Document:

EX-10.24

 EXHIBIT 10.24 
 JOHN B. SANFILIPPO & SON, INC. 
 2008 EQUITY INCENTIVE PLAN, AS
AMENDED 
 PREAMBLE 
 John B. Sanfilippo & Son, Inc., a Delaware corporation (together with its successors and assigns, the “Company”), hereby establishes the John B. Sanfilippo & Son, Inc. 2008
Equity Incentive Plan, as amended (the “Plan”) to provide the Company with an effective means of attracting, retaining, and motivating directors, officers, key employees and other service providers, and to provide them with incentives to
enhance the growth and profitability of the Company. 
 ARTICLE 1 DEFINITIONS 

In this Plan, except where the context otherwise indicates, the following definitions and rules apply: 

 

	 	1.1	Agreement means either (i) 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 (ii) a written or electronic statement issued by the Company to a Participant describing the terms and provisions of such Award, in each case, including any amendment or modification thereof. The Committee may
provide for the use of electronic, internet or other non-paper Award Agreements, and the use of electronic, internet or other non-paper means for the acceptance thereof and actions thereunder by a Participant. 

 

	 	1.2	Approval Date shall mean the date the Plan is approved by the holders of a majority of the combined voting power of the Common Stock and Class A Stock of
the Company present, or represented, and entitled to vote at a meeting duly called and held. 

  

	 	1.3	Award means any award or benefit granted under the Plan, including, without limitation, a grant of Common Stock, Options, Restricted Stock, Stock Appreciation
Rights or Restricted Stock Units. 

  

	 	1.4	Board means the Board of Directors of the Company. 

  

	 	1.5	Change in Control shall have the meaning set forth in Section 10.1. 

 

	 	1.6	Class A Stock means the Class A Common Stock, $.01 par value per share, of the Company. 

	 	1.7	Code means the Internal Revenue Code of 1986, as amended, including any regulations promulgated thereunder. A reference to any provision of the Code shall
include reference to any successor provision of the Code. 

  

	 	1.8	Committee means the Compensation Committee of the Board, or any successor thereto (references herein to the Committee shall be deemed to include the
Subcommittee, as applicable). In the event there is no valid Committee, the entire Board shall be the Committee. 

  

	 	1.9	Common Stock means the Common Stock, par value $.01 per share, of the Company, and any other shares into which such Common Stock shall thereafter be exchanged by
reason of a recapitalization, merger, consolidation, split-up, combination, exchange of shares or the like. 

  

	 	1.10	Company shall have the meaning set forth in the Preamble. 

  

	 	1.11	Covered Employee means a Participant who, as of the date of vesting and/or payout of an Award, as applicable, is a “covered employee” as defined by
Code Section 162(m). 

  

	 	1.12	Date of Exercise means the date on which the Company receives notice of the exercise of an Option or a Stock Appreciation Right in accordance with the terms
hereof. 

  

	 	1.13	Date of Grant means the date on which an Award is granted by the Committee (or such later date as specified in advance by the Committee) or, in the case of an
Award granted to an Non-Employee Director, the date on which such Award is approved by the Board (or such later date as specified in advance by the Board). 

 

	 	1.14	Effective Date shall have the meaning set forth in Section 2.1. 

 

	 	1.15	Employee means any individual classified or treated as an employee of the Company 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 and/or its Subsidiaries as an independent contractor, a consultant, or any employee of an employment, consulting, or temporary agency or any other entity
other than the Company and/or its Subsidiaries, 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 and/or its Subsidiary during
such period. 

  

	 	1.16	Exchange Act means the Securities Exchange Act of 1934, as amended. 

 

	 	1.17	Exercise Price shall have the meaning set forth in Section 6.2. 

  
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	 	1.18	Fair Market Value of a Share means: 

  

	 	(a)	If on the applicable date the Common Stock is listed for trading on a national securities exchange, including the NASDAQ Global Market, the closing price of the Common
Stock on such exchange on the applicable date, or if no sales of Common Stock shall have occurred on such exchange on the applicable date, the closing price of the Common Stock on such exchange on the next preceding date on which there were such
sales; 

  

	 	(b)	If on the applicable date the Common Stock is not listed for trading on a national securities exchange, including the NASDAQ Global Market, the mean between the closing
bid price and the closing ask price of the Common Stock as otherwise reported by the NASDAQ Stock Market LLC or its successors or assigns with respect to the applicable date or, if the closing bid and ask prices for the Common Stock shall not have
been so reported with respect to the applicable date, on the next preceding date with respect to which such bid and ask prices were so reported; or 

  

	 	(c)	If on the applicable date the Common Stock is not listed for trading on a national securities exchange, including the NASDAQ Global Market, or otherwise reported by the
NASDAQ Stock Market LLC or its successors or assigns, the fair market value of a Share as determined by the Committee. 

  

	 	1.19	Family Members shall have the meaning set forth in Section 1.32(a). 

 

	 	1.20	For Cause shall have the meaning set forth in Section 9.3. 

  

	 	1.21	Insider means a director, officer or beneficial owner of more than 10% of the Common Stock for purposes of Section 16 of the Exchange Act.

  

	 	1.22	Non-Employee Director means any individual who is a director of the Company and who is not also an employee of either the Company, any Subsidiary or any of their
respective affiliates. 

  

	 	1.23	Nonstatutory Stock Option means an Option granted under the Plan that does not qualify as an incentive stock option under Section 422 of the Code.

  

	 	1.24	Option means a right to purchase Common Stock granted under the Plan. 

 

	 	1.25	Option Period means the period during which an Option may be exercised. 

 

	 	1.26	Option Price means the price per Share at which an Option may be exercised. 

 

	 	1.27	Original Directors shall have the meaning set forth in Section 10.1(c). 

 

	 	1.28	Participant means an individual with an outstanding Award. 

  

	 	1.29	Performance-Based Compensation means “performance-based compensation” as that term is used in Code Section 162(m). 

 

	 	1.30	Performance Measures shall have the meaning set forth in Section 6.6(b). 

  
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	 	1.31	Permanent Disability means a mental or physical condition which, in the opinion of the Committee, renders a Participant unable or incompetent to carry out the
job responsibilities which such Participant held or tasks to which such Participant was assigned at the time the disability was incurred and which is expected to be permanent or for an indefinite period. With respect to any Award subject to Code
Section 409A, the Committee may not find that a Permanent Disability exists with respect to the applicable Participant unless, in the Committee’s opinion, such Participant is also “disabled” within the meaning of Code
Section 409A. 

  

	 	1.32	Permitted Holder means: 

  

	 	(a)	Jasper B. Sanfilippo (“Jasper”), Mathias A. Valentine, (“Mathias”), a spouse of Jasper, a spouse of Mathias, any lineal descendant of Jasper or any
lineal descendant of Mathias (collectively referred to as the “Family Members”); 

  

	 	(b)	a legal representative of a deceased or disabled Family Member’s estate, provided that such legal representative is a Family Member; 

 

	 	(c)	a trustee of any trust of which all the beneficiaries (and any donees and appointees of any powers of appointment held thereunder) are Family Members and the trustee of
which is a Family Member; 

  

	 	(d)	a custodian under the Uniform Gifts to Minors Act or Uniform Transfers to Minors Act for the exclusive benefit of a Family Member, provided that such custodian is a
Family Member; 

  

	 	(e)	any corporation, partnership or other entity, provided that at least 75% of the equity interests in such entity (by vote and by value) are owned, either directly or
indirectly, in the aggregate by Family Members; 

  

	 	(f)	any bank or other financial institution, solely as a bona fide pledgee of shares of Class A Stock by the owner thereof as collateral security for indebtedness due
to the pledgee; or 

  

	 	(g)	any employee benefit plan, or trust or account held thereunder, or any savings or retirement account (including an individual retirement account), held for the
exclusive benefit of a Family Member. 

  

	 	1.33	Plan shall have the meaning set forth in the Preamble. 

  

	 	1.34	Prior Plan means the John B. Sanfilippo & Son, Inc. 1998 Equity Incentive Plan. 

 

	 	1.35	Restricted Stock means any grant of Shares, with such Shares subject to a risk of forfeiture or other restrictions as determined pursuant to the Plan.

  

	 	1.36	Restricted Stock Unit means the grant of a right to receive Shares (or a derivative thereof) in the future, with such right to future delivery of Shares (or
other rights) subject to a risk of forfeiture or other restrictions as determined pursuant to the Plan. 

  
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	 	1.37	Retirement for an Employee means a Termination of Service, other than For Cause, to the extent the Employee has attained, as of the effective date of such
Termination of Service, either (i) age 65 or, (ii) age 55 and 10 completed years of service with the Company or any Subsidiary. Retirement for a Non-Employee Director means a Termination of Service on or after the attainment of age 60.

  

	 	1.38	Share means a share of Common Stock. 

  

	 	1.39	Share Withholding shall have the meaning set forth in Section 8.4. 

 

	 	1.40	Stock Appreciation Right means any such right granted under Section 6.2. 

 

	 	1.41	Subcommittee shall have the meaning set forth in Section 3.3. 

  

	 	1.42	Subsidiary means a corporation of which at least 50% of the total combined voting power of all classes of stock is owned by the Company either directly or
through one or more Subsidiaries. 

  

	 	1.43	Termination of Service shall have the following meanings: 

  

	 	(a)	for an Employee, the date on which the Employee is no longer an Employee; 

  

	 	(b)	for a Non-Employee Director, the date on which the Non-Employee Director is no longer a member of the Board; 

 

	 	(c)	for any other eligible individual, the date on which such individual no longer provides substantial services on a regular basis. 

With respect to any Award subject to Code Section 409A, a Termination of Service shall mean a “separation from service”
within the meaning of Code Section 409A. 
 ARTICLE 2 EFFECTIVE DATE AND AVAILABLE SHARES 

 

	 	2.1	Effective Date, Approval Date and effect on Prior Plan. The Board and the Committee adopted the Plan on September 4, 2008 (the “Effective Date”);
provided, however, that Awards granted under the Plan prior to the Approval Date are contingent on approval of the Plan by the Company’s stockholders. The Plan shall be unlimited in duration and, in the event of Plan termination, shall remain
in effect as long as any Awards under it are outstanding; provided, however, that no Awards may be granted under the Plan after the ten-year anniversary of the Effective Date (except for Awards granted pursuant to commitments entered into prior to
such ten-year anniversary). Upon the Effective Date, no further awards will be made under the Prior Plan. If there is no Approval Date within 12 months of the Effective Date, Awards granted pursuant to the Plan shall be deemed cancelled.

  

	 	2.2	Share authorization. 

  
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	 	(a)	The maximum number of Shares available for grants of Awards (including the Shares underlying such Awards) pursuant to the Plan is 1,000,000. 

 

	 	(b)	The maximum number of Shares available for Awards of Common Stock, Restricted Stock and Restricted Stock Units is 500,000. 

 

	 	(c)	Shares issued pursuant to the Plan may come from authorized and unissued Shares, treasury Shares or Shares purchased by the Company in the open market.

  

	 	2.3	Share usage. The limits of Sections 2.2(a) and (b) are governed by the rules contained in this Section 2.3. Any Shares related to Awards which
(i) terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of such Shares, (ii) are settled in cash in lieu of Shares, or (iii) are exchanged with the Committee’s permission, prior to the issuance of
Shares, shall be available again for grant under this Plan. However, if the Option Price of any Option or the tax withholding requirements with respect to any Award are satisfied by tendering Shares to the Company (by either actual delivery or by
attestation) or through the surrender of all or a portion of an Option, or if a Stock Appreciation Right is exercised, the number of Shares issued, including the Shares tendered, if any, will be deemed delivered for purposes of determining the
maximum number of Shares available for grant or delivery under this Plan under Section 2.2(a) above. 

ARTICLE 3 ADMINISTRATION 
  

	 	3.1	The Committee. The Plan shall be administered by the Committee in accordance with the following: 

 

	 	(a)	The Committee shall have the authority in its sole discretion, at any time, and from time to time, subject to and not inconsistent with the express provisions of the
Plan, to administer the Plan and to exercise all the powers and authorities either specifically granted to it under the Plan or as it deems necessary or advisable in administration of the Plan, including without limitation, (i) the authority to
grant Awards; (ii) to determine the individuals to whom and the time or times at which Awards shall be granted; (iii) to determine the type and number of Awards to be granted, as applicable, the number of Shares to which an Award may
relate and the terms, conditions, restrictions and performance criteria relating to any Award; (iv) to determine whether, to what extent, and under what circumstances and the manner in which an Award may be settled, cancelled, forfeited,
exchanged or surrendered; (v) to construe and interpret the Plan and any Award; (vi) to prescribe, amend, and rescind rules and regulations relating to the Plan, including but not limited to, rules and regulations relating to leaves of
absence and changes from an employee to a service provider or consultant; and (vii) to make all other determinations deemed necessary or advisable for the administration and implementation of the Plan. The determination of the Committee on all
matters relating to the Plan or any Agreement shall be final and conclusive and binding on the Company and all Participants and beneficiaries. 

  
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	 	(b)	Except to the extent prohibited by applicable law or the applicable rules of a securities exchange, or inconsistent with the Company’s Bylaws or Committee
charters, the Committee may allocate all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it. Such delegation
shall include, unless limited by its terms, all of the responsibility and authority held by the Committee hereunder, and any such allocation or delegation may be revoked by the Committee at any time. 

 

	 	3.2	Prohibition on Option Repricing or Option/SAR Cash Buyouts. Except to the extent approved by the stockholders of the Company or pursuant to Section 12.6
herein,, the Committee may not reprice, replace or regrant any Option or Stock Appreciation Right granted under the Plan or any other plan of the Company, (i) through cancellation and replacement or regrant with lower priced options,
(ii) by lowering the Option Price or exercise price of a previously granted Award or (iii) through making any cash payment in substitution for or upon the cancellation of a previously granted Award. 

 

	 	3.3	Code Section 162(m) Subcommittee. Notwithstanding anything to the contrary contained herein, the Committee has the authority to designate, if desirable, a
subcommittee (the “Subcommittee”) to administer the Plan with respect to Covered Employees. If a Subcommittee is designated, the Subcommittee shall be composed of two or more members of the Committee appointed by the Committee, all of whom
shall be “outside directors” as that term is used in Code Section 162(m). With respect to such Covered Employees, the Subcommittee shall have all of the powers, rights, and duties granted to the Committee under this Plan.

  

	 	3.4	Periodic Committee review and meetings with management. The Committee may from time to time review the implementation and results of the Plan to determine the
extent to which the Plan’s purpose is being accomplished. In addition, the Committee may periodically meet with senior management of the Company to review their suggestions regarding grants under the Plan, including the individuals who are
proposed to receive grants and the amount and terms of such grants; provided, however, that unless otherwise delegated, all such grants shall be determined solely by the Committee in its discretion. 

ARTICLE 4 AWARDS 
  

	 	4.1	Eligibility. Awards may be granted to any Employee, any consultant or other person providing services to the Company or a Subsidiary and any member of the Board.

  

	 	4.2	 Award Agreements. Awards under the Plan shall be evidenced by Agreements which shall not be inconsistent with the terms and provisions of the
Plan, and which shall contain such provisions as the Committee may in its sole discretion determine. A copy of such Agreement shall be provided to the Participant, and the Committee may, but need not, require that the Participant sign a copy of such
Agreement. Without 

  
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limiting the generality of the foregoing, the Committee may in any Agreement impose such restrictions or conditions upon the exercise or settlement of any Award or upon the sale or other
disposition of any Shares issuable pursuant to the Plan as the Committee may in its sole discretion determine. Awards and related Agreements may, but need not, be uniform among Participants. By accepting an Award pursuant to the Plan each
Participant shall thereby agree that each such Award shall be subject to all of the terms and provisions of the Plan. In the event of any inconsistency between an Agreement and the Plan, the terms of the Plan shall prevail. 

ARTICLE 5 OPTIONS 
  

	 	5.1	General. The Committee is authorized to grant Options with the terms and conditions set forth in this Article and with such additional terms and conditions, not
inconsistent with the provisions of the Plan, as the Committee shall determine in its sole discretion. 

  

	 	5.2	Type of Options. All Options granted pursuant to the Plan shall be Nonstatutory Stock Options. 

 

	 	5.3	General terms and conditions. The Committee shall determine all terms and conditions of the Options not inconsistent with the Plan, provided that, the following
terms and conditions shall apply to all Options: 

  

	 	(a)	Options may not be exercised after ten years have elapsed from the Date of Grant; 

 

	 	(b)	The Option Price shall be determined by the Committee in accordance with the terms and conditions of the Plan, except that, in no event shall the Option Price be less
than 100% of the Fair Market Value per Share determined as of the Date of Grant; 

  

	 	(c)	Except as otherwise provided by the Committee and set forth in the Award Agreement, each Option shall become exercisable in equal installments of 25% of the total
number of Shares subject to being purchased thereunder on each of the first, second, third and fourth anniversaries of the Option’s Date of Grant; provided, however, that the Participant remains an Employee (or a Non-Employee Director or
continues to provide services as a consultant, as applicable) on a regular and continuous basis through each such anniversary of the Date of Grant; and 

  

	 	(d)	Options shall not contain any provision entitling a Participant to the automatic grant of additional Options in connection with any exercise of the original Option.

  

	 	5.4	Annual individual limit. The maximum number of Shares subject to Options which may be awarded to any individual in any one calendar year shall not exceed 100,000
Shares. 

  
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	 	5.5	Exercise of Options. Subject to the provisions hereof and the provisions of the Agreement under which it was granted, each Option shall be exercised by delivery
to the individual named on the Award or, if no specific individual is named on the Award, the Company’s Chief Financial Officer. Such delivery shall contain written notice (or by such other method determined by the Committee and communicated in
writing to a Participant) of the Participant’s intent to purchase a specific whole number of Shares subject to the Option or by such other method as may be provided by the Committee. Except as otherwise provided in an Agreement or determined by
the Committee, a payment to exercise an Option may, at the election of the Participant, be made in (i) cash, (ii) Shares valued at their Fair Market Value on the Date of Exercise, (iii) surrender of an exercisable Option covering
Shares with an aggregate Fair Market Value as of the date of exercise in excess of the aggregate dollar amount of the Option Prices of such Shares under such Option equal to the Option Price of the Options sought to be exercised, (iv) through
the delivery of irrevocable instructions to a broker to deliver promptly to the Company an amount in cash equal to the Option Price, (v) any combination of the foregoing, or (vi) in accordance with the terms of the Agreement under which
the Options sought to be exercised were granted, or (vii) in accordance with other methods as the Committee may from time to time permit. A Participant may surrender to the Company an Option (or a portion thereof) that has become exercisable
and receive upon such surrender, without any payment to the Company or a Subsidiary (other than required tax withholding amounts), that number of Shares (equal to the highest whole number of Shares) having an aggregate Fair Market Value as of the
date of surrender equal to that number of Shares subject to the Option (or portion thereof) being surrendered multiplied by an amount equal to the excess of (i) the Fair Market Value of a Share on the date of surrender, over (ii) the
Option Price, plus an amount of cash equal to the Fair Market Value of any fractional Share to which the Participant might be entitled. Any such surrender shall be treated as the exercise of the Option (or portion thereof). 

ARTICLE 6 OTHER AWARDS 
  

	 	6.1	Restricted Stock and Restricted Stock Units. The Committee is authorized to grant Awards of Common Stock, Restricted Stock and Restricted Stock Units. Any such
Award shall be subject to such conditions, restrictions and contingencies as the Committee may impose (including, without limitation, any limitation on the right to vote Restricted Stock or the right to receive any dividend or other right or
property), which may lapse separately or in combination and at such time or times as the Committee may deem appropriate. Awards of Restricted Stock Units may be subject to such terms and conditions deemed necessary and desirable by the Committee to
permit such Awards to comply with the provisions of Code Section 409A. Awards made pursuant to this Section 6.1 may not vest sooner than three years from the Award’s Date of Grant (other than Awards granted as an adjustment pursuant
to a performance-based formula), provided that such Awards may vest earlier in accordance with Article 10 herein and the Committee may provide for a vesting period to lapse in pro rata or graded installments over such three-year period and for a
shorter vesting period (i) in connection with any corporate divestiture or acquisition affecting a Participant’s employment with, or provision of services to, the Company, (ii) in the case of any special agreement, award, or situation
with respect to any individual participant or (iii) in connection with other events or circumstances as the Committee may determine from time to time. 

  
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	 	6.2	Stock Appreciation Rights. The Committee is authorized to grant Stock Appreciation Rights, which may, but need not, relate to a specific Option granted under the
Plan. Subject to the terms of the Plan and any applicable Agreement, each Stock Appreciation Right shall confer on the holder thereof a right to receive, upon exercise thereof, the excess of (a) the Fair Market Value of one Share on the Date of
Exercise over (ii) the exercise price (the “Exercise Price”) of the right as specified by the Committee, which shall not be less than the Fair Market Value of one Share on the Date of Grant of the Stock Appreciation Right. Subject to
the terms of the Plan and any applicable Agreement, the Exercise Price, term, methods of exercise, methods of payment or settlement, including whether such Stock Appreciation Right shall be settled in cash or Shares, and any other terms and
conditions of any Stock Appreciation Right shall be as determined by the Committee, but in no event shall the term of a Stock Appreciation Right exceed a period of ten years from the date of its grant. Awards made pursuant to this Section 6.2
may not vest sooner than three years from the Award’s Date of Grant (other than Awards granted as an adjustment pursuant to a performance-based formula), provided that such Awards may vest earlier in accordance with Article 10 herein and the
Committee may provide for a vesting period to lapse in pro rata or graded installments over such three-year period and for a shorter vesting period (i) in connection with any corporate divestiture or acquisition affecting a Participant’s
employment with, or provision of services to, the Company, (ii) in the case of any special agreement, award, or situation with respect to any individual participant or (iii) in connection with other events or circumstances as the Committee may
determine from time to time. 

  

	 	6.3	Dividends and Dividend Equivalents. Any Award of Restricted Stock or Restricted Stock Units may provide the Participant with the right to receive dividend
payments or dividend equivalent payments with respect to Shares underlying the Award (both before and/or after the Shares subject to the Award are earned, vested, or acquired), which payments may be either made currently or credited to an account
for the Participant (the Agreement shall specify whether such amounts are paid currently or credited to an account, and any such account shall be intended to comply with applicable provisions of Code Section 409A), and may be settled in cash or
Shares as determined by the Committee. Any such settlements, and any such crediting of dividends or dividend equivalents or reinvestments in Shares, may be subject to such conditions, restrictions and contingencies as the Committee shall establish,
including the reinvestment of such credited amounts in Share equivalents. 

  

	 	6.4	 Share certificates and distributions. At the time Restricted Stock is granted to a Participant, share certificates representing the appropriate
number of Shares of Restricted Stock shall be registered in the name of the Participant but shall be held by the Company in custody for the account of such person. The Committee (and the Company) may take whatever actions it determines necessary or
desirable to restrict the transferability of the unvested Restricted Stock including providing that the 

  
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certificates bear a legend restricting their transferability. Any Shares or other securities of the Company received by a Participant to whom Restricted Stock has been granted as a result of a
stock distribution to stockholders or as a stock dividend on Common Stock shall be subject to the same terms, conditions and restrictions as such Restricted Stock. 

 

	 	6.5	Annual individual limits. 

  

	 	(a)	The maximum number of Shares subject to Stock Appreciation Rights which may be awarded to any individual in any one calendar year shall not exceed 100,000 Shares.

  

	 	(b)	The maximum number of Shares, shares of Restricted Stock or Restricted Stock Units which may be awarded to any individual in any one calendar year shall not exceed
50,000 (for the avoidance of doubt, this limit applies separately to each type of Award). 

  

	 	6.6	Performance-Based Compensation. 

  

	 	(a)	An Award of Restricted Stock or Restricted Stock Units that is intended to qualify as Performance-Based Compensation shall be governed by this Section 6.6.

  

	 	(b)	The performance goals upon which the payment or vesting of an Award of Restricted Stock and Restricted Stock Units to a Covered Employee that is intended to qualify as
Performance-Based Compensation shall be limited to one or more of the performance measures listed in Appendix A hereto (the “Performance Measures”). 

 

	 	(c)	Any Performance Measure(s) may be used to measure the performance of the Company and its Subsidiaries as a whole or any business unit of the Company or its Subsidiaries
or any combination thereof, as the Committee may deem appropriate, or any of the 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) on Appendix A 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 set forth at Appendix A. 

  

	 	(d)	 The Committee may provide in any such Award that any evaluation of performance may include or exclude any of the following events that occurs during a
Performance Period: (i) asset write-downs, (ii) litigation or claim judgments or settlements, (iii) the effect of changes in tax laws, accounting principles, or other laws or provisions affecting reported results, (iv) any
reorganization and restructuring programs, (v) extraordinary nonrecurring items as described in Accounting Principles Board Opinion No. 30 and/or in 

  
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management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year or other
applicable periodic filings with the Securities and Exchange Commission, (vi) acquisitions or divestitures, and (vii) 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. 

  

	 	(e)	Awards that are intended to qualify as Performance-Based Compensation may not be adjusted upward. The Committee may retain the discretion to adjust such Awards
downward, either on a formula or discretionary basis or any combination, as the Committee determines. 

  

	 	(f)	In the event that applicable tax and/or securities laws change to permit Committee discretion to alter the governing Performance Measures without obtaining stockholder
approval of such changes, the Committee shall have sole discretion to make such changes without obtaining stockholder 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 herein. 

 

	 	(g)	In all events, determinations under this section shall be made in a manner which is consistent with Code Section 162(m). 

ARTICLE 7 NON-EMPLOYEE DIRECTORS 
 The Committee, subject to approval by the full Board, shall determine all Awards to Non-Employee Directors. The terms and conditions of any Award to any such Non-Employee Director shall be set forth in an
Agreement and, except as otherwise provided for in such Agreement, such Award shall vest or become exercisable, as the case may be, on the first anniversary of the Award’s Date of Grant. 

ARTICLE 8 TAXES 
  

	 	8.1	Notification under Section 83(b). Provided that the Committee has not prohibited such Participant from making the following election, if a Participant
shall, in connection with the receipt of any Award, make the election permitted under Section 83(b) of the Code (i.e., an election to include in such Participant’s gross income in the year of transfer the amounts specified in
Section 83(b) of the Code), such Participant shall notify the Committee or its designee of such election within ten (10) days of filing notice of the election with the Internal Revenue Service, in addition to any filing and notification
required pursuant to regulations issued under the authority of Section 83(b) of the Code. 

  

	 	8.2	Remittance of Tax as Condition of Delivery. The Company shall be entitled to require as a condition of delivery of Shares hereunder that the Participant remit an
amount of cash sufficient to satisfy all federal, state and other governmental withholding tax requirements related thereto. 

  
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	 	8.3	Mandatory Withholding on Insiders. In the case of a Participant who is an Insider, whenever under the Plan Shares are to be delivered, the Company shall withhold
an amount sufficient to satisfy all minimum federal, state and other governmental withholding tax requirements related thereto. 

  

	 	8.4	Elective Share Withholding. Provided that the Committee has not prohibited such Participant from making the following election, a Participant, other than an
Insider, may elect the withholding (“Share Withholding”) by the Company of a portion of the Shares otherwise deliverable to such Participant upon the settlement of an Award having a Fair Market Value equal to the amount necessary to
satisfy such Participant’s minimum required federal, state or other governmental withholding tax liability with respect thereto. 

  

	 	8.5	Share withholding is subject to Committee approval. Each Share Withholding election by a Participant shall also be subject to the following restrictions:

  

	 	(a)	the election must be made prior to the date on which the amount of tax to be withheld is determined; and 

 

	 	(b)	the election shall be irrevocable. 

 ARTICLE 9 TERMINATION OF SERVICE 
  

	 	9.1	Unexercisable Options. Except as otherwise determined by the Committee, upon a Participant’s Termination of Service, all unexercisable and/or unvested
Options shall be forfeited and cancelled without further action by the Committee. 

  

	 	9.2	Exercisable Options. Except as otherwise determined by the Committee, this Section 9.2 shall apply to exercisable Options held by an Employee. An
unexercised Option shall terminate and/or be forfeited upon Termination of Service if the Termination of Service was the result of the resignation of the Participant or the Participant was terminated For Cause or otherwise, except that:

  

	 	(a)	Death. If the Participant’s Termination of Service is as a result of his or her death, unexercised Options to the extent exercisable on the date of the
Participant’s death, may be exercised, in whole or in part, at any time within one (1) year after the date of death by the Participant’s personal representative or by the person to whom the Options are transferred by will or the
applicable laws of descent and distribution. 

  

	 	(b)	 Retirement. If the Termination of Service of an Employee or a Non-Employee Director is as a result of Retirement, any unexercised Option, to the
extent exercisable at the date of such Termination of Service, may be exercised, in whole or in part, at any time within one (1) year after the date of such Termination of Service; provided that, if the Participant dies after such

  
 13 

	 	
Termination of Service and before the expiration of such one (1) year period, unexercised Options held by such deceased Participant may be exercised by his or her personal representative or
by the person to whom the Option is transferred by will or the applicable laws of descent and distribution within one (1) year after the Participant’s Termination of Service. 

 

	 	(c)	Permanent Disability. If the Participant’s Termination of Service is a result of his or her Permanent Disability, any unexercised Option, to the extent
exercisable at the date of such Termination of Service, may be exercised, in whole or in part, at any time within one (1) year after the date of such Termination of Service; provided that, if a Participant dies after such Termination of Service
and before the expiration of such one (1) year period, the unexercised Options may be exercised by the deceased Participant’s personal representative or by the person to whom the unexercised Options are transferred by will or the
applicable laws of descent and distribution within one (1) year after the Participant’s Termination of Service, or, if later, within 180 days after the Participant’s death. 

 

	 	(d)	Other Reasons for Termination. If the Participant has a Termination of Service for any reason other than by death, Retirement, Permanent Disability, resignation
or For Cause, any unexercised Option, to the extent exercisable on the date of such Termination of Service, may be exercised, in whole or in part, at any time within ninety (90) days from the date of such Termination of Service.

 When Options are no longer exercisable pursuant to the provisions of Section 9.2(a) through (d), such
Options shall be forfeited and cancelled without further action by the Committee. 
  

	 	9.3	For Cause. A Termination of Service “For Cause” shall mean a Termination of Service that, in the judgment of the Committee, is the result of
(a) the breach by the Employee of any employment agreement, employment arrangement or any other agreement with the Company or a Subsidiary, (b) the Employee engaging in a business that competes with the Company or a Subsidiary,
(c) the Employee disclosing business secrets, trade secrets or confidential information of the Company or a Subsidiary to any party, (d) dishonesty, misconduct, fraud or disloyalty by the Employee, (e) misappropriation of corporate
funds, or (f) such other conduct by the Employee of an incompetent, insubordinate, immoral or criminal nature as to have rendered the continued employment of the Employee incompatible with the best interests of the Company and its Subsidiaries.

  

	 	9.4	Other Awards. Except as otherwise determined by the Committee: 

  

	 	(a)	Stock Appreciation Rights shall be treated similar to Options as set forth in Sections 9.1 and 9.2; 

  
 14 

	 	(b)	Upon Termination of Service except as a result of death or Permanent Disability, all Restricted Stock Units and shares of Restricted Stock still subject to restriction
and/or unvested shall be forfeited without further action by the Committee and cancelled or reacquired without payment of consideration by the Company; and 

 

	 	(c)	Upon Termination of Service as a result of death or Permanent Disability, any Award of Restricted Stock Units or shares of Restricted Stock shall be immediately vested
to the extent the Participant would have become vested in such Award had he or she not experienced a Termination of Service until immediately after the next following anniversary of such Award’s Date of Grant, and the remainder of the Award
still subject to restriction and/or unvested shall be forfeited without further action by the Committee and cancelled or reacquired without payment of consideration by the Company. 

 

	 	9.5	Term. Any of the provisions herein to the contrary notwithstanding, no Option or Stock Appreciation Right shall be exercisable beyond the term specified in the
related Agreement thereof. 

  

	 	9.6	Non-Employee Directors and Other Service Providers. Awards granted to Non-Employee Directors and other service providers shall be treated in accordance with the
principles set forth in this Article 9, as applicable, provided that service providers who are not Non-Employee Directors or Employees shall not be eligible for Retirement treatment. 

ARTICLE 10 CHANGE IN CONTROL 
  

	 	10.1	Definition. For the purposes of this Plan, a “Change in Control” means, except as may otherwise be provided in an Agreement, the first date on
which one of the following events occurs: 

  

	 	(a)	the consummation of a merger or consolidation of the Company with or into another entity or any other corporate reorganization, if more than 50% of the combined voting
power of the continuing or surviving entity’s securities outstanding immediately after such merger, consolidation or other reorganization is owned by persons who were not stockholders of the Company immediately prior to such merger,
consolidation or other reorganization; 

  

	 	(b)	the sale, transfer or other disposition of all or substantially all of the Company’s assets; 

 

	 	(c)	a change in the composition of the Board, as a result of which fewer than one-half of the directors following such change in composition of the Board are directors who
either (i) had been directors of the Company on the date 24 months prior to the date of the event that may constitute a Change in Control (the “Original Directors”) or (ii) were elected, or nominated for election, to the Board
with the affirmative votes of at least a majority of the aggregate of (A) the Original Directors who were still in office at the time of the election or nomination and (B) the directors whose election or nomination was previously approved
pursuant to this Clause (ii); or 

  
 15 

	 	(d)	any transaction as a result of which any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Exchange Act), other
than one or more Permitted Holders, or any group that is controlled by Permitted Holders, is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of the voting securities
of the Company representing at least 30% of the total voting power of the Company (with respect to all matters other than the election of directors) represented by the Company’s then outstanding voting securities. For purposes of this Clause
(d), the term “transaction” shall include any conversion of the Class A Stock, whether or not such conversion occurs in connection with a sale, transfer or other disposition of such Class A Stock. 

For purposes of this definition, (i) the term “person” shall exclude: (A) a trustee or other fiduciary holding
securities under an employee benefit plan of the Company or a Subsidiary; and (B) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the Common Stock (it
being understood that for purposes of subsequently determining whether a Change in Control has occurred, all references to the “Company” in the definition of Change in Control shall be deemed to be references to the Company and/or such
corporation, as applicable); (ii) the term “group” shall exclude any group controlled by any person identified in Clause (i)(A) above and (iii) the term “control” shall mean the possession, directly or indirectly, of
the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting securities, by contract, or otherwise, and the terms “controlling” and “controlled” have meanings
correlative thereto. 
  

	 	10.2	Certain Rules. The following rules shall apply to the determination of a Change in Control. 

 

	 	(a)	Except as otherwise determined by the Committee, any spin-off of a division or subsidiary of the Company to its stockholders will not constitute a Change in Control of
the Company. 

  

	 	(b)	Any event listed in Section 10.1 that the Committee elects to not treat as a Change in Control of the Company prior to the occurrence of a Change in Control, shall
not constitute a Change in Control. 

  

	 	(c)	Upon a determination by the Committee in its discretion, any other event substantially similar to an event described in Section 10.1 shall be a Change in Control .

  
 16 

	 	10.3	Discretionary Treatment; Default Provisions. The Committee shall determine the treatment of outstanding Awards prior to a Change in Control, except that to the
extent the Committee takes no action (and except as otherwise expressly provided for in an Agreement): 

  

	 	(a)	all Options and Stock Appreciation Rights then outstanding shall become immediately and fully exercisable, notwithstanding any provision therein for the exercise in
installments; 

  

	 	(b)	all restrictions and conditions of all Restricted Stock then outstanding shall be deemed satisfied as of the date of the Change in Control; and

  

	 	(c)	all Restricted Stock Units, Dividend Equivalents and any Award subject to performance goals shall become vested and deemed earned or satisfied in full, notwithstanding
that the applicable performance cycle, retention cycle or restriction conditions shall not have been completed or met, and shall be paid or otherwise settled within 30 days of the Change in Control (except to the extent that payment must be made
pursuant to its original schedule in order to comply with Code Section 409A). 

  

	 	10.4	Potential Treatment. Without limitation, except as expressly provided for in an Agreement, the Committee may elect prior to a Change in Control, that in the
event of a Change in Control, that all or any portion of an Award, with no requirement of uniform treatment: 

  

	 	(a)	Shall be assumed or an equivalent award be substituted by the successor corporation in any Change in Control transaction, or a parent or subsidiary of such successor
corporation; 

  

	 	(b)	Shall be cancelled or forfeited and settled in cash; 

  

	 	(c)	To the extent unvested or unexercisable, shall be cancelled or forfeited without settlement, payment or other consideration; or 

 

	 	(d)	With respect to any unexercised portion of an Option or Stock Appreciation Right, shall be cancelled following the time permitted to exercise said Award.

  

	 	10.5	Following a Change in Control, no action shall be taken under the Plan that will cause any Award that has previously been determined to be (or is determined to be)
subject to Code Section 409A to fail to comply in any respect with Code Section 409A without the written consent of the Participant. 

 ARTICLE 11 SECURITIES LAW MATTERS 
  

	 	11.1	Investment Intent Representation: Restrictive Legend. Where an investment intent representation or restrictive legend is deemed necessary to comply with the
Securities Act of 1933, as amended, the Committee may require a written representation to that effect by the Participant, or may require that such legend be affixed to certificates for Shares at the time the Option is exercised or an Award is
granted. 

  
 17 

	 	11.2	Company’s right to postpone exercise or settlement. If based upon the opinion of counsel to the Company, the Committee determines that the exercise or
settlement of any Awards would violate any applicable provision of (i) state or federal securities law, (ii) the listing requirements of any securities exchange registered under the Exchange Act on which are listed any of the
Company’s equity securities, (iii) the listing requirements of the NASDAQ Global Market if any of the Company’s equity securities are listed thereon, or (iv) the listing requirements of The NASDAQ Capital Market if any of the
Company’s equity securities are listed thereon, then the Committee may postpone any such exercise or settlement; provided, however, that the Company shall use its best efforts to cause such exercise to comply with all such provisions at the
earliest practicable date; and provided further, that the Committee’s authority under this Section 11.2 shall expire from and after the date of any Change in Control. 

 

	 	11.3	Rule 16b-3 Compliance. With respect to Insiders, transactions under the Plan are intended to comply with all applicable conditions of Rule 16b-3 or its
successors under the Exchange Act. To the extent any provision of the Plan or action by the Board or the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Board or the
Committee. 

 ARTICLE 12 MISCELLANEOUS 

 

	 	12.1	Funding. Benefits payable under the Plan to any person shall be paid directly by the Company. The Company shall not be required to fund, or otherwise segregate
assets to be used for payment of, benefits under the Plan. 

  

	 	12.2	No Employment Rights. Neither the establishment of the Plan, nor the granting of any rights under the Plan, shall be construed to (a) give any Participant
the right to remain employed by the Company, any Subsidiary or any of their affiliates or to any benefits not specifically provided by the Plan, or (b) in any manner modify the right of the Company, any Subsidiary or any of their affiliates to
modify, amend or terminate any of its employee benefit plans. 

  

	 	12.3	Stockholder Rights. A Participant shall not, by reason of any right granted hereunder, have any right as a stockholder of the Company with respect to the Shares
which may be deliverable upon exercise of such Option until such Shares have been delivered to him or her. 

  

	 	12.4	Nature of Payments. Any and all grants or deliveries of Shares hereunder shall constitute special incentive payments to the Participant and shall not be taken
into account in computing the amount of salary or compensation of the Participant for the purposes of determining any pension, retirement, death or other benefits under (a) any pension, retirement, profit-sharing, bonus, life insurance or other
employee benefit plan of the Company, any Subsidiary or any of their affiliates, or (b) any agreement between the Company, any Subsidiary or any of their affiliates, on the one hand, and the Participant, on the other hand, except as such plan
or agreement shall otherwise expressly provide. 

  
 18 

	 	12.5	Non-Uniform Determinations. The Committee’s determinations under the Plan need not be uniform and may be made by the Committee selectively among persons who
receive, or are eligible to receive, grants under the Plan (whether or not such persons are similarly situated). Without limiting the generality of the foregoing, the Committee shall be entitled, among other things, to make non-uniform and selective
determinations, and to enter into non-uniform and selective Agreements as to (a) the persons to receive grants under the Plan, (b) the terms and provisions of Awards under the Plan, and (c) the treatment, under Section 3.1, of
leaves of absence. 

  

	 	12.6	Adjustments. 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 stockholders 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, as applicable, the number and kind of Shares that may be issued under this Plan (Section
2.2(a)) or under particular forms of Awards (Section 2.2(b)), the number and kind of Shares subject to outstanding Awards, the Option Price or Exercise Price applicable to outstanding Awards, the annual Award limits (Sections 5.4 and 6.5), and other
value determinations applicable to outstanding Awards. The Committee, in its sole discretion, may also make appropriate adjustments in the terms of any Awards under this Plan to reflect such changes or distributions, including modifications of
performance goals and changes in the length of performance periods, if any. The determination of the Committee as to the foregoing adjustments, if any, shall be at the discretion of the Committee and shall be conclusive and binding on Participants
under this Plan. 

  

	 	12.7	Conversion. 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), subject to compliance with the rules under Code Sections 409A, 422 and 424, as and where applicable. 

 

	 	12.8	Amendment of the Plan. The Committee may amend the Plan and any Agreement in its sole discretion; provided, however, no modifications shall be made which would
materially impair the rights of any Award theretofore granted without the Participant’s consent; and provided further, the Committee may not, without further approval of the stockholders of the Company, either: 

 

	 	(a)	materially increase the number of Shares reserved for issuance under the Plan (except as provided for in Section 12.6); 

  
 19 

	 	(b)	materially modify the requirements as to eligibility for participation in the Plan; or 

 

	 	(c)	extend the date of termination of the Plan. 

  

	 	12.9	Termination of the Plan. The Plan shall terminate on the tenth (10th) anniversary of the Effective Date or at such earlier time as the Committee may
determine. Any termination, whether in whole or in part, shall not affect any rights then outstanding under the Plan. 

  

	 	12.10	Controlling Law. The Plan shall be governed, construed and administered in accordance with the laws of the State of Delaware, except its laws with respect to
choice of law. 

  

	 	12.11	Action by the Company. Any action required by the Company under the Plan shall be by resolution of the Committee. 

 

	 	12.12	Non-transferability. Each Award granted hereunder shall by its terms not be assignable or transferable other than by will or the laws of descent and
distribution. During the life of the Participant, all rights granted to the Participant under the Plan or under any Agreement shall be exercisable only by the Participant or, if permissible under applicable law, by the Participant’s guardian or
legal representative. 

  

	 	12.13	No Lien or Security Interest. No Award, and no right under any such Award, may be pledged, attached or otherwise encumbered other than in favor of the Company,
and any purported pledge, attachment, or encumbrance thereof other than in favor of the Company shall be void and unenforceable against the Company or any Subsidiary. 

 

	 	12.14	No Trust or Fund Created. Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship
between the Company or any Subsidiary and a Participant or any other person. To the extent that any person acquires a right to receive payments from the Company or any Subsidiary pursuant to an Award, such right shall be no greater than the right of
any unsecured general creditor of the Company or any Subsidiary. 

  

	 	12.15	No Fractional Shares. No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine whether cash, other
securities or other property shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated. 

 

	 	12.16	 Settlement of Awards. The obligation to make payments and distributions with respect to Awards of Restricted Stock Units and Stock Appreciation
Rights may be satisfied through cash payments, the delivery of Shares, or any combination thereof as the Committee shall determine in its sole discretion. Satisfaction of any obligations to make payments or distributions under an Award, which is
sometimes referred to as “settlement” of the Award, may be subject to such conditions, restrictions and contingencies as the Committee shall determine. Each Subsidiary shall be liable for

  
 20 

	 	
payment of cash due under the Plan with respect to any Participant to the extent that such benefits are attributable to the services rendered for that Subsidiary by the Participant. Any disputes
relating to liability of a Subsidiary for cash payments shall be resolved by the Committee. 

  
 21 

 APPENDIX A 
 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 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 stockholder return); 

 

	 	(k)	Expense targets; 

  

	 	(l)	Margins; 

  

	 	(m)	Operating efficiency; 

  

	 	(n)	Market share; 

  

	 	(o)	Customer satisfaction; 

  

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

  

	 	(q)	Stockholder value added which is equal to (i) the net operating profit after tax minus (ii) the sum of capital multiplied by the cost of capital.

  
 22Series 2012-VFN Indenture Supplement

 Exhibit 10.1 
 EXECUTION COPY 
  

 
  

NAVISTAR FINANCIAL DEALER NOTE 
 MASTER OWNER TRUST II 
 as Issuing Entity 

and 
 THE BANK OF
NEW YORK MELLON 
 as Indenture Trustee 
 SERIES 2012-VFN INDENTURE SUPPLEMENT 
 dated as of August 29, 2012 

to 
 INDENTURE

 dated as of November 2, 2011 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 ARTICLE I Definitions and Other Provisions of General Application
	  	 	1	  
	 Section 1.01 Definitions
	  	 	1	  
		
	 ARTICLE II The Notes
	  	 	22	  
	 Section 2.01 Creation, Designation and Delivery.
	  	 	22	  
	 Section 2.02 Incremental Fundings
	  	 	22	  
	 Section 2.03 Prepayments
	  	 	22	  
		
	 ARTICLE III Allocations, Deposits and Payments
	  	 	23	  
	 Section 3.01 Series 2012-VFN Available Interest Amounts
	  	 	23	  
	 Section 3.02 Series 2012-VFN Available Principal Amounts
	  	 	25	  
	 Section 3.03 Reductions and Reinstatements
	  	 	27	  
	 Section 3.04 Payment on the Series 2012-VFN Notes
	  	 	28	  
	 Section 3.05 Reserved
	  	 	29	  
	 Section 3.06 Final Payment of the Series 2012-VFN Notes
	  	 	29	  
	 Section 3.07 Netting of Deposits and Payments
	  	 	29	  
	 Section 3.08 Reserved
	  	 	30	  
	 Section 3.09 Computation of Interest
	  	 	30	  
	 Section 3.10 Accounts
	  	 	30	  
	 Section 3.11 Spread Account
	  	 	30	  
	 Section 3.12 Reserved
	  	 	31	  
	 Section 3.13 Reserved
	  	 	31	  
	 Section 3.14 Reports and Statements to Series 2012-VFN Noteholders
	  	 	31	  
		
	 ARTICLE IV MISCELLANEOUS PROVISIONS
	  	 	32	  
	 Section 4.01 Ratification of Indenture
	  	 	32	  
	 Section 4.02 Counterparts
	  	 	32	  
	 Section 4.03 Governing Law
	  	 	32	  
	 Section 4.04 Limitation of Owner Trustee Liability
	  	 	32	  
	 Section 4.05 Amendment
	  	 	32	  
	 Section 4.06 No Registration of the Series 2012-VFN Notes under the Securities Act
	  	 	32	  
	 Section 4.07 Consent to Amendments
	  	 	37	  
	 Section 4.08 Electronic Communications
	  	 	37	  

  
 i 

			
		
	EXHIBITS	  	
		
	EXHIBIT A	  	FORM OF VARIABLE FUNDING NOTE
		
	EXHIBIT B	  	FORM OF MONTHLY SERVICER CERTIFICATE

  
 ii 

 This SERIES 2012-VFN INDENTURE SUPPLEMENT (this “Indenture Supplement”), by
and between NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II, a statutory trust created under the laws of the State of Delaware (the “Issuing Entity”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, as
Indenture Trustee, is made and entered into as of August 29, 2012. 
 Pursuant to this Indenture Supplement, the Issuing
Entity shall create a new Series of Notes and shall specify the principal terms thereof. 

ARTICLE I 
 Definitions and Other Provisions of General Application 
 
Section 1.01 Definitions. For all purposes of this Indenture Supplement, except as otherwise expressly provided or unless the context otherwise requires: 
 (1) the capitalized terms used in this Indenture Supplement shall have the meanings assigned to them in this Article, and include the plural as well as the singular; 

(2) all other capitalized terms used but not defined herein which are defined in Part I of Appendix A to the Pooling and Servicing
Agreement, the Series Supplement, or the 1995 Pooling and Servicing Agreement, either directly or by reference therein, have the meanings assigned to them therein; 
 (3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the
term “generally accepted accounting principles” with respect to any computation required or permitted hereunder means such accounting principles as are generally accepted in the United States of America at the date of such
computation; 
 (4) all references in this Indenture Supplement to designated “Articles,”
“Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Indenture Supplement. The words “herein,” “hereof” and “hereunder” and
other words of similar import refer to this Indenture Supplement as a whole and not to any particular Article, Section or other subdivision; 
 (5) in the event that any term or provision contained herein shall conflict with or be inconsistent with any term or provision contained in the Indenture, the terms and provisions of this Indenture
Supplement shall be controlling; 
 (6) except as expressly provided herein, each capitalized term defined herein shall relate
only to the Series 2012-VFN Notes and no other Series of Notes issued by the Issuing Entity; and 
 (7)
“including” and words of similar import shall be deemed to be followed by “without limitation.” 

 “2004 Collateral Certificate” means the Series 2004-1 Certificate issued
pursuant to the 1995 Pooling and Servicing Agreement. 
 “2004 Indenture” means the Indenture, dated as of
June 10, 2004, between Navistar Financial Dealer Note Master Owner Trust, as issuer, and The Bank of New York Mellon, as indenture trustee. 
 “Additional Amounts” shall have the meaning specified in the Note Purchase Agreement. 
 “Administrative Agent” shall have the meaning specified in the Note Purchase Agreement. 
 “Aggregate Receivables Balance” means, as of any date of determination, the aggregate principal amount of the Dealer Notes held by the Receivables Trust as of such date. 

“Aggregate Trust Balance” means, as of any date of determination, the sum of the Aggregate Receivables Balance plus the
amount on deposit in the Excess Funding Account as of such date. 
 “Alternate Rate” shall have the meaning
specified in the Note Purchase Agreement. 
 “Applicable Pooling and Servicing Agreement” means, on or prior to
the 1995 Trust Termination Date, the 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, the Pooling and Servicing Agreement. 
 “Average Coverage Differential” shall be determined, on any Determination Date, by reference to the Coverage Differentials for each of the related Due Period and the three immediately
preceding Due Periods, and shall equal the sum of the three highest such Coverage Differentials divided by three. Average Coverage Differential shall be expressed as a percentage and shall be rounded to the nearest one-hundredth of a
percentage point. 
 “Backup Servicing Expenses” means, with respect to any Due Period on or prior to the 1995
Trust Termination Date, Backup Servicing Expenses as defined in 1995 Pooling and Servicing Agreement and, with respect to any Due Period after the 1995 Trust Termination Date, Backup Servicing Expenses as defined in the Pooling and Servicing
Agreement. 
 “Base Backup Servicing Fee” means, on or prior to the 1995 Trust Termination Date, Base Backup
Servicing Fee as defined in 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, Base Backup Servicing Fee as defined in the Pooling and Servicing Agreement. 

“Borrower” shall have the meaning specified in the Credit Agreement. 

“Change in Control” and each defined term used therein shall have the meanings specified in Section 1.01 of the
Credit Agreement, provided however, if the definition of “Change in Control” or any defined term used therein shall be amended, supplemented, restated or modified in the Credit Agreement after the Issuance Date, “Change in
Control” and any such defined term used therein may, at the unanimous direction of the Managing Agents, have the meaning as so amended, supplemented, restated or modified. 

  
 2 

 “Collateral Amount” means, with respect to the Series 2012-VFN Notes, the
Series 2012-VFN Collateral Amount. 
 “Commitment” shall have the meaning specified in the Note Purchase
Agreement. 
 “Commitment Step-Down Date” shall have the meaning specified in the Note Purchase Agreement.

 “Controlling Class” means, with respect to the Series 2012-VFN Notes, the Series 2012-VFN Notes as a whole.

 “Coverage Differential” shall mean, with respect to any Due Period, the result of (a) the Portfolio
Yield for such Due Period minus (b) the sum of (i) the Series 2012-VFN Interest Rate for the related Interest Period and (ii) one percent (1.0%). Coverage Differential shall be expressed as a percentage, and shall be rounded to the
nearest one-hundredth of a percentage point. 
 “CP Rate” shall have the meaning specified in the Note Purchase
Agreement. 
 “Credit Agreement” means the Second Amended and Restated Credit Agreement, dated as of
December 2, 2011, among NFC, Navistar Financial, S.A. De C.V., Sociedad Financiera de Objeto Multiple, Entidad No Regulada, a Mexican corporation, the Lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, Bank of America,
N.A., as syndication agent, and Citibank, N.A., as documentation agent, as amended, supplemented, restated or otherwise modified from time to time. 
 “Dealcor Dealer” shall means a Dealer that is part of Navistar’s Dealcor system. 
 “Dealcor Dealer Notes Pool Percentage” shall mean the percentage equivalent of a fraction, the numerator of which is the aggregate principal balance of Dealer Notes relating to Dealcor
Dealers, and the denominator of which is the sum of the aggregate principal balance of Dealer Notes held by the Master Trust and the aggregate principal amount of funds on deposit in the Excess Funding Account. 

“Dealcor Dealer Notes Pool Percentage Limit” means 12.5%. 

“Dealer Note Collections” means, for any Business Day on or prior to the 1995 Trust Termination Date, Dealer Note
Collections as defined in the 1995 Pooling and Servicing Agreement and, for any Business Day after the 1995 Trust Termination Date, Dealer Note Collections as defined in the Pooling and Servicing Agreement. 

“Dealer Note Losses” means, for any Due Period on or prior to the 1995 Trust Termination Date, Noteholder Allocated
Dealer Note Losses as defined in the Series Supplement and, for any Due Period after the 1995 Trust Termination Date, Dealer Note Losses as defined in the Pooling and Servicing Agreement. 

  
 3 

 “Distribution Date” means the 25th day of each calendar month or, if such day is not a Business Day,
the next succeeding Business Day, commencing September 25, 2012. 
 “Early Redemption Events” means, with
respect to the Series 2012-VFN Notes, each of the following: 
  

	 	(A)	failure on the part of the Transferor or the Servicer (i) to make any payment, distribution or deposit required under the Series Supplement, the 1995 Pooling and
Servicing Agreement, the Pooling and Servicing Agreement or the Note Purchase Agreement within five Business Days after the date required or (ii) to observe or perform in any material respect any other material covenants or agreements of the
Transferor or the Servicer therein, which failure has a material adverse effect on the Series 2012-VFN Noteholders and which continues unremedied for a period of 60 days after written notice of such failure shall have been given to the Depositor by
the Indenture Trustee or to the Depositor and the Indenture Trustee by any Holder of the Series 2012-VFN Notes; 

	 	

	 	(B)	any representation or warranty made by the Transferor or the Servicer pursuant to the Series Supplement, the 1995 Pooling and Servicing Agreement, the Pooling and
Servicing Agreement or the Note Purchase Agreement or any information contained in the schedule of Dealer Notes delivered thereunder shall prove to have been incorrect in any material respect when made or when delivered, which representation,
warranty or schedule, or the circumstances or condition that caused such representation, warranty or schedule to be incorrect, continues to be incorrect or uncured in any material respect for a period of 60 days after written notice of such
incorrectness shall have been given to the Depositor or the Servicer by the Indenture Trustee or to the Depositor or the Servicer and the Indenture Trustee by any Holder of the Series 2012-VFN Notes and as a result of which the interests of the
Series 2012-VFN Noteholders are materially and adversely affected; provided, however, that an Early Redemption Event shall not be deemed to occur if the Transferor has repurchased the related Dealer Notes or all such Dealer Notes, if
applicable, during such period in accordance with the provisions of the Applicable Pooling and Servicing Agreement; 

	 	

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

  
 4 

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

	 	

	 	(E)	the Transferor shall become legally unable for any reason to transfer Dealer Notes to the Receivables Trust in accordance with the provisions of the Applicable Pooling
and Servicing Agreement; 

	 	

	 	(F)	on any Transfer Date, after giving effect to allocations to be made on that Transfer Date (including payments to be made on the related Distribution Date), the Series
2012-VFN Target Overcollateralization Amount exceeds the Series 2012-VFN Overcollateralization Amount; 

	 	

	 	(G)	any Servicer Termination Event shall occur for which the Servicer has received a notice of termination; 

	 	

	 	(H)	on any Determination Date related to a Due Period ending on or prior to the 1995 Trust Termination Date, as of the last day of the preceding Due Period, the percentage
of the aggregate principal balance of Dealer Notes owned by the Master Trust that consists of Dealer Notes relating to used vehicles exceeds the Used Vehicle Concentration Limit; 

	 	

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

	 	

	 	(J)	the Series 2012-VFN Outstanding Principal Amount is not repaid by the Expected Principal Distribution Date; 

	 	

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

	 	

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

	 	

	 	(M)	the delivery by the Transferor to the Receivables Trust of a notice stating that the Transferor shall no longer continue to sell Dealer Notes to the Receivables Trust
pursuant to the Applicable Pooling and Servicing Agreement commencing on the date specified in such notice; 

  
 5 

	 	(N)	the Average Coverage Differential shall be equal to or less than negative two percent (-2.00%) on each of three consecutive Determination Dates;

	 	

	 	(O)	on any Determination Date, the quotient of (i) the sum of Dealer Note Losses for each of the related Due Period and the five immediately preceding Due Periods and
(ii) the sum of Principal Collections for each of the related Due Period and the five immediately preceding Due Periods, is greater than or equal to one percent (1.00%); 

	 	

	 	(P)	at the end of any Due Period, the Seller’s Interest is reduced to an amount less than the Minimum Seller’s Interest and the Depositor has failed to assign
additional Dealer Notes to the Receivables Trust or deposit cash into the Excess Funding Account, the Series 2012-VFN Principal Funding Account or any other principal funding account with respect to any other series of notes issued pursuant to the
Indenture or the 2004 Indenture in the amount of such deficiency within ten Business Days following the end of such Due Period; provided, however, that if such deficiency was caused by an increase in the Minimum Seller’s Interest as a result of
the occurrence of an excess cash collateral event with respect to any series of notes issued under the Indenture or the 2004 Indenture, there shall be a six month grace period to increase the Seller’s Interest to the required level;

	 	

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

	 	

	 	(R)	upon an increase in the Spread Account Required Amount as a result of the average Monthly Payment Rate for any three consecutive Due Periods being less than the Monthly
Payment Rate Enhancement Trigger, the amount on deposit in the Series 2012-VFN Spread Account is less than the Spread Account Required Amount for five (5) consecutive Business Days; 

	 	

	 	(S)	the United States government or any agency or instrumentality thereof files a notice of a lien under §6323 of the Code or any similar statutory provision
(including, but not limited to, §302(f) or §4068 of ERISA) on the assets of NFC or the Depositor which is or may in the future be prior to the lien of the Master Trust Trustee or the assets of the Master Trust (including, without
limitation, proceeds of the Dealer Notes); 

	 	

	 	(T)	the occurrence of a Change in Control; 

	 	

	 	(U)	either (A) NFC shall cease to be the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934) of 100% of the outstanding
stock of the Depositor or (B) NIC shall cease to be the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of 100% of the outstanding stock of NFC;

  
 6 

	 	(V)	any Borrower shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same
shall become due and payable and such failure shall continue beyond the period of grace, if any, provided in the instrument or agreement under which such Material Indebtedness was created; 

	 	

	 	(W)	any event or condition occurs that (A) results in any Material Indebtedness becoming due prior to its scheduled maturity or (B) solely in the case of the US
Borrower, enables or permits the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance
thereof, prior to its scheduled maturity; provided that this paragraph (W) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness;

	 	

	 	(X)	NFC shall fail to observe or perform any condition, covenant or agreement contained in Section 8.01 of the Credit Agreement as in effect on the date hereof;
provided that if the Credit Agreement is terminated or Section 8.01 of the Credit Agreement or any defined term or provision that affects any calculation specified in Section 8.01 of the Credit Agreement is terminated, amended,
supplemented or modified, then Section 8.01 as used herein may, at the unanimous direction of the Managing Agents, be similarly terminated, amended, supplemented or modified; 

	 	

	 	(Y)	either NIC or Navistar shall fail to pay when due, or within any applicable grace period, any principal of or interest on its Indebtedness for Borrowed Money which
exceeds $50,000,000 in aggregate principal or face amount; 

	 	

	 	(Z)	any Indebtedness for Borrowed Money of either NIC or Navistar which exceeds $50,000,000 in aggregate principal or face amount shall become due prior to its stated
maturity, or any event or circumstance shall occur which permits one or more Persons other than NIC or Navistar, as the case may be, to cause such Indebtedness for Borrowed Money to become due prior to its stated maturity; 

 

	 	(AA)	that portion of the Series 2012-VFN Outstanding Principal Amount allocable to a Purchaser Group shall at any time exceed the Commitment of such Purchaser Group (other
than after the Purchase Expiration Date); 

  

	 	(BB)	the Dealcor Dealer Notes Pool Percentage, as reported on a Servicer Certificate, shall exceed the Dealcor Dealer Notes Pool Percentage Limit and such Dealcor Dealer
Notes Pool Percentage shall not have been reduced to the Dealcor Dealer Notes Pool Percentage Limit or lower (as evidenced by an Officer’s Certificate of the Servicer delivered to each Managing Agent or as shown in the next succeeding Servicer
Certificate) on any date on or prior to the due date for delivery of the next succeeding Servicer Certificate; and 

  
 7 

	 	(CC)	on the Commitment Step-Down Date (A) the Funded Amount (after giving effect to any paydown on such date) exceeds the Maximum Funded Amount (after giving effect to
the Step-Down Commitments on such date) or (B) the portion of the Funded Amount funded by a Purchaser Group (after giving effect to any paydown on such date) exceeds the Funded Amount allocable to such Purchaser Group pro rata in accordance
with the Step-Down Commitments on such date. 

 In the case of any event described in clauses (A),
(B) or (G) above, an Early Redemption Event with respect to Series 2012-VFN Notes shall be deemed to have occurred only if, after the applicable grace period described in those clauses, if any, either the Indenture Trustee at
the direction of or the Series 2012-VFN Noteholders holding Series 2012-VFN Notes evidencing more than 50% of the Series 2012-VFN Outstanding Principal Amount by written notice to the Depositor, the Servicer, the Issuing Entity and, if given by
Series 2012-VFN Noteholders, the Indenture Trustee, declare that an Early Redemption Event has occurred as of the date of that notice. In the case of any Early Redemption Event other than as described in clauses (A), (B) or
(G) above, an Early Redemption Event with respect to the Series 2012-VFN Notes shall be deemed to have occurred without any notice or other action on the part of the Indenture Trustee or the Series 2012-VFN Noteholders immediately upon
the occurrence of that event. 
 “Early Redemption Period” means the period from and including the date on
which an Early Redemption Event occurs to but excluding the Series 2012-VFN Termination Date. 
 “Excess Available
Interest Amounts” means, with respect to any Due Period, either (i) the portion of Series 2012-VFN Available Interest Amounts, if any, available after application pursuant to Section 3.01(a)(i) through (ix) or
(ii) the amounts available to the Series 2012-VFN Notes from the Notes of other Series in Excess Interest Sharing Group One that the applicable Indenture Supplements specify are to be treated as “Excess Available Interest Amounts.”

 “Excess Available Principal Amounts” means, with respect to any Business Day, either (a) the portion of
Series 2012-VFN Available Principal Amounts, if any, available after application pursuant to Section 3.02(a)(i) through (iii) or (b) the amounts available to the Series 2012-VFN Notes from the Notes of other Series in
Principal Sharing Group One that the applicable Indenture Supplements specify are to be treated as “Excess Available Principal Amounts” on the related Business Day. 
 “Excess Funding Account” means, on or prior to the 1995 Trust Termination Date, the Excess Funding Account as defined in 1995 Pooling and Servicing Agreement and, after the 1995 Trust
Termination Date, the Excess Funding Account as defined in the Pooling and Servicing Agreement. 
 “Excess Interest
Collections” has the meaning specified in the 1995 Pooling and Servicing Agreement. 
 “Excess Interest Sharing
Group One” means Series 2012-VFN and each other Series of Notes specified in the related Indenture Supplement as being included in Excess Interest Sharing Group One. 

  
 8 

 “Expected Principal Distribution Date” means the Scheduled Purchase
Expiration Date; provided, however, with respect to any Series 2012-VFN Note held by any Non-Extending Purchaser Group, the Expected Principal Distribution Date means the Original Scheduled Purchase Expiration Date. 

“Finance Charge Collections” means, for any Due Period on or prior to the 1995 Trust Termination Date, Noteholder
Available Interest Amounts as defined in the Series Supplement and, for any Due Period after the 1995 Trust Termination Date, Finance Charge Collections as defined in the Pooling and Servicing Agreement. 

“Funded Amount” shall have the meaning specified in the Note Purchase Agreement. 

“Hedging Agreement” has the meaning specified in Section 1.01 of the Credit Agreement, provided however, if the
definition of “Hedging Agreement” shall be amended, supplemented or modified in the Credit Agreement after the Issuance Date, “Hedging Agreement” as used herein may, at the unanimous direction of the Managing Agents, have the
meaning as so amended, supplemented or modified. 
 “Incremental Funded Amount” means the amount of the
increase in the Series 2012-VFN Outstanding Principal Amount occurring as a result of any Incremental Funding, which amount shall equal the aggregate amount of the purchase prices paid with respect to such Incremental Funding pursuant to the Note
Purchase Agreement. 
 “Incremental Funding” shall have the meaning specified in the Note Purchase Agreement.

 “Incremental Overcollateralization Amount” means, with respect to any date on which there is an Incremental
Funding, the product of (i) the Incremental Funded Amount for such date and (ii) the Series 2012-VFN Overcollateralization Percentage. 
 “Indebtedness” and each defined term used therein shall have the meanings specified in Section 1.01 of the Credit Agreement, provided however, if the definition of
“Indebtedness” or any defined term used therein shall be amended, supplemented or modified in the Credit Agreement after the Issuance Date, “Indebtedness” and any such defined term used therein may, at the unanimous direction of
the Managing Agents, have the meaning as so amended, supplemented or modified. 
 “Indebtedness for Borrowed
Money” and each defined term used therein shall have the meanings specified in Section 1.01 of the Credit Agreement, provided however, if the definition of “Indebtedness for Borrowed Money” or any defined term used therein
shall be amended, supplemented or modified in the Credit Agreement after the Issuance Date, “Indebtedness for Borrowed Money” and any such defined term used therein may, at the unanimous direction of the Managing Agents, have the meaning
as so amended, supplemented or modified. 
 “Initial Series 2012-VFN Outstanding Principal Amount” means $0.

  
 9 

 “Interest Deposit Account” means, on or prior to the 1995 Trust Termination
Date, the Interest Deposit Account as defined in 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, the Interest Deposit Account as defined in the Pooling and Servicing Agreement. 

“Interest Deposit Agreement” means, on or prior to the 1995 Trust Termination Date, the Interest Deposit Agreement as
defined in 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, the Interest Deposit Agreement as defined in the Pooling and Servicing Agreement. 
 “Interest Period” shall mean with respect to any Distribution Date and any portion of the Series 2012-VFN Outstanding Principal Amount, if the Series 2012-VFN Monthly Interest is to be
calculated on the basis of the CP Rate, the related Due Period and, if the Series 2012-VFN Monthly Interest is to be calculated on the basis of the Alternate Rate, unless otherwise agreed by the Issuing Entity and the applicable holder, the period
beginning on and including the preceding Distribution Date and ending on but excluding such Distribution, but in either case excluding any period prior to the Issuance Date. 
 “Investment Income” means, with respect to any Due Period on or prior to the 1995 Trust Termination Date, the Investment Income allocated to the 2011 Collateral Certificate and, after the
1995 Trust Termination Date, Investment Income as defined in the Pooling and Servicing Agreement. 
 “Issuance
Date” means August 29, 2012. 
 “Legal Final Maturity Date” has the meaning specified in the Note
Purchase Agreement. 
 “Managing Agent” has the meaning specified in the Note Purchase Agreement. 

“Material Indebtedness” means Indebtedness or obligations in respect of one or more Hedging Agreements in an aggregate
principal amount exceeding (a) $10,000,000, in the case of the US Borrower, and (b) $5,000,000, in the case of the Mexican Borrower. For purposes of determining Material Indebtedness, the “principal amount” of the obligations of
any Borrower in respect of any Hedging Agreements at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that such Borrower would be required to pay if such Hedging Agreement were terminated at such time;
provided, however, if the definition of “Material Indebtedness” as set forth in the Credit Agreement shall be amended, supplemented or modified after the Closing Date, “Material Indebtedness” as used herein may, at the unanimous
direction of the Managing Agents, be similarly amended, supplemented or modified. 
 “Maximum Funded Amount”
shall have the meaning specified in the Note Purchase Agreement. 
 “Mexican Borrower” shall have the meaning
specified in the Credit Agreement; provided, however, if the definition of “Mexican Borrower” as set forth in the Credit Agreement shall be amended, supplemented or modified after the Closing Date, “Mexican Borrower” as used
herein may, at the unanimous direction of the Managing Agents, be similarly amended, supplemented or modified. 

  
 10 

 “Minimum Seller’s Interest” means, on or prior to the 1995 Trust
Termination Date, the Minimum Master Trust Seller’s Interest as defined in the 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, the Minimum Seller’s Interest as defined in the Pooling and Servicing
Agreement. 
 “Monthly Payment Rate” means, on any Determination Date, the quotient of (1) the sum of
Dealer Note Collections for the related Due Period and (2) the daily average Aggregate Receivables Balance during the related Due Period. 
 “Monthly Payment Rate Enhancement Trigger” means 20%. 

“Monthly Payment Rate Trigger” means 16%. 
 “New Vehicle Monthly Interest Rate” shall mean, with respect to any Due Period, the product of (a) the per annum rate of interest and finance charges billed by NFC during such Due
Period on New Vehicle Dealer Notes and (b) the quotient of (i) the number of days during such Due Period and (ii) the actual number of days in the related calendar year. 

“Nominal Liquidation Amount” means, with respect to the Series 2012-VFN Notes, the Series 2012-VFN Nominal Liquidation
Amount. 
 “Nominal Liquidation Amount Deficit” means, with respect to the Series 2012-VFN Notes as of any
Transfer Date, the excess of the aggregate of the reallocations and reductions made pursuant to Section 3.03 on or prior to such Transfer Date, over the aggregate amount of all reinstatements pursuant to Section 3.03 on or
prior to such Transfer Date. 
 “Non-Extending Purchaser Group” shall have the meaning specified in the Note
Purchase Agreement. 
 “Non-Use Fee” shall have the meaning specified in the Note Purchase Agreement.

 “Note Purchase Agreement” shall mean the Note Purchase Agreement, dated as of the Issuance Date, among the
Depositor, the Servicer, the Administrative Agent, the Managing Agents and the other parties thereto, as amended, supplemented, restated or otherwise modified from time to time. 

“Original Scheduled Purchase Expiration Date” shall have the meaning specified in the Note Purchase Agreement.

 “Overcollateralization Amount” means, with respect to the Series 2012-VFN Notes, the Series 2012-VFN
Overcollateralization Amount. 
 “Overcollateralization Amount Deficit” means, with respect to the Series
2012-VFN Notes as of any Transfer Date, the excess of the Series 2012-VFN Target Overcollateralization Amount as of such Transfer Date over the Series 2012-VFN Overcollateralization Amount as of such Transfer Date. 

  
 11 

 “Overcollateralization Reduction Amount” means, with respect to any payment
of principal of the Series 2012-VFN Notes, the product of (a) the amount of such principal payment and (b) the Series 2012-VFN Overcollateralization Percentage. 
 “Pooling and Servicing Agreement” means the Pooling and Servicing Agreement, dated as of November 2, 2011, among the Depositor, the Servicer and the Issuing Entity, as amended and
supplemented from time to time. 
 “Principal Collections” means, for any Business Day, on or prior to the 1995
Trust Termination Date, Noteholder Available Principal Amounts as defined in the Series Supplement and, after the 1995 Trust Termination Date, Principal Collections as defined in the Pooling and Servicing Agreement. 

“Principal Sharing Group One” means Series 2012-VFN and each other Series specified in the related Indenture Supplement
as being included in Principal Sharing Group One. 
 “Portfolio Yield” means, with respect to any Due Period,
the product of (a) the quotient of (i) Finance Charges for such Due Period over (ii) the daily average principal amount of Dealer Notes outstanding during such Due Period and (b) a fraction, the numerator of which is 365 and the
denominator of which is the actual number of days elapsed during such Due Period. Portfolio Yield shall be expressed as a percentage, and shall be rounded to the nearest one-hundredth of a percentage point. 

“Projected Dealer Note Income” shall mean, on any Transfer Date, an amount equal to the sum of (a) the product of
(i) the principal amount of Dealer Notes financing new vehicles outstanding on the Business Day prior to the related Determination Date, (ii) the New Vehicle Monthly Interest Rate for the related Due Period and (iii) the Projected VFN
Allocation Percentage for such Transfer Date and (b) the product of (i) the principal amount of Dealer Notes financing used vehicles outstanding on the Business Day prior to the related Determination Date, (ii) the Used Vehicle
Monthly Interest Rate for the related Due Period and (iii) the Projected VFN Allocation Percentage for such Transfer Date. 

“Projected Monthly Backup Servicing Fee” shall mean, on any Transfer Date, an amount equal to one-twelfth of the product
of (a) the Base Backup Servicing Fee and (b) the Projected VFN Allocation Percentage for such Transfer Date. 

“Projected Monthly Backup Servicing Expenses” shall mean, on any Transfer Date, an amount equal to the product of
(a) the Backup Servicing Expenses with respect to the related Due Period and (b) the Projected VFN Allocation Percentage for such Transfer Date. 
 “Projected Monthly Servicing Fee” shall mean, on any Transfer Date, an amount equal to one-twelfth of the product of (a) 1%, (b) the aggregate principal amount of Dealer Notes
as of the Business Day preceding the related Determination Date and (c) the Projected VFN Allocation Percentage for such Transfer Date. 
 “Projected VFN Allocation Percentage” means, with respect to any Transfer Date, the quotient of (i) the Series 2012-VFN Nominal Liquidation Amount as of such Transfer Date (after
giving effect to any prepayment or incremental funding on or prior to the related Distribution 

  
 12 

 
Date), divided by (ii) the sum of the aggregate principal amount of the Dealer Notes in the Master Trust and the aggregate principal amount of the funds in the Excess Funding Account, each
as of the Business Day prior to the related Determination Date. 
 “Projected VFN Monthly Interest” shall mean,
on any Transfer Date, an amount equal to the product of (a) the Series 2012-VFN Interest Rate for the related Distribution Date, (b) the Series 2012-VFN Outstanding Principal Amount as of such Transfer Date (after giving effect to any
prepayment or incremental funding on or prior to the related Distribution Date), (c) the result of (i) the actual number of days in the Interest Period following the Interest Period related to such Transfer Date divided by (ii) 360
and (d) 1.25. 
 “Purchase Expiration Date” shall have the meaning specified in the Note Purchase
Agreement. 
 “Purchaser Group” shall have the meaning specified in the Note Purchase Agreement. 

“Receivables Trust” means, on or prior to the 1995 Trust Termination Date, the Master Trust and, after the 1995 Trust
Termination Date, the Issuing Entity. 
 “Reinstatement Amount” is defined in Section 3.01(a)(v).

 “Required Seller’s Percentage” means 0%. 

“Revolving Period” means the period beginning on the Issuance Date and ending when an Early Redemption Period begins.

 “Scheduled Purchase Expiration Date” shall have the meaning specified in the Note Purchase Agreement.

 “Seller’s Interest” means, on or prior to the 1995 Trust Termination Date, the Master Trust
Seller’s Interest as defined in the 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, the Seller’s Interest as defined in the Pooling and Servicing Agreement. 

“Series 2012-VFN Accounts” is defined in Section 3.10(a). 

“Series 2012-VFN Allocated Dealer Note Losses” means, with respect to any Due Period and the related Transfer Date, the
product of the Series 2012-VFN Variable Allocation Percentage for such Due Period and Dealer Note Losses for such Due Period. 

“Series 2012-VFN Allocated Interest Amounts” means, with respect to any Due Period and the related Transfer Date, the
product of the Series 2012-VFN Variable Allocation Percentage for such Due Period and Finance Charge Collections for such Due Period. 
 “Series 2012-VFN Allocated Principal Amounts” means, with respect to any Business Day, the product of the Series 2012-VFN Fixed Allocation Percentage for such Business Day and Principal
Collections for such Business Day. 

  
 13 

 “Series 2012-VFN Available Interest Amounts” means, with respect to any Due
Period and the related Transfer Date, an amount equal to: 
  

	 	(i)	the Series 2012-VFN Allocated Interest Amounts for such Due Period; 

  

	 	(ii)	plus any net investment earnings for such Due Period on funds in the Series 2012-VFN Interest Funding Account, the Series 2012-VFN Principal Funding Account and
the Series 2012-VFN Spread Account; 

  

	 	(iii)	plus the Series 2012-VFN Investment Income; 

  

	 	(iv)	plus any Excess Available Interest Amounts allocated to Series 2012-VFN on the related Transfer Date pursuant to Section 3.01(b);

  

	 	(v)	plus any Excess Interest Collections allocated to Series 2012-VFN on the related Transfer Date pursuant to Section 3.01(b); 

 

	 	(vi)	plus any amount treated as Series 2012-VFN Available Interest Amounts pursuant to Sections 3.01(c)(i) and (ii). 

“Series 2012-VFN Available Principal Amounts” means, with respect to any Business Day, an amount equal to: 

 

	 	(i)	the Series 2012-VFN Allocated Principal Amounts for such Business Day; 

  

	 	(ii)	plus, if such Business Day is a Transfer Date, any Series 2012-VFN Available Interest Amounts used to fund the Series 2012-VFN Noteholder Allocated Dealer Note
Losses for the related Due Period on such Transfer Date pursuant to Section 3.01(a)(iii); 

  

	 	(iii)	plus, if such Business Day is a Transfer Date, any Series 2012-VFN Available Interest Amounts used to reinstate any reduction in the Series 2012-VFN Collateral
Amount for the related Due Period on such Transfer Date pursuant to Sections 3.01(a)(v) and 3.03(c); 

  

	 	(iv)	plus any Excess Available Principal Amounts allocated to Series 2012-VFN on such Transfer Date pursuant to Section 3.02(b); 

 

	 	(v)	plus any Shared Principal Collections allocated to Series 2012-VFN on such Transfer Date pursuant to Section 3.02(b); 

 

	 	(vi)	plus, if such Business Day is a Transfer Date and the Series 2012-VFN Notes are in an Early Redemption Period, any Series 2012-VFN Available Interest Amounts
treated as Series 2012-VFN Available Principal Amounts pursuant to Section 3.01(a)(ix). 

“Series 2012-VFN Backup Servicing Expenses” means, with respect to any Transfer Date, the product of (a) the Backup
Servicing Expenses, multiplied by (b) a fraction (i) the 

  
 14 

 
numerator of which is the daily average Series 2012-VFN Nominal Liquidation Amount for each day of the related Due Period and (ii) the denominator of which is the daily average Aggregate
Trust Balance for each day of the related Due Period. 
 “Series 2012-VFN Backup Servicing Fee” means, with
respect to any Transfer Date, the product of (a) 1/12 of the Base Backup Servicing Fee, multiplied by (b) a fraction (i) the numerator of which is the daily average Series 2012-VFN Nominal Liquidation Amount for each day of the
related Due Period and (ii) the denominator of which is the daily average Aggregate Trust Balance for each day of the related Due Period. 
 “Series 2012-VFN Collateral Amount” equals, as of any date of determination, the sum of the Series 2012-VFN Nominal Liquidation Amount (calculated without subtraction of amounts on
deposit in the Principal Funding Account) and the Series 2012-VFN Overcollateralization Amount; provided, however, that (a) for purposes of calculating the Noteholder Floating Allocation Percentage, the Series 2012-VFN Variable
Allocation Percentage, the variable allocation percentage for each other Series of Notes, and similar provisions, (i) during the Revolving Period, the Collateral Amount for the Series 2012-VFN as of the last day of any Due Period shall be
deemed to be the average daily Series 2012-VFN Collateral Amount for each day in the Due Period following such last day and (ii) during any Early Redemption Period, the Collateral Amount for the Series 2012-VFN as of the last day of any Due
Period shall be the Collateral Amount as of such last day and (b) for purposes of calculating the Noteholder Principal Allocation Percentage, the Series 2012-VFN Fixed Allocation Percentage, the fixed allocation percentage for each other Series
of Notes, and similar provisions, (i) the Collateral Amount for the Series 2012-VFN as of the last day of any Due Period shall be deemed to be the amount of the Series 2012-VFN Collateral Amount as of the date of determination of the applicable
allocation percentage (or, with respect to any day prior to the Issuance Date, the Issuance Date) and (ii) the Collateral Amount as of the last day of any Due Period ending prior to the commencement of an amortization, repayment or accumulation
period shall be deemed to be the Series 2012-VFN Collateral Amount as of the last day prior to the commencement of such amortization, repayment or accumulation period; provided further, that for purposes of calculating the Series Allocation
Percentage (and the Adjusted Invested Amount used for purposes of such calculation) during the Revolving Period, the Collateral Amount for the Series 2012-VFN as of the end of a Distribution Date shall be deemed to be the average daily Series
2012-VFN Collateral Amount for each day in the Due Period following such Distribution Date. 
 “Series 2012-VFN Fixed
Allocation Percentage” means (a) with respect to any Business Day on or prior to the 1995 Trust Termination Date, the percentage equivalent of a fraction never greater than 100% or less than 0% equal to: 

 

	 	(i)	the numerator of which is the Series 2012-VFN Collateral Amount as of such date (or the Issuance Date in the case of any Business Day prior to the first Transfer Date)
or, if an Early Redemption Period has commenced, as of the day prior to the commencement of the Early Redemption Period; and 

  

	 	(ii)	 the denominator of which is the sum of the Collateral Amounts for all Series of Notes as of the last day of the immediately preceding Due Period (or
the issuance 

  
 15 

	 	
date of that Series in the case of any Business Day prior to the first Transfer Date), except that for any Series of Notes that is amortizing, repaying or accumulating principal, the Collateral
Amount of that Series shall be fixed as of the last day of the Due Period ending prior to the commencement of such amortization, repayment or accumulation; and 

 (b) with respect to any Business Day after the 1995 Trust Termination Date, the percentage equivalent of a fraction never greater than 100% or less than 0% equal to: 

 

	 	(iii)	the numerator of which is the Series 2012-VFN Collateral Amount as of such day or, if an Early Redemption Period has commenced, as of the day prior to the commencement
of the Early Redemption Period; and 

  

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

 “Series 2012-VFN Interest Funding Account” means the account designated as such and established pursuant to Section 3.10(a). 

“Series 2012-VFN Interest Rate” means for any Distribution Date, the percentage equivalent of a fraction (a) the
numerator of which is the product of (i) the Series 2012-VFN Monthly Interest to be paid on such Distribution Date (excluding any portion thereof consisting of the Series 2012-VFN Monthly Interest carried over from the prior Distribution Date
and interest on such unpaid Series 2012-VFN Monthly Interest) and (ii) a fraction, the numerator of which is 365 and the denominator of which is the number of days for which such Series 2012-VFN Monthly Interest was calculated and (b) the
denominator of which is the weighted average Series 2012-VFN Outstanding Principal Amount for the related Interest Period. 

“Series 2012-VFN Investment Income” means, with respect to any Due Period and the Series 2012-VFN Notes, the product of
the Series 2012-VFN Variable Allocation Percentage for such Due Period and Investment Income for such Due Period. 

“Series 2012-VFN Monthly Interest” shall have the meaning specified in the Note Purchase Agreement. 

“Series 2012-VFN Nominal Liquidation Amount” means, at any time: 

 

	 	(i)	the Series 2012-VFN Outstanding Principal Amount; 

  

	 	(ii)	minus the reductions to the Series 2012-VFN Nominal Liquidation Amount pursuant to Section 3.03(b) on or prior to such date of determination;

  

	 	(iii)	plus the reinstatements of the Series 2012-VFN Nominal Liquidation Amount pursuant to Section 3.03(d) on or prior to such date of determination;

  
 16 

	 	(iv)	minus the amount (other than investment earnings) then on deposit in the Series 2012-VFN Principal Funding Account (after giving effect to any deposits,
allocations, reallocations or withdrawals to be made on that day) up to the amount that would reduce the Series 2012-VFN Nominal Liquidation Amount to zero; 

 provided, however, the Series 2012-VFN Nominal Liquidation Amount may never be greater than the Series 2012-VFN Outstanding Principal Amount or less than zero. 

“Series 2012-VFN Noteholder” means a Person in whose name a Series 2012-VFN Note is registered in the Note Register.

 “Series 2012-VFN Noteholder Allocated Dealer Note Losses” means, with respect to any Due Period, the product
of (a) Series 2012-VFN Allocated Dealer Note Losses for such Due Period and (b) the quotient of (i) the Series 2012-VFN Nominal Liquidation Amount as of the preceding Transfer Date, divided by (ii) the Series 2012-VFN
Collateral Amount as of the preceding Transfer Date. 
 “Series 2012-VFN Notes” is defined in
Section 2.01. 
 “Series 2012-VFN Outstanding Principal Amount” means, for any date of
determination, an amount equal to the Initial Series 2012-VFN Outstanding Principal Amount, plus the aggregate of all Incremental Funded Amounts with respect to the Variable Funding Notes for all Incremental Fundings occurring on or prior to
such date, minus any principal payments made to holders of the Variable Funding Notes on or prior to such date. As applied to any particular Variable Funding Note, the “Series 2012-VFN Outstanding Principal Amount” means the portion
of the overall Series 2012-VFN Outstanding Principal Amount represented by that Variable Funding Note. 
 “Series
2012-VFN Overcollateralization Amount” means: 
  

	 	(a)	with respect to the Issuance Date, after giving effect to the Incremental Funding made on such date, $110,364,960.00; and 

 

	 	(b)	with respect any subsequent date, an amount equal to the Series 2012-VFN Overcolleralization Amount determined as of the immediately preceding Transfer Date (or with
respect to the initial Transfer Date, the Series 2012-VFN Overcollateralization Amount as of the Issuance Date); 

  

	 	(i)	plus an amount equal to the Incremental Overcollateralization Amount for each Incremental Funding, if any, since such prior Transfer Date;

  

	 	(ii)	minus an amount equal to the Overcollateralization Reduction Amount for each principal payment made to holders of the Series 2012-VFN Notes, if any, since such
prior Transfer Date; provided, however, that if an Early Redemption Period has commenced, this clause (ii) shall not be given effect; 

  
 17 

	 	(iii)	plus an amount equal to the increase, if any, in the Series 2012-VFN Target Overcollateralization Amount as a result of a change in the Series 2012-VFN
Overcollateralization Factor since such prior Transfer Date; 

  

	 	(iv)	minus an amount equal to the decrease, if any, in the Series 2012-VFN Target Overcollateralization Amount as a result of a change in the Series 2012-VFN
Overcollateralization Factor since such prior Transfer Date; 

  

	 	(v)	minus all reallocations of the Series 2012-VFN Available Principal Amounts used to pay the Series 2012-VFN Monthly Interest on the Series 2012-VFN Notes that
have been allocated to the Series 2012-VFN Overcollateralization Amount pursuant to Section 3.03(b)(i) since such prior Transfer Date; 

  

	 	(vi)	minus all allocations of Series 2012-VFN Noteholder Allocated Dealer Note Losses that have been allocated to the Series 2012-VFN Overcollateralization Amount
pursuant to Section 3.03(b)(i) since such prior Transfer Date; 

  

	 	(vii)	minus the amount, if any, deposited into the Series 2012-VFN Spread Account pursuant to Section 3.02(a)(iii) that has been allocated to the Series
2012-VFN Overcollateralization Amount pursuant to Section 3.03(b)(i) since such prior Transfer Date; 

  

	 	(viii)	plus all reinstatements of the Series 2012-VFN Overcollateralization Amount pursuant to Section 3.03(d)(ii) since such prior Transfer Date;

 provided, however, that the Transferor may in its discretion at any time and from time to time increase the
Series 2012-VFN Overcollateralization Amount (together with any discretionary amounts added to the Spread Account) by up to 5.0% in the aggregate of the Series 2012-VFN Nominal Liquidation Amount by allocating a portion of the Seller’s Interest
thereto, but only to the extent that it will not result in the Seller’s Interest being less than the Minimum Seller’s Interest. 
 “Series 2012-VFN Overcollateralization Factor” means 31.50%; provided, however, if any outstanding series of Notes issued by the Issuing Entity or Navistar Financial Dealer
Note Master Owner Trust rated upon initial issuance in the AAA/Aaa category by either Moody’s or S&P is downgraded to below AAA/Aaa, the Series 2012-VFN Overcollateralization Factor will be set at the level reasonably determined by the
Administrative Agent necessary (together with any change to the Spread Account Required Percentage) to support a rating in the AAA/Aaa category for long-term debt on the Series 2012-VFN Notes, subject to the consent of the Depositor or, if the
Depositor shall not so consent, the Purchase Expiration Date shall be deemed to have occurred. 
 “Series 2012-VFN
Overcollateralization Percentage” means the percentage equivalent of a fraction, the numerator of which is the Series 2012-VFN Overcollateralization Factor and the denominator of which is 1.00 minus the Series 2012-VFN Overcollateralization
Factor. 
 “Series 2012-VFN Principal Funding Account” means the trust account designated as such and
established pursuant to Section 3.10(a). 

  
 18 

 “Series 2012-VFN Required Excess Seller’s Interest” equals, for the
Series 2012-VFN Notes, with respect to any Business Day, the Required Seller’s Percentage times the Series 2012-VFN Nominal Liquidation Amount as of that day. 
 “Series 2012-VFN Servicing Fee” means, with respect to any Transfer Date, the product of (a) the product of (i) 1/12, (ii) 1.0%, and (iii) the Aggregate Receivables
Balance as of the last day of the related Due Period, multiplied by (b) a fraction (i) the numerator of which is the daily average Series 2012-VFN Nominal Liquidation Amount for each day of the related Due Period and (ii) the
denominator of which is the daily average Aggregate Trust Balance for each day of the related Due Period. 
 “Series
2012-VFN Shared Principal Collections” shall be as defined in Section 3.02(b). 
 “Series 2012-VFN
Spread Account” means the account designated as such and established pursuant to Section 3.10(a). 

“Series 2012-VFN Target Overcollateralization Amount” means, with respect to any Transfer Date, the product of the
Series 2012-VFN Overcollateralization Percentage and Series 2012-VFN Nominal Liquidation Amount as of such Transfer Date (after giving effect to any paydown or Incremental Funding to occur on such date); provided, however, that if an
Early Redemption Period has commenced, the Series 2012-VFN Nominal Liquidation Amount for the purpose of calculating the Series 2012-VFN Target Overcollateralization Amount shall be the Series 2012-VFN Nominal Liquidation Amount as of the last day
immediately preceding the Early Redemption Period. 
 “Series 2012-VFN Termination Date” means the earlier of
(a) the Distribution Date after the Purchase Expiration Date on which the Series 2012-VFN Outstanding Principal Amount and all Series 2012-VFN Monthly Interest, Non-Use Fees and Additional Amounts have been paid in full or the Series 2012-VFN
Collateral Amount is reduced to zero and (b) the Distribution Date thirty six (36) months after the Legal Final Maturity Date. 
 “Series 2012-VFN Unreimbursed Amount” means, as of any Transfer Date, the sum of the Nominal Liquidation Amount Deficit and the Overcollateralization Amount Deficit both as of such
Transfer Date. 
 “Series 2012-VFN Variable Allocation Percentage” means (a) with respect to any Due
Period on or prior to the 1995 Trust Termination Date, the percentage equivalent of a fraction never greater than 100% or less than 0% equal to: 
  

	 	(i)	the numerator of which is the average daily Series 2012-VFN Collateral Amount for each date in such Due Period; 

 

	 	(ii)	the denominator of which is the sum of the amount in clause (i) above and aggregate of the Collateral Amounts for each other series of Notes as of the last day of
the immediately preceding Due Period (or the issuance date if none); and 

 (b) with respect to any Due Period
after the 1995 Trust Termination Date, the percentage equivalent of a fraction never greater than 100% or less than 0% equal to: 

  
 19 

	 	(iii)	the numerator of which is the daily average of the Series 2012-VFN Collateral Amount for each day during such Due Period; and 

 

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

 “Series Allocable Finance Charge Collections” has the meaning set forth in the Series Supplement. 
 “Series Available Interest Amounts Shortfall” means, with respect to any Transfer Date and the Series 2012-VFN Notes, the excess, if any, of (a) the aggregate amount required to be
applied pursuant to Sections 3.01(a)(i) through (v) for such Transfer Date over (b) the Series 2012-VFN Available Interest Amount (excluding amounts to be treated as part of the Series 2012-VFN Available Interest Amount
pursuant to clauses (iv) and (v) of the definition thereof) for such Transfer Date. 
 “Series
Available Principal Amounts Shortfall” means, with respect to any Business Day and the Series 2012-VFN Notes, an amount equal to the amount, if any, by which (i) the sum of all payments and other applications of Series 2012-VFN
Available Principal Amounts (other than as Excess Available Principal Amounts) required to be made under Section 3.02 on such Business Day exceeds (ii) the related Series 2012-VFN Available Principal Amounts (excluding amounts to be
treated as part of Series 2012-VFN Available Principal Amounts pursuant to clauses (iv) and (v) of the definition thereof) on such Business Day. 
 “Series Reassignment Amount” means, with respect to the Series 2012-VFN Notes and a Transfer Date, the sum of (a) the Series 2012-VFN Nominal Liquidation Amount, (b) all accrued
and unpaid Series 2012-VFN Monthly Interest on the Series 2012-VFN Notes, in each case as of that Transfer Date and (c) accrued and unpaid Non-Use Fees and Additional Amounts. 

“Series Required Seller’s Interest” means, for the Series 2012-VFN Notes, with respect to any Business Day, the sum
of (a) the Series 2012-VFN Overcollateralization Amount as of that Business Day and (b) Series 2012-VFN Required Excess Seller’s Interest as of that Business Day. 

“Servicer” means, on or prior to the 1995 Trust Termination Date, the Servicer as defined in 1995 Pooling and Servicing
Agreement and, after the 1995 Trust Termination Date, the Servicer as defined in the Pooling and Servicing Agreement. 

“Servicer Certificate” is defined in Section 3.13(a). 

“Servicer Termination Event” means, on or prior to the 1995 Trust Termination Date, a Servicer Termination Event as
defined in 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, a Servicer Termination Event as defined in the Pooling and Servicing Agreement. 

  
 20 

 “Spread Account Deposit Amount” means, with respect to any Transfer Date
prior to the earlier of (a) the payment in full of the outstanding principal amount of the Series 2012-VFN Notes and (b) the Series 2012-VFN Termination Date, the amount, if any, by which the Spread Account Required Amount for that
Transfer Date exceeds the amount of funds on deposit in the Series 2012-VFN Spread Account. 
 “Spread Account Initial
Deposit” means $5,256,000.00. 
 “Spread Account Required Amount” means, with respect to any date
prior to the initial Transfer Date, $5,256,000.00, and with respect to any subsequent Transfer Date, the sum of (a) the positive amount, if any, by which (i) the sum of (A) the Projected VFN Monthly Interest as of such Transfer Date,
(B) the Projected Monthly Servicing Fee as of such Transfer Date, (C) the Projected Monthly Backup Servicing Fee as of such Transfer Date and (D) the Projected Monthly Backup Servicing Expenses as of such Transfer Date exceeds
(ii) the Projected Dealer Note Income as of such Transfer Date and (b) an amount equal to the product of (i) the Spread Account Percentage and (ii)(x) during the Revolving Period, the Series 2012-VFN Collateral Amount as of such
Transfer Date (after giving effect to any prepayment or Incremental Funding to be made on such date) or (y) during an Early Redemption Period, the Series 2012-VFN Collateral Amount as of the last day of the Revolving Period. 

“Spread Account Percentage” means, with respect to any Transfer Date, 1.50%; provided, however, if and for
so long as the average Monthly Payment Rate for any three consecutive Due Periods is less than 20.0%, then the Spread Account Required Percentage shall be equal to 3.00%; provided, further, that if any outstanding series of Notes
issued by the Issuing Entity or Navistar Financial Dealer Note Master Owner Trust rated upon initial issuance in the AAA/Aaa category by either Moody’s or S&P is downgraded to below AAA/Aaa, the Spread Account Percentage will be set at the
level reasonably determined by the Administrative Agent necessary (together with any change to the Series 2012-VFN Overcollateralization Factor) to support a rating in the AAA/Aaa category for long-term debt on the 2012-VFN Notes, subject to the
consent of the Depositor, or, if the Depositor shall not so consent, the Purchase Expiration Date shall be deemed to have occurred. 
 “Transferor” means, on or prior to the 1995 Trust Termination Date, the Seller as defined in 1995 Pooling and Servicing Agreement and, after the 1995 Trust Termination Date, the Depositor
as defined in the Pooling and Servicing Agreement. 
 “US Borrower” shall have the meaning specified in the
Credit Agreement. 
 “Used Vehicle Concentration Limit” means 25%. 

“Used Vehicle Monthly Interest Rate” shall mean, with respect to any Due Period, the product of (i) the per annum
rate of interest and finance charges billed by NFC during such Due Period on Used Vehicle Dealer Notes and (ii) the quotient of (a) a number equal to the number of days during such Due Period and (b) the actual number of days in the
related calendar year. 
 “Variable Funding Notes” means the Navistar Financial Dealer Note Master Owner Trust
II Floating Rate Dealer Note Asset Backed Variable Funding Notes, Series 2012-VFN. 

  
 21 

 ARTICLE II 

The Notes 
 
Section 2.01 Creation, Designation and Delivery. 
 (a) There is hereby created and designated a Series (the
“Series 2012-VFN”) of Notes to be issued pursuant to the Indenture and this Indenture Supplement to be known as “Navistar Financial Dealer Note Master Owner Trust II Floating Rate Dealer Note Asset Backed Variable Funding
Notes, Series 2012-VFN” or the “Series 2012-VFN Notes.” The Series 2012-VFN Notes shall be issued in one Class, executed by the Issuing Entity and authenticated by or on behalf of the Indenture Trustee, substantially in the
form of Exhibit A. 
 (b) Series 2012-VFN shall be in Excess Interest Sharing Group One and in Principal Sharing Group
One. Series 2012-VFN shall not be a Shared Enhancement Series or in an Interest Reallocation Group. The Series 2012-VFN Notes are a series of variable funding notes, meaning that the Series 2012-VFN Outstanding Principal Amount may be increased from
time to time during the Revolving Period as Incremental Fundings are made under the Note Purchase Agreement and may be decreased from time to time as funds are distributed to the Series 2012-VFN Noteholders for the purpose of paying principal
thereof. The Series 2012-VFN Outstanding Principal Amount may not at any time exceed the Maximum Funded Amount. The Series 2012-VFN Notes shall not be subordinate to any other Series. 

(c) The Series 2012-VFN Notes shall be delivered in the form of Registered Notes as provided in Sections 2.02, 2.03 and
3.01 of the Indenture. 
 (d) The Series 2012-VFN Notes shall not have any minimum denominations. 

(e) The Issuing Entity shall execute and deliver the Series 2012-VFN Notes to the Indenture Trustee for authentication, and the Indenture
Trustee shall deliver the Series 2012-VFN Notes when authenticated, each in accordance with Section 3.03 of the Indenture. 
 Section 2.02 Incremental Fundings. Incremental Fundings may occur on any Business Day to the extent permitted under in the Note Purchase Agreement. Upon any
Incremental Funding, the Series 2012-VFN Outstanding Principal Amount, the Series 2012-VFN Nominal Liquidation Amount, the Series 2012-VFN Overcollateralization Amount, the Series 2012-VFN Collateral Amount and other terms will be reset to the
extent provided herein and in the Note Purchase Agreement. 
 Section 2.03
Prepayments 
 (a) Prior to the 1995 Trust Termination Date, on any Distribution Date, and, after the 1995 Trust
Termination Date, on any Business Day during the Revolving Period, the Issuing Entity may cause the principal portion of the Series 2012-VFN Notes to be prepaid in full or in part, (x) if the aggregate principal amount of such prepayment is
greater than $10,000,000, on not less than three Business Days prior written notice by the Servicer or (y) otherwise, on not less than one Business Day prior written notice by the Servicer, in each case, to the Indenture Trustee and the
Administrative Agent in accordance with the Note Purchase Agreement; provided, however that such prepayment shall not be permitted unless all due (or, if the Series 2012-VFN Notes are paid in full and terminated, all accrued) and
unpaid Series 2012-VFN Monthly Interest, Additional Amounts and Non-Use Fees have been paid in full. 

  
 22 

 (b) In addition, on any Business Day, the Issuing Entity may cause the principal portion of
the Series 2012-VFN Notes to be prepaid in full or in part, (x) if the aggregate principal amount of such prepayment is greater than $10,000,000, on not less than three Business Days prior written notice by the Servicer or (y) otherwise,
on not less than one Business Day prior written notice by the Servicer, in each case, to the Indenture Trustee and the Administrative Agent, with the proceeds from issuance of a new Series issued substantially contemporaneously with such prepayment
in accordance with the Note Purchase Agreement; provided, however that such prepayment shall not be permitted unless all due (or, if the Series 2012-VFN Notes are paid in full and terminated, all accrued) and unpaid Series 2012-VFN
Monthly Interest, Additional Amounts and Non-Use Fees have been paid in full. 
 (c) The Servicer shall not give notice of any
prepayment pursuant to Section 2.03(a) unless the Issuing Entity has funds sufficient to make such prepayment on the day notice is given and shall not give notice of any prepayment pursuant to Section 2.03(b) unless the
Issuing Entity has obtained binding commitments which may be subject to customary conditions from one or more persons to purchase the new series in such amounts as will yield the net proceeds necessary to make the prepayment. 

(d) On the Commitment Step-Down Date, the Issuing Entity shall cause the principal portion of the Series 2012-VFN Notes to be prepaid in
full or in part so that the Funded Amount shall not exceed the Maximum Funded Amount (after giving effect to the Step-Down Commitments). 
 ARTICLE III 
 Allocations, Deposits and Payments

 Section 3.01 Series 2012-VFN Available Interest Amounts. 

(a) Allocation of Series 2012-VFN Available Interest Amounts. On each Transfer Date, the Indenture Trustee, at the written
direction of the Servicer, shall apply Series 2012-VFN Available Interest Amounts as follows: 
  

	 	(i)	first, on a pro rata basis (a) to the Servicer, the Series 2012-VFN Servicing Fee due on such Transfer Date (to the extent it has not been deferred by the Servicer
for such Transfer Date, and if the Servicer shall defer any Series 2012-VFN Servicing Fee, the Servicer shall give notice of such deferral to the Administrative Agent) and (b) to the Backup Servicer, the Series 2012-VFN Backup Servicing Fee due
on such Transfer Date; 

  

	 	(ii)	second, to the Series 2012-VFN Interest Funding Account, first, in an amount equal to the Series 2012-VFN Monthly Interest for such Distribution Date, second, in an
amount equal to the Non-Use Fees for such Distribution Date, and, third, in an amount equal to the Additional Amounts for such Distribution Date, but, in the case of this clause third, not in excess of 0.40% of the average Series 2012-VFN Collateral
Amount during the related Due Period; 

  
 23 

	 	(iii)	third, to the Series 2012-VFN Spread Account, an amount equal to the Spread Account Deposit Amount for such Transfer Date; 

 

	 	(iv)	fourth, any remaining Series 2012-VFN Available Interest Amounts shall be treated as Series 2012-VFN Available Principal Amounts to the extent of the amount of Series
2012-VFN Noteholder Allocated Dealer Note Losses for the related Due Period; 

  

	 	(v)	fifth, any remaining Series 2012-VFN Available Interest Amounts shall be treated as Series 2012-VFN Available Principal Amounts for the reinstatement of the Series
2012-VFN Collateral Amount to the extent of the Series 2012-VFN Unreimbursed Amount (the amount being reinstated is referred to as the “Reinstatement Amount”); 

 

	 	(vi)	sixth, to the Servicer, any Series 2012-VFN Servicing Fee which had been previously deferred unless that amount has been deferred again; 

 

	 	(vii)	seventh, to the Series 2012-VFN Interest Funding Account, an amount equal to any Additional Amounts for the related Distribution Date not paid pursuant to
Section 3.01(a)(ii); 

  

	 	(viii)	eighth, to the Backup Servicer, the Series 2012-VFN Backup Servicing Expenses due on such Transfer Date; 

 

	 	(ix)	ninth, if the Series 2012-VFN Notes are in an Early Redemption Period, any remaining Series 2012-VFN Available Interest Amounts shall be treated as Series 2012-VFN
Available Principal Amounts to the extent of the Series 2012-VFN Nominal Liquidation Amount (after taking into account any reinstatements of the 2012-VFN Nominal Liquidation Amount pursuant to Section 3.01(a)(v) on such Transfer Date);
and 

  

	 	(x)	tenth, any remaining Series 2012-VFN Available Interest Amounts shall be treated as Excess Available Interest Amounts and allocated pursuant to Section 5.02
of the Indenture. 

 (b) Excess Available Interest Amounts; Excess Interest Collections. On each Transfer
Date, commencing with the initial Transfer Date, if Series-2012-VFN Available Interest Amounts are insufficient to make the allocations provided in Sections 3.01(a)(i) through (v) and (vii) above, the Servicer shall
allocate Excess Available Interest Amounts, if any, allocated to Series 2012-VFN pursuant to Section 5.02 of the Indenture to cover the Series Available Interest Amounts Shortfall. If, after the application of Excess Available Interest
Amounts, any Series Available Interest Amounts Shortfall remains, the Indenture Trustee at the written direction of the Servicer shall allocate Excess Interest Collections, if any, allocated to Series 2012-VFN pursuant to Section 5.02 of
the Indenture to cover such remaining Series Available Interest Amounts Shortfall. 

  
 24 

	 	(c)	Spread Account Draws. 

  

	 	(i)	On any Transfer Date, at the written direction of the Servicer and to the extent that Series 2012-VFN Available Interest Amounts (without giving effect to clause
(vi) of the definition thereof) are insufficient to pay in full the amounts set forth in Section 3.01(a)(ii), the Indenture Trustee shall withdraw funds from the Series 2012-VFN Spread Account in an amount equal to the lesser of
(A) the amount of such shortfall and (B) the amount on deposit in the Series 2012-VFN Spread Account (after giving effect to any withdrawals from the Series 2012-VFN Spread Account on such Transfer Date other than a withdrawal pursuant to
Sections 3.01(c)(i), (ii) and (iii) on such date) and treat such funds as “Series 2012-VFN Available Interest Amounts.” 

 

	 	(ii)	If the Series 2012-VFN Notes are in an Early Redemption Period, at the written direction of the Servicer and to the extent that Series 2012-VFN Available Interest
Amounts (without giving effect to clause (vi) of the definition thereof) are insufficient to pay in full the amount described in Section 3.01(a)(iv), the Indenture Trustee shall withdraw funds from the Series 2012-VFN Spread
Account in an amount equal to the lesser of (A) the amount of such shortfall and (B) the amount on deposit in the Series 2012-VFN Spread Account (after giving effect to any withdrawals from the Series 2012-VFN Spread Account on such
Transfer Date) and treat such funds as “Series 2012-VFN Available Interest Amounts.” 

  

	 	(iii)	On the Series 2012-VFN Termination Date, in addition, after applying funds on deposit in the Spread Account pursuant to Sections 3.01(c)(i) and (ii), if
the Series 2012-VFN Outstanding Principal Amount remains greater than zero, the Indenture Trustee shall, at the written direction of the Servicer, apply funds from the Spread Account to repay the Series 2012-VFN Outstanding Principal Amount in full,
together with any unpaid Non-Use Fees and Additional Amounts. 

 Section 3.02
Series 2012-VFN Available Principal Amounts. 
  

	 	(a)	Allocation of Series 2012-VFN Available Principal Amounts. On each Business Day, the Indenture Trustee, at the written direction of the Servicer, shall apply
Series 2012-VFN Available Principal Amounts as follows: 

  

	 	(i)	first, if the Series 2012-VFN Available Interest Amounts are insufficient to make the payments on the Series 2012-VFN Notes pursuant to Section 3.01(a)(ii),
to the Series 2012-VFN Interest Funding Account, an amount equal to the lesser of (i) the amount of that shortfall and (ii) the Series 2012-VFN Collateral Amount (after taking into account any reinstatements pursuant to
Section 3.03(d) and reductions due to Section 3.03(a)(ii)); 

  
 25 

	 	(ii)	second, on the Expected Principal Distribution Date or, if the Series 2012-VFN Notes are in an Early Redemption Period, on each Distribution Date during the Early
Redemption Period, to the Series 2012-VFN Principal Funding Account any remaining Series 2012-VFN Available Principal Amounts to the extent of the Series 2012-VFN Nominal Liquidation Amount (computed before giving effect to such deposit but after
giving effect to any reinstatements pursuant to Section 3.03(d)(i) and reductions pursuant to Sections 3.03(a)(i) and (ii)) for payment to the Series 2012-VFN Noteholders; 

 

	 	(iii)	third, if the Series 2012-VFN Notes are not in an Early Redemption Period, to the extent that the Spread Account Deposit Amount is greater than zero (after giving
effect to any other deposits to or withdrawals from the Series 2012-VFN Spread Account on such Transfer Date, reductions to the Series 2012-VFN Nominal Liquidation Amount in accordance with Sections 3.03(a)(i) and (ii) and
reinstatements pursuant to Section 3.03(d)(i)), to the Series 2012-VFN Spread Account an amount equal to such Spread Account Deposit Amount (not taking into account any increase in the Spread Account Required Amount as a result of a
decrease in the Monthly Payment Rate); and 

  

	 	(iv)	fourth, any remaining Series 2012-VFN Available Principal Amounts shall be treated as Excess Available Principal Amounts and allocated pursuant to
Section 5.02 of the Indenture. 

  

	 	(b)	Excess Available Principal Amounts; Shared Principal Collections. 

  

	 	(i)	On each Business Day, commencing after the Issuance Date, if Series 2012-VFN Available Principal Amounts are insufficient to make the allocations provided in
Sections 3.02(a)(i) through (iii) above, the Indenture Trustee shall allocate Excess Available Principal Amounts, if any, allocated to Series 2012-VFN pursuant to Section 5.02 of the Indenture to cover the Series
Available Principal Amounts Shortfall. 

  

	 	(ii)	If, after the application of Excess Available Principal Amounts, any Series Available Principal Amounts Shortfall remains, the Indenture Trustee shall allocate Shared
Principal Collections, if any, allocated to Series 2012-VFN pursuant to Section 5.02 of the Indenture to cover such remaining Series Available Principal Amounts Shortfall. 

 

	 	(iii)	If any Shared Principal Collections remain after application to any other Series, the Issuing Entity may cause all or any portion of such Shared Principal Collections
to be retained and allocated to the Series 2012-VFN Noteholders and deposited in the Series 2012-VFN Principal Funding Account on the related Transfer Date to make any prepayment permitted by Section 2.03 hereof.

  
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 Section 3.03 Reductions and Reinstatements. The
Series 2012-VFN Collateral Amount, the Series 2012-VFN Overcollateralization Amount and the Series 2012-VFN Nominal Liquidation Amount shall be calculated by the Servicer on each Transfer Date or upon an Incremental Funding or repayment as provided
in the Note Purchase Agreement and shall be reduced and reinstated as described below. The Servicer (and not the Indenture Trustee) shall solely be responsible for making the calculations pursuant to this Section 3.03, and the Indenture
Trustee may rely upon the information with respect thereto set forth in the applicable Servicer Certificate. 
 (a)
Reductions. The Series 2012-VFN Nominal Liquidation Amount and the Series 2012-VFN Overcollateralization Amount shall be reduced in the order described in Section 3.03(b) below by the following amounts allocated with respect to
that Transfer Date: 
  

	 	(i)	the amount, if any, of the Series 2012-VFN Available Principal Amounts used to pay Series 2012-VFN Monthly Interest on the Series 2012-VFN Notes as described in
Section 3.02(a)(i); 

  

	 	(ii)	the amount of Series 2012-VFN Noteholder Allocated Dealer Note Losses for such Due Period to the extent that they are not covered by Series 2012-VFN Available Interest
Amounts as described in Section 3.01(a)(iii); and 

  

	 	(iii)	the amount, if any, deposited into the Series 2012-VFN Spread Account in accordance with Section 3.02(a)(iii). 

(b) Allocation of Reductions. On each Transfer Date, the amount of any reduction in the Series 2012-VFN Collateral Amount due to
Sections 3.03(a)(i), (ii) and (iii) above shall be allocated as follows: 
  

	 	(i)	first, the Series 2012-VFN Overcollateralization Amount (computed without giving effect to any reductions due to Sections 3.03(a)(i) through (iii) on
such date) shall be reduced by the amount of such reduction until the Series 2012-VFN Overcollateralization Amount is reduced to zero; and 

  

	 	(ii)	second, the Series 2012-VFN Nominal Liquidation Amount (computed without giving effect to any reductions due to Sections 3.03(a)(i) through (iii) on
such date) shall be reduced by any remaining amount until the Series 2012-VFN Nominal Liquidation Amount is reduced to zero. 

 (c) Reinstatements. The Series 2012-VFN Nominal Liquidation Amount and the Series 2012-VFN Overcollateralization Amount shall be reinstated on any Transfer Date by the amount of the Series 2012-VFN
Available Interest Amounts that are applied to cover the Reinstatement Amount for that Transfer Date pursuant to Section 3.01(a)(v). 
 (d) Allocation of Reinstatements. The Reinstatement Amount for any Transfer Date specified in Section 3.03(c) shall be applied as follows: 

  
 27 

	 	(i)	first, if the Series 2012-VFN Nominal Liquidation Amount has been reduced as described in Section 3.03(b) above and is not fully reinstated, to the Series
2012-VFN Nominal Liquidation Amount until the Series 2012-VFN Nominal Liquidation Amount equals the excess of (A) the Series 2012-VFN Outstanding Principal Amount, over (B) the amount on deposit (other than investment earnings) in the
Series 2012-VFN Principal Funding Account on that Transfer Date allocable to the Variable Funding Notes; and 

  

	 	(ii)	second, to the Series 2012-VFN Overcollateralization Amount until the Series 2012-VFN Overcollateralization Amount equals the Series 2012-VFN Target
Overcollateralization Amount. 

 Section 3.04 Payment on the Series
2012-VFN Notes. On each Transfer Date, the Indenture Trustee, acting in accordance with written instructions from the Servicer, shall transfer to the Series 2012-VFN Principal Funding Account and Series 2012-VFN Interest Funding Account funds in
accordance with this Indenture Supplement. On each date of payment, after all allocations and reallocations pursuant to Sections 3.01 and 3.02, the Indenture Trustee shall make or cause to be made, without duplication, the following
distributions to the extent of available funds from the Series 2012-VFN Principal Funding Account and the Series 2012-VFN Interest Funding Account: 
 (a) Interest Distributions. On each Distribution Date (including any Expected Principal Distribution Date), the Series 2012-VFN Noteholders’ respective pro rata shares (or as otherwise
specified in accordance with the provisions of the Note Purchase Agreement) of the following amounts shall be distributed to the Series 2012-VFN Noteholders: first, accrued and unpaid Series 2012-VFN Monthly Interest on the Variable Funding Notes
for that Distribution Date, second, Non-Use Fees, and third, Additional Amounts, in each case, to the extent of amounts on deposit in the Series 2012-VFN Interest Funding Account for such purpose as of such date. 

(b) Revolving Period. On each day during the Revolving Period on which a prepayment is to be made on the Series 2012-VFN Notes,
the amounts on deposit in the Series 2012-VFN Principal Funding Account for that purpose shall be distributed as principal to the Series 2012-VFN Noteholders (up to a maximum of the Series 2012-VFN Outstanding Principal Amount on such date) pro rata
(or otherwise in accordance with the provisions of the Note Purchase Agreement). 
 (c) Expected Principal Distribution Date;
Early Redemption Period. On the Expected Principal Distribution Date and each Distribution Date during an Early Redemption Period, amounts on deposit in the Series 2012-VFN Principal Funding Account with respect to the related Due Period shall
be distributed as principal, to the Series 2012-VFN Noteholders (up to a maximum of the Series 2012-VFN Outstanding Principal Amount on such Distribution Date) pro rata (or as otherwise specified in accordance with the provisions of the Note
Purchase Agreement). 

  
 28 

 (d) Any installment of interest, principal or other amounts, if any, payable on any Series
2012-VFN Note which is punctually paid or duly provided for by the Issuing Entity and the Indenture Trustee on the applicable date of payment shall be paid by the Paying Agent to the Person in whose name such Series 2012-VFN Note (or one or more
predecessor Notes) is registered on the Note Record Date, by wire transfer of immediately available funds to such Person’s account as has been designated by written instructions received by the Paying Agent from such Person not later than the
close of business on the third Business Day preceding the date of payment or, if no such account has been so designated, by check mailed first-class, postage prepaid to such Person’s address as it appears on the Note Register on such Note
Record Date. 
 (e) The right of the Series 2012-VFN Noteholders to receive payments from the Issuing Entity shall terminate on
the first Business Day following the Series 2012-VFN Termination Date. 
 Section 3.05
Reserved 
 Section 3.06 Final Payment of the Series 2012-VFN Notes

 (a) Series 2012-VFN Noteholders shall be entitled to payment of principal in an amount equal to the Series 2012-VFN
Outstanding Principal Amount. However, Series 2012-VFN Available Principal Amounts shall be available to pay principal on the Series 2012-VFN Notes only up to the Series 2012-VFN Nominal Liquidation Amount. 

(b) Notwithstanding any other provision of the Basic Documents, the Series 2012-VFN Notes shall be considered to be paid in full, the
holders of the Series 2012-VFN Notes shall have no further right or claim against the Issuing Entity, and the Issuing Entity shall have no further obligation or liability for principal, interest or other amounts, on the earlier to occur of:

  

	 	(i)	the date on which the Series 2012-VFN Outstanding Principal Amount and all Series 2012-VFN Monthly Interest, Non-Use Fees, Additional Amounts and other amounts on the
Series 2012-VFN Notes are paid in full; or 

  

	 	(ii)	the Series 2012-VFN Termination Date, after giving effect to all deposits, allocations, reallocations, sales of Dealer Notes and payments to be made on that date.

 (c) References to the “Legal Final Maturity Date” with respect to Series 2012-VFN in Sections
5.05(c) and 12.01 of the Indenture shall be deemed to refer to the Series 2012-VFN Termination Date. 
 
Section 3.07 Netting of Deposits and Payments The Issuing Entity, in its sole discretion, may make all deposits to the Series 2012-VFN Interest Funding Account and the Series 2012-VFN Principal Funding Account with respect to any
Distribution Date net of, and after giving effect to, all reallocations to be made pursuant to Article III. 

  
 29 

 Section 3.08 Reserved 

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

Section 3.10 Accounts 

(a) Accounts; Deposits to and Distributions from Accounts. The Indenture Trustee shall cause to be established on or before the
Issuance Date and shall maintain three Eligible Accounts denominated as follows: the “Series 2012-VFN Interest Funding Account,” the “Series 2012-VFN Principal Funding Account” and the “Series 2012-VFN
Spread Account” (collectively, the “Series 2012-VFN Accounts”) in the name of the Indenture Trustee, bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Series 2012-VFN
Noteholders. The Indenture Trustee shall possess all right, title and interest to all funds on deposit from time to time in each of the Series 2012-VFN Accounts and in all proceeds therefrom, for the benefit of the Secured Parties. The Series
2012-VFN Accounts constitute Supplemental Accounts and shall be under the sole dominion and control of the Indenture Trustee for the benefit of the Series 2012-VFN Noteholders. If, at any time, the institution holding any Series 2012-VFN Account
ceases to be an Eligible Institution, the Issuing Entity shall within 15 Business Days (or such longer period, not to exceed 30 calendar days, as to which the Administrative Agent may consent) establish a new applicable Series 2012-VFN Account, that
is an Eligible Account and shall transfer any cash and/or investments to such new Series 2012-VFN Account. From the date such new Series 2012-VFN Account is established, it shall be a Series 2012-VFN Account, bearing the name of the Series 2012-VFN
Account it has replaced. The Indenture Trustee shall not be responsible for protecting or maintaining any security interest in the Series 2012-VFN Accounts. 
 (b) All payments to be made from time to time by the Indenture Trustee to Series 2012-VFN Noteholders out of funds in the Series 2012-VFN Accounts pursuant to this Indenture Supplement shall be made by
the Indenture Trustee to the Paying Agent not later than 12:00 noon on the applicable date of payment but only to the extent of funds in the applicable Series 2012-VFN Account or as otherwise provided in Article III. 

Section 3.11 Spread Account. 

(a) On the Issuance Date, the Depositor shall deposit into the Series 2012-VFN Spread Account an amount equal to the Spread Account
Initial Deposit. 
 (b) Funds on deposit in the Series 2012-VFN Spread Account overnight or for a longer period shall at all
times be invested in Eligible Investments at the written direction of the Servicer or its agent, subject to the restrictions set forth in the Indenture and subject to the requirement that each such Eligible Investment shall have a stated maturity on
or prior to the following Transfer Date. Net interest and earnings (less investment expenses) on funds on deposit in the Series 2012-VFN Spread Account, if any, shall constitute Series 2012-VFN Available Interest Amounts. 

  
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 (c) On any Transfer Date on which the amount of funds on deposit in the Series 2012-VFN
Spread Account is greater than the Spread Account Required Amount on such Transfer Date, the Servicer shall withdraw the amount of such excess from the Series 2012-VFN Spread Account and allocate and pay such excess to the holders of the
Certificates. 
 (d) Upon payment in full of the Series 2012-VFN Outstanding Principal Amount, together with any unpaid Series
2012-VFN Monthly Interest, Non-Use Fees and Additional Amounts, any funds remaining on deposit in the Series 2012-VFN Spread Account shall be distributed to the holders of the Certificates. 

(e) If the Spread Account Required Amount increases, to the extent that Series 2012-VFN Available Interest Amounts are insufficient to
make the deposit described in Section 3.01(a)(iii), the Depositor may, in its sole discretion, deposit the amount of such shortfall into the Spread Account. In addition, the Depositor may, in its discretion, deposit additional amounts
into the Spread Account (together with any discretionary increases in the Series 2012-VFN Overcollateralization Amount) up to 5.0% of the Series 2012-VFN Nominal Liquidation Amount as of such date. 

Section 3.12 Reserved 

Section 3.13 Reserved 

Section 3.14 Reports and Statements to Series 2012-VFN Noteholders. 

(a) On each Distribution Date, the Indenture Trustee shall post to the following website,
https://gctinvestorreporting.bnymellon.com/Home.jsp, for viewing by each Series 2012-VFN Noteholder a statement substantially in the form of Exhibit B (the “Servicer Certificate”) prepared and supplied to the Indenture
Trustee by the Servicer. 
 (b) Not later than the Transfer Date, the Servicer shall deliver to the Owner Trustee, the
Administrative Agent and the Indenture Trustee the Servicer Certificate. 
 (c) On or before January 31 of each calendar
year, beginning with January 31, 2013, the Indenture Trustee shall furnish or cause to be furnished to each Person who at any time during the preceding calendar year was a Series 2012-VFN Noteholder, a statement prepared by the Servicer
containing the information which is required to be contained in the statement to Series 2012-VFN Noteholders, as set forth in paragraph (a) above, aggregated for such calendar year or the applicable portion thereof during which such Person was
a Series 2012-VFN Noteholder, together with other information as is required to be provided by an issuer of indebtedness under the Internal Revenue Code. Such obligation of the Indenture Trustee shall be deemed to have been satisfied to the extent
that substantially comparable information shall be provided by the Servicer pursuant to any requirements of the Internal Revenue Code as from time to time in effect. 

  
 31 

 ARTICLE IV 

MISCELLANEOUS PROVISIONS 
 Section 4.01 Ratification of Indenture. As supplemented by this Indenture Supplement, the Indenture is in all respects ratified and confirmed and the Indenture
as so supplemented by this Indenture Supplement shall be read, taken and construed as one and the same instrument. 
 
Section 4.02 Counterparts. This Indenture Supplement may be executed in two or more counterparts (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one
and the same instrument. 
 Section 4.03 Governing Law. This Indenture Supplement
shall be construed in accordance with and governed by the laws of the State of New York, without reference to its conflict of law provisions (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law) and the obligations, rights
and remedies of the parties hereunder shall be determined in accordance with such laws. 

Section 4.04 Limitation of Owner Trustee Liability. Notwithstanding anything to the
contrary, this Indenture Supplement has been countersigned by Deutsche Bank Trust Company Delaware, not in its individual capacity but solely in its capacity as Owner Trustee. In no event shall Deutsche Bank Trust Company Delaware in its individual
capacity or, except as expressly provided in the Trust Agreement, as Owner Trustee have any liability for the representations, warranties, covenants, agreement or other obligations of the Issuing Entity hereunder or in any certificates, notices or
agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuing Entity. For all purposes of this Indenture Supplement, in the performance of its duties or obligations hereunder or in the performance
of any duties or obligations of the Issuing Entity hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of the Trust Agreement. 

Section 4.05 Amendment Notwithstanding anything to the contrary in Sections 10.1 and 10.2 of
the Indenture, the Issuing Entity and the Indenture Trustee acknowledge that this Indenture Supplement may not be amended, waived, changed or otherwise modified, without the prior written consent of the Managing Agents as provided in the Note
Purchase Agreement. 
 Section 4.06 No Registration of the Series 2012-VFN Notes under
the Securities Act. 
 (a) The Series 2012-VFN Notes have not been registered and will not be registered under the
Securities Act, or any state securities laws, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. Persons (as such terms are defined under the Securities Act), except pursuant to an exemption from,
or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. 

(b) Each purchaser and any transferor, as applicable, of a Series 2012-VFN Note will be deemed to represent and agree that: 

(i) the purchaser and any transferee understand that the Series 2012-VFN Notes are being offered only in a transaction not involving any
public offering in the United States within the meaning of the Securities 

  
 32 

 
Act, the Series 2012-VFN Notes have not been and will not be registered under the Securities Act or any state or other applicable securities laws, and, if in the future the purchaser or any
transferee decides to offer, resell, pledge or otherwise transfer the Series 2012-VFN Notes, such Series 2012-VFN Notes may be offered, resold, pledged or otherwise transferred only in accordance with the Indenture and this Indenture Supplement and
only (a) so long as such Series 2012-VFN Notes are eligible for resale pursuant to Rule 144A, to a person whom the seller reasonably believes is a Qualified Institutional Buyer acquiring the Series 2012-VFN Notes for its own account or as a
fiduciary or agent for others (which others must also be Qualified Institutional Buyers) to whom notice is given that the resale or other transfer is being made in reliance on Rule 144A, (b) pursuant to an effective registration statement under
the Securities Act (however, there is no undertaking to register the Series 2012-VFN Notes under any United States federal or state securities laws or any securities laws of any other jurisdiction on any future date), or (c) pursuant to an
exemption from registration under the Securities Act other than Rule 144A, and, in each case, in accordance with applicable United States federal or state securities laws or any securities laws of any other applicable jurisdiction. The purchaser and
any transferee acknowledge that no representation is made by the Issuing Entity as to the availability of any exemption under the Securities Act or any applicable state securities laws for resale of the Series 2012-VFN Notes; 

(ii) unless the relevant legend set out below has been removed from the relevant Series 2012-VFN Notes, the purchaser shall notify each
transferee of the Series 2012-VFN Notes that (a) such Series 2012-VFN Notes have not been registered under the Securities Act, (b) the holder of such Series 2012-VFN Notes is subject to the restrictions on the resale or other transfer
thereof described in paragraph (i) above, (c) such transferee shall be deemed to have represented (1) either (A) such transferee is a Qualified Institutional Buyer acquiring the Series 2012-VFN Notes for its own account or as a
fiduciary for others (which are Qualified Institutional Buyers) or (B) that such transferee is acquiring such Series 2012-VFN Notes in reliance on an exemption under the Securities Act other than Rule 144A, and (2) that such transferee
shall notify its subsequent transferees as to the foregoing; 
 (iii) the purchaser and any transferee understand that an
investment in the Series 2012-VFN Notes involves certain risks, including the risk of loss of all or a substantial part of its investment. The purchaser and any transferee have had access to such financial and other information concerning the
Issuing Entity and the Series 2012-VFN Notes as it deemed necessary or appropriate in order to make an informed investment decision with respect to its purchase of the Series 2012-VFN Notes, including an opportunity to ask questions of and request
information from the Servicer and the Issuing Entity. The purchaser and any transferee have 

  
 33 

 
such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in the Series 2012-VFN Notes, and the purchaser and any
transferee and any accounts for which it is acting are each able to bear the economic risk of its investment for an indefinite period of time; 
 (iv) in connection with the purchase of the Series 2012-VFN Notes (a) none of the Issuing Entity, the Servicer, NFC, the Depositor or the Indenture Trustee is acting as a fiduciary or financial or
investment adviser for the purchaser or any transferee; (b) the purchaser or any transferee is not relying (for purposes of making any investment decision or otherwise) upon any advice, counsel or representations (whether written or oral) of
the Issuing Entity, the Servicer, NFC, the Depositor or the Indenture Trustee other than any representations expressly set forth in a written agreement with such party; (c) none of the Issuing Entity, the Servicer, NFC, the Depositor or the
Indenture Trustee has given to the purchaser or any transferee (directly or indirectly through any other person) any assurance, guarantee, or representation whatsoever as to the expected or projected success, profitability, return, performance,
result, effect, consequence, or benefit (including legal, regulatory, tax, financial, accounting, or otherwise) of its purchase or the documentation for the Series 2012-VFN Notes; (d) the purchaser or any transferee has consulted with its own
legal, regulatory, tax, business, investment, financial, and accounting advisers to the extent it has deemed necessary, and it has made its own investment decisions (including decisions regarding the suitability of any transaction pursuant to the
Indenture) based upon its own judgment and upon any advice from such advisers as it has deemed necessary and not upon any view expressed by the Issuing Entity, the Servicer, NFC, the Depositor or the Indenture Trustee; (e) the purchaser or any
transferee has determined that the rates, prices or amounts and other terms of the purchase and sale of the Series 2012-VFN Notes reflect those in the relevant market for similar transactions; (f) the purchaser or any transferee is purchasing
the Series 2012-VFN Notes with a full understanding of all of the terms, conditions and risks thereof (economic and otherwise), and is capable of assuming and willing to assume (financially and otherwise) these risks; and (g) the purchaser or
any transferee is a sophisticated investor familiar with transactions similar to its investment in the Series 2012-VFN Notes; 

(v) the purchaser and each transferee acknowledge that each Series 2012-VFN Note will bear a legend to the following effect unless
determined otherwise by the Issuing Entity: 
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED 

  
 34 

 
STATES. THIS NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN
THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE
144A SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE
SECURITIES ACT OTHER THAN RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT (HOWEVER, THERE IS
NO UNDERTAKING TO REGISTER THE NOTES UNDER ANY UNITED STATES FEDERAL OR STATE SECURITIES LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION ON ANY FUTURE DATE), AND (B) IN ACCORDANCE WITH THE SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS
OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE AND THE INDENTURE SUPPLEMENT. ANY TRANSFER IN
VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO, AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUING ENTITY, THE INDENTURE TRUSTEE OR ANY
INTERMEDIARY. 
 EACH HOLDER OF A NOTE WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THE NOTE
WITH THE ASSETS OF (A) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A
“PLAN” DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. 

  
 35 

 
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975 OF THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON
OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR (D) ANY OTHER PLAN THAT IS SUBJECT TO ANY LAW THAT IS SUBSTANTIALLY SIMILAR TO ERISA OR SECTION 4975 OF THE CODE OR (ii) THE ACQUISITION AND HOLDING OF THE NOTE WILL NOT
GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW. 
 (vi) each of the purchaser and any transferee either (x) is not acquiring the Notes with the assets of an “employee benefit plan” as defined in Section 3(3) of ERISA that is subject to
the provisions of Title I of ERISA, a “plan” described in Section 4975(e)(1) of the Code that is subject to Section 4975 of the Code, an entity whose underlying assets include “plan assets” by reason of investment by an
employee benefit plan or plan in such entity or any other plan that is subject to any law that is substantially similar to ERISA or Section 4975 of the Code, or (y) its acquisition, holding and disposition of the Series 2012-VFN Note will
not result in a non-exempt prohibited transaction under Section 406 of ERISA or Section 4975 of the Code or a violation of any substantially similar applicable law; 
 (vii) the purchaser and any transferee are not purchasing the Series 2012-VFN Notes with a view to the resale, distribution or other disposition thereof in violation of the Securities Act; 

(viii) the purchaser and any transferee will provide notice to each person to whom it proposes to transfer any interest in the Series
2012-VFN Notes of the transfer restrictions and representations set forth in the Indenture and this Indenture Supplement, including the exhibits thereto; 
 (ix) the purchaser or any transferee acknowledges that the Series 2012-VFN Notes do not represent deposits with or other liabilities of the Indenture Trustee, the Servicer, NFC, the Depositor or any
entity related to any of them. Unless otherwise expressly provided in the Indenture or this Indenture Supplement, each of the Indenture Trustee, the Servicer, NFC, the Depositor or any entity related to any of them shall not, in any way, be
responsible for or stand behind the capital value or the performance of the Series 2012-VFN Notes or the assets held by the Master Trust or the Issuing Entity; and 

  
 36 

 (x) the purchaser acknowledges that the Indenture Trustee, the Issuing Entity, the Servicer,
NFC, the Depositor and others will rely upon the truth and accuracy of the foregoing acknowledgments, representations and agreements and agrees that, if any of the acknowledgments, representations or warranties deemed to have been made by it by
virtue of its purchase of a Series 2012-VFN Note (or a beneficial interest therein) is no longer accurate, then it shall promptly so notify NFC and the Depositor in writing. 
 Section 4.07 Consent to Amendments. By its purchase and acceptance of a Series 2012-VFN Note, each purchaser thereof shall be deemed to have consented to the
terms, provisions and limitations specified in Exhibit A to the Backup Servicing Agreement (as defined in the Applicable Pooling and Servicing Agreement) which will be applicable upon the appointment of the Backup Servicer as Successor
Servicer under the Applicable Pooling and Servicing Agreement. 
 Section 4.08
Electronic Communications. Notwithstanding any provision in the Indenture to the contrary, the Indenture Trustee agrees to accept and act upon instructions or directions pursuant to the Indenture, this Indenture Supplement and the Series
2012-VFN Notes sent by unsecured e-mail, pdf, facsimile transmission or other similar unsecured electronic methods; provided, however, that the Indenture Trustee shall have received an incumbency certificate listing persons designated
to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. If the Issuing
Entity elects to give the Indenture Trustee e-mail or facsimile instructions (or instructions by a similar electronic method) and the Indenture Trustee in its discretion elects to act upon such instructions, the Indenture Trustee’s
understanding of such instructions shall be deemed controlling. The Indenture Trustee shall not be liable for any losses, costs or expenses arising directly or indirectly from the Indenture Trustee’s reliance upon and compliance with such
instructions notwithstanding that such instructions conflict or are inconsistent with a subsequent written instruction. The Issuing Entity agrees to assume all risks arising out of the use of such electronic methods to submit instructions and
directions to the Indenture Trustee, including without limitation the risk of the Indenture Trustee acting on unauthorized instructions, and the risk or interception and misuse by third parties. 

*     *    *    *    * 

  
 37 

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

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

  

			
	By:	  	     /s/ Diana Vasconez

	Name:	  	    Diana Vasconez
	Title:	  	    Attorney-in-fact

  

			
	By:	  	     /s/ Irene Siegel

	Name:	  	    Irene Siegel
	Title:	  	    Attorney-in-fact

 

			
	THE BANK OF NEW YORK MELLON, as Indenture Trustee and not in its individual capacity
		
	By:	  	     /s/ Jacqueline Kuhn

	Name:	  	    Jacqueline Kuhn
	Title:	  	    Senior Associate

 EXHIBIT A 

FORM OF VARIABLE FUNDING NOTE, SERIES 2012-VFN 
 THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS
NOTE MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, EXCEPT (A) (1) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QUALIFIED
INSTITUTIONAL BUYER”) WHO IS EITHER PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A SO LONG AS THIS NOTE IS ELIGIBLE FOR RESALE PURSUANT TO RULE 144A,
SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, (2) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A, SUBJECT TO THE SATISFACTION OF CERTAIN
CONDITIONS SPECIFIED IN THE INDENTURE AND THE INDENTURE SUPPLEMENT, OR (3) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT (HOWEVER, THERE IS NO UNDERTAKING TO REGISTER THE NOTES UNDER ANY UNITED STATES FEDERAL OR STATE
SECURITIES LAWS OR ANY SECURITIES LAWS OF ANY OTHER JURISDICTION ON ANY FUTURE DATE), AND (B) IN ACCORDANCE WITH THE SECURITIES ACT AND ALL APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ANY OTHER APPLICABLE JURISDICTION. EACH
PURCHASER AND TRANSFEREE WILL BE DEEMED TO HAVE MADE CERTAIN REPRESENTATIONS AND AGREEMENTS SET FORTH IN THE INDENTURE AND THE INDENTURE SUPPLEMENT. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID AB INITIO,
AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE ISSUING ENTITY, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. 

EACH HOLDER OF A NOTE WILL BE DEEMED TO REPRESENT AND WARRANT THAT EITHER (i) IT IS NOT ACQUIRING THE NOTE WITH THE ASSETS OF
(A) AN “EMPLOYEE BENEFIT PLAN” AS DEFINED IN SECTION 3(3) OF THE U.S. EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”) THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (B) A “PLAN”
DESCRIBED IN SECTION 4975(e)(1) OF THE U.S. INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”) THAT IS SUBJECT TO SECTION 4975 OF 

  
 Ex. A-1

 
THE CODE, (C) AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN IN SUCH ENTITY OR (D) ANY OTHER PLAN THAT IS
SUBJECT TO ANY LAW THAT IS SUBSTANTIALLY SIMILAR TO ERISA OR SECTION 4975 OF THE CODE OR (ii) THE ACQUISITION AND HOLDING OF THE NOTE WILL NOT GIVE RISE TO A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975 OF THE
CODE OR A VIOLATION OF ANY SUBSTANTIALLY SIMILAR APPLICABLE LAW. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS
AND AGREES THAT IT SHALL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION, NAVISTAR FINANCIAL CORPORATION, OR THE NAVISTAR FINANCIAL DEALER NOTE MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE
ISSUING ENTITY, NAVISTAR FINANCIAL SECURITIES CORPORATION, NAVISTAR FINANCIAL CORPORATION, OR THE NAVISTAR FINANCIAL DEALER NOTE MASTER TRUST OF, ANY BANKRUPTCY PROCEEDINGS UNDER ANY UNITED STATES FEDERAL OR STATE BANKRUPTCY OR SIMILAR LAW IN
CONNECTION WITH ANY OBLIGATIONS RELATING TO THE NOTES, THE INDENTURE OR THE INDENTURE SUPPLEMENT. 
 THE HOLDER OF THIS NOTE, BY
ACCEPTANCE OF THIS NOTE, AND EACH HOLDER OF A BENEFICIAL INTEREST IN THIS NOTE, BY THE ACQUISITION OF A BENEFICIAL INTEREST THEREIN, AGREE TO TREAT THE NOTES AS INDEBTEDNESS FOR APPLICABLE FEDERAL, STATE, AND LOCAL INCOME AND FRANCHISE TAX LAW AND
FOR PURPOSES OF ANY OTHER TAX IMPOSED ON OR MEASURED BY INCOME. 

  
 Ex. A-2

			
	No. R-[    ] REGISTERED	  	 Commitment of $[        ]

or such other amount as is specified
 in the Note Purchase Agreement

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 

FLOATING RATE ASSET BACKED VARIABLE FUNDING NOTES, SERIES 2012-VFN 

Evidencing the indebtedness of Navistar Financial Dealer Note Master Owner Trust II, a statutory trust created under the laws of the
State of Delaware (herein referred to as the “Issuing Entity”), to [        ], as Managing Agent for the [        ] Purchaser Group (as
defined in the Note Purchase Agreement), due and payable on the Legal Final Maturity Date or at such times and in such amounts provided below or in the Indenture or Indenture Supplement. Interest shall accrue on this Note as provided in the
Indenture Supplement and the Note Purchase Agreement. Such principal of and interest on this Note shall be paid in the manner specified on the reverse hereof. 
 The principal of and interest on this Note are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. All
payments made by the Issuing Entity with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note. 

This Note evidences the portion of the Incremental Fundings made by the Conduit Purchaser or the Committed Purchaser in its Purchaser
Group represented by the Managing Agent that is from time to time outstanding under the Note Purchase Agreement, dated as of August 29, 2012 (the “Note Purchase Agreement”), among Navistar Financial Corporation, as servicer,
Navistar Financial Securities Corporation, as seller, Bank of America, National Association, as administrative agent, and the various other parties thereto. The Holder hereof shall and is hereby authorized to record on the grid attached to this Note
(or at such Holder’s option, in its internal books and records) the date and amount of each Incremental Funding made by it (or its Purchaser Group), the amount of each repayment of the principal amount represented by this Note and any
reductions to the Series 2012-VFN Outstanding Principal Amount of this Note made pursuant to the Indenture Supplement; provided, however, that failure to make any such recordation on the grid or records or any error in the grid or
records shall not adversely affect the Holder’s rights with respect to its interest in the assets of the Issuing Entity and its right to receive Series 2012-VFN Monthly Interest in respect of the outstanding principal amount of all Incremental
Fundings made by the Holder. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof, which
shall have the same effect as though fully set forth on the face of this Note. 

  
 Ex. A-3

 Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid for any purpose. 

  
 Ex. A-4

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

							
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II, as Issuing Entity
		
	By:    	 	 DEUTSCHE BANK TRUST COMPANY
 DELAWARE, not in its individual capacity

but solely as Owner Trustee under the Trust Agreement

			
		 	By:	 	  

		 	Name:	 		 	
		 	Title:	 	
	
	Date:                     ,
20    

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

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

		
	By:	 	  

	Name:	 	
	Title:	 	
	
	Date:                     ,
20    

  
 Ex. A-5

 [REVERSE OF NOTE] 

This Series 2012-VFN Note is one of the Notes of a duly authorized issue of Notes of the Issuing Entity, designated as its Floating Rate
Dealer Note Asset Backed Variable Funding Notes, Series 2012-VFN (herein called the “Notes”), all issued under an Indenture dated as of November 2, 2011 (such Indenture, as supplemented or amended, is herein called the
“Indenture”), as supplemented by an Indenture Supplement dated as of August 29, 2012 (the “Indenture Supplement”), between the Issuing Entity and The Bank of New York Mellon, as Indenture Trustee (the
“Indenture Trustee”, which term includes any successor Indenture Trustee under the Indenture), to which Indenture and Indenture Supplement reference is hereby made for a statement of the respective rights and obligations thereunder
of the Issuing Entity, the Indenture Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture and the Indenture Supplement. All terms used in this Note that are defined in the Indenture or the Indenture Supplement,
each as supplemented or amended, shall have the meanings assigned to them in or pursuant to the Indenture or the Indenture Supplement, as so supplemented or amended. 
 Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or indirectly, with
respect to the obligations of the Master Trust, the Master Trust Trustee, the Issuing Entity, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered in connection therewith,
against (i) the Master Trust Trustee, the Indenture Trustee or the Owner Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuing Entity, the Owner Trustee or
the Indenture Trustee, (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Master Trust, the Master Trust Trustee, the Issuing Entity, the Indenture Trustee or the Owner Trustee in its individual capacity, or
(iv) any holder of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuing Entity, the Owner Trustee or the Indenture Trustee or of any successor or assign of the Master Trust Trustee, the Indenture Trustee or the Owner
Trustee in its individual capacity, except as any such Person may have expressly agreed and except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for stock,
unpaid capital contribution or failure to pay any installment or call owing to such entity. 
 Each Noteholder or Note Owner, by
acceptance of a Note or, in the case of a Note Owner, a beneficial interest in a Note, covenants and agrees that by accepting the benefits of the Indenture that such Noteholder shall not at any time institute against Navistar Financial Securities
Corporation, Navistar Financial Corporation, the Master Trust or the Issuing Entity, or join in any institution against Navistar Financial Securities Corporation, Navistar Financial Corporation, the Master Trust or the Issuing Entity of, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States Federal or state bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture or the
Indenture Supplement. 
 Prior to the due presentment for registration of transfer of this Note, the Issuing Entity, the
Indenture Trustee and any agent of the Issuing Entity or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may 

  
 Ex. A-6

 
be specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Issuing Entity, the Indenture Trustee nor any such agent
shall be affected by notice to the contrary. 
 THIS NOTE AND THE INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED
BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS. 
 No reference herein to the Indenture or the Indenture Supplement and no provision of this Note or
of the Indenture or the Indenture Supplement shall alter or impair the obligation of the Issuing Entity, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or
currency herein prescribed. 

  
 Ex. A-7

 ASSIGNMENT 

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

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto (name and address of assignee)
                                        
the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises. 

Dated:                        
                             
                                  
                               * 
 Signature Guaranteed 

  
 Ex. A-8

 INCREMENTAL FUNDING AND REPAYMENT 

 

									
	 Initial Series
 2012-VFN
 Outstanding
 Principal
 Balance
	  	 Incremental

Funded Amount
	  	 Repayments of

Principal
	  	 Series 2012-VFN

Outstanding

Principal

Balance
	  	 Date /

Incremental

Funding Date

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  
 Ex. A-9

 EXHIBIT B 

FORM OF MONTHLY SERVICER CERTIFICATE 
 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST II 
 SERIES 2012-VFN
NOTES 
 Under the Series 2012-VFN Indenture Supplement, dated as of August 29, 2012 (the “Indenture
Supplement”), by and among the Navistar Financial Dealer Note Master Owner Trust II (the “Issuing Entity”) and The Bank of New York Mellon, as trustee (the “Indenture Trustee”), the information which is required to be
prepared with respect to the Distribution Date of                      ,         , the
Transfer Date of                      ,          and with respect to the performance of
the Issuing Entity during the Due Period ended on                      ,         
and the Interest Period ended on                      ,          is set forth below.
Certain of the information is presented on the basis of an original principal amount of $1,000 per Note. Certain other information is presented based on the aggregate amounts for the Issuing Entity as a whole. Capitalized terms used but not
otherwise defined herein shall have the meanings assigned to such terms in the Indenture Supplement. 
  

					
	5	  	Series 2012-VFN Notes Information	  	0.0
			
	5.1	  	Series 2012-VFN Nominal Liquidation Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2012-VFN Indenture Supplement and
to payments made on the Distribution Date).	  	0.0
			
		  	Cumulative Reductions (Net of Reinstatements) of the Series 2012-VFN Nominal Liquidation Amount, if any, as of the Transfer Date	  	0.0
			
	5.2	  	Series 2012-VFN Collateral Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2012-VFN Indenture Supplement and to
payments made on the Distribution Date).	  	0.0
			
		  	Series 2012-VFN Target Overcollateralization Amount, if any, as of the Transfer Date	  	0.0
			
		  	Cumulative Reductions (Net of Reinstatements) of the Series 2012-VFN Overcollateralization Amount Deficiency, if any, as of the Transfer Date	  	0.0
			
	5.4	  	Series 2012-VFN Allocated Dealer Note Losses / (Recoveries) for the Due Period	  	0.0
			
	5.5	  	Series 2012-VFN Allocated Interest Amounts for the Due Period	  	0.0

  
 Ex. B-1

					
			
	5.6	  	Series 2012-VFN Allocated Principal Amounts for the Due Period	  	0.0
			
	5.7	  	Series 2012-VFN Noteholders Allocated Dealer Note Losses / (Recoveries) for the Due Period	  	0.0
			
	5.8	  	Series 2012-VFN Available Interest Amounts with respect to the Due Period	  	0.0
			
	5.9	  	Series 2012-VFN Available Principal Amounts with respect to the Due Period	  	0.0
			
	5.10	  	Shortfall in Series Available Principal Amounts, if any, for the Due Period	  	0.0
			
	5.11	  	Seller’s Interest for the Series 2012-VFN Notes for the Due Period	  	0.0
			
	5.12	  	Shortfall in Series Available Interest Amounts, if any, for the Due Period	  	0.0
			
	5.13	  	Unreimbursed reductions to the Series 2012-VFN Collateral Amount, if any, for the Due Period	  	0.0
			
	5.14	  	Nominal Liquidation Amount plus Accrued and Unpaid Interest as of the Transfer Date	  	0.0
			
	5.15	  	Series 2012-VFN Required Seller’s Interest as of the Distribution Date	  	0.0
			
	5.16	  	Series Variable Allocation Percentage for the Due Period	  	0.0
			
	5.17	  	Series Fixed Allocation Percentage for the Due Period	  	0.0
			
	5.18	  	Total amount to be distributed on the Series 2012-VFN Notes on the Distribution Date	  	0.0
			
	5.19	  	Total amount, if any, to be distributed on the Series 2012-VFN Notes on the Distribution Date allocable to the Outstanding Principal Amount	  	0.0
			
	5.20	  	Total amount to be distributed on the Series 2012-VFN Notes on the Distribution Date allocable to interest on the Series 2012-VFN Notes	  	0.0

  
 Ex. B-2

					
			
	5.21.1	  	Series 2012-VFN Servicing Fee to be paid on the Distribution Date	  	0.0
			
	5.21.2	  	Series 2012-VFN Backup Servicing Expenses to be paid on the Distribution Date	  	0.0
			
	5.21.3	  	Series 2012-VFN Backup Servicing Fee to be paid on the Distribution Date	  	0.0
			
	5.22.1	  	Series 2012-VFN Investment Income	  	0.0
			
	5.22.2	  	Series 2012-VFN Principal Funding Account investment income	  	0.0
			
	5.22.3	  	Series 2012-VFN Interest Funding Account investment income	  	0.0
			
	5.22.4	  	Series 2012-VFN Spread Account investment income	  	0.0
			
	5.23	  	Series Excess Available Interest Amounts for the Due Period	  	0.0
			
	5.24	  	Excess Available Interest Amounts for the Due Period allocated to other Series of Notes	  	0.0
			
	5.25	  	Excess Available Interest Amounts for the Due Period allocated to Series of Investor Certificates	  	0.0
			
	5.26	  	Excess Available Principal Collections allocated from other series of Notes to Series 2012-VFN for the Due Period	  	0.0
			
	5.27	  	Amount of Shared Principal Collections allocated to Series 2012-VFN Collateral Certificate for the Due Period	  	0.0
			
	5.28	  	Amount of Excess Available Principal Collections allocated to other Series of Notes for the Due Period	  	0.0
			
	5.29	  	Reimbursement Amount for the Series 2012-VFN Notes for the Due Period	  	0.0
			
	5.30	  	Certain amounts and calculations referenced in the definition of Early Redemption Event	  	See Exhibit “A”
			
	6	  	Account Information	  	0.0
			
	6.1	  	Series 2012-VFN Spread Account Balance as of the Distribution Date after giving effect to all withdrawals and deposits made on such Distribution Date	  	0.0

  
 Ex. B-3

					
			
		  	Series 2012-VFN Spread Account Required Amount, if any, as of the Distribution Date after giving effect to all withdrawals and deposits made on such Distribution Date	  	0.0
			
	6.2	  	Series 2012-VFN Principal Funding Account Balance as of the Distribution Date after giving effect to all withdrawals and deposits made on such Distribution Date	  	0.0
			
	6.3	  	Series 2012-VFN Interest Funding Account Balance as of the Distribution Date after giving effect to all withdrawals and deposits made on such Distribution Date	  	0.0
			
	7	  	Notes Information	  	0.0
			
	7.1	  	Outstanding Principal Amount as of the Distribution Date after giving effect to the transactions made on such Distribution Date	  	0.0
			
	7.2	  	Nominal Liquidation Amount as of the Distribution Date after giving effect to the transactions made on such Distribution Date	  	0.0
			
	7.3	  	Total amount to be distributed on the Notes on the Distribution Date	  	0.0
			
	7.4	  	Total amount, if any, to be distributed on the Notes on the Distribution Date allocable to the Outstanding Principal Amount	  	0.0
			
	7.5	  	Total amount to be distributed on the Notes on the Distribution Date allocable interest on the Notes	  	0.0
			
	7.6	  	Monthly Interest for the Interest Period	  	0.0

 IN WITNESS WHEREOF, the undersigned has duly executed and delivered this certificate this
                     ,         . 

 

	
	NAVISTAR FINANCIAL
CORPORATION, as Servicer
	
	By:                             
                               
	Its:                             
                                

  
 Ex. B-4

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