Document:

Trust Agreement

 EXHIBIT 10.4 
 EXECUTION COPY 
  

 TRUST AGREEMENT 
 BETWEEN 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION 
 SELLER 
 AND 
 CHASE BANK USA, NATIONAL ASSOCIATION 
 OWNER TRUSTEE 
 DATED AS OF SEPTEMBER 1, 2006 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I DEFINITIONS	  	1
		  	    SECTION 1.1 Definitions	  	1
		
	ARTICLE II ORGANIZATION	  	1
		  	    SECTION 2.1 Name	  	1
		  	    SECTION 2.2 Office	  	1
		  	    SECTION 2.3 Purposes and Powers	  	1
		  	    SECTION 2.4 Appointment of Owner Trustee	  	2
		  	    SECTION 2.5 Initial Capital Contribution of Owner Trust Estate	  	2
		  	    SECTION 2.6 Declaration of Trust	  	3
		  	    SECTION 2.7 Liability of the Certificateholders	  	3
		  	    SECTION 2.8 Title to Trust Property	  	3
		  	    SECTION 2.9 Situs of Trust	  	3
		  	    SECTION 2.10 Representations and Warranties of the Seller	  	4
		
	ARTICLE III THE CERTIFICATES	  	5
		  	    SECTION 3.1 Initial Certificate Ownership	  	5
		  	    SECTION 3.2 Form of the Certificates	  	5
		  	    SECTION 3.3 Execution, Authentication and Delivery	  	5
		  	    SECTION 3.4 Registration; Registration of Transfer and Exchange of Certificates	  	6
		  	    SECTION 3.5 Mutilated, Destroyed, Lost or Stolen Certificates	  	7
		  	    SECTION 3.6 Persons Deemed Certificateholders	  	8
		  	    SECTION 3.7 Access to List of Certificateholders’ Names and Addresses	  	8
		  	    SECTION 3.8 Maintenance of Corporate Trust Office	  	8
		  	    SECTION 3.9 Appointment of Paying Agent	  	8
		  	    SECTION 3.10 Seller as Certificateholder	  	9
		
	ARTICLE IV ACTIONS BY OWNER TRUSTEE	  	9
		  	    SECTION 4.1 Prior Notice to Certificateholders with Respect to Certain Matters	  	9
		  	    SECTION 4.2 Action by Certificateholders with Respect to Certain Matters	  	10
		  	    SECTION 4.3 Action by Certificateholders with Respect to Bankruptcy	  	10
		  	    SECTION 4.4 Restrictions on Certificateholders’ Power	  	10
		  	    SECTION 4.5 Majority Control	  	10
		
	ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES	  	11
		  	    SECTION 5.1 Establishment of Certificate Distribution Account	  	11
		  	    SECTION 5.2 Application of Trust Funds	  	11
		  	    SECTION 5.3 Method of Payment	  	12
		  	    SECTION 5.4 Accounting and Reports to the Certificateholders, the Internal Revenue Service and Others	  	12
		  	    SECTION 5.5 Signature on Returns	  	12

  

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	ARTICLE VI THE OWNER TRUSTEE	  	12
		  	    SECTION 6.1 Duties of Owner Trustee	  	12
		  	    SECTION 6.2 Authority of Owner Trustee	  	13
		  	    SECTION 6.3 Acceptance of Trusts and Duties	  	14
		  	    SECTION 6.4 Action upon Instruction by Certificateholders	  	15
		  	    SECTION 6.5 Furnishing of Documents	  	16
		  	    SECTION 6.6 Representations and Warranties of Owner Trustee	  	16
		  	    SECTION 6.7 Reliance; Advice of Counsel	  	17
		  	    SECTION 6.8 Owner Trustee May Own Certificates and Notes	  	17
		  	    SECTION 6.9 Compensation and Indemnity	  	17
		  	    SECTION 6.10 Replacement of Owner Trustee	  	18
		  	    SECTION 6.11 Merger or Consolidation of Owner Trustee	  	19
		  	    SECTION 6.12 Appointment of Co-Trustee or Separate Trustee	  	19
		  	    SECTION 6.13 Eligibility Requirements for Owner Trustee	  	20
		
	ARTICLE VII TERMINATION OF TRUST AGREEMENT	  	21
		  	    SECTION 7.1 Termination of Trust Agreement	  	21
		
	ARTICLE VIII AMENDMENTS	  	22
		  	    SECTION 8.1 Amendments Without Consent of Certificateholders or Noteholders	  	22
		  	    SECTION 8.2 Amendments With Consent of Certificateholders and Noteholders	  	22
		  	    SECTION 8.3 Form of Amendments	  	23
		
	ARTICLE IX MISCELLANEOUS	  	24
		  	    SECTION 9.1 No Legal Title to Owner Trust Estate	  	24
		  	    SECTION 9.2 Limitations on Rights of Others	  	24
		  	    SECTION 9.3 Notices	  	24
		  	    SECTION 9.4 Severability	  	24
		  	    SECTION 9.5 Counterparts	  	24
		  	    SECTION 9.6 Successors and Assigns	  	24
		  	    SECTION 9.7 No Petition Covenant	  	24
		  	    SECTION 9.8 No Recourse	  	25
		  	    SECTION 9.9 Headings	  	25
		  	    SECTION 9.10 Governing Law	  	25
		  	    SECTION 9.11 Administrator	  	25
		  	    SECTION 9.12 Amended and Restated Trust Agreement	  	25

 EXHIBITS 
  

			
	Exhibit A	 	Form of Certificate
	Exhibit B	 	Form of Certificate of Trust

  

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 TRUST AGREEMENT, dated as of September 1, 2006 between Navistar Financial Retail Receivables
Corporation, a Delaware corporation, as Seller, and Chase Bank USA, National Association, a national banking association, as Owner Trustee. 
 WHEREAS, the Seller and the Owner Trustee desire to amend and restate the original Trust Agreement, dated as of June 12, 2006, as may be amended through the date hereof, in its entirety. 
 The Seller and the Owner Trustee hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.1 Definitions. Certain capitalized terms used in this Agreement shall have the respective meanings assigned to them in Part I of
Appendix A to the Pooling Agreement of even date herewith, between the Seller and the Trust (as it may be amended and supplemented from time to time, the “Pooling Agreement”). All references herein to “the Agreement” or
“this Agreement” are to this Trust Agreement as it may be amended and supplemented from time to time, the Exhibits hereto and the capitalized terms used herein which are defined in such Appendix A, and all references herein to
Articles, Sections and subsections are to Articles, Sections and subsections of this Agreement unless otherwise specified. The rules of construction set forth in Part II of such Appendix A shall be applicable to this Agreement.

 ARTICLE II 
 ORGANIZATION 
 SECTION 2.1 Name. The Trust continued hereby shall be known as “Navistar Financial 2006-ARC Owner
Trust” in which name the Owner Trustee may conduct the business of the Trust, make and execute contracts and other instruments on behalf of the Trust and the Trust may sue and be sued. 
 SECTION 2.2 Office. The office of the Trust shall be in care of the Owner Trustee at the Corporate Trust Office of the Owner Trustee or at such
other address in Delaware as the Owner Trustee may designate by written notice to the Certificateholders and the Seller. 
 SECTION 2.3
Purposes and Powers. The purpose of the Trust is, and the Trust shall have the power and authority, and is authorized, to engage in the following activities: 
 (i) to acquire, manage and hold the Receivables and the Related Security; 
 (ii) to acquire, manage and hold the Series 2006-ARC Portfolio Certificate and the Series 2006-ARC Portfolio Interest represented
thereby; 

 (iii) to issue the Notes pursuant to the Indenture and the Certificates pursuant to this
Agreement, and to sell, transfer or exchange the Notes and to transfer and exchange the Certificates; 
 (iv) to acquire
property and assets from the Seller pursuant to the Pooling Agreement, to make payments or distributions on the Securities to the Securityholders, to make deposits into and withdrawals from the Reserve Account and other accounts established pursuant
to the Basic Documents and to pay the organizational, start-up and transactional expenses of the Trust; 
 (v) to assign,
grant, transfer, pledge, mortgage and convey the Owner Trust Estate pursuant to the terms of the Indenture and to hold, manage and distribute to the Certificateholders pursuant to the terms of this Agreement, the Pooling Agreement and the Servicing
Agreement any portion of the Owner Trust Estate released from the lien of, and remitted to the Trust pursuant to, the Indenture; 
 (vi) to enter into and perform its obligations and exercise its rights under the Basic Documents to which it is to be a party; 
 (vii) to engage in those activities, including entering into agreements, that are necessary, suitable, desirable or convenient to accomplish the foregoing or are incidental thereto or connected therewith, including
entering into interest rate swaps and caps and other derivative instruments; and 
 (viii) subject to compliance with the
Basic Documents, to engage in such other activities as may be required in connection with conservation of the Owner Trust Estate and the making of payments or distributions to the Securityholders; 
 provided, however, that the Trust may enter into derivatives only if such derivatives are passive and entered into substantially concurrent with the execution of this
Agreement or, if entered into after the execution of this Agreement, are entered into to replace a terminated derivative. 
 The Trust shall not engage in
any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Agreement or the Basic Documents. 
 SECTION 2.4 Appointment of Owner Trustee. The Seller hereby appoints Chase Bank USA, National Association, as trustee of the Trust (the “Owner Trustee”) effective as of the date hereof, to have all
the rights, powers and duties set forth herein. 
 SECTION 2.5 Initial Capital Contribution of Owner Trust Estate. The Seller hereby
sells, assigns and transfers to the Trust, and conveys and sets over to the Owner Trustee, on behalf of the Trust, as of the date hereof, the sum of $1. The Owner Trustee hereby acknowledges receipt in trust from the Seller, as of the date hereof,
of the foregoing contribution, 
  

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 which shall constitute the initial Owner Trust Estate and shall be deposited in the Certificate Distribution Account. The
Seller shall pay organizational expenses of the Trust as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee. 
 SECTION 2.6 Declaration of Trust. The Owner Trustee hereby declares that it shall hold the Owner Trust Estate in trust upon and subject to the
conditions and obligations set forth herein, in the Pooling Agreement and in the Servicing Agreement for the use and benefit of the Certificateholders, subject to the obligations of the Trust under the Basic Documents. It is the intention of the
parties hereto that the Trust constitute a statutory trust under the Statutory Trust Statute, that this Agreement constitute the governing instrument of such statutory trust and that the Certificates represent the beneficial interests therein. The
rights of the Certificateholders shall be determined as set forth herein and in the Statutory Trust Statute and the relationship between the parties hereto created by this Agreement shall not constitute indebtedness for any purpose. It is the
intention of the parties hereto that, solely for purposes of federal income taxes, state and local income and franchise taxes, and any other taxes imposed upon, measured by, or based upon gross or net income, the Trust shall be treated as a division
or branch of the Seller. The parties agree that, unless otherwise required by appropriate tax authorities, the Trust shall file or cause to be filed annual or other necessary returns, reports and other forms consistent with the characterization of
the Trust as a division or branch of the Seller for such tax purposes; provided, however, that until the Seller receives a ruling from the Illinois Department of Revenue or an opinion of counsel reasonably acceptable to the Owner Trustee that the
Trust will be treated as a branch or division of the Seller for purposes of the Illinois Income Tax Act and the Illinois Personal Property Tax Replacement Tax Act, for purposes of the Illinois Income Tax Act and the Illinois Personal Property Tax
Replacement Tax Act, the Seller will (i) include the taxable income of the Trust in the combined tax return filed by the combined group that includes the Seller, (ii) take all steps necessary to treat the Trust as a member of the same
combined group of which the Seller is a member and (iii) provide information to the Owner Trustee to confirm that the actions required by clauses (i) and (ii) have been effected. Effective as of the date hereof, the Owner Trustee
shall have all rights, powers and duties set forth in this Agreement, the Pooling Agreement, the Servicing Agreement and the Statutory Trust Statute with respect to accomplishing the purposes of the Trust subject to the terms and conditions of the
Basic Documents. 
 SECTION 2.7 Liability of the Certificateholders. No Certificateholder shall have any personal liability for any
liability or obligation of the Trust. 
 SECTION 2.8 Title to Trust Property. Legal title to all the Owner Trust Estate shall be
vested at all times in the Trust as a separate legal entity, except where applicable law in any jurisdiction requires title to any part of the Owner Trust Estate to be vested in a trustee or trustees, in which case title shall be deemed to be vested
in the Owner Trustee, a co-trustee and/or other trustees, as the case may be. 
 SECTION 2.9 Situs of Trust. The Trust shall be
located and administered in the State of Delaware. All bank accounts maintained by the Trust or the Owner Trustee on behalf of the Trust or for the benefit of the Certificateholders shall be located in the State of Delaware or the State of New York.
The Trust shall not have any employees in any state other than Delaware; 
  

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 provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or
without the State of Delaware. Payments shall be received by the Trust only in Delaware or New York, and payments and distributions shall be made by the Trust only from Delaware or New York. The only office of the Trust shall be the Corporate Trust
Office of the Owner Trustee in Delaware. 
 SECTION 2.10 Representations and Warranties of the Seller. The Seller hereby represents
and warrants to the Owner Trustee that: 
 (a) The Seller has been duly organized and is validly existing as a corporation in good standing
under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is presently conducted and had at all relevant times, and now has, power,
authority and legal right to acquire and own the Receivables. 
 (b) The Seller is duly qualified to do business as a foreign corporation in
good standing, and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business requires such qualifications. 
 (c) The Seller has the power and authority to execute and deliver this Agreement and to carry out its terms, the Seller has full power and authority to
sell and assign the property to be sold and assigned to and deposited with the Trust, and the Seller has duly authorized such sale and assignment to the Trust by all necessary corporate action, and the execution, delivery and performance of this
Agreement have been duly authorized by the Seller by all necessary corporate action. 
 (d) The consummation of the transactions contemplated
by this Agreement and the fulfillment of the terms of this Agreement do not conflict with, result in any breach of any of the terms and provisions of or constitute (with or without notice or lapse of time) a default under, the certificate of
incorporation or by-laws of the Seller, or any indenture, agreement or other instrument to which the Seller is a party or by which it is bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of
any such indenture, agreement or other instrument (other than pursuant to the Basic Documents), or violate any law or, to the Seller’s knowledge, any order, rule or regulation applicable to the Seller of any court or of any federal or state
regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Seller or any of its properties. 
 (e) This Agreement, when duly executed and delivered, shall constitute a legal, valid and binding obligation of the Seller enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 
 (f) There are no proceedings or, to the Seller’s knowledge, investigations pending or, to the Seller’s knowledge, threatened before any court,
regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller or its properties (i) asserting the invalidity of this Agreement or any Certificates issued 
  

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 pursuant hereto or, (ii) seeking to prevent the issuance of such Certificates or the consummation of any of the
transactions contemplated by this Agreement or (iii) seeking any determination or ruling that might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, such Certificates
or this Agreement. 
 ARTICLE III 
 THE CERTIFICATES 
 SECTION 3.1 Initial Certificate Ownership. Upon the formation of the Trust by the contribution by
the Seller pursuant to Section 2.5 and until the issuance of the Certificates, the Seller shall be the sole beneficiary of the Trust. 
 SECTION 3.2 Form of the Certificates. 
 (a) The Certificates shall be substantially in the form set forth in Exhibit
A. The Certificates shall be executed on behalf of the Trust by manual or facsimile signature of a Responsible Officer of the Owner Trustee. Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such
signatures shall have been affixed, authorized to sign on behalf of the Trust, shall be, when authenticated pursuant to Section 3.3, validly issued and entitled to the benefits of this Agreement, notwithstanding that such individuals or any of
them shall have ceased to be so authorized prior to the authentication and delivery of such Certificates or did not hold such offices at the date of authentication and delivery of such Certificates. 
 (b) The Certificates shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without steel
engraved borders) all as determined by the officers executing such Certificates, as evidenced by their execution of such Certificates. 
 (c)
The Certificates shall be issued in fully-registered form and shall be in definitive form only. The terms of the Certificates set forth in Exhibit A shall form part of this Agreement. 
 SECTION 3.3 Execution, Authentication and Delivery. Concurrently with the sale of the Receivables to the Trust pursuant to the Pooling Agreement,
the Owner Trustee shall cause the Certificates to be executed on behalf of the Trust, and to be authenticated and delivered to or upon the written order of the Seller, signed by its chairman of the board, its president or any vice president, without
further corporate action by the Seller, in authorized denominations. No Certificate shall entitle its holder to any benefit under this Agreement, or shall be valid for any purpose, unless there shall appear on such Certificate a certificate of
authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or by the Person appointed from time to time as the Owner Trustee’s authenticating agent hereunder (the “Authenticating Agent”) by
manual signature. The Owner Trustee hereby appoints JPMorgan Chase Bank, N.A. as the initial Authenticating Agent. Such authentication shall constitute conclusive evidence that such Certificate shall have been duly authenticated and delivered
hereunder. All Certificates shall be dated the date of their authentication. 
  

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 SECTION 3.4 Registration; Registration of Transfer and Exchange of Certificates. 
 (a) The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.8, a Certificate
Register in which, subject to such reasonable regulations as it may prescribe, the Owner Trustee shall provide for the registration of Certificates and of transfers and exchanges of Certificates as provided herein. The Certificate Registrar shall be
appointed by and may be removed by the Owner Trustee. JPMorgan Chase Bank, N.A. is hereby appointed as the initial Certificate Registrar. Upon any resignation of a Certificate Registrar, the Owner Trustee shall promptly appoint a successor or, if it
elects not to make such an appointment, assume the duties of Certificate Registrar. 
 (b) Each initial Certificateholder may at any time,
without consent of the Noteholders, sell, transfer, convey or assign in any manner its rights to and interests in the Certificates (including its right to distributions from the Reserve Account), provided that: (i) the Certificateholders
provide to the Owner Trustee and the Indenture Trustee an opinion of independent counsel that such action will not cause the Trust to be treated as an association (or publicly traded partnership) taxable as a corporation for federal income tax
purposes, (ii) such transferee or assignee agrees to take positions for tax purposes consistent with the tax positions agreed to be taken by the Certificateholders and (iii) the conditions set forth in Section 3.4(g) have been
satisfied. In addition, no transfer of a Certificate shall be registered unless the transferee shall have provided to the Owner Trustee and the Certificate Registrar an opinion of counsel that in connection with such transfer no registration of the
Certificates is required under the Securities Act or applicable state law or that such transfer is otherwise being made in accordance with all applicable federal and state securities laws. 
 (c) Subject to Section 3.4(b), upon surrender for registration of transfer of any Certificate at the office or agency maintained pursuant to
Section 3.8, the Owner Trustee shall execute on behalf of the Trust, authenticate and deliver (or shall cause its Authenticating Agent to authenticate and deliver), in the name of the designated transferee or transferees, one or more new
Certificates in authorized denominations of a like aggregate amount dated the date of authentication by the Owner Trustee or any authenticating agent. 
 (d) At the option of a Holder, Certificates may be exchanged for other Certificates of a like aggregate percentage interest upon surrender of the Certificates to be exchanged at the Corporate Trust Office or the
office or agency maintained pursuant to Section 3.8. Whenever any Certificates are so surrendered for exchange, the Owner Trustee shall execute on behalf of the Trust, authenticate and deliver (or shall cause its Authenticating Agent to
authenticate and deliver) one or more Certificates dated the date of authentication by the Owner Trustee or any Authenticating Agent. Such Certificates shall be delivered to the Holder making the exchange. 
 (e) Every Certificate presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Holder or his attorney duly authorized in writing. Each Certificate surrendered for registration of transfer or exchange shall be canceled and subsequently
destroyed or otherwise disposed of by the Owner Trustee or Certificate Registrar in accordance with its customary practice. 
  

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 (f) No service charge shall be made for any registration of transfer or exchange of Certificates, but the
Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any transfer or exchange of Certificates. 
 (g) The Certificates may not be acquired by or for the account of (i) an employee benefit plan (as defined in Section 3(3) of ERISA) that is
subject to the provisions of Title I of ERISA, (ii) a plan described in Section 4975(e)(1) of the Code or (iii) any entity whose underlying assets include plan assets by reason of a plan’s investment in the entity (each, a
“Benefit Plan”). By accepting and holding a Certificate, the Holder thereof shall be deemed to have represented and warranted that it is not a Benefit Plan. 
 SECTION 3.5 Mutilated, Destroyed, Lost or Stolen Certificates. 
 (a) If (i) any mutilated
Certificate is surrendered to the Certificate Registrar, or the Certificate Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Certificate, and (ii) there is delivered to the Certificate Registrar, the
Owner Trustee and the Trust, such security or indemnity as may be required by them to hold each of them harmless, then, in the absence of notice to the Certificate Registrar, the Owner Trustee or the Trust that such Certificate has been acquired by
a protected purchaser, the Owner Trustee shall execute on behalf of the Trust and the Owner Trustee shall authenticate and deliver (or shall cause its Authenticating Agent to authenticate and deliver), in exchange for or in lieu of any such
mutilated, destroyed, lost or stolen Certificate, a replacement Certificate in authorized denominations of a like amount; provided, however, that if any such destroyed, lost or stolen Certificate, but not a mutilated Certificate, shall
have become, or within seven days shall be, due and payable, then instead of issuing a replacement Certificate the Owner Trustee on behalf of the Trust may pay such destroyed, lost or stolen Certificate when so due or payable. 
 (b) If, after the delivery of a replacement Certificate or distribution in respect of a destroyed, lost or stolen Certificate pursuant to
Section 3.5(a), a protected purchaser of the original Certificate in lieu of which such replacement Certificate was issued presents for payment such original Certificate, the Owner Trustee on behalf of the Trust shall be entitled to recover
such replacement Certificate (or such distribution) from the Person to whom it was delivered or any Person taking such replacement Certificate from such Person to whom such replacement Certificate was delivered or any assignee of such Person, except
a protected purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the Trust or the Owner Trustee in connection therewith. 
 (c) In connection with the issuance of any replacement Certificate under this Section 3.5, the Owner Trustee on behalf of the Trust may
require the payment by the Holder of such Certificate of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including the fees and expenses of the Trust, the
Owner Trustee and the Certificate Registrar) connected therewith. 
 (d) Any duplicate Certificate issued pursuant to this Section 3.5
in replacement of any mutilated, destroyed, lost or stolen Certificate shall constitute an original 
  

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 additional contractual obligation of the Trust, whether or not the mutilated, destroyed, lost or stolen Certificate shall
be found at any time or be enforced by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other Certificates duly issued hereunder. 
 (e) The provisions of this Section 3.5 are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Certificates. 
 SECTION 3.6 Persons Deemed Certificateholders. Prior
to due presentation of a Certificate for registration of transfer, the Owner Trustee or the Certificate Registrar may treat the Person in whose name any Certificate shall be registered in the Certificate Register as the Certificateholder of such
Certificate for the purpose of receiving distributions pursuant to Article V and for all other purposes whatsoever, and neither the Owner Trustee nor the Certificate Registrar shall be bound by any notice to the contrary. 
 SECTION 3.7 Access to List of Certificateholders’ Names and Addresses. The Owner Trustee shall furnish or cause to be furnished to the
Servicer and the Seller, within 15 days after receipt by the Owner Trustee of a request therefor from the Servicer or the Seller in writing, a list, in such form as the Servicer or the Seller may reasonably require, of the names and addresses of the
Certificateholders as of the most recent Record Date. Each Holder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Servicer, the Seller, the Trust or the Owner Trustee accountable by reason of the
disclosure of its name and address, regardless of the source from which such information was derived. 
 SECTION 3.8 Maintenance of
Corporate Trust Office. The Owner Trustee shall maintain in the Borough of Manhattan, the City of New York, an office or offices or agency or agencies where Certificates may be surrendered for registration of transfer or exchange and where
notices and demands to or upon the Trust in respect of the Certificates and the Basic Documents may be served. The Owner Trustee initially designates the offices of JPMorgan Chase Bank, N.A., 4 New York Plaza, New York, New York 10004, as its
principal office for such purposes. The Owner Trustee shall give prompt written notice to the Seller and to the Certificateholders of any change in the location of the Certificate Register or any such office or agency. 
 SECTION 3.9 Appointment of Paying Agent. The Paying Agent shall make distributions to Certificateholders from the Certificate Distribution Account
pursuant to Section 5.2 and shall report the amounts of such distributions to the Owner Trustee. Any Paying Agent shall have the revocable power to withdraw funds from the Certificate Distribution Account for the purpose of making the
distributions referred to above. The Owner Trustee may appoint and may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole discretion that the Paying Agent shall have failed to perform its obligations under this
Agreement in any material respect. JPMorgan Chase Bank, N.A. is hereby appointed as the initial Paying Agent. The Paying Agent shall be permitted to resign as Paying Agent upon 30 days’ written notice to the Owner Trustee. If the Paying Agent
shall resign or be removed, the Owner Trustee shall appoint a successor to act as Paying Agent (which shall be a bank or trust company). The Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent 
  

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 appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Paying
Agent or additional Paying Agent shall agree with the Owner Trustee that as Paying Agent, such successor Paying Agent or additional Paying Agent shall hold all sums, if any, held by it for distribution to the Certificateholders in trust for the
benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholders. The Paying Agent shall return all unclaimed funds to the Trust and upon removal of a Paying Agent such Paying Agent shall also return all
funds in its possession to the Trust. The provisions of Sections 6.3, 6.6, 6.7, 6.8 and 6.9 shall apply, mutatis mutandis, to the Owner Trustee also in its role as Paying Agent, for so long as the Owner Trustee shall act as Paying Agent and,
to the extent applicable, to any other paying agent appointed hereunder. Any reference in this Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise. 
 SECTION 3.10 Seller as Certificateholder. The Seller in its individual or any other capacity may become the owner or pledgee of Certificates and
may otherwise deal with the Owner Trustee or its Affiliates as if it were not the Seller. 
 ARTICLE IV 
 ACTIONS BY OWNER TRUSTEE 
 SECTION 4.1
Prior Notice to Certificateholders with Respect to Certain Matters. The Owner Trustee shall not take action with respect to the following matters, unless (i) the Owner Trustee shall have notified the Certificateholders in writing of the
proposed action at least 30 days before the taking of such action, and (ii) the Certificateholders shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such Certificateholders have withheld
consent or provided alternative direction: 
 (a) the initiation of any claim or lawsuit by the Trust (other than an action to collect on a
Receivable or an action by the Indenture Trustee pursuant to the Indenture) and the compromise of any action, claim or lawsuit brought by or against the Trust (other than an action to collect on a Receivable or an action by the Indenture Trustee
pursuant to the Indenture); 
 (b) the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any
Noteholder is required; 
 (c) the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any
Noteholder is not required and such amendment materially adversely affects the interests of the Certificateholders; 
 (d) the amendment,
change or modification of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision in a manner that would not materially adversely affect the interests of the Certificateholders; 
 (e) the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a
successor Certificate Registrar, or the consent to the assignment by the Note Registrar, Paying Agent or Indenture Trustee or Certificate Registrar of its obligations under the Indenture or this Agreement, as applicable; 
  

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 (f) the amendment of the Pooling Agreement or the Servicing Agreement in circumstances where the consent
of any Noteholder is required; or 
 (g) the election by the Trust to file an amendment to the Certificate of Trust, a conformed copy of
which is attached hereto as Exhibit B, except as permitted or required by the terms of any Basic Document. 
 SECTION 4.2 Action by
Certificateholders with Respect to Certain Matters. The Owner Trustee shall not have the power, except upon the written direction of the Certificateholders, to (a) remove the Administrator under the Administration Agreement pursuant to
Section 10 thereof, (b) appoint a successor Administrator pursuant to Section 10 of the Administration Agreement, (c) remove the Servicer under the Servicing Agreement pursuant to Section 7.02 thereof or (d) except as
expressly provided in the Basic Documents, sell the Receivables or any interest therein after the termination of the Indenture. The Owner Trustee shall take the actions referred to in the preceding sentence only upon written instructions signed by
the Certificateholders. 
 SECTION 4.3 Action by Certificateholders with Respect to Bankruptcy. Neither the Trust nor the Owner
Trustee shall have the power to commence a voluntary proceeding in bankruptcy relating to the Trust without the unanimous prior approval of all Holders of Certificates (including the unanimous approval of the board of directors of the Seller) unless
the Owner Trustee reasonably believes that the Trust is insolvent. 
 SECTION 4.4 Restrictions on Certificateholders’ Power. The
Certificateholders shall not direct the Owner Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the Owner Trustee under this Agreement or any of the Basic Documents or
would be contrary to Section 2.3, nor shall the Owner Trustee be obligated to follow any such direction, if given. 
 SECTION 4.5
Majority Control. Except as expressly provided herein, any action that may be taken or consent that may be given or withheld by the Certificateholders under this Agreement shall be effective if such action is taken or such consent is given or
withheld by the Holders of a majority of the ownership interest in the Trust outstanding as of the close of the preceding Distribution Date. Except as expressly provided herein, any written notice, instruction, direction or other document of the
Certificateholders delivered pursuant to this Agreement shall be effective if signed by Holders of Certificates evidencing not less than a majority of the ownership interest in the Trust at the time of the delivery of such notice. 
  

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 ARTICLE V 
 APPLICATION OF TRUST FUNDS; CERTAIN DUTIES 
 SECTION 5.1 Establishment of Certificate Distribution
Account. 
 (a) The Seller shall cause the Servicer, for the benefit of the Certificateholders, to establish and maintain at JPMorgan
Chase Bank, N.A. in the name of the Trust an Eligible Deposit Account known as the Navistar Financial 2006-ARC Owner Trust Certificate Distribution Account (the “Certificate Distribution Account”), bearing an additional designation
clearly indicating that the funds deposited therein are held for the benefit of the Certificateholders. 
 (b) The Trust, for the benefit of
the Certificateholders, shall possess all right, title and interest in and to all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof. Except as otherwise provided herein or in the Pooling Agreement
or the Servicing Agreement, the Certificate Distribution Account shall be under the sole dominion and control of the Owner Trustee for the benefit of the Certificateholders. If, at any time, the Certificate Distribution Account ceases to be an
Eligible Deposit Account, the Seller shall cause the Servicer within 10 Business Days (or such longer period, not to exceed 30 calendar days, as to which the Certificateholders may consent) to establish a new Certificate Distribution Account as an
Eligible Deposit Account and shall cause the Owner Trustee to transfer any cash and/or any investments in the old Certificate Distribution Account to such new Certificate Distribution Account. 
 SECTION 5.2 Application of Trust Funds. 
 (a) On each Distribution Date, the Owner Trustee shall (based on the information contained in the Servicer’s Certificate delivered on the related Determination Date) distribute to the Certificateholders, on a pro rata basis, amounts on
deposit in the Certificate Distribution Account. 
 (b) On each Distribution Date, the Owner Trustee shall send (or shall cause to be sent)
to each Certificateholder the statement described in Section 2.17(a) of the Servicing Agreement. 
 (c) If any withholding tax is
imposed on distributions of the Owner Trust Estate (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to the Certificateholder in accordance with this Section 5.2. The Owner Trustee is
hereby authorized and directed to retain from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any withholding tax that is legally owed by the Trust in respect of any distribution (but such authorization
shall not prevent the Owner Trustee from contesting any such tax in appropriate proceedings and withholding payment of such tax, if permitted by law, pending the outcome of such proceedings). The amount of any withholding tax imposed with respect to
a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Trust and remitted to the appropriate taxing authority. If there is a possibility that withholding tax is payable with respect to a
distribution (such as a distribution to a non-U.S. Certificateholder), the Owner Trustee may in its sole discretion withhold such amounts in accordance with this Section 5.2(c). If a Certificateholder wishes to apply for a refund of any
such withholding tax, the Owner Trustee shall reasonably cooperate with such Certificateholder in making such claim so long as such Certificateholder agrees to reimburse the Trust and the Owner Trustee for any out-of-pocket expenses incurred.

  

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 (d) If the Indenture Trustee holds escheated funds for payment to the Trust pursuant to
Section 3.3(e) of the Indenture, the Owner Trustee shall, upon notice from the Indenture Trustee that such funds exist, submit on behalf of the Trust an Issuer Order to the Indenture Trustee pursuant to Section 3.3(e) of the Indenture
instructing the Indenture Trustee to pay such funds pro rata to or at the order of the Certificateholders. 
 SECTION 5.3 Method of
Payment. Subject to Section 7.1(c), distributions required to be made to Certificateholders on any Distribution Date shall be made to each Certificateholder of record on the related Record Date (i) by wire transfer, in immediately
available funds, to the account of such Certificateholder at a bank or other entity having appropriate facilities therefor or, where possible, by intra-bank book entry credit, if such Certificateholder shall have provided to the Certificate
Registrar appropriate written instructions at least five Business Days prior to such Record Date and the distribution required to be made to such Certificateholders exceeds $100,000 or (ii) by check mailed to such Certificateholder at the
address of such Certificateholder appearing in the Certificate Register. 
 SECTION 5.4 Accounting and Reports to the Certificateholders,
the Internal Revenue Service and Others. The Trust shall maintain (or cause to be maintained) the books of the Trust on the basis of a fiscal year ending October 31 on the accrual method of accounting, deliver to each Certificateholder, as
may be required by the Code and applicable Treasury Regulations or otherwise, such information as may be required to enable each Certificateholder to prepare its federal income tax returns, file such tax returns relating to the Trust and make such
elections as may from time to time be required or appropriate under any applicable state or federal statute or rule or regulation thereunder so as to maintain the Trust’s characterization as a division or branch of the Seller for federal income
tax purposes, cause such tax returns to be signed in the manner required by law and collect or cause to be collected any withholding tax as described in and in accordance with Section 5.2(c) with respect to income or distributions to
Certificateholders. 
 SECTION 5.5 Signature on Returns. The Owner Trustee shall sign on behalf of the Trust any and all tax returns
of the Trust, unless applicable law requires a Certificateholder to sign such documents, in which case such documents shall be signed by the Seller. 
 ARTICLE VI 
 THE OWNER TRUSTEE 
 SECTION 6.1 Duties of Owner Trustee. 
 (a) The Owner Trustee undertakes to perform such duties, and
only such duties, as are specifically set forth in this Agreement, the Pooling Agreement, the Servicing Agreement and the other Basic Documents, including the administration of the Trust in the interest of the Certificateholders, subject to the
Basic Documents and in accordance with the provisions of this Agreement, the Pooling Agreement and the Servicing Agreement. No implied covenants or obligations shall be read into this Agreement, the Pooling Agreement, the Servicing Agreement or any
other Basic Document against the Owner Trustee. 
 (b) Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged
its duties and responsibilities hereunder and under the Basic Documents to the 
  

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 extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the
Owner Trustee hereunder or under any Basic Document, and the Owner Trustee shall not be liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement. 
 (c) In the absence of bad faith on its part, the Owner Trustee may conclusively rely upon certificates or opinions furnished to the Owner Trustee and
conforming to the requirements of this Agreement in determining the truth of the statements and the correctness of the opinions contained therein; provided, however, that the Owner Trustee shall have examined such certificates or
opinions so as to determine compliance of the same with the requirements of this Agreement. 
 (d) The Owner Trustee may not be relieved from
liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that: 
 (i)
this Section 6.1(d) shall not limit the effect of Section 6.1(a) or (b); 
 (ii) the Owner Trustee shall not
be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved that the Owner Trustee was negligent in ascertaining the pertinent facts; and 
 (iii) the Owner Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 4.1, 4.2 or 6.4. 
 (e) Subject to Sections 5.1 and 5.2, monies received by the Owner
Trustee hereunder need not be segregated in any manner except to the extent required by law, the Pooling Agreement or the Servicing Agreement and may be deposited under such general conditions as may be prescribed by law, and the Owner Trustee shall
not be liable for any interest thereon. 
 (f) The Owner Trustee shall not take any action that (i) is inconsistent with the purposes of
the Trust set forth in Section 2.3 or (ii) would, to the actual knowledge of a Responsible Officer of the Owner Trustee, result in the Trust becoming taxable as a corporation for federal income tax purposes. 
 (g) The Certificateholders shall not direct the Owner Trustee to take action that would violate the provisions of this Section 6.1. 
 SECTION 6.2 Authority of Owner Trustee. The Owner Trustee is authorized and directed to execute and deliver the Basic Documents and each
certificate or other document attached as an exhibit to or contemplated by the Basic Documents to which the Trust is to be a party in such form as the Seller shall approve as evidenced conclusively by the Owner Trustee’s execution thereof. In
addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Trust pursuant to the Basic Documents. The Owner Trustee is further authorized from time to time to take such action as the
Administrator recommends with respect to the Basic Documents. 
  

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 SECTION 6.3 Acceptance of Trusts and Duties. Except as otherwise provided in this Article VI, in
accepting the trusts hereby created, the Person executing this Agreement as Owner Trustee acts solely as Owner Trustee hereunder and not in its individual capacity and all Persons having any claim against the Owner Trustee by reason of the
transactions contemplated by this Agreement or any Basic Document shall look only to the Owner Trust Estate for payment or satisfaction thereof. The Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with
respect to such trusts but only upon the terms of this Agreement. The Owner Trustee also agrees to disburse all monies actually received by it constituting part of the Owner Trust Estate upon the terms of this Agreement. The Owner Trustee shall not
be liable or accountable hereunder or under any Basic Document under any circumstances, except for its own negligent action, its own negligent failure to act or its own willful misconduct or in the case of the inaccuracy of any representation or
warranty contained in Section 6.6 and expressly made by the Owner Trustee. In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence): 
 (a) the Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any
Receivable or the perfection and priority of any security interest created by any Receivable in any Financed Vehicle or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Owner Trust Estate or its
ability to generate the distributions and payments to be made to Certificateholders under this Agreement or to Noteholders under the Indenture, including, without limitation: the existence, condition and ownership of any Financed Vehicle; the
existence and enforceability of any insurance thereon; the existence and contents of any Receivable on any computer or other record thereof; the validity of the assignment of any Receivable to the Trust or of any intervening assignment; the
completeness of any Receivable; the performance or enforcement of any Receivable; the compliance by the Seller or the Servicer with any warranty or representation made under any Basic Document or in any related document or the accuracy of any such
warranty or representation or any action of the Administrator, the Owner Trustee or the Servicer or any subservicer taken in the name of the Owner Trustee; 
 (b) the Owner Trustee shall not be liable with respect to any action taken or omitted to be taken by it in accordance with the instructions of the Administrator or any Certificateholder; 
 (c) no provision of this Agreement or any Basic Document shall require the Owner Trustee to expend or risk funds or otherwise incur any financial
liability in the performance of any of its rights or powers hereunder or under any Basic Document, if the Owner Trustee shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is
not reasonably assured or provided to it; 
 (d) under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or
arising under any of the Basic Documents, including the principal of and interest on the Notes or any amounts payable with respect to the Certificates; 
  

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 (e) the Owner Trustee shall not be responsible for or in respect of, and makes no representation as to,
the validity or sufficiency of any provision of this Agreement or for the due execution hereof by the Seller or for the form, character, genuineness, sufficiency, value or validity of any of the Owner Trust Estate or for or in respect of the
validity or sufficiency of the Basic Documents, the Notes, the Certificates (other than the certificate of authentication on the Certificates) or of any Receivables or any related documents, and the Owner Trustee shall in no event assume or incur
any liability, duty or obligation to any Noteholder or to any Certificateholder, other than as expressly provided for herein and in the Basic Documents; 
 (f) the Owner Trustee shall not be liable for the default or misconduct of the Administrator, the Indenture Trustee, the Seller or the Servicer under any of the Basic Documents or otherwise and the Owner Trustee shall
not have any obligation or liability to perform the obligations of the Trust under this Agreement or the Basic Documents that are required to be performed by the Administrator under the Administration Agreement, the Indenture Trustee under the
Indenture, the Servicer under the Servicing Agreement or NFC under the Purchase Agreement; and 
 (g) the Owner Trustee shall not be under
any obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or otherwise or in relation to this Agreement or any Basic Document, at the request, order
or direction of any of the Certificateholders, unless such Certificateholders have offered to the Owner Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or
thereby. The right of the Owner Trustee to perform any discretionary act enumerated in this Agreement or in any Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable for other than its negligence or willful
misconduct in the performance of any such act. 
 SECTION 6.4 Action upon Instruction by Certificateholders. 
 (a) Subject to Section 4.4 and Section 6.1(g), the Certificateholders may by written instruction direct the Owner Trustee in the management of
the Trust. Such direction may be exercised at any time by written instruction of the Certificateholders pursuant to Section 4.5. 
 (b)
Notwithstanding the foregoing, the Owner Trustee shall not be required to take any action hereunder or under any Basic Document if the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely
to result in liability on the part of the Owner Trustee or is contrary to the terms hereof or of any Basic Document or is otherwise contrary to law. 
 (c) Whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of this Agreement or any Basic Document, or is unsure as to the application, intent,
interpretation or meaning of any provision of this Agreement or the Basic Documents, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders requesting instruction as to
the course of action to be adopted, and, to the extent the Owner Trustee acts in good faith in accordance with any such instruction received, the Owner Trustee shall not be liable on account of such action to any Person. If the Owner Trustee shall
not have received appropriate 
  

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 instructions within ten days of such notice (or within such shorter period of time as reasonably may be specified in such
notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action which is consistent, in its view, with this Agreement or the Basic Documents, and as it shall deem to be in the best
interests of the Certificateholders, and the Owner Trustee shall have no liability to any Person for any such action or inaction. 
 SECTION
6.5 Furnishing of Documents. The Owner Trustee shall furnish to the Certificateholders, promptly upon receipt of a written request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements
and any other instruments furnished to the Trust or the Owner Trustee under the Basic Documents. 
 SECTION 6.6 Representations and
Warranties of Owner Trustee. The Owner Trustee hereby represents and warrants to the Seller, for the benefit of the Certificateholders, that: 
 (a) It is a national bank duly organized, validly existing and in good standing under the laws of the United States of America. The eligibility requirements set forth in Section 6.13 (a) - (c) are satisfied with respect to it.

 (b) It has full power, authority and legal right to execute, deliver and perform this Agreement, and has taken all necessary action to
authorize the execution, delivery and performance by it of this Agreement. 
 (c) The execution, delivery and performance by it of this
Agreement (i) shall not violate any provision of any law or regulation governing the banking and trust powers of the Owner Trustee or any order, writ, judgment or decree of any court, arbitrator or governmental authority applicable to the Owner
Trustee or any of its assets, (ii) shall not violate any provision of the charter or by-laws of the Owner Trustee, or (iii) shall not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or
result in the creation or imposition of any lien on any properties included in the Owner Trust Estate pursuant to the provisions of any mortgage, indenture, contract, agreement or other undertaking to which it is a party, which violation, default or
lien could reasonably be expected to have a materially adverse effect on the Owner Trustee’s performance or ability to perform its duties as Owner Trustee under this Agreement or on the transactions contemplated in this Agreement. 

(d) The execution, delivery and performance by the Owner Trustee of this Agreement shall not require the authorization, consent or approval of, the
giving of notice to, the filing or registration with, or the taking of any other action in respect of, any governmental authority or agency regulating the corporate trust activities of the Owner Trustee. 
 (e) This Agreement has been duly executed and delivered by the Owner Trustee and constitutes the legal, valid and binding agreement of the Owner Trustee,
enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity,
regardless of whether such enforceability is considered in a proceeding in equity or at law. 
  

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 SECTION 6.7 Reliance; Advice of Counsel. 
 (a) The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order,
certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties and need not investigate any fact or matter in any such document. The Owner Trustee may accept
a certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect. As to any
fact or matter the method of the determination of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other
authorized officers of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon. 
 (b) In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement or the Basic
Documents, the Owner Trustee: may act directly or through its agents, attorneys, custodians or nominees pursuant to agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents,
attorneys, custodians or nominees if such agents, attorneys, custodians or nominees shall have been selected by the Owner Trustee with reasonable care; and may consult with counsel, accountants and other skilled professionals to be selected with
reasonable care and employed by it. The Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the opinion or advice of any such counsel, accountants or other such Persons and not contrary to
this Agreement or any Basic Document. 
 SECTION 6.8 Owner Trustee May Own Certificates and Notes. The Owner Trustee in its individual
or any other capacity may become the owner or pledgee of Certificates or Notes and may deal with the Seller, the Administrator, the Indenture Trustee and the Servicer in transactions in the same manner as it would have if it were not the Owner
Trustee. 
 SECTION 6.9 Compensation and Indemnity. The Owner Trustee shall receive as compensation from the Seller for its services
hereunder such fees as have been separately agreed upon before the date hereof between the Seller and the Owner Trustee, and the Owner Trustee shall be entitled to be reimbursed by the Servicer for its other reasonable expenses hereunder, including
the reasonable compensation, expenses and disbursements of such agents, custodians, nominees, representatives, experts and counsel as it may employ in connection with the exercise and performance of its rights and its duties hereunder. The Servicer
shall indemnify the Owner Trustee and its successors, assigns, agents and servants in accordance with the provisions of Section 6.05 of the Servicing Agreement. The compensation and indemnities described in this Section 6.9 shall survive
the resignation or termination of the Owner Trustee or the termination of this Agreement. Any amounts paid to the Owner Trustee pursuant to this Article VI shall not be deemed to be a part of the Owner Trust Estate immediately after such payment.

  

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 SECTION 6.10 Replacement of Owner Trustee. 
 (a) The Owner Trustee may give notice of its intent to resign and be discharged from the trusts hereby created by written notice thereof to the
Administrator; provided that no such resignation shall become effective, and the Owner Trustee shall not resign, prior to the time set forth in Section 6.10(c). The Administrator may appoint a successor Owner Trustee by delivering a written
instrument, in duplicate, to the resigning Owner Trustee and the successor Owner Trustee. If no successor Owner Trustee shall have been appointed and have accepted appointment within 30 days after the giving of such notice, the resigning Owner
Trustee giving such notice may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee. The Administrator shall remove the Owner Trustee if: 
 (i) the Owner Trustee shall cease to be eligible in accordance with the provisions of Section 6.13 and shall fail to resign after
written request therefor by the Administrator; 
 (ii) the Owner Trustee shall be adjudged bankrupt or insolvent; 

(iii) a receiver or other public officer shall be appointed or take charge or control of the Owner Trustee or of its property or
affairs for the purpose of rehabilitation, conservation or liquidation; or 
 (iv) the Owner Trustee shall otherwise be
incapable of acting. 
 (b) If the Owner Trustee gives notice of its intent to resign or is removed or if a vacancy exists in the office of
Owner Trustee for any reason, the Administrator shall promptly appoint a successor Owner Trustee by written instrument, in duplicate (one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed and one copy to the
successor Owner Trustee) and shall pay all fees owed to the outgoing Owner Trustee. 
 (c) Any resignation or removal of the Owner Trustee
and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section 6.10 shall not become effective and no such resignation shall be deemed to have occurred until a written acceptance of appointment is delivered by
the successor Owner Trustee to the outgoing Owner Trustee and the Administrator and all fees and expenses due to the outgoing Owner Trustee are paid. Any successor Owner Trustee appointed pursuant to this Section 6.10 shall be eligible to act
in such capacity in accordance with Section 6.13 and, following compliance with the preceding sentence, shall become fully vested with all the rights, powers, duties and obligations of its predecessor under this Agreement, with like effect as
if originally named as Owner Trustee. The Administrator shall provide notice of such resignation or removal of the Owner Trustee to the Funding Agent. 
 (d) The predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents and statements and monies held by it under this Agreement. The Administrator and the
predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties and
obligations. 
  

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 (e) Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section 6.10, the
Administrator shall mail notice of the successor of such Owner Trustee to all Certificateholders, the Indenture Trustee, the Noteholders and the Funding Agent. The successor Owner Trustee shall file an appropriate amendment to the Certificate of
Trust. 
 SECTION 6.11 Merger or Consolidation of Owner Trustee. Any Person into which the Owner Trustee may be merged or converted or
with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the Owner Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust business of the Owner
Trustee, shall be the successor of the Owner Trustee hereunder, provided such Person shall be eligible pursuant to Section 6.13, and without the execution or filing of any instrument or any further act on the part of any of the parties hereto;
provided, however, that the Owner Trustee shall mail notice of such merger or consolidation to the Funding Agent. 
 SECTION 6.12
Appointment of Co-Trustee or Separate Trustee. 
 (a) Notwithstanding any other provisions of this Agreement, at any time, for the
purpose of meeting any legal requirement of any jurisdiction in which any part of the Owner Trust Estate or any Financed Vehicle may at the time be located, the Administrator and the Owner Trustee acting jointly shall have the power and shall
execute and deliver all instruments to appoint one or more Persons approved by the Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or as separate trustee or trustees, of all or any part of the Owner Trust Estate, and to vest in
such Person, in such capacity, such title to the Owner Trust Estate, or any part thereof, and, subject to the other provisions of this Section 6.12, such powers, duties, obligations, rights and trusts as the Administrator and the Owner Trustee
may consider necessary or desirable. If the Administrator shall not have joined in such appointment within 15 days after the receipt by it of a request to do so, the Owner Trustee alone shall have the power to make such appointment. No co-trustee or
separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 6.13 and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to
Section 6.10. 
 (b) Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the
following provisions and conditions: 
 (i) all rights, powers, duties and obligations conferred or imposed upon the Owner
Trustee shall be conferred upon and exercised or performed by the Owner Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Owner
Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed, the Owner Trustee shall be incompetent or unqualified to perform such act or acts, in which event such
rights, powers, duties and obligations (including the holding of title to the Owner Trust Estate or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the
direction of the Owner Trustee; 
  

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 (ii) no trustee under this Agreement shall be personally liable by reason of any act or
omission of any other trustee under this Agreement (unless such other trustee acts or fails to act at the direction of such first trustee); and 
 (iii) the Administrator and the Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee. 
 (c) Any notice, request or other writing given to the Owner Trustee shall be deemed to have been given to each of the then separate trustees and
co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article. Each separate trustee and co-trustee, upon its acceptance of
the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement,
specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee. Each such instrument shall be filed with the Owner Trustee and a copy thereof given to
the Administrator. 
 (d) Any separate trustee or co-trustee may at any time appoint the Owner Trustee as its agent or attorney-in-fact with
full power and authority, to the extent not prohibited by law, to do any lawful act under or in respect of this Agreement on its behalf and in its name. If any separate trustee or co-trustee shall die, become incapable of acting, resign or be
removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 
 SECTION 6.13 Eligibility Requirements for Owner Trustee. The Owner Trustee shall at all times: (a) be a corporation, a national banking
association or a bank satisfying the provisions of Section 3807(a) of the Statutory Trust Statute; (b) be authorized to exercise corporate trust powers; (c) have a combined capital and surplus of at least $50,000,000 and be subject to
supervision or examination by federal or state authorities; and (d) have a long-term unsecured debt rating of at least Baa3 by Moody’s or be otherwise satisfactory to Moody’s. If such Person or bank shall publish reports of condition
at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section 6.13, the combined capital and surplus of such Person or bank shall be deemed to be its combined
capital and surplus as set forth in its most recent report of condition so published. If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section 6.13, the Owner Trustee shall resign immediately
in the manner and with the effect specified in Section 6.10. 
  

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 ARTICLE VII 
 TERMINATION OF TRUST AGREEMENT 
 SECTION 7.1 Termination of Trust Agreement. 
 (a) The Trust shall dissolve and wind up in accordance with Section 3808 of the Statutory Trust Statute on or immediately preceding the final
distribution by the Owner Trustee of all monies or other property or proceeds of the Owner Trust Estate in accordance with the terms of the Indenture, the Pooling Agreement (including the exercise by the Servicer of its option to purchase the
Receivables pursuant to Section 4.01 of the Pooling Agreement), the Servicing Agreement and Article V. The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall not (x) operate to terminate this Agreement
or the Trust, nor (y) entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of all or any part of the Trust or the Owner Trust
Estate nor (z) otherwise affect the rights, obligations and liabilities of the parties hereto. 
 (b) This Agreement shall be
irrevocable. Except as provided in Section 7.1(a) and in this Section 7.1(b), neither the Seller nor any Certificateholder shall be entitled to revoke or terminate the Trust or this Agreement. Each of the Seller, the Trust and the Owner
Trustee acknowledges that the Indenture Trustee, on behalf of the Noteholders, is a third-party beneficiary of this Agreement. For so long as the Notes are outstanding, neither the Trust nor this Agreement shall be revoked without the consent of the
Indenture Trustee. Each of the Seller, the Trust and the Owner Trustee acknowledges that the Indenture Trustee, as an agent of the Noteholders, maintains a legitimate interest in ensuring that the Trust is not revoked prior to the fulfillment of the
Trust objectives. In no event may this Agreement be amended without the consent of the Indenture Trustee if the effect of such amendment is the revocation or termination of this Trust other than in accordance with this Section 7.1. 

(c) Notice of any dissolution of the Trust specifying the Distribution Date upon which the Certificateholders shall surrender their Certificates to
the Owner Trustee for payment of the final distribution and cancellation, shall be given by the Owner Trustee by letter to Certificateholders mailed within five Business Days of receipt of notice of dissolution from the Servicer given pursuant to
Section 8.13(b) of the Indenture, stating: (i) the Distribution Date upon or with respect to which the final distribution on the Certificates shall be made upon presentation and surrender of the Certificates at the office of the
Owner Trustee; (ii) the amount of any such final distribution; and (iii) that the Record Date otherwise applicable to such Distribution Date is not applicable, distributions being made only upon presentation and surrender of the
Certificates at the office of the Owner Trustee therein specified. The Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Owner Trustee at the time such notice is given to Certificateholders.
Upon presentation and surrender of the Certificates, the Owner Trustee shall cause to be distributed to Certificateholders amounts distributable on such Distribution Date pursuant to Section 5.2. 
 (d) If all of the Certificateholders shall not surrender their Certificates for cancellation within six months after the date specified in the written
notice specified in Section 7.1(c), the Owner Trustee shall give a second written notice to the remaining Certificateholders 
  

 - 21 - 

 to surrender their Certificates for cancellation and receive the final distribution with respect thereto. If within one
year after the second notice all the Certificates shall not have been surrendered for cancellation, the Owner Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders
concerning surrender of their Certificates, and the cost thereof shall be paid out of the funds and other assets that shall remain subject to this Agreement. Subject to applicable laws with respect to escheat of funds, any funds remaining in the
Owner Trust Estate after exhaustion of such remedies in the preceding sentence shall be deemed property of the Seller and distributed by the Owner Trustee to the Seller. 
 (e) Within sixty days of the later of (i) the cancellation of all of the Certificates pursuant to Section 7.1(c) or Section 7.1(d), or (ii) payment to the Seller of funds remaining in the Owner
Trust Estate pursuant to Section 7.1(d), the Owner Trustee shall provide the Funding Agent with written notice stating that all Certificates have been so canceled or such funds have been so paid to the Seller. 
 (f) Upon completion of the winding up of the trust, the Owner Trustee shall cause the Certificate of Trust to be canceled by filing a certificate of
cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Statutory Trust Statute and, upon such filing, the Trust shall terminate. 
 ARTICLE VIII 
 AMENDMENTS 
 SECTION 8.1 Amendments Without Consent of Certificateholders or Noteholders. This Agreement may be amended by the Seller and the Owner Trustee
without the consent of any of the Securityholders (but with prior consent of the Funding Agent) to (i) cure any ambiguity, (ii) correct or supplement any provision in this Agreement that may be defective or inconsistent with any other
provision in this Agreement or any other Basic Document, (iii) add or supplement any credit enhancement for the benefit of the Securityholders (provided that if any such addition shall affect any class of Securityholders differently than any
other class of Securityholders, then such addition shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any class of the Securityholders), (iv) add to the covenants, restrictions or
obligations of the Seller or the Owner Trustee for the benefit of the Securityholders, (v) evidence and provide for the acceptance of the appointment of a successor trustee with respect to the Owner Trust Estate and add to or change any
provisions as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee pursuant to Article VI, or (vi) add, change or eliminate any other provision of this Agreement in any manner that shall not, as
evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of the Securityholders. 
 SECTION 8.2
Amendments With Consent of Certificateholders and Noteholders. This Agreement may be amended from time to time by the Seller and the Owner Trustee with the consent of the Funding Agent and the Noteholders whose Notes evidence not less than a
majority of the Outstanding Amount of the Controlling Class as of the close of business on the preceding Distribution Date (unless the interests of the Noteholders are not materially and adversely affected thereby as evidenced by an Officer’s
Certificate of the Servicer to that effect) and the 
  

 - 22 - 

 consent of the Holders of Certificates (unless the interests of the Certificateholders are not materially and adversely
affected thereby as evidenced by an Officer’s Certificate of the Servicer to that effect) evidencing not less than a majority of the ownership interests in the Owner Trust Estate as of the close of business on the preceding Distribution Date
(which consent, whether given pursuant to this Section 8.2 or pursuant to any other provision of this Agreement, shall be conclusive and binding on such Person and on all future holders of such Notes or Certificates and of any Notes or
Certificates issued upon the transfer thereof or in exchange thereof or in lieu thereof whether or not notation of such consent is made upon the Notes or Certificates) for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement, or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall (a) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables or distributions that shall be required to be made on any Note, (b) reduce the aforesaid percentage required to consent to any such amendment or (c) amend
Section 4.3, without the consent of the Holders of all of the Notes and the Holders of all of the Certificates then outstanding. 
 SECTION 8.3 Form of Amendments. 
 (a) Promptly after the execution of any amendment, supplement or consent pursuant to
Section 8.1 or 8.2, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to each Certificateholder and the Indenture Trustee. 
 (b) It shall not be necessary for the consent of Certificateholders, the Noteholders or the Indenture Trustee pursuant to Section 8.2 to approve the
particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any other consents of Certificateholders provided for in this Agreement
or in any other Basic Document) and of evidencing the authorization of the execution thereof by Certificateholders and Noteholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe. 
 (c) Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the Owner Trustee shall be entitled to receive and rely upon
an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent to such execution have been satisfied. The Owner Trustee may, but shall not be obligated to, enter into
any such amendment which affects the Owner Trustee’s own rights, duties or immunities under this Agreement or otherwise. 
 (d) Promptly
after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall cause the filing of such amendment with the Secretary of State. 
 (e) Notwithstanding any other provision of this Agreement, if the consent of the Swap Counterparty is required pursuant to the Swap Counterparty Rights Agreement to amend this Agreement, any such purported amendment
shall be null and void ab initio unless the Swap Counterparty consents in writing to such amendment. 
  

 - 23 - 

 ARTICLE IX 
 MISCELLANEOUS 
 SECTION 9.1 No Legal Title to Owner Trust Estate. The Certificateholders shall
not have legal title to any part of the Owner Trust Estate. The Certificateholders shall be entitled to receive distributions with respect to their undivided beneficial interest therein only in accordance with Articles V and VII. No transfer, by
operation of law or otherwise, of any right, title, and interest of the Certificateholders to and in their ownership interest in the Owner Trust Estate shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an
accounting or to the transfer to it of legal title to any part of the Owner Trust Estate. 
 SECTION 9.2 Limitations on Rights of
Others. The provisions of this Agreement are solely for the benefit of the Owner Trustee, the Seller, the Certificateholders, the Administrator and, to the extent expressly provided herein, the Indenture Trustee and the Noteholders, and nothing
in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Owner Trust Estate or under or in respect of this Agreement or any covenants, conditions or provisions
contained herein. The Administrator shall be a third party beneficiary with respect to the rights granted to it under Section 6.10(a). 
 SECTION 9.3 Notices. All demands, notices and communications upon or to the Seller, the Servicer, the Administrator, the Indenture Trustee, the Owner Trustee, the Funding Agent or any Certificateholder under this Agreement shall be
delivered as specified in Appendix B to the Pooling Agreement. 
 SECTION 9.4 Severability. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed enforceable to the fullest extent permitted, and if not so permitted, shall be
deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Certificates or the rights of the holders
thereof. 
 SECTION 9.5 Counterparts. This Agreement may be executed by the parties hereto in separate counterparts (and by different
parties on separate counterparts), each of which when so executed and delivered shall be an original, but all of which together shall constitute one and the same instrument. 
 SECTION 9.6 Successors and Assigns. All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the Seller,
the Owner Trustee and each Certificateholder and their respective successors and permitted assigns, all as herein provided. Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall bind the
successors and assigns of such Certificateholder. 
 SECTION 9.7 No Petition Covenant. Notwithstanding any prior termination of this
Agreement, the Trust (or the Owner Trustee, on behalf of the Trust), and each Certificateholder, by accepting a Certificate (or interest therein), hereby covenant and agree that they shall not, prior to the date which is one year and one day after
the termination of this Agreement acquiesce, 
  

 - 24 - 

 petition or otherwise invoke or cause the Seller to invoke the process of any court or governmental authority for the
purpose of commencing or sustaining a case against the Seller under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Seller
or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Seller. 
 SECTION 9.8 No
Recourse. Each Certificateholder by accepting a Certificate (or interest therein) acknowledges that such Person’s Certificate (or interest therein) represents beneficial interests in the Trust only and does not represent interests in or
obligations of the Seller, the Servicer, the Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof and no recourse, either directly or indirectly, may be had against such parties or their assets, except as may be expressly
set forth or contemplated in this Agreement, the Certificates or the Basic Documents. Except as expressly provided in the Basic Documents, neither the Seller, the Servicer nor the Owner Trustee in their respective individual capacities, nor any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns, shall be personally liable for, nor shall recourse be had to any of them for, the distribution of any amount with respect to the Certificates,
or the Owner Trustee’s performance of, or omission to perform, any of the covenants, obligations or indemnifications contained in the Certificates or this Agreement, it being expressly understood that said covenants and obligations have been
made by the Owner Trustee solely in its capacity as the Owner Trustee. Each Certificateholder by the acceptance of a Certificate (or beneficial interest therein) shall agree that, except as expressly provided in the Basic Documents, in the case of
nonpayment of any amounts with respect to the Certificates, it shall have no claim against any of the foregoing for any deficiency, loss or claim therefrom. 
 SECTION 9.9 Headings. The headings of the various Articles and Sections herein are for purposes of reference only and shall not affect the meaning or interpretation of any provision hereof. 
 SECTION 9.10 Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of
Delaware, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
 SECTION 9.11 Administrator. The Administrator is authorized to execute on behalf of the Trust all such documents, reports, filings, instruments,
certificates and opinions as it shall be the duty of the Trust to prepare, file or deliver pursuant to the Basic Documents. Upon request, the Owner Trustee shall execute and deliver to the Administrator a power of attorney appointing the
Administrator as the Trust’s agent and attorney-in-fact to execute all such documents, reports, filings, instruments, certificates and opinions. 
 SECTION 9.12 Amended and Restated Trust Agreement. This Trust Agreement is the amended and restated trust agreement contemplated by the Trust Agreement dated as of June 12, 2006, between the Seller and the
Owner Trustee. 
  

 - 25 - 

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

			
	 CHASE BANK USA, NATIONAL ASSOCIATION
 as
Owner Trustee

		
	By:	 	 /s/ Sarika M. Sheth

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

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

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

  

			
	Acknowledged and Accepted:
	
	 NAVISTAR FINANCIAL CORPORATION,
 as
Servicer

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

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

			
	Acknowledged and Accepted:
	
	 JPMorgan Chase Bank, N.A.,
 as the initial
Paying Agent and the
 initial Certificate Registrar

		
	By:	 	 /s/ Keith R. Richardson

	Name:	 	Keith R. Richardson
	Title:	 	Attorney-In-Fact

 EXHIBIT A 
 FORM OF CERTIFICATE 
 NUMBER R-     
 OWNERSHIP INTEREST:         % 
 SEE REVERSE FOR CERTAIN DEFINITIONS 
 THIS CERTIFICATE MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF (i) AN “EMPLOYEE BENEFIT PLAN” (AS DEFINED IN SECTION 3(3)
OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED, (“ERISA”)) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (ii) A PLAN DESCRIBED IN SECTION 4975(e)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED
(THE “CODE”), OR (iii) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT IN THE ENTITY. BY ACCEPTING AND HOLDING THIS CERTIFICATE, THE HOLDER HEREOF AND THE CERTIFICATE OWNER SHALL EACH BE
DEEMED TO HAVE REPRESENTED AND WARRANTED THAT IT IS NOT A BENEFIT PLAN. 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE
ORIGINALLY ISSUED ON SEPTEMBER 1, 2006, HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN
EXEMPTION FROM REGISTRATION THEREUNDER. 
 Navistar Financial 2006-ARC Owner Trust 
 CERTIFICATE 
 evidencing a fractional undivided interest in the Trust, as defined
below, the property of which includes a pool of retail loans evidenced by notes secured by new and used medium and heavy duty trucks, truck chassis, buses and trailers and a beneficial interest in a pool of retail leases and the underlying medium
and heavy duty trucks, truck chassis, buses and trailers. 
 (This Certificate does not represent an interest in or obligation of Navistar
Financial Retail Receivables Corporation, Navistar Financial Corporation, Navistar Leasing Company, Harco Leasing Company, Inc., International Truck and Engine Corporation, Navistar International Corporation, the Owner Trustee or any of their
respective affiliates, except to the extent described below.) 
 THIS CERTIFIES THAT
                                        
is the registered owner of a nonassessable, fully-paid, fractional undivided interest in Navistar Financial 2006-ARC Owner Trust (the “Trust”). 
  

 A- 1 

 The Trust was created pursuant to a trust agreement, dated as of June 12, 2006 (as amended, restated
or supplemented from time to time, the “Trust Agreement”), between the Seller and Chase Bank USA, National Association, as owner trustee (the “Owner Trustee”), a summary of certain of the pertinent provisions of which is set
forth below. To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them in the Trust Agreement. 
 This Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, the terms of which are incorporated herein by reference and made a part hereof, to which Trust Agreement
the Holder of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound. 
 The Holder of this
Certificate acknowledges and agrees that its rights to receive distributions in respect of this Certificate are subordinated to the rights of the Noteholders as and to the extent described in the Pooling Agreement, the Servicing Agreement and the
Indenture. 
 Each Certificateholder with respect to a Certificate, by its acceptance of a Certificate, covenants and agrees that such
Certificateholder with respect to a Certificate, shall not, prior to the date which is one year and one day after the termination of the Trust Agreement, acquiesce, petition or otherwise invoke or cause the Seller to invoke the process of any court
or governmental authority for the purpose of commencing or sustaining a case against the Seller under any federal or state bankruptcy, insolvency, reorganization or similar law or appointing a receiver, liquidator, assignee, trustee, custodian,
sequestrator or other similar official of the Seller or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Seller. 
 Distributions on this Certificate shall be made as provided in the Trust Agreement by the Owner Trustee by wire transfer, check mailed or, where possible, intra-bank book entry to the Certificateholder of record in
the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon. Except as otherwise provided in the Trust Agreement and notwithstanding the above, the final distribution on this Certificate
shall be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office maintained for such purpose by the Owner Trustee in the Borough of Manhattan, the
City of New York. 
 Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon
shall have been executed by an authorized officer of the Owner Trustee by manual signature, this Certificate shall not entitle the Holder hereof to any benefit under the Trust Agreement, the Pooling Agreement or the Servicing Agreement or be valid
for any purpose. 
  

 A- 2 

 THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
  

 A- 3 

 IN WITNESS WHEREOF, the Owner Trustee, not in its individual capacity, but solely as Owner Trustee, has
caused this Certificate to be duly executed. 
  

					
	Dated: September 1, 2006	 	 NAVISTAR FINANCIAL 2006-ARC OWNER
 TRUST

		
		 	By: Chase Bank USA, National Association,
		 	not in its individual capacity but solely as Owner Trustee
			
		 	By:	 	  

		 	Name:	 	Sarika Seth
		 	Title:	 	Assistant Vice President

 OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is one of the Certificates referred to in the within-mentioned Trust Agreement. 
  

									
	CHASE BANK USA, NATIONAL ASSOCIATION OR	 		 	CHASE BANK USA, NATIONAL ASSOCIATION
			
	  
	 		 	  

	 not in its individual capacity but solely as
 Owner Trustee
	 		 	 not in its individual capacity but solely as
 Owner Trustee

				
		 		 		 	 By: JPMorgan Chase Bank, N.A., as
 Authenticating Agent

					
	By:	 	  
	 		 	By:	 	  

		 	Authorized Officer	 		 		 	Authorized Officer

 REVERSE OF CERTIFICATE 
 The Certificates do not represent an obligation of, or an interest in, the Seller, the Servicer, Harco Leasing Company, Inc., Navistar Leasing Company, the Indenture Trustee, the Owner Trustee or any affiliates of any
of them and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein or in the Trust Agreement or the Basic Documents. In addition, this Certificate is not guaranteed by any
governmental agency or instrumentality and is limited in right of payment to certain collections and recoveries with respect to the Receivables (and certain other amounts), all as more specifically set forth herein and in the Trust Agreement, the
Pooling Agreement and the Servicing Agreement. A copy of each of the Pooling Agreement, the Servicing Agreement and the Trust Agreement may be examined during normal business hours at the principal office of the Seller, and at such other places, if
any, designated by the Seller, by any Certificateholder upon written request. 
 The Trust Agreement permits, with certain exceptions therein
provided, the amendment thereof and the modification of the rights and obligations of the Seller and the rights of the Certificateholders under the Trust Agreement at any time by the Seller and the Owner Trustee with the consent of (i) the
Holders of the Notes evidencing not less than a majority of the Outstanding Amount of the Controlling Class, and (ii) Certificateholders whose Certificates evidence not less than a majority of the ownership interest in the Trust, each as of the
close of the preceding Distribution Date. Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and on all future Holders of this Certificate and of any Certificate issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate. The Trust Agreement also permits the amendment thereof, in certain circumstances, without the consent of the Holders of any of the
Certificates or the Notes. 
 As provided in the Trust Agreement and subject to certain limitations therein set forth, the transfer of this
Certificate is registerable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies of the Certificate Registrar maintained by the Owner Trustee in the City of New York, accompanied by
(i) a written instrument of transfer in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Holder hereof or such Holder’s attorney duly authorized in writing and (ii) certain opinions required by
Section 3.4(b) of the Trust Agreement, and thereupon one or more new Certificates of authorized denominations evidencing the same aggregate interest in the Trust will be issued to the designated transferee. The initial Certificate Registrar
appointed under the Trust Agreement is JPMorgan Chase Bank, N.A., New York, New York. 
 The Owner Trustee, the Certificate Registrar and any
agent of the Owner Trustee or the Certificate Registrar may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the Owner Trustee, the Certificate Registrar or any such agent shall be
affected by any notice to the contrary. 

 The obligations and responsibilities created by the Trust Agreement and the Trust created thereby shall
terminate upon the distribution to Certificateholders of all amounts required to be distributed to them pursuant to the Trust Agreement, the Pooling Agreement and the Servicing Agreement and the disposition of all property held as part of the Trust.

 ASSIGNMENT 
 FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY 
 OR OTHER IDENTIFYING NUMBER 
 OF ASSIGNEE 
  
  

	
	  
	  
	
	 (Please print or type name and address, including postal zip code, of assignee)

	  
	
	 the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing

	
	                                      
                                        
                                        
           Attorney to transfer said Certificate on the books of the Certificate Registrar, with full power of substitution in the premises.

  

							
	Dated:	 	  
	 	*	 	
		 	Signature Guaranteed:	 		 	
				
		 	  
	 	*	 	

	*	NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of the within Certificate in every particular, without alteration, enlargement or
any change whatever. Such signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. 

 EXHIBIT B 
 CERTIFICATE OF TRUST OF 
 Navistar Financial 2006-ARC Owner Trust 
 This Certificate of Trust of Navistar Financial 2006-ARC Owner Trust (the “Trust”), is being duly executed and filed on behalf of the Trust by
the undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. C. §3801 et seq.) (the “Act”). 
 1. Name. The name of the business trust formed by this Certificate of Trust is Navistar Financial 2006-ARC Owner Trust. 
 2. Delaware Trustee. The name and business address of the trustee of the Trust in the State of Delaware is
                    ,
                    ,
                    , Delaware
                    , Attention:
                    . 
 3. This
Certificate of Trust shall be effective upon filing. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate of Trust in
accordance with Section 3811(a)(1) of the Act. 
  

			
	By:	 	  

		 	 not in its individual capacity but solely as
 Owner
Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 B-1Purchase Agreement

 EXHIBIT 10.5 
 EXECUTION COPY 
  

 PURCHASE AGREEMENT 
 BETWEEN 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION 
 AND 
 NAVISTAR FINANCIAL CORPORATION 
 DATED AS OF
SEPTEMBER 1, 2006 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page
	ARTICLE I DEFINITIONS	  	1
		 	        SECTION 1.01	 	    Definitions	  	1
		
	ARTICLE II PURCHASE AND SALE OF RECEIVABLES	  	1
		 	        SECTION 2.01	 	    Purchase and Sale of Receivables	  	1
		 	        SECTION 2.02	 	    Purchase Price	  	2
		 	        SECTION 2.03	 	    The Closing	  	2
		
	ARTICLE III REPRESENTATIONS AND WARRANTIES	  	2
		 	        SECTION 3.01	 	    Representations and Warranties as to Receivables	  	2
		 	        SECTION 3.02	 	    Additional Representations and Warranties of NFC	  	9
		 	        SECTION 3.03	 	    Representations and Warranties of NFRRC	  	10
		 	        SECTION 3.04	 	    Representations and Warranties Regarding Titling Trust	  	11
		
	ARTICLE IV CONDITIONS	  	13
		 	        SECTION 4.01	 	    Conditions to Obligation of NFRRC	  	13
		 	        SECTION 4.02	 	    Conditions To Obligation of NFC	  	14
		
	ARTICLE V ADDITIONAL AGREEMENTS	  	15
		 	        SECTION 5.01	 	    Conflicts With Further Transfer and Servicing Agreements	  	15
		 	        SECTION 5.02	 	    Protection of Title.	  	15
		 	        SECTION 5.03	 	    Other Liens or Interests	  	15
		 	        SECTION 5.04	 	    Repurchase Events	  	16
		 	        SECTION 5.05	 	    Indemnification	  	16
		 	        SECTION 5.06	 	    Further Assignments	  	16
		 	        SECTION 5.07	 	    Pre-Closing Collections	  	17
		 	        SECTION 5.08	 	    Limitation on Transfer of International Purchase Obligations	  	17
		 	        SECTION 5.09	 	    Sale Treatment	  	18
		 	        SECTION 5.10	 	    No Petition; Waiver of Claims	  	18
		
	ARTICLE VI MISCELLANEOUS PROVISIONS	  	18
		 	        SECTION 6.01	 	    Amendment.	  	18
		 	        SECTION 6.02	 	    Survival	  	18
		 	        SECTION 6.03	 	    Notices	  	19
		 	        SECTION 6.04	 	    Governing Law	  	19
		 	        SECTION 6.05	 	    Waivers	  	19
		 	        SECTION 6.06	 	    Costs and Expenses	  	19
		 	        SECTION 6.07	 	    Confidential Information	  	19
		 	        SECTION 6.08	 	    Headings	  	19
		 	        SECTION 6.09	 	    Counterparts	  	19
		 	        SECTION 6.10	 	    Severability of Provisions	  	19
		 	        SECTION 6.11	 	    Further Assurances	  	19

  

 - i - 

							
		 	        SECTION 6.12	 	    No Third-Party Beneficiaries	  	20
		 	        SECTION 6.13	 	    Merger and Integration	  	20
		 	        SECTION 6.14	 	    No Petition Covenants	  	20

 EXHIBITS 
 Exhibit A - Form of PA Assignment 
  

 - ii - 

 PURCHASE AGREEMENT 
 PURCHASE AGREEMENT, dated as of September 1, 2006, between NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION, a Delaware corporation (“NFRRC”), and NAVISTAR FINANCIAL CORPORATION, a Delaware
corporation (“NFC”). 
 WHEREAS, NFRRC desires to purchase on the date hereof certain Retail Notes and Retail Leases
(collectively, the “Receivables”) and the Related Security with respect thereto; 
 WHEREAS, NFC is willing to sell the
Receivables and the Related Security with respect thereto to NFRRC; 
 WHEREAS, NFRRC may wish to sell or otherwise transfer the Receivables
and the Related Security with respect thereto, or interests therein, to a trust, corporation, partnership or other entity (any such transferee being the “Subsequent Transferee”); and 
 WHEREAS, the Subsequent Transferee may issue debentures, notes, participations, certificates of beneficial interest, partnership interests or other
interests or securities (collectively, any such issued interests or securities being “Securities”) to fund its acquisition of the Receivables and the Related Security with respect thereto. 
 NOW, THEREFORE, in consideration of the foregoing, the other good and valuable consideration and the mutual terms and covenants herein contained, the
parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 SECTION 1.01 Definitions. Capitalized terms used but not otherwise defined in
this Agreement shall have the respective meanings assigned them in Part I of Appendix A to the Pooling Agreement of even date herewith by and between Navistar Financial 2006-ARC Owner Trust and NFRRC, as it may be amended, supplemented or
modified from time to time. All references herein to “the Agreement” or “this Agreement” are to this Purchase Agreement as it may be amended, supplemented or modified from time to time, the exhibits hereto and the capitalized
terms used herein which are defined in such Appendix A, and all references herein to Articles, Sections and subsections are to Articles, Sections or subsections of this Agreement unless otherwise specified. The rules of construction set forth
in Part II of such Appendix A shall be applicable to this Agreement. 
 ARTICLE II 
 PURCHASE AND SALE OF RECEIVABLES 
 SECTION 2.01 Purchase and Sale of Receivables. Subject to the satisfaction of the conditions specified in Article IV, NFC agrees to sell, transfer, assign and otherwise convey to NFRRC, without recourse (except
as provided in Section 5.04), and NFRRC agrees to 

 purchase on the Closing Date (the “Purchase Date”) pursuant to a written assignment substantially in the
form of Exhibit A (the “PA Assignment”), all right, title and interest of NFC in, to and under: 
 (a) the Retail
Notes identified on the Schedule of Retail Notes to the PA Assignment delivered to NFRRC on the Purchase Date (the “Designated Retail Notes”) and the Related Retail Note Assets associated with the Designated Retail Notes;

 (b) the Series 2006-ARC Portfolio Interest and the beneficial interest in the Series 2006-ARC Portfolio Assets, including the Retail
Leases identified on the Schedule of Retail Leases to the PA Assignment delivered to NFRRC on the Closing Date (the “Designated Retail Leases” and together with the Designated Retail Notes, the “Designated
Receivables”) and the Related Titling Trust Assets associated with the Designated Retail Leases and the Series 2006-ARC Portfolio Certificate; and 
 (c) the rights, but not the obligations, of NFC under the Lease Purchase Agreement and the LPA Assignment with respect to the Designated Retail Leases. 
 SECTION 2.02 Purchase Price. In consideration for the purchase of any Designated Receivables and Related Security, NFRRC shall, on the Purchase
Date, pay to NFC an amount equal to the aggregate Starting Receivables Balance for such Designated Receivables (the “Purchase Price”) and NFC shall execute and deliver to NFRRC a PA Assignment with respect to such Designated
Receivables. On the Closing Date, a portion of the $442,875,102.15 Purchase Price payable on such date equal to $418,516,971.53 shall be paid to NFC in immediately available funds, and the balance of the Purchase Price ($24,358,130.62) shall be
recorded as an advance from NFC to NFRRC. 
 SECTION 2.03 The Closing. The sale and purchase of the Designated Receivables (the
“Closing”), shall take place at such a place, on a date and at a time mutually agreeable to NFC and NFRRC, and may occur simultaneously with the closing of any related transactions contemplated by the Further Transfer and Servicing
Agreements. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES 
 SECTION 3.01 Representations and Warranties as to Receivables. NFC makes the
following representations and warranties as to the Designated Receivables on which NFRRC relies in accepting the Designated Receivables. Such representations and warranties speak as of the Closing Date for such Designated Receivables and as of the
date of the related transfer of such Designated Receivables under the Further Transfer and Servicing Agreements, and shall survive the sale, transfer and assignment of such Designated Receivables to NFRRC and the subsequent assignment and transfer
thereof pursuant to the Further Transfer and Servicing Agreements: 
 (a) Characteristics of Receivables. Each Designated Receivable:

 (i) (A) in the case of a Retail Note, was originated or acquired by NFC to finance a retail purchase by a retail
customer or a refinancing (for reasons 
  

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 other than credit reasons, unless it was amended or restructured at least 12 months prior to the Cutoff
Date, it is not owed by an Obligor that is the subject of a bankruptcy or insolvency proceeding and since its amendment or restructuring it has not been greater than 60 days past due (measured from the date of any Scheduled Payment)) of a Financed
Vehicle or Financed Vehicles by a retail customer and (B) in the case of a Retail Lease, was originated or acquired by Harco Leasing, the Titling Trust or one or more of their Affiliates for the retail lease of one or more Financed Vehicles
(other than a release for credit reasons), and in each case, (A) and (B), was fully and properly executed by the parties thereto; 
 (ii) in the case of a Retail Note, has created or shall create a valid, binding and enforceable first priority security interest in favor of NFC in each Financed Vehicle related thereto, which security interest will
be validly assigned by NFC to NFRRC and will be assignable by NFRRC to a subsequent purchaser; 
 (iii) contains customary and
enforceable provisions such as to render the rights and remedies of the holder thereof adequate for realization against the collateral of the benefits of the security; 
 (iv) in the case of a Retail Lease, is a Finance Lease or a TRAC Lease and (A) in the case of a Finance Lease, provides for payments
(including purchase option payments) that fully amortize the Initial Capitalized Cost over its original term to maturity and yields implicit interest at a fixed annual percentage rate, with a purchase option price that does not exceed $1,000 and
(B) in the case of a TRAC Lease, provides for payments that fully amortize the Initial Capitalized Cost to an amount equal to the TRAC Payment, and, in the event of a termination of the TRAC Lease, the amount payable thereunder by the Obligor
is at least equal to the excess of the Outstanding Capitalized Cost of the related Financed Vehicle over the proceeds from the sale of such Financed Vehicle; 
 (v) in the case of a Retail Note, shall yield interest at the Annual Percentage Rate and comes from one of the following categories, which
differ in their provisions for the payment of principal and interest: Equal Payment Fully Amortizing Receivables, Equal Payment Skip Receivables, Equal Payment Balloon Receivables, Level Principal Fully Amortizing Receivables, Level Principal Skip
Receivables, Level Principal Balloon Receivables, or Other Receivables. “Equal Payment Fully Amortizing Receivables” are Receivables that provide for equal monthly payments that fully amortize the amount financed over its original term to
maturity. “Equal Payment Skip Receivables” are Receivables that provide for equal monthly payments in eleven or fewer months of each twelve-month period that fully amortize the amount financed over its original term to maturity.
“Equal Payment Balloon Receivables” are Receivables that provide for equal monthly payments except that a larger payment becomes due on the final maturity date for such Receivables. “Level Principal Fully Amortizing Receivables”
are Receivables that provide for monthly payments consisting of level principal amounts together with accrued and unpaid interest on the unpaid Receivables Balances. “Level Principal Skip Receivables” are Receivables that provide for
monthly payments in eleven or 
  

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 fewer months of each twelve-month period consisting of level principal amounts together with accrued and
unpaid interest on the unpaid Receivables Balances. “Level Principal Balloon Receivables” are Receivables that provide for monthly payments consisting of level principal amounts together with accrued and unpaid interest on the unpaid
Receivables Balances, except that a larger principal payment becomes due on the final maturity date for such Receivables. “Other Receivables” are Receivables not described above, including Receivables that provide for level monthly
payments in eleven or fewer months of each twelve-month period that amortize a portion of the amount financed over its original term to maturity with a larger payment that becomes due on the final maturity date for such Receivables; 
 (vi) in the case of a Retail Note, immediately prior to the transfer and assignment thereof to NFRRC by NFC pursuant to this Agreement,
NFC had good title to it, free of any Lien (except for Permitted Liens and Liens that will be released as of such transfer), and all right, title and interest in it has been validly sold by NFC to NFRRC pursuant to this Agreement, and NFRRC has good
title to it, free of any Lien (except for Permitted Liens), and the transfer of the Retail Note to NFRRC has been perfected under the UCC; 
 (vii) in the case of a Retail Lease, (A) such Retail Lease is owned of record by the Titling Trust, (B) immediately prior to the allocation of such Retail Lease to the Series 2006-ARC Portfolio Interest,
Harco Leasing was the beneficial owner of such Retail Lease free of any Lien (except for Permitted Liens and Liens that will be released as of such transfer), (C) all of Harco Leasing’s right, title and interest in such Retail Lease has
been validly sold by Harco Leasing to NFC pursuant to the Lease Purchase Agreement, (D) upon execution and delivery of this Agreement and the PA Assignment by NFC and satisfaction of the conditions set forth in Section 4.02 hereof
relating to such Retail Lease, all right, title and interest in such Retail Lease (other than the interest therein of the Titling Trust) shall have been validly sold by NFC to NFRRC pursuant to this Agreement and NFRRC shall be the owner of all
right, title and interest in such Retail Lease (other than the interest of the Titling Trust) free of any Lien (except for Permitted Liens) and its transfer to NFRRC has been perfected under the UCC; 
 (viii) in the case of a Retail Lease, each Financed Vehicle related thereto is owned by the Titling Trust (or its nominee) as record owner
and upon issuance of the Series 2006-ARC Portfolio Certificate, NFRRC will be the beneficial owner through its ownership of the Series 2006-ARC Portfolio Interest of such Financed Vehicle and any certificate of title or other evidence of ownership
of such Financed Vehicle issued by a registrar of titles in the respective jurisdiction in which such Financed Vehicle is registered, relating to each such vehicle is registered in the name of the Titling Trust (or its nominee) (or a properly
completed application for such title has been or will be submitted to the appropriate titling authority) with a notation of Lien thereon in favor of the Collateral Agent; 
 (ix) in the case of a Retail Lease, as of the Purchase Date, such Retail Lease has been allocated to the 2006-ARC Portfolio Interest; and

  

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 (x) such Designated Receivable was originated or acquired in the ordinary course of
business in accordance with NFC’s underwriting standards. 
 (b) Schedules of Retail Leases and Retail Notes. The information set
forth in the Schedule of Retail Leases and the Schedule of Retail Notes relating to such Designated Receivables is true and correct in all material respects. 
 (c) Compliance With Law. All requirements of applicable federal, state and local laws, and regulations thereunder, including the Equal Credit Opportunity Act, the Federal Reserve Board’s Regulation
“B”, the Servicemembers Civil Relief Act, and any applicable bulk sales or bulk transfer law and other equal credit opportunity and disclosure laws, in respect of any of the Designated Receivables, have been complied with in all material
respects, and each such Designated Receivable and the sale or lease of the Financed Vehicle or Financed Vehicles evidenced thereby complied at the time it was originated or made and now complies in all material respects with all legal requirements
of the jurisdiction in which it was originated or made. 
 (d) Binding Obligation. Each Designated Receivable represents the genuine,
legal, valid and binding payment obligation in writing of the Obligor thereon, enforceable against the Obligor by the holder thereof in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization or similar laws affecting the enforcement of creditors’ rights in general and by equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 
 (e) Security Interest in Financed Vehicle. In the case of a Retail Note, immediately prior to the sale, transfer and assignment thereof pursuant
hereto, each Designated Retail Note was secured by a validly perfected first priority security interest in the related Financed Vehicle or, in the event any such Receivable was secured by more than one Financed Vehicle, in each related Financed
Vehicle, each in favor of NFC as secured party, or all necessary and appropriate action had been commenced that will result, within 100 days following the Cutoff Date, in the valid perfection of a first priority security interest in each related
Financed Vehicle in favor of NFC as secured party in each case (except for first priority security interests which may exist in any accessions not financed by NFC) and, in the case of a Retail Lease, the Collateral Agent (or its nominee) has a first
priority perfected security interest in such Retail Lease and has or upon completion of the titling process with the appropriate titling authority will have a first priority perfected security interest in the related Financed Vehicle which will be
validly assigned by NFC to NFRRC and is further assignable by NFRRC pursuant to the Further Transfer and Servicing Agreements. 
 (f)
Receivables In Force. No Designated Receivable has been satisfied, subordinated or rescinded, and, in the case of the Designated Retail Notes, no Financed Vehicle securing any Designated Receivable has been released from the Lien of the
related Receivable in whole or in part. 
 (g) No Waiver. Since the Cutoff Date, no provision of any Designated Receivable has been
waived, altered or modified in any respect. 
  

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 (h) No Amendments. Since the Cutoff Date, no Designated Receivable has been amended or otherwise
modified such that the total number of the Obligor’s Scheduled Payments is increased or the Starting Receivable Balance thereof is increased, and prior to the Cutoff Date, no Designated Receivable has been amended or restructured for credit
reasons, unless it was amended or restructured at least 12 months prior to the Cutoff Date, it is not owed by an Obligor that is the subject of a bankruptcy or insolvency proceeding and since its amendment or restructuring it has not been greater
than 60 days past due (measured from the date of any Scheduled Payment). 
 (i) No Defenses. No right of rescission, setoff,
counterclaim or defense has been asserted or threatened with respect to any Designated Receivable. 
 (j) No Liens. There are, to
NFC’s knowledge, no Liens or claims that have been filed for work, labor or materials affecting any Financed Vehicle relating to any Designated Receivable that are or may be prior to, or equal or coordinate with, the security interest in each
Financed Vehicle granted by the Designated Receivable or the Collateral Agreement (except for Permitted Liens). 
 (k) No Default.
There has been no default, breach, violation or event permitting acceleration under the terms of any Designated Receivable, and no event has occurred and is continuing that with notice or the lapse of time would constitute a default, breach,
violation or event permitting acceleration under the terms of any Designated Receivable, and NFC or Harco Leasing, as the case may be, has not waived any of the foregoing, in each case except for payments on any Designated Receivables which are not
more than 60 days past due (measured from the date of any Scheduled Payment) as of the Cutoff Date, or with respect to any Eligible Restructured Receivable, no such event has occurred since the date of its amendment or restructuring. 
 (l) Insurance. Each Obligor on a Designated Receivable is required to maintain a physical damage insurance policy for each Financed Vehicle of the
type that NFC requires in accordance with its customary underwriting standards for the purchase or lease of truck, bus and trailer receivables, unless NFC has in accordance with its customary procedures permitted an Obligor to self-insure such
Financed Vehicle. 
 (m) Maintenance. In the case of a Retail Lease, such Obligor is required to maintain the related Financed Vehicle
in good repair and is obligated to pay the cost of all necessary repairs, maintenance and replacements with respect to such Financed Vehicle and all costs, expenses, fees and charges incurred in the use and operation of such Financed Vehicle and all
taxes on or relating to such Financed Vehicle. 
 (n) Good Title. On the date hereof, NFC has good title to the Series 2006-ARC
Portfolio Interest and the Series 2006-ARC Portfolio Certificate, free and clear of all Liens, (other than Permitted Liens). On the date hereof, upon execution and delivery of this Agreement and the PA Assignment by NFC and the satisfaction of the
conditions set forth in Section 4.02 hereof, good and valid title to the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate will be validly and effectively conveyed to, and vested in, NFRRC, free and clear
of all Liens, other than Permitted Liens, and the transfer of the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate by NFC to NFRRC has been perfected. 
  

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 (o) Lawful Assignment. No Designated Receivable was originated in, or is subject to the laws of,
any jurisdiction the laws of which would make unlawful the sale, transfer and assignment of such Designated Receivable under the Lease Purchase Agreement, this Agreement or any Further Transfer and Servicing Agreements. 
 (p) All Filings Made. All filings necessary under the UCC in any jurisdiction to give NFRRC a first priority perfected security or ownership
interest in the Designated Receivables and the Related Security (to the extent it constitutes Code Collateral) shall have been made, and the Designated Receivables constitute Code Collateral. 
 (q) One Original. There is only one original executed copy of each Designated Receivable. 
 (r) No Documents or Instruments. No Designated Receivable, or constituent part thereof, constitutes a “negotiable instrument” or
“negotiable document of title” (as such terms are used in the UCC). 
 (s) Maturity of Receivables. Each Designated
Receivable has an original term to maturity of not less than 6 months and not greater than 84 months and, as of the Cutoff Date, had a remaining term to maturity of not less than 6 months and not greater than 84 months. 
 (t) Scheduled Payments; Delinquency. As of the Cutoff Date, each Designated Receivable being purchased on the Closing Date had a first scheduled
payment that was due on or before July 31, 2006; as of the Cutoff Date, no Designated Receivable had or will have a payment that was more than 60 days past due, or with respect to any Eligible Restructured Receivable, has not had a payment more
than 60 days past due since the date of its amendment or restructuring; and as of the Purchase Date, no Designated Receivable had or will have a final scheduled payment that is due later than June 30, 2013. 
 (u) Vehicles. Each Financed Vehicle to which a Designated Receivable relates was a new or used medium or heavy duty truck, truck chassis, bus or
trailer at the time the related Obligor executed the Retail Note or Retail Lease. 
 (v) Origin. Each Designated Receivable was
originated in the United States and is payable in U.S. Dollars. 
 (w) Starting Receivable Balance. The Starting Receivable Balance of
each Designated Receivable as of its Cutoff Date shall be $1,000 or more. 
 (x) Concentration. (i) The aggregate Receivable
Balance of all Receivables from a single Obligor does not exceed 2.00% of the aggregate Receivable Balance of all Receivables in the Trust, (ii) the aggregate Starting Receivable Balance of all Receivables having a remaining term in excess of
72 months as of the Cutoff Date does not exceed 10.00% of the Aggregate Starting Receivables Balance, (iii) the weighted average remaining maturity of the Receivables in the Trust is not greater than 58 months, (iv) the aggregate Starting
Receivables Balance of all 
  

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 Receivables not originated by NFC or one of its Affiliates does not exceed 3.00% of the Aggregate Starting Receivables
Balance, (v) the aggregate Starting Receivables Balance for all Receivables that are Eligible Restructured Receivables does not exceed 5.00% of the Aggregate Starting Receivables Balance, (vi) the aggregate Starting Receivables Balance of
all Receivables secured by used vehicles does not exceed 22.50% of the Aggregate Starting Receivables Balance, (vii) the aggregate Starting Receivables Balance of all Receivables owed by Non-Fleet Obligors does not exceed 23.00% of the
Aggregate Starting Receivables Balance, (viii) the aggregate Starting Receivable Balance of the Retail Leases in the Trust does not exceed 10.00% of the Aggregate Starting Receivables Balance and (ix) the Designated Receivables have a
Weighted Average Coupon of not less than 8.00%. 
 (y) Selection Criteria. The Designated Receivables were selected on a random basis
from all Receivables satisfying the selection criteria described herein, and no selection procedures believed to be adverse to NFRRC or to holders of the Securities issued under the Further Transfer and Servicing Agreements were utilized in
selecting the Designated Receivables from those Receivables of NFC, Truck Retail Instalment Paper Corp. and Harco Leasing Company, Inc., its wholly owned subsidiaries, which meet the selection criteria under this Agreement. 
 (z) Minimum APR. As of the Cutoff Date, each Receivable has an Annual Percentage Rate of not less than 5.00%. 
 (aa) No Government Contracts. No Obligor under any of the Designated Receivables is a governmental authority of the United States or any state or
political subdivision thereof. 
 (bb) Material Records. NFC has marked its computer records relating to each Designated Receivable to
show that such Designated Receivable has been sold to NFRRC by NFC and transferred and assigned by NFRRC to the Issuer in accordance with the terms of the Pooling Agreement and pledged by the Issuer to the Indenture Trustee in accordance with the
terms of the Indenture. 
 (cc) No Fraud or Misrepresentation. To the knowledge of NFC, each Designated Receivable that was originated
by a Dealer and was sold by the Dealer to NFC was so originated and sold without fraud or misrepresentation on the part of such Dealer, in either case. 
 (dd) No Impairment. NFC has not conveyed any right to any Person that would result in such Person having a right to payments due under a Designated Receivable or otherwise impaired the rights of NFRRC in any
Designated Receivable or the proceeds thereof. 
 (ee) Servicing. Each Designated Receivable has been serviced in conformity with all
applicable laws, rules and regulation and in conformity with the Servicer’s policies and procedures, in each case, in all material respects. 
 (ff) No Consent. No notice or consent from any Obligor is necessary to effect the acquisition of the Designated Receivables by NFRRC or the Issuer or the pledge of the Designated Receivables by the Issuer to the Indenture Trustee

  

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 SECTION 3.02 Additional Representations and Warranties of NFC. NFC hereby represents and warrants
to NFRRC as of the Purchase Date and as of the Closing Date under the Further Transfer and Servicing Agreements, in its capacity as the seller of the Receivables hereunder, that: 
 (a) Organization and Good Standing. NFC has been duly organized and is validly existing as a corporation in good standing under the laws of the
State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is presently conducted, and had at all relevant times, and now has, power, authority and legal
right to acquire and own the Receivables. 
 (b) Due Qualification. NFC is duly qualified to do business as a foreign corporation in
good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business requires or shall require such qualification. 
 (c) Power and Authority. NFC has the power and authority to execute and deliver this Agreement and to carry out its terms; NFC has full power and
authority to sell and assign the Designated Receivables and the Related Security to NFRRC, has duly authorized such sale and assignment to NFRRC by all necessary corporate action; and the execution, delivery and performance of this Agreement have
been duly authorized by NFC by all necessary corporate action. 
 (d) Valid Sale; Binding Obligation. This Agreement, together with
the PA Assignment, when duly executed and delivered, shall (upon satisfaction of the conditions set forth in Section 4.02(b) hereof relating to the related Designated Receivables) constitute a valid sale, transfer and assignment of the
Designated Receivables and Related Security, enforceable against creditors of and purchasers from NFC; and this Agreement, together with the PA Assignment, when duly executed and delivered, shall (upon satisfaction of the conditions set forth in
Section 4.02(b) hereof relating to the Designated Receivables) constitute a legal, valid and binding obligation of NFC enforceable against NFC in accordance with its respective terms, except as enforceability may be limited by applicable
bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at
law. 
 (e) No Violation. The consummation of the transactions contemplated by this Agreement and the PA Assignment, and the
fulfillment of the terms of this Agreement and the PA Assignment shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of
incorporation or by-laws of NFC, or any indenture, agreement, mortgage, deed of trust or other instrument to which NFC is a party or by which it is bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to the
terms of any such indenture, agreement, mortgage, deed of trust or other instrument (other than this Agreement, the PA Assignment or any Further Transfer and Servicing Agreement), or violate any law or, to NFC’s knowledge, any order, rule or
regulation applicable to NFC of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over NFC or any of its properties. 
  

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 (f) No Proceedings. There are no proceedings or, to NFC’s knowledge, investigations pending
or, to NFC’s knowledge, threatened, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over NFC or its properties (i) asserting the invalidity of this Agreement or
the PA Assignment, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement or the PA Assignment, or (iii) seeking any determination or ruling that might materially and adversely affect the
performance by NFC of its obligations under, or the validity or enforceability of, this Agreement or the PA Assignment. 
 (g) No
Consent. No permit, consent, approval or authorization of, or declaration to or filing with, any governmental authority is required in connection with the execution, delivery and performance by NFC of this Agreement or the PA Assignment or the
consummation by NFC of the transactions contemplated hereby or thereby except as expressly contemplated herein or therein. 
 (h)
ERISA. No notice of a Lien arising under Title I or Title IV of ERISA has been filed under Section 6323 (a) of the Code (or any successor provision) against, or otherwise affecting the assets NFC. 
 (i) Solvency. NFC is, and after giving effect to the transactions contemplated to occur on such date will be, solvent. 
 (j) Investment Company Act. NFC is not, and is not controlled by, an “investment company” within the meaning of, and is not required to
register as an “investment company” under, the Investment Company Act. 
 SECTION 3.03 Representations and Warranties of
NFRRC. NFRRC hereby represents and warrants to NFC as of the Purchase Date: 
 (a) Organization and Good Standing. NFRRC has been
duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is
presently conducted, and had at all relevant times, and now has, power, authority and legal right to acquire and own the Designated Receivables. 
 (b) Due Qualification. NFRRC is duly qualified to do business as a foreign corporation in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the
conduct of its business requires such qualification. 
 (c) Power and Authority. NFRRC has the power and authority to execute and
deliver this Agreement and to carry out its terms and the execution, delivery and performance of this Agreement have been duly authorized by NFRRC by all necessary corporate action. 
  

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 (d) No Violation. The consummation by NFRRC of the transactions contemplated by this Agreement and
the fulfillment of the terms of this Agreement shall not conflict with, result in any breach of any of the terms and provisions of or constitute (with or without notice or lapse of time) a default under, the certificate of incorporation or by-laws
of NFRRC, or any indenture, agreement, mortgage, deed of trust or other instrument to which NFRRC is a party or by which it is bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement or other instrument (other than this Agreement, the PA Assignment or any Further Transfer and Servicing Agreement), or violate any law or, to NFRRC’s knowledge, any order, rule or regulation applicable to NFRRC of any court
or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over NFRRC or any of its properties. 
 (e) No Proceedings. There are no proceedings or, to NFRRC’s knowledge, investigations pending or, to NFRRC’s knowledge, threatened, before any court, regulatory body, administrative agency or other
tribunal or governmental instrumentality having jurisdiction over NFRRC or its properties (i) asserting the invalidity of this Agreement or the PA Assignment, (ii) seeking to prevent the consummation of any of the transactions contemplated
by this Agreement or (iii) seeking any determination or ruling that might materially and adversely affect the performance by NFRRC of its obligations under, or the validity or enforceability of, this Agreement or the PA Assignment. 

(f) Binding Obligation. This Agreement shall constitute a legal, valid and binding obligation of NFRRC enforceable against NFRRC in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of
whether such enforceability is considered in a proceeding in equity or at law. 
 (g) No Consent. No permit, consent, approval or
authorization of, or declaration to or filing with, any governmental authority is required in connection with the execution, delivery and performance by NFRRC of this Agreement, or the consummation by NFRRC of the transactions contemplated hereby
except as expressly contemplated herein. 
 SECTION 3.04 Representations and Warranties Regarding Titling Trust. NFC makes the
following representations and warranties as to the Titling Trust on which NFRRC relies in accepting the Designated Receivables. Such representations and warranties speak as of the Purchase Date for the Designated Receivables, and as of the date of
the related transfer of such Designated Receivables under the Further Transfer and Servicing Agreements, and shall survive the sale, transfer and assignment of such Designated Receivables to NFRRC and the subsequent assignment and transfer thereof
pursuant to the Further Transfer and Servicing Agreements: 
 (a) Organization and Good Standing. The Titling Trust is a statutory
business trust duly formed, validly existing and in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is
presently conducted, and had at all relevant times, and now has, power, authority and legal right to acquire and own the Retail Leases. 
  

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 (b) Due Qualification. The Titling Trust is duly qualified to do business as a foreign business
trust and in good standing under the laws of each jurisdiction where the character of its property, the nature of its business or the performance of its obligations make such qualification necessary and has all powers and all governmental licenses,
authorizations, consents and approvals required to carry on its business as now conducted and for purposes of the transactions contemplated by the Basic Documents, except to the extent that the failure to have any such governmental licenses,
authorizations, consents or approvals would not, in the aggregate, have a Material Adverse Effect with respect to the Titling Trust. 
 (c)
Power and Authority. The Titling Trust has the power and authority to execute and deliver the Basic Documents to which it is a party and to perform its obligations hereunder and the execution, delivery and performance of the Basic Documents
to which it is a party have been duly authorized by the Titling Trust. 
 (d) Valid and Binding. Each of the Basic Documents to which
the Titling Trust is a party has been duly executed and delivered by or on behalf of the Titling Trust and constitutes a legal, valid and binding obligation of the Titling Trust enforceable against the Titling Trust in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such
enforceability is considered in a proceeding in equity or at law. 
 (e) No Violation. The consummation of the transactions
contemplated by this Agreement, and the other Basic Documents, and the fulfillment of the terms thereof shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a
default under, the Titling Trust Agreement, or any indenture, agreement, mortgage, deed of trust or other instrument to which the Titling Trust is a party or by which it is bound, or result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument (other than this Agreement or any other Basic Document), or violate any law or, to NFC’s knowledge, any order, rule or regulation
applicable to the Titling Trust of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Titling Trust or any of its properties. 
 (f) No Proceedings. There are no proceedings or, to NFC’s knowledge, investigations pending or, to NFC’s knowledge, threatened, before
any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Titling Trust or its properties (i) asserting the invalidity of any Basic Document to which the Titling Trust is a
party, (ii) seeking to prevent the consummation of any of the transactions contemplated by any Basic Document to which the Titling Trust is a party, or (iii) seeking any determination or ruling that might materially and adversely affect
the performance by the Titling Trust of its obligations under, or the validity or enforceability of, this Agreement, the PA Assignment or any Basic Document to which the Titling Trust is a party. 
  

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 (g) No Consent. No permit, consent, approval or authorization of, or declaration to or filing
with, any governmental authority is required in connection with the execution, delivery and performance by the Titling Trust of any Basic Document to which the Titling Trust is a party, or the consummation by the Titling Trust of the transactions
contemplated thereby except as expressly contemplated herein or therein. 
 (h) Taxes. The Titling Trust has filed or caused to be
filed all tax returns which are required to be filed by the Titling Trust (with respect to itself) and has paid all taxes shown to be due and payable on said returns or on any assessments made against it or any of its property by any Governmental
Authority (other than any amount the validity of which is being contested in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of the Titling Trust). No notice of any
Lien in respect of unpaid taxes or assessments (other than a Permitted Lien) has been filed by any taxing authority against, or otherwise affecting the assets of, the Titling Trust and remains in effect. The Titling Trust has paid all fees and
expenses required to be paid by it in connection with the conduct of its business, the maintenance of its existence and its qualification as a foreign business trust. 
 (i) ERISA. No notice of a Lien arising under Title I or IV of ERISA has been filed under Section 6323 (a) of the Code (or any successor provision) against, or otherwise affecting the assets of the
Titling Trust. 
 (j) Investment Company Act. The Titling Trust is not, and is not controlled by, an “investment company”
within the meaning of, and is not required to register as an “investment company” under, the Investment Company Act. 
 (k)
Series 2006-ARC Portfolio Certificate. The Series 2006-ARC Portfolio Certificate has been duly executed and delivered by the General Interest Trustee in accordance with the Titling Trust Agreement, has been duly issued in accordance with
the Titling Trust Agreement and is entitled to the benefits afforded by the Titling Trust Agreement. 
 ARTICLE IV 
 CONDITIONS 
 SECTION 4.01 Conditions
to Obligation of NFRRC. The obligation of NFRRC to purchase Designated Receivables and the Related Security hereunder on the Purchase Date is subject to the satisfaction of the following conditions: 
 (a) Representations and Warranties True. The representations and warranties of NFC in Section 3.01 regarding such Designated
Receivables and the Related Security being transferred on the Purchase Date, and the representations and warranties of NFC in Sections 3.02 and 3.04, shall be true and correct as of the Purchase Date (or if specified as applying to
some other date, as of such date), and NFC shall have performed all obligations to be performed by it hereunder on or prior to the Purchase Date. 
 (b) No Repurchase Event. No Repurchase Event (as defined in Section 5.04 below) shall have occurred on or prior to the Purchase Date with respect to any of the Designated Receivables. 
  

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 (c) Computer Files Marked. NFC shall, at its own expense, on or prior to the Purchase Date,
(i) indicate in its computer files created in connection with the Designated Receivables that the Designated Receivables have been sold to NFRRC pursuant to this Agreement and the PA Assignment by NFC and (ii) deliver to NFRRC the
Composite Schedule of Receivables certified by an officer of NFC to be true, correct and complete. 
 (d) Documents to Be Delivered by
NFC. 
 (i) The PA Assignment. On the Purchase Date, NFC shall execute and deliver to NFRRC the PA Assignment of
the Designated Receivables and the Related Security. 
 (ii) Portfolio Certificate. On the Closing Date, NFC shall
deliver the Series 2006-ARC Portfolio Certificate to or at the direction of NFRRC. 
 (iii) Evidence of UCC Filing. On
or prior to the Purchase Date, NFC shall record and file, at its own expense, a UCC-1 financing statement in each jurisdiction in which required by applicable law, naming NFC as seller or debtor, naming NFRRC as purchaser or secured party, naming
the Designated Receivables and Related Security as collateral, meeting the requirements of the laws of each such jurisdiction and in such manner as is necessary to perfect under the UCC the sale, transfer, assignment and conveyance of the Designated
Receivables and the Related Security (to the extent it constitutes Code Collateral) to NFRRC. NFC shall deliver a file-stamped copy, or other evidence satisfactory to NFRRC of such filing, to NFRRC on or prior to the Purchase Date. 
 (iv) Other Documents. On the Purchase Date, NFC shall provide such other documents as NFRRC may reasonably request. 
 (e) [Reserved]. 
 (f) Other
Transactions. The related transactions contemplated by the Further Transfer and Servicing Agreements shall be consummated on or prior to the Purchase Date (and all conditions precedent thereto shall be satisfied) to the extent that such
transactions are intended to be substantially contemporaneous with the transactions hereunder. 
 SECTION 4.02 Conditions To Obligation of
NFC. The obligation of NFC to sell the Designated Receivables to NFRRC hereunder on the Purchase Date is subject to the satisfaction of the following conditions: 
 (a) Representations and Warranties True. The representations and warranties of NFRRC hereunder shall be true and correct as of the Purchase Date, and NFRRC shall have performed all obligations to be performed
by it hereunder on or prior to the Purchase Date. 
 (b) Purchase Price. On the Purchase Date, NFRRC shall pay to NFC the Purchase
Price, payable on such date as provided in Section 2.02 of this Agreement. 
  

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 ARTICLE V 
 ADDITIONAL AGREEMENTS 
 NFC agrees with NFRRC as follows: 
 SECTION 5.01 Conflicts With Further Transfer and Servicing Agreements. To the extent that any provision of Sections 5.02 through 5.04
of this Agreement conflicts with any provision of the Further Transfer and Servicing Agreements, the Further Transfer and Servicing Agreements shall govern. 
 SECTION 5.02 Protection of Title. 
 (a) Filings. NFC shall prepare and file such financing
statements and cause to be prepared and filed such continuation and other statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of NFRRC under this Agreement in the
Designated Receivables and the Related Security, the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate and in the proceeds thereof and hereby authorizes NFRRC to file any such financing statements or continuation
statements relating to all or any part thereof; provided, however, that, with respect to a Retail Lease, NFC shall not be obligated to transfer the title to any Financed Vehicle. NFC shall deliver (or cause to be delivered) to NFRRC
file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing. 
 (b)
Name Change. NFC shall not change its name, identity or corporate structure in any manner that would, could or might make any financing statement or continuation statement filed by NFC in accordance with Section 5.02(a) seriously
misleading within the meaning of Section 9-506 of the UCC, unless it shall have given NFRRC at least 60 days prior written notice thereof and shall file such financing statements or amendments as may be necessary to continue the perfection of
NFRRC’s security interest in the Designated Receivables and the Related Security. 
 (c) Jurisdiction of Formation; Maintenance of
Offices. NFC shall give NFRRC at least 60 days prior written notice of any change in its jurisdiction of formation and shall file such financing statements or amendments as may be necessary to continue the perfection of NFRRC’s security
interest in the Designated Receivables and the Related Security. NFC shall at all times maintain each office from which it services Designated Receivables and its jurisdiction of formation within the United States of America. 
 SECTION 5.03 Other Liens or Interests. Except for the conveyances hereunder and as contemplated by the Further Transfer and Servicing Agreements,
NFC shall not sell, pledge, assign or transfer the Designated Receivables or the Related Security, the Series 2006-ARC Portfolio Interest or the Series 2006-ARC Portfolio Certificate to any other Person, or grant, create, incur, assume or suffer to
exist any Lien (except any Permitted Lien) on any interest therein, and NFC shall defend the right, title and interest of NFRRC in, to and under the Designated Receivables and Related Security, the Series 2006-ARC Portfolio Interest and the Series
2006-ARC Portfolio Certificate against all claims of third parties claiming through or under NFC. 
  

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 SECTION 5.04 Repurchase Events. By its execution of the Further Transfer and Servicing Agreements
to which it is a party, NFC shall be deemed to acknowledge the assignment by NFRRC of such of its right, title and interest in, to and under this Agreement to the Subsequent Transferee as shall be provided in the Further Transfer and Servicing
Agreements. NFC hereby covenants and agrees with NFRRC for the benefit of NFRRC and the Interested Parties, that in the event of (i) a breach of any of NFC’s representations and warranties contained in Section 3.01 hereof with
respect to any Designated Receivable (except that NFC’s knowledge with respect to a breach of the representations and warranties contained in Section 3.01(bb) hereof shall be disregarded for purposes of NFC’s repurchase
obligations pursuant this Section 5.04) or (ii) a breach by NFC of Section 5.03 hereof with respect to any Designated Receivable, the Series 2006-ARC Portfolio Interest or the Series 2006-ARC Portfolio Certificate which
breach has a material adverse effect on NFRRC’s interest in such Designated Receivable, the Series 2006-ARC Portfolio Interest or the Series 2006-ARC Portfolio Certificate (each a “Repurchase Event”) unless, in either case,
such breach shall have been cured in all material respects as of the second Accounting Date following NFC’s discovery or its receipt of notice of breach (or, at NFC’s election, the first Accounting Date following such discovery), NFC will
repurchase the Designated Receivable (or in the case of the Series 2006-ARC Portfolio Interest or the Series 2006-ARC Portfolio Certificate, such Designated Retail Leases which are then included in the Series 2006-ARC Portfolio Interest or Series
2006-ARC Portfolio Certificate) from the Subsequent Transferee (if the Subsequent Transferee is then the Owner of such Designated Receivable) on the related Distribution Date for an amount equal to the Warranty Payment, without further notice from
NFRRC hereunder. Upon the occurrence of a Repurchase Event with respect to a Designated Receivable for which NFRRC is the Owner, NFC agrees to repurchase such Designated Receivable from NFRRC for an amount and upon the same terms as NFC would be
obligated to repurchase such Designated Receivable from the Subsequent Transferee if the Subsequent Transferee was then the Owner thereof, and upon payment of such amount, NFC shall have such rights with respect to such Designated Receivable as if
NFC had purchased such Designated Receivable from the Subsequent Transferee as the Owner thereof. It is understood and agreed that the obligation of NFC to repurchase any Designated Receivable as to which a breach has occurred and is continuing
shall, if such obligation is fulfilled, constitute the sole remedy against NFC for such breach available to NFRRC or any Interested Party. 
 SECTION 5.05 Indemnification. NFC shall indemnify NFRRC for any liability as a result of the failure of a Designated Receivable to be originated in compliance with all requirements of law and for any breach of any of its
representations and warranties contained herein. This indemnity obligation shall be in addition to any obligation that NFC may otherwise have. 
 SECTION 5.06 Further Assignments. NFC acknowledges that NFRRC shall, pursuant to the Further Transfer and Servicing Agreements, sell the Series 2006-ARC Portfolio Interest, the Series 2006-ARC Portfolio Certificate, the Designated
Receivables and the Related Security to the Subsequent Transferee and assign its rights hereunder to the Subsequent Transferee, subject to the terms and conditions of the Further Transfer and Servicing Agreements, and that the Subsequent Transferee
may in turn further pledge, assign or transfer its rights in the Series 2006-ARC Portfolio Interest, the Series 2006-ARC Portfolio Certificate, the Designated Receivables and the Related Security and this Agreement. NFC further acknowledges that
NFRRC may assign its rights under the Servicing Agreement to the Subsequent Transferee. 
  

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 SECTION 5.07 Pre-Closing Collections. Within two Business Days after the Purchase Date, NFC shall
transfer to the account or accounts designated by NFRRC (or by the Subsequent Transferee under the Further Transfer and Servicing Agreements) all collections (from whatever source) on or with respect to the Designated Receivables and the Related
Security conveyed by NFC to NFRRC on the Purchase Date pursuant to Section 2.01. 
 SECTION 5.08 Limitation on Transfer of
International Purchase Obligations. NFRRC acknowledges and agrees that the rights pursuant to the International Purchase Obligations are personal to NFC, and only the proceeds of such rights have been assigned to NFRRC. NFRRC is not and is not
intended to be a third-party beneficiary of such rights and, accordingly, such rights will not be exercisable by, enforceable by or for the benefit of, or preserved for the benefit of, NFRRC, the Issuer, the Owner Trustee or the Indenture Trustee.

  

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 SECTION 5.09 Sale Treatment. NFC intends to treat each transfer and assignment described herein as
a sale for accounting and tax purposes. 
 SECTION 5.10 No Petition; Waiver of Claims. 
 (a) Notwithstanding any prior termination of the Series 2006-ARC Portfolio Supplement, NFRRC covenants and agrees that it shall not, prior to the date
which is one year and a day after which all obligations under each Permitted Financing have been paid in full, acquiesce, petition or otherwise invoke, or join any other Person in acquiescing, petitioning or otherwise invoking, against the Titling
Trust or any Special Purpose Entity, any proceeding in court or with any governmental authority for the purpose of (i) commencing or sustaining a case against the Titling Trust or such Special Purpose Entity under any federal or state
bankruptcy, insolvency or similar law, or (ii) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of all or any substantial part of the respective property of the Titling Trust or such
Special Purpose Entity, or (iii) ordering the winding up or liquidation of the affairs of the Titling Trust or such Special Purpose Entity. 
 (b) Except as otherwise provided in the Titling Trust Agreement, NFRRC hereby releases all Claims to the Titling Trust Assets allocated to the General Interest and to each Portfolio Interest other than the Series 2006-ARC Portfolio Interest
(other than Claims to other Portfolio Interests obtained under other purchase agreements) whether then or thereafter created and, in the event that such release is not given effect, to fully subordinate all Claims it may be deemed to have against
the Titling Trust Assets allocated to the General Interest and each Portfolio Interest other than the Series 2006-ARC Portfolio Interest (other than Claims to other Portfolio Interests obtained under other purchase agreements) whether then or
thereafter created. 
 ARTICLE VI 
 MISCELLANEOUS PROVISIONS 
 SECTION 6.01 Amendment. This Agreement may be amended from time to time (subject to any
expressly applicable amendment provision of the Further Transfer and Servicing Agreements) by a written amendment duly executed and delivered by NFC and NFRRC with the consent of the Funding Agent; provided, however, that this Agreement may not be
amended unless such amendment is in accordance with the provisions of Section 5.01 of the Pooling Agreement as if such Section 5.01 were contained herein and were applicable to this Agreement; provided, further, however, that
this Agreement may not be amended unless each of S&P and Moody’s confirms in writing to the Conduit Investors that such amendment shall not result in a reduction or withdrawal of its rating on the Commercial Paper issued by such Conduit
Investors. 
 (b) Notwithstanding any other provision of this Agreement, if the consent of the Swap Counterparty is required pursuant to the
Swap Counterparty Rights Agreement to amend this Agreement, any such purported amendment shall be null and void ab initio unless the Swap Counterparty consents in writing to such amendment. 
 SECTION 6.02 Survival. The representations, warranties and covenants of NFC set forth in Article III and Article V of this Agreement
shall remain in full force and effect and shall survive the Purchase Date and the Closing under the Further Transfer and Servicing Agreements. 
  

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 SECTION 6.03 Notices. All demands, notices and communications under this Agreement shall be
delivered as specified in Appendix B to the Pooling Agreement. 
 SECTION 6.04 Governing Law. All questions concerning
the construction, validity and interpretation of this Agreement and the PA Assignment shall be governed by and construed and enforced in accordance with the internal laws of the State of Illinois, without giving effect to any choice of law or
conflict provision or rule (whether of the State of Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois. 
 SECTION 6.05 Waivers. No failure or delay on the part of NFRRC in exercising any power, right or remedy under this Agreement or the PA Assignment
shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy. 
 SECTION 6.06 Costs and Expenses. NFC agrees to pay all reasonable out-of-pocket costs and expenses of NFRRC, including fees and expenses of
counsel, in connection with the perfection as against third parties of NFRRC’s right, title and interest in, to and under the Designated Receivables, Related Security, the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio
Certificate and the enforcement of any obligation of NFC hereunder. 
 SECTION 6.07 Confidential Information. NFRRC agrees that it
shall neither use nor disclose to any person the names and addresses of the Obligors, except in connection with the enforcement of NFRRC’s rights hereunder, under the Designated Receivables, under the Further Transfer and Servicing Agreements
or as required by law. 
 SECTION 6.08 Headings. The various headings in this Agreement are for purposes of reference only and shall
not affect the meaning or interpretation of any provision of this Agreement. 
 SECTION 6.09 Counterparts. This Agreement 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. 
 SECTION 6.10 Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any
reason whatsoever be held invalid, then such covenants, agreements, provisions or terms shall be deemed enforceable to the fullest extent permitted, and if not so permitted, shall be deemed severable from the remaining covenants, agreements,
provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of any Securities or rights of any Owner. 
 SECTION 6.11 Further Assurances. NFC and NFRRC agree to do and perform, from time to time, any and all acts and to execute any and all further
instruments required or 
  

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 reasonably requested by the other more fully to effect the purposes of this Agreement, including the preparation of any
financing statements or continuation statements relating to the Designated Receivables, Related Security, the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate for filing under the provisions of the UCC of any
applicable jurisdiction. 
 SECTION 6.12 No Third-Party Beneficiaries. This Agreement shall inure to the benefit of and be binding
upon the parties hereto, the Owners and their respective successors and permitted assigns. Except as otherwise expressly provided in this Agreement, no other Person shall have any right or obligation hereunder. 
 SECTION 6.13 Merger and Integration. Except as specifically stated otherwise herein, this Agreement sets forth the entire understanding of the
parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement. This Agreement may not be modified, amended, waived, or supplemented except as provided herein. 
 SECTION 6.14 No Petition Covenants. Notwithstanding any prior termination of this Agreement, NFC shall not, prior to the date which is one year
and one day after the final distribution with respect to the Securities to the Note Distribution Account or the Certificate Distribution Account, as applicable, acquiesce, petition or otherwise invoke or cause any Person to invoke the process of any
court or government authority for the purpose of commencing or sustaining a case against NFRRC under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of NFRRC or any substantial part of its property, or ordering the winding up or liquidation of the affairs of NFRRC. 
 *    *    *    *    * 
  

 - 20 - 

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

			
	NAVISTAR FINANCIAL CORPORATION
		
	By:	 	 /s/ John V. Mulvaney, Sr.

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	Vice President and Controller
	
	 NAVISTAR FINANCIAL RETAIL RECEIVABLES
 CORPORATION

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

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

 EXHIBIT A 
 FORM OF PA ASSIGNMENT 
 As of September 1, 2006, for value received, in accordance with the
Purchase Agreement, dated as of September 1, 2006 (the “Purchase Agreement”), between Navistar Financial Corporation, a Delaware corporation (“NFC”), and Navistar Financial Retail Receivables Corporation, a
Delaware corporation (“NFRRC”), NFC does hereby sell, assign, transfer and otherwise convey unto NFRRC, without recourse, all right, title and interest of NFC in, to and under: 
  

	 	(a)	the Retail Notes identified on the Schedule of Retail Notes attached hereto having an aggregate Starting Receivable Balance of $415,443,996.03 (the “Designated Retail
Notes”) and the Related Retail Note Assets associated with the Designated Retail Notes; 

  

	 	(b)	the Series 2006-ARC Portfolio Interest and the beneficial interest in the Series 2006ARC Portfolio Assets, including the Retail Leases identified on the Schedule of Retail Leases
attached hereto having an aggregate Starting Receivable Balance of $27,431,106.12 (the “Designated Retail Leases” and together with the Designated Retail Notes, the “Designated Receivables”) and the Related Titling
Trust Assets associated with the Designated Retail Leases and the Series 2006-ARC Portfolio Certificate; and 

  

	 	(c)	the rights, but not the obligations, of NFC under the Lease Purchase Agreement with respect to the Designated Retail Leases. 

 The foregoing sale does not constitute and is not intended to result in any assumption by NFRRC of any obligation of the undersigned to the Obligors,
Dealers, insurers or any other Person in connection with the Designated Receivables, the agreements with Dealers, any Insurance Policies or any agreement or instrument relating to any of them. 
 This PA Assignment is made pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained in the Purchase
Agreement and is to be governed by the Purchase Agreement. 
 Capitalized terms used herein and not otherwise defined shall have the meaning
assigned to them in the Purchase Agreement. 
 *  *  *  *  * 
  

 A-1 

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

			
	NAVISTAR FINANCIAL CORPORATION
		
	By:	 	  

	Name:	 	
	Title:

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