Document:

Pooling Agreement

 Exhibit 4.1 
  

EXECUTION COPY 
  

  
 POOLING AGREEMENT 
  
 BETWEEN 
  
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION 
  
 SELLER 
  
 AND 
  
 NAVISTAR FINANCIAL 2004-A OWNER TRUST 
  
 ISSUER 
  
 DATED AS OF APRIL 1,
2004 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page

	 ARTICLE I DEFINITIONS
	  	1
	 	 	 SECTION 1.01
	 	 Definitions
	  	1
		
	 ARTICLE II CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES
	  	1
	 	 	 SECTION 2.01
	 	 Conveyance of Initial Receivables
	  	1
	 	 	 SECTION 2.02
	 	 Conveyance of Subsequent Receivables
	  	3
	 	 	 SECTION 2.03
	 	 Custody of Receivable Files
	  	5
	 	 	 SECTION 2.04
	 	 Acceptance by Issuer; Limitation on Transfer of International Purchase Obligations
	  	6
	 	 	 SECTION 2.05
	 	 Representations and Warranties as to the Receivables
	  	6
	 	 	 SECTION 2.06
	 	 Repurchase of Receivables Upon Breach of Warranty
	  	7
		
	 ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER
	  	8
	 	 	 SECTION 3.01
	 	 Representations and Warranties of the Seller
	  	8
	 	 	 SECTION 3.02
	 	 Liability of Seller
	  	10
	 	 	 SECTION 3.03
	 	 Merger or Consolidation of, or Assumption of the Obligations of, Seller; Amendment of Certificate of Incorporation
	  	10
	 	 	 SECTION 3.04
	 	 Limitation on Liability of Seller and Others
	  	10
	 	 	 SECTION 3.05
	 	 Seller May Own Securities
	  	10
		
	 ARTICLE IV TERMINATION
	  	11
	 	 	 SECTION 4.01
	 	 Optional Purchase of All Receivables
	  	11
	 	 	 SECTION 4.02
	 	 Termination
	  	11
		
	 ARTICLE V MISCELLANEOUS PROVISIONS
	  	12
	 	 	 SECTION 5.01
	 	 Amendment
	  	12
	 	 	 SECTION 5.02
	 	 Protection of Title to Owner Trust Estate
	  	13
	 	 	 SECTION 5.03
	 	 Notices
	  	15
	 	 	 SECTION 5.04
	 	 Governing Law
	  	15
	 	 	 SECTION 5.05
	 	 Severability of Provisions
	  	15
	 	 	 SECTION 5.06
	 	 Assignment
	  	15
	 	 	 SECTION 5.07
	 	 Third-Party Beneficiaries
	  	15
	 	 	 SECTION 5.08
	 	 Separate Counterparts
	  	15
	 	 	 SECTION 5.09
	 	 Headings and Cross-References
	  	15
	 	 	 SECTION 5.10
	 	 Assignment to Indenture Trustee
	  	16
	 	 	 SECTION 5.11
	 	 No Petition Covenants; Waiver of Claims
	  	16
	 	 	 SECTION 5.12
	 	 Limitation of Liability of the Trustees
	  	16

  

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	 EXHIBIT A
	 	 Locations of Composite Schedule of Receivables

	 EXHIBIT B
	 	 Form of Initial PSA Assignment

	 EXHIBIT C
	 	 Form of Subsequent Transfer PSA Assignment

	 APPENDIX A
	 	 Defined Terms and Rules of Construction

	 APPENDIX B
	 	 Notice Addresses and Procedures

  

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 POOLING AGREEMENT 
  
 THIS POOLING AGREEMENT is made as of April 1, 2004 by and between Navistar Financial Retail Receivables Corporation,
a Delaware corporation (“NFRRC” and, in its capacity as the Seller hereunder, the “Seller”) and Navistar Financial 2004-A Owner Trust, a Delaware statutory trust (the “Issuer”). 
  
 WHEREAS, NFC has sold the Initial Receivables, and has agreed to sell
Subsequent Receivables, to the Seller pursuant to the Purchase Agreement. 
  
 WHEREAS, the Seller desires to sell the Initial Receivables and Subsequent Receivables (collectively, the “Receivables”), to the Issuer in exchange for the Securities and the payment of funds
withdrawn from the Pre-Funding Account pursuant to the terms of this Agreement. 
  
 WHEREAS, the Seller and the Issuer wish to set forth the terms pursuant to which the Receivables are to be sold by the Seller to the Issuer. 
  
 NOW, THEREFORE, in consideration of the foregoing, the other good and valuable consideration and the mutual terms and
covenants contained herein, the parties hereto agree as follows: 
  
 ARTICLE I 
 DEFINITIONS 
  
 SECTION 1.01 Definitions. Certain capitalized terms used in the above recitals and in this Agreement are defined in and shall have the respective
meanings assigned them in Part I of Appendix A to this Agreement. All references herein to “the Agreement” or “this Agreement” are to this Pooling Agreement as it may be amended, supplemented (whether by Subsequent
Transfer PSA Assignment or otherwise) or modified from time to time, the exhibits hereto and the capitalized terms used herein which are defined in such Appendix A, and all references herein to Articles, Sections and subsections are to
Articles, Sections or subsections of this Agreement unless otherwise specified. The rules of construction set forth in Part II of such Appendix A shall be applicable to this Agreement. 
  
 ARTICLE II 
 CONVEYANCE OF RECEIVABLES; ORIGINAL ISSUANCE OF CERTIFICATES 
  
 SECTION 2.01 Conveyance of Initial Receivables. In consideration of the Issuer’s delivery of the Securities to, or upon the order of, the
Seller, the Seller does hereby enter into this Agreement and agree to fulfill all of its obligations hereunder and to sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse (except as provided in
Section 2.06), pursuant to an assignment in the form attached hereto as Exhibit B (the “Initial PSA Assignment”), all right, title and interest of the Seller in, to and under: 
  
 (a) the Retail Notes identified on the Schedule of Retail Notes to the
Initial PSA Assignment delivered to the Issuer and the Related Retail Note Assets with respect to those Retail Notes; 

 (b) the Series 2004-A Portfolio Interest, the Series 2004-A Portfolio Certificate and the beneficial
interest in the Series 2004-A Portfolio Assets, including the Retail Leases identified on the Schedule of Retail Leases to the Initial PSA Assignment delivered to the Issuer and the Related Titling Trust Assets with respect to those Retail Leases;

  
 (c) the rights, but not the obligations, of NFC under the
Lease Purchase Agreement and the Initial LPA Assignment with respect to the Retail Leases included in the Initial Receivables; and 
  
 (d) the rights, but not the obligations, of the Seller under the Purchase Agreement and the Initial PA Assignment pursuant to Section 2.01 of the
Purchase Agreement with respect to the Initial Receivables. 
  
 In addition, on
the Closing Date the Seller shall deposit the Reserve Account Initial Deposit into the Reserve Account, the Pre-Funding Account Initial Deposit into the Pre-Funding Account and the Negative Carry Account Initial Deposit into the Negative Carry
Account. It is the intention of the Seller that the transfer and assignment contemplated by this Section 2.01 shall constitute a sale of the Initial Receivables, the Series 2004-A Portfolio Interest and the Series 2004-A Portfolio Certificate
from the Seller to the Issuer and the beneficial interest in and title to the assets conveyed pursuant to this Section 2.01 shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the
Seller under any bankruptcy law. Within two Business Days after the Closing Date, the Seller shall cause to be deposited into the Collection Account all collections (from whatever source) on or with respect to the assets conveyed pursuant to this
Section 2.01 received by the Seller pursuant to Section 5.07 of the Purchase Agreement. The Seller intends to treat such transfer and assignment as a sale for accounting and tax purposes. Notwithstanding the foregoing, in the event a
court of competent jurisdiction determines that such transfer and assignment did not constitute such a sale or that such beneficial interest is a part of the Seller’s estate, then (i) the Seller shall be deemed to have granted to the Issuer a
first priority perfected security interest in all of the Seller’s right title and interest in, to and under the assets conveyed pursuant to this Section 2.01, and the Seller hereby grants such security interest and (ii) the assets
conveyed pursuant to this Section 2.01 shall be deemed to include all rights, powers and options (but none of the obligations, if any) of the Seller under any agreement or instrument included in the assets conveyed pursuant to this Section
2.01, including the immediate and continuing right to claim for, collect, receive and give receipt for lease payments and principal and interest payments in respect of the Initial Receivables included in the assets conveyed pursuant to this
Section 2.01 and all other monies payable under the Initial Receivables conveyed pursuant to this Section 2.01, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights, powers
and options, to bring Proceedings in the name of the Seller or otherwise and generally to do and receive anything that the Seller is or may be entitled to do or receive under or with respect to the assets conveyed pursuant to this Section
2.01. For purposes of such grant, this Agreement shall constitute a security agreement under the UCC. 
  

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 SECTION 2.02 Conveyance of Subsequent Receivables. (a) Subject to satisfaction of the conditions
set forth in Section 2.02(b) below, in consideration of the Issuer’s delivery on the related Subsequent Transfer Date to or upon the order of the Seller of the amount described in Section 8.11(a) of the Indenture to be delivered
to the Seller, the Seller does hereby agree to sell, transfer, assign, set over and otherwise convey to the Issuer, without recourse (except as provided in Section 2.06, pursuant to an assignment in substantially the form of
Exhibit C (a “Subsequent Transfer PSA Assignment”), all right, title and interest of the Seller in, to and under: 
  
 (i) the Retail Notes identified on the Schedule of Retail Notes to such Subsequent Transfer PSA Assignment delivered to the Issuer and the
Related Retail Note Assets with respect to those Retail Notes; 
  
 (ii) the beneficial interest in the Series 2004-A Portfolio Assets, including the Retail Leases identified on the Schedule of Retail Leases to such Subsequent Transfer PSA Assignment delivered to the Issuer and the
Related Titling Trust Assets with respect to those Retail Leases; 
  
 (iii) the rights, but not the obligations, of NFC under the Lease Purchase Agreement and the Subsequent LPA Assignment with respect to the Retail Leases included in those Subsequent Receivables; and 
  
 (iv) the rights, but not the obligations, of the Seller
under the Purchase Agreement and the Subsequent Transfer PA Assignment pursuant to Section 2.01 of the Purchase Agreement with respect to those Subsequent Receivables. 
  
 It is the intention of the Seller that each transfer and assignment contemplated by this Section 2.02 shall constitute a sale of the
related Subsequent Receivables from the Seller to the Issuer and the beneficial interest in and title to the assets conveyed pursuant to the Subsequent Transfer PSA Assignment shall not be part of the Seller’s estate in the event of the filing
of a bankruptcy petition by or against the Seller under any bankruptcy law. Within two Business Days after each Subsequent Transfer Date, the Seller shall cause to be deposited into the Collection Account all collections (from whatever source) on or
with respect to the assets conveyed pursuant to the related Subsequent Transfer PSA Assignment received by the Seller pursuant to Section 5.07 of the Purchase Agreement. The Seller intends to treat each such transfer and assignment as a sale
for accounting and tax purposes. Notwithstanding the foregoing, in the event a court of competent jurisdiction determines that any such transfer and assignment did not constitute such a sale or that such beneficial interest is a part of the
Seller’s estate, then (i) the Seller shall be deemed to have granted to the Issuer a first priority perfected security interest in all of the Seller’s right, title and interest in, to and under the assets conveyed pursuant to the related
Subsequent Transfer PSA Assignment, and the Seller hereby grants such security interest and (ii) the assets conveyed pursuant to such Subsequent Transfer PSA Assignment shall be deemed to include all rights, powers and options (but none of the
obligations, if any) of the Seller under any agreement or instrument included in the assets conveyed pursuant to such Subsequent Transfer PSA Assignment, including the immediate and continuing right to claim for, collect, receive and give receipt
for lease payments and principal and interest payments in respect of the Subsequent 
  

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 Receivables included in the assets conveyed pursuant to such Subsequent Transfer PSA Assignment and all other monies
payable under the Subsequent Receivables conveyed pursuant to such Subsequent Transfer PSA Assignment, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights, powers and options, to bring
Proceedings in the name of the Seller or otherwise and generally to do and receive anything that the Seller is or may be entitled to do or receive under or with respect to the assets conveyed pursuant to such Subsequent Transfer PSA Assignment. For
purposes of such grant, each such Subsequent Transfer PSA Assignment, together with this Agreement, shall constitute a security agreement under the UCC. 
  
 (b) The Seller shall transfer to the Issuer Subsequent Receivables and the other property and rights related thereto described in Section 2.02(a)
above only upon the satisfaction of each of the following conditions precedent on or prior to the related Subsequent Transfer Date: 
  
 (i) the Funding Period shall not have terminated; 
  
 (ii) each of the representations and warranties made by the Seller pursuant to Section 2.05 with
respect to such Subsequent Receivables shall be true and correct as of the related Subsequent Transfer Date with the same effect as if then made, and the Seller shall have performed all obligations to be performed by it hereunder on or prior to such
Subsequent Transfer Date; 
  
 (iii) the Seller
shall have delivered to the Owner Trustee, the Indenture Trustee and the Rating Agencies a duly executed Subsequent Transfer PSA Assignment, including the Schedule of Retail Notes and the Schedule of Retail Leases included in such Subsequent
Receivables (which schedules shall be deemed to supplement the existing Composite Schedule of Receivables in effect at such time); 
  
 (iv) the applicable Reserve Account Subsequent Transfer Deposit for such Subsequent Transfer Date shall have been deposited in the Reserve
Account pursuant to Section 8.10(a) of the Indenture; 
  
 (v) the Seller shall, at its own expense, on or prior to each Subsequent Transfer Date indicate in its computer files that the Subsequent Receivables conveyed on such date have been sold to the Issuer pursuant to this
Agreement and the related Subsequent Transfer PSA Assignment; 
  
 (vi) the Seller shall have taken any action required to maintain the first priority perfected ownership interest of the Issuer in the Owner Trust Estate and the first priority perfected security interest of the
Indenture Trustee in the Collateral; 
  
 (vii)
The Receivables in the Trust (after giving effect to the conveyance of the Subsequent Receivables to the Trust on such Subsequent Transfer Date) shall meet the following criteria: (A) the weighted average Annual Percentage Rate of the Receivables in
the Trust shall not be less than 6.90%, (B) the weighted average remaining maturity of the Receivables in the Trust shall not be greater than 54 
  

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 months, (C) the aggregate Receivable Balance of all Receivables owing from a single Obligor shall not be
more than 2.00% of the aggregate Receivable Balance of all Receivables in the Trust, (D) the aggregate Starting Receivable Balance of all Retail Leases in the Trust shall not exceed 10.00% of the Aggregate Starting Receivable Balance, (E) the
aggregate Starting Receivable Balance of all Receivables not originated by NFC or one of its Affiliates shall not exceed 3.00% of the Aggregate Starting Receivable Balance and (F) the aggregate Starting Receivable Balance of all Receivables that are
Eligible Restructured Receivables shall not exceed 5.00% of the Aggregate Starting Receivable Balance; 
  
 (viii) the Seller shall have delivered to the Indenture Trustee and the Owner Trustee an Officers’ Certificate confirming the
satisfaction of the conditions specified in this Section 2.02(b); 
  
 (ix) the Seller shall have delivered to the Trust, the Indenture Trustee and the Rating Agencies an Opinion of Counsel with respect to the transfer of such Subsequent Receivables substantially in the form of the
Opinion of Counsel delivered to the Rating Agencies on the Closing Date; 
  
 (x) the Seller shall have delivered to the Owner Trustee and the Indenture Trustee written confirmation from an independent public accounting firm that, as of the applicable Subsequent Cutoff Date, such Subsequent
Receivables satisfied the eligibility criteria described in Sections 3.01(a)(iv), (a)(v), (s), (t), (w), and (x) of the Purchase Agreement; and 
  
 (xi) Each Retail Lease has been allocated to the Series 2004-A Portfolio Interest in accordance with the terms of the Titling Trust
Documents. 
  
 (c) The Seller covenants to transfer to the Issuer
pursuant to Section 2.02(a) before the termination of the Funding Period, Subsequent Receivables with an aggregate Starting Receivable Balance equal to the amount of the Pre-Funding Account Initial Deposit. If on the Distribution Date on
which the Funding Period ends (or, if the Funding Period does not end on a Distribution Date, the first Distribution Date following the end of the Funding Period) the Pre-Funded Amount is equal to or greater than $100,000, the Seller shall be
obligated to pay to the Issuer on the Transfer Date immediately preceding such Distribution Date an amount equal to the Noteholders’ Prepayment Premium with respect to each class of Notes or such lesser amount that the Seller actually receives
from NFC under Section 2.04 of the Purchase Agreement in respect of NFC’s breach thereof; provided, however, that the foregoing shall be the sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee and Financial
Parties with respect to a failure of the Seller to comply with this covenant. 
  
 SECTION 2.03 Custody of Receivable Files. In connection with the sale, transfer and assignment of Receivables to the Seller from NFC pursuant to the Purchase Agreement, the Seller, simultaneously with the
execution and delivery of this Agreement, shall enter into the Servicing Agreement with NFC, pursuant to which the Seller shall revocably appoint NFC as the Custodian, and NFC shall accept such appointment, to act as the agent of the Seller as
Custodian 
  

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 of the following documents or instruments which shall be constructively delivered to the Trust, as of the Closing Date
with respect to each Initial Receivable, and as of the related Subsequent Transfer Date with respect to each Subsequent Receivable: 
  
 (a) the fully executed original of the Retail Note or Retail Lease for such Receivable; 
  
 (b) documents evidencing or related to any Insurance Policy; 
  
 (c) the original credit application of each Obligor, fully executed by each such Obligor on NFC’s customary form, or on
a form approved by NFC, for such application; 
  
 (d) if such
Receivable is a Retail Note, where permitted by law, the original certificate of title (when received) and otherwise such documents, if any, that NFC keeps on file in accordance with its customary procedures indicating that the Financed Vehicle is
owned by the Obligor and subject to the interest of NFC as first lienholder or secured party; 
  
 (e) if such Receivable is a Retail Lease, the Certificate of Title and such other documents that NFC is required to maintain pursuant to Section 3.6 of the Titling Trust Servicing Agreement; and 
  
 (f) any and all other documents that NFC keeps on file in accordance with its
customary procedures relating to the individual Receivable, Obligor or Financed Vehicle. 
  
 SECTION 2.04 Acceptance by Issuer; Limitation on Transfer of International Purchase Obligations. The Issuer does hereby accept all consideration conveyed by the Seller pursuant to Sections 2.01 and
2.02, and declares that the Issuer shall hold such consideration upon the trust set forth in the Trust Agreement for the benefit of Certificateholders, subject to the terms and conditions of the Trust Agreement, the Indenture and this
Agreement; provided, however, that the Issuer acknowledges and agrees that (a) the rights pursuant to the International Purchase Obligations are personal to NFC and only the proceeds of such rights have been assigned to the Issuer hereunder and,
with respect to the Retail Notes and Related Retail Note Assets, by NFC to NFRRC under the Purchase Agreement and from NFRRC to the Issuer hereunder and with respect to Retail Leases and Related Titling Trust Assets, by Harco Leasing to NFC under
the Lease Purchase Agreement, from NFC to NFRRC under the Purchase Agreement and from NFRRC to the Issuer hereunder, (b) neither the Issuer nor the Indenture Trustee is or is intended to be a third-party beneficiary of such rights, and (c)
accordingly such rights are not exercisable by, enforceable by or for the benefit of, or preserved for the benefit of, the Issuer or the Indenture Trustee. The Issuer hereby agrees and accepts the appointment and authorization of NFC as Servicer
pursuant to the Servicing Agreement. The parties agree that this Agreement (including each PSA Assignment), the Servicing Agreement, the Indenture and the Trust Agreement constitute the Further Transfer and Servicing Agreements. 
  
 SECTION 2.05 Representations and Warranties as to the Receivables.
Pursuant to Sections 2.01(d) and 2.02(a)(iv), the Seller assigns to the Issuer all of its right, title and interest in, to and under the Purchase Agreement. Such assigned right, title and interest includes the representations and
warranties of NFC made to the Seller pursuant to Section 3.01 of the 
  

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 Purchase Agreement. The Seller hereby represents and warrants to the Issuer that the Seller has taken no action which
would cause such representations and warranties to be false in any material respect as of the Closing Date, in the case of the Initial Receivables, and as of the related Subsequent Transfer Date, in the case of Subsequent Receivables. The Seller
further acknowledges that the Issuer is relying on the representations and warranties of the Seller under this Agreement and of NFC under the Purchase Agreement in accepting the Receivables, the Series 2004-A Portfolio Interest and the Series 2004-A
Portfolio Certificate in trust and executing and delivering the Securities. The foregoing representation and warranty speaks as of the Closing Date, in the case of the Initial Receivables, and as of the related Subsequent Transfer Date, in the case
of Subsequent Receivables, but shall survive the sale, transfer and assignment of the Receivables, the Series 2004-A Portfolio Interest and the Series 2004-A Portfolio Certificate to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture. 
  
 SECTION 2.06 Repurchase of
Receivables Upon Breach of Warranty. Upon discovery by the Seller, the Servicer or either Trustee of a breach of any of the representations and warranties in Section 3.01 of the Purchase Agreement (and, with respect to Section
3.01(j) of the Purchase Agreement, irrespective of any limitation regarding knowledge of NFC) or in Section 2.05 or Section 3.01 of this Agreement that materially and adversely affects the interests of the Financial Parties in any
Receivable, the party discovering such breach shall give prompt written notice thereof to the others. As of the second Accounting Date following its discovery or its receipt of notice of breach (or, at the Seller’s election, the first
Accounting Date following such discovery or notice), unless such breach shall have been cured in all material respects, in the event of a breach of the representations and warranties made by the Seller in Section 2.05 or Section 3.01,
the Seller shall repurchase such Receivable from the Issuer on the related Distribution Date. Neither the Owner Trustee nor the Issuer shall have any affirmative duty to conduct any investigation as to the occurrence of any event requiring the
repurchase of any Receivable pursuant to this Section 2.06. 
  
 The repurchase price to be paid by any Warranty Purchaser shall be an amount equal to the Warranty Payment. It is understood and agreed that the obligation of the Warranty Purchaser to repurchase any Receivable as to which a breach has
occurred and is continuing shall, if such repurchase obligations are fulfilled, constitute the sole remedy against the Seller, the Servicer, NFC or Harco Leasing for such breach available to any Interested Party. 
  

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 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF THE SELLER 
  
 SECTION 3.01 Representations and Warranties of the Seller. The Seller makes the following representations and warranties as to itself on which the Issuer is relying in acquiring the Receivables, the Series
2004-A Portfolio Interest and the Series 2004-A Portfolio Certificate hereunder and issuing the Securities under the other Further Transfer and Servicing Agreements. The following representations and warranties speak as of the Closing Date in the
case of the Initial Receivables and as of the applicable Subsequent Transfer Date in the case of the Subsequent Receivables, but in each case shall survive the sale, transfer and assignment of such Receivables to the Issuer and the pledge thereof to
the Indenture Trustee pursuant to the Indenture. 
  
 (a)
Organization and Good Standing. The Seller has been duly organized and is validly existing as a corporation in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business
as such properties are presently owned and such business is presently conducted, and had at all relevant times, and now has, power, authority and legal right to acquire and own the Receivables; 
  
 (b) Due Qualification. The Seller is duly qualified to do business as
a foreign corporation in good standing, and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business requires or shall require such qualification; 

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

  
 (e) No Violation. The consummation by the Seller of the
transactions contemplated by the applicable Further Transfer and Servicing Agreements and the fulfillment of the terms of such agreements by the Seller shall not conflict with, result in any breach of any of the terms and provisions of or constitute
(with or without notice or lapse of time) a default under, 
  

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 the certificate of incorporation or by-laws of the Seller, or any indenture, agreement or other instrument to which the
Seller is a party or by which it is bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement or other instrument, other than the applicable Further Transfer and
Servicing Agreements, or violate any law or, to the Seller’s knowledge, any order, rule or regulation applicable to the Seller of any court or of any federal or state regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Seller or any of its properties; 
  
 (f) No Proceedings. There are no proceedings or, to the Seller’s knowledge, investigations pending or, to the Seller’s knowledge, threatened before any court, regulatory body, administrative agency or other tribunal or
governmental instrumentality having jurisdiction over the Seller or its properties (i) asserting the invalidity of the applicable Further Transfer and Servicing Agreements, any Securities issued pursuant thereto and the Administration Agreement,
(ii) seeking to prevent the issuance of such Securities or the consummation of any of the transactions contemplated by the applicable Further Transfer and Servicing Agreements or the Administration Agreement, or (iii) seeking any determination or
ruling that might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, such Securities, the applicable Further Transfer and Servicing Agreements or the Administration
Agreement; 
  
 (g) Good Title. On the date hereof, the
Seller has good title to the Series 2004-A Portfolio Interest and the Series 2004-A 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 related
PSA Assignment by the Seller, good and valid title to the Series 2004-A Portfolio Interest and the Series 2004-A Portfolio Certificate will be validly and effectively conveyed to, and vested in, the Issuer, free and clear of all Liens, other than
Permitted Liens, and the transfer of the Series 2004-A Portfolio Interest and the Series 2004-A Portfolio Certificate by the Seller to the Issuer has been perfected. On the date hereof, the Seller has good title to each Retail Note free and clear of
all Liens (other than Permitted Liens and Liens that will be released as of such transfer). On the date hereof, good and valid title to each such Retail Note will be validly and effectively conveyed to, and vested in, the Issuer, free and clear of
all Liens, other than Permitted Liens, and the transfer of such Retail Note by the Seller to the Issuer has been perfected under the UCC; 
  
 (h) All Filings Made. All filings (including UCC filings) necessary in any jurisdiction to give the Issuer a first priority perfected security or
ownership interest in the Purchased Property (to the extent it constitutes Code Collateral) shall have been made, and the Receivables constitute Code Collateral; and 
  
 (i) Valid Sale. This Agreement and the Initial PSA Assignment constitute, and each Subsequent Transfer PSA Assignment
when duly executed and delivered shall constitute, a valid sale, transfer and assignment of the Purchased Property transferred thereby, enforceable against creditors of and purchasers from the Seller. 
  

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 SECTION 3.02 Liability of Seller. The Seller shall be liable in accordance with this Agreement
only to the extent of the obligations in this Agreement specifically undertaken by the Seller. 
  
 SECTION 3.03 Merger or Consolidation of, or Assumption of the Obligations of, Seller; Amendment of Certificate of Incorporation. 
  
 (a) Any corporation (i) into which the Seller may be merged or consolidated, (ii) resulting from any merger or consolidation
to which the Seller shall be a party, (iii) succeeding to the business of the Seller, or (iv) more than 50% of the voting stock of which is owned directly or indirectly by NIC, which corporation in any of the foregoing cases executes an agreement of
assumption to perform every obligation of the Seller under this Agreement, shall be the successor to the Seller under this Agreement without the execution or filing of any document or any further act on the part of any of the parties to this
Agreement. The Seller shall provide 10 days’ prior notice of any merger, consolidation or succession pursuant to this Section 3.03 to the Rating Agencies. 
  
 (b) The Seller hereby agrees that during the term of this Agreement it shall not amend Articles Third, Fourth, Fifth,
Twelfth or Fourteenth of its Restated Certificate of Incorporation without obtaining the prior written consent of the Rating Agencies or without obtaining the prior written consent of a majority of the Outstanding Amount of the Controlling Class as
of the close of the preceding Distribution Date and the prior written consent of the Holders of Certificates evidencing not less than a majority of the ownership interest in the Trust as of the close of the preceding Distribution Date. 

 
 SECTION 3.04 Limitation on Liability of Seller and Others. The
Seller and any director or officer or employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind prima facie properly executed and submitted by any Person respecting any matters arising
under this Agreement. The Seller shall not be under any obligation to appear in, prosecute or defend any legal action that is not incidental to its obligations as Seller of the Receivables under this Agreement and that in its opinion may involve it
in any expense or liability. 
  
 SECTION 3.05 Seller May Own
Securities. Each of the Seller and any Person controlling, controlled by or under common control with the Seller may in its individual or any other capacity become the owner or pledgee of Securities with the same rights as it would have if it
were not the Seller or an Affiliate thereof except as otherwise specifically provided herein. Except as otherwise provided herein, Securities so owned by or pledged to the Seller or such controlling or commonly controlled Person shall have an equal
and proportionate benefit under the provisions of this Agreement, without preference, priority or distinction as among all of such Securities. 
  

 - 10 - 

 ARTICLE IV 
 TERMINATION 
  
 SECTION
4.01 Optional Purchase of All Receivables. On the last day of any Monthly Period as of which (i) the Aggregate Receivables Balance is 10% or less of the Aggregate Starting Receivables Balance and (ii) the Class A-1 Notes, the Class A-2 Notes
and the Class A-3 Notes have been paid in full, the Servicer shall have the option to purchase the assets of the Owner Trust Estate other than the Designated Accounts and the Certificate Distribution Account. If the Servicer’s long term
unsecured debt rating from Moody’s is equal to or higher than Baa3 at the time that it seeks to exercise such option, then to exercise such option, the Servicer shall deposit in the Collection Account an amount equal to the aggregate
Administrative Purchase Payments for the Receivables (including Liquidating Receivables), plus the appraised value of any such other property contained in the Owner Trust Estate (less the Liquidation Expenses to be incurred in connection with the
recovery thereof), such value to be determined by an appraiser mutually agreed upon by the Servicer and each Trustee. If the Servicer’s long term unsecured debt rating from Moody’s is less than Baa3 at the time that it seeks to exercise
such option, then to exercise such option, the Servicer shall deposit in the Collection Account an amount equal to the appraised value of the Receivables (including Liquidating Receivables), plus the appraised value of any such other property
contained in the Owner Trust Estate (less the Liquidation Expenses to be incurred in connection with the recovery thereof), such values to be determined by an appraiser mutually agreed upon by the Servicer and each Trustee; provided, that such
amount (when added to any funds then on deposit in the Designated Accounts) must be at least equal to the aggregate Redemption Price of the outstanding Notes to be redeemed with such proceeds for the Distribution Date related to the Monthly Period
in which such option is exercised. Thereupon, the Servicer shall succeed to all interests in and to the Owner Trust Estate (other than the Designated Accounts and the Certificate Distribution Account). 
  
 SECTION 4.02 Termination. 
  
 (a) Following the satisfaction and discharge of the Indenture with respect
to the Notes, and the payment in full of the principal and interest on the Notes, the Certificateholders shall succeed to the rights of the Noteholders hereunder and the Owner Trustee shall succeed to the rights of, and assume the obligations of,
the Indenture Trustee pursuant to this Agreement (subject to the continuing obligations of the Indenture Trustee set forth in Section 4.4 of the Indenture). 
  
 (b) After payment to each Trustee, the Noteholders and the Servicer of all amounts required to be paid under this Agreement
and the Indenture, any amounts on deposit in the Reserve Account and the Collection Account (after all other distributions required to be made from such accounts have been made) shall be deposited into the Certificate Distribution Account for
distribution to the Certificateholders and any other assets remaining in the Owner Trust Estate shall be distributed to the Certificate Distribution Account for distribution to the Certificateholders. 
  

 - 11 - 

 ARTICLE V 
 MISCELLANEOUS PROVISIONS 
  
 SECTION 5.01 Amendment. 
  
 (a) This Agreement
may be amended by the Seller and the Issuer with the consent of the Indenture Trustee, but without the consent of any of the Financial Parties, (i) to cure any ambiguity, (ii) to 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) to add or supplement any credit enhancement for the benefit of the Noteholders of any class or the Certificateholders provided that if any such
addition shall affect any class of Noteholders or the Certificateholders differently than any other class of Noteholders or the Certificateholders, respectively, then such addition shall not, as evidenced by an Opinion of Counsel, adversely affect
in any material respect the interests of any class of Noteholders or the Certificateholders, (iv) add to the covenants, restrictions or obligations of the Seller or either Trustee or (v) add, change or eliminate any other provision of this Agreement
in any manner that shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of the Financial Parties. 
  
 (b) This Agreement may also be amended from time to time by the Seller and the Issuer with the consent of the Indenture Trustee, the consent of
Noteholders whose Notes evidence not less than a majority of the Outstanding Amount of the Controlling Class as of the close of the preceding Distribution Date and the consent of Certificateholders whose Certificates evidence not less than a
majority of the ownership interest in the Trust as of the close of the preceding Distribution Date (which consents, whether given pursuant to this Section 5.01 or pursuant to any other provision of this Agreement, shall be conclusive and
binding on such Person and on all future holders of such Notes or Certificates and of any Notes or Certificates issued upon the transfer thereof or in exchange thereof or in lieu thereof whether or not notation of such consent is made upon the Notes
or Certificates) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement, or of modifying in any manner the rights of the Financial Parties; provided, however, that
no such amendment shall (i)(a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions that shall be required to be made on any Security, the Interest Rate for any
class of Notes or the Specified Reserve Account Balance or (b) reduce the aforesaid percentage required to consent to any such amendment, without the consent of the holders of all Securities then outstanding or (ii) amend any provision of this
Agreement (including Section 5.06) which requires actions taken under such provision to have the consent of Noteholders whose Notes evidence greater than a majority of the Outstanding Amount of the Controlling Class as of the preceding
Distribution Date or of the Holders of Certificates evidencing greater than a majority of the ownership interest in the Trust as of the preceding Distribution Date, in each case without the consent of the Indenture Trustee and the numbers of
Financial Parties described in such Section. 
  
 (c) Prior to the
execution of any such amendment or consent, the Indenture Trustee shall furnish written notification to the Rating Agencies of the substance of such amendment or consent as provided to the Indenture Trustee. 
  

 - 12 - 

 (d) Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish
written notification of the substance of such amendment or consent to each Certificateholder, and the Indenture Trustee shall furnish written notification to each Noteholder of the substance of such amendment or consent as provided to the Indenture
Trustee. 
  
 (e) It shall not be necessary for the consent of
Financial Parties pursuant to Section 5.01(b) to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. The manner of obtaining such consents (and any
other consents of Financial Parties provided for in this Agreement) and of evidencing the authorization of the execution thereof by Financial Parties shall be subject to such reasonable requirements as either Trustee may prescribe, including the
establishment of record dates pursuant to paragraph number 3 of the Note Depository Agreement. 
  
 (f) Prior to the execution of any amendment to this Agreement, each Trustee shall be entitled to receive and rely upon the Opinion of Counsel referred to in Section 5.02(i) and an Opinion of Counsel stating
that the execution of such amendment is authorized or permitted by this Agreement and that all conditions precedent to the execution and delivery of such amendment have been satisfied. Each Trustee may, but shall not be obligated to, enter into any
such amendment which affects such Trustee’s own rights, duties or immunities under this Agreement or otherwise. 
  
 SECTION 5.02 Protection of Title to Owner Trust Estate. 
  

(a) The Seller shall prepare and file such financing statements and cause to be prepared and filed such continuation and other statements, all in such
manner and in such places as may be required by law fully to preserve, maintain and protect the interest of the Issuer under this Agreement in the Receivables, the Series 2004-A Portfolio Interest and the Series 2004-A Portfolio Certificate and the
Indenture Trustee’s security interest in the Receivables, the Series 2004-A Portfolio Interest and the Portfolio Certificate under the Indenture and hereby authorizes the Issuer to file such financing statements or continuation statements
relating to all or any part thereof; provided, however, that, with respect to a Retail Lease, the Seller shall not be obligated to transfer the titles to any Financed Vehicle. The Seller shall deliver (or cause to be delivered) to the
Owner Trustee file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing. 
  
 (b) The Seller shall not change its name, identity or corporate structure in any manner that would, could or might make any financing statement or
continuation statement filed in accordance with paragraph (a) above seriously misleading within the meaning of Section 9-506 of the UCC, unless it shall have given each Trustee at least 60 days prior written notice thereof. 
  
 (c) The Seller shall give each Trustee at least 60 days prior written notice
of any change in its jurisdiction of formation and shall file such financing statements or amendments as may be necessary to continue the perfection of the Issuer’s security interest in the Designated Receivables and the Related Security. The
Seller shall at all times maintain its jurisdiction of formation within the United States of America. 
  

 - 13 - 

 (d) The Seller will cause the Servicer to maintain accounts and records as to each Receivable accurately
and in sufficient detail to permit (i) the reader thereof to know at any time the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and extensions of any scheduled payments made not less
than 45 days prior thereto, and (ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the amounts from time to time deposited in the Collection Account in respect of such Receivable. 
  
 (e) The Seller will cause the Servicer to maintain its computer systems so
that, from and after the time of sale under this Agreement of the Receivables to the Issuer, the Servicer’s master computer records (including any back-up archives) that refer to any Receivable indicate clearly that the Receivable is owned by
the Issuer and has been pledged by the Issuer to the Indenture Trustee. Indication of the Issuer’s ownership of a Receivable shall be deleted from or modified on the Servicer’s computer systems when, and only when, the Receivable shall
have been paid in full, repurchased by the Seller, purchased by the Servicer or become a Liquidating Receivable. 
  
 (f) If at any time the Seller proposes to sell, grant a security interest in, or otherwise transfer any interest in truck, truck chassis, bus and trailer
receivables to any prospective purchaser, lender or other transferee, the Seller shall give to such prospective purchaser, lender or other transferee computer tapes, records or print-outs (including any restored from back-up archives) that, if they
refer in any manner whatsoever to any Receivable, indicate clearly that such Receivable has been sold and is owned by the Issuer and has been pledged by the Issuer to the Indenture Trustee unless such Receivable has been paid in full, repurchased by
the Seller or purchased by the Servicer. 
  
 (g) The Seller will
cause the Servicer to permit each Trustee and their respective agents at any time to inspect, audit and make copies of and abstracts from the Servicer’s records regarding any Receivables then or previously included in the Owner Trust Estate.

  
 (h) The Seller will cause the Servicer to furnish to each
Trustee at any time upon request a list of all Receivables then held as part of the Owner Trust Estate, together with a reconciliation of such list to the Composite Schedule of Receivables and to each of the Servicer’s Certificates furnished
before such request indicating removal of Receivables from the Owner Trust Estate. Upon request, the Servicer shall furnish a copy of any such list to the Seller. Each Trustee and the Seller shall hold any such list and the Composite Schedule of
Receivables for examination by interested parties during normal business hours at their respective offices located at the addresses set forth in Section 5.03. 
  
 (i) The Seller will deliver to each Trustee promptly after the execution and delivery of this Agreement and of each
amendment thereto, an Opinion of Counsel either (a) stating that, in the opinion of such counsel, all financing statements and continuation statements have been executed and filed that are necessary fully to preserve and protect the interest of the
Issuer and the Indenture Trustee in the Receivables, the Series 2004-A Portfolio Interest and the Series 2004-A Portfolio Certificate and reciting the details of such filings or referring to prior Opinions of Counsel in which such details are given,
or (b) stating that, in the opinion of such counsel, no such action is necessary to preserve and protect such interest. 
  

 - 14 - 

 (j) To the extent required by law, the Seller shall cause the Notes to be registered with the Securities
and Exchange Commission pursuant to Section 12(b) or Section 12(g) of the Exchange Act within the time periods specified in such sections. 
  
 SECTION 5.03 Notices. All demands, notices and communications upon or to the Seller either Trustee or the Rating Agencies under this Agreement
shall be delivered as specified in Appendix B hereto. 
  
 SECTION 5.04 Governing Law. All questions concerning the construction, validity and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of
Illinois, without giving effect to any choice of law or conflict provision or rule (whether of the State of Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois;
provided, however, that (i) the duties and immunities of the Owner Trustee hereunder shall be governed by the laws of the State of Delaware and (ii) the rights and remedies of the Indenture Trustee shall be governed by the laws of the
State of New York. 
  
 SECTION 5.05 Severability of
Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Securities or the rights of the holders thereof. 
  
 SECTION 5.06 Assignment. Notwithstanding anything to the contrary
contained in this Agreement, this Agreement may not be assigned by the Seller without the prior written consent of Noteholders whose Notes evidence not less than 66% of the Outstanding Amount of the Controlling Class as of the close of the preceding
Distribution Date and of Holders of Certificates evidencing not less than 66% of the ownership interest in the Trust as of the close of the preceding Distribution Date. The Seller shall provide notice of any such assignment to the Rating Agencies.

  
 SECTION 5.07 Third-Party Beneficiaries. This Agreement
shall inure to the benefit of and be binding upon the parties hereto, the Securityholders and the Trustees and their respective successors and permitted assigns. Except as otherwise provided in this Article V, no other Person shall have any right or
obligation hereunder. 
  
 SECTION 5.08 Separate
Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

  
 SECTION 5.09 Headings and Cross-References. The various
headings in this Agreement are included for convenience only and shall not affect the meaning or interpretation of any provision of this Agreement. 
  

 - 15 - 

 SECTION 5.10 Assignment to Indenture Trustee. The Seller hereby acknowledges and consents to any
mortgage, pledge, assignment and grant of a security interest by the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of the Noteholders and (only to the extent expressly provided therein) the Certificateholders of all
right, title and interest of the Issuer in, to and under the Owner Trust Estate and/or the assignment of any or all of the Issuer’s rights and obligations hereunder to the Indenture Trustee. 
  
 SECTION 5.11 No Petition Covenants; Waiver of Claims. 
  
 (a) Notwithstanding any prior termination of this Agreement the Seller shall
not, prior to the date which is one year and one day after the final distribution with respect to the Securities to the Note Distribution Account or the Certificate Distribution Account, as applicable, acquiesce, petition or otherwise invoke or
cause the Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator,
assignee, trustee, custodian, sequestrator or other similar official of the Issuer or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Issuer. 
  
 (b) Notwithstanding any prior termination of the Series 2004-A Portfolio
Supplement, the Issuer covenants and agrees that it shall not, prior to the date which is one year and a day after which all obligations under each Permitted Financing have been paid in full, acquiesce, petition or otherwise invoke, or join any
other Person in acquiescing, petitioning or otherwise invoking, against the Titling Trust or any Special Purpose Entity, any proceeding in court or with any governmental authority for the purpose of (i) commencing or sustaining a case against the
Titling Trust or such Special Purpose Entity under any federal or state bankruptcy, insolvency or similar law, or (ii) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of all or any substantial
part of the respective property of the Titling Trust or such Special Purpose Entity, or (iii) ordering the winding up or liquidation of the affairs of the Titling Trust or such Special Purpose Entity. 
  
 (c) Except as otherwise provided in the Titling Trust Agreement, as may be
amended, restated and supplemented from time to time, the Issuer hereby releases all Claims to the Titling Trust Assets allocated to the General Interest and to each Portfolio Interest other than the Series 2004-A Portfolio Interest whether then or
thereafter created and, in the event that such release is not given effect, to fully subordinate all Claims it may be deemed to have against the Titling Trust Assets allocated to the General Interest and each Portfolio Interest other than the Series
2004-A Portfolio Interest whether then or thereafter created. 
  
 SECTION 5.12 Limitation of Liability of the Trustees. 
  
 (a) Notwithstanding anything contained herein to the contrary, this Agreement has been acknowledged and accepted by The Bank of New York not in its individual capacity but solely as Indenture Trustee and in no event shall The Bank of New
York have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had
solely to the assets of the Issuer. 
  

 - 16 - 

 (b) Notwithstanding anything contained herein to the contrary, this Agreement has been executed by Chase
Manhattan Bank USA, National Association not in its individual capacity but solely in its capacity as Owner Trustee and in no event shall Chase Manhattan Bank USA, National Association in its individual capacity or, except as expressly provided in
the Trust Agreement, as Owner Trustee of the Issuer have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant
hereto, as to all of which recourse shall be had solely to the assets of the Issuer. For all purposes of this Agreement, in the performance of its duties or obligations hereunder, or in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Article VI of the Trust Agreement. 
  
 * * * * * 
  

 - 17 - 

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

			
	NAVISTAR FINANCIAL 2004-A OWNER TRUST
		
	By:	 	CHASE MANHATTAN BANK USA, NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee on behalf of the Trust
		
	By:	 	  

	Name:	 	John J. Cashin
	Title:	 	Vice President
	
	NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION, as Seller
		
	By:	 	  

	Name:	 	Andrew J. Cederoth
	Title:	 	Vice President and Treasurer

  

			
	 Acknowledged and Accepted:

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

	Name:	 	Jonathan Farber
	Title:	 	Assistant Treasurer
	
	 NAVISTAR FINANCIAL CORPORATION,

	 as Servicer

		
	 By:
	 	  

	Name:	 	Andrew J. Cederoth
	Title:	 	Vice President and Treasurer

  

 EXHIBIT A 
 Locations of Composite Schedule of Receivables 
  
 The Composite Schedule of Receivables is 
 on file at the offices of: 
  
 1. The Indenture Trustee 
  
 2. The Owner Trustee 
  
 3. Navistar Financial Corporation 
  
 4. Navistar Financial Retail Receivables Corporation 
  

 A-1 

 EXHIBIT B 
 Form of Initial PSA Assignment 
  
 For value received, in accordance with the Pooling Agreement, dated as of April 1, 2004 (the “Pooling Agreement”), between Navistar Financial Retail Receivables Corporation, a Delaware corporation (the “Seller”) and
Navistar Financial 2004-A Owner Trust (the “Issuer”), the Seller does hereby sell, assign, transfer and otherwise convey unto the Issuer, without recourse, all right, title and interest of the Seller in, to and under (a) the Retail
Notes identified on the Schedule of Retail Notes attached hereto having an aggregate Starting Receivable Balance of $384,675,397.64 and the Related Retail Note Assets with respect to those Retail Notes; (b) the Series 2004-A Portfolio Interest, the
Series 2004-A Portfolio Certificate and the beneficial interest in the Series 2004-A Portfolio Assets, including the Retail Leases identified on the Schedule of Retail Leases attached hereto having an aggregate Starting Receivable Balance of
$13,608,840.16 and the Related Titling Trust Assets with respect to those Retail Leases; (c) the rights, but not the obligations, of NFC under the Lease Purchase Agreement with respect to the Retail Leases included in the Initial Receivables; and
(d) the Seller’s rights, but not its obligations, under the Purchase Agreement and the Initial PA Assignment pursuant to Section 2.01 of the Purchase Agreement with respect to the Initial Receivables. 
  
 The foregoing sale does not constitute and is not intended to result in any
assumption by the Issuer of any obligation of the undersigned to the Obligors, Dealers, insurers or any other Person in connection with the Initial Receivables, the agreements with Dealers, any Insurance Policies or any agreement or instrument
relating to any of them. 
  
 This Initial PSA Assignment is made
pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained in the Pooling Agreement and is to be governed by the Pooling Agreement. 
  
 Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the Pooling Agreement.

  
 * * * * * 
  

 B-1 

 IN WITNESS WHEREOF, the undersigned has caused this Initial PSA Assignment to be duly executed as of
April 1, 2004. 
  

	
	NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION
	
	 By:

	 Name:

	 Title:

  

 B-2 

 EXHIBIT C 
 Form of Subsequent Transfer PSA Assignment 
  
 For value received, in accordance with the Pooling Agreement, dated as of April 1, 2004 (the “Pooling Agreement”), between Navistar Financial Retail Receivables Corporation, a Delaware corporation (the
“Seller”), and Navistar Financial 2004-A Owner Trust (the “Issuer”), the Seller does hereby sell, assign, transfer and otherwise convey unto the Issuer, without recourse, all right, title and interest of the Seller in, to
and under (a) the Retail Notes identified on the Schedule of Retail Notes attached hereto (which shall supplement the Composite Schedule of Receivables) having an aggregate Starting Receivable Balance of
$             and the Related Retail Note Assets with respect to those Retail Notes; (b) the beneficial interest in the Series 2004-A Portfolio Assets, including the Retail Leases
identified on the Schedule of Retail Leases attached hereto (which shall supplement the Composite Schedule of Receivables) having an aggregate Starting Receivable Balance of
$             and the Related Titling Trust Assets with respect to those Retail Leases; (c) the rights, but not the obligations, of NFC under the Lease Purchase Agreement with
respect to the Retail Leases included in those Subsequent Receivables; and (d) the Seller’s rights, but not its obligations, under the Purchase Agreement and the Subsequent Transfer PA Assignment pursuant to Section 2.01 of the Purchase
Agreement with respect to those Subsequent Receivables. 
  
 The
foregoing sale does not constitute and is not intended to result in any assumption by the Issuer of any obligation of the undersigned to the Obligors, Dealers, insurers or any other Person in connection with the Subsequent Receivables assigned
hereby, the agreements with Dealers, any Insurance Policies or any agreement or instrument relating to any of them. 
  
 This Subsequent Transfer PSA Assignment is made pursuant to and upon the representations, warranties and agreements on the part of the undersigned
contained in the Pooling Agreement and is to be governed by the Pooling Agreement. 
  
 Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the Pooling Agreement. 
  
 * * * * * 
  

 C-1 

 IN WITNESS WHEREOF, the undersigned has caused this Subsequent Transfer PSA Assignment to be duly
executed as of             , 200_. 
  

	
	NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION
	
	 By:

	 Name:

	 Title:

  

 C-2 

 APPENDIX A 
  
 PART I - DEFINITIONS 
  
 All terms used in this Appendix shall have the defined meanings set forth in this Part I when used in the Basic Documents, unless otherwise defined therein.

  
 Accountants’ Report: As defined in Section
3.02 of the Servicing Agreement. 
  
 Accounting Date:
With respect to a Distribution Date, the last day of the related Monthly Period, or, with respect to any initial Distribution Date that occurs in the same calendar month as the Closing Date, at the close of business on the Closing Date. 

 
 Act: An Act as specified in Section 11.3(a) of the
Indenture. 
  
 Actual Payment: With respect to a
Distribution Date and to a Receivable, all payments received by the Servicer from or for the account of the Obligor during the related Monthly Period (and, in the case of the first Distribution Date occurring after the date such Receivable is
transferred to the Trust, all payments received by the Servicer from or for the account of the Obligor on or after the applicable Cutoff Date) except for any Overdue Payments or Supplemental Servicing Fees. 
  
 Administration Agreement: That certain Administration Agreement, dated
as of the Closing Date among NFC, as Administrator, the Trust and the Indenture Trustee, as amended, modified and supplemented from time to time. 
  
 Administrative Purchase Payment: With respect to a Distribution Date and to an Administrative Receivable purchased as of the related Accounting
Date (a) that is a Retail Note, a release of all claims for reimbursement of Monthly Advances made on such Administrative Receivable plus a payment equal to the sum of (i) the sum of the Scheduled Payments on such Administrative Receivable due after
the Accounting Date, (ii) the amount of any reimbursements made pursuant to the last sentence of Section 2.14 of the Servicing Agreement with respect to such Administrative Receivable, (iii) all past due Scheduled Payments with respect to
which a Monthly Advance has not been made minus (iv) the Rebate minus (v) any Liquidation Proceeds with respect to such Administrative Receivable to the extent applied on or prior to the Accounting Date that are not reflected in items (i) through
(iii) and (b) that is a Retail Lease, a release of all claims for reimbursement of Monthly Advances made on such Administrative Receivable plus a payment equal to the sum of (i) the sum of the Scheduled Payments on such Administrative Receivable due
after the Accounting Date, including the amount of any TRAC Payment or the Obligor’s purchase option, (ii) the amount of any reimbursements made pursuant to the last sentence of Section 2.14 of the Servicing Agreement with respect to
such Receivable, and (iii) all past due Scheduled Payments with respect to which a Monthly Advance has not been made minus (iv) any Unearned Income minus (v) any Liquidation Proceeds with respect to such Administrative Receivable to the extent
applied on or prior to the Accounting Date that are not reflected in items (i) through (iii). 
  

 App. A-1 

 Administrative Receivable: As defined in Section 2.08 of the Servicing Agreement.

  
 Administrator: NFC or any successor Administrator under
the Administration Agreement. 
  
 Affiliate: With respect
to any specified Person, any other Person controlling, controlled by or under common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to
direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to
the foregoing. 
  
 Agency Office: The office of the Issuer
maintained pursuant to Section 3.2 of the Indenture. 
  
 Aggregate Losses: With respect to any calendar month, the sum of (i) the aggregate of the Receivable Balances of all Receivables newly designated during such calendar month as Liquidating Receivables, plus (ii) the aggregate
principal portion of Scheduled Payments due but not received with respect to all such Receivables prior to the date any such Receivable was designated a Liquidating Receivable minus (iii) Liquidation Proceeds collected during such calendar month
with respect to all Liquidating Receivables. 
  
 Aggregate
Class A Noteholders’ Interest Distributable Amount: With respect to any Distribution Date, the sum of the Class A Noteholders’ Interest Distributable Amounts for all classes of Class A Notes and the Class A Noteholders’ Interest
Carryover Shortfall as of the preceding Distribution Date. 
  
 Aggregate Note Principal Balance: With respect to the close of a Distribution Date, the sum of the Note Principal Balances for all classes of Notes. 
  
 Aggregate Receivables Balance: As of any date, the sum of the Receivables Balances of all outstanding Receivables
(other than Liquidating Receivables). 
  
 Aggregate Starting
Receivables Balance: As of any date of determination, the aggregate of the Starting Receivable Balances of the Initial Receivables as of the Initial Cutoff Date, which is $398,284,237.80 plus the aggregate of the Starting Receivable
Balances (as of the related Subsequent Cutoff Date) for all Subsequent Receivables sold to the Issuer on or prior to such date of determination. 
  
 Annual Percentage Rate or APR: In the case of Retail Notes, the annual percentage rate specified in the Contract related to such Retail Note
and, in the case of Retail Leases, the implicit interest rate in the Contract related to such Retail Lease calculated as an annual percentage rate on a constant yield to maturity basis. 
  
 Applicable Trustee: So long as the Aggregate Note Principal Balance is greater than zero and the Indenture has not
been discharged in accordance with its terms, the Indenture Trustee, and thereafter, the Owner Trustee. 
  

 App. A-2 

 Assignment: Any LPA Assignment, PA Assignment or PSA Assignment. 
  
 Authenticating Agent: JPMorgan Chase Bank or any successor appointed
by the Owner Trustee. 
  
 Authorized Officer: With respect
to the Issuer, any officer of the Owner Trustee who is authorized to act for the Owner Trustee in matters relating to the Issuer and who is identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture Trustee on the
Closing Date (as such list may be modified or supplemented from time to time thereafter) and, so long as the Administration Agreement is in effect, any Vice President or more senior officer of the Administrator who is authorized to act for the
Administrator in matters relating to the Issuer and to be acted upon by the Administrator pursuant to the Administration Agreement and who is identified on the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on
the Closing Date (as such list may be modified or supplemented from time to time thereafter) and with respect to any other Person, a Vice President or more senior officer of such Person who is authorized to act for such Person with respect to such
matters. 
  
 Available Purchase Amount: As of any
Subsequent Transfer Date, the excess, if any, of $600,000,000.00 over the Aggregate Starting Receivables Balance on (and before giving effect to any transfers of Receivables on) such Subsequent Transfer Date. 
  
 Backup Servicer: As defined in Section 6.06 of the Servicing
Agreement. 
  
 Basic Documents: The Trust Agreement, the
Certificate of Trust, the Purchase Agreement, each PA Assignment, the Pooling Agreement, each PSA Assignment, the Administration Agreement, the Note Depository Agreement, the Indenture (including any supplements thereto), the Servicing Agreement,
the Lease Purchase Agreement, each LPA Assignment, the Titling Trust Documents, each Schedule of Retail Notes and Schedule of Retail Loans and the other documents and certificates delivered in connection with each of the foregoing from time to time.

  
 Basic Servicing Fee: As defined in Section 2.09
of the Servicing Agreement. 
  
 Basic Servicing Fee Rate:
As defined in Section 2.09 of the Servicing Agreement. 
  
 Benefit Plan: Any one of (a) an employee benefit plan (as described in Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA, (b) a plan described in Section 4975(e)(1) of the Code or (c) any entity whose
underlying assets include plan assets by reason of a plan’s investment in such entity. 
  
 Book-Entry Note: Notes in which ownership and transfers shall be made through book entries by a Clearing Agency as described in Section 2.10 of the Indenture. 
  
 Business Day: Any day other than a Saturday, a Sunday or any other day
on which banking institutions in New York, New York or Chicago, Illinois are authorized or required by law to close. 
  

 App. A-3 

 Certificate: Any one of the certificates executed by the Issuer and authenticated by or on behalf
of the Owner Trustee in substantially the form set forth in Exhibit A to the Trust Agreement. 
  
 Certificate Distribution Account: The account designated as such, established and maintained pursuant to Section 5.1(a) of the Trust
Agreement. 
  
 Certificate of Title: With respect to a
Financed Vehicle, the certificate of title or other evidence of ownership of such Financed Vehicle issued by a registrar of titles in the jurisdiction in which such Financed Vehicle is registered. 
  
 Certificate of Trust: The certificate of trust of the Issuer
substantially in the form of Exhibit B to the Trust Agreement filed for the Trust pursuant to Section 3810(a) of the Statutory Trust Statute. 
  
 Certificate Register: The register of Certificates specified in Section 3.4 of the Trust Agreement. 
  
 Certificate Registrar: The registrar at any time of the Certificate
Register, appointed pursuant to Section 3.4(a) of the Trust Agreement. 
  
 Certificated Security: Shall have, as of any date, the meaning given to such term under the applicable UCC in effect on such date. 
  
 Certificateholder: A Person in whose name a Certificate is registered pursuant to the terms of the Trust Agreement.

  
 Claim: As defined in the Titling Trust Agreement.

  
 Class A Noteholders’ Interest Carryover Shortfall:
As of the close of any Distribution Date, the excess of the Aggregate Class A Noteholders’ Interest Distributable Amount for such Distribution Date over the amount that was actually deposited in the Note Distribution Account on the day
preceding such current Distribution Date in respect of interest on the Class A Notes. 
  
 Class A Noteholders’ Interest Distributable Amount: (a) With respect to the Class A-1 Notes and any Distribution Date, the product of (1) the outstanding principal balance of the Class A-1 Notes on the
preceding Distribution Date after giving effect to all payments of principal in respect of the Class A-1 Notes on such preceding Distribution Date (or, in the case of the first Distribution Date, the outstanding principal balance on the Closing
Date) and (2) the product of the Interest Rate for the Class A-1 Notes on such Distribution Date and a fraction, the numerator of which is the actual number of days from the most recent Distribution Date on which interest has been paid (or the
Closing Date, in the case of the initial period) to but excluding the current Distribution Date, and the denominator of which is 360, and (b) with respect to the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes and any Distribution Date,
the product of (1) the outstanding principal balance of such class of Notes on the preceding Distribution Date after giving effect to all payments of principal in respect of such class of Notes on such preceding Distribution Date (or, in the case of
the first Distribution Date, the outstanding principal balance 
  

 App. A-4 

 on the Closing Date) and (2) the product of the Interest Rate for such class of Notes and a fraction, the numerator of
which is 30 (or, in the case of the first Distribution Date, the actual days elapsed since the Closing Date to April 15, 2004), and the denominator of which is 360. 
  
 Class A Notes: Collectively, the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

  
 Class A-1 Notes: The Class A-1 1.08% Asset Backed Notes
in the aggregate principal amount of $108,000,000 issued pursuant to the Indenture. 
  
 Class A-2 Notes: The Class A-2 1.45% Asset Backed Notes in the aggregate principal amount of $175,000,000 issued pursuant to the Indenture. 
  
 Class A-3 Notes: The Class A-3 2.01% Asset Backed Notes in the aggregate principal amount of $154,000,000 issued
pursuant to the Indenture. 
  
 Class A-4 Notes: The Class
A-4 2.59% Asset Backed Notes in the aggregate principal amount of $127,000,000 issued pursuant to the Indenture. 
  
 Class B Notes: The Class B 2.46% Asset Backed Notes in the aggregate principal amount of $21,000,000 issued pursuant to the Indenture. 

 
 Class B Noteholders’ Interest Carryover Shortfall: As of the
close of any Distribution Date, the excess of (i) the Class B Noteholders’ Interest Distributable Amount for such Distribution Date over (ii) the amount that was actually deposited in the Note Distribution Account on the day preceding such
current Distribution Date in respect of interest on the Class B Notes. 
  
 Class B Noteholders’ Interest Distributable Amount: With respect to any Distribution Date, the sum of (i) the Class B Noteholders’ Monthly Interest Distributable Amount for such Distribution Date and (ii) the Class B
Noteholders’ Interest Carryover Shortfall as of the preceding Distribution Date. 
  
 Class B Noteholders’ Monthly Interest Distributable Amount: With respect to any Distribution Date, the product of (i) the outstanding principal balance of the Class B Notes on the preceding Distribution
Date after giving effect to all payments of principal in respect of the Class B Notes on such preceding Distribution Date (or, in the case of the first Distribution Date, the outstanding principal balance on the Closing Date) and (ii) the product of
the Interest Rate for the Class B Notes and a fraction, the numerator of which is 30 (or, in the case of the first Distribution Date, the actual days elapsed since the Closing Date to April 15, 2004), and the denominator of which is 360. 

 
 Class C Notes: The Class C 3.20% Asset Backed Notes in the
aggregate principal amount of $15,000,000 issued pursuant to the Indenture. 
  
 Class C Noteholders’ Interest Carryover Shortfall: As of the close of any Distribution Date, the excess of (i) the Class C Noteholders’ Interest Distributable Amount for such Distribution Date over
(ii) the amount that was actually deposited in the Note Distribution Account on the day preceding such current Distribution Date in respect of interest on the Class C Notes. 
  

 App. A-5 

 Class C Noteholders’ Interest Distributable Amount: With respect to any Distribution Date,
the sum of (i) the Class C Noteholders’ Monthly Interest Distributable Amount for such Distribution Date and (ii) the Class C Noteholders’ Interest Carryover Shortfall as of the preceding Distribution Date. 
  
 Class C Noteholders’ Monthly Interest Distributable Amount: With
respect to any Distribution Date, the product of (i) the outstanding principal balance of the Class C Notes on the preceding Distribution Date after giving effect to all payments of principal in respect of the Class C Notes on such preceding
Distribution Date (or, in the case of the first Distribution Date, the outstanding principal balance on the Closing Date) and (ii) the product of the Interest Rate for the Class C Notes and a fraction, the numerator of which is 30 (or, in the case
of the first Distribution Date, the actual days elapsed since the Closing Date to April 15, 2004), and the denominator of which is 360. 
  
 Clearing Agency: An organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act. The Clearing Agency shall
at all times be a “clearing corporation” as defined in Section 8-102(3) of the New York UCC. 
  
 Clearing Agency Participant: A securities broker, dealer, bank, trust company, clearing corporation or other financial institution or other Person
for whom from time to time a Clearing Agency effects book entry transfers and pledges of securities deposited with the Clearing Agency. 
  
 Closing: As defined in Section 2.03 of the Purchase Agreement. 
  
 Closing Date: April 1, 2004. 
  

Code: The Internal Revenue Code of 1986, as amended, and Treasury Regulations promulgated thereunder. 
  
 Code Collateral: Any property a security interest in which may be
perfected by filing under the applicable UCC. 
  
 Collateral: As defined in the granting clause of the Indenture. 
  
 Collateral Account: As defined in the Titling Trust Agreement. 
  
 Collateral Agency Agreement: As defined in the Titling Trust Agreement. 
  
 Collateral Agent: As defined in the Titling Trust Agreement. 
  
 Collateral Supplement: A supplement to the Collateral Agency Agreement
related to the Series 2004-A Portfolio Interest executed in accordance therewith. 
  

 App. A-6 

 Collected Amount: With respect to any Distribution Date, the sum of the following amounts with
respect to the related Monthly Period: (i) all Collections received by the Servicer during such Monthly Period (other than less than Full Prepayments with respect to Retail Leases, which amounts will be held in the Collection Account and applied in
the Monthly Period related to the prepaid Scheduled Payment), (ii) all Monthly Advances made by the Servicer pursuant to Section 2.14 of the Servicing Agreement and (iii) all Warranty Payments and Administrative Purchase Payments or the Optional
Purchase Proceeds; less an amount equal to the aggregate of the amounts representing reimbursement for Outstanding Monthly Advances and Liquidation Expenses pursuant to Section 8.2(b)(i) of the Indenture. 
  
 Collection Account: The account designated as such, established and
maintained pursuant to Section 2.02(a)(i) of the Servicing Agreement. 
  
 Collections: All amounts received from Obligors or otherwise in respect of Receivables during the related Monthly Period, whether constituting principal or interest, lease payments, payments in respect of
Residual Value, prepayments, proceeds of sales of Financed Vehicles, Insurance Proceeds, Liquidation Proceeds or otherwise, except for Supplemental Servicing Fees received on the Receivables and the Related Security. 
  
 Composite Schedule of Receivables: As defined in Section 3.04
of the Servicing Agreement. 
  
 Contract: With respect to a
Retail Note or Retail Lease, the related contract(s) or other agreement(s) with the related Obligor which set forth the terms of such Retail Note or Retail Lease as the case may be. 
  
 Contractual Obligation: As to any Person, any provision of any security issued by such Person or any agreement,
instrument or other undertaking to which such Person is a party or by which it or any of its property is bound. 
  
 Controlling Class: (a) So long as any Class A Notes are outstanding, the Class A Notes, (b) if the Class A Notes are no longer outstanding but the
Class B Notes are outstanding, the Class B Notes, (c) if the Class A Notes and the Class B Notes are no longer outstanding but the Class C Notes are outstanding, the Class C Notes and (d) if the Notes are no longer outstanding, the Certificates.

  
 Corporate Trust Office: With respect to the Indenture
Trustee, the Owner Trustee, the General Interest Trustee or the Portfolio Interest Trustee, the principal office at which at any particular time the corporate trust business of that Person shall be administered, which office at the Closing Date is
located at The Bank of New York, 101 Barclay Street, New York, New York 10286 with respect to the Indenture Trustee, at Chase Manhattan Bank USA, National Association, c/o JPMorgan Chase, 500 Stanton Christiana Road, OPS4/3rd Floor, Newark, Delaware 19713, Attn: Institutional Trust Services with respect to the Owner Trustee, at 227 West Monroe
Street, Suite 2600, Chicago, IL 60606, Attention: Global Corporate Trust Services Division with respect to the Portfolio Trustee, and at 222 West Monroe Street, Suite 2600, Chicago, IL 60606, Attention: Global Corporate Trust Services Division with
respect to the General Interest Trustee. 
  

 App. A-7 

 Custodian: NFC, as Servicer, or another custodian named from time to time in the Servicing
Agreement. 
  
 Cutoff Date: With respect to an Initial
Receivable, the Initial Cutoff Date, and with respect to a Subsequent Receivable, the related Subsequent Cutoff Date. 
  
 Dealer: (i) a Person with whom International has a valid dealer sales/maintenance agreement to sell International Vehicles, (ii) a Person with whom
NFC has an agreement to extend new or used truck, truck chassis, bus or trailer floor plan financing terms, (iii) a truck, bus, or trailer equipment manufacturer with whom International has a valid agreement to sell International Vehicles.

  
 Dealer Liability: With respect to any Receivable, all
rights, claims and actions of Navistar Financial against the Dealer which sold the Financed Vehicle(s) which gave rise to such Receivable and any successor Dealer for recourse or reimbursement of any losses, costs or expenses arising as a result of
a default by the Obligor on such Receivable. 
  
 Default:
Any occurrence that is, or with notice or the lapse of time or both would become, an Event of Default. 
  
 Definitive Notes: The Notes specified in Section 2.12 of the Indenture. 
  
 Delaware Trustee: As defined in the Series 2004-A Portfolio Supplement. 
  
 Delinquency Percentage: With respect to a calendar month, an amount
equal to the aggregate Remaining Gross Balance of all outstanding Receivables which are 61 days or more past due as of the last day of such calendar month, as determined in accordance with the Servicer’s normal practices, expressed as a
percentage of the aggregate Remaining Gross Balance of all outstanding Receivables on the last day of such calendar month. 
  
 Designated Account Property: The Designated Accounts, all amounts and investments held from time to time in any Designated Account (whether in the
form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise) including the Reserve Account Initial Deposit and all proceeds of the foregoing. 
  
 Designated Accounts: Collectively, the Collection Account, the Reserve
Account, the Note Distribution Account, the Negative Carry Account and the Pre-Funding Account. 
  
 Designated Collateral: As defined in the Titling Trust Agreement. 
  
 Designated Receivables: As defined in Section 2.01 of the Purchase Agreement. 
  
 Designated Retail Leases: As defined in Section 2.03 of the
Lease Purchase Agreement. 
  

 App. A-8 

 Determination Date: The day that is two Business Days prior to the Distribution Date. 

 
 Distribution Date: With respect to a Monthly Period, the 15th day
of the next succeeding calendar month or, if such 15th day is not a Business Day, the next succeeding Business Day, commencing April 15, 2004. 
  
 Dollars or $: Lawful currency of the United States of America. 
  
 Electing Holder: As defined in the Titling Trust Agreement. 
  
 Eligible Deposit Account: Either (i) a segregated account with an
Eligible Institution or (ii) a segregated trust account with the corporate trust department of a depository institution organized under the laws of the United States of America or any one of the states thereof or the District of Columbia (or any
domestic branch of a foreign bank), having corporate trust powers and acting as trustee for funds deposited in such account so long as any of the securities of such depository institution have a credit rating from each Rating Agency in one of its
generic rating categories which signifies investment grade for long-term unsecured debt. 
  
 Eligible Institution: A depository institution organized under the laws of the United States of America or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank),
(A) which has either (1) a long-term unsecured debt rating of at least “AA-” from S&P and “A2” from Moody’s or (2) a short-term unsecured debt or certificate of deposit rating of at least “A-1+” from S&P
and “P-1” from Moody’s, (B) whose deposits are insured by the FDIC and (C) having a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. 
  
 Eligible Investments: Book-entry securities, negotiable instruments or
securities represented by instruments in bearer or registered form which evidence: 
  
 (i) direct obligations of, and obligations fully guaranteed as to timely payment of principal and interest by, the United States of
America; 
  
 (ii) demand deposits, time deposits
or certificates of deposit of any depository institution or trust company incorporated under the laws of the United States of America or any state thereof (or any domestic branch of a foreign bank) and subject to supervision and examination by
Federal or State banking or depository institution authorities; provided, however, that at the time of the investment or contractual commitment to invest therein, the commercial paper or other short-term unsecured debt obligations
(other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) thereof shall have a credit rating from each of the Rating Agencies in the highest investment category for
short-term unsecured debt obligations or certificates of deposit granted thereby; 
  
 (iii) commercial paper having, at the time of the investment or contractual commitment to invest therein, a rating from each of the Rating
Agencies in the highest investment category for short-term unsecured debt obligations or certificates of deposit granted thereby; 
  

 App. A-9 

 (iv) investments in money market or common trust funds having a rating from each of the
Rating Agencies in the highest investment category for short-term unsecured debt obligations or certificates of deposit granted thereby (including funds for which the Indenture Trustee or the Owner Trustee or any of their respective affiliates is
investment manager or advisor, so long as such fund shall have such rating); 
  
 (v) bankers’ acceptances issued by any depository institution or trust company referred to in clause (ii) above; 
  
 (vi) repurchase obligations with respect to any security that is a direct obligation of, or fully guaranteed by, the United States of
America or any agency or instrumentality thereof the obligations of which are backed by the full faith and credit of the United States of America, in either case entered into with (A) a depository institution or trust company (acting as principal)
described in clause (ii) or (B) a depository institution or trust company the deposits of which are insured by FDIC or the counterparty for which has a rating from each of the Rating Agencies in the highest investment category for short-term
unsecured debt obligations, the collateral for which is held by a custodial bank for the benefit of the Issuer or the Indenture Trustee, is marked to market daily and is maintained in an amount that exceeds the amount of such repurchase obligation,
and which requires liquidation of the collateral immediately upon the amount of such collateral being less than the amount of such repurchase obligation (unless the counterparty immediately satisfies the repurchase obligation upon being notified of
such shortfall); 
  
 (vii) commercial paper
master notes having, at the time of the investment or contractual commitment to invest therein, a rating from each of the Rating Agencies in the highest investment category for short-term unsecured debt obligations; and 
  
 (viii) any other investment permitted by each of the Rating
Agencies. 
  
 in each case, other than as permitted by the Rating Agencies,
maturing not later than the Business Day immediately preceding the next Distribution Date. 
  
 Eligible Restructured Receivable: Any Receivable which (i) was amended or restructured for credit reasons at least 12 months prior to the applicable Cutoff Date, (ii) is not owed by an Obligor that is the
subject of a bankruptcy or insolvency proceeding and (iii) since its amendment or restructuring, has not been greater than 60 days past due (measured from the date of any Scheduled Payment). 
  
 Equal Payment Fully Amortizing Receivable: A Retail Note that provides
for equal monthly payments that fully amortize the amount financed over the original term to maturity. 
  
 ERISA: The Employee Retirement Income Security Act of 1974, as amended. 
  
 Event of Default: An event described in Section 5.1 of the Indenture. 
  
 Exchange Act: The Securities Exchange Act of 1934, as amended.

  

 App. A-10 

 Executive Officer: With respect to any corporation, the Chief Executive Officer, Chief Operating
Officer, Chief Financial Officer, President, Executive Vice President, any Vice President, the Secretary, the Treasurer, Assistant Secretary or Assistant Treasurer of such corporation; and with respect to any partnership, any general partner
thereof. 
  
 Expenses: The expenses described in Section
6.9 of the Trust Agreement. 
  
 FDIC: The Federal Deposit
Insurance Corporation or any successor entity thereto. 
  
 Final Scheduled Distribution Date: With respect to a class of Securities, the Distribution Date in the month set forth below opposite such Securities: 
  

			
	 Class A-1 Notes:
	  	 April 2005

	 Class A-2 Notes:
	  	 January 2007

	 Class A-3 Notes:
	  	 August 2008

	 Class A-4 Notes:
	  	 March 2011

	 Class B Notes:
	  	 March 2011

	 Class C Notes:
	  	 March 2011

  
 Finance Lease:
A Retail Lease that is not a TRAC Lease and which is required by GAAP to be capitalized on the balance sheet of the related Obligor and which gives the Obligor the right to purchase the Financed Vehicle at lease expiration for $1,000 or less.

  
 Financed Vehicle: A new or used medium or heavy duty
truck, truck chassis bus or trailer, together with any accessions thereto which were financed with the proceeds of the related Receivable, in the case of a Retail Note, securing an Obligor’s indebtedness under a Receivable and, in the case of a
Retail Lease, the new or used medium or heavy duty truck, truck chassis, bus or trailer subject to the lease. A Receivable may be secured by one or more Financed Vehicles. 
  
 Financial Asset: The meaning given such term in Revised Article 8. As used herein, the Financial Asset “related
to” a Security Entitlement is the Financial Asset in which the entitlement holder (as defined in Revised Article 8) holding such Security Entitlement has the rights and property interest specified in Revised Article 8. 
  
 Financial Parties: The Noteholders and the Certificateholders.

  
 Full Prepayment: With respect to a Distribution Date,
that portion of an Actual Payment (other than the Scheduled Payment), which with respect to (i) any Retail Note, is sufficient to prepay such Receivable in full (after application of the Scheduled Payment), (ii) a Retail Note secured by multiple
Financed Vehicles, equals the unpaid principal amount of the Retail Note relating to any Financed Vehicle, as determined by the Servicer in accordance with its customary servicing procedures or, (iii) a Retail Lease, is sufficient to pay in full the
Outstanding Capitalized Cost on the Financed Vehicle related thereto. 
  
 Funding Percentage: With respect to any Distribution Date, the percentage derived from the fraction the numerator of which is the Pre-Funded Amount and the denominator of which is the sum of the Aggregate Receivables Balance and the
Pre-Funded Amount, in each case, as of the last day of the related Monthly Period. 
  

 App. A-11 

 Funding Period: The period beginning on and including the Closing Date and ending on the first to
occur of (a) the Distribution Date on which the amount on deposit in the Pre-Funding Account (after giving effect to any transfers therefrom in connection with the transfer of Subsequent Receivables to the Issuer on such Distribution Date) is not
greater than $100,000, (b) the date on which an Event of Default or a Servicer Default occurs, (c) the date on which an Insolvency Event occurs with respect to the Seller or NFC or (d) the close of business on the September 2004 Distribution Date.

  
 Further Transfer and Servicing Agreements: The Pooling
Agreement, including each PSA Assignment, the Servicing Agreement, the Trust Agreement and the Indenture. 
  
 GAAP: Generally accepted accounting principles in the United States of America in effect from time to time. 
  
 General Collection Account: As defined in the Titling Trust Agreement.

  
 General Interest: As defined in the Titling Trust
Agreement. 
  
 General Interest Trustee: As defined in the
Titling Trust Agreement. 
  
 General Titling Trust Assets:
Shall have the meaning given to the term “General Trust Assets” in the Titling Trust Agreement. 
  
 GI Holder: A holder of a certificate representing a divided beneficial interest in the General Interest. 
  
 Governmental Authority: Any nation or government, any state, province
or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 
  
 Grant: To mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create, and
grant a lien upon and a security interest in and right of set-off against, deposit, set over and confirm pursuant to the Indenture. A Grant of the Collateral or of any other agreement or instrument shall include all rights, powers and options (but
none of the obligations) of the Granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for lease payments and principal and interest payments in respect of, the Collateral and all
other moneys payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the Granting party or otherwise and generally to do
and receive anything that the Granting party is or may be entitled to do or receive thereunder or with respect thereto. 
  
 Grantor: As defined in the Titling Trust Agreement. 
  

 App. A-12 

 Gross Balance: As of any date of determination, (i) with respect to a Retail Note, the unpaid
principal balance of such Retail Note as of such date plus, with respect to a Retail Note classified as a “finance charge-included contract”, the finance charges included in the payments due with respect to such Retail Note on or after
such date, and (ii) with respect to a Retail Lease, the aggregate remaining periodic rental payments plus the TRAC Payment or purchase option price set forth in such Retail Lease (which, for such purposes, shall be assumed to be made on the last day
of the lease term). 
  
 Guaranty: With respect to any
Receivable, a personal or commercial guaranty of an Obligor’s performance with respect to such Receivable. 
  
 Harco Leasing: Harco Leasing Company, Inc., a Delaware corporation and its successors and assigns. 
  
 Holder: The Person in whose name a Note is registered on the Note
Register. 
  
 Indemnified Parties: The Persons specified in
Section 6.9 of the Trust Agreement. 
  
 Indenture:
The Indenture, between the Issuer and the Indenture Trustee, dated as of the Closing Date, as the same may from time to time be amended, modified or otherwise supplemented. 
  
 Indenture Trustee: The Bank of New York, a New York banking corporation, not in its individual capacity but solely as
trustee under the Indenture, or any successor indenture trustee under the Indenture. 
  
 Independent: When used with respect to any specified Person, that the Person (i) is in fact independent of the Issuer, any other obligor upon the Notes, the Seller and any Affiliate of any of the foregoing
Persons, (ii) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other obligor, the Seller or any Affiliate of any of the foregoing Persons and (iii) is not connected with the Issuer, any
such other obligor, the Seller or any Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or person performing similar functions. 
  
 Independent Certificate: A certificate or opinion to be delivered to
the Indenture Trustee under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.1 of the Indenture, made by an Independent appraiser or other expert appointed by an Issuer Order and approved
by the Indenture Trustee in the exercise of reasonable care, and such opinion or certificate shall state that the signer has read the definition of “Independent” and that the signer is Independent within the meaning thereof. 
  
 Indirect Participant: A securities broker, dealer, bank, trust company
or other Person that clears through or maintains a custodial relationship with a Clearing Agency Participant, either directly or indirectly. 
  
 Initial Aggregate Starting Receivables Balance: $398,284,237.80. 
  

 App. A-13 

 Initial Beneficiary: As defined in the Titling Trust Agreement. 
  
 Initial Capitalized Cost: With respect to a Retail Lease, the
aggregate amount of financing provided for the related Financed Vehicle or Vehicles, including insurance premiums, service and warranty contracts, federal excise taxes, sales taxes, and other items customarily financed as part of Retail Leases and
related costs. 
  
 Initial Cutoff Date: March 1, 2004.

  
 Initial LPA Assignment: As defined in Section
2.01 of the Lease Purchase Agreement. 
  
 Initial PA
Assignment: As defined in Section 2.01 of the Purchase Agreement. 
  
 Initial PSA Assignment: As defined in Section 2.01 of the Pooling Agreement. 
  
 Initial Receivables: Receivables transferred to the Trust on the Closing Date as set forth on the Schedule of Retail Notes and the Schedule of
Retail Leases attached to the Initial PSA Assignment. 
  
 Insolvency Event: With respect to a specified Person, (i) the entry of a decree or order by a court, agency or supervisory authority having jurisdiction in the premises for the appointment of a conservator, receiver or liquidator for
such Person, in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings, or for the winding-up or liquidation of such Person’s affairs, and the continuance of any such decree or order unstayed and in
effect for a period of 60 consecutive days; (ii) the consent by such Person to the appointment of a conservator, receiver or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities or similar proceedings of or
relating to such Person or of or relating to substantially all of such Person’s property, or (iii) such Person shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any
applicable insolvency or reorganization statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations. 
  
 Insolvency Laws: The Bankruptcy Code and any other applicable federal or state bankruptcy, insolvency or other similar law. 
  
 Insurance Policy: With respect to any Receivable, an insurance policy
covering physical damage, credit life, credit disability, theft, mechanical breakdown or similar event to each Financed Vehicle securing such Receivable. 
  
 Insurance Proceeds: Proceeds of any Insurance Policy with respect to such Receivable. 
  
 Interest Rate: With respect to the Class A-1 Notes, 1.08% per annum, with respect to the Class A-2 Notes, 1.45% per
annum, with respect to the Class A-3 Notes, 2.01% per annum, with respect to the Class A-4 Notes, 2.59% per annum, with respect to the Class B Notes, 2.46% per annum and with respect to the Class C Notes, 3.20% per annum. 
  

 App. A-14 

 Interested Parties: The Issuer and each other party identified or described in the Purchase
Agreement or the Further Transfer and Servicing Agreements as having an interest as owner, trustee, secured party or Financial Party with respect to the Purchased Property. 
  
 International: International Truck and Engine Corporation, a Delaware corporation, and its successors and assigns.

  
 International Purchase Obligations: Certain obligations
of International, subject to limitations, to purchase Financed Vehicles securing Liquidating Receivables pursuant to Article VI and other provisions of the Master Intercompany Agreement by and between Navistar Financial and International
dated as of April 26, 1993, as such Master Intercompany Agreement may be amended, supplemented, restated or otherwise modified. 
  
 International Vehicle: Any truck, truck chassis, bus or trailer produced by or for International or its Subsidiaries or sold by International or
its Subsidiaries to Dealers, including any body parts or accessions attached thereto. 
  
 Investment Company Act: The Investment Company Act of 1940, as amended. 
  
 Investment Earnings: Investment earnings on funds deposited in the Designated Accounts, net of losses and investment expenses, during the
applicable Monthly Period. 
  
 Issuer: The party named as
such in the Pooling Agreement and the Indenture until a successor replaces it and, thereafter, means the successor and, for all purposes of any provision contained therein and required by the TIA, each other obligor on the Notes. 
  
 Issuer Documents: As defined in the Recitals of the Administration
Agreement. 
  
 Issuer Order and Issuer Request: A written
order or request signed in the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture Trustee. 
  
 Lease Purchase Agreement: The Lease Purchase Agreement, dated as of the Closing Date, by and between Harco Leasing and Navistar Financial.

  
 Lease Purchase Closing: As defined in Section
2.03 of the Lease Purchase Agreement. 
  
 Lease Purchase
Date: As defined in Section 2.02 of the Lease Purchase Agreement. 
  
 Lease Purchase Price: As defined in Section 2.03 of the Lease Purchase Agreement. 
  
 Lien: Any security interest, lien, charge, pledge, equity or encumbrance of any kind other than liens for taxes not yet due and payable,
mechanics’ liens, any liens that attach by operation of law, and any liens being contested by appropriate measures. 
  
 Liquidating Receivable: A Receivable (i) as to which the Servicer (a) has reasonably determined, in accordance with its customary servicing
procedures, that eventual payment of amounts owing on such Receivable is unlikely, or (b) has repossessed the Financed Vehicle or all Financed Vehicles securing the Receivable or (ii) as to which any related Scheduled Payment is at least 210 days
overdue. 
  

 App. A-15 

 Liquidation Expenses: With respect to a Liquidating Receivable, an amount not to exceed $750 (or
such greater amount as the Servicer determines necessary in accordance with its customary procedures to refurbish and dispose of a repossessed Financed Vehicle) as an allowance for amounts charged to the account of the Obligor, in keeping with the
Servicer’s customary procedures, for repossession, refurbishment and disposition of the Financed Vehicle including out-of-pocket costs related to the liquidation. 
  
 Liquidation Proceeds: With respect to a Liquidating Receivable, all amounts realized with respect to such Receivable,
including the benefits of any lease assignments, Insurance Proceeds, proceeds from any Dealer Liability, proceeds from any International Purchase Obligations and proceeds from any Guaranties, net of amounts that are required to be refunded to the
Obligor on such Receivable. 
  
 London Business Day: Any
day on which dealings in deposits in United States Dollars are transacted in the London bank market. 
  
 Low APR Receivable: A Receivable that has an APR that is less than the Required Rate. 
  
 LPA Assignment: The Initial LPA Assignment and any subsequent Transfer LPA Assignment. 
  
 Material Adverse Effect: With respect to a Person, a material adverse
effect on (a) the ability of such Person to perform its obligations under any of the Basic Documents or (b) the validity or enforceability of any of the Basic Documents or the rights or remedies of any other Person thereunder. 
  
 Maximum Negative Carry Amount: With respect to the Closing Date and
any Distribution Date, the product of (i) the excess of (a) the weighted average of the Interest Rates on the Notes, as of such date over (b) 0.75%, multiplied by (ii) the amount on deposit in the Pre-Funding Account on such date multiplied by (iii)
the fraction of a year represented by the number of days from such date until the end of the Funding Period (calculated on the basis of a 360-day year of twelve 30-day months). 
  
 Monthly Advance: As defined in Section 2.14 of the Servicing Agreement. 
  
 Monthly Period: With respect to a Determination Date and a Record
Date, the calendar month preceding the month in which such date occurs. With respect to an Accounting Date, the calendar month in which such Accounting Date occurs. With respect to a Distribution Date, the calendar month preceding the month in which
such Distribution Date occurs except that the Monthly Period relating to the first Distribution Date shall be the period from the Initial Cutoff Date to the last day of the calendar month immediately preceding the first Distribution Date.

  
 Monthly Remittance Conditions: As defined in Section
2.12 of the Servicing Agreement. 
  

 App. A-16 

 Moody’s: Moody’s Investors Service or its successor. 
  
 Navistar Financial or NFC: Navistar Financial Corporation, a Delaware
corporation, and its successors and assigns. 
  
 Negative Carry
Account: The account designated as such, established and maintained pursuant to Section 2.02(a)(vi) of the Servicing Agreement. 
  
 Negative Carry Account Initial Deposit: Cash or Eligible Investments having a value of $1,008,553.41. 
  
 Negative Carry Account Property: As defined in the Granting Clause of
the Indenture. 
  
 Negative Carry Amount: With respect to
any Distribution Date, the excess (if any) of (i) the product of (a) the Noteholders’ Interest Distributable Amount for such Distribution Date multiplied by (b) the Funding Percentage for such Distribution Date over (ii) the Investment Earnings
on amounts in the Pre-Funding Account during the related Monthly Period. 
  
 New York UCC: The UCC as in effect in the State of New York. 
  
 NFRRC: Navistar Financial Retail Receivables Corporation, a Delaware corporation, and its successors and assigns. 
  
 NIC: Navistar International Corporation, a Delaware corporation, and
its successors and assigns. 
  
 Note Depository: The
depositary from time to time selected by the Indenture Trustee on behalf of the Issuer in whose name the Notes are registered prior to the issue of Definitive Notes. The first Note Depository shall be Cede & Co., the nominee of the initial
Clearing Agency. 
  
 Note Depository Agreement: The
agreement, dated as of the Closing Date, among the Issuer, the Indenture Trustee and The Depository Trust Company, as the initial Clearing Agency relating to the Notes, substantially in the form of Exhibit D to the Indenture, as the same may
be amended and supplemented from time to time. 
  
 Note
Distribution Account: The account designated as such, established and maintained pursuant to Section 2.02(a)(ii) of the Servicing Agreement. 
  
 Note Owner: With respect to a Book-Entry Note, the Person who is the beneficial owner of such Book-Entry Note, as reflected on the books of the
Clearing Agency, or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an Indirect Participant, in each case in accordance with the rules of such Clearing Agency). 

 
 Note Pool Factor: With respect to any class of Notes and any
Distribution Date, a seven-digit decimal figure computed by the Servicer which is equal to the Note Principal Balance for such class as of the close of such Distribution Date divided by the initial Note Principal Balance for such class. 

 

 App. A-17 

 Note Principal Balance: With respect to any class of Notes and any Distribution Date, the initial
aggregate principal balance of such class of Notes, reduced by all previous payments to the Noteholders of such class in respect of principal of such Notes, other than the Noteholders’ Prepayment Premium. 
  
 Note Register: With respect to any class of Notes, the register of
such Notes maintained pursuant to Section 2.4(a) of the Indenture. 
  
 Note Registrar: The registrar at any time of the Note Register, appointed pursuant to Section 2.4 of the Indenture. 
  
 Noteholders’ Interest Distributable Amount: With respect to any Distribution Date, the sum of the Aggregate
Class A Noteholders’ Interest Distributable Amount, the Class B Noteholders’ Interest Distributable Amount and the Class C Noteholders’ Interest Distributable Amount. 
  
 Noteholders: Holders of record of the Notes pursuant to the Indenture and, with respect to any class of Notes,
holders of record of such class of Notes pursuant to the Indenture. 
  
 Noteholders’ Prepayment Premium: With respect to (i) the Class A-1 Notes, an amount equal to the excess, if any, discounted as described below, of (a) the amount of interest that would have accrued on the portion of the
remaining Pre-Funded Amount to be paid to the Noteholders of the Class A-1 Notes pursuant to Section 8.2(e) of the Indenture (the “Class A-1 Note Prepayment Amount”) at the Interest Rate of such class during the period commencing on
and including the Distribution Date on which such Class A-1 Note Prepayment Amount is required to be paid to but excluding July 15, 2004, over (b) the amount of interest that would have accrued on such Class A-1 Note Prepayment Amount over the same
period at a per annum rate of interest equal to the bond equivalent yield to maturity on the Determination Date preceding such Distribution Date on the United States Treasury Bill due July 15, 2004 (such excess to be discounted on a monthly basis to
present value to such Distribution Date at the yield described in clause (i)(b) above), (ii) the Class A-2 Notes, an amount equal to the excess, if any, discounted as described below, of (a) the amount of interest that would have accrued on the
portion of the remaining Pre-Funded Amount to be paid to the Noteholders of the Class A-2 Notes pursuant to Section 8.2(e) of the Indenture (the “Class A-2 Note Prepayment Amount”) at the Interest Rate of such class during the
period commencing on and including the Distribution Date on which such Class A-2 Note Prepayment Amount is required to be paid to but excluding April 15, 2005, over (b) the amount of interest that would have accrued on such Class A-2 Note Prepayment
Amount over the same period at a per annum rate of interest equal to the bond equivalent yield to maturity on the Determination Date preceding such Distribution Date on the 1- 5/8% United States Treasury Note due April 30, 2005 (such excess to be discounted on a monthly basis to present value to such Distribution Date at the yield described in clause
(ii)(b) above), (iii) the Class A-3 Notes, an amount equal to the excess, if any, discounted as described below, of (a) the amount of interest that would have accrued on the portion of the remaining 
  

 App. A-18 

 Pre- Funded Amount to be paid to the Noteholders of the Class A-3 Notes pursuant to Section 8.2(e) of the
Indenture (the “Class A-3 Note Prepayment Amount”) at the Interest Rate of such class during the period commencing on and including the Distribution Date on which such Class A-3 Note Prepayment Amount is required to be paid to but
excluding April 15, 2006 over (b) the amount of interest that would have accrued on such Class A-3 Note Prepayment Amount over the same period at a per annum rate of interest equal to the bond equivalent yield to maturity on the Determination Date
preceding such Distribution Date on the 4 5/8% United States Treasury Note due May 15, 2006 (such excess to be
discounted on a monthly basis to present value to such Distribution Date at the yield described in clause (iii)(b) above), (iv) the Class A-4 Notes, an amount equal to the excess, if any, discounted as described below, of (a) the amount of interest
that would have accrued on the portion of the remaining Pre-Funded Amount to be paid to the Noteholders of the Class A-4 Notes pursuant to Section 8.2(e) of the Indenture (the “Class A-4 Note Prepayment Amount”) at the Interest Rate
of such class during the period commencing on and including the Distribution Date on which such Class A-4 Note Prepayment Amount is required to be paid to but excluding May 15, 2007, over (b) the amount of interest that would have accrued on such
Class A-4 Note Prepayment Amount over the same period at a per annum rate of interest equal to the bond equivalent yield to maturity on the Determination Date preceding such Distribution Date on the 4 3/8% United States Treasury Note due May 15, 2007 (such excess to be discounted on a monthly basis to present value to such Distribution Date at the yield
described in clause (iv)(b) above), (v) the Class B Notes, an amount equal to the excess, if any, discounted as described below, of (a) the amount of interest that would have accrued on the portion of the remaining Pre-Funded Amount to be paid to
the Noteholders of the Class B Notes pursuant to Section 8.2(e) of the Indenture (the “Class B Note Prepayment Amount”) at the Interest Rate of such class during the period commencing on and including the Distribution Date on which
such Class B Note Prepayment Amount is required to be paid to but excluding June 15, 2006, over (b) the amount of interest that would have accrued on such Class B Note Prepayment Amount over the same period at a per annum rate of interest equal to
the bond equivalent yield to maturity on the Determination Date preceding such Distribution Date on the 4 5/8%
United States Treasury Note due May 15, 2006 (such excess to be discounted on a monthly basis to present value to such Distribution Date at the yield described in clause (v)(b) above) and (vi) the Class C Notes, an amount equal to the excess, if
any, discounted as described below, of (a) the amount of interest that would have accrued on the portion of the remaining Pre-Funded Amount to be paid to the Noteholders of the Class C Notes pursuant to Section 8.2(e) of the Indenture (the
“Class C Note Prepayment Amount”) at the Interest Rate of such class during the period commencing on and including the Distribution Date on which such Class C Note Prepayment Amount is required to be paid to but excluding June 15, 2006,
over (b) the amount of interest that would have accrued on such Class C Note Prepayment Amount over the same period at a per annum rate of interest equal to the bond equivalent yield to maturity on the Determination Date preceding such Distribution
Date on the 4 5/8% United States Treasury Note due May 15, 2006 (such excess to be discounted on a monthly basis
to present value to such Distribution Date at the yield described in clause (vi)(b) above). 
  
 Noteholders’ Principal Carryover Shortfall: As of the close of any Distribution Date, the excess, if any, of Noteholders’ Principal
Distributable Amount for such Distribution Date over the amount that was actually deposited in the Note Distribution Account on the day preceding such Distribution Date in respect of principal. 
  

 App. A-19 

 Noteholders’ Principal Distributable Amount: For any Distribution Date, the lesser of (x) the
sum of (i) the Principal Distributable Amount, (ii) the Noteholders’ Principal Carryover Shortfall for the immediately preceding Distribution Date and (iii) on the Final Scheduled Distribution Date for a class of Notes, the amount necessary to
reduce the Note Principal Balance with respect to such class of Notes to zero and (y) the sum of the Note Principal Balances with respect to each outstanding class of Notes. 
  
 Notes: Collectively, the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B
Notes and the Class C Notes. 
  
 Notice of Default: As
defined in Section 5.1(d) of the Indenture. 
  
 Obligor: (i) with respect to any Retail Note, the purchaser or any co-purchaser of the related Financed Vehicle or Financed Vehicles or any other Person, other than the maker of a Guaranty, who owes payments under such Receivable and
(ii) with respect to any Retail Lease, the lessee or any co-lessee of the related Financed Vehicle or Financed Vehicles or any other Person, other than the maker of a Guaranty, who owes payments under such Receivable. 
  
 Officer’s Certificate: A certificate signed by any Authorized
Officer of the Issuer, under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.1 of the Indenture, and delivered to the Indenture Trustee. Unless otherwise specified, any reference in the
Indenture to an officer’s certificate shall be to an Officer’s Certificate of any Authorized Officer of the Issuer. Where an Officer’s Certificate is required to be delivered by any other Person, a certificate signed by any Authorized
Officer of such Person. 
  
 Opinion of Counsel: A written
opinion of counsel, who may, except as otherwise expressly provided, be an employee of the Seller or the Servicer. In addition, for purposes of the Indenture: (i) such counsel shall be satisfactory to the Indenture Trustee; (ii) the opinion shall be
addressed to the Indenture Trustee as Indenture Trustee and (iii) the opinion shall comply with any applicable requirements of Section 11.1 of the Indenture and shall be in form and substance satisfactory to the Indenture Trustee. 

 
 Optional Purchase Proceeds: The amount specified in the second or
third sentence, as applicable, of Section 4.01 of the Pooling Agreement. 
  
 Other Titling Trust Parties: The Titling Trust, the Titling Trustees, the Collateral Agent, and Harco Leasing. 
  
 Outstanding: With respect to the Notes, as of the date of determination, all Notes theretofore authenticated and delivered under the Indenture
except: 
  
 (i) Notes theretofore canceled by the
Indenture Trustee or delivered to the Indenture Trustee for cancellation; 
  
 (ii) Notes or portions thereof the payment for which money in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the Holders of such Notes; provided,
however, that if such Notes are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture or provision therefor, satisfactory to the Indenture Trustee, has been made; and 
  

 App. A-20 

 (iii) Notes in exchange for or in lieu of other Notes which have been authenticated and
delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a protected purchaser; 
  
 provided, however, that in determining whether the Holders of the requisite Outstanding Amount of the Controlling Class have given any request, demand,
authorization, direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons shall be disregarded and deemed not
to be Outstanding, except that, in determining whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that the Indenture Trustee knows to be so owned
shall be so disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgor’s right so to act with respect to such Notes and
that the pledgee is not the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons. 
  
 Outstanding Amount: As of any date, the aggregate principal amount of all Notes, or a class of Notes, as applicable, Outstanding at such date.
Payment of Noteholders’ Prepayment Premium to Holders of Outstanding Notes will not reduce the Outstanding Amount of the Notes. 
  
 Outstanding Capitalized Cost: With respect to a Retail Lease, the amount to which the Initial Capitalized Cost of the related Financed Vehicle has
been amortized at the APR by the periodic lease payments on such Financed Vehicle and any purchase payments or, in the case of a TRAC Lease, the TRAC Payment made upon expiration of such TRAC Lease. 
  
 Outstanding Monthly Advances: As of an Accounting Date with respect to
a Receivable, the sum of all Monthly Advances made as of or prior to such Accounting Date minus all payments or collections as of or prior to such Accounting Date which are specified in Section 2.14 of the Servicing Agreement as reducing
Outstanding Monthly Advances with respect to such Receivable. 
  
 Overdue Payment: With respect to a Distribution Date and to a Receivable, all payments received during the related Monthly Period in excess of any Supplemental Servicing Fees, to the extent of the Outstanding Monthly Advances
relating to such Receivable. 
  
 Owner: For purposes of the
Purchase Agreement, the Pooling Agreement and the Servicing Agreement, the “Owner” of a Receivable means (i) NFRRC until the execution and delivery of the Further Transfer and Servicing Agreements and (ii) thereafter, the Issuer; provided,
that NFC or NFRRC, as applicable, shall be the “Owner” of any Receivable from and after the time that such Person shall acquire such Receivable, whether pursuant to Section 5.04 of the Purchase Agreement, Section 2.08 of the
Servicing Agreement, any other provision of the Further Transfer and Servicing Agreements or otherwise. 
  

 App. A-21 

 Owner Trust Estate: All right, title and interest of the Issuer in and to the property and rights
assigned to the Issuer pursuant to Article II of the Pooling Agreement, all funds on deposit from time to time in the Collection Account, the Pre-Funding Account, the Negative Carry Account, the Reserve Account and the Certificate
Distribution Account and all other property of the Issuer from time to time, including any rights of the Issuer pursuant to the Pooling Agreement, the Servicing Agreement and the Administration Agreement. 
  
 Owner Trustee: Chase Manhattan Bank USA, National Association, not in
its individual capacity but solely as Owner Trustee under the Trust Agreement, or any successor trustee under the Trust Agreement. 
  
 PA Assignment: As defined in Section 2.01 of the Purchase Agreement. 
  
 Partial Prepayment: With respect to a Distribution Date and to any Receivable, the portion of an Actual Payment in
excess of the Scheduled Payment which equals one or more future Scheduled Payments but does not constitute a Full Prepayment and results in a Rebate in accordance with the Servicer’s customary procedures. 
  
 Paying Agent: (i) With respect to the Indenture, the Indenture Trustee
or any other Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 of the Indenture and is authorized by the Issuer to make the payments to and distributions from the Collection Account and the Note
Distribution Account, including payment of principal of or interest on the Notes on behalf of the Issuer and (ii) with respect to the Trust Agreement, any paying agent or co-paying agent appointed pursuant to Section 3.9 of the Trust
Agreement that meets the eligibility standards for the Owner Trustee specified in Section 6.13 of the Trust Agreement, and initially JPMorgan Chase Bank. 
  

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

 App. A-22 

 (3) liens on the Financed Vehicle related thereto arising out of any judgment or award or
by operation of law, in any such case as a result of an act or omission by the related Obligor; 
  
 (4) liens which may exist in accessions to the Financed Vehicles not financed by the Receivables and 
  
 (5) any lien of the Collateral Agent noted on the
certificate of title of a Financed Vehicle. 
  
 Person: Any
legal person, including any individual, corporation, partnership, limited liability company, association, joint-stock company, trust, unincorporated organization, governmental entity or other entity of similar nature. 
  
 Physical Property: Bankers’ acceptances, commercial paper,
negotiable certificates of deposit and other obligations that constitute “instruments” within the meaning of Section 9-102(a)(47) of the UCC and are susceptible of physical delivery. 
  
 Plan: With respect to a Person, at a particular time, any employee
benefit plan which is covered by ERISA and in respect of which such Person or a Commonly Controlled Entity with respect to such Person is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be deemed to be) an
“employer” as defined in Section 3(5) of ERISA. 
  
 Pooling Agreement: The Pooling Agreement, dated as of the Closing Date, between NFRRC and the Issuer, as amended, modified and supplemented from time to time. 
  
 Portfolio Assets: As defined in the Titling Trust Agreement. 
  
 Portfolio Interest: As defined in the Titling Trust Agreement.

  
 Portfolio Interest Certificate: As defined in the
Titling Trust Agreement. 
  
 Portfolio Interest Trustee: As
defined in Preamble of the Servicing Agreement. 
  
 Portfolio
Servicing Agreement Supplement: As defined in Section 1.02 of the Servicing Agreement. 
  
 Portfolio Supplement: As defined in the Titling Trust Agreement. 
  
 Portfolio Trustee: As defined in the Titling Trust Agreement. 
  
 Predecessor Note: With respect to any particular Note, every previous Note evidencing all or a portion of the same
debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.5 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note. 
  

 App. A-23 

 Pre-Funded Amount: With respect to any Distribution Date, the amount on deposit in the Pre-Funding
Account. 
  
 Pre-Funded Percentage: With respect to a class
of Notes, the quotient (expressed as a percentage) of (i) the initial principal balance of such class of Notes as of the Closing Date and (ii) the sum of the initial principal balances of each class of Notes as of the Closing Date. 
  
 Pre-Funding Account: The account designated as such, established and
maintained pursuant to Section 2.02(a)(v) of the Servicing Agreement. 
  
 Pre-Funding Account Initial Deposit: Cash or Eligible Investments having a value of $201,715,762.20. 
  
 Prepayment: With respect to a Distribution Date and to a Receivable, the portion of an Actual Payment in excess of the Scheduled Payment.

  
 Principal Distributable Amount: With respect to any
Distribution Date, the sum of the following items: (i) the principal portion of all Scheduled Payments due with respect to the related Monthly Period on Receivables held by the Trust (other than Liquidating Receivables) excluding Scheduled Payments
that were prepaid in any prior Monthly Period and included in the Principal Distributable Amount on a prior Distribution Date, (ii) the principal portion of all Prepayments (or, in the case of the Retail Leases, all Full Prepayments received during
the related Monthly Period (except to the extent included in (i) above)), (iii) the Receivable Balance of each Receivable that the Servicer purchased, the Seller repurchased or that became a Liquidating Receivable during the related Monthly Period
(except to the extent included in (i) or (ii) above) and (iv) the Receivable Balance of each Retail Lease that terminated or expired during the related Monthly Period (except to the extent included in (i), (ii) or (iii) above). 
  
 Principal Payment Amount: With respect to any Distribution Date, an
amount equal to the lesser of (a) the Noteholders’ Principal Distributable Amount for such Distribution Date and (b) the excess, if any, of the Total Available Amount over the sum of the Total Servicing Fee and accrued and unpaid interest on
the Notes due and payable on such Distribution Date. 
  
 Proceeding: Any suit in equity, action at law or other judicial or administrative proceeding. 
  
 Program: As defined in Section 3.02 of the Servicing Agreement. 
  
 PSA Assignment: The Initial PSA Assignment and any Subsequent Transfer PSA Assignment. 
  
 Purchase Agreement: The Purchase Agreement, dated as of the Closing
Date, between NFC and NFRRC, as amended and supplemented from time to time. 
  
 Purchase Date: As defined in Section 2.01 of the Purchase Agreement. 
  
 Purchase Price: As defined in Section 2.02 of the Purchase Agreement. 
  

 App. A-24 

 Purchased Property: As of any date, means all of the Designated Receivables and the Related
Security transferred by NFC to NFRRC pursuant to Section 2.01 of the Purchase Agreement as of such date. 
  
 Rating Agency: Each of the nationally recognized statistical rating organizations requested by the Seller to provide ratings on the Notes which are
rating the Notes on such date. 
  
 Rating Agency Condition:
With respect to any action, the condition that each Rating Agency shall have been given at least 10 days (or such shorter period as is acceptable to each Rating Agency) prior notice thereof and that each of the Rating Agencies shall have notified
the Seller, the Servicer and the Issuer in writing that such action shall not result in a downgrade or withdrawal of the then current rating of the Notes. 
  
 Rebate: With respect to a given date and to a Receivable, the rebate under such Receivable that is or would be payable to the Obligor for unearned
finance charges or any other charges that are or would be subject to a rebate to the Obligor upon the payment of a Partial Prepayment or a Full Prepayment. 
  
 Receivable: (a) As used in the Basic Documents (other than the Purchase Agreement) in the context of a transfer of a Receivable or the ownership of
a Receivable, a Retail Note or the beneficial interest in a Retail Lease the record owner of which is the Titling Trust that is transferred to the Issuer pursuant to the Pooling Agreement and (b) as used in the Basic Documents in all other contexts,
a Retail Lease or a Retail Note that is transferred to the Issuer pursuant to the Pooling Agreement. 
  
 Receivable Balance: As of an Accounting Date, (a) with respect to any Retail Note, the Starting Receivable Balance thereof minus the sum of the
following amounts, in each case computed in accordance with the actuarial method: (i) that portion of all Scheduled Payments allocated to principal due on or after the Cutoff Date and on or prior to the Accounting Date, (ii) that portion of all
Warranty Payments or Administrative Purchase Payments allocated to principal, (iii) that portion of all Prepayments allocated to principal, and (iv) that portion of the following received and allocated to principal by the Servicer: benefits of any
lease assignments, proceeds from any Insurance Policies, Liquidation Proceeds, proceeds from any Dealer Liability, proceeds from any International Purchase Obligations and proceeds from any Guaranties and (b) with respect to a Retail Lease, the
remaining Scheduled Payments or purchase option price set forth in the Retail Lease minus, without duplication, the sum of (i) Unearned Income, (ii) all payments received by the Servicer from or for the account of the Obligor which are not late
fees, prepayment charges or certain other similar fees or charges, (iii) any Warranty Payment or Administrative Purchase Payment with respect to such Retail Lease, (iv) any Prepayments applied to such Retail Lease, and (v) proceeds received by the
Servicer from any Insurance Policies with respect to such Retail Lease. 
  
 Receivables File: As defined in Section 4.01 of the Servicing Agreement. 
  
 Record Date: (i) With respect to the Notes and with respect to any Distribution Date, the close of business on the day immediately preceding such
Distribution Date, or if Definitive Notes are issued, the last day of the preceding Monthly Period; and (ii) with respect to the Certificates and with respect to any Distribution Date, the last day of the preceding Monthly Period. 
  

 App. A-25 

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

	 	(a)	all amounts due on and under such Retail Note on and after the applicable Cutoff Date; 

  

	 	(b)	the security interests in the Financed Vehicles granted by Obligors pursuant to such Retail Note and, to the extent permitted by law, in any accessions thereto which are financed by
such Retail Note; 

  

	 	(c)	any proceeds from any Insurance Policies with respect to such Retail Note; 

  

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

  

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

  

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

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

  
 Related Titling Trust Assets: With respect to a Retail
Lease, the following assets: 
  
 (i) each
Financed Vehicle subject to such Retail Lease; 
  
 (ii) the Certificate of Title of each such Financed Vehicle; 
  

 App. A-26 

 (iii) the rights (but not the obligations) with respect to any such Retail Lease or
Financed Vehicle, including the right to proceeds arising from all International Purchase Obligations, if any, or any other repurchase obligation with respect to such Retail Lease or Financed Vehicle; 
  
 (iv) all of the Transferor’s or Navistar
Financial’s Dealer Agreement Rights (as such term is defined in the Titling Trust Agreement); 
  
 (v) any proceeds of any Insurance Policy with respect to such Retail Lease or Financed Vehicle; 
  
 (vi) any rights of the lessor with respect to any security
deposit relating to such Retail Lease in accordance with the terms of such Retail Lease; 
  
 (vii) the rights with respect to such Retail Lease or Financed Vehicle under the Titling Trust Servicing Agreement; 
  
 (viii) all amounts due on and under such Retail Lease on and
after the applicable Cutoff Date; 
  
 (ix) all
proceeds of the foregoing, including all Collections and all Liquidation Proceeds and all Disposition Proceeds (as such term is defined in the Titling Trust Agreement) with respect to such Financed Vehicles; and 
  
 (x) all other Titling Trust Assets relating to such Retail
Lease. 
  
 Remaining Gross Balance: With respect to any
Receivable (other than a Liquidating Receivable) and as of an Accounting Date, the Starting Gross Receivable Balance thereof minus the sum of (i) the portion of all Actual Payments with respect to such Receivable, (ii) any Warranty Payment or
Administrative Purchase Payment with respect to any such Receivable, (iii) any Prepayments applied to reduce the Starting Gross Receivable Balance of any such Receivable and (iv) proceeds from any Insurance Policies with respect to such Receivable,
plus for any Receivable not classified by the Servicer as a “finance charge - included contract,” the portion of the payments specified in the preceding clauses (i), (ii), (iii) or (iv) above allocable in accordance with the
actuarial method to finance charges; provided, however, that the Remaining Gross Balance of any Receivable that has been designated a Liquidating Receivable during the related Monthly Period shall equal zero. 
  
 Repurchase Event: A Repurchase Event described in Section 5.04
of the Purchase Agreement. 
  
 Required Deposit Rating: A
rating on short-term unsecured debt obligations of P-1 by Moody’s and A-1+ by S&P. Any requirement that short-term unsecured debt obligations have the “Required Deposit Rating” means that such short-term unsecured debt obligations
have the foregoing required ratings from each of such rating agencies. 
  
 Required Global Secured Parties: As defined in the Titling Trust Agreement. 
  

 App. A-27 

 Requisite GI Holder: As defined in the Titling Trust Agreement. 
  
 Required Negative Carry Account Balance: As of any Determination Date,
an amount equal to the lesser of (a) the Negative Carry Account Initial Deposit minus all previous withdrawals from the Negative Carry Account (other than Investment Earnings, if any, withdrawn to pay the Certificateholders pursuant to Section
2.02 of the Servicing Agreement) and (b) the Maximum Negative Carry Amount as of such date. 
  
 Required Rate: 3.175%. 
  
 Requirement of Law: As to any Person, the certificate of incorporation and by-laws or other organizational or governing documents of such Person,
and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is
subject. 
  
 Reserve Account: An account designated as
such, established and maintained pursuant to Section 2.02(a)(iv) of the Servicing Agreement. 
  
 Reserve Account Initial Deposit: Cash or Eligible Investments having a value of $7,965,684.76, which is equal to 2.00% of the Initial Aggregate
Starting Receivables Balance, shall be deposited into the Reserve Account on the Closing Date pursuant to Section 2.01 of the Pooling Agreement. 
  
 Reserve Account Subsequent Transfer Deposit: With respect to any Subsequent Transfer Date, cash or Eligible Investments in an amount equal to the
sum of (1) 2.00% of the aggregate Starting Receivable Balance of the transferred Subsequent Receivables and (2) the aggregate Yield Supplement Required Deposit Amounts, if any, for the transferred Subsequent Receivables, which shall be deposited
into the Reserve Account on such Subsequent Transfer Date, pursuant to Section 8.11(a) of the Indenture. 
  
 Reserve Account Property: As defined in the Granting Clause of the Indenture. 
  
 Residual Value: With respect to a TRAC Lease, an amount specified at lease inception in the TRAC Lease, and with
respect to a Finance Lease, the amount of the Obligor’s purchase option under that Finance Lease. 
  
 Responsible Officer: With respect to the Indenture Trustee or the Owner Trustee, any officer within the Corporate Trust Office of such trustee,
including any Vice President, Assistant Vice President, Assistant Secretary, Assistant Treasurer, Trust Officer or any other officer of such Trustee who customarily performs functions similar to those performed by the persons who at the time shall
be such officers, respectively, or to whom any corporate trust matter is referred because of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of the Indenture
or the Trust, as applicable, and, with respect to the Servicer, the President, any Vice President, Assistant Vice President, Secretary, Assistant Secretary or any other officer or assistant officer of such Person customarily performing functions
similar to those performed by any of the above designated officers, and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular
subject. 
  

 App. A-28 

 Retail Lease: A lease by an Obligor of one or more Financed Vehicles, originated or acquired by
Navistar Financial or one or more of its Affiliates. 
  
 Retail
Note: A retail loan evidenced by a note and secured by one or more Financed Vehicles, originated or acquired by Navistar Financial or one or more of its Affiliates. 
  
 Revised Article 8: Revised Article 8 (1994 Version) (and corresponding amendments to Article 9) as promulgated in
1994 by the National Conference of Commissioners on Uniform State Laws, in the form in which it has been adopted in the State of New York. 
  
 Schedule of Retail Leases: Each schedule attached to a PA Assignment or a PSA Assignment specifying the Retail Leases then being transferred to the
Issuer. 
  
 Schedule of Retail Notes: Each schedule
attached to a PA Assignment or a PSA Assignment specifying the Retail Notes then being transferred to the Issuer. 
  
 Scheduled Payment: With respect to any Receivable, a payment which (i) is in the amount required under the terms of such Receivable in effect as of
its applicable Cutoff Date except, in the case of any Receivable secured by more than one Financed Vehicle, including any changes in the terms of such Receivable resulting from a Full Prepayment with respect to any Financed Vehicle related thereto,
including, in the case of a TRAC Lease, the TRAC Payment, and (ii) is payable by the Obligor of such Receivable. When Scheduled Payment is used with reference to a Distribution Date after the date such Receivable is transferred to the Issuer, it
means the payment which is due in the related Monthly Period; provided, however, that in the case of the first Distribution Date, the Scheduled Payment shall include all such payments due from the Obligor on or after its applicable
Cutoff Date. 
  
 Secretary of State: The Secretary of State
of the State of Delaware. 
  
 Securities: The Notes and the
Certificates. 
  
 Securities Act: The United States
Securities Act of 1933, as amended from time to time. 
  
 Securities Intermediary: As defined in Section 2.02(b) of the Servicing Agreement. 
  
 Security Certificate: As defined in Section 8-102(a)(16) of the New York UCC. 
  
 Security Document: As defined in Section 11.1 of the Collateral Supplement. 
  
 Security Entitlement: As defined in Section 8-102(a)(17) of the New
York UCC. 
  
 Securityholder: Any of the Noteholders or
Certificateholders. 
  
 Seller: As defined in the Recitals
to the Pooling Agreement. 
  

 App. A-29 

 Servicer: The Person executing the Servicing Agreement as the Servicer, or its successor in
interest pursuant to Section 7.02 of the Servicing Agreement. 
  
 Servicer Default: Any of the events specified in Section 7.01 of the Servicing Agreement; provided that any requirement for the giving of notice, the lapse of time, or both, or any other condition, has been satisfied.

  
 Servicer’s Certificate: A certificate, completed
by and executed on behalf of the Servicer, in accordance with Section 2.17 of the Servicing Agreement. 
  
 Servicing Agreement: The Servicing Agreement, dated as of the Closing Date by and among Navistar Leasing Company, Harco Leasing Company, Inc.,
NFRRC, the Issuer, the Servicer, the Collateral Agent and the Portfolio Trustee, as amended, modified and supplemented from time to time. 
  
 Series 2004-A Portfolio Assets: As of any date, all of the Retail Leases identified on any Schedule of Retail Leases attached to a Initial LPA
Assignment or any Subsequent Transfer LPA Assignment on or before such date, and the Related Titling Trust Assets with respect to such Retail Leases, other than any such Retail Leases which are (i) Warranty Receivables which have been repurchased by
NFC, (ii) Administrative Receivables which have been repurchased by the Servicer, or (iii) which have otherwise been terminated, on or before such date (and the Related Titling Trust Assets). 
  
 Series 2004-A Portfolio Certificate: The Portfolio Interest
Certificate representing the Series 2004-A Portfolio Interest. 
  
 Series 2004-A Portfolio Interest: The portfolio interest created pursuant to the Series 2004-A Portfolio Supplement. 
  
 Series 2004-A Portfolio Interest Certificate: The Portfolio Interest Certificate representing the Series 2004-A Portfolio Interest. 
  
 Series 2004-A Portfolio Interest Collateral: As defined in Section
11.2 of the Collateral Supplement. 
  
 Series 2004-A
Portfolio Interest Obligor: As defined in the Recitals of the Collateral Supplement. 
  
 Series 2004-A Portfolio Supplement: The Series 2004-A Portfolio Supplement to the Titling Trust Agreement dated as of the Closing Date among Harco Leasing, as Grantor and Initial Beneficiary, the General
Interest Trustee, the Series 2004-A Portfolio Trustee and the Delaware Trustee. 
  
 Series 2004-A Portfolio Trustee: As defined in the Series 2004-A Portfolio Supplement. 
  
 Series 2004-A Secured Party: As defined in the Recitals of the Collateral Supplement. 
  

 App. A-30 

 Sold Retail Lease Property: As defined in Section 2.04 of the Lease Purchase Agreement.

  
 S&P: Standard & Poor’s Ratings Services,
or its successor. 
  
 Special Purpose Entity: As defined in
the Titling Trust Agreement. 
  
 Specified Reserve Account
Balance: With respect to any Distribution Date, the lesser of (i) the Note Principal Balance for all classes of Notes as of such Distribution Date, and (ii) the greater of: 
  
 (1) the sum of (a) 3.25% of the sum of the Aggregate Receivables Balance as of the close of business on the
last day of the related Monthly Period and the aggregate of the Starting Receivable Balances of all Subsequent Receivables acquired by the Issuer after the last day of the related Monthly Period but on or prior to such Distribution Date
except that if on any Distribution Date (i) the product (expressed as a percentage) of (A) twelve and (B) a fraction, the numerator of which is equal to the sum of the Aggregate Losses plus Liquidation Proceeds for each of the calendar months
which are the fifth, fourth and third calendar months preceding the calendar month immediately preceding such Distribution Date, minus the sum of the Liquidation Proceeds for the Monthly Periods which are the first, second and third calendar months
preceding the calendar month immediately preceding such Distribution Date, and the denominator of which is the sum of the Remaining Gross Balances of all outstanding Receivables as of the last day of each of the sixth, fifth and fourth calendar
months preceding the calendar month immediately preceding such Distribution Date, exceeds 1.50% or (ii) the average of the Delinquency Percentages for the preceding three calendar months exceeds 2.00%, then the percentage of the Aggregate
Receivables Balance and of the aggregate of the Starting Receivable Balances of Subsequent Receivables referred to in this clause (a) above, shall be equal to 7.75%, and (b) the Specified Yield Supplement Amount, if any, for such Distribution Date;
and 
  
 (2) 2.00% of the Aggregate Starting
Receivables Balance. 
  
 Specified Yield Supplement Amount:
for any Distribution Date, if there are no Low APR Receivables in the Trust as of that date, zero, or if there are Low APR Receivables in the Trust as of that date, an amount equal to the sum of 
  
 (a) the greater of (1) for each Low APR Receivable
transferred to the Trust prior to the opening of business on the first day of the Monthly Period in which such Distribution Date occurs, the aggregate, for each Monthly Period beginning with the Monthly Period in which such Distribution Date occurs
through and including the Monthly Period during which the stated maturity date for such Low APR Receivable occurs, of the product of (A) the scheduled balance of such Low APR Receivable as of the opening of business on the first day of such Monthly
Period assuming all payments are made as scheduled and no prepayments are made and (B) the result of (i) the Required Rate minus the APR of such Low APR Receivable divided by (ii) twelve, and 
  

 App. A-31 

 (2) the lesser of (i) the aggregate of the Yield Supplement Required Deposit Amounts deposited into the
Reserve Account on or prior to the last day of the related Monthly Period, and (ii) $25,000, and 
  
 (b) the aggregate Yield Supplement Required Deposit Amounts for any Subsequent Receivable transferred to the Trust after the last day of
the related Monthly Period but on or prior to such Distribution Date. 
  
 Starting Gross Receivable Balance: With respect to any Receivable as of the applicable Cutoff Date, the Starting Receivable Balance plus, in the case of Receivables classified by the Servicer as “finance charge - included
contracts,” the finance charges included in the Scheduled Payments. 
  
 Starting Receivable Balance: (a) With respect to a Receivable that is a Retail Note, the aggregate principal amount advanced under such Receivable toward the purchase price of the Financed Vehicle or Financed
Vehicles, including insurance premiums, service and warranty contracts, federal excise and sales taxes and other items customarily financed as part of a Retail Note and related costs, less payments received from the Obligor prior to the Cutoff Date
with respect to such Receivable allocable on the basis of the actuarial method to principal and (b) with respect to a Receivable that is a Retail Lease, the remaining Scheduled Payments or purchase option price set forth in the Retail Lease minus,
without duplication, the sum of (i) Unearned Income and (ii) payments received from the Obligor prior to the Cutoff Date with respect to such Receivable allocable to the principal portion of the lease payments. 
  
 State: Any one of the 50 States of the United States of America or the
District of Columbia. 
  
 Statutory Trust Statute: Chapter
38 of Title 12 of the Delaware Code, 12 Del. Code §3801 et seq., as the same may be amended from time to time. 
  
 Subsequent Cutoff Date: Any date designated by the Seller within the period beginning on the first day of the Monthly Period preceding the Monthly
Period in which the related Subsequent Transfer Date occurs and ending on the Subsequent Transfer Date. 
  
 Subsequent LPA Assignment: As defined in Section 2.02 of the Lease Purchase Agreement. 
  
 Subsequent Receivables: The Receivables transferred from the Seller to
the Issuer pursuant to Section 2.02 of the Pooling Agreement, which shall be listed on the schedules to the related Subsequent Transfer PSA Assignment. 
  

Subsequent Transfer Date: Any date during the Funding Period on which Subsequent Receivables are to be transferred to the Issuer and a related
Subsequent Transfer PSA Assignment is executed and delivered to the Issuer and the Indenture Trustee pursuant to Section 2.02 of the Pooling Agreement. 
  

 App. A-32 

 Subsequent Transfer PA Assignment: As defined in Section 2.01 of the Purchase Agreement.

  
 Subsequent Transfer PSA Assignment: With respect to
Subsequent Receivables transferred to the Issuer pursuant to Section 2.02 of the Pooling Agreement, has the meaning assigned thereto in Section 2.02(a) of the Pooling Agreement. 
  
 Subsequent Transferee: As defined in the Recitals to the Purchase
Agreement. 
  
 Subsidiary: As to any Person, a corporation,
partnership or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening of a contingency) to elect a
majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by
such Person. 
  
 Supplemental Servicing Fee: As defined in
Section 2.09 of the Servicing Agreement. 
  
 Tax
Opinion: With respect to any action, an Opinion of Counsel to the effect that, for U.S. federal income tax purposes (a) such action will not cause a taxable event with respect to any Noteholders or (b) in the case of Section 2.14 of the
Indenture, the Notes of the new Series will be characterized as debt. 
  
 Temporary Notes: The Notes specified in Section 2.3 of the Indenture. 
  
 Titling Trust: Navistar Leasing Company, a Delaware statutory business trust formed pursuant to the Titling Trust Agreement. 
  
 Titling Trust Agreement: The Trust Agreement, dated as of April 15, 1999, among Harco Leasing, J.P. Morgan Trust
Company, National Association (as successor-in-interest to Bank One, National Association), and Chase Manhattan Bank USA, National Association (as successor-in-interest to Bank One Delaware, Inc.), as amended, modified or supplemented from time to
time. 
  
 Titling Trust Assets: “Trust Assets” as
defined in the Titling Trust Agreement. 
  
 Titling Trust
Documents: The Series 2004-A Portfolio Certificate, Titling Trust Agreement, the Titling Trust Servicing Agreement, the Collateral Agency Agreement, the Series 2004-A Portfolio Supplement, and the Collateral Supplement. 
  
 Titling Trust Estate: “Trust Estate” as defined in the
Titling Trust Agreement. 
  
 Titling Trust Interest Holder:
“Holder” as defined in the Titling Trust Agreement. 
  
 Titling Trust Servicing Agreement: “Origination and Servicing Agreement” as defined in the Titling Trust Agreement. 
  

 App. A-33 

 Titling Trust Servicer Funding Advances: “Servicer Funding Advances” as defined in the
Titling Trust Agreement. 
  
 Titling Trustees: Each of the
General Interest Trustee, the Delaware Trustee and each Portfolio Trustee. 
  
 Total Available Amount: With respect to a Distribution Date, the sum of the Collected Amount, all amounts deposited to the Collection Account pursuant to Sections 8.2(b)(ii) and 8.2(b)(iii) of the
Indenture for such Distribution Date and the amount of all cash and other immediately available funds in the Reserve Account immediately prior to such date. 
  
 Total Servicing Fee: As defined in Section 2.09 of the Servicing Agreement. 
  
 TRAC Lease: A Retail Lease that provides for a TRAC Payment by the lessee at the expiration of the lease term
pursuant to a provision in the lease that provides in substance that, at the end of the term of the lease, after the application of the proceeds of the sale of the Financed Vehicle (whether such sale is to the lessee, an Affiliate of the lessor or
another Person) the lessee will be obligated to pay the lessor the excess of the TRAC Payment over the sale proceeds or the lessor will be obligated to pay the lessee the excess of the sale proceeds over the TRAC Payment. 
  
 TRAC Payment: With respect to a TRAC Lease, a fixed amount specified
in the lease documents for such TRAC Lease. 
  
 Transfer
Date: With respect to any Distribution Date, the Business Day immediately preceding such Distribution Date. 
  
 Transfer and Servicing Agreements: The Lease Purchase Agreement, the Purchase Agreement, the Pooling Agreement, the Servicing Agreement, the
Titling Trust Agreement, the Titling Trust Servicing Agreement, the Collateral Agency Agreement, the Series 2004-A Portfolio Supplement and the Collateral Supplement. 
  
 Treasury Regulations: The regulations, including proposed or temporary regulations, promulgated under the Code.
References herein to specific provisions of proposed or temporary regulations shall include analogous provisions of final Treasury Regulations or other successor Treasury Regulations. 
  
 Trust: Navistar Financial 2004-A Owner Trust, a Delaware statutory trust, created pursuant to the Trust Agreement.

  
 Trust Agreement: The Trust Agreement, dated as of the
Closing Date, between the Seller and the Owner Trustee, as amended and supplemented from time to time; such agreement being the Amended and Restated Trust Agreement contemplated by the Trust Agreement dated March 4, 2004 between the Seller and the
Owner Trustee. 
  
 Trust Indenture Act or TIA: The Trust
Indenture Act of 1939, as amended. 
  

 App. A-34 

 Trustees: The Owner Trustee and the Indenture Trustee. 
  
 UCC: The Uniform Commercial Code, as in effect in the relevant
jurisdiction. 
  
 UCC Collateral: Any property a security
interest in which may be perfected by filing under the UCC. 
  
 Uncertificated Security: As defined under the applicable UCC as in effect on such date. 
  
 Underwriting Agreement: The Underwriting Agreement, dated March 16, 2004, among Banc One Capital Markets, Inc. and Citigroup Global Markets Inc.,
as representatives of the several underwriters party thereto, the Servicer and the Seller with respect to the sale of the Notes. 
  
 Unearned Income: With respect to any Receivable, as of any date of determination, the portion of the Gross Balance thereof identified as unearned
income by the Servicer, in accordance with its customary applicable accounting procedures. 
  
 Warranty Payment: With respect to a Distribution Date and to a Warranty Receivable repurchased as of the related Accounting Date (a) that is a Retail Note, (i) the sum of all remaining Scheduled Payments on
such Warranty Receivable due after the Accounting Date, (ii) all past due Scheduled Payments with respect to which a Monthly Advance has not been made, (iii) the amount of any reimbursements made pursuant to the last sentence of Section 2.14
of the Servicing Agreement with respect to such Warranty Receivable and (iv) all Outstanding Monthly Advances made on such Warranty Receivable minus (v) the Rebate minus (vi) any Liquidation Proceeds with respect to such Warranty
Receivable to the extent applied prior to the Accounting Date that are not reflected in items (i) through (iv) and (b) that is a Retail Lease, the sum of (i) the sum of the Scheduled Payments on the Warranty Receivable due after the Accounting Date,
including the amount of any TRAC Payment or the Obligor’s purchase option, (ii) any reimbursement made pursuant to the last sentence of Section 2.14 of the Servicing Agreement with respect to such Warranty Receivable, (iii) all past due
Scheduled Payments with respect to which a Monthly Advance has not been made, and (iv) all Outstanding Monthly Advances made on the Warranty Receivable minus (v) any Unearned Income minus (vi) any Liquidation Proceeds with respect to
such Warranty Receivable to the extent applied to the Warranty Receivable on or prior to that Accounting Date that are not reflected in items (i) through (iv). 
  

Warranty Purchaser: Either (i) the Seller pursuant to Section 2.06 of the Pooling Agreement or (ii) NFC pursuant to Section 5.04
of the Purchase Agreement. 
  
 Warranty Receivable: A
Receivable which the Warranty Purchaser has become obligated to repurchase pursuant to Section 2.06 of the Pooling Agreement or Section 5.04 of the Purchase Agreement. 
  

 App. A-35 

 Yield Supplement Required Deposit Amount: means, for any Low APR Receivable, an amount equal to
the aggregate of, for each Monthly Period after the Cutoff Date for that Low APR Receivable through and including the Monthly Period during which the stated maturity date for that Low APR Receivable occurs, the product of 
  
 (1) the scheduled balance of that Low APR Receivable as of
the opening of business on the first day of that Monthly Period assuming all Scheduled Payments are made as scheduled and no prepayments are made and 
  
 (2) the result of (A) the Required Rate minus the APR of that Low APR Receivable divided by (B) twelve. 
  

 App. A-36 

 APPENDIX A 
  
 PART II - RULES OF CONSTRUCTION 
  
 (A) Accounting Terms. As used in this Appendix or the Basic Documents, accounting terms which are not defined, and
accounting terms partly defined, herein or therein shall have the respective meanings given to them under generally accepted accounting principles. To the extent that the definitions of accounting terms in this Appendix or the Basic Documents are
inconsistent with the meanings of such terms under generally accepted accounting principles, the definitions contained in this Appendix or the Basic Documents will control. 
  
 (B) “Hereof,” etc.: The words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Appendix or any Basic Document will refer to this Appendix or such Basic Document as a whole and not to any particular provision of this Appendix or such Basic Document; and Section, Schedule and Exhibit references
contained in this Appendix or any Basic Document are references to Sections, Schedules and Exhibits in or to this Appendix or such Basic Document unless otherwise specified. The word “or” is not exclusive. 
  
 (C) Use of “related” as used in this Appendix and the Basic
Documents, with respect to any Distribution Date, the “related Determination Date,” the “related Monthly Period,” and the “related Record Date” will mean the Determination Date, the Monthly Period, and the Record Date,
respectively, immediately preceding such Distribution Date. With respect to any Purchase Date, the “related Cutoff Date” will mean the Cutoff Date established for the closing of the purchase of receivables on that Purchase Date.

  
 (D) Use of “outstanding” etc. Whenever the
term “outstanding Notes,” “outstanding principal amount” and words of similar import are used in this Appendix or any Basic Document for purposes of determining whether the Noteholders of the requisite outstanding principal
amount of the Notes have given any request, demand, authorization, direction, notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of the
foregoing Persons (it being understood that the Owner Trustee in its individual capacity shall not be considered an Affiliate of any of the foregoing) shall be disregarded and deemed not to be outstanding, except that, in determining whether the
Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes that the Indenture Trustee knows to be so owned shall be so disregarded. Notes so owned that have been
pledged in good faith may be regarded as “outstanding” if the pledgee establishes to the satisfaction of the Indenture Trustee the pledgor’s right so to act with respect to such Notes and that the pledgee is not the Issuer, any other
obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons. 
  
 (E) Number and Gender. Each defined term used in this Appendix or the Basic Documents has a comparable meaning when used in its plural or singular form. Each gender-specific term used in this Appendix or the
Basic Documents has a comparable meaning whether used in a masculine, feminine or gender-neutral form. 
  

 App. A-37 

 (F) Including. Whenever the term “including” (whether or not that term is followed by
the phrase “but not limited to” or “without limitation” or words of similar effect) is used in this Appendix or the Basic Documents in connection with a listing of items within a particular classification, that listing will be
interpreted to be illustrative only and will not be interpreted as a limitation on, or exclusive listing of, the items within that classification. 
  
 (G) UCC References. References to sections or provisions of Article 9 of the UCC in any of the Basic Documents shall be deemed to be automatically
updated to reflect the successor, replacement or functionally equivalent sections or provisions of Revised Article 9, Secured Transactions (2000) at any time in any jurisdiction which has made such revised article effective. 
  
 (H) References to a Class of Notes. Unless otherwise specified,
references to a class of Notes, includes all the tranches included in such class of Notes. 
  

 App. A-38 

 APPENDIX B 
  
 NOTICE ADDRESSES AND PROCEDURES 
  
 All requests, demands, directions, consents, waivers, notices, authorizations and communications provided or permitted under
any Basic Document to be made upon, given or furnished to or filed with the Seller, the Servicer, the Indenture Trustee, the Issuer, the Owner Trustee or the Rating Agencies shall be in writing, personally delivered, sent by facsimile with a copy to
follow via first class mail, overnight mail or mailed by certified mail-return receipt requested, and shall be deemed to have been duly given upon receipt: 
  
 1. in the case of the Seller, at the following address: 
  
 Navistar Financial Retail Receivables Corporation 
 c/o Corporation Trust Company 
 1209 Orange Street 
 Wilmington, Delaware 19801 
  
 with a copy to: 
  
 Navistar Financial Corporation 
 2850 West Golf Road 
 Rolling Meadows, IL 60008 
 Attention: General Counsel 
 Telecopy: (847) 734-4087 
  
 in the case of the Servicer, at the following address: 
  
 Navistar Financial Corporation 
 2850 West Golf Road 
 Rolling Meadows, IL 60008 
 Attention: General Counsel 
 Telecopy: (847) 734-4090 
  
 2. in the case of the Indenture Trustee, at its Corporate Trust Office, 
  
 3. in the case of the Issuer, to the Corporate Trust Office of the Owner Trustee, with copies to: 
  
 Navistar Financial Retail Receivables Corporation

 c/o Corporation Trust Company 
 1209 Orange Street 
 Wilmington, Delaware 19801 
  

 App. B- 1 

 with a copy to: 
  
 Navistar Financial Corporation 
 2850 West Golf Road 
 Rolling Meadows, IL 60008 
 Attention: General Counsel 
 Telecopy: (847) 734-4090 
  
 4. in the case of Harco Leasing, at the following address, 
  
 Harco Leasing Company, Inc. 
 c/o Navistar Financial Corporation 
 2850 West Golf Road 
 Rolling Meadows, IL 60008 
 Attention: General Counsel 
 Telecopy: (847) 734-4090 
  
 5. in the case of the Collateral Agent, at the following address, 

 
 The Bank of New York 
 2 North LaSalle Street 
 Suite 1020 
 Chicago, IL 60602 
 Attention: Indenture Trust Administration 
 Telecopy: (312) 827-8562 
  
 6. in
the case of the Titling Trust, to the General Interest Trustee at its Corporate Trust Office (as such term is used in the Titling Trust Agreement), with a copy to Harco Leasing and Navistar Financial. 
  
 The Issuer shall promptly transmit any notice received by it from the Noteholders to the
Indenture Trustee and the Indenture Trustee shall likewise promptly transmit any notice received by it from the Noteholders to the Issuer. 
  
 7. in the case of the Owner Trustee, at its Corporate Trust Office, with a copy to the Administrator at: 
  
 Navistar Financial Corporation 
 2850 West Golf Road 
 Rolling Meadows, IL 60008 
 Attention: General Counsel 
 Telecopy: (847) 734-4090 
  

 App. B- 2 

 8. in the case of Moody’s Investors Service, Inc., to: 
  
 Moody’s Investors Service, Inc. 
 ABS Monitoring Department 
 99 Church Street 
 New York, New York 10007 
  
 9. in the case of Standard & Poor’s Ratings Services, to:

  
 Standard & Poor’s Ratings Services

 55 Water Street 
 40th Floor 
 New York, NY 10041-0003 
 Attention: Asset Backed Surveillance Department 
  
 or at such other address as shall be designated by such Person in a written notice to the other parties to the Basic Documents to which they are party. 
  

Where any Basic Document provides for notice to Noteholders of any condition or event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if it is in writing and mailed, first-class, postage prepaid or by overnight mail to each Noteholder affected by such condition or event, at such Person’s address as it appears on the Note Register, not later than the latest
date, and not earlier than the earliest date, prescribed in such Basic Document for the giving of such notice. If notice to Noteholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any
particular Noteholders shall affect the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in the manner herein provided shall conclusively be presumed to have been duly given regardless of whether such
notice is in fact actually received. 
  

 App. B- 3Indenture

 Exhibit 4.2 
  

EXECUTION COPY 
  

  
 NAVISTAR FINANCIAL 2004-A OWNER TRUST 
  
 Class A-1 1.08% Asset Backed Notes 
 Class A-2 1.45% Asset Backed Notes 
 Class A-3 2.01% Asset Backed Notes 
 Class A-4 2.59% Asset Backed Notes 
 Class B     2.46% Asset Backed Notes 
 Class C     3.20% Asset Backed Notes 
  

  
 INDENTURE 
  
 Dated as of April 1, 2004 
  

  
 The Bank of New York,

 a New York banking corporation, 
 Indenture Trustee 
  

 TABLE OF CONTENTS 

					
	 	 	 	  	Page

	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	  	2
	 	 	Section 1.1     Definitions	  	2
	 	 	Section 1.2     Incorporation by Reference of Trust Indenture Act	  	3
		
	ARTICLE II THE NOTES	  	3
	 	 	Section 2.1     Form	  	3
	 	 	Section 2.2     Execution, Authentication and Delivery	  	4
	 	 	Section 2.3     Temporary Notes	  	4
	 	 	Section 2.4     Registration; Registration of Transfer and Exchange of Notes	  	5
	 	 	Section 2.5     Mutilated, Destroyed, Lost or Stolen Notes	  	6
	 	 	Section 2.6     Persons Deemed Noteholders	  	7
	 	 	Section 2.7     Payment of Principal and Interest	  	7
	 	 	Section 2.8     Cancellation of Notes	  	8
	 	 	Section 2.9     Release of Collateral	  	9
	 	 	Section 2.10   Book-Entry Notes	  	9
	 	 	Section 2.11   Notices to Clearing Agency	  	10
	 	 	Section 2.12   Definitive Notes	  	10
	 	 	Section 2.13   Seller as Noteholder	  	10
	 	 	Section 2.14   Tax Treatment	  	10
		
	ARTICLE III COVENANTS	  	10
	 	 	Section 3.1     Payment of Principal and Interest	  	10
	 	 	Section 3.2     Maintenance of Agency Office	  	11
	 	 	Section 3.3     Money for Payments to Be Held in Trust	  	11
	 	 	Section 3.4     Existence	  	12
	 	 	Section 3.5     Protection of Collateral; Acknowledgment of Pledge	  	13
	 	 	Section 3.6     Opinions as to Collateral	  	13
	 	 	Section 3.7     Performance of Obligations; Servicing of Receivables.	  	14
	 	 	Section 3.8     Negative Covenants	  	15
	 	 	Section 3.9     Annual Statement as to Compliance	  	16
	 	 	Section 3.10   Consolidation, Merger, etc., of the Issuer; Disposition of Trust Assets	  	16
	 	 	Section 3.11   Successor or Transferee	  	18
	 	 	Section 3.12   No Other Business	  	18
	 	 	Section 3.13   No Borrowing	  	18
	 	 	Section 3.14   Guarantees, Loans, Advances and Other Liabilities	  	18
	 	 	Section 3.15   Servicer’s Obligations	  	18
	 	 	Section 3.16   Capital Expenditures	  	19
	 	 	Section 3.17   Removal of Administrator	  	19
	 	 	Section 3.18   Restricted Payments	  	19
	 	 	Section 3.19   Notice of Events of Default	  	19
	 	 	Section 3.20   Further Instruments and Acts	  	19

  
  

 - i - 

					
	 	 	Section 3.21   Indenture Trustee’s Assignment of Administrative Receivables and Warranty Receivables	  	19
	 	 	Section 3.22   Representations and Warranties by the Issuer to the Indenture Trustee	  	20
		
	ARTICLE IV SATISFACTION AND DISCHARGE	  	20
	 	 	Section 4.1     Satisfaction and Discharge of Indenture	  	20
	 	 	Section 4.2     Application of Trust Money	  	22
	 	 	Section 4.3     Repayment of Monies Held by Paying Agent	  	22
	 	 	Section 4.4     Duration of Position of Indenture Trustee for Benefit of Certificateholders	  	22
		
	ARTICLE V DEFAULT AND REMEDIES	  	22
	 	 	Section 5.1     Events of Default	  	22
	 	 	Section 5.2     Acceleration of Maturity; Rescission and Annulment	  	23
	 	 	Section 5.3     Collection of Indebtedness and Suits for Enforcement by Indenture Trustee	  	24
	 	 	Section 5.4     Remedies; Priorities	  	26
	 	 	Section 5.5     Optional Preservation of the Collateral	  	27
	 	 	Section 5.6     Limitation of Suits	  	27
	 	 	Section 5.7     Unconditional Rights of Noteholders To Receive Principal and Interest	  	28
	 	 	Section 5.8     Restoration of Rights and Remedies	  	28
	 	 	Section 5.9     Rights and Remedies Cumulative	  	28
	 	 	Section 5.10   Delay or Omission Not a Waiver	  	28
	 	 	Section 5.11   Control by Noteholders	  	29
	 	 	Section 5.12   Waiver of Past Defaults	  	29
	 	 	Section 5.13   Undertaking for Costs	  	30
	 	 	Section 5.14   Waiver of Stay or Extension Laws	  	30
	 	 	Section 5.15   Action on Notes	  	30
	 	 	Section 5.16   Performance and Enforcement of Certain Obligations	  	30
		
	ARTICLE VI THE INDENTURE TRUSTEE	  	31
	 	 	Section 6.1     Duties of Indenture Trustee	  	31
	 	 	Section 6.2     Rights of Indenture Trustee	  	32
	 	 	Section 6.3     Indenture Trustee May Own Notes	  	33
	 	 	Section 6.4     Indenture Trustee’s Disclaimer	  	33
	 	 	Section 6.5     Notice of Defaults	  	33
	 	 	Section 6.6     Reports by Indenture Trustee to Holders	  	33
	 	 	Section 6.7     Compensation; Indemnity	  	34
	 	 	Section 6.8     Replacement of Indenture Trustee	  	34
	 	 	Section 6.9     Merger or Consolidation of Indenture Trustee	  	35
	 	 	Section 6.10   Appointment of Co-Indenture Trustee or Separate Indenture Trustee	  	36
	 	 	Section 6.11   Eligibility; Disqualification	  	37
	 	 	Section 6.12   Preferential Collection of Claims Against Issuer	  	38
	 	 	Section 6.13   Representations and Warranties of Indenture Trustee	  	38
	 	 	Section 6.14   Indenture Trustee May Enforce Claims Without Possession of Notes	  	39

  
  

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	 	 	Section 6.15   Suit for Enforcement	  	39
	 	 	Section 6.16   Rights of Noteholders to Direct Indenture Trustee	  	39
		
	ARTICLE VII NOTEHOLDERS’ LISTS AND REPORTS	  	39
	 	 	Section 7.1     Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders	  	39
	 	 	Section 7.2     Preservation of Information, Communications to Noteholders	  	40
	 	 	Section 7.3     Reports by Issuer	  	40
	 	 	Section 7.4     Reports by Indenture Trustee	  	41
		
	ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES	  	41
	 	 	Section 8.1     Collection of Money	  	41
	 	 	Section 8.2     Designated Accounts; Payments	  	41
	 	 	Section 8.3     General Provisions Regarding Accounts	  	46
	 	 	Section 8.4     Release of Collateral	  	46
	 	 	Section 8.5     Opinion of Counsel	  	46
	 	 	Section 8.6     Investment Earnings and Supplemental Servicing Fees	  	47
	 	 	Section 8.7     Net Deposits	  	47
	 	 	Section 8.8     Statements to Securityholders	  	47
	 	 	Section 8.9     Designated Accounts	  	49
	 	 	Section 8.10   Reserve Account	  	49
	 	 	Section 8.11   Pre-Funding Account	  	50
	 	 	Section 8.12   Negative Carry Account	  	50
	 	 	Section 8.13   Sale of Assets; Termination	  	51
		
	ARTICLE IX SUPPLEMENTAL INDENTURES	  	52
	 	 	Section 9.1     Supplemental Indentures Without Consent of Noteholders	  	52
	 	 	Section 9.2     Supplemental Indentures With Consent of Noteholders	  	54
	 	 	Section 9.3     Execution of Supplemental Indentures	  	55
	 	 	Section 9.4     Effect of Supplemental Indenture	  	55
	 	 	Section 9.5     Conformity with Trust Indenture Act	  	55
	 	 	Section 9.6     Reference in Notes to Supplemental Indentures	  	55
		
	ARTICLE X REDEMPTION OF NOTES	  	56
	 	 	Section 10.1     Redemption	  	56
	 	 	Section 10.2     Form of Redemption Notice	  	56
	 	 	Section 10.3     Notes Payable on Redemption Date	  	57
		
	ARTICLE XI MISCELLANEOUS	  	57
	 	 	Section 11.1     Compliance Certificates and Opinions, etc.	  	57
	 	 	Section 11.2     Form of Documents Delivered to Indenture Trustee	  	58
	 	 	Section 11.3     Acts of Noteholders	  	59
	 	 	Section 11.4     Notices, etc., to Indenture Trustee, Issuer and Rating Agencies	  	60
	 	 	Section 11.5     Notices to Noteholders; Waiver	  	60
	 	 	Section 11.6     Alternate Payment and Notice Provisions	  	60
	 	 	Section 11.7     Conflict with Trust Indenture Act	  	61
	 	 	Section 11.8     Effect of Headings and Table of Contents	  	61

  
  

 - iii - 

					
	 	 	Section 11.9 Successors and Assigns	  	61
	 	 	Section 11.10 Separability	  	61
	 	 	Section 11.11 Benefits of Indenture	  	61
	 	 	Section 11.12 Legal Holidays	  	61
	 	 	Section 11.13 Governing Law	  	61
	 	 	Section 11.14 Counterparts	  	61
	 	 	Section 11.15 Recording of Indenture	  	62
	 	 	Section 11.16 No Recourse	  	62
	 	 	Section 11.17 No Petition	  	62
	 	 	Section 11.18 Inspection	  	63
		
	Exhibit A-       Locations of Composite Schedule of Receivables	  	A-1
	Exhibit B-       Form of Class A-1 Asset Backed Note	  	B-1
	Exhibit C-       Form of Class A-2, Class A-3, Class A-4, Class B and Class C Asset Backed Note	  	C-1

  

 - iv - 

 INDENTURE, dated as of April 1, 2004 between NAVISTAR FINANCIAL 2004-A OWNER TRUST, a Delaware
statutory trust (the “Issuer”), and THE BANK OF NEW YORK, a New York banking corporation, as trustee and not in its individual capacity (the “Indenture Trustee”). 
  
 Each party agrees as follows for the benefit of the other party and for the
equal and ratable benefit of the Holders of the Notes and (only to the extent expressly provided herein) the Certificateholders: 
  
 GRANTING CLAUSE 
  
 The Issuer hereby grants to the Indenture Trustee on the Closing Date, as trustee for the benefit of the Noteholders and (only to the extent expressly
provided herein) the Certificateholders, all of the Issuer’s right, title and interest in, to and under (a) the Receivables listed on the Composite Schedule of Receivables which is on file at the locations listed on Exhibit A hereto,
whether now existing or hereafter acquired and including, without limitation, Subsequent Receivables acquired by the Issuer pursuant to the Pooling Agreement listed on the schedules to the Subsequent Transfer PSA Assignments with respect to such
Subsequent Receivables and all Related Security; (b) the Collection Account and the Note Distribution Account and all funds on deposit from time to time in the Collection Account and the Note Distribution Account; (c) the Reserve Account and all
proceeds thereof (other than the Investment Earnings thereon), including all other amounts, investments and investment property held from time to time in the Reserve Account (whether in the form of deposit accounts, Physical Property, book-entry
securities, uncertificated securities, or otherwise); (d) the Reserve Account Initial Deposit with respect to the Closing Date and the Reserve Account Subsequent Transfer Deposit with respect to each Subsequent Transfer Date and all proceeds thereof
(other than the Investment Earnings thereon) ((c) and (d), collectively, the “Reserve Account Property”); (e) the Pre-Funding Account and all funds on deposit from time to time in the Pre-Funding Account and all proceeds thereof,
including all other amounts and investments held from time to time in the Pre-Funding Account (whether in the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise); (f) the Negative Carry Account
and all funds on deposit from time to time in the Negative Carry Account and all proceeds thereof (other than the Investment Earnings thereon), including all other amounts, investments and investment property held from time to time in the Negative
Carry Account (whether in the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise); (g) the Pooling Agreement (including all rights of NFRRC under the Purchase Agreement, the Initial PA
Assignment and any Subsequent Transfer PA Assignments assigned to the Issuer pursuant to the Pooling Agreement); (h) the Servicing Agreement; (i) the rights of NFC under the Lease Purchase Agreement, the Initial LPA Assignment and any Subsequent
Transfer LPA Assignment assigned to NFRRC pursuant to the Purchase Agreement and then to the Issuer pursuant to the Pooling Agreement; (j) the Titling Trust Documents, including the Series 2004-A Portfolio Certificate, the Series 2004-A Portfolio
Interest and the beneficial interest in the Series 2004-A Portfolio Assets; (k) all Collections; and (l) all present and future claims, demands, causes and choses in action in respect of any or all of the foregoing and all payments on or under and
all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing, including all proceeds of the conversion, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts, acceptances, chattel paper, checks, 

 deposit accounts, insurance proceeds, condemnation awards, rights to payment of any and every kind and other forms of
obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing (collectively, the “Collateral”). 
  
 The foregoing Grant is made in trust to secure (a) first, the payment of
principal of and interest on, and any other amounts owing in respect of, the Class A Notes, equally and ratably without prejudice, priority or distinction, subject to the priority set forth in Section 8.2(d) of this Indenture, (b) second, the
payment of principal of and interest on, and any other amounts owing in respect of, the Class B Notes, equally and ratably without prejudice, priority or distinction, subject to the priority set forth in Section 8.2(d) of this Indenture, and
(c) third, the payment of principal of and interest on, and any other amounts owing in respect of, the Class C Notes, equally and ratably without prejudice, priority or distinction, subject to the priority set forth in Section 8.2(d) of this
Indenture, and to secure compliance with the provisions of this Indenture, all as provided in this Indenture. This Indenture constitutes a security agreement under the UCC. 
  
 The foregoing Grant includes all rights, powers and options (but none of the obligations, if any) of the Issuer under any
agreement or instrument included in the Collateral, including the immediate and continuing right to claim for, collect, receive and give receipt for principal, interest and lease payments and other Scheduled Payments in respect of the Receivables
included in the Collateral and all other monies payable under the Collateral, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the
Issuer or otherwise and generally to do and receive anything that the Issuer is or may be entitled to do or receive under or with respect to the Collateral. 
  
 The Indenture Trustee, as trustee on behalf of the Noteholders and (only to the extent expressly provided herein) the Certificateholders, acknowledges
such Grant and accepts the trusts under this Indenture in accordance with the provisions of this Indenture. 
  
 ARTICLE I 
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 Section 1.1 Definitions. Certain capitalized terms used in this
Indenture shall have the respective meanings assigned them in Part I of Appendix A to the Pooling Agreement of even date herewith between the Issuer and NFRRC (as it may be amended, supplemented or modified from time to time, the
“Pooling Agreement”). All references herein to “the Indenture” or “this Indenture” are to this Indenture as it may be amended, supplemented or modified from time to time, the exhibits hereto and the capitalized terms
used herein which are defined in such Appendix A. All references herein to Articles, Sections, subsections and exhibits are to Articles, Sections, subsections and exhibits contained in or attached to this Indenture unless otherwise specified.
All terms defined in this Indenture shall have the defined meanings when used in any certificate, notice, Note or other document made or delivered pursuant hereto unless otherwise defined therein. The rules of construction set forth in Part II of
such Appendix A shall be applicable to this Indenture. 
  

 - 2 - 

 Section 1.2 Incorporation by Reference of Trust Indenture Act. Whenever this Indenture refers to a
provision of the TIA, such provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings: 
  
 “Commission” means the Securities and Exchange Commission. 
  
 “indenture securities” means the Notes. 
  
 “indenture security holder” means a Noteholder. 

 
 “indenture to be qualified” means this Indenture.

  
 “indenture trustee” means the Indenture
Trustee. 
  
 “obligor” on the indenture
securities means the Issuer and any other obligor on the indenture securities. 
  
 All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by a Commission rule have the respective meanings assigned to them by such definitions.

  
 ARTICLE II 
 THE NOTES 
  
 Section 2.1 Form. 
  
 (a) The Class A-1 Notes, with the Indenture Trustee’s certificate of authentication, shall be substantially in the form set forth in Exhibit
B and each of the Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes and Class C Notes, each with the Indenture Trustee’s certificate of authentication, shall be substantially in the form set forth in Exhibit C, with
such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and each such class may have such letters, numbers or other marks of identification and such legends or endorsements placed
thereon as may, consistently herewith, be determined by the officers executing such Notes, as evidenced by their execution of the Notes. Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate reference
thereto on the face of the Note. 
  
 (b) The Definitive Notes
shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without steel engraved borders), all as determined by the officers executing such Notes, as evidenced by their execution of such Notes.

  
 (c) Each Note shall be dated the date of its authentication.
The terms of each class of Notes as provided for in Exhibit B and Exhibit C hereto are part of the terms of this Indenture. 
  

 - 3 - 

 Section 2.2 Execution, Authentication and Delivery. 
  
 (a) Each Note shall be dated the date of its authentication, and shall be
issuable as a registered Note in the minimum denomination of $1,000 and in integral multiples thereof (except, if applicable, for one Note representing a residual portion of each class which may be issued in a different denomination). 
  
 (b) The Notes shall be executed on behalf of the Issuer by any of its
Authorized Officers. The signature of any such Authorized Officer on the Notes may be manual or facsimile. 
  
 (c) Notes bearing the manual or facsimile signature of individuals who were at any time Authorized Officers of the Issuer shall bind the Issuer,
notwithstanding that such individuals or any of them have ceased to hold such office prior to the authentication and delivery of such Notes or did not hold such office at the date of such Notes. 
  
 (d) The Indenture Trustee shall upon Issuer Order authenticate and deliver
to or upon the order of the Issuer, the Notes for original issue in aggregate principal amount of $600,000,000, comprised of (i) Class A-1 Notes in the aggregate principal amount of $108,000,000, (ii) Class A-2 Notes in the aggregate principal
amount of $175,000,000, (iii) Class A-3 Notes in the aggregate principal amount of $154,000,000, (iv) Class A-4 Notes in the aggregate principal amount of $127,000,000, (v) Class B Notes in the aggregate principal amount of $21,000,000, and (vi)
Class C Notes in the aggregate principal amount of $15,000,000. The aggregate principal amount of all Notes outstanding at any time may not exceed $600,000,000 except as provided in Section 2.5. 
  
 (e) No Notes shall be entitled to any benefit under this Indenture or be
valid or obligatory for any purpose, unless there appears on such Note a certificate of authentication substantially in the form set forth, in the case of the Class A-1 Notes, in Exhibit B, and in the case of the Class A-2 Notes, the Class
A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes, in Exhibit C, executed by the Indenture Trustee by the manual signature of one of its authorized signatories, and such certificate upon any Note shall be conclusive
evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder. 
  
 Section 2.3 Temporary Notes. 
  
 (a) Pending the preparation of Definitive Notes, if any, the Issuer may execute, and upon receipt of an Issuer Order the Indenture Trustee shall
authenticate and deliver, such Temporary Notes which are printed, lithographed, typewritten, mimeographed or otherwise produced, of the tenor of the Definitive Notes in lieu of which they are issued and with such variations as are consistent with
the terms of this Indenture as the officers executing such Notes may determine, as evidenced by their execution of such Notes. 
  
 (b) If Temporary Notes are issued, the Issuer shall cause Definitive Notes to be prepared without unreasonable delay. After the preparation of Definitive
Notes, the Temporary Notes shall be exchangeable for Definitive Notes upon surrender of the Temporary Notes at the Agency Office of the Issuer to be maintained as provided in Section 3.2, without 
  

 - 4 - 

 charge to the Noteholder. Upon surrender for cancellation of any one or more Temporary Notes, the Issuer shall execute
and the Indenture Trustee shall authenticate and deliver in exchange therefor a like principal amount of Definitive Notes of authorized denominations. Until so delivered in exchange, the Temporary Notes shall in all respects be entitled to the same
benefits under this Indenture as Definitive Notes. 
  
 Section 2.4
Registration; Registration of Transfer and Exchange of Notes. 
  
 (a) The Issuer shall cause to be kept the Note Register, comprising separate registers for each class of Notes, in which, subject to such reasonable regulations as the Issuer may prescribe, the Issuer shall provide for the registration of
the Notes and the registration of transfers and exchanges of the Notes. The Indenture Trustee shall initially be the Note Registrar for the purpose of registering the Notes and transfers of the Notes as herein provided. Upon any resignation of any
Note Registrar, the Issuer shall promptly appoint a successor Note Registrar or, if it elects not to make such an appointment, assume the duties of the Note Registrar. 
  
 (b) If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the Issuer will give the
Indenture Trustee prompt written notice of the appointment of such Note Registrar and of the location, and any change in the location, of the Note Register. The Indenture Trustee shall have the right to inspect the Note Register at all reasonable
times and to obtain copies thereof. The Indenture Trustee shall have the right to rely upon a certificate executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and addresses of the Noteholders and the principal
amounts and number of such Notes. 
  
 (c) Upon surrender for
registration of transfer of any Note at the Corporate Trust Office of the Indenture Trustee or the Agency Office of the Issuer (and following the delivery, in the former case, of such Notes to the Issuer by the Indenture Trustee), the Issuer shall
execute, the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, in the name of the designated transferee or transferees, one or more new Notes in any authorized denominations, of a like aggregate
principal amount. 
  
 (d) At the option of the Noteholder, Notes
may be exchanged for other Notes of the same class in any authorized denominations, of a like aggregate principal amount, upon surrender of the Notes to be exchanged at the Corporate Trust Office of the Indenture Trustee or the Agency Office of the
Issuer (and following the delivery, in the former case, of such Notes to the Issuer by the Indenture Trustee), the Issuer shall execute, and the Indenture Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, the
Notes which the Noteholder making the exchange is entitled to receive. 
  
 (e) All Notes issued upon any registration of transfer or exchange of Notes shall be the valid obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Notes surrendered upon such
registration of transfer or exchange. 
  

 - 5 - 

 (f) Every Note presented or surrendered for registration of transfer or exchange shall be duly endorsed
by, or be accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee and the Note Registrar, duly executed by the Holder thereof or such Holder’s attorney duly authorized in writing, with such signature
guaranteed by a commercial bank or trust company located, or having a correspondent located, in the City of New York or the city in which the Corporate Trust Office of the Indenture Trustee is located, or by a member firm of a national securities
exchange, and such other documents as the Indenture Trustee may require. 
  
 (g) No service charge shall be made to a Holder for any registration of transfer or exchange of Notes, but the Issuer or Indenture Trustee may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges pursuant to Section 2.3 or Section 9.6 not involving any transfer. 
  
 (h) The preceding provisions of this Section 2.4 notwithstanding, the
Issuer shall not be required to transfer or make exchanges, and the Note Registrar need not register transfers or exchanges, of Notes that: (i) have been selected for redemption pursuant to Article X, if applicable; or (ii) are due for
repayment in full within 15 days of surrender to the Corporate Trust Office or the Agency Office. 
  
 Section 2.5 Mutilated, Destroyed, Lost or Stolen Notes. 
  

(a) If (i) any mutilated Note is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the Indenture Trustee harmless, then, in the absence of notice to the Issuer, the
Note Registrar or the Indenture Trustee that such Note has been acquired by a protected purchaser, the Issuer shall execute and upon the Issuer’s request the Indenture Trustee shall authenticate and deliver, in exchange for or in lieu of any
such mutilated, destroyed, lost or stolen Note, a replacement Note of a like class and aggregate principal amount; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated Note, shall have become or
within seven days shall be due and payable in full, or shall have been called for redemption, instead of issuing a replacement Note, the Issuer may make payment to the Holder of such destroyed, lost or stolen Note when so due or payable or upon the
Redemption Date, if applicable, without surrender thereof. 
  
 (b) If, after the delivery of a replacement Note or payment in respect of a destroyed, lost or stolen Note pursuant to subsection (a), any protected purchaser of the original Note in lieu of which such replacement Note was issued presents
for payment such original Note, the Issuer and the Indenture Trustee shall be entitled to recover such replacement Note (or such payment) from (i) any Person to whom it was delivered, (ii) the Person taking such replacement Note from the Person to
whom such replacement Note was delivered or (iii) any assignee of such Person, except any protected purchaser, and the Issuer and the Indenture Trustee shall be entitled to recover upon the security or indemnity provided therefor to the extent of
any loss, damage, cost or expense incurred by the Issuer or the Indenture Trustee in connection therewith. 
  

 - 6 - 

 (c) In connection with the issuance of any replacement Note under this Section 2.5, the Issuer
may require the payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses (including all fees and expenses of the Indenture Trustee)
connected therewith. 
  
 (d) Any duplicate Note issued pursuant
to this Section 2.5 in replacement for any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be found at
any time or be enforced by any Person, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder. 
  
 (e) The provisions of this Section 2.5 are exclusive and shall preclude (to the extent lawful) all other rights and
remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Notes. 
  
 Section 2.6 Persons Deemed Noteholders. Prior to due presentment for registration of transfer of any Note, the Issuer, the Indenture Trustee and
any of their agents may treat the Person in whose name any Note is registered (as of the day of determination) as the Noteholder for the purpose of receiving payments of principal of and interest on such Note and for all other purposes whatsoever,
whether or not such Note be overdue, and neither the Issuer, the Indenture Trustee nor any agent of the Issuer or the Indenture Trustee shall be affected by notice to the contrary. 
  
 Section 2.7 Payment of Principal and Interest. 
  
 (a) Interest on the Class A-1 Notes shall accrue in the manner set forth in Exhibit B at the applicable Interest
Rate for such class, and such interest shall be payable on each Distribution Date, in accordance with the priorities set forth in Section 8.2(d), as specified in the form of Note set forth in Exhibit B. Interest on the Class A-2 Notes,
the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the Class C Notes shall accrue in the manner set forth in Exhibit C at the applicable Interest Rate for such class, and shall be payable on each Distribution Date, in accordance
with the priorities set forth in Section 8.2(d), as specified in the form of Note set forth in Exhibit C. Any installment of interest payable on any Note shall be punctually paid or duly provided for by a deposit by or at the direction
of the Issuer or the Servicer into the Note Distribution Account before each Distribution Date for payment to Noteholders on the related Distribution Date and shall be paid to the Person in whose name such Note (or one or more Predecessor Notes) is
registered on the applicable Record Date, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date; provided, however, that, unless and until Definitive Notes
have been issued pursuant to Section 2.12, with respect to Notes registered on the applicable Record Date in the name of the Note Depository (initially, Cede & Co.), payment shall be made by wire transfer in immediately available funds to
the account designated by the Note Depository. 
  
 (b) Prior to
the occurrence of an Event of Default and a declaration in accordance with Section 5.2(a) that the Notes have become immediately due and payable, the 
  

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 principal of each class of Notes shall be payable in full on the Final Scheduled Distribution Date for such class and, to
the extent of funds available therefor, in instalments on the Distribution Dates (if any) preceding the Final Scheduled Distribution Date for such class, in the amounts and in accordance with the priorities set forth in Section 8.2(d)(ii) or
(iii), as applicable, and, if applicable, Section 8.2(e). All principal payments on each class of Notes shall be made pro rata to the Noteholders of such class entitled thereto. Any instalment of principal payable on any Note shall be
punctually paid or duly provided for by a deposit by the Indenture Trustee in accordance with the provisions of Section 8.2 into the Note Distribution Account prior to the applicable Distribution Date and shall be paid to the Person in whose
name such Note (or one or more Predecessor Notes) is registered on the applicable Record Date, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Record Date; provided,
however, that, unless and until Definitive Notes have been issued pursuant to Section 2.12, with respect to Notes registered on the Record Date in the name of the Note Depository, payment shall be made by wire transfer in immediately
available funds to the account designated by the Note Depository, except for: (i) the final instalment of principal on any Note; and (ii) the Redemption Price for the Notes redeemed pursuant to Section 10.1, which, in each case, shall be
payable as provided herein. The funds represented by any such checks in respect of interest or principal returned undelivered shall be held in accordance with Section 3.3. 
  
 (c) [Reserved.] 
  
 (d) From and after the occurrence of an Event of Default and a declaration in accordance with Section 5.2(a) that the Notes have become
immediately due and payable, principal on the Notes shall be payable as provided in Section 8.2(d)(iv) or (v), as applicable and, if applicable, Section 8.2(e). 
  
 (e) With respect to any Distribution Date on which the final instalment of principal and interest on a class of Notes is to
be paid, the Indenture Trustee shall notify each Noteholder of such class of record as of the Record Date for such Distribution Date of the fact that the final instalment of principal of and interest on such Note is to be paid on such Distribution
Date. Such notice shall be sent (i) on such Record Date by facsimile, if Book-Entry Notes are outstanding; or (ii) not later than three Business Days after such Record Date in accordance with Section 11.5(a) if Definitive Notes are
outstanding, and shall specify that such final instalment shall be payable only upon presentation and surrender of such Note and shall specify the place where such Note may be presented and surrendered for payment of such instalment and the manner
in which such payment shall be made. Notices in connection with redemptions of Notes shall be mailed to Noteholders as provided in Section 10.2. Within sixty days of the surrender pursuant to this Section 2.7(e) or cancellation
pursuant to Section 2.8 of all of the Notes of a particular class, the Indenture Trustee shall provide each of the Rating Agencies with written notice stating that all Notes of such class have been surrendered or canceled. 
  
 Section 2.8 Cancellation of Notes. All Notes surrendered for payment,
redemption, exchange or registration of transfer shall, if surrendered to any Person other than the Indenture Trustee, be delivered to the Indenture Trustee and shall be promptly canceled by the Indenture Trustee. The Issuer may at any time deliver
to the Indenture Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and all Notes so delivered shall be promptly canceled by the 
  

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 Indenture Trustee. No Notes shall be authenticated in lieu of or in exchange for any Notes canceled as provided in this
Section 2.8, except as expressly permitted by this Indenture. All canceled Notes may be held or disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy as in effect at the time unless the Issuer shall
direct by an Issuer Order that they be returned to it; provided, however, that such Issuer Order is timely and the Notes have not been previously disposed of by the Indenture Trustee. The Indenture Trustee shall certify to the Issuer that
surrendered Notes have been duly canceled and retained or destroyed, as the case may be. 
  
 Section 2.9 Release of Collateral. The Indenture Trustee shall release property from the lien of this Indenture, other than as permitted by Sections 3.21, 8.2, 8.4 and 11.1, only upon receipt of
an Issuer Request accompanied by an Officers’ Certificate, an Opinion of Counsel (to the extent required by the TIA) and Independent Certificates in accordance with TIA §§314(c) and 314(d)(1). 
  
 Section 2.10 Book-Entry Notes. The Notes, upon original issuance,
shall be issued in the form of a typewritten Note or Notes representing the Book-Entry Notes, to be delivered to The Depository Trust Company, the initial Clearing Agency by or on behalf of the Issuer. Such Note or Notes shall be registered on the
Note Register in the name of the Note Depository (initially, Cede & Co.), and no Note Owner shall receive a Definitive Note representing such Note Owner’s interest in such Note, except as provided in Section 2.12. Unless and until
Definitive Notes have been issued to the Note Owners pursuant to Section 2.12: 
  
 (a) the provisions of this Section 2.10 shall be in full force and effect; 
  
 (b) the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing Agency for all purposes of this Indenture (including the
payment of principal of and interest on the Notes and the giving of instructions or directions hereunder) as the sole holder of the Notes and shall have no obligation to the Note Owners; 
  
 (c) to the extent that the provisions of this Section 2.10 conflict with any other provisions of this Indenture, the
provisions of this Section 2.10 shall control; 
  
 (d) the
rights of the Note Owners shall be exercised only through the Clearing Agency and shall be limited to those established by law and agreements between such Note Owners and the Clearing Agency and/or the Clearing Agency Participants and unless and
until Definitive Notes are issued pursuant to Section 2.12, the initial Clearing Agency shall make book-entry transfers between the Clearing Agency Participants and receive and transmit payments of principal of and interest on the Notes to
such Clearing Agency Participants, pursuant to the Note Depository Agreement; and 
  
 (e) whenever this Indenture requires or permits actions to be taken based upon instructions or directions of Holders of Notes evidencing a specified percentage of the Outstanding Amount of the Controlling Class, the
Clearing Agency shall be deemed to represent such percentage only to the extent that it has (i) received written instructions to such effect from Note Owners and/or Clearing Agency Participants owning or representing, respectively, such required
percentage of the beneficial interest in the Notes and (ii) has delivered such instructions to the Indenture Trustee. 
  

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 Section 2.11 Notices to Clearing Agency. Whenever a notice or other communication to the
Noteholders is required under this Indenture, unless and until Definitive Notes shall have been issued to Note Owners pursuant to Section 2.12, the Indenture Trustee shall give all such notices and communications specified herein to be given
to Noteholders to the Clearing Agency and shall have no other obligation to the Note Owners. 
  
 Section 2.12 Definitive Notes. 
  
 If (i) the Administrator advises the Indenture Trustee in writing that the Clearing Agency is no longer willing or able to properly discharge its responsibilities with respect to the Notes and the Issuer is unable to locate a qualified
successor; (ii) the Administrator, at its option, advises the Indenture Trustee in writing that it elects to terminate the book-entry system through the Clearing Agency; or (iii) after the occurrence of an Event of Default or a Servicer Default,
Note Owners representing beneficial interests aggregating at least a majority of the Outstanding Amount of the Controlling Class advise the Clearing Agency in writing that the continuation of a book-entry system through the Clearing Agency is no
longer in the best interests of the Note Owners, then the Clearing Agency shall notify all Note Owners and the Indenture Trustee of the occurrence of any such event and of the availability of Definitive Notes to Note Owners requesting the same. Upon
surrender to the Indenture Trustee of the typewritten Note or Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by registration instructions, the Issuer shall execute and the Indenture Trustee shall authenticate the
Definitive Notes in accordance with the instructions of the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee shall be liable for any delay in delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture Trustee shall recognize the Holders of the Definitive Notes as Noteholders. 
  
 Section 2.13 Seller as Noteholder. The Seller in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Issuer or its affiliates with the same rights it would have if it were not the Seller. 
  
 Section 2.14 Tax Treatment. The Issuer in entering into this Indenture, and the Noteholders and the Note Owners, by acquiring any Note or interest
therein, (i) express their intention that the Notes qualify under applicable tax law as indebtedness secured by the Collateral, and (ii) unless otherwise required by appropriate taxing authorities, agree to treat the Notes as indebtedness secured by
the Collateral for the purpose of federal income taxes, state and local income and franchise taxes, and any other taxes imposed upon, measured by or based upon gross or net income. 
  
 ARTICLE III 
 COVENANTS 
  
 Section 3.1 Payment of Principal
and Interest. The Issuer shall duly and punctually pay the principal of and interest on the Notes in accordance with the terms of the 
  

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 Notes and this Indenture. On each Distribution Date and on the Redemption Date (if applicable), the Indenture Trustee
shall distribute amounts on deposit in the Note Distribution Account to the Noteholders in accordance with Sections 2.7 and 8.2, less amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest
and/or principal. Any amounts so withheld shall be considered as having been paid by the Issuer to such Noteholder for all purposes of this Indenture. 
  
 Section 3.2 Maintenance of Agency Office. As long as any of the Notes remains outstanding, the Issuer shall maintain in the Borough of Manhattan,
the City of New York, an office (the “Agency Office”), being an office or agency where Notes may be surrendered to the Issuer for registration of transfer or exchange, and where notices and demands to or upon the Issuer in respect
of the Notes and this Indenture may be served. The Issuer hereby initially appoints the Indenture Trustee to serve as its agent for the foregoing purposes. The Issuer shall give prompt written notice to the Indenture Trustee of the location, and of
any change in the location, of the Agency Office. If at any time the Issuer shall fail to maintain any such office or agency or shall fail to furnish the Indenture Trustee with the address thereof, such surrenders, notices and demands may be made or
served at the Corporate Trust Office of the Indenture Trustee, and the Issuer hereby appoints the Indenture Trustee as its agent to receive all such surrenders, notices and demands. 
  
 Section 3.3 Money for Payments to Be Held in Trust. 
  
 (a) As provided in Section 8.2, all payments of amounts due and payable with respect to any Notes that are to be
made from amounts withdrawn from the Note Distribution Account pursuant to Section 8.2(d), (e) or (f) shall be made on behalf of the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from the Note
Distribution Account for payments of Notes shall be paid over to the Issuer except as provided in this Section 3.3. 
  
 (b) Before each Distribution Date or the Redemption Date (if applicable), the Indenture Trustee shall deposit in the Note Distribution Account an
aggregate sum sufficient to pay the amounts then becoming due with respect to the Notes, such sum to be held in trust for the benefit of the Persons entitled thereto. 
  
 (c) The Issuer shall cause each Paying Agent other than the Indenture Trustee to execute and deliver to the Indenture
Trustee an instrument in which such Paying Agent shall agree with the Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject to the provisions of this Section 3.3, that such Paying Agent shall:

  
 (i) hold all sums held by it for the payment
of amounts due with respect to the Notes in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided and pay such sums to such Persons as herein provided;

  
 (ii) give the Indenture Trustee notice of
any default by the Issuer (or any other obligor upon the Notes) of which it has actual knowledge in the making of any payment required to be made with respect to the Notes; 
  

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 (iii) at any time during the continuance of any such default, upon the written request
of the Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held in trust by such Paying Agent; 
  
 (iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums held by it in trust for the payment of
Notes if at any time it ceases to meet the standards required to be met by a Paying Agent in effect at the time of determination; and 
  
 (v) comply with all requirements of the Code with respect to the withholding from any payments made by it on any Notes of any applicable
withholding taxes imposed thereon and with respect to any applicable reporting requirements in connection therewith. 
  
 (d) The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, by Issuer Order
direct any Paying Agent to pay to the Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent; and upon such
payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
  
 (e) Subject to applicable laws with respect to escheat of funds, any money held by the Indenture Trustee or any Paying Agent in trust for the payment of
any amount due with respect to any Note and remaining unclaimed for one year after such amount has become due and payable shall be discharged from such trust and be paid by the Indenture Trustee to the Issuer on Issuer Request; and the Holder of
such Note shall thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee or such Paying Agent with respect to
such trust money shall thereupon cease; provided, however, that the Indenture Trustee or such Paying Agent, before being required to make any such payment, may at the expense of the Issuer cause to be published once, in a newspaper
published in the English language, customarily published on each Business Day and of general circulation in the City of New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days
from the date of such publication, any unclaimed balance of such money then remaining shall be paid to the Issuer. The Indenture Trustee may also adopt and employ, at the expense of the Issuer, any other reasonable means of notification of such
payment (including, but not limited to, mailing notice of such payment to Holders whose Notes have been called but have not been surrendered for redemption or whose right to or interest in monies due and payable but not claimed is determinable from
the records of the Indenture Trustee or of any Paying Agent, at the last address of record for each such Holder). 
  
 Section 3.4 Existence. The Issuer shall keep in full effect its existence, rights and franchises as a statutory trust under the laws of the State
of Delaware (unless it becomes, or any successor Issuer hereunder is or becomes, organized under the laws of any other State or of the United States of America, in which case the Issuer shall keep in full effect its existence, rights and franchises
under the laws of such other jurisdiction) and shall obtain and preserve its 
  

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 qualification to do business in each jurisdiction in which such qualification is or shall be necessary to protect the
validity and enforceability of this Indenture, the Notes, the Collateral and each other instrument or agreement included in the Collateral. 
  
 Section 3.5 Protection of Collateral; Acknowledgment of Pledge. The Issuer shall from time to time execute and deliver all such supplements and
amendments hereto and all such financing statements, amendments thereto, continuation statements, assignments, certificates, instruments of further assurance and other instruments, and shall take such other action as may be determined to be
necessary or advisable in an Opinion of Counsel to the Owner Trustee delivered to the Indenture Trustee to: 
  
 (i) maintain or preserve the lien and security interest (and the priority thereof) of this Indenture or carry out more effectively the
purposes hereof including by making the necessary filings of financing statements or amendments thereto within sixty days after the occurrence of any of the following: (A) any change in the name of the Issuer (or its successor), (B) any change in
the jurisdiction of formation of the Issuer (or its successor) and (C) any merger or consolidation or other change in the identity or organizational structure of the Issuer and by promptly notifying the Indenture Trustee of any such filings;

  
 (ii) perfect, publish notice of or protect
the validity of any Grant made or to be made by this Indenture; 
  
 (iii) enforce the rights of the Indenture Trustee and the Noteholders in any of the Collateral; or 
  
 (iv) preserve and defend title to the Collateral and the rights of the Indenture Trustee and the Noteholders in such Collateral against
the claims of all Persons and parties, and the Issuer hereby authorizes the Indenture Trustee to execute and file any financing statement, continuation statement or other instrument required by the Indenture Trustee pursuant to this Section
3.5. 
  
 Section 3.6 Opinions as to Collateral.

  
 (a) On the Closing Date, the Issuer shall furnish to the
Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such counsel, such action has been taken with respect to the recording and filing of this Indenture, any indentures supplemental hereto and any other requisite documents,
and with respect to the execution and filing of any financing statements and continuation statements as are necessary to perfect and make effective the lien and security interest of this Indenture and reciting the details of such action, or stating
that, in the opinion of such counsel, no such action is necessary to make such lien and security interest effective. 
  
 (b) On or before April 15 in each calendar year, beginning April 15, 2005, the Issuer shall furnish to the Indenture Trustee an Opinion of Counsel either
stating that, in the opinion of such counsel, such action has been taken with respect to the recording, filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and with respect to the
execution and filing of any financing statements and 
  

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 continuation statements as is necessary to maintain the lien and security interest created by this Indenture and reciting
the details of such action or stating that in the opinion of such counsel no such action is necessary to maintain the lien and security interest created by this Indenture. Such Opinion of Counsel shall also describe the recording, filing,
re-recording and refiling of this Indenture, any indentures supplemental hereto and any other requisite documents and the execution and filing of any financing statements and continuation statements that will, in the opinion of such counsel, be
required to maintain the lien and security interest of this Indenture until April 15 in the following calendar year. 
  
 Section 3.7 Performance of Obligations; Servicing of Receivables. 
  
 (a) The Issuer shall not take any action and shall use its reasonable efforts not to permit any action to be taken by
others that would release any Person from any of such Person’s material covenants or obligations under any instrument or agreement included in the Collateral or that would result in the amendment, hypothecation, subordination, termination or
discharge of, or impair the validity or effectiveness of, any such instrument or agreement, except as otherwise expressly provided in this Indenture, the Pooling Agreement, the Servicing Agreement, the Purchase Agreement, the Administration
Agreement or such other instrument or agreement. 
  
 (b) The
Issuer may contract with other Persons to assist it in performing its duties under this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee in the Basic Documents or an Officers’ Certificate of the
Issuer shall be deemed to be action taken by the Issuer. Initially, the Issuer has contracted with the Servicer and the Administrator to assist the Issuer in performing its duties under this Indenture. 
  
 (c) The Issuer shall punctually perform and observe all of its obligations
and agreements contained in this Indenture, the Basic Documents and in the instruments and agreements included in the Collateral, including but not limited to filing or causing to be filed all UCC financing statements and continuation statements
required to be filed under the terms of this Indenture, the Pooling Agreement and the Purchase Agreement in accordance with and within the time periods provided for herein and therein. 
  
 (d) If the Issuer shall have knowledge of the occurrence of a Servicer Default under the Servicing Agreement, the Issuer
shall promptly notify the Indenture Trustee and the Rating Agencies thereof, and shall specify in such notice the response or action, if any, the Issuer has taken or is taking with respect of such default. If a Servicer Default shall arise from the
failure of the Servicer to perform any of its duties or obligations under the Servicing Agreement with respect to the Receivables, the Issuer and the Indenture Trustee shall take all reasonable steps available to them pursuant to the Servicing
Agreement to remedy such failure. 
  
 (e) Without derogating from
the absolute nature of the assignment granted to the Indenture Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees that it shall not consent so as to permit NFRRC, NFC, or Harco Leasing to, without the
prior written consent of the Indenture Trustee or the Holders of at least a majority in Outstanding Amount of the Controlling Class, as required in accordance with the 
  

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 terms thereof, amend, modify, waive, supplement, terminate or surrender, or agree to any amendment, modification,
supplement, termination, waiver or surrender of, the terms of any Collateral or any of the Basic Documents, or waive timely performance or observance by the Seller under the Pooling Agreement or the Purchase Agreement, the Servicer under the
Servicing Agreement, the Administrator under the Administration Agreement, NFC under the Purchase Agreement or Harco Leasing under the Lease Purchase Agreement, except as specifically permitted under these documents; provided, however,
that, notwithstanding the foregoing, no action specified in the proviso to Section 9.2(a) shall be taken except in compliance with Section 9.2. If any such amendment, modification, supplement or waiver shall be so consented to
by the Indenture Trustee or such Holders, as applicable, the Issuer agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in its own name and at its own expense, such agreements, instruments, consents and
other documents as the Indenture Trustee may deem necessary or appropriate in the circumstances. 
  
 Section 3.8 Negative Covenants. So long as any Notes are Outstanding, the Issuer shall not: 
  
 (a) sell, transfer, exchange or otherwise dispose of any of the properties
or assets of the Issuer, except the Issuer may (i) collect, liquidate, sell or otherwise dispose of Receivables (including Warranty Receivables, Administrative Receivables and Liquidating Receivables), (ii) make cash payments out of the Designated
Accounts and the Certificate Distribution Account and (iii) take other actions, in each case as contemplated by the Basic Documents; 
  
 (b) claim any credit on, or make any deduction from the principal or interest payable in respect of the Notes (other than amounts properly withheld from
such payments under the Code or applicable state law) or assert any claim against any present or former Noteholder by reason of the payment of the taxes levied or assessed upon any part of the Collateral; 
  
 (c) voluntarily commence any insolvency, readjustment of debt, marshaling of
assets and liabilities or other proceeding, or apply for an order by a court or agency or supervisory authority for the winding-up or liquidation of its affairs or any other event specified in Section 5.1(f); or 
  
 (d) either (i) permit the validity or effectiveness of this Indenture to be
impaired, or permit the lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be released from any covenants or obligations with respect to the Notes under this Indenture except as may be
expressly permitted hereby, (ii) permit any lien, charge, excise, claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to be created on or extend to or otherwise arise upon or burden the Collateral or any
part thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’ liens and other liens that arise by operation of law, in each case on a Financed Vehicle and arising solely as a result of an action or omission of
the related Obligor), or (iii) permit the lien of this Indenture not to constitute a valid first priority security interest in the Collateral (other than with respect to any such tax, mechanics’ or other lien). 
  

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 Section 3.9 Annual Statement as to Compliance. The Issuer shall deliver to the Indenture Trustee,
with a copy to each of the Rating Agencies, on or before February 1 of each year, beginning February 1, 2005, an Officer’s Certificate signed by an Authorized Officer, dated as of the immediately preceding October 31, stating that: 

 
 (a) a review of the activities of the Issuer during such fiscal year and
of performance by the Issuer under this Indenture has been made under such Authorized Officer’s supervision; and 
  
 (b) to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has fulfilled in all material respects all of its
obligations under this Indenture throughout such year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such Authorized Officer and the nature and status thereof. A copy of such
certificate may be obtained by any Noteholder by a request in writing to the Issuer addressed to the Corporate Trust Office of the Indenture Trustee. 
  
 Section 3.10 Consolidation, Merger, etc., of the Issuer; Disposition of Trust Assets. 
  
 (a) The Issuer shall not consolidate or merge with or into any other
Person, unless: 
  
 (i) the Person (if other
than the Issuer) formed by or surviving such consolidation or merger shall be a Person organized and existing under the laws of the United States of America or any State and shall expressly assume, by an indenture supplemental hereto, executed and
delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and timely payment of the principal of and interest on all Notes and the performance or observance of every agreement and covenant of this Indenture on the
part of the Issuer to be performed or observed, all as provided herein; 
  
 (ii) immediately after giving effect to such merger or consolidation, no Default shall have occurred and be continuing; 
  
 (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction and such Person for each then outstanding
class of Notes; 
  
 (iv) any action as is
necessary to maintain the lien and security interest created by this Indenture shall have been completed; and 
  
 (v) the Issuer shall have delivered to the Indenture Trustee an Officers’ Certificate and an Opinion of Counsel addressed to the
Issuer, each stating: 
  
 (A) that such
consolidation or merger and such supplemental indenture comply with this Section 3.10; 
  
 (B) that such consolidation or merger and such supplemental indenture shall have no material adverse tax consequence to the Issuer or any
Securityholder; and 
  

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 (C) that all conditions precedent herein provided for in this Section 3.10 have
been complied with, which shall include any filing required by the Exchange Act. 
  
 (b) Except as otherwise expressly permitted by this Indenture or the other Basic Documents, the Issuer shall not sell, convey, exchange, transfer or otherwise dispose of any of its properties or assets, including
those included in the Collateral, to any Person, unless: 
  
 (i) the Person that acquires such properties or assets of the Issuer (A) shall be a United States citizen or a Person organized and existing under the laws of the United States of America or any State and (B) by an
indenture supplemental hereto, executed and delivered to the Indenture Trustee, in form satisfactory to the Indenture Trustee: 
  
 (A) expressly assumes the due and punctual payment of the principal of and interest on all Notes and the performance or observance of
every agreement and covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided herein; 
  
 (B) expressly agrees that all right, title and interest so sold, conveyed, exchanged, transferred or otherwise disposed of shall be
subject and subordinate to the rights of Noteholders; 
  
 (C) unless otherwise provided in such supplemental indenture, expressly agrees to indemnify, defend and hold harmless the Issuer against and from any loss, liability or expense arising under or related to this Indenture and the Notes; and

  
 (D) expressly agrees that such Person (or if
a group of Persons, then one specified Person) shall make all filings with the Commission (and any other appropriate Person) required by the Exchange Act in connection with the Notes; 
  
 (ii) immediately after giving effect to such transaction, no Default shall have occurred and be continuing;

  
 (iii) the Rating Agency Condition shall have
been satisfied with respect to such transaction and such Person for each then outstanding class of Notes; 
  
 (iv) any action as is necessary to maintain the lien and security interest created by this Indenture shall have been taken; and

  
 (v) the Issuer shall have delivered to the
Indenture Trustee an Officers’ Certificate and an Opinion of Counsel addressed to the Issuer, each stating that: 
  
 (A) such sale, conveyance, exchange, transfer or disposition and such supplemental indenture comply with this Section 3.10;

  

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 (B) such sale, conveyance, exchange, transfer or disposition and such supplemental
indenture have no material adverse tax consequence to the Issuer or to any Noteholders or Certificateholders; and 
  
 (C) that all conditions precedent herein provided for in this Section 3.10 have been complied with, which shall include any filing
required by the Exchange Act. 
  
 Section 3.11 Successor or
Transferee. 
  
 (a) Upon any consolidation or merger of the
Issuer in accordance with Section 3.10(a), the Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer under this
Indenture with the same effect as if such Person had been named as the Issuer herein. 
  
 (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to Section 3.10(b), the Issuer shall be released from every covenant and agreement of this Indenture to be observed or
performed on the part of the Issuer with respect to the Securityholders immediately upon the delivery of written notice to the Indenture Trustee from the Person acquiring such assets and properties stating that the Issuer is to be so released.

  
 Section 3.12 No Other Business. The Issuer shall not
engage in any business or activity other than acquiring, holding and managing the Collateral and the proceeds therefrom in the manner contemplated by the Basic Documents, issuing the Securities, making payments on the Securities and such other
activities that are necessary, suitable, desirable or convenient to accomplish the foregoing or are incidental thereto, as set forth in Section 2.3 of the Trust Agreement. After the end of the Funding Period, the Issuer shall not fund the
purchase of any new Receivables. 
  
 Section 3.13 No
Borrowing. The Issuer shall not issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any indebtedness for money borrowed other than indebtedness for money borrowed in respect of the Notes or in accordance with
the Basic Documents. 
  
 Section 3.14 Guarantees, Loans,
Advances and Other Liabilities. Except as contemplated by this Indenture or the other Basic Documents, the Issuer shall not make any loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the effect of
assuring another’s payment or performance on any obligation or capability of so doing or otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection with the obligations, stocks or dividends of, or own,
purchase, repurchase or acquire (or agree contingently to do so) any stock, obligations, assets or securities of, or any other interest in, or make any capital contribution to, any other Person. 
  
 Section 3.15 Servicer’s Obligations. The Issuer shall use its
best efforts to cause the Servicer to comply with its obligations under Sections 2.17, 3.01 and 3.02 of the Servicing Agreement. 
  

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 Section 3.16 Capital Expenditures. The Issuer shall not make any expenditure (whether by long-term
or operating lease or otherwise) for capital assets (either real, personal or intangible property) other than the purchase of the Receivables and other property and rights from the Seller pursuant to the Pooling Agreement. 
  
 Section 3.17 Removal of Administrator. So long as any Notes are
Outstanding, the Issuer shall not remove the Administrator without cause unless the Rating Agency Condition for each class of Notes then outstanding shall have been satisfied in connection with such removal. 
  
 Section 3.18 Restricted Payments. Except for payments of principal or
interest on or redemption of the Notes, so long as any Notes are Outstanding, the Issuer shall not, directly or indirectly: 
  
 (a) pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash, property, securities or a combination thereof, to
the Owner Trustee or any owner of a beneficial interest in the Issuer or otherwise, in each case with respect to any ownership or equity interest or similar security in or of the Issuer or to the Servicer; 
  
 (b) redeem, purchase, retire or otherwise acquire for value any such
ownership or equity interest or similar security; or 
  
 (c) set
aside or otherwise segregate any amounts for any such purpose; 
  
 provided, however, that the Issuer may make, or cause to be made, distributions to the Servicer, the Seller, the Indenture Trustee, the Owner Trustee and the Certificateholders as permitted by, and to the extent funds are
available for such purpose hereunder or under, the Pooling Agreement, the Servicing Agreement, the Trust Agreement or the other Basic Documents. The Issuer shall not, directly or indirectly, make payments to or distributions from the Collection
Account except in accordance with the Basic Documents. 
  
 Section
3.19 Notice of Events of Default. The Issuer agrees to give the Indenture Trustee and the Rating Agencies prompt written notice of each Event of Default hereunder, each Servicer Default under the Servicing Agreement, each default on the part
of the Seller of its obligations under the Pooling Agreement, each default on the part of NFC of its obligations under the Purchase Agreement and each default on the part of Harco Leasing under the Lease Purchase Agreement. 
  
 Section 3.20 Further Instruments and Acts. Upon request of the
Indenture Trustee, the Issuer shall execute and deliver such further instruments and do such further acts as may be reasonably necessary or proper to carry out more effectively the purpose of this Indenture. 
  
 Section 3.21 Indenture Trustee’s Assignment of Administrative
Receivables and Warranty Receivables. Upon receipt of the Administrative Purchase Payment or the Warranty Payment with respect to an Administrative Receivable or a Warranty Receivable, as the case may be, the Indenture Trustee shall release to
the Servicer or the Warranty Purchaser, as applicable, all of the Indenture Trustee’s right, title and interest in and to such repurchased 
  

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 Receivable and the Related Security with respect thereto and any documents relating thereto, and the Servicer or the
Warranty Purchaser, as applicable, shall thereupon own such Receivable and the Related Security with respect thereto free of any further obligation to the Indenture Trustee or the Noteholders with respect thereto. If in any enforcement suit or legal
proceeding it is held that the Servicer may not enforce a Receivable on the ground that it is not a real party in interest or a holder entitled to enforce such Receivable, the Indenture Trustee shall, at the Servicer’s expense, take such steps
as the Servicer deems necessary to enforce the Receivable, including bringing suit in the Indenture Trustee’s name or the names of the Securityholders. 
  
 Section 3.22 Representations and Warranties by the Issuer to the Indenture Trustee. The Issuer hereby represents and warrants to the Indenture
Trustee as follows: 
  
 (a) Good Title. No Receivable has
been sold, transferred, assigned or pledged by the Issuer to any Person other than the Indenture Trustee; immediately prior to the grant of a security interest in the Receivable pursuant to this Indenture, the Issuer had good and marketable title
thereto, free of any Lien (except for Permitted Liens); and, upon execution and delivery of this Indenture by the Issuer, the Indenture Trustee shall have all of the right, title and interest of the Issuer in, to and under the Collateral, free of
any Lien (except for any Lien which may exist in accessions to the Financed Vehicles not financed by NFC); and 
  
 (b) All Filings Made. All filings necessary under the UCC in any jurisdiction to give the Indenture Trustee a first priority perfected security
interest in the Receivables and, to the extent constituting Code Collateral, the other Collateral shall have been made. The Receivables constitute Code Collateral. 
  
 (c) Series 2004-A Portfolio Certificate. The Series 2004-A Portfolio Certificate has been duly registered in the
name of the Indenture Trustee and all other action necessary (including the filing of UCC-1 financing statements) to protect and perfect the Indenture Trustee’s security interest in the Collateral now in existence and hereafter acquired or
created has been duly and effectively taken. 
  
 (d) Lien of
Indenture. This Indenture constitutes a valid and continuing Lien on the Collateral in favor of the Indenture Trustee on behalf of the Noteholders, which Lien will be prior to all other Liens (other than Permitted Liens), will be enforceable as
such as against creditors of and purchasers from the Issuer in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of
creditors’ rights in general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law, and all action necessary to perfect such prior security interest has been duly taken.

  
 ARTICLE IV 
 SATISFACTION AND DISCHARGE 
  
 Section 4.1 Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect to the Notes except as to: (i)
rights of registration of transfer and exchange; (ii) substitution of mutilated, destroyed, lost or stolen Notes; (iii) rights of 
  

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 Noteholders to receive payments of principal thereof and interest thereon; (iv) Sections 3.2, 3.3, 3.4, 3.5, 3.8,
3.10, 3.11, 3.12, 3.13, 3.14, 3.16, 3.17, 3.19 and 3.21; (v) the rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the Indenture Trustee under Section 6.7 and the obligations of the
Indenture Trustee under Sections 4.2 and 4.4); and (vi) the rights of Noteholders as beneficiaries hereof with respect to the property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture Trustee, on
demand of and at the expense of the Issuer shall execute proper instruments acknowledging satisfaction and discharge of this Indenture with respect to the Notes, if: 
  
 (a) either: 
  
 (i) all Notes theretofore authenticated and delivered (other than (A) Notes that have been destroyed, lost or stolen and that have been
replaced or paid as provided in Section 2.5 and (B) Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.3) have been delivered to the Indenture Trustee for cancellation; or 
  
 (ii) all Notes not theretofore delivered to the Indenture Trustee for cancellation: 
  
 (A) have become due and payable, 
  
 (B) will be due and payable on their respective Final
Scheduled Distribution Dates within one year, or 
  
 (C) are to be called for redemption within one year under arrangements satisfactory to the Indenture Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and at the expense, of the Issuer. 
  
 and the Issuer, in the case of (A), (B) or (C) of subsection 4.1(a)(ii) above, has
irrevocably deposited or caused to be irrevocably deposited with the Indenture Trustee cash or direct obligations of or obligations guaranteed by the United States of America (which will mature prior to the date such amounts are payable), in trust
for such purpose, in an amount sufficient to pay and discharge the entire unpaid principal and accrued interest on such Notes not theretofore delivered to the Indenture Trustee for cancellation when due on the Final Scheduled Distribution Date for
such Notes or the Redemption Date for such Notes (if such Notes are to be called for redemption pursuant to Section 10.1(a)), as the case may be; 
  
 (b) the Issuer has paid or caused to be paid all other sums payable hereunder by the Issuer; and 
  
 (c) the Issuer has delivered to the Indenture Trustee an Officer’s
Certificate of the Issuer, an Opinion of Counsel and (if required by the TIA or the Indenture Trustee) an Independent Certificate from a firm of certified public accountants, each meeting the applicable requirements of Section 11.1(a) and
each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with. 
  

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 Section 4.2 Application of Trust Money. All monies deposited with the Indenture Trustee pursuant
to Section 4.1 shall be held in trust and applied by it, in accordance with the provisions of the Notes and this Indenture, to the payment, either directly or through any Paying Agent, as the Indenture Trustee may determine, to the Holders of
the particular Notes for the payment or redemption of which such monies have been deposited with the Indenture Trustee, of all sums due and to become due thereon for principal and interest; but such monies need not be segregated from other funds
except to the extent required herein or in the Servicing Agreement or by applicable law. 
  
 Section 4.3 Repayment of Monies Held by Paying Agent. In connection with the satisfaction and discharge of this Indenture with respect to each class of Notes, all monies then held by any Paying Agent other than
the Indenture Trustee under the provisions of this Indenture with respect to each such class of Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and applied according to Section 3.3 and thereupon such Paying
Agent shall be released from all further liability with respect to such monies. 
  
 Section 4.4 Duration of Position of Indenture Trustee for Benefit of Certificateholders. Notwithstanding (i) the earlier payment in full of all principal and interest due to the Noteholders under the terms of
Notes of each class, (ii) the cancellation of such Notes pursuant to Section 2.8 and (iii) the discharge of the Indenture Trustee’s duties hereunder with respect to such Notes, the Indenture Trustee shall continue to act in the capacity
as Indenture Trustee hereunder for the benefit of the Certificateholders and the Indenture Trustee, for the benefit of the Certificateholders, shall comply with its obligations under Sections 2.02, 7.02 and 7.03 of the Servicing
Agreement, as appropriate, until such time as all distributions in respect of the Certificates have been paid in full. 
  
 ARTICLE V 
 DEFAULT AND REMEDIES

  
 Section 5.1 Events of Default. For the purposes of
this Indenture, “Event of Default” wherever used herein, means any one of the following events: 
  
 (a) failure to pay any interest on any Note as and when the same becomes due and payable, and such default shall continue unremedied for a period of five
(5) days; or 
  
 (b) except as set forth in Section
5.1(c), failure to pay any instalment of the principal of any Note as and when the same becomes due and payable, and such default shall continue unremedied for a period of thirty (30) days after there shall have been given, by registered or
certified mail, to the Issuer and the Seller (or the Servicer, as applicable) by the Indenture Trustee or to the Issuer and the Seller (or the Servicer, as applicable) and the Indenture Trustee by the Holders of at least 25% of the Outstanding
Amount of the Controlling Class, a written notice specifying such default, demanding that it be remedied and stating that such notice is a “Notice of Default” hereunder; or 
  
 (c) failure to pay in full the outstanding principal balance of any class of Notes by the Final Scheduled Distribution Date
for such class; or 
  

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 (d) default in the observance or performance in any material respect of any covenant or agreement of the
Issuer made in this Indenture (other than a covenant or agreement, a default in the observance or performance of which is specifically dealt with elsewhere in this Section 5.1) which failure materially and adversely affects the rights of the
Noteholders, and such default shall continue or not be cured for a period of thirty (30) days after there shall have been given, by registered or certified mail, to the Issuer and the Seller (or the Servicer, as applicable) by the Indenture Trustee
or to the Issuer and the Seller (or the Servicer, as applicable) and the Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of the Controlling Class, a written notice specifying such default, demanding that it be remedied and
stating that such notice is a “Notice of Default” hereunder; or 
  
 (e) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of the Issuer or any substantial part of the Owner Trust Estate in an involuntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer (other than as Owner Trustee) or for any
substantial part of the Collateral, or ordering the winding-up or liquidation of the Issuer’s affairs, and such decree or order shall remain unstayed and in effect for a period of sixty (60) consecutive days; or 
  
 (f) the commencement by the Issuer of a voluntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the Issuer to the entry of an order for relief in an involuntary case under any such law, or the consent by the Issuer to the appointment or
taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of the Owner Trust Estate, or the making by the Issuer of any general assignment for the benefit of
creditors, or the failure by the Issuer generally to pay its debts as such debts become due, or the taking of action by the Issuer in furtherance of any of the foregoing. 
  
 The Issuer shall deliver to the Indenture Trustee, within five (5) Business Days after learning of the occurrence thereof, written notice in
the form of an Officer’s Certificate of any Default under Section 5.1(d), its status and what action the Issuer is taking or proposes to take with respect thereto. 
  
 Section 5.2 Acceleration of Maturity; Rescission and Annulment. 
  
 (a) If an Event of Default should occur and be continuing, then and in
every such case, unless the principal amount of the Notes shall have already become due and payable, either the Indenture Trustee or the Holders of Notes representing not less than a majority of the Outstanding Amount of the Controlling Class may
declare all the Notes to be immediately due and payable, by a notice in writing to the Issuer (and to the Indenture Trustee if given by the Noteholders) setting forth the Event or Events of Default, and upon any such declaration the unpaid principal
amount of the Notes together with accrued and unpaid interest thereon through the date of acceleration, shall become immediately due and payable. 
  
 (b) At any time after such declaration of acceleration of maturity of the Notes has been made and before a judgment or decree for payment of the money
due 
  

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 thereunder has been obtained by the Indenture Trustee as hereinafter provided in this Article V, the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class, by written notice to the Issuer and the Indenture Trustee, may rescind and annul such declaration and its consequences with respect to the Notes;
provided, that no such rescission and annulment shall extend to or affect any subsequent or other Default or impair any right consequent thereto; and provided further, that if the Indenture Trustee shall have proceeded to enforce any
right under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission and annulment or for any other reason, or such proceedings shall have been determined adversely to the Indenture Trustee, then and
in every such case, the Indenture Trustee, the Issuer and the Noteholders, as the case may be, shall be restored to their respective former positions and rights hereunder, and all rights, remedies and powers of the Indenture Trustee, the Issuer and
the Noteholders, as the case may be, shall continue as though no such proceedings had been commenced. 
  
 Section 5.3 Collection of Indebtedness and Suits for Enforcement by Indenture Trustee. 
  
 (a) The Issuer covenants that if there shall occur an Event of Default
under Sections 5.1(a), (b) or (c), the Issuer shall, upon demand of the Indenture Trustee, pay to the Indenture Trustee, for the benefit of the Noteholders in accordance with their respective outstanding principal amounts, the entire
amount then due and payable on the Notes for principal and interest, with interest through the date of such payment on the overdue principal amount of each class of Notes, at the rate applicable to such class of Notes, and in addition thereto such
further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and counsel. 
  
 (b) If the Issuer shall fail forthwith to pay such amounts upon such demand,
the Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or final decree, and may enforce the same against
the Issuer or other obligor upon such Notes and collect in the manner provided by law out of the property of the Issuer or other obligor upon the Notes, wherever situated, the monies adjudged or decreed to be payable. 
  
 (c) If an Event of Default occurs and is continuing, the Indenture Trustee
may, as more particularly provided in Section 5.4, in its discretion, proceed to protect and enforce its rights and the rights of the Noteholders, by such appropriate Proceedings as the Indenture Trustee shall deem most effective to protect
and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by applicable law. 
  
 (d)
If there shall be pending, relative to the Issuer or any other obligor upon the Notes or any Person having or claiming an ownership interest in the Collateral, Proceedings under Title 11 of the United States Code or any other applicable federal or
state bankruptcy, insolvency or other similar law, or if a receiver, assignee or trustee in bankruptcy or reorganization, liquidator, sequestrator or similar official shall have been appointed for or taken 
  

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 possession of the Issuer or its property or such other obligor or Person, or in case of any other comparable judicial
Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the principal of any Notes shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to the provisions of this Section 5.3, shall be entitled and empowered, by intervention in such Proceedings
or otherwise: 
  
 (i) to file and prove a claim
or claims for the entire amount of the unpaid principal and interest owing in respect of the Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Indenture Trustee (including any claim
for reasonable compensation to the Indenture Trustee and each predecessor trustee, and their respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities incurred, and all advances made, by the Indenture Trustee
and each predecessor trustee, except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings; 
  
 (ii) unless prohibited by applicable law and regulations, to vote on behalf of the Holders of Notes in any election of a trustee, a
standby trustee or Person performing similar functions in any such Proceedings; 
  
 (iii) to collect and receive any monies or other property payable or deliverable on any such claims and to distribute all amounts
received with respect to the claims of the Noteholders and of the Indenture Trustee on their behalf; and 
  
 (iv) to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the
Indenture Trustee or the Holders of Notes allowed in any judicial proceedings relative to the Issuer, its creditors and its property; 
  
 and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding is hereby authorized by each of such Noteholders to make payments to the
Indenture Trustee, and, if the Indenture Trustee shall consent to the making of payments directly to such Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover reasonable compensation to the Indenture Trustee,
each predecessor trustee and their respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Indenture Trustee and each predecessor trustee, except as a result of negligence or bad
faith. 
  
 (e) Nothing herein contained shall be deemed to
authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or to
authorize the Indenture Trustee to vote in respect of the claim of any Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar Person. 
  
 (f) All rights of action and of asserting claims under this Indenture, or
under any of the Notes, may be enforced by the Indenture Trustee without the possession of any 
  

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 of the Notes or the production thereof in any trial or other Proceedings relative thereto, and any such Proceedings
instituted by the Indenture Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements and compensation of the Indenture Trustee, each predecessor
trustee and their respective agents and attorneys, shall be applied in accordance with Section 5.4(b). 
  
 (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving the interpretation of any provision of this Indenture to
which the Indenture Trustee shall be a party), the Indenture Trustee shall be held to represent all the Noteholders, and it shall not be necessary to make any Noteholder a party to any such Proceedings. 
  
 Section 5.4 Remedies; Priorities. 
  
 (a) If an Event of Default shall have occurred and be continuing and the
Notes have been accelerated under Section 5.2(a), the Indenture Trustee may do one or more of the following (subject to Section 5.5): 
  
 (i) institute Proceedings in its own name and as trustee of an express trust for the collection of all amounts then due and payable on
the Notes or under this Indenture with respect thereto, whether by declaration of acceleration or otherwise, enforce any judgment obtained, and collect from the Issuer and any other obligor upon such Notes monies adjudged due; 
  
 (ii) institute Proceedings from time to time for the
complete or partial foreclosure of this Indenture with respect to the Collateral; 
  
 (iii) exercise any remedies of a secured party under the UCC and take any other appropriate action to protect and enforce the rights and
remedies of the Indenture Trustee and the Noteholders; and 
  
 (iv) sell the Collateral or any portion thereof or rights or interest therein, at one or more public or private sales called and conducted in any manner permitted by law or elect to have the Issuer maintain possession
of the Collateral, including the Receivables included therein and continue to apply collections on such Receivables as if there had been no declaration of acceleration; provided, however, that the Indenture Trustee may not sell or
otherwise liquidate the Collateral following an Event of Default and acceleration of the Notes, unless (A) the Holders of all of the aggregate Outstanding Amount of the Notes consent thereto, (B) the proceeds of such sale or liquidation
distributable to the Noteholders are sufficient to discharge in full the principal of and the accrued interest on the Notes, in each case as of the date of such sale or liquidation or (C) (i) there has been an Event of Default under Section
5.1(a), (b) or (c) or otherwise arising from a failure to make a required payment of principal on any Notes, (ii) the Indenture Trustee determines that the Collateral will not continue to provide sufficient funds for the payment of
principal of and interest on the Notes as and when they would have become due if the Notes had not been declared due and payable and (iii) the Indenture Trustee obtains the consent of Holders of a majority of the aggregate 
  

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 Outstanding Amount of the Controlling Class. In determining such sufficiency or insufficiency with
respect to clauses (B) and (C), the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the
sufficiency of the Collateral for such purpose. 
  
 (b) If the
Indenture Trustee collects any money or property pursuant to this Article V, it shall pay out or deposit such money or property in the following order: 
  
 FIRST: to the Indenture Trustee for amounts due under Section 6.7; and 
  
 SECOND: to the Collection Account, for distribution pursuant to Section 4.02 of the Pooling Agreement and Section
8.2(c) of this Indenture. 
  
 Section 5.5 Optional
Preservation of the Collateral. If the Notes have been declared to be due and payable under Section 5.2(a) following an Event of Default and such declaration and its consequences have not been rescinded and annulled in accordance with
Section 5.2(b), the Indenture Trustee may, but need not, elect to take and maintain possession of the Collateral. It is the desire of the parties hereto and the Noteholders that there be at all times sufficient funds for the payment of
principal of and interest on the Notes, and the Indenture Trustee shall take such desire into account when determining whether or not to take and maintain possession of the Collateral. In determining whether to take and maintain possession of the
Collateral, the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent investment banking or accounting firm of national reputation as to the feasibility of such proposed action and as to the sufficiency of the
Collateral for such purpose. 
  
 Section 5.6 Limitation of
Suits. No Holder of any Note shall have any right to institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless: 
  
 (i) such Holder has previously given written notice to the
Indenture Trustee of a continuing Event of Default; 
  
 (ii) the Holders of not less than 25% of the Outstanding Amount of the Controlling Class have made written request to the Indenture Trustee to institute such Proceeding in respect of such Event of Default in its own name as Indenture
Trustee hereunder; 
  
 (iii) such Holder or
Holders have offered to the Indenture Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in complying with such request; 
  

(iv) the Indenture Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute such
Proceedings; and 
  
 (v) no direction
inconsistent with such written request has been given to the Indenture Trustee during such 60-day period by the Holders of a majority of the Outstanding Amount of the Controlling Class; 
  

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

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 Section 5.11 Control by Noteholders. The Holders of a majority of the Outstanding Amount of the
Controlling Class shall, subject to provision being made for indemnification against costs, expenses and liabilities in a form satisfactory to the Indenture Trustee, have the right to direct the time, method and place of conducting any Proceeding
for any remedy available to the Indenture Trustee with respect to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided, however, that: 
  
 (i) such direction shall not be in conflict with any rule of law or with this Indenture; 
  
 (ii) subject to the express terms of Section 5.4,
any direction to the Indenture Trustee to sell or liquidate the Collateral shall be by the Holders of Notes representing 100% of the Outstanding Amount of the Notes; 
  
 (iii) if the conditions set forth in Section 5.5 have been satisfied and the Indenture Trustee
elects to retain the Collateral pursuant to Section 5.5, then any direction to the Indenture Trustee by Holders of Notes representing less than 100% of the Outstanding Amount of the Notes to sell or liquidate the Collateral shall be of no
force and effect; and 
  
 (iv) the Indenture
Trustee may take any other action deemed proper by the Indenture Trustee that is not inconsistent with such direction; 
  
 provided, however, that, subject to Section 6.1, the Indenture Trustee need not take any action that it determines might cause it to incur any
liability (a) with respect to which the Indenture Trustee shall have reasonable grounds to believe that adequate indemnity against such liability in not assured to it and (b) which might materially adversely affect the rights of any Noteholders not
consenting to such action. 
  
 Section 5.12 Waiver of Past
Defaults. 
  
 (a) Prior to the declaration of the
acceleration of the maturity of the Notes as provided in Section 5.2(a), the Holders of not less than a majority of the Outstanding Amount of the Controlling Class may waive any past Default and its consequences except a Default (i) in the
payment of principal of or interest on any of the Notes or (ii) in respect of a covenant or provision hereof which cannot be modified or amended without the consent of the Holder of each Note. In the case of any such waiver, the Issuer, the
Indenture Trustee and the Noteholders shall be restored to their respective former positions and rights hereunder; but no such waiver shall extend to or affect any subsequent or other Default or impair any right consequent thereto. 
  
 (b) Upon any such waiver, such Default shall cease to exist and be deemed to
have been cured and not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to or affect any subsequent or
other Default or impair any right consequent thereto. 
  

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

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 Purchase Agreement and the Purchase Agreement, by Harco Leasing of its obligation under or in connection with the Lease
Purchase Agreement or any other party to a Titling Trust Document of its obligations under or in connection with such Titling Trust Document in accordance with the terms thereof, and to exercise any and all rights, remedies, powers and privileges
lawfully available to the Issuer under or in connection with the Pooling Agreement, the Servicing Agreement, the Purchase Agreement, the Lease Purchase Agreement and the Titling Trust Documents to the extent and in the manner directed by the
Indenture Trustee, including the transmission of notices of default on the part of the Seller, the Servicer, NFC, Harco Leasing or any other party to a Titling Trust Document thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Seller, the Servicer, NFC, Harco Leasing or any other Party to a Titling Trust Document of each of their respective obligations under the Pooling Agreement, the Servicing Agreement, the Purchase
Agreement, the Lease Purchase Agreement and the Titling Trust Documents. 
  
 (b) If an Event of Default has occurred and is continuing, the Indenture Trustee may, and, at the direction (which direction shall be in writing or by telephone (confirmed in writing promptly thereafter)) of the
Holders of 66 2/3% of the Outstanding Amount of the Controlling Class shall, exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Seller under or in connection with the Pooling Agreement and the Purchase Agreement, the Servicer under or in connection with the Servicing Agreement, NFC under or in connection with the Lease
Purchase Agreement and the Purchase Agreement, Harco Leasing under or in connection with the Lease Purchase Agreement or any party to a Titling Trust Document under or in connection with such Titling Trust Document, including the right or power to
take any action to compel or secure performance or observance by the Seller, the Servicer, NFC, Harco Leasing or such party of each of their obligations to the Issuer thereunder and to give any consent, request, notice, direction, approval,
extension or waiver under the Pooling Agreement, the Servicing Agreement, the Purchase Agreement, the Lease Purchase Agreement and the Titling Trust Documents, and any right of the Issuer to take such action shall be suspended. 
  
 ARTICLE VI 
 THE INDENTURE TRUSTEE 
  
 Section 6.1 Duties of Indenture Trustee. 
  
 (a) If an Event of Default has occurred and is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a
prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
  
 (b) Except during the continuance of an Event of Default: 
  
 (i) the Indenture Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, the
Pooling Agreement and the Servicing Agreement and no implied covenants or obligations shall be read into this Indenture, the Pooling Agreement, the Servicing Agreement or any other Basic Document against the Indenture Trustee; and 
  

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 (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of this Indenture; provided, however,
that the Indenture Trustee shall examine the certificates and opinions to determine whether or not they conform to any applicable requirements of this Indenture. 
  
 (c) The Indenture Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act
or its own wilful misconduct, except that: 
  
 (i) this Section 6.1(c) does not limit the effect of Section 6.1(b); 
  
 (ii) the Indenture Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer unless it is proved
that the Indenture Trustee was negligent in ascertaining the pertinent facts; and 
  
 (iii) the Indenture Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a
direction received by it pursuant to Section 5.11. 
  
 (d)
The Indenture Trustee shall not be liable for interest on any money received by it except as the Indenture Trustee may agree in writing with the Issuer. 
  
 (e) Money held in trust by the Indenture Trustee need not be segregated from other funds except to the extent required by law or the terms of this
Indenture or the Servicing Agreement. 
  
 (f) No provision of
this Indenture shall require the Indenture Trustee to expend or risk its own funds or otherwise incur financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have
reasonable grounds to believe that repayments of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. 
  
 (g) The Indenture Trustee shall reimburse the Seller and any director, officer, employee or agent of the Seller for any contractual damages, liability or
expense incurred by reason of the Indenture Trustee’s willful misfeasance, bad faith or gross negligence (except errors in judgment) in the performance of its duties under any of the Further Transfer and Servicing Agreements, or by reason of
reckless disregard of its obligations and duties under any of the Further Transfer and Servicing Agreements. 
  
 (h) Every provision of this Indenture relating to the Indenture Trustee shall be subject to the provisions of this Section 6.1 and to the
provisions of the TIA. 
  
 Section 6.2 Rights of Indenture
Trustee. 
  
 (a) The Indenture Trustee may rely on any
document believed by it to be genuine and to have been signed or presented by the proper Person. The Indenture Trustee need not investigate any fact or matter stated in the document. 
  

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 (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate from the Issuer or an Opinion of Counsel that such action or omission is required or permissible hereunder. The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate or Opinion of Counsel. 
  
 (c) The
Indenture Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys or a custodian or nominee, and the Indenture Trustee shall not be responsible for any misconduct
or negligence on the part of, or for the supervision of, any such agent, attorney, custodian or nominee appointed with due care by it hereunder. 
  
 (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its
rights or powers; provided, however, that the Indenture Trustee’s conduct does not constitute wilful misconduct, negligence or bad faith. 
  
 (e) The Indenture Trustee may consult with counsel, and the advice or opinion of counsel with respect to legal matters relating to this Indenture and the
Notes shall be full and complete authorization and protection from liability in respect to any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel. 
  
 Section 6.3 Indenture Trustee May Own Notes. The Indenture Trustee in
its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer, the Servicer or any of their respective Affiliates with the same rights it would have if it were not Indenture Trustee; provided,
however, that the Indenture Trustee shall comply with Sections 6.10 and 6.11. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with like rights. 
  
 Section 6.4 Indenture Trustee’s Disclaimer. The Indenture Trustee
shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not be responsible for any
statement of the Issuer in the Indenture or in any document issued in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s certificate of authentication. 
  
 Section 6.5 Notice of Defaults. If a Default occurs and is continuing
and if it is known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail to each Noteholder notice of the Default within 30 days after such Responsible Officer obtained knowledge of such Default. Except in the case of a
Default in payment of principal of or interest on any Note, the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of
Noteholders. 
  
 Section 6.6 Reports by Indenture Trustee to
Holders. The Indenture Trustee shall deliver to each Noteholder the information and documents set forth in Article VII, and, in addition, all such information with respect to the Notes as may be required, as specified by the Servicer, to enable
such Holder to prepare its federal and state income tax returns. 
  

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 Section 6.7 Compensation; Indemnity. 
  
 (a) The Issuer shall cause the Servicer pursuant to the Servicing Agreement
to pay to the Indenture Trustee from time to time such compensation for its services as shall be agreed upon in writing. The Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The
Issuer shall cause the Servicer pursuant to the Servicing Agreement to reimburse the Indenture Trustee for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in addition to the compensation for its services.
Such expenses shall include the reasonable compensation and expenses, disbursements and advances of the Indenture Trustee’s agents, counsel, accountants and experts. The Issuer shall cause the Servicer pursuant to the Servicing Agreement to
indemnify the Indenture Trustee in accordance with Section 6.05 of the Servicing Agreement. 
  
 (b) The Issuer’s obligations to the Indenture Trustee pursuant to this Section 6.7 shall survive the discharge of this Indenture. When the
Indenture Trustee incurs expenses after the occurrence of a Default specified in Section 5.1(e) or (f) the expenses are intended to constitute expenses of administration under Title 11 of the United States Code or any other applicable
federal or state bankruptcy, insolvency or similar law. 
  
 Section 6.8 Replacement of Indenture Trustee. 
  
 (a) The Indenture Trustee may at any time give notice of its intent to resign by so notifying the Issuer; provided, however, that no such resignation shall become effective and the Indenture Trustee shall not resign prior to
the time set forth in Section 6.8(c). The Holders of a majority in Outstanding Amount of the Controlling Class may remove the Indenture Trustee by so notifying the Indenture Trustee and may appoint a successor Indenture Trustee. Such
resignation or removal shall become effective in accordance with Section 6.8(c). The Issuer shall remove the Indenture Trustee if: 
  
 (i) the Indenture Trustee fails to comply with Section 6.11; 
  
 (ii) the Indenture Trustee is adjudged a bankrupt or insolvent; 
  
 (iii) a receiver or other public officer takes charge of
the Indenture Trustee or its property; or 
  
 (iv) the Indenture Trustee otherwise becomes incapable of acting. 
  
 (b) If the Indenture Trustee gives notice of its intent to resign or is removed or if a vacancy exists in the office of the Indenture Trustee for any reason (the Indenture Trustee in such event being referred to
herein as the retiring Indenture Trustee), the Issuer shall promptly appoint and designate a successor Indenture Trustee. 
  
 (c) A successor Indenture Trustee shall deliver a written acceptance of its appointment and designation to the retiring Indenture Trustee and to the
Issuer. Thereupon 
  

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 the resignation or removal of the retiring Indenture Trustee shall become effective, and the successor Indenture Trustee
shall have all the rights, powers and duties of the Indenture Trustee under this Indenture. The successor Indenture Trustee shall mail a notice of its succession to Noteholders and to each of the Rating Agencies. The retiring Indenture Trustee shall
promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee. 
  
 (d) If a successor Indenture Trustee does not take office within 60 days after the retiring Indenture Trustee gives notice of its intent to resign or is
removed, the retiring Trustee, the Issuer or the Holders of a majority of the Outstanding Amount of the Controlling Class may petition any court of competent jurisdiction for the appointment and designation of a successor Indenture Trustee.

  
 (e) If the Indenture Trustee fails to comply with Section
6.11, any Noteholder may petition any court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a successor Indenture Trustee. 
  
 (f) Notwithstanding the replacement of the Indenture Trustee pursuant to this Section 6.8, the Issuer’s
obligations under Section 6.7 and the Servicer’s corresponding obligations under the Servicing Agreement shall continue for the benefit of the retiring Indenture Trustee. 
  
 Section 6.9 Merger or Consolidation of Indenture Trustee. 
  
 (a) Any Person into which the Indenture Trustee may be merged or with which
it may be consolidated, or any Person resulting from any merger or consolidation to which the Indenture Trustee shall be a party, or any corporation succeeding to the corporate trust business of the Indenture Trustee, shall be the successor of the
Indenture Trustee under this Indenture; provided, however, that such Person shall be eligible under the provisions of Section 6.11, without the execution or filing of any instrument or any further act on the part of any of the
parties to this Indenture, anything in this Indenture to the contrary notwithstanding. Following such merger or consolidation, the successor Indenture Trustee shall mail a notice of such merger or consolidation to each of the Rating Agencies.

  
 (b) If at the time such successor or successors by merger or
consolidation to the Indenture Trustee shall succeed to the trusts created by this Indenture, any of the Notes shall have been authenticated but not delivered, any such successor to the Indenture Trustee may adopt the certificate of authentication
of any predecessor trustee, and deliver such Notes so authenticated; and in case at that time any of the Notes shall not have been authenticated, any successor to the Indenture Trustee may authenticate such Notes either in the name of any
predecessor hereunder or in the name of the successor to the Indenture Trustee. In all such cases such certificate of authentication shall have the same full force as is provided anywhere in the Notes or herein with respect to the certificate of
authentication of the Indenture Trustee. 
  

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 Section 6.10 Appointment of Co-Indenture Trustee or Separate Indenture Trustee. 
  
 (a) Notwithstanding any other provisions of this Indenture, at any time,
for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Collateral or any Financed Vehicle may at the time be located, the Indenture Trustee shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate trustees, of all or any part of the Collateral, and to vest in such Person or Persons, in such capacity and for the benefit of the Noteholders and
(only to the extent expressly provided herein) the Certificateholders, such title to the Collateral, or any part hereof, and, subject to the other provisions of this Section 6.10, such powers, duties, obligations, rights and trusts as the
Indenture Trustee may consider necessary or desirable. No co-trustee or separate trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under Section 6.11 and no notice to Noteholders of the appointment of
any co-trustee or separate trustee shall be required under Section 6.8. 
  
 (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed and act subject to the following provisions and conditions: 
  
 (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee shall be
conferred or imposed upon and exercised or performed by the Indenture Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Indenture
Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed the Indenture Trustee shall be incompetent or unqualified to perform such act or acts, in which event
such rights, powers, duties and obligations (including the holding of title to the Collateral or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the
direction of the Indenture Trustee; 
  
 (ii) no
trustee hereunder shall be personally liable by reason of any act or omission of any other trustee hereunder; and 
  
 (iii) the Indenture Trustee may at any time accept the resignation of or remove any separate trustee or co-trustee. 
  
 (c) Any notice, request or other writing given to the Indenture Trustee
shall be deemed to have been given to each of the then separate trustees and co-trustees, as effectively as if given to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture and the conditions of
this Article VI. Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Indenture Trustee or separately, as
may be provided therein, subject to all the provisions of this Indenture, specifically including every provision of this Indenture relating to the conduct of, affecting the liability of, or affording protection to, the Indenture Trustee. Every such
instrument shall be filed with the Indenture Trustee. 
  
 (d) Any
separate trustee or co-trustee may at any time constitute the Indenture Trustee, its agent or attorney-in-fact with full power and authority, to the extent not 
  

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 prohibited by law, to do any lawful act under or in respect of this Indenture on its behalf and in its name. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Indenture Trustee, to the extent permitted by law, without
the appointment of a new or successor trustee. 
  
 Section 6.11
Eligibility; Disqualification. 
  
 (a) The Indenture
Trustee shall at all times satisfy the requirements of TIA § 310(a). The Indenture Trustee shall have a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition and (unless waived
by Moody’s) it shall have a long term unsecured debt rating of Baa3 or better by Moody’s. The Indenture Trustee shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of TIA
§ 310(b)(1) any indenture or indentures under which other securities of the Issuer are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. 
  
 (b) If a Default occurs and is continuing, and the Indenture Trustee is deemed to have a conflicting interest as a result
of acting as trustee for the Class A Notes, the Class B Notes and the Class C Notes, the Issuer shall appoint a successor Indenture Trustee for one, two or all of such classes, so that there will be separate Indenture Trustees for the Class A Notes,
the Class B Notes and the Class C Notes. No such event shall alter the voting rights of the Class A Noteholders, the Class B Noteholders or the Class C Noteholders under this Indenture or any other Basic Document. However, so long as any amounts
remain unpaid with respect to the Class A Notes, only the Indenture Trustee for the Class A Noteholders will have the right to exercise remedies under this Indenture (but subject to the express provisions of Section 5.4 and to the right of
the Class B Noteholders and the Class C Noteholders to receive their respective shares of any proceeds of enforcement, subject to the subordination of the Class B Notes to the Class A Notes and to the subordination of the Class C Notes to the Class
A Notes and the Class B Notes as described herein) to make deposits to and withdrawals from the Designated Accounts, hold Designated Account Property and to make distributions to Noteholders from the Note Distribution Account. Upon repayment of the
Class A Notes in full, all rights to exercise remedies under the Indenture will transfer to the Indenture Trustee for the Class B Notes and for so long as any amounts remain unpaid with respect to the Class B Notes, only the Indenture Trustee for
the Class B Noteholders will have the right to exercise remedies under this Indenture (but subject to the express provisions of Section 5.4 and to the right of the Class C Noteholders to receive their share of any proceeds of enforcement,
subject to the subordination of the Class C Notes to the Class B Notes as described herein) to make deposits to and withdrawals from the Designated Accounts, hold Designated Account Property and to make distributions to Noteholders from the Note
Distribution Account. Upon repayment of the Class B Notes in full, all rights to exercise remedies under the Indenture will transfer to the Indenture Trustee for the Class C Notes. 
  
 (c) In the case of the appointment hereunder of a successor Indenture Trustee with respect to any class of Notes, the
Issuer, the retiring Indenture Trustee and the successor Indenture Trustee with respect to such class of Notes shall execute and deliver an indenture supplemental hereto wherein the successor Indenture Trustee shall accept such 
  

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 appointment and which (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to,
and to vest in, the successor Indenture Trustee all the rights, powers, trusts and duties of the retiring Indenture Trustee with respect to the Notes of the class to which the appointment of such successor Indenture Trustee relates, (ii) if the
retiring Indenture Trustee is not retiring with respect to all classes of Notes, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Indenture Trustee with
respect to the Notes of each class as to which the retiring Indenture Trustee is not retiring shall continue to be vested in the retiring Indenture Trustee, and (iii) shall add to or change any of the provisions of this Indenture as shall be
necessary to provide for or facilitate the administration of the trusts hereunder by more than one Indenture Trustee, it being understood that nothing herein or in such supplemental indenture shall constitute such Indenture Trustees co-trustees of
the same trust and that each such Indenture Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Indenture Trustee; and upon the execution and delivery of such
supplemental indenture the resignation or removal of the retiring Indenture Trustee shall become effective to the extent provided therein. 
  
 Section 6.12 Preferential Collection of Claims Against Issuer. The Indenture Trustee shall comply with TIA § 311(a), excluding any creditor
relationship listed in TIA § 311(b). A trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated. 
  
 Section 6.13 Representations and Warranties of Indenture Trustee. The Indenture Trustee represents and warrants as of the Closing Date that:

  
 (a) the Indenture Trustee is a New York banking corporation
duly organized, validly existing and in good standing under the laws of the State of New York and the eligibility requirements set forth in Section 6.11 are satisfied with respect to the Indenture Trustee; 
  
 (b) the Indenture Trustee has full power, authority and legal right to
execute, deliver and perform this Indenture, and has taken all necessary action to authorize the execution, delivery and performance by it of this Indenture; 
  
 (c) the execution, delivery and performance by the Indenture Trustee of this Indenture (i) shall not violate any provision of any law or regulation
governing the banking and trust powers of the Indenture Trustee or any order, writ, judgment or decree of any court, arbitrator, or governmental authority applicable to the Indenture Trustee or any of its assets, (ii) shall not violate any provision
of the corporate charter or by-laws of the Indenture Trustee or (iii) shall not violate any provision of, or constitute, with or without notice or lapse of time, a default under, or result in the creation or imposition of any lien on any properties
included in the Collateral pursuant to the provisions of any mortgage, indenture, contract, agreement or other undertaking to which it is a party, which violation, default or lien could reasonably be expected to have a materially adverse effect on
the Indenture Trustee’s performance or ability to perform its duties under this Indenture or on the transactions contemplated in this Indenture; 
  

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 (d) the execution, delivery and performance by the Indenture Trustee of this Indenture shall not require
the authorization, consent or approval of, the giving of notice to, the filing or registration with, or the taking of any other action in respect of, any governmental authority or agency regulating the banking and corporate trust activities of the
Indenture Trustee; and 
  
 (e) this Indenture has been duly
executed and delivered by the Indenture Trustee and constitutes the legal, valid and binding agreement of the Indenture Trustee, enforceable in accordance with its terms. 
  
 Section 6.14 Indenture Trustee May Enforce Claims Without Possession of Notes. All rights of action and claims under
this Indenture or the Notes may be prosecuted and enforced by the Indenture Trustee without the possession of any of the Notes or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Indenture Trustee
shall be brought in its own name as Indenture Trustee. Any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee, its agents and counsel, be for the
ratable benefit of the Noteholders and (only to the extent expressly provided herein) the Certificateholders in respect of which such judgment has been obtained. 
  
 Section 6.15 Suit for Enforcement. If an Event of Default shall occur and be continuing, the Indenture Trustee in its
discretion may, subject to the provisions of Section 6.1, proceed to protect and enforce its rights and the rights of the Noteholders under this Indenture by a Proceeding whether for the specific performance of any covenant or agreement
contained in this Indenture or in aid of the execution of any power granted in this Indenture or for the enforcement of any other legal, equitable or other remedy as the Indenture Trustee, being advised by counsel, shall deem most effectual to
protect and enforce any of the rights of the Indenture Trustee or the Noteholders. 
  
 Section 6.16 Rights of Noteholders to Direct Indenture Trustee. Holders of Notes evidencing not less than a majority of the Outstanding Amount of the Controlling Class shall have the right to direct in writing
the time, method and place of conducting any Proceeding for any remedy available to the Indenture Trustee or exercising any trust or power conferred on the Indenture Trustee; provided, however, that subject to Section 6.1, the Indenture
Trustee shall have the right to decline to follow any such direction if the Indenture Trustee being advised by counsel determines that the action so directed may not lawfully be taken, or if the Indenture Trustee in good faith shall, by a
Responsible Officer, determine that the proceedings so directed would be illegal or subject it to personal liability or be unduly prejudicial to the rights of Noteholders not parties to such direction; and provided, further, that nothing in this
Indenture shall impair the right of the Indenture Trustee to take any action deemed proper by the Indenture Trustee and which is not inconsistent with such direction by the Noteholders. 
  
 ARTICLE VII 
 NOTEHOLDERS’ LISTS AND REPORTS 
  
 Section
7.1 Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders. The Issuer shall furnish or cause to be furnished by the Servicer to the Indenture 
  

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 Trustee (a) not more than five days before each Distribution Date, a list, in such form as the Indenture Trustee may
reasonably require, of the names and addresses of the Holders of Notes as of the close of business on the Record Date, and (b) at such other times as the Indenture Trustee may request in writing, within 14 days after receipt by the Issuer of any
such request, a list of similar form and content as of a date not more than 10 days prior to the time such list is furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such list shall be required to be
furnished. 
  
 Section 7.2 Preservation of Information,
Communications to Noteholders. 
  
 (a) The Indenture Trustee
shall preserve, in as current a form as is reasonably practicable, the names and addresses of the Holders of Notes contained in the most recent list furnished to the Indenture Trustee as provided in Section 7.1 and the names and addresses of
Holders of Notes received by the Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list furnished to it as provided in such Section 7.1 upon receipt of a new list so furnished. 
  
 (b) Noteholders may communicate pursuant to TIA § 312(b) with other
Noteholders with respect to their rights under this Indenture or under the Notes. 
  
 (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of TIA § 312(c). 
  
 Section 7.3 Reports by Issuer. 
  
 (a) The Issuer shall: 
  
 (i) file with the Indenture Trustee, within 15 days after the Issuer is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which the Issuer may be required to file with the
Commission pursuant to Section 13 or 15(d) of the Exchange Act; 
  
 (ii) file with the Indenture Trustee and the Commission in accordance with rules and regulations prescribed from time to time by the Commission such additional information, documents and reports with respect to
compliance by the Issuer with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and 
  
 (iii) supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to all Noteholders described in TIA §
313(c)) such summaries of any information, documents and reports required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be required by rules and regulations prescribed from time to time by the
Commission. 
  
 (b) Unless the Issuer otherwise determines, the
fiscal year of the Issuer shall end on October 31 of each year. 
  

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 Section 7.4 Reports by Indenture Trustee. If required by TIA § 313(a), within 60 days after
each February 1, beginning with February 1, 2005, with respect to the 12-month period immediately preceding such February 1 or, in the case of the first such reporting period, the period from the Closing Date through January 31, 2005, the Indenture
Trustee shall mail to each Noteholder as required by TIA § 313(c) a brief report dated as of such date that complies with TIA § 313(a). The Indenture Trustee also shall comply with TIA § 313(b). A copy of any report delivered pursuant
to this Section 7.4(a) shall, at the time of its mailing to Noteholders, be filed by the Indenture Trustee with the Commission and each stock exchange, if any, on which the Notes are listed. The Issuer shall notify the Indenture Trustee if
and when the Notes are listed on any stock exchange. 
  
 ARTICLE
VIII 
 ACCOUNTS, DISBURSEMENTS AND RELEASES 
  
 Section 8.1 Collection of Money. Except as otherwise expressly provided herein or in the other Basic Documents, the
Indenture Trustee may demand payment or delivery of, and shall receive and collect, directly and without intervention or assistance of any fiscal agent or other intermediary, all money and other property payable to or receivable by the Indenture
Trustee pursuant to this Indenture. The Indenture Trustee shall apply all such money received by it as provided in this Indenture and the Servicing Agreement. Except as otherwise expressly provided in this Indenture or in Article II of the Servicing
Agreement, if any default occurs in the making of any payment or performance under any agreement or instrument that is part of the Collateral, the Indenture Trustee may take such action as may be appropriate to enforce such payment or performance,
including the institution and prosecution of appropriate Proceedings. Any such action shall be without prejudice to any right to claim an Event of Default under this Indenture and any right to proceed thereafter as provided in Article V. 

 
 Section 8.2 Designated Accounts; Payments. 
  
 (a) On or before each Determination Date, with respect to the preceding
Monthly Period and the related Distribution Date, the Servicer shall calculate the Total Available Amount, Collected Amount, the Total Servicing Fee, the Aggregate Class A Noteholders’ Interest Distributable Amount, the Class B
Noteholders’ Interest Distributable Amount, the Class C Noteholders’ Interest Distributable Amount, the Principal Payment Amount, the Noteholders’ Principal Distributable Amount and all other amounts required to determine the amounts
to be deposited in or paid from each of the Collection Account, the Pre-Funding Account, the Negative Carry Account, the Note Distribution Account, the Certificate Distribution Account and the Reserve Account on the next succeeding Distribution Date
and supply such information to the Issuer and the Indenture Trustee. 
  
 (b) On or before each Transfer Date, the Indenture Trustee shall cause to be made the following withdrawals, deposits, transfers and distributions in the amounts set forth in the Servicer’s Certificate delivered to the Indenture
Trustee pursuant to Section 2.17 of the Servicing Agreement: 
  
 (i) from the Collection Account to the Servicer, in immediately available funds, reimbursement of Outstanding Monthly Advances pursuant to Section 2.14 
  

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 of the Servicing Agreement, payments of Liquidation Expenses with respect to Receivables which became
Liquidating Receivables during the related Monthly Period pursuant to Section 2.04 of the Servicing Agreement and any unpaid Liquidation Expenses from prior periods; 
  
 (ii) from the Pre-Funding Account to the Collection Account, the Investment Earnings on the Pre-Funding
Account for the related Monthly Period; 
  
 (iii) from the Negative Carry Account to the Collection Account, the Negative Carry Amount for such Distribution Date; and 
  
 (iv) from the Reserve Account to the Collection Account, the lesser of (A) the amount of cash or other immediately available funds
therein on the day preceding such Distribution Date and (B) the amount, if any, by which (I) the sum of the Total Servicing Fee, the Aggregate Class A Noteholders’ Interest Distributable Amount, the Class B Noteholders’ Interest
Distributable Amount, the Class C Noteholders’ Interest Distributable Amount and the Noteholders’ Principal Distributable Amount exceeds (II) the sum of the Collected Amount for such Distribution Date plus the amounts deposited to the
Collection Account on such date pursuant to Sections 8.2(b)(ii) and 8.2(b)(iii). 
  
 (c) Before 12:00 noon, New York City time, on each Transfer Date, the Indenture Trustee (based on the information contained in the Servicer’s
Certificate delivered to the Indenture Trustee pursuant to Section 2.17 of the Servicing Agreement) shall make the following distributions from the Collection Account (after the withdrawals, deposits and transfers specified in Section
8.2(b) have been made) in the following order of priority: 
  
 (i) first, to the Servicer, to the extent of the Total Available Amount, the Total Servicing Fee; 
  
 (ii) second, to the Note Distribution Account, to the extent of the Total Available Amount (as such amount has been reduced by the
distributions described in clause (c)(i) above), the Aggregate Class A Noteholders’ Interest Distributable Amount; 
  
 (iii) third, to the Note Distribution Account, to the extent of the Total Available Amount (as such amount has been reduced by the
distributions described in clauses (c)(i) and (ii) above), the Class B Noteholders’ Interest Distributable Amount; 
  
 (iv) fourth, to the Note Distribution Account, to the extent of the Total Available Amount (as such amount has been reduced by the
distributions described in clauses (c)(i), (ii) and (iii) above), the Class C Noteholders’ Interest Distributable Amount; 
  
 (v) fifth, to the Note Distribution Account, to the extent of the Total Available Amount (as such amount has been reduced by the
distributions described in clauses (c)(i) through (iv) above), the Noteholders’ Principal Distributable Amount; 
  

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 (vi) sixth, to the Reserve Account, to the extent of the Total Available Amount (as such
amount has been reduced by the distributions described in clauses (c)(i) through (v) above), the amount by which the Specified Reserve Account Balance for the next succeeding Distribution Date exceeds the amount on deposit in the Reserve Account on
such Transfer Date; and 
  
 (vii) seventh, to
the Certificateholders, any portion of the Total Available Amount remaining after the distributions described in clauses (c)(i) through (vi) above. 
  
 (d) On each Distribution Date, the Indenture Trustee shall distribute all amounts on deposit in the Note Distribution Account, other than amounts
deposited in the Note Distribution Account pursuant to Section 8.11(b) and subject to the Certificateholder’s rights under Section 8.6 to Investment Earnings, to the Noteholders to the extent of amounts due and unpaid on the Notes
for principal and interest, in the following amounts, and in the following order of priority: 
  
 (i) (A) first, to accrued and unpaid interest on the Class A Notes; provided, however, that if there are not sufficient
funds in the Note Distribution Account to pay the entire amount of accrued and unpaid interest then due on the Class A Notes, the amount in the Note Distribution Account shall be applied to the payment of such interest on each Note of each class of
the Class A Notes pro rata on the basis of the respective aggregate amount of interest due on each such class of Class A Notes; (B) second, unless otherwise provided in clause (iv) below, to accrued and unpaid interest on the Class B Notes;
provided, however, that if there are not sufficient funds in the Note Distribution Account (after the payment of all accrued and unpaid interest on the Class A Notes) to pay the entire amount of accrued and unpaid interest then due on
the Class B Notes, the amount in the Note Distribution Account shall be applied to the payment of such interest on each of the Class B Notes pro rata on the basis of the aggregate amount of interest due on each such Class B Note; and (C) third,
unless otherwise provide in clause (iv) below, to accrued and unpaid interest on the Class C Notes; provided, however, that if there are not sufficient funds in the Note Distribution Account (after the payment of all accrued and unpaid
interest on the Class A Notes and the Class B Notes) to pay the entire amount of accrued and unpaid interest then due on the Class C Notes, the amount in the Note Distribution Account shall be applied to the payment of such interest on each of the
Class C Notes pro rata on the basis of the aggregate amount of interest due on each such Class C Note; 
  
 (ii) unless otherwise provided in clause (iii), (iv) or (v) below, the Principal Payment Amount shall be applied on each Distribution
Date, as follows: 
  
 (A) 100% of the Principal
Payment Amount shall be applied to pay the principal of the Class A-1 Notes until the Class A-1 Notes are paid in full; 
  
 (B) 94.00% of the amount of the Principal Payment Amount remaining after the application of funds in accordance with clause (A) above
shall be applied to pay the principal of the other Class A Notes (all of which shall be 
  

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 applied to pay the principal of the Class A-2 Notes until paid in full, then shall be applied to pay the
principal of the Class A-3 Notes until paid in full, and then shall be applied to pay the principal of the Class A-4 Notes until paid in full) until the Class A Notes are paid in full; 
  
 (C) 58.34% of the amount of the Principal Payment Amount remaining after the application of funds in
accordance with clauses (A) and (B) above shall be applied to pay the principal of the Class B Notes until the Class B Notes are paid in full; and 
  
 (D) the amount of the Principal Payment Amount remaining after the application of funds in accordance with clauses (A), (B) and (C) above
shall be applied to pay the principal of the Class C Notes until the Class C Notes are paid in full; 
  
 (iii) if the amount on deposit in the Reserve Account on any Distribution Date would be, after giving effect to the allocations, deposits
and payments to be made on that date, less than 1.00% of the Aggregate Starting Receivables Balance, then on that Distribution Date and on each Distribution Date thereafter until the amount on deposit in the Reserve Account equals or exceeds the
Specified Reserve Account Balance, 100% of the Principal Payment Amount shall be applied to pay the principal of the Class A Notes (all of which shall be applied to pay the principal of the Class A-1 Notes until paid in full, then shall be applied
to pay the principal of the Class A-2 Notes until paid in full, then shall be applied to pay the principal of the Class A-3 Notes until paid in full, and then shall be applied to pay the principal of the Class A-4 Notes until paid in full) until the
Class A Notes are paid in full, then, 100% of the Principal Payment Amount shall be applied to pay the principal of the Class B Notes until the Class B Notes are paid in full and, then, 100% of the Principal Payment Amount shall be applied to pay
the principal of the Class C Notes until the Class C Notes are paid in full. If on a later Distribution Date the amount on deposit in the Reserve Account equals or exceeds the Specified Reserve Account Balance, after giving effect to the
allocations, deposits and payments to be made on that date, the Principal Payment Amount for such Distribution Date and each Distribution Date thereafter shall be applied in accordance with the priorities described in Section 8.2(d)(ii)
hereof; 
  
 (iv) if the Notes have been declared
immediately due and payable as provided in Section 5.2(a) following the occurrence of an Event of Default specified in Section 5.1(a), (b) or (c) until such time as the Class A Notes have been paid in full and this Indenture has
been discharged with respect to the Class A Notes any amounts remaining in the Note Distribution Account after the application described in Section 8.2(d)(i)(A) shall be applied in the following priority: (1) to the repayment of principal of
each of the Class A-1 Notes pro rata on the basis of the respective unpaid principal amount of each such Class A-1 Note; (2) to the repayment of principal of each of the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes pro rata on the
basis of the respective unpaid principal amount of each such Class A Note; (3) to the repayment of interest on each of the Class B Notes pro rata on the basis of the amount of interest due and unpaid on each such Class B Note; (4) to the repayment
of principal on each of the 
  

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 Class B Notes pro rata on the basis of the respective unpaid principal amount of each such Class B Note;
(5) to the repayment of interest on each of the Class C Notes pro rata on the basis of the amount of interest due and unpaid on each such Class C Note and (6) to the repayment of principal on each of the Class C Notes pro rata on the basis of the
respective unpaid principal amount of each such Class C Note; and 
  
 (v) if the Notes have been declared immediately due and payable as provided in Section 5.2(a) following the occurrence of an Event of Default specified in Section 5.1(d), (e) or (f), 100% of the
Principal Payment Amount shall be applied on each Distribution Date to the payment of principal of the Class A-1 Notes on the basis of the respective unpaid principal balance of each such Class A-1 Note, thereafter 100% of the Principal Payment
Amount shall be applied on each Distribution Date to the payment of principal of the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes pro rata on the basis of the respective unpaid principal amount of each such Class A Note, thereafter
100% of the Principal Payment Amount shall be applied on each Distribution Date to the payment of principal of the Class B Notes pro rata on the basis of the respective unpaid principal amount of each such Class B Note and, thereafter, 100% of the
Principal Payment Amount shall be applied on each Distribution Date to the payment of principal of the Class C Notes pro rata on the basis of the respective unpaid principal amount of each such Class C Note. 
  
 (e) Subject to Sections 8.2(d)(iii), (iv) and (v), on the
Distribution Date on which the Funding Period ends (or, if the Funding Period does not end on a Distribution Date, on the Distribution Date following the end of the Funding Period), the Indenture Trustee shall apply any and all amounts deposited
into the Note Distribution Account pursuant to Section 8.11(b) (other than Noteholders’ Prepayment Premium) to the repayment of principal on the Notes in accordance with the priorities set forth in Section 8.2(d)(ii); provided,
however, that if the Pre-Funded Amount as of the end of the Funding Period is greater than $100,000, the Indenture Trustee shall apply such amounts to the repayment of principal of each Class of Notes pro rata on the basis of the respective initial
principal amount of each such Class of Notes, as instructed by the Servicer in writing. 
  
 (f) On the Distribution Date on which the Funding Period ends (or, if the Funding Period does not end on a Distribution Date, on the first Distribution Date following the end of the Funding Period), the Indenture
Trustee shall distribute to the Noteholders the Noteholders’ Prepayment Premiums deposited in the Note Distribution Account, as instructed by Servicer in writing pursuant to Section 8.11(b); provided, however, if less than
the required Noteholders’ Prepayment Premium for all classes of Notes has been deposited into the Note Distribution Account, the amount distributable to the holders of each class of Notes shall be their ratable share of the amount so deposited
into the Note Distribution Account based upon the amount of Noteholders’ Prepayment Premium due with respect to each such class of Notes. In either case, the Indenture Trustee shall distribute the Noteholders’ Prepayment Premium allocated
to each class of Notes to the Noteholders of such class of Notes pro rata on the basis of the unpaid principal amount of such Noteholder’s Notes of such class, as instructed by the Servicer in writing. 
  

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 Section 8.3 General Provisions Regarding Accounts. 
  
 (a) Subject to Section 6.1(c), the Indenture Trustee shall not in
any way be held liable by reason of any insufficiency in any of the Designated Accounts resulting from any loss on any Eligible Investment included therein except for losses attributable to the Indenture Trustee’s failure to make payments on
such Eligible Investments issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as trustee, in accordance with their terms. 
  

(b) If (i) the Servicer shall have failed to give investment directions for any funds on deposit in the Designated Accounts to the Indenture Trustee
by 11:00 a.m., New York City time (or such other time as may be agreed by the Servicer and the Indenture Trustee) on any Business Day; or (ii) a Default shall have occurred and be continuing with respect to the Notes but the Notes shall not have
been declared due and payable pursuant to Section 5.2(a), or, if such Notes shall have been declared due and payable following an Event of Default, but amounts collected or receivable from the Collateral are being applied in accordance with
Section 5.5 as if there had not been such a declaration; then the Indenture Trustee shall, to the fullest extent practicable, invest and reinvest funds in the Designated Accounts in one or more Eligible Investments selected by the Indenture
Trustee. 
  
 Section 8.4 Release of Collateral. 

 
 (a) Subject to the payment of its fees and expenses pursuant to
Section 6.7, the Indenture Trustee may, and when required by the provisions of this Indenture shall, execute instruments to release property in the Collateral from the lien of this Indenture, or convey the Indenture Trustee’s interest in
the same, in a manner and under circumstances that are consistent with the provisions of this Indenture. No party relying upon an instrument executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the Indenture
Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application of any monies. 
  
 (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums due to the Indenture Trustee pursuant to Section 6.7
have been paid, notify the Issuer thereof in writing and upon receipt of an Issuer Request, release any remaining portion of the Collateral that secured the Notes from the lien of this Indenture and release to the Issuer or any other Person entitled
thereto any funds then on deposit in the Note Distribution Account. The Indenture Trustee shall (i) release any remaining portion of the Collateral that secured the Certificates from the lien of this Indenture and (ii) deposit in the Certificate
Distribution Account any funds then on deposit in the Reserve Account or the Collection Account only at such time as (y) there are no Notes Outstanding and (z) all sums due to the Indenture Trustee pursuant to Section 6.7 have been paid.

  
 Section 8.5 Opinion of Counsel. The Indenture Trustee
shall receive at least seven days’ notice when requested by the Issuer to take any action pursuant to Section 8.4(a), accompanied by copies of any instruments involved, and the Indenture Trustee shall also require as a condition to such
action, an Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee, stating the legal effect of any such action, outlining the steps required to complete the same, and concluding that all conditions precedent to the taking of
such action have been complied with and such action shall not materially and adversely impair the security for the 
  

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 Notes or the rights of the Noteholders in contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair value of the Collateral. Counsel rendering any such opinion may rely, without independent investigation, on the accuracy and validity of any certificate or other
instrument delivered to the Indenture Trustee in connection with any such action. 
  
 Section 8.6 Investment Earnings and Supplemental Servicing Fees. The Servicer shall be entitled to retain all Supplemental Servicing Fees. Except as otherwise provided in Section 2.02(b)(i) of the
Servicing Agreement, the Certificateholders (via the Certificate Distribution Account or such other account as shall be designated in writing by the Certificateholders to the Servicer) shall be entitled to receive all Investment Earnings (other than
Investment Earnings from amounts on deposit in the Pre-Funding Account), when and as paid without any obligation to (a) either Trustee, (b) with respect to the Supplemental Servicing Fees, the Certificateholders or (c) with respect to the Investment
Earnings, the Servicer, in respect thereof. The Servicer will not have any obligation to deposit any such amount in any account established hereunder. To the extent that any such amount shall be held in any account (other than, with respect to
amounts to be distributed to the Certificateholders, the Certificate Distribution Account) held by either Trustee, or otherwise established hereunder, such amount will be withdrawn therefrom and paid to the Servicer or deposited in the Certificate
Distribution Account for distribution to the Certificateholders, as applicable, upon presentation of a certificate signed by a Responsible Officer of such Person setting forth, in reasonable detail, the amount of such Supplemental Servicing Fees or
such Investment Earnings, respectively. 
  
 Section 8.7 Net
Deposits. At any time that (i) NFC shall be the Servicer and (ii) the Servicer shall be permitted by Section 2.12 of the Servicing Agreement to remit collections on a basis other than a daily basis, the Indenture Trustee at the written
request of the Servicer may make any remittances pursuant to this Article VIII net of amounts to be distributed by the Indenture Trustee to such remitting party. Nonetheless, the Indenture Trustee shall account for all of the above described
remittances and distributions as if the amounts were deposited and/or transferred separately. 
  
 Section 8.8 Statements to Securityholders. 
  
 (a) On each Distribution Date, the Issuer shall include with each distribution to each Certificateholder, and the Indenture Trustee shall include with each distribution to each Noteholder, a statement (which statement
shall also be provided to the Rating Agencies) based on (subject to the last sentence of this paragraph (a)) information in the Servicer’s Certificate furnished pursuant to Section 2.17 of the Servicing Agreement. Each such statement
shall set forth the following information as to the Notes with respect to such Distribution Date or the preceding Monthly Period, as applicable: 
  
 (i) the amount of the distribution allocable to interest on or with respect to each class of Notes; 
  
 (ii) the Aggregate Receivables Balance as of the close of
business on the last day of such Monthly Period; 
  

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 (iii) the amount of Outstanding Monthly Advances with respect to all Receivables on such
Distribution Date; 
  
 (iv) the amount of the
Total Servicing Fee paid or payable to the Servicer with respect to the related Monthly Period; 
  
 (v) the amount of Aggregate Losses for the related Monthly Period; 
  
 (vi) the Delinquency Percentage for the related Monthly Period; 
  
 (vii) the sum of all Administrative Purchase Payments and
all Warranty Payments made for the related Monthly Period; 
  
 (viii) the amount of the distribution allocable to principal of each class of Notes; 
  
 (ix) the Note Principal Balance and the Note Pool Factor for each class of Notes, each after giving effect to all payments reported under
(viii) above on such date; 
  
 (x) the amounts,
if any, paid to the Servicer or distributed to Noteholders from amounts on deposit in the Reserve Account plus amounts in respect thereof to be distributed to each class of Noteholders as a prepayment of principal (expressed as a dollar amount per
$1,000 of the face amount of the Notes); 
  
 (xi) the amount of the Class A Noteholders’ Interest Carryover Shortfall, if any, the Noteholders’ Principal Carryover Shortfall, if any, the Class B Noteholders’ Interest Carryover Shortfall, if any, the Class C
Noteholders’ Interest Carryover Shortfall, if any and the change in such amounts from the preceding Distribution Date; 
  
 (xii) the balance (if any) of the Reserve Account, the Specified Reserve Account Balance, the Specified Yield Supplement Amount and the
Backup Servicer Account on such date, after giving effect to distributions, withdrawals, transfers and deposits made on such date, and the change in such balance from that of the prior Distribution Date; 
  
 (xiii) the Negative Carry Amount and the balance, if any,
of the Negative Carry Account on such date, after giving effect to the withdrawals made on such date; 
  
 (xiv) for Distribution Dates during the Funding Period, the Starting Receivables Balance of all Subsequent Receivables transferred to the
Issuer since the preceding Distribution Date, the remaining Pre-Funded Amount and the Investment Earnings on amounts on deposit in the Pre-Funding Account (if any) for the related Monthly Period; and 
  

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 (xv) for the first Distribution Date occurring on or after the last day of the Funding
Period, the amount of any remaining Pre-Funded Amount that has not been used to fund the purchase of Subsequent Receivables. 
  
 Each amount set forth pursuant to clauses (i), (iv), (viii), (x) and (xi) above shall be expressed as a dollar amount per $1,000 of initial Note Principal Balance. In
lieu of preparing and delivering a separate statement to Securityholders pursuant to this Section, a Trustee may deliver a copy of the Servicer’s Certificate furnished pursuant to Section 2.17 of the Servicing Agreement. 
  
 (b) Within the prescribed period of time for tax reporting purposes after
the end of each calendar year during the term of this Agreement, the Servicer shall prepare and execute and the Indenture Trustee and the Owner Trustee shall mail to each Person who at any time during such calendar year shall have been a holder of
Notes or Certificates, respectively, and received any payments thereon, a statement prepared and supplied by the Servicer containing the amounts set forth in each of clauses (i), (iv), (viii), (x) and (xi) in paragraph (a) above, for such calendar
year or, if such Person shall have been a Securityholder during a portion of such calendar year and received any payments thereon, for the applicable portion of such year, for the purposes of such Securityholder’s preparation of federal income
tax returns. 
  
 Section 8.9 Designated Accounts. On or
prior to the Closing Date, the Issuer shall cause the Servicer to establish and maintain, in the name of the Indenture Trustee, for the benefit of the Securityholders, the Designated Accounts as provided in Section 2.02 of the Servicing
Agreement. 
  
 Section 8.10 Reserve Account. 
  
 (a) On the Closing Date, the Seller shall deposit the Reserve Account
Initial Deposit into the Reserve Account. The Reserve Account shall be the property of the Issuer, subject to the rights of the Indenture Trustee in the Reserve Account Property. 
  
 (b) If the amount on deposit in the Reserve Account on any Distribution Date (after giving effect to all deposits therein
or withdrawals therefrom on such Distribution Date) exceeds the Specified Reserve Account Balance for such Distribution Date, the Indenture Trustee shall, upon receipt of instruction from the Servicer, deposit into the Certificate Distribution
Account an amount equal to any such excess for distribution to the Certificateholders or upon the order of the Certificateholders in an account designated in writing by the Certificateholders to the Servicer. 
  
 (c) If the Servicer, pursuant to Section 2.14 of the Servicing
Agreement, determines on any Determination Date that it is required to make a Monthly Advance and does not do so from its own funds, the Indenture Trustee shall, upon receipt of instructions from the Servicer, withdraw funds from the Reserve Account
and deposit them in the Collection Account to cover any shortfall. Such payment shall be deemed to have been made by the Servicer pursuant to Section 2.14 of the Servicing Agreement for purposes of making distributions pursuant to this
Agreement, but shall not otherwise satisfy the Servicer’s obligation to deliver the amount of the Monthly Advances to the Collection Account, and the Servicer shall 
  

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 within two Business Days replace any funds in the Reserve Account so used. The Servicer shall not be entitled to
reimbursement for any such deemed Monthly Advances unless and until the Servicer shall have replaced such funds in the Reserve Account. 
  
 Section 8.11 Pre-Funding Account. 
  
 (a) On the Closing Date, the Seller shall deposit into the Pre-Funding Account $201,715,762.20 the Pre-Funding Account Initial Deposit Amount from the
net proceeds of the sale of the Notes. On each Subsequent Transfer Date, the Indenture Trustee shall, upon receipt of instructions from the Servicer, withdraw from the Pre-Funding Account an amount equal to (i) the aggregate Starting Receivables
Balance of the Subsequent Receivables transferred to the Issuer on such Subsequent Transfer Date less the Reserve Account Subsequent Transfer Deposit with respect to such Subsequent Transfer Date and distribute such amount to or upon the order of
the Seller upon satisfaction of the conditions set forth in Section 2.02(b) of the Pooling Agreement with respect to such transfer, and (ii) the Reserve Account Subsequent Transfer Deposit with respect to such Subsequent Transfer Date and, on
behalf of the Seller, deposit such amount in the Reserve Account. 
  
 (b) If the Pre-Funded Amount has not been reduced to zero on or prior to the Distribution Date on which the Funding Period ends (or, if the Funding Period does not end on a Distribution Date, on the first Distribution Date following the end
of the Funding Period), the Indenture Trustee shall, upon receipt of instructions from the Servicer, transfer from the Pre-Funding Account on such Distribution Date any amount then remaining in the Pre-Funding Account to the Note Distribution
Account and, if such amount is greater than $100,000 the Issuer will deposit into the Note Distribution Account an amount equal to the aggregate of Noteholders’ Prepayment Premiums for all classes of Notes; provided, however, that
the Issuer’s obligation to pay the Noteholders’ Prepayment Premiums shall be limited to funds which are received by the Issuer from the Seller pursuant to Section 2.02(c) of the Pooling Agreement as liquidated damages for the
failure to deliver the Subsequent Receivables, and no other assets of the Issuer will be available for making such payments. If the amount of funds available for payment of the Noteholders’ Prepayment Premiums is less than the sum of the
Noteholders’ Prepayment Premium for each class of Notes, then the available funds will be allocated among each class of Notes in accordance with the Pre-Funded Percentage for such class of Notes. 
  
 Section 8.12 Negative Carry Account. 
  
 (a) On the Closing Date, the Seller shall deposit in to the Negative Carry
Account the Negative Carry Account Initial Deposit from the net proceeds of the sale of the Notes. On or before the Transfer Date preceding each Distribution Date occurring on or prior to the first Distribution Date that occurs on or after the end
of the Funding Period, the Indenture Trustee shall, upon receipt of instructions from the Servicer, withdraw from the Negative Carry Account and deposit into the Collection Account an amount equal to the Negative Carry Amount for such Distribution
Date. 
  
 (b) On each Distribution Date during the Funding
Period, the Indenture Trustee shall, upon receipt of instructions from the Servicer, withdraw from the Negative Carry Account an amount equal to the excess, if any, of the amount on deposit in the 
  

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 Negative Carry Account over the Required Negative Carry Account Balance and deposit it (i) in the Certificate
Distribution Account for distribution to the Certificateholders or (ii) upon the order of the Certificateholders in an account designated in writing by the Certificateholders to the Servicer, and on the Distribution Date on or immediately following
the last day of the Funding Period, the Indenture Trustee shall, upon receipt of instructions from the Servicer, withdraw from the Negative Carry Account the amount remaining on deposit in the Negative Carry Account and deposit it in the Certificate
Distribution Account for distribution to the Certificateholders or upon the order of the Certificateholders in an account designated in writing by the Certificateholders to the Servicer. 
  
 Section 8.13 Sale of Assets; Termination. 
  
 (a) Upon any sale or other disposition of the Collateral pursuant to Article V of the Indenture (an “Event of
Default Sale”), the Indenture Trustee, based on information supplied by the Servicer, shall deposit the proceeds from such disposition after all payments and reserves therefrom have been made or the amount specified in clause SECOND of
Section 5.4(b) (the “Event of Default Proceeds”) in the Collection Account. On the Transfer Date on which the Event of Default Proceeds are deposited in the Collection Account (or, if such proceeds are not so deposited on
that Transfer Date, on the Transfer Date immediately following such deposit), the Indenture Trustee, based on information supplied by the Servicer, shall make the following deposits (after the application on the Transfer Date of the Collected Amount
and funds on deposit in the Reserve Account pursuant to Sections 8.2 and 8.10) from the Event of Default Proceeds and any funds remaining on deposit in the Reserve Account (including the proceeds of any sale of investments therein as
described in the following sentence) in the following priority: 
  
 (i) to the Note Distribution Account, any portion of the Aggregate Class A Noteholders’ Interest Distributable Amount not otherwise deposited into the Note Distribution Account on the Transfer Date; 

 
 (ii) if such Event of Default Sale results from the
occurrence of an Event of Default specified in Section 5.1(a), (b) or (c), to the Note Distribution Account, an amount equal to the Note Principal Balance of the Class A Notes (after giving effect to the reduction in the Aggregate Note
Principal Balance to result from the deposits made in the Note Distribution Account on the Transfer Date and on each prior Transfer Date); 
  
 (iii) to the Note Distribution Account, any portion of the Class B Noteholders’ Interest Distributable Amount not otherwise
deposited into the Note Distribution Account on the Transfer Date; 
  
 (iv) if such Event of Default Sale results from the occurrence of an Event of Default specified in Section 5.1(a), (b) or (c), to the Note Distribution Account, an amount equal to the Note
Principal Balance of the Class B Notes (after giving effect to the reduction in the Aggregate Note Principal Balance to result from the deposits made in the Note Distribution Account on the Transfer Date and on each prior Transfer Date); 

 

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 (v) to the Note Distribution Account, any portion of the Class C Noteholders’
Interest Distributable Amount not otherwise deposited into the Note Distribution Account on the Transfer Date; 
  
 (vi) if such Event of Default Sale does not result from the circumstances specified in Section 8.13(a)(ii), to the Note
Distribution Account, an amount equal to the Note Principal Balance of the Class A Notes (after giving effect to the reduction in the Aggregate Note Principal Balance to result from the deposits made in the Note Distribution Account on the Transfer
Date and on each prior Transfer Date); 
  
 (vii)
if such Event of Default Sale does not result from the circumstances specified in Section 8.13(a)(iv), to the Note Distribution Account, an amount equal to the Note Principal Balance of the Class B Notes (after giving effect to the reduction
therein to result from the deposits made in the Note Distribution Account on the day preceding such Distribution Date and on the Transfer Date and on each prior Transfer Date); and 
  
 (viii) to the Note Distribution Account, an amount equal to the Note Principal Balance of the Class C Notes
(after giving effect to the reduction therein to result from the deposits made in the Note Distribution Account on the day preceding such Distribution Date and on the Transfer Date and on each prior Transfer Date). 
  
 Subject to the Section 2.02(b) of the Servicing Agreement, any investments on deposit
in the Reserve Account which shall not mature on or before the day preceding such Distribution Date shall be sold by the Indenture Trustee at such time as shall result in the Indenture Trustee receiving the proceeds from such sale not later than the
Transfer Date. Any Event of Default Proceeds remaining after the deposits described above shall be deposited into the Certificate Distribution Account for distribution to the Certificateholders. 
  
 (b) Notice of any termination of the Trust shall be given by the Servicer to
each Trustee as soon as practicable after the Servicer has received notice thereof. 
  
 ARTICLE IX 
 SUPPLEMENTAL INDENTURES 
  
 Section 9.1 Supplemental Indentures Without Consent of Noteholders.

  
 (a) Without the consent of the Holders of any Notes but with
prior notice to the Rating Agencies, the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time and from time to time, may enter into one or more indentures supplemental hereto (which shall conform to the provisions of the
TIA as in force at the date of the execution thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes: 
  
 (i) to correct or amplify the description of any property at any time subject to the lien of this Indenture, or better to assure, convey
and confirm unto the Indenture Trustee any property subject or required to be subjected to the lien of this Indenture, or to subject additional property to the lien of this Indenture; 
  

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 (ii) to evidence the succession, in compliance with Section 3.11 and the
applicable provisions hereof, of another Person to the Issuer, and the assumption by any such successor of the covenants of the Issuer contained herein and in the Notes; 
  
 (iii) to add to the covenants of the Issuer for the benefit of the Securityholders, or to surrender any
right or power herein conferred upon the Issuer; 
  
 (iv) to convey, transfer, assign, mortgage or pledge any property to or with the Indenture Trustee; 
  
 (v) to cure any ambiguity or to correct or supplement any provision herein or in any supplemental indenture which may be inconsistent
with any other provision herein, in any supplemental indenture or in any other Basic Document; 
  
 (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor or additional Indenture Trustee with respect
to the Notes or any class thereof and to add to or change any of the provisions of this Indenture as shall be necessary to facilitate the administration of the trusts hereunder by more than one trustee, pursuant to the requirements of Article VI; or

  
 (vii) to modify, eliminate or add to the
provisions of this Indenture to such extent as shall be necessary to effect the qualification of this Indenture under the TIA or under any similar federal statute hereafter enacted and to add to this Indenture such other provisions as may be
expressly required by the TIA, and the Indenture Trustee is hereby authorized to join in the execution of any such supplemental indenture and to make any further appropriate agreements and stipulations that may be therein contained. 
  
 (b) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, may, also without the consent of any of the Noteholders but with prior notice to the Rating Agencies, at any time and from time to time enter into one or more indentures supplemental hereto for the purpose of adding any provisions to,
changing in any manner, or eliminating any of the provisions of, this Indenture or modifying in any manner the rights of the Noteholders under this Indenture; provided, however, that such action shall not, as evidenced by an Opinion of
Counsel, adversely affect in any material respect the interests of any Noteholder. 
  

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 Section 9.2 Supplemental Indentures With Consent of Noteholders. 
  
 (a) The Issuer and the Indenture Trustee, when authorized by an Issuer
Order, also may, with prior notice to the Rating Agencies and with the consent of the Holders of not less than a majority of the Outstanding Amount of the Controlling Class, by Act of such Holders delivered to the Issuer and the Indenture Trustee,
enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to, changing in any manner, or eliminating any of the provisions of, this Indenture or modifying in any manner the rights of the Noteholders under
this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Note affected thereby: 
  
 (i) change the due date of any instalment of principal of or interest on any Note, or reduce the principal
amount thereof, the interest rate applicable thereto, or the Redemption Price with respect thereto, change any place of payment where, or the coin or currency in which, any Note or any interest thereon is payable, or impair the right to institute
suit for the enforcement of the provisions of this Indenture requiring the application of funds available therefor, as provided in Article V, to the payment of any such amount due on the Notes on or after the respective due dates thereof (or, in the
case of redemption, on or after the Redemption Date); 
  
 (ii) reduce the percentage of the Outstanding Amount of the Controlling Class, the consent of the Holders of which is required for (a) any such supplemental indenture, (b) any waiver of compliance with certain provisions of this Indenture,
certain defaults hereunder and their consequences as provided for in this Indenture or (c) any action described in Sections 2.12, 3.7(e), 5.2, 5.6, 5.11, 5.12(a), 6.8, or 6.16; 
  
 (iii) modify or alter the provisions of the proviso to the
definition of the term “Outstanding”; 
  
 (iv) reduce the percentage of the Outstanding Amount of the Notes required to direct the Indenture Trustee to sell or liquidate the Collateral pursuant to Section 5.4 if the proceeds of such sale would be insufficient to pay the
principal amount of and accrued but unpaid interest on the Outstanding Notes; 
  
 (v) modify any provision of this Section 9.2 to decrease the required minimum percentage necessary to approve any amendments to
any provisions of this Indenture or any of the Basic Documents; 
  
 (vi) modify any of the provisions of this Indenture in such manner as to affect the calculation of the amount of any payment of interest or principal due on any Note on any Distribution Date (including the calculation
of any of the individual components of such calculation), or modify or alter the provisions of the Indenture regarding the voting of Notes held by the Issuer, the Seller or any Affiliate of either of them; or 
  
 (vii) permit the creation of any Lien ranking prior to or
on a parity with the lien of this Indenture with respect to any part of the Collateral or, except as otherwise permitted or contemplated herein, terminate the lien of this Indenture on any property at any time subject to the lien of this Indenture
or deprive the Holder of any Note of the security afforded by the lien of this Indenture. 
  
 (b) The Indenture Trustee may in its discretion determine whether or not any Notes would be affected (such that the consent of each Noteholder would be required) by any supplemental indenture proposed pursuant to this
Section 9.2 and any such determination shall be conclusive and binding upon all of the Noteholders, whether authenticated and delivered thereunder before or after the date upon which such supplemental indenture becomes effective. The
Indenture Trustee shall not be liable for any such determination made in good faith. 
  

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 (c) It shall be sufficient if an Act of Noteholders approves the substance, but not the form, of any
proposed supplemental indenture. 
  
 (d) Promptly after the
execution by the Issuer and the Indenture Trustee of any supplemental indenture pursuant to this Section 9.2, the Indenture Trustee shall mail to the Noteholders to which such amendment or supplemental indenture relates a notice setting forth
in general terms the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

  
 Section 9.3 Execution of Supplemental Indentures. In
executing, or permitting the additional trusts created by, any supplemental indenture permitted by this Article IX or the modifications thereby of the trusts created by this Indenture, the Indenture Trustee shall be entitled to receive, and subject
to Sections 6.1 and 6.2, shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture and that all conditions precedent to such
execution have been satisfied. The Indenture Trustee may, but shall not be obligated to, enter into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties, liabilities or immunities under this Indenture or
otherwise. 
  
 Section 9.4 Effect of Supplemental
Indenture. Upon the execution of any supplemental indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified and amended in accordance therewith with respect to the Notes affected thereby, and the
respective rights, limitations of rights, obligations, duties, liabilities and immunities under this Indenture of the Indenture Trustee, the Issuer and the Noteholders shall thereafter be determined, exercised and enforced hereunder subject in all
respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes. 
  
 Section 9.5 Conformity with Trust Indenture Act. Every amendment of
this Indenture and every supplemental indenture executed pursuant to this Article IX shall conform to the requirements of the TIA as then in effect so long as this Indenture shall then be qualified under the TIA. 
  
 Section 9.6 Reference in Notes to Supplemental Indentures. Notes
authenticated and delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in form approved by the Indenture Trustee as to any matter provided for in
such supplemental indenture. If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture may be prepared and executed by
the Issuer and authenticated and delivered by the Indenture Trustee in exchange for Outstanding Notes of the same class. 
  

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 ARTICLE X 
 REDEMPTION OF NOTES 
  
 Section 10.1 Redemption. 
  
 (a) The Class A-4
Notes, the Class B Notes and the Class C Notes are subject to redemption in whole, but not in part, upon the exercise by the Servicer of its option to purchase the Receivables pursuant to Section 4.01 of the Pooling Agreement. Such redemption
shall occur on any Distribution Date after all Class A-1 Notes, Class A-2 Notes and Class A-3 Notes have been paid in full. The purchase price for the Class A-4 Notes, the Class B Notes and the Class C Notes to be redeemed shall be equal to the
applicable Redemption Price, provided the Issuer has available funds sufficient to pay such amount. The Issuer shall furnish the Rating Agencies notice of such redemption. If the Class A-4 Notes, the Class B Notes and the Class C Notes are to be
redeemed pursuant to this Section 10.1(a), the Issuer shall furnish notice thereof to the Indenture Trustee not later than 25 days prior to the Redemption Date and the Issuer shall deposit into the Note Distribution Account, before the
Redemption Date, the aggregate Redemption Price of the Class A-4 Notes, the Class B Notes and the Class C Notes to be redeemed, whereupon all such Notes shall be due and payable on the Redemption Date. 
  
 (b) [Reserved.] 
  
 (c) Within sixty days after the redemption in full pursuant to this
Section 10.1 of any class of Notes, the Indenture Trustee shall provide each of the Rating Agencies with written notice stating that all of such Notes have been redeemed. 
  
 Section 10.2 Form of Redemption Notice. 
  
 (a) Notice of redemption of the Class A-4 Notes, the Class B Notes and the Class C Notes under Section 10.1(a) shall
be given by the Indenture Trustee by first-class mail, postage prepaid, mailed not less than five days prior to the applicable Redemption Date to each Holder of the Class A-4 Notes, the Class B Notes and the Class C Notes of record, respectively, at
such Noteholder’s address appearing in the Note Register. 
  
 (b) All notices of redemption shall state: 
  
 (i) the Redemption Date; 
  
 (ii) the
Redemption Price; 
  
 (iii) the place where
Class A-4 Notes, Class B Notes and Class C Notes are to be surrendered for payment of the Redemption Price (which shall be the Agency Office to be maintained as provided in Section 3.2); and 
  
 (iv) CUSIP numbers. 
  
 (c) Notice of redemption of the Class A-4 Notes, the Class B Notes and the
Class C Notes shall be given by the Indenture Trustee in the name and at the expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder of any Class A-4 Note, Class B Note or Class C Note to be redeemed shall
not impair or affect the validity of the redemption of any other Class A-4 Note, Class B Note or Class C Note to be redeemed. 
  
 (d) [Reserved.] 
  

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 Section 10.3 Notes Payable on Redemption Date. The Class A-4 Notes, the Class B Notes or the Class
C Notes to be redeemed shall, following notice of redemption as required by Section 10.2, on the Redemption Date cease to be Outstanding for purposes of this Indenture and shall thereafter represent only the right to receive the applicable
Redemption Price and (unless the Issuer shall default in the payment of such Redemption Price) no interest shall accrue on such Redemption Price for any period after the date to which accrued interest is calculated for purposes of calculating such
Redemption Price. 
  
 ARTICLE XI 
 MISCELLANEOUS 
  
 Section 11.1 Compliance Certificates and Opinions, etc. 
  

(a) Upon any application or request by the Issuer to the Indenture Trustee to take any action under any provision of this Indenture, the Issuer shall
furnish to the Indenture Trustee: (i) an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with, (ii) an Opinion of Counsel stating that in the
opinion of such counsel all such conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an Independent Certificate from a firm of certified public accountants meeting the applicable requirements of this Section
11.1, except that, in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture, no additional certificate or opinion need be furnished. Every certificate
or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: 
  
 (i) a statement that each signatory of such certificate or opinion has read or has caused to be read such covenant or condition and the
definitions herein relating thereto; 
  
 (ii) a
brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (iii) a statement that, in the judgment of each such signatory, such signatory has made such examination or
investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (iv) a statement as to whether, in the opinion of each such signatory, such condition or covenant has been
complied with. 
  
 (b) (i) Prior to the deposit with the
Indenture Trustee of any Collateral or other property or securities that is to be made the basis for the release of any property or securities subject to the lien of this Indenture, the Issuer shall, in addition to any obligation imposed in
Section 11.1(a) or elsewhere in this Indenture, furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each Person signing such certificate as to the fair value (within 60 days of such deposit) to
the Issuer of the Collateral or other property or securities to be so deposited. 
  

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 (ii) Whenever the Issuer is required to furnish to the Indenture Trustee an
Officer’s Certificate certifying or stating the opinion of any signer thereof as to the matters described in clause (b)(i) above, the Issuer shall also deliver to the Indenture Trustee an Independent Certificate as to the same matters, if the
fair value to the Issuer of the securities to be so deposited and of all other such securities made on the basis of any such withdrawal or release since the commencement of the then current fiscal year of the Issuer, as set forth in the certificates
delivered pursuant to clause (b)(i) above and this clause (b)(ii), is 10% or more of the Outstanding Amount of the Notes, but such a certificate need not be furnished with respect to any securities so deposited if the fair value thereof to the
Issuer as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the Outstanding Amount of the Notes. 
  
 (iii) Other than with respect to the release of any Warranty Receivables, Administrative Receivables or Liquidating Receivables, whenever
any property or securities are to be released from the lien of this Indenture, the Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of each Person signing such certificate as to the
fair value (within 60 days of such release) of the property or securities proposed to be released and stating that in the opinion of such Person the proposed release will not impair the security under this Indenture in contravention of the
provisions hereof. 
  
 (iv) Whenever the Issuer
is required to furnish to the Indenture Trustee an Officer’s Certificate certifying or stating the opinion of any signatory thereof as to the matters described in clause (b)(iii) above, the Issuer shall also furnish to the Indenture Trustee an
Independent Certificate as to the same matters if the fair value of the property or securities and of all other property, other than Warranty Receivables, Administrative Receivables and Liquidating Receivables, or securities released from the lien
of this Indenture since the commencement of the then current calendar year, as set forth in the certificates required by clause (b)(iii) above and this clause (b)(iv), equals 10% or more of the Outstanding Amount of the Notes, but such certificate
need not be furnished in the case of any release of property or securities if the fair value thereof as set forth in the related Officer’s Certificate is less than $25,000 or less than one percent of the then Outstanding Amount of the Notes.

  
 (v) Notwithstanding Section 2.9 or
any other provision of this Section 11.1, the Issuer may (A) collect, liquidate, sell or otherwise dispose of Receivables as and to the extent permitted or required by the Basic Documents, (B) make cash payments out of the Designated Accounts
and the Certificate Distribution Account as and to the extent permitted or required by the Basic Documents and (C) take any other action not inconsistent with the TIA. 
  
 Section 11.2 Form of Documents Delivered to Indenture Trustee. 
  
 (a) In any case where several matters are required to be certified by, or
covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  

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 (b) Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters
upon which his certificate or opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an
officer or officers of the Servicer, the Seller, the Issuer or the Administrator, stating that the information with respect to such factual matters is in the possession of the Servicer, the Seller, the Issuer or the Administrator, unless such
counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous. 
  

(c) Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other
instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
  
 (d) Whenever in this Indenture, in connection with any application or certificate or report to the Indenture Trustee, it is provided that the Issuer
shall deliver any document as a condition of the granting of such application, or as evidence of the Issuer’s compliance with any term hereof, it is intended that the truth and accuracy, at the time of the granting of such application or at the
effective date of such certificate or report (as the case may be), of the facts and opinions stated in such document shall in such case be conditions precedent to the right of the Issuer to have such application granted or to the sufficiency of such
certificate or report. The foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the truth and accuracy of any statement or opinion contained in any such document as provided in Article VI. 

 
 Section 11.3 Acts of Noteholders. 
  
 (a) Any request, demand, authorization, direction, notice, consent, waiver
or other action provided by this Indenture to be given or taken by Noteholders or a class of Noteholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Noteholders in person or by agents
duly appointed in writing; and except as herein otherwise expressly provided such action shall become effective when such instrument or instruments are delivered to the Indenture Trustee, and, where it is hereby expressly required, to the Issuer.
Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or instruments. Proof of execution of any such
instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.1) conclusive in favor of the Indenture Trustee and the Issuer, if made in the manner provided in this
Section 11.3. 
  
 (b) The fact and date of the execution
by any Person of any such instrument or writing may be proved in any manner that the Indenture Trustee deems sufficient. 
  

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 (c) The ownership of Notes shall be proved by the Note Register. 
  
 (d) Any request, demand, authorization, direction, notice, consent, waiver
or other action by the Holder of any Notes (or any one or more predecessor Notes) shall bind the Holder of every Note issued upon the registration thereof or in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered
to be done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such action is made upon such Note. 
  
 Section 11.4 Notices, etc., to Indenture Trustee, Issuer and Rating Agencies. Any request, demand, authorization, direction, notice, consent,
waiver or Act of Noteholders or other documents provided or permitted by this Indenture to be made upon, given or furnished to or filed with the Indenture Trustee, the Issuer or the Rating Agencies under this Indenture shall be made upon, given or
furnished to or filed with such party as specified in Appendix B to the Pooling Agreement. 
  
 Section 11.5 Notices to Noteholders; Waiver. 
  
 (a) Where this Indenture provides for notice to Noteholders of any condition or event, such notice shall be given as specified in Appendix B to the Pooling Agreement. 
  
 (b) Where this Indenture provides for notice in any manner, such notice may
be waived in writing by any Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the Indenture Trustee but such filing
shall not be a condition precedent to the validity of any action taken in reliance upon such a waiver. 
  
 (c) In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or similar activity, it shall be impractical to
mail notice of any event of Noteholders when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to be a sufficient
giving of such notice. 
  
 (d) Where this Indenture provides for
notice to the Rating Agencies, failure to give such notice shall not affect any other rights or obligations created hereunder, and shall not under any circumstance constitute an Event of Default. 
  
 Section 11.6 Alternate Payment and Notice Provisions. Notwithstanding
any provision of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any Paying Agent to such Holder, that is
different from the methods provided for in this Indenture for such payments or notices. The Issuer shall furnish to the Indenture Trustee a copy of each such agreement and the Indenture Trustee shall cause payments to be made and notices to be given
in accordance with such agreements. 
  

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 Section 11.7 Conflict with Trust Indenture Act. 
  
 (a) If any provision hereof limits, qualifies or conflicts with another
provision hereof that is required to be included in this Indenture by any of the provisions of the TIA, such required provision shall control. 
  
 (b) The provisions of TIA §§ 310 through 317 that impose duties on any Person (including the provisions automatically deemed included herein
unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein. 
  
 Section 11.8 Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for convenience only
and shall not affect the construction hereof. 
  
 Section 11.9
Successors and Assigns. 
  
 (a) All covenants and
agreements in this Indenture and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not. 
  
 (b) All covenants and agreements of the Indenture Trustee in this Indenture shall bind its successors and assigns, whether so expressed or not.

  
 Section 11.10 Separability. In case any provision in
this Indenture or in the Notes shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
  
 Section 11.11 Benefits of Indenture. Nothing in this Indenture or in
the Notes, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, the Noteholders and the Note Owners and (only to the extent expressly provided herein) the Certificateholders, any other party
secured hereunder and any other Person with an ownership interest in any part of the Collateral, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
  
 Section 11.12 Legal Holidays. If the date on which any payment is due shall not be a Business Day, then
(notwithstanding any other provision of the Notes or this Indenture) payment need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the date on which nominally due, and no
interest shall accrue for the period from and after any such nominal date. 
  
 Section 11.13 Governing Law. This Indenture shall be construed in accordance with the laws of the State of Illinois, without reference to its conflict of law provisions, except that the obligations, rights and
remedies of the Indenture Trustee hereunder shall be determined in accordance with the internal laws of the State of New York, without reference to its conflict of law provisions. 
  
 Section 11.14 Counterparts. This Indenture may be executed in any number of counterparts, each of which so executed
shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
  

 - 61 - 

 Section 11.15 Recording of Indenture. If this Indenture is subject to recording in any appropriate
public recording offices, such recording is to be effected by the Issuer and at its expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any other counsel reasonably acceptable to the Indenture Trustee) to
the effect that such recording is necessary either for the protection of the Noteholders or any other Person secured hereunder or for the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture. 
  
 Section 11.16 No Recourse. No recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or any certificate or other writing delivered in connection herewith or therewith, against: 
  
 (i) the Indenture Trustee or the Owner Trustee in its
individual capacity; 
  
 (ii) any owner of a
beneficial interest in the Issuer; or 
  
 (iii)
any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee in their individual capacities, any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee
or of any successor or assign of the Indenture Trustee or the Owner Trustee in their individual capacities (or any of their successors or assigns), except as any such Person may have expressly agreed (it being understood that the Indenture Trustee
and the Owner Trustee have no such obligations in their individual capacities) and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid
capital contribution or failure to pay any instalment or call owing to such entity. For all purposes of this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner Trustee shall be subject to, and entitled to
the benefits of, the terms and provisions of Articles VI, VII and VIII of the Trust Agreement. 
  
 Section 11.17 No Petition. 
  
 (a) The Indenture Trustee, by entering into this Indenture, and each Noteholder and Note Owner, by accepting a Note (or interest therein) issued hereunder, hereby covenant and agree that they shall not, prior to the date which is one year
and one day after the termination of this Indenture with respect to the Issuer pursuant to Section 4.1, acquiesce, petition or otherwise invoke or cause the Seller or the Issuer to invoke the process of any court or government authority for
the purpose of commencing or sustaining a case against the Seller or the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar
official of the Seller or the Issuer or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Seller, or the Issuer. 
  
 (b) Notwithstanding any prior termination of the Series 2004-A Portfolio Supplement, the Indenture Trustee (and each
Noteholder by its acceptance of a Note) 
  

 - 62 - 

 covenants and agrees that it shall not, prior to the date which is one year and a day after which all obligations under
each Permitted Financing have been paid in full, acquiesce, petition or otherwise invoke, or join any other Person in acquiescing, petitioning or otherwise invoking, against the Titling Trust or any Special Purpose Entity, any proceeding in court or
with any governmental authority for the purpose of (i) commencing or sustaining a case against the Titling Trust or such Special Purpose Entity under any federal or state bankruptcy, insolvency or similar law, or (ii) appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of all or any substantial part of the respective property of the Titling Trust or such Special Purpose Entity, or (iii) ordering the winding up or liquidation of the
affairs of the Titling Trust or such Special Purpose Entity. 
  
 (c) Except as otherwise provided in the Titling Trust Agreement, as may be amended, restated and supplemented from time to time, the Indenture Trustee (and each Noteholder by its acceptance of a Note) hereby releases all Claims to the
Titling Trust Assets allocated to the General Interest and to each Portfolio Interest other than the Series 2004-A Portfolio Interest whether then or thereafter created and, in the event that such release is not given effect, to fully subordinate
all Claims it may be deemed to have against the Titling Trust Assets allocated to the General Interest and each Portfolio Interest other than the Series 2004-A Portfolio Interest whether then or thereafter created. 
  
 Section 11.18 Inspection. The Issuer agrees that, on reasonable prior
notice, it shall permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to examine all the books of account, records, reports and other papers of the Issuer to make copies and extracts therefrom, to cause
such books to be audited by Independent certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers, employees and Independent certified public accountants, all at such reasonable
times and as often as may be reasonably requested. The Indenture Trustee shall and shall cause its representatives to hold in confidence all such information except to the extent disclosure may be required by law (and all reasonable applications for
confidential treatment are unavailing) and except to the extent that the Indenture Trustee may reasonably determine that such disclosure is consistent with its obligations hereunder. 
  

 - 63 - 

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

			
	 NAVISTAR FINANCIAL 2004-A OWNER TRUST

		
	 By:
	 	Chase Manhattan Bank USA, National Association
		
	 By:
	 	  

	 Name:
	 	 John J. Cashin

	 Title:
	 	 Vice President

	
	 THE BANK OF NEW YORK,
 as Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 Jonathan Farber

	 Title:
	 	 Assistant Treasurer

					
	 STATE OF ILLINOIS
	 	)	  	 
	 	 	)	  	ss.
	 COUNTY OF COOK
	 	)	  	 

  
 BEFORE ME, the
undersigned authority, a Notary Public in and for said county and state, on this day personally appeared John J. Cashin, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the
same was the act of the Navistar Financial 2004-A Owner Trust and that he executed the same as the act of said statutory trust for the purpose and consideration therein expressed, and in the capacities therein stated. 
  
 GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 1st day of April, 2004.

  
 Notary Public in and for the State of Illinois. 
  

	
	 My commission expires:

	
	

  

					
	 STATE OF ILLINOIS
	 	)	  	 
	 	 	)	  	ss.
	 COUNTY OF COOK
	 	)	  	 

  
 BEFORE ME, the
undersigned authority, a Notary Public in and for said county and state, on this day personally appeared Jonathan Farber, known to me to be the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the
same was the act of the said The Bank of New York, a New York banking corporation, and that he executed the same as the act of said New York banking corporation for the purpose and consideration therein stated. 
  
 GIVEN UNDER MY HAND AND SEAL OF OFFICE, this the 1st day of April, 2004.

  
 Notary Public in and for the State of Illinois. 
  

	
	 My commission expires:
  

	

 EXHIBIT A 
  

LOCATIONS OF 
 COMPOSITE SCHEDULE
OF RECEIVABLES 
  
 The Composite Schedule of Receivables is on file at the
offices of: 
  

	1.	The Indenture Trustee 

  

	2.	The Owner Trustee 

  

	3.	Navistar Financial Corporation 

  

	4.	Navistar Financial Retail Receivables Corporation 

  

 A-1 

 EXHIBIT B 
  

FORM OF CLASS A-1 ASSET BACKED NOTE 
  

			
	 REGISTERED
	  	$                    1
		
	 No. R-             
	  	CUSIP NO.                    

  
 SEE REVERSE FOR CERTAIN
DEFINITIONS 
  
 Unless this Note is presented by
an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede &
Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  
 NAVISTAR
FINANCIAL 2004-A OWNER TRUST 
  
 CLASS A-1 1.08% ASSET BACKED NOTES

  
 NAVISTAR FINANCIAL 2004-A OWNER TRUST, a statutory trust
organized and existing under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of
                     DOLLARS ($            ) payable in accordance with the
Indenture, prior to the occurrence of an Event of Default and a declaration that the Notes are due and payable, on each Distribution Date in an amount equal to the result obtained by multiplying (i) a fraction, the numerator of which is the initial
principal amount hereof and the denominator of which is $108,000,000 by (ii) the aggregate amount, if any, payable from the Note Distribution Account in respect of principal on such class of the Notes pursuant to Sections 2.7, 3.1 and
8.2 of the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the Distribution Date in April 2005 (the “Final Scheduled Distribution Date”). The Issuer
shall pay interest on this Note at the rate per annum shown above on each Distribution Date until the principal of this Note is paid or made available for payment, on the principal amount of this Note outstanding on the preceding Distribution Date
(after giving effect to all payments of principal made on the preceding Distribution Date). Interest on this Note will 

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

  

 B- 1 

 accrue for each Distribution Date from and including the most recent Distribution Date on which interest has been paid to
but excluding the then current Distribution Date or, if no interest has yet been paid, from the Closing Date. Interest on this Note will be calculated on the basis of the actual number of days elapsed since the Closing Date or the preceding
Distribution Date divided by 360. Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 
  
 The principal of and interest on this Note are payable in such coin or currency of the United States of America which, at the time of payment, is legal
tender for payment of public and private debts. All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note. 
  
 Reference is made to the further provisions of this Note set forth on the
reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 
  
 Unless the certificate of authentication hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall
not be entitled to any benefit under the Indenture referred to on the reverse hereof or be valid or obligatory for any purpose. 
  

 B- 2 

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

							
	 Date: April 1, 2004
	 	 NAVISTAR FINANCIAL 2004-A OWNER TRUST

			
	 	 	 By:
	 	 CHASE MANHATTAN BANK USA, NATIONAL
 ASSOCIATION

	 	 	 	 	 not in its individual capacity, but solely as
 Owner Trustee under the Trust Agreement

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	 John J. Cashin

	 	 	 	 	 Title:
	 	 Vice President

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

			
	 THE BANK OF NEW YORK

	 not in its individual capacity, but solely as
 Indenture Trustee

		
	 By:
	 	  

	 Name:
	 	 Jonathan Farber

	 Title:
	 	 Assistant Treasurer

 REVERSE OF NOTE 
  

This Note is one of a duly authorized issue of Notes of the Issuer designated as its Class A-1 1.08% Asset Backed Notes (herein called the “Class
A-1 Notes”), all issued under an Indenture, dated as of April 1, 2004 (the “Closing Date” and such Indenture, as supplemented or amended, is herein called the “Indenture”), between the Issuer and The Bank of
New York, a New York banking corporation, as trustee (the “Indenture Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a
statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders. The Notes are governed by and subject to all terms of the Indenture (which terms are incorporated herein and made a part hereof),
to which Indenture the holder of this Note by virtue of acceptance hereof assents and by which such holder is bound. All capitalized terms used and not otherwise defined in this Note that are defined in the Indenture, as supplemented or amended,
shall have the meanings assigned to them in or pursuant to the Indenture. 
  
 The Indenture secures (a) first, the payment of principal and interest on, and any other amounts owing in respect of the Class A Notes, equally and ratably without prejudice, priority or distinction, (b) second, the
payment of principal of and interest on, and any other amounts owing in respect of the Class B Notes, equally and ratably without prejudice, priority or distinction and (c) third, the payment of principal of and interest on, and any other amounts
owing in respect of the Class C Notes, equally and ratably without prejudice, priority or distinction, and to secure compliance with the provisions of the Indenture, as provided therein. 
  
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note,
covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner Trustee in their individual capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of
the Indenture Trustee or the Owner Trustee in their individual capacities, any holder of a beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in
their individual capacities, except as any such Person may have expressly agreed (it being understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacities) and except that any such partner, owner
or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to pay any installment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a
Note Owner, a beneficial interest in a Note, covenants and agrees that by accepting the benefits of the Indenture such Noteholder will not, prior to the date which is one year and one day after the termination of this Indenture with respect to the
Issuer, acquiesce, petition or otherwise invoke or cause the Seller or the Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Seller or the Issuer under any federal or
state bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Seller or the Issuer or any substantial part of its property, or ordering the winding up or
liquidation of the affairs of the Seller or the Issuer. 

 Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a
Note, unless otherwise required by appropriate taxing authorities, agrees to treat the Notes as indebtedness secured by the Receivables for the purpose of federal income taxes, state and local income and franchise taxes, and any other taxes imposed
upon, measured by or based upon gross or net income. 
  
 Prior to
the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other
date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note shall be overdue, and neither the Issuer, the Indenture Trustee nor any such agent shall be affected by notice to the contrary.

  
 The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Noteholders under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing a majority of the
Outstanding Amount of all the Controlling Class. The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the Notes,
to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one of more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon
this Note. The Indenture also permits the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of the Noteholders. 
  
 The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture. 
  
 The Issuer is permitted by the Indenture, under certain circumstances, to
merge or consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

  
 This Note and the Indenture shall be construed in accordance
with the laws of the State of Illinois, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws, except that the
obligations, rights and remedies of the Indenture Trustee hereunder shall be determined in accordance with the internal laws of the State of New York. 

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

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

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

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

			
	 Dated:                                     
   
	 	                                       
                                      2

	 	 	                         Signature Guaranteed:

		
	  

	 	  

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

 EXHIBIT C 
  

FORM OF CLASS A-2, CLASS A-3, CLASS A-4, 
 CLASS B AND CLASS C ASSET BACKED NOTE 
  

			
	 REGISTERED
	  	$                     3
		
	 No.
R-                    
	  	CUSIP NO.            

  
 SEE REVERSE FOR CERTAIN
DEFINITIONS 
  
 Unless this Note is presented by
an authorized representative of The Depository Trust Company, a New York corporation (“DTC”), to the Issuer or its agent for registration of transfer, exchange or payment, and any Note issued is registered in the name of Cede & Co. or
in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 
  
 THE PRINCIPAL OF THIS NOTE IS PAYABLE AS SET FORTH HEREIN. ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE
LESS THAN THE AMOUNT SHOWN ON THE FACE HEREOF. 
  
 NAVISTAR
FINANCIAL 2004-A OWNER TRUST 
  
 CLASS
                 % ASSET BACKED NOTES 
  
 NAVISTAR FINANCIAL 2004-A OWNER TRUST, a statutory trust organized and existing under the laws of the State of Delaware (herein referred to as the
“Issuer”), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum of                  DOLLARS
($                ) payable in accordance with the Indenture, prior to the occurrence of an Event of Default and a declaration that the Notes are due and payable,
on each Distribution Date in an amount equal to the result obtained by multiplying (i) a fraction, the numerator of which is the initial principal amount hereof and the denominator of which is [aggregate principal amount for class] by (ii)
the aggregate amount, if any, payable from the Note Distribution Account in respect of principal on such class of the Notes pursuant to Sections 2.7, 3.1 and 8.2 of the Indenture; provided, however, that the entire unpaid
principal amount of this Note shall be due and payable on [the earlier of]                      (the “Final Scheduled Distribution
Date”) [and the Redemption Date, if any, pursuant to Section 10.1(a) of the Indenture]. The Issuer shall pay interest on this Note at the rate per annum shown above on each 

	3	Denominations of $1,000 and integral multiples thereof (except, if applicable, for one Note representing a residual portion of such class which may be issued in a different
denomination). 

  

 C-1 

 Distribution Date until the principal of this Note is paid or made available for payment, on the principal amount of this
Note outstanding on the preceding Distribution Date (after giving effect to all payments of principal made on the preceding Distribution Date). Interest on this Note will accrue for each Distribution Date from and including the most recent
Distribution Date on which interest has been paid to but excluding the then current Distribution Date or, if no interest has yet been paid, from the Closing Date. Interest on this Note will be computed on the basis of a 360-day year of twelve 30-day
months (or, in the case of the initial Distribution Date, the actual days elapsed since the Closing Date to April 15, 2004, divided by 360). Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof.

  
 The principal of and interest on this Note are payable in such
coin or currency of the United States of America which, at the time of payment, is legal tender for payment of public and private debts. All payments made by the Issuer with respect to this Note shall be applied first to interest due and payable on
this Note as provided above and then to the unpaid principal of this Note. 
  
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as though fully set forth on the face of this Note. 
  
 Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof or be valid or obligatory for any purpose. 
  

 C-2 

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

							
	 Date:
	 	 NAVISTAR FINANCIAL 2004-A OWNER TRUST

			
	 	 	 By:
	 	 CHASE MANHATTAN BANK USA, NATIONAL
 ASSOCIATION not in its individual capacity, but
 solely as Owner Trustee under the Trust Agreement

				
	 	 	 	 	 By:
	 	  

	 	 	 	 	 Name:
	 	 John J. Cashin

	 	 	 	 	 Title:
	 	 Vice President

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

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

		
	 By:
	 	  

	 Name:
	 	 Jonathan Farber

	 Title:
	 	 Assistant Treasurer

 REVERSE OF NOTE 
  

This Note is one of a duly authorized issue of Notes of the Issuer designated as its Class         
        % Asset Backed Notes (herein called the “Class Notes”), all issued under an Indenture, dated as of April 1, 2004 (the “Closing Date” and such Indenture,
as supplemented or amended, is herein called the “Indenture”), between the Issuer and The Bank of New York, a New York banking corporation, as trustee (the “Indenture Trustee”, which term includes any successor
trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Noteholders. The Notes
are governed by and subject to all terms of the Indenture (which terms are incorporated herein and made a part hereof), to which Indenture the holder of this Note by virtue of acceptance hereof assents and by which such holder is bound. All
capitalized terms used and not otherwise defined in this Note that are defined in the Indenture, as supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture. 
  
 The Indenture secures (a) first, the payment of principal and interest on,
and any other amounts owing in respect of the Class A Notes, equally and ratably without prejudice, priority or distinction, (b) second, the payment of principal of and interest on, and any other amounts owing in respect of the Class B Notes,
equally and ratably without prejudice, priority or distinction and (c) third, the payment of principal of and interest on, and any other amounts owing in respect of the Class C Notes, equally and ratably without prejudice, priority or distinction,
and to secure compliance with the provisions of the Indenture, as provided therein. 
  
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with respect to the
obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith, against (i) the Indenture Trustee or the Owner Trustee in their
individual capacities, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in their individual capacities, any holder of a
beneficial interest in the Issuer, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in their individual capacities, except as any such Person may have expressly agreed (it being
understood that the Indenture Trustee and the Owner Trustee have no such obligations in their individual capacities) and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any
unpaid consideration for stock, unpaid capital contribution or failure to pay any instalment or call owing to such entity. 
  
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that by
accepting the benefits of the Indenture such Noteholder will not, prior to the date which is one year and one day after the termination of this Indenture with respect to the Issuer, acquiesce, petition or otherwise invoke or cause the Seller or the
Issuer to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against the Seller or the Issuer under any federal or state bankruptcy, insolvency or similar law or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Seller or the Issuer or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Seller, or the Issuer. 

 Each Noteholder, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a
Note, unless otherwise required by appropriate taxing authorities, agrees to treat the Notes as indebtedness secured by the Receivables for the purpose of federal income taxes, state and local income and franchise taxes, and any other taxes imposed
upon, measured by or based upon gross or net income. 
  
 Prior to
the due presentment for registration of transfer of this Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other
date as may be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note shall be overdue, and neither the Issuer, the Indenture Trustee nor any such agent shall be affected by notice to the contrary.

  
 The Indenture permits, with certain exceptions as therein
provided, the amendment thereof and the modification of the rights and obligations of the Issuer and the rights of the Noteholders under the Indenture at any time by the Issuer with the consent of the Holders of Notes representing a majority of the
Outstanding Amount of all the Controlling Class. The Indenture also contains provisions permitting the Holders of Notes representing specified percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the Notes,
to waive compliance by the Issuer with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Note (or any one of more Predecessor Notes) shall be
conclusive and binding upon such Holder and upon all future Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is made upon
this Note. The Indenture also permits the Indenture Trustee to amend or waive certain terms and conditions set forth in the Indenture without the consent of the Noteholders. 
  
 The term “Issuer” as used in this Note includes any successor to the Issuer under the Indenture. 
  
 The Issuer is permitted by the Indenture, under certain circumstances, to
merge or consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the Indenture. 
  
 The Notes are issuable only in registered form in denominations as provided in the Indenture, subject to certain limitations therein set forth.

  
 This Note and the Indenture shall be construed in accordance
with the laws of the State of Illinois, without reference to its conflict of law provisions, and the obligations, rights and remedies of the parties hereunder and thereunder shall be determined in accordance with such laws, except that the
obligations, rights and remedies of the Indenture Trustee hereunder shall be determined in accordance with the internal laws of the State of New York. 

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

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

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

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

			
	 Dated:                                
	  	                                       
                                        
  4

	 	  	                             Signature Guaranteed:

	  

	  	  

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

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