Document:

EX-10.1

 Exhibit 10.1 

EXECUTION COPY 
  

 
  

NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 

as Issuing Entity 
 and

 CITIBANK, N.A. 

as Indenture Trustee 

SERIES 2019-1 INDENTURE SUPPLEMENT 

dated as of June 19, 2019 

to 
 INDENTURE 

dated as of November 2, 2011 
  

 
  

 TABLE OF CONTENTS 

 

									
	 	 	 	 	 	  	Page	 
		
	ARTICLE I Definitions and Other Provisions of General Application	  	 	1	 
		 	Section 1.01	 	Definitions	  	 	1	 
		
	ARTICLE II The Notes	  	 	22	 
		 	Section 2.01	 	Creation and Designation	  	 	22	 
		 	Section 2.02	 	Form of Delivery; Depository; Denominations	  	 	23	 
		 	Section 2.03	 	Delivery and Payment	  	 	23	 
		 	Section 2.04	 	Reopening	  	 	23	 
		 	Section 2.05	 	Tax Treatment	  	 	23	 
		 	Section 2.06	 	Restrictions on Note Acquisitions	  	 	24	 
		
	ARTICLE III Allocations, Deposits and Payments	  	 	25	 
		 	Section 3.01	 	Series 2019-1 Available Interest Amounts	  	 	25	 
		 	Section 3.02	 	Series 2019-1 Available Principal Amounts	  	 	28	 
		 	Section 3.03	 	Reductions and Reinstatements	  	 	30	 
		 	Section 3.04	 	Payment on the Series 2019-1 Notes	  	 	33	 
		 	Section 3.05	 	Accumulation Period Length and Accumulation Period Commencement Date	  	 	34	 
		 	Section 3.06	 	Final Payment of the Series 2019-1 Notes	  	 	34	 
		 	Section 3.07	 	Netting of Deposits and Payments	  	 	35	 
		 	Section 3.08	 	Calculation Agent; Determination of LIBOR	  	 	35	 
		 	Section 3.09	 	Computation of Interest	  	 	36	 
		 	Section 3.10	 	Accounts	  	 	37	 
		 	Section 3.11	 	Spread Account.	  	 	37	 
		 	Section 3.12	 	Negative Carry Account	  	 	38	 
		 	Section 3.13	 	Principal Funding Account	  	 	39	 
		 	Section 3.14	 	Reports and Statements to Series 2019-1 Noteholders.	  	 	39	 
		
	ARTICLE IV MISCELLANEOUS PROVISIONS	  	 	39	 
		 	Section 4.01	 	Ratification of Indenture	  	 	39	 
		 	Section 4.02	 	Counterparts	  	 	39	 
		 	Section 4.03	 	Governing Law	  	 	39	 
		 	Section 4.04	 	Limitation of Owner Trustee Liability	  	 	40	 
		 	Section 4.05	 	No Registration of the Offered Notes under the Securities Act	  	 	40	 
		 	Section 4.06	 	Retained Notes	  	 	45	 
		 	Section 4.07	 	Consent to Amendments in Backup Servicing Agreement	  	 	47	 
		 	Section 4.08	 	Amendments	  	 	47	 
		 	Section 4.09	 	Compliance with Credit Risk Retention Rules	  	 	47	 
		 	Section 4.10	 	Fitch as Rating Agency	  	 	47	 

  
 i 

 EXHIBITS 
  

			
	EXHIBIT A-1	  	FORM OF SERIES 2019-1 NOTE, CLASS A
		
	EXHIBIT A-2	  	FORM OF SERIES 2019-1 NOTE, CLASS B
		
	EXHIBIT A-3	  	FORM OF SERIES 2019-1 NOTE, CLASS C
		
	EXHIBIT A-4	  	FORM OF SERIES 2019-1 NOTE, CLASS D
		
	EXHIBIT B	  	FORM OF MONTHLY SERVICER AND SETTLEMENT CERTIFICATE

  
 ii 

 This SERIES 2019-1 INDENTURE SUPPLEMENT (this
“Indenture Supplement”), by and between NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II, a statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), and CITIBANK, N.A., a national
banking association, as Indenture Trustee, is made and entered into as of June 19, 2019. 
 Pursuant to this Indenture Supplement, the
Issuing Entity shall create a new Series of Notes and shall specify the principal terms thereof. 
 ARTICLE I 

Definitions and Other Provisions of General Application 

Section 1.01 Definitions. For all purposes of this Indenture Supplement, except as otherwise expressly provided or unless the
context otherwise requires: 
 (1) the capitalized terms used in this Indenture Supplement shall have the meanings assigned to them in this
Article, and include the plural as well as the singular; 
 (2) all other capitalized terms used but not defined herein which are defined in
Part I of Appendix A to the Pooling and Servicing Agreement, either directly or by reference therein, have the meanings assigned to them therein; 

(3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting
principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as are generally
accepted in the United States of America at the date of such computation; 
 (4) all references in this Indenture Supplement to designated
“Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Indenture Supplement. The words “herein,” “hereof” and
“hereunder” and other words of similar import refer to this Indenture Supplement as a whole and not to any particular Article, Section or other subdivision; 

(5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in
the Indenture, the terms and provisions of this Indenture Supplement shall be controlling; 
 (6) except as expressly provided herein, each
capitalized term defined herein shall relate only to the Series 2019-1 Notes and no other Series of Notes issued by the Issuing Entity; and 

(7) “including” and words of similar import shall be deemed to be followed by “without limitation.” 

“Accumulation Period” means the period from and including the Accumulation Period Commencement Date to but excluding the
earlier of (i) the beginning of an Early Redemption Period or (ii) the Series 2019-1 Termination Date. 

 “Accumulation Period Commencement Date” means the date determined by the
Servicer pursuant to Section 3.05; provided, however, that, if on the Specified Accumulation Period Commencement Date or on any date after the Specified Accumulation Period Commencement Date any other outstanding series of
notes issued pursuant to the Indenture shall have entered into an early redemption period as defined for such other series of notes and the Accumulation Period Commencement Date has not occurred, the Accumulation Period Commencement Date shall be
the date that such other outstanding series of notes shall have entered into an early redemption period. 
 “Accumulation Period
Length” means the number of Due Periods (rounded up to the nearest whole number) from the Accumulation Period Commencement Date to the last day of the Due Period immediately preceding the Expected Principal Distribution Date. 

“Aggregate Receivables Balance” means, as of any date of determination, the aggregate principal amount of the Dealer Notes
held by the Issuing Entity as of such date. 
 “Aggregate Trust Balance” means, as of any date of determination, the sum of
the Aggregate Receivables Balance plus the amount on deposit in the Excess Funding Account as of such date. 
 “Alternate Rate
Event” is defined in Section 3.08. 
 “Alternative Rate Trigger” means the occurrence of any of the
following events: 
 (i) the Sponsor determines in its sole discretion that LIBOR has been discontinued or is no longer being published;

 (ii) a public statement is made by or on behalf of the benchmark’s administrator, ICE Benchmark Administration Limited
(“IBA”), including the regulatory authority having authority over IBA, announcing that (x) IBA will cease to provide that LIBOR benchmark, (y) the number of submissions for compiling LIBOR has fallen below the number
required by IBA’s internal policy or (z) LIBOR may no longer be representative or may no longer be used; or 
 (iii) the Sponsor
discontinues origination of Dealer Notes that are indexed to a LIBOR rate or otherwise determines in its sole discretion that LIBOR is no longer an appropriate or reliable benchmark for the Series 2019-1 Notes
or the underlying Dealer Notes; or 
 (iv) LIBOR is not published on the LIBOR 01 Page (or the successor page or screen as may replace that
page or screen or that service) for five consecutive London Business Days. 
 “Calculation Agent” is defined in
Section 3.08. 
 “Cash Collateral Percentage” means, with respect to any Transfer Date, the percentage
equivalent of a fraction equal to (a) the sum of the amount on deposit in the Excess Funding Account and in each of the principal funding accounts with respect to each series of notes issued pursuant to the Indenture over (b) the sum of
(i) the Outstanding Principal Amount of the Series 2019-1 Notes and the outstanding principal amount of each other series of notes issued pursuant 

  
 2 

 
to the Indenture, (ii) the Series 2019-1 Target Overcollateralization Amount and the target overcollateralization amount specified for each other
series of notes issued under the Indenture, and (iii) the Series 2019-1 Required Excess Seller’s Interest and the required excess seller’s interest for each other series of notes issued under
the Indenture. 
 “Class A Interest Rate” means, with respect to any Interest Period, a rate per annum equal to LIBOR, as
determined by the Calculation Agent on the LIBOR Determination Date with respect to such Interest Period, plus 0.64%. 

“Class A Monthly Interest” is defined in Section 3.01. 

“Class A Nominal Liquidation Amount” means, at any time, an amount equal to: 

 

	 	(i)	 the Class A Outstanding Principal Amount; 

 

	 	(ii)	 minus the reductions to the Class A Nominal Liquidation Amount pursuant to
Section 3.03(b) on or prior to such date of determination; 

  

	 	(iii)	 plus the reinstatements of the Class A Nominal Liquidation Amount pursuant to
Section 3.03(d) on or prior to such date of determination; 

  

	 	(iv)	 minus the amount (other than investment earnings) then on deposit in the Series 2019-1 Principal Funding Account (after giving effect to any deposits, allocations, reallocations or withdrawals to be made on that day) up to the amount that would reduce the Class A Nominal Liquidation Amount
to zero; 

 provided, however, the Class A Nominal Liquidation Amount may never be greater than the Class A
Outstanding Principal Amount or less than zero. 
 “Class A Notes” means the $251,545,000 Class A Floating Rate
Dealer Note Asset- Backed Notes, Series 2019-1. 

“Class A Outstanding Principal Amount” equals the aggregate initial outstanding principal amount of the Class A
Notes, minus any principal payments made to holders of the Class A Notes. 
 “Class B Interest Rate”
means, with respect to any Interest Period, a rate per annum equal to LIBOR, as determined by the Calculation Agent on the LIBOR Determination Date with respect to such Interest Period, plus 0.75%. 

“Class B Monthly Interest” is defined in Section 3.01. 

“Class B Nominal Liquidation Amount” means, at any time, an amount equal to: 

 

	 	(i)	 the Class B Outstanding Principal Amount; 

 

	 	(ii)	 minus the reductions to the Class B Nominal Liquidation Amount pursuant to
Section 3.03(b) on or prior to such date of determination; 

  
 3 

	 	(iii)	 plus the reinstatements of the Class B Nominal Liquidation Amount pursuant to
Section 3.03(d) on or prior to such date of determination; 

  

	 	(iv)	 minus the amount (other than investment earnings) then on deposit in the Series 2019-1 Principal Funding Account (after giving effect to any deposits, allocations, reallocations or withdrawals to be made on that day) in excess of the amount allocated to the Class A Nominal Liquidation
Amount up to the amount that would reduce the Class B Nominal Liquidation Amount to zero; 

 provided, however, the
Class B Nominal Liquidation Amount may never be greater than the Class B Outstanding Principal Amount or less than zero. 

“Class B Notes” means the $14,309,000 Class B Floating Rate Dealer Note
Asset-Backed Notes, Series 2019-1. 
 “Class B
Outstanding Principal Amount” equals the aggregate initial outstanding principal amount of the Class B Notes, minus any principal payments made to holders of the Class B Notes. 

“Class C Interest Rate” means, with respect to any Interest Period, a rate per annum equal to LIBOR, as determined by the
Calculation Agent on the LIBOR Determination Date with respect to such Interest Period, plus 0.95%. 
 “Class C Monthly
Interest” is defined in Section 3.01. 
 “Class C Nominal Liquidation Amount” means, at any time,
an amount equal to: 
  

	 	(i)	 the Class C Outstanding Principal Amount, 

 

	 	(ii)	 minus the reductions to the Class C Nominal Liquidation Amount pursuant to
Section 3.03(b) on or prior to such date of determination; 

  

	 	(iii)	 plus the reinstatements of the Class C Nominal Liquidation Amount pursuant to
Section 3.03(d) on or prior to such date of determination; 

  

	 	(iv)	 minus the amount (other than investment earnings) then on deposit in the Series 2019-1 Principal Funding Account (after giving effect to any deposits, allocations, reallocations or withdrawals to be made on that day) in excess of the amount allocated to the Class A Nominal Liquidation
Amount and the Class B Nominal Liquidation Amount up to the amount that would reduce the Class C Nominal Liquidation Amount to zero; 

provided, however, the Class C Nominal Liquidation Amount may never be greater than the Class C Outstanding Principal Amount or less
than zero. 
 “Class C Notes” means the $17,886,000 Class C Floating Rate Dealer Note Asset-Backed Notes, Series 2019-1. 

  
 4 

 “Class C Outstanding Principal Amount” equals the aggregate initial
outstanding principal amount of the Class C Notes, minus any principal payments made to holders of the Class C Notes. 

“Class D Interest Rate” means, with respect to any Interest Period, a rate per annum equal to LIBOR, as determined by
the Calculation Agent on the LIBOR Determination Date with respect to such Interest Period, plus 1.45%. 
 “Class D Monthly
Interest” is defined in Section 3.01. 
 “Class D Nominal Liquidation Amount” means, at any time,
an amount equal to: 
  

	 	(i)	 the Class D Outstanding Principal Amount, 

 

	 	(ii)	 minus the reductions to the Class D Nominal Liquidation Amount pursuant to
Section 3.03(b) on or prior to such date of determination; 

  

	 	(iii)	 plus the reinstatements of the Class D Nominal Liquidation Amount pursuant to
Section 3.03(d) on or prior to such date of determination; 

  

	 	(iv)	 minus the amount (other than investment earnings) then on deposit in the Series 2019-1 Principal Funding Account (after giving effect to any deposits, allocations, reallocations or withdrawals to be made on that day) in excess of the amount allocated to the Class A Nominal Liquidation
Amount, the Class B Nominal Liquidation Amount and the Class C Nominal Liquidation Amount up to the amount that would reduce the Class D Nominal Liquidation Amount to zero; 

provided, however, the Class D Nominal Liquidation Amount may never be greater than the Class D Outstanding Principal Amount or less
than zero. 
 “Class D Notes” means the $16,260,000 Class D Floating Rate Dealer Note Asset- Backed Notes, Series
2019-1. 
 “Class D Outstanding Principal Amount” equals the aggregate initial
outstanding principal amount of the Class D Notes, minus any principal payments made to holders of the Class D Notes. 

“Collateral Amount” means, with respect to the Series 2019-1 Notes, the Series 2019-1 Collateral Amount. 
 “Controlling Class” means, with respect to the Series 2019-1 Notes, the Series 2019-1 Controlling Class. 

“Distribution Date” means the 25th day of each calendar month or, if such day is not a Business Day, the next succeeding
Business Day commencing July 25, 2019. 

  
 5 

 “Early Redemption Events” means, with respect to the Series 2019-1 Notes, each of the following: 
  

	 	(A)	 failure on the part of the Depositor (i) to make any payment, distribution or deposit required under the
Pooling and Servicing Agreement within five Business Days after the date due or (ii) to observe or perform in any material respect any other material covenants or agreements of the Depositor therein, which failure has a material adverse effect
on the Series 2019-1 Noteholders and which continues unremedied for a period of 60 days after written notice of such failure shall have been given to the Depositor by the Indenture Trustee or to the Depositor
and the Indenture Trustee by any Holder of the Series 2019-1 Notes; 

  

	 	(B)	 any representation or warranty made by the Depositor pursuant to the Pooling and Servicing Agreement or any
information contained in the schedule of Dealer Notes delivered thereunder shall prove to have been incorrect in any material respect when made or when delivered, which representation, warranty or schedule, or the circumstances or condition that
caused such representation, warranty or schedule to be incorrect, continues to be incorrect or uncured in any material respect for a period of 60 days after written notice of such incorrectness shall have been given to the Depositor by the Indenture
Trustee or to the Depositor and the Indenture Trustee by any Holder of the Series 2019-1 Notes and as a result of which the interests of the Series 2019-1 Noteholders
are materially and adversely affected; provided, however, that an Early Redemption Event shall not be deemed to occur if the Depositor has repurchased the related Dealer Notes or all such Dealer Notes, if applicable, during such period
in accordance with the provisions of the Pooling and Servicing Agreement; 

  

	 	(C)	 any of the Depositor, Navistar, NIC or NFC shall file a petition commencing a voluntary case under any chapter
of the federal bankruptcy laws; or the Depositor, Navistar, NIC or NFC shall file a petition or answer or consent seeking reorganization, arrangement, adjustment or composition under any other similar applicable federal law, or shall consent to the
filing of any such petition, answer or consent; or the Depositor, Navistar, NIC or NFC shall appoint, or consent to the appointment of, a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in bankruptcy or
insolvency of it or of any substantial part of its property; or the Depositor, Navistar, NIC or NFC shall make an assignment for the benefit of creditors, or shall admit in writing its inability to pay its debts generally as they become due;

  

	 	(D)	 any order for relief against any of the Depositor, Navistar, NIC or NFC shall have been entered by a court
having jurisdiction in the premises under any chapter of the federal bankruptcy laws, and such order shall have continued undischarged or unstayed for a period of 120 days; or a decree or order by a court having jurisdiction in the premises shall
have been entered approving as properly filed a petition seeking reorganization, arrangement, adjustment, or composition of the Depositor, Navistar, NIC or NFC under any other similar applicable federal law, and such decree or order shall have
continued undischarged or unstayed for a period of 120 days; or a decree or order of a court having jurisdiction in the premises for the appointment of a custodian, receiver, liquidator, trustee, assignee, sequestrator or other similar official in
bankruptcy or insolvency of the Depositor, 

  
 6 

	 	
Navistar, NIC or NFC of any substantial part of their property, or for the winding up or liquidation of their affairs, shall have been entered, and such decree or order shall have remained in
force undischarged or unstayed for a period of 120 days; 

  

	 	(E)	 the Depositor shall become legally unable for any reason to transfer Dealer Notes to the Issuing Entity in
accordance with the provisions of the Pooling and Servicing Agreement; 

  

	 	(F)	 on any Transfer Date, after giving effect to allocations to be made on that Transfer Date (including payments
to be made on the related Distribution Date), the Series 2019-1 Target Overcollateralization Amount exceeds the Series 2019-1 Overcollateralization Amount;
provided, however, that if such shortfall was caused by an increase in the Series 2019-1 Target Overcollateralization Amount as a result of the occurrence of an Excess Cash Collateral Event,
there shall be a six month grace period to increase the Series 2019-1 Overcollateralization Amount to the required level; 

 

	 	(G)	 any Servicer Termination Event shall occur (i) which would have a material adverse effect on the Series 2019-1 Noteholders and (ii) for which the Servicer has received a notice of termination; 

  

	 	(H)	 the average Monthly Payment Rate for any three consecutive Due Periods is less than Monthly Payment Rate
Trigger; 

  

	 	(I)	 the Series 2019-1 Outstanding Principal Amount is not repaid by the
Expected Principal Distribution Date; 

  

	 	(J)	 the Issuing Entity becomes an “investment company” within the meaning of the Investment Company Act
of 1940, as amended, and is not exempt from compliance with that Act; 

  

	 	(K)	 the occurrence of an Event of Default under the Indenture; 

 

	 	(L)	 the delivery by the Depositor to the Issuing Entity of a notice stating that the Depositor shall no longer
continue to sell Dealer Notes to the Issuing Entity pursuant to the Pooling and Servicing Agreement commencing on the date specified in such notice; 

  

	 	(M)	 at the end of any Due Period, the Seller’s Interest is reduced to an amount less than the Minimum
Seller’s Interest and the Depositor has failed to assign additional Dealer Notes to the Issuing Entity or deposit cash into the Excess Funding Account, the Series 2019-1 Principal Funding Account or any
other principal funding account with respect to any other series of notes issued pursuant to the Indenture in the amount of such deficiency within ten Business Days following the end of such Due Period; provided, however, that if such
deficiency was caused by an increase in the Minimum Seller’s Interest as a result of the occurrence of an Excess Cash Collateral Event or an excess cash collateral event for any other series of notes issued under the Indenture, there shall be a
six month grace period to increase the Seller’s Interest to the required level; 

  
 7 

	 	(N)	 on any Determination Date, the quotient of (a) the sum of Dealer Note Losses for the related Due Period
and the five immediately preceding Due Periods and (b) the sum of Principal Collections for the related Due Period and the five immediately preceding Due Periods, is greater than or equal to one and a half percent (1.5%); 

 

	 	(O)	 failure on the part of Navistar to make a deposit in the Interest Deposit Account required by the terms of the
Interest Deposit Agreement on or before the date occurring five Business Days after the date such deposit is required by the Interest Deposit Agreement to be made; and 

 

	 	(P)	 upon an increase in the Spread Account Required Amount as a result of the average Monthly Payment Rate for any
three consecutive Due Periods being less than the Monthly Payment Rate Enhancement Trigger, the amount on deposit in the Series 2019-1 Spread Account is less than the Spread Account Required Amount for five
(5) consecutive Business Days. 

 In the case of any event described in clauses (A), (B) or
(G) above, an Early Redemption Event with respect to Series 2019-1 Notes shall be deemed to have occurred only if, after the applicable grace period described in those clauses, if any, either the
Indenture Trustee or Series 2019-1 Noteholders holding Series 2019-1 Notes evidencing more than 50% of the Series 2019-1
Outstanding Principal Amount by written notice to the Depositor, the Servicer, the Issuing Entity and, if given by Series 2019-1 Noteholders, the Indenture Trustee, declare that an Early Redemption Event has
occurred as of the date of that notice. In the case of any Early Redemption Event other than clauses (A), (B) or (G) described above, an Early Redemption Event with respect to the Series
2019-1 Notes shall be deemed to have occurred without any notice or other action on the part of the Indenture Trustee or the Series 2019-1 Noteholders immediately upon the occurrence of that event. 

“Early Redemption Period” means the period from and including the date on which an Early Redemption Event occurs to but
excluding the Series 2019-1 Termination Date. 
 “Eligible Deposit Account” means,
so long as the Series 2019-1 Notes are outstanding, either: 
  

	 	(1)	 a segregated account with an Eligible Institution; or 

 

	 	(2)	 a segregated trust account with the corporate trust department of a depository institution organized under the
laws of the United States or any one of the states thereof (or any domestic branch of a foreign bank), having corporate trust powers and acting as trustee for funds deposited in such account, so long as any of the securities of such depository
institution has a credit rating from each Rating Agency (except with regard to Fitch Ratings, Inc.) in one of its generic rating categories which signifies investment grade and, so long as Fitch Ratings, Inc. is a Series 2019-1 Rating Agency, so long as any of the securities of such depository 

  
 8 

	 	
institution has a long-term unsecured debt rating of A or better by Fitch Ratings, Inc. (if rated by Fitch) or a certificate of deposit rating of F1 or better by Fitch Ratings, Inc. (if rated by
Fitch). 

 “Eligible Institution” means, so long as the Series 2019-1
Notes are outstanding: 
  

	 	(1)	 the corporate trust department of the Indenture Trustee; or 

 

	 	(2)	 a depository institution organized under the laws of the United States or any one of the states thereof, or the
District of Columbia (or a domestic branch of a foreign bank), which at all times (a) has either (A) a long-term unsecured debt rating of A2 or better by Moody’s and of AA- or better by Standard
and Poor’s and, so long as Fitch Ratings, Inc. is a Series 2019-1 Rating Agency, of A or better by Fitch Ratings, Inc. or (B) a certificate of deposit rating of
P-1 by Moody’s and A-1+ by Standard and Poor’s and, so long as Fitch Ratings, Inc. is a Series 2019-1 Rating Agency, of
F1 or better by Fitch Ratings, Inc. and (b) whose deposits are insured by the FDIC. 

 “Excess Available
Interest Amounts” means, with respect to any Due Period, either (i) the portion of Series 2019-1 Available Interest Amounts, if any, available after application pursuant to
Section 3.01(a)(i) through (xii) or (ii) the amounts available to the Series 2019-1 Notes from the Notes of other Series in Excess Interest Sharing Group One that the applicable
Indenture Supplements specify are to be treated as “Excess Available Interest Amounts.” 
 “Excess Available Principal
Amounts” means, with respect to any Business Day, either (i) the sum of (A) the portion of Series 2019-1 Available Principal Amounts, if any, available after application pursuant to
Section 3.02(a)(i) through (vi), plus (B) the amounts withdrawn from the Series 2019-1 Principal Funding Account pursuant to Section 3.13 and treated as
“Excess Available Principal Amounts,” or (ii) the amounts available to the Series 2019-1 Notes from the Notes of other Series in Principal Sharing Group One that the applicable Indenture
Supplements specify are to be treated as “Excess Available Principal Amounts” on the related Business Day. 
 “Excess Cash
Collateral Event” shall be deemed to have occurred and be continuing if for any 18 consecutive Transfer Dates the Cash Collateral Percentage has exceeded the Excess Cash Collateral Trigger; provided, however, that an Excess
Cash Collateral Event shall be deemed to have been cured if subsequent to the occurrence of the Excess Cash Collateral Event the Cash Collateral Percentage is less than Excess Cash Collateral Trigger for six consecutive Transfer Dates. 

“Excess Cash Collateral Trigger” means 50%. 

“Excess Interest Sharing Group One” means Series 2019-1 and each other Series of
Notes specified in the related Indenture Supplement as being included in Excess Interest Sharing Group One. 
 “Expected Principal
Distribution Date” means May 25, 2021. 

  
 9 

 “FATCA” means Sections 1471 through 1474 of the Code, commonly referred to
as the Foreign Account Tax Compliance Act. 
 “FATCA Withholding Tax” means any withholding or deduction pursuant to an
agreement described in Section 1471(b) of the Code or otherwise imposed pursuant to Sections 1471 through 1474 of the Code and any regulations or agreements thereunder or official interpretations thereof or any intergovernmental agreement
between the United States and another jurisdiction facilitating the implantation thereof (or any law implementing such an intergovernmental agreement). 

“Interest Period” means, with respect to any Distribution Date, the period from and including the preceding Distribution Date
to but excluding that Distribution Date, or, in the case of the first Distribution Date, from and including the Issuance Date to but excluding such first Distribution Date. 

“Issuance Date” means June 19, 2019. 

“Legal Final Maturity Date” means May 28, 2024. 

“LIBOR” means the interest rate determined by the Calculation Agent in accordance with the following provisions: 

 

	 	(1)	 On each LIBOR Determination Date, subject to an Alternate Rate Event, LIBOR shall be determined on the basis of
the offered rates for deposits in United States Dollars having a one month maturity, which appear on the LIBOR 01 Page as of 11:00 A.M., London time, on that LIBOR Determination Date. These posted offered rates are for value on the second Business
Day after which dealings in deposits in United States Dollars are transacted in the London interbank market. If at least two of these offered rates appear on the LIBOR 01 Page, the rate for that LIBOR Determination Date shall be the arithmetic mean
(rounded, if necessary, to the nearest one hundred-thousandth of a percent) of these offered rates as determined by the Calculation Agent. If fewer than two offered rates appear, LIBOR for that LIBOR
Determination Date shall be determined as if the parties had specified the rate described in (2) below. 

  

	 	(2)	 On any LIBOR Determination Date, subject to an Alternate Rate Event, on which fewer than two offered rates
appear on the LIBOR 01 Page as specified in (1) above, LIBOR shall be determined on the basis of the rates at which deposits in United States Dollars are offered by the Reference Banks at approximately 11:00 A.M., London time, on that LIBOR
Determination Date to prime banks in the London interbank market, having a one month maturity, those deposits commencing on the second London Business Day immediately following that LIBOR Determination Date and in a principal amount of not less than
U.S. $1,000,000 that is representative for a single transaction in that market at that time. The Calculation Agent shall request the principal London office of each of those Reference Banks to provide a quotation of its rate. If at least two of
those quotations are provided, LIBOR for that LIBOR Determination Date shall be the 

  
 10 

	 	
arithmetic mean (rounded, if necessary, to the nearest one hundred-thousandth of a percent) of those quotations. If fewer than two quotations are provided,
LIBOR for that LIBOR Determination Date shall be the arithmetic mean (rounded, if necessary, to the nearest one hundred-thousandth of a percent) of the rates quoted by three major banks in the City of New York selected by the Calculation Agent at
approximately 11:00 A.M., New York City time, on that LIBOR Determination Date for loans in United States Dollars to leading European banks, having a one month maturity, those loans commencing on the second London Business Day immediately following
that LIBOR Determination Date and in a principal amount of not less than U.S. $1,000,000 that is representative for a single transaction in that market at that time, provided, however, that if the banks in the City of New York selected
as aforesaid by the Calculation Agent are not quoting as mentioned in this sentence, LIBOR with respect to that LIBOR Determination Date shall be LIBOR in effect immediately prior to that LIBOR Determination Date. 

“LIBOR Determination Date” means, for any Interest Period, the date which is two London Business Days prior to the start of
that Interest Period. 
 “London Business Day” means a day that is both a Business Day and a day on which banking
institutions in the City of London, England are not required or authorized by law to be closed. 
 “Mismatch Rate” means
1.06%. 
 “Monthly Payment Rate” means, on any Determination Date, the quotient of (1) the sum of Dealer Note
Collections for the related Due Period and (2) the daily average Aggregate Receivables Balance during the related Due Period. 

“Monthly Payment Rate Enhancement Trigger” means 20%. 

“Monthly Payment Rate Trigger” means 16%. 

“Nominal Liquidation Amount” means, with respect to the Series 2019-1 Notes, the
Series 2019-1 Nominal Liquidation Amount. 
 “Nominal Liquidation Amount Deficit”
means, with respect to the Series 2019-1 Notes as of any Transfer Date, the excess of the aggregate of the reallocations and reductions made pursuant to Section 3.03 on or prior to such Transfer
Date, over the aggregate amount of all reinstatements pursuant to Section 3.03 on or prior to such Transfer Date. 

“Noteholder FATCA Information” means, with respect to any Series 2019-1 Noteholder or
Note Owner of a Series 2019-1 Note, information sufficient to eliminate the imposition of, or determine the amount of, FATCA Withholding Tax. 

“Noteholder Tax Identification Information” means, with respect to any Noteholder or Note Owner, properly completed and
signed tax certifications (generally, in the case of U.S. federal income tax, IRS Form W-9 (or applicable successor form) in the case of a person that is a “United States Person” within the meaning of Section 7701(a)(30) of the Code
or the appropriate IRS Form W-8 (or applicable successor form) in the case of a person that is not a “United States Person” within the meaning of Section 7701(a)(30) of the Code). 

  
 11 

 “Offered Notes” shall mean the Class A Notes, the Class B Notes,
the Class C Notes and the Class D Notes, but excluding any Retained Notes. 
 “Overcollateralization Amount”
means, with respect to the Series 2019-1 Notes, the Series 2019-1 Overcollateralization Amount. 

“Overcollateralization Amount Deficit” means, with respect to the Series 2019-1 Notes
as of any Transfer Date, the excess of the Series 2019-1 Target Overcollateralization Amount as of such Transfer Date over the Series 2019-1 Overcollateralization Amount
as of such Transfer Date. 
 “Plan” means an “employee benefit plan” as defined in Section 3(3) of ERISA
that is subject to the provisions of Title I of ERISA, a “plan” described in Section 4975(e)(1) of the Code that is subject to Section 4975 of the Code, or an entity whose underlying assets include “plan assets” by
reason of investment by an employee benefit plan or plan in such entity. 
 “Pooling and Servicing Agreement” means the
Pooling and Servicing Agreement, dated as of November 2, 2011, among the Depositor, the Servicer and the Issuing Entity, as amended and supplemented from time to time. 

“Principal Sharing Group One” means Series 2019-1 and each other Series specified in
the related Indenture Supplement as being included in Principal Sharing Group One. 
 “Qualified Institutional Buyer” is
defined in Section 4.05(b)(i). 
 “Rating Agency Condition” means, with respect to the Series 2019-1, the Series 2019-1 Rating Agency Condition. 

“Reference Banks” means the principal London offices of Bank of America, N.A. and Deutsche Bank AG. 

“Regulation RR” means the regulations contained in 17 C.F.R. Part 246. 

“Reinstatement Amount” is defined in Section 3.01(a)(viii). 

“Required Negative Carry Account Balance” means (a) for any date during the Revolving Period when funds are on deposit
or to be deposited into the Series 2019-1 Principal Funding Account, the greater of (i) the product of (A) the amount on deposit in the Series 2019-1 Principal
Funding Account (after giving effect to any deposits or withdrawals to be made on such date), (B) the Mismatch Rate, and (C) 1/12 times the number of full months until the Expected Principal Distribution Date and (ii) 0.75% of the amount on deposit
in the Series 2019-1 Principal Funding Account (after giving effect to any deposits or withdrawals to be made on such date) and (b) at all other times, zero. 

“Required Seller’s Percentage” means 0%. 

  
 12 

 “Retained Note” shall mean any Series
2019-1 Note held by the Issuing Entity or a Person that is considered the same Person as the Issuing Entity for U.S. federal income tax purposes until such time as such Series
2019-1 Note is transferred, for U.S. federal income tax purposes, to a Person that is not the Issuing Entity or a Person that is considered the same Person as the Issuing Entity for U.S. federal income tax
purposes in the form of a Global Note in compliance with the provisions of this Indenture Supplement and the Indenture. For the avoidance of doubt, the Depositor has not retained any Series 2019-1 Note. 

“Revolving Period” means the period beginning on the Issuance Date and ending when an Accumulation Period or Early Redemption
Period begins. 
 “Series 2019-1” is defined in Section 2.01. 

“Series 2019-1 Accounts” is defined in Section 3.10(a). 

“Series 2019-1 Additional Available Interest Amounts” means, with respect to any Due
Period and the related Transfer Date, an amount equal to: 
  

	 	(i)	 the Series 2019-1 Subordinated Seller’s Interest Allocated
Interest Amounts for such Due Period. 

 “Series 2019-1 Additional
Available Principal Amounts” means, with respect to any Business Day, an amount equal to: 
  

	 	(i)	 the Series 2019-1 Subordinated Seller’s Interest Allocated
Principal Amounts for such Business Day; 

  

	 	(ii)	 plus, if such Business Day is a Transfer Date, any Series 2019-1
Available Interest Amounts used to reinstate any reduction in the Series 2019-1 Overcollateralization Amount for the related Due Period pursuant to Sections 3.01(a)(viii) and 3.03(c);

  

	 	(iii)	 plus, if such Business Day is a Transfer Date, during the occurrence of an Excess Cash Collateral Event,
any Series 2019-1 Available Interest Amounts which are treated as Series 2019-1 Additional Available Principal Amounts pursuant to Section 3.01(a)(viii); 

 

	 	(iv)	 plus, if such Business Day is a Transfer Date, any funds from the Series
2019-1 Negative Carry Account used to reinstate any reduction in the Series 2019-1 Overcollateralization Amount on that Transfer Date pursuant to
Section 3.12(b). 

 “Series 2019-1 Allocated Dealer Note
Losses” means, with respect to any Due Period and the related Transfer Date, the sum of the Series 2019-1 Noteholder Allocated Dealer Note Losses and the Series
2019-1 Subordinated Seller’s Interest Allocated Dealer Note Losses for such Due Period. 

“Series 2019-1 Allocated Interest Amounts” means, with respect to any Due Period and
the related Transfer Date, the sum of the Series 2019-1 Noteholder Allocated Interest Amounts and the Series 2019-1 Subordinated Seller’s Interest Allocated
Interest Amounts for such Due Period. 

  
 13 

 “Series 2019-1 Allocated Principal
Amounts” means, with respect to any Business Day, the sum of the Series 2019-1 Noteholder Allocated Principal Amounts and the Series 2019-1 Subordinated
Seller’s Interest Allocated Principal Amounts for such Business Day. 
 “Series 2019-1
Available Interest Amounts” means, with respect to any Due Period and the related Transfer Date, the sum of Series 2019-1 Noteholder Available Interest Amounts and Series 2019-1 Additional Available
Interest Amounts for such Due Period. 
 “Series 2019-1 Available Principal
Amounts” means, with respect to any Business Day, the sum of Series 2019-1 Noteholder Available Principal Amounts and Series 2019-1 Additional Available Principal Amounts for such Business Day. 

“Series 2019-1 Backup Servicing Expenses” means, with respect to any Transfer Date,
the product of (a) the Backup Servicing Expenses, multiplied by (b) a fraction (i) the numerator of which is the daily average Series 2019-1 Nominal Liquidation Amount for each day of the
related Due Period and (ii) the denominator of which is the daily average Aggregate Trust Balance for each day of the related Due Period. 

“Series 2019-1 Backup Servicing Fee” means, with respect to any Transfer Date, the
product of (a) 1/12 of the Base Backup Servicing Fee, multiplied by (b) a fraction (i) the numerator of which is the daily average Series 2019-1 Nominal Liquidation Amount for each day of the related
Due Period and (ii) the denominator of which is the daily average Aggregate Trust Balance for each day of the related Due Period. 

“Series 2019-1 Collateral Amount” equals the sum of the Series 2019-1 Nominal Liquidation Amount and the Series 2019-1 Overcollateralization Amount; provided, that for purposes of calculating the Series 2019-1 Noteholder Fixed Allocation Percentage, the Series 2019-1 Subordinated Seller’s Interest Fixed Allocation Percentage, the Series
2019-1 Noteholder Variable Allocation Percentage and the Series 2019-1 Subordinated Seller’s Interest Variable Allocation Percentage and other allocation
percentages related to Series 2019-1, Series 2019-1 shall be deemed to have been outstanding from June 1, 2019 to the Issuance Date, with respect to the allocation of
Principal Collections and Finance Charge Collections and related concepts, with a Series 2019-1 Nominal Liquidation Amount of $300,000,000, a Series 2019-1
Overcollateralization Amount of $25,203,252.03, and a Series 2019-1 Collateral Amount of $325,203,252.03. 

“Series 2019-1 Controlled Accumulation Amount” is equal to (a) the Series 2019-1 Outstanding Principal Amount as of the last day of the Due Period immediately preceding the Accumulation Period Commencement Date, minus the amount on deposit in the Series 2019-1 Principal Funding Account as of the last day of the Due Period immediately preceding the Accumulation Period Commencement Date, divided by (b) the Accumulation Period Length. 

  
 14 

 “Series 2019-1 Controlled Deposit
Amount” for any Due Period occurring during the Accumulation Period means the excess, if any, of: 
  

	 	(i)	 the sum of (x) product of (A) the Series 2019-1 Controlled
Accumulation Amount and (B) the number of Due Periods that have occurred with respect to the Accumulation Period through and including that Due Period (but not in excess of the Accumulation Period Length) and (y) the amount on deposit in
the Series 2019-1 Principal Funding Account as of the last day of the Due Period immediately preceding the Accumulation Period Commencement Date, over 

 

	 	(ii)	 the amount on deposit in the Series 2019-1 Principal Funding Account as
of the last day of the immediately preceding Due Period; 

 provided that notwithstanding the foregoing, the Depositor may, in its
sole discretion, increase the Series 2019-1 Controlled Deposit Amount at any time and from time to time. 

“Series 2019-1 Controlling Class” means the Class A Notes or, if no Class A
Notes are outstanding, the Class B Notes or, if no Class A Notes or Class B Notes are Outstanding, the Class C Notes or, if no Class A Notes, Class B Notes or Class C Notes are Outstanding, the Class D Notes.

 “Series 2019-1 Fixed Allocation Percentage” means, with respect to any Business
Day, subject to the provisions specified in the proviso to the definition of Series 2019-1 Collateral Amount, the percentage equivalent of a fraction never greater than 100% or less than 0% equal to: 

 

	 	(i)	 the numerator of which is the Series 2019-1 Collateral Amount as of
such day or, if the Accumulation Period or an Early Redemption Period has commenced, as of the day prior to the commencement of the Accumulation Period or the Early Redemption Period, as applicable; and 

 

	 	(ii)	 the denominator of which is the greater of (A) the sum of the Collateral Amounts for each Series of Notes
used to calculate the applicable fixed allocation percentage of such Series as of such day and (B) the Aggregate Trust Balance as of last day of the preceding Due Period. 

“Series 2019-1 Interest Funding Account” means the account designated as such and
established pursuant to Section 3.10(a). 
 “Series 2019-1 Investment
Income” means with respect to any Due Period and the Series 2019-1 Notes, the product of the Series 2019-1 Variable Allocation Percentage for such Due Period
and Investment Income for such Due Period. 
 “Series 2019-1 Monthly Interest”
means the sum of Class A Monthly Interest, Class B Monthly Interest, Class C Monthly Interest and Class D Monthly Interest. 

“Series 2019-1 Negative Carry Account” means the account designated as such and
established pursuant to Section 3.10(a). 

  
 15 

 “Series 2019-1 Nominal Liquidation
Amount” means, with respect to any Transfer Date, the sum of the Class A Nominal Liquidation Amount, the Class B Nominal Liquidation Amount, the Class C Nominal Liquidation Amount and the Class D Nominal Liquidation
Amount, each as of such Transfer Date; provided, that for purposes of calculating the Series 2019-1 Noteholder Fixed Allocation Percentage, the Series 2019-1
Subordinated Seller’s Interest Fixed Allocation Percentage, the Series 2019-1 Noteholder Variable Allocation Percentage and the Series 2019-1 Subordinated
Seller’s Interest Variable Allocation Percentage and other allocation percentages related to Series 2019-1, Series 2019-1 shall be deemed to have been outstanding
from June 1, 2019 to the Issuance Date, with respect to the allocation of Principal Collections and Finance Charge Collections and related concepts, with a Series 2019-1 Nominal Liquidation Amount of
$300,000,000. 
 “Series 2019-1 Noteholder” means a Person in whose name a Series 2019-1 Note is registered in the Note Register. 
 “Series
2019-1 Noteholder Allocated Dealer Note Losses” means, with respect to any Due Period and the related Transfer Date, the product of the Series 2019-1 Noteholder
Variable Allocation Percentage for such Due Period and Dealer Note Losses for such Due Period. 
 “Series 2019-1 Noteholder Allocated Interest Amounts” means, with respect to any Due Period and the related Transfer Date, the product of the Series 2019-1 Noteholder
Variable Allocation Percentage for such Due Period and Finance Charge Collections for such Due Period. 
 “Series 2019-1 Noteholder Allocated Principal Amounts” means, with respect to any Business Day, the product of the Series 2019-1 Noteholder Fixed Allocation Percentage for
such Business Day and Principal Collections for such Business Day. 
 “Series 2019-1
Noteholder Available Interest Amounts” means, with respect to any Due Period and the related Transfer Date, an amount equal to: 
  

	 	(i)	 the Series 2019-1 Noteholder Allocated Interest Amounts for such Due
Period; 

  

	 	(ii)	 plus any net investment earnings for such Due Period on funds in the Series 2019-1 Interest Funding
Account, the Series 2019-1 Principal Funding Account, the Series 2019-1 Negative Carry Account and the Series 2019-1 Spread
Account; 

  

	 	(iii)	 plus the Series 2019-1 Investment Income; 

 

	 	(iv)	 plus if the amount of interest at the Weighted Average Note Rate on funds in the Series 2019-1 Principal Funding Account exceeds the sum of the net investment earnings described in clause (ii) above and the Series 2019-1 Investment Income described in
clause (iii) above, the amount of this excess shall be withdrawn from the Series 2019-1 Negative Carry Account to the extent of funds on deposit in the Series
2019-1 Negative Carry Account and applied pursuant to the terms of this Indenture Supplement; 

  

	 	(v)	 plus any Excess Available Interest Amounts allocated to Series
2019-1 for such Due Period pursuant to Section 3.01(b); 

  
 16 

	 	(vi)	 plus any amount withdrawn from the Series 2019-1 Spread Account
and treated as Series 2019-1 Noteholder Available Interest Amounts pursuant to Sections 3.01(c)(i) and (ii). 

“Series 2019-1 Noteholder Available Principal Amounts” means, with respect to any
Business Day, an amount equal to: 
  

	 	(i)	 the Series 2019-1 Noteholder Allocated Principal Amounts for such
Business Day; 

  

	 	(ii)	 plus, if such Business Day is a Transfer Date, any Series 2019-1
Available Interest Amounts used to fund the Series 2019-1 Noteholder Allocated Dealer Note Losses for the related Due Period pursuant to Section 3.01(a)(vii); 

 

	 	(iii)	 plus, if such Business Day is a Transfer Date, any Series 2019-1
Available Interest Amounts used to reinstate any reduction in the Series 2019-1 Nominal Liquidation Amount for the related Due Period pursuant to Sections 3.01(a)(viii) and 3.03(c);

  

	 	(iv)	 plus any Excess Available Principal Amounts allocated to Series
2019-1 for such Business Day pursuant to Section 3.02(b); 

  

	 	(v)	 [reserved]; 

  

	 	(vi)	 plus, if such Business Day is a Transfer Date, any funds from the Series
2019-1 Negative Carry Account used to reinstate any reduction in the Series 2019-1 Nominal Liquidation Amount on that Transfer Date pursuant to
Section 3.12(b); 

  

	 	(vii)	 plus, if such Business Day is a Transfer Date and if the Series
2019-1 Notes are in an Early Redemption Period, any Series 2019-1 Available Interest Amounts treated as Series 2019-1 Noteholder
Available Principal Amounts pursuant to Section 3.01(a)(xii). 

 “Series 2019-1 Noteholder Fixed Allocation Percentage” means, with respect to any Business Day, subject to the provisions specified in the proviso to the definition of Series
2019-1 Collateral Amount, a percentage never greater than 100% or less than 0% equal to the product of (i) the Series 2019-1 Fixed Allocation Percentage for such
Business Day and (ii) a fraction, the numerator of which is the Series 2019-1 Nominal Liquidation Amount for such day and the denominator of which is the Series
2019-1 Collateral Amount for such day. 
 “Series
2019-1 Noteholder Variable Allocation Percentage” means, with respect to any Due Period and the related Transfer Date, subject to the provision specified in the proviso to the definition of Series 2019-1 Collateral Amount, a percentage never greater than 100% or less than 0% equal to the product of (i) the Series 2019-1 Variable Allocation Percentage for such Due
Period and (ii) a fraction, the numerator of which is the daily average of the Series 2019-1 Nominal Liquidation Amount for such Due Period and the denominator of which is the daily average of the Series 2019-1 Collateral Amount for such Due Period. 

  
 17 

 “Series 2019-1 Notes” is defined in
Section 2.01. 
 “Series 2019-1 Outstanding Principal Amount” means,
the sum of the Class A Outstanding Principal Amount, the Class B Outstanding Principal Amount, the Class C Outstanding Principal Amount and the Class D Outstanding Principal Amount. 

“Series 2019-1 Overcollateralization Amount” means as of any Transfer Date, an amount
equal to: 
  

	 	(i)	 the Series 2019-1 Target Overcollateralization Amount as of such
Transfer Date 

  

	 	(ii)	 minus the reductions to the Series 2019-1 Overcollateralization
Amount pursuant to Section 3.03(b) on or prior to such date of determination; 

  

	 	(iii)	 plus the reinstatements of the Series 2019-1
Overcollateralization Amount pursuant to Section 3.03(d) on or prior to such date of determination; 

 provided,
however, the Series 2019-1 Overcollateralization Amount may never be less than zero or be greater than the Series 2019-1 Target Overcollateralization Amount; provided that the Depositor may in its discretion at any time and from time
to time increase the Series 2019-1 Overcollateralization Amount (together with any discretionary amounts added to the Spread Account) by up to 5.0% in the aggregate of the initial Series 2019-1 Nominal Liquidation Amount by allocating a portion of the Seller’s Interest thereto, but only to the extent that it will not result in the Seller’s Interest being less than the Minimum Seller’s
Interest; provided, further, that for purposes of calculating the Series 2019-1 Noteholder Fixed Allocation Percentage, the Series 2019-1 Subordinated
Seller’s Interest Fixed Allocation Percentage, the Series 2019-1 Noteholder Variable Allocation Percentage and the Series 2019-1 Subordinated Seller’s Interest
Variable Allocation Percentage and other allocation percentages related to Series 2019-1, Series 2019-1 shall be deemed to have been outstanding from June 1, 2019 to the
Issuance Date, with respect to the allocation of Principal Collections and Finance Charge Collections and related concepts, with a Series 2019-1 Overcollateralization Amount of $25,203,252.03; provided,
further, that if the Series 2019-1 Target Overcollateralization Amount has increased as a result of an Excess Cash Collateral Event, the Series 2019-1
Overcollateralization Amount will be proportionately increased only to the extent that it will not result in the Seller’s Interest being less than the Minimum Seller’s Interest, and if other series of notes issued pursuant to the Indenture
require similar increases, each such series, including Series 2019-1, shall receive only its pro rata share of any such increase available based on the aggregate amount of such series’ shortfall. 

“Series 2019-1 Principal Funding Account” means the trust account designated as such
and established pursuant to Section 3.10(a). 
 “Series 2019-1 Rating
Agencies” means Moody’s Investors Service Inc. or its successor and Fitch Ratings, Inc. or its successor. 
 “Series 2019-1 Rating Agency Condition” means, with respect to any action, (i) with respect to Moody’s Investors Service Inc. or its successor, the condition that such rating agency shall have been given
at least 10 days (or such shorter period as is acceptable to such rating 

  
 18 

 
agency) prior notice thereof and such rating agency shall have notified the Servicer (and, if NFC is not the Servicer, NFC) in writing that such action shall not result in a downgrade or
withdrawal of the then-current rating of any rated Class of Notes (other than a Class of the Series 2019-1 Notes held only by the Depositor and its Affiliates) and, (ii) with respect to Fitch
Ratings, Inc. or its successor, the condition that such rating agency shall have been given at least 10 days (or such shorter period as is acceptable to such rating agency) prior notice thereof and such rating agency has not notified the Servicer
(and, if NFC is not the Servicer, NFC) in writing that such action shall result in a downgrade or withdrawal of the then-current rating of any rated Class of Notes (other than a Class of the Series 2019-1 Notes held only by the Depositor and its Affiliates). 
 “Series 2019-1 Required Excess Seller’s Interest” equals, for the Series 2019-1 Notes, with respect to any Business Day, the Required Seller’s Percentage times the
Series 2019-1 Nominal Liquidation Amount as of that day. 
 “Series 2019-1 Servicing Fee” means, with respect to any Transfer Date, the product of (a) the product of (i) 1/12, (ii) 1.0%, and (iii) the Aggregate Receivables Balance as of the last day of the related
Due Period, multiplied by (b) a fraction (i) the numerator of which is the daily average Series 2019-1 Nominal Liquidation Amount for each day of the related Due Period and (ii) the denominator
of which is the daily average Aggregate Trust Balance for each day of the related Due Period. 
 “Series 2019-1 Spread Account” means the account designated as such and established pursuant to Section 3.10(a). 

“Series 2019-1 Subordinated Seller’s Interest Allocated Dealer Note Losses”
means, with respect to any Due Period and the related Transfer Date, the product of the Series 2019-1 Subordinated Seller’s Interest Variable Allocation Percentage for such Due Period and Dealer Note
Losses for such Due Period. 
 “Series 2019-1 Subordinated Seller’s Interest Allocated
Interest Amounts” means, with respect to any Due Period and the related Transfer Date, the product of the Series 2019-1 Subordinated Seller’s Interest Variable Allocation Percentage for such Due
Period and Finance Charge Collections for such Due Period. 
 “Series 2019-1 Subordinated
Seller’s Interest Allocated Principal Amounts” means, with respect to any Business Day, the product of the Series 2019-1 Subordinated Seller’s Interest Fixed Allocation Percentage for such
Business Day and Principal Collections for such Business Day. 
 “Series 2019-1 Subordinated
Seller’s Interest Factor” means 7.75%. 
 “Series 2019-1 Subordinated
Seller’s Interest Fixed Allocation Percentage” means, with respect to any Business Day, subject to the provisions specified in the proviso to the definition of Series 2019-1 Collateral Amount, a
percentage never greater than 100% or less than 0% equal to the product of (i) the Series 2019-1 Fixed Allocation Percentage for such Business Day and (ii) a fraction, the numerator of which is the Series
2019-1 Overcollateralization Amount for such day and the denominator of which is the Series 2019-1 Collateral Amount for such day. 

  
 19 

 “Series 2019-1 Subordinated Seller’s
Interest Percentage” means the percentage equivalent of a fraction, the numerator of which is the Series 2019-1 Subordinated Seller’s Interest Factor and the denominator of which is 1.00 minus
the Series 2019-1 Subordinated Seller’s Interest Factor. 
 “Series 2019-1 Subordinated Seller’s Interest Variable Allocation Percentage” means, with respect to any Due Period and the related Transfer Date, subject to the provision specified in the proviso to the
definition of Series 2019-1 Collateral Amount, a percentage never greater than 100% or less than 0% equal to the product of (i) the Series 2019-1 Variable
Allocation Percentage for such Due Period and (ii) a fraction, the numerator of which is the daily average of the Series 2019-1 Overcollateralization Amount for such Due Period and the denominator of
which is the daily average of the Series 2019-1 Collateral Amount for such Due Period. 

“Series 2019-1 Target Overcollateralization Amount” means, with respect to any
Transfer Date, the product of the Series 2019-1 Subordinated Seller’s Interest Percentage and the Series 2019-1 Nominal Liquidation Amount as of such Transfer Date;
provided, however, that if an Early Redemption Period has commenced, the Series 2019-1 Nominal Liquidation Amount for the purpose of calculating the Series
2019-1 Target Overcollateralization Amount shall be the Series 2019-1 Nominal Liquidation Amount as of the last day of the Revolving Period; provided,
further, that if an Excess Cash Collateral Event occurs and is continuing, the Series 2019-1 Nominal Liquidation Amount for purposes of calculating the Series
2019-1 Target Overcollateralization Amount, the Spread Account Required Amount and the Series Required Seller’s Interest shall be the Series 2019-1 Nominal
Liquidation Amount without subtracting the amount on deposit in the Series 2019-1 Principal Funding Account in respect of the Series 2019-1 Notes. 

“Series 2019-1 Termination Date” means the earliest to occur of (a) the
Distribution Date on which the Series 2019-1 Outstanding Principal Amount is reduced to zero, (b) the Legal Final Maturity Date and (c) the date on which the Series
2019-1 Collateral Amount is reduced to zero. 
 “Series
2019-1 Unreimbursed Amount” means, as of any Transfer Date, the sum of the Nominal Liquidation Amount Deficit and the Overcollateralization Amount Deficit both as of such Transfer Date. 

“Series 2019-1 Variable Allocation Percentage” means, with respect to any Due Period
and the related Transfer Date, subject to the provision specified in the proviso to the definition of Series 2019-1 Collateral Amount, the percentage equivalent of a fraction never greater than 100% or less
than 0% to: 
  

	 	(i)	 the numerator of which is the daily average of the Series 2019-1
Collateral Amount for each day during such Due Period; and 

  

	 	(ii)	 the denominator of which is the greater of (A) the sum of the daily average Collateral Amounts used to
calculate the applicable variable allocation percentage for each Series of Notes for such Due Period and (b) the daily average Aggregate Trust Balance during such Due Period. 

  
 20 

 “Series Available Interest Amounts Shortfall” means, with respect to any
Transfer Date and the Series 2019-1 Notes, the excess, if any, of (a) the aggregate amount required to be applied pursuant to Sections 3.01(a)(i) through (ix) for such Transfer Date
over (b) the Series 2019-1 Available Interest Amount (excluding amounts to be treated as part of the Series 2019-1 Noteholder Available Interest Amount pursuant to
clause (v) of the definition thereof) for such Transfer Date. 
 “Series Available Principal Amounts Shortfall”
means, with respect to any Business Day and the Series 2019-1 Notes, an amount equal to, the amount, if any, by which (i) the sum of all payments and other applications of Series 2019-1 Available Principal Amounts (other than as Excess Available Principal Amounts) required to be made under Section 3.02 on such Business Day exceeds (ii) the related Series 2019-1 Available Principal Amounts (excluding amounts to be treated as part of Series 2019-1 Noteholder Available Principal Amounts pursuant to clause (iv) of the
definition thereof) on such Business Day. 
 “Series Reassignment Amount” means, with respect to the Series 2019-1 Notes and a Transfer Date, the sum of (a) the Series 2019-1 Nominal Liquidation Amount and (b) all accrued and unpaid interest on the Series 2019-1 Notes, in
each case as of that Transfer Date. 
 “Series Required Seller’s Interest” means, for the Series 2019-1 Notes, with
respect to any Business Day, the sum of (a) the Series 2019-1 Overcollateralization Amount as of that Business Day and (b) Series 2019-1 Required Excess
Seller’s Interest as of that Business Day. 
 “Servicer Certificate” is defined in Section 3.14(a). 

“Specified Accumulation Period Commencement Date” means August 1, 2020. 

“Sponsor” means Navistar Financial Corporation or its successor or assigns. 

“Spread Account Deposit Amount” means, with respect to any Transfer Date prior to the earlier of (a) the payment in full
of the outstanding principal amount of the Series 2019-1 Notes and (b) the Legal Final Maturity Date, the amount, if any, by which the Spread Account Required Amount for that Transfer Date exceeds the
amount of funds on deposit in the Series 2019-1 Spread Account. 
 “Spread Account Initial
Deposit” means an initial deposit amount equal to 1.25% of the Series 2019-1 Collateral Amount as of the Closing Date. 

“Spread Account Required Amount” means, with respect to any Transfer Date, an amount equal to the product of the Spread
Account Percentage and the Series 2019-1 Collateral Amount as of the Closing Date. 

“Spread Account Percentage” means, as of any Transfer Date, 1.25%; provided, that, if as of any Transfer Date,
the average Monthly Payment Rate for the three preceding Due Periods is less than the Monthly Payment Rate Enhancement Trigger, then the Spread Account Percentage shall be 2.75%. 

  
 21 

 “Stated Principal Amount” with respect to any Note, means the amount that
is stated on the face of the Note to be payable to its holders. 
 “Trust Consolidated Group” is defined in
Section 2.06. 
 “Weighted Average Note Rate” means, for any Transfer Date, the sum of: 

 

	 	(i)	 the Class A Interest Rate, multiplied by a fraction, the numerator of which is the Class A
Outstanding Principal Amount and the denominator of which is the Series 2019-1 Outstanding Principal Amount; 

  

	 	(ii)	 the Class B Interest Rate, multiplied by a fraction, the numerator of which is the Class B
Outstanding Principal Amount and the denominator of which is the Series 2019-1 Outstanding Principal Amount; 

  

	 	(iii)	 the Class C Interest Rate, multiplied by a fraction, the numerator of which is the Class C
Outstanding Principal Amount and the denominator of which is the Series 2019-1 Outstanding Principal Amount; and 

  

	 	(iv)	 the Class D Interest Rate, multiplied by a fraction, the numerator of which is the Class D
Outstanding Principal Amount and the denominator of which is the Series 2019-1 Outstanding Principal Amount. 

“Wholly-Owned Affiliate” has the meaning specified in Regulation RR. 

ARTICLE II 
 The Notes 

Section 2.01    Creation and Designation. 

(a) There is hereby created and designated a Series (“Series 2019-1”) of Notes to be
issued pursuant to the Indenture and this Indenture Supplement to be known as “Navistar Financial Dealer Note Master Owner Trust II Floating Rate Dealer Note Asset-Backed Notes, Series
2019-1” or the “Series 2019-1 Notes.” The Series 2019-1 Notes shall be issued in four Classes,
Class A, Class B, Class C and Class D, executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-1, Exhibit
A-2, Exhibit A-3 and Exhibit A-4, respectively. 

(b) Series 2019-1 shall be in Excess Interest Sharing Group One and in Principal Sharing Group One.
Series 2019-1 shall not be a Shared Enhancement Series or in an Interest Reallocation Group. Series 2019-1 shall not be subordinated to any other Series. The
Class B Notes shall be subordinate to the Class A Notes to the extent provided in this Indenture Supplement, the Class C Notes shall be subordinate to the Class A Notes and the Class B Notes to the extent provided in this
Indenture Supplement, and the Class D Notes shall be subordinate to the Class A Notes, the Class B Notes and the Class C Notes to the extent provided in this Indenture Supplement. 

  
 22 

 Section 2.02    Form of Delivery; Depository; Denominations.

 (a) The Series 2019-1 Notes shall be delivered in the form of global Registered Notes as provided
in Sections 2.02, 2.04 and 3.01 of the Indenture. 
 (b) The Depository for the Offered Notes shall be The Depository
Trust Company, and the Offered Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The Foreign
Depositories for the Offered Notes shall be Clearstream Banking, Société Anonyme and Euroclear Bank S.A./N.V., as the operator of the Euroclear System. 

(d) The Series 2019-1 Notes shall be issued in minimum denominations of $1,000 and integral multiples
of $1,000. 
 Section 2.03 Delivery and Payment. The Issuing Entity shall execute and deliver the Series 2019-1 Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Series 2019-1 Notes when authenticated, each in accordance with
Section 3.03 of the Indenture. 
 Section 2.04 Reopening. The Depositor may from time to time, upon
satisfaction of the Series 2019-1 Rating Agency Condition, but without notice to or the consent from any Securityholders, create and issue additional Series 2019-1 Notes equal in rank to any Class of
Series 2019-1 Notes previously offered in all respects or in all respects except there will not be any payment of interest accruing prior to the issuance date of such additional Series 2019-1 Notes in a
Class of Series 2019-1 Notes or except for the first date of payment of interest following the Issuance Date of such additional Series 2019-1 Notes in a
Class of Series 2019-1 Notes. When issued, the additional Series 2019-1 Notes of a Class shall be equally and ratably entitled to the benefits of the Indenture
and this Indenture Supplement applicable to those Series 2019-1 Notes with the other Outstanding Notes of that Class without preference, priority or distinction. These additional Series 2019-1 Notes may be consolidated and form a single Class with the previously issued Series 2019-1 Notes of such Class and shall have the same terms as to status,
redemption or otherwise as the previously issued Series 2019-1 Notes. 

Section 2.05    Tax Treatment. 

(a) The Issuing Entity has entered into this Indenture Supplement and the Series 2019-1 Notes have been
issued with the intention that the Series 2019-1 Notes (other than any Retained Notes) will qualify under applicable tax law as indebtedness of the Issuing Entity secured by the Issuing Entity assets
attributable to the Series 2019-1 Notes. The Issuing Entity, each Beneficiary and each Series 2019-1 Noteholder and Note Owner, by the acceptance of its Series 2019-1 Note (or beneficial interest therein) agrees to treat the Series 2019-1 Notes (other than any Retained Notes) as indebtedness of the Issuing Entity secured by the
Issuing Entity assets attributable to the Series 2019-1 Notes, for U.S. federal income taxes, state and local income, franchise, single business taxes and/or value added taxes and any other taxes imposed on or
measured by income in whole or in part. 

  
 23 

 (b) Each Series 2019-1 Noteholder or Note Owner of a
Series 2019-1 Note, by its acceptance of a Series 2019-1 Note or, in the case of a Note Owner of a Series 2019-1 Note, a
beneficial interest in a Series 2019-1 Note, agrees to provide to the Person from whom it receives payments on the Series 2019-1 Notes (including the Paying Agent) the
Noteholder Tax Identification Information and, upon request, to the extent FATCA Withholding Tax is applicable, the Noteholder FATCA Information. 

(c) Each Series 2019-1 Noteholder or Note Owner of a Series
2019-1 Note, by its acceptance of a Series 2019-1 Note or, in the case of a Note Owner of a Series 2019-1 Note, a beneficial
interest in a Series 2019-1 Note, agrees that the Indenture Trustee has the right to withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Series 2019-1 Noteholder or holder of an interest in a Series 2019-1 Note that fails to comply with the
requirements of Section 2.05(b). 
 (d) Each Series 2019-1 Noteholder or Note Owner of a
Series 2019-1 Note, by its acceptance of a Series 2019-1 Note or, in the case of a Note Owner of a Series 2019-1 Note, a
beneficial interest in a Series 2019-1 Note, agrees that the Issuing Entity has the right to amend this Indenture Supplement and the other Issuing Entity Documents from time to time without the consent of any
Series 2019-1 Noteholder or Note Owner of a Series 2019-1 Note to prevent or help avoid the application to the Series 2019-1
Notes of the Treasury Regulations (or other interpretive guidance or legislative enactments) issued under Section 385 of the Code. 

Section 2.06 Restrictions on Note Acquisitions. Neither a member of any “expanded group” (as defined in Treasury
Regulation Section 1.385-1(c)(4)) that includes the Issuing Entity or a Certificateholder nor a “controlled partnership” (as defined in Treasury Regulation Section
1.385-1(c)(1)) of such expanded group shall acquire any Series 2019-1 Notes from the Issuing Entity, any Affiliate, or through the marketplace prior to obtaining an
opinion of counsel stating that (i) the acquisition or reacquisition of such Series 2019-1 Note will not cause the Issuing Entity, initially upon such acquisition or subsequent to the acquisition, to be
classified as an association or publicly traded partnership treated as a corporation for U.S. federal income tax purposes and will not cause the Series 2019-1 Note to be recharacterized as stock pursuant to
Treasury Regulations under Section 385 of the Code. The preceding sentence shall not apply to (i) any U.S. corporate member of the same U.S. corporate affiliated group (as defined in Section 1504 of the Code) filing a consolidated federal
income tax return that includes the Issuing Entity or every applicable Certificateholder (the “Trust Consolidated Group”) or (ii) a partnership all of the partners of which are U.S. corporate members of the Trust Consolidated
Group. No member of any “expanded group” that includes the Issuing Entity or a Certificateholder (as defined in Treasury Regulation § 1.385-1(c)(4)) or “controlled partnership” of such
expanded group (as defined in Treasury Regulation § 1.385-1(c)(1)) shall transfer any Series 2019-1 Notes outside the expanded group prior to obtaining an opinion
of counsel stating that the transfer of such Series 2019-1 Note will not cause the Issuing Entity to be classified as an association or publicly traded partnership treated as a corporation for U.S. federal
income tax purposes and will not cause the Series 2019-1 Note to be recharacterized as stock pursuant to Treasury Regulations under Section 385 of the Code. 

  
 24 

 ARTICLE III 

Allocations, Deposits and Payments 

Section 3.01    Series 2019-1 Available Interest Amounts. 

(a) Allocation of Series 2019-1 Available Interest Amounts. On each Transfer Date, the Indenture Trustee, at the written direction of
the Servicer, shall apply Series 2019-1 Available Interest Amounts as follows: 
  

	 	(i)	 first, on a pro rata basis (a) to the Servicer, the Series 2019-1
Servicing Fee due on such Transfer Date (to the extent it has not been deferred by the Servicer for such Transfer Date, and if the Servicer shall defer any Series 2019-1 Servicing Fee, the Servicer shall give
notice of such deferral to each of the Series 2019-1 Rating Agencies) and (b) to the Backup Servicer, the Series 2019-1 Backup Servicing Fee due on such Transfer
Date; 

  

	 	(ii)	 second, any remaining Series 2019-1 Available Interest Amounts shall be deposited into the Series 2019-1 Interest Funding Account in an amount equal to the product of (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, (B)
the Class A Interest Rate applicable to the related Interest Period, and (C) the Class A Outstanding Principal Amount, determined as of the Distribution Date preceding the related Distribution Date (or with respect to the first
Distribution Date, as of the Issuance Date) (the “Class A Monthly Interest”), plus an amount equal to the excess, if any, of the aggregate amount accrued pursuant to this Section 3.01(a)(ii) as of prior Interest Periods over
the aggregate amount of interest paid to the Class A Noteholders pursuant to this Section 3.01(a)(ii) in respect of such prior Interest Periods, together with interest at the Class A Interest Rate on such delinquent amount, to
the extent permitted by applicable law; 

  

	 	(iii)	 third, any remaining Series 2019-1 Available Interest Amounts shall be
deposited into the Series 2019-1 Interest Funding Account in an amount equal to the product of (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the
denominator of which is 360, (B) the Class B Interest Rate applicable to the related Interest Period, and (C) the Class B Outstanding Principal Amount, determined as of the Distribution Date preceding the related Distribution Date (or
with respect to the first Distribution Date, as of the Issuance Date) (the “Class B Monthly Interest”), plus an amount equal to the excess, if any, of the aggregate amount accrued pursuant to this Section 3.01(a)(iii) as of
prior Interest Periods over the aggregate amount of interest paid to the Class B Noteholders pursuant to this Section 3.01(a)(iii) in respect of such prior Interest Periods, together with interest at the Class B Interest Rate on such
delinquent amount, to the extent permitted by applicable law; 

  
 25 

	 	(iv)	 fourth, any remaining Series 2019-1 Available Interest Amounts shall be
deposited into the Series 2019-1 Interest Funding Account in an amount equal to the product of (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the
denominator of which is 360, (B) the Class C Interest Rate applicable to the related Interest Period, and (C) the Class C Outstanding Principal Amount, determined as of the Distribution Date preceding the related Distribution Date (or
with respect to the first Distribution Date, as of the Issuance Date) (the “Class C Monthly Interest”), plus an amount equal to the excess, if any, of the aggregate amount accrued pursuant to this Section 3.01(a)(iv) as
of prior Interest Periods over the aggregate amount of interest paid to the Class C Noteholders pursuant to this Section 3.01(a)(iv) in respect of such prior Interest Periods, together with interest at the Class C Interest Rate on
such delinquent amount, to the extent permitted by applicable law; 

  

	 	(v)	 fifth, any remaining Series 2019-1 Available Interest Amounts shall be
deposited into the Series 2019-1 Interest Funding Account in an amount equal to the product of (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the
denominator of which is 360, (B) the Class D Interest Rate applicable to the related Interest Period, and (C) the Class D Outstanding Principal Amount, determined as of the Distribution Date preceding the related Distribution Date (or
with respect to the first Distribution Date, as of the Issuance Date) (the “Class D Monthly Interest”), plus an amount equal to the excess, if any, of the aggregate amount accrued pursuant to this Section 3.01(a)(v) as of
prior Interest Periods over the aggregate amount of interest paid to the Class D Noteholders pursuant to this Section 3.01(a)(v) in respect of such prior Interest Periods, together with interest at the Class D
Interest Rate on such delinquent amount, to the extent permitted by applicable law; 

  

	 	(vi)	 sixth, any remaining Series 2019-1 Available Interest Amounts shall be
deposited into the Series 2019-1 Spread Account to the extent of any Spread Account Deposit Amount; 

  

	 	(vii)	 seventh, any remaining Series 2019-1 Available Interest Amounts shall
be treated as Series 2019-1 Noteholder Available Principal Amounts to the extent of the amount of Series 2019-1 Noteholder Allocated Dealer Note Losses for the related
Due Period; 

  

	 	(viii)	 eighth, any remaining Series 2019-1 Available Interest Amounts shall be treated as Series 2019-1 Noteholder Available Principal Amounts or Series 2019-1 Additional Available Principal Amounts for the

  
 26 

	 	
reinstatement of the Series 2019-1 Nominal Liquidation Amount or Series 2019-1 Overcollateralization Amount, respectively, to the extent of the Series 2019-1 Unreimbursed Amount (the amount being reinstated is referred to as the “Reinstatement Amount”), and then, to the extent that the Series 2019-1
Overcollateralization Amount is less than the Series 2019-1 Target Overcollateralization Amount as a result of an Excess Cash Collateral Event, an amount up to such shortfall shall be treated as Series 2019-1 Additional Available Principal Amounts, and the Series 2019-1 Overcollateralization Amount shall be increased by the same amount; 

 

	 	(ix)	 ninth, any remaining Series 2019-1 Available Interest Amounts will be
deposited into the Series 2019-1 Negative Carry Account until the amount on deposit therein equals the Required Negative Carry Account Balance; 

 

	 	(x)	 tenth, any remaining Series 2019-1 Available Interest Amounts shall be paid to the Servicer to the extent any
Series 2019-1 Servicing Fee which had been previously deferred unless that amount has been deferred again; 

  

	 	(xi)	 eleventh, to the Backup Servicer, the Series 2019-1 Backup Servicing
Expenses due on such Transfer Date; 

  

	 	(xii)	 twelfth, if the Series 2019-1 Notes are in an Early Redemption Period,
any remaining Series 2019-1 Available Interest Amounts shall be treated as Series 2019-1 Noteholder Available Principal Amounts to the extent of the Series 2019-1 Nominal Liquidation Amount (after taking into account any reductions due to Series 2019-1 Noteholder Allocated Dealer Note Losses or otherwise or reinstatements of the
Series 2019-1 Nominal Liquidation Amount pursuant to Section 3.01(a)(viii) on such Transfer Date due to recoveries) for payment to the Series
2019-1 Noteholders; and 

  

	 	(xiii)	 thirteenth, any remaining Series 2019-1 Available Interest Amounts
shall be treated as Excess Available Interest Amounts and allocated pursuant to Section 5.02 of the Indenture. 

(b) Excess Available Interest Amounts. On each Transfer Date, commencing with the initial Transfer Date, if Series 2019-1 Available Interest Amounts are insufficient to make the allocations provided in Sections 3.01(a)(i) through (ix) above, the Servicer shall allocate Excess Available Interest Amounts, if
any, allocated to Series 2019-1 pursuant to Section 5.02 of the Indenture to cover the Series Available Interest Amounts Shortfall. 

(c) Spread Account Draws. 
  

	 	(i)	 At the written direction of the Servicer and to the extent that Series
2019-1 Available Interest Amounts (without giving effect to clause (vi) of the definition of Series 2019-1 Noteholder Available Interest Amounts) are
insufficient to pay in full the amounts set forth in Sections 3.01(a)(ii), (iii), (iv) and (v), the Indenture Trustee shall withdraw funds from the Series 2019-1 Spread Account in
an amount equal to the lesser of (A) the amount 

  
 27 

	 	
of such shortfall and (B) the amount on deposit in the Series 2019-1 Spread Account (after giving effect to any withdrawals from the Series 2019-1 Spread Account on such Transfer Date other than a withdrawal pursuant to Sections 3.01(c)(i), (ii) and (iii) on such date), and treat such funds as “Series 2019-1 Noteholder Available Interest Amounts.” 

  

	 	(ii)	 At the written direction of the Servicer and to the extent that Series
2019-1 Available Interest Amounts (without giving effect to clause (vi) of the definition of Series 2019-1 Noteholder Available Interest Amounts (except for
the application of funds on deposit in the Spread Account pursuant to Section 3.01(c)(i))) are insufficient to pay in full the amount described in Section 3.01(a)(vii) and Series
2019-1 is in the Early Redemption Period, the Indenture Trustee shall withdraw funds from the Series 2019-1 Spread Account in an amount equal to the lesser of (A) the amount of such shortfall and
(B) the amount on deposit in the Series 2019-1 Spread Account (after giving effect to any withdrawals from the Series 2019-1 Spread Account on such Transfer Date)
and treat such funds as “Series 2019-1 Noteholder Available Interest Amounts.” 

  

	 	(iii)	 In addition, after applying funds on deposit in the Spread Account pursuant to Sections 3.01(c)(i) and
(ii), on the Legal Final Maturity Date, if the Outstanding Principal Amount of any Series 2019-1 Notes remains greater than zero, the Indenture Trustee shall, at the written direction of the Servicer,
apply funds from the Spread Account to repay the Outstanding Principal Amount of such Series 2019-1 Notes in full, first, to the Class A Noteholders (up to a maximum of the Class A Outstanding
Principal Amount on such Distribution Date), second, to the Class B Noteholders (up to a maximum of the Class B Outstanding Principal Amount on such Distribution Date), third, to the Class C Noteholders (up to a maximum
of the Class C Outstanding Principal Amount on such Distribution Date), and fourth, to the Class D Noteholders (up to a maximum of the Class D Outstanding Principal Amount on such Distribution Date). 

Section 3.02    Series 2019-1 Available Principal Amounts. 

(a) Allocation of Series 2019-1 Available Principal Amounts. On each Business Day, the Indenture
Trustee, at the written direction of the Servicer, shall apply Series 2019-1 Available Principal Amounts as follows: 
  

	 	(i)	 first, if the Series 2019-1 Available Interest Amounts are insufficient
to make the payments on the Series 2019-1 Notes pursuant to Sections 3.01(a)(ii), (iii), (iv) and (v), to the Series 2019-1 Interest
Funding Account, an amount equal to the lesser of (i) the amount of that shortfall and (ii) the Series 2019-1 Collateral Amount (after taking into account any reinstatements pursuant
to Section 3.03(d) and reductions due to Section 3.03(a)(ii)); provided, however, the Series 2019-1 Available Principal 

  
 28 

	 	
Amounts shall not be applied to pay Class B Monthly Interest, Class C Monthly Interest or Class D Monthly Interest if, as a result of such application, the Class A Nominal
Liquidation Amount would be reduced, the Series 2019-1 Available Principal Amounts shall not be applied to pay Class C Monthly Interest or Class D Monthly Interest if, as a result of such
application, the Class B Nominal Liquidation Amount would be reduced, and the Series 2019-1 Available Principal Amounts shall not be applied to pay Class D Monthly Interest if, as a result of such
application, the Class C Nominal Liquidation Amount would be reduced; 

  

	 	(ii)	 second, if the Series 2019-1 Notes are in an Accumulation Period, to
the Series 2019-1 Principal Funding Account, the Series 2019-1 Controlled Deposit Amount to the extent of the Series 2019-1
Nominal Liquidation Amount (computed before giving effect to such deposit but after giving effect to any reinstatements pursuant to Sections 3.03(d)(i), (ii), (iii) and (iv) and reductions pursuant to Sections
3.03(a)(i) and (ii)); 

  

	 	(iii)	 third, if the Series 2019-1 Notes are in an Early Redemption Period, to
the Series 2019-1 Principal Funding Account any remaining Series 2019-1 Available Principal Amounts to the extent of the Series
2019-1 Nominal Liquidation Amount (computed before giving effect to such deposit but after giving effect to any reinstatements pursuant to Sections 3.03(d)(i), (ii), (iii) and
(iv) and reductions pursuant to Sections 3.03(a)(i) and (ii)) for payment to the Series 2019-1 Noteholders; 

 

	 	(iv)	 fourth, if the Series 2019-1 Notes are not in an Early Redemption
Period, to the extent that the Spread Account Deposit Amount is greater than zero (after giving effect to any other deposits to or withdrawals from the Series 2019-1 Spread Account on such Transfer Date,
reductions to the Series 2019-1 Nominal Liquidation Amount in accordance with Sections 3.03(a)(i) and (ii) and reinstatements pursuant to Sections 3.03(d)(i), (ii),
(iii) and (iv)), to the Series 2019-1 Spread Account an amount equal to such Spread Account Deposit Amount (not taking into account any increase in the Spread Account Required Amount as described
in the proviso to the definition thereof); 

  

	 	(v)	 fifth, if the Series 2019-1 Notes are in a Revolving Period, at the
Servicer’s discretion and subject to the requirement that after giving effect to clause (vi) below the balance in the Series 2019-1 Negative Carry Account is at least equal to the Required
Negative Carry Account Balance, to the Series 2019-1 Principal Funding Account any amounts that would be required to be on deposit in the Excess Funding Account up to the amount that would reduce the Series 2019-1 Nominal Liquidation Amount to zero; provided, however, the Servicer shall not be permitted to make any such deposit into the Series 2019-1 Principal
Funding Account if the Notes are subject to Regulation RR or if after giving effect to the deposits pursuant to this Section 3.02(a), the Series 2019-1 Overcollateralization Amount would be less
than the Series 2019-1 Target Overcollateralization Amount; 

  
 29 

	 	(vi)	 sixth, if the Series 2019-1 Notes are not in an Accumulation Period or
an Early Redemption Period, if the amount on deposit in the Series 2019-1 Negative Carry Account is less than the Required Negative Carry Account Balance, to the Series
2019-1 Negative Carry Account until the amount on deposit therein equals the Required Negative Carry Account Balance; and 

 

	 	(vii)	 seventh, any remaining Series 2019-1 Available Principal Amounts shall
be treated as Excess Available Principal Amounts and allocated pursuant to Section 5.02 of the Indenture. 

(b) Excess Available Principal Amounts. On each Business Day, commencing after the Issuance Date, if Series 2019-1 Available Principal Amounts are insufficient to make the allocations provided in Sections 3.02(a)(i) through (vi) above, the Indenture Trustee shall allocate Excess Available Principal
Amounts, if any, allocated to Series 2019-1 pursuant to Section 5.02 of the Indenture to cover the Series Available Principal Amounts Shortfall. 

Section 3.03 Reductions and Reinstatements. The Series 2019-1 Collateral Amount, Series 2019-1 Overcollateralization Amount and Series 2019-1 Nominal Liquidation Amount shall be calculated on each Transfer Date and shall be reduced and reinstated as described
below. The Servicer (and not the Indenture Trustee) shall solely be responsible for making the calculations pursuant to this Section 3.03, and the Indenture Trustee may rely upon the information with respect thereto set forth in the
applicable Servicer Certificate. 
 (a) Reductions. The Series 2019-1 Nominal Liquidation
Amount and the Series 2019-1 Overcollateralization Amount shall be reduced in the order described in Section 3.03(b) below by the following amounts allocated with respect to that
Transfer Date: 
  

	 	(i)	 the amount, if any, of the Series 2019-1 Available Principal Amounts
used to pay interest on the Series 2019-1 Notes as described in Section 3.02(a)(i); 

  

	 	(ii)	 the amount of Series 2019-1 Noteholder Allocated Dealer Note Losses for
such Due Period to the extent that they are not covered by Series 2019-1 Available Interest Amounts as described in Section 3.01(a)(vii); 

 

	 	(iii)	 the amount, if any, of the Series 2019-1 Available Principal Amounts
deposited into the Series 2019-1 Spread Account in accordance with Section 3.02(a)(iv); and 

  

	 	(iv)	 the amount, if any, of the Series 2019-1 Available Principal Amounts
deposited into the Series 2019-1 Negative Carry Account pursuant to Section 3.02(a)(vi). 

  
 30 

 (b) Allocation of Reductions. On each Transfer Date, the amount of any reduction in
the Series 2019-1 Collateral Amount due to Sections 3.03(a)(i), (ii), (iii) or (iv) above shall be allocated as follows: 

 

	 	(i)	 first, the Series 2019-1 Overcollateralization Amount (computed without
giving effect to any reductions due to Sections 3.03(a)(i) through (iv) on such date) shall be reduced by the amount of such reduction until the Series 2019-1 Overcollateralization Amount is
reduced to zero; 

  

	 	(ii)	 second, the Class D Nominal Liquidation Amount (computed without giving effect to any reductions due to
Sections 3.03(a)(i) through (iv) on such date) shall be reduced by any remaining amount until the Class D Nominal Liquidation Amount is reduced to zero; 

 

	 	(iii)	 third, the Class C Nominal Liquidation Amount (computed without giving effect to any reductions due to
Sections 3.03(a)(i) through (iv) on such date) shall be reduced by any remaining amount until the Class C Nominal Liquidation Amount is reduced to zero; provided, however, that the Class C Nominal
Liquidation Amount shall not be reduced by using the Series 2019-1 Available Principal Amounts to pay Class D Monthly Interest; 

 

	 	(iv)	 fourth, the Class B Nominal Liquidation Amount (computed without giving effect to any reductions due to
Sections 3.03(a)(i) through (iv) on such date) shall be reduced by any remaining amount until the Class B Nominal Liquidation Amount is reduced to zero; provided, however, that the Class B Nominal
Liquidation Amount shall not be reduced by using the Series 2019-1 Available Principal Amounts to pay Class C Monthly Interest or Class D Monthly Interest; and 

 

	 	(v)	 fifth, the Class A Nominal Liquidation Amount (computed without giving effect to any reductions due to
Sections 3.03(a)(i) through (iv) on such date) shall be reduced by any remaining amount until the Class A Nominal Liquidation Amount is reduced to zero; provided, however, that the Class A Nominal
Liquidation Amount shall not be reduced by using the Series 2019-1 Available Principal Amounts to pay Class B Monthly Interest, Class C Monthly Interest or Class D Monthly Interest.

 In addition, the Series 2019-1 Nominal Liquidation Amount will be reduced in
the reverse order specified above by the amount of any funds (other than investment earnings) deposited into the Series 2019-1 Principal Funding Account since the prior date on which the Series 2019-1 Collateral Amount was calculated. 
 (c) Reinstatements. The Series 2019-1 Nominal Liquidation Amount and the Series 2019-1 Overcollateralization Amount shall be reinstated on any Transfer Date by the amount of the Series 2019-1 Available Interest Amounts that are applied to cover the Reinstatement Amount for that Transfer Date pursuant to Section 3.01(a)(viii) and by the amount of funds released from the Series 2019-1 Negative Carry Account that are applied to cover any Series 2019-1 Unreimbursed Amount for that Transfer Date pursuant to Section 3.12(b). 

  
 31 

 (d) Allocation of Reinstatements. The Reinstatement Amount for any Transfer Date
specified in Section 3.03(c) shall be applied as follows: 
  

	 	(i)	 first, if the Class A Nominal Liquidation Amount has been reduced as described in
Section 3.03(b) above and is not fully reinstated, to the Class A Nominal Liquidation Amount until the Class A Nominal Liquidation Amount equals the excess of (A) the Class A Outstanding Principal Amount, over
(B) the amount on deposit (other than investment earnings) in the Series 2019-1 Principal Funding Account on that Transfer Date allocable to the Class A Notes; 

 

	 	(ii)	 second, if the Class B Nominal Liquidation Amount has been reduced as described in
Section 3.03(b) above and is not fully reinstated, to the Class B Nominal Liquidation Amount until the Class B Nominal Liquidation Amount equals the excess of (A) the Class B Outstanding Principal Amount, over
(B) the amount on deposit (other than investment earnings) in the Series 2019-1 Principal Funding Account on that Transfer Date allocable to the Class B Notes; 

 

	 	(iii)	 third, if the Class C Nominal Liquidation Amount has been reduced as described in Section 3.03(b)
above and is not fully reinstated, to the Class C Nominal Liquidation Amount until the Class C Nominal Liquidation Amount equals the excess of (A) the Class C Outstanding Principal Amount, over (B) the amount on deposit
(other than investment earnings) in the Series 2019-1 Principal Funding Account on that Transfer Date allocable to the Class C Notes; 

 

	 	(iv)	 fourth, if the Class D Nominal Liquidation Amount has been reduced as described in
Section 3.03(b) above and is not fully reinstated, to the Class D Nominal Liquidation Amount until the Class D Nominal Liquidation Amount equals the excess of (A) the Class D Outstanding Principal Amount, over
(B) the amount on deposit (other than investment earnings) in the Series 2019-1 Principal Funding Account on that Transfer Date allocable to the Class D Notes; and 

 

	 	(v)	 fifth, to the Series 2019-1 Overcollateralization Amount until the
Series 2019-1 Overcollateralization Amount equals the Series 2019-1 Target Overcollateralization Amount. 

In addition, the Series 2019-1 Nominal Liquidation Amount will be increased in the reverse order in
which it was reduced by deposits into the Series 2019-1 Principal Funding Account by the amount of funds withdrawn from the Series 2019-1 Principal Funding Account and
deemed to be Excess Available Principal Amounts since the prior date in which the Series 2019-1 Collateral Amount was calculated. 

  
 32 

 Section 3.04 Payment on the Series 2019-1
Notes. On each Transfer Date, the Indenture Trustee, acting in accordance with written instructions from the Servicer, shall transfer to the Series 2019-1 Principal Funding Account and Series 2019-1 Interest Funding Account funds on deposit in the Collections Account. On each Distribution Date, after all allocations and reallocations pursuant to Sections 3.01 and 3.02, the Indenture Trustee
shall make or cause to be made, without duplication, the following distributions to the extent of available funds from the Series 2019-1 Principal Funding Account and the Series
2019-1 Interest Funding Account: 
 (a) Interest Distributions. On each Distribution Date
(including the Expected Principal Distribution Date), amounts on deposit in the Series 2019-1 Interest Funding Account shall be distributed in the following manner, first, to the Class A
Noteholders, accrued and unpaid interest on the Class A Notes for that Distribution Date, second, to the Class B Noteholders, accrued and unpaid interest on the Class B Notes for that Distribution Date, third, to the
Class C Noteholders, accrued and unpaid interest on the Class C Notes for that Distribution Date, and fourth, to the Class D Noteholders, accrued and unpaid interest on the Class D Notes for that Distribution Date, in each
case, pro rata based on the amounts owing to them. If there is a shortfall in the amounts required to be distributed pursuant to the preceding clauses first, second, third or fourth, then the amounts actually distributed
pursuant to any such clause shall be shared among the Persons entitled thereto in proportion to the amounts owing such Persons. 
 (b)
Expected Principal Distribution Date. On the Expected Principal Distribution Date, amounts on deposit in the Series 2019-1 Principal Funding Account shall be distributed as principal first, to
the Class A Noteholders (up to a maximum of the Class A Outstanding Principal Amount on such Distribution Date), second, to the Class B Noteholders (up to a maximum of the Class B Outstanding Principal Amount on such
Distribution Date), third, to the Class C Noteholders (up to a maximum of the Class C Outstanding Principal Amount on such Distribution Date), and fourth, to the Class D Noteholders (up to a maximum of the Class D
Outstanding Principal Amount on such Distribution Date), in each case, pro rata based on the amounts owing to them. If there is a shortfall in the amounts required to be distributed pursuant to the preceding clauses first, second,
third or fourth, then the amounts actually distributed pursuant to any such clause shall be shared among the Persons entitled thereto in proportion to the amounts owing such Persons. 

(c) Early Redemption Period. On each Distribution Date during an Early Redemption Period, amounts on deposit in the Series 2019-1 Principal Funding Account shall be distributed as principal first, to the Class A Noteholders (up to a maximum of the Class A Outstanding Principal Amount on such Distribution Date),
second, to the Class B Noteholders (up to a maximum of the Class B Outstanding Principal Amount on such Distribution Date), third, to the Class C Noteholders (up to a maximum of the Class C Outstanding Principal
Amount on such Distribution Date), and fourth, to the Class D Noteholders (up to a maximum of the Class D Outstanding Principal Amount on such Distribution Date), in each case, pro rata based on the amounts owing to them. If there
is a shortfall in the amounts required to be distributed pursuant to the preceding clauses first, second, third or fourth, then the amounts actually distributed pursuant to any such clause shall be shared among the
Persons entitled thereto in proportion to the amounts owing such Persons. 

  
 33 

 (d) Any installment of interest or principal, if any, payable on any Series 2019-1 Note which is punctually paid or duly provided for by the Issuing Entity and the Indenture Trustee on the applicable Distribution Date shall be paid by the Paying Agent to the Person in whose name such Series
2019-1 Note (or one or more predecessor Notes) is registered on the Note Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written
instructions received by the Paying Agent from such Person not later than the close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check mailed
first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Note Record Date, except that with respect to Notes registered on the Note Record Date in the name of the
nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee. 

(e) The right of the Series 2019-1 Noteholders to receive payments from the Issuing Entity shall
terminate on the first Business Day following the Series 2019-1 Termination Date. 

Section 3.05 Accumulation Period Length and Accumulation Period Commencement Date. On or prior to the Distribution Date which is
ten months prior to the Expected Principal Distribution Date and on or prior to each subsequent Distribution Date until the Accumulation Period has commenced, the Servicer shall determine in its sole discretion whether the Accumulation Period
Commencement Date shall occur on the first day of the succeeding Due Period and, if the Servicer determines that the Accumulation Period Commencement Date shall be occurring on the first day of the succeeding Due Period, the Servicer shall promptly
notify the Indenture Trustee and the Series 2019-1 Rating Agencies in writing of such determination. 

Section 3.06    Final Payment of the Series 2019-1 Notes 

(a) Series 2019-1 Noteholders shall be entitled to payment of principal in an amount equal to the
Series 2019-1 Outstanding Principal Amount. However, Series 2019-1 Available Principal Amounts shall be available to pay principal on the Series 2019-1 Notes only up to the Series 2019-1 Nominal Liquidation Amount (for the purposes of this provision, without giving effect to reductions pursuant to clause
(iv) of the definitions of Class A Nominal Liquidation Amount, Class B Nominal Liquidation Amount, Class C Nominal Liquidation Amount and Class D Nominal Liquidation Amount). 

(b) The Series 2019-1 Notes shall be considered to be paid in full, the holders of the Series 2019-1 Notes shall have no further right or claim, and the Issuing Entity shall have no further obligation or liability for principal or interest, on the earlier to occur of: 

 

	 	(i)	 the date on which the Series 2019-1 Outstanding Principal Amount is
reduced to zero and all accrued interest on the Series 2019-1 Notes is paid in full; or 

  

	 	(ii)	 the Legal Final Maturity Date of the Series 2019-1 Notes, after giving
effect to all deposits, allocations, reallocations, sales of Dealer Notes and payments to be made on that date. 

  
 34 

 (c) In no event shall the Issuing Entity repay, redeem, repurchase or otherwise acquire for
value the Class B Notes unless and until the Class A Notes have been paid in full. In no event shall the Issuing Entity repay, redeem, repurchase or otherwise acquire for value the Class C Notes unless and until the Class A Notes
and the Class B Notes have been paid in full. In no event shall the Issuing Entity repay, redeem, repurchase or otherwise acquire for value the Class D Notes unless and until the Class A Notes, the Class B Notes and the
Class C Notes have been paid in full. 
 Section 3.07    Netting of Deposits and Payments. The Issuing
Entity, in its sole discretion, may make all deposits to the Series 2019-1 Interest Funding Account and the Series 2019-1 Principal Funding Account with respect to any
Distribution Date net of, and after giving effect to, all reallocations to be made pursuant to Article III. 

Section 3.08    Calculation Agent; Determination of LIBOR. 

(a) The Issuing Entity hereby agrees that for so long as any Series 2019-1 Notes are Outstanding, there
shall at all times be an agent appointed to calculate LIBOR, subject to an Alternate Rate Event, for each Interest Period (the “Calculation Agent”). The Issuing Entity hereby initially appoints the Indenture Trustee as the
Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation Agent may be removed by the Issuing Entity at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuing Entity,
or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuing Entity shall promptly appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuing Entity or
its Affiliates. The Calculation Agent may not resign its duties, and the Issuing Entity may not remove the Calculation Agent, without a successor having been duly appointed, provided that if a successor is not appointed within 30 days, the
Calculation Agent may petition a court of competent jurisdiction to make such appointment. 
 (b) The Class A Interest Rate,
Class B Interest Rate, the Class C Interest Rate and the Class D Interest Rate, applicable to the then current and the immediately preceding Interest Periods, may be obtained by contacting the Indenture Trustee at its Corporate Trust
Office at www.sf.citidirect.com or (888) 855-9695 or such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each
Noteholder from time to time. 
 (c) On each LIBOR Determination Date, subject to an Alternate Rate Event, the Calculation Agent shall send
to the Servicer and the Indenture Trustee (if the Indenture Trustee is not the Calculation Agent), by electronic mail or facsimile transmission, notification of LIBOR, the Class A Interest Rate, the Class B Interest Rate, the Class C
Interest Rate, the Class D Interest Rate, the Class A Monthly Interest, the Class B Monthly Interest, the Class C Monthly Interest and the Class D Monthly Interest for the following Interest Period. 

Notwithstanding the preceding paragraphs in this Section 3.08, if an Alternative Rate Trigger has occurred and the Sponsor determines in
its sole discretion that a reference rate other than LIBOR has been selected by a central bank, reserve bank, monetary authority or any similar institution (including any committee or working group thereof), or identified through any other

  
 35 

 
applicable regulatory or legislative action or guidance, as an alternative interest rate benchmark for interbank lending, then the Sponsor may direct the Calculation Agent in writing to use such
alternative rate as a substitute for LIBOR for the current LIBOR Determination Date and for each future LIBOR Determination Date unless and until the Calculation Agent is otherwise directed by the Sponsor in writing (such determination and
direction, an “Alternate Rate Event”). If an Alternative Rate Trigger has occurred but the Sponsor determines in its sole discretion that no central bank, reserve bank, monetary authority or other institution (including any
committee or working group thereof) has identified an alternative reference rate or there is no clear market consensus as to whether any rate has replaced LIBOR in customary market usage for asset-backed securities or securitization financing
transactions, the Sponsor may, but will have no obligation to, direct the Calculation Agent in writing to use an alternative rate as selected by the Sponsor, in its sole discretion, after consulting any source the Sponsor deems to be reasonable as a
substitute for LIBOR for the current LIBOR Determination Date and for each future LIBOR Determination Date unless and until directed otherwise.     As part of any rate substitution described in this paragraph, the Sponsor may
make, or direct the Calculation Agent in writing to make, such adjustments to such alternative rate or the spread thereon, as well as the day count, business day convention, the definition of business day, interest determination dates and any other
related provisions and definitions or any other relevant methodology for calculating such alternative rate, in each case that, in the Sponsor’s sole discretion, are not inconsistent with accepted market practice for asset-backed securities or
securitization financing transactions or applicable regulatory or legislative action or guidance for the use of such alternative rate for securities such as the Series 2019-1 Notes, as determined by the
Sponsor in its sole discretion without the consent of any Series 2019-1 Noteholders and without satisfying the amendment provisions of this Indenture Supplement or any other transaction document. If the
Sponsor does not provide an alternative rate for any Interest Period after the occurrence of an Alternative Rate Trigger, then, for purposes of calculating the interest rate for such Interest Period, LIBOR will be calculated pursuant to the
definition of LIBOR herein. 
 For the avoidance of doubt, (i) in no event shall the Calculation Agent be responsible for,
(A) other than as set forth in the definition of LIBOR herein, determining LIBOR or any substitute for LIBOR if such rate does not appear on the LIBOR 01 Page (or the successor page or screen as may replace that page or screen or that service)
or (B) unless so directed by the Sponsor in writing, making any adjustments to such alternative rate or the spread thereon, the day count, the business day convention, the definition of business day, interest determination dates and any other
related provisions and definitions or any other relevant methodology for calculating such alternative rate, including any adjustment factor the Sponsor determines is needed to make such alternative rate be consistent with accepted market practice or
applicable regulatory or legislative action or guidance for the use of such alternative rate; and (ii) in connection with any of the matters referenced in clause (i) of this paragraph, the Calculation Agent shall be entitled to
conclusively rely on any determinations made by the Sponsor in regards to such matters and shall have no liability for any such actions taken at the direction of the Sponsor. 

Section 3.09 Computation of Interest. Unless otherwise specified in this Indenture Supplement, interest for any period shall be
calculated from and including the first day of such period, to but excluding the last day of such period. 

  
 36 

 Section 3.10    Accounts. 

(a) Accounts; Deposits to and Distributions from Accounts. The Indenture Trustee shall cause to be established on or before the Issuance
Date and maintain four Eligible Accounts denominated as follows: the “Series 2019-1 Interest Funding Account,” the “Series 2019-1 Principal
Funding Account,” the “Series 2019-1 Negative Carry Account” and the “Series 2019-1 Spread Account” (collectively, the
“Series 2019-1 Accounts”) in the name of the Indenture Trustee, bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Series 2019-1
Noteholders. The Indenture Trustee shall possess all right, title and interest to all funds on deposit from time to time in each of the Series 2019-1 Accounts and in all proceeds therefrom, for the benefit of
the Secured Parties. The Series 2019-1 Accounts constitute Supplemental Accounts and shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Series 2019-1 Noteholders. If, at any time, the institution holding any Series 2019-1 Account ceases to be an Eligible Institution, the Issuing Entity shall within 15 Business Days (or such longer period, not to exceed 30
calendar days, as to which each Series 2019-1 Rating Agency may consent) establish a new applicable Series 2019-1 Account, that is an Eligible Account and shall transfer
any cash and/or investments to such new Series 2019-1 Account. From the date such new Series 2019-1 Account is established, it shall be a Series 2019-1 Account, bearing the name of the Series 2019-1 Account it has replaced. The Indenture Trustee shall not be responsible for protecting or maintaining any security
interest in the Series 2019-1 Accounts. 
 (b) All payments to be made from time to time by the
Indenture Trustee to Series 2019-1 Noteholders out of funds in the Series 2019-1 Accounts pursuant to this Indenture Supplement shall be made by the Indenture Trustee to
the Paying Agent not later than 12:00 noon on the applicable Distribution Date but only to the extent of funds in the applicable Series 2019-1 Account or as otherwise provided in Article III. 

Section 3.11    Spread Account. 

(a) On the Closing Date, the Depositor shall deposit into the Series 2019-1 Spread Account an amount
equal to the Spread Account Initial Deposit. 
 (b) Funds on deposit in the Series 2019-1 Spread
Account overnight or for a longer period shall at all times be invested in Eligible Investments at the written direction of the Servicer or its agent, subject to the restrictions set forth in the Indenture and subject to the requirement that each
such Eligible Investment shall have a stated maturity on or prior to the following Transfer Date. Net interest and earnings (less investment expenses) on funds on deposit in the Series 2019-1 Spread Account,
if any, shall constitute Series 2019-1 Noteholder Available Interest Amounts. 
 (c) On any Transfer
Date on which the amount of funds on deposit in the Series 2019-1 Spread Account is greater than the Spread Account Required Amount on such Transfer Date, unless otherwise instructed by the Depositor, the
Servicer shall withdraw the amount of such excess from the Series 2019-1 Spread Account and allocate and pay such excess to the holders of the Certificates. 

  
 37 

 (d) Upon payment in full of the Outstanding Principal Amount of the Series 2019-1 Notes, any
funds remaining on deposit in the Series 2019-1 Spread Account shall be distributed to the holders of the Certificates. 

(e) If the Spread Account Required Amount increases as a result of an increase in the Spread Account Percentage, to the extent that Series 2019-1 Available Interest Amounts are insufficient to make the deposit described in Section 3.01(a)(vi), the Depositor may, in its sole discretion, deposit the amount of such shortfall into the Spread
Account.    In addition, the Depositor may, in its discretion, at any time and from time to time, deposit additional amounts into the Spread Account (together with any discretionary increases in the Series 2019-1 Overcollateralization Amount) up to 5.0% of the initial Series 2019-1 Nominal Liquidation Amount. 

Section 3.12    Negative Carry Account. 

(a) During the Revolving Period, if funds are deposited into the Series 2019-1 Principal Funding
Account from the Excess Funding Account, then concurrent with such deposit, funds will be deposited into the Series 2019-1 Negative Carry Account to bring the balance in the Series 2019-1 Negative Carry Account up to the Required Negative Carry Account Balance. 
 (b) If on any Transfer
Date, the amount on deposit in the Series 2019-1 Negative Carry Account exceeds the Required Negative Carry Account Balance on such Transfer Date, the Servicer shall withdraw such excess from the Series 2019-1 Negative Carry Account and pay such excess to the holders of the Certificates; provided, however, that if funds are released from the Series 2019-1
Principal Funding Account and concurrently with such release funds are required to be deposited into the Series 2019-1 Spread Account to maintain the Spread Account Required Amount, such funds in an amount up
to the Spread Account Deposit Amount shall be withdrawn from the Series 2019-1 Negative Carry Account and deposited into the Series 2019-1 Spread Account;
provided, further, that in the event Series 2019-1 Available Principal Amounts have been used to make deposits into the Series 2019-1 Negative Carry
Account and there remains any Series 2019-1 Unreimbursed Amount, such funds in an amount up to the amount of Series 2019-1 Available Principal Amounts so used and not
previously reimbursed shall be treated as Series 2019-1 Available Principal Amounts for the reinstatement of the Series 2019-1 Collateral Amount. 

(c) Funds on deposit in the Series 2019-1 Negative Carry Account overnight or for a longer period
shall at all times be invested in Eligible Investments at the written direction of the Servicer or its agent, subject to the restrictions set forth in the Indenture and subject to the requirement that each such Eligible Investment shall have a
stated maturity on or prior to the following Transfer Date. Net interest and earnings (less investment expenses) on funds on deposit in the Series 2019-1 Negative Carry Account, if any, shall constitute Series
2019-1 Available Interest Amounts. 
 (d) Upon payment in full of the Outstanding Principal Amount
of the Series 2019-1 Notes, any funds remaining on deposit in the Series 2019-1 Negative Carry Account shall be distributed to the holders of the Certificates. 

  
 38 

 Section 3.13 Principal Funding Account. If on any day during the Revolving
Period the amounts on deposit in the Series 2019-1 Principal Funding Account exceed the amount required to maintain the Seller’s Interest at the Minimum Seller’s Interest, the Issuing Entity may
withdraw such excess from the Series 2019-1 Principal Funding Account and treat such amount as “Excess Available Principal Amounts;” provided, however, that such excess shall only be
released if after giving effect to such withdrawal and application and all other deposits, withdrawals and applications to be made on such date, the Seller’s Interest shall not be less than the Minimum Seller’s Interest, the funds on
deposit in the Series 2019-1 Spread Account shall not be less than the Spread Account Required Amount, the funds on deposit in the Series 2019-1 Negative Carry Account
shall not be less than the Required Negative Carry Account Balance, and there is no writedown of the Series 2019-1 Overcollateralization Amount, the Series 2019-1
Collateral Amount or the Outstanding Principal Amount of any Series 2019-1 Notes, in each case, after giving effect to such deposits, withdrawals and applications. 

Section 3.14 Reports and Statements to Series 2019-1 Noteholders. 

(a) On each Distribution Date, the Indenture Trustee shall post to the following website, www.sf.citidirect.com, for viewing by each Series
2019-1 Noteholder, a statement substantially in the form of Exhibit B (the “Servicer Certificate”) prepared and supplied to the Indenture Trustee by the Servicer. 

(b) Not later than the Transfer Date, the Servicer shall deliver to the Owner Trustee, each Series
2019-1 Rating Agency and the Indenture Trustee the Servicer Certificate. 
 (c) On or before January
31 of each calendar year, beginning with January 31, 2019, the Indenture Trustee shall furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Series 2019-1
Noteholder, a statement prepared by the Servicer containing the information which is required to be contained in the statement to Series 2019-1 Noteholders, as set forth in paragraph (a) above, aggregated
for such calendar year or the applicable portion thereof during which such Person was a Series 2019-1 Noteholder, together with other information as is required to be provided by an issuer of indebtedness
under the Internal Revenue Code. Such obligation of the Indenture Trustee shall be deemed to have been satisfied to the extent that substantially comparable information shall be provided by the Servicer pursuant to any requirements of the Internal
Revenue Code as from time to time in effect. 
 ARTICLE IV 

MISCELLANEOUS PROVISIONS 

Section 4.01 Ratification of Indenture. As supplemented by this Indenture Supplement, the Indenture is in all respects ratified
and confirmed and the Indenture as so supplemented by this Indenture Supplement shall be read, taken and construed as one and the same instrument. 

Section 4.02 Counterparts. This Indenture Supplement may be executed in two or more counterparts (and by different parties on
separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument. 

  
 39 

 Section 4.03 Governing Law. This Indenture Supplement shall be governed by and
construed in accordance with the internal laws of the State of New York, without reference to the conflict of law provisions thereof or any other jurisdiction, other than Section 5-1401 and Section 5-1402 of the New York General Obligations Law, and
the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
 Section 4.04
Limitation of Owner Trustee Liability. Notwithstanding anything to the contrary, this Indenture Supplement has been countersigned by Deutsche Bank Trust Company Delaware, not in its individual capacity but solely in its capacity as Owner
Trustee. In no event shall Deutsche Bank Trust Company Delaware in its individual capacity or, except as expressly provided in the Trust Agreement, as Owner Trustee have any liability for the representations, warranties, covenants, agreement or
other obligations of Issuing Entity hereunder or in any certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of Issuing Entity. For all purposes of this Indenture Supplement, in
the performance of its duties or obligations hereunder or in the performance of any duties or obligations of Issuing Entity hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of the Trust
Agreement. 
 Section 4.05 No Registration of the Offered Notes under the Securities Act. 

(a) The Offered Notes have not been registered and will not be registered under the Securities Act, or any state securities laws and may only
be offered, resold, pledged or otherwise transferred only in accordance with the Indenture and this Indenture Supplement and only (i) so long as such Offered Notes are eligible for resale pursuant to Rule 144A, to a person whom the seller
reasonably believes is a “qualified institutional buyer” as defined in Rule 144A under the Securities Act (a “Qualified Institutional Buyer”) acquiring the Offered Notes for its own account or as a fiduciary or agent for
others (which others must also be Qualified Institutional Buyers) to whom notice is given that the resale or other transfer is being made in reliance on Rule 144A, (ii) pursuant to an effective registration statement under the Securities Act
(however, there is no undertaking to register the Offered Notes under any United States federal or state securities laws or any securities laws of any other jurisdiction on any future date), or (iii) if the Offered Notes are not eligible for
resale pursuant to Rule 144A, pursuant to an exemption from registration under the Securities Act other than Rule 144A, and, in each case, in accordance with applicable United States federal or state securities laws or any securities laws of any
other applicable jurisdiction. 
 (b) Each purchaser and any transferor, as applicable, of an Offered Note will be deemed to represent and
agree that: 
 (i) (x) the purchaser (i) is a Qualified Institutional Buyer, (ii) is aware that the sale to it is being made in reliance on
the exemption from registration provided by Rule 144A under the Securities Act and if it is acquiring any such Series 2019-1 Notes or any interest or participation therein for the account of any other Qualified Institutional Buyer, that other
Qualified Institutional Buyer is aware that the sale is being made in reliance on Rule 144A, and (iii) is acquiring the Series 2019-1 Notes or any interest or participation therein for its own account or for one or more accounts, each of which is a
Qualified Institutional Buyer, and as to each of which the purchaser exercises sole investment discretion, and in a principal amount of not less than the minimum denomination of such Series 2019-1 Note for the purchaser and for each such account;

  
 40 

 (ii) the purchaser and any transferee understand that the Series 2019-1 Notes are being offered only in a transaction not involving any public offering in the United States within the meaning of the Securities Act, the Series 2019-1 Notes have not been and will not be registered
under the Securities Act or any state or other applicable securities laws, and, if in the future the purchaser or any transferee decides to offer, resell, pledge or otherwise transfer the Series 2019-1 Notes,
such Series 2019-1 Notes may be offered, resold, pledged or otherwise transferred only in accordance with the Indenture and this Indenture Supplement and only (a) so long as such Series 2019-1 Notes are eligible for resale pursuant to Rule 144A, to a person whom the seller reasonably believes is a Qualified Institutional Buyer acquiring the Series 2019-1
Notes for its own account or as a fiduciary or agent for others (which others must also be Qualified Institutional Buyers) to whom notice is given that the resale or other transfer is being made in reliance on Rule 144A, (b) pursuant to an
effective registration statement under the Securities Act (however, there is no undertaking to register the Series 2019-1 Notes under any United States federal or state securities laws or any securities laws
of any other jurisdiction on any future date), or (c) if the Series 2019-1 Notes are not eligible for resale pursuant to Rule 144A, pursuant to an exemption from registration under the Securities Act
other than Rule 144A, and, in each case, in accordance with applicable United States federal or state securities laws or any securities laws of any other applicable jurisdiction. The purchaser and any transferee acknowledge that no representation is
made by the Issuing Entity or any initial purchasers, as the case may be, as to the availability of any exemption under the Securities Act or any applicable state securities laws for resale of the Series
2019-1 Notes; 
 (iii) unless the relevant legend set out below has been removed from the relevant
Series 2019-1 Notes, the purchaser shall notify each transferee of the Series 2019-1 Notes that (a) such Series 2019-1 Notes
have not been registered under the Securities Act, (b) the holder of such Series 2019-1 Notes is subject to the restrictions on the resale or other transfer thereof described in paragraph (ii) above,
(c) such transferee shall be deemed to have represented (1) either (A) if the Series 2019-1 Notes are eligible for resale pursuant to Rule 144A, such transferee is a Qualified Institutional Buyer
acquiring the Series 2019-1 Notes for its own account or as a fiduciary for others (which are Qualified Institutional Buyers), or (B) if the Series 2019-1 Notes are
not eligible for resale pursuant to Rule 144A, that such transferee is acquiring such Series 2019-1 Notes in reliance on an exemption under the Securities Act other than Rule 144A, and (2) that such
transferee shall notify its subsequent transferees as to the foregoing; 

  
 41 

 (iv) the purchaser and any transferee understand that an investment in the Series 2019-1 Notes involves certain risks, including the risk of loss of all or a substantial part of its investment. The purchaser and any transferee have had access to such financial and other information concerning the
Issuing Entity and the Series 2019-1 Notes as it deemed necessary or appropriate in order to make an informed investment decision with respect to its purchase of the Series
2019-1 Notes, including an opportunity to ask questions of and request information from the Servicer and the Issuing Entity. The purchaser and any transferee have such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of its investment in the Series 2019-1 Notes, and the purchaser and any transferee and any accounts for which it is acting are each able to
bear the economic risk of its investment for an indefinite period of time; 
 (v) in connection with the purchase of the Series 2019-1 Notes (a) none of the Issuing Entity, any initial purchasers, the Servicer, NFC, the Depositor or the Indenture Trustee is acting as a fiduciary or financial or investment adviser for the purchaser or
any transferee; (b) the purchaser or any transferee is not relying (for purposes of making any investment decision or otherwise) upon any advice, counsel or representations (whether written or oral) of the Issuing Entity, any initial
purchasers, the Servicer, NFC, the Depositor or the Indenture Trustee other than in a current confidential offering memorandum supplement or the confidential offering memorandum for such Series 2019-1 Notes
and any representations expressly set forth in a written agreement with such party; (c) none of the Issuing Entity, any initial purchasers, the Servicer, NFC, the Depositor or the Indenture Trustee has given to the purchaser or any transferee
(directly or indirectly through any other person) any assurance, guarantee, or representation whatsoever as to the expected or projected success, profitability, return, performance, result, effect, consequence, or benefit (including legal,
regulatory, tax, financial, accounting, or otherwise) of its purchase or the documentation for the Series 2019-1 Notes, (d) the purchaser or any transferee has consulted with its own legal, regulatory,
tax, business, investment, financial, and accounting advisers to the extent it has deemed necessary, and it has made its own investment decisions (including decisions regarding the suitability of any transaction pursuant to the Indenture) based upon
its own judgment and upon any advice from such advisers as it has deemed necessary and not upon any view expressed by the Issuing Entity, any initial purchasers, the Servicer, NFC, the Depositor or the Indenture Trustee, (e) the purchaser or
any transferee has determined that the rates, prices or amounts and other terms of the purchase and sale of the Series 2019-1 Notes reflect those in the relevant market for similar transactions, (f) the
purchaser or any transferee is purchasing the Series 2019-1 Notes with a full understanding of all of the terms, conditions and risks thereof (economic and otherwise), and is capable of assuming and willing to
assume (financially and otherwise) 

  
 42 

 
these risks, and (g) the purchaser or any transferee is a sophisticated investor familiar with transactions similar to its investment in the Series
2019-1 Notes; 
 (vi) the purchaser and each transferee acknowledge that each Series 2019-1 Note will bear a legend to the following effect unless determined otherwise by the Issuing Entity: 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL
MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN
CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, (2) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL
AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT (HOWEVER, THERE IS NO UNDERTAKING TO REGISTER THE NOTES UNDER ANY UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION ON ANY FUTURE DATE), AND (B) IN ACCORDANCE WITH
THE SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER AND TRANSFEREE 

  
 43 

 
WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE AND THE INDENTURE SUPPLEMENT. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND
EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUING ENTITY, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. 

EACH HOLDER OF A NOTE WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THE NOTE WITH THE ASSETS OF (A) AN
“EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN” DESCRIBED IN
SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF INVESTMENT BY AN
EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR (D) ANY OTHER PLAN THAT IS SUBJECT TO ANY LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (ii) THE ACQUISITION AND HOLDING OF THE NOTE WILL NOT GIVE RISE
TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW. 

(vii) each of the purchaser and any transferee either (x) is not acquiring the notes with the assets of a Plan or any other plan that is
subject to any law that is substantially similar to Title I of ERISA or Section 4975 of the Code, or (y) its acquisition and holding of the Series 2019-1 Note will not give rise to a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any substantially similar applicable law; 

(viii) the purchaser and any transferee are not purchasing the Series 2019-1 Notes with a view to the
resale, distribution or other disposition thereof in violation of the Securities Act; 
 (ix) the purchaser and any transferee will provide
notice to each person to whom it proposes to transfer any interest in the Series 2019-1 Notes of the transfer restrictions and representations set forth in the Indenture and this Indenture Supplement, including the exhibits thereto; 

  
 44 

 (x) the purchaser or any transferee acknowledges that the Series 2019-1 Notes do not
represent deposits with or other liabilities of the Indenture Trustee, any initial purchasers, the Servicer, NFC, the Depositor or any entity related to any of them. Unless otherwise expressly provided in the Indenture or this Indenture Supplement,
each of the Indenture Trustee, any initial purchasers, the Servicer, NFC, the Depositor or any entity related to any of them shall not, in any way, be responsible for or stand behind the capital value or the performance of the Series 2019-1 Notes or the assets held by the Issuing Entity; and 
 (xi) the purchaser acknowledges that the
Indenture Trustee, the Issuing Entity, any initial purchasers, the Servicer, NFC, the Depositor and others will rely upon the truth and accuracy of the foregoing acknowledgments, representations and agreements and agrees that, if any of the
acknowledgments, representations or warranties deemed to have been made by it by virtue of its purchase of a Series 2019-1 Note (or a beneficial interest therein) is no longer accurate, then it shall promptly
so notify NFC and the Depositor in writing. 
 Section 4.06 Retained Notes As of the date of this Indenture, the Retained Notes
have not been registered under the Securities Act and will not be listed on any exchange. Unless and until such Retained Notes have been sold pursuant to a transaction registered under the Securities Act, no transfer of such a Retained Note shall be
made unless such transfer is made pursuant to an effective registration statement under the Securities Act and any applicable state securities laws or is exempt from the registration requirements under the Securities Act and such state securities
laws. Any transferee, other than the Issuing Entity or a Person that is considered the same Person as the Issuing Entity for U.S. federal income tax purposes, acquiring a Retained Note or an interest therein shall be deemed to have made the
representations set forth in Section 2.05(a). 
 (b) No Retained Notes may be sold, pledged or transferred unless counsel
satisfactory to the Indenture Trustee and the Depositor has rendered an opinion to the effect that the Retained Notes to be sold, pledged, or transferred, upon transfer, will be characterized as indebtedness for U.S. federal income tax purposes.

 (c) Legends. Each Retained Note will bear a legend in substantially the following form: 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). NEITHER THIS NOTE NOR
ANY PORTION HEREOF MAY BE OFFERED OR SOLD EXCEPT IN COMPLIANCE WITH THE REGISTRATION PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE PROVISIONS OF ANY STATE BLUE SKY OR 

  
 45 

 
SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH REGISTRATION PROVISIONS. THE TRANSFER OF THIS NOTE IS SUBJECT TO CERTAIN CONDITIONS SET FORTH IN THE INDENTURE REFERRED TO HEREIN.

 NO RETAINED NOTES MAY BE SOLD, PLEDGED OR TRANSFERRED UNLESS COUNSEL SATISFACTORY TO THE INDENTURE TRUSTEE AND THE DEPOSITOR HAS RENDERED
AN OPINION TO THE EFFECT THAT THIS NOTE TO BE SOLD, PLEDGED, OR TRANSFERRED, UPON SUCH TRANSFER, WILL BE CHARACTERIZED AS INDEBTEDNESS FOR U.S. FEDERAL INCOME TAX PURPOSES. 

(d) Exchange for Global Notes. If the Series 2019-1 Noteholder of a Retained Note wishes to
transfer all or a part of its interest in such Retained Note, such holder shall, subject to the terms hereof and the rules and procedures of the Depository, transfer or cause the transfer of such interest for an equivalent beneficial interest in a
Global Note. Subject to the rules and procedures of the Depository, upon (A) receipt by the Note Registrar of such Retained Note properly endorsed for such transfer, (B) receipt by the Note Registrar of written instructions from the Series
2019-1 Noteholder of such Retained Note designating the number, the names, and the principal amounts of Series 2019-1 Notes in the form of Global Notes into which such
Retained Note is to be exchanged (the aggregate of such principal amounts being equal to the aggregate principal amount of the Retained Notes surrendered for exchange) and (C) receipt by the Indenture Trustee and the Depositor of an opinion to
the effect that the Retained Notes to be sold, pledged, or transferred, upon transfer, will be characterized as indebtedness for U.S. federal income tax purposes, then the Note Registrar will reduce the aggregate principal amount of such Retained
Note by the aggregate principal amount of the beneficial interest in such Retained Note to be transferred or exchanged and instruct the Depository to increase the aggregate principal amount of the Global Note specified in such instructions by an
aggregate principal amount equal to such reduction in such aggregate principal amount of the Retained Note and make the corresponding adjustments to the applicable participants’ accounts and, if a new Global Note shall be required, the Issuing
Entity shall execute and the Indenture Trustee shall authenticate and deliver Global Notes of the same Series in the form requested in clause (B), registered in the names specified in the assignment described in clause (B) above, in principal
amounts designated by the transferee (the aggregate of such amounts being equal to the interest in the Retained Notes surrendered by the transferor), which shall not be less than the minimum denomination for the Series
2019-1 Notes. For the avoidance of doubt, the Note Registrar shall be under no obligation to request, and shall suffer no liability for the failure to receive, the instructions and certificates described in
clauses (A), (B) and (C) in the immediately preceding sentence. 
 (e) Transfers Void. Any attempted sale, pledge or other
transfer in contravention of this Section 4.06 will be void ab initio and the purported transferor will continue to be treated as the owner of the Retained Note. 

  
 46 

 (f) Amendments to Transfer Restrictions. In the event that the Issuing Entity or a
Person that is considered the same Person as the Issuing Entity for U.S. federal income tax purposes holds all or a portion of any class of Series 2019-1 Notes, it shall be entitled to amend the transfer
restrictions applicable to such Retained Notes without the consent of the Indenture Trustee or any of the Series 2019-1 Noteholders, subject to the requirements of Section 10.01 of the Indenture. 

Section 4.07 Consent to Amendments in Backup Servicing Agreement. By its purchase and acceptance of a Series 2019-1 Note, each purchaser thereof shall be deemed to have consented to the terms, provisions and limitations specified in Exhibit A to the Backup Servicing Agreement which will be applicable upon the
appointment of the Backup Servicer as Successor Servicer under the Pooling and Servicing Agreement. 
 Section 4.08 Amendments.
Notwithstanding anything herein or the Indenture to the contrary, the definitions of “Excess Cash Collateral Trigger,” “Minimum Seller’s Interest,” “Mismatch Rate,” “Required Seller’s Percentage,”
“Series 2019-1 Subordinated Seller’s Interest Factor” and “Spread Account Percentage,” contained in this Indenture Supplement may be amended by the Issuing Entity upon satisfaction of
the Series 2019-1 Rating Agency Condition with respect thereto, but without the consent of any other Person (including any Securityholder). Notice of any such amendment shall be delivered to the
Securityholders in accordance with the Indenture. 
 Section 4.09 Compliance with Credit Risk Retention Rules. The Sponsor or a
Wholly- Owned Affiliate of the Sponsor shall, to the extent required, retain an economic interest in the credit risk of the securitized assets in accordance in all material respects with Regulation RR, including the restrictions on sale, pledging
and hedging set forth therein. In the event that the Overcollateralization Amount for any Series is less than 5.0% of the aggregate unpaid principal balance of any outstanding investor Notes of such Series (net of any amount held in the principal
funding account that satisfies the requirements for Regulation RR for such Notes and excluding any Notes held for the life of such Notes by the Sponsor or its Wholly-Owned Affiliates), then the Sponsor, either directly or through a Wholly-Owned Affiliate, will retain a portion of the principal amount of Dealer Notes held by the Issuing Entity not allocated as subordination to any Series such that, when added to such Overcollateralization
Amount for such Series, the result will not be less than 5.0%, in each case, calculated in accordance with Regulation RR. For the avoidance of doubt, the Owner Trustee and Indenture Trustee have no obligation or responsibility to monitor or enforce
any party or other Person’s compliance with Regulation RR and shall not be liable to any Securityholder or other Person for any violation of Regulation RR or any similar rule now or hereafter in effect. 

Section 4.10 Fitch as Rating Agency. So long as the Series 2019-1 Notes remain outstanding
and Fitch Ratings, Inc. is a Series 2019-1 Rating Agency, in addition to the ratings required by Section 8.09 of the Indenture, the Indenture Trustee shall also have a long term unsecured debt rating of
at least A by Fitch Ratings, Inc. and a short term rating of at least F1 by Fitch Ratings, Inc. 

  
 47 

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

			
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE,
		 	as Owner Trustee and not in its individual capacity
		
	By:	 	 /s/ Mark Esposito

	Name:	 	Mark Esposito
	Title:	 	ATTORNEY-IN-FACT
		
	By:	 	 /s/ Rosemary Cabrera

	Name:	 	Rosemary Cabrera
	Title:	 	ATTORNEY-IN-FACT
	
	CITIBANK, N.A.,
	as Indenture Trustee and not in its individual capacity
		
	By:	 	 /s/ James Polcari

	Name:	 	James Polcari
	Title:	 	Senior Trust Officer

  

			
	Solely with respect to Section 4.09, acknowledged and agreed to as of the day and year first above written by:
	
	NAVISTAR FINANCIAL CORPORATION
		
	By:	 	 /s/ Michael Wuss

	Name:	 	Michael Wuss
	Title:	 	Assistant Treasurer

 Series 2019-1 Indenture Supplement (NAVMOT II
2019-1) 

 EXHIBIT A-1 

FORM OF SERIES 2019-1 NOTE, CLASS A 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL
MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN
CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, (2) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL
AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT (HOWEVER, THERE IS NO UNDERTAKING TO REGISTER THE NOTES UNDER ANY UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION ON ANY FUTURE DATE), AND (B) IN ACCORDANCE WITH
THE SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE
INDENTURE AND THE INDENTURE SUPPLEMENT. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE
CONTRARY TO THE ISSUING ENTITY, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. 
 EACH HOLDER OF THIS NOTE WILL BE DEEMED TO REPRESENT AND
WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THIS NOTE WITH THE ASSETS OF (A) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN 

  
 Ex. A-1-1 

 
SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN”
DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR (D) ANY OTHER PLAN THAT IS SUBJECT TO ANY LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (ii) THE ACQUISITION AND HOLDING OF THIS NOTE
WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW. 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUING ENTITY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT SHALL NOT AT
ANY TIME INSTITUTE AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL CORPORATION, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL
CORPORATION, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE OR THE INDENTURE SUPPLEMENT. 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 

  
 Ex. A-1-2 

					
	A-1 REGISTERED $            	  		  	No.        CUSIP NO.             

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 

FLOATING RATE DEALER NOTE ASSET-BACKED NOTES, SERIES 2019-1 

Navistar Financial Dealer Note Master Owner Trust II, a statutory trust created under the laws of the State of Delaware (herein referred to as
the “Issuing Entity”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of
                     payable no sooner than on the May 2021 Distribution Date (the “Expected Principal Distribution Date”),
except as otherwise provided below or in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the May 2024 Distribution Date (the “Legal Final Maturity
Date”). Interest shall accrue on this Note from each Distribution Date (or, in the case of the first Distribution Date, from the date of issuance of this Note) to but excluding the following Distribution Date. Interest shall be computed on
the basis of a 360-day year and the actual number of days elapsed. Such principal of and interest on this Note shall be paid in the manner specified 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 as at the time of payment is
legal tender for payment of public and private debts. All payments made by the Issuing Entity 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 for any purpose. 

  
 Ex. A-1-3 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or
in facsimile. 
  

					
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II, as Issuing Entity
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Owner Trustee under the Trust Agreement

 
					
			
	     	 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Date:             , 20    

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

			
	CITIBANK, N.A., not in its individual capacity but solely as Indenture Trustee

 
			
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Date:             , 20    

  
 Ex. A-1-4 

 [REVERSE OF NOTE] 

This Series 2019-1 Note, Class A is one of the Notes of a duly authorized issue of Notes of the
Issuing Entity, designated as its Floating Rate Dealer Note Asset-Backed Notes, Series 2019-1 Class A (herein called the “Notes”), all issued under an Indenture dated as of November 2,
2011 (such Indenture, as supplemented or amended, is herein called the “Indenture”), as supplemented by an Indenture Supplement dated as of June 19, 2019 (the “Indenture Supplement”), between the Issuing Entity
and Citibank, N.A., as Indenture Trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which Indenture and Indenture Supplement reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture and the Indenture Supplement. All terms used in this Note that are defined in
the Indenture or the Indenture Supplement, each as supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture or the Indenture Supplement, as so supplemented or amended. 

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 Issuing Entity, 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 its individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee, (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Issuing Entity, the Indenture Trustee or the Owner Trustee in its individual capacity, or (iv) any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed 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 installment 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 that such Noteholder shall not at any time institute against Navistar Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity, or join in any institution against Navistar
Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Notes, the Indenture or the Indenture Supplement. 
 Prior to the due
presentment for registration of transfer of this Note, the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity 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 is overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the
contrary. 

  
 Ex. A-1-5 

 Each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note
Owner, a beneficial interest in this Note, agrees to provide to the Person from whom it receives payments on the Notes (including the Paying Agent) the Noteholder Tax Identification Information and, upon request, to the extent FATCA Withholding Tax
is applicable, the Noteholder FATCA Information. In addition, each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note, agrees that the Indenture Trustee has the right to
withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements
of the preceding sentence. 
 THIS NOTE AND THE INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 No reference herein to the Indenture or the Indenture Supplement and no provision of this Note
or of the Indenture or the Indenture Supplement shall alter or impair the obligation of the Issuing Entity, 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. 

  
 Ex. A-1-6 

 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 attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 

 

			
	Dated:	 	  

			
	
	  

	Signature Guaranteed

  
 Ex. A-1-7 

 EXHIBIT A-2 

FORM OF SERIES 2019-1 NOTE, CLASS B 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL
MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN
CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, (2) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL
AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT (HOWEVER, THERE IS NO UNDERTAKING TO REGISTER THE NOTES UNDER ANY UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION ON ANY FUTURE DATE), AND (B) IN ACCORDANCE WITH
THE SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE
INDENTURE AND THE INDENTURE SUPPLEMENT. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE
CONTRARY TO THE ISSUING ENTITY, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. 
 EACH HOLDER OF THIS NOTE WILL BE DEEMED TO REPRESENT AND
WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THIS NOTE WITH THE ASSETS OF (A) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN 

  
 Ex. A-2-1 

 
SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN”
DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR (D) ANY OTHER PLAN THAT IS SUBJECT TO ANY LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (ii) THE ACQUISITION AND HOLDING OF THIS NOTE
WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW. 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUING ENTITY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT SHALL NOT AT
ANY TIME INSTITUTE AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL CORPORATION, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL
CORPORATION, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE OR THE INDENTURE SUPPLEMENT. 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 

  
 Ex. A-2-2 

			
	B-1 REGISTERED $            	  	No.        CUSIP NO.             

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 

FLOATING RATE DEALER NOTE ASSET-BACKED NOTES, SERIES 2019-1 

Navistar Financial Dealer Note Master Owner Trust II, a statutory trust created under the laws of the State of Delaware (herein referred to as
the “Issuing Entity”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of
                     payable no sooner than on the May 2021 Distribution Date (the “Expected Principal Distribution Date”),
except as otherwise provided below or in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the May 2024 Distribution Date (the “Legal Final Maturity
Date”). Interest shall accrue on this Note from each Distribution Date (or, in the case of the first Distribution Date, from the date of issuance of this Note) to but excluding the following Distribution Date. Interest shall be computed on
the basis of a 360-day year and the actual number of days elapsed. Such principal of and interest on this Note shall be paid in the manner specified 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 as at the time of payment is
legal tender for payment of public and private debts. All payments made by the Issuing Entity 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 for any purpose. 

This Series 2019-1 Note, Class B is subordinate in the right to payment to the Series 2019-1 Notes, Class A in the manner provided in the Indenture and the Indenture Supplement. 

  
 Ex. A-2-3 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or
in facsimile. 
  

					
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II, as Issuing Entity
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Owner Trustee under the Trust Agreement

 
					
			
	     	 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Date:            , 20    

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

			
	CITIBANK, N.A., not in its individual capacity but solely as Indenture Trustee

 
			
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Date:             , 20    

  
 Ex. A-2-4 

 [REVERSE OF NOTE] 

This Series 2019-1 Note, Class B is one of the Notes of a duly authorized issue of Notes of the
Issuing Entity, designated as its Floating Rate Dealer Note Asset-Backed Notes, Series 2019-1 Class B (herein called the “Notes”), all issued under an Indenture dated as of November 2,
2011 (such Indenture, as supplemented or amended, is herein called the “Indenture”), as supplemented by an Indenture Supplement dated as of June 19, 2019 (the “Indenture Supplement”), between the Issuing Entity
and Citibank, N.A., as Indenture Trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which Indenture and Indenture Supplement reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture and the Indenture Supplement. All terms used in this Note that are defined in
the Indenture or the Indenture Supplement, each as supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture or the Indenture Supplement, as so supplemented or amended. 

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 Issuing Entity, 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 its individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee, (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Issuing Entity, the Indenture Trustee or the Owner Trustee in its individual capacity, or (iv) any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed 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 installment 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 that such Noteholder shall not at any time institute against Navistar Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity, or join in any institution against Navistar
Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Notes, the Indenture or the Indenture Supplement. 
 Prior to the due
presentment for registration of transfer of this Note, the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity 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 is overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the
contrary. 

  
 Ex. A-2-5 

 Each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note
Owner, a beneficial interest in this Note, agrees to provide to the Person from whom it receives payments on the Notes (including the Paying Agent) the Noteholder Tax Identification Information and, upon request, to the extent FATCA Withholding Tax
is applicable, the Noteholder FATCA Information. In addition, each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note, agrees that the Indenture Trustee has the right to
withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements
of the preceding sentence. 
 THIS NOTE AND THE INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 No reference herein to the Indenture or the Indenture Supplement and no provision of this Note
or of the Indenture or the Indenture Supplement shall alter or impair the obligation of the Issuing Entity, 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. 

  
 Ex. A-2-6 

 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 attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 

 

			
	Dated:	 	  

			
	
	  

	Signature Guaranteed

  
 Ex. A-2-7 

 EXHIBIT A-3 

FORM OF SERIES 2019-1 NOTE, CLASS C 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL
MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN
CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, (2) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL
AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT (HOWEVER, THERE IS NO UNDERTAKING TO REGISTER THE NOTES UNDER ANY UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION ON ANY FUTURE DATE), AND (B) IN ACCORDANCE WITH
THE SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE
INDENTURE AND THE INDENTURE SUPPLEMENT. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE
CONTRARY TO THE ISSUING ENTITY, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. 
 EACH HOLDER OF THIS NOTE WILL BE DEEMED TO REPRESENT AND
WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THIS NOTE WITH THE ASSETS OF (A) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN 

  
 Ex. A-3-1 

 
SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN”
DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR (D) ANY OTHER PLAN THAT IS SUBJECT TO ANY LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (ii) THE ACQUISITION AND HOLDING OF THIS NOTE
WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW. 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUING ENTITY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT SHALL NOT AT
ANY TIME INSTITUTE AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL CORPORATION, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL
CORPORATION, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE OR THE INDENTURE SUPPLEMENT. 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 

  
 Ex. A-3-2 

			
	C-1 REGISTERED $            	  	No.      CUSIP NO.             

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 

FLOATING RATE DEALER NOTE ASSET-BACKED NOTES, SERIES 2019-1 

Navistar Financial Dealer Note Master Owner Trust II, a statutory trust created under the laws of the State of Delaware (herein referred to as
the “Issuing Entity”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of
                     payable no sooner than on the May 2021 Distribution Date (the “Expected Principal Distribution Date”),
except as otherwise provided below or in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the May 2024 Distribution Date (the “Legal Final Maturity
Date”). Interest shall accrue on this Note from each Distribution Date (or, in the case of the first Distribution Date, from the date of issuance of this Note) to but excluding the following Distribution Date. Interest shall be computed on
the basis of a 360-day year and the actual number of days elapsed. Such principal of and interest on this Note shall be paid in the manner specified 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 as at the time of payment is
legal tender for payment of public and private debts. All payments made by the Issuing Entity 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 for any purpose. 

This Series 2019-1 Note, Class C is subordinate in the right to payment to the Series 2019-1 Notes, Class A and the Series 2019-1 Notes, Class B in the manner provided in the Indenture and the Indenture Supplement. 

  
 Ex. A-3-3 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or
in facsimile. 
  

					
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II, as Issuing Entity
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Owner Trustee under the Trust Agreement

 
					
			
	      	 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Date:             , 20    

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

			
	CITIBANK, N.A., not in its individual capacity but solely as Indenture Trustee

 
			
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Date:             , 20    

  
 Ex. A-3-4 

 [REVERSE OF NOTE] 

This Series 2019-1 Note, Class C is one of the Notes of a duly authorized issue of Notes of the
Issuing Entity, designated as its Floating Rate Dealer Note Asset-Backed Notes, Series 2019-1 Class C (herein called the “Notes”), all issued under an Indenture dated as of November 2,
2011 (such Indenture, as supplemented or amended, is herein called the “Indenture”), as supplemented by an Indenture Supplement dated as of June 19, 2019 (the “Indenture Supplement”), between the Issuing Entity
and Citibank, N.A., as Indenture Trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which Indenture and Indenture Supplement reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture and the Indenture Supplement. All terms used in this Note that are defined in
the Indenture or the Indenture Supplement, each as supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture or the Indenture Supplement, as so supplemented or amended. 

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 Issuing Entity, 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 its individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee, (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Issuing Entity, the Indenture Trustee or the Owner Trustee in its individual capacity, or (iv) any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed 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 installment 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 that such Noteholder shall not at any time institute against Navistar Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity, or join in any institution against Navistar
Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Notes, the Indenture or the Indenture Supplement. 
 Prior to the due
presentment for registration of transfer of this Note, the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity 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 is overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the
contrary. 

  
 Ex. A-3-5 

 Each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note
Owner, a beneficial interest in this Note, agrees to provide to the Person from whom it receives payments on the Notes (including the Paying Agent) the Noteholder Tax Identification Information and, upon request, to the extent FATCA Withholding Tax
is applicable, the Noteholder FATCA Information. In addition, each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note, agrees that the Indenture Trustee has the right to
withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements
of the preceding sentence. 
 THIS NOTE AND THE INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 No reference herein to the Indenture or the Indenture Supplement and no provision of this Note
or of the Indenture or the Indenture Supplement shall alter or impair the obligation of the Issuing Entity, 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. 

  
 Ex. A-3-6 

 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 attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 

 

			
	Dated:	 	  

			
	
	  

	Signature Guaranteed

  
 Ex. A-3-7 

 EXHIBIT A-4 

FORM OF SERIES 2019-1 NOTE, CLASS D 

THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”)
OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING
OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A PRINCIPAL AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL
MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN
CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, (2) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL
AMOUNT OF NOT LESS THAN $1,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT (HOWEVER, THERE IS NO UNDERTAKING TO REGISTER THE NOTES UNDER ANY UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION ON ANY FUTURE DATE), AND (B) IN ACCORDANCE WITH
THE SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE
INDENTURE AND THE INDENTURE SUPPLEMENT. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE
CONTRARY TO THE ISSUING ENTITY, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. 
 EACH HOLDER OF THIS NOTE WILL BE DEEMED TO REPRESENT AND
WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THIS NOTE WITH THE ASSETS OF (A) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN 

  
 Ex. A-4-1 

 
SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN”
DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF
INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR (D) ANY OTHER PLAN THAT IS SUBJECT TO ANY LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE OR (ii) THE ACQUISITION AND HOLDING OF THIS NOTE
WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW. 

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”),
TO THE ISSUING ENTITY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT SHALL NOT AT
ANY TIME INSTITUTE AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL CORPORATION, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION OR NAVISTAR FINANCIAL
CORPORATION, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE OR THE INDENTURE SUPPLEMENT. 

THE HOLDER OF THIS NOTE, BY ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL
INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 

  
 Ex. A-4-2 

					
	D-1 REGISTERED $            	  		  	No.      CUSIP NO.             

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 

FLOATING RATE DEALER NOTE ASSET-BACKED NOTES, SERIES 2019-1 

Navistar Financial Dealer Note Master Owner Trust II, a statutory trust created under the laws of the State of Delaware (herein referred to as
the “Issuing Entity”), for value received, hereby promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of
                     payable no sooner than on the May 2021 Distribution Date (the “Expected Principal Distribution Date”),
except as otherwise provided below or in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the May 2024 Distribution Date (the “Legal Final Maturity
Date”). Interest shall accrue on this Note from each Distribution Date (or, in the case of the first Distribution Date, from the date of issuance of this Note) to but excluding the following Distribution Date. Interest shall be computed on
the basis of a 360-day year and the actual number of days elapsed. Such principal of and interest on this Note shall be paid in the manner specified 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 as at the time of payment is
legal tender for payment of public and private debts. All payments made by the Issuing Entity 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 for any purpose. 

This Series 2019-1 Note, Class D is subordinate in the right to payment to the Series 2019-1 Notes, Class A, the Series 2019-1 Notes, Class B, and the Series 2019-1 Notes, Class C in the manner provided in
the Indenture and the Indenture Supplement. 

  
 Ex. A-4-3 

 IN WITNESS WHEREOF, the Issuing Entity has caused this instrument to be signed, manually or
in facsimile. 
  

					
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II, as Issuing Entity
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Owner Trustee under the Trust Agreement

 
					
			
	     	 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Date:             , 20    

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

			
	CITIBANK, N.A., not in its individual capacity but solely as Indenture Trustee

 
			
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Date:             , 20    

  
 Ex. A-4-4 

 [REVERSE OF NOTE] 

This Series 2019-1 Note, Class D is one of the Notes of a duly authorized issue of Notes of the
Issuing Entity, designated as its Floating Rate Dealer Note Asset-Backed Notes, Series 2019-1 Class D (herein called the “Notes”), all issued under an Indenture dated as of November 2,
2011 (such Indenture, as supplemented or amended, is herein called the “Indenture”), as supplemented by an Indenture Supplement dated as of June 19, 2019 (the “Indenture Supplement”), between the Issuing Entity
and Citibank, N.A., as Indenture Trustee (the “Indenture Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which Indenture and Indenture Supplement reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture and the Indenture Supplement. All terms used in this Note that are defined in
the Indenture or the Indenture Supplement, each as supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture or the Indenture Supplement, as so supplemented or amended. 

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 Issuing Entity, 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 its individual capacity, (ii) any owner of a beneficial interest in the Issuing Entity, the Owner Trustee or the Indenture Trustee, (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Issuing Entity, the Indenture Trustee or the Owner Trustee in its individual capacity, or (iv) any holder of a beneficial interest in the Issuing Entity, the Owner Trustee or the
Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in its individual capacity, except as any such Person may have expressly agreed 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 installment 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 that such Noteholder shall not at any time institute against Navistar Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity, or join in any institution against Navistar
Financial Securities Corporation, Navistar Financial Corporation or the Issuing Entity of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy
or similar law in connection with any obligations relating to the Notes, the Indenture or the Indenture Supplement. 
 Prior to the due
presentment for registration of transfer of this Note, the Issuing Entity, the Indenture Trustee and any agent of the Issuing Entity 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 is overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent shall be affected by notice to the
contrary. 

  
 Ex. A-4-5 

 Each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note
Owner, a beneficial interest in this Note, agrees to provide to the Person from whom it receives payments on the Notes (including the Paying Agent) the Noteholder Tax Identification Information and, upon request, to the extent FATCA Withholding Tax
is applicable, the Noteholder FATCA Information. In addition, each Noteholder or Note Owner, by its acceptance of this Note or, in the case of a Note Owner, a beneficial interest in this Note, agrees that the Indenture Trustee has the right to
withhold any amounts of interest (properly withholdable under law and without any corresponding gross-up) payable to a Noteholder or holder of an interest in a Note that fails to comply with the requirements
of the preceding sentence. 
 THIS NOTE AND THE INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 No reference herein to the Indenture or the Indenture Supplement and no provision of this Note
or of the Indenture or the Indenture Supplement shall alter or impair the obligation of the Issuing Entity, 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. 

  
 Ex. A-4-6 

 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 attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 

 

			
	Dated:	 	  

			
	
	  

	Signature Guaranteed

  
 Ex. A-4-7 

 EXHIBIT B 

FORM OF MONTHLY SERVICER AND SETTLEMENT CERTIFICATE 

NOTE STATEMENT 
 MONTHLY SERVICER
AND SETTLEMENT CERTIFICATE #      
 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 

SERIES 2019-1 NOTES 

Under the Series 2019-1 Indenture Supplement dated as of June 19, 2019 (the “Indenture Supplement”) by
and among the Navistar Financial Dealer Note Master Owner Trust II (the “Master Owner Trust II”) and the Citibank N.A., as trustee (the “Indenture Trustee”), the information which is required to be prepared with respect to the
Distribution Date of         , the Transfer Date of          and with respect to the performance of the Master Owner Trust II during the Due Period ended
on          and the Distribution Period ended on          is set forth below. Certain of the information is presented on the basis of an original principal
amount of $1,000 per Note. Certain other information is presented based on the aggregate amounts for the Master Owner Trust II as a whole. Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the
Indenture Supplement. 
  

					
	 1
	  	NFC is Servicer under the Agreement.	  	
			
	 2
	  	The undersigned is a Servicing Officer.	  	
			
	 3
	  	Master Trust II Information.	  	
			
	 3.1
	  	The amount of the Advance, if any, for the Due Period	  	0.00
			
	 3.2
	  	The amount of ITEC Finance Charges for the Due Period	  	0.00
			
	 3.3
	  	The average daily balance of Dealer Notes outstanding during the Due Period	  	0.00
			
	 3.4
	  	The total amount of Advance Reimbursements for the Due Period	  	0.00
			
	 3.5
	  	The aggregate principal amount of Dealer Notes repaid during the Due Period	  	0.00
			
	 3.6
	  	The aggregate principal amount of Dealer Notes purchased by the Master Trust II during the Due Period	  	0.00
			
	 3.7.1
	  	The amount of the Servicing Fee for the Due Period	  	0.00
			
	 3.7.2
	  	The amount of the Backup Servicing Fee for the Due Period	  	0.00
			
	 3.7.3
	  	The amount of the Backup Servicing Expenses for the Due Period	  	0.00
			
	 3.8
	  	The average daily Master Trust II Seller’s Interest during the Due Period	  	0.00
			
	 3.9
	  	The Master Trust II Seller’s Interest as of the Distribution Date (after giving effect to the transactions set forth in Article IV of the Supplement)	  	0.00
			
	 3.10
	  	The aggregate amount of Collections for the Due Period	  	0.00
			
	3.11	  	The aggregate amount of Finance Charge Collections for the Due Period	  	0.00

  
 Ex. C 

					
	3.12	  	The aggregate amount of Principal Collections for the Due Period	  	0.00
			
	3.13	  	The amount of Dealer Note Losses/(Recoveries) for the Due Period	  	0.00
			
	3.14	  	The aggregate amount of Dealer Notes as of the last day of the Due Period	  	0.00
			
	3.15	  	The aggregate amount of funds on deposit in the Excess Funding Account as of the end of the last day of the Due Period (after giving effect to the transactions set forth in Article IV of the Supplement and Article IV of the
Agreement)	  	0.00
			
	3.16	  	Eligible Investments in the Excess Funding Account:	  	
			
		  	 a.   The aggregate amount of funds invested in Eligible Investments as of the
end of the Due Period
	  	0.00
		  	 b.  Description of each Eligible Investment:
	  	“xxx”
		  	 c.   The rate of interest applicable to each such Eligible
Investment
	  	0.00
		  	 d.  The rating of each such Eligible Investment
	  	AAAm/Aaa
			
	3.17	  	The aggregate amount of Dealer Notes issued to finance OEM Vehicles, as of the end of the Due Period	  	0.00
			
	3.18	  	The Dealers with the five largest aggregate outstanding principal amounts of Dealer Notes in the Master Trust II as of the end of the Due Period:	  	
			
		  	 i)   DEALER’S NAME 1
	  	
		  	 ii)  DEALER’S NAME 2
	  	
		  	 iii)   DEALER’S NAME 3
	  	
		  	 iv)   DEALER’S NAME 4
	  	
		  	 v)  DEALER’S NAME 5
	  	
			
	3.19	  	Aggregate amount of delinquent principal payments (past due greater than 30 days) as a percentage of the total principal amount outstanding, as of the end of the Due Period	  	0.00
			
	3.20	  	The aggregate amount of Dealer Notes issued to finance used vehicles, as of the end of the Due Period	  	0.00
			
	3.21	  	The aggregate amount of funds on deposit in the Servicer Transition Fee Account as of the end of the last day of the Due Period (after giving effect to the transactions set forth in Article IV of the Supplement)	  	0.00
			
	3.22	  	Eligible Investments in the Servicer Transition Fee Account:	  	
			
		  	 a.   The aggregate amount of funds invested in Eligible Investments
	  	0.00
		  	 b.  Description of each Eligible Investment:
	  	“xxx”
		  	 c.   The rate of interest applicable to each such Eligible
Investment
	  	0.00
		  	 d.  The rating of each such Eligible Investment
	  	0.00
			
	3.23	  	The aggregate amount of funds on deposit in the Servicer Transition Fee Account as of the Distribution Date (after giving effect to the transactions set forth in Article IV of the Supplement and to the payments made on the
Distribution Date)	  	0.00

  
 Ex. C 

					
	4.0	  	[RESERVED]	  	
			
	5	  	Series 2019-1 Notes Information	  	
			
	5.1	  	Series 2019-1 Nominal Liquidation Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2019-1 Indenture Supplement and to payments
made on the Payment Date).	  	0.00
			
		  	Cumulative Reductions (Net of Reinstatements) of the Series 2019-1 Nominal Liquidation Amount, if any, as of the Transfer Date	  	0.00
			
	5.2	  	Series 2019-1 Collateral Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2019-1 Indenture Supplement and to payments made on the Payment Date).	  	0.00
			
	5.3	  	Series 2019-1 Overcollateralization Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2019-1 Indenture Supplement and to payments made on the Payment Date).	  	0.00
			
		  	Series 2019-1 Target Overcollateralization Amount, if any, as of the Transfer Date	  	0.00
			
		  	Cumulative Reductions (Net of Reinstatements) of the Series 2019-1 Overcollateralization Amount Deficiency, if any, as of the Transfer Date	  	0.00
			
	5.4	  	Series 2019-1 Noteholder Allocated Dealer Note Losses / (Recoveries) for the Due Period	  	0.00
			
		  	Series 2019-1 Subordinated Seller’s Interest Allocated Dealer Note Losses / (Recoveries) for the Due Period	  	0.00
			
		  	Series 2019-1 Allocated Dealer Note Losses / (Recoveries) for the Due Period	  	0.00
			
	5.5	  	Series 2019-1 Noteholder Allocated Interest Amounts for the Due Period	  	0.00
			
		  	Series 2019-1 Subordinated Seller’s Interest Allocated Interest Amounts for the Due Period	  	0.00
			
		  	Series 2019-1 Allocated Interest Amounts for the Due Period	  	0.00
			
	5.6	  	Series 2019-1 Noteholder Allocated Principal Amounts for the Due Period	  	0.00
			
		  	Series 2019-1 Subordinated Seller’s Interest Allocated Principal Amounts for the Due Period	  	0.00
			
		  	Series 2019-1 Allocated Principal Amounts for the Due Period	  	0.00
			
	5.7	  	[Reserved]	  	0.00
			
	5.8	  	Series 2019-1 Noteholder Available Interest Amounts with respect to the Due Period	  	0.00
			
		  	Series 2019-1 Additional Available Interest Amounts with respect to the Due Period	  	0.00
			
		  	Series 2019-1 Available Interest Amounts with respect to the Due Period	  	0.00

  
 Ex. C 

					
	5.9	  	Series 2019-1 Noteholder Available Principal Amounts with respect to the Due Period	  	0.00
			
		  	Series 2019-1 Additional Available Principal Amounts with respect to the Due Period	  	0.00
			
		  	Series 2019-1 Available Principal Amounts with respect to the Due Period	  	0.00
			
	5.10	  	Shortfall in Series Available Principal Amounts, if any, for the Due Period	  	0.00
			
	5.11	  	Sellers Invested Amount for the Series 2019-1 Notes for the Due Period	  	0.00
			
	5.12	  	Shortfall in Series Available Interest Amounts, if any, for the Due Period	  	0.00
			
	5.13	  	Unreimbursed reductions to the Series 2019-1 Collateral Amount, if any, for the Due Period	  	0.00
			
	5.14	  	Nominal Liquidation Amount plus Accrued and Unpaid Interest as of the Transfer Date	  	0.00
			
	5.15	  	Series 2019-1 Required Seller’s Invested Amount as of the Payment Date	  	0.00
			
	5.16	  	Series 2019-1 Controlled Accumulation Amount, if any, for the Due Period	  	0.00
			
	5.17	  	Series 2019-1 Controlled Deposit Amount, if any, for the Due Period	  	0.00
			
	5.18	  	Series Noteholder Variable Allocation Percentage for the Due Period	  	0.00
			
		  	Series Subordinated Seller’s Interest Variable Allocation Percentage for the Due Period	  	0.00
			
		  	Series Variable Allocation Percentage for the Due Period	  	0.00
			
	5.19	  	Series Noteholder Fixed Allocation Percentage for the Due Period	  	0.00
			
		  	Series Subordinated Seller’s Interest Fixed Allocation Percentage for the Due Period	  	0.00
			
		  	Series Fixed Allocation Percentage for the Due Period	  	0.00
			
	5.20	  	Total amount to be distributed on the Series 2019-1 Notes on the Payment Date	  	0.00
			
	5.21	  	Total amount, if any, to be distributed on the Series 2019-1 Notes on the Payment Date allocable to the Outstanding Principal Amount	  	0.00
			
	5.22	  	Total amount to be distributed on the Series 2019-1 Notes on the Payment Date allocable to interest on the Series 2019-1 Notes	  	0.00
			
	5.23.1	  	Series 2019-1 Servicing Fee to be paid on the Payment Date	  	0.00
			
	5.23.2	  	Series 2019-1 Backup Servicing Expenses to be paid on the Payment Date	  	0.00
			
	5.23.3	  	Series 2019-1 Backup Servicing Fee to be paid on the Payment Date	  	0.00

  
 Ex. C 

					
	5.24.1	  	Series 2019-1 Investment Income	  	0.00
			
	5.24.2	  	Series 2019-1 Principal Funding Account investment income	  	0.00
			
	5.24.3	  	Series 2019-1 Negative Carry Account investment income	  	0.00
			
	5.24.4	  	Series 2019-1 Interest Funding Account investment income	  	0.00
			
	5.24.5	  	Series 2019-1 Spread Account investment income	  	0.00
			
	5.25	  	Series Excess Available Interest Amounts for the Due Period	  	0.00
			
	5.26	  	Excess Available Interest Amounts for the Due Period allocated to other Series of Notes	  	0.00
			
	5.27	  	[RESERVED]	  	
			
	5.28	  	Excess Available Principal Collections allocated from other series of Notes to Series 2019-1 for the Due Period	  	0.00
			
	5.29	  	[RESERVED]	  	
			
	5.30	  	Amount of Excess Available Principal Collections allocated to other Series of Notes for the Due Period	  	0.00
			
	5.31	  	Cash Collateral Percentage as of the Transfer Date	  	0.00
			
	5.32	  	Mismatch Amount for the Series 2019-1 Notes for the Due Period	  	0.00
			
	5.33	  	Reimbursement Amount for the Series 2019-1 Notes for the Due Period	  	0.00
			
	5.34	  	Certain amounts and calculations referenced in the definition of Early Redemption Event	  	See Exhibit “A”
			
	6	  	Account Information	  	
			
	6.1	  	Series 2019-1 Spread Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	6.2	  	Series 2019-1 Spread Account Required Amount, if any, as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	6.3	  	Series 2019-1 Principal Funding Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	6.4	  	Series 2019-1 Negative Carry Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
		  	Series 2019-1 Required Negative Carry Account Balance, if any, as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	6.5	  	Series 2019-1 Interest Funding Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00

  
 Ex. C 

					
	7	  	Class A Notes Information	  	
			
	7.1	  	Class A Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	7.2	  	Class A Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	7.3	  	Total amount to be distributed on the Class A Notes on the Payment Date	  	0.00
			
	7.4	  	Total amount, if any, to be distributed on the Class A Notes on the Payment Date allocable to the Class A Outstanding Principal Amount	  	0.00
			
	7.5	  	Total amount to be distributed on the Class A Notes on the Payment Date allocable interest on the Class A Notes	  	0.00
			
	7.6	  	Class A Monthly Interest for the Interest Period	  	0.00
			
	8	  	Class B Notes Information	  	
			
	8.1	  	Class B Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	8.2	  	Class B Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	8.3	  	Total amount to be distributed on the Class B Notes on the Payment Date	  	0.00
			
	8.4	  	Total amount, if any, to be distributed on the Class B Notes on the Payment Date allocable to the Class B Outstanding Principal Amount	  	0.00
			
	8.5	  	Total amount to be distributed on the Class B Notes on the Payment Date allocable interest on the Class B Notes	  	0.00
			
	8.6	  	Class B Monthly Interest for the Interest Period	  	0.00
			
	9	  	Class C Notes Information	  	
			
	9.1	  	Class C Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	9.2	  	Class C Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	9.3	  	Total amount to be distributed on the Class C Notes on the Payment Date	  	0.00
			
	9.4	  	Total amount, if any, to be distributed on the Class C Notes on the Payment Date allocable to the Class C Outstanding Principal Amount	  	0.00
			
	9.5	  	Total amount to be distributed on the Class C Notes on the Payment Date allocable interest on the Class C Notes	  	0.00
			
	9.6	  	Class C Monthly Interest for the Interest Period	  	0.00

  
 Ex. C 

					
	10	  	Class D Notes Information	  	
			
	10.1	  	Class D Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	10.2	  	Class D Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	10.3	  	Total amount to be distributed on the Class D Notes on the Payment Date	  	0.00
			
	10.4	  	Total amount, if any, to be distributed on the Class D Notes on the Payment Date allocable to the Class D Outstanding Principal Amount	  	0.00
			
	10.5	  	Total amount to be distributed on the Class D Notes on the Payment Date allocable interest on the Class D Notes	  	0.00
			
	10.6	  	Class D Monthly Interest for the Interest Period	  	0.00

 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this certificate this
             day of                     ,
            . “xxxx” 
  

			
	 NAVISTAR FINANCIAL CORPORATION,
 as
Servicer

		
	By:	 	
	Its:	 	

  
 Ex. Cdrrx-ex101_7.htm

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

This SECURITIES PURCHASE AGREEMENT (this “Agreement”) is dated as of June 20, 2019, between DURECT Corporation, a Delaware corporation (the “Company”), and each purchaser identified on the signature pages hereto (each, including its successors and assigns, an “Investor” and collectively, the “Investors”).

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Investor, and each Investor, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement;

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Investor agree as follows.

1.The Company has authorized the sale and issuance of up to 29,000,000 shares (the “Shares”) of the Company’s common stock, $0.0001 par value per share (the “Common Stock”), for a purchase price of $0.52 per share (the “Per Share Purchase Price”).  The sale and issuance of the Shares have been registered under the Securities Act, pursuant to the Registration Statement of the Company on Form S-3 (No. 333-226518), including all amendments, exhibits and schedules thereto, the documents otherwise deemed to be a part thereof or included therein by the rules and regulations (the “Rules and Regulations”) of the Securities and Exchange Commission (the “Commission”) and any registration statement relating to the sale and issuance of the Shares to the Investors and filed pursuant to Rule 462(b) under the Rules and Regulations (collectively, the “Registration Statement”).

2.On the Closing Date (as defined below), subject to the terms and conditions set forth herein, the Company agrees to sell, and each Investor, severally and not jointly, agrees to purchase, the number of Shares listed opposite such Investor’s name on the Schedule of Investors attached hereto as Exhibit A.  Each Investor shall deliver to the Company via wire transfer of immediately available funds, the aggregate purchase price for the Shares purchased by such Investor as set forth in Exhibit A (such Investor’s “Subscription Amount”), and the Company shall deliver to each Investor its respective Shares.  The Company and each Investor shall deliver the other items set forth in Section 5 deliverable at the Closing.  The Closing shall occur at the offices of King & Spalding LLP, 601 S. California Ave., Palo Alto, California, or such other location as the parties shall mutually agree.  “Closing Date” means the Trading Day on which all conditions precedent to (i) the Investors’ obligations to pay their respective Subscription Amounts; and (ii) the Company’s obligations to deliver the Shares to the Investors have been satisfied or waived, but in no event later than the third Trading Day following the date hereof.  “Trading Day” means a day on which the Nasdaq Global Market is open for trading.

3.The Company has filed with the Commission a prospectus (the “Base Prospectus”) and will promptly file a final prospectus supplement (collectively with the Base Prospectus, the “Prospectus”) with respect to the Registration Statement in conformity with the Securities Act, including Rule 424(b) thereunder.  The Company will cause to be delivered or made available a 

 

 

copy of the Prospectus to the Investors prior to Closing and the Investors hereby consent to the receipt of the Prospectus in portable document format (.pdf) via e-mail.

4.At or prior to the Applicable Time (as defined below), the Company prepared the following information (collectively, the “Time of Sale Information”): (a) the Base Prospectus and (b) each “free-writing prospectus” (as defined pursuant to Rule 405 under the Securities Act) listed on Annex A hereto.  “Applicable Time” means 8:00 A.M. in New York City, on June 20, 2019.

5.Closing Deliverables.

(a)On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Investor the following: 

	
 
	
(i)
	
this Agreement duly executed by the Company;

	
 
	
(ii)
	
a legal opinion of Company Counsel, in form agreed with the Investors;

	
 
	
(iii)
	
a copy of the irrevocable instructions to Computershare, the transfer agent of the Company (the “Transfer Agent”), instructing the Transfer Agent to deliver on an expedited basis via The Depository Trust Company Deposit or Withdrawal at Custodian system (“DWAC”) the number of Shares equal to such Investor’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Investor; and

	
 
	
(iv)
	
the Prospectus (which may be delivered in accordance with Rule 172 under the Securities Act).

(b)On or prior to the Closing Date, each Investor shall deliver or cause to be delivered to the Company the following: 

	
 
	
(i)
	
this Agreement duly executed by such Investor; and

	
 
	
(ii)
	
such Investor’s Subscription Amount by wire transfer to the account specified by the Company. 

6.Closing Conditions.  The obligations of the Company and the Investors to complete the transactions contemplated by this Agreement shall be subject to the following.

(a)The Company’s obligation to issue and sell the Shares to each Investor shall be subject to the following conditions being met: 

	
 
	
(i)
	
the accuracy in all material respects on the Closing Date of the representations and warranties of such Investor contained herein (unless made as of a specific date, in which case such representations and warranties shall be accurate as of such date; 

2

 

 

	
 
	
(ii)
	
all obligations, covenants and agreements of such Investor required to be performed at or prior to the Closing Date shall have been performed; and

	
 
	
(iii)
	
the delivery by such Investor of the items set forth in Section 5(b) of this Agreement.

(b)Each Investor’s obligations hereunder to purchase the Shares shall be subject to the following conditions being met: 

	
 
	
(i)
	
the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (unless made as of a specific date, in which case such representations and warranties will be accurate as of such date); 

	
 
	
(ii)
	
all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; 

	
 
	
(iii)
	
the delivery by the Company of the items set forth in Section 5(a) of this Agreement;

	
 
	
(iv)
	
there shall have been no Material Adverse Effect (as defined below) with respect to the Company since the date hereof; and

	
 
	
(v)
	
from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Nasdaq Global Market, and, at any time prior to the Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on the Nasdaq Global Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of such Investor, makes it impracticable or inadvisable to purchase the Shares at the Closing.

7.Company Representations and Warranties.  The Company makes the following representations, warranties and covenants to the Investors.  

(a)Subsidiaries.  There are no direct or indirect subsidiaries of the Company.

(b)Valid Existence and Good Standing of the Company.  The Company has been duly incorporated, is validly existing as a corporation in good standing under the laws 

3

 

 

of the jurisdiction of its incorporation, has the corporate power and authority to own its property and to conduct its business as described in the Prospectus and is duly qualified to transact business and is in good standing in each jurisdiction in which the conduct of its business or its ownership or leasing of property requires such qualification, except to the extent that the failure to be so qualified or in good standing would not have a material adverse effect on the business, properties, management, financial position, stockholders’ equity, results of operations or prospects of the Company, taken as a whole, or on the performance by the Company of its obligations under this Agreement (a “Material Adverse Effect”).

(c)Execution and Delivery of the Agreement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.  The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary action on the part of the Company.  This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity.

(d)Securities Laws Disclosure; Publicity.  The Company shall (i) before 8:30 A.M., New York City time, on the same Trading Day as the date hereof, issue a press release disclosing all material aspects of the transactions contemplated hereby; (ii) within the time required by the Exchange Act of 1934, as amended (the “Exchange Act”), file with the Commission a Current Report on Form 8-K, disclosing the material terms and conditions of the transactions contemplated hereby and including this Agreement as an exhibit thereto; and (iii) make such other filings and notices in the manner and time required by the Commission with respect to the transactions contemplated hereby.  The Company shall not publicly disclose the name of the Investors, or include the name of the Investors in any filing with the Commission or any regulatory agency or Trading Market, without the prior written consent of the Investors, except (x) as required by U.S. federal securities law or Trading Market regulations, in which case the Company shall provide the Investors with prior notice thereof; or (y) for disclosures consistent with prior disclosures that have been approved by the Investors in accordance with this Section 7(d).  

(e)No Disclosure of Material Non-Public Information.  Except with respect to the material terms and conditions of the transactions contemplated by this Agreement, neither the Company, nor any other Person acting on the Company’s behalf, has provided or will knowingly provide any Investor or its agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto such Investor shall have entered into a written agreement with the Company regarding the confidentiality and use of such information.  The Company understands and confirms that the Investors shall rely on this Section 7(e) in effecting transactions in securities of the Company.  

4

 

 

(f)Time of Sale Information.  The Time of Sale Information, at the Applicable Time, did not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  No order preventing or suspending the use of any of the Time of Sale Information has been issued by the Commission.

(g)Issuer Free Writing Prospectus.  The Company (including its agents and representatives) has not made, used, prepared, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to any “written communication” (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation of an offer to buy the Shares (each such communication by the Company or its agents and representatives, an “Issuer Free Writing Prospectus”) other than the documents listed on Annex A hereto.  Each such Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the completion of the offer and sale of the Shares did not, does not and will not include any information that conflicted, conflicts or will conflict with the information contained in the Registration Statement, the Time of Sale Information or the Prospectus.  

(h)S-3 Eligibility.  At the earliest time after the filing of the Registration Statement that the Company made a bona fide offer (within the meaning of Rule 164(h)(2) under the Securities Act) of the Shares, the Company was not an “ineligible issuer” as defined in Rule 405 under the Securities Act.

(i)Registration Statement and Prospectus.  The Registration Statement has been declared effective by the Commission.  The Company has filed with the Commission the Registration Statement on such form, including the Base Prospectus, for registration under the Securities Act of the offering and sale of the Shares.  No order suspending the effectiveness of the Registration Statement has been issued by the Commission and no proceeding for that purpose or pursuant to Section 8A of the Securities Act against the Company or related to the offering has, to the knowledge of the Company, been initiated or threatened by the Commission.  As of the applicable effective date of the Registration Statement and any amendment thereto, the Registration Statement complied and will comply in all material respects with the Securities Act, and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading.  As of the date of the Prospectus and any amendment or supplement thereto and as of the Closing Date, the Prospectus will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  There are no contracts or documents which are required to be described in the Registration Statement or the Prospectus or to be filed as exhibits thereto which have not been so described and filed as required.

(j)Incorporated Documents.  The documents incorporated by reference in the Registration Statement, the Prospectus or the Time of Sale Information, when they become 

5

 

 

effective or were filed with the Commission, as the case may be, conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable.

(k)Capitalization.  The authorized capital stock of the Company conforms as to legal matters to the description thereof contained in the Prospectus.  The Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock incentive plans, the issuance of shares of Common Stock to employees pursuant to the Company’s employee stock purchase plans, pursuant to the conversion or exercise of Common Stock Equivalents (as defined below) outstanding as of the date of the most recently filed periodic report under the Exchange Act and pursuant to the Company’s Controlled Equity Offering sales agreement with Cantor Fitzgerald & Co. Except as described in the SEC Reports or as a result of the purchase and sale of the Shares, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents.  The issuance and sale of the Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Investors) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities.  All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities.  No further approval or authorization of any stockholder, the board of directors or others is required for the issuance and sale of the Shares. Except as described in the SEC Reports, there are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders. No Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company, except for such rights that have been satisfied by the Company pursuant to registration statements previously filed under the Securities Act.

(l)Authorization and Valid Issuance of the Shares.  The Shares to be sold by the Company have been duly authorized and, when issued and delivered against payment in accordance with the terms of this Agreement, will be validly issued, fully paid and non-assessable, and the issuance of such Shares will not be subject to any preemptive or similar rights.

(m)Further Offerings; Integration.  The Company shall not sell, offer for sale or solicit offers to buy any security (as defined in Section 2 of the Securities Act) in a transaction that would be (i) integrated with the offer or sale of the Shares for purposes of the rules and regulations of the Nasdaq Capital Market or the Nasdaq Global Market or any successor to either of the foregoing (“Trading Market”); and (ii) would require approval of 

6

 

 

the Company’s stockholders prior to the closing of such other transaction, unless such stockholder approval is obtained before the closing of such other transaction. 

(n)No Conflicts.  The execution and delivery by the Company of, and the performance by the Company of its obligations under, this Agreement will not (i) contravene any provision of the certificate of incorporation or by-laws of the Company, (ii) or contravene any provision of applicable law or any judgment, order or decree of any governmental body, agency or court having jurisdiction over the Company, or (iii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien upon any of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) to which the Company is a party or by which any property or asset of the Company is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

(o)No Consents Required.  No consent, approval, authorization, order, registration or qualification of or with any court or arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Company of this Agreement, the issuance by the Company of any of the Shares or the consummation of any of the transactions contemplated by this Agreement, except for such additional steps as may be required by the Financial Industry Regulatory Authority (“FINRA”) or the Nasdaq Global Market, the registration of the offer and sale of the Shares under the Securities Act and such filings as may be required under applicable state securities laws.

(p)No Governmental Proceedings.  There are no legal or governmental proceedings pending or, to the knowledge of the Company, threatened to which the Company is a party or to which any of the properties of the Company is subject that are required to be described in the Registration Statement or the Prospectus and are not so described.

(q)Compliance.  The Company is not (i) in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company under), nor has the Company received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived); (ii) in violation of any judgment, decree or order of any court, arbitrator or other governmental authority; or (iii) in violation of any statute, rule, ordinance or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

7

 

 

(r)Compliance with FDA Applicable Laws; Authorizations.  The Company is and at all times has been in material compliance with all statutes, rules, regulations and orders applicable to the ownership, testing, development, manufacture, packaging, processing, use, distribution, marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal of any product manufactured or distributed by or for the Company (“FDA Applicable Laws”), and has not received, and does not know of any reasonable basis for, any Form FDA-483 from the U.S. Food and Drug Administration (the “FDA”), notice of adverse finding, warning letter, untitled letter, import alert or detention, export certificate denial, or other correspondence or notice from any court or arbitrator or governmental or regulatory authority or third party alleging or asserting material noncompliance with any FDA Applicable Laws or any licenses, exemptions, certificates, approvals, clearances, authorizations, permits and supplements or amendments thereto required by any such FDA Applicable Laws (“Authorizations”).  The Company possesses all material Authorizations required for the operation of its business as currently conducted and such Authorizations are valid and in full force and effect and the Company is not in violation of any term of any such Authorizations, except for violations that, individually or in the aggregate have not had, and would not reasonably be expected to have, a Material Adverse Effect.  To the Company’s knowledge, no actions to withdraw or limit any Authorizations are pending or threatened.  The applications and submissions on which the Authorizations are based are accurate and do not include any material misrepresentation or omission. 

(s)Clinical Trials.  The descriptions in the Registration Statement and the Prospectus of the design, status and results of clinical and pre-clinical trials conducted by or on behalf of or sponsored by the Company, or in which the Company have participated, are accurate and complete in all material respects and fairly present the data derived from such trials and the Company has no knowledge of subsequent results from such trials or results from any other trials that are inconsistent with or otherwise call into question the results described or referred to in the Registration Statement and the Prospectus, taken as a whole.  The Company has operated and is currently in compliance in all material respects with all applicable statutes, rules, regulations and policies of the FDA and comparable drug regulatory agencies outside of the United States to which it is subject (collectively, the “Regulatory Authorities”) and all clinical trials have been conducted in accordance with good clinical practices, applicable institutional review board (“IRB”) or independent ethics committee (“IEC”) requirements, and standard medical and scientific research procedures.  The Company has not received any notices, correspondence or other communication from the Regulatory Authorities or any other governmental agency or IRB or IEC which could reasonably lead to the early termination or suspension of any ongoing clinical trials or pre-clinical studies that are described in the Registration Statement and the Prospectus or the results of which are referred to in the Registration Statement and the Prospectus or rejection of data from these trials or studies and, to the Company’s knowledge, there are no reasonable grounds for the same, including on the basis of (i) pending or submitted safety reports concerning products manufactured or distributed by or for the Company or (ii) results of clinical and pre-clinical trials conducted by or on behalf of or sponsored by the Company, or in which the Company has participated.

8

 

 

(t)PTO Matters.  To the knowledge of the Company, the Company has duly and properly filed or caused to be filed with the United States Patent and Trademark Office (the “PTO”) and, in some cases, foreign and international patent authorities all patent applications owned or exclusively licensed at the time by the Company related to the Company’s programs disclosed in the Prospectus as well as the Company’s periodic reports and other information incorporated by reference therein (the “Company Patent Applications”), except for such improper filings and failures to file that individually or in the aggregate have not had, and would not reasonably be expected to have, a Material Adverse Effect.  To the knowledge of the Company, the Company has complied with the PTO’s duty of candor and disclosure and best mode requirement for the Company Patent Applications, and all other requirements for patentability and enforceability of any resultant patents when issued, and has made no material misrepresentation in the Company Patent Applications.  To the knowledge of the Company, the Company has complied at the time of filing with the relevant foreign filing requirements underlying patentability and enforceability of any resultant patents for the Company Patent Applications pending in countries outside the United States, except for such improper filings and failures to file that individually or in the aggregate have not had, and would not reasonably be expected to have, a Material Adverse Effect.  To the Company’s knowledge, there is no information material to a determination of patentability regarding the Company Patent Applications not called to the attention of the PTO during prosecution.  To the Company’s knowledge, there is no information not called to the attention of the PTO during prosecution which would preclude the grant of a patent for the Company Patent Applications.  The Company has no knowledge of any information which would preclude the Company from having clear title to the Company Patent Applications, except for cases that individually or in the aggregate have not had, and would not reasonably be expected to have, a Material Adverse Effect.

(u)Intellectual Property.  Except as described in the Prospectus, to the Company’s knowledge, it owns or possesses or has rights to all material patents, patent rights, licenses, inventions, copyrights, know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures), trademarks, service marks and trade names currently employed by it to conduct the business now operated by it.  To the Company’s knowledge, the Company has, or has rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights (collectively, the “Intellectual Property Rights”) necessary or required for use to conduct its businesses as described in the Prospectus and which the failure to so have, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect.  The Company has not received any notice (written or otherwise), or otherwise has knowledge, of infringement or of conflict with asserted rights of others with respect to any of the foregoing which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would reasonably be expected to have a Material Adverse Effect.  The Company has not received any notice (written or otherwise) that any of the Intellectual Property Rights has expired, terminated or been abandoned, or is expected to expire or terminate or be abandoned, within three (3) years from the date of this Agreement, except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  To the 

9

 

 

knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights, except for cases that individually or in the aggregate have not had, and would not reasonably be expected to have, a Material Adverse Effect.  The Company has taken reasonable security measures to protect the secrecy, confidentiality and value of all of its intellectual properties, except where failure to do so would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(v)Financial Statements.  The financial statements included or incorporated by reference in the Prospectus, together with related schedules and notes, present fairly in all material respects the financial position, results of operations and changes in financial position of the Company on the basis stated therein at the respective dates or for the respective periods to which they apply.  Such statements and related schedules and notes have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) consistently applied throughout the periods involved, except as disclosed therein, and comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.  The other financial and statistical information and data set forth in the Prospectus are, in all material respects, accurately presented and prepared on a basis consistent with such financial statements and the books and records of the Company. 

(w)SEC Reports.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the three (3) years preceding the date hereof, or such shorter period as the Company was required by law or regulation to file such material (the foregoing materials, including the exhibits thereto, documents incorporated by reference therein and any prospectus, prospectus supplement, amendment or supplement filed in relation thereto, together with the Prospectus, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.  The Company has never been an issuer subject to Rule 144(i) under the Securities Act.  

(x)Material Changes; Undisclosed Events, Liabilities or Developments.  Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that would reasonably be expected to result in a Material Adverse Effect; (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or 

10

 

 

disclosed in filings made with the Commission; (iii) the Company has not altered its method of accounting; (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock; and (v) the Company has not issued any equity securities to any officer, director or Affiliate (as defined below), except pursuant to existing Company stock incentive plans.  Except as may be set forth in the SEC Reports, the Company does not have pending before the Commission any request for confidential treatment of information.  Except for the issuance of the Shares contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one (1) Trading Day prior to the date that this representation is made.

(y)Solvency.  On and immediately after the Closing Date, the Company (after giving effect to the issuance of the Shares as described in the Time of Sale Information) will be Solvent.  As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair market value (or present fair saleable value) of the assets of the Company is not less than the total amount required to pay the liabilities of the Company on its total existing debts and liabilities (including contingent liabilities) as they become due and matured; (ii) the Company is able to realize upon their assets and pay their debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business; (iii) assuming consummation of the issuance of the Shares as contemplated by this Agreement and the Time of Sale Information, the Company is not incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature; and (iv) the Company is not engaged in any business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which the Company is engaged.

(z)Legal Proceedings.  Except as described in the Registration Statement, the Time of Sale Information and the Prospectus, there are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to which the Company is or may be a party or to which any property of the Company is or may be the subject that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect or materially and adversely affect the ability of the Company to perform its obligations under this Agreement.  No such investigations, actions, suits or proceedings are, to the knowledge of the Company, threatened or contemplated by any governmental or regulatory authority or threatened by others.  There are no current or pending legal, governmental or regulatory actions, suits or proceedings that are required under the Securities Act to be described in the Registration Statement that are not so described in the Registration Statement, the Time of Sale Information and the Prospectus.

11

 

 

(aa)Labor Relations.  No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company, which would reasonably be expected to result in a Material Adverse Effect.  None of the Company’s employees is a member of a union that relates to such employee’s relationship with the Company, and the Company is not a party to any collective bargaining agreement.  To the knowledge of the Company, no executive officer of the Company is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company to any liability with respect to any of the foregoing matters.  The Company is in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(bb)Insurance.  The Company is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company is engaged, including, but not limited to, directors and officers insurance coverage.  The Company does not have any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

(cc)Tax Status.  Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject; (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations; and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply.  There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

(dd)Transactions with Affiliates and Employees.  None of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services 

12

 

 

rendered; (ii) reimbursement for expenses incurred on behalf of the Company; and (iii) other employee benefits, including stock option agreements under any stock incentive plan of the Company.

(ee)Sarbanes-Oxley; Internal Accounting Controls.  The Company is in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date.  The Company maintains a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.  The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.  The Company’s certifying officers have evaluated the effectiveness of the disclosure controls and procedures of the Company as of the end of the period covered by the most recently filed periodic report under the Exchange Act (such date, the “Evaluation Date”).  The Company presented in its most recently filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date.  Since the Evaluation Date, there have been no changes in the internal control over financial reporting (as such term is defined in the Exchange Act) of the Company that have materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of the Company.

(ff)Foreign Corrupt Practices.  Neither the Company nor, to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity; (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds; (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law; or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”).

(gg)Office of Foreign Assets Control.  Neither the Company nor, to the Company’s knowledge, any director, officer, agent, employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”).

13

 

 

(hh)Investment Company.  The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.  The Company shall conduct its business in a manner so that it will not become an “investment company” subject to registration under the Investment Company Act of 1940, as amended.

(ii)Use of Proceeds.  The Company will apply the net proceeds from the sale of the Shares in accordance with Section 9(e) hereof and as described in the Prospectus under the heading “Use of Proceeds.”

(jj)Regulation M Compliance.  The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Shares; (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Shares; or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.

(kk)Acknowledgment Regarding Each Investor’s Purchase of Shares.  The Company acknowledges and agrees that each Investor is acting solely in the capacity of an arm’s length purchaser with respect to this Agreement and the transactions contemplated hereby.  The Company further acknowledges that no Investor is acting as a financial advisor or fiduciary of the Company, or in any similar capacity, with respect to this Agreement and the transactions contemplated hereby and any advice given by any Investor or any of their respective representatives or agents in connection with this Agreement and the transactions contemplated hereby is merely incidental to the Investor’s purchase of the Shares.  The Company further represents to each Investor that the Company’s decision to enter into this Agreement has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

(ll)No Broker’s Fees.  The Company is not a party to any contract, agreement or understanding with any person that would give rise to a valid claim against the Company for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Shares.

(mm)Exchange Listing.  As of the date hereof, the Shares have been approved for listing on the Nasdaq Global Market, subject to official notice of issuance.  Except as described in the Registration Statement, the Time of Sale Information and the Prospectus, the Company has not (i) taken, directly or indirectly, any action designed to, or that could reasonably be expected to have the effect of, terminating the registration of the Shares under the Exchange Act or the quotation of the Shares on the Nasdaq Global Market, except in connection with a transfer of the listing of the Common Stock to the Nasdaq Capital Market; or (ii) received any notification that the Commission or the Nasdaq Global Market is contemplating terminating such registration or quotation.

14

 

 

8.Investor Representations and Warranties.  Each Investor makes the following representations, warranties and covenants to the Company as of the date hereof.

(a)Information and Sophistication.  The Investor represents that (i) it has received or had full access to the Base Prospectus as well as the Company’s periodic reports and other information incorporated by reference therein, prior to or in connection with its receipt of this Agreement; (ii) it is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with respect to investments in securities representing an investment decision like that involved in the purchase of the Shares; (iii) it is able to fend for itself in the transaction contemplated hereby; (iv) it has the ability to bear the economic risks of its prospective investment and can afford the complete loss of such investment; and (v) it does not have any agreement or understanding, directly or indirectly, with any person or entity to distribute any of the Shares.

(b)Authorization.  The Investor has the requisite power to enter into this Agreement and to consummate the transactions contemplated hereby.  The execution and delivery of this Agreement by the Investor and the consummation by it of the transactions contemplated hereunder have been duly authorized by all necessary action on the part of the Investor.  This Agreement has been executed by the Investor and, when delivered in accordance with the terms hereof, will constitute a valid and binding obligation of the Investor enforceable against the Investor in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ and contracting parties’ rights generally and except as enforceability may be subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

(c)Independent Advisors.  The Investor understands that nothing in this Agreement or any other materials presented to the Investor in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice.  The Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares.

(d)No Conflicts.  The making, execution and performance of this Agreement by the Investor and the consummation of the transactions contemplated herein will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute a default under, (i) the charter, bylaws or other organizational documents of such Investor, as applicable, or (ii) any law, order, rule, regulation, writ, injunction, judgment or decree of any court, administrative agency, regulatory body, government or governmental agency or body, domestic or foreign, having jurisdiction over such Investor or its properties, except for any conflict, breach, violation or default which is not reasonably likely to have a material adverse effect on such Investor’s performance of its obligations hereunder or the consummation of the transactions contemplated hereby.  

(e)No Short Sales.  Neither the Investor nor any Person acting on behalf of, or pursuant to any understanding with or based upon any information received from, the Investor has, directly or indirectly, engaged in (i) any Short Sales involving the Company’s 

15

 

 

securities since the date that is the tenth (10th) trading day prior to the date of this Agreement; or (ii) engaged in any transactions in the securities of the Company since the time that the Investor and the Company were first in contact with one another with respect to the transactions contemplated hereby.  The Investor covenants that neither it, nor any Person acting on behalf of, or pursuant to any understanding with or based upon any information received from, the Investor will engage in any transactions in the securities of the Company (including Short Sales) prior to the time that the transactions contemplated by this Agreement are publicly disclosed.  In the case of an Investor that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Investor’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Investor’s assets, the representations, warranties and covenants set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Shares covered by this Agreement.  “Short Sales” include, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales, swaps, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S. broker dealers or foreign regulated brokers.  

(f)Certain Relationships.  The Investor represents that, except as set forth below, (i) it has had no position, office or other material relationship within the past three (3) years with the Company or persons known to it to be affiliates of the Company; (ii) it is not a member of the Financial Industry Regulatory Authority (formerly known as the National Association of Securities Dealers) or an Associated Person (as such term is defined under FINRA Membership and Registration Rules Section 1011) as of the date hereof; and (iii) neither it nor any group of investors (as identified in a public filing made with the Commission) of which it is a member, acquired, or obtained the right to acquire, twenty percent (20%) or more of the Common Stock (or securities convertible or exercisable for Common Stock) or voting power of the Company on a post-transaction basis.  

9.Other Covenants.  

(a)Indemnification of Investors.  Subject to the provisions of this Section 9(a), the Company will indemnify and hold each Investor and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons (as defined below) with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Investor (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, an “Investor Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and 

16

 

 

reasonable attorneys’ fees and costs of investigation that any such Investor Party may suffer or incur as a result of or relating to (i) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or any document delivered in relation hereto; or (ii) any action instituted against any Investor Party or any of their Affiliates in any capacity by any stockholder of the Company with respect to any of the transactions contemplated by this Agreement (except to the extent resulting from a breach of such Investor Party’s representations, warranties or covenants under this Agreement or any violations by such Investor Party of state or federal securities laws or any other conduct by such Investor Party which constitutes fraud, gross negligence, willful misconduct or malfeasance).  If any action shall be brought against any Investor Party in respect of which indemnity may be sought pursuant to this Agreement, such Investor Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Investor Party.  Any Investor Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Investor Party, except to the extent that (A) the employment thereof has been specifically authorized by the Company in writing; (B) the Company has failed after a reasonable period of time to assume such defense and to employ counsel; or (C) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Investor Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel.  The Company will not be liable to any Investor Party under this Agreement (y) for any settlement by an Investor Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (z) to the extent, but only to the extent, that a loss, claim, damage or liability is attributable to any Investor Party’s breach of any of the representations, warranties, covenants or agreements made by such Investor Party in this Agreement.  The indemnification required by this Section 9(a) shall be made by periodic payments of the amount thereof during the course of the investigation or defense or other matter, as and when bills relating to indemnifiable amounts are received by the Company.  The indemnity agreements contained herein shall be in addition to any cause of action or similar right of any Investor Party against the Company or others and any liabilities the Company may be subject to pursuant to law.  “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.  “Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

(b)Reservation of Securities.  As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for issuance pursuant to this Agreement in such amount as may then be required to fulfill its obligations in full under this Agreement. 

17

 

 

(c)Listing of Common Stock.  The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on the Nasdaq Global Market or Nasdaq Capital Market, and concurrently with the Closing, the Company shall apply to list or quote all of the Shares on the Nasdaq Global Market or Nasdaq Capital Market and promptly secure the listing of all of the Shares on the Nasdaq Global Market or Nasdaq Capital Market.  The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application all of the Shares, and will take such other action as is necessary to cause all of the Shares to be listed or quoted on such other Trading Market as promptly as possible.  The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market. 

(d)Equal Treatment of Investors.  No consideration, including any modification of this Agreement, shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration is offered to all parties to this Agreement.  For clarification purposes, this provision constitutes a separate right granted to each Investor by the Company and negotiated separately by each Investor, and is intended for the Company to treat the Investors as a class and shall not in any way be construed as the Investors acting in concert or as a group with respect to the purchase, disposition or voting of Shares or otherwise.

(e)Use of Proceeds. The Company intends to use the net proceeds from the sale of the Shares hereunder for clinical trial and research and development activity and other general corporate purposes; provided that the Company hereby agrees not to use such proceeds from the date hereof until six (6) months after the Closing Date for the pre-payment of any portion of the Company’s debt, to declare or pay any dividends on the Common Stock, to fund any share buyback program or for any in-license or asset purchase outside of the ordinary course of the Company’s business.

10.Miscellaneous.  

(a)Termination.  This Agreement may be terminated by any Investor, as to such Investor’s obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other Investors, by written notice to the other parties, if the Closing has not been consummated on or before June 24, 2019; provided, however, that no such termination will affect the right of any party to sue for any breach by any other party or parties.

(b)Fees and Expenses.  Except as expressly set forth in this Agreement to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement; provided, however, that the Company shall pay the fees and expenses of counsel to Lion Point Master, LP in the amount of $25,000.  The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter 

18

 

 

delivered by the Company and any conversion or exercise notice delivered by an Investor), stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to the Investors.

(c)Entire Agreement.  This Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

(d)Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via electronic mail at the e-mail address set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day and no return receipt or other error is received by the delivering party; (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via electronic mail at the e-mail address set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day and no return receipt or other error is received by the delivering party; (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service; or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto.

(e)Amendments; Waivers.  No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Investors holding at least a majority in interest of the Shares based on the initial Subscription Amounts hereunder or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

(f)Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

(g)Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Investor.  Any Investor may assign any or all of its rights under this Agreement to any Person to whom such Investor assigns or transfers any Shares, provided 

19

 

 

that such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions of this Agreement that apply to the “Investors.”

(h)No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 9(a).

(i)Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  If either party shall commence an action, suit or proceeding to enforce any provisions of this Agreement, then, in addition to the obligations of the Company under Section 9(a), the prevailing party in such action, suit or proceeding shall be reimbursed by the other party for its reasonable attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

(j)Survival.  The representations, warranties and covenants contained herein shall survive the Closing and the delivery of the Shares.

(k)Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

20

 

 

(l)Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

(m)Remedies.  In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each Investor and the Company will be entitled to specific performance under this Agreement.  The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in this Agreement and hereby agree to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.

(n)Payment Set Aside.  To the extent that the Company makes a payment or payments to any Investor pursuant to this Agreement or an Investor enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

(o)Independent Nature of Each Investor’s Obligations and Rights.  The obligations of each Investor under this Agreement are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance or non-performance of the obligations of any other Investor under this Agreement.  Nothing contained herein or in any other document related to the transactions contemplated hereunder, and no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investor s are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement.  Each Investor shall be entitled to independently protect and enforce its rights including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in any proceeding for such purpose.  Each Investor has been represented by its own separate legal counsel in its review and negotiation of this Agreement.  King & Spalding LLP only represents Lion Point Master, LP and does not represent any of other Investors.  The Company has elected to provide all Investors with the same terms and purchase agreement for the convenience 

21

 

 

of the Company and not because it was required or requested to do so by any of the Investors.  It is expressly understood and agreed that each provision contained in this Agreement is between the Company and an Investor, solely, and not between the Company and the Investors collectively and not between and among the Investors.

(p)Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then such action may be taken or such right may be exercised on the next succeeding Trading Day.

(q)Construction.  The parties agree that each of them and their respective counsel have reviewed and had an opportunity to revise this Agreement and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments hereto.  In addition, each and every reference to share prices and shares of Common Stock in this Agreement shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

[Remainder of page intentionally left blank]

 

 

22

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

	
“COMPANY”

DURECT CORPORATION
	
 

	
By:________________________ 
Name:  James E. Brown
Title:  President and Chief Executive Officer

 
	
Address for Notice
10260 Bubb Road

Cupertino, CA 95014

	
With a copy to (which shall not constitute notice):

Orrick, Herrington & Sutcliffe LLP
Columbia Center 

1152 15th Street, N.W. 

Washington, D.C. 20005-1706

Attention: Stephen Thau

	
  

 

 

[Signature Page to Securities Purchase Agreement]

 

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

Name of Investor: ________________________________________________________

Signature of Authorized Signatory of Investor: _________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

Email Address of Authorized Signatory:_________________________________________

Address for Notice to Investor:  _______________________________________

Subscription Amount: _____________

Shares: ____________

EIN Number: _______________________

The Shares shall be released by the Transfer Agent to the Investor at the Closing by electronic book-entry at The Depository Trust Company, registered in the Investor’s name and address as set forth on this signature page of the Agreement.  

		
	
Name of DTC Participant (broker-dealer at which the account or accounts to be credited with the Shares are maintained)
	
 

	
DTC Participant Number
	
 

	
Name of Account at DTC Participant being credited with the Shares
	
 

	
Account Number at DTC Participant being credited with the Shares
	
 

 

 

 

 

EXHIBIT A

SCHEDULE OF INVESTORS

						
	
Investor
	
 
	
Number of Shares
	
 
	
Aggregate Purchase Price

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
Total
	
29,000,000
	
 
	
$15,080,000.00

 

 

 

 

 

ANNEX A

FREEWRITING PROSPECTUSES OF THE COMPANY

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00297-of-00352.parquet"}]]