Document:

Pooling Agreement

 EXHIBIT 10.2 
 EXECUTION COPY 
  

 POOLING AGREEMENT 
 BETWEEN 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION 
 SELLER 
 AND 
 NAVISTAR FINANCIAL 2006-ARC OWNER TRUST

 ISSUER 
 DATED AS OF SEPTEMBER
1, 2006 
  

 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	  	7
		 	    SECTION 3.04	  	Limitation on Liability of Seller and Others	  	7
		 	    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	  	8
		
	ARTICLE V MISCELLANEOUS PROVISIONS	  	8
		 	    SECTION 5.01	  	Amendment	  	8
		 	    SECTION 5.02	  	Protection of Title to Owner Trust Estate	  	10
		 	    SECTION 5.03	  	Notices	  	12
		 	    SECTION 5.04	  	Governing Law	  	12
		 	    SECTION 5.05	  	Severability of Provisions	  	12
		 	    SECTION 5.06	  	Assignment	  	12
		 	    SECTION 5.07	  	Third-Party Beneficiaries	  	12
		 	    SECTION 5.08	  	Separate Counterparts	  	12
		 	    SECTION 5.09	  	Headings and Cross-References	  	13
		 	    SECTION 5.10	  	Assignment to Indenture Trustee	  	13
		 	    SECTION 5.11	  	No Petition Covenants; Waiver of Claims	  	13
		 	    SECTION 5.12	  	Limitation of Liability of the Trustees	  	14

  

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		 	EXHIBIT A	  	Locations of Composite Schedule of Receivables
		 	EXHIBIT B	  	Form of PSA Assignment
		 	APPENDIX A	  	Defined Terms and Rules of Construction
		 	APPENDIX B	  	Notice Addresses and Procedures

  

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 POOLING AGREEMENT 
 THIS POOLING AGREEMENT is made as of September 1, 2006 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 2006-ARC Owner Trust, a Delaware statutory trust (the “Issuer”). 
 WHEREAS, NFC has sold the Receivables to the Seller pursuant to the Purchase Agreement. 
 WHEREAS, the Seller desires
to sell the Receivables, 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 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 to sell, transfer, assign, set 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 Retail Note Assets with respect to those Retail Notes; 

 (b) the Series 2006-ARC Portfolio Interest, the Series 2006-ARC Portfolio Certificate and the beneficial
interest in the Series 2006-ARC Portfolio Assets, including the Retail Leases identified on the Schedule of Retail Leases to the PSA Assignment delivered to the Issuer and the Related Titling Trust Assets with respect to those Retail Leases;

 (c) the rights, but not the obligations, of NFC under the Lease Purchase Agreement and the LPA Assignment with respect to the Retail
Leases included in the Receivables; and 
 (d) the rights, but not the obligations, of the Seller under the Purchase Agreement and the PA
Assignment pursuant to Section 2.01 of the Purchase Agreement with respect to the Receivables. 
 In addition, on the Closing Date, the Seller
shall deposit the Reserve Fund Initial Deposit Into the Reserve Account. It is the intention of the Seller that the transfer and assignment contemplated by this Section 2.01 shall constitute a sale of the Receivables, the Series 2006-ARC
Portfolio Interest and the Series 2006-ARC Portfolio Certificate from 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. 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. 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 beneficial interest is a part of the Seller’s
estate, 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 lease payments and 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. 
 SECTION 2.02 [Reserved]. 
 SECTION
2.03 Custody of Receivable Files. In connection with the sale, transfer and assignment of Receivables 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 
  

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 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 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 or Retail Lease for such Receivable; 
 (b) documents evidencing or related to any Insurance Policy; 
 (c) 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) if such Receivable is a Retail Note, 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; 
 (e) if such Receivable is a Retail Lease, the Certificate of Title and such other documents that NFC is required to maintain pursuant to
Section 3.6 of the Titling Trust Servicing Agreement; and 
 (f) 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 consideration conveyed by the Seller pursuant to Sections 2.01, and declares that the Issuer shall hold such consideration 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 and this Agreement; 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 hereunder and, with respect to the Retail Notes and Related Retail Note Assets, by NFC to NFRRC under the
Purchase Agreement and from NFRRC to the Issuer hereunder and with respect to Retail Leases and Related Titling Trust Assets, by Harco Leasing to NFC under the Lease Purchase Agreement, from NFC to NFRRC under the Purchase Agreement and from NFRRC
to the Issuer hereunder, (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 Sections 2.01(d) and 2.02(a)(iv), 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 
  

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 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, the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate 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 assignment of the Receivables, the Series 2006-ARC Portfolio Interest and the Series
2006-ARC Portfolio Certificate 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 or either Trustee 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. 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, NFC or Harco Leasing 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, the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate and issuing the Securities under the other Further Transfer and Servicing Agreements. The following representations
and warranties speak as of the Closing Date, but in each case 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 
  

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 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; 
 (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, when duly executed and delivered, shall 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 the applicable Further Transfer and Servicing Agreements, any Securities issued pursuant thereto and the Administration Agreement, (ii) seeking to prevent the issuance of such
Securities or the 
  

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 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 the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate, free and clear of all Liens (other than Permitted Liens). On the date hereof, upon execution and delivery of this Agreement and the PSA Assignment by the
Seller, good and valid title to the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate will be validly and effectively conveyed to, and vested in, the Issuer, free and clear of all Liens, other than Permitted Liens, and
the transfer of the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate by the Seller to the Issuer has been perfected. On the date hereof, the Seller has good title to each Retail Note free and clear of all Liens (other
than Permitted Liens and Liens that will be released as of such transfer). On the date hereof, good and valid title to each such Retail Note will be validly and effectively conveyed to, and vested in, the Issuer, free and clear of all Liens, other
than Permitted Liens, and the transfer of such Retail Note by the Seller to the Issuer has been perfected under the UCC; 
 (h) Security
Interest Matters. The Receivables constitute Code Collateral. This Agreement creates a valid and continuing “security interest” (as defined in the UCC) in the Purchased Property (to the extent it constitutes Code Collateral) in favor
of the Issuer, which security interest is prior to all other Liens and is enforceable as such as against creditors of and purchasers from the Seller. The Seller has caused or will cause prior to the Closing Date the filing of all appropriate
financing statements in the proper filing offices in the appropriate jurisdictions under applicable law necessary to perfect the security interest in the Purchased Property (to the extent it constitutes Code Collateral) granted to the Issuer under
this Agreement. The security interest of the Seller in each Financed Vehicle has been validly assigned by the Seller to the Issuer 
 (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. 
 (j) No Transfer Restrictions. The Seller has not created, incurred or suffered to exist any restriction on transferability of the Purchased
Property except for the restrictions on transferability imposed by this Agreement. The transfer of the Purchased Property by the Seller to the Issuer pursuant to this Agreement is not subject to the bulk transfer laws or any similar statutory
provisions in effect in any applicable jurisdiction 
 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. 
  

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 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 Funding 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 Funding 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. 
 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 
  

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 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 and each Trustee. 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 and each Trustee; provided, 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 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, and assume the obligations of, the Indenture Trustee pursuant to this Agreement (subject to the continuing obligations of the Indenture Trustee set forth in
Section 4.4 of the Indenture). 
 (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 and the Indenture, 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. 
 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 and the Funding Agent, but without the consent of
any of the Financial Parties, and if, but only if, each of S&P and Moody’s confirms in writing to the Conduit Investors that such amendment shall not result in a reduction or withdrawal of its rating on the Commercial Paper issued by such
Conduit Investors, (i) to cure any ambiguity, (ii) to correct or supplement any provision in this Agreement that may be defective or inconsistent with 
  

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 any other provision in this Agreement or any other Basic Document, (iii) to add or supplement any credit enhancement
for the benefit of the Noteholders of any class or the Certificateholders provided that if any such addition shall affect any class of Noteholders or the Certificateholders differently than any other class of Noteholders or the Certificateholders,
respectively, then such addition shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any class of Noteholders or the Certificateholders, (iv) add to the covenants, restrictions or
obligations of the Seller or either Trustee or (v) add, change or eliminate any other provision of this Agreement in any manner that shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of the
Financial Parties. 
 (b) This Agreement may also be amended from time to time by the Seller and the Issuer with the consent of the Indenture
Trustee, the consent of Noteholders whose Notes evidence not less than a majority of the Outstanding Amount of the Controlling Class as of the close of the preceding Distribution Date (unless the interests of the Noteholders are not materially and
adversely affected thereby as evidenced by an Officer’s Certificate of the Servicer to that effect) and the consent of Certificateholders (unless the interests of the Certificateholders are not materially and adversely affected thereby as
evidenced by an Officer’s Certificate of the Servicer to that effect) whose Certificates evidence not less than a majority of the ownership interest in the Trust as of the close of the preceding Distribution Date (which consents, whether given
pursuant to this Section 5.01 or pursuant to any other provision of this Agreement, shall be conclusive and binding on such Person and on all future holders of such Notes or Certificates and of any Notes or Certificates issued upon the
transfer thereof or in exchange thereof or in lieu thereof whether or not notation of such consent is made upon the Notes or Certificates), if, but only if, each of S&P and Moody’s confirms in writing to the Conduit Investors that such
amendment shall not result in a reduction or withdrawal of its rating on the Commercial Paper issued by such Conduit Investors, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this
Agreement, or of modifying in any manner the rights of the Financial Parties; provided, however, that no such amendment shall (i)(a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of
payments on Receivables or distributions that shall be required to be made on any Security, the Interest Rate for any class of Notes or (b) reduce the aforesaid percentage required to consent to any such amendment, without the consent of the
holders of all Securities then outstanding or (ii) amend any provision of this Agreement (including Section 5.06) which requires actions taken under such provision to have the consent of Noteholders whose Notes evidence greater than
a majority of the Outstanding Amount of the Controlling Class as of the preceding Distribution Date or of the Holders of Certificates evidencing greater than a majority of the ownership interest in the Trust as of the preceding Distribution Date, in
each case, without the consent of all Financial Parties described in such Section. 
 (c) Prior to the execution of any such amendment or
consent, the Indenture Trustee shall furnish written notification to the Funding 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. 
  

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 (e) It shall not be necessary for the consent of Financial Parties pursuant to
Section 5.01(b) to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents of
Financial Parties provided for in this Agreement) and of evidencing the authorization of the execution thereof by Financial Parties shall be subject to such reasonable requirements as either Trustee may prescribe. 
 (f) Prior to the execution of any amendment to this Agreement, each Trustee 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. 
 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 Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate and the Indenture Trustee’s security interest in the Receivables, the Series 2006-ARC Portfolio Interest and the Portfolio Certificate
under the Indenture and hereby authorizes the Issuer to file such financing statements or continuation statements relating to all or any part thereof; provided, however, that, with respect to a Retail Lease, the Seller shall not be
obligated to transfer the titles to any Financed Vehicle. The Seller shall deliver (or cause to be delivered) to the Owner Trustee 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 at least 60 days prior written notice
thereof. 
 (c) The Seller shall give each Trustee 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. The Seller shall at all times maintain its jurisdiction
of formation within the United States of America. 
  

 - 10 - 

 (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 Receivable. 
 (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 Composite Schedule of Receivables 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 Composite Schedule of Receivables 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
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 
  

 - 11 - 

 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, the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate 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. 
 SECTION 5.03
Notices. All demands, notices and communications upon or to the Seller either Trustee or the Funding Agent under this Agreement shall be delivered as specified in Appendix B hereto. 
 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 Assignment. Notwithstanding anything to the contrary contained in this Agreement, this Agreement may not be assigned
by the Seller without the prior written consent of Noteholders whose Notes evidence not less than 66% of the Outstanding Amount of the Controlling Class as of the close of the preceding Distribution Date and of Holders of Certificates evidencing not
less than 66% of the ownership interest in the Trust as of the close of the preceding Distribution Date. The Seller shall provide notice of any such assignment to the Funding Agent. 
 SECTION 5.07 Third-Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the parties hereto, the Securityholders
and the Trustees and their respective successors and permitted assigns. 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. 
  

 - 12 - 

 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 Noteholders and (only to
the extent expressly provided therein) the Certificateholders of all right, title and interest of the Issuer in, to and under the Owner Trust Estate and/or the assignment of any or all of the Issuer’s rights and obligations hereunder to the
Indenture Trustee. 
 SECTION 5.11 No Petition Covenants; Waiver of Claims. 
 (a) 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 to the Note Distribution Account or the Certificate Distribution Account, as applicable, 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. 
 (b) Notwithstanding any prior termination of the Series 2006-ARC Portfolio Supplement, the Issuer covenants and agrees that it shall not, prior to the date which is one year and a day after which all obligations under each Permitted
Financing have been paid in full, acquiesce, petition or otherwise invoke, or join any other Person in acquiescing, petitioning or otherwise invoking, against the Titling Trust or any Special Purpose Entity, any proceeding in court or with any
governmental authority for the purpose of (i) commencing or sustaining a case against the Titling Trust or such Special Purpose Entity under any federal or state bankruptcy, insolvency or similar law, or (ii) appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of all or any substantial part of the respective property of the Titling Trust or such Special Purpose Entity, or (iii) ordering the winding up or liquidation of
the affairs of the Titling Trust or such Special Purpose Entity. 
 (c) Except as otherwise provided in the Titling Trust Agreement, as may
be amended, restated and supplemented from time to time, the Issuer hereby releases all Claims to the Titling Trust Assets allocated to the General Interest and to each Portfolio Interest other than the Series 2006-ARC Portfolio Interest whether
then or thereafter created and, in the event that such release is not given effect, to fully subordinate all Claims it may be deemed to have against the Titling Trust Assets allocated to the General Interest and each Portfolio Interest other than
the Series 2006-ARC Portfolio Interest whether then or thereafter created. 
  

 - 13 - 

 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 LaSalle Bank National Association not
in its individual capacity but solely as Indenture Trustee and in no event shall LaSalle Bank National Association 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 Chase Bank USA, National Association not in its individual capacity but solely in its capacity as Owner Trustee and in no event shall Chase
Bank USA, National Association 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.

 * * * * * 
  

 - 14 - 

 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 2006-ARC OWNER TRUST
		
	By:	 	CHASE BANK USA, NATIONAL ASSOCIATION,
	 not in its individual capacity but solely as Owner
 Trustee on behalf of the Trust

		
	By:	 	 /s/ Sarika M. Sheth

	Name:	 	Sarika M. Sheth
	Title:	 	Assistant Vice President
	
	 NAVISTAR FINANCIAL RETAIL
 RECEIVABLES
CORPORATION, as Seller

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

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	Vice President and Controller

  

			
	Acknowledged and Accepted:
	
	 LASALLE BANK NATIONAL ASSOCIATION, not in
 its individual capacity but solely as
 Indenture Trustee

		
	By:	 	 /s/ Timothy E. Cutsinger

	Name:	 	Timothy E. Cutsinger
	Title:	 	Assistant Vice President
	
	 NAVISTAR FINANCIAL CORPORATION,
 as
Servicer

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

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	Vice President and Controller

 EXHIBIT A 
 Locations of Composite Schedule of Receivables 
 The Composite Schedule of Receivables 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 September 1, 2006, for value received, in accordance with the
Pooling Agreement, dated as of September 1, 2006 (the “Pooling Agreement”), between Navistar Financial Retail Receivables Corporation, a Delaware corporation (the “Seller”) and Navistar Financial 2006-ARC Owner Trust (the
“Issuer”), the Seller does hereby sell, assign, transfer and otherwise convey unto the Issuer, without recourse, 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 $415,443,996.03 and the Related Security with respect to those Retail Notes; (b) the Series 2006-ARC Portfolio Interest, the Series 2006-ARC Portfolio Certificate
and the beneficial interest in the Series 2006-ARC Portfolio Assets, including the Retail Leases identified on the Schedule of Retail Leases attached hereto having an aggregate Starting Receivable Balance of $27,431,106.12 and the Related Titling
Trust Assets with respect to those Retail Leases; (c) the rights, but not the obligations, of NFC under the Lease Purchase Agreement with respect to the Retail Leases included in the Receivables; and (d) the Seller’s rights, but not
its obligations, under the Purchase Agreement and the PA Assignment 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 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, at 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) that is a Retail Note, 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) and (b) that is a Retail Lease, 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, including the amount of any TRAC Payment or the Obligor’s purchase option, (ii) the amount of any reimbursements made pursuant to the last sentence of
Section 2.14 of the Servicing Agreement with respect to such Receivable, and (iii) all past due Scheduled Payments with respect to which a Monthly Advance has not been made minus (iv) any Unearned Income 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). 
  

 App. A-1 

 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 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. 
 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 all 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 $442,875,102.15. 
 Annual Percentage Rate or APR: In the case of Retail Notes, the annual percentage rate specified in the Contract related to such Retail Note and, in the case of Retail Leases, the implicit interest rate in the Contract related
to such Retail Lease calculated as an annual percentage rate on a constant yield to maturity basis. 
 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 LPA Assignment, PA Assignment or PSA Assignment. 
 Authenticating Agent: JPMorgan Chase Bank, National Association or any successor appointed by the Owner Trustee pursuant to the Trust Agreement. 
 Authorized Officer: With respect to the Issuer, any officer of the Owner Trustee who is authorized to act for the Owner Trustee in matters
relating to the Issuer and who is identified on 
  

 App. A-2 

 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 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, each PA Assignment, the Pooling Agreement, each PSA
Assignment, the Administration Agreement, the Indenture (including any supplements thereto), the Servicing Agreement, the Lease Purchase Agreement, each LPA Assignment, the Titling Trust Documents, each Schedule of Retail Notes and Schedule of
Retail Leases, the Interest Rate Swap, the Swap Counterparty Rights Agreement, the Note Purchase Agreement 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. 
  

 App. A-3 

 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. 
 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. 
 Claim: As defined in the Titling Trust Agreement. 
 Closing: As defined in Section 2.03 of the Purchase
Agreement. 
 Closing Date: September 1, 2006. 
 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. 
 Collateral Account: As defined in the Titling Trust
Agreement. 
 Collateral Agency Agreement: As defined in the Titling Trust Agreement. 
 Collateral Agent: As defined in the Titling Trust Agreement. 
 Collateral Supplement: A supplement to the Collateral Agency Agreement related to the Series 2006-ARC Portfolio Interest executed in accordance therewith. 
 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 (other than less than Full Prepayments with respect to Retail Leases, which amounts will be held in the Collection Account and applied in the Monthly Period related to the prepaid
Scheduled Payment), (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. 
  

 App. A-4 

 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, lease payments, payments in respect of Residual Value, 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. 
 Commercial Paper: Has the
meaning specified in the Note Purchase Agreement. 
 Commitment: Has the meaning specified in the Note Purchase Agreement. 

Composite Schedule of Receivables: As defined in Section 3.04 of the Servicing Agreement. 
 Conduit Investors: Has the meaning specified in the Note Purchase Agreement. 
 Contract: With respect to a Retail Note or Retail Lease, the related contract(s) or other agreement(s) with the related Obligor which set forth
the terms of such Retail Note or Retail Lease. 
 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. 
 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, the Owner Trustee, the General Interest Trustee or the Portfolio Interest 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 LaSalle Bank National Association, 135 S. LaSalle Street, Suite 1625, Chicago, Illinois 60603, Attn: Global Securities and Trust
Services-Navistar 2006-ARC with respect to the Indenture Trustee, at Chase Bank USA, National Association, c/o JPMorgan Chase, 500 Stanton Christiana Road, OPS4/3rd Floor, Newark, Delaware 19713, Attn: Institutional Trust Services with respect to the Owner Trustee, at 227 West Monroe Street, Suite 2600, Chicago, IL 60606, Attention: Global Corporate Trust
Services Division with respect to the Portfolio Trustee, and at 222 West Monroe Street, Suite 2600, Chicago, IL 60606, Attention: Global Corporate Trust Services Division with respect to the General Interest Trustee. 
 Custodian: NFC, as Servicer, or another custodian named from time to time in the Servicing Agreement. 
 Cutoff Date: July 1, 2006. 
  

 App. A-5 

 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, (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. 
 Delaware Trustee: As defined in the Series 2006-ARC Portfolio Supplement. 
 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, 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 Collateral: As defined in the Titling Trust Agreement.

 Designated Receivables: As defined in Section 2.01 of the Purchase Agreement. 
 Designated Retail Leases: As defined in Section 2.03 of the Lease 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 September 18, 2006. 
 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. 
  

 App. A-6 

 Electing Holder: As defined in the Titling Trust Agreement. 
 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 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; 
  

 App. A-7 

 (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 Funding Agent. 
 Eligible Investments may be purchased by or through the Indenture Trustee and its Affiliates. The Indenture Trustee and/or its Affiliates may act as sponsor, administrator or issuer, or act in a similar capacity with
respect to the Eligible Investments and receive compensation for such services. 
 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) 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) the long-term
debt rating assigned to NFC, or if NFC is not then rated, NIC, by Moody’s and S&P is below Ba3 and BB-, respectively. 
 Equal
Payment Fully Amortizing Receivable: A Retail Note that provides for equal monthly payments that fully amortize the amount financed over the original term to maturity. 
 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. 
  

 App. A-8 

 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 January 2014. 
 Finance Lease: A Retail Lease that is not a TRAC Lease and which is required by GAAP to be capitalized on the balance sheet of the related Obligor
and which gives the Obligor the right to purchase the Financed Vehicle at lease expiration for $1,000 or less. 
 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, in the case of a Retail Note, securing an Obligor’s indebtedness under a
Receivable and, in the case of a Retail Lease, the new or used medium or heavy duty truck, truck chassis, bus or trailer subject to the lease. 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 Noteholders, the Certificateholders and, so long as the Interest Rate Swap is in effect, 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 Retail Note, is sufficient to prepay such Receivable in full (after application of the Scheduled Payment), (ii) a Retail Note 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 or, (iii) a Retail Lease, is sufficient to pay in full the Outstanding Capitalized Cost on the Financed Vehicle related thereto.

 Funded Amount: Has the meaning specified in the Note Purchase Agreement. 
 Funding Agent: means ABN AMRO Bank, N.V. or any successor Funding Agent under the Note Purchase Agreement. 
 Further Transfer and Servicing Agreements: The Pooling Agreement, including each PSA Assignment, the Servicing Agreement, the Trust Agreement and
the Indenture. 
  

 App. A-9 

 GAAP: Generally accepted accounting principles in the United States of America in effect from time
to time. 
 General Collection Account: As defined in the Titling Trust Agreement. 
 General Interest: As defined in the Titling Trust Agreement. 
 General Interest Trustee: As defined in the Titling Trust Agreement. 
 General Titling Trust
Assets: Shall have the meaning given to the term “General Trust Assets” in the Titling Trust Agreement. 
 GI Holder: A
holder of a certificate representing a divided beneficial interest in the General Interest. 
 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. 
 Grantor: As defined in the
Titling Trust Agreement. 
 Gross Balance: As of any date of determination, (i) with respect to a Retail Note, 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, and (ii) with respect to a Retail Lease, the aggregate remaining periodic rental payments plus the TRAC Payment or purchase option price set forth in such Retail Lease (which, for such purposes, shall be assumed to be made on the
last day of the lease term). 
 Guaranty: With respect to any Receivable, a personal or commercial guaranty of an Obligor’s
performance with respect to such Receivable. 
 Harco Leasing: Harco Leasing Company, Inc., a Delaware corporation and its successors
and assigns. 
 Holder: The Person in whose name a Note is registered on the Note Register. 
  

 App. A-10 

 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: LaSalle Bank National Association, a national banking
association, 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 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. 
 Initial Beneficiary: As defined in the Titling Trust Agreement. 
 Initial Capitalized Cost:
With respect to a Retail Lease, the aggregate amount of financing provided for the related Financed Vehicle or Vehicles, including insurance premiums, service and warranty contracts, federal excise taxes, sales taxes, and other items customarily
financed as part of Retail Leases and related costs. 
 Insolvency Event: With respect to a specified Person, (i) the entry of a
decree or order by a court, agency or supervisory authority having jurisdiction in the premises 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. 
  

 App. A-11 

 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: Proceeds of any Insurance Policy with respect to such Receivable. 
 Interest Rate Swap: The
interest rate swap agreement, including all schedules and confirmations 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 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, secured party or Financial Party with respect to the Purchased Property. 
 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. 
 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 and 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. 
 Lease Purchase Agreement: The Lease Purchase Agreement, dated as of the Closing Date, by and between
Harco Leasing and Navistar Financial. 
 Lease Purchase Closing: As defined in Section 2.03 of the Lease Purchase
Agreement. 
 Lease Purchase Date: As defined in Section 2.01 of the Lease Purchase Agreement. 
  

 App. A-12 

 Lease Purchase Price: As defined in Section 2.03 of the Lease Purchase Agreement.

 Lien: Any security interest, lien, charge, pledge, equity or encumbrance of any kind other than liens for taxes not yet due and
payable, mechanics’ liens, any liens that attach by operation of law, and any liens being contested by appropriate measures. 
 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 lease assignments, Insurance Proceeds, proceeds from any Dealer Liability, proceeds
from any International Purchase Obligations and proceeds from 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. 
 LPA Assignment: As defined in Section 2.01 of the Lease Purchase Agreement. 
 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. 
  

 App. A-13 

 Maximum Net Investment: Has the meaning specified in the Note Purchase Agreement. 
 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. 
 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 and any Distribution Date, the Funded Amount of the Notes. 
 Note Purchase Agreement: The Note Purchase Agreement, dated September 1, 2006, among Amsterdam Funding Corporation, as conduit investor, ABN AMRO Bank N.V., as funding agent for the investors, the other alternative investors
from time to time parties thereto, the Servicer and the Seller with respect to the sale of the Notes. 
  

 App. A-14 

 Note Register: With respect to the Notes, 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 $418,516,971.53 issued pursuant to the Indenture.

 Notice of Default: As defined in Section 5.1(d) of the Indenture. 
 Obligor: (i) with respect to any Retail Note, 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 and (ii) with respect to any Retail Lease, the lessee or any co-lessee 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. Where an Officer’s Certificate is required to be delivered by any other Person, a certificate signed
by any Authorized Officer of such Person. 
 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. 
 Other Titling Trust Parties: The Titling Trust, the Titling Trustees, the Collateral Agent, and Harco Leasing. 
 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;

  

 App. A-15 

 (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
Capitalized Cost: With respect to a Retail Lease, the amount to which the Initial Capitalized Cost of the related Financed Vehicle has been amortized at the APR by the periodic lease payments on such Financed Vehicle and any purchase payments
or, in the case of a TRAC Lease, the TRAC Payment made upon expiration of such TRAC Lease. 
 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. 
 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. 
  

 App. A-16 

 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 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: Chase Bank USA, National Association, 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 JPMorgan Chase Bank, National Association. 
 Permitted Financing: As defined in the Titling Trust Agreement. 
 Permitted Liens: 
 (A) with respect to any Collateral, the interests of the parties under the Basic Documents; and 
 (B) with respect to any Financed Vehicle subject to a Retail Lease or any Financed Vehicle which has been repossessed by the Servicer: 
 (1) any liens on the Financed Vehicle for taxes, assessments, levies, fees and other government and similar charges not yet due and
payable or the amount or validity of which is being contested; 
 (2) any liens of mechanics, suppliers, vendors, materialmen,
laborers, employees, repairmen and other like liens arising in the ordinary course of Harco Leasing’s or the Titling Trust’s (or if a Retail Lease is then in effect, any Obligor’s) business on the Financed Vehicle related thereto
securing obligations which are not due and payable or the amount or validity of which is being contested; 
  

 App. A-17 

 (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; and 
 (5) any lien of the Collateral Agent noted on
the certificate of title of a Financed Vehicle. 
 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. 
 Portfolio Assets: As defined in the
Titling Trust Agreement. 
 Portfolio Interest: As defined in the Titling Trust Agreement. 
 Portfolio Interest Certificate: As defined in the Titling Trust Agreement. 
 Portfolio Interest Trustee: As defined in Preamble of the Servicing Agreement. 
 Portfolio Servicing Agreement Supplement: As defined in Section 1.02 of the Servicing Agreement. 
 Portfolio Supplement: As defined in the Titling Trust Agreement. 
 Portfolio Trustee: As defined in the Titling Trust Agreement. 
 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. 
  

 App. A-18 

 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 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: (a) As used in the Basic Documents (other than the Purchase Agreement) in the context of a transfer of a
Receivable or the ownership of a Receivable, a Retail Note or the beneficial interest in a Retail Lease the record owner of which is the Titling Trust that is 
  

 App. A-19 

 transferred to the Issuer pursuant to the Pooling Agreement and (b) as used in the Basic Documents in all other
contexts, a Retail Lease or a Retail Note that is transferred to the Issuer pursuant to the Pooling Agreement. 
 Receivable Balance:
As of an Accounting Date, (a) with respect to any Retail Note, 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 lease assignments, proceeds from any Insurance Policies, Liquidation Proceeds, proceeds from any
Dealer Liability, proceeds from any International Purchase Obligations and proceeds from any Guaranties and (b) with respect to a Retail Lease, the remaining Scheduled Payments or purchase option price set forth in the Retail Lease minus,
without duplication, the sum of (i) Unearned Income, (ii) all payments received by the Servicer from or for the account of the Obligor which are not late fees, prepayment charges or certain other similar fees or charges, (iii) any
Warranty Payment or Administrative Purchase Payment with respect to such Retail Lease, (iv) any Prepayments applied to such Retail Lease, and (v) proceeds received by the Servicer from any Insurance Policies with respect to such Retail
Lease. 
 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. 
 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 Retail Note Assets: With respect to a Retail Note, the right, title and interest of the Seller in and to the following assets: 

 

	 	(a)	all amounts due on and under such Retail Note on and after the Cutoff Date and the fully executed original of such Retail Note; 

  

	 	(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; 

  

 App. A-20 

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

  

	 	(d)	any proceeds from Dealer Liability with respect to such Retail Note, proceeds from any International Purchase Obligations with respect to such Retail Note (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 Retail Note; 

  

	 	(e)	the benefit of any lease assignments with respect to the Financed Vehicles; and 

  

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

 Related Security: With respect to a Retail Note or Retail Lease, the Related Retail Note Assets or the Related Titling Trust Assets, as applicable. 
 Related Titling Trust Assets: With respect to a Retail Lease, the following assets: 
  

	 	(a)	each Financed Vehicle subject to such Retail Lease; 

  

	 	(b)	the Certificate of Title of each such Financed Vehicle; 

  

	 	(c)	the rights (but not the obligations) with respect to any such Retail Lease or Financed Vehicle, including the right to proceeds arising from all International Purchase Obligations,
if any, or any other repurchase obligation with respect to such Retail Lease or Financed Vehicle; 

  

	 	(d)	all of the Transferor’s or Navistar Financial’s Dealer Agreement Rights (as such term is defined in the Titling Trust Agreement); 

  

	 	(e)	any proceeds of any Insurance Policy with respect to such Retail Lease or Financed Vehicle and any documents evidencing or related to such Insurance Policies;

  

	 	(f)	any rights of the lessor with respect to any security deposit relating to such Retail Lease in accordance with the terms of such Retail Lease; 

  

	 	(g)	the rights with respect to such Retail Lease or Financed Vehicle under the Titling Trust Servicing Agreement; 

  

 App. A-21 

	 	(h)	all amounts due on and under such Retail Lease on and after the Cutoff Date and the fully executed original of such Retail Lease; 

  

	 	(i)	all proceeds of the foregoing, including all Collections and all Liquidation Proceeds and all Disposition Proceeds (as such term is defined in the Titling Trust Agreement) with
respect to such Financed Vehicles; and 

  

	 	(j)	all other Titling Trust Assets relating to such Retail Lease. 

 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, (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 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. 
 Required Global Secured Parties: As defined in the Titling Trust Agreement. 
 Requisite GI Holder: As defined in the Titling Trust Agreement. 
 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 $8,857,502.04, which is equal to 2.00% 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. 
  

 App. A-22 

 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. 
 Residual Value: With respect to a TRAC Lease, an amount specified at lease inception in the TRAC Lease, and with respect to a Finance Lease, the
amount of the Obligor’s purchase option under that Finance Lease. 
 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 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 Lease: A lease by an
Obligor of one or more Financed Vehicles, originated or acquired by Navistar Financial or one or more of its Affiliates. 
 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 Leases: Each schedule attached to a PA Assignment or a PSA Assignment
specifying the Retail Leases then being transferred to the Issuer. 
 Schedule of Retail Notes: Each schedule attached to a PA
Assignment or a PSA Assignment specifying the Retail Notes then being transferred to the Issuer. 
 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 except, in the case of any Receivable secured by more than one Financed Vehicle, including any changes in the terms
of such Receivable resulting from a Full Prepayment with respect to any Financed Vehicle related thereto, including, in the case of a TRAC Lease, the TRAC Payment, and (ii) is payable by the Obligor of such Receivable. When Scheduled Payment is
used with reference to a 
  

 App. A-23 

 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 Document: As defined in Section 11.1 of the Collateral Supplement. 
 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. 
 Series 2006-ARC Portfolio
Assets: As of any date, all of the Retail Leases identified on any Schedule of Retail Leases attached to the LPA Assignment on or before such date, and the Related Titling Trust Assets with respect to such Retail Leases, other than any such
Retail Leases which are (i) Warranty Receivables which have been repurchased by NFC, (ii) Administrative Receivables which have been repurchased by the Servicer, or (iii) which have otherwise been terminated, on or before such date
(and the Related Titling Trust Assets). 
 Series 2006-ARC Portfolio Certificate: The Portfolio Interest Certificate representing the
Series 2006-ARC Portfolio Interest. 
 Series 2006-ARC Portfolio Interest: The portfolio interest created pursuant to the Series
2006-ARC Portfolio Supplement. 
 Series 2006-ARC Portfolio Interest Certificate: The Portfolio Interest Certificate representing the
Series 2006-ARC Portfolio Interest. 
 Series 2006-ARC Portfolio Interest Collateral: As defined in Section 11.2 of the
Collateral Supplement. 
 Series 2006-ARC Portfolio Interest Obligor: As defined in the Recitals of the Collateral Supplement.

 Series 2006-ARC Portfolio Supplement: The Series 2006-ARC Portfolio Supplement to the Titling Trust Agreement, dated as of the
Closing Date, among Harco Leasing, as Grantor and Initial Beneficiary, the General Interest Trustee, the Series 2006-ARC Portfolio Trustee and the Delaware Trustee. 
  

 App. A-24 

 Series 2006-ARC Portfolio Trustee: As defined in the Series 2006-ARC Portfolio Supplement.

 Series 2006-ARC Secured Party: As defined in the Recitals of the Collateral Supplement. 
 Servicer: The Person executing the Servicing Agreement as the Servicer, or its successor in interest pursuant to Section 7.02 of the
Servicing Agreement. 
 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, 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 the Titling Trust, Harco Leasing, NFRRC, the Issuer, the
Servicer, the Collateral Agent and the Portfolio Trustee, as amended, modified and supplemented from time to time. 
 Sold Retail Lease
Property: As defined in Section 2.04 of the Lease Purchase Agreement. 
 S&P: Standard & Poor’s
Ratings Services, or its successor. 
 Special Purpose Entity: As defined in the Titling Trust Agreement. 
 Specified Reserve Account Balance: With respect to any Distribution Date, the lesser of (a) the Outstanding Amount of the Notes and
(b) 2.00% of the Aggregate Starting Receivable Balances. 
 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: (a) 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 and (b) with respect to a Receivable that is a Retail Lease, the remaining
Scheduled Payments or purchase option price set forth in the Retail Lease minus, without duplication, the sum of (i) Unearned Income and (ii) payments received from the Obligor prior to the Cutoff Date with respect to such Receivable
allocable to the principal portion of the lease payments. 
  

 App. A-25 

 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. 
 Swap Counterparty: LaSalle Bank National Association, 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 greater of (a) 4.00% of the Aggregate Starting Receivables Balance and (b) the excess, if any, of 5.50% of the Aggregate Receivables
Balance as of the close of business on the last day of the related Monthly Period 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 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. 
 Titling Trust: Navistar Leasing Company, a Delaware statutory business trust formed pursuant to the Titling Trust Agreement. 
 Titling Trust Agreement: The Trust Agreement, dated as of April 15, 1999, among Harco Leasing, J.P. Morgan Trust Company, National
Association (as successor-in-interest to Bank One, National Association), and Chase Bank USA, National Association (as successor-in-interest to Bank One Delaware, Inc.), as amended, modified or supplemented from time to time. 
  

 App. A-26 

 Titling Trust Assets: “Trust Assets” as defined in the Titling Trust Agreement.

 Titling Trust Documents: The Series 2006-ARC Portfolio Certificate, Titling Trust Agreement, the Titling Trust Servicing Agreement,
the Collateral Agency Agreement, the Series 2006-ARC Portfolio Supplement, and the Collateral Supplement. 
 Titling Trust Estate:
“Trust Estate” as defined in the Titling Trust Agreement. 
 Titling Trust Interest Holder: “Holder” as defined in
the Titling Trust Agreement. 
 Titling Trust Servicing Agreement: “Origination and Servicing Agreement” as defined in the
Titling Trust Agreement. 
 Titling Trust Servicer Funding Advances: “Servicer Funding Advances” as defined in the Titling
Trust Agreement. 
 Titling Trustees: Each of the General Interest Trustee, the Delaware Trustee and each Portfolio Trustee.

 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 in the Reserve Account on 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. 
 TRAC Lease: A Retail Lease that provides for a TRAC Payment by the lessee at the expiration of the lease term pursuant to a provision in the lease
that provides in substance that, at the end of the term of the lease, after the application of the proceeds of the sale of the Financed Vehicle (whether such sale is to the lessee, an Affiliate of the lessor or another Person) the lessee will be
obligated to pay the lessor the excess of the TRAC Payment over the sale proceeds or the lessor will be obligated to pay the lessee the excess of the sale proceeds over the TRAC Payment. 
 TRAC Payment: With respect to a TRAC Lease, a fixed amount specified in the lease documents for such TRAC Lease. 
 Transfer Date: With respect to any Distribution Date, the Business Day immediately preceding such Distribution Date. 
 Transfer and Servicing Agreements: The Lease Purchase Agreement, the Purchase Agreement, the Pooling Agreement, the Servicing Agreement, the
Titling Trust Agreement, the Titling Trust Servicing Agreement, the Collateral Agency Agreement, the Series 2006-ARC Portfolio Supplement and the Collateral Supplement. 
  

 App. A-27 

 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. 
 Trigger Event: Shall include any of the following events, beginning on the date when such event occurs and ending on the date such event is no
longer continuing: 
 (a) the institution of litigation, arbitration proceedings or governmental proceedings involving the enforceability of
the Receivables in general that would be reasonably expected to materially and adversely affect the interests of the Noteholders; or 
 (b)
the continuance of any Enhancement Event. 
 Trust: Navistar Financial 2006-ARC 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 June 12, 2006, 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 (a) that is a Retail Note, (i) the sum of all remaining Scheduled
Payments on such Warranty Receivable due after the Accounting Date, (ii) all past due Scheduled Payments with respect to which a Monthly Advance has not been made, (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 and (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) and (b) that is a Retail Lease, the sum of (i) the sum of the Scheduled
Payments on the Warranty Receivable due after the Accounting Date, including the amount of any TRAC Payment or the Obligor’s purchase option, (ii) any 
  

 App. A-28 

 reimbursement made pursuant to the last sentence of Section 2.14 of the Servicing Agreement with respect to
such Warranty Receivable, (iii) all past due Scheduled Payments with respect to which a Monthly Advance has not been made, and (iv) all Outstanding Monthly Advances made on the Warranty Receivable minus (v) any Unearned Income
minus (vi) any Liquidation Proceeds with respect to such Warranty Receivable to the extent applied to the Warranty Receivable on or prior to that 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 Coupon: Has the meaning specified in the Note Purchase Agreement. 
  

 App. A-29 

 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. With
respect to any Purchase Date, the “related Cutoff Date” will mean the Cutoff Date established for the closing of the purchase of receivables on that Purchase 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-30 

 (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. 
 (G) UCC References. References to sections or provisions of Article 9 of the UCC in any of the Basic Documents shall be deemed to be automatically updated to reflect the successor, replacement or functionally equivalent sections or
provisions of Revised Article 9, Secured Transactions (2000) at any time in any jurisdiction which has made such revised article effective. 
  

 App. A-31 

 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 the Seller, the Servicer, the Indenture Trustee, the Issuer, the Owner Trustee or the Funding 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 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 
 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 
 2. in the case of the Indenture Trustee, at its Corporate Trust Office, 
 3. in the case of the Issuer, to
the Corporate Trust Office of the Owner Trustee, with copies to: 
 Navistar Financial Retail Receivables Corporation 
 c/o Corporation Trust Company 
 1209 Orange
Street 
 Wilmington, Delaware 19801 
  

 App. B-1 

 with a copy to: 
 Navistar Financial Corporation 
 425 N. Martingale Road 
 Suite 1800, Attention: General Counsel 
 Schaumburg, IL 60173 
 Telecopy: (630) 753-4410 
 4. in the case of Harco Leasing, at the following address, 
 Harco Leasing Company, Inc. 
 c/o Navistar Financial Corporation 
 425 N.
Martingale Road 
 Suite 1800, Attention: General Counsel 
 Schaumburg, IL 60173 
 Telecopy: (630) 753-4410 
 In the case of the Collateral Agent, at the following address, 
 The Bank of New York 
 2 North LaSalle Street 
 Suite 1020 
 Chicago, IL 60602 

Attention: Indenture Trust Administration 
 Telecopy: (312) 827-8562 
 5. in the case of the Titling Trust, to the General Interest Trustee at its Corporate Trust Office
(as such term is used in the Titling Trust Agreement), with a copy to Harco Leasing and Navistar Financial. 
 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 
  

 App. B-2 

 in the case of the Funding Agent, to: 
 ABN AMRO BANK N.V. 
 540 West Madison Street

 Chicago, IL 60661 
 Attention: Kristina Neville 
 Facsimile No.: (312) 992-5847 
 Telephone No.: (312) 992-5816 
 7. in
the case of the Swap Counterparty, to: 
 LaSalle Bank National Association 
 c/o ABN AMRO BANK N.V. 
 540 West Madison
Street 
 Chicago, IL 60661 
 Attention: Kristina Neville 
 Facsimile No.: (312) 992-5847 
 Telephone No.: (312) 992-5816 
 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, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given regardless of whether such notice is in fact actually received. 
  

 App. B-3Indenture

 EXHIBIT 10.3 
 EXECUTION COPY 
 NAVISTAR FINANCIAL 2006-ARC OWNER TRUST 
 Floating Rate Asset Backed Notes 
  

 INDENTURE 
 Dated as of September 1, 2006 
  

 LASALLE BANK NATIONAL ASSOCIATION, 
 a national banking association, 
 Indenture Trustee 

 TABLE OF CONTENTS 
  

			
	 	  	Page
	 ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE
	  	2
	 Section 1.1 Definitions
	  	2
		
	 ARTICLE II THE NOTES
	  	2
	 Section 2.1 Form
	  	2
	 Section 2.2 Execution, Authentication and Delivery
	  	3
	 Section 2.3 [Reserved.]
	  	3
	 Section 2.4 Registration; Registration of Transfer and Exchange of Notes
	  	3
	 Section 2.5 Mutilated, Destroyed, Lost or Stolen Notes
	  	4
	 Section 2.6 Persons Deemed Noteholders
	  	5
	 Section 2.7 Payment of Principal and Interest
	  	5
	 Section 2.8 Cancellation of Notes
	  	7
	 Section 2.9 [Reserved]
	  	7
	 Section 2.10 [Reserved]
	  	7
	 Section 2.11 [Reserved]
	  	7
	 Section 2.12 [Reserved]
	  	7
	 Section 2.13 Seller as Noteholder
	  	7
	 Section 2.14 Tax Treatment
	  	7
	 Section 2.15 Private Placement of Notes
	  	7
		
	 ARTICLE III COVENANTS
	  	8
	 Section 3.1 Payment of Principal and Interest
	  	8
	 Section 3.2 Maintenance of Agency Office
	  	8
	 Section 3.3 Money for Payments to Be Held in Trust
	  	9
	 Section 3.4 Existence
	  	10
	 Section 3.5 Protection of Collateral; Acknowledgment of Pledge
	  	10
	 Section 3.6 Opinions as to Collateral
	  	11
	 Section 3.7 Performance of Obligations; Servicing of Receivables.
	  	11
	 Section 3.8 Negative Covenants
	  	12
	 Section 3.9 Annual Statement as to Compliance
	  	13
	 Section 3.10 Consolidation, Merger, etc., of the Issuer; Disposition of Trust Assets
	  	14
	 Section 3.11 Successor or Transferee
	  	15
	 Section 3.12 No Other Business
	  	16
	 Section 3.13 No Borrowing
	  	16
	 Section 3.14 Guarantees, Loans, Advances and Other Liabilities
	  	16
	 Section 3.15 Servicer’s Obligations
	  	16
	 Section 3.16 Capital Expenditures
	  	16
	 Section 3.17 Removal of Administrator
	  	16
	 Section 3.18 Restricted Payments
	  	16
	 Section 3.19 Notice of Events of Default
	  	17
	 Section 3.20 Further Instruments and Acts
	  	17

  

 - i - 

			
	 Section 3.21 Indenture Trustee’s Assignment of Administrative Receivables and Warranty Receivables
	  	17
	 Section 3.22 Representations and Warranties by the Issuer to the Indenture Trustee
	  	17
		
	 ARTICLE IV SATISFACTION AND DISCHARGE
	  	18
	 Section 4.1 Satisfaction and Discharge of Indenture
	  	18
	 Section 4.2 Application of Trust Money
	  	19
	 Section 4.3 Repayment of Monies Held by Paying Agent
	  	19
	 Section 4.4 Duration of Position of Indenture Trustee for Benefit of Certificateholders
	  	19
		
	 ARTICLE V DEFAULT AND REMEDIES
	  	20
	 Section 5.1 Events of Default
	  	20
	 Section 5.2 Acceleration of Maturity; Rescission and Annulment
	  	23
	 Section 5.3 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	  	23
	 Section 5.4 Remedies; Priorities
	  	25
	 Section 5.5 Optional Preservation of the Collateral
	  	26
	 Section 5.6 Limitation of Suits
	  	26
	 Section 5.7 Unconditional Rights of Noteholders To Receive Principal and Interest
	  	27
	 Section 5.8 Restoration of Rights and Remedies
	  	27
	 Section 5.9 Rights and Remedies Cumulative
	  	27
	 Section 5.10 Delay or Omission Not a Waiver
	  	27
	 Section 5.11 Control by Noteholders
	  	28
	 Section 5.12 Waiver of Past Defaults
	  	28
	 Section 5.13 Undertaking for Costs
	  	29
	 Section 5.14 Waiver of Stay or Extension Laws
	  	29
	 Section 5.15 Action on Notes
	  	29
	 Section 5.16 Performance and Enforcement of Certain Obligations
	  	29
		
	 ARTICLE VI THE INDENTURE TRUSTEE
	  	30
	 Section 6.1 Duties of Indenture Trustee
	  	30
	 Section 6.2 Rights of Indenture Trustee
	  	32
	 Section 6.3 Indenture Trustee May Own Notes
	  	32
	 Section 6.4 Indenture Trustee’s Disclaimer
	  	33
	 Section 6.5 Notice of Defaults
	  	33
	 Section 6.6 Reports by Indenture Trustee to Holders
	  	33
	 Section 6.7 Compensation; Indemnity
	  	33
	 Section 6.8 Replacement of Indenture Trustee
	  	33
	 Section 6.9 Merger or Consolidation of Indenture Trustee
	  	34
	 Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	  	35
	 Section 6.11 Eligibility; Disqualification
	  	36
	 Section 6.12 [Reserved]
	  	36
	 Section 6.13 Representations and Warranties of Indenture Trustee
	  	36
	 Section 6.14 Indenture Trustee May Enforce Claims Without Possession of Notes
	  	37

  

 - ii - 

			
	 Section 6.15 Suit for Enforcement
	  	37
	 Section 6.16 Rights of Agent to Direct Indenture Trustee
	  	37
		
	 ARTICLE VII NOTEHOLDERS’ LISTS AND REPORTS
	  	38
	 Section 7.1 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders
	  	38
	 Section 7.2 Preservation of Information, Communications to Noteholders
	  	38
	 Section 7.3 [Reserved]
	  	38
	 Section 7.4 [Reserved]
	  	38
		
	 ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES
	  	38
	 Section 8.1 Collection of Money
	  	38
	 Section 8.2 Designated Accounts; Payments
	  	38
	 Section 8.3 General Provisions Regarding Accounts
	  	41
	 Section 8.4 Release of Collateral
	  	41
	 Section 8.5 Opinion of Counsel
	  	41
	 Section 8.6 Investment Earnings and Supplemental Servicing Fees
	  	42
	 Section 8.7 Net Deposits
	  	42
	 Section 8.8 Statements to Securityholders
	  	42
	 Section 8.9 Designated Accounts
	  	43
	 Section 8.10 Reserve Account
	  	44
	 Section 8.11 [Reserved]
	  	44
	 Section 8.12 [Reserved]
	  	44
	 Section 8.13 Termination
	  	44
		
	 ARTICLE IX SUPPLEMENTAL INDENTURES
	  	44
	 Section 9.1 Supplemental Indentures Without Consent of Noteholders
	  	44
	 Section 9.2 Supplemental Indentures With Consent of Noteholders
	  	45
	 Section 9.3 Execution of Supplemental Indentures
	  	47
	 Section 9.4 Effect of Supplemental Indenture
	  	47
	 Section 9.5 [Reserved]
	  	47
	 Section 9.6 Reference in Notes to Supplemental Indentures
	  	47
		
	 ARTICLE X REDEMPTION OF NOTES
	  	47
	 Section 10.1 Redemption
	  	47
	 Section 10.2 Form of Redemption Notice
	  	48
	 Section 10.3 Notes Payable on Redemption Date
	  	48
		
	 ARTICLE XI MISCELLANEOUS
	  	48
	 Section 11.1 Compliance Certificates and Opinions, etc.
	  	48
	 Section 11.2 Form of Documents Delivered to Indenture Trustee
	  	50
	 Section 11.3 Acts of Noteholders
	  	51
	 Section 11.4 Notices, etc., to Indenture Trustee, Issuer and Agent
	  	51
	 Section 11.5 Notices to Noteholders; Waiver
	  	52
	 Section 11.6 Alternate Payment and Notice Provisions
	  	52
	 Section 11.7 [Reserved]
	  	52
	 Section 11.8 Effect of Headings and Table of Contents
	  	52

  

 - iii - 

			
	 Section 11.9 Successors and Assigns
	  	52
	 Section 11.10 Separability
	  	52
	 Section 11.11 Benefits of Indenture
	  	52
	 Section 11.12 Legal Holidays
	  	53
	 Section 11.13 Governing Law
	  	53
	 Section 11.14 Counterparts
	  	53
	 Section 11.15 Recording of Indenture
	  	53
	 Section 11.16 No Recourse
	  	53
	 Section 11.17 No Petition
	  	54
	 Section 11.18 Inspection
	  	54

  

			
	Exhibit A-	  	Locations of Composite Schedule of Receivables
	Exhibit B-	  	Form of Asset Backed Note

  

 - iv - 

 INDENTURE, dated as of September 1, 2006 between NAVISTAR FINANCIAL 2006-ARC OWNER TRUST, a Delaware
statutory trust (the “Issuer”), and LASALLE BANK NATIONAL ASSOCIATION, a national banking association, as trustee and not in its individual capacity (the “Indenture Trustee”). 
 Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Notes and (only to the extent
expressly provided herein) the Certificateholders: 
 GRANTING CLAUSE 
 The Issuer hereby grants to the Indenture Trustee on the Closing Date, as trustee for the benefit of the Noteholders and (only to the extent expressly
provided herein) the Swap Counterparty and the Certificateholders, all of the Issuer’s right, title and interest in, to and under (a) the Receivables listed on the Composite Schedule of Receivables which is on file at the locations listed
on Exhibit A, whether now existing or hereafter acquired and all Related Security; (b) the Collection Account and the Note Distribution Account and all funds on deposit from time to time in the Collection Account and the Note
Distribution Account; (c) the Reserve Account and all proceeds thereof, including all other amounts, investments and investment property held from time to time in the Reserve Account (whether in the form of deposit accounts, Physical Property,
book-entry securities, uncertificated securities, or otherwise); (d) the Reserve Account Initial Deposit with respect to the Closing Date and all proceeds thereof ((c) and (d), collectively, the “Reserve Account Property”);
(e) the Pooling Agreement and the PSA Assignment (including all rights of NFRRC under the Purchase Agreement and the PA Assignment assigned to the Issuer pursuant to the Pooling Agreement); (f) the Servicing Agreement; (g) the rights
of NFC under the Lease Purchase Agreement and the LPA Assignment assigned to NFRRC pursuant to the Purchase Agreement and then to the Issuer pursuant to the Pooling Agreement; (h) the Titling Trust Documents, including the Series 2006-ARC
Portfolio Certificate, the Series 2006-ARC Portfolio Interest and the beneficial interest in the Series 2006-ARC Portfolio Assets; (i) all Collections; (j) all right, title and interest of the Issuer in, to and under the Interest Rate Swap
and the Swap Counterparty Rights Agreement; and (k) all present and future claims, demands, causes and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever
in respect of any or all of the foregoing, including all proceeds of the conversion, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks,
deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the
proceeds of any of the foregoing (collectively, the “Collateral”). 
 The foregoing Grant is made in trust to secure the
payment of principal of and interest on, and any other amounts owing in respect of, the Notes, equally and ratably without prejudice, priority or distinction, subject to the priority set forth in Section 8.2(d) of this Indenture and to
secure compliance with the provisions of this Indenture, all as provided in this Indenture. This Indenture constitutes a security agreement under the UCC. 

 The foregoing Grant includes all rights, powers and options (but none of the obligations, if any) of the
Issuer under any agreement or instrument included in the Collateral, including the immediate and continuing right to claim for, collect, receive and give receipt for principal, interest and lease payments and other Scheduled Payments in respect of
the Receivables included in the Collateral and all other monies payable under the Collateral, 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 Issuer or otherwise and generally to do and receive anything that the Issuer is or may be entitled to do or receive under or with respect to the Collateral. 
 The Indenture Trustee, as trustee on behalf of the Noteholders and (only to the extent expressly provided herein) the Certificateholders, acknowledges such Grant and accepts the trusts under this Indenture in
accordance with the provisions of this Indenture. 
 ARTICLE I 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
 Section 1.1
Definitions. Certain capitalized terms used in this Indenture shall have the respective meanings assigned them in Part I of Appendix A to the Pooling Agreement of even date herewith between the Issuer and NFRRC (as it may be amended,
supplemented or modified from time to time, the “Pooling Agreement”). All references herein to “the Indenture” or “this Indenture” are to this Indenture 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. All references herein to Articles, Sections, subsections and exhibits are to Articles, Sections, subsections and exhibits contained in or attached
to this Indenture unless otherwise specified. All terms defined in this Indenture shall have the defined meanings when used in any certificate, notice, Note or other document made or delivered pursuant hereto unless otherwise defined therein. The
rules of construction set forth in Part II of such Appendix A shall be applicable to this Indenture. 
 ARTICLE II 

THE NOTES 
 Section 2.1
Form. 
 (a) Each Note, together with the Indenture Trustee’s certificate of authentication, shall be substantially in the form
set forth in Exhibit B, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and each such Note may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by their execution of the Notes. Any portion of the text of any Note may be set forth on the reverse
thereof, with an appropriate reference thereto on the face of the Note. 
 (b) The Notes shall be typewritten, printed, lithographed or
engraved or produced by any combination of these methods (with or without steel engraved borders), all as determined by the officers executing such Notes, as evidenced by their execution of such Notes. 
  

 - 2 - 

 (c) Each Note shall be dated the date of its authentication. The terms of the Notes as provided for in
Exhibit B hereto are part of the terms of this Indenture. 
 Section 2.2 Execution, Authentication and Delivery.

 (a) Each Note shall be dated the date of its authentication, and shall be issuable as a registered Note in the minimum denomination of
$1,000 and in integral multiples thereof (except, if applicable, for one Note representing a residual portion of the Notes which may be issued in a different denomination). 
 (b) The Notes shall be executed on behalf of the Issuer by any of its Authorized Officers. The signature of any such Authorized Officer on the Notes may
be manual or facsimile. 
 (c) Notes bearing the manual or facsimile signature of individuals who were at any time Authorized Officers of
the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them have ceased to hold such office prior to the authentication and delivery of such Notes or did not hold such office at the date of such Notes. 
 (d) The Indenture Trustee shall upon Issuer Order authenticate and deliver to or upon the order of the Issuer, the Notes for original issue in aggregate
maximum principal amount of $418,516,971.53. The aggregate principal amount of all Notes outstanding at any time may not exceed $418,516,971.53 except as provided in Section 2.5. 
 (e) No Notes shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there appears on such Note a
certificate of authentication substantially in the form set forth in Exhibit B, executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate upon any Note shall be conclusive evidence,
and the only evidence, that such Note has been duly authenticated and delivered hereunder. 
 Section 2.3 [Reserved.] 
 Section 2.4 Registration; Registration of Transfer and Exchange of Notes. 
 (a) The Issuer shall cause to be kept the Note Register, in which, subject to such reasonable regulations as the Issuer may prescribe, the Issuer shall
provide for the registration of the Notes and the registration of transfers and exchanges of the Notes. The Indenture Trustee shall initially be the Note Registrar for the purpose of registering the Notes and transfers of the Notes as herein
provided. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a successor Note Registrar or, if it elects not to make such an appointment, assume the duties of the Note Registrar. 
 (b) If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer will give the Indenture Trustee prompt written
notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register. The Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to obtain copies thereof.
The Indenture Trustee shall have the right to rely 
  

 - 3 - 

 upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and addresses
of the Noteholders and the principal amounts and number of such Notes. 
 (c) Upon surrender for registration of transfer of any Note at the
Corporate Trust Office of the Indenture Trustee or the Agency Office of the Issuer (and following the delivery, in the former case, of such Notes to the Issuer by the Indenture Trustee), the Issuer shall execute, the Indenture Trustee shall
authenticate and the Noteholder shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees, one or more new Notes in any authorized denominations, of a like aggregate principal amount. 
 (d) At the option of the Noteholder, Notes may be exchanged for other Notes in any authorized denominations, of a like aggregate principal amount, upon
surrender of the Notes to be exchanged at the Corporate Trust Office of the Indenture Trustee or the Agency Office of the Issuer (and following the delivery, in the former case, of such Notes to the Issuer by the Indenture Trustee), the Issuer shall
execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, the Notes which the Noteholder making the exchange is entitled to receive. 
 (e) All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and
entitled to the same benefits under this Indenture, as the Notes surrendered upon such registration of transfer or exchange. 
 (f)
[Reserved.] 
 (g) No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Issuer or
Indenture Trustee may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to
Section 2.3 or Section 9.6 not involving any transfer. 
 (h) The preceding provisions of this
Section 2.4 notwithstanding, the Issuer shall not be required to cause the Indenture Trustee to transfer or make exchanges, and the Note Registrar need not register transfers or exchanges, of Notes that: (i) have been selected for
redemption pursuant to Article X, if applicable; or (ii) are due for repayment in full within 15 days of surrender to the Corporate Trust Office or the Agency Office. 
 Section 2.5 Mutilated, Destroyed, Lost or Stolen Notes. 
 (a) If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the destruction, loss or theft of any Note, and (ii) there is
delivered to the Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the Indenture Trustee harmless, then, in the absence of actual knowledge of the Issuer, the Note Registrar or the Indenture Trustee that
such Note has been acquired by a protected purchaser, the Issuer shall execute and upon the Issuer’s request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Note,
a replacement Note of a like Note and aggregate principal amount; 
  

 - 4 - 

 provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have
become or within seven days shall be due and payable in full, or shall have been called for redemption, instead of issuing a replacement Note, the Issuer may make payment to the Holder of such destroyed, lost or stolen Note when so due or payable or
upon the Redemption Date, if applicable, without surrender thereof. 
 (b) If, after the delivery of a replacement Note or payment in
respect of a destroyed, lost or stolen Note pursuant to subsection (a), any protected purchaser of the original Note in lieu of which such replacement Note was issued presents for payment such original Note, the Issuer and the Indenture Trustee
shall be entitled to recover such replacement Note (or such payment) from (i) any Person to whom it was delivered, (ii) the Person taking such replacement Note from the Person to whom such replacement Note was delivered or (iii) any
assignee of such Person, except any protected purchaser, and the Issuer and the Indenture Trustee shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Issuer
or the Indenture Trustee in connection therewith. 
 (c) In connection with the issuance of any replacement Note under this
Section 2.5, the Issuer may require the payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including all fees
and expenses of the Indenture Trustee) connected therewith. 
 (d) Any duplicate Note issued pursuant to this Section 2.5 in
replacement for any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be found at any time or be enforced by any
Person, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
 (e) The provisions of this Section 2.5 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Notes. 
 Section 2.6 Persons Deemed Noteholders. Prior to due presentment for registration of transfer of any Note, the
Issuer, the Indenture Trustee and any of their agents may treat the Person in whose name any Note is registered (as of the day of determination) as the Noteholder for the purpose of receiving payments of principal of and interest on such Note and
for all other purposes whatsoever, whether or not such Note be overdue, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary. 
 Section 2.7 Payment of Principal and Interest. 
 (a) Interest on the Notes shall accrue in the manner set forth in the Note Purchase Agreement, and such interest shall be payable to each Noteholder on a pro rata basis (based on the aggregate fractional undivided
interests represented by the Notes held by 
  

 - 5 - 

 such Notheholder) on each Distribution Date, in accordance with the priorities set forth in Section 8.2(c),
as specified in the form of Note set forth in Exhibit B. Any installment of interest payable on any Note shall be punctually paid or duly provided for by a deposit by or at the direction of the Issuer or the Servicer into the Note
Distribution Account before each Distribution Date for payment to Noteholders on the related Distribution Date and shall be paid to the Person in whose name such Note (or one or more Predecessor Notes) is registered on the applicable Record Date, by
wire transfer in immediately available funds to the account designated by the applicable Noteholder. 
 (b) Prior to the occurrence of an
Event of Default and a declaration in accordance with Section 5.2(a) that the Notes have become immediately due and payable, the principal of the Notes shall be payable in full on the Final Scheduled Distribution Date and, to the extent
of funds available therefor, to each Noteholder on a pro rata basis (based on the aggregate fractional undivided interests represented by the Notes held by such Notheholder) in instalments on the Distribution Dates (if any) preceding the Final
Scheduled Distribution Date, in the amounts and in accordance with the priorities set forth in Section 8.2(c). Any instalment of principal payable on any Note shall be punctually paid or duly provided for by a deposit by the Indenture
Trustee in accordance with the provisions of Section 8.2 into the Note Distribution Account prior to the applicable Distribution Date and shall be paid to the Person in whose name such Note (or one or more Predecessor Notes) is
registered on the applicable Record Date, by wire transfer in immediately available funds to the account designated by the Noteholder, except for: (i) the final instalment of principal on any Note; and (ii) the Redemption Price for the
Notes redeemed pursuant to Section 10.1, which, in each case, shall be payable as provided herein. The funds represented by any such checks in respect of interest or principal returned undelivered shall be held in accordance with
Section 3.3. 
 (c) [Reserved.] 
 (d) From and after the occurrence of an Event of Default and a declaration in accordance with Section 5.2(a) that the Notes have become immediately due and payable, principal on the Notes shall be payable
to each Noteholder on a pro rata basis (based on the aggregate fractional undivided interests represented by the Notes held by such Notheholder) as provided in Section 8.2(d). 
 (e) With respect to any Distribution Date on which the final instalment of principal and interest on the Notes is to be paid, upon receipt of a
Servicer’s Certificate that indicates such Distribution Date will be the final Distribution Date, the Indenture Trustee shall notify each Noteholder of record as of the Record Date for such Distribution Date of the fact that the final
instalment of principal of and interest on such Note is to be paid on such Distribution Date. Such notice shall be sent not later than three Business Days after such Record Date in accordance with Section 11.5(a), and shall specify that
such final instalment shall be payable only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for payment of such instalment and the manner in which such payment shall be made.
Notices in connection with redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2. Within sixty days of the surrender pursuant to this Section 2.7(e) or cancellation pursuant to
Section 2.8 of all of the Notes, the Indenture Trustee shall provide the Funding Agent with written notice stating that all Notes have been surrendered or canceled. 
  

 - 6 - 

 Section 2.8 Cancellation of Notes. All Notes surrendered for payment, redemption, exchange or
registration of transfer shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly canceled by the Indenture Trustee. The Issuer may at any time deliver to the Indenture Trustee
for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly canceled by the Indenture Trustee. No Notes shall be authenticated
in lieu of or in exchange for any Notes canceled as provided in this Section 2.8, except as expressly permitted by this Indenture. All canceled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard
retention or disposal policy as in effect at the time unless the Issuer shall direct by an Issuer Order that they be returned to it; provided, however, that such Issuer Order is timely and the Notes have not been previously disposed of by the
Indenture Trustee. The Indenture Trustee shall certify to the Issuer that surrendered Notes have been duly canceled and retained or destroyed, as the case may be. 
 Section 2.9 [Reserved]. 
 Section 2.10 [Reserved]. 
 Section 2.11 [Reserved]. 
 Section 2.12 [Reserved]. 
 Section 2.13 Seller as Noteholder. The Seller in its individual or any other capacity
may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its affiliates with the same rights it would have if it were not the Seller. 
 Section 2.14 Tax Treatment. The Issuer in entering into this Indenture, and the Noteholders, by acquiring any Note or interest therein, (i) express their intention that the Notes qualify under
applicable tax law as indebtedness secured by the Collateral, and (ii) unless otherwise required by appropriate taxing authorities, agree to treat the Notes as indebtedness secured by the Collateral for the purpose of federal income taxes,
state and local income and franchise taxes, and any other taxes imposed upon, measured by or based upon gross or net income. 
 Section 2.15 Private Placement of Notes. 
 (a) None of the Notes have been or will be registered under the Securities
Act of 1933, as amended (the “Securities Act”), or the securities laws of any other jurisdiction. Consequently, the Notes are not transferable other than pursuant to an exemption from the registration requirements of the Securities
Act and satisfaction of certain other provisions specified herein. The Notes or an interest in the Notes are being sold in a private placement pursuant to Section 4(2) of the Securities Act on the date hereof. Thereafter, no further sale,
pledge or other transfer of any Note (or interest therein) may be made by any person unless either (i) such sale, pledge or other transfer is made to a “qualified institutional buyer” that 
  

 - 7 - 

 executes a certificate, in form and substance satisfactory to the Indenture Trustee and the Issuer, to the effect that
(A) it is a “qualified institutional buyer” as defined under Rule 144A under the Securities Act, acting for its own account or the accounts of other “qualified institutional buyers” as defined under Rule 144A under the
Securities Act, and (B) it is aware that the transferor of such Note intends to rely on the exemption from the registration requirements of the Securities Act provided by Rule 144A under the Securities Act, or (ii) such sale, pledge or
other transfer is otherwise made in a transaction exempt from the registration requirements of the Securities Act, in which case (A) the Indenture Trustee shall require that both the prospective transferor and the prospective transferee certify
to the Indenture Trustee and the Issuer in writing the facts surrounding such transfer, which certification shall be in form and substance satisfactory to the Indenture Trustee and the Issuer, and (B) the Indenture Trustee shall require a
written opinion of counsel (which will not be at the expense of the Issuer, the Servicer or the Indenture Trustee) satisfactory to the Issuer and the Indenture Trustee to the effect that such transfer will not violate the Securities Act. Neither the
Issuer nor the Indenture Trustee will register any of the Notes under the Securities Act, qualify any of the Notes under the securities laws of any state or provide registration rights to any purchaser or holder thereof. 
 (b) Each Note shall bear a legend to the effect set forth in subsection (a) above. 
 ARTICLE III 
 COVENANTS 
 Section 3.1 Payment of Principal and Interest. The Issuer shall duly and punctually pay the principal of and interest on the Notes in
accordance with the terms of the Notes and this Indenture. On each Distribution Date and on the Redemption Date (if applicable), the Indenture Trustee shall distribute amounts on deposit in the Note Distribution Account to the Noteholders in
accordance with Sections 2.7 and 8.2, less amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest and/or principal. Any amounts so withheld shall be considered as having been paid by the Issuer to
such Noteholder for all purposes of this Indenture. 
 Section 3.2 Maintenance of Agency Office. As long as any of the Notes
remains outstanding, the Issuer shall maintain an office with the Indenture Trustee (the “Agency Office”), being an office or agency where Notes may be surrendered to the Issuer for registration of transfer or exchange, and where
notices and demands to or upon the Issuer in respect of the Notes and this Indenture may be served. The Issuer hereby initially appoints the Indenture Trustee to serve as its agent for the foregoing purposes. The Issuer shall give prompt written
notice to the Indenture Trustee of the location, and of any change in the location, of the Agency Office. If at any time the Issuer shall fail to maintain any such office or agency or shall fail to furnish the Indenture Trustee with the address
thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office of the Indenture Trustee, and the Issuer hereby appoints the Indenture Trustee as its agent to receive all such surrenders, notices and demands.

  

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 Section 3.3 Money for Payments to Be Held in Trust. 
 (a) As provided in Section 8.2, all payments of amounts due and payable with respect to any Notes that are to be made from amounts withdrawn
from the Note Distribution Account pursuant to Section 8.2(d) shall be made on behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the Note Distribution Account for payments of Notes
shall be paid over to the Issuer except as provided in this Section 3.3. 
 (b) On or before each Distribution Date or the
Redemption Date (if applicable), the Indenture Trustee, in accordance with Section 8.2(c) and to the extent funds are available therefor, shall deposit in the Note Distribution Account an aggregate sum sufficient to pay the amounts then
becoming due with respect to the Notes and all accrued and unpaid Other Obligations, such sum to be held in trust for the benefit of the Persons entitled thereto. 
 (c) The Issuer shall cause each Paying Agent other than the Indenture Trustee to execute and deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the Indenture Trustee (and if the
Indenture Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of this Section 3.3, that such Paying Agent shall: 
 (i) hold all sums held by it for the payment of amounts due with respect to the Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as
herein provided and pay such sums to such Persons as herein provided; 
 (ii) give the Indenture Trustee notice of any
default by the Issuer (or any other obligor upon the Notes) of which it has actual knowledge in the making of any payment required to be made with respect to the Notes; 
 (iii) at any time during the continuance of any such default, upon the written request of the Indenture Trustee, forthwith pay to the
Indenture Trustee all sums so held in trust by such Paying Agent; 
 (iv) immediately resign as a Paying Agent and forthwith
pay to the Indenture Trustee all sums held by it in trust for the payment of Notes if at any time it ceases to meet the standards required to be met by a Paying Agent in effect at the time of determination; and 
 (v) comply with all requirements of the Code with respect to the withholding from any payments made by it on any Notes of any applicable
withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith. 
 (d) The Issuer may
at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuer Order direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent, such sums to be
held by the Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent; and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released from all further liability with
respect to such money. 
  

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 (e) Subject to applicable laws with respect to escheat of funds, any money held by the Indenture Trustee
or any Paying Agent in trust for the payment of any amount due with respect to any Note and remaining unclaimed for one year after such amount has become due and payable shall be discharged from such trust and be paid by the Indenture Trustee to the
Issuer on Issuer Request; and the Holder of such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture
Trustee or such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such payment, may at the expense of the Issuer
cause to be published once, in a newspaper published in the English language, customarily published on each Business Day and of general circulation in the City of Chicago, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining shall be paid to the Issuer. The Indenture Trustee may also adopt and employ, at the expense of the Issuer, any other
reasonable means of notification of such payment (including, but not limited to, mailing notice of such payment to Holders whose Notes have been called but have not been surrendered for redemption or whose right to or interest in monies due and
payable but not claimed is determinable from the records of the Indenture Trustee or of any Paying Agent, at the last address of record for each such Holder). 
 Section 3.4 Existence. The Issuer shall keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or any successor Issuer
hereunder is or becomes, organized under the laws of any other State or of the United States of America, in which case the Issuer shall keep in full effect its existence, rights and franchises under the laws of such other jurisdiction) and shall
obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the validity and enforceability of this Indenture, the Notes, the Collateral and each other instrument or
agreement included in the Collateral. 
 Section 3.5 Protection of Collateral; Acknowledgment of Pledge. The Issuer shall from
time to time execute and deliver all such supplements and amendments hereto and all such financing statements, amendments thereto, continuation statements, assignments, certificates, instruments of further assurance and other instruments, and shall
take such other action as may be determined to be necessary or advisable in an Opinion of Counsel to the Owner Trustee delivered to the Indenture Trustee to: 
 (i) maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or carry out more effectively the
purposes hereof including by making the necessary filings of financing statements or amendments thereto within sixty days after the occurrence of any of the following: (A) any change in the name of the Issuer (or its successor), (B) any
change in the jurisdiction of formation of the Issuer (or its successor) and (C) any merger or consolidation or other change in the identity or organizational structure of the Issuer and by promptly notifying the Indenture Trustee of any such
filings; 
  

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 (ii) perfect, publish notice of or protect the validity of any Grant made or to be made
by this Indenture; 
 (iii) enforce the rights of the Indenture Trustee and the Noteholders in any of the Collateral; or

 (iv) preserve and defend title to the Collateral and the rights of the Indenture Trustee and the Noteholders in such
Collateral against the claims of all Persons and parties, and the Issuer hereby authorizes the Indenture Trustee to execute and file any financing statement, continuation statement or other instrument required by the Indenture Trustee pursuant to
this Section 3.5. 
 Section 3.6 Opinions as to Collateral. 
 (a) On the Closing Date, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording and filing of this Indenture, any indentures supplemental hereto and any other requisite documents, and with respect to the execution and filing of any financing statements and continuation
statements as are necessary to perfect and make effective the lien and security interest of this Indenture and reciting the details of such action, or stating that, in the opinion of such counsel, no such action is necessary to perfect such security
interest and make such lien and security interest effective. 
 (b) On or before April 15 in each calendar year, beginning
April 15, 2007, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording, filing, re-recording and refiling of this
Indenture, any indentures supplemental hereto and any other requisite documents and with respect to the execution and filing of any financing statements and continuation statements as is necessary to maintain the lien and security interest created
by this Indenture and reciting the details of such action or stating that in the opinion of such counsel no such action is necessary to maintain the lien and security interest created by this Indenture. Such Opinion of Counsel shall also describe
the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and the execution and filing of any financing statements and continuation statements that will, in the opinion
of such counsel, be required to maintain the lien and security interest of this Indenture until April 15 in the following calendar year. 
 Section 3.7 Performance of Obligations; Servicing of Receivables. 
 (a) The Issuer shall not take any action and shall
use its reasonable efforts not to permit any action to be taken by others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Collateral or that would
result in the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as otherwise expressly provided in this Indenture, the Pooling Agreement, the
Servicing Agreement, the Purchase Agreement, the Administration Agreement or such other instrument or agreement. 
  

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 (b) The Issuer may contract with other Persons to assist it in performing its duties under this
Indenture, and any performance of such duties by a Person identified to the Indenture Trustee in the Basic Documents or an Officers’ Certificate of the Issuer shall be deemed to be action taken by the Issuer. Initially, the Issuer has
contracted with the Servicer and the Administrator to assist the Issuer in performing its duties under this Indenture. 
 (c) The Issuer
shall punctually perform and observe all of its obligations and agreements contained in this Indenture, the Basic Documents and in the instruments and agreements included in the Collateral, including but not limited to filing or causing to be filed
all UCC financing statements and continuation statements required to be filed under the terms of this Indenture, the Pooling Agreement and the Purchase Agreement in accordance with and within the time periods provided for herein and therein.

 (d) If the Issuer shall have knowledge of the occurrence of a Servicer Default under the Servicing Agreement, the Issuer shall promptly
notify the Indenture Trustee and the Funding Agent thereof, and shall specify in such notice the response or action, if any, the Issuer has taken or is taking with respect of such default. If a Servicer Default shall arise from the failure of the
Servicer to perform any of its duties or obligations under the Servicing Agreement with respect to the Receivables, the Issuer and the Indenture Trustee shall take all reasonable steps available to them pursuant to the Servicing Agreement to remedy
such failure. 
 (e) Without derogating from the absolute nature of the assignment granted to the Indenture Trustee under this Indenture or
the rights of the Indenture Trustee hereunder, the Issuer agrees that it shall not consent so as to permit NFRRC, NFC or Harco Leasing to, without the prior written consent of the Funding Agent, amend, modify, waive, supplement, terminate or
surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender of, the terms of any Collateral or any of the Basic Documents, or waive timely performance or observance by the Seller under the Pooling Agreement or
the Purchase Agreement, the Servicer under the Servicing Agreement, the Administrator under the Administration Agreement, NFC under the Purchase Agreement or Harco Leasing under the Lease Purchase Agreement, except as specifically permitted under
these documents; provided, however, that, notwithstanding the foregoing, no action specified in the proviso to Section 9.2(a) shall be taken except in compliance with Section 9.2. If any such amendment,
modification, supplement or waiver shall be so consented to by the Indenture Trustee or the Funding Agent, as applicable, the Issuer agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in its own name and
at its own expense, such agreements, instruments, consents and other documents as the Indenture Trustee may deem necessary or appropriate in the circumstances. 
 Section 3.8 Negative Covenants. So long as any Notes are Outstanding, the Issuer shall not: 
 (a) sell, transfer, exchange or otherwise dispose of any of the properties or assets of the Issuer, except the Issuer may (i) collect, liquidate, sell or otherwise dispose of Receivables (including Warranty Receivables, Administrative
Receivables and Liquidating Receivables), (ii) make cash payments out of the Designated Accounts and the Certificate Distribution Account and (iii) take other actions, in each case as contemplated by the Basic Documents; 
  

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 (b) claim any credit on, or make any deduction from the principal or interest payable in respect of the
Notes (other than amounts properly withheld from such payments under the Code or applicable state law) or assert any claim against any present or former Noteholder by reason of the payment of the taxes levied or assessed upon any part of the
Collateral; 
 (c) voluntarily commence any insolvency, readjustment of debt, marshaling of assets and liabilities or other proceeding, or
apply for an order by a court or agency or supervisory authority for the winding-up or liquidation of its affairs or any other event specified in Section 5.1(f); or 
 (d) either (i) permit the validity or effectiveness of this Indenture to be impaired, or permit the lien of this Indenture to be amended,
hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to the Notes under this Indenture except as may be expressly permitted hereby, (ii) permit any lien,
charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the Collateral or any part thereof or any interest therein or the
proceeds thereof (other than tax liens, mechanics’ liens and other liens that arise by operation of law, in each case on a Financed Vehicle and arising solely as a result of an action or omission of the related Obligor), or (iii) permit
the lien of this Indenture not to constitute a valid first priority security interest in the Collateral (other than with respect to any such tax, mechanics’ or other lien). 
 Section 3.9 Annual Statement as to Compliance. The Issuer shall deliver to the Indenture Trustee, with a copy to the Funding Agent and the
Swap Counterparty on or before February 1 of each year, beginning February 1, 2007, an Officer’s Certificate signed by an Authorized Officer, dated as of the immediately preceding October 31, stating that: 
 (a) a review of the activities of the Issuer during such fiscal year and of performance by the Issuer under this Indenture has been made under such
Authorized Officer’s supervision; and 
 (b) to the best of such Authorized Officer’s knowledge, based on such review, the Issuer
has fulfilled in all material respects all of its obligations under this Indenture throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such Authorized Officer and the
nature and status thereof. A copy of such certificate may be obtained by any Noteholder by a request in writing to the Issuer addressed to the Corporate Trust Office of the Indenture Trustee. 
  

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 Section 3.10 Consolidation, Merger, etc., of the Issuer; Disposition of Trust Assets.

 (a) The Issuer shall not consolidate or merge with or into any other Person, unless: 
 (i) the Person (if other than the Issuer) formed by or surviving such consolidation or merger shall be a Person organized and existing
under the laws of the United States of America or any State and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and timely payment
of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein; 
 (ii) immediately after giving effect to such merger or consolidation, no Default shall have occurred and be continuing; 
 (iii) the written approval of the Funding Agent with respect to such transaction shall be obtained; 
 (iv) any action as is necessary to maintain the lien and security interest created by this Indenture shall have been completed; and

 (v) the Issuer shall have delivered to the Indenture Trustee and the Funding Agent an Officers’ Certificate and an
Opinion of Counsel addressed to the Issuer, each stating: 
 (A) that such consolidation or merger and such supplemental
indenture comply with this Section 3.10; 
 (B) that such consolidation or merger and such supplemental indenture
shall have no material adverse tax consequence to the Issuer or any Securityholder; and 
 (C) that all conditions precedent
herein provided for in this Section 3.10 have been complied with. 
 (b) Except as otherwise expressly permitted by this
Indenture or the other Basic Documents, the Issuer shall not sell, convey, exchange, transfer or otherwise dispose of any of its properties or assets, including those included in the Collateral, to any Person, unless: 
 (i) the Person that acquires such properties or assets of the Issuer (A) shall be a United States citizen or a Person organized
and existing under the laws of the United States of America or any State and (B) by an indenture supplemental hereto, executed and delivered to the Indenture Trustee and the Funding Agent, in form satisfactory to the Indenture Trustee and the
Funding Agent: 
 (A) expressly assumes the due and punctual payment of the principal of and interest on all Notes and the
performance or observance of every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein or therein; 
  

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 (B) expressly agrees that all right, title and interest so sold, conveyed, exchanged,
transferred or otherwise disposed of shall be subject and subordinate to the rights of Noteholders; 
 (C) unless otherwise
provided in such supplemental indenture, expressly agrees to indemnify, defend and hold harmless the Issuer against and from any loss, liability or expense arising under or related to this Indenture and the Notes; and 
 (D) expressly agrees that such Person (or if a group of Persons, then one specified Person) shall make all filings with the Commission
(and any other appropriate Person) required by the Exchange Act in connection with the Notes; 
 (ii) immediately after
giving effect to such transaction, no Default shall have occurred and be continuing; 
 (iii) the Funding Agent shall have
consented to such transaction; 
 (iv) any action as is necessary to maintain the lien and security interest created by this
Indenture shall have been taken; and 
 (v) the Issuer shall have delivered to the Indenture Trustee an Officers’
Certificate and an Opinion of Counsel addressed to the Issuer, each stating that: 
 (A) such sale, conveyance, exchange,
transfer or disposition and such supplemental indenture comply with this Section 3.10; 
 (B) such sale,
conveyance, exchange, transfer or disposition and such supplemental indenture have no material adverse tax consequence to the Issuer or to any Noteholders or Certificateholders; and 
 (C) that all conditions precedent herein provided for in this Section 3.10 have been complied with. 
 Section 3.11 Successor or Transferee. 
 (a) Upon any consolidation or merger of the Issuer in accordance with Section 3.10(a), the Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for, and may
exercise every right and power of, the Issuer under this Indenture with the same effect as if such Person had been named as the Issuer herein. 
 (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to Section 3.10(b), the Issuer shall be released from every covenant and agreement of this Indenture to be observed or performed on the
part of the Issuer with respect to the Securityholders immediately upon the delivery of written notice to the Indenture Trustee from the Person acquiring such assets and properties stating that the Issuer is to be so released. 
  

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 Section 3.12 No Other Business. The Issuer shall not engage in any business or activity other
than acquiring, holding and managing the Collateral and the proceeds therefrom in the manner contemplated by the Basic Documents, issuing the Securities, making payments on the Securities and such other activities that are necessary, suitable,
desirable or convenient to accomplish the foregoing or are incidental thereto, as set forth in Section 2.3 of the Trust Agreement. After the Closing Date, the Issuer shall not fund the purchase of any new Receivables. 
 Section 3.13 No Borrowing. The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any
indebtedness for money borrowed other than indebtedness for money borrowed in respect of the Notes or in accordance with the Basic Documents. 
 Section 3.14 Guarantees, Loans, Advances and Other Liabilities. Except as contemplated by this Indenture or the other Basic Documents, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or
indirectly or by an instrument having the effect of assuring another’s payment or performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with
the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person.

 Section 3.15 Servicer’s Obligations. The Issuer shall use its best efforts to cause the Servicer to comply with its
obligations under Sections 2.17, 3.01 and 3.02 of the Servicing Agreement. 
 Section 3.16 Capital Expenditures. The
Issuer shall not make any expenditure (whether by long-term or operating lease or otherwise) for capital assets (either real, personal or intangible property) other than the purchase of the Receivables and other property and rights from the Seller
pursuant to the Pooling Agreement. 
 Section 3.17 Removal of Administrator. So long as any Notes are Outstanding, the Issuer
shall not remove the Administrator without cause unless each Funding Agent shall have consented in writing in connection with such removal. 
 Section 3.18 Restricted Payments. Except for payments of principal or interest on or redemption of the Notes, the Other Obligations and other amounts set forth in the Note Purchase Agreement, so long as any Notes are
Outstanding, the Issuer shall not, directly or indirectly: 
 (a) pay any dividend or make any distribution (by reduction of capital or
otherwise), whether in cash, property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise, in each case with respect to any ownership or equity interest or similar security in
or of the Issuer or to the Servicer; 
 (b) redeem, purchase, retire or otherwise acquire for value any such ownership or equity interest or
similar security; or 
  

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 (c) set aside or otherwise segregate any amounts for any such purpose; 
 provided, however, that the Issuer may make, or cause to be made, distributions to the Servicer, the Seller, the Indenture Trustee, the Owner Trustee and
the Certificateholders as permitted by, and to the extent funds are available for such purpose hereunder or under, the Pooling Agreement, the Servicing Agreement, the Trust Agreement or the other Basic Documents. The Issuer shall not, directly or
indirectly, make payments to or distributions from the Collection Account except in accordance with the Basic Documents. 
 Section 3.19
Notice of Events of Default. The Issuer agrees to give the Indenture Trustee and the Funding Agent prompt written notice of each Event of Default hereunder, each Servicer Default under the Servicing Agreement, each default on the part of the
Seller of its obligations under the Pooling Agreement, each default on the part of NFC of its obligations under the Purchase Agreement and each default on the part of Harco Leasing under the Lease Purchase Agreement. 
 Section 3.20 Further Instruments and Acts. Upon request of the Indenture Trustee, the Issuer shall execute and deliver such further
instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
 Section 3.21 Indenture Trustee’s Assignment of Administrative Receivables and Warranty Receivables. Upon receipt of the Administrative Purchase Payment or the Warranty Payment with respect to an Administrative Receivable or
a Warranty Receivable, as the case may be, the Indenture Trustee shall release to the Servicer or the Warranty Purchaser, as applicable, all of the Indenture Trustee’s right, title and interest in and to such repurchased Receivable and the
Related Security with respect thereto and any documents relating thereto, and the Servicer or the Warranty Purchaser, as applicable, shall thereupon own such Receivable and the Related Security with respect thereto free of any further obligation to
the Indenture Trustee or the Noteholders with respect thereto. If in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Receivable on the ground that it is not a real party in interest or a holder entitled to
enforce such Receivable, the Indenture Trustee shall, at the Servicer’s expense, take such steps as the Servicer deems necessary to enforce the Receivable, including bringing suit in the Indenture Trustee’s name or the names of the
Securityholders. 
 Section 3.22 Representations and Warranties by the Issuer to the Indenture Trustee. The Issuer hereby
represents and warrants to the Indenture Trustee as follows: 
 (a) Good Title. No Receivable has been sold, transferred, assigned or
pledged by the Issuer to any Person other than the Indenture Trustee; immediately prior to the grant of a security interest in the Receivable pursuant to this Indenture, the Issuer had good and marketable title thereto, free of any Lien (except for
Permitted Liens); and, upon execution and delivery of this Indenture by the Issuer, the Indenture Trustee shall have all of the right, title and interest of the Issuer in, to and under the Collateral, free of any Lien (except for any Lien which may
exist in accessions to the Financed Vehicles not financed by NFC); and 
  

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 (b) All Filings Made. All filings necessary under the UCC in any jurisdiction to give the
Indenture Trustee a first priority perfected security interest in the Receivables and, to the extent constituting Code Collateral, the other Collateral shall have been made. The Receivables constitute Code Collateral. 
 (c) Series 2006-ARC Portfolio Certificate. The Series 2006-ARC Portfolio Certificate has been duly registered in the name of the Indenture
Trustee and all other action necessary (including the filing of UCC-1 financing statements) to protect and perfect the Indenture Trustee’s security interest in the Collateral now in existence and hereafter acquired or created has been duly and
effectively taken. 
 (d) Lien of Indenture. This Indenture constitutes a valid and continuing Lien on the Collateral in favor of the
Indenture Trustee on behalf of the Noteholders, which Lien will be prior to all other Liens (other than Permitted Liens), will be enforceable as such as against creditors of and purchasers from the Issuer in accordance with its terms, except as such
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, and all action necessary to perfect such prior security interest has been duly taken. 
 ARTICLE IV 
 SATISFACTION AND DISCHARGE 
 Section 4.1 Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect to the Notes except as to: (i) rights of registration of transfer and exchange;
(ii) substitution of mutilated, destroyed, lost or stolen Notes; (iii) rights of Noteholders to receive payments of principal thereof and interest thereon; (iv) Sections 3.2, 3.3, 3.4, 3.5, 3.8, 3.10, 3.11, 3.12, 3.13, 3.14, 3.16,
3.17, 3.19 and 3.21; (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section 6.7 and the obligations of the Indenture Trustee under Sections
4.2 and 4.4); and (vi) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on demand of and at the expense of the
Issuer shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, if: 
 (a)
either: 
 (i) all Notes theretofore authenticated and delivered (other than (A) Notes that have been destroyed, lost or
stolen and that have been replaced or paid as provided in Section 2.5 and (B) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or
discharged from such trust, as provided in Section 3.3) have been delivered to the Indenture Trustee for cancellation; or 
 (ii) all Notes not theretofore delivered to the Indenture Trustee for cancellation: 
 (A)
have become due and payable, 
  

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 (B) will be due and payable on their respective Final Scheduled Distribution Dates
within one year, or 
 (C) are to be called for redemption within one year under arrangements satisfactory to the Indenture
Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuer. 
 and the Issuer, in the case of
(A), (B) or (C) of subsection 4.1(a)(ii) above, has irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will
mature prior to the date such amounts are payable), in trust for such purpose, in an amount sufficient to pay and discharge the entire unpaid principal and accrued interest on such Notes not theretofore delivered to the Indenture Trustee for
cancellation when due on the Final Scheduled Distribution Date for such Notes or the Redemption Date for such Notes (if such Notes are to be called for redemption pursuant to Section 10.1(a)), as the case may be; 
 (b) the Issuer has paid or caused to be paid all other sums payable hereunder or under the Interest Rate Swap by the Issuer; and 
 (c) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate of the Issuer, an Opinion of Counsel and (if required by the
Indenture Trustee) an Independent Certificate from a firm of certified public accountants, each meeting the applicable requirements of Section 11.1(a) and each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with. 
 Section 4.2 Application of Trust Money. All monies
deposited with the Indenture Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent, as the
Indenture Trustee may determine, (i) to the Holders of the particular Notes for the payment or redemption of which such monies have been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest
and (ii) to the Swap Counterparty of all sums, if any, due or to become due to the Swap Counterparty under and in accordance with this Indenture; but such monies need not be segregated from other funds except to the extent required herein or in
the Servicing Agreement or by applicable law. 
 Section 4.3 Repayment of Monies Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all monies then held by any Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect to the Notes shall, upon demand of the Issuer, be
paid to the Indenture Trustee to be held and applied according to Section 3.3 and thereupon such Paying Agent shall be released from all further liability with respect to such monies. 
 Section 4.4 Duration of Position of Indenture Trustee for Benefit of Certificateholders. Notwithstanding (i) the earlier payment in full
of all principal and interest due to the Noteholders under the terms of the Notes, (ii) the cancellation of such Notes pursuant 
  

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 to Section 2.8 and (iii) the discharge of the Indenture Trustee’s duties hereunder with respect to
such Notes, the Indenture Trustee shall continue to act in the capacity as Indenture Trustee hereunder for the benefit of the Certificateholders and the Indenture Trustee, for the benefit of the Certificateholders, shall comply with its obligations
under Sections 2.02, 7.02 and 7.03 of the Servicing Agreement, as appropriate, until such time as all distributions in respect of the Certificates have been paid in full. 
 ARTICLE V 
 DEFAULT AND REMEDIES 
 Section 5.1 Events of Default. For the purposes of this Indenture, “Event of Default” wherever used herein, means any one of the
following events: 
 (a) failure to pay any interest on any Note or the Other Obligations as and when the same becomes due and payable, and
such default shall continue unremedied for a period of three (3) Business Days; or 
 (b) except as set forth in
Section 5.1(c), failure to pay any instalment of the principal of any Note as and when the same becomes due and payable, and such default shall continue unremedied for a period of three (3) Business Days after (i) there shall
have been given, by electronic mail and overnight carrier, to the Issuer and the Seller (or the Servicer, as applicable) by the Indenture Trustee or to the Issuer and the Seller (or the Servicer, as applicable) and the Indenture Trustee by the
Holders of at least 25% of the Outstanding Amount of the Controlling Class, a written notice specifying such default, demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder, (ii) there shall have
been given to the Servicer by the Funding Agent a written notice specifying such default or (iii) actual knowledge of an officer of the Servicer of such default; or 
 (c) failure to pay in full the outstanding principal balance of the Notes by the Final Scheduled Distribution Date; or 
 (d) default in the observance or performance of any covenant or agreement of the Issuer, the Seller, Harco Leasing or NFC made in this Indenture or any other Basic Document (other than a covenant or agreement, a
default in the observance or performance of which is specifically dealt with elsewhere in this Section 5.1) which failure materially and adversely affects the rights of the Noteholders, and such default shall continue or not be cured for
a period of thirty (30) days (or in the case of the failure of the Indenture Trustee to hold a first priority perfected security interest in the Collateral, five (5) Business Days) after (i) there shall have been given, by electronic
mail and overnight carrier, to the Issuer and the Seller (or the Servicer, as applicable) by the Indenture Trustee or to the Issuer and the Seller (or the Servicer, as applicable) and the Indenture Trustee by the Holders of at least 25% of the
Outstanding Amount of the Controlling Class, a written notice specifying such default, demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder, (ii) there shall have been given to the
Servicer by the Funding Agent a written notice specifying such default or (iii) actual knowledge of an officer of the Servicer of such default; or 
  

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 (e) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect
of the Issuer, the Seller or NFC or any substantial part of the Owner Trust Estate in an involuntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer (other than as Owner Trustee) or for any substantial part of the Collateral, the Seller or NFC or ordering the winding-up or liquidation of the Issuer’s
affairs, and such decree or order shall remain unstayed and in effect for a period of sixty (60) consecutive days; or 
 (f) the
commencement by the Issuer, the Seller or NFC of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Issuer, the Seller or NFC to the entry of an order
for relief in an involuntary case under any such law, or the consent by the Issuer, the Seller or NFC to the appointment or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer,
the Seller or NFC or for any substantial part of the Owner Trust Estate, or the making by the Issuer, the Seller or NFC of any general assignment for the benefit of creditors, or the failure by the Issuer, the Seller or NFC generally to pay its
debts as such debts become due or the admission in writing by any such Person of its inability to pay its debt generally, or the taking of action by the Issuer in furtherance of any of the foregoing; or 
 (g) any representation, warranty, certification or statement made by the Issuer, the Seller, NFC or Harco Leasing under this Indenture or any other
Basic Document or in any agreement, certificate, report, appendix, schedule or document furnished by the Issuer, the Seller, NFC or Harco Leasing to the Funding Agent pursuant to or in connection with this Indenture shall prove to have been false or
misleading as of the time made or deemed made (including by omission of material information necessary to make such representation, warranty, certification or statement not misleading) which false or misleading representation, warranty,
certification or statement materially and adversely affects the rights of the Noteholders, and such false or misleading representation, warranty, certification or statement made by the Issuer, the Seller, NFC or Harco Leasing shall continue or not
be cured for a period of thirty (30) days after (i) there shall have been given, by electronic mail and overnight carrier, to the Issuer and the Seller (or the Servicer, as applicable) by the Indenture Trustee or to the Issuer and the
Seller (or the Servicer, as applicable) and the Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of the Controlling Class, a written notice specifying such false or misleading representation, warranty, certification or
statement made by the Issuer, demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder, (ii) there shall have been given to the Servicer by the Funding Agent a written notice specifying such
false or misleading representation, warranty, certification or (iii) actual knowledge of an officer of the Servicer of such false or misleading representation, warranty, certification; 
 (h) there shall be a “change of control” with respect to the Seller (for purposes of this clause only, a “change of control” shall
mean the failure of NFC to own, on a fully diluted basis, 100% of the outstanding shares of voting stock of the Seller); 
 (i) any
provision of this Indenture or any other Basic Document to which the Issuer, NFC, Harco Leasing or the Seller is a party shall cease to be in full force and effect and the parties thereto shall not within 30 days hereafter have amended such
agreement to 
  

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 the satisfaction of the Funding Agent to eliminate such non-enforceability or the Issuer, NFC, Harco Leasing or the
Seller shall so state in writing and, in either case, such non-enforceability would have a material adverse effect on the interests of the Noteholders; 
 (j) the failure to maintain the Interest Rate Swap Agreement to the extent provided pursuant to this Indenture or the failure of the Interest Rate Swap Counterparty to make any payment required to be made thereunder,
in either case, other than as a result of any action or inaction on the part of the Swap Counterparty, if the swap counterparty under the Interest Rate Swap is LaSalle Bank National Association; 
 (k) a default by the Servicer in the performance of any term, provision or condition contained in any agreement under which any indebtedness of the
Servicer in excess of $10 million was created or is governed, the effect of which is to cause any such indebtedness to become due prior to its stated maturity; or any such indebtedness shall be declared to be due and payable or required to be
prepaid (other than by a regularly scheduled payment or as a result of the voluntary sale or transfer of the property or assets) prior to the stated maturity date thereof, and the failure of the Servicer to repay such indebtedness in full or
otherwise caused such indebtedness to be reinstated within 30 days after such indebtedness shall be declared to be due and payable or required to be prepaid; 
 (l) a Servicer Default pursuant to Section 7.01(a), (c) or (d) of the Servicing Agreement shall have occurred and be continuing; 
 (m) there shall have occurred any event with respect to the Issuer, the Seller, Harco Leasing or the Servicer the effect of which would be reasonably
expected to have a Material Adverse Effect; 
 (n) there shall remain in force, undischarged, unsatisfied and unstayed, for a period of more
than ten (10) days any final judgment against the Issuer for which insurance or uncontested indemnification is not available, the collection of which has not been stayed and the effect of which would be reasonably expected to have a Material
Adverse Effect; 
 (o) the institution of litigation, arbitration proceedings or governmental proceeds involving the Issuer which would be
reasonably expected to have a Material Adverse Effect; or 
 (p) the Seller shall have failed to deliver to the Funding Agent within 30 days
after the Closing Date a copy of the Independent Accountant’s Report of KPMG LLP addressed to the board of directors of the Seller with respect to minimum servicing standards for the year ended October 31, 2005. 
 The Issuer shall deliver to the Indenture Trustee and the Funding Agent, within two (2) Business Days after learning of the occurrence thereof, written notice in
the form of an Officer’s Certificate of any Default under Section 5.1(d), and, within 5 (five) Business Days after learning of the occurrence thereof, its status and what action the Issuer is taking or proposes to take with respect
thereto. 
  

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 Section 5.2 Acceleration of Maturity; Rescission and Annulment. 
 (a) If an Event of Default (other than pursuant to Section 5.1(e) and (f)) should occur and be continuing, then, unless the principal amount
of the Notes shall have already become due and payable, either the Indenture Trustee (acting at the direction of 100% of the Holders of Outstanding Notes) or the Funding Agent may declare all the Notes to be immediately due and payable, by a notice
in writing to the Issuer (and to the Indenture Trustee if given by the Noteholders) setting forth the Event or Events of Default, and upon any such declaration the unpaid principal amount of the Notes together with accrued and unpaid interest
thereon through the date of acceleration, shall become immediately due and payable. If an Event of Default pursuant to Section 5.1(e) or (f) shall occur and be continuing, then all the Notes shall automatically be declared
immediately due and payable. 
 (b) At any time after such declaration of acceleration (either by notice or automatic declaration) of
maturity of the Notes has been made and before a judgment or decree for payment of the money due thereunder has been obtained by the Indenture Trustee as hereinafter provided in this Article V, the Funding Agent, by written notice to the Issuer and
the Indenture Trustee, may rescind and annul such declaration and its consequences with respect to the Notes; provided, that no such rescission and annulment shall extend to or affect any subsequent or other Default or impair any right
consequent thereto; and provided further, that if the Indenture Trustee shall have proceeded to enforce any right under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission and annulment or
for any other reason, or such proceedings shall have been determined adversely to the Indenture Trustee, then and in every such case, the Indenture Trustee, the Issuer and the Noteholders, as the case may be, shall be restored to their respective
former positions and rights hereunder, and all rights, remedies and powers of the Indenture Trustee, the Issuer and the Noteholders, as the case may be, shall continue as though no such proceedings had been commenced. 
 Section 5.3 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee. 
 (a) The Issuer covenants that if there shall occur an Event of Default under Sections 5.1(a), (b) or (c), the Issuer shall, upon demand of
the Funding Agent, pay to the Indenture Trustee, for the benefit of the Noteholders in accordance with their respective outstanding principal amounts, the entire amount then due and payable on the Notes for principal and interest and all accrued and
unpaid Other Obligations, with interest through the date of such payment on the overdue principal amount of the Notes, at the rate applicable to the Notes, including any increased rate as a result of the occurrence of an Event of Default, and in
addition thereto such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel. 

(b) If the Issuer shall fail forthwith to pay such amounts upon such demand, the Indenture Trustee shall, upon demand of the Funding Agent, in its
own name and as trustee of an express trust, institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or final decree, and may enforce the same against the Issuer or other obligor upon
such Notes and collect in the manner provided by law out of the property of the Issuer or other obligor upon the Notes, wherever situated, the monies adjudged or decreed to be payable. 
  

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 (c) If an Event of Default occurs and is continuing, the Indenture Trustee shall, upon demand of the
Funding Agent, as more particularly provided in Section 5.4, proceed to protect and enforce its rights and the rights of the Noteholders, by such appropriate Proceedings as the Funding Agent shall deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by applicable law. 
 (d) If there shall be pending, relative to the Issuer or any other obligor upon
the Notes or any Person having or claiming an ownership interest in the Collateral, Proceedings under Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or other similar law, or if a receiver, assignee
or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable judicial
Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section 5.3, shall be entitled and empowered, and shall, if so directed by
the Holders of 100% of the Outstanding Notes, by intervention in such Proceedings or otherwise: 
 (i) to file and prove a
claim or claims for the entire amount of the unpaid principal and interest owing in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any
claim for reasonable compensation to the Indenture Trustee and each predecessor trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Indenture
Trustee and each predecessor trustee, except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings; 
 (ii) unless prohibited by applicable law and regulations, to vote on behalf of the Holders of Notes in any election of a trustee, a standby trustee or Person performing similar functions in any such Proceedings;

 (iii) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute all
amounts received with respect to the claims of the Noteholders and of the Indenture Trustee on their behalf; and 
 (iv) to
file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee or the Holders of Notes allowed in any judicial proceedings relative to the Issuer, its creditors and its
property; 
  

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 and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by
each of such Noteholders to make payments to the Indenture Trustee, and, if the Indenture Trustee shall consent to the making of payments directly to such Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Indenture Trustee, each predecessor trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor
trustee, except as a result of negligence or bad faith. 
 (e) Nothing herein contained shall be deemed to authorize the Indenture Trustee
to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to authorize the Indenture Trustee to
vote in respect of the claim of any Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
 (f) All rights of action and of asserting claims under this Indenture, or under any of the Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the production thereof in any
trial or other Proceedings relative thereto, and any such Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Indenture Trustee, each predecessor trustee and their respective agents and attorneys, shall be applied in accordance with Section 5.4(b). 
 (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Noteholders, and it shall not be necessary to make any Noteholder a party to any such Proceedings. 
 Section 5.4 Remedies; Priorities. 
 (a) If an Event of Default shall have occurred and be continuing and the Notes have been accelerated under Section 5.2(a), the Indenture Trustee shall, at the direction of the Holders of 100% of the Outstanding Notes, do one or
more of the following (subject to Section 5.5): 
 (i) institute Proceedings in its own name and as trustee of an
express trust for the collection of all amounts then due and payable on the Notes or under this Indenture with respect thereto, whether by declaration of acceleration or otherwise, enforce any judgment obtained, and collect from the Issuer and any
other obligor upon such Notes monies adjudged due; 
 (ii) institute Proceedings from time to time for the complete or
partial foreclosure of this Indenture with respect to the Collateral; 
 (iii) exercise any remedies of a secured party under
the UCC and take any other appropriate action to protect and enforce the rights and remedies of the Indenture Trustee and the Noteholders; and 
  

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 (iv) at the direction of the Funding Agent, (A) sell the Collateral or any portion
thereof or rights or interest therein, at one or more public or private sales called and conducted in any manner permitted by law or (B) have the Issuer maintain possession of the Collateral, including the Receivables included therein and
continue to apply collections on such Receivables as if there had been no declaration of acceleration (either by notice or automatic declaration). 
 (b) If the Indenture Trustee collects any money or property pursuant to this Article V, it shall pay out or deposit such money or property in the following order: 
 FIRST: to the Indenture Trustee for amounts owing under Section 6.7; and 
 SECOND: to the
Collection Account, for distribution pursuant to Section 4.02 of the Pooling Agreement and Section 8.2(c) of this Indenture. 
 Section 5.5 Optional Preservation of the Collateral. If the Notes have been declared to be due and payable under Section 5.2(a) following an Event of Default and such declaration and its
consequences have not been rescinded and annulled in accordance with Section 5.2(b), the Indenture Trustee shall, at the direction of 100% of the Holders of Outstanding Notes, take and maintain possession of the Collateral. It is the
desire of the parties hereto and the Noteholders that there be at all times sufficient funds for the payment of principal of and interest on the Notes, and the Indenture Trustee shall take such desire into account when determining whether or not to
take and maintain possession of the Collateral. In determining whether to take and maintain possession of the Collateral, the Indenture Trustee shall, at the direction of 100% of the Holders of Outstanding Notes, obtain and rely upon an opinion of
an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the Collateral for such purpose. 
 Section 5.6 Limitation of Suits. No Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect
to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
 (i) such
Holder has previously given written notice to the Indenture Trustee of a continuing Event of Default; 
 (ii) the Holders of
not less than 25% of the Outstanding Amount of the Controlling Class have made written request to the Indenture Trustee to institute such Proceeding in respect of such Event of Default in its own name as Indenture Trustee hereunder; 
 (iii) such Holder or Holders have offered to the Indenture Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in complying with such request; 
 (iv) the Indenture Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute such Proceedings; and 
  

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 (v) no direction inconsistent with such written request has been given to the Indenture
Trustee during such 60-day period by the Holders of a majority of the Outstanding Amount of the Controlling Class; 
 it being understood and intended that
no Holder or Holders of Notes shall have any right in any manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Notes or to obtain or to seek to obtain
priority or preference over any other Holders of Notes or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable (on the basis of the respective aggregate amount of principal and interest,
respectively, due and unpaid on the Notes held by each Noteholder) and common benefit of all Noteholders. For the protection and enforcement of the provisions of this Section 5.6, each and every Noteholder shall be entitled to such
relief as can be given either at law or in equity. 
 If the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less than a majority of the Outstanding Amount of the Controlling Class, the Indenture Trustee in its sole discretion may determine what action, if any, shall be taken,
notwithstanding any other provisions of this Indenture. 
 Section 5.7 Unconditional Rights of Noteholders To Receive Principal and
Interest. Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest on such Note on or after the respective due
dates thereof expressed in such Note or in this Indenture (or, in the case of redemption, if applicable, on or after the Redemption Date) and to institute suit for the enforcement of any such payment, and such right shall not be impaired without the
consent of such Holder. 
 Section 5.8 Restoration of Rights and Remedies. If the Indenture Trustee or any Noteholder has
instituted any Proceeding to enforce any right or remedy under this Indenture and such Proceeding has been discontinued or abandoned for any reason or has been determined adversely to the Indenture Trustee or to such Noteholder, then and in every
such case the Issuer, the Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be restored severally to their respective former positions hereunder, and thereafter all rights and remedies of the Indenture
Trustee and the Noteholders shall continue as though no such Proceeding had been instituted. 
 Section 5.9 Rights and Remedies
Cumulative. No right or remedy herein conferred upon or reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be
cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent
assertion or employment of any other appropriate right or remedy. 
 Section 5.10 Delay or Omission Not a Waiver. No delay or
omission of the Indenture Trustee or any Holder of any Note to exercise any right or remedy accruing upon any 
  

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 Default shall impair any such right or remedy or constitute a waiver of any such Default or an acquiescence therein.
Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as often as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may be.

 Section 5.11 Control by Noteholders. The Holders of a majority of the Outstanding Amount of the Controlling Class shall,
subject to provision being made for indemnification against costs, expenses and liabilities in a form satisfactory to the Indenture Trustee, have the right to direct the time, method and place of conducting any Proceeding for any remedy available to
the Indenture Trustee with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided, however, that: 
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 
 (ii) subject to the express terms of Section 5.4, any direction to the Indenture Trustee to sell or liquidate the Collateral shall be by the Holders of Notes representing 100% of the Outstanding Amount of the Notes; 

(iii) if the conditions set forth in Section 5.5 have been satisfied and the Indenture Trustee elects to retain the
Collateral pursuant to Section 5.5, then any direction to the Indenture Trustee by Holders of Notes representing less than 100% of the Outstanding Amount of the Notes to sell or liquidate the Collateral shall be of no force and effect;
and 
 (iv) the Indenture Trustee may take any other action deemed proper by the Indenture Trustee that is not inconsistent
with such direction; 
 provided, however, that, subject to Section 6.1, the Indenture Trustee need not take any action that it
determines might cause it to incur any liability (a) with respect to which the Indenture Trustee shall have reasonable grounds to believe that adequate indemnity against such liability in not assured to it and (b) which might materially
adversely affect the rights of any Noteholders not consenting to such action. 
 Section 5.12 Waiver of Past Defaults.

 (a) Prior to the declaration of the acceleration (either by notice or automatic declaration) of the maturity of the Notes as provided in
Section 5.2(a), the Funding Agent may waive any past Default and its consequences except a Default (i) in the payment of principal of or interest on any of the Notes or (ii) in respect of a covenant or provision hereof which
cannot be modified or amended without the consent of the Holder of each Note. In the case of any such waiver, the Issuer, the Indenture Trustee and the Noteholders shall be restored to their respective former positions and rights hereunder; but no
such waiver shall extend to or affect any subsequent or other Default or impair any right consequent thereto. 
 (b) Upon any such waiver,
such Default shall cease to exist and be deemed to have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this Indenture; but no such
waiver shall extend to or affect any subsequent or other Default or impair any right consequent thereto. 
  

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 Section 5.13 Undertaking for Costs. All parties to this Indenture agree, and each Holder of
any Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any Proceeding for the enforcement of any right or remedy under this Indenture, or in any Proceeding against the
Indenture Trustee for any action taken, suffered or omitted by it as Indenture Trustee, the filing by any party litigant in such Proceeding of an undertaking to pay the costs of such Proceeding, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees, against any party litigant in such Proceeding, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this
Section 5.13 shall not apply to: 
 (a) any Proceeding instituted by the Indenture Trustee; 
 (b) any Proceeding instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate more than 10% of the Outstanding Amount
of the Controlling Class; or 
 (c) any Proceeding instituted by any Noteholder for the enforcement of the payment of principal of or
interest on any Note on or after the respective due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after the Redemption Date). 
 Section 5.14 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, or plead or in any manner whatsoever, claim or take
the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, that may adversely affect the covenants or the performance of this Indenture. The Issuer (to the extent that it may lawfully do so)
hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution of any power herein granted to the Indenture Trustee, but shall suffer and permit the execution of every such
power as though no such law had been enacted. 
 Section 5.15 Action on Notes. The Indenture Trustee’s right to seek and
recover judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any rights or remedies of the
Indenture Trustee or the Noteholders shall be impaired by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any execution under such judgment upon any portion of the Collateral or upon any of the assets of
the Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance with Section 5.4(b). 
 Section 5.16 Performance and Enforcement of Certain Obligations. 
 (a) Promptly following a request from the Indenture
Trustee to do so and at the Administrator’s expense, the Issuer agrees to take all such lawful action as the Indenture Trustee may, or at the direction of 100% of the Holders of Outstanding Notes, shall, request to compel or secure the
performance and observance by the Seller of its obligations to the 
  

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 Issuer under or in connection with the Pooling Agreement and the Purchase Agreement, by the Servicer of its obligations
to the Issuer under or in connection with the Servicing Agreement, by NFC of its obligations under or in connection with the Lease Purchase Agreement and the Purchase Agreement, by Harco Leasing of its obligations under or in connection with the
Lease Purchase Agreement, any other party to a Titling Trust Document of its obligation under or in connection with such Titling Trust Document or by any obligor under the Interest Rate Swap of its obligations under or in accordance with the
Interest Rate Swap in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges lawfully available to the Issuer under or in connection with the Pooling Agreement, the Servicing Agreement, the Purchase
Agreement, the Lease Purchase Agreement, the Titling Trust Documents and the Interest Rate Swap to the extent and in the manner directed by the Indenture Trustee, including the transmission of notices of default on the part of the Seller, the
Servicer, NFC, Harco Leasing, any other party to a Titling Trust Document or any obligor under the Interest Rate Swap thereunder and the institution of legal or administrative actions or proceedings to compel or secure performance by the Seller, the
Servicer, NFC Harco Leasing, any other Party to a Titling Trust Document or any obligor under the Interest Rate Swap of each of their respective obligations under the Pooling Agreement, the Servicing Agreement, the Purchase Agreement, the Lease
Purchase Agreement, the Titling Trust Documents and the Interest Rate Swap. Notwithstanding the foregoing, the Indenture Trustee shall not have a duty to monitor the performance or observance of such obligations. 
 (b) If an Event of Default has occurred and is continuing, the Indenture Trustee shall, at the direction (which direction shall be in writing or by
telephone (confirmed in writing promptly thereafter)) of the Funding Agent, exercise all rights, remedies, powers, privileges and claims of the Issuer against the Seller under or in connection with the Pooling Agreement and the Purchase Agreement,
the Servicer under or in connection with the Servicing Agreement, NFC under or in connection with the Lease Purchase Agreement and the Purchase Agreement, Harco Leasing under or in connection with the Lease Purchase Agreement, any party to a Titling
Trust Document under or in connection with such Titling Trust Document, or any obligor under the Interest Rate Swap, including the right or power to take any action to compel or secure performance or observance by the Seller, the Servicer, NFC,
Harco Leasing or such party of each of their obligations to the Issuer thereunder and to give any consent, request, notice, direction, approval, extension or waiver under the Pooling Agreement, the Servicing Agreement, the Purchase Agreement, the
Lease Purchase Agreement, the Titling Trust Documents and the Interest Rate Swap, and any right of the Issuer to take such action shall be suspended. 
 ARTICLE VI 
 THE INDENTURE TRUSTEE 
 Section 6.1 Duties of Indenture Trustee. 
 (a) If an Event of Default has occurred and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
  

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 (b) Except during the continuance of an Event of Default: 
 (i) the Indenture Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture and the
Servicing Agreement and no implied covenants or obligations shall be read into this Indenture, the Servicing Agreement or any other Basic Document against the Indenture Trustee; and 
 (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of this Indenture; provided, however, that the Indenture Trustee shall examine the
certificates and opinions to determine whether or not they conform to any applicable requirements of this Indenture; provided, further, that the Indenture Trustee shall not be responsible for the accuracy or content of any such
certificates or opinions and shall have no obligation to verify information or recompute or verify any numerical information provided to it in any such certificates or opinions. 
 (c) The Indenture Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful
misconduct, except that: 
 (i) this Section 6.1(c) does not limit the effect of Section 6.1(b);

 (ii) the Indenture Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer
unless it is proved that the Indenture Trustee was negligent in ascertaining the pertinent facts; and 
 (iii) the Indenture
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 5.11. 
 (d) The Indenture Trustee shall not be liable for interest on any money received by it except as the Indenture Trustee may agree in writing with the
Issuer. 
 (e) Money held in trust by the Indenture Trustee need not be segregated from other funds except to the extent required by law or
the terms of this Indenture or the Servicing Agreement. 
 (f) No provision of this Indenture shall require the Indenture Trustee to expend
or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds to believe that repayments of such funds or
adequate indemnity against such risk or liability is not reasonably assured to it. 
 (g) The Indenture Trustee shall reimburse the Seller
and any director, officer, employee or agent of the Seller for any contractual damages, liability or expense incurred by reason of the Indenture Trustee’s willful misfeasance, bad faith or gross negligence (except errors in judgment) in the
performance of its duties under any of the Further Transfer and Servicing Agreements to which it is a party, or by reason of reckless disregard of its obligations and duties under any of the Further Transfer and Servicing Agreements to which it is a
party. 
  

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 (h) Every provision of this Indenture relating to the Indenture Trustee shall be subject to the
provisions of this Section 6.1. 
 Section 6.2 Rights of Indenture Trustee. 
 (a) The Indenture Trustee may rely on any document believed by it to be genuine and to have been signed or presented by the proper Person. The Indenture
Trustee need not investigate any fact or matter stated in the document. 
 (b) Before the Indenture Trustee acts or refrains from acting, it
may require an Officer’s Certificate or an Opinion of Counsel that such action or omission is required or permissible hereunder. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on
such Officer’s Certificate or Opinion of Counsel. 
 (c) The Indenture Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee, and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of, or for the supervision of, any such
agent, attorney, custodian or nominee appointed with due care by it hereunder. 
 (d) The Indenture Trustee shall not be liable for any
action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers; provided, however, that the Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad
faith. 
 (e) The Indenture Trustee may consult with counsel, and the advice or opinion of counsel with respect to legal matters relating to
this Indenture and the Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel.

 (f) Neither the Indenture Trustee nor any of its directors, officers or employees shall be liable for any action taken or omitted with
the consent or at the direction of a majority of the Holders of the Outstanding Notes or the Funding Agent. 
 (g) The Indenture Trustee
shall not be deemed to have knowledge or notice of the occurrence of any Default or an Event of Default unless it has received written notice from the Funding Agent, the Servicer or the Issuer stating that a Default or an Event of Default has
occurred hereunder and describing such Default or Event of Default. 
 Section 6.3 Indenture Trustee May Own Notes. The Indenture
Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer, the Servicer or any of their respective Affiliates with the same rights it would have if it were not Indenture Trustee;
provided, however, that the Indenture Trustee shall comply with Sections 6.10 and 6.11. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with like rights. 
  

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 Section 6.4 Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the
Issuer in the Indenture or in any document issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of authentication. 
 Section 6.5 Notice of Defaults. If a Default occurs and is continuing and if it is known to a Responsible Officer of the Indenture Trustee,
the Indenture Trustee shall mail to the Funding Agent notice of the Default within one (1) Business Day after such Responsible Officer obtained actual knowledge of such Default. Except in the case of a Default in payment of principal of or
interest on any Note, the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Noteholders. 
 Section 6.6 Reports by Indenture Trustee to Holders. The Indenture Trustee shall deliver to the Funding Agent and each Noteholder the
information and documents set forth in Article VII, and, in addition, all such information with respect to the Notes as may be required, as specified by the Servicer, to enable such Holder to prepare its federal and state income tax returns.

 Section 6.7 Compensation; Indemnity. 
 (a) The Issuer shall cause the Servicer pursuant to the Servicing Agreement to pay to the Indenture Trustee from time to time such compensation for its services as shall be agreed upon in writing. The Indenture
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Issuer shall cause the Servicer pursuant to the Servicing Agreement to reimburse the Indenture Trustee for all reasonable out-of-pocket
expenses incurred or made by it, including costs of collection, in addition to the compensation for its services. Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s
agents, counsel, accountants and experts. The Issuer shall cause the Servicer pursuant to the Servicing Agreement to indemnify the Indenture Trustee in accordance with Section 6.05 of the Servicing Agreement. 
 (b) The Issuer’s obligations to the Indenture Trustee pursuant to this Section 6.7 shall survive the discharge of this Indenture. When
the Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.1(e) or (f) the expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other
applicable federal or state bankruptcy, insolvency or similar law. 
 Section 6.8 Replacement of Indenture Trustee. 

(a) The Indenture Trustee may at any time give notice of its intent to resign by so notifying the Issuer; provided, however, that no
such resignation shall become effective and the Indenture Trustee shall not resign prior to the time set forth in Section 6.8(c). 
  

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 The Holders of a majority in Outstanding Amount of the Controlling Class may remove the Indenture Trustee by so notifying
the Indenture Trustee and may appoint a successor Indenture Trustee. Such resignation or removal shall become effective in accordance with Section 6.8(c). The Issuer shall remove the Indenture Trustee if: 
 (i) the Indenture Trustee fails to comply with Section 6.11; 
 (ii) the Indenture Trustee is adjudged bankrupt or insolvent; 
 (iii) a receiver or other public officer takes charge of the Indenture Trustee or its property; or 
 (iv) the Indenture Trustee otherwise becomes incapable of acting. 
 (b) If the Indenture Trustee gives notice of its intent to resign or is removed or if a vacancy exists in the office of the Indenture Trustee for any
reason (the Indenture Trustee in such event being referred to herein as the retiring Indenture Trustee), the Issuer shall promptly appoint and designate a successor Indenture Trustee. 
 (c) A successor Indenture Trustee shall deliver a written acceptance of its appointment and designation to the retiring Indenture Trustee and to the
Issuer. Thereupon the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor
Indenture Trustee shall mail a notice of its succession to Noteholders and to the Funding Agent. The retiring Indenture Trustee shall promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee. 
 (d) If a successor Indenture Trustee does not take office within 90 days after the retiring Indenture Trustee gives notice of its intent to resign or is
removed, the retiring Indenture Trustee, the Issuer or the Holders of a majority of the Outstanding Amount of the Controlling Class may petition any court of competent jurisdiction for the appointment and designation of a successor Indenture
Trustee. 
 (e) If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any court of competent
jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee. 
 (f) Notwithstanding the
replacement of the Indenture Trustee pursuant to this Section 6.8, the Issuer’s obligations under Section 6.7 and the Servicer’s corresponding obligations under the Servicing Agreement shall continue for the benefit
of the retiring Indenture Trustee. 
 Section 6.9 Merger or Consolidation of Indenture Trustee. 
 (a) Any Person into which the Indenture Trustee may be merged or with which it may be consolidated, or any Person resulting from any merger or
consolidation to which the Indenture Trustee shall be a party, or any corporation succeeding to the corporate trust business of the Indenture Trustee, shall be the successor of the Indenture Trustee under this 
  

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 Indenture; provided, however, that such Person shall be eligible under the provisions of
Section 6.11, without the execution or filing of any instrument or any further act on the part of any of the parties to this Indenture, anything in this Indenture to the contrary notwithstanding. Following such merger or consolidation,
the successor Indenture Trustee shall mail a notice of such merger or consolidation to the Funding Agent. 
 (b) If at the time such
successor or successors by merger or consolidation to the Indenture Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may
adopt the certificate of authentication of any predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Indenture Trustee may authenticate such
Notes either in the name of any predecessor hereunder or in the name of the successor to the Indenture Trustee. In all such cases such certificate of authentication shall have the same full force as is provided anywhere in the Notes or herein with
respect to the certificate of authentication of the Indenture Trustee. 
 Section 6.10 Appointment of Co-Indenture Trustee or
Separate Indenture Trustee. 
 (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any
legal requirement of any jurisdiction in which any part of the Collateral or any Financed Vehicle may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to appoint one or more Persons to
act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Collateral, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders and (only to the extent expressly
provided herein) the Certificateholders, such title to the Collateral, or any part hereof, and, subject to the other provisions of this Section 6.10, such powers, duties, obligations, rights and trusts as the Indenture Trustee may
consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 and no notice to Noteholders of the appointment of any co-trustee
or separate trustee shall be required under Section 6.8. 
 (b) Every separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and conditions: 
 (i) all rights, powers, duties
and obligations conferred or imposed upon the Indenture Trustee shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or
co-trustee is not authorized to act separately without the Indenture Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the Indenture Trustee shall be
incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Collateral or any portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the direction of the Indenture Trustee; 
  

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 (ii) no trustee hereunder shall be personally liable by reason of any act or omission of
any other trustee hereunder; and 
 (iii) the Indenture Trustee may at any time accept the resignation of or remove any
separate trustee or co-trustee. 
 (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to have been
given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of this Article VI. Each
separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as may be provided
therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such instrument shall
be filed with the Indenture Trustee. 
 (d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its agent
or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of
acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 
 Section 6.11 Eligibility; Disqualification. The Indenture Trustee shall have a combined capital and surplus of at least $50,000,000 as set
forth in its most recent published annual report of condition and (unless waived by the Funding Agent) it shall have a long term unsecured debt rating of Baa3 or better by Moody’s. 
 Section 6.12 [Reserved]. 
 Section 6.13 Representations and Warranties of Indenture Trustee. The Indenture Trustee represents and warrants as of the Closing Date that: 
 (a) the Indenture Trustee is a national banking association duly organized, validly existing and in good standing under the laws of the United States and the eligibility requirements set forth in
Section 6.11 are satisfied with respect to the Indenture Trustee; 
 (b) the Indenture Trustee has full power, authority and
legal right to execute, deliver and perform this Indenture, and has taken all necessary action to authorize the execution, delivery and performance by it of this Indenture; 
 (c) the execution, delivery and performance by the Indenture Trustee of this Indenture (i) shall not violate any provision of any law or regulation
governing the banking and trust powers of the Indenture Trustee or any order, writ, judgment or decree of any court, arbitrator, or governmental authority applicable to the Indenture Trustee or any of its 
  

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 assets, (ii) shall not violate any provision of the corporate charter or by-laws of the Indenture Trustee or
(iii) shall not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or imposition of any lien on any properties included in the Collateral pursuant to the provisions of
any mortgage, indenture, contract, agreement or other undertaking to which it is a party, which violation, default or lien could reasonably be expected to have a materially adverse effect on the Indenture Trustee’s performance or ability to
perform its duties under this Indenture or on the transactions contemplated in this Indenture; 
 (d) the execution, delivery and
performance by the Indenture Trustee of this Indenture shall not require the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action in respect of, any governmental authority
or agency regulating the banking and corporate trust activities of the Indenture Trustee; and 
 (e) this Indenture has been duly executed
and delivered by the Indenture Trustee and constitutes the legal, valid and binding agreement of the Indenture Trustee, enforceable in accordance with its terms. 
 Section 6.14 Indenture Trustee May Enforce Claims Without Possession of Notes. All rights of action and claims under this Indenture or the Notes may be prosecuted and enforced by the Indenture Trustee
without the possession of any of the Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Indenture Trustee shall be brought in its own name as Indenture Trustee. Any recovery of judgment
shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee, its agents and counsel, be for the ratable benefit of the Noteholders and (only to the extent expressly provided
herein) the Certificateholders in respect of which such judgment has been obtained. 
 Section 6.15 Suit for Enforcement. If an
Event of Default shall occur and be continuing, the Indenture Trustee in its discretion may, subject to the provisions of Section 6.1, proceed to protect and enforce its rights and the rights of the Noteholders under this Indenture by a
Proceeding whether for the specific performance of any covenant or agreement contained in this Indenture or in aid of the execution of any power granted in this Indenture or for the enforcement of any other legal, equitable or other remedy as the
Indenture Trustee, being advised by counsel, shall deem most effectual to protect and enforce any of the rights of the Indenture Trustee or the Noteholders. 
 Section 6.16 Rights of Agent to Direct Indenture Trustee. The Funding Agent, on behalf of the Holders of Notes, shall have the right to direct in writing the time, method and place of conducting any
Proceeding for any remedy available to the Indenture Trustee or exercising any trust or power conferred on the Indenture Trustee; provided, however, that subject to Section 6.1, the Indenture Trustee shall have the right to decline to
follow any such direction if the Indenture Trustee being advised by counsel determines that the action so directed may not lawfully be taken, or if the Indenture Trustee in good faith shall, by a Responsible Officer, determine that the proceedings
so directed would be illegal or subject it to personal liability or be unduly prejudicial to the rights of Noteholders not parties to such direction; and provided, 
  

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 further, that nothing in this Indenture shall impair the right of the Indenture Trustee to take any action deemed proper
by the Indenture Trustee and which is not inconsistent with such direction by the Funding Agent. 
 ARTICLE VII 
 NOTEHOLDERS’ LISTS AND REPORTS 
 Section 7.1 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders. The Issuer shall furnish or cause to be furnished by the Servicer to the Indenture Trustee (a) not more than five days before each
Distribution Date, a list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of the Holders of Notes as of the close of business on the Record Date, and (b) at such other times as the Indenture Trustee may
request in writing, within 14 days after receipt by the Issuer of any such request, a list of similar form and content as of a date not more than 10 days prior to the time such list is furnished; provided, however, that so long as the Indenture
Trustee is the Note Registrar, no such list shall be required to be furnished. 
 Section 7.2 Preservation of Information,
Communications to Noteholders. The Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of the Holders of Notes contained in the most recent list furnished to the Indenture Trustee as
provided in Section 7.1 and the names and addresses of Holders of Notes received by the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such
Section 7.1 upon receipt of a new list so furnished. 
 Section 7.3 [Reserved]. 
 Section 7.4 [Reserved]. 
 ARTICLE
VIII 
 ACCOUNTS, DISBURSEMENTS AND RELEASES 
 Section 8.1 Collection of Money. Except as otherwise expressly provided herein or in the other Basic Documents, the Indenture Trustee may demand payment or delivery of, and shall receive and collect,
directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The Indenture Trustee shall apply all such money
received by it as provided in this Indenture and the Servicing Agreement. Except as otherwise expressly provided in this Indenture or in Article II of the Servicing Agreement, if any default occurs in the making of any payment or performance under
any agreement or instrument that is part of the Collateral, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance, including the institution and prosecution of appropriate Proceedings. Any such
action shall be without prejudice to any right to claim an Event of Default under this Indenture and any right to proceed thereafter as provided in Article V. 
 Section 8.2 Designated Accounts; Payments. 
 (a) On or before each Determination Date, with
respect to the preceding Monthly Period and the related Distribution Date, the Servicer shall calculate the 
  

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 Collected Amount, the Total Available Amount, the Total Servicing Fee, the Noteholders’ Interest Distributable
Amount, the Reserve Account Deposit Amount, the net amount, if any, payable by or to the Trust under the Interest Rate Swap of termination payments, the Principal Distribution Amount and of other payments other than termination payments and all
other amounts required to determine the amounts to be deposited in or paid from each of the Collection Account, the Note Distribution Account, the Certificate Distribution Account and the Reserve Account on the next succeeding Distribution Date (or,
in the case of payments due under the Interest Rate Swap, if any, on the Business Day preceding the Distribution Date) and supply such information to the Issuer and the Indenture Trustee. 
 (b) On or before each Transfer Date, the Indenture Trustee shall cause to be made, to the extent funds are available therefor, the following
withdrawals, deposits, transfers and distributions in the amounts set forth in the Servicer’s Certificate delivered to the Indenture Trustee pursuant to Section 2.17 of the Servicing Agreement: 
 (i) from the Collection Account to the Servicer, in immediately available funds, reimbursement of Outstanding Monthly Advances pursuant
to Section 2.14 of the Servicing Agreement, payments of Liquidation Expenses with respect to Receivables which became Liquidating Receivables during the related Monthly Period pursuant to Section 2.04 of the Servicing
Agreement and any unpaid Liquidation Expenses from prior periods; and 
 (ii) from the Reserve Account to the Collection
Account, the lesser of (A) the amount of cash or other immediately available funds therein on the day preceding such Distribution Date and (B) the amount, if any, by which (I) the amount required to be paid pursuant to
Section 8.2(c)(i) through (iv) exceeds (II) the Available Amount (excluding funds from the Reserve Account) for such Distribution Date. 
 (c) Before 12:00 noon, New York City time, on each Transfer Date, the Indenture Trustee (based on the information contained in the Servicer’s Certificate delivered to the Indenture Trustee pursuant to
Section 2.17 of the Servicing Agreement) shall make the following distributions from the Collection Account (after the withdrawals, deposits and transfers specified in Section 8.2(b) have been made) in the following order of
priority: 
 (i) first, pro rata based upon the aggregate amount payable thereto to the extent of the Total Available Amount,
to the Indenture Trustee, the Owner Trustee and the Backup Servicer, any fees due and payable to such parties to the extent unpaid by the Servicer; 
 (ii) second, to the Servicer, to the extent of the Total Available Amount (as such amount has been reduced by the distributions described in clause (c)(i) above), the Total Servicing Fee; 
 (iii) third, to the Swap Counterparty, to the extent of the Total Available Amount (as such amount has been reduced by the distributions
described in clauses (c)(i) and (ii) above), the net amount, if any, payable by the Issuer under the Interest Rate Swap (exclusive of payments due as a result of the occurrence of an Early Termination Date under the Interest Rate Swap);

  

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 (iv) fourth, to the Note Distribution Account, to the extent of the Total Available
Amount (as such amount has been reduced by the distributions described in clauses (c)(i) through (iii) above), the Noteholders’ Interest Distributable Amount and fees payable to the Noteholders under the Fee Letter; 
 (v) fifth, to the Reserve Account, to the extent of the Total Available Amount (as such amount has been reduced by the distributions
described in clauses (c)(i) through (iv) above), the amount by which the Specified Reserve Account Balance for such Distribution Date exceeds the amount on deposit in the Reserve Account on such Distribution Date; 
 (vi) sixth, pro rata based upon the aggregate amount payable thereto to the extent of the Total Available Amount (as such amount has been
reduced by the distributions described in clauses (c)(i) through (v) above) to (1) the Note Distribution Account, the Principal Distribution Amount, and (2) the Swap Counterpary, the net amount, if any, payable by the Issuer under the
Interest Rate Swap as a result of the occurrence of an Early Termination Date under the Interest Rate Swap; 
 (vii) seventh,
to the Funding Agent, to the extent of the Total Available Amount (as such amount as been reduced by the distributions described in clauses (c)(i) through (vi) above), the Other Obligations then due and payable in accordance with the Note
Purchase Agreement; and 
 (viii) eighth, to the Owner Trustee for deposit into the Certificate Distribution Account for
distribution to the Certificateholders, any portion of the Total Available Amount remaining after the distributions described in clauses (c)(i) through (vii) above. 
 (d) On each Distribution Date, the Indenture Trustee shall distribute all amounts on deposit in the Note Distribution Account, subject to the Certificateholder’s rights under Section 8.6 to Investment
Earnings, to the Noteholders to the extent of amounts due and unpaid on the Notes for principal and interest, in the following amounts, and in the following order of priority: 
 (i) to accrued and unpaid interest and fees on the Notes; provided, however, that if there are not sufficient funds in the
Note Distribution Account to pay the entire amount of accrued and unpaid interest and fees then due on the Notes, the amount in the Note Distribution Account shall be applied to the payment of such interest and fees on each Note pro rata on the
basis of the respective aggregate amount of interest and fees due on each such Notes; and 
 (ii) the Principal Payment
Amount shall be applied on each Distribution Date to reduce the Outstanding Amount of the Notes. 
  

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 Section 8.3 General Provisions Regarding Accounts. 
 (a) Subject to Section 6.1(c), the Indenture Trustee shall not in any way be held liable by reason of any insufficiency in any of the
Designated Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the Indenture Trustee’s failure to make payments on such Eligible Investments issued by the Indenture Trustee, in its
commercial capacity as principal obligor and not as trustee, in accordance with their terms. 
 (b) If (i) the Servicer shall have
failed to give investment directions for any funds on deposit in the Designated Accounts to the Indenture Trustee by 11:00 a.m., New York City time (or such other time as may be agreed by the Servicer and the Indenture Trustee) on any Business Day;
or (ii) a Default shall have occurred and be continuing with respect to the Notes but the Notes shall not have been declared due and payable pursuant to Section 5.2(a), or, if such Notes shall have been declared due and payable
following an Event of Default, but amounts collected or receivable from the Collateral are being applied in accordance with Section 5.5 as if there had not been such a declaration; then the Indenture Trustee shall, to the fullest extent
practicable, invest and reinvest funds in the Designated Accounts in investments described in clause (i)(d) of the definition of Eligible Investments. 
 Section 8.4 Release of Collateral. 
 (a) Subject to the payment of its fees and expenses
pursuant to Section 6.7, the Indenture Trustee may, and when required by the provisions of this Indenture shall, execute instruments to release property in the Collateral from the lien of this Indenture, or convey the Indenture
Trustee’s interest in the same, in a manner and under circumstances that are consistent with the provisions of this Indenture. No party relying upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound
to ascertain the Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies. 
 (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding, all sums due to the Indenture Trustee pursuant to Section 6.7 have been paid, and all amounts owing by the Issuer under the
Interest Rate Swap have been paid, notify the Issuer thereof in writing and upon receipt of an Issuer Request, release any remaining portion of the Collateral that secured the Notes from the lien of this Indenture and release to the Issuer or any
other Person entitled thereto any funds then on deposit in the Note Distribution Account. The Indenture Trustee shall (i) release any remaining portion of the Collateral that secured the Certificates from the lien of this Indenture and
(ii) deposit in the Certificate Distribution Account any funds then on deposit in the Reserve Account or the Collection Account only at such time as (y) there are no Notes Outstanding and (z) all amounts due to the Indenture Trustee
pursuant to Section 6.7 have been paid. 
 Section 8.5 Opinion of Counsel. The Indenture Trustee shall receive at
least seven days’ notice when requested by the Issuer to take any action pursuant to Section 8.4(a), accompanied by copies of any instruments involved, and the Indenture Trustee shall also require as a condition to such action, an
Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee, stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions precedent to the taking of such
action have 
  

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 been complied with and such action shall not materially and adversely impair the security for the Notes or the rights of
the Noteholders in contravention of the provisions of this Indenture; provided, however, that such Opinion of Counsel shall not be required to express an opinion as to the fair value of the Collateral. Counsel rendering any such opinion may rely,
without independent investigation, on the accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in connection with any such action. 
 Section 8.6 Investment Earnings and Supplemental Servicing Fees. All Investment Earnings on funds deposited in the Designated Accounts shall
be deposited into the Collection Account for distribution in accordance with Section 8.2. The Servicer shall be entitled to retain all Supplemental Servicing Fees. To the extent that any such amount shall be held in any account held by
either Trustee, or otherwise established hereunder, such amount will be withdrawn therefrom and paid to the Servicer upon presentation of a certificate signed by a Responsible Officer of the Servicer setting forth, in reasonable detail, the amount
of such Supplemental Servicing Fees. 
 Section 8.7 Net Deposits. At any time that (i) NFC shall be the Servicer and
(ii) the Servicer shall be permitted by Section 2.12 of the Servicing Agreement to remit collections on a basis other than a daily basis, the Indenture Trustee at the written request of the Servicer may make any remittances pursuant
to this Article VIII net of amounts to be distributed by the Indenture Trustee to such remitting party. Nonetheless, the Indenture Trustee shall account for all of the above described remittances and distributions as if the amounts were deposited
and/or transferred separately. 
 Section 8.8 Statements to Securityholders. 
 (a) On each Distribution Date, the Issuer shall include with each distribution to each Certificateholder, and the Indenture Trustee shall make available
on its website (which shall initially be www.etrustee.net) at the time of each distribution to each Noteholder, a statement (which statement shall also be made available on the Indenture Trustee’s website to the Funding Agent and Swap
Counterparty) based on (subject to the last sentence of this paragraph (a)) information in the Servicer’s Certificate furnished pursuant to Section 2.17 of the Servicing Agreement. Each such statement shall set forth the following
information as to the Notes with respect to such Distribution Date or the preceding Monthly Period, as applicable: 
 (i) the
amount of the distribution allocable to interest on or with respect to the Notes; 
 (ii) the Aggregate Receivables Balance
as of the close of business on the last day of such Monthly Period; 
 (iii) the amount of Outstanding Monthly Advances with
respect to all Receivables on such Distribution Date; 
 (iv) the amount of the Total Servicing Fee paid or payable to the
Servicer with respect to the related Monthly Period; 
  

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 (v) the amount of Aggregate Losses for the related Monthly Period; 
 (vi) the Delinquency Percentage and Loss Percentage for the related Monthly Period; 
 (vii) the sum of all Administrative Purchase Payments and all Warranty Payments made for the related Monthly Period; 
 (viii) the amount of the distribution allocable to principal of the Notes; 
 (ix) the Note Principal Balance and the Note Pool Factor for the Notes, each after giving effect to all payments reported under
(viii) above on such date; 
 (x) the amounts, if any, paid to the Servicer or distributed to Noteholders from amounts
on deposit in the Reserve Account; 
 (xi) the Specified Reserve Account Balance and the balance (if any) of the Reserve
Account on such date, after giving effect to distributions, withdrawals, transfers and deposits made on such date, and the change in such balance from that of the prior Distribution Date; and 
 (xii) the net amount, if any, payable by the Issuer under the Interest Rate Swap (other than payments due as a result of the occurrence
of an Early Termination Date under the Interest Rate Swap) and the amount payable by the Issuer under the Interest Rate Swap as a result of the occurrence of an Early Termination Date thereunder. 
 Each amount set forth pursuant to clauses (i), and (viii) above shall be expressed as a dollar amount per $1,000 of initial Note Principal Balance. In lieu of
preparing and delivering a separate statement to Securityholders pursuant to this Section, a Trustee may deliver a copy of the Servicer’s Certificate furnished pursuant to Section 2.17 of the Servicing Agreement. 
 (b) Within the prescribed period of time for tax reporting purposes after the end of each calendar year during the term of this Agreement, the Servicer
shall prepare and execute and the Indenture Trustee and the Owner Trustee shall mail to the Swap Counterparty and each Person who at any time during such calendar year shall have been a holder of Notes or Certificates, respectively, and received any
payments thereon, a statement prepared and supplied by the Servicer containing the amounts set forth in each of clauses (i) and (viii) in paragraph (a) above, for such calendar year or, if such Person shall have been a Securityholder
during a portion of such calendar year and received any payments thereon, for the applicable portion of such year, for the purposes of such Securityholder’s preparation of federal income tax returns. 
 Section 8.9 Designated Accounts. On or prior to the Closing Date, the Issuer shall cause Indenture Trustee to establish and maintain, in the
name of the Indenture Trustee, for the benefit of the Securityholders, the Designated Accounts as provided in Section 2.02 of the Servicing Agreement. 
  

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 Section 8.10 Reserve Account. 
 (a) On the Closing Date, the Seller shall deposit the Reserve Account Initial Deposit into the Reserve Account. The Reserve Account shall be the property
of the Issuer, subject to the rights of the Indenture Trustee in the Reserve Account Property. 
 (b) If the amount on deposit in the
Reserve Account on any Distribution Date (after giving effect to all deposits therein or withdrawals therefrom on such Distribution Date) exceeds the Specified Reserve Account Balance for such Distribution Date, the Indenture Trustee shall, upon
receipt of instruction from the Servicer, deposit into the Certificate Distribution Account an amount equal to any such excess for distribution to the Certificateholders. 
 Section 8.11 [Reserved]. 
 Section 8.12 [Reserved]. 
 Section 8.13 Termination. 
 (a)
[Reserved] 
 (b) Notice of any termination of the Trust shall be given by the Servicer to each Trustee as soon as practicable after the
Servicer has received notice thereof. 
 ARTICLE IX 
 SUPPLEMENTAL INDENTURES 
 Section 9.1 Supplemental Indentures Without Consent of
Noteholders. 
 (a) Without the consent of the Holders of any Notes but with the prior consent of the Funding Agent (which consent shall
not be unreasonably withheld), the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Indenture Trustee, for
any of the following purposes: 
 (i) to correct or amplify the description of any property at any time subject to the lien
of this Indenture, or better to assure, convey and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject additional property to the lien of this Indenture; 
 (ii) to evidence the succession, in compliance with Section 3.11 and the applicable provisions hereof, of another Person to
the Issuer, and the assumption by any such successor of the covenants of the Issuer contained herein and in the Notes; 
 (iii) to add to the covenants of the Issuer for the benefit of the Securityholders, or to surrender any right or power herein conferred upon the Issuer; 
  

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 (iv) to convey, transfer, assign, mortgage or pledge any property to or with the
Indenture Trustee; 
 (v) to cure any ambiguity or to correct or supplement any provision herein or in any supplemental
indenture which may be inconsistent with any other provision herein, in any supplemental indenture or in any other Basic Document; or 
 (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor or additional Indenture Trustee with respect to the Notes and to add to or change any of the provisions of this Indenture as
shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Article VI. 
 (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also without the consent of any of the Noteholders but with prior consent of the Funding Agent (which consent shall not be unreasonably withheld), at any
time and from time to time enter into one or more indentures supplemental hereto for the purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions of, this Indenture or modifying in any manner the rights of
the Noteholders under this Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any Noteholder. 
 (c) Notwithstanding any other provision of this Indenture, if the consent of the Swap Counterparty is required pursuant to the Swap Counterparty Rights
Agreement to enter into a supplemental indenture, any such purported supplemental indenture shall be null and void ab initio unless the Swap Counterparty consents in writing to such supplemental indenture. Any such supplemental indenture shall
include the same requirement of the Swap Counterparty to consent to further supplemental indentures. 
 Section 9.2 Supplemental
Indentures With Consent of Noteholders. 
 (a) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, also may, with
the consent of the Funding Agent and of the Holders of not less than a majority of the Outstanding Amount of the Controlling Class, by Act of such Holders delivered to the Issuer and the Indenture Trustee, enter into an indenture or indentures
supplemental hereto for the purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions of, this Indenture or modifying in any manner the rights of the Noteholders under this Indenture; provided,
however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby: 
 (i) change the due date of any instalment of principal of or interest on any Note, or reduce the principal amount thereof, the interest rate applicable thereto, or the Redemption Price with respect thereto, change any
place of payment where, or the coin or currency in which, any Note or any interest thereon is payable, or impair the right to institute suit for the enforcement of the provisions of this Indenture requiring the application of funds available
therefor, as provided in Article V, to the payment of any such amount due on the Notes on or after the respective due dates thereof (or, in the case of redemption, on or after the Redemption Date); 
  

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 (ii) reduce the percentage of the Outstanding Amount of the Controlling Class, the
consent of the Holders of which is required for (a) any such supplemental indenture, (b) any waiver of compliance with certain provisions of this Indenture, certain defaults hereunder and their consequences as provided for in this
Indenture or (c) any action described in Sections 2.12, 3.7(e), 5.2, 5.6, 5.11, 5.12(a), 6.8, or 6.16; 
 (iii)
modify or alter the provisions of the proviso to the definition of the term “Outstanding”; 
 (iv) reduce the
percentage of the Outstanding Amount of the Notes required to direct the Indenture Trustee to sell or liquidate the Collateral pursuant to Section 5.4 if the proceeds of such sale would be insufficient to pay the principal amount of and
accrued but unpaid interest on the Outstanding Notes; 
 (v) modify any provision of this Section 9.2 to decrease
the required minimum percentage necessary to approve any amendments to any provisions of this Indenture or any of the Basic Documents; 
 (vi) modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of interest or principal due on any Note on any Distribution Date (including the calculation
of any of the individual components of such calculation), or modify or alter the provisions of the Indenture regarding the voting of Notes held by the Issuer, the Seller or any Affiliate of either of them; or 
 (vii) permit the creation of any Lien ranking prior to or on a parity with the lien of this Indenture with respect to any part of the
Collateral or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture on any property at any time subject to the lien of this Indenture or deprive the Holder of any Note of the security afforded by the lien of
this Indenture. 
 (b) The Indenture Trustee may in its reasonable discretion determine whether or not any Notes would be affected (such
that the consent of each Noteholder would be required) by any supplemental indenture proposed pursuant to this Section 9.2 and any such determination shall be conclusive and binding upon all of the Noteholders, whether authenticated and
delivered thereunder before or after the date upon which such supplemental indenture becomes effective. The Indenture Trustee shall not be liable for any such determination made in good faith. 
 (c) It shall be sufficient if an Act of Noteholders approves the substance, but not the form, of any proposed supplemental indenture. 
 (d) Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section 9.2, the
Indenture Trustee shall 
  

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 mail to the Noteholders to which such amendment or supplemental indenture relates a notice setting forth in general terms
the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture. 
 (e) Notwithstanding any other provision of this Indenture, if the consent of the Swap Counterparty is required pursuant to the Swap Counterparty Rights
Agreement to enter into a supplemental indenture, any such purported supplemental indenture shall be null and void ab initio unless the Swap Counterparty consents in writing to such supplemental indenture. Any such supplemental indenture shall
include the same requirement of the Swap Counterparty to consent to further supplemental indentures. 
 Section 9.3 Execution of
Supplemental Indentures. In executing, or permitting the additional trusts created by, any supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and subject to Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and that all
conditions precedent to such execution have been satisfied. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties, liabilities or immunities
under this Indenture or otherwise. 
 Section 9.4 Effect of Supplemental Indenture. Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the respective rights, limitations of rights, obligations, duties,
liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer and the Noteholders shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
 Section 9.5 [Reserved]. 
 Section 9.6 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee as to any matter provided for in
such supplemental indenture. If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by
the Issuer and authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes. 
 ARTICLE X 
 REDEMPTION OF NOTES 
 Section 10.1
Redemption. The Notes are subject to redemption in whole, but not in part, upon the exercise by the Servicer of its option to purchase the Receivables pursuant to 
  

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 Section 4.01 of the Pooling Agreement. The purchase price for the Notes to be redeemed shall be equal to the
applicable Redemption Price therefor, provided the Issuer has available funds sufficient to pay such amount. The Issuer shall furnish the Funding Agent and the Indenture Trustee notice of such redemption. If the Notes are to be redeemed pursuant to
this Section 10.1, the Issuer shall furnish notice thereof to the Indenture Trustee and the Funding Agent not later than 25 days prior to the Redemption Date and the Issuer shall deposit into the Note Distribution Account, before the
Redemption Date, the aggregate Redemption Price of the Notes to be redeemed, whereupon all such Notes shall be due and payable on the Redemption Date. 
 Section 10.2 Form of Redemption Notice. 
 (a) Notice of redemption of the Notes under
Section 10.1 shall be given by the Indenture Trustee by first-class mail, postage prepaid, mailed not less than five days prior to the applicable Redemption Date to the Funding Agent. 
 (b) All notices of redemption shall state: 
 (i) the Redemption Date; 
 (ii) the Redemption Price; and 
 (iii) the place where the Notes are to be surrendered for payment of the Redemption Price (which shall be the Agency Office to be
maintained as provided in Section 3.2). 
 (c) Notice of redemption of the Notes shall be given by the Indenture Trustee in the
name and at the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder of any Note to be redeemed shall not impair or affect the validity of the redemption of any other Note to be redeemed. 
 (d) [Reserved.] 
 Section 10.3
Notes Payable on Redemption Date. The Notes to be redeemed shall, following notice of redemption as required by Section 10.2, on the Redemption Date cease to be Outstanding for purposes of this Indenture and shall thereafter
represent only the right to receive the applicable Redemption Price and (unless the Issuer shall default in the payment of such Redemption Price) no interest shall accrue on such Redemption Price for any period after the date to which accrued
interest is calculated for purposes of calculating such Redemption Price. 
 ARTICLE XI 
 MISCELLANEOUS 
 Section 11.1
Compliance Certificates and Opinions, etc. 
 (a) Upon any application or request by the Issuer to the Indenture Trustee to take any
action under any provision of this Indenture, the Issuer shall furnish to the Indenture Trustee: (i) an Officer’s Certificate stating that all conditions precedent, if any, 
  

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 provided for in this Indenture relating to the proposed action have been complied with, and (ii) an Opinion of
Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by
any provision of this Indenture, no additional certificate or opinion need be furnished. Every certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 
 (i) a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the
definitions herein relating thereto; 
 (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based; 
 (iii) a statement that, in the
judgment of each such signatory, such signatory has made such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 (iv) a statement as to whether, in the opinion of each such signatory, such condition or covenant has been complied with.

 (b) (i) Prior to the deposit with the Indenture Trustee of any Collateral or other property or securities that is to be made the
basis for the release of any property or securities subject to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in Section 11.1(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of each Person signing such certificate as to the fair value (within 60 days of such deposit) to the Issuer of the Collateral or other property or securities to be so deposited.

 (ii) Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or
stating the opinion of any signer thereof as to the matters described in clause (b)(i) above, the Issuer shall also deliver to the Indenture Trustee an Independent Certificate as to the same matters, if the fair value to the Issuer of the securities
to be so deposited and of all other such securities made on the basis of any such withdrawal or release since the commencement of the then current fiscal year of the Issuer, as set forth in the certificates delivered pursuant to clause (b)(i) above
and this clause (b)(ii), is 10% or more of the Outstanding Amount of the Notes, but such a certificate need not be furnished with respect to any securities so deposited if the fair value thereof to the Issuer as set forth in the related
Officer’s Certificate is less than $25,000 or less than one percent of the Outstanding Amount of the Notes. 
 (iii)
Other than with respect to the release of any Warranty Receivables, Administrative Receivables or Liquidating Receivables, whenever any property or securities are to be released from the lien of this Indenture, the Issuer shall 
  

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 also furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of
each Person signing such certificate as to the fair value (within 60 days of such release) of the property or securities proposed to be released and stating that in the opinion of such Person the proposed release will not impair the security under
this Indenture in contravention of the provisions hereof. 
 (iv) Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer’s Certificate certifying or stating the opinion of any signatory thereof as to the matters described in clause (b)(iii) above, the Issuer shall also furnish to the Indenture Trustee an Independent Certificate as to the same
matters if the fair value of the property or securities and of all other property, other than Warranty Receivables, Administrative Receivables and Liquidating Receivables, or securities released from the lien of this Indenture since the commencement
of the then current calendar year, as set forth in the certificates required by clause (b)(iii) above and this clause (b)(iv), equals 10% or more of the Outstanding Amount of the Notes, but such certificate need not be furnished in the case of any
release of property or securities if the fair value thereof as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the then Outstanding Amount of the Notes. 
 (v) Notwithstanding Section 2.9 or any other provision of this Section 11.1, the Issuer may (A) collect,
liquidate, sell or otherwise dispose of Receivables as and to the extent permitted or required by the Basic Documents, and (B) make cash payments out of the Designated Accounts and the Certificate Distribution Account as and to the extent
permitted or required by the Basic Documents. 
 Section 11.2 Form of Documents Delivered to Indenture Trustee. 
 (a) In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all
such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other
such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
 (b)
Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable
care should know, that the certificate or opinion or representations with respect to the matters upon which his certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar
as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Servicer, the Seller, the Issuer or the Administrator, stating that the information with respect to such factual matters is in
the possession of the Servicer, the Seller, the Issuer or the Administrator, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.

  

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 (c) Where any Person is required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
 (d) Whenever in this Indenture, in connection with any application or certificate or report to the Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of the granting of such application, or as
evidence of the Issuer’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such application or at the effective date of such certificate or report (as the case may be), of the facts and
opinions stated in such document shall in such case be conditions precedent to the right of the Issuer to have such application granted or to the sufficiency of such certificate or report. The foregoing shall not, however, be construed to affect the
Indenture Trustee’s right to rely upon the truth and accuracy of any statement or opinion contained in any such document as provided in Article VI. 
 Section 11.3 Acts of Noteholders. 
 (a) Any request, demand, authorization, direction, notice,
consent, waiver or other action provided by this Indenture to be given or taken by Noteholders or the Funding Agent may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by the Noteholders or the Funding
Agent in person or by agents duly appointed in writing; and except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee, and, where it is hereby
expressly required, to the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders or the Funding Agent signing such instrument
or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture Trustee and the
Issuer, if made in the manner provided in this Section 11.3. 
 (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved in any manner that the Indenture Trustee deems sufficient. 
 (c) The ownership of Notes shall be proved
by the Note Register. 
 (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any
Notes (or any one or more predecessor Notes) shall bind the Holder of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be done by the Indenture Trustee or
the Issuer in reliance thereon, whether or not notation of such action is made upon such Note. 
 Section 11.4 Notices, etc., to
Indenture Trustee, Issuer and Agent. Any request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents provided or permitted by this Indenture to be made upon, given or furnished to or filed with the
Indenture Trustee, the Issuer or the Funding Agent under this Indenture shall be made upon, given or furnished to or filed with such party as specified in Appendix B to the Pooling Agreement. 
  

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 Section 11.5 Notices to Noteholders; Waiver. 
 (a) Where this Indenture provides for notice to Noteholders of any condition or event, such notice shall be given as specified in Appendix B to
the Pooling Agreement. 
 (b) Where this Indenture provides for notice in any manner, such notice may be waived in writing by any Person
entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing shall not be a condition precedent
to the validity of any action taken in reliance upon such a waiver. 
 (c) In case, by reason of the suspension of regular mail service as a
result of a strike, work stoppage or similar activity, it shall be impractical to mail notice of any event of Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as
shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient giving of such notice. 
 (d) [Reserved]. 
 Section 11.6 Alternate Payment and Notice Provisions. Notwithstanding any provision of this Indenture or any of the Notes to the contrary,
the Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any Paying Agent to such Holder, that is different from the methods provided for in this Indenture for such
payments or notices. The Issuer shall furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee shall cause payments to be made and notices to be given in accordance with such agreements. 
 Section 11.7 [Reserved]. 
 Section 11.8 Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof. 
 Section 11.9 Successors and Assigns. 
 (a) All covenants and agreements in this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. 
 (b) All covenants and agreements of the Indenture Trustee in this Indenture shall bind its successors and assigns, whether so expressed or not. 
 Section 11.10 Separability. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity,
legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 11.11
Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors 
  

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 hereunder, the Noteholders and (only to the extent expressly provided herein) the Swap Counterparty and the
Certificateholders, any other party secured hereunder and any other Person with an ownership interest in any part of the Collateral, any benefit or any legal or equitable right, remedy or claim under this Indenture. The Swap Counterparty shall be a
third-party beneficiary to this Indenture only to the extent that it has any rights specified herein or rights with respect to this Indenture specified under the Swap Counterparty Rights Agreement. 
 Section 11.12 Legal Holidays. If the date on which any payment is due shall not be a Business Day, then (notwithstanding any other provision
of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on which nominally due, and no interest shall accrue for the period from
and after any such nominal date. 
 Section 11.13 Governing Law. This Indenture shall be construed in accordance with the laws of
the State of Illinois, without reference to its conflict of law provisions. 
 Section 11.14 Counterparts. This Indenture may be
executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
 Section 11.15 Recording of Indenture. If this Indenture is subject to recording in any appropriate public recording offices, such recording
is to be effected by the Issuer and at its expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any other counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture. 
 Section 11.16 No Recourse. No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee
or the Indenture Trustee on the Notes or under this Indenture or any certificate or other writing delivered in connection herewith or therewith, against: 
 (i) the Indenture Trustee or the Owner Trustee in its individual capacity; 
 (ii) any owner
of a beneficial interest in the Issuer; or 
 (iii) any partner, owner, beneficiary, agent, officer, director, employee or
agent of the Indenture Trustee or the Owner Trustee in their individual capacities, any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner
Trustee in their individual capacities (or any of their successors or assigns), except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual
capacities) and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any instalment or call owing to
such entity. For all purposes of this 
  

 - 53 - 

 Indenture, 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 Articles VI, VII and VIII of the Trust Agreement. 
 Section 11.17 No Petition. 
 (a) The Indenture Trustee, by entering into this Indenture, and each Noteholder, by
accepting a Note (or interest therein) issued hereunder, hereby covenant and agree that they shall not, prior to the date which is one year and one day after the termination of this Indenture with respect to the Issuer pursuant to
Section 4.1, acquiesce, petition or otherwise invoke or cause the Seller or the Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Seller or 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 Seller or the Issuer or any substantial part of its property, or ordering
the winding up or liquidation of the affairs of the Seller, or the Issuer. 
 (b) Notwithstanding any prior termination of the Series
2006-ARC Portfolio Supplement, the Indenture Trustee (and each Noteholder by its acceptance of a Note) covenants and agrees that it shall not, prior to the date which is one year and a day after which all obligations under each Permitted Financing
have been paid in full, acquiesce, petition or otherwise invoke, or join any other Person in acquiescing, petitioning or otherwise invoking, against the Titling Trust or any Special Purpose Entity, any proceeding in court or with any governmental
authority for the purpose of (i) commencing or sustaining a case against the Titling Trust or such Special Purpose Entity under any federal or state bankruptcy, insolvency or similar law, or (ii) appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of all or any substantial part of the respective property of the Titling Trust or such Special Purpose Entity, or (iii) ordering the winding up or liquidation of the affairs
of the Titling Trust or such Special Purpose Entity. 
 (c) Except as otherwise provided in the Titling Trust Agreement, as may be amended,
restated and supplemented from time to time, the Indenture Trustee (and each Noteholder by its acceptance of a Note) hereby releases all Claims to the Titling Trust Assets allocated to the General Interest and to each Portfolio Interest other than
the Series 2006-ARC Portfolio Interest whether then or thereafter created and, in the event that such release is not given effect, to fully subordinate all Claims it may be deemed to have against the Titling Trust Assets allocated to the General
Interest and each Portfolio Interest other than the Series 2006-ARC Portfolio Interest whether then or thereafter created. 
 Section 11.18 Inspection. The Issuer agrees that, on reasonable prior notice, it shall permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to examine all the books of account,
records, reports and other papers of the Issuer to make copies and extracts therefrom, to cause such books to be audited by Independent certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the
Issuer’s officers, employees and Independent certified public accountants, all at such reasonable times and as often as may be reasonably requested. The Indenture Trustee shall and shall cause its representatives to hold in confidence all such
information except to the extent disclosure may be required by law (and all reasonable applications for confidential treatment are unavailing) and except to the extent that the Indenture Trustee may reasonably determine that such disclosure is
consistent with its obligations hereunder. 
  

 - 54 - 

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

			
	NAVISTAR FINANCIAL 2006-ARC OWNER TRUST
	
	By: Chase Bank USA, National Association
		
	By:	 	 /s/ John J. Cashin

	Name:	 	John J. Cashin
	Title:	 	Vice President
	
	 LASALLE BANK NATIONAL ASSOCIATION,
 as
Indenture Trustee

		
	By:	 	 /s/ Timothy E. Cutsinger

	Name:	 	Timothy E. Cutsinger
	Title:	 	Assistant Vice President

					
	STATE OF Delaware	 	)	  	
		 	)	  	ss.
	COUNTY OF New Castle	 	)	  	

 BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on this
day personally appeared John J. Cashin, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the Navistar Financial 2006-ARC Owner Trust and that he
executed the same as the act of said statutory trust for the purpose and consideration therein expressed, and in the capacities therein stated. 
 GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 1st day of September, 2006. 
 Notary Public in and for the State
of Delaware. 
  

	
	My commission expires:
	  
  

					
	STATE OF ILLINOIS	 	)	 	
		 	)	 	ss.
	COUNTY OF COOK	 	)	 	

 BEFORE ME, the undersigned authority, a Notary Public in and for said county and state, on this
day personally appeared Timothy E. Cutsinger , known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said LaSalle Bank National Association, a national
banking association, and that said person executed the same as the act of said LaSalle Bank National Association for the purpose and consideration therein stated. 
 GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 1st day of September, 2006. 
 Notary
Public in and for the State of Illinois. 
  

	
	My commission expires:
	  
  

 EXHIBIT A 
 LOCATIONS OF 
 COMPOSITE SCHEDULE OF RECEIVABLES 
 The Composite Schedule of Receivables 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 
 FLOATING RATE ASSET BACKED NOTE 
  

			
		  	 Maximum Net Investment:
 $                1

		
	 No. R-             
	  	

 SEE REVERSE FOR CERTAIN DEFINITIONS 
 THE SECURITIES REPRESENTED BY THIS NOTE WERE ORIGINALLY ISSUED ON SEPTEMBER 1, 2006, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “ACT”), OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM
REGISTRATION THEREUNDER. 
 THIS NOTE (AND INTERESTS THEREIN) ARE ALSO SUBJECT TO THE RESTRICTIONS SET FORTH IN THE INDENTURE
REFERENCED BELOW. 
 THE FUNDED AMOUNT OF THIS NOTE MAY INCREASE AND DECREASE OVER TIME, BUT WILL NOT EXCEED THE MAXIMUM NET
INVESTMENT SHOWN ON THE FACE HEREOF. ACCORDINGLY, THE FUNDED AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
 NAVISTAR FINANCIAL 2006-ARC OWNER TRUST 
 FLOATING RATE ASSET BACKED NOTES 
 NAVISTAR FINANCIAL 2006-ARC OWNER TRUST, a statutory trust organized and existing under the laws of the State of Delaware (herein referred to as the
“Issuer”), for value received, hereby promises to pay to                      the principal sum of
                     DOLLARS
($                    ) payable in accordance with the Indenture, prior to the occurrence of an Event of Default and a declaration that
the Notes are due and payable, on each Distribution Date in an amount equal to the result obtained by multiplying (i) a fraction, the 
  

	1	Denominations of $1,000 and integral multiples thereof. 

  

 B-1 

 numerator of which is the Funded Amount on such Distribution Date and the denominator of which is
$                     by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of principal on the
Notes pursuant to Sections 2.7, 3.1 and 8.2 of the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the Distribution Date in
                     (the “Final Scheduled Distribution Date”). The Issuer shall pay interest on this Note on each
Distribution Date in accordance with the terms of the Indenture. Interest on this Note will accrue for each Distribution Date from and including the Closing Date at the applicable interest rate and will be payable on each Distribution Date. Other
Obligations shall also be paid in connection with this Note pursuant to the terms of the Note Purchase Agreement. Such principal of, interest on and Other Obligations on this Note shall be paid in the manner specified in the Indenture and on the
reverse hereof. 
 The principal of and interest on this Note are payable in such coin or currency of the United States of America which, at
the time of payment, is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid
principal of this Note. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the
same effect as though fully set forth on the face of this Note. 
 Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof or be valid or obligatory for any purpose. 
  

 B-2 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in facsimile, by its
Authorized Officer. 
  

							
	Date: September 1, 2006	 	NAVISTAR FINANCIAL 2006-ARC OWNER TRUST
			
		 	By:	 	CHASE BANK USA, NATIONAL ASSOCIATION
		 		 	not in its individual capacity, but solely as
		 		 	Owner Trustee under the Trust Agreement
				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

 INDENTURE TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Notes designated above and referred to in the within-mentioned Indenture. 
  

			
	LASALLE BANK NATIONAL ASSOCIATION,
	 not in its individual capacity, but solely as

	 Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	

 REVERSE OF NOTE 
 This Note is one of a duly authorized issue of Notes of the Issuer designated as its Floating Rate Asset Backed Notes (herein called the “Notes”), all issued under an Indenture, dated as of September 1,
2006 (the “Closing Date” and such Indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuer and LaSalle Bank National Association, a national banking association, as trustee (the
“Indenture Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations
thereunder of the Issuer, the Indenture Trustee and the Noteholders. The Notes are governed by and subject to all terms of the Indenture (which terms are incorporated herein and made a part hereof), to which Indenture the holder of this Note by
virtue of acceptance hereof assents and by which such holder is bound. All capitalized terms used and not otherwise defined in this Note that are defined in the Indenture, as supplemented or amended, shall have the meanings assigned to them in or
pursuant to the Indenture. 
 The Indenture secures in accordance with the provisions of the Indenture the payment of principal and interest
on, and any other amounts owing in respect of the Notes, equally and ratably without prejudice, priority or distinction, and to secure compliance with the provisions of the Indenture, as provided therein. 
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that no
recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Indenture Trustee or the Owner Trustee in their individual capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the
Indenture Trustee or the Owner Trustee in their individual capacities, any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in their
individual capacities, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacities) and except that any such partner, owner or
beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any instalment or call owing to such entity. 
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture such Noteholder will not, prior to the date which is one year and one day after the termination of this Indenture with respect to the Issuer, acquiesce, petition or otherwise invoke or cause the Seller or the
Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Seller or 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 Seller or the Issuer or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Seller or the Issuer. 

 Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a
Note, unless otherwise required by appropriate taxing authorities, agrees to treat the Notes as indebtedness secured by the Receivables for the purpose of federal income taxes, state and local income and franchise taxes, and any other taxes imposed
upon, measured by or based upon gross or net income. 
 Prior to the due presentment for registration of transfer of this Note, the Issuer,
the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be specified in the Indenture) is registered as the owner hereof
for all purposes, whether or not this Note shall be overdue, and neither the Issuer, the Indenture Trustee nor any such agent shall be affected by notice to the contrary. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Noteholders under the Indenture at any
time by the Issuer with the consent of the Holders of Notes representing a majority of the Outstanding Amount of all the Controlling Class. The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of
the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such
consent or waiver by the Holder of this Note (or any one of more Predecessor Notes) shall be conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the
consent of the Noteholders. 
 The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture.

 The Issuer is permitted by the Indenture, under certain circumstances, to merge or consolidate, subject to the rights of the Indenture
Trustee and the Holders of Notes under the Indenture. 
 The Notes are issuable only in registered form in denominations as provided in the
Indenture, subject to certain limitations therein set forth. 
 This Note and the Indenture shall be construed in accordance with the laws of
the State of Illinois, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws, except that the obligations, rights and
remedies of the Indenture Trustee hereunder shall be determined in accordance with the internal laws of the State of New York. 
 No
reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place and
rate, and in the coin or currency herein prescribed. 

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

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

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

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

					
	 Dated:
	 	_____________________	  	____________________________2
Signature Guaranteed:
	____________________________	  	_____________________________

  

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

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