustee, and at Deutsche Bank Trust Company Delaware, 1011 Centre Road, Suite 200, Wilmington, Delaware 19805, Attention: Corporate Services Division—Trust & Securities Services,
with a copy to Deutsche Bank Trust Company Americas, 60 Wall Street, 26th Floor, Mail Stop NYC60-2606, New York, New York 10005, Attention: Structured Finance Services—Trust & Securities Services with respect to the Owner Trustee.

 Credit Agreement: Amended and Restated Credit Agreement, dated as of July 1, 2005 (as may be amended from time
to time, the “Credit Agreement”), among NFC, Arrendadora Financiera Navistar, S.A. DE C.V., Servicios Financieros Navistar, S.A. DE C.V. and Navistar Comercial, S.A. DE C.V., as borrowers, each of the lenders from time to time 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. 
 Custodian: NFC, as Servicer, or another custodian named from time to time in the Servicing Agreement. 
 Cutoff Date: January 31, 2007. 
 Dealer: (i) a
Person with whom International has a valid dealer sales/maintenance agreement to sell International Vehicles, (ii) a Person with whom NFC has an agreement to extend new or used truck, truck chassis, bus or trailer floor plan financing terms or
(iii) a truck, bus, or trailer equipment manufacturer with whom International has a valid agreement to sell International Vehicles. 
 Dealer Liability: With respect to any Receivable, all rights, claims and actions of Navistar Financial against the Dealer which sold the Financed Vehicle(s) which gave rise to such Receivable and any successor
Dealer for recourse or reimbursement of any losses, costs or expenses arising as a result of a default by the Obligor on such Receivable. 
 Default: Any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default. 
 Delinquency Percentage: With respect to a calendar month, an amount equal to the aggregate Remaining Gross Balance of all outstanding Receivables (other than Liquidating Receivables) which are 61 days or more
past due as of the last day of such calendar month, as determined in accordance with the Servicer’s normal practices, expressed as a percentage of the aggregate Remaining Gross Balance of all outstanding Receivables (other than Liquidating
Receivables) on the last day of such calendar month. 
 Designated Account Property: The Designated Accounts, all
amounts and investments held from time to time in any Designated Account (whether in the form of deposit accounts, 
  

 App. A-5 

 Physical Property, book-entry securities, uncertificated securities or otherwise) including the Reserve
Account Initial Deposit and all proceeds of the foregoing. 
 Designated Accounts:   Collectively, the
Collection Account, the Reserve Account and the Note Distribution Account. 
 Designated Receivables:   As
defined in Section 2.01 of the Purchase Agreement. 
 Determination Date:   The day that is two
Business Days prior to the Distribution Date. 
 Distribution Date:   With respect to a Monthly Period, the
18th day of the next succeeding calendar month or, if such 18th day is not a Business Day, the next succeeding Business Day, commencing March 19, 2007. 
 Dollars or $:   Lawful currency of the United States of America. 
 Early Termination Date:   The termination of the Interest Rate Swap as a result of the occurrence of an event of default or a termination event under such Interest Rate Swap. 
 Eligible Deposit Account:  Either (i) a segregated trust account with the trust department of a depository
institution organized under the laws of the United States of America or any State thereof or the District of Columbia (or any domestic branch of a foreign bank), having a long-term deposit rating of at least Baa3 by Moody’s, having trust powers
and acting as trustee for funds deposited in such account, or (ii) a segregated deposit account with a depository institution organized under the laws of the United States of America or any State thereof (or any domestic branch of a foreign
bank) the long-term deposit obligations of which are rated A3 or higher by Moody’s and the short-term debt obligations of which are rated “A-1” by S&P and “P-1” by Moody’s. 
 Eligible Institution:   A depository institution organized under the laws of the United States of America or any one of
the states thereof or the District of Columbia (or any domestic branch of a foreign bank), (A) which has either (1) a long-term unsecured debt rating of at least “AA-” from S&P and “A2” from Moody’s or
(2) a short-term unsecured debt or certificate of deposit rating of at least “A-1+” from S&P and “P-1” from Moody’s, (B) whose deposits are insured by the FDIC and (C) having a combined capital and surplus
of at least $50,000,000 as set forth in its most recent published annual report of condition. 
 Eligible
Investments:   means any of the following: 
 (i)    Negotiable instruments
or securities represented by instruments in bearer or registered or in book-entry form which evidence (a) obligations fully guaranteed by the United States of America; (b) time deposits in, or bankers acceptances issued by, any depositary
institution or trust company incorporated under the laws of the United States of America or any state thereof and subject to supervision and examination by Federal or state banking or depositary institution authorities; provided,
however, that at the time of investment or contractual commitment to invest therein, the certificates of deposit or short-term deposits, if any, or long-term unsecured debt obligations (other than such obligation whose rating is based on
collateral or on the credit of a Person other than such 

  

 App. A-6 

 
institution or trust company) of such depositary institution or trust company shall have a credit rating from Moody’s and S&P of at least
“P-l” and “A-1”, respectively, in the case of the certificates of deposit or short-term deposits, or a rating not lower than one of the two highest investment categories granted by Moody’s and by S&P;
(c) certificates of deposit having, at the time of investment or contractual commitment to invest therein, a rating from Moody’s and S&P of at least “P-1” and “A-1”, respectively; or (d) investments in money
market funds rated in the highest investment category or otherwise approved in writing by the applicable rating agencies; 
 (ii)    Demand deposits in any depositary institution or trust company referred to in (i)(b) above; 
 (iii)    Commercial paper (having original or remaining maturities of no more than 30 days) having, at the time of investment or contractual commitment to invest therein, a
credit rating from Moody’s and S&P of at least “P- 1” and “A-1”, respectively; 
 (iv)    Eurodollar time deposits having a credit rating from Moody’s and S&P of at least “P-1” and “A-1”, respectively; 
 (v)    Repurchase agreements involving any of the Eligible Investments described in clauses
(i)(a), (i)(c) and (iv) of this definition so long as the other party to the repurchase agreement has at the time of investment therein, a rating from Moody’s and S&P of at least “P-1” and “A-1”,
respectively; 
 (vi)    Commercial paper master notes having, at the time of the
investment or contractual commitment to invest therein, a credit rating from Moody’s and S&P of at least “P-1” and “A-1”, respectively; and 
 (vii)    Any other investment permitted by the Agent. 
 Eligible Restructured Receivable:  Any Receivable which (i) was amended or restructured for credit reasons at least
12 months prior to the Cutoff Date, (ii) is not owed by an Obligor that is the subject of a bankruptcy or insolvency proceeding and (iii) since its amendment or restructuring, has not been greater than 60 days past due (measured from the
date of any Scheduled Payment). 
 Enhancement Event:  Shall include any of the following events, beginning
on the date when such event occurs and ending on, with respect to clauses (a) and (b) below, the date such event has not occurred for three consecutive calendar months, and, with respect to clause (c) below, the date such event is no
longer continuing: 
 (a) the average of the Delinquency Percentages for the preceding three calendar months exceeds 2.00%;

 (b) the Loss Percentages for the preceding calendar month exceeds 1.50%; or 
 (c) (i) the long-term debt of NFC is rated by neither Moody’s nor S&P and (ii) the long-term debt of NIC is rated by
neither Moody’s nor S&P; or 
  

 App. A-7 

 (d) either (i) Moody’s or S&P has not assigned a long-term debt rating to
NFC, or if NFC is not then rated, NIC, or (ii) if NFC or NIC has a long-term debt rating by either Moody’s or S&P, then the long-term debt ratings assigned to NFC, or if NFC is not then rated, NIC, are below B1 and B+, respectively.

 Equal Payment Fully Amortizing Receivable:   Has the meaning specified in  
Section 3.01(a)(iv)   of the Purchase Agreement. 
 ERISA:   The Employee Retirement
Income Security Act of 1974, as amended. 
 Event of Default:   An event described in
Section 5.1 of the Indenture. 
 Exchange Act:   The Securities Exchange Act of 1934, as
amended. 
 Executive Officer:   With respect to any corporation, the Chief Executive Officer, Chief
Operating Officer, Chief Financial Officer, President, Executive Vice President, any Vice President, the Secretary, the Treasurer, Assistant Secretary or Assistant Treasurer of such corporation; and with respect to any partnership, any general
partner thereof. 
 Expenses:   The expenses described in Section 6.9 of the Trust Agreement.

 FDIC:   The Federal Deposit Insurance Corporation or any successor entity thereto. 
 Fee Letter:   Has the meaning specified in the Note Purchase Agreement. 
 Final Scheduled Distribution Date:   The Distribution Date in the month of February 2014. 
 Financed Vehicle:   A new or used medium or heavy duty truck, truck chassis, bus or trailer, together with any
accessions thereto which were financed with the proceeds of the related Receivable securing an Obligor’s indebtedness under a Receivable. A Receivable may be secured by one or more Financed Vehicles. 
 Financial Asset:   The meaning given such term in Revised Article 8. As used herein, the Financial Asset “related
to” a Security Entitlement is the Financial Asset in which the entitlement holder (as defined in Revised Article 8) holding such Security Entitlement has the rights and property interest specified in Revised Article 8. 
 Financial Parties:   The Agent, the Noteholders, the Investors, and, to the extent expressly provided in the Indenture
or any other Basic Document, the Certificateholders and the Swap Counterparty. 
 Full Prepayment:   With
respect to a Distribution Date, that portion of an Actual Payment (other than the Scheduled Payment), which with respect to (i) any Receivable, is sufficient to prepay such Receivable in full (after application of the Scheduled Payment), or
(ii) a Receivable secured by multiple Financed Vehicles, equals the unpaid principal amount of the Retail Note relating to any Financed Vehicle, as determined by the Servicer in accordance with its customary servicing procedures. 
  

 App. A-8 

 Funded Amount:   Has the meaning specified in the Note Purchase
Agreement. 
 Further Transfer and Servicing Agreements:  The Pooling Agreement, including the PSA
Assignment, the Servicing Agreement, the Trust Agreement and the Indenture. 
 GAAP:  Generally accepted
accounting principles in the United States of America in effect from time to time. 
 Governmental
Authority:  Any nation or government, any state, province or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 Grant:  To mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer,
create, and grant a lien upon and a security interest in and right of set-off against, deposit, set over and confirm pursuant to the Indenture. A Grant of the Collateral or of any other agreement or instrument shall include all rights, powers and
options (but none of the obligations) of the Granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for lease payments and principal and interest payments in respect of, the Collateral
and all other moneys payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the Granting party or otherwise and generally
to do and receive anything that the Granting party is or may be entitled to do or receive thereunder or with respect thereto. 
 Gross Balance:   As of any date of determination, with respect to a Receivable, the unpaid principal balance of such Retail Note as of such date plus, with respect to a Retail Note classified as a “finance
charge-included contract”, the finance charges included in the payments due with respect to such Retail Note on or after such date. 
 Guaranty:   With respect to any Receivable, a personal or commercial guaranty of an Obligor’s performance with respect to such Receivable. 
 Holder:   (i) With respect to the Notes, the Person in whose name a Note is registered on the Note Register and
(ii) with respect to the Certificates, the Person in whose name a Certificate is registered on the Certificate Register. 
 Indemnified Parties:   The Persons specified in Section 6.9 of the Trust Agreement. 
 Indenture:   The Indenture, between the Issuer and the Indenture Trustee, dated as of the Closing Date, as the same may from time to time be amended, modified or otherwise supplemented. 
 Indenture Trustee:   The Bank of New York, a New York banking corporation, not in its individual capacity but solely as
trustee under the Indenture, or any successor indenture trustee under the Indenture. 
 Independent:   When
used with respect to any specified Person, that the Person (i) is in fact independent of the Issuer, any other obligor upon the Notes, the Seller and any Affiliate of any of 

  

 App. A-9 

 
the foregoing Persons, (ii) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other
obligor, the Seller or any Affiliate of any of the foregoing Persons and (iii) is not connected with the Issuer, any such other obligor, the Seller or any Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter,
trustee, partner, director or person performing similar functions. 
 Independent Certificate:   A
certificate or opinion to be delivered to the Indenture Trustee under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.1 of the Indenture, made by an Independent appraiser or other
expert appointed by an Issuer Order and approved by the Indenture Trustee in the exercise of reasonable care, and such opinion or certificate shall state that the signer has read the definition of “Independent” and that the signer is
Independent within the meaning thereof. 
 Insolvency Event:   With respect to a specified Person,
(i) the entry of a decree or order for relief by a court, agency or supervisory authority having jurisdiction in the premises or the entry of a decree or order by any such court, agency or supervisory authority for the appointment of a
conservator, receiver or liquidator for such Person, in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of such Person’s affairs, and the continuance of any
such decree or order unstayed and in effect for a period of 60 consecutive days; (ii) the consent by such Person to the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and
liabilities or similar proceedings of or relating to such Person or of or relating to substantially all of such Person’s property, or (iii) such Person shall admit in writing its inability to pay its debts generally as they become due,
file a petition to take advantage of any applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations. 
 Insolvency Laws:   The Bankruptcy Code and any other applicable federal or state bankruptcy, insolvency or other similar
law. 
 Insurance Policy:   With respect to any Receivable, an insurance policy covering physical damage,
credit life, credit disability, theft, mechanical breakdown or similar event to each Financed Vehicle securing such Receivable. 
 Insurance Proceeds: With respect to any Receivables, the proceeds of any Insurance Policy. 
 Interest
Rate Swap:   The interest rate swap agreement, including all schedules, confirmations and credit support annexes related thereto, between the Issuer and the Swap Counterparty, in effect on the Closing Date, as the same may be amended,
supplemented, renewed, extended or replaced from time to time. 
 Interested Parties:   The Issuer, the
Investors, each Financial Party and each other party identified or described in the Purchase Agreement or the Further Transfer and Servicing Agreements as having an interest as owner, trustee or secured party with respect to the Purchased Property.

  

 App. A-10 

 International:   International Truck and Engine Corporation, a Delaware
corporation, and its successors and assigns. 
 International Purchase Obligations:   Certain obligations of
International, subject to limitations, to purchase Financed Vehicles securing Liquidating Receivables pursuant to Article VI and other provisions of the Master Intercompany Agreement by and between Navistar Financial and International dated
as of April 26, 1993, as such Master Intercompany Agreement may be amended, supplemented, restated or otherwise modified. 
 International Vehicle:   Any truck, truck chassis, bus or trailer produced by or for International or its Subsidiaries or sold by International or its Subsidiaries to Dealers, including any body parts or accessions attached
thereto. 
 Investment Company Act:   The Investment Company Act of 1940, as amended. 
 Investment Earnings:   Investment earnings on funds deposited in the Designated Accounts, net of losses and investment
expenses, during the applicable Monthly Period. 
 Investors:  Has the meaning specified in the Note
Purchase Agreement. 
 Issuer:   The party named as such in the Pooling Agreement and the Indenture until a
successor replaces it and, thereafter, means the successor and, for all purposes of any provision contained therein and required by the TIA, each other obligor on the Notes. 
 Issuer Documents:   As defined in the Recitals of the Administration Agreement. 
 Issuer Order or Issuer Request:   A written order or request signed in the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture Trustee. 
 Lien:   Any security interest, lien, charge, pledge, equity or encumbrance of any kind. 
 Liquidating Receivable:   A Receivable (i) as to which the Servicer (a) has reasonably determined, in
accordance with its customary servicing procedures, that eventual payment of amounts owing on such Receivable is unlikely, or (b) has repossessed the Financed Vehicle or all Financed Vehicles securing the Receivable or (ii) as to which any
related Scheduled Payment is at least 210 days overdue. 
 Liquidation Expenses:   With respect to a
Liquidating Receivable, an amount not to exceed $750 (or such greater amount as the Servicer determines necessary in accordance with its customary procedures to refurbish and dispose of a repossessed Financed Vehicle) as an allowance for amounts
charged to the account of the Obligor, in keeping with the Servicer’s customary procedures, for repossession, refurbishment and disposition of the Financed Vehicle including out-of-pocket costs related to the liquidation. 
 Liquidation Proceeds:   With respect to a Liquidating Receivable, all amounts realized with respect to such Receivable,
including the benefits of any Insurance Proceeds, proceeds from any Dealer Liability, proceeds from any International Purchase Obligations and proceeds from 
  

 App. A-11 

 any Guaranties, net of amounts that are required to be refunded to the Obligor on such
Receivable. 
 London Business Day:   Any day on which dealings in deposits in United States Dollars are
transacted in the London bank market. 
 Loss Percentage:  With respect to any calendar month, the product
(expressed as a percentage) of (a) twelve and (b) a fraction, the numerator of which is equal to the sum of the Aggregate Losses plus Liquidation Proceeds for each of the calendar months which are the fifth, fourth and third calendar
months preceding such calendar month, minus the sum of the Liquidation Proceeds for the Monthly Periods which are the first, second and third calendar months preceding such calendar month, and the denominator of which is the sum of the Remaining
Gross Balances of all outstanding Receivables as of the last day of each of the sixth, fifth and fourth calendar months preceding such calendar month. 
 Material Adverse Effect:   With respect to a Person, a material adverse effect on (a) the ability of such Person to perform its obligations under any of the Basic Documents or (b) the
validity or enforceability of any of the Basic Documents or the rights or remedies of any other Person thereunder. 
 Materiality Opinion:   A written opinion of Kirkland & Ellis LLP or another nationally recognized law firm experienced in securitization matters reasonably acceptable to the Swap Counterparty, addressed to the Swap
Counterparty and in form and substance reasonably satisfactory to the Swap Counterparty. 
 Minimum Servicing
Standards:   The standards set forth in Appendix A of the Servicing Agreement. 
 Monthly
Advance:   As defined in Section 2.14 of the Servicing Agreement. 
 Monthly
Period:  With respect to a Determination Date and a Record Date, the calendar month preceding the month in which such date occurs. With respect to an Accounting Date, the calendar month in which such Accounting Date occurs. With
respect to a Distribution Date, the calendar month preceding the month in which such Distribution Date occurs except that the Monthly Period relating to the first Distribution Date shall be the period from the Cutoff Date to the last day of the
calendar month immediately preceding the first Distribution Date. 
 Monthly Remittance Conditions:   As
defined in Section 2.12 of the Servicing Agreement. 
 Moody’s:   Moody’s Investors
Service, Inc. or its successor. 
 Navistar Financial or NFC:   Navistar Financial Corporation, a Delaware
corporation, and its successors and assigns. 
 New York UCC:   The UCC as in effect in the State of New
York. 
 NFRRC:   Navistar Financial Retail Receivables Corporation, a Delaware corporation, and its
successors and assigns. 
  

 App. A-12 

 NIC:  Navistar International Corporation, a Delaware corporation, and
its successors and assigns. 
 Non-Fleet Obligor:   An Obligor who operates fewer than five vehicles.

 Note Distribution Account:   The account designated as such, established and maintained pursuant to
Section 2.02(a)(ii) of the Servicing Agreement. 
 Note Pool Factor:   With respect to the Notes
and any Distribution Date, a seven-digit decimal figure computed by the Servicer which is equal to the Note Principal Balance for the Notes as of the close of such Distribution Date divided by the initial Note Principal Balance for the Notes.

 Note Principal Balance:   With respect to the Notes, the Funded Amount of the Notes. 
 Note Purchase Agreement:   The Note Purchase Agreement, dated as of the Closing Date, among the Conduit Investor, the
Agent, the Servicer and the Seller with respect to the sale of the Notes, as amended, supplemented and otherwise modified from time to time. 
 Note Register:   The register of the Notes maintained pursuant to Section 2.4(a) of the Indenture. 
 Note Registrar:   The registrar at any time of the Note Register, appointed pursuant to Section 2.4 of the Indenture. 
 Noteholders’ Interest Distributable Amount:    Has the meaning specified in the Note Purchase Agreement.

 Noteholders:   Holders of record of the Notes pursuant to the Indenture. 
 Notes:   The Floating Rate Asset Backed Notes in the maximum aggregate principal amount of $431,801,454.48 issued
pursuant to the Indenture. 
 Notice of Default:   As defined in Section 5.1(d) of the
Indenture. 
 Obligor:   With respect to any Receivable, the purchaser or any co-purchaser of the related
Financed Vehicle or Financed Vehicles or any other Person, other than the maker of a Guaranty, who owes payments under such Receivable. 
 Officer’s Certificate:   A certificate signed by any Authorized Officer of the Issuer, under the circumstances described in, and otherwise complying with, the applicable requirements of
Section 11.1 of the Indenture, and delivered to the Indenture Trustee. Unless otherwise specified, any reference in the Indenture to an officer’s certificate shall be to an Officer’s Certificate of any Authorized Officer of the
Issuer or the Administrator on behalf of the Issuer. Where an Officer’s Certificate is required to be delivered by any other Person, such certificate shall be signed by any Authorized Officer of such Person. 
  

 App. A-13 

 Opinion of Counsel:   A written opinion of counsel, who may, except as
otherwise expressly provided, be an employee of the Seller or the Servicer. In addition, for purposes of the Indenture: (i) such counsel shall be satisfactory to the Indenture Trustee; (ii) the opinion shall be addressed to the Indenture
Trustee as Indenture Trustee and (iii) the opinion shall comply with any applicable requirements of Section 11.1 of the Indenture and shall be in form and substance satisfactory to the Indenture Trustee. 
 Optional Purchase Proceeds:   The amount specified in the second or third sentence, as applicable, of
Section 4.01 of the Pooling Agreement. 
 Other Obligations:   Has the meaning specified in the
Note Purchase Agreement. 
 Outstanding:   With respect to the Notes, as of the date of determination, all
Notes theretofore authenticated and delivered under the Indenture except: 
 (i)        Notes theretofore canceled by the Indenture Trustee or delivered to the Indenture Trustee for cancellation; 
 (ii)       Notes or portions thereof the payment for which money in the necessary
amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the Holders of such Notes; provided, however, that if such Notes are to be redeemed, notice of such redemption has been duly given
pursuant to the Indenture or provision therefor, satisfactory to the Indenture Trustee, has been made; and 
 (iii)      Notes in exchange for or in lieu of other Notes which have been authenticated and delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is presented that any such
Notes are held by a protected purchaser; 
 provided, however, that in determining whether the Holders of the requisite
Outstanding Amount of the Controlling Class have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any other obligor upon the Notes, the Seller or any
Affiliate of any of the foregoing Persons shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice,
consent or waiver, only Notes that the Indenture Trustee knows to be so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgor’s right so to act with respect to such Notes and that the pledgee is not the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons. 
 Outstanding Amount:   As of any date, the aggregate Funded Amount of all Notes Outstanding at such date. 
 Outstanding Monthly Advances:   As of an Accounting Date with respect to a Receivable, the sum of all Monthly Advances
made as of or prior to such Accounting Date minus all payments or collections as of or prior to such Accounting Date which are specified in Section 2.14 of the Servicing Agreement as reducing Outstanding Monthly Advances with respect to
such Receivable. 
  

 App. A-14 

 Overdue Payment:  With respect to a Distribution Date and to a
Receivable, all payments received during the related Monthly Period in excess of any Supplemental Servicing Fees, to the extent of the Outstanding Monthly Advances relating to such Receivable. 
 Owner:   For purposes of the Purchase Agreement, the Pooling Agreement and the Servicing Agreement, the
“Owner” of a Receivable means (i) NFRRC until the execution and delivery of the Further Transfer and Servicing Agreements and (ii) thereafter, the Issuer; provided, that NFC or NFRRC, as applicable, shall be the “Owner”
of any Receivable from and after the time that such Person shall acquire such Receivable, whether pursuant to Section 5.04 of the Purchase Agreement, Section 2.08 of the Servicing Agreement, any other provision of the Further
Transfer and Servicing Agreements or otherwise. 
 Owner Trust Estate:  All right, title and interest of the
Issuer in and to the property and rights assigned to the Issuer pursuant to Article II of the Pooling Agreement, all funds on deposit from time to time in the Collection Account, the Reserve Account, the Note Distribution Account and the
Certificate Distribution Account, the Interest Rate Swap and all other property of the Issuer from time to time, including any rights of the Issuer pursuant to the Pooling Agreement, the Servicing Agreement and the Administration Agreement.

 Owner Trustee:   Deutsche Bank Trust Company Delaware, not in its individual capacity but solely as Owner
Trustee under the Trust Agreement, or any successor trustee under the Trust Agreement. 
 PA Assignment:  
As defined in Section 2.01 of the Purchase Agreement. 
 Partial Prepayment:   With respect to a
Distribution Date and to any Receivable, the portion of an Actual Payment in excess of the Scheduled Payment which equals one or more future Scheduled Payments but does not constitute a Full Prepayment and results in a Rebate in accordance with the
Servicer’s customary procedures. 
 Paying Agent:   (i) With respect to the Indenture, the
Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 of the Indenture and is authorized by the Issuer to make the payments to and distributions from the Collection
Account and the Note Distribution Account, including payment of principal of or interest on the Notes on behalf of the Issuer and (ii) with respect to the Trust Agreement, any paying agent or co-paying agent appointed pursuant to
Section 3.9 of the Trust Agreement that meets the eligibility standards for the Owner Trustee specified in Section 6.13 of the Trust Agreement, and initially The Bank of New York. 
 Permitted Liens: 
 With respect to any Collateral, the interests of the parties under the Basic Documents. 
 With respect to any Financed Vehicle: 
 (1)    any liens on the Financed
Vehicle for taxes, assessments, levies, fees and other government and similar charges payable by an Obligor but not yet due and payable or the amount or validity of which is being contested; 
  

 App. A-15 

 (2)    any liens of mechanics, suppliers, vendors,
materialmen, laborers, employees, repairmen and other like liens arising in the ordinary course of business on the Financed Vehicle related thereto securing obligations of the Obligor which are not due and payable or the amount or validity of which
is being contested; 
 (3)    liens on the Financed Vehicle related thereto arising out
of any judgment or award or by operation of law, in any such case as a result of an act or omission by the related Obligor; 
 (4)    liens which may exist in accessions to the Financed Vehicles not financed by the Receivables. 
 Person:   Any legal person, including any individual, corporation, partnership, limited liability company, association, joint-stock company, trust, unincorporated organization, governmental entity or
other entity of similar nature. 
 Physical Property:   Bankers’ acceptances, commercial paper,
negotiable certificates of deposit and other obligations that constitute “instruments” within the meaning of Section 9-102(a)(47) of the UCC and are susceptible of physical delivery. 
 Plan:   With respect to a Person, at a particular time, any employee benefit plan which is covered by ERISA and in
respect of which such Person or a Commonly Controlled Entity with respect to such Person is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA. 
 Pooling Agreement:   The Pooling Agreement, dated as of the Closing Date,
between NFRRC and the Issuer, as amended, modified and supplemented from time to time. 
 Predecessor
Note:   With respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered
under Section 2.5 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note. 
 Prepayment:   With respect to a Distribution Date and to a Receivable, the portion of an Actual Payment in excess of the Scheduled Payment. 
 Principal Distribution Amount:   On any Distribution Date, an amount equal to the excess, if any, of (a) the Outstanding Amount of the Notes as of such Distribution
Date (before giving effect to any payments of principal made on the Notes on such Distribution Date), over (b) the excess, if any, of (1) the Aggregate Receivables Balance as of the close of business on the last day of the
preceding Monthly Period over (2) the Target Overcollateralization Amount for such Distribution Date; provided, however, that the Principal Distribution Amount for any Distribution Date shall not exceed the Outstanding Amount of
the Notes on such Distribution Date; and provided further, that notwithstanding the foregoing, on the Final Scheduled Distribution Date for the Notes (and on any Distribution Date thereafter), on and after the date the Notes have been declared due
and payable following an Event of Default until such acceleration has been rescinded, and on any Distribution Date on and after the occurrence of a Trigger Event until such Trigger Event has been waived or cured, the Principal Distribution

  

 App. A-16 

 Amount shall not be less than the amount that is necessary to reduce the Outstanding Amount of the Notes
to zero. 
 Principal Payment Amount:  With respect to any Distribution Date, an amount equal to the lesser
of (a) the amount available to pay the principal on the Notes on such Distribution Date and (b) the Principal Distribution Amount for such Distribution Date. 
 Proceeding:   Any suit in equity, action at law or other judicial or administrative proceeding. 
 Program:   As defined in Section 3.02 of the Servicing Agreement. 
 PSA Assignment:   As defined in Section 2.01 of the Pooling Agreement. 
 Purchase Agreement:   The Purchase Agreement, dated as of the Closing Date, between NFC and NFRRC, as amended and supplemented from time to time. 
 Purchase Date:   As defined in Section 2.01 of the Purchase Agreement. 
 Purchase Price:   As defined in Section 2.02 of the Purchase Agreement. 
 Purchased Property:   As of any date, means all of the Designated Receivables and the Related Security transferred by NFC to NFRRC pursuant to Section 2.01 of the Purchase Agreement as of
such date. 
 Rebate:   With respect to a given date and to a Receivable, the rebate under such Receivable
that is or would be payable to the Obligor for unearned finance charges or any other charges that are or would be subject to a rebate to the Obligor upon the payment of a Partial Prepayment or a Full Prepayment. 
 Receivable:   Each Retail Note appearing on the Schedule of Retail Notes including, for the avoidance of doubt, each
Designated Receivable. 
 Receivable Balance:   As of an Accounting Date, with respect to any Receivable,
the Starting Receivable Balance thereof minus the sum of the following amounts, in each case computed in accordance with the actuarial method: (i) that portion of all Scheduled Payments allocated to principal due on or after the Cutoff Date and
on or prior to the Accounting Date, (ii) that portion of all Warranty Payments or Administrative Purchase Payments allocated to principal, (iii) that portion of all Prepayments allocated to principal, and (iv) that portion of the
following received and allocated to principal by the Servicer: benefits of any proceeds from any Insurance Policies, Liquidation Proceeds, proceeds from any Dealer Liability, proceeds from any International Purchase Obligations and proceeds from any
Guaranties. 
 Receivables File:   As defined in Section 4.01 of the Servicing Agreement.

 Record Date:   (i) With respect to the Notes and with respect to any Distribution Date, the last day
of the preceding Monthly Period; and (ii) with respect to the Certificates and with respect to any Distribution Date, the last day of the preceding Monthly Period. 
  

 App. A-17 

 Redemption Date:  The Distribution Date specified as such by the
Servicer or the Issuer as described in Sections 10.1 and 10.2 of the Indenture. 
 Redemption
Price:  An amount equal to the aggregate of the Outstanding Amount of such Notes, together with all accrued and unpaid interest thereon as of the Redemption Date. 
 Registered Holder:  The Person in whose name a Note is registered on the Note Register on the applicable Record Date. 
 Related Security:  With respect to a Receivable, the right, title and interest of NFC, the Seller or any subsequent
owner or assignee in and to the following assets: 
  

	 	 (a)
	 all amounts due on and under such Receivable on and after the Cutoff Date and the fully executed original of such Receivable and the related Contracts;

  

	 	 (b)
	 the security interests in the Financed Vehicles granted by Obligors pursuant to such Retail Note and, to the extent permitted by law, in any accessions thereto
which are financed by such Retail Note and, where permitted by law, the original Certificate of Title and otherwise such documents, if any, that NFC keeps on file in accordance with its customary procedures indicating that the related Financed
Vehicle is owned by the Obligor and subject to a security interest in favor of NFC (or its assigns); 

  

	 	 (c)
	 any proceeds from any Insurance Policies with respect to such Retail Note and any documents evidencing or related to such Insurance Policy;

  

	 	 (d)
	 any proceeds from Dealer Liability with respect to such Receivable, proceeds from any International Purchase Obligations with respect to such Receivable (subject
to the limitation set forth in Section 5.08 of the Purchase Agreement and Section 2.04 of the Pooling Agreement, as applicable) and proceeds from any Guaranties of such Receivable; 

  

	 	 (e)
	 a copy of the credit application of each Obligor with respect to such Receivable, fully executed by each such Obligor on NFC’s customary form, or on a form
approved by NFC, for such application; and 

  

	 	 (f)
	 any proceeds of the property described in clauses (a) through (e) above. 

 Remaining Gross Balance:  With respect to any Receivable (other than a Liquidating Receivable) and as of an Accounting
Date, the Starting Gross Receivable Balance thereof minus the sum of (i) the portion of all Actual Payments with respect to such Receivable, (ii) any Warranty Payment or Administrative Purchase Payment with respect to any such
Receivable, 

  

 App. A-18 

 
(iii) any Prepayments applied to reduce the Starting Gross Receivable Balance of any such Receivable and (iv) proceeds from any Insurance Policies with
respect to such Receivable, plus for any Receivable not classified by the Servicer as a “finance charge—included contract,” the portion of the payments specified in the preceding clauses (i), (ii), (iii) or (iv) above
allocable in accordance with the actuarial method to finance charges; provided, however, that the Remaining Gross Balance of any Receivable that has been designated a Liquidating Receivable during the related or any prior Monthly Period shall equal
zero. 
 Repurchase Event:  A Repurchase Event described in Section 5.04 of the Purchase
Agreement. 
 Required Deposit Rating:  A rating on short-term unsecured debt obligations of P-1 by
Moody’s and A-1+ by S&P. Any requirement that short-term unsecured debt obligations have the “Required Deposit Rating” means that such short-term unsecured debt obligations have the foregoing required ratings from each of such
rating agencies. 
 Requirement of Law:  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. 
 Reserve Account:  An
account designated as such, established and maintained pursuant to Section 2.02(a)(iv) of the Servicing Agreement. 
 Reserve Account Initial Deposit:  Cash or Eligible Investments having a value of $4,618,197.37, which is equal to 1.00% of the Aggregate Starting Receivables Balance, shall be deposited into the Reserve Account on the
Closing Date pursuant to Section 2.01 of the Pooling Agreement. 
 Reserve Account Deposit
Amount:  With respect to any Distribution Date, an amount equal to the lesser of (i) the excess, if any, of the Specified Reserve Account Balance for such Distribution Date over the amount that would otherwise be on deposit in the
Reserve Account after giving effect to all withdrawals to be made therefrom on or prior to such Distribution Date and (ii) the portion of the Available Amount for such Distribution Date available for deposit into the Reserve Account pursuant to
Section 8.2(c)(v) of the Indenture. 
 Reserve Account Property:  As defined in the Granting Clause of
the Indenture. 
 Responsible Officer:  With respect to the Indenture Trustee or the Owner Trustee, any
officer within the Corporate Trust Office of such trustee, including any Vice President, Assistant Vice President, Assistant Secretary, Assistant Treasurer, Trust Officer or any other officer of such Trustee who customarily performs functions
similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall
have direct responsibility for the administration of the Indenture or the Trust, as applicable, and, with respect to the Servicer, the President, any Vice President, Assistant Vice President, Secretary, Assistant Secretary or any other officer or
assistant officer of such Person customarily 

  

 App. A-19 

 
performing functions similar to those performed by any of the above designated officers, and also, with respect to a particular matter, any other officer to
whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
 Retail Note:  A retail loan evidenced by a note and secured by one or more Financed Vehicles, originated or acquired by Navistar Financial or one or more of its Affiliates. 
 Revised Article 8:  Revised Article 8 (1994 Version) (and corresponding amendments to Article 9) as promulgated in 1994
by the National Conference of Commissioners on Uniform State Laws, in the form in which it has been adopted in the State of New York. 
 Schedule of Retail Notes:  The schedule attached to the PA Assignment or the PSA Assignment specifying the Retail Notes then being transferred to the Issuer, as such schedule may be updated by the
Servicer from time to time pursuant to Section 3.04 of the Servicing Agreement. 
 Scheduled
Payment:  With respect to any Receivable, a payment which (i) is in the amount required under the terms of such Receivable in effect as of the Cutoff Date or, in the case of any Receivable secured by more than one Financed
Vehicle, the terms of such Receivable after giving effect to any changes in the terms of such Receivable resulting from a Full Prepayment with respect to any Financed Vehicle related thereto, and (ii) is payable by the Obligor of such
Receivable. When Scheduled Payment is used with reference to a Distribution Date after the date such Receivable is transferred to the Issuer, it means the payment which is due in the related Monthly Period; provided, however, that in
the case of the first Distribution Date, the Scheduled Payment shall include all such payments due from the Obligor on or after the Cutoff Date. 
 Secretary of State:  The Secretary of State of the State of Delaware. 
 Securities:  The Notes and the Certificates. 
 Securities Act:  The United States
Securities Act of 1933, as amended from time to time. 
 Securities Intermediary:  As defined in
Section 2.02(b) of the Servicing Agreement. 
 Security Certificate:  As defined in
Section 8-102(a)(16) of the New York UCC. 
 Security Entitlement:  As defined in
Section 8-102(a)(17) of the New York UCC. 
 Securityholder:  Any of the Noteholders or
Certificateholders. 
 Seller:  As defined in the Recitals to the Pooling Agreement. 
 Servicer:  The Person executing the Servicing Agreement as the Servicer, or its successor in interest pursuant to
Section 7.02 of the Servicing Agreement. 
  

 App. A-20 

 Servicer Default:  Any of the events specified in
Section 7.01 of the Servicing Agreement; provided that any requirement for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied. 
 Servicer’s Certificate:  A certificate, in substantially the form of Appendix B to the Servicing Agreement,
completed by and executed on behalf of the Servicer, in accordance with Section 2.17 of the Servicing Agreement. 
 Servicing Agreement:  The Servicing Agreement, dated as of the Closing Date, by and among NFRRC, the Issuer, the Servicer and the Indenture Trustee, as amended, modified and supplemented from time to time. 
 S&P:  Standard & Poor’s Ratings Services, or its successor. 
 Specified Reserve Account Balance:  With respect to any Distribution Date, the lesser of (a) the Outstanding Amount
of the Notes and (b) 1.00% of the Aggregate Starting Receivables Balance. 
 Starting Gross Receivable
Balance:  With respect to any Receivable as of the Cutoff Date, the Starting Receivable Balance plus, in the case of Receivables classified by the Servicer as “finance charge - included contracts,” the finance charges
included in the Scheduled Payments. 
 Starting Receivable Balance:  With respect to a Receivable that is a
Retail Note, the aggregate principal amount advanced under such Receivable toward the purchase price of the Financed Vehicle or Financed Vehicles, including insurance premiums, service and warranty contracts, federal excise and sales taxes and other
items customarily financed as part of a Retail Note and related costs, less payments received from the Obligor prior to the Cutoff Date with respect to such Receivable allocable on the basis of the actuarial method to principal. 
 State:  Any one of the 50 States of the United States of America or the District of Columbia. 
 Statutory Trust Statute:  Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code §3801 et seq., as the same may
be amended from time to time. 
 Subsequent Transferee:  As defined in the Recitals to the Purchase
Agreement. 
 Subsidiary:  As to any Person, a corporation, partnership or other entity of which shares of
stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers
of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. 
 Supplemental Servicing Fee:  As defined in Section 2.09 of the Servicing Agreement. 
  

 App. A-21 

 Swap Counterparty:  JPMorgan Chase Bank, N.A., as Swap Counterparty
under the Interest Rate Swap, or any successor or replacement Swap Counterparty from time to time under the Interest Rate Swap. 
 Swap Counterparty Rights Agreement:  The Swap Counterparty Rights Agreement, dated as of the Closing Date, among the Swap Counterparty, the Issuer, NFC, as Servicer and Administrator, the Seller, and the Indenture Trustee,
as amended and supplemented from time to time. 
 Target Overcollateralization Amount:  For any Distribution
Date, an amount equal to the excess of (x) the greatest of (a) 4.00% of the Aggregate Starting Receivables Balance, (b) 5.50% of the Aggregate Receivables Balance as of the close of business on the last day of the related Monthly
Period (unless Moody’s has assigned a long-term debt rating to NIC or NFC, during which time such percentage shall be 4.50%) and (c) during the continuance of an Enhancement Event, the greater of (i) 5.00% of the Aggregate Starting
Receivables Balance and (ii) 7.50% of the Aggregate Receivables Balance as of the close of business on the last day of the related Monthly Period (unless Moody’s has assigned a long-term debt rating to NIC or NFC, during which time such
percentage shall be 6.50%) over (y) the amount on deposit in the Reserve Account as of the close of business on such Distribution Date. 
 Tax Opinion:  With respect to any action, an Opinion of Counsel to the effect that, for U.S. federal income tax purposes (a) such action will not cause a taxable event with respect to any
Noteholders or (b) in the case of Section 2.14 of the Indenture, the Notes of the new Series will be characterized as debt. 
 Temporary Notes:  The Notes specified in Section 2.3 of the Indenture. 
 Total Available Amount:  With respect to a Distribution Date, the sum of (i) the Collected Amount for such Distribution Date, (ii) the amount of all cash and other immediately available funds deposited in the
Collection Account from the Reserve Account on the Transfer Date related to such Distribution Date and (iii) the amount of all Investment Earnings deposited into the Collection Account during the related Monthly Period. 
 Total Servicing Fee:  As defined in Section 2.09 of the Servicing Agreement. 
 Transfer Date:  With respect to any Distribution Date, the Business Day immediately preceding such Distribution Date.

 Transfer and Servicing Agreements:  The Purchase Agreement, the Pooling Agreement and the Servicing
Agreement. 
 Treasury Regulations:  The regulations, including proposed or temporary regulations,
promulgated under the Code. References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations. 
  

 App. A-22 

 Trigger Event:  The continuance of any Enhancement Event described in
clause (a), (b) or (c) of such definition, beginning on the date when such event occurs (or circumstance arises) and ending on the date such event is no longer continuing (or no longer exists). 
 Trust:  Navistar Financial 2007-JPM Owner Trust, a Delaware statutory trust, created pursuant to the Trust Agreement.

 Trust Agreement:  The Trust Agreement, dated as of the Closing Date, between the Seller and the Owner
Trustee, as amended and supplemented from time to time; such agreement being the Amended and Restated Trust Agreement contemplated by the Trust Agreement dated January 4, 2007, between the Seller and the Owner Trustee. 
 Trust Indenture Act or TIA:  The Trust Indenture Act of 1939, as amended. 
 Trustees:  The Owner Trustee and the Indenture Trustee. 
 UCC:  The Uniform Commercial Code, as in effect in the relevant jurisdiction. 
 UCC Collateral:  Any property a security interest in which may be perfected by filing under the UCC. 
 Uncertificated Security:  As defined under the applicable UCC as in effect on such date. 
 Unearned Income:  With respect to any Receivable, as of any date of determination, the portion of the Gross Balance
thereof identified as unearned income by the Servicer, in accordance with its customary applicable accounting procedures. 
 Warranty Payment:  With respect to a Distribution Date and to a Warranty Receivable repurchased as of the related Accounting Date, (i) the sum of all remaining Scheduled Payments on such Warranty Receivable due after
the Accounting Date, plus (ii) all past due Scheduled Payments with respect to which a Monthly Advance has not been made, plus (iii) the amount of any reimbursements made pursuant to the last sentence of Section 2.14 of
the Servicing Agreement with respect to such Warranty Receivable plus (iv) all Outstanding Monthly Advances made on such Warranty Receivable minus (v) the Rebate minus (vi) any Liquidation Proceeds with respect to
such Warranty Receivable to the extent applied prior to the Accounting Date that are not reflected in items (i) through (iv). 
 Warranty Purchaser:  Either (i) the Seller pursuant to Section 2.06 of the Pooling Agreement or (ii) NFC pursuant to Section 5.04 of the Purchase Agreement. 
 Warranty Receivable:  A Receivable which the Warranty Purchaser has become obligated to repurchase pursuant to
Section 2.06 of the Pooling Agreement or Section 5.04 of the Purchase Agreement. 
 Weighted
Average APR:  The weighted average (weighted based on outstanding principal amount and remaining term) interest rate on the Receivables transferred to the Trust on the Closing Date. 
  

 App. A-23 

 APPENDIX A 
 PART II - RULES OF CONSTRUCTION 
 (A)    Accounting
Terms.  As used in this Appendix or the Basic Documents, accounting terms which are not defined, and accounting terms partly defined, herein or therein shall have the respective meanings given to them under generally accepted
accounting principles. To the extent that the definitions of accounting terms in this Appendix or the Basic Documents are inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this
Appendix or the Basic Documents will control. 
 (B)    “Hereof,” etc.  The
words “hereof,” “herein” and “hereunder” and words of similar import when used in this Appendix or any Basic Document will refer to this Appendix or such Basic Document as a whole and not to any particular provision of
this Appendix or such Basic Document; and Section, Schedule and Exhibit references contained in this Appendix or any Basic Document are references to Sections, Schedules and Exhibits in or to this Appendix or such Basic Document unless otherwise
specified. The word “or” is not exclusive. 
 (C)    Use of
“related”.  as used in this Appendix and the Basic Documents, with respect to any Distribution Date, the “related Determination Date,” the “related Monthly Period,” and the “related Record Date”
will mean the Determination Date, the Monthly Period, and the Record Date, respectively, immediately preceding such Distribution Date. 
 (D)    Use of “outstanding” etc.  Whenever the term “outstanding Notes,” “outstanding principal amount” and words of similar import are used in this
Appendix or any Basic Document for purposes of determining whether the Noteholders of the requisite outstanding principal amount of the Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any
Basic Document, Notes owned by the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons (it being understood that the Owner Trustee in its individual capacity shall not be considered an Affiliate of
any of the foregoing) shall be disregarded and deemed not to be outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver,
only Notes that the Indenture Trustee knows to be so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as “outstanding” if the pledgee establishes to the satisfaction of the Indenture
Trustee the pledgor’s right so to act with respect to such Notes and that the pledgee is not the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons. 
 (E)    Number and Gender.  Each defined term used in this Appendix or the Basic Documents has a
comparable meaning when used in its plural or singular form. Each gender-specific term used in this Appendix or the Basic Documents has a comparable meaning whether used in a masculine, feminine or gender-neutral form. 
  

 App. A-24 

 (F)     Including.  Whenever the term
“including” (whether or not that term is followed by the phrase “but not limited to” or “without limitation” or words of similar effect) is used in this Appendix or the Basic Documents in connection with a listing of
items within a particular classification, that listing will be interpreted to be illustrative only and will not be interpreted as a limitation on, or exclusive listing of, the items within that classification. 
  

 App. A-25 

 APPENDIX B 
 NOTICE ADDRESSES AND PROCEDURES 
 All requests, demands, directions, consents,
waivers, notices, authorizations and communications provided or permitted under any Basic Document to be made upon, given or furnished to or filed with NFC, the Seller, the Servicer, the Indenture Trustee, the Issuer, the Owner Trustee or the Agent
shall be in writing, personally delivered, sent by facsimile with a copy to follow via first class mail, overnight mail or mailed by certified mail-return receipt requested, and shall be deemed to have been duly given upon receipt: 
  

	 	 1.
	 in the case of NFC, at the following address: 

  

	 	   
	 Navistar Financial Corporation 

	 	   
	 425 N. Martingale Road 

	 	   
	 Suite 1800, Attention: General Counsel 

	 	   
	 Schaumburg, IL 60173 

	 	   
	 Telecopy: (630) 753-4410 

  

	 	 2.
	 in the case of the Seller, at the following address: 

  

	 	   
	 Navistar Financial Retail Receivables Corporation 

	 	   
	 c/o Corporation Trust Company 

	 	   
	 1209 Orange Street 

	 	   
	 Wilmington, Delaware 19801 

  

	 	   
	 with a copy to: 

  

	 	   
	 Navistar Financial Corporation 

	 	   
	 425 N. Martingale Road 

	 	   
	 Suite 1800, Attention: General Counsel 

	 	   
	 Schaumburg, IL 60173 

	 	   
	 Telecopy: (630) 753-4410 

  

	 	 3.
	 in the case of the Servicer, at the following address: 

  

	 	   
	 Navistar Financial Corporation 

	 	   
	 425 N. Martingale Road 

	 	   
	 Suite 1800, Attention: General Counsel 

	 	   
	 Schaumburg, IL 60173 

	 	   
	 Telecopy: (630) 753-4410 

  

	 	 4.
	 in the case of the Indenture Trustee, at its Corporate Trust Office, 

  

	 	 5.
	 in the case of the Issuer, to the Corporate Trust Office of the Owner Trustee, with copies to: 

  

 App. B-1 

	 	   
	 Navistar Financial Retail Receivables Corporation 

	 	   
	 c/o Corporation Trust Company 

	 	   
	 1209 Orange Street 

	 	   
	 Wilmington, Delaware 19801 

  

	 	   
	 with a copy to: 

  

	 	   
	 Navistar Financial Corporation 

	 	   
	 425 N. Martingale Road 

	 	   
	 Suite 1800, Attention: General Counsel 

	 	   
	 Schaumburg, IL 60173 

	 	   
	 Telecopy: (630) 753-4410 

 The Issuer shall promptly transmit any notice received by it from the Noteholders to the Indenture Trustee and the Indenture Trustee shall likewise promptly transmit any notice received by it from the Noteholders to the Issuer. 

 

	 	 6.
	 in the case of the Owner Trustee, at its Corporate Trust Office, with a copy to the Administrator at: 

  

	 	   
	 Navistar Financial Corporation 

	 	   
	 425 N. Martingale Road 

	 	   
	 Suite 1800, Attention: General Counsel 

	 	   
	 Schaumburg, IL 60173 

	 	   
	 Telecopy: (630) 753-4410 

  

	 	 7.
	 in the case of the Agent, at the following address: 

  

	 	   
	 JPMorgan Chase Bank, N.A. 

	 	   
	 10 S. Dearborn Street 

	 	   
	 13th Floor, Chase Tower 

	 	   
	 Chicago, IL 60603 

	 	   
	 Attn: Conduit Securitization Group 

	 	   
	 Email: abs.treasury.dept@jpmorgan.com 

	 	   
	 Phone:(312) 732-7206 

	 	   
	 Telecopy: (312) 732-1844 

  

	 	 8.
	 in the case of the Swap Counterparty, to: 

  

	 	   
	 JPMorgan Chase Bank, N.A. 

	 	   
	 Attention: Legal Department-Derivatives Practice Group 

	 	   
	 270 Park Avenue, 41st Floor 

	 	   
	 New York, New York 10017-2070 

	 	   
	 Telex No.: 232337; Answerback: CBC UR 

	 	   
	 Facsimile No.: (212) 270-3620 

  

 App. B-2 

 or at such other address as shall be designated by such Person in a written notice to the other parties
to the Basic Documents to which they are party. 
 Where any Basic Document provides for notice to Noteholders of any
condition or event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if it is in writing and mailed, first-class, postage prepaid or by overnight mail to each Noteholder affected by such condition or event, at
such Person’s address as it appears on the Note Register, not later than the latest date, and not earlier than the earliest date, prescribed in such Basic Document for the giving of such notice. If notice to Noteholders is given by mail,
neither the failure to mail such notice nor any defect in any notice so mailed to any particular Noteholders shall affect the sufficiency of such notice with respect to other Noteholders. 
  

 App. B-3

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