Document:

Amended and Restated Master Intercompany Agreement

 Exhibit 10.2 
 AMENDED AND RESTATED MASTER INTERCOMPANY 
 AGREEMENT AS OF APRIL 1, 2007 
 This amended and restated agreement is made by and between Navistar Financial Corporation (as defined below, together with its permitted successors and
assigns, collectively, “NFC”), and International Truck and Engine Corporation, and its related manufacturing subsidiaries and affiliates (together with its permitted successors and assigns, collectively, “ITEC”) as of
April 1, 2007 (the “Agreement”). 
 WHEREAS, there have been several intercompany agreements in effect by and between
NFC and ITEC, some of which have been modified and amended or supplemented from time to time by written agreement, letters of understanding and business practices; and 
 WHEREAS, NFC and ITEC desire to incorporate all of such agreements, modifications, amendments, supplements and practices into this Agreement to reaffirm, amend and clarify certain of those agreements, letters
and practices and to restate in one document certain relationships of the parties and certain of their rights and obligations. 
 NOW
THEREFORE, for good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, NFC and ITEC hereby agree as follows: 
  

	I.	Definitions 

 The following terms have the
meanings ascribed to them below when used in this Agreement: 
 Blackout Period means the first four Business Days of a calendar
month or such lesser period during which ITEC’s computer system is unavailable due to month-end file maintenance and closing procedures. 
 Bus means a bus manufactured by IC Corp. or by another assembler or manufacturer using a chassis manufactured by ITEC or IC Corp. 
 Business Day means a day other than a Saturday, Sunday or other day on which x) commercial banks in New York, New York or Chicago, Illinois are authorized to close or y) the treasury and
controller’s departments of NFC or ITEC are not open for business. 
 Collections means, for any Retail Account as of any
date, i) the sum of all amounts, whether in the form of wire transfer, cash, checks, drafts, ACH, credit card, other electronic payments or instruments received by ITEC in payment of, or applied to, any amount owed by an Obligor on account of such
Retail Account on or before such date, including, without limitation, all amounts received on account of such Retail Account and all other fees and charges and ii) cash and noncash proceeds of Related Security with respect to such Retail Account.

 Commercial Step Van(s) means a commercial step van manufactured by WCC or by another assembler or manufacturer using a
chassis manufactured by WCC. 

 Contract shall mean a binding contract between ITEC and an Obligor including, but not
limited to, any and all instruments, agreements, invoices, purchase orders or other writings which gives rise to or evidences indebtedness for the purchase of one or more New International Products or Used Goods or related services from ITEC (but
excluding i) any dealer note or other “floorplan” financing and ii) any retail installment sale contract, retail note, lease, or other secured, intermediate term indebtedness). 
 Current Account Settlement Date for settlement of the balances reflected on the Current Account Statement for any calendar month means the
tenth Business Day of the next succeeding month, unless such date is changed by mutual agreement in writing of the ITEC Treasurer and the NFC Treasurer. 
 Current Account Statement means a computer generated and controlled accounting and settlement statement created for each calendar month by the tenth Business Day of the month following which statement
reflects intercompany charges and pro rations of charges for goods and services which include, without limitation, i) charges to ITEC for A) ITEC Paid Interest Charges, B) payments on account of Retail Accounts breach of warranty and other charges
in respect of unauthorized sales of Retail Accounts pursuant to Section G or Article III and charge-backs in respect of Wholesale Accounts pursuant to Section A.5 of Article IV, C) the Retail Account Service Charge, D) the Dealer Open Account
Service Charge, E) the Retail Accounts Adjustment, F) overpayments by NFC based on overestimates of Wholesale Contracts and Retail Accounts transferred to it, G) Dealer Repossession Loss H) Excess Discount, if any calculated pursuant to Article VII
hereof and I) such other charges as the parties may agree to in writing; ii) charges reasonably allocable to NFC for A) underpayments by NFC based on underestimates of Wholesale Contracts and Retail Accounts transferred to it, B) accounting fees for
independent auditing firms C) mainframe computer charges, D) publication subscriptions, E) Limited Liability Fee, F) promotional expenses, G) meeting expenses, H) car and equipment rental expenses, I) computer hardware and software acquisition
expenses, J) telecommunications expenses, K) training expenses, L) real estate rental expenses, M) moving expenses, N) management retirement objective benefit expenses, O) allocated travel expenses, P) health and welfare expenses, Q) releases of the
Reserve pursuant to paragraph 3 of Article VII.A, R) a refund of ITEC Paid-Interest Charges in respect of interest credits made by ITEC to Dealers’ Open Accounts purchased by NFC during the month and S) such other charges as the parties may
agree to in writing. 
 Dealer means a dealership with an ITEC Sales/Maintenance Agreement, a person with whom NFC has an
agreement to extend used truck floor plan terms or a TEM or RVEM with a floor plan financing agreement with NFC. 
 Dealer Note Master
Owner Trust and Dealer Note Master Trust mean the trusts and related documents relating to the revolving securitization of NFC’s eligible Wholesale Contracts and the sale to investors of asset backed securities. 
 Dealer Open Account means an account receivable arising under a revolving credit account in favor of or in the name of a Dealer, as
obligor, established by ITEC under which i) such Dealer purchases service parts and services from ITEC and ii) charges, credits and adjustments are entered for other transactions by and between ITEC and/or Idealease and such Dealer. In addition,
receivables arising from transactions between a Dealer and NFC are entered onto such revolving credit account and collected from the Dealer by NFC. 
  

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 Dealer Open Account Settlement Statement means a schedule of Dealer Open Accounts prepared
by ITEC and delivered to NFC, reflecting the Dealer Open Accounts activity and balances. 
 Dealer Open Account Service Charge
means the amount calculated pursuant to Article IV.Section C. hereof. 
 Dealer Repossession means i) a New International
Products sold to a Dealer by ITEC or ii) Used Goods sold to a Dealer under a Used Truck Organization special program and in either case which is the subject of a Retail Contract or Lease arising from a retail sale or lease by a Dealer or its
affiliate, which is subsequently repossessed by NFC or its affiliate within the 180-day Period and which is not repurchased by the Dealer. Dealer Repossession includes Equipment sold to NFC by a Dealer, for the purpose of leasing to the
Dealer’s or its affiliate’s customer and subsequently repossessed by the lessor. 
 Dealer Repossession Loss for
Dealer Repossessions sold by ITEC to third parties during a calendar month, means the net amount by which i) the aggregate of the Net Unpaid Balances of all Retail Contracts and Unrecovered Equipment Costs of all Leases relating to such Dealer
Repossessions exceeds ii) the sum of (x) the aggregate Final Sale Prices of such Dealer Repossessions (less, for the calculation of x), any amounts required to be paid to the obligors of the related Retail Contracts) and y) the Limited
Liability Amounts for such Dealer Repossessions. 
 Dealer Reserve Account means an account maintained by NFC for each Dealer
with whom it has a Retail Financing Arrangement which i) is credited with the amount of finance charge on Retail Contracts procured through the related Dealer in excess of the rate which NFC would otherwise require as acceptable to it for
acquisition, ii) is debited for such Dealer’s unpaid loss obligations for Dealer Repossessions following the termination of such Dealer’s ITEC Sales/Maintenance Agreement and iii) may, at NFC’s option, be released to the related
Dealer in whole or in part from time to time. 
 Dealer Retail Contract means a Retail Contract or Lease sourced from a Dealer.

 Equipment means collectively New International Products, New Goods, Used Goods and mounted equipment thereon. 
 Estimated Fair Market Price means i) for ITEC repossessions, the fair market price of the repossessed Equipment, as determined in good
faith by ITEC in consultation with NFC, and ii) for Dealer Repossessions, the fair market price of the repossessed Equipment, as determined in good faith by NFC. 
 Excess Discount has the meaning specified in Article VI. 
 Face Amount means,
with respect to a Closing Date under Article III of this Agreement, the exact amount due on a Retail Account as of such Closing Date. 
  

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 Final Sale Price means the price actually received by ITEC upon the sale of a Dealer
Repossession less costs of authorized reconditioning and sales commission or other costs to sell. 
 Fiscal Year means, for
ITEC and NFC, the period from each November 1 through and including October 31 of the following year. The numerical designation of a Fiscal Year (e.g. Fiscal Year 1992) means such period ending in the year designated (e.g. the year ending
October 31, 1992). 
 Ford means Ford Motor Company and any of its affiliates, as applicable. 
 Ford Retail Account means an unsecured account receivable owing to ITEC arising out of sales of New International Products by ITEC to Ford
in the ordinary course of its business. Ford Retail Accounts for purposes of Article III of this Agreement shall refer to Ford retail accounts which are now in existence and which may hereafter come into existence and which are to be sold to NFC as
mutually agreed to from time to time between ITEC and NFC. 
 Ford Retail Account Service Charge means the amount calculated
pursuant to Article III. Section D. 
 Ford Retail Service Charge Rate
with respect to a settlement period under this Agreement, means the rate agreed upon on a quarterly basis by NFC and ITEC to be charged ITEC for Ford Retail Accounts, which rate shall be no lower than the Prime Rate in effect on the 3rd Monday of the calendar month preceding such settlement period plus one hundred basis points or as mutually agreed upon in
writing between the ITEC and NFC Treasurers. 
 Ford Supply Agreement means the Next Generation Diesel Supply Agreement entered
into between Ford and ITEC as of October 1, 1987; the Next Generation II Diesel Supply Agreement entered into between Ford and ITEC as of October 29, 1997; any amendments to the foregoing agreements and any successor agreements.

 Guaranty Limitation means a limitation of ITEC’s guaranty obligation to NFC under Article V.C. of this Agreement for
the ITEC Repossession Loss and Dealer Repossession Loss in an amount not to exceed for any Fiscal Year 10% of NFC’s consolidated liquidations of Serviced Retail Contracts and Leases during such Fiscal Year, provided that if the total amount
(net of unearned interest) of Retail Contracts and Leases acquired by NFC on a consolidated basis during such Fiscal Year is less than $50,000,000 then the Guaranty Limitation during such Fiscal Year shall be 10% of the consolidated gross balances
(including all finance income, whether or not earned and other amounts due or to become due) at the beginning of such Fiscal Year of all Serviced Retail Contracts and Leases. 
 IC Corp means IC Corporation, a wholly owned subsidiary of ITEC and manufacturer of Buses. 
 Idealease Dealer means a Dealer who owns, directly or through an affiliate, capital stock of Idealease of North America, Inc. and/or
Idealease Cooperative, Inc. 
  

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 Idealease Program means any Retail Contract from an Idealease Dealer, or its affiliate, to
NFC financing a New International Truck while on lease by such Idealease Dealer, or its affiliate, to an end user. 
 IMG means
International Military and Government LLC, a Delaware limited liability company and a wholly owned subsidiary of ITEC. 
 Interest
Deposit Account means the bank account created and regulated by the Interest Deposit Agreement. 
 Interest Deposit
Agreement means the agreement by and among ITEC, NFC and the Trustee, in connection with the Dealer Note Master Trust. 
 ITEC
Interest Amount means an amount as defined and calculated pursuant to the Interest Deposit Agreement 
 ITEC Paid-Interest
Charge means the amount calculated pursuant to Article II Section B.Paragraph 5.d.1 of this Agreement. 
 ITEC
Repossession means Equipment, which is the subject of a Retail Contract or Lease arising from a sale by ITEC directly to a retail customer, or to a Dealer and leased by such Dealer or its affiliate to a retail customer under the Idealease
Program, which is subsequently repossessed by NFC. ITEC Repossession includes Equipment sold to NFC by ITEC, leased to a retail customer and repossessed by the lessor. 
 ITEC Repossession Loss means for any ITEC Repossession the amount, if any, by which i) the Net Unpaid Balance of the Retail Contract or Unrecovered Equipment Costs of Leases relating to such ITEC
Repossession exceeds ii) the net sales price of the related Equipment. 
 ITEC Sales/Maintenance Agreement means an agreement
between i) ITEC and a truck dealership, which establishes the rights and obligations of the parties for the sale of New International Trucks, engines, accessories and service parts by such truck dealership, ii) IC Corp and a bus dealership, which
establishes the rights and obligations of the parties for the sale of Buses, engines, accessories and service parts by such bus dealership, iii) WCC and a RV or Commercial Step Van dealership, which establishes the rights and obligations of the
parties for the sale of RVs or Commercial Step Vans, engines, accessories and service parts by such RV or Commercial Step Van dealership, or iv) ITEC or any other related manufacturing subsidiaries or affiliates and dealers in those manufactured
products, accessories and services parts, which establishes the rights and obligations of the parties for the sale of same. 
 Late
Charge means, for Article IV of this Agreement, the penalty charge as determined and announced from time to time by ITEC in consultation with NFC, imposed by NFC on a Dealer Open Account when payment on such Dealer Open Account is received
after the due date. 
 Lease means (i) a retail lease by an obligor of one or more New International Products, originated
or acquired by NFC; and/or (ii) a retail lease of one or more New International 

  

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Products that provides for a TRAC payment by the lessee at the expiration of the lease term pursuant to a provision in the lease that provides in substance,
that, at the end of the term of the lease, after the application of the proceeds of the sale of the financed vehicle (whether such sale is to the lessee, an affiliate of the lessor or another person) the lessee will be obligated to pay the lessor
the excess of the TRAC payment over the sale proceeds or the lessor will be obligated to pay the lessee the excess of the sale proceeds over the TRAC payment; and/or (iii) a retail lease of one or more New International Products that is not a
TRAC lease and which is required by GAAP to be capitalized on the balance sheet of the related obligor and which gives the obligor the right to purchase the financed vehicle at lease expiration for $1,000 or less. 
 Limited Liability Amount with respect to a Dealer Repossession means that portion of the Net Unpaid Balance of the related Retail Contract
or Unrecovered Equipment Costs of a Lease that is agreed among ITEC, NFC and the Dealer at or before such Retail Contract or Lease is acquired by NFC and specified as the amount to be paid by such Dealer to NFC upon the repossession of the related
Equipment (whether NFC has waived or forgiven all or any portion of such amount and whether such amount is actually paid by such Dealer or not). 
 Limited Liability Fee means one-percent of the aggregate of the pre-computed finance charges for Dealer Contracts and Leases acquired by NFC during a calendar month, which shall be charged pursuant to paragraph II.B.4.e of
this Agreement. 
 NFC means Navistar Financial Corporation and its finance related subsidiaries and finance related
affiliates, including trusts (together with permitted successors and assigns). 
 Net Unpaid Balance, with respect to a Retail
Contract, means x) the gross unpaid balance of such Retail Contract, less y) the sum of i) unearned interest on finance-included Retail Contracts (including both NFC unearned interest and unearned credits to the Dealer Reserve Account relating to
such Retail Contract) and ii) insurance premium rebates, if applicable, plus z) the sum of i) late charges, ii) accrued interest on interest-bearing Retail Contracts and iii) all expenses incurred by NFC incidental to recovery or repossession,
including attorney fees and the payoff of any mechanics or other lien required to be paid to regain possession. 
 New Goods
means new trucks, new buses and new trailers and other products designed or customarily sold for use with New International Trucks but not manufactured or sold by ITEC. 
 New International Products means New International Trucks, Buses, RVs, Commercial Step Vans, engines (including, but not limited to, any engines sold to Ford pursuant to the Ford Supply Agreement), and
parts manufactured or sold by ITEC, IC Corp., WCC or IMG. 
 New International Trucks means new trucks, truck chassis and
accessories (including bodies) manufactured or sold by ITEC. 
 Obligor means for any Retail Account, each and every person who
purchased any New International Products or Used Goods or related services on credit under a Contract and who is obligated to make payments pursuant to such Contract. 
  

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 One Hundred Eighty-Day Period or 180-day Period means with respect to the repossession of
Equipment, the 180 days immediately following the maturity date of the earliest original or extended Retail Contract installment remaining unpaid at the date of such repossession. When such repossession is delayed by litigation or operation of law,
the running of the 180-day Period shall be tolled until such impediment is removed. 
 Prime Rate means the majority rate, or
if there is no majority rate then the average of the rates of interest publicly announced as their prime rate, referenced rate or corporate base rate by a group of at least three (3) money-center banks selected from time to time by the ITEC
Treasurer and the NFC Treasurer. 
 Proceeds means “proceeds” as defined in Section 9-306(1) of the Uniform
Commercial Code as in effect in the State of New York and in the jurisdiction whose law governs the perfection of ownership interests therein. 
 Related Security shall mean with respect to any Retail Account: 
  

	 	a)	all Contracts with respect to such Retail Account; 

  

	 	b)	all of ITEC’s interest, if any, in the New International Products and Used Goods; 

  

	 	c)	all other security interests or liens and property subject thereto from time to time, if any, purporting to secure payment of such Retail Account, whether pursuant to the Contract
related to such Retail Account or otherwise, together with all financing statements signed by an Obligor describing any collateral securing such Retail Account; 

  

	 	d)	all guaranties, indemnities, letters of credit, insurance or other agreements or arrangements of any kind from time to time supporting or securing payment of such Retail Account
whether pursuant to the Contract related to such Retail Account or otherwise; 

  

	 	e)	All records relating to, and all service contracts and any other contracts associated with, the Retail Accounts, the Contracts or the Obligors; 

  

	 	f)	All Proceeds of the foregoing. 

 Retail
Account means an unsecured account receivable owing to ITEC arising out of sales of New International Products by ITEC to its national accounts (fleet) truck retail customers, export customers and TEMs in the ordinary course of its business.
Retail Accounts for purposes of Article III of this Agreement shall refer to retail accounts which are now in existence and which may hereafter come into existence and which are to be sold to NFC as mutually agreed to from time to time between ITEC
and NFC. 
 Retail Account Closing Date means for Article III of this Agreement the last day of a Retail Account Settlement
Period. 
 Retail Account Adjustment means an adjustment on Retail Accounts by NFC in respect of sales of Retail Accounts to
NFC for which NFC credit approval had not been obtained or for which NFC’s credit limit had been exceeded by ITEC’s repurchase or such unauthorized Retail Accounts or the excess thereof over NFC’s credit limit pursuant to Section H.
Paragraph 2 of Article III. 
  

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 Retail Account Service Charge means the amount calculated pursuant to Article III.Section
C. 
 Retail Account Settlement Date means for Article III of this Agreement the date on which ITEC and NFC shall effect
settlement for the related Retail Account Settlement Period which date shall be the first Business Day after the Closing Date for such Retail Account Settlement Period or such other date as the ITEC Treasurer and the NFC Treasurer may agree.

 Retail Account Settlement Period means for Article III of this Agreement either (a) each week beginning with Saturday
and ending the following Friday unless all of the days in such week do not fall in the same calendar month, in which case i) the period beginning with the first day of the month and ending with the second Friday of the month shall be a Retail
Account Settlement Period, and ii) the period starting on the last Saturday of a calendar month and ending with the last calendar day of the month shall also be a Retail Account Settlement Period or (b) such shorter period as may be agreed upon
by the parties. Such agreement shall be in writing and signed by the ITEC Treasurer and the NFC Treasurer. 
 Retail Account Settlement
Statement means for Article III of this Agreement the summary of the charges and credits between ITEC and NFC arising pursuant to Article III of this Agreement for each Retail Account Settlement Period. 
 Retail Contract means i) a retail installment sales contract between ITEC or a Dealer (under a Retail Financing Arrangement) and a retail
customer transferred to NFC, or ii) an agreement or instrument evidencing a loan from NFC directly to a retail customer secured by Equipment or service parts; in each case which relates to the sale of Equipment or service parts to a retail customer
or to a leasing dealer who is the primary obligor thereon or to the refinancing of such Equipment or service parts by such retail customer or leasing dealer. 
 Retail Financing Arrangement means an agreement with a Dealer under which NFC agrees to provide retail financing or lease financing for the purchases or lease of Equipment by retail customers from such
Dealer, as in effect and as amended from time to time. 
 Retail Sales Allowance means any pricing incentive (including,
without limitation, any retail finance charge, finance charge waiver or rate differential program) which is contingent on the making of a retail sale and is allowed by ITEC to promote retail sales of New International Products by Dealers; provided
that the term “Retail Sales Allowance” does not include any volume discount or deferred credit (in each case as defined in Section B. paragraph 3 of Article IV of this Agreement) payable by ITEC to Dealers or a price reduction made prior
to the date of, and reflected in, the related Wholesale Contract. 
 Revolver means that certain credit agreement dated
July 1, 2005, among NFC, the Co-Agents and the Banks referred to therein, as amended and/or refinanced from time to time. 
 RV(s) means recreational vehicles manufactured by WCC or by another assembler or manufacturer using a chassis manufactured by WCC. 
 RVEMS means a recreational vehicle equipment manufacturer which incorporates WCC chassis or components into its products. 
  

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 Security and Pledge Agreement means that certain amended and restated Security, Pledge and
Trust Agreement between NFC and Deutsche Bank Trust Company Americas as Trustee, dated as of July 1, 2005 as amended or restated from time to time. 
 Service Charge Rate, with respect to a settlement period under this Agreement, means
the higher of (i) the Prime Rate in effect on the 3rd Monday of the calendar month preceding such settlement
period plus one hundred basis points and (ii) eight per cent (8%) expressed as a daily, weekly, annual or monthly rate, as appropriate or such other rate as the parties may agree to in writing from time to time. 
 Serviced Retail Contracts and Serviced Leases mean at any time, as the context may require, all outstanding Retail Contracts and Leases
which NFC, Navistar Financial Retail Receivables Corporation, TRIP or any other NFC special purpose vehicle owns at such time or which NFC, Navistar Financial Retail Receivables Corporation, TRIP or any other NFC special purpose vehicle has
theretofore sold and continues to have an economic interest in at such time. 
 Serviced Wholesale Contracts means at any time,
as the context may require, all outstanding Wholesale Contracts which NFC, Navistar Financial Securities Corporation or any other NFC special purpose vehicle owns at such time or which NFC, Navistar Financial Securities Corporation or any other NFC
special purpose vehicle has theretofore sold and continues to have an economic interest in (through ownership of the Navistar Financial Securities Corporation seller certificate, a right to receive payment of a deferred purchase price, as undivided
interest in a trust or otherwise) at such time. 
 TEM means (i) a truck equipment manufacturer and its distributors which
incorporate ITEC chassis or components into its products, provided such manufacturer or distributor is a party to a TEM agreement with ITEC under which agreement ITEC agrees to provide chassis or other truck components to be incorporated into such
manufacturer’s products, (ii) any manufacturer of trucks that purchases engines manufactured or sold by ITEC to be used in such completed trucks or chassis and (iv) any purchaser of engines manufactured or sold by ITEC for use in its
products. 
 TRIP means Truck Retail Installment Paper Corporation, a Delaware corporation wholly owned by NFC as of the date
of this Agreement. 
 Unrecovered Equipment Costs means the present value of the remaining lease rental payment stream plus the
residual value of the related equipment and other charges due and owing to NFC less the net sales price of the equipment. 
 Used
Goods means used trucks, buses, trailers, other motor vehicles and other personal property. 
 Used Truck Center means
a Used Truck Organization used truck sales location. 
 Used Truck Organization means the ITEC department responsible for the
sale of used goods to retail customers, dealers and other constituencies. 
  

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 Wholesale Contract means a promissory note from a Dealer or TEM which relates to
ITEC’s sale of Equipment, engines or service parts to such Dealer or TEM for resale to retail customers. 
 WCC means
Workhorse Custom Chassis, a wholly owned subsidiary of ITEC and manufacturer of RVs and Commercial Step Vans. 
  

	II.	Financing by NFC of ITEC Retail Sales, Leases and ITEC Wholesale Sales of Equipment. 

  

	A.	Sale and Purchase of Contracts 

 1. On each
Business Day ITEC agrees to offer to sell to NFC, to endorse or otherwise assign to NFC, without recourse, except as provided herein, and to deliver to NFC all Retail Contracts, Leases and Wholesale Contracts acquired in the regular course of
ITEC’s business on terms which will afford reasonable compensation for the financing services rendered by NFC to ITEC and Dealers in respect of the sale of New International Products, New Goods or Used Goods. NFC in turn agrees, to the extent
that it is able to finance such purchases, to purchase such Retail Contracts, Leases and Wholesale Contracts except those, if any, as to which the risk of loss or, in the case of Leases, the residual value is unacceptable to NFC. 
 2. The obligation on ITEC under this Article II to offer to sell Retail Contracts or Leases shall not be deemed violated if any Retail Contract is
offered or sold by ITEC without any recourse to a person other than NFC: 
 a. After the obligor under the Retail Contract or
Lease has in good faith and for purposes of his own, requested the sale of the Retail Contract or Lease by ITEC to such other person, or 
 b. If the Retail Contract or Lease shall be on terms which would be unacceptable to ITEC if it were not able to offer and sell such Retail Contract or Lease to such other person. 
 3. ITEC shall sell, transfer, assign, and otherwise convey to NFC without recourse (but without limitations of its obligations in this Agreement), all
the right, title and interest of ITEC in and to the Wholesale Contracts, Retail Contracts, and Leases and any proceeds related thereto, including the security interests in the Equipment financed thereunder granted by the related obligors pursuant to
the Wholesale Contracts, Retail Contracts and Leases, benefits of any lease assignments, liquidation proceeds, proceeds from any insurance policy, proceeds from any Dealer, and proceeds from any commercial and personal guaranties of an
obligor’s performance, with respect to the Wholesale Contracts, Retail Contracts and Leases, and such other items as shall be specified in this Agreement. It is the intention of the parties that the transfer and assignment contemplated by this
Agreement shall constitute a sale of the Wholesale Contracts, Retail Contracts and Leases from ITEC to NFC and the beneficial interest in and title to the Wholesale Contracts, Retail Contracts and Leases shall not be part of ITEC’s estate in
the event of the filing of a bankruptcy petition by or against ITEC under any bankruptcy law. ITEC and NFC intend to treat such transfer and assignment as a sale for accounting purposes. Notwithstanding the foregoing, in the event a court of
competent jurisdiction determines that 

  

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such transfer and assignment did not constitute such a sale or that such beneficial interest is a part of ITEC’s estate, ITEC shall be deemed to have
granted NFC a first priority perfected security interest in all of ITEC’s right, title and interest in, to and under the assets conveyed pursuant to this Agreement, and ITEC hereby grants such security interest. For purposes of such grant, this
Agreement shall constitute a security agreement under the Uniform Commercial Code. 
  

	B.	Prices to be Paid for Contracts; Settlements 

 1. The price to be paid by NFC to ITEC for each Retail Contract sourced by ITEC and sold to NFC under this Agreement shall be the Net Unpaid Balance of the Retail Contract. When the cost of insurance to be arranged by ITEC is deducted from
the amount paid for a Retail Contract, NFC will assume ITEC’s obligation to arrange for such insurance. When the Retail Contract originates from a sale made on terms other than those established by NFC and then currently in effect, or the
credit of the purchaser is not satisfactory to NFC, NFC may withhold payment of such an amount of the purchase price of that Retail Contract which in NFC’s opinion is necessary to protect it until the Retail Contract has been paid in full.

 2. The price to be paid by NFC to ITEC for each Lease sourced by ITEC and sold to NFC under this Agreement is the unamortized cost of the
Equipment, or such other price as the parties may agree. 
 3. The price to be paid by NFC for each Wholesale Contract acquired by ITEC and
sold to NFC under this Agreement shall be the unpaid balance of the Wholesale Contract, which shall be subject to adjustment pursuant to Articles II and VII of this Agreement. 
 4. If a Dealer shall be entitled to a price reduction on any Equipment covered by an unpaid Wholesale Contract, ITEC will, when the Dealer is entitled to
such price reduction, remit to NFC the net amount of such price reduction to be applied as a credit to the unpaid amount of such Wholesale Contract. NFC shall have no obligation to credit such unpaid amount unless and until ITEC shall remit the
amount of such price reduction to NFC. If a Dealer remits payment of a Wholesale Contract to NFC net of a discount which the Dealer claims to have earned under ITEC’s sales promotion programs, ITEC shall pay to NFC the amount of the claimed
discount on the next Business Day, or at some other time as the parties agree, after NFC determines such Dealer claim has been made. 
 5.
Settlements between ITEC and NFC shall be made as set forth in subparagraphs a. through g. of this paragraph 5. 
 a. Payments
by NFC to ITEC for Wholesale Contracts acquired by NFC from ITEC hereunder shall be made daily to a bank account designated by ITEC on the Business Day following the day such Wholesale Contracts are acquired by NFC, each such daily payment to be in
the amount actually due for such Wholesale Contracts acquired by NFC on the preceding Business Day, except (i) NFC may estimate the amount due if actual data is unavailable. Such estimated payment will be adjusted to actual as soon as the data
is available but not later than the Current Account Settlement Date in the month immediately following the month in which the estimation occurred and (ii) that the amounts payable for Wholesale Contracts acquired in a month following the last
Business Day of such month shall be paid on an estimated basis on such last Business 

  

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Day based on an estimate by ITEC of the amount due for Wholesale Contracts acquired by NFC during such days and will be adjusted to the actual amount due on
the next Current Account Settlement Date by a credit or debit, as required, to the next Current Account Statement. 
 b.
Wholesale Contracts acquired by NFC during the Black-Out Period shall be paid for on the next Business Day following such Black-Out Period. 
 c. Payments by NFC to ITEC for Retail Contracts and Leases acquired by NFC from ITEC hereunder during each calendar month shall be made daily on the next following Business Day to a bank account designated by ITEC.

 d. ITEC-Paid Interest Charges on Wholesale Contracts: 
 1. Except with respect to Wholesale Contracts sold to Navistar Financial Securities Corporation or another NFC special purpose vehicle or
as provided in the paragraph below, whenever and to the extent that ITEC i) establishes Wholesale Contracts with terms that delay the commencement of the accrual of interest charges (e.g., in-transit interest-free period), ii) establishes Wholesale
Contracts with terms under which ITEC agrees with the related Dealer that ITEC will pay the Dealer’s interest charges on specified Wholesale Contracts, either up front or on a periodic basis as such interest charges actually accrue or iii)
grants interest charge waivers or credits to Dealers for existing Wholesale Contracts owned by NFC, ITEC agrees to pay to NFC on a weekly basis an amount equal to the product of x) the number of days of interest during such week for which interest
charges were not made or for which credit is given for each affected Wholesale Contract, multiplied by y) the unpaid balance of such Wholesale Contract multiplied by z) by the daily rate of interest then being charged to Dealers by ITEC (in
consultation with NFC) on its Wholesale Contracts (calculated on a daily average basis if such rate changes during such period). Such payments shall be made for such week on the second Business Day of the following week. 
 In lieu of the payments by ITEC contemplated by the preceding Paragraph, at NFC’s sole option and upon notice from NFC, ITEC shall
pay to NFC on the second Business Day of each week accrued interest and future-due interest on non-interest bearing Wholesale Contracts and amounts in respect of interest credits granted to Dealers in respect of Wholesale Contracts in an aggregate
amount at least equal to the amount that would be required to be deposited by ITEC under the Interest Deposit Agreement as in effect on April 26, 1993, as amended or replaced from time to time, if such Wholesale Contracts had been sold under a
securitization program in effect from time to time (subject to rebate to ITEC of any excess amounts so held on a basis comparable to that applied in the applicable securitization program in effect from time to time) and, in that event, NFC will pay
ITEC interest on the average daily balance of amounts so advanced, as determined by NFC, at a rate equal to the one-month LIBOR rate plus the Euro-Dollar Margin then applicable under the Revolver. 
  

 12 

 2. ITEC shall pay into the Interest Deposit Account on the first Business Day of each
week the amount, if any, by which the ITEC Interest Amount for the preceding week with respect to Wholesale Contracts sold to Navistar Financial Securities Corporation exceeds the amount on deposit under the Interest Deposit Agreement. 

e. NFC shall pay to ITEC the Limited Liability Fee, as of the close of each calendar month, as a charge to the Current Account
Statement, in consideration of ITEC providing its guaranty obligations under Article V.Section C. of this Agreement. 
 f. All
other payments due from ITEC to NFC or from NFC to ITEC during any calendar month pursuant to this Article II shall (unless the time and place of payment is otherwise specified herein) be made on or before the last Business Day of such calendar
month on the basis of estimates of the amounts due from each party to the other. 
 g. Final settlement to reflect the actual
balance between the parties for each calendar month, including all payments and adjustments required by this Agreement to be made as of the close of each calendar month, shall be accounted for under the Current Account Statement and paid on the
Current Account Settlement Date. 
 h. Notwithstanding any provisions of this Section B.5.a to g, ITEC and NFC may agree from
time to time to delay payments by NFC to ITEC of amounts due hereunder. Such agreement shall be in writing and signed by the ITEC Treasurer and the NFC Treasurer. 
  

	C.	Conditions Applicable to Contracts 

 1. Each
Retail Contract, Lease and Wholesale Contract purchased by NFC from ITEC shall comply with each of the following conditions: 
 a. it must have been acquired by ITEC in the usual course of ITEC’s business and originate from the sale or lease by ITEC of Equipment to its Dealers or retail customers; 
 b. it must be on a form approved by NFC and secured by chattel mortgage, conditional sale lien, or other title-retaining, lien-giving
instrument or security agreement (sometimes referred to herein as “lien instrument”) in a form acceptable to NFC, which shall constitute a first and prior lien upon the goods for which it is given and which lien instrument (or a financing
statement describing such lien instrument, if permissible under applicable law) shall have been filed or recorded and/or entered on the certificate of title within the time and in the manner and in the places required by law to preserve the priority
of such lien under the applicable provisions of the Uniform Commercial Code, the Federal Bankruptcy Code and other state laws governing priority among creditors; 
 c. the goods covered by such Retail Contract, Lease or Wholesale Contract shall have been sold to a Dealer located within, or to a retail
customer which will title the equipment in one of the states of the United States for use primarily within the United States, unless other titling arrangements have been authorized by NFC; and 
  

 13 

 d. the terms of the sale from which the Retail Contract, Lease or Wholesale Contract
originated shall be those in effect for the class of sale involved at the time credit is extended to the Dealer or retail customer. In the case of Wholesale Contracts, such terms shall have been established by ITEC with approval of NFC, and in the
case of Retail Contracts or Leases, such terms shall have been established by NFC. 
  

	D.	Documents to Accompany Contracts 

 1. At the
time a Retail Contract, Lease or Wholesale Contract is tendered by ITEC to NFC for purchase, there shall be therewith presented to NFC at the place designated by NFC, the following instruments, documents, and data in connection with such Retail
Contract, Lease or Wholesale Contract: 
 a. the preliminary note or notes, contract, lease or other written agreement
evidencing the obligation, together with the lien instrument or instruments securing the same, all of which shall be endorsed, assigned, or otherwise transferred to NFC without recourse except as expressly provided herein; 
 b. a schedule or statement disclosing the original amount of the obligation, the amount remaining unpaid thereon, if less than the face
amount, and the unpaid balance financed and, additionally, in case of a lease, the residual value; 
 c. such other data and
other information as NFC may from time to time request; 
 d. such financial statements or operating statements, or both, of
the purchaser lessee, and other information regarding the purchaser’s or lessee’s financial responsibility, as NFC may from time to time request; 
 e. i) the original certificate or policy of insurance relating to such goods, with a loss-payable clause in favor of NFC as its interests may appear, or other evidence satisfactory to NFC that the goods securing the
Retail Contract or Lease are insured on terms satisfactory to NFC under a certificate or policy of insurance payable to NFC as its interests may appear (provided that NFC may, in its sole discretion, permit the obligor on a Retail Contract or Lease,
for property damage only, to self insure in an amount acceptable to NFC) and ii) if insurance with respect to the Equipment securing any Wholesale Contract, in such amounts and of such kinds as is customarily required by ITEC and acceptable to NFC,
has not been and is not to be arranged through ITEC, the original certificate or policy of insurance relating to such goods, with a loss-payable clause in favor of NFC, or another company in NFC, as its interests may appear, or other evidence
satisfactory to NFC that the goods securing the Wholesale Contract are insured on terms satisfactory to NFC under a certificate or policy of insurance payable to NFC as its interests may appear; and 
 f. the certificate of title issued with respect to Equipment described in the lien instrument securing any Retail Contract or representing
any Lease, if by the law of the state by which such certificate of title was issued, a certificate of title is delivered to the holder of a lien shown thereon. 
  

 14 

	E.	Warranties Relating to Contracts 

 1. As to
each Retail Contract, Lease or Wholesale Contract submitted by ITEC to NFC, ITEC shall be deemed to have represented and warranted to NFC as follows: 
 a. that the Retail Contract, Lease or Wholesale Contract and lien instrument securing the same are in compliance with all of the terms and provisions of this Article II of this Agreement; 
 b. that the amount purported to be owing on the Retail Contract, Lease or Wholesale Contract is absolutely owing thereon and is not
subject to any defense, counterclaim, set-off, or reduction; 
 c. that insurance in such amounts and of such kinds as is
customarily required by ITEC and acceptable by NFC is carried with respect to the goods covered by or securing the Retail or Wholesale Contract and NFC’s interest is properly covered by such insurance; 
 d. that each of the Retail Contract, Lease or Wholesale Contract and the lien instrument securing the same arise from sales by ITEC in the
regular course of its business and is valid and genuine in all respects and enforceable against all persons by whom it purports to have been executed and that with respect to Retail Contracts which are retail installment contracts between ITEC and a
retail customer and Wholesale Contracts, ITEC has good and valid title to such Retail and Wholesale Contracts and the sale hereunder vests full and complete title to such Retail and Wholesale Contracts in NFC; 
 e. if a Retail Contract or Lease, that the lien instrument securing such Retail Contract or Lease constitutes a first and prior lien upon
the goods described therein and has been filed, recorded, or registered in the manner and within the time and at the place or places required by law to preserve the priority thereof; 
 f. if a Lease, the title to the Equipment is free and clear of any lien or encumbrance. 
 g. that the Retail Contract, Lease or Wholesale Contract and the lien instrument securing the same have been validly transferred to NFC,
and that no part of the indebtedness represented thereby is past due, and that no other default on the part of the debtor exists with respect thereto; and 
 h. that all requirements of or under the laws of any state applicable to the transaction out of which the Retail Contract, Lease or Wholesale Contract originated have been complied with; 
  

 15 

 2. ITEC warrants that the lien instrument securing each Wholesale Contract heretofore or hereafter
purchased from it by NFC constitutes, or will constitute, a first and prior lien upon the Equipment described in such Wholesale Contract, at the date of such Wholesale Contract and at the date of purchase of such Wholesale Contract by NFC. To the
extent that, under applicable state law, the execution and filing of a lien instrument or financing statement against a Dealer shall constitute a valid and perfected floating lien upon inventory securing Wholesale Contracts, and such execution and
filing has occurred and has not lapsed, then (notwithstanding anything to the contrary contained herein), this Agreement shall not require the execution, delivery or filing of additional lien instruments or financing statements. 
  

	F.	Conditions to Floor Plan Financing 

 NFC will
not enter into floor plan financing arrangements with a Dealer, nor accept Wholesale Contracts from a Dealer pursuant to such financing arrangements, until complete credit information on such Dealer has been furnished to NFC by ITEC and such Dealer
and its credit has been approved by NFC at NFC’s sole discretion. Such arrangements shall be subject to change by NFC at any time and from time to time at NFC’s sole discretion. Written notice of any such change will be given to ITEC. A
limit upon the total amount of credit or any extensions or renewals, or the amount of credit from any individual transaction that will be extended to any Dealer by NFC, may be established or changed by NFC at any time at NFC’s sole discretion.

  

	G.	Additional Financing by NFC 

 1. NFC also
agrees to offer to finance, to the extent it is able to provide such financing and upon terms and conditions satisfactory to NFC: 
 a. wholesale, retail sales and leasing of Equipment, through the Dealer channel; 
 b. Used Goods acquired by Dealers
in connection with sales of goods manufactured or distributed by ITEC and the retail sale and lease of such Used Goods by Dealers; 
 c. wholesale purchases of goods from sources other than ITEC by Dealers, when such goods are designed so that they can be used in connection with goods manufactured or sold by ITEC; and retail sales and lease of such goods made by Dealers
in connection with the sale of goods manufactured or distributed by ITEC; and 
 d. repair services for retail customers
rendered by Dealers. 
  

	H.	Collections 

 1. ITEC agrees that:

 a. so long as NFC may permit or desires ITEC to do so, ITEC will, with due diligence, use reasonable efforts and take all
necessary steps to collect when requested by NFC, sums owing and payable on Retail Contracts, Leases or Wholesale Contracts 

  

 16 

 
acquired by NFC pursuant to this Agreement, and will pay all expenses incurred by it in so doing provided, however it is understood that NFC has the primary
obligation to collect on such Retail Contracts, Leases and Wholesale Contracts; 
 b. except with the written approval of NFC,
ITEC will not extend the time for payment or renew any Retail Contract, Lease or Wholesale Contract acquired by NFC, and then only upon the condition that the goods covered by the lien securing that Retail Contract, Lease or Wholesale Contract or
additional security obtained, are in the opinion of NFC reasonably adequate for such extension or renewal; 
 c. it will
instruct the obligors on Retail Contracts, Leases and Wholesale Contracts sold to NFC to make payments on such contracts directly to NFC; 
 d. in the event that in the exercise of good business judgment it becomes necessary or desirable to repossess any Equipment covered by the lien securing any Retail Contract, Lease or Wholesale Contract acquired by NFC
hereunder, when requested by NFC, ITEC will, with due diligence, proceed to do so and to foreclose NFC’s lien upon such goods, or to otherwise acquire clear title thereto, and to resell the same to the best advantage of NFC, and also to resell
any Used Goods accepted in trade upon the resale of such repossessed Equipment. ITEC will also furnish to NFC such information, with respect to each repossession, as may be requested by NFC; 
 e. ITEC shall indemnify and hold NFC harmless from any and all claims of whatsoever nature asserted against NFC by any third party arising
out of any act done or omitted to be done, or proceedings taken or omitted pursuant to subparagraphs a., b., c., or d. of this paragraph 1 of Section H; provided, however, that NFC shall notify ITEC promptly of any such claims made or suit
instituted against it and the details thereof, and shall not pay or compromise any such claims or suits without the approval of ITEC, and ITEC shall be permitted to assume and direct the defense of any such suit by counsel of its own choosing;

 f. ITEC will permit agents of NFC to examine its books, records, and files relating to Retail Contracts, Leases or
Wholesale Contracts transferred to NFC hereunder at any and all reasonable times for the purpose of ascertaining, inspecting, and verifying any and all transactions in connection therewith, the status and condition thereof, and the collection of any
sums thereon, or any other matter pertaining to this Agreement; and 
 g. upon terms described infra at Article VI.,
Section A. and to the extent agreed upon from time to time by the parties, ITEC will repurchase from NFC ITEC Repossessions. 
 2. ITEC
agrees that any and all payments or collections at any time received or accepted by an office of ITEC in respect of any Retail Contract, Lease or Wholesale Contract acquired by NFC hereunder shall be reported to NFC in writing immediately upon
identification, and ITEC agrees to transfer any such funds to NFC on a daily basis in such manner as NFC may direct. 
  

 17 

 3. NFC agrees that any and all payments, collections, or any other amounts of any kind owed to ITEC that
are received or accepted by NFC shall be reported to ITEC in writing immediately upon identification and NFC agrees to transfer any such funds to ITEC on a daily basis in such manner as ITEC may direct. 
  

	I.	Form of Instruments 

 ITEC agrees that,
without the prior written approval of NFC by one of its officers, the form of instruments approved by NFC and now used by ITEC to create and evidence obligations will not be substantially changed by it. NFC, upon giving notice in writing to ITEC,
may specify a proposed change or changes relating to protection of NFC’s security interests, which change or changes shall be adopted by ITEC. ITEC also agrees that it will not, without the prior written approval of NFC by one of its officers,
change its finance charges or terms applicable to sales to retail or lease customers or its terms to its Dealers. 
  

	J.	Mandatory Repurchase Obligation 

 1. NFC may
from time to time advise ITEC that it will not purchase additional Wholesale Contracts from certain Dealers due to credit reasons or that specific authority for the transfer to it of any additional Wholesale Contracts is required. In the event that
ITEC sells and assigns Wholesale Contracts of NFC in violation of such instructions, ITEC shall repurchase such Wholesale Contracts for the unpaid principal balance thereof plus earned interest on the next Business Day after notice from NFC.

 2. In the event that ITEC breaches any of the warranties contained in Section E of this Article II relating to any Retail or Wholesale
Contract ITEC shall, upon notice from NFC of such breach, repurchase such Retail or Wholesale Contract for the Net Unpaid Balance thereof in the case of a Retail Contract, or for the unpaid principal balance thereof plus earned interest in the case
of a Wholesale Contract, each on the first Business Day after written notice of such breach shall have been given by NFC. 
  

	K.	Termination 

 1. Either party may terminate
this Article II by written notice given to the other party not less than ninety (90) days in advance of the time specified therein for such termination. In the event of the termination of this Article II of this Agreement, ITEC shall not, after
the date specified for such termination, make any further tender of Retail Contracts, Leases or Wholesale Contracts for purchase by NFC, but such termination shall not affect the respective rights and obligations of the parties hereto with respect
to transactions under this Article II of this Agreement occurring prior to the effective date of termination, and all rights and obligations of the parties under this Article II (as in effect immediately prior to such termination) with respect to
Retail Contracts, Leases, or Wholesale Contracts acquired by NFC and then remaining unpaid, shall continue in full force and effect, provided that neither party may exercise its rights to terminate so long as there remains outstanding any notes or
other securities of NFC in connection with the issue of which NFC has agreed with the holders thereof that the provisions of this Article II of this Agreement or any of them are to remain in effect. 
  

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	III.	Financing by NFC of ITEC National Account (Fleet) Sales on Account 

  

	A.	Sale and Purchase of Retail Accounts 

 1.
ITEC agrees to sell, assign, transfer and set-over to NFC all of its right, title and interest to the Retail Accounts, which are now in existence and for which NFC has given its credit approval and further agrees to sell, assign, transfer and
set-over to NFC all of its right, title and interest to all Retail Accounts hereafter created upon the terms and conditions set forth in this Agreement, in each case together with all of ITEC’s right, title and interest in and to any and all
security and guaranties for the payment of such Retail Accounts and all proceeds of any of the foregoing. NFC in turn agrees to purchase upon the terms and conditions set forth in this Agreement, such Retail Accounts and related rights now in
existence and further agrees to purchase such Retail Accounts and related rights hereafter arising as may be agreed upon from time to time. NFC may, at any time and from time to time, decline to purchase specific Retail Accounts upon written notice
to ITEC. 
 2. Each sold Retail Account and related right referred to in paragraph 1 of this Section A. of Article III shall become the
property of NFC immediately upon its creation. 
 3. ITEC agrees that its records, accounts and books will clearly identify, distinguish and
segregate the Retail Accounts sold pursuant to this Article III of this Agreement. 
 4. ITEC and NFC agree that the Retail Accounts are sold
to NFC without recourse except as expressly provided herein as to the customers’ ability to pay and that the collectibility of the Retail Accounts is not guaranteed by ITEC. 
  

	B.	Price to be Paid for Retail Accounts 

 1. The
purchase price for Retail Accounts sold hereunder and for additions thereto arising from ITEC sales to the obligors thereof shall be paid on the Retail Account Settlement Date for the Retail Account Settlement Period in which sold or in which
additions thereto were made. Such purchase price shall be the Face Amount thereof less any amounts paid to ITEC by NFC previously as a purchase price which is then still included in such Face Amount as of the Retail Account Closing Date of such
Retail Account Settlement Period, subject to adjustments provided herein. 
 2. If ITEC is required to reduce any Retail Account for any
reason arising out of its usual and ordinary course of business with the retail customers, ITEC will make such reductions in the Retail Accounts. 
 3. ITEC shall account to NFC for and pay to NFC within 2 Business Days the net amount of any such reductions which have been applied to the Retail Accounts. 
 4. From time to time credit balances may temporarily exist in the Retail Accounts of certain retail customers. It is understood that the purchase price of a Retail Account shall be reduced by the sum of such credit
balances outstanding on the respective Retail Account Closing Dates. 
  

 19 

 5. The purchase price for the Retail Accounts during any Retail Account Settlement Period may be
estimated by NFC if shipping data is not available. Adjustments to actual will be made as soon as the shipping data is available, but in no case later than the Current Account Settlement Date in the month immediately following the month in which the
estimation was made. 
 6. The purchase price for Retail Accounts during the last Retail Account Settlement Period of a calendar month shall
be estimated by ITEC for the last Business Day and any non-Business Days thereafter for such Retail Account Settlement Period. Final Adjustments to reflect actual activity shall be made through adjustments to the Current Account Statement.

  

	C.	Retail Account Service Charge 

 ITEC agrees
to pay NFC the Retail Account Service Charge as provided herein, which Retail Account Service Charge should not be construed as interest on a loan but rather as a payment for services rendered. The Retail Account Service Charge shall be accounted
for under the Current Account Statement and paid by ITEC to NFC on each Current Account Settlement Date. The Retail Account Service Charge shall be determined monthly by multiplying the Service Charge Rate, expressed as a monthly rate, with respect
to the relevant Retail Account Settlement Period by the average of the averages of sold Retail Accounts including additions thereto outstanding at the beginning and at the end of each Retail Account Settlement Period during a calendar month.

  

	D.	Ford Retail Account Service Charge 

 ITEC
agrees to pay NFC the Ford Retail Account Service Charge as provided herein, which Ford Retail Account Service Charge should not be construed as interest on a loan but rather as a payment for services rendered. The Ford Retail Account Service Charge
shall be accounted for under the Current Account Statement and paid by ITEC to NFC on each Current Account Settlement Date. The Ford Retail Account Service Charge shall be determined monthly by multiplying the Ford Service Charge Rate, expressed as
a monthly rate, with respect to the relevant Retail Account Settlement Period by the average of the averages of sold Ford Retail Accounts including additions thereto outstanding at the beginning and at the end of each Retail Account Settlement
Period during a calendar month. 
  

	E.	Settlements 

 On each Retail Account
Settlement Date, ITEC agrees to prepare and deliver to NFC a manually or mechanically signed Retail Account Settlement Statement, in such form as the parties may agree upon from time to time. Each Retail Account Settlement Statement shall set forth
a summary of information as to the Retail Accounts and additions thereto transferred, collections on Retail Accounts and other charges or credits as may be required by this Article III of this Agreement as of the Retail Account Closing Date.

  

 20 

	F.	Representations and Warranties of ITEC 

 1.
ITEC represents and warrants in respect of the Retail Accounts and additions thereto as follows: 
 a. Each Retail Account and
additions thereto represents a valid obligation of the related retail customer, arises from sales by ITEC in the regular course of its business, is evidenced by a purchase order or other writing received from the customer, and is enforceable against
all persons by whom it purports to have been created, 
 b. Each Retail Account and additions thereto was and will be acquired
by ITEC in the usual course of its business with retail customers and the amount owing on each Retail Account (including any amount owing with respect to any additions thereto) is and will be absolutely owing free of any defense, counter-claim,
set-off, or reduction; 
 c. All requirements of or under the laws of any state applicable to the transaction out of which
each Retail Account and any additions thereto was or has been originated have been complied with; 
 d. The Retail Accounts
and additions thereto are and shall be free and clear of all liens and encumbrances and ITEC has and will have the full authority and power to sell such Retail Accounts and additions thereto; 
 e. The sale of the Retail Accounts and each addition thereto hereunder vests and shall vest in NFC full and complete title to each Retail
Account and each addition thereto; and 
 f. Unless the terms have been approved in writing, Retail Account privileges are and
will be extended by ITEC to retail customers on terms that are not materially less favorable than dictated by reasonable credit practices within the industry for transactions of a generally similar character. 
 2. Before the extension of Retail Account privileges to customers, ITEC and NFC shall have completed a credit investigation and NFC shall have approved
the extension of Retail Account privileges and established a credit limit for each retail customer based on its reasonable business judgment. NFC’s criteria for establishing such Retail Account privileges and credit limit shall be reviewed from
time to time with ITEC. 
  

	G	Services and Undertaking of ITEC 

 Until
otherwise notified in writing by NFC of the revocation thereof, ITEC is hereby authorized and empowered, and ITEC agrees, at its own cost and expense, to: 
 1. Instruct obligors of Retail Accounts sold to NFC hereunder to make payments to lock boxes owned by NFC and to accept and hold in trust for NFC all remittances and collections received in payment on the Retail
Accounts acquired by NFC under this Agreement, to pay such remittances daily over to NFC, apply the remittances as received to the Retail Accounts to which they relate and keep such books and records necessary for this purpose; 
  

 21 

 2. With due diligence, use its reasonable efforts and take all necessary steps to collect all sums owing
and payable on the Retail Accounts; 
 3. Extend the time for payment or renew the obligations represented by the Retail Accounts, only if it
has received or obtained the prior approval of NFC; 
 4. Enforce collection of Retail Accounts at its cost and expense and in its own name,
through legal action if necessary, and accept reassignment of Retail Accounts to accomplish this purpose; 
 5. Allow or cause to be allowed
such adjustments on the Retail Accounts (whether or not accompanied by the return or rejection of any of the related New International Products) thereby as may be determined to be right and proper and consistent with ITEC’s business policies or
appropriate in order to facilitate the maximum collection of the Retail Accounts; 
 6. Except as approved by NFC, refrain from compromising
or settling any Retail Accounts for less than the full amount represented thereby, or from hindering, interfering or preventing, directly or indirectly, NFC’s collection efforts. 
 7. Receive and hold as an agent for NFC all sales slips, invoices, agreements, and other instruments pertaining to the Retail Accounts and deliver same
to NFC upon its request; provided, however, that while such documents are in custody of ITEC, ITEC is authorized to hold same for the benefit of NFC; 
 8. Keep complete and accurate records pertaining to the Retail Accounts and the collections made thereon, render monthly Retail Account statements to retail customers and at reasonable times permit NFC or its agents
or representatives to have access to and to take excerpts from same; 
 9. Prepare and deliver to NFC on each Retail Account Settlement Date
and the date of the final settlement written reports in forms required by NFC and furnish such information and reports as NFC may from time to time reasonably request relating to the Retail Accounts, including without limitation copies of audits and
other statistical data obtained or prepared by ITEC setting forth the status of the Retail Accounts, and permit NFC’s agents to examine its books, records, and files relating to the Retail Accounts at any and all reasonable times. For the
purposes of ascertaining, inspecting, and verifying any and all transactions in connection therewith, and the status and condition thereof, and the collection of any sums thereon, and any other matter pertaining to this Article III of this
Agreement; 
 10. ITEC agrees to indemnify and hold NFC harmless from any and all claims of whatsoever nature asserted against NFC by a
retail customer or any third party arising out of any act done or omitted to be done or proceeding taken or omitted pursuant to ITEC’s duties or responsibilities under this Article III of this Agreement or any claims by retail customers or
third parties arising out of the creation of the Retail Accounts or charges thereto; 
 11. ITEC agrees to indemnify and hold NFC harmless
from any and all claims, losses, expenses, costs, damage or causes of action arising out of the IMG Retail Accounts relating to any issue other than inability of the U.S Government to pay those Retail Accounts as they come due; 
  

 22 

 12. Render all accounting and internal auditing services including the safekeeping of the records and the
preparation and furnishing of such reports and copies of records as may be requested by NFC from time to time; 
 13. Make credit
investigations and reports on retail customers, which shall be furnished to NFC upon request by NFC; 
 14. Prepare and file in the name of,
and on behalf of NFC, all local, state and federal tax returns and other reports and returns as may be required by local, state or federal laws or regulations in connection with the Retail Accounts. 
 15. Permit such person or persons as may be designated by NFC to have custody and possession on behalf of NFC of all Retail Accounts and related
documents acquired by NFC, such persons to be accountable solely to NFC for the safekeeping of such instruments and documents; 
 16. Execute
and file, as requested by NFC, appropriate Uniform Commercial Code financing statements to properly evidence and perfect NFC’s ownership interest in the Retail Accounts; and 
 17. Provide all other functions and services that NFC may request from time to time. 
 Notwithstanding ITEC’s undertakings in this Section H of Article III to collect the Retail Accounts, NFC retains full rights to collect from the
Retail Account obligor directly and to change the terms of the Retail Account if necessary in order to enhance collectibility. 
  

	H.	Breach of Representations or Warranties 

 1.
Provided that the representations and warranties of ITEC contained in the Agreement are true with respect to any Retail Account sold to NFC hereunder for which NFC has given its prior credit approval, NFC shall bear the credit risk of such Retail
Account. 
 2. If i) any Retail Account acquired by NFC hereunder shall fail to comply with an one or more of the representations,
warranties, indemnities or other provisions of this Article III of this Agreement or ii) any Retail Account is transferred to NFC for which NFC credit approval has not been obtained or for which NFC’s credit limit has been exceeded, then
immediately upon demand of NFC, but no later than the Current Account Settlement Date for the month in which such failure or unauthorized transfer shall become known to NFC’s, ITEC shall pay to NFC through a charge to the Current Account
Statement the amount remaining unpaid on the Retail Account or, in the case of any Retail Account as to which clause (ii) applies for which NFC’s credit limit has been exceeded the portion of such unpaid amount which exceeds such credit
limit. Upon receipt of such payment, NFC agrees to reconvey the Retail Account or portion thereof to ITEC without recourse against NFC. 
  

 23 

	I.	Termination 

 Either party may terminate this
Article III by written notice given to the other party not less than ninety (90) days in advance of the time specified therein for such termination. In the event of termination of this Article III of this Agreement, ITEC shall not, after the
date specified for such termination, make any further tender of Retail Accounts for purchase by NFC. Such termination shall not affect the respective rights and obligations of the parties hereto with respect to transactions occurring prior to the
effective date of termination and all rights and obligations of the parties under this Article III (as in effect immediately prior to such termination) with respect to Retail Accounts acquired by NFC and then remaining unpaid shall continue in full
force and effect, provided that neither party may exercise its rights to terminate so long as there remain outstanding any notes or other securities of NFC in connection with the issue of which NFC has agreed with the holders thereof that the
provisions of this Article III of this Agreement or any of them are to remain in effect. 
  

	IV.	Financing by NFC of Dealer Open Accounts 

  

	A.	Sale and Purchase of Dealer Open Accounts 

 1. ITEC agrees to sell, assign and transfer to NFC all of its right, title and interest to all Dealer Open Accounts now in existence and for which NFC has given its credit approval and further agrees to sell, assign, and transfer to NFC all
of its right, title and interest to all Dealer Open Accounts hereafter arising upon the terms and conditions set forth in this Agreement in each case, together with all monies due under the Dealer Open Accounts, all Late Charges accrued or to be
accrued on the Dealer Open Accounts, all of ITEC’s right, title and interest in and to any and all security and guaranties for the payment of such Dealer Open Accounts and all proceeds of any of the foregoing. NFC in turn agrees to purchase
upon the terms and conditions set forth in this Agreement, such Dealer Open Accounts and related rights now in existence and further agrees to purchase such Dealer Open Accounts and related rights hereafter arising as may be agreed upon from time to
time. 
 2. Each Dealer Open Account and related right referred to in paragraph 1 of this subsection A shall become the property of NFC
immediately upon its creation. 
 3. ITEC agrees that its records, accounts and books will clearly identify, distinguish and segregate the
Dealer Open Accounts sold pursuant to this Article IV of this Agreement. 
 4. ITEC and NFC agree that the Dealer Open Accounts are sold to
NFC without recourse, except as expressly provided herein as to the Dealers’ ability to pay, and that the collectibility of the Dealer Open Accounts is not guaranteed by ITEC. 
 5. NFC may, from time to time, establish a credit limit for any Dealer Open Account or may decide not to purchase a particular Dealer Open Account for
credit reasons. Whenever such a credit limit is established or a decision is made by NFC not to purchase a Dealer Open Account and NFC so advises ITEC, ITEC shall repurchase the portion of any Dealer Open Account that exceeds NFC’s limitation
due to shipment(s) of parts by ITEC after such notice or shall repurchase the entire Dealer Open Account if previously notified that NFC would not purchase it. Settlement for such repurchases shall be made on the next Current Account Settlement Date
after notice by NFC. 
  

 24 

	B.	Price to be Paid for Dealer Open Accounts 

 1. The purchase price for the Dealer Open Accounts sold hereunder and for the additions thereto arising from sales of parts and services by ITEC to Dealers shall be the amount due on the Dealer Open Accounts less adjustments provided
herein, with settlement for the purchase price and Dealer Account Service Charge to be made from time to time as provided in this Article IV of this Agreement and in accordance with the appropriate Dealer Open Account Settlement Statement.

 2. NFC shall pay to ITEC for additions to the sold Dealer Open Accounts arising from the sale of service parts and services by ITEC daily
on the first Business Day following the date on which parts or services were sold to the related Dealers, unless the parties agree to a later payment date. Such agreement shall be in writing and signed by the ITEC and NFC Treasurers. 
 3. ITEC shall reduce Dealer Open Accounts for reasons arising out of its usual and ordinary course of business with Dealers, such as granting credit to
Dealers for warranty work performed by such Dealers on behalf of ITEC, with the exception, however, that deferred credit and volume discount may not be applied by ITEC as reductions to the Dealer Open Accounts. For purposes hereof, deferred credit
and volume discount shall mean discounts on goods purchased by Dealers in accordance with the terms of pricing policies established and announced from time to time by ITEC. ITEC shall pay NFC directly the net amount of any reductions which have been
applied to the Dealer Open Accounts pursuant to this paragraph. Payment to NFC for such reductions shall be made by ITEC weekly on the first Business Day after the week in such reductions were made. Such payments shall be accompanied by a report
identifying the Dealer Note to which the payment relates. 
 4. From time to time credit balances may temporarily exist in the Dealer Open
Accounts of certain Dealers. It is understood that the purchase price of the Dealer Open Accounts shall be reduced by the sum of such credit balances outstanding. 
  

	C.	Dealer Open Account Service Charge 

 ITEC
agrees to pay NFC the Dealer Open Account Service Charge as provided herein, which Dealer Open Account Service Charge shall not be construed as interest on a loan, but rather as a payment for services rendered. The Dealer Open Account Service Charge
shall be, for any calendar month, an amount equal to x) the applicable Service Charge Rate, expressed as a monthly rate, multiplied by y) the average daily sum of Dealer Open Accounts including additions thereto outstanding for such calendar month.
The Dealer Open Account Service Charge shall be charged through the Current Account Statement for the relevant month and paid on the relevant Current Account Settlement Date by ITEC to NFC. 
  

	D.	Settlements 

 1. For each sale occurring
during a month and at the end of a month ITEC agrees to prepare and deliver to NFC a Dealer Open Account Settlement Statement. The Dealer Open 

  

 25 

 
Account Settlement Statement shall set forth a summary of information as to the Dealer Open Accounts transferred, and additions to and collections on Dealer
Open Accounts and other charges or credits as may be required by this Agreement. The monthly Dealer Open Account Settlement Statement balance shall be determined by taking into consideration all previous settlements made during the month so that all
transactions during the month will be given effect, including but not limited to: 
 a. The amount of Dealer Open Accounts
sold during the month; 
 b. Total collections received on Dealer Open Accounts during the month which have been applied to
the Dealer Open Accounts; 
 c. The appropriate Dealer Open Account Service Charges; 
 d. Total reductions in Dealer Open Accounts for which ITEC is obligated to account for or to remit to NFC pursuant to Paragraph B of this
Article III of this Agreement; 
 e. Total late Charges collected during the month; and 
 f. Any other transactions which may occur during the month which may affect the monthly Dealer Open Account Settlement Statement.

 2. Each monthly Dealer Open Account Settlement Statement shall be generated as soon
as possible but not later than the 10th day of the next succeeding month. 
 3. Each Dealer Open Account Settlement Statement shall be supported by such information as is necessary to identify the Dealer Open Accounts and the
amounts due thereon. 
  

	E.	Representations and Warranties of ITEC 

 1.
ITEC represents and warrants in respect of the Dealer Open Accounts and additions thereto as follows: 
 a. Each Dealer Open
Account and additions thereto represent a valid and binding obligation of the Dealer; 
 b. Each Dealer Open Account and
additions thereto was and will be acquired by ITEC in the usual course of its business with Dealers and the amount owing on each Dealer Open Account (including any amount owing with respect to any addition thereto) is and will be absolutely owing
free of any defense, counter-claim, set-off, or reduction, except as provided in this Article IV of this Agreement. 
 c. All
requirements of or under the laws of any state applicable to the transaction out of which each Dealer Open Account and any addition thereto was or has been originated have been and will be complied with; 
  

 26 

 d. The Dealer Open Accounts and the additions thereto are and shall be free and clear of
all liens and encumbrances and ITEC has and will have the full authority and power to sell such Dealer Open Accounts and additions thereto; 
 e. The sale of the Dealer Open Accounts and the additions thereto vests and shall vest in NFC full and complete title to each Dealer Open Account and each addition thereto; and 
 f. ITEC has and shall have obtained NFC’s approval on all extensions of credit to Dealers in accordance with Section F, below.

  

	F.	Financial Responsibility of Account Debtors 

 Before the extension of Dealer Open Account privileges to Dealers by ITEC, NFC shall have completed a credit investigation and approved the extension of Dealer Open Account privileges to each Dealer based on its reasonable business
judgment. The criteria for establishing such Dealer Open Account privileges shall be reviewed from time to time between ITEC and NFC. 
  

	G.	Services and Undertakings of ITEC 

 1. Until
otherwise notified in writing by NFC of the revocation thereof, ITEC is hereby authorized and empowered, and ITEC hereby agrees, at its own cost and expense, and subject to NFC’s right of direction and control to receive and hold as an agent
for NFC all sales slips, invoices, agreements, and other instruments pertaining to Dealer Open Accounts and deliver same to NFC upon its request; provided, however, that while said documents are in custody of ITEC, ITEC is authorized to hold same
for the benefit of NFC. 
 2. ITEC shall not extend the time for payments of, renew the obligations represented by or compromise or settle
any Dealer Open Account except with the express written approval of NFC. 
 3. ITEC agrees to indemnify and hold NFC harmless from any and
all claims of whatsoever nature asserted against NFC by a Dealer or any third party arising out of any action done or omitted to be done or proceeding taken or omitted pursuant to ITEC’s duties or responsibilities under this Article IV of this
Agreement or any claims by Dealers or any third party arising out of the creation of the Dealer Open Accounts or charges thereto. 
  

	H.	Breach of Representations or Warranties 

 If
any Dealer Open Account acquired by NFC hereunder shall fail to comply with any one or more of the representations, warranties, indemnities or other provisions of this Article IV of this Agreement, then promptly upon demand by NFC, ITEC shall pay to
NFC the amount remaining unpaid on the Dealer Open Account. Upon receipt of such payment, NFC agrees to reconvey the Dealer Open Account to ITEC, without recourse, except as expressly provided herein. 
  

 27 

	I.	Termination 

 Either party may terminate this
Article IV of this Agreement by written notice given to the other parties not less than ninety (90) days in advance of the time specified therein for such termination. In the event of termination of this Article IV of this Agreement, ITEC shall
not, after the date specified for such termination, make any further tender of Dealer Open Accounts for purchase by NFC. Such termination shall not affect the respective rights and obligations of the parties hereto with respect to transactions
occurring prior to the effective date of termination and all rights and obligations of the parties hereto under this Article IV (as in effect immediately prior to such termination) with respect to Dealer Open Accounts acquired by NFC and then
remaining unpaid shall continue in full force and effect, provided that neither party may exercise its rights to terminate so long as there remain outstanding any notes or other securities of NFC in connection with the issue of which NFC has agreed
with the holders thereof that the provisions of this Article IV of this Agreement or any of them are to remain in effect. 
  

	V.	NFC/ITEC Retail Repossession Purchase and Remarketing Agreement 

  

	A.	ITEC Purchase of ITEC Repossessions 

 1. ITEC
shall be obligated to purchase each ITEC Repossession for the Estimated Fair Market Price unless, however, ITEC shall have breached any warranty made with respect to the related Retail Contract or Lease as set forth in the Retail Contract, Lease or
in this Agreement, or the sale thereof to NFC was made without credit approval or exceeded NFC’s credit limit, in which case ITEC shall have the obligations specified in Article II.J. with respect thereto, provided that nothing herein shall be
construed so as to prohibit a future agreement between the parties, upon the assignment or submission of an ITEC-sourced Retail Contract, that ITEC will purchase the subject Equipment in the event of repossession at a particular price. 

2. Upon tender by NFC of Equipment constituting an ITEC Repossession together with documents which transfer title to ITEC, ITEC shall promptly
determine in consultation with NFC the Estimated Fair Market Price of the ITEC Repossession and remit that amount or such other amount as is agreed upon pursuant to paragraph VI.A.1.) to NFC on the next Business Day. Upon such remittance and payment
of the ITEC Repossession Loss with respect thereto pursuant to paragraph VI.C.1. the ITEC Repossession shall become the property of ITEC. NFC shall make no warranty to ITEC upon such transfer except that NFC has placed no lien on the Equipment
constituting the ITEC Repossession other than the lien created under the Security and Pledge Agreement which lien shall automatically release as to such ITEC Repossession upon remittance by ITEC to NFC of the amounts due under this paragraph 2 and
paragraph C.1. hereof. 
  

	B.	ITEC Resale of Dealer Repossessions 

 1. ITEC
expressly makes no warranty or guarantee with respect to the collectibility of Retail Contracts or Leases sourced from Dealers. The agreement in this Section B to sell Dealer Repossessions is made to provide NFC with a viable remarketing structure
for its Dealer Repossessions. 
 2. ITEC agrees to sell Dealer Repossessions on consignment through its Used Truck Operations. Upon tender of
a Dealer Repossession to a Used Truck Center, ITEC and NFC shall 

  

 28 

 
evaluate the Equipment and the relevant market conditions. NFC shall determine: i) the Estimated Fair Market Price at which such Dealer Repossession will be
offered for sale, ii) what, if any, reconditioning should be performed and iii) whether the Equipment should be relocated. ITEC shall perform the required reconditioning and shall recoup its expenses therefore from the proceeds of the final sale.
ITEC is pre-authorized to perform up to $1,000 worth of reconditioning, or such other amount as may be agreed upon from time to time, on any Dealer Repossession so long as it in good faith deems such reconditioning to add a comparable value to the
Final Sale Price, or is necessary to sell the unit at fair market value. 
 3. In the event ITEC determines that the sale price for any
Dealer Repossession should be changed to consummate a resale of the Equipment ITEC shall obtain concurrence from NFC, which concurrence shall not unreasonably be withheld. 
 4. ITEC shall report the Final Sale Price to NFC and remit it to NFC within five Business Days after such sale. 
  

	C.	ITEC Guaranty 

 1. ITEC agrees to pay to NFC
the ITEC Repossession Loss for each ITEC Repossession on the next Business Day following the tender and delivery of such ITEC Repossession in accordance with the terms of Article VI., Section A.2. hereof, provided however that the amounts paid
hereunder and under the next following paragraph are subject to the Guaranty Limitation. 
 2. ITEC agrees to pay to NFC monthly, within ten
Business Days after the preceding month end, an amount equal to the Dealer Repossession Loss for such preceding month, provided however that ITEC’s obligations with respect to payments hereunder and the next preceding paragraph are subject to
the Guaranty Limitation and provided further that if a Dealer does not pay its Limited Liability Amount for a Dealer Repossession or if such Limited Liability Amount has been waived or reduced by NFC such amount shall be deemed a loss to NFC but
such failure to pay shall not discharge ITEC’s obligation to pay the Dealer Repossession Loss. 
  

	VI.	Reserve for Excessive ITEC Price Allowances to Dealers and Discontinued Model Allowances 

 No amendment to this Article VI which is adverse to NFC may be made except in conformance with the terms and conditions of the Revolver. 
  

	A.	Excessive Price Allowances 

 1. NFC will
establish a “Reserve” at the end of each month. The amount of the Reserve will depend on the extent to which Retail Sales Allowances actually paid with respect to New International Products during the 12-month period ending on the last day
of the preceding month, expressed as a percentage (the “Actual Percentage”) of the dealer net prices of all New International Products sold at retail during the same 12-month period, exceed 5.5% (the “Permitted Percentage”). The
amount, if any, by which the Actual Percentage exceeds the Permitted Percentage at any month end is referred to herein as the “Excess Discount”. 
  

 29 

 2. At the end of each month, ITEC will determine the Actual Percentage and the Excess Discount, if any,
for the 12-month period ending on the last day of the preceding month. If there is an Excess Discount, NFC will fund the Reserve by deducting an amount from the settlement payment that NFC would otherwise pay to ITEC on account of Wholesale
Contracts financed by NFC during such month with respect to New International Products (notwithstanding any previous agreement regarding NFC’s purchase of such Wholesale Contracts to the contrary. The amount so deducted from such settlement
shall be equal to the product of multiplying i) the balances of all Wholesale Contracts acquired by NFC during such month with respect to New International Products by ii) the Actual Percentage for such month. Notwithstanding the foregoing, in no
event with the amount so deducted from such settlement be greater than the amount which, when added to the Reserve, will cause the Reserve to equal the product of multiplying x) the unpaid balances of all Wholesale Contracts owned or serviced by NFC
at the end of such month with respect to New International Products by y) the Excess Discount. 
 3. If, at the end of any month, the amount
of the Reserve exceeds the result of multiplying x) and y) in the preceding paragraph, NFC will release the amount of such excess from the Reserve and pay it to ITEC as part of the Current Account Statement on the next Current Account Settlement
Date. 
  

	B.	Discontinued Models 

 If ITEC institutes any
discontinued model program whereby allowances are payable to Dealers whether or not retail sales are made, ITEC will bear the cost of such program by making payment to NFC (on the next Business Day after the amount of such allowances can reasonably
be determined) of the full amount of all such Dealer allowances with respect to New International Products underlying Wholesale Contracts financed by NFC (including Wholesale Contracts financed by NFC (including Wholesale Contracts sold by NFC to
the extent that the purchasers thereof have or will have a right to recover all or any part of the amount of such allowances from NFC or by charging a reserve or hold back in which NFC has an interest either direct or indirect, or by charging
against NFC’s servicing fees). 
  

	VII.	ITEC Repurchase of Dealer Inventory 

 No
amendment to this Article VII which is adverse to NFC may be made except in conformance with the terms and conditions of the Revolver. 
  

	A.	Terminated Dealers 

 If a Dealer’s
Inventory of New International Products has been repossessed by NFC or if a Dealer has been or shall be terminated and such Dealer (or NFC) tenders to ITEC any or all of the New International Products in such Dealer’s inventory, ITEC will
promptly settle with NFC the entire unpaid balances of the Wholesale Contracts relating to such tendered New International Products, regardless of whether such New International Products consist of current or discontinued models, as follows:

 1. New International Products and Optional Equipment 
  

	 	a.	Current models—As to current models of such New International Products which have not been used in a demonstration or rental program, ITEC will repurchase such New
International Products from the Dealer at the invoice price. ITEC will pay the amount of the invoice price to NFC when the repurchase is accounted for and NFC will credit the Wholesale Contract balance for such amount. 

  

 30 

	 	b.	Current Models From Demonstration or Rental Program—As to current models of such New International Products which have been used in a demonstration or rental program
ITEC will repurchase such New International Products from the Dealer at a negotiated price. ITEC will pay the amount of the negotiated price to NFC when the repurchase is accounted for and NFC will credit the Wholesale Contract balance for such
amount. The difference between the negotiated price and the Wholesale Contract balance will also be paid by ITEC to NFC when the repurchase is accounted for and will remain open on the Dealer’s note and inventory statement (coded chargeback)
and will be carried as an ITEC asset. NFC will make all reasonable efforts, exclusive of litigation, to collect the remaining Wholesale Contract balance from the Dealer. 

  

	 	c.	Model Changeover and Discontinued Models Used for Demonstration or Rental —As to model changeover and discontinued models used for demonstration or rental ITEC will
repurchase such New International Products from the Dealer at a negotiated price. ITEC will pay the amount of the negotiated price to NFC when the repurchase is accounted for and NFC will credit the Wholesale Contract balance for such amount. The
difference between the negotiated price and the Wholesale Contract balance will also be paid by ITEC to NFC when the repurchase is accounted for and will remain open on the Dealer’s note and inventory statement (coded chargeback) and will be
carried as an ITEC asset. NFC will make all reasonable efforts, exclusive of litigation, to collect the remaining Wholesale Contract balance from the Dealer. In the case of Equipment used in ITEC authorized rental programs whereby NFC had concurred
with the Dealer participation, NFC will not require payment by ITEC of any amounts representing uncollected past due rental/demonstration payments. 

 2. Dealer Used Goods—As to a terminated Dealer’s Used Goods NFC will accept responsibility for all losses incurred in liquidating such Used Goods unless the related Dealer obtained any of such Used
Goods from the Used Truck Organization under terms where ITEC assumes certain liabilities to NFC, in which case ITEC shall honor those obligations. 
 3. New and Used Vehicles and Optional Equipment Sold Out of Trust—NFC will accept responsibility for all losses incurred as a result of a Dealer selling Equipment securing Wholesale Contracts and failing to remit the proceeds of
such sale to NFC. 
  

	B.	Service Parts Repurchase 

 In the event a
Dealer terminates or is terminated under provisions of a ITEC Sales/Maintenance Agreement, ITEC agrees to honor its repurchase obligation of such Dealer’s service parts under such ITEC Sales/Maintenance Agreement and applicable state law and to
the extent that NFC has unpaid obligations due from such Dealer ITEC shall promptly remit the proceeds of such repurchase directly to NFC. 
  

 31 

	VIII.	Other Dealer Financing 

 A. Certain Dealers
lease their dealership properties from ITEC. It is agreed that ITEC may charge such Dealers their lease payments through such Dealers’ Dealer Open Accounts. In the event a Dealer does not pay its Dealer Open Account ITEC agrees to pay NFC for
any amount in such Dealer Open Account that represents such dealership lease payments within 5 Business Days of such non payment. 
 B. ITEC
has and in the future may offer computer and communication equipment and software programs to Dealers and NFC may finance the acquisition thereof. In the event a Dealer defaults on a loan from NFC for the purchase of such equipment or software, ITEC
shall purchase such equipment and software which is repossessed from the Dealer for the then outstanding note balance. 
  

	IX.	Miscellaneous Provisions  

  

	A.	Netting Permitted 

 Payments required to be
made under this Agreement by a party on any date may be netted against amounts owing to such party on such date by the payee. 
  

	B.	Accounting Principles 

 Where any accounting
determination or calculation is required to be made under this Agreement, such determination or calculation will be made in accordance with generally accepted accounting principles, consistently applied. 
  

	C.	Notices 

 Unless otherwise specified herein,
all notices, requests, demands or other communications given to any party hereunder shall be in writing (including facsimile transmission or similar writing) and shall be given to such party as follows: 
 To ITEC: 
 4201 Winfield Road

 Warrenville, IL 60555 
 Attn:
Treasurer 
 To NFC: 
 425 N. Martingale Road 
 Suite 1800 
 Schaumburg, IL 60173 
 Attn: Treasurer 
  

 32 

 Each such notice, request or other communication shall be effective i) if given by facsimile, when such facsimile is
transmitted to the party specified in this Section and the appropriate answerback is received, ii) if given by mail, 72 hours after such communication is deposited in the a) U.S. mails with first class postage prepaid, addressed as aforesaid or b)
intercompany mail, addressed as aforesaid, or iii) if given by any other means, when delivered at the address specified in this Section. 
  

	D.	No Waiver; Remedies Cumulative 

 No failure
on the part of any party hereto to exercise, no course of dealing with respect to, and no delay in exercising, any right, power or privilege under this Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any such
right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The remedies
provided herein are cumulative and not exclusive of any remedies provided by law. 
  

	E.	Amendments and Waivers 

 Any provision of
this Agreement may be amended or waived if, but only if, such amendment or waiver is in writing and is signed by both ITEC and NFC (having received any consent of the banks under the Revolver required herein or otherwise required to avoid a
“Default” under and as defined in the Revolver). 
  

	F.	Good Faith Determinations 

 Each
determination of an interest rate, cost or other rate or amount to be made by a party hereto hereunder shall be conclusive, if made reasonably and in good faith. 
  

	G.	Successors and Assigns 

 The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, except that a party may not assign or otherwise transfer any of its rights under this Agreement without the prior
written consent of the other. 
  

	H.	Headings 

 The table of contents and the
headings of Articles, Sections and paragraphs have been included herein for convenience only and should not be considered in interpreting this Agreement. 
  

	I.	Illinois Law 

 This Agreement shall be
construed in accordance with and governed by the laws of the State of Illinois. 
  

 33 

	J.	No Third Party Beneficiaries 

 The provisions
of this Agreement, including without limitation Article VII and VIII hereof, are expressly for the benefit of the banks that are parties to the Revolver. No undertaking of the parties in this Agreement is intended to create any rights in favor or
any person other than the parties to this Agreement and the banks which are parties to the Revolver. 
  

	K.	Severability 

 Any provision of this
Agreement which is prohibited or unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in
any other jurisdiction. 
  

	L.	Instructions to Account Debtor 

 Except as
permitted under Section 4.07(a) of the Security and Pledge Agreement, ITEC shall instruct all account debtors with respect to Retail Contracts, Retail Accounts, Wholesale Contracts and Wholesale Accounts and any other receivables acquired by
NFC pursuant to this Agreement to make payment directly to an account of NFC designated by NFC. If, pursuant to Section 4.07(a) of the Security and Pledge Agreement, any such payment is permitted to be made to ITEC, ITEC shall not cash or
deposit any such payment in any account of ITEC and shall forthwith deposit such payment into the applicable account of NFC in accordance with the Security and Pledge Agreement. Until so deposited, all such payments shall be held in trust by ITEC
for and as the property of NFC and shall not be commingled with any other funds or property of ITEC. ITEC acknowledges and agrees that the provisions of this paragraph are for the benefit of NFC and the Secured Parties under and as defined in the
Security and Pledge Agreement. 
  

	X.	Residual Guaranty 

 Whenever ITEC shall offer
a residual guaranty to an NFC leasing customer in order to fix the value of Equipment at the end of a lease term (an “ITEC Residual Guaranty”) NFC shall document such Residual Guaranty in writing to ITEC and ITEC shall pay such Residual
Guaranty to NFC or affiliate at the end of the lease term on the next Business Day following the delivery of the related Equipment (with properly assigned title) to ITEC. 
  

	XI	Provision of Credit and Other Suppport and Assistance 

 From time to time, and at such times as NFC shall find it necessary, desirable or convenient, NFC may request ITEC to supply NFC, either directly or through one of its affiliates, with credit or other support or
assistance in connection with any financing or other transaction entered into or to be entered into by NFC. The requested credit or other support or assistance may include, but shall not be limited to, the provision of capital contributions,
guaranties, loans, leases, purchase and sale or other transactions involving cash, capital stock, warrants, options, evidences of indebtedness or other securities, assets or property, either tangible or intangible, the provision of operational,
management, accounting or other services, reimbursement of fees related to NFC’s agreement to accept credit card payments on behalf of 

  

 34 

 
ITEC, or any combination of the foregoing, and may be supplied directly to NFC, indirectly to a third party or parties through NFC or directly to the third
party of parties by the entity, supplying such support. Neither ITEC nor any of its affiliates shall be under any obligation to supply or arrange any requested credit or other support or assistance, and the terms and conditions of any such credit or
other support or assistance shall be mutually agreeable to the parties involved; provided, however, that the provision of such credit or other support or assistance shall be on commercially reasonable terms which shall be no less favorable to NFC
than could have been obtained on an arm’s – length basis from an unrelated party. 
 Agreed to as of the date first written above. 
  

			
	 International Truck and Engine Corporation

		
	By:	 	 /s/ TM Endsley

	Title:	 	Senior Vice President and Treasurer
	
	Navistar Financial Corporation
		
	By:	 	 /s/ John V. Mulvaney, Sr.

	Title:	 	Vice President, CFO and Treasurer

  

 35The Pantry, Inc. 2007 Omnibus Plan

 Exhibit 10.1 
 The Pantry, Inc. 
 2007 Omnibus Plan 
 Effective March 29, 2007 

 Contents 
  

					
	 Article 1.
	 	Establishment, Purpose, and Duration	  	1
			
	 Article 2.
	 	Definitions	  	1
			
	 Article 3.
	 	Administration	  	5
			
	 Article 4.
	 	Shares Subject to This Plan and Maximum Awards	  	6
			
	 Article 5.
	 	Eligibility and Participation	  	8
			
	 Article 6.
	 	Stock Options	  	8
			
	 Article 7.
	 	Stock Appreciation Rights	  	10
			
	 Article 8.
	 	Restricted Stock and Restricted Stock Units	  	11
			
	 Article 9.
	 	Performance Units/Performance Shares	  	12
			
	 Article 10.
	 	Cash-Based Awards and Other Stock-Based Awards	  	13
			
	 Article 11.
	 	Transferability of Awards	  	14
			
	 Article 12.
	 	Performance Measures	  	14
			
	 Article 13.
	 	Nonemployee Director Awards	  	15
			
	 Article 14.
	 	Dividends and Dividend Equivalents	  	16
			
	 Article 15.
	 	Change of Control	  	16
			
	 Article 16.
	 	Rights of Participants	  	16
			
	 Article 17.
	 	Amendment, Modification, Suspension, and Termination	  	16
			
	 Article 18.
	 	Withholding	  	17
			
	 Article 19.
	 	Successors	  	17
			
	 Article 20.
	 	General Provisions	  	18

  

 1 

 The Pantry, Inc. 
 2007 Omnibus Plan 
 Effective March 29, 2007 
 Article 1. Establishment, Purpose, and Duration 
 1.1 Establishment. The Pantry, Inc. (hereinafter referred to as the
“Company”) hereby establishes an incentive compensation plan to be known as The Pantry, Inc. 2007 Omnibus Plan (hereinafter referred to as the “Plan”), as set forth in this document. 
 The Plan permits the grant of Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units,
Performance Shares, Performance Units, Covered Employee annual incentive awards, Cash-Based Awards, and Other Stock-Based Awards. 
 The Plan
shall become effective on the date that it is approved by the Company’s shareholders (the “Effective Date”) and shall remain in effect as provided in Section 1.3 hereof. 
 1.2 Purpose of the Plan. The purpose of the Plan is to advance the interests of the Company and its shareholders through Awards that give
Employees and Directors a personal stake in the Company’s growth, development and financial success. Awards under the Plan will motivate Employees and Directors to devote their best efforts to the business of the Company. They will also help
the Company attract and retain the services of Employees and Directors who are in a position to make significant contributions to the Company’s future success. 
 1.3 Duration of the Plan. Unless sooner terminated as provided herein, the Plan shall terminate ten (10) years from the Effective Date. After the Plan’s termination, no new Awards may be granted, but
Awards previously granted shall remain outstanding in accordance with their applicable terms and conditions, including the terms and conditions of the Plan. Notwithstanding the foregoing, no Incentive Stock Options may be granted more than ten
(10) years after the earlier of: (a) the date the Plan is adopted by the Board, or (b) the Effective Date. 
 1.4 No More
Grants Under Prior Plan. After the Effective Date, no more grants will be made under the Prior Plan. 
 Article 2. Definitions 
 Whenever used in this Plan, the following terms shall have the meanings set forth below, and when the meaning is intended, the initial letter of the word
shall be capitalized: 
 2.1 “Affiliate” shall mean any corporation or other entity (including, but not limited to, a
partnership or a limited liability company) that is affiliated with the Company through stock or equity ownership or otherwise, and is designated as an Affiliate for purposes of this Plan by the Committee. 
 2.2 “Annual Award Limit” or “Annual Award Limits” have the meaning set forth in Section 4.3. 
  

 1 

 2.3 “Award” means, individually or collectively, a grant under this Plan of
Nonqualified Stock Options, Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Performance Shares, Performance Units, Covered Employee annual incentive awards, Cash-Based Awards, or Other Stock-Based
Awards, in each case subject to the terms of this Plan. 
 2.4 “Award Agreement” means either: (a) a written agreement
entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this Plan, or (b) a written or electronic statement issued by the Company to a Participant describing the terms and
provisions of such Award, including any amendment or modification thereof. The Committee may provide for the use of electronic, Internet, or other nonpaper Award Agreements, and the use of electronic, Internet, or other nonpaper means for the
acceptance thereof and actions thereunder by a Participant. 
 2.5 “Beneficial Owner” or “Beneficial
Ownership” shall have the meaning ascribed to such terms in Rule 13d-3 promulgated under the Exchange Act. 
 2.6
“Board” or “Board of Directors” means the Board of Directors of the Company. 
 2.7 “Cash-Based
Award” means an Award, denominated in cash, granted to a Participant as described in Article 10. 
 2.8 “Change of
Control” means any of the following events: 
  

	 	(i)	 	Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), other than: (i) the
Company; (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company; (iii) a Company owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company; or (iv) the existing holders of capital stock of the Company as of the date hereof, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of
securities of the Company representing more than fifty percent (50%) of the combined voting power of the Company’s then outstanding securities. 

  

	 	(ii)	 	The consummation of a merger, share exchange, consolidation or reorganization involving the Company and any other Company or other entity as a result of which less than fifty
percent (50%) of the combined voting power of the Company or of the surviving or resulting Company or entity after such transaction is held in the aggregate by the holders of the combined voting power of the outstanding securities of the
Company immediately prior to such transaction. 

  

	 	(iii)	 	The stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the
Company’s assets. 

  

 2 

 2.9 “Code” means the U.S. Internal Revenue Code of 1986, as amended from time to time.
For purposes of this Plan, references to sections of the Code shall be deemed to include references to any applicable regulations thereunder and any successor or similar provision. 
 2.10 “Committee” means the Compensation Committee of the Board or a subcommittee thereof, or any other committee designated by the Board
to administer this Plan. The members of the Committee shall be appointed from time to time and shall serve at the discretion of the Board. If the Committee does not exist or cannot function for any reason, the Board may take any action under the
Plan that would otherwise be the responsibility of the Committee. 
 2.11 “Company” means The Pantry, Inc., a Delaware
corporation, and any successor thereto as provided in Article 19 herein. 
 2.12 “Covered Employee” means any key
Employee who is or may become a “Covered Employee,” as defined in Code Section 162(m), and who is designated, either as an individual Employee or class of Employees, by the Committee within the shorter of: (a) ninety
(90) days after the beginning of the Performance Period, or (b) twenty-five percent (25%) of the Performance Period has elapsed, as a “Covered Employee” under this Plan for such applicable Performance Period. 
 2.13 “Director” means any individual who is a member of the Board of Directors of the Company. 
 2.14 “Effective Date” has the meaning set forth in Section 1.1. 
 2.15 “Employee” means any individual designated as an employee of the Company, its Affiliates, and/or its Subsidiaries on the payroll
records thereof. An Employee shall not include any individual during any period he or she is classified or treated by the Company, Affiliate, and/or Subsidiary as an independent contractor, a consultant, or any employee of an employment, consulting,
or temporary agency or any other entity other than the Company, Affiliate, and/or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified as, a common-law employee
of the Company, Affiliate, and/or Subsidiary during such period. 
 2.16 “Exchange Act” means the Securities Exchange Act of
1934, as amended from time to time, or any successor act thereto. 
 2.17 “Fair Market Value” or “FMV”
means a price that is based on the closing price of a Share reported on the NASDAQ Stock Market LLC or other established stock exchange (or exchanges) on the applicable date, or an average of trading days, as determined by the Committee in its
discretion. Unless the Committee determines otherwise, Fair Market Value shall be deemed to be equal to the reported closing price of a Share on the most recent date on which Shares were publicly traded. In the event Shares are not publicly traded
at the time a determination of their value is required to be made hereunder, the determination of their Fair Market Value shall be made by the Committee in such manner as it deems appropriate. 
 2.18 “Freestanding SAR” means an SAR that is granted independently of any Options, as described in Article 7. 
  

 3 

 2.19 “Full-Value Award” means an Award other than in the form of an ISO, NQSO, or SAR,
and which is settled by the issuance of Shares. 
 2.20 “Grant Price” means the price established at the time of grant of an
SAR pursuant to Article 7, used to determine whether there is any payment due upon exercise of the SAR. 
 2.21 “Incentive Stock
Option” or “ISO” means an Option to purchase Shares granted under Article 6 to an Employee and that is designated as an Incentive Stock Option that is intended to meet the requirements of Code Section 422 or any
successor provision. 
 2.22 “Insider” shall mean an individual who is, on the relevant date, an officer or Director of the
Company, or a more than ten percent (10%) Beneficial Owner of any class of the Company’s equity securities that is registered pursuant to Section 12 of the Exchange Act, as determined by the Board in accordance with
Section 16 of the Exchange Act. 
 2.22 “Nonemployee Director” means a Director who is not an Employee. 
 2.23 “Nonemployee Director Award” means any NQSO, SAR, or Full-Value Award granted, whether singly, in combination, or in tandem, to a
Participant who is a Nonemployee Director pursuant to such applicable terms, conditions, and limitations as the Board or Committee may establish in accordance with this Plan. 
 2.24 “Nonqualified Stock Option” or “NQSO” means an Option that is not intended to meet the requirements of Code
Section 422, or that otherwise does not meet such requirements. 
 2.25 “Option” means an Incentive Stock Option or a
Nonqualified Stock Option, as described in Article 6. 
 2.26 “Option Price” means the price at which a Share may be
purchased by a Participant pursuant to an Option. 
 2.27 “Other Stock-Based Award” means an equity-based or equity-related
Award not otherwise described by the terms of this Plan, granted pursuant to Article 10. 
 2.28 “Participant” means any
eligible individual as set forth in Article 5 to whom an Award is granted. 
 2.29 “Performance-Based Compensation” with
respect to Covered Employees, means compensation under an Award that is intended to satisfy the requirements of Code Section 162(m) for certain performance-based compensation. Notwithstanding the foregoing, nothing in this Plan shall be
construed to mean that an Award which does not satisfy the requirements for performance-based compensation under Code Section 162(m) does not constitute performance-based compensation for other purposes, including Code Section 409A.

 2.30 “Performance Measures” means measures as described in Article 12 on which the performance goals are based and which
are approved by the Company’s shareholders pursuant to this Plan in order to qualify Awards as Performance-Based Compensation. 
  

 4 

 2.31 “Performance Period” means the period of time during which the performance goals
must be met in order to determine the degree of payout and/or vesting with respect to an Award. 
 2.32 “Performance Share”
means an Award under Article 9 herein and subject to the terms of this Plan, denominated in Shares, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been
achieved. 
 2.33 “Performance Unit” means an Award under Article 9 herein and subject to the terms of this Plan,
denominated in units, the value of which at the time it is payable is determined as a function of the extent to which corresponding performance criteria have been achieved. 
 2.34 “Period of Restriction” means the period when Restricted Stock or Restricted Stock Units are subject to a substantial risk of
forfeiture (based on the passage of time, the achievement of performance goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Article 8. 
 2.35 “Person” shall have the meaning ascribed to such term in Section 3(a)(9) of the Exchange Act and used in Sections 13(d) and
14(d) thereof, including a “group” as defined in Section 13(d) thereof. 
 2.36 “Plan” means the The Pantry,
Inc. 2007 Omnibus Plan. 
 2.37 “Plan Year” means the calendar year. 
 2.38 “Prior Plan” means the 1999 Stock Option Plan, as amended and restated as of August 2, 2006 
 2.39 “Restricted Stock” means an Award of Shares granted to a Participant pursuant to Article 8. 
 2.40 “Restricted Stock Unit” means an Award granted to a Participant pursuant to Article 8, except no Shares are actually awarded to the
Participant on the date of grant. 
 2.41 “Share” means a share of common stock of the Company, par value $.01 per share.

 2.42 “Stock Appreciation Right” or “SAR” means an Award, designated as an SAR, pursuant to the terms of
Article 7 herein. 
 2.43 “Subsidiary” means any corporation or other entity, whether domestic or foreign, in which the
Company has or obtains, directly or indirectly, a proprietary interest of more than fifty percent (50%) by reason of stock ownership or otherwise. 
 Article 3. Administration 
 3.1 General. The Plan shall be administered by the Committee, subject to this Article 3
and the other provisions of this Plan. The Committee may employ attorneys, consultants, accountants, agents, and other individuals or entities, any of which may be an Employee, and the Committee, the Company, and its officers and Directors shall be
entitled to rely upon the advice, opinions, or valuations of any such persons. All actions taken and all interpretations and determinations made by the Committee shall be final and binding on the Participants, the Company, and all other interested
individuals. 
  

 5 

 3.2 Authority of the Committee. The Committee is authorized and empowered to administer the Plan
and, subject to the provisions of the Plan, shall have full power to (i) designate Employees and Directors to be recipients of Awards; (ii) determine the type and size of Awards; (iii) determine the terms and conditions of Awards;
(iv) certify satisfaction of performance goals for purposes of satisfying the requirements of Code Section 162(m); (v) construe and interpret the terms of the Plan and any Award Agreement or other instrument entered into under the
Plan; (vi) establish, amend, or waive rules and regulations for the Plan’s administration; (vii) subject to the provisions of Section 4.4., authorize conversion or substitution under the Plan of any or all outstanding option or
other awards held by service providers of an entity acquired by the Company on terms determined by the Committee (without regard to limitations set forth in Section 6.3 and 7.5); (viii) subject to the provisions of Articles 15 and 17,
amend the terms and conditions of any outstanding Award; (ix) grant Awards as an alternative to, or as the form of payment for, grants or rights earned or due under compensation plans or similar arrangements of the Company; and (x) make
any other determination and take any other action that it deems necessary or desirable for the administration of the Plan. 
 3.3
Delegation. To the extent permitted by law and applicable rules of a stock exchange, the Committee may, by resolution, authorize one or more officers of the Company to do one or both of the following on the same basis as can the Committee:
(a) designate Employees to be recipients of Awards; and (b) determine the type and size of any such Awards; provided, however: (i) the authority to make Awards to any Nonemployee Director or to any Employee who is considered an
Insider may not be delegated; (ii) the resolution providing such authorization shall set forth the total number of Shares and Awards such officer(s) may grant; and (iii) the officer(s) shall report periodically to the Committee regarding
the nature and scope of the Awards granted pursuant to the authority delegated. 
 Article 4. Shares Subject to This Plan and Maximum Awards

 4.1 Number of Shares Available for Awards. 
  

	 	(a)	 	Subject to adjustment as provided in Section 4.4 herein, the maximum number of Shares available for issuance to Participants under this Plan (the “Share
Authorization”) shall be: 

  

	 	(i)	Two million four hundred thousand (2,400,000) Shares, plus 

  

	 	(ii)	The number of Shares subject to outstanding awards under the Prior Plan as of the Effective Date, that, after the Effective Date, cease to be outstanding other than by reason of
their having been exercised for, or settled in, vested and nonforfeitable Shares. 

  

	 	(b)	 	The maximum number of Shares of the Share Authorization that may be issued pursuant to Full Value Awards under this Plan shall be one million two hundred thousand (1,200,000).

  

 6 

	 	(c)	 	The maximum number of Shares of the Share Authorization that may be issued pursuant to ISOs under this Plan shall be two million four hundred thousand Shares (2,400,000).

 4.2 Share Usage. Shares covered by an Award shall only be counted as used to the extent they are actually issued;
provided, however, that the full number of Stock Appreciation Rights granted that are to be settled by the issuance of Shares shall be counted against the number of Shares available for award under the Plan, regardless of the number of Shares
actually issued upon settlement of such Stock Appreciation Rights. Further, any Shares withheld to satisfy tax witholding obligations on Awards issued under the Plan and Shares tendered to pay the exercise price of Awards under the Plan will no
longer be eligible to be returned as available Shares under the Plan. Any Shares related to Awards which terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, are settled in cash in lieu of Shares, or
are exchanged with the Committee’s permission, prior to the issuance of Shares, for Awards not involving Shares, shall be available again for grant under this Plan. The Shares available for issuance under this Plan may be authorized and
unissued Shares or treasury Shares. 
 4.3 Annual Award Limits. Unless and until the Committee determines that an Award to a Covered
Employee shall not be designed to qualify as Performance-Based Compensation, the following limits (each an “Annual Award Limit” and, collectively, “Annual Award Limits”) shall apply to grants of such Awards under this Plan:

  

	 	(a)	 	Options: The maximum aggregate number of Shares subject to Options granted in any one Plan Year to any one Participant shall be two hundred fifty thousand (250,000).

  

	 	(b)	 	SARs: The maximum number of Shares subject to Stock Appreciation Rights granted in any one Plan Year to any one Participant shall be two hundred fifty thousand (250,000).

  

	 	(c)	 	Restricted Stock or Restricted Stock Units: The maximum aggregate grant with respect to Awards of Restricted Stock or Restricted Stock Units in any one Plan Year to any one
Participant shall be one hundred fifty thousand (150,000). 

  

	 	(d)	 	Performance Units or Performance Shares: The maximum aggregate Award of Performance Units or Performance Shares that a Participant may receive in any one Plan Year shall be
one hundred fifty thousand (150,000) Shares if such Award is payable in Shares, or equal to the value of one hundred fifty thousand (150,000) Shares if such Award is payable in cash or property other than Shares, determined as of the
earlier of the vesting or the payout date, as applicable. 

  

	 	(e)	 	Cash-Based Awards: The maximum aggregate amount awarded or credited with respect to Cash-Based Awards to any one Participant in any one Plan Year may not exceed five million
dollars ($5,000,000). 

  

	 	(f)	 	Other Stock-Based Awards. The maximum aggregate grant with respect to Other Stock-Based Awards pursuant to Section 10.2 in any one Plan Year to any one Participant shall
be one hundred fifty thousand (150,000). 

  

 7 

 4.4 Adjustments in Authorized Shares. In the event of any corporate event or transaction
(including, but not limited to, a change in the Shares of the Company or the capitalization of the Company) such as a merger, consolidation, reorganization, recapitalization, separation, partial or complete liquidation, stock dividend, stock split,
reverse stock split, split up, spin-off, or other distribution of stock or property of the Company, combination of Shares, exchange of Shares, dividend in-kind, or other like change in capital structure, number of outstanding Shares or distribution
(other than normal cash dividends) to shareholders of the Company, or any similar corporate event or transaction, the Committee, in order to prevent dilution or enlargement of Participants’ rights under this Plan, shall substitute or adjust the
number and kind of Shares that may be issued under this Plan or under particular forms of Awards, the number and kind of Shares subject to outstanding Awards, the Option Price or Grant Price applicable to outstanding Awards, the Annual Award Limits,
or other value determinations applicable to outstanding Awards, as determined by the Committee in its sole discretion. 
 The Committee, in
its sole discretion, may also make appropriate adjustments to any other terms of any outstanding Awards under this Plan to reflect such changes or distributions, including modifications of performance goals and changes in the length of Performance
Periods. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan. 
 Subject to the provisions of Article 17 and notwithstanding anything else herein to the contrary, without affecting the number of Shares reserved or available hereunder, the Committee may authorize the issuance or
assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or stock, or reorganization upon such terms and conditions as it may deem appropriate (including, but not limited to, a conversion of equity
awards into Awards under this Plan in a manner consistent with paragraph 53 of FASB Interpretation No. 44), subject to compliance with the rules under Code Sections 422 and 424, as and where applicable. 
 Article 5. Eligibility and Participation 
 5.1
Eligibility. Individuals eligible to participate in this Plan include all Employees and Directors. 
 5.2 Actual Participation.
Subject to the provisions of this Plan, the Committee may, from time to time in its sole discretion, select from the individuals eligible to participate, those to whom Awards shall be granted. 
 Article 6. Stock Options 
 6.1 Grant of
Options. Subject to the terms and provisions of this Plan, Options may be granted to Participants in such number, and upon such terms, and at any time and from time to time as shall be determined by the Committee, in its sole discretion,
provided that ISOs may be granted only to eligible Employees of the Company or of any parent or subsidiary corporation (as permitted under Code Sections 422 and 424). However, an Employee who is employed by an Affiliate and/or Subsidiary and is
subject to Code Section 409A may only be granted Options to the extent the Affiliate and/or Subsidiary is part of the Company’s consolidated group for United States federal tax purposes. 
  

 8 

 6.2 Award Agreement. Each Option grant shall be evidenced by an Award Agreement that shall specify
the Option Price, the maximum duration of the Option, the number of Shares to which the Option pertains, the conditions upon which an Option shall become vested and exercisable, and such other provisions as the Committee shall determine which are
not inconsistent with the terms of this Plan. The Award Agreement also shall specify whether the Option is intended to be an ISO or an NQSO. 
 6.3 Option Price. The Option Price for each grant of an Option under this Plan shall be determined by the Committee in its sole discretion and shall be specified in the Award Agreement; provided, however, the Option Price on the date
of grant must be at least equal to one hundred percent (100%) of the FMV of the Shares as determined on the date of grant. 
 6.4 Term of Options. Each Option granted to a Participant shall expire at such time as the
Committee shall determine at the time of grant; provided, however, no Option shall be exercisable later than the tenth (10th) anniversary date of its grant. 
 6.5 Exercise of Options. Options granted under this Article 6 shall
be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which terms and restrictions need not be the same for each grant or for each Participant. 
 Options granted under this Article 6 shall be exercised by the delivery of a notice of exercise to the Company or an agent designated by the Company in a
form specified or accepted by the Committee setting forth the number of Shares with respect to which the Option is to be exercised, accompanied by full payment for the Shares, or by complying with any alternative exercise procedures the Committee
may authorize. 
 6.6 Payment. A condition of the issuance of the Shares as to which an Option shall be exercised shall be the payment
of the Option Price. The Option Price of any Option shall be payable to the Company in full either: (a) in cash or its equivalent; (b) by tendering (either by actual delivery or attestation) previously acquired Shares having an aggregate
Fair Market Value at the time of exercise equal to the Option Price (provided that except as otherwise determined by the Committee, the Shares that are tendered must have been held by the Participant for at least six (6) months (or such other
period, if any, as the Committee may permit) prior to their tender to satisfy the Option Price if acquired under this Plan or any other compensation plan maintained by the Company or have been purchased on the open market); (c) by a cashless
(broker-assisted) exercise; (d) by a combination of (a), (b), and/or (c); or (e) any other method approved or accepted by the Committee in its sole discretion. 
 Subject to any governing rules or regulations, as soon as practicable after receipt of written notification of exercise and full payment (including satisfaction of any applicable tax withholding), the Company shall
deliver to the Participant evidence of book entry Shares, or upon the Participant’s request, Share certificates in an appropriate amount based upon the number of Shares purchased under the Option(s). 
 Unless otherwise determined by the Committee, all payments under all of the methods indicated above shall be paid in United States dollars. 

6.7 Restrictions on Share Transferability. The Committee may impose such restrictions on any Shares acquired pursuant to the exercise of an
Option granted under this Article 6 as it may deem 

  

 9 

 
advisable, including, without limitation, minimum holding period requirements, restrictions under applicable federal securities laws, under the requirements
of any stock exchange or market upon which such Shares are then listed and/or traded, or under any blue sky or state securities laws applicable to such Shares. 
 6.8 Termination of Employment/Service. Each Participant’s Award Agreement shall set forth the extent to which the Participant shall have the right to exercise the Option following termination of the
Participant’s employment or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement
entered into with each Participant, need not be uniform among all Options issued pursuant to this Article 6, and may reflect distinctions based on the reasons for termination. 
 Article 7. Stock Appreciation Rights 
 7.1 Grant of SARs. Subject to the terms and conditions
of this Plan, Freestanding SARs may be granted to Participants at any time and from time to time as shall be determined by the Committee. However, an Employee who is employed by an Affiliate and/or Subsidiary and is subject to Code Section 409A
may only be granted SARs to the extent the Affiliate and/or Subsidiary is part of the Company’s consolidated group for United States federal tax purposes. 
 Subject to the terms and conditions of this Plan, the Committee shall have complete discretion in determining the number of SARs granted to each Participant and, consistent with the provisions of this Plan, in
determining the terms and conditions pertaining to such SARs. 
 The Grant Price for each grant of a Freestanding SAR shall be determined by
the Committee and shall be specified in the Award Agreement; provided, however, the Grant Price on the date of grant must be at least equal to one hundred percent (100%) of the FMV of the Shares as determined on the date of grant. 

7.2 SAR Agreement. Each SAR Award shall be evidenced by an Award Agreement that shall specify the Grant Price, the term of the SAR, and such
other provisions as the Committee shall determine. 
 7.3 Term of SAR. The term
of an SAR granted under this Plan shall be determined by the Committee, in its sole discretion, and except as determined otherwise by the Committee and specified in the SAR Award Agreement, no SAR shall be exercisable later than the tenth
(10th) anniversary date of its grant. 
 7.4 Exercise of Freestanding SARs. Freestanding SARs may be exercised upon whatever terms and conditions the Committee, in its sole discretion,
imposes. 
 7.5 Settlement of SAR Amount. Upon the exercise of an SAR, a Participant shall be entitled to receive payment from the
Company in an amount determined by multiplying: 
  

	 	(a)	 	The excess of the Fair Market Value of a Share on the date of exercise over the Grant Price; by 

  

	 	(b)	 	The number of Shares with respect to which the SAR is exercised. 

  

 10 

 At the discretion of the Committee, the payment upon SAR exercise may be in cash, Shares, or any
combination thereof, or in any other manner approved by the Committee in its sole discretion. The Committee’s determination regarding the form of SAR payout shall be set forth in the Award Agreement pertaining to the grant of the SAR.

 7.6 Termination of Employment/Service. Each Award Agreement shall set forth the extent to which the Participant shall have the
right to exercise the SAR following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole
discretion of the Committee, shall be included in the Award Agreement entered into with Participants, need not be uniform among all SARs issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination. 
 7.7 Other Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares received upon exercise of an SAR
granted pursuant to this Plan as it may deem advisable or desirable. These restrictions may include, but shall not be limited to, a requirement that the Participant hold the Shares received upon exercise of an SAR for a specified period of time.

 Article 8. Restricted Stock and Restricted Stock Units 
 8.1 Grant of Restricted Stock or Restricted Stock Units. Subject to the terms and provisions of this Plan, the Committee, at any time and from time to time, may grant Shares of Restricted Stock and/or
Restricted Stock Units to Participants in such amounts as the Committee shall determine. Restricted Stock Units shall be similar to Restricted Stock except that no Shares are actually awarded to the Participant on the date of grant. 
 8.2 Restricted Stock or Restricted Stock Unit Agreement. Each Restricted Stock and/or Restricted Stock Unit grant shall be evidenced by an Award
Agreement that shall specify the Period(s) of Restriction, the number of Shares of Restricted Stock or the number of Restricted Stock Units granted, and such other provisions as the Committee shall determine. 
 8.3 Other Restrictions. The Committee shall impose such other conditions and/or restrictions on any Shares of Restricted Stock or Restricted Stock
Units granted pursuant to this Plan as it may deem advisable including, without limitation, a requirement that Participants pay a stipulated purchase price for each Share of Restricted Stock or each Restricted Stock Unit, restrictions based upon the
achievement of specific performance goals, time-based restrictions on vesting following the attainment of the performance goals, time-based restrictions, and/or restrictions under applicable laws or under the requirements of any stock exchange or
market upon which such Shares are listed or traded, or holding requirements or sale restrictions placed on the Shares by the Company upon vesting of such Restricted Stock or Restricted Stock Units. 
 To the extent deemed appropriate by the Committee, the Company may retain the certificates representing Shares of Restricted Stock in the Company’s
possession until such time as all conditions and/or restrictions applicable to such Shares have been satisfied or lapse. 
 Except as
otherwise provided in this Article 8, Shares of Restricted Stock covered by each Restricted Stock Award shall become freely transferable by the Participant after all conditions and restrictions applicable to such Shares have been satisfied or lapse
(including satisfaction of 

  

 11 

 
any applicable tax withholding obligations), and Restricted Stock Units shall be paid in cash, Shares, or a combination of cash and Shares as the Committee,
in its sole discretion, shall determine. 
 8.4 Certificate Legend. In addition to any legends placed on certificates pursuant
to Section 8.3, each certificate representing Shares of Restricted Stock granted pursuant to this Plan may bear a legend such as the following or as otherwise determined by the Committee in its sole discretion: 
 “The transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) of
the The Pantry, Inc. 2007 Omnibus Plan and a Restricted Stock Agreement. Copies of such Plan and Agreement are on file at the offices of The Pantry, Inc., 1801 Douglas Drive, Sanford, NC.” 
 8.5 Voting Rights. Unless otherwise determined by the Committee and set forth in a Participant’s Award Agreement, to the extent
permitted or required by law, as determined by the Committee, Participants holding Shares of Restricted Stock granted hereunder may be granted the right to exercise full voting rights with respect to those Shares during the Period of Restriction. A
Participant shall have no voting rights with respect to any Restricted Stock Units granted hereunder. 
 8.6 Termination of
Employment/Service. Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Restricted Stock and/or Restricted Stock Units following termination of the Participant’s employment with or
provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each
Participant, need not be uniform among all Shares of Restricted Stock or Restricted Stock Units issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination. 
 8.7 Section 83(b) Election. The Committee may provide in an Award Agreement that the Award of Restricted Stock is conditioned upon the
Participant making or refraining from making an election with respect to the Award under Code Section 83(b). If a Participant makes an election pursuant to Code Section 83(b) concerning a Restricted Stock Award, the Participant shall be
required to file promptly a copy of such election with the Company. 
 Article 9. Performance Units/Performance Shares 
 9.1 Grant of Performance Units/Performance Shares. Subject to the terms and provisions of this Plan, the Committee, at any time and from
time to time, may grant Performance Units and/or Performance Shares to Participants in such amounts and upon such terms as the Committee shall determine. 
 9.2 Value of Performance Units/Performance Shares. Each Performance Unit shall have an initial value that is established by the Committee at the time of grant. Each Performance Share shall have an
initial value equal to the Fair Market Value of a Share on the date of grant. The Committee shall set performance goals in its discretion which, depending on the extent to which they are met, will determine the value and/or number of Performance
Units/Performance Shares that will be paid out to the Participant. 
  

 12 

 9.3 Earning of Performance Units/Performance Shares. Subject to the terms of this Plan, after
the applicable Performance Period has ended, the holder of Performance Units/Performance Shares shall be entitled to receive payout on the value and number of Performance Units/Performance Shares earned by the Participant over the Performance
Period, to be determined as a function of the extent to which the corresponding performance goals have been achieved. 
 9.4 Form and
Timing of Payment of Performance Units/Performance Shares. Payment of earned Performance Units/Performance Shares shall be as determined by the Committee and as evidenced in the Award Agreement. Subject to the terms of this Plan, the
Committee, in its sole discretion, may pay earned Performance Units/Performance Shares in the form of cash or in Shares (or in a combination thereof) equal to the value of the earned Performance Units/Performance Shares at the close of the
applicable Performance Period, or as soon as practicable after the end of the Performance Period. Any Shares may be granted subject to any restrictions deemed appropriate by the Committee. The determination of the Committee with respect to the form
of payout of such Awards shall be set forth in the Award Agreement pertaining to the grant of the Award. 
 9.5 Termination of
Employment/Service. Each Award Agreement shall set forth the extent to which the Participant shall have the right to retain Performance Units and/or Performance Shares following termination of the Participant’s employment with or provision
of services to the Company, its Affiliates, and/or its Subsidiaries, as the case may be. Such provisions shall be determined in the sole discretion of the Committee, shall be included in the Award Agreement entered into with each Participant, need
not be uniform among all Awards of Performance Units or Performance Shares issued pursuant to this Plan, and may reflect distinctions based on the reasons for termination. 
 Article 10. Cash-Based Awards and Other Stock-Based Awards 
 10.1 Grant of Cash-Based
Awards. Subject to the terms and provisions of the Plan, the Committee, at any time and from time to time, may grant Cash-Based Awards to Participants in such amounts and upon such terms as the Committee may determine. 
 10.2 Other Stock-Based Awards. The Committee may grant other types of equity-based or equity-related Awards not otherwise described by the terms
of this Plan (including the grant or offer for sale of unrestricted Shares) in such amounts and subject to such terms and conditions as the Committee shall determine. Such Awards may involve the transfer of actual Shares to Participants, or payment
in cash or otherwise of amounts based on the value of Shares, and may include, without limitation, Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States. 
 10.3 Value of Cash-Based and Other Stock-Based Awards. Each Cash-Based Award shall specify a payment amount or payment range as determined by the
Committee. Each Other Stock-Based Award shall be expressed in terms of Shares or units based on Shares, as determined by the Committee. The Committee may establish performance goals in its discretion. If the Committee exercises its discretion to
establish performance goals, the number and/or value of Cash-Based Awards or Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the performance goals are met. 
 10.4 Payment of Cash-Based Awards and Other Stock-Based Awards. Payment, if any, with respect to a Cash-Based Award or any Other Stock-Based Award
shall be made in accordance with the terms of the Award, in cash or Shares as the Committee determines. 
  

 13 

 10.5 Termination of Employment/Service. The Committee shall determine the extent to which
the Participant shall have the right to receive Cash-Based Awards or Other Stock-Based Awards following termination of the Participant’s employment with or provision of services to the Company, its Affiliates, and/or its Subsidiaries, as the
case may be. Such provisions shall be determined in the sole discretion of the Committee, such provisions may be included in an agreement entered into with each Participant, but need not be uniform among all Awards of Cash-Based Awards or Other
Stock-Based Awards issued pursuant to the Plan, and may reflect distinctions based on the reasons for termination. 
 Article 11. Transferability of
Awards 
 11.1 Transferability. Except as provided in Section 11.2 below, during a Participant’s lifetime, his or
her Awards shall be exercisable only by the Participant. Awards shall not be transferable other than by will or the laws of descent and distribution; no Awards shall be subject, in whole or in part, to attachment, execution, or levy of any kind; and
any purported transfer in violation hereof shall be null and void. The Committee may establish such procedures as it deems appropriate for a Participant to designate a beneficiary to whom any amounts payable or Shares deliverable in the event of, or
following, the Participant’s death may be provided. 
 11.2 Committee Action. The Committee may, in its discretion,
determine that notwithstanding Section 11.1, any or all Awards (other than ISOs) shall be transferable to and exercisable by such transferees, and subject to such terms and conditions, as the Committee may deem appropriate; provided, however,
no Award may be transferred for value (as defined in the General Instructions to Form S-8). 
 Article 12. Performance Measures 
 12.1 Performance Measures. The performance goals upon which the payment or vesting of an Award to a Covered Employee that is intended to
qualify as Performance-Based Compensation shall be limited to the following Performance Measures: 
  

	 	(a)	 	Net earnings or net income (before or after taxes); 

  

	 	(b)	 	Earnings per share; 

  

	 	(c)	 	Net sales or revenue growth; 

  

	 	(d)	 	Net operating profit; 

  

	 	(e)	 	Return measures (including, but not limited to, return on assets, capital, invested capital, equity, sales, or revenue); 

  

	 	(f)	 	Cash flow (including, but not limited to, operating cash flow, free cash flow, cash generation, cash flow return on equity, and cash flow return on investment);

  

	 	(g)	 	Earnings before or after taxes, interest, depreciation, and/or amortization; 

  

	 	(h)	 	Gross or operating margins; 

  

	 	(i)	 	Productivity ratios; 

  

	 	(j)	 	Share price (including, but not limited to, growth measures and total shareholder return); 

  

	 	(k)	 	Expense targets; 

  

	 	(l)	 	Margins; 

  

	 	(m)	 	Operating efficiency; 

  

	 	(n)	 	Market share; 

  

	 	(o)	 	Customer satisfaction; 

  

	 	(p)	 	Unit volume; 

  

 14 

	 	(q)	 	Working capital targets and change in working capital; and 

  

	 	 (r)
	 	 Economic value added or EVA® (net operating profit after tax minus the sum of capital multiplied by the cost of capital). 

 Any Performance Measure(s) may be used to measure the performance of the Company, Subsidiary, and/or Affiliate as a whole or any business unit of the
Company, Subsidiary, and/or Affiliate or any combination thereof, as the Committee may deem appropriate, or any of the above Performance Measures as compared to the performance of a group of comparator companies, or published or special index that
the Committee, in its sole discretion, deems appropriate, or the Company may select Performance Measure (j) above as compared to various stock market indices. The Committee also has the authority to provide for accelerated vesting of any Award
based on the achievement of performance goals pursuant to the Performance Measures specified in this Article 12. 
 12.2 Evaluation of
Performance. The Committee may provide in any such Award that any evaluation of achievement of Performance Measures may include or exclude any of the following events that occur during a Performance Period: (a) asset write-downs,
(b) litigation or claim judgments or settlements, (c) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (d) any reorganization and restructuring programs,
(e) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual
report to shareholders for the applicable year, (f) acquisitions or divestitures, and (g) foreign exchange gains and losses. To the extent such inclusions or exclusions affect Awards to Covered Employees, they shall be prescribed in a form
that meets the requirements of Code Section 162(m) for deductibility. 
 12.3 Adjustment of Performance-Based Compensation.
Awards that are intended to qualify as Performance-Based Compensation may not be adjusted upward. The Committee shall retain the discretion to adjust such Awards downward, either on a formula or discretionary basis, or any combination, as the
Committee determines. 
 12.4 Committee Discretion. In the event that applicable tax and/or securities laws change to permit Committee
discretion to alter the governing Performance Measures without obtaining shareholder approval of such changes, the Committee shall have sole discretion to make such changes without obtaining shareholder approval. In addition, in the event that the
Committee determines that it is advisable to grant Awards that shall not qualify as Performance-Based Compensation, the Committee may make such grants without satisfying the requirements of Code Section 162(m) and base vesting on Performance
Measures other than those set forth in Section 12.1. 
 Article 13. Nonemployee Director Awards 
 From time to time, the Board shall set the amount(s) and type(s) of equity awards that shall be granted to all Nonemployee Directors on a periodic,
nondiscriminatory basis pursuant to the Plan, as well as any additional amount(s), if any, to be awarded, also on a periodic, nondiscriminatory basis, based on each of the following: (i) the number of Board committees on which a Nonemployee
Director serves; (ii) service of a Nonemployee Director as the chair of a Board committee; (iii) service of a Nonemployee Director as Chairman of the Board; or (iv) the initial selection or appointment of an individual to the Board as
a Nonemployee Director. Subject to the foregoing, the Board shall grant such Awards to Nonemployee Directors, as it shall from time to time determine. 
  

 15 

 Article 14. Dividends and Dividend Equivalents 
 Any Participant selected by the Committee may be granted dividends or dividend equivalents based on the dividends declared on Shares that are subject to
any Award, to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests, or expires, as determined by the Committee. The dividends or dividend equivalents may be
subject to any limitations and/or restrictions determined by the Committee. Such dividend equivalents shall be converted to cash or additional Shares by such formula and at such time and subject to such limitations as may be determined by the
Committee. 
 Article 15. Change of Control 
 Notwithstanding any other provision of the Plan to the contrary, unless the Committee specifies otherwise in an Award Agreement, in the event of a Change of Control: (i) any Options and Stock Appreciation Rights which are outstanding
immediately prior to the date such Change of Control is determined to have occurred, and which are not then exercisable and vested, shall become fully exercisable and vested to the full extent of the original grant; (ii) the restrictions and
deferral limitations applicable to any Restricted Stock shall lapse, and such Restricted Stock shall become free of all restrictions and limitations and become fully vested and transferable to the full extent of the original grant; and
(iii) the restrictions and deferral limitations and other conditions applicable to any other Awards under the Plan shall lapse, and such other Awards shall become free of all restrictions, limitations or conditions and become fully vested and
transferable to the full extent of the original grant. 
 Article 16. Rights of Participants 
 16.1 Employment/Service. Nothing in this Plan or an Award Agreement shall interfere with or limit in any way the right of the Company, its
Affiliates, and/or its Subsidiaries to terminate any Participant’s employment or service on the Board or to the Company at any time or for any reason not prohibited by law, nor confer upon any Participant any right to continue his employment or
service as a Director for any specified period of time. 
 Neither an Award nor any benefits arising under this Plan shall constitute an
employment contract with the Company, its Affiliates, and/or its Subsidiaries and, accordingly, subject to Articles 3 and 17, this Plan and the benefits hereunder may be terminated at any time in the sole and exclusive discretion of the
Committee without giving rise to any liability on the part of the Company, its Affiliates, and/or its Subsidiaries. 
 16.2
Participation. No individual shall have the right to be selected to receive an Award under this Plan or, having been so selected, to be selected to receive a future Award. 
 16.3 Rights as a Shareholder. Except as otherwise provided herein or in any Award Agreement, a Participant shall have none of the rights of
a shareholder with respect to Shares covered by any Award until the Participant becomes the record holder of such Shares. 
 Article 17. Amendment,
Modification, Suspension, and Termination 
 17.1 Amendment, Modification, Suspension, and Termination. Subject to
Section 17.3, the Committee may, at any time and from time to time, alter, amend, modify, suspend, or terminate this Plan and any Award Agreement in whole or in part; provided, however, that without the prior approval of the
Company’s shareholders and except as provided in Section 4.4, Options or SARs 

  

 16 

 
issued under this Plan will not be repriced, replaced, or regranted through cancellation, or by lowering the Option Price of a previously granted Option or
the Grant Price of a previously granted SAR, and no material amendment of this Plan shall be made without shareholder approval if shareholder approval is required by law, regulation, or stock exchange rule. 
 17.2 Adjustment of Awards Upon the Occurrence of Certain Unusual or Nonrecurring Events. The Committee may make adjustments in the terms and
conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events, other than those described in Section 4.4 hereof, affecting the Company or the financial statements of the Company or of changes in applicable
laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under
this Plan. The determination of the Committee as to the foregoing adjustments, if any, shall be conclusive and binding on Participants under this Plan. 
 17.3 Awards Previously Granted. Notwithstanding any other provision of this Plan to the contrary (other than Section 17.4), no termination, amendment, suspension, or modification of this Plan or an Award
Agreement shall adversely affect in any material way any Award previously granted under this Plan, without the written consent of the Participant holding such Award. 
 17.4 Amendment to Conform to Law. Notwithstanding any other provision of this Plan to the contrary, the Board of Directors may amend the Plan or an Award Agreement, to take effect retroactively or otherwise, as
deemed necessary or advisable for the purpose of conforming the Plan or an Award Agreement to any present or future law relating to plans of this or similar nature (including, but not limited to, Code Section 409A), and to the administrative
regulations and rulings promulgated thereunder. 
 Article 18. Withholding 
 18.1 Tax Withholding. The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, the
minimum statutory amount to satisfy federal, state, and local taxes, domestic or foreign, required by law or regulation to be withheld with respect to any taxable event arising as a result of this Plan. 
 18.2 Share Withholding. With respect to withholding required upon the exercise of Options or SARs, upon the lapse of restrictions on Restricted
Stock and Restricted Stock Units, or upon the achievement of performance goals related to Performance Shares, or any other taxable event arising as a result of an Award granted hereunder, Participants may elect, subject to the approval of the
Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax that could be imposed on the
transaction. All such elections shall be irrevocable, made in writing, and signed by the Participant, and shall be subject to any restrictions or limitations that the Committee, in its sole discretion, deems appropriate. 
 Article 19. Successors 
 All obligations of the
Company under this Plan with respect to Awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or
substantially all of the business and/or assets of the Company. 
  

 17 

 Article 20. General Provisions 
 20.1 Forfeiture Events. 
  

	 	(a)	 	The Committee may specify in an Award Agreement that the Participant’s rights, payments, and benefits with respect to an Award shall be subject to reduction, cancellation,
forfeiture, or recoupment upon the occurrence of certain specified events, in addition to any otherwise applicable vesting or performance conditions of an Award. Such events may include, but shall not be limited to, termination of employment for
cause, termination of the Participant’s provision of services to the Company, Affiliate, and/or Subsidiary, violation of material Company, Affiliate, and/or Subsidiary policies, breach of noncompetition, confidentiality, or other restrictive
covenants that may apply to the Participant, or other conduct by the Participant that is detrimental to the business or reputation of the Company, its Affiliates, and/or its Subsidiaries. 

  

	 	(b)	 	If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement
under the securities laws, if the Participant knowingly or grossly negligently engaged in the misconduct, or knowingly or grossly negligently failed to prevent the misconduct, or if the Participant is one of the individuals subject to automatic
forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002, the Participant shall reimburse the Company the amount of any payment in settlement of an Award earned or accrued during the twelve (12) month period following the first
public issuance or filing with the United States Securities and Exchange Commission (whichever just occurred) of the financial document embodying such financial reporting requirement. 

 20.2 Legend. The certificates for Shares may include any legend that the Committee deems appropriate to reflect any restrictions on transfer of
such Shares. 
 20.3 Gender and Number. Except where otherwise indicated by the context, any masculine term used herein also shall
include the feminine, the plural shall include the singular, and the singular shall include the plural. 
 20.4 Severability. In the
event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal or invalid provision
had not been included. 
 20.5 Requirements of Law. The granting of Awards and the issuance of Shares under this Plan shall be subject
to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 20.6 Delivery of Title. The Company shall have no obligation to issue or deliver evidence of title for Shares issued under this Plan prior to: 
  

	 	(a)	 	Obtaining any approvals from governmental agencies that the Company determines are necessary or advisable; and 

  

 18 

	 	(b)	 	Completion of any registration or other qualification of the Shares under any applicable national or foreign law or ruling of any governmental body that the Company determines to be
necessary or advisable. 

 20.7 Inability to Obtain Authority. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been obtained. 
 20.8 Investment Representations. The Committee
may require any individual receiving Shares pursuant to an Award under this Plan to represent and warrant in writing that the individual is acquiring the Shares for investment and without any present intention to sell or distribute such Shares.

 20.9 Employees Based Outside of the United States. Notwithstanding any provision of this Plan to the contrary, in order to comply
with the laws in other countries in which the Company, its Affiliates, and/or its Subsidiaries operate or have Employees or Directors, the Committee, in its sole discretion, shall have the power and authority to: 
  

	 	(a)	 	Determine which Affiliates and Subsidiaries shall be covered by this Plan. 

  

	 	(b)	 	Determine which Employees or Directors outside the United States are eligible to participate in this Plan. 

  

	 	(c)	 	Modify the terms and conditions of any Award granted to Employees or Directors outside the United States to comply with applicable foreign laws. 

  

	 	(d)	 	Establish subplans and modify exercise procedures and other terms and procedures, to the extent such actions may be necessary or advisable. Any subplans and modifications to Plan
terms and procedures established under this Section 20.9 by the Committee shall be attached to this Plan document as appendices. 

  

	 	(e)	 	Take any action, before or after an Award is made, that it deems advisable to obtain approval or comply with any necessary local government regulatory exemptions or approvals.

 Notwithstanding the above, the Committee may not take any actions hereunder, and no Awards shall be granted that would
violate applicable law. 
 20.10 Uncertificated Shares. To the extent that this Plan provides for issuance of certificates to reflect
the transfer of Shares, the transfer of such Shares may be effected on a noncertificated basis, to the extent not prohibited by applicable law or the rules of any stock exchange. 
 20.11 Unfunded Plan. Participants shall have no right, title, or interest whatsoever in or to any investments that the Company and/or its
Subsidiaries and/or its Affiliates may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, shall create or be construed to create a trust of any kind, or a
fiduciary relationship 

  

 19 

 
between the Company and any Participant, beneficiary, legal representative, or any other individual. To the extent that any individual acquires a right to
receive payments from the Company, its Subsidiaries, and/or its Affiliates under this Plan, such right shall be no greater than the right of an unsecured general creditor of the Company, a Subsidiary, or an Affiliate, as the case may be. All
payments to be made hereunder shall be paid from the general funds of the Company, a Subsidiary, or an Affiliate, as the case may be, and no special or separate fund shall be established and no segregation of assets shall be made to assure payment
of such amounts except as expressly set forth in this Plan. 
 20.12 No Fractional Shares. No fractional Shares shall be issued
or delivered pursuant to this Plan or any Award. The Committee shall determine whether cash, Awards, or other property shall be issued or paid in lieu of fractional Shares or whether such fractional Shares or any rights thereto shall be forfeited or
otherwise eliminated. 
 20.13 Retirement and Welfare Plans. Neither Awards made under this Plan nor Shares or cash paid
pursuant to such Awards, except pursuant to Covered Employee annual incentive awards, may be included as “compensation” for purposes of computing the benefits payable to any Participant under the Company’s or any Subsidiary’s or
Affiliate’s retirement plans (both qualified and nonqualified) or welfare benefit plans unless such other plan expressly provides that such compensation shall be taken into account in computing a Participant’s benefit. 
 20.14 Deferred Compensation. Except for any deferral feature build into an Award of Restricted Stock Units, no deferral of compensation (as
defined under Code Section 409A or guidance thereto) is intended under this Plan. Notwithstanding this intent, if any Award would be considered deferred compensation as defined under Code Section 409A, and if this Plan fails to meet the
requirements of Code Section 409A with respect to such Award, then such Award shall be null and void. However, the Committee may permit deferrals of compensation pursuant to the terms of a Participant’s Award Agreement, a separate plan, or
a subplan which meets the requirements of Code Section 409A and any related guidance. Additionally, to the extent any Award is subject to Code Section 409A, notwithstanding any provision herein to the contrary, the Plan does not permit the
acceleration of the time or schedule of any distribution related to such Award, except as permitted by Code Section 409A, the regulations thereunder, and/or the Secretary of the United States Treasury. 
 20.15 Nonexclusivity of This Plan. The adoption of this Plan shall not be construed as creating any limitations on the power of the Board
or Committee to adopt such other compensation arrangements as it may deem desirable for any Participant. 
 20.16 No Constraint on
Corporate Action. Nothing in this Plan shall be construed to: (a) limit, impair, or otherwise affect the Company’s or a Subsidiary’s or an Affiliate’s right or power to make adjustments, reclassifications,
reorganizations, or changes of its capital or business structure, or to merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets; or, (b) limit the right or power of the Company or a Subsidiary
or an Affiliate to take any action which such entity deems to be necessary or appropriate. 
 20.17 Governing Law. The Plan and
each Award Agreement shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of this Plan to the substantive law of another
jurisdiction. Unless otherwise provided in the Award Agreement, recipients of an Award under this Plan are deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Delaware to resolve any and all issues that may
arise out of or relate to this Plan or any related Award Agreement. 
  

 20 

 20.18 Indemnification. Subject to requirements of Delaware law, each individual who is or shall
have been a member of the Board, or a committee appointed by the Board, or an officer of the Company to whom authority was delegated in accordance with Article 3, shall be indemnified and held harmless by the Company against and from any loss, cost,
liability, or expense that may be imposed upon or reasonably incurred by the Participant in connection with or resulting from any claim, action, suit, or proceeding to which the Participant may be a party or in which the Participant may be involved
by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by the Participant in settlement thereof, with the Company’s approval, or paid by the Participant in satisfaction of any judgment in
any such action, suit, or proceeding against the Participant, provided the Participant shall give the Company an opportunity, at its own expense, to handle and defend the same before the Participant undertakes to handle and defend it on the
Participant’s own behalf, unless such loss, cost, liability, or expense is a result of the Participant’s own willful misconduct or except as expressly provided by statute. 
 The foregoing right of indemnification shall not be exclusive of any other rights of indemnification to which such individuals may be entitled under the
Company’s Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or any power that the Company may have to indemnify them or hold them harmless. 
  

 21

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