Document:

Form of Purchase Agreement

 Exhibit 10.1 
 PURCHASE AGREEMENT 
 THIS PURCHASE AGREEMENT (this “Agreement”) is made as of the 26th day
of June, 2007, by and between ISTA Pharmaceuticals, Inc. (the “Company”), a corporation organized under the laws of the State of Delaware, with its principal offices at 15295 Alton Parkway, Irvine, California 92618, and the
purchaser whose name and address is set forth on the signature page hereof (the “Purchaser”). 
 IN CONSIDERATION of the
mutual covenants contained in this Agreement, the Company and the Purchaser agree as follows: 
 SECTION 1. Authorization of Sale of the
Shares. Subject to the terms and conditions of the Agreements (as defined below), the Company has authorized the issuance and sale of up to 5,250,000 shares (the “Shares”) of common stock, par value $0.001 per share (the
“Common Stock”), of the Company. 
 SECTION 2. Agreement to Sell and Purchase the Shares. At the Closing (as defined
in Section 3), the Company will, subject to the terms of this Agreement, issue and sell to the Purchaser and the Purchaser will buy from the Company, upon the terms and conditions hereinafter set forth, the number of Shares (at the purchase
price) shown below: 
  

							
	 Number of Shares to Be Purchased
	  	 Price Per
 Share In
 Dollars
	  	 Aggregate
 Price

		  	$	7.00	  	$	 

 The Company proposes to enter into this same form of purchase agreement with certain other
investors (the “Other Purchasers”) and expects to complete sales of the shares of Common Stock to them. The Purchaser and the Other Purchasers are hereinafter sometimes collectively referred to as the “Purchasers,”
and this Agreement and the purchase agreements executed by the Other Purchasers are hereinafter sometimes collectively referred to as the “Agreements.” The Agreements do not contain any terms that are more favorable to the Other
Purchasers than the terms hereof. The term “Placement Agents” shall refer collectively to Lehman Brothers Inc., Lazard Frères & Co. LLC, Susquehanna Financial Group, LLLP, and Thomas Weisel Partners LLC. 

SECTION 3. Delivery of the Shares at the Closing. The completion of the purchase and sale of the Shares (the “Closing”) shall
occur at the offices of Morrison & Foerster LLP, 1290 Avenue of the Americas, New York, New York 10104, as soon as practicable and as agreed to by the parties hereto, within three business days following the execution of the Agreements, or
on such later date or at such different location as the parties shall agree in writing, but not prior to the date that the conditions for Closing set forth below have been satisfied or waived by the appropriate party (the “Closing
Date”). 

 At the Closing, the Purchaser shall deliver, in immediately available funds, the full amount of the
purchase price for the Shares being purchased hereunder by wire transfer to an account designated by the Company and the Company shall deliver to the Purchaser one or more stock certificates registered in the name of the Purchaser, or in such
nominee name(s) as designated by the Purchaser in writing, representing the number of Shares set forth in Section 2 above and bearing an appropriate legend referring to the fact that the Shares were sold in reliance upon the exemption from
registration under the Securities Act of 1933, as amended (the “Securities Act”), provided by Section 4(2) thereof and Rule 506 thereunder. The Company will promptly substitute one or more replacement certificates without the
legend at such time as the Registration Statement becomes effective. The name(s) in which the stock certificates are to be registered are set forth in the Stock Certificate Questionnaire attached hereto as part of Appendix I. 
 The Company’s obligation to complete the purchase and sale of the Shares and deliver such stock certificate(s) to the Purchaser at the Closing shall
be subject to the following conditions, any one or more of which may be waived by the Company: (a) receipt by the Company of same-day funds in the full amount of the purchase price for the Shares being purchased hereunder; (b) completion
of the purchases and sales under the Agreements with the Other Purchasers; (c) the accuracy of the representations and warranties made by the Purchasers and the fulfillment of those undertakings of the Purchasers to be fulfilled prior to the
Closing; and (d) receipt by the Company from the Purchaser of a fully completed questionnaire attached hereto as Appendix I. The Purchaser’s obligation to accept delivery of such stock certificate(s) and to pay for the Shares evidenced
thereby shall be subject to the following conditions, any one or more of which may be waived by the Purchaser: (a) each of the representations and warranties of the Company made herein shall be accurate as of the Closing Date; (b) the
delivery to the Purchaser by counsel to the Company of a legal opinion in a form reasonably satisfactory to counsel to the Placement Agents; (c) the delivery to the Purchaser by intellectual property counsel to the Company of a legal opinions
in a form reasonably satisfactory to counsel to the Placement Agents; (d) receipt by the Purchaser of a certificate executed by the chief executive officer and the chief financial or accounting officer of the Company, dated as of the Closing
Date, to the effect that the representations and warranties of the Company set forth herein are true and correct as of the date of this Agreement and as of such Closing Date and that the Company has complied with all the agreements and satisfied all
the conditions herein on its part to be performed or satisfied on or prior to such Closing Date; (f) the fulfillment in all material respects of those undertakings of the Company to be fulfilled prior to the Closing; (g) the delivery to
the Purchaser of a certificate evidencing the formation and good standing of the Company in such entity’s jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction, as of a date within 10 days of the
Closing Date; (h) receipt by the Purchaser of a certificate, executed by the Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions adopted by the Company’s Board of Directors relating to the Agreements
and the transactions contemplated thereby in a form reasonably acceptable to the Placement Agents, (ii) the Certificate of Incorporation and (iii) the Bylaws, each as in effect at the Closing; (i) receipt by the Purchaser of a
certificate, executed by the Company’s transfer agent and dated as of the Closing Date, evidencing the total number of 

  

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shares outstanding as of a recent date, without giving effect to the issuance of the Shares; (j) the Common Stock (i) shall be listed on the Nasdaq
Global Market and (ii) shall not have been suspended, as of the Closing Date, by the Securities and Exchange Commission (the “Commission”) or the Nasdaq Global Market from trading on the Nasdaq Global Market nor shall
suspension by the Commission or the Nasdaq Global Market have been threatened, as of the Closing Date, either (A) in writing by the Commission or the Nasdaq Global Market or (B) by falling below the minimum listing maintenance requirements
of the Nasdaq Global Market; and (k) the Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Shares. The Purchaser’s obligations hereunder are expressly not
conditioned on the purchase by any or all of the Other Purchasers of the Shares that they have agreed to purchase from the Company. 
 SECTION 4. Representations, Warranties and Covenants of the Company. The Company hereby represents and warrants to, and covenants with, the Purchaser as follows: 
 4.1 Organization and Qualification. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of its
jurisdiction of incorporation and the Company is qualified to do business as a foreign corporation in each jurisdiction in which qualification is required, except where failure to so qualify could not reasonably be expected to have a Material
Adverse Effect (as defined herein). The Company’s subsidiaries (each a “Subsidiary” and collectively the “Subsidiaries”) are listed on Exhibit A to this Agreement. Each Subsidiary is a direct or indirect
wholly owned subsidiary of the Company. Each Subsidiary is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation and is qualified to do business as a foreign corporation in each jurisdiction in
which qualification is required, except where failure to so qualify could not reasonably be expected to have a Material Adverse Effect. 
 4.2 Reporting Company; Form S-3. The Company is not an “ineligible issuer” (as defined in Rule 405 promulgated under the Securities Act) and is eligible to register the Shares for resale by the Purchaser on a registration
statement on Form S-3 under the Securities Act. The Company is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and has timely filed all reports within the 24 month
period prior to this Agreement required thereby. Provided none of the Purchasers is deemed to be an underwriter with respect to any shares, to the Company’s knowledge, there exist no facts or circumstances (including without limitation any
required approvals or waivers or any circumstances that may prevent the obtaining of accountant’s consents) that reasonably could be expected to prohibit the preparation and filing of a registration statement on Form S-3 that will be available
for the resale of the Shares by the Purchaser. 
 4.3 Authorized Capital Stock. The Company had duly authorized and validly issued
outstanding capitalization as set forth on Schedule I as of the date set forth therein; the issued and outstanding shares of Common Stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and conform in all material respects to the description thereof contained in the
SEC Documents (as defined herein). Except as described in 

  

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the SEC Documents, the Company does not have outstanding any options to purchase, or any preemptive rights or other rights to subscribe for or to purchase,
any securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of its capital stock or any such options, rights, convertible securities or obligations. With respect to each of the Subsidiaries (i) all
the issued and outstanding shares of such Subsidiary’s capital stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, were not issued in
violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and (ii) there are no outstanding options to purchase, or any preemptive rights or other rights to subscribe for or to purchase, any
securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of such Subsidiary’s capital stock or any such options, rights, convertible securities or obligations. 
 4.4 Issuance, Sale and Delivery of the Shares. The Shares have been duly authorized and, when issued, delivered and paid for in the manner set
forth in this Agreement, will be validly issued, fully paid and nonassessable, and will conform in all material respects to the description thereof set forth in the SEC Documents (as defined herein). No preemptive rights or other rights to subscribe
for or purchase any shares of Common Stock of the Company exist with respect to the issuance and sale of the Shares by the Company pursuant to this Agreement which have not been waived or complied with. No stockholder of the Company has any right
(which has not been waived or has not expired by reason of lapse of time following notification of the Company’s intention to file the Registration Statement (as hereinafter defined)) to require the Company to register the sale of any capital
stock owned by such stockholder under the Registration Statement. No further approval or authority of the stockholders or the Board of Directors of the Company will be required for the issuance and sale of the Shares to be sold by the Company as
contemplated herein. 
 4.5 Due Execution, Delivery and Performance of the Agreements. The Company has full legal right, corporate
power and authority to enter into this Agreement and perform the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by the Company. This Agreement constitutes a legal, valid and binding agreement of the
Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to or affecting the
enforcement of creditors’ rights and the application of equitable principles relating to the availability of remedies, and except as rights to indemnity or contribution, including but not limited to, indemnification provisions set forth in
Section 7.3 of this Agreement may be limited by federal or state securities law or the public policy underlying such laws. The execution and performance of this Agreement by the Company and the consummation of the transactions herein
contemplated will not violate any provision of the certificate of incorporation or bylaws of the Company or the organizational documents of any Subsidiary and will not result in the creation of any lien, charge, security interest or encumbrance upon
any assets of the Company or any Subsidiary pursuant to the terms or provisions of, or will not conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under any
agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument to which any of the Company or any Subsidiary is a party or by which any of the Company or any Subsidiary or their respective properties may be
bound or affected and in each 

  

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case that could reasonably be expected to have a Material Adverse Effect, any statute or any authorization, judgment, decree, order, rule or regulation of
any court or any regulatory body, administrative agency or other governmental agency or body applicable to the Company or any Subsidiary or any of their respective properties. No consent, approval, authorization or other order of any court,
regulatory body, administrative agency or other governmental agency or body is required for the execution and delivery of this Agreement or the consummation of the transactions contemplated by this Agreement, except for compliance with the Blue Sky
laws and federal securities laws applicable to the offering of the Shares. For the purposes of this Agreement the term “Material Adverse Effect” shall mean a material adverse effect on the condition (financial or otherwise),
properties, business, prospects or results of operations of the Company and its Subsidiaries, taken as a whole. 
 4.6 Accountants.
Ernst & Young LLP, who has expressed its opinion with respect to the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006, are registered independent public
accountants as required by the Securities Act and the rules and regulations promulgated thereunder (the “1933 Act Rules and Regulations”) and by the rules of the Public Accounting Oversight Board. 
 4.7 No Defaults or Consents. Except for compliance with, or waiver of, the Company’s obligations under Section 4 of that certain
Securities Purchase Agreement, dated as of June 21, 2006, between the Company and the investors party thereto, neither the execution, delivery and performance of this Agreement by the Company nor the consummation of any of the transactions
contemplated hereby (including, without limitation, the issuance and sale by the Company of the Shares) will give rise to a right to terminate or accelerate the due date of any payment due under, or conflict with or result in the breach of any term
or provision of, or constitute a default (or an event which with notice or lapse of time or both would constitute a default) under, except such defaults that individually or in the aggregate could not reasonably be expected to cause a Material
Adverse Effect, or require any consent or waiver under, or result in the execution or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or its Subsidiaries pursuant to the terms of, any indenture, mortgage,
deed of trust or other agreement or instrument to which the Company or any of its Subsidiaries is a party or by which either the Company or its Subsidiaries or any of its or their properties or businesses is bound, or any franchise, license, permit,
judgment, decree, order, statute, rule or regulation applicable to the Company or any of its Subsidiaries or violate any provision of the charter or by-laws of the Company or any of its Subsidiaries, except for such consents or waivers which have
already been obtained and are in full force and effect. 
 4.8 Contracts. The material contracts to which the Company is a party have
been duly and validly authorized, executed and delivered by the Company and constitute the legal, valid and binding agreements of the Company, enforceable by and against it in accordance with their respective terms, except as such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to enforcement of creditors’ rights generally, and general equitable principles relating to the availability of remedies, and except as rights to
indemnity or contribution may be limited by federal or state securities laws and the public policy underlying such laws. 
  

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 4.9 No Actions. There are no legal or governmental actions, suits or proceedings pending or, to
the Company’s knowledge, threatened against the Company or any Subsidiary before or by any court, regulatory body or administrative agency or any other governmental agency or body, domestic, or foreign, which actions, suits or proceedings,
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect; and no labor disturbance by the employees of the Company exists or is imminent, that could reasonably be expected to have a Material Adverse Effect.
Neither the Company nor any Subsidiary is a party to or subject to the provisions of any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other governmental agency or body that could reasonably be
expected to have a Material Adverse Effect. 
 4.10 Properties. The Company and each Subsidiary has good and marketable title to all
the properties and assets described as owned by it in the consolidated financial statements included in the SEC Documents, free and clear of all liens, mortgages, pledges, or encumbrances of any kind except (i) those, if any, reflected in such
consolidated financial statements, or (ii) those that are not material in amount and do not adversely affect the use made and proposed to be made of such property by the Company or its Subsidiaries. The Company and each Subsidiary holds its
leased properties under valid and binding leases. The Company and any Subsidiary owns or leases all such properties as are necessary to its operations as now conducted. 
 4.11 No Material Adverse Change. Except as disclosed in the SEC Documents, or except as otherwise publicly disclosed by the Company through the issuance of a press release, since December 31, 2006
(i) the Company and its Subsidiaries have not incurred any material liabilities or obligations, indirect, or contingent, or entered into any material agreement or other transaction that is not in the ordinary course of business or that could
reasonably be expected to result in a material reduction in the future earnings of the Company; (ii) the Company and its Subsidiaries have not sustained any material loss or interference with their businesses or properties from fire, flood,
windstorm, accident or other calamity not covered by insurance; (iii) the Company and its Subsidiaries have not paid or declared any dividends or other distributions with respect to their capital stock and none of the Company or any Subsidiary
is in default in the payment of principal or interest on any outstanding debt obligations; (iv) there has not been any change in the capital stock of the Company or its Subsidiaries other than the sale of the Shares hereunder and shares or
options issued pursuant to employee equity incentive plans or purchase plans approved by the Company’s Board of Directors, or indebtedness material to the Company or its Subsidiaries (other than in the ordinary course of business and any
required scheduled payments); and (v) there has not occurred any event that has caused or could reasonably be expected to cause a Material Adverse Effect. The Company has taken reasonable steps to protect the material Intellectual Property of
the Company and the Subsidiaries. 
 4.12 Intellectual Property. Except as disclosed in the SEC Documents, (i) the Company and
each Subsidiary owns or has obtained valid and enforceable licenses or options for the inventions, patent applications, patents, trademarks (both registered and unregistered), trade names, copyrights and trade secrets necessary for the conduct of
their respective business as currently conducted (collectively, the “Intellectual Property”); and (ii) (a) there are no third parties who have any ownership rights to any Intellectual Property that is owned by, or has been
licensed to, the Company or each Subsidiary for the products described in 

  

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the SEC Documents that would preclude the Company or any Subsidiary from conducting its business as currently conducted and could reasonably be expected to
have a Material Adverse Effect, except for the ownership rights of the owners of the Intellectual Property licensed or optioned by the Company or any Subsidiary; (b) there are currently no sales of any products that would constitute an
infringement by third parties of any Intellectual Property owned, licensed or optioned by the Company or any Subsidiary, which infringement could reasonably be expected to have a Material Adverse Effect; (c) there is no pending or, to the
Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the rights of the Company or any Subsidiary in or to any Intellectual Property owned, licensed or optioned by the Company or any Subsidiary, other than
claims which could not reasonably be expected to have a Material Adverse Effect; (d) there is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any
Intellectual Property owned, licensed or optioned by the Company or any Subsidiary, other than non-material actions, suits, proceedings and claims; and (e) there is no pending or, to the Company’s knowledge, threatened action, suit,
proceeding or claim by others that the Company or any of any Subsidiaries infringes or otherwise violates any patent, trademark, copyright, trade secret or other proprietary right of others, other than non-material actions, suits, proceedings and
claims. To the Company’s knowledge, no third party is misappropriating, infringing, diluting or violating any Intellectual Property of the Company or any Subsidiary, that is used or is likely to be used in the business of the Company as
described in the SEC Documents, and no such claims have been brought against any third party by the Company or any Subsidiary. 
 4.13
Compliance. The Company and its Subsidiaries have conducted their respective businesses in compliance with all applicable laws, rules and regulations of the jurisdictions in which it is conducting business, including, without limitation, all
applicable local, state and federal environmental laws and regulations, except where failure to be so in compliance could not reasonably be expected to have a Material Adverse Effect. 
 4.14 Taxes. The Company and each Subsidiary has filed on a timely basis (giving effect to extensions) all required federal, state and foreign
income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and none of the Company or any Subsidiary has knowledge of a tax deficiency that has been or might be asserted or threatened against it that could reasonably be
expected to have a Material Adverse Effect. All tax liabilities accrued through the date hereof have been adequately provided for on the books of the Company. 
 4.15 Transfer Taxes. On the Closing Date, all stock transfer or other taxes (other than income taxes) that are required to be paid in connection with the sale and transfer of the Shares to be sold to the
Purchaser hereunder will have been, fully paid or provided for by the Company and all laws imposing such taxes will have been fully complied with. 
 4.16 Investment Company. The Company is not an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the
Investment Company Act of 1940, as amended, and the rules and regulations of the Commission promulgated thereunder. 
  

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 4.17 Offering Materials. Each of the Company, its directors and officers has not distributed and
will not distribute prior to the Closing Date any offering material, including any “free writing prospectus” (as defined in Rule 405 promulgated under the Securities Act), in connection with the offering and sale of the Shares. The Company
has not in the past nor will it hereafter take any action independent of the Placement Agents to sell, offer for sale or solicit offers to buy any securities of the Company that could result in the initial sale of the Shares not being exempt from
the registration requirements of Section 5 of the Securities Act. 
 4.18 Insurance. The Company maintains insurance underwritten
by insurers of recognized financial responsibility, of the types and in the amounts that the Company reasonably believes is adequate for its business, including, but not limited to, insurance covering all real and personal property owned or leased
by the Company against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, with such deductibles as are customary for companies in the same or similar business, all of which insurance is in full force and
effect. 
 4.19 Additional Information. The information contained in the following documents (the “SEC Documents”),
available through the Commission’s EDGAR system, as of the dates thereof, did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein in light
of the circumstances in which they were made not misleading: 
 (a) the Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2006; 
 (b) the Company’s Amendment No. 1 to Annual Report on Form 10-K/A for the fiscal year ended
December 31, 2006; 
 (c) the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2007; 

(d) the Company’s Registration Statement on Form 8-A, relating to the description of its Common Stock, filed with the SEC on August 3, 2000,
including any amendment or report filed for the purposed of updating such description; and 
 (e) all other documents, if any, filed by the
Company with the Commission since December 31, 2006 pursuant to the reporting requirements of the Exchange Act. 
 The SEC Documents and
the documents incorporated by reference therein or attached as exhibits thereto, at the time they became effective or were filed with the Commission, as the case may be, complied in all material respects with the requirements of the Exchange Act, as
applicable, and the rules and regulations of the Commission thereunder (the “1934 Act Rules and Regulations” and, together with the 1933 Act Rule and Regulations, the “Rules and Regulations”). In the past 12
calendar months, the Company has filed all documents required to be filed by it prior to the date hereof with the Commission pursuant to the reporting requirements of the Exchange Act. 
  

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 4.20 Price of Common Stock. The Company has not taken, and will not take, directly or indirectly,
any action designed to cause or result in, or that has constituted or that might reasonably be expected to constitute, the stabilization or manipulation of the price of the shares of the Common Stock to facilitate the sale or resale of the Shares.

 4.21 Use of Proceeds. The Company shall use the proceeds from the sale of the Shares for working capital and general corporate
purposes. 
 4.22 Non-Public Information. The Company has not disclosed to the Purchaser information that would constitute material
non-public information as of the Closing Date other than the existence of the transaction contemplated hereby. 
 4.23 Use of Purchaser
Name. Except as otherwise required by applicable law or regulation the Company shall not use the Purchaser’s name or the name of any of its affiliates in any advertisement, announcement, press release or other similar public communication
unless it has received the prior written consent of the Purchaser for the specific use contemplated which consent shall not be unreasonably withheld or delayed. 
 4.24 Related Party Transactions. No transaction has occurred between or among the Company, on the one hand, and its affiliates, officers or directors on the other hand, that is required to have been described
under applicable securities laws in its Exchange Act filings and is not so described in such filings. 
 4.25 Off-Balance Sheet
Arrangements. There is no transaction, arrangement or other relationship between the Company and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and is not so
disclosed or that otherwise could reasonably be expected to have a Material Adverse Effect. There are no such transactions, arrangements or other relationships with the Company that may create contingencies or liabilities that are not otherwise
disclosed by the Company in its Exchange Act filings. 
 4.26 Governmental Permits, Etc. The Company and each Subsidiary has all
franchises, licenses, certificates and other authorizations from such federal, state or local government or governmental agency, department or body that are currently necessary for the operation of the business of the Company as currently conducted,
except where the failure to possess currently such franchises, licenses, certificates and other authorizations could not reasonably expected to have a Material Adverse Effect. Neither the Company nor any Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such permit that, if the subject of an unfavorable decision, ruling or finding, could reasonably be expected to have a Material Adverse Effect. 
 4.27 Financial Statements. The consolidated financial statements of the Company and the related notes and schedules thereto included in its
Exchange Act filings fairly present the financial position, results of operations, stockholders’ equity and cash flows of the Company and its consolidated Subsidiaries at the dates and for the periods specified therein. Such financial
statements and the related notes and schedules thereto have been prepared in accordance with generally accepted accounting principles consistently applied throughout the 

  

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periods involved (except as otherwise noted therein) and all adjustments necessary for a fair presentation of results for such periods have been made;
provided, however, that the unaudited financial statements are subject to normal year-end audit adjustments (which are not expected to be material) and do not contain all footnotes required under generally accepted accounting principles. 

4.28 Listing Compliance. The Company is in compliance with the requirements of the Nasdaq Global Market for continued listing of the Common
Stock thereon. The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or the listing of the Common Stock on the Nasdaq Global Market, nor has the Company
received any notification that the Commission or the Nasdaq Global Market is contemplating terminating such registration or listing. The transactions contemplated by this Agreement will not contravene the rules and regulations of the Nasdaq Global
Market. The Company will comply with all requirements of the Nasdaq Global Market with respect to the issuance of the Shares and shall cause the Shares to be listed on the Nasdaq Global Market. 
 4.29 Internal Accounting Controls. The Company maintains a system of internal accounting controls sufficient to provide reasonable assurances that
(i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted
accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared
with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company maintains disclosure controls and procedures (as defined in Rules 13a-14 and 15d-14 under the Exchange Act) that are designed
to ensure that material information relating to the Company is made known to the Company’s principal executive officer and the Company’s principal financial officer or persons performing similar functions. The Company is otherwise in
compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002, as amended and the rules and regulations promulgated thereunder. 
 4.30 Foreign Corrupt Practices. Neither the Company, nor any Subsidiary, nor, to the knowledge of the Company, any director, officer, agent, employee or other Person acting on behalf of the Company or any
Subsidiary has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct
or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made
any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee. 
 4.31 Employee Relations. Neither the Company nor any Subsidiary is a party to any collective bargaining agreement or employs any member of a union. The Company and each Subsidiary believe that their relations
with their employees are good. No executive officer of the Company (as defined in Rule 501(f) promulgated under the Securities 

  

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Act) has notified the Company that such officer intends to leave the Company or otherwise terminate such officer’s employment with the Company. No
executive officer of the Company is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other agreement or any
restrictive covenant, and the continued employment of each such executive officer does not subject the Company or any Subsidiary to any liability with respect to any of the foregoing matters. 
 4.32 ERISA. The Company is in compliance in all material respects with all presently applicable provisions of the Employee Retirement Income
Security Act of 1974, as amended, including the regulations and published interpretations thereunder (herein called “ERISA”); no “reportable event” (as defined in ERISA) has occurred with respect to any “pension
plan” (as defined in ERISA) for which the Company would have any liability; the Company has not incurred and does not expect to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any
“pension plan”; or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations thereunder (the “Code”); and each “Pension Plan” for
which the Company would have liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by action or by failure to act, which would cause the loss of
such qualification. 
 4.33 Environmental Matters. There has been no storage, disposal, generation, manufacture, transportation,
handling or treatment of toxic wastes, hazardous wastes or hazardous substances by the Company or to its knowledge, any Subsidiary (or, to the knowledge of the Company, any of their predecessors in interest) at, upon or from any of the property now
or previously owned or leased by the Company or any Subsidiary in violation of any applicable law, ordinance, rule, regulation, order, judgment, decree or permit or that would require remedial action under any applicable law, ordinance, rule,
regulation, order, judgment, decree or permit; there has been no material spill, discharge, leak, emission, injection, escape, dumping or release of any kind into such property or into the environment surrounding such property of any toxic wastes,
medical wastes, solid wastes, hazardous wastes or hazardous substances due to or caused by the Company or any Subsidiary or with respect to which the Company or any Subsidiary have knowledge; the terms “hazardous wastes”, “toxic
wastes”, “hazardous substances”, and “medical wastes” shall have the meanings specified in any applicable local, state, federal and foreign laws or regulations with respect to environmental protection. 
 4.34 Integration; Other Issuances of Shares. Neither the Company nor its Subsidiaries or any affiliates, nor any Person acting on its or their
behalf, has issued any shares of Common Stock or shares of any series of preferred stock or other securities or instruments convertible into, exchangeable for or otherwise entitling the holder thereof to acquire shares of Common Stock which would be
integrated with the sale of the Shares to such Purchaser for purposes of the Securities Act or of any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation
system on which any of the securities of the Company are listed or designated, nor will the Company or its Subsidiaries or affiliates take any action or steps that would require registration of any of the Shares under the Securities Act or cause the
offering of 

  

 11 

 
the Shares to be integrated with other offerings. Assuming the accuracy of the representations and warranties of Purchasers, the offer and sale of the Shares
by the Company to the Purchasers pursuant to this Agreement will be exempt from the registration requirements of the Securities Act. 
 4.35
FDA Compliance. Except as provided in the SEC Documents, the Company is conducting its business in compliance with the rules and regulations of the United States Food and Drug Administration (the “FDA”) and all applicable
federal, state and local laws, orders, rules, regulations, directives, decrees and judgments of each of the jurisdictions in which it is conducting business, including, without limitation, all applicable local, state and federal laws and regulations
governing health, sanitation, safety, zoning and land use, except where the failure to be so in compliance would not have a Material Adverse Effect. There are no pending or threatened administrative, regulatory or judicial actions, suits, demands,
demand letters, claims, liens, notices of noncompliance or violation, investigation or proceedings before the FDA or any other federal, state, local or foreign governmental bodies that involve or effect the Company, its existing products, product
candidates or any of its Subsidiaries which, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would be reasonably likely to result in a Material Adverse Effect. 
 4.36 Trade Secrets. The Company has taken reasonable steps in accordance with normal industry practice to protect its rights in the Company’s
confidential information and trade secrets, the secrecy of which is material to the business of the Company as described in the SEC Documents. Without limiting the generality of the foregoing, the Company generally enforces a policy of requiring
each relevant employee, consultant and contractor to execute agreements that contain provisions designed to prevent unauthorized disclosure of the Company’s confidential information and Company trade secrets. With respect to employees, such
agreements assign to the Company all Intellectual Property rights relating to the Company’s business as described in the SEC Documents that is developed by the employee in the course of his or her activities as an employee of the Company. With
respect to contractors and consultants, the agreements either assign all Intellectual Property rights developed pursuant to the agreement, which the Company determined at the time was material to its business or license such rights on agreed-upon
terms. Except under confidentiality obligations there has been no disclosure by the Company of material confidential information or material trade secrets of Company. 
 4.37 License Agreements. Neither the Company nor any Subsidiary is in breach or default (nor has any event occurred which with notice, lapse of time, or both would result in any breach of, or constitute a
default) under any license agreements granting to the Company or such Subsidiary any right to incorporate any Intellectual Property into any commercial product of the Company filed as an exhibit to the SEC Documents or any license agreements under
which the Company or such Subsidiary licenses or grants a third party rights to incorporate any rights under any Company Intellectual Property into any commercial product of such third party filed as an exhibit to the SEC Documents, except in each
case as would not, individually or in the aggregate, be reasonably expected to result in a Material Adverse Effect. 
 4.38 Acknowledgment
Regarding Purchaser’s Purchase of Shares. The Company acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Agreement

  

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and the transactions contemplated hereby, and any advice given by a Purchaser or any of its representatives or agents in connection with the Agreement and
the transactions contemplated hereby is merely incidental to such Purchaser’s purchase of the Shares. The Company further represents to the Purchaser that the Company’s decision to enter into the Agreements has been based solely on the
independent evaluation by the Company and its representatives. 
 4.39 Application of Takeover Protections; Rights Agreement. The
Company and its board of directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar
anti-takeover provision under the Company’s Certificate of Incorporation, as amended and as in effect on the date hereof (the “Certificate of Incorporation”) or the laws of the state of its incorporation which is applicable to
any Purchaser as a result of the transactions contemplated by the Agreements, including, without limitation, the Company’s issuance of the Shares and the Purchaser’s ownership of the Shares. As a consequence of the Agreements and the
transactions contemplated thereby, (i) no Purchaser shall be an “Acquiring Person” within the meaning of the Preferred Stock Rights Agreement (the “Rights Agreement”), dated December 31, 2001, as amended, between
the Company and the rights agent named therein, and (ii) a “Triggering Event” (as defined in the Rights Agreement) shall not have occurred. The Company has no other stockholder rights plans or similar arrangements relating to the
accumulation of beneficial ownership of Common Stock or a change of control of the Company. 
 4.40 No Insolvency. The Company and its
Subsidiaries, individually and on a consolidated basis, are not as of the date hereof, and after giving effect to the transactions contemplated by the Agreements to occur at the Closing, will not be Insolvent (as defined herein). For purposes of
this Section 4.40, “Insolvent” means, with respect to any Person (as defined herein), (i) the present fair saleable value of such Person’s assets is less than the amount required to pay such Person’s total
Indebtedness (as defined herein), (ii) such Person is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (iii) such Person intends to incur or believes
that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) such Person has unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed
to be conducted. “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof. 
 4.41 Indebtedness and Other Contracts. Except as disclosed in the SEC Documents, neither the Company nor any of its Subsidiaries (i) has any
outstanding Indebtedness (as defined herein) in excess of $100,000, individually, or $500,000, in the aggregate from any one lender (together with such lender’s affiliates), (ii) is a party to any contract, agreement or instrument, the
violation of which, or default under which, by the other party(ies) to such contract, agreement or instrument could reasonably be expected to result in a Material Adverse Effect, (iii) is in violation of any term of or in default under any
contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (iv) is a party to any contract, agreement or
instrument relating to any Indebtedness, the performance of which, in the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. 

  

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For purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication (A) all indebtedness for borrowed
money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services, including (without limitation) “capital leases” in accordance with generally accepted accounting principles (other than
trade payables entered into in the ordinary course of business), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments, (D) all obligations evidenced by notes, bonds,
debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention
agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are
limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with generally accepted accounting principles, consistently applied for the periods covered thereby,
is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any
mortgage, lien, pledge, charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or
become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) “Contingent
Obligation” means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the
Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the
holders of such liability will be protected (in whole or in part) against loss with respect thereto. 
 4.42 Insurance. The Company
and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company
and its Subsidiaries are engaged. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar
insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 
 4.43 Acknowledgement
Regarding Purchaser’s Trading Activity. Anything in this Agreement or elsewhere herein to the contrary notwithstanding, but subject to compliance by the Purchaser with applicable law and the provisions of this Agreement and except to the
extent as provided in any confidentiality or other agreement between a Purchaser and the Company, it is understood and acknowledged by the Company (i) that the Purchaser has not been asked to agree, nor has the Purchaser Buyer agreed, to desist
from purchasing or selling, long and/or short, securities of the Company, or “derivative” securities based on securities issued by the Company or to hold the Shares for any specified term; (ii) that past or future open market or other
transactions by the Purchaser, including, without limitation, short sales or “derivative” 

  

 14 

 
transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company’s
publicly-traded securities; (iii) that the Purchaser, and counter parties in “derivative” transactions to which the Purchaser is a party, directly or indirectly, presently may have a “short” position in the Common Stock, and
(iv) that the Purchaser shall not be deemed to have any affiliation with or control over any arm’s length counter-party in any “derivative” transaction. The Company further understands and acknowledges that (a) the Purchaser
may engage in hedging activities at various times during the period that the Shares are outstanding and (b) such hedging activities (if any) could reduce the value of the existing stockholders’ equity interests in the Company at and after
the time that the hedging activities are being conducted. 
 4.44 Disclosure. All disclosure provided to the Purchaser
regarding the Company and its Subsidiaries, their business and the transactions contemplated hereby furnished by or on behalf of the Company is true and correct and does not contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. Each press release issued by the Company or its Subsidiaries during the 12 months preceding the date
of this Agreement did not at the time of release contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading. No event or circumstance has occurred or information exists with respect to the Company or any of its Subsidiaries or its or their business, properties, prospects, operations or financial conditions,
which, under applicable law, rule or regulation, requires public disclosure or announcement by the Company but which has not been so publicly announced or disclosed. 
 4.45 U.S. Real Property Holding Corporation. The Company is not, nor has ever been, a U.S. real property holding corporation within the meaning of Section 897 of the Code and the Company shall so certify upon
Purchaser’s request. 
 SECTION 5. Representations, Warranties and Covenants of the Purchaser. The Purchaser represents and
warrants to, and covenants with, the Company that: 
 5.1 Experience. (i) The Purchaser is knowledgeable, sophisticated and
experienced in financial and business matters, in making, and is qualified to make, decisions with respect to investments in shares representing an investment decision like that involved in the purchase of the Shares, including investments in
securities issued by the Company and comparable entities, and the Purchaser has undertaken an independent analysis of the merits and the risks of an investment in the Shares, based on the Purchaser’s own financial circumstances; (ii) the
Purchaser has had the opportunity to request, receive, review and consider all information it deems relevant in making an informed decision to purchase the Shares and to ask questions of, and receive answers from, the Company concerning such
information; (iii) the Purchaser is acquiring the number of Shares set forth in Section 2 above in the ordinary course of its business and for its own account for investment only and with no present intention of distributing any of such
Shares or any arrangement or understanding with any other persons regarding the distribution of such Shares (this representation and warranty not limiting the Purchaser’s right to sell pursuant to the Registration Statement or in compliance
with the Securities Act and the Rules and Regulations, or, other than with respect to any claims arising out of a breach of this representation and warranty, the Purchaser’s right to indemnification under Section 7.3); (iv) the
Purchaser has completed or caused to be completed the Registration Statement Questionnaire attached hereto as part of Appendix I, for use in preparation of the Registration Statement, and the answers thereto are true and correct as of the
date hereof and will be true and correct as of the effective date of the Registration Statement and the Purchaser will notify the Company immediately of any material change in any such information provided in the Registration Statement Questionnaire
(other than changes in beneficial ownership) until such time as the Purchaser has sold all of its Shares or until the Company is no longer required to keep the Registration Statement effective; (v) the Purchaser has, in connection with its
decision to purchase the number of Shares set forth in Section 2 above, relied solely upon the SEC Documents and the representations and warranties of the Company contained herein, and the Purchaser has not relied on the Placement Agents in
negotiating the terms of its investment in the Shares and, in making a decision to purchase the Shares, the Purchaser has not received or relied on any communication, investment advice or recommendation from the Placement Agents; (vi) the
Purchaser has had an opportunity to discuss this investment with representatives of the Company and ask questions of them and (vii) the Purchaser is an institutional “accredited investor” within the meaning of Rule 501(a) of
Regulation D promulgated under the Securities Act. Notwithstanding the foregoing, the Shares may be pledged in connection with a bona fide margin account or other loan or financing 

  

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arrangement secured by the Shares and such pledge of Shares shall not be deemed to be a transfer, sale or assignment of the Shares hereunder, and no
Purchaser effecting a pledge of Shares shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement. 
 5.2 Reliance on Exemptions. The Purchaser understands that the Shares are being offered and sold to it in reliance upon specific exemptions from
the registration requirements of the Securities Act, the Rules and Regulations and state securities laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Shares. 
 5.3 Confidentiality. For the benefit of the Company, the Purchaser previously agreed with the Placement Agents to keep confidential all
information concerning this private placement. The Purchaser is prohibited from reproducing or distributing this Agreement or any other offering materials or other information provided by the Company in connection with the Purchaser’s
consideration of its investment in the Company, in whole or in part, or divulging or discussing any of their contents, except to its financial, investment or legal advisors in connection with its proposed investment in the Shares. Further, the
Purchaser understands that the existence and nature of all conversations and presentations, if any, regarding the Company and this offering must be kept strictly confidential. The Purchaser understands that the federal securities laws impose
restrictions on trading based on information regarding this offering. In addition, the Purchaser hereby acknowledges that unauthorized disclosure of information regarding this offering may result in a violation of Regulation FD. This obligation will
terminate upon the filing by the Company of a press release or press releases describing this offering. The foregoing agreements shall not apply to any information that is or becomes publicly available through no fault of the Purchaser, or that the
Purchaser is legally required to disclose; provided, however, that if the Purchaser is requested or ordered to disclose any such information pursuant to any court or other government order or any other applicable legal procedure, it shall provide
the Company with prompt notice of any such request or order in time sufficient to enable the Company to seek an appropriate protective order. 
 5.4 Investment Decision. The Purchaser understands that nothing in the Agreement or any other materials presented to the Purchaser in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice.
The Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares. 
 5.5 Risk of Loss. The Purchaser understands that its investment in the Shares involves a significant degree of risk, including a risk of total
loss of the Purchaser’s investment, and the Purchaser has full cognizance of and understands all of the risk factors related to the Purchaser’s purchase of the Shares, including, but not limited to, those set forth under the caption
“Risk Factors” in certain SEC Documents. The Purchaser understands that the market price of the Common Stock has been volatile and that no representation is being made as to the future value of the Common Stock. 
  

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 5.6 Legend. The Purchaser understands that, until such time as the Registration Statement has been
declared effective or the Shares may be sold pursuant to Rule 144 under the Securities Act without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Shares will bear a restrictive legend in
substantially the following form: 
 “THE SHARES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SHARES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A
TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.” 

The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Shares upon which it is
stamped, if, unless otherwise required by state securities laws, (i) such Shares are registered for resale under the Securities Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion, in a
generally acceptable form, to the effect that such sale, assignment or transfer of the Shares may be made without registration under the applicable requirements of the Securities Act, or (iii) such holder provides the Company with reasonable
assurance that the Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A. The Company shall remove such legend no later than three trading days after satisfaction of any of the above conditions. 
 5.7 Stop Transfer. The certificates representing the Shares will be subject to a stop transfer order with the Company’s transfer agent that
restricts the transfer of such shares except upon receipt by the transfer agent of a written confirmation from the Purchaser to the effect that the Purchaser has satisfied its prospectus delivery requirements, in the form attached as Exhibit
B hereto. 
 5.8 Residency. The Purchaser’s principal executive offices are in the jurisdiction set forth immediately below
the Purchaser’s name on the signature pages hereto. 
 5.9 Public Sale or Distribution. The Purchaser hereby covenants with the
Company not to make any sale of the Shares under the Registration Statement without complying with the provisions of this Agreement and without effectively causing the prospectus delivery requirement under the Securities Act to be satisfied (whether
physically or through compliance with Rule 172 under the Securities Act or any similar rule). The Purchaser acknowledges that there may occasionally be times when the Company must suspend the use of the prospectus (the “Prospectus”)
forming a part of the Registration Statement (a “Suspension”) until such time as an amendment to the Registration Statement has been filed by the Company and declared effective by the Commission, or until such time as the Company has filed
an appropriate report with the Commission pursuant to the Exchange Act. Without the Company’s prior written consent, which consent shall not unreasonably be withheld or delayed, the Purchaser shall not use any written materials to offer the
Shares for resale other than the Prospectus, including any “free 

  

 17 

 
writing prospectus” as defined in Rule 405 under the Securities Act. The Purchaser covenants that it will not sell any Shares pursuant to said
Prospectus during the period commencing at the time when the Company gives the Purchaser written notice of the suspension of the use of said Prospectus and ending at the time when the Company gives the Purchaser written notice that the Purchaser may
thereafter effect sales pursuant to said Prospectus. Notwithstanding the foregoing, the Company agrees that no Suspension shall be for a period of longer than 5 consecutive days, and no Suspension shall be for a period longer than 20 days in the
aggregate in any 365 day period; provided, that each subsequent Suspension must be at least two trading days after the last day of any prior Suspension. The Purchaser further covenants to notify the Company promptly of the sale of all of its Shares.

 5.10 Organization; Validity; Enforcements. The Purchaser further represents and warrants to, and covenants with, the Company that
(i) the Purchaser has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this
Agreement, (ii) the making and performance of this Agreement by the Purchaser and the consummation of the transactions herein contemplated will not violate any provision of the organizational documents of the Purchaser or conflict with, result
in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under any material agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument to which
the Purchaser is a party or, any statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory body, administrative agency or other governmental agency or body applicable to the Purchaser, (iii) no
consent, approval, authorization or other order of any court, regulatory body, administrative agency or other governmental agency or body is required on the part of the Purchaser for the execution and delivery of this Agreement or the consummation
of the transactions contemplated by this Agreement, (iv) upon the execution and delivery of this Agreement, this Agreement shall constitute a legal, valid and binding obligation of the Purchaser, enforceable in accordance with its terms, except
as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to or the enforcement of creditor’s rights and the application of equitable principles relating
to the availability of remedies, and except as rights to indemnity or contribution, including, but not limited to, the indemnification provisions set forth in Section 7.3 of this Agreement, may be limited by federal or state securities laws or
the public policy underlying such laws and (v) there is not in effect any order enjoining or restraining the Purchaser from entering into or engaging in any of the transactions contemplated by this Agreement. 
 5.11 Short Sales. Since the time the Purchaser was first contacted about the offering of the Shares and the transactions contemplated hereby, the
Purchaser has not taken, and prior to the public announcement of the transaction after the Closing the Purchaser shall not take, any action that has caused or will cause the Purchaser to have, directly or indirectly, sold or agreed to sell any
shares of Common Stock, effected any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect to the Common Stock, granted any other right
(including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes, relates to or derived any significant part of its value from the Common Stock. 
  

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 SECTION 6. Survival of Agreements, Representations and Warranties. Notwithstanding any
investigation made by any party to this Agreement or by the Placement Agents, all covenants and agreements made by the Company and the Purchaser herein and in the certificates for the Shares delivered pursuant hereto shall survive the execution of
this Agreement, the delivery to the Purchaser of the Shares being purchased and the payment therefor. All representations and warranties, made by the Company and the Purchaser herein and in the certificates for the Shares delivered pursuant hereto
shall survive the Closing. 
 SECTION 7. Registration of the Shares; Compliance with the Securities Act.  
 7.1 Registration Procedures and Expenses. The Company shall: 
 (a) as soon as practicable, but in no event later than 10 days following the Closing Date (the “Filing Deadline”), prepare and file with the Commission the Registration Statement on Form S-3 relating
to the resale of the Shares by the Purchaser and the Other Purchasers; 
 (b) use its best efforts, subject to receipt of necessary
information from the Purchasers, to cause the Commission to declare the Registration Statement effective within 40 days after the Closing Date in the event that the Registration Statement is not selected for review by the Commission or
(ii) within 75 days after the Closing Date in the event that the Registration Statement is selected for review by the Commission (each of (i) and (ii), the “Effective Deadline”); 
 (c) upon the prior request of a Purchaser, permit a single counsel for the Purchaser to review and comment upon those sections in the Registration
Statement entitled “Selling Stockholders” and “Plan of Distribution” at least two business days prior to the filing of the Registration Statement with the Commission; 
 (d) submit to the Commission, within two business days after the Company learns that no review of the Registration Statement will be made by the staff of
the Commission or that the staff has no further comments to the Registration Statement, as the case may be, a request for acceleration of effectiveness of the Registration Statement to a time and date not later than 48 hours after the submission of
such request; 
 (e) by 9:30 a.m. on the business day following the effectiveness date of the Registration Statement, the Company shall file
with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to the Registration Statement; 
 (f) promptly prepare and file with the Commission such amendments and supplements to the Registration Statement and the prospectus used in connection therewith as may be necessary to keep the Registration Statement
effective until the earliest of (i) two years after the effective date of the Registration Statement, (ii) such time as all of the Shares have been sold pursuant to the Registration Statement, or (iii) such time as the Shares become
eligible for resale by non-affiliates pursuant to Rule 144(k) under the Securities Act or any other rule of similar effect (each of (i), (ii) and (iii), the “Registration Period”); 
 (g) furnish to the Purchaser with respect to the Shares registered under the Registration Statement (and to each underwriter, if any, of such Shares)
such number of copies of prospectuses and such other documents as the Purchaser may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Shares by the Purchaser; 
  

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 (h) file documents required of the Company for normal Blue Sky clearance in states specified in writing
by the Purchaser and in all applicable jurisdictions in the United States and prepare and file in those jurisdictions, such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be necessary
to maintain the effectiveness thereof during the Registration Period; provided, however, that the Company shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so
qualified or has not so consented; 
 (i) bear all expenses in connection with the procedures in paragraphs (a) through (e) of this
Section 7.1 and the registration of the Shares pursuant to the Registration Statement, other than fees and expenses, if any, of counsel or other advisers to the Purchaser or the Other Purchasers or underwriting discounts, brokerage fees and
commissions incurred by the Purchaser or the Other Purchasers, if any in connection with the offering of the Shares pursuant to the Registration Statement; 
 (j) file a Form D with the Commission with respect to the Shares as required under Regulation D; 
 (k) issue
a press release describing the transactions contemplated by this Agreement on or before 9:00 a.m. New York City time on the business day following the execution of this Agreement and all other Agreements and file a related Current Report on Form 8-K
as may be required by the Exchange Act contemporaneously therewith; 
 (l) in order to enable the Purchasers to sell the Shares under Rule
144 to the Securities Act, for a period of two years from Closing, use its commercially reasonable efforts to comply with the requirements of Rule 144, including without limitation, use its commercially reasonable efforts to comply with the
requirements of Rule 144(c) with respect to public information about the Company and to timely file all reports required to be filed by the Company under the Exchange Act; 
 (m) if the Purchaser is required under applicable securities law to be described in the Registration Statement as an underwriter, furnish to such
Purchaser, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as an Purchaser may reasonably request (i) a letter, dated such date, from the Company’s independent certified public
accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the Purchasers, and (ii) an opinion, dated as of such date, of counsel
representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Purchasers; 
 (n) not, and shall cause its Subsidiaries and affiliates not to, identify any Purchaser as an underwriter in any public disclosure or filing with the
Commission or any securities exchange or trading market; 
  

 20 

 (o) notify the Purchaser in writing of the happening of any event, as promptly as practicable after
becoming aware of such event, as a result of which the prospectus included in the Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or and
necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information); 
 (p) notify the Purchaser of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of the
Shares for sale under the securities or “blue sky” laws of any jurisdiction in the United States or its receipt of notice of the initiation or threatening of any proceeding for such purpose; 
 (q) furnish to the Purchaser, without charge, copies of any correspondence from the Commission or the staff of the staff of the Commission to the Company
or its representatives relating to the Registration Statement; and 
 (r) if requested by the a Purchaser, (i) as soon as practicable
incorporate in a prospectus supplement or post-effective amendment such information as the Purchaser reasonably requests to be included therein relating to the sale and distribution of Shares, including, without limitation, information with respect
to the number of Shares being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Shares to be sold in such offering; (ii) as soon as practicable make all required filings of such prospectus
supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) as soon as practicable, supplement or make amendments to the Registration
Statement if reasonably requested by the Purchaser. 
 The Company understands that the Purchaser disclaims being an underwriter, but the
Purchaser being deemed an underwriter shall not relieve the Company of any obligations it has hereunder. A draft of the proposed form of the questionnaire related to the Registration Statement to be completed by the Purchaser is attached hereto as
Appendix I. 
 7.2 Transfer of Shares After Registration. The Purchaser agrees that it will not effect any disposition of the
Shares or its right to purchase the Shares that would constitute a sale within the meaning of the Securities Act or pursuant to any applicable state securities laws, except as contemplated in the Registration Statement referred to in
Section 7.1 or as otherwise permitted by law, and that it will promptly notify the Company of any changes in the information set forth in the Registration Statement regarding the Purchaser or its plan of distribution. 
 7.3 Indemnification. For the purpose of this Section 7.3: 
 (i) the term “Purchaser/Affiliate” shall mean any affiliate of the Purchaser, including a transferee who is an affiliate of the Purchaser, and any person who controls the Purchaser or any affiliate of
the Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act; and 
  

 21 

 (ii) the term “Registration Statement” shall include any preliminary prospectus, final
prospectus, free writing prospectus, exhibit, supplement or amendment included in or relating to, and any document incorporated by reference in, the Registration Statement referred to in Section 7.1. 
 (a) The Company agrees to indemnify and hold harmless the Purchaser and each Purchaser/Affiliate, against any losses, claims, damages, liabilities or
expenses, joint or several, to which the Purchaser or Purchaser/Affiliates may become subject, under the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise (including in
settlement of any litigation, if such settlement is effected with the written consent of the Company), insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof as contemplated below) arise out of or are based
upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, including the Prospectus, financial statements and schedules, and all other documents filed as a part thereof, as amended at the time
of effectiveness of the Registration Statement, including any information deemed to be a part thereof as of the time of effectiveness pursuant to paragraph (b) of Rule 430A, or pursuant to Rules 430B, 430C or 434, of the 1933 Rules and
Regulations, or the Prospectus, in the form first filed with the Commission pursuant to Rule 424(b) of the Regulations, or filed as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing is required or any amendment
or supplement thereto, or arise out of or are based upon the omission or alleged omission to state in any of them a material fact required to be stated therein or necessary to make the statements in the Registration Statement or any amendment or
supplement thereto not misleading or in the Prospectus or any amendment or supplement thereto not misleading in light of the circumstances under which they were made, or arise out of or are based in whole or in part on any inaccuracy in the
representations or warranties of the Company contained in this Agreement, or any failure of the Company to perform its obligations hereunder or under law, and will promptly reimburse the Purchaser and each Purchaser/Affiliate for any legal and other
expenses as such expenses are reasonably incurred by the Purchaser or such Purchaser/Affiliate in connection with investigating, defending or preparing to defend, settling, compromising or paying any such loss, claim, damage, liability, expense or
action; provided, however, that the Company will not be liable for amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company, which consent shall
not be unreasonably withheld, and the Company will not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon (i) an untrue statement or alleged untrue statement or
omission or alleged omission made in the Registration Statement, the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Purchaser expressly
for use therein, or (ii) the failure of the Purchaser to comply with the covenants and agreements contained herein, or (iii) the inaccuracy of any representation or warranty made by 

  

 22 

 
the Purchaser herein or (iv) any statement or omission in any Prospectus that is corrected in any subsequent Prospectus that was delivered to the
Purchaser prior to the pertinent sale or sales by the Purchaser. 
 (b) The Purchaser and each Other Purchaser will severally, but not
jointly, indemnify and hold harmless the Company, each of its directors, each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act, against any losses, claims, damages, liabilities or expenses to which the Company, each of its directors, each of its officers who signed the Registration Statement or controlling person may become subject, under
the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, but only if such settlement is effected with the written consent of the
Purchaser) insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof as contemplated below) arise out of or are based upon any untrue or alleged untrue statement of any material fact contained in the
Registration Statement, the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements in
the Registration Statement or any amendment or supplement thereto not misleading or in the Prospectus or any amendment or supplement thereto not misleading in the light of the circumstances under which they were made, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, the Prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with
written information furnished to the Company by or on behalf of the Purchaser expressly for use therein; and will reimburse the Company, each of its directors, each of its officers who signed the Registration Statement or controlling person for any
legal and other expense reasonably incurred by the Company, each of its directors, each of its officers who signed the Registration Statement or controlling person in connection with investigating, defending, settling, compromising or paying any
such loss, claim, damage, liability, expense or action; provided, however, that the Purchaser’s aggregate liability under this Section 7 shall not exceed the amount of net proceeds received by the Purchaser on the sale of the Shares
pursuant to the Registration Statement. 
 (c) Promptly after receipt by an indemnified party under this Section 7.3 of notice of the
threat or commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 7.3 promptly notify the indemnifying party in writing thereof, but the omission to
notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party for contribution or otherwise under the indemnity agreement contained in this Section 7.3 to the extent it is not prejudiced as a
result of such failure. In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in, and, to the
extent that it may wish, jointly with all other indemnifying parties similarly notified, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such
action include both the indemnified party, and the indemnifying party and the indemnified party shall have reasonably concluded, based on an opinion of counsel reasonably satisfactory to the indemnifying party, that there may be a conflict 

  

 23 

 
of interest between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal
defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal
defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of its election to assume the defense of such action and
approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 7.3 for any legal or other expenses subsequently incurred by such indemnified party in connection with the
defense thereof unless (i) the indemnified party shall have employed such counsel in connection with the assumption of legal defenses in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying
party shall not be liable for the expenses of more than one separate counsel, reasonably satisfactory to such indemnifying party, representing all of the indemnified parties who are parties to such action) or (ii) the indemnifying party shall
not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of action, in each of which cases the reasonable fees and expenses of counsel shall
be at the expense of the indemnifying party. In no event shall any indemnifying party be liable in respect of any amounts paid in settlement of any action unless the indemnifying party shall have approved in writing the terms of such settlement;
provided that such consent shall not be unreasonably withheld or delayed. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of
which any indemnified party is or could have been a party and indemnification could have been sought hereunder by such indemnified party from all liability on claims that are the subject matter of such proceeding. 
 (d) If the indemnification provided for in this Section 7.3 is required by its terms but is for any reason held to be unavailable to or otherwise
insufficient to hold harmless an indemnified party under paragraphs (a), (b) or (c) of this Section 7.3 in respect to any losses, claims, damages, liabilities or expenses referred to herein, then each applicable indemnifying party
shall contribute to the amount paid or payable by such indemnified party as a result of any losses, claims, damages, liabilities or expenses referred to herein (i) in such proportion as is appropriate to reflect the relative benefits received
by the Company and the Purchaser from the private placement of Common Stock hereunder or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but the relative fault of the Company and the Purchaser in connection with the statements or omissions or inaccuracies in the representations and warranties in this Agreement and/or the
Registration Statement that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Purchaser on the other shall
be deemed to be in the same proportion as the amount paid by the Purchaser to the Company pursuant to this Agreement for the Shares purchased by the Purchaser that were sold pursuant to the Registration Statement bears to the difference (the
“Difference”) between the amount the Purchaser paid for the Shares that were sold pursuant to the Registration Statement and the amount received by the Purchaser from such sale. The relative fault of the Company on the one hand and
the Purchaser on the other shall be determined by reference to, among other things, whether the untrue or alleged statement of a 

  

 24 

 
material fact or the omission or alleged omission to state a material fact or the inaccurate or the alleged inaccurate representation and/or warranty relates
to information supplied by the Company or by the Purchaser and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount paid or payable by a party as a result of
the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in paragraph (c) of this Section 7.3, any legal or other fees or expenses reasonably incurred by such
party in connection with investigating or defending any action or claim. The provisions set forth in paragraph (c) of this Section 7.3 with respect to the notice of the threat or commencement of any threat or action shall apply if a claim
for contribution is to be made under this paragraph (d); provided, however, that no additional notice shall be required with respect to any threat or action for which notice has been given under paragraph (c) for purposes of
indemnification. The Company and the Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 7.3 were determined solely by pro rata allocation (even if the Purchaser were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this paragraph. Notwithstanding the provisions of this Section 7.3, the Purchaser shall not be required to contribute any
amount in excess of the amount by which the Difference exceeds the amount of any damages that the Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Purchasers’ obligations to contribute
pursuant to this Section 7.3 are several and not joint. 
 7.4 Termination of Conditions and Obligations. The restrictions
imposed by Section 5.9 or Section 7.2 upon the transferability of the Shares shall cease and terminate as to any particular number of the Shares upon the earlier of (i) the passage of two years from the effective date of the
Registration Statement covering such Shares and (ii) at such time as an opinion of counsel satisfactory in form and substance to the Company shall have been rendered to the effect that such conditions are not necessary in order to comply with
the Securities Act. 
 7.5 Information Available. The Company, upon the reasonable request of the Purchaser, shall make available for
inspection by each Purchaser, any underwriter participating in any disposition pursuant to the Registration Statement and any attorney, accountant or other agent retained by the Purchaser or any such underwriter, all financial and other records,
pertinent corporate documents and properties of the Company, and cause the Company’s officers, employees and independent accountants to supply all information reasonably requested by the Purchaser or any such underwriter, attorney, accountant
or agent in connection with the Registration Statement. 
 7.6 Delay in Filing or Effectiveness of Registration Statement If the
Registration Statement is not filed by the Company with the Commission on or prior to the Filing Deadline, then for each day following the Filing Deadline, until but excluding the date the Registration Statement is filed, or if the Registration
Statement is not declared effective by the Commission by the Effective Deadline, then for each day following the Effective Deadline, until but excluding the date the Commission declares the Registration Statement effective, the 

  

 25 

 
Company shall, for each such day, pay the Purchaser with respect to any such failure, as liquidated damages and not as a penalty, an amount per 30-day period
equal to 1.0% of the purchase price paid by such Purchaser for its Shares pursuant to this Agreement (pro rata on a 30 day basis); and for any such 30-day period, such payment shall be made no later than three business days following such 30-day
period. If the Purchaser shall be prohibited from selling Shares under the Registration Statement as a result of a Suspension of more than 5 consecutive days or Suspensions of more than an aggregate of 20 days in any 365-day period (provided, that
each subsequent Suspension must be at least two trading days after the last day of any prior Suspension), then for each day on which a Suspension is in effect that exceeds the maximum allowed period for a Suspension or Suspensions, but not including
any day on which a Suspension is lifted, the Company shall pay the Purchaser, as liquidated damages and not as a penalty, an amount per 30-day period equal to 1.0% of the purchase price paid by such Purchaser for its Shares pursuant to this
Agreement for each such day (pro rata on a 30 day basis), and such payment shall be made no later than the first business day of the calendar month next succeeding the month in which such day occurs. For purposes of this Section 7.6, a
Suspension shall be deemed lifted on the date that notice that the Suspension has been lifted is delivered to the Purchaser pursuant to Section 5.9 of this Agreement. Any payments made pursuant to this Section 7.6 shall not constitute the
Purchaser’s exclusive remedy for such events. Notwithstanding the foregoing provisions, in no event shall the Company be obligated to pay any liquidated damages pursuant to this Section 7.6 to more than one Purchaser in respect of the same
Shares for the same period of time. Such payments shall be made to the Purchasers in cash. In the event the Company fails to make payments pursuant to this Section 7.6 in a timely manner, such payments shall bear interest at the rate of
1.0% per month (pro rata on a 30 day basis) until paid in full. 
 7.7 Questionnaires. The Purchaser agrees to furnish to the
Company a completed questionnaire in the form attached hereto as Appendix I at the Closing for use in preparation of the Registration Statement contemplated in Section 7.1. The Company shall not be required to include the Shares of the
Purchaser in the Registration Statement and shall not be required to pay a cash payment to such Purchaser pursuant to Section 7.6 so long as the Purchaser fails to furnish a fully completed questionnaire at the Closing or does not respond to
subsequent written requests for information by the Company within two business days of such requests. 
 SECTION 8. Broker’s Fee.
The Purchaser acknowledges that the Company intends to pay to the Placement Agents a fee in respect of the sale of the Shares to the Purchaser. The Purchaser and the Company agree that the Purchaser shall not be responsible for such fee and that the
Company will indemnify and hold harmless the Purchaser and each Purchaser/Affiliate against any losses, claims, damages, liabilities or expenses, joint or several, to which such Purchaser or Purchaser/Affiliate may become subject with respect to
such fee. Each of the parties hereto represents that, on the basis of any actions and agreements by it, there are no other brokers or finders entitled to compensation in connection with the sale of the Shares to the Purchaser. 
 SECTION 9. Independent Nature of Purchasers’ Obligations and Rights. The obligations of the Purchaser under this Agreement are several and
not joint with the obligations of any Other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any Other Purchaser under the Agreements. The decision of each Purchaser to purchase the Shares
pursuant to the Agreements has been made by such 

  

 26 

 
Purchaser independently of any Other Purchaser. Nothing contained in the Agreements, and no action taken by any Purchaser pursuant thereto, shall be deemed
to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the
transactions contemplated by the Agreements. Each Purchaser acknowledges that no other Purchaser has acted as agent for such Purchaser in connection with making its investment hereunder and that no Purchaser will be acting as agent of such Purchaser
in connection with monitoring its investment in the Shares or enforcing its rights under this Agreement. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this
Agreement, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. 
 SECTION 10. Notices. All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed by first-class registered or certified airmail, e-mail, confirmed facsimile or nationally recognized
overnight express courier postage prepaid, and shall be deemed given when so mailed and shall be delivered as addressed as follows: 
 if to
the Company, to: 
 ISTA Pharmaceuticals, Inc. 
 15295 Alton Parkway, 
 Irvine, California 92618 
 Attention: Vicente Anido 
 Facsimile:
949-789-7744 
 E-mail: vanido@istavsion.com 
 with a copy to: 
 Stradling Yocca Carlson & Rauth 
 660 Newport Center Drive, Suite 1600 
 Newport
Beach, California 92660 
 Attention: Robert C. Funsten 
 Facsimile: (949) 725-4100 
 E-mail: rfunsten@sycr.com 
 or to such other person at such other place as the Company shall designate to the Purchaser in writing; and 
 if to the Purchaser, at its address as set forth at the end of this Agreement, or at such other address or addresses as may have been
furnished to the Company in writing, with a copy (for informational purposes only) to: 
 Schulte Roth & Zabel LLP 
 919 Third Avenue 
 New York, New
York 10022 
 Attention: Eleazer Klein, Esq. 
 Telephone: (212) 756-2000 
 Facsimile: (212) 593-5955
  

 27 

 SECTION 11. Changes. This Agreement may not be modified or amended except pursuant to an
instrument in writing signed by the Company and the Purchaser. Any amendment or waiver effected in accordance with this Section 11 shall be binding upon each holder of any securities purchased under this Agreement at the time outstanding, each
future holder of all such securities, and the Company. 
 SECTION 12. Headings. The headings of the various sections of this Agreement
have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement. 
 SECTION 13.
Severability. In case any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be
affected or impaired thereby. 
 SECTION 14. Governing Law; Venue. This Agreement is to be construed in accordance with and governed
by the federal law of the United States of America and the internal laws of the State of New York without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the
State of New York to the rights and duties of the parties. Each of the Company and the Purchaser submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State court
sitting in New York City for purposes of all legal proceedings arising out of or relating to this Agreement and the transactions contemplated hereby. Each of the Company and the Purchaser irrevocably waives, to the fullest extent permitted by law,
any objection that it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum. 
 SECTION 15. Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which, when taken
together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties. Facsimile signatures shall be deemed original signatures. 

SECTION 16. Entire Agreement. This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect
to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters. Each party expressly
represents and warrants that it is not relying on any oral or written representations, warranties, covenants or agreements outside of this Agreement. 
 SECTION 17. Fees and Expenses. Except as set forth herein, each of the Company and the Purchaser shall pay its respective fees and expenses related to the transactions contemplated by this Agreement; provided,
however, that the Company shall reimburse HBK Master Fund L.P. (“HBK”) or its designee(s) for all reasonable legal fees and disbursements in connection with the documentation and implementation of the transactions contemplated hereby, in
an amount not to exceed $20,000, which amount shall be non accountable and withheld by HBK from its purchase price at the Closing. 
  

 28 

 SECTION 18. Parties. This Agreement is made solely for the benefit of and is binding upon the
Purchaser and the Company and to the extent provided in Section 7.3, any person controlling the Company or the Purchaser, the officers and directors of the Company, and their respective executors, administrators, successors and assigns and
subject to the provisions of Section 7.3, no other person shall acquire or have any right under or by virtue of this Agreement. The term “successor and assigns” shall not include any subsequent purchaser, as such purchaser, of the
Shares sold to the Purchaser pursuant to this Agreement. 
 SECTION 19. Further Assurances. Each party agrees to cooperate fully with
the other parties and to execute such further instruments, documents and agreements and to give such further written assurance as may be reasonably requested by any other party to evidence and reflect the transactions described herein and
contemplated hereby and to carry into effect the intents and purposes of this Agreement. 
 [Remainder of Page Left Intentionally Blank]

  

 29 

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

			
	ISTA PHARMACEUTICALS, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

					
		  	 Print or Type:
	  	

  

	
	  

	 Name of Purchaser
 (Individual or
Institution)

	
	  

	Jurisdiction of Purchaser’s Executive Offices
	
	  

	Name of Individual representing Purchaser (if an Institution)
	
	  

	Title of Individual representing Purchaser (if an Institution)

  

					
		  	 Signature by:
	  	

  

			
	 Individual Purchaser or Individual
 representing Purchaser:

	
	  

		
	 Address:
	 	  

		
	 Telephone:
	 	  

		
	 Facsimile:
	 	  

		
	 E-mail:
	 	  

 Signature Page 

 EXHIBIT A 
  

			
	 Name of Subsidiary
	  	 State or Other Jurisdiction of
 Incorporation/Organization

	Visionex Pty. Ltd.	  	Singapore
	ISTA Pharma, Ltd.	  	United Kingdom

 EXHIBIT B 

 SCHEDULE I 
 CAPITALIZATION 
 Outstanding as of June 22, 2007: 
  

			
	 Securities
	  	Number
	 Common Stock
	  	26,649,515
	 Options
	  	4,887,725
	 Warrants
	  	951,152
	 Convertible Notes
	  	5,161,296
		  	 
		  	37,649,688

 APPENDIX I 
  

 34Note Purchase Agreement, dated as of June 22, 2007

 Exhibit 10.1 
 EXECUTION COPY 
 NOTE PURCHASE AGREEMENT 
 dated as of 
 June 22, 2007 
 among 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION, 
 as Seller 
 LIBERTY STREET FUNDING LLC, 
 as the Conduit Investor 
 THE BANK OF NOVA SCOTIA, 
 as Agent for the Investors 
 and 
 NAVISTAR FINANCIAL CORPORATION,

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

 TABLE OF CONTENTS 
  

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

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

							
	 	 	 	  	Page
			
	    SECTION 7.02.	 	Delegation of Duties	  	21
			
	    SECTION 7.03.	 	Liability of Agent	  	21
			
	    SECTION 7.04.	 	Reliance by Agent	  	21
			
	    SECTION 7.05.	 	Notice of Event of Default	  	22
			
	    SECTION 7.06.	 	Credit Decision; Disclosure of Information by the Agent	  	22
			
	    SECTION 7.07.	 	Indemnification of the Agent	  	23
			
	    SECTION 7.08.	 	Agent in Individual Capacity	  	23
			
	    SECTION 7.09.	 	Resignation of Agent	  	24
			
	    SECTION 7.10.	 	Payments by the Agent	  	24
			
	ARTICLE VIII	 	Miscellaneous	  	24
			
	    SECTION 8.01.	 	Assignment	  	24
			
	    SECTION 8.02.	 	Notices	  	25
			
	    SECTION 8.03.	 	Waivers; Amendments	  	26
			
	    SECTION 8.04.	 	Survival	  	27
			
	    SECTION 8.05.	 	Counterparts; Integration; Effectiveness	  	27
			
	    SECTION 8.06.	 	Severability	  	27
			
	    SECTION 8.07.	 	Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial Right	  	27
			
	    SECTION 8.08.	 	No Bankruptcy Petition Against the Conduit Investor	  	27
			
	    SECTION 8.09.	 	Benefits of Indenture	  	28
			
	    SECTION 8.10.	 	Headings	  	28
			
	    SECTION 8.11.	 	No Recourse Against Conduit Investor, Members, Officers or Directors	  	28
			
	    SECTION 8.12.	 	Waiver of Confidentiality	  	28
			
	    SECTION 8.13.	 	Confidentiality Agreement	  	29
			
	    SECTION 8.14.	 	Excess Funds	  	29
				
	EXHIBITS	 		 		  	
			
	Exhibit A -	 	Documents to be Delivered to the Agent on or before the Closing Date	  	

  

 -ii- 

 NOTE PURCHASE AGREEMENT dated as of June 22, 2007 (as amended, supplemented or otherwise modified
from time to time, the “Agreement”), among: 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION, a Delaware corporation, as
Seller (the “Seller”); 
 LIBERTY STREET FUNDING LLC a Delaware limited liability company, as initial Conduit Investor (as
defined below); 
 THE BANK OF NOVA SCOTIA, a Canadian chartered bank acting through its New York Agency (“BNS”), as Agent
for the Investors; and 
 NAVISTAR FINANCIAL CORPORATION, a Delaware corporation, individually (“NFC”) and as Servicer
(together with its successors and assigns, the “Servicer”). 
 RECITALS 
 WHEREAS, the Trust and the Indenture Trustee are party to an Indenture dated as of June 22, 2007 (as amended, restated, supplemented or otherwise
modified from time to time, the “Indenture”), pursuant to which the Seller has authorized the issuance of the Series 2007-BNS Floating Rate Asset Backed Note (the “Note”); and 
 WHEREAS, on the Closing Date, the Seller intends to sell the Purchased Note to the Agent for the benefit of the Conduit Investor and the other Investors
and the Conduit Investor and the other Investors desire to acquire the Purchased Note. 
 Accordingly, the parties hereto agree as follows:

 ARTICLE I 
 Definitions

 SECTION 1.01. Defined Terms. Terms used herein but not otherwise defined herein have the respective meanings given to such
terms in Part I of Appendix A to the Pooling Agreement, dated as of June 22, 2007, between NFRRC (as defined below) and the Issuer, as amended, restated, supplemented or otherwise modified from time to time. As used in this Agreement, the
following terms have the meanings specified below: 
 “Agent” means BNS in its capacity as agent for the Investors, and its
successors and assigns appointed pursuant to Section 7.09. 
 “Agent-Related Person” means the Agent, together with its
Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such Persons and their respective Affiliates. 
 “Agreement” is defined in the preamble . 

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

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 “Commercial Paper” means short-term promissory notes issued or to be issued by the
Conduit Investor to fund its investments in accounts receivable or other financial assets. 
 “Commission” is defined in
Section 3.01(c). 
 “Conduit Assignee” means any commercial paper conduit administered by BNS or any of its
Affiliates and designated by BNS from time to time to accept an assignment from the Conduit Investor of all or a portion of its rights and obligations hereunder. 
 “Conduit Investor” means, initially, Liberty Street Funding LLC, together with its successors and assigns, including any of its Conduit Assignees. A “Conduit Investor” may include one or
more commercial paper conduits as long as such commercial paper conduits are either (i) Affiliates of one another or (ii) administered by the same Person or its Affiliates. If a “Conduit Investor” consists of more than one
commercial paper conduit, each such commercial paper conduit will have the rights and obligations with respect to the Note as may be determined between them from time to time. 
 “Corporate Base Rate” means, for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate for such
day, plus 0.50% and (b) the rate of interest in effect for such day as publicly announced from time to time by the Agent as its “prime rate”. The “prime rate” is a rate set by the Agent based upon various factors
including the Agent’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in the prime rate
announced by the Agent shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Corporate Services Provider” is defined in Section 8.11. 
 “CP Rate” for any Fixed
Period for any Funding Tranche means, to the extent the Conduit Investor funds such Funding Tranche for such Fixed Period by issuing Commercial Paper, the per annum rate equivalent to the “weighted average cost” (as defined below) related
to the issuance of Commercial Paper that are allocated, in whole or in part, by the Conduit Investor or the Agent to fund or maintain such Funding Tranche (and which may also be allocated in part to the funding of other Funding Tranches hereunder or
of other assets of the Conduit Investor); provided, however, that if any component of such rate is a discount rate, in calculating the “CP Rate” for such Funding Tranche for such Fixed Period, the Conduit Investor
shall for such component use the rate resulting from converting such discount rate to an interest bearing equivalent rate per annum. As used in this definition, a Conduit Investor’s “weighted average cost” shall consist of
(w) the actual interest rate (or discount) paid to purchasers of the Conduit Investor’s Commercial Paper, together with the commissions of placement agents and dealers in respect of such Commercial Paper, to the extent such commissions are
allocated, in whole or in part, to such Commercial Paper by the Conduit Investor or the Agent, (x) certain documentation and transaction costs associated with the issuance of such Commercial Paper, (y) any incremental carrying costs
incurred with respect to Commercial Paper maturing on dates other than those on which corresponding funds are received by the Conduit Investor, and (z) other borrowings by the Conduit Investor (other than under any Program Support Agreement),
including borrowings to fund small or odd dollar amounts that are not easily accommodated in the commercial paper market. 
  

 3 

 “Day Count Fraction” means, as to any Funding Tranche for any Fixed Period, a fraction
(a) the numerator of which is the number of days in such Fixed Period and (b) the denominator of which is 360 (or, with respect to any Funding Tranche which accrues interest by reference to the Corporate Base Rate, the actual number of
days in the related calendar year). 
 “Distribution Period” means, initially, the period from, and including, the Closing
Date to, but excluding, the first Distribution Date and thereafter the period from, and including, each Distribution Date to, but excluding, the next Distribution Date. 
 “Distribution Date” is defined in the Indenture. 
 “Eurodollar Rate”
means, for any Fixed Period, an interest rate per annum (rounded upward to the nearest 1/1000th of 1%) determined pursuant to the following formula: 
  

															
	 Eurodollar Rate =
	 		 		 		 		 	 LIBOR
	 		 	
		 		 		 		 		 	1.00 - Eurodollar Reserve Percentage	 		 	

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

 4 

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

  

 5 

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

 6 

 “Indemnified Amounts” has the meaning specified in Section 6.01. 

“Indemnified Parties” has the meaning specified in Section 6.01. 
 “Indenture” is defined in the first paragraph of the recitals . 
 “Indenture Trustee” is defined in the Indenture. 
 “Initial Invested Amount” means $392,661,908.44. 
 “Investors” means the
Conduit Investor and/or the Program Support Providers, as the context may require. 
 “Issuer” or “Trust”
means Navistar Financial 2007-BNS Owner Trust, a Delaware statutory trust. 
 “Material Adverse Effect” means a material
adverse effect on (i) the business, results of operations or financial condition or the material properties or assets of NFC or NFRRC, (ii) the ability of NFC or NFRRC to perform its obligations hereunder or under any other Transaction
Document or (iii) the interests of the Agent or any Investor hereunder. 
 “Moody’s” means Moody’s Investors
Service, Inc., or any successor that is a nationally recognized statistical rating organization. 
 “NFC” is defined in the
preamble. 
 “NFRRC” means Navistar Financial Retail Receivables Corporation, a Delaware corporation, and its
successors and permitted assigns. 
 “Note” is defined in the first paragraph of the recitals. 
 “Noteholders’ Interest Distributable Amount” means, with respect to any Distribution Date, the sum of: 
 (A) the sum of (i) the summation of the amount of interest accrued during the related Monthly Period on each Funding Tranche funded at the CP Rate,
determined by multiplying (a) the applicable Funding Rate times (b) the Weighted Average Funded Amount for such Funding Tranche times (c) the applicable Day Count Fraction for which interest accrued at such rate and
(ii) any Noteholders’ Interest Distributable Amount calculated in accordance with clause (A)(i) above due but not paid with respect to the prior Monthly Period, plus interest on such unpaid amount calculated as the product of (x) the
weighted average Funding Rate for all Funding Tranches funded at the CP Rate during the most recent Monthly Period, times (y) the amount of such unpaid Noteholders’ Interest Distributable Amount, times (z) the quotient of the
number of days in the related Monthly Period divided by 360, 
  

 7 

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

 (C) on any Distribution Date on which the Funded Amount is reduced to zero and on the Final Scheduled Termination Date, any amounts which
accrue in clause (A) above (together with all fees which accrue pursuant to paragraph 1 of the Fee Letter) from (and excluding) the last day of the related Monthly Period through (and including) such Distribution Date. 
 “Note Interest” means, with respect to any Investor at any time, the undivided interest in the Note owned by such Investor at such time.

 “Other Obligations” means the fees under the Fee Letter and any other amounts payable to the Agent or any Investor under
or in connection with this Agreement or any other Transaction Document (other than principal or interest in respect of the Notes), including, without limitation, all Breakage Payments and all amounts payable from time to time pursuant to Article
VI. 
 “Program Support Agreement” means and includes any agreement entered into by any Program Support Provider
providing for the issuance of one or more letters of credit for the account of the Conduit Investor, the issuance of one or more surety bonds for which the Conduit Investor is obligated to reimburse the applicable Program Support Provider for any
drawings thereunder, the sale by the Conduit Investor to any Program Support Provider of the Purchased Notes (or portions thereof or participations therein) and/or the making of loans and/or other extensions of credit to the Conduit Investor in
connection with the Conduit Investor’s commercial paper program, together with any letter of credit, surety bond or other instrument issued thereunder, whether any of the foregoing is for the purpose of providing credit support or liquidity to
the Conduit Investor. 
 “Program Support Provider” means and includes any Person now or hereafter extending credit or
having a commitment to extend credit to or for the account of, or to make purchases from, the Conduit Investor or issuing a letter of credit, surety bond or other instrument to support any obligations arising under or in connection with the Conduit
Investor’s commercial paper program. 
  

 8 

 “Purchased Note” means the Note, in the maximum aggregate principal amount of
$392,661,908.44 to be issued to the Agent (or its nominee) on behalf of the Investors pursuant to the Indenture and Section 2.01 hereof. 
 “Recipient” has the meaning specified in Section 2.04. 
 “Seller” is defined in the preamble. 
 “Servicer” is defined in the preamble.

 “Standard & Poor’s” or “S&P” means Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc., or any successor that is a nationally recognized statistical rating organization. 
 “Transaction
Documents” means the “Basic Documents” as defined in Part I of Appendix A to the Pooling Agreement. 
 “Weighted
Average Funded Amount” means, with respect to any Funding Tranche for any Fixed Period, the quotient of (i) the summation of the portion of the Funded Amount allocated to such Funding Tranche determined as of each day in such Fixed
Period, divided by (ii) the number of days in such Fixed Period. 
 SECTION 1.02. Terms Generally. All terms defined directly or
by incorporation herein shall have the defined meanings when used in any certificate or other document delivered pursuant hereto unless otherwise defined therein. For purposes of this Agreement and all such certificates and other documents, unless
the context otherwise requires: (a) accounting terms not otherwise defined herein, and accounting terms partly defined herein to the extent not defined, shall have the respective meanings given to them under, and shall be construed in
accordance with, generally accepted accounting principles in effect in the United States from time to time; (b) terms used in Article 9 of the applicable UCC as in effect from time to time, and not specifically defined herein, are used herein
as defined in such Article 9; (c) references to any amount as on deposit or outstanding on any particular date means such amount at the close of business on such day; (d) the words “hereof,” “herein” and
“hereunder” and words of similar import refer to this Agreement (or the certificate or other document in which they are used) as a whole and not to any particular provision of this Agreement (or such certificate or document);
(e) references to any Article, Section, Schedule or Exhibit are references to Articles, Sections, Schedules and Exhibits in or to this Agreement (or the certificate or other document in which the reference is made) and references to any
paragraph, subsection, clause or other subdivision within any Section or definition refer to such paragraph, subsection, clause or other subdivision of such Section or definition; (f) the term “including” means “including without
limitation”; (g) references to any law refer to that law as amended from time to time and include any successor law; (h) references to any agreement refer to that agreement as from time to time amended or supplemented or as the terms
of such agreement are waived or modified in accordance with its terms; (i) references to any Person include that Person’s successors and permitted assigns; and (j) headings are for purposes of reference only and shall not otherwise
affect the meaning or interpretation of any provision hereof. 
 SECTION 1.03. Computation of Time Periods. Unless otherwise stated in
this Agreement, in the computation of a period of time from a specified date to a later specified 

  

 9 

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

 10 

 (b) If (i) any distribution of principal is made with respect to any Funding Tranche with a Fixed
Period and a fixed interest rate other than on a Distribution Date and (ii) as a consequence of such distribution the interest paid by an Investor to providers of funds to it to fund that Funding Tranche exceeds returns earned by such Investor
with respect to such Funding Tranche, factoring in actual returns earned during the Fixed Period and assuming redeployment of such funds in highly rated short-term money market instruments from the date of principal distribution through the end of
the Fixed Period, then, upon written notice (including a detailed calculation of such Breakage Payment) from the Agent to the Servicer, such Investor shall be entitled to receive additional amounts in the amount of such excess (each, a
“Breakage Payment”) on the date of such distribution, so long as such written notice is received not later than noon, New York City time, on the first Business Day immediately preceding such distribution. 
 (c) On each date the principal amount of the Purchased Note is reduced, a duly authorized officer, employee or agent of the Agent (or its nominee) shall
make appropriate notations in its books and records of the applicable rates of interest and the amount of each such reduction, as applicable. Each of the Servicer, the Seller and each Investor authorizes each duly authorized officer, employee and
agent of the Agent (or its nominee) to make such notations on the books and records as aforesaid and such notation made in accordance with the foregoing authority shall be binding on the Servicer, the Seller and each Investor absent manifest error.

 (d) Whenever any amount is paid pursuant to the Indenture to the Agent in connection with the Purchased Note, the Agent shall promptly
allocate such amounts among the applicable Investors and pay, or cause to be paid, out of such funds received by it, to each applicable Investor, its applicable share of such amount; provided, that if any such amount paid to the Agent is
insufficient to pay the amount due to each Investor in respect of such amounts, the Agent shall distribute the amount it has received to each Investor pro rata based on the amounts owed to each Investor and forthwith report the amount of such
deficiency to the Seller, the Indenture Trustee and the Servicer. 
 SECTION 2.04. Sharing of Payments, Etc. If any Investor (for
purposes of this Section only, being a “Recipient”) shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of any Note Interest owned by it in excess of its
ratable share of payments on account of the applicable Funded Amount obtained by the Investors entitled thereto, such Recipient shall forthwith purchase from the Investors entitled to a share of such amount participations in the applicable Note
Interests owned by such Persons as shall be necessary to cause such Recipient to share the excess payment ratably with each such other Person entitled thereto; provided, that if all or any portion of such excess payment is thereafter
recovered from such Recipient, such purchase from each such other Person shall be rescinded and each such other Person shall repay to the Recipient the purchase price paid by such Recipient for such participation to the extent of such recovery,
together with an amount equal to such other Person’s ratable share (according to the proportion of (a) the amount of such other Person’s required payment to (b) the total amount so recovered from the Recipient) of any interest or
other amount paid or payable by the Recipient in respect of the total amount so recovered. 
  

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 ARTICLE III 
 Representations and Warranties 
 SECTION 3.01. Representation and Warranties. 
 (a) The Seller hereby makes the following representations and warranties to the Agent and the Investors as of the Closing Date and the Investors and the
Agent shall be deemed to have relied on such representations and warranties in purchasing the Purchased Note on the Closing Date: 
 (i) the
Seller repeats and reaffirms that the representations and warranties of the Seller set forth in Section 3.01 of the Pooling Agreement and represents and warrants that such representations and warranties are true and correct; 
 (ii) each of the Transaction Documents executed by the Seller has been duly authorized, executed and delivered by the Seller, and is the valid and
legally binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (iii) the Purchased Note has been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the Indenture, and
delivered to and paid for in accordance with this Agreement, will be duly and validly issued and outstanding and will be entitled to the benefits of the Indenture, except that the enforcement thereof may be subject to (x) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may
be brought; 
 (iv) there is no pending or, to the Seller’s knowledge, threatened action, suit or proceeding by or against the Seller
before any Governmental Authority or any arbitrator (w) asserting the invalidity of this Agreement, any other Transaction Document or the Purchased Note, (x) seeking to prevent the issuance of the Purchased Note or the consummation of any
of the transactions contemplated by this Agreement or any other Transaction Document, (y) that might materially and adversely affect the performance by the Seller or the Trust of its obligations under, or the validity or enforceability of, this
Agreement, any other Transaction Document or the Purchased Note or (z) that if determined adversely as to the Seller or the Trust would have a Material Adverse Effect; 
 (v) except for those caused by the failure of NFC and its affiliates to deliver its financial statements and related financial information for the fiscal
years ended October 31, 2005 and October 31, 2006, or for the fiscal quarters ended January 31, April 30 and July 31 of 2006, or for the fiscal quarters ended January 31, April 30 and July 31 of
2007, in each case, prior to the earliest of (1) October 31, 2007, (2) five (5) Business Days after the filing thereof with the Commission and (3) the date on which such financial statements are (or any of them is) 

  

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

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

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 (vi) except for those caused by the failure of NFC and its affiliates to deliver its financial statements
and related financial information for the fiscal years ended October 31, 2005 and October 31, 2006, or for the fiscal quarters ended January 31, April 30 and July 31 of 2006, or for the fiscal quarters ended
January 31, April 30 and July 31 of 2007, in each case, prior to the earliest of (1) October 31, 2007, (2) five (5) Business Days after the filing thereof with the Commission and (3) the date on which
such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, NFC (x) is not in violation of its Certificate of Incorporation or By-Laws and (y) is not in breach or violation of any of the
terms or provisions of, or with the giving of notice or lapse of time, or both, would be in default under, any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement, or other agreement or instrument to
which NFC is a party or by which it may be bound or to which any of its properties or assets may be subject, except for such violations or defaults that would not have a Material Adverse Effect; 
 (vii) any taxes, fees and other charges of Governmental Authorities applicable to NFC in connection with the execution, delivery and performance by NFC
of the Transaction Documents or otherwise applicable to NFC in connection with the Trust have been paid or will be paid by NFC at or prior to the Closing Date to the extent then due, except for any such failures to pay which, individually and in the
aggregate, would not have a Material Adverse Effect; 
 (viii) the Trust has been duly created and is validly existing under the laws of the
State of Delaware; 
 (ix) on the date hereof, NFC is not insolvent or the subject of any insolvency proceeding; 
 (x) no written information furnished or to be furnished by NFC or its Affiliates, agents or representatives to the Investors or the Agent for purposes of
or in connection with this Agreement, including, without limitation, any reports delivered pursuant to Section 5.02 and any information relating to the Receivables and NFC’s retail receivable financing business, is or shall be inaccurate
in any material respect, or contains or shall contain any material misstatement of fact, or omits or shall omit to state a material fact or any fact necessary to make the statements contained therein not misleading, in each case as of the date such
information was or shall be stated or certified, and such information heretofore furnished remains true and correct in all material respects as of the date such information was delivered by NFC or any of its Affiliates, agents or representatives to
the Investors or the Agent. 
 (xi) (x) NFC’s chief executive office and principal place of business is, and has been at all times
during the five (5) years preceding the date of this Agreement, located in the State of Illinois and (y) NFC is a “registered organization” (as defined in Section 9-102 of the UCC) incorporated in the State of Delaware and,
for purposes of Article 9 of the UCC, NFC is, and has been at all times during the five years preceding the date of this Agreement, located in the State of Delaware. 
 (c) The Note purchased by the Agent on behalf of the Investors pursuant to this Agreement will be acquired for investment only and not with a view to any public 

  

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distribution thereof, and no Investor will offer to sell or otherwise dispose of its interest in the Note so acquired by it (or any interest therein) in
violation of any of the registration requirements of the Act or any applicable state or other securities laws. The Agent and each Investor acknowledges that it has no right to require the Seller to register under the Act or any other securities law
the Note to be acquired by the Agent on behalf of such Investor pursuant to this Agreement. 
 The Investors and the Agent have such
knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Note and the Investors are able to bear the economic risk of such investment. The Investors and the Agent have
reviewed the Pooling Agreement, the Servicing Agreement and the Indenture (including the schedule and exhibits thereto) and have had the opportunity to perform due diligence with respect thereto and to ask questions of and receive answers from the
Seller and its representatives concerning the Seller, the Trust and the Note. Each of the Investors and the Agent is an “accredited investor” as defined in Rule 501, promulgated by the Securities and Exchange Commission (the
“Commission”) under the Securities Act of 1933, as amended. 
 (d) None of the Investors or the Agent is required to
register as an “investment company” nor are the Investors or the Agent controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 ARTICLE IV 
 Conditions 
 SECTION 4.01. Conditions Precedent. 
 (a) The obligation of the Agent, for the benefit of the Investors to purchase the Purchased Note is subject to the conditions precedent that (i) the Agent shall have received on or before the Closing Date each of the Transactions
Documents, (ii) the Agent shall have received the certificates, opinions, lien searches and other items listed on Exhibit A hereto, (iii) the Agent shall have received all fees and expenses required to be paid on such date pursuant
to the terms of this Agreement and the Fee Letter and (iv) all conditions precedent under the Indenture and the other Transaction Documents shall have been satisfied. 
 (b) The funding of the Initial Invested Amount shall be subject to the further conditions precedent that: 
 (i) the Agent has received copies of all settlement statements and all reports required to be delivered by the Servicer to the pursuant to
Section 2.17 of the Servicing Agreement; 
 (ii) each of the representations and warranties of the Seller and the Servicer made herein
and of the Trust made in the Transaction Documents shall be true and correct in all material respects as of the Closing Date (except to the extent they expressly relate to an earlier or later time); 
  

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 (iii) the Seller, the Trust and the Servicer shall be in compliance in all material respects with all of
their respective covenants contained in the Transaction Documents; 
 (iv) no Event of Default shall have occurred and be continuing and no
Event of Default shall occur as a result of funding the Initial Invested Amount; and 
 (v) the Aggregate Starting Receivables Balance shall
equal or exceed $419,959,260.36. 
 ARTICLE V 
 Covenants of the Seller and Servicer 
 SECTION 5.01. Access. So long as the Purchased Note
remains outstanding, each of NFC and the Seller will, at any time from time to time during regular business hours with reasonable notice to the Seller and NFC, permit the Investors or the Agent, or their agents or representatives to: 
 (a) examine all books, records and documents (including computer tapes and disks) in the possession or under the control of the Seller or NFC relating to
the Receivables, and 
 (b) visit the offices and property of the Seller or NFC for the purpose of examining such materials described in
clause (a) above; 
 it being understood that except as provided in Section 8.12, any information obtained by an Investor or the
Agent pursuant to this Section 5.01 shall be held in confidence by the Investors and the Agent unless and to the extent such information (i) has become available to the public, (ii) is required or requested by any Governmental
Authority or in any court proceeding or (iii) is required by any Governmental Rule. In the case of any disclosure permitted by clause (ii) or (iii) an Investor and the Agent shall use commercially reasonable efforts to
(x) provide the Seller with advance notice of any such disclosure and (y) cooperate with the Seller in limiting the extent or effect of any such disclosure. 
 SECTION 5.02. Information from NFC. So long as the Purchased Note remains outstanding, NFC will furnish to the Agent: 
 (a) a copy of each certificate, opinion, report, statement, notice or other communication (other than investment instructions) furnished by or on behalf of NFC or the Seller to the Indenture Trustee under any
Transaction Document, concurrently therewith, and promptly after receipt thereof, a copy of each notice, demand or other communication received by or on behalf of NFC or the Seller under any Transaction Document; 
 (b) such other information (including financial information), documents, records or reports respecting the Trust, the Receivables, the Seller or, to the
extent it relates to the origination of Receivables or the servicing of the Trust, NFC, as the Investors or Agent may from time to time reasonably request; 
  

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 (c) (I) except as provided in immediately succeeding clause (II), as soon as available and in any event
within (i) 45 days after the end of each of the first three fiscal quarters of any fiscal year and (ii) 120 days after the end of the last fiscal quarter of any fiscal year, copies of the interim or annual, as applicable, financial
statements of NFC, prepared in conformity with generally accepted accounting principles consistently applied and (II) on or before the earliest of (1) October 31, 2007, (2) five (5) Business Days after the filing thereof with the
Commission and (3) the date on which such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, copies of the interim or annual, as applicable, financial statements of NFC for the fiscal years
ended October 31, 2005 and October 31, 2006, for the fiscal quarters ended January 31, April 30 and July 31 of 2006, and for the fiscal quarters ended January 31, April 30 and July 31 of 2007, in
each case, prepared in conformity with generally accepted accounting principles consistently applied; and 
 (d) as soon as possible and in
any event within two Business Days after knowledge thereof by a Responsible Officer of NFC, notice of each Event of Default or event which with the giving of notice or the passage of time or both would constitute an Event of Default. 
 SECTION 5.03. Security Interests; Further Assurances. The Seller will take all action reasonably necessary to maintain the Indenture
Trustee’s first priority perfected security interest in the Receivables and the other Collateral granted pursuant to the Indenture. The Seller agrees to take any and all acts and to execute any and all further instruments necessary or
reasonably requested by the Investors or the Agent to more fully effect the purposes of this Agreement. 
 SECTION 5.04. Conduct of
Business. The Seller and the Servicer shall do all things necessary to remain duly incorporated, validly existing and in good standing as a domestic corporation (or other business entity) in its jurisdiction of incorporation (or formation) and
the Seller will cause the Trust to do all things necessary to remain duly organized, validly existing and in good standing as a statutory trust in the State of Delaware. The Servicer shall maintain all requisite authority to conduct its business in
each jurisdiction in which its business requires such authority except, in each case, where the failure to do so does not, and is not reasonably expected to, have a Material Adverse Effect. 
 SECTION 5.05. Compliance with Laws. The Seller and the Servicer shall comply in all material respects with all laws, rules, regulations, orders,
writs, judgments, injunctions, decrees or awards to which it may be subject or which are applicable to the Collateral except where the failure to so comply does not, and is not reasonably expected to, have a Material Adverse Effect. 
 SECTION 5.06. Replacement of Trustee. If at any time the identity of the Owner Trustee and the Indenture Trustee is such that the Trust Indenture
Act would require the replacement of the Owner Trustee and/or the Indenture Trustee (assuming for this purpose that the Indenture were required to be qualified thereunder), then the Seller shall (or shall cause the Issuer to) so replace the Owner
Trustee and/or the Indenture Trustee, as applicable, in each case, within 180 days following the event which precipitated such replacement, with an Owner Trustee and/or Indenture Trustee, as applicable, reasonably satisfactory to the Agent.

  

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 SECTION 5.07. Compliance with Opinion Assumptions. Each of the Seller and NFC shall at all times
(as to itself) conduct its affairs in all material respects in accordance with the factual assumptions applicable to it set forth in, and forming the basis of, the bankruptcy opinion(s) of Kirkland & Ellis delivered pursuant to
Section 4.01(a). 
 SECTION 5.08. Further Covenants. Each of the Seller and NFC will duly observe and perform each of its
covenants set forth in the other Transaction Documents in all material respects. 
 SECTION 5.09. Amendments. Neither the Seller nor
NFC will make, or permit any Person to make, any amendment, modification or change to, or provide any waiver under any Transaction Document without the prior written consent of the Agent. 
 ARTICLE VI 
 Indemnification 
 SECTION 6.01. Indemnities by the Seller and the Servicer. Without limiting any other rights that the Agent or any Investor may have hereunder or
under applicable law, (A) the Seller hereby agrees to indemnify (and pay upon demand to) the Agent and each Investor and their respective assigns, officers, directors, agents and employees (each an “Indemnified Party”) from and
against any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts payable, including reasonable attorneys’ fees (which attorneys may be employees of the Agent or such Investor) and disbursements (all of
the foregoing being collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result of this Agreement or the acquisition, either directly or indirectly, by an Investor of
the Notes (or any interest therein), and (B) the Servicer hereby agrees to indemnify (and pay upon demand to) each Indemnified Party for Indemnified Amounts awarded against or incurred by any of them arising out of the Servicer’s
activities as Servicer excluding, however, in all of the foregoing instances under the preceding clauses (A) and (B): 
 (i)
Indemnified Amounts to the extent such Indemnified Amounts resulted from gross negligence or willful misconduct on the part of the Indemnified Party seeking indemnification; 
 (ii) Indemnified Amounts to the extent arising from the acts or omissions of a successor Servicer; 
 (iii) Indemnified Amounts to the extent the same includes losses in respect of Receivables that are uncollectible; 
 (iv) taxes imposed by any jurisdiction in which such Indemnified Party is or would be subject to tax (unless such tax arises solely as a result of the
transactions contemplated by this Agreement) on or measured by the overall net income of such Indemnified Party to the extent that the computation of such taxes is consistent with the characterization for income tax purposes of the acquisition by
the Investors of interests in the Purchased Note as a loan or loans by the Investors to Seller secured by the Receivables; or 
  

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

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 ARTICLE VII 
 The Agent 
 SECTION 7.01. Authorization and Action. Each Investor hereby irrevocably appoints,
designates and authorizes the Agent to take such action on its behalf under the provisions of this Agreement and each other Transaction Document and to exercise such powers and perform such duties as are expressly delegated to the Agent by the terms
of this Agreement and any other Transaction Document, together with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Transaction Document, the
Agent shall not have any duties or responsibilities, except those expressly set forth in this Agreement, nor shall the Agent have or be deemed to have any fiduciary relationship with any Investor, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Transaction Document or otherwise exist against the Agent. Without limiting the generality of the foregoing sentence, the use of the term
“agent” in this Agreement with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of
market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 
 SECTION
7.02. Delegation of Duties. The Agent may execute any of its duties under this Agreement or any other Transaction Document by or through agents, employees or attorneys-in-fact and shall be entitled to the advice of counsel concerning all
matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects with reasonable care. 
 SECTION 7.03. Liability of Agent. No Agent-Related Person shall (i) be liable for any action taken or omitted to be taken by any of them
under or in connection with this Agreement or any other Transaction Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (ii) be responsible in any manner to any Investor for any
recital, statement, representation or warranty made by the Seller, the Servicer, the Indenture Trustee, or any officer thereof, contained in this Agreement or in any other Transaction Document, or in any certificate, report, statement or other
document referred to or provided for in, or received by the Agent under or in connection with, this Agreement or any other Transaction Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other Transaction Document, or for any failure of the Seller, the Servicer, the Indenture Trustee, or any other party to any Transaction Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any
obligation to any Investor to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Transaction Document, or to inspect the properties, books or records of
the Seller, the Servicer, the Indenture Trustee, or any of their respective Affiliates. 
 SECTION 7.04. Reliance by Agent.
(a) The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, statement or other document or

  

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conversation believed by it to be genuine and correct and to have been signed, sent or made by or on behalf of the proper Person or Persons, and upon advice
and statements of legal counsel (including counsel to the Seller, the Servicer and the Indenture Trustee), independent accountants and other experts selected by the Agent. The Agent shall be fully justified in failing or refusing to take any action
under this Agreement or any other Transaction Document unless it shall first receive such advice or concurrence of the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support Providers) as it deems
appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Investors against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Agent shall
in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Transaction Document in accordance with a request or consent of the Conduit Investor (and, if required by any Program Support Agreement, the
requisite Program Support Providers) or, if required hereunder, all Investors and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Investors. 
 (b) For purposes of determining compliance with the conditions specified in Article IV on the Closing Date, each Investor that has executed
this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Agent to such Investor for consent, approval, acceptance or satisfaction, or required thereunder to
be consented to or approved by or acceptable or satisfactory to such Investor. 
 SECTION 7.05. Notice of Event of Default. The Agent
shall not be deemed to have knowledge or notice of the occurrence of an Event of Default or an event which, with the giving of notice or passage of time, or both, would constitute an Event of Default unless the Agent has received written notice from
an Investor referring to this Agreement, describing such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default stating that such notice is a “Notice of Event of
Default”. The Agent will notify the Investors of its receipt of any such notice. The Agent shall (subject to Section 7.04) take such action with respect to such Event of Default or event which, with the giving of notice or passage
of time, or both, would constitute an Event of Default as may be requested by the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support Providers), provided, that, unless and until the Agent shall
have received any such request, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default or event which, with the giving of notice or passage of time, or both, would
constitute an Event of Default as it shall deem advisable or in the best interest of the Investors. 
 SECTION 7.06. Credit Decision;
Disclosure of Information by the Agent. Each Investor acknowledges that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by the Agent hereinafter taken, including any consent to and acceptance of
any assignment or review of the affairs of the Seller, the Servicer, the Indenture Trustee, or any of their respective Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Investor as to any
matter, including whether the Agent-Related Persons have disclosed material information in their possession. Each Investor, including any Investor by assignment, represents to the Agent that it has, independently and without reliance upon any
Agent-Related Person and based on such documents and information 

  

 22 

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

 23 

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

  

 24 

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

 (a) if to the Seller or the Servicer, at its address or telecopy number set forth in Appendix B to the Pooling Agreement; 
 (b) if to the Conduit Investor: 
 Liberty Street Funding LLC 
 c/o The Bank of Nova Scotia 
 One Liberty Plaza 
 New York, New York 10006 
 Attention: William Sun 
 Email: william_sun@scotiacapital.com 
 Phone: (212) 225-5331 
 Fax: (212) 225-5290 
  

 25 

 (c) if to the Agent: 
 The Bank of Nova Scotia 
 Asset – Backed Finance 
 One Liberty Plaza 
 New York, New York 10006 
 Attention: Darren Ward 
 Email: darren_ward@scotiacapital.com 
 Phone: (212) 225-5264 
 Fax: (212) 225-5274 
 All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt. 
 SECTION 8.03. Waivers; Amendments.

 (a) No waiver of any provision of this Agreement or consent to any departure by the Seller therefrom shall in any event be effective unless
the same shall be permitted by Section 8.03(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the Funding of the
Purchased Note shall not be construed as a waiver of any Event of Default, regardless of whether the Indenture Trustee, the Seller, the Servicer, the Agent or the Conduit Investor may have had notice or knowledge of such Event of Default at the
time. 
 (b) Any provision of the Agreement may be amended or waived by (x) the Seller or Servicer if, but only if, it is in writing and
signed by such Person and (y) the Agent and the Investors, if, but only if, it is in writing and signed by the Agent and the Conduit Investor. Any consent or other election or action to be taken by an Investor pursuant to the Indenture shall be
taken by the Agent as registered Holder of the Purchased Note, in each case with the consent of the applicable Investors (the Seller shall have no obligation to inquire as to such consent and may rely on any consent, election or action taken by the
Agent as such Holder). 
 (c) No waiver, amendment or modification of the Transaction Documents or any other agreement referred to herein or
therein to which the Seller is a party (other than this Agreement) shall affect any of the rights or obligations under this Agreement of any party hereto unless such party has given its written consent to such waiver, amendment or modification.

 (d) A failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed to operate as a
waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or privilege or the exercise of any other right, power or privilege. 
  

 26 

 SECTION 8.04. Survival. All covenants, agreements, representations and warranties made by the
Seller and the Servicer herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and
delivery of this Agreement and the funding of the Purchased Note, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Indenture Trustee, the Agent or the Conduit Investor may have had notice or
knowledge of any Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the Note or any amount payable under this Agreement is outstanding and
unpaid. 
 SECTION 8.05. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the Indenture and the other Transaction Documents constitute the entire
contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been
executed by each of the parties hereto and thereafter this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 8.06.
Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting
the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
 SECTION 8.07. Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial Right. 
 (a) This Agreement shall be construed in accordance with the laws of the State of New York, without reference to its conflict of laws provisions (other
than Section 5-1401 of the New York General Obligations Law), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
 (b) TO THE EXTENT PERMITTED BY LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 SECTION 8.08. No Bankruptcy Petition Against the Conduit Investor.
Each of the Investors, the Agent, the Seller and the Servicer hereby covenants and agrees that, prior to the date which is one year and one day (or the then applicable preference period) after the payment in full of all outstanding Commercial Paper
or other rated indebtedness of the Conduit Investor, it will not institute against, or join any other Person in instituting against, the Conduit Investor any proceeding of a type referred to in the definition of Event of Bankruptcy. 
  

 27 

 SECTION 8.09. Benefits of Indenture. Each of the Seller and the Servicer hereby acknowledges and
confirms that each representation, warranty, covenant and agreement made pursuant to the Indenture by the Seller and the Servicer is also made herein, all for the benefit and security of the Investors and the Agent. 
 SECTION 8.10. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
 SECTION 8.11.
No Recourse Against Conduit Investor, Members, Officers or Directors. Notwithstanding anything to the contrary contained in this Agreement, the obligations of each Conduit Investor under this Agreement and all other Transaction Documents are
solely the corporate obligations of such Conduit Investor and shall be payable solely to the extent of funds received in accordance herewith or from any party to any Transaction Document in accordance with the terms thereof in excess of funds
necessary to pay matured and maturing Commercial Paper. No recourse under any obligation, covenant or agreement of the Conduit Investor contained in this Agreement shall be had against any stockholder, member, employee, officer, director or
incorporator of the Conduit Investor or any beneficial owner of any of them, as such, by the enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that
this Agreement is solely a corporate obligation of the Conduit Investor, and that no personal liability whatsoever shall attach to or be incurred by the any stockholder, member, employee, officer, director or incorporator of the Conduit Investor or
any beneficial owner of any of them, as such, under or by reason of any of the obligations, covenants or agreements of the Conduit Investor contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by
the Conduit Investor of any of such obligations, covenants or agreements, either at common law or at equity, or by statute or constitution, of every such stockholder, member, employee, officer, director or incorporator of the Conduit Investor or any
beneficial owner of any of them, as such, is hereby expressly waived as a condition of and consideration for the execution of this Agreement; provided, that this Section 8.11 shall not relieve any such stockholder, member,
employee, officer, director or incorporator of the Conduit Investor or any beneficial owner of any of them, as such, of any liability it might otherwise have for its own intentional misrepresentation or willful misconduct. 
 SECTION 8.12. Waiver of Confidentiality. Each of the Seller and the Servicer hereby consents to the disclosure of any non-public information with
respect to it received by the Agent or any Investor to (i) the Agent, any nationally recognized statistical rating organization rating the Conduit Investor’s Commercial Paper, any Program Support Provider or other Person providing
financing to, or any member or other Person holding equity interests in, the Conduit Investor or any of the foregoing Person’s counsel or accountants in relation to this Agreement or any other Transaction Document (as long as each of the
foregoing Persons has been advised to keep such information confidential); and (ii) with the Seller’s and the Servicer’s consent (such consent not to be unreasonably withheld or delayed), any other Investor or potential Investor.

  

 28 

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

 29 

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

					
		 	CONDUIT INVESTOR:
		
		 	 LIBERTY STREET FUNDING LLC

			
		 	 By:
	 	 /s/ Jill A. Gordon

		 	 Name:
	 	Jill A. Gordon
		 	 Title:
	 	Vice President

  

 [Signature Page to Liberty Street Funding Note Purchase Agreement] 

					
		    	SELLER:	  	
			
		    	 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION,
 as
Seller
	  	

  

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

		 	 Name:
	 	John V. Mulvaney, Sr.
		 	 Title:
	 	Vice President, Chief Financial Officer and Treasurer

  

					
		 	INDIVIDUALLY AND AS SERVICER: 
		
		 	 NAVISTAR FINANCIAL CORPORATION,
 individually
and as Servicer

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

		 	 Name:
	 	John V. Mulvaney, Sr.
		 	 Title:
	 	Vice President, Chief Financial Officer and Treasurer

  

 [Signature Page to Liberty Street Funding Note Purchase Agreement] 

					
		 	AGENT:
		
		 	 THE BANK OF NOVA SCOTIA,
 as
Agent

			
		 	 By:
	 	 /s/ Norman Last

		 	 Name:
	 	Norman Last
		 	 Title:
	 	Managing Director

  

					
		 	 Payment Information:
	  	The Bank of Nova Scotia
		 		  	ABA: 026 002 532
		 		  	Account Number: 215813
		 		  	Account Name: Liberty Street Funding LLC
		 		  	Ref: Navistar Financial 2007-BNS Owner Trust
		 		  	Contact: William Sun

  

 [Signature Page to Liberty Street Funding Note Purchase Agreement] 

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

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

  

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

  

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

  

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

  

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

  

	 	-	authorization, execution and delivery of the Transaction Documents 

  

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

  

	 	-	perfection and priority of security interests 

  

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

  

	 	-	treatment of the Note as debt for tax purposes 

  

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

  

 A-1 

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

  

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

  

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

  

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

  

 A-2

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