Document:

Titling Trust Supplement

 EXHIBIT 10.8 
 EXECUTION COPY 
  

 SERIES 2006-ARC 
 PORTFOLIO SUPPLEMENT TO THE 
 TITLING TRUST AGREEMENT 
 HARCO LEASING
COMPANY, INC., 
 AS GRANTOR AND INITIAL BENEFICIARY, 
 J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION 
 (AS SUCCESSOR-IN-INTEREST TO BANK ONE, NATIONAL
ASSOCIATION), 
 AS GENERAL INTEREST TRUSTEE AND SERIES 2006-ARC PORTFOLIO TRUSTEE, 
 AND 
 CHASE BANK USA, NATIONAL ASSOCIATION 
 (AS SUCCESSOR-IN-INTERESTS TO BANK ONE DELAWARE, INC.), 
 AS DELAWARE TRUSTEE 
 DATED AS OF SEPTEMBER 1, 2006 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	ARTICLE IX DEFINITIONS AND CERTAIN OTHER MATTERS	  	2
		 	      Section 9.1	  	Definitions	  	2
		 	      Section 9.2	  	Rights in Respect of the Series 2006-ARC Portfolio Interest	  	3
		
	ARTICLE X CREATION OF THE SERIES 2006-ARC PORTFOLIO INTEREST	  	3
		 	      Section 10.1	  	Creation of the Series 2006-ARC Portfolio Interest.	  	3
		 	      Section 10.2	  	[Reserved]	  	4
		 	      Section 10.3	  	Re-allocation of Series 2006-ARC Portfolio Assets	  	4
		 	      Section 10.4	  	Issuance and Form of the Series 2006-ARC Portfolio Certificate	  	4
		 	      Section 10.5	  	Actions and Filings	  	5
		 	      Section 10.6	  	Representations and Warranties of the Titling Trustees	  	5
		
	ARTICLE XI MISCELLANEOUS PROVISIONS	  	6
		 	      Section 11.1	  	Amendment, Etc.	  	6
		 	      Section 11.2	  	Assignment of Series 2006-ARC Portfolio Certificate	  	8
		 	      Section 11.3	  	Governing Law	  	8
		 	      Section 11.4	  	Notices	  	8
		 	      Section 11.5	  	Severability of Provisions	  	9
		 	      Section 11.6	  	Counterparts	  	9
		 	      Section 11.7	  	Successors and Assigns	  	9
		 	      Section 11.8	  	Headings	  	9
		 	      Section 11.9	  	Effect of Series 2006-ARC Portfolio Supplement on Titling Trust Agreement and Titling Trust Documents	  	9
		 	      Section 11.10	  	Series Liability	  	10
		 	      Section 11.11	  	Authorization to Enter into Related Agreements	  	10
		
	EXHIBITS:	  	
		
	EXHIBIT A Series 2006-ARC Portfolio Certificate	  	A-1

  

 - i - 

 SERIES 2006-ARC 
 PORTFOLIO SUPPLEMENT TO THE 
 TITLING TRUST AGREEMENT 
 SERIES 2006-ARC PORTFOLIO SUPPLEMENT TO THE TITLING TRUST AGREEMENT (as amended from time to time, this “Series 2006-ARC Portfolio
Supplement”), dated as of September 1, 2006, among HARCO LEASING COMPANY, INC., a Delaware corporation, as Grantor and Initial Beneficiary (“Harco Leasing”), J.P. MORGAN TRUST COMPANY, NATIONAL ASSOCIATION (as
successor-in-interest to BANK ONE, NATIONAL ASSOCIATION, a national banking association), as General Interest Trustee (in such capacity, together with any successor or permitted assign, the “General Interest Trustee”), CHASE BANK
USA, NATIONAL ASSOCIATION (as successor-in-interst to BANK ONE DELAWARE, INC.), a national banking association (in such capacity, together with any successor or permitted assign, the “Delaware Trustee”), and J.P. MORGAN TRUST
COMPANY, NATIONAL ASSOCIATION (as successor-in-interest to BANK ONE, NATIONAL ASSOCIATION), as Portfolio Trustee with respect to the Series 2006-ARC Portfolio Interest (in such capacity, together with any successor or permitted assign,
“Series 2006-ARC Portfolio Trustee”). 
 RECITALS 
 WHEREAS, Harco Leasing, the General Interest Trustee and the Delaware Trustee have entered into the Titling Trust Agreement, dated as of April 15,
1999, pursuant to which the Titling Trust has been formed for the purpose of taking assignments and conveyances of, holding in trust and dealing in, various Titling Trust Assets. 
 WHEREAS, the Titling Trust, Harco Leasing, the Collateral Agent, and the Servicer, have entered into the Origination and Servicing Agreement dated as of
April 15, 1999, as amended and as may be amended from time to time in accordance with its terms (the “Titling Trust Servicing Agreement”), which provides for, among other things, the servicing of the Titling Trust Assets by the
Servicer. 
 WHEREAS, the Titling Trust Agreement contemplates that, from time to time, the General Interest Trustee, on behalf of the
Titling Trust and at the direction of the Requisite GI Holder, will designate and account for separately on the Titling Trust’s books and records certain Titling Trust Assets as Portfolio Assets and allocate such Portfolio Assets to any
Portfolio Interest, which shall constitute an undivided beneficial ownership interest in such Portfolio Assets. 
 WHEREAS, the parties
hereto desire to supplement the terms of the Titling Trust Agreement to cause the General Interest Trustee to designate and account for separately certain Titling Trust Assets, allocate such Titling Trust Assets to a Portfolio Interest, create
and issue to Harco Leasing, the sole GI Holder, a Portfolio Interest Certificate that evidences such Portfolio Interest, and to set forth the terms and conditions thereof. 

 WHEREAS, concurrently herewith, pursuant to the Lease Purchase Agreement, Harco Leasing is selling to
Navistar Financial, without recourse, all of Harco Leasing’s right, title and interest in and to such Portfolio Interest and Portfolio Interest Certificate. 
 WHEREAS, concurrently with the sale of such Portfolio Interest and Portfolio Interest Certificate by Harco Leasing to Navistar Financial, pursuant to the Purchase Agreement, Navistar Financial is selling to NFRRC,
without recourse, all of Navistar Financial’s right, title and interest in and to such Portfolio Interest and Portfolio Interest Certificate. 
 WHEREAS, concurrently with the sale of such Portfolio Interest and Portfolio Interest Certificate by Navistar Financial to NFRRC, pursuant to the Pooling Agreement, NFRRC is selling to the Issuer, without recourse, all of NFRRC’s
right, title and interest in and to such Portfolio Interest and Portfolio Interest Certificate. 
 WHEREAS, concurrently with the sale of
such Portfolio Interest and Portfolio Interest Certificate by NFRRC to the Issuer, the Issuer will issue the Series 2006-ARC Notes pursuant to the Indenture collateralized by, among other things, the Issuer’s interest in such Portfolio Interest
and Portfolio Interest Certificate. 
 WHEREAS, the parties desire to supplement the terms of the Titling Trust Agreement insofar as
they apply to such Portfolio Interest and such Portfolio Interest Certificate to make further specific provisions to benefit such Portfolio Interest Certificate and the parties to and the beneficiaries of the Indenture, all as generally contemplated
by the Titling Trust Agreement. 
 NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained and in
the Titling Trust Agreement, the parties hereto agree to the following supplemental obligations and provisions with regard to such Portfolio Interest: 
 ARTICLE IX 
 DEFINITIONS AND CERTAIN OTHER MATTERS 
 Section 9.1 Definitions. For all purposes of this Series 2006-ARC Portfolio Supplement, except as otherwise expressly provided or unless the
context otherwise requires: 
 (a) unless otherwise defined herein, all capitalized terms used herein shall have the meanings attributed to
them by Appendix A to the Pooling Agreement, dated as of September 1, 2006, between Navistar Financial 2006-ARC Owner Trust and Navistar Financial Retail Receivables Corporation, or if not defined therein, then as defined in Appendix
A to the Titling Trust Agreement (as defined in the Pooling Agreement); 
 (b) the rules of construction set forth in Part II of
Appendix A to the Pooling Agreement shall be applicable to this Series 2006-ARC Portfolio Supplement; and 
 (c) any reference herein to
the ”General Interest Trustee, acting on behalf of the Titling Trust,” or words of similar import, shall be deemed to mean the General Interest Trustee, acting on behalf of the Titling Trust and all beneficiaries thereof.

  

 - 2 - 

 Section 9.2 Rights in Respect of the Series 2006-ARC Portfolio Interest. Each Holder of the
Series 2006-ARC Portfolio Certificate (including the Indenture Trustee on behalf of the Noteholders under the Indenture) is a third-party beneficiary of the Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement, insofar as they
apply to the Series 2006-ARC Portfolio Interest and the holder of the Series 2006-ARC Portfolio Certificate. Therefore, to that extent, references in the Titling Trust Agreement to the ability of any “Holder of a Portfolio Interest
Certificate,” “assignee of a Portfolio Interest Certificate” or the like to take any action in respect of the Series 2006-ARC Portfolio Certificate shall be deemed to refer to the Indenture Trustee acting at its own instigation
or upon the instructions of the Noteholders as set forth in the Indenture. 
 ARTICLE X 
 CREATION OF THE SERIES 2006-ARC PORTFOLIO INTEREST 
 Section 10.1 Creation of the Series 2006-ARC Portfolio Interest. 
 (a) Pursuant to
Section 3.2(a) of the Titling Trust Agreement, Harco Leasing, as the Requisite GI Holder, hereby directs the General Interest Trustee to designate and account for separately or cause to designate and account for separately on the books
and records of the Titling Trust a separate portfolio of Titling Trust Assets, which shall be accounted for and held in trust independently from all other Titling Trust Assets, and which shall be known as the “Series 2006-ARC Portfolio
Assets.” Such Series 2006-ARC Portfolio Assets shall initially be the Retail Leases more particularly described on the Schedule of Retail Leases attached to the LPA Assignment delivered to NFC and the General Interest Trustee pursuant to
Section 4.02(c)(i) of the Lease Purchase Agreement, along with all Related Titling Trust Assets with respect to such Retail Leases. Based upon their designation and allocation by the General Interest Trustee, the General Interest Trustee
hereby designates and accounts for separately as the Series 2006-ARC Portfolio Assets the portfolio of such Titling Trust Assets, and each such Titling Trust Asset shall be identified on the books and accounts of the Titling Trust as, or belonging
to, the Series 2006-ARC Portfolio Assets. 
 (b) Also pursuant to Section 3.2(a) of the Titling Trust Agreement, the General
Interest Trustee hereby creates a Portfolio Interest, which shall be known as the “Series 2006-ARC Portfolio Interest.” The Series 2006-ARC Portfolio Interest shall represent a specific divided beneficial interest solely in the
Series 2006-ARC Portfolio Assets. 
 (c) Pursuant to Section 2.4(c) of the Titling Trust Agreement, Harco Leasing, as the initial
holder of the Series 2006-ARC Portfolio Certificate, hereby appoints J.P. Morgan Trust Company, National Association (as successor-in-interest to Bank One, National Association), as the Series 2006-ARC Portfolio Trustee for the Series 2006-ARC
Portfolio Assets. J.P. Morgan Trust Company, National Association hereby accepts its appointment as the Series 2006-ARC Portfolio Trustee for the Series 2006-ARC Portfolio Assets and agrees to act as the Portfolio Trustee for the benefit of the
Holder of the Series 2006-ARC Portfolio Certificate in accordance with the terms of the Titling Trust Agreement and this Supplement (the “Series 2006-ARC Portfolio Trustee”). 
  

 - 3 - 

 (d) Notwithstanding any prior termination of this Series 2006-ARC Portfolio Supplement, each of Navistar
Financial pursuant to the Lease Purchase Agreement, NFRRC pursuant to the Purchase Agreement, the Issuer pursuant to the Pooling Agreement, and the Indenture Trustee pursuant to the Indenture by accepting the Series 2006-ARC Portfolio Certificate
(or a pledge thereof), hereby covenants and agrees that it shall not, prior to the date which is one year and a day after which all obligations under each Permitted Financing have been paid in full, acquiesce, petition or otherwise invoke, or join
any other Person in acquiescing, petitioning or otherwise invoking, against the Titling Trust or any Special Purpose Entity, any proceeding in court or with any governmental authority for the purpose of (i) commencing or sustaining a case
against the Titling Trust or such Special Purpose Entity under any federal or state bankruptcy, insolvency or similar law, or (ii) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of all or
any substantial part of the respective property of the Titling Trust or such Special Purpose Entity, or (iii) ordering the winding up or liquidation of the affairs of the Titling Trust or such Special Purpose Entity. 
 (e) Except as otherwise provided in the Titling Trust Agreement, each of Navistar Financial, pursuant to the Lease Purchase Agreement, NFRRC, pursuant to
the Purchase Agreement, the Issuer, pursuant to the Pooling Agreement and the Indenture Trustee, pursuant to the Indenture, by accepting the Series 2006-ARC Portfolio Certificate, hereby release all Claims to the Titling Trust Assets allocated to
the General Interest and to each Portfolio Interest other than the Series 2006-ARC Portfolio Interest whether then or thereafter created and, in the event that such release is not given effect, to fully subordinate all Claims it may be deemed to
have against the Titling Trust Assets allocated to the General Interest and each Portfolio Interest other than the Series 2006-ARC Portfolio Interest whether then or thereafter created. 
 (f) Each Titling Trustee (including the Series 2006-ARC Portfolio Trustee upon its execution and delivery of this Series 2006-ARC Portfolio Supplement)
and Grantor acknowledge that the Series 2006-ARC Portfolio Assets will be subject to a first priority lien in favor of the Collateral Agent pursuant to the Collateral Agency Agreement and any amendments or supplements thereto. 
 Section 10.2 [Reserved]. 
 Section 10.3 Re-allocation of Series 2006-ARC Portfolio Assets. If any Retail Lease becomes a Warranty Receivable or an Administrative Receivable and is repurchased by NFC or NFRRC or any other Person in accordance with the Basic
Documents, the Holder of the Series 2006-ARC Portfolio Certificate shall instruct the General Interest Trustee to, and the General Interest Trustee shall re-allocate such Retail Lease and the related Series 2006-ARC Portfolio Assets to an
appropriate Portfolio Interest or to the General Interest, subject to the terms and conditions of the Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement. 
 Section 10.4 Issuance and Form of the Series 2006-ARC Portfolio Certificate. 
 (a) The Series 2006-ARC Portfolio Interest shall be initially represented by the Series 2006-ARC Portfolio Certificate. The Series 2006-ARC Portfolio
Certificate shall be substantially in the form of Exhibit A attached hereto, with such appropriate insertions, 
  

 - 4 - 

 omissions, substitutions and other variations as are required by this Series 2006-ARC Portfolio Supplement and may have
such letters, numbers or other marks of identification and such legends and endorsements placed thereon as may, consistently herewith and with the Titling Trust Agreement, be directed by Harco Leasing, as Requisite GI Holder. Any portion of the
Series 2006-ARC Portfolio Certificate may be set forth on the reverse thereof, in which case the following reference to the portion of the text on the reverse shall be inserted on the face thereof, in relative proximity to and prior to the
signature of a Responsible Officer of the General Interest Trustee executing such certificate: 
 “Reference is hereby made to the
further provisions of this Certificate set forth on the reverse hereof, which provisions shall for all purposes have the same effect as if set forth at this place.” 
 The Series 2006-ARC Portfolio Certificate shall be printed, lithographed, typewritten, mimeographed, photocopied or otherwise produced or may be produced in any other manner as may, consistently herewith and with the
Titling Trust Agreement, be determined by Harco Leasing, as the Requisite GI Holder. The Series 2006-ARC Portfolio Certificate will initially be registered in the name of the Indenture Trustee. 
 Section 10.5 Actions and Filings. Harco Leasing, as the Grantor, and the General Interest Trustee will undertake all other and future
actions and activities as may be deemed necessary by the Servicer to perfect (or evidence) and confirm the foregoing allocations of the Series 2006-ARC Portfolio Assets to the Series 2006-ARC Portfolio Interest, including filing or causing
to be filed UCC financing statements and executing and delivering all related filings, documents or writings as may be deemed reasonably necessary by the Servicer hereunder or under any Basic Document; provided, however, that in no event will
Harco Leasing, as the Grantor, or the General Interest Trustee be required to take any action to perfect any interest that may be held in Titling Trust Assets not allocated to the Series 2006-ARC Portfolio Interest. Harco Leasing, as the Grantor,
hereby irrevocably makes and appoints each of the General Interest Trustee and the Servicer, and any of their respective officers, employees or agents, as the true and lawful attorney-in-fact of Harco Leasing (which appointment is coupled with
an interest and is irrevocable) with power to file on behalf of Harco Leasing any financing statements, continuation statements, security agreements, mortgages, assignments, affidavits, letters of authority, notices or similar documents
necessary or appropriate to be executed or filed pursuant to this Section 10.5. 
 Section 10.6 Representations and
Warranties of the Titling Trustees. Each Titling Trustee (as to itself) hereby makes the following representations and warranties as of the date hereof: 
 (a) The General Interest Trustee and the Series 2006-ARC Portfolio Trustee is a banking corporation duly organized, validly existing and in good standing under the laws of its jurisdiction of organization; the
eligibility requirements set forth in Section 5.11 of the Titling Trust Agreement are satisfied with respect to it. The Delaware Trustee is a corporation validly existing and in good standing under the laws of its jurisdiction of
organization. 
  

 - 5 - 

 (b) It has full power, authority and legal right to execute, deliver and perform its obligations under
the Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement, and has taken all necessary action to authorize the execution, delivery and performance by it of the Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement.

 (c) The execution, delivery and performance by it of the Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement
(i) shall not violate any provision of any law or regulation governing the banking, trust or corporate powers (as appropriate) of such Titling Trustee or any order, writ, judgment or decree of any court, arbitrator or governmental authority
applicable to such Titling Trustee or any of its assets, (ii) shall not violate any provision of the corporate charter or by-laws of such Titling Trustee, and (iii) shall not violate any provision of, or constitute, with or without notice
or lapse of time, a default under, or result in the creation or imposition of any lien on any properties included in the Titling Trust pursuant to the provisions of any mortgage, indenture, contract, agreement or other undertaking to which it is a
party, which violation, default or lien could reasonably be expected to have a materially adverse effect on such Titling Trustee’s performance or ability to perform its duties as trustee under the Titling Trust Agreement or this Series 2006-ARC
Portfolio Supplement or on the transactions contemplated in the Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement. 
 (d)
The execution, delivery and performance by such Titling Trustee of the Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement shall not require the authorization, consent or approval of, the giving of notice to, the filing or
registration with, or the taking of any other action in respect of, any governmental authority or agency regulating the corporate trust activities of Titling Trustee. 
 (e) The Titling Trust Agreement and this Series 2006-ARC Portfolio Supplement have been duly executed and delivered by such Titling Trustee and constitutes the legal, valid and binding agreements of such Titling
Trustee, enforceable in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights in general and by general
principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 
 (f) The office where
such Titling Trustee keeps its records concerning the transactions contemplated hereby is located at: (i) in the case of the General Interest Trustee and the Series 2006-ARC Portfolio Trustee, the Corporate Trust Office, and (ii) in the
case of the Delaware Trustee, the Delaware Office (as defined in the Titling Trust Agreement). 
 ARTICLE XI 
 MISCELLANEOUS PROVISIONS 
 Section 11.1 Amendment, Etc. 
 (a) Subject to Section 11.1(b) and Section 11.1(c), each of this
Series 2006-ARC Portfolio Supplement and the Titling Trust Agreement, as supplemented by this Series 2006-ARC Portfolio Supplement, may be amended from time to time by a written amendment duly executed and delivered by the Titling Trustees and the
Grantor. 
  

 - 6 - 

 (b) Notwithstanding Section 7.1 of the Titling Trust Agreement, each of this Series 2006-ARC
Portfolio Supplement and the Titling Trust Agreement, as supplemented by this Series 2006-ARC Portfolio Supplement (to the extent that it deals solely with the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Assets), may be
amended, supplemented or modified without the consent of the Holder of the Series 2006-ARC Portfolio Certificate, but with prior consent of the Funding Agent, (i) to cure any ambiguity, (ii) to correct or supplement any provision in the
Titling Trust Agreement or this Series 2006-ARC Portfolio Supplement that may be defective or inconsistent with any other provision in the Titling Trust Agreement, this Series 2006-ARC Portfolio Supplement or any other Basic Document, (iii) to
add or supplement any credit enhancement for the benefit of the Noteholders of any class or the Certificateholders provided that if any such addition shall affect any class of Noteholders or the Certificateholders differently than any other class of
Noteholders or the Certificateholders, respectively, then such addition shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any class of Noteholders or the Certificateholders, (iv) add to
the covenants, restrictions or obligations of Harco Leasing or any Titling Trustee or (v) with the prior consaent of the Funding Agnet, add, change or eliminate any other provision of the Titling Trust Agreement or this Series 2006-ARC
Portfolio Supplement in any manner that shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect the interests of any class of Noteholders or the Certificateholders. 
 (c) Each of this Series 2006-ARC Portfolio Supplement and the Titling Trust Agreement, as supplemented by this Series 2006-ARC Portfolio Supplement (to
the extent that it deals solely with the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Assets) may also be amended, supplemented or modified from time to time with the consent of the Indenture Trustee, the consent of the
Funding Agent, unless the interests of the Noteholders are not materially and adversely affected thereby as evidenced by an Officer’s Certificate of the Servicer to that effect, the consent of Noteholders whose Notes evidence not less than a
majority of the Outstanding Amount of the Controlling Class as of the close of the preceding Distribution Date and, unless the interests of the Certificateholders are not materially and adversely affected thereby as evidenced by an Officer’s
Certificate of the Servicer to that effect, the consent of Certificateholders whose Certificates evidence not less than a majority of the ownership interest in the Trust as of the close of the preceding Distribution Date (which consents shall be
conclusive and binding on such Person and on all future holders of such Notes or Certificates and of any Notes or Certificates issued upon the transfer thereof or in exchange thereof or in lieu thereof whether or not notation of such consent is made
upon the Notes or Certificates) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Series 2006-ARC Portfolio Supplement, or of modifying in any manner the rights of the Holder of the
Series 2006-ARC Portfolio Interest; provided, however, that no such amendment shall (i)(a) increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections of payments on Receivables or distributions
that shall be required to be made on any Security, the Interest Rate for any class of Notes or (b) reduce the aforesaid percentage required to consent to any such amendment, without the consent of the holders of all Securities then outstanding
or (ii) amend any provision of the Titling Trust Agreement or this 
  

 - 7 - 

 Series 2006-ARC Portfolio Supplement which requires actions taken under such provision to have the consent of Noteholders
whose Notes evidence greater than a majority of the Outstanding Amount of the Controlling Class as of the preceding Distribution Date or of the Holders of Certificates evidencing greater than a majority of the ownership interest in the Trust as of
the preceding Distribution Date, in each case without the consent of the Indenture Trustee and the numbers of Securityholders described in such Section. 
 (d) Prior to the execution of any such amendment or consent, the Grantor shall furnish written notification to the Funding Agent of the substance of such amendment or consent as provided to the Grantor. 
 (e) Promptly after the execution of any such amendment or consent, the Grantor shall furnish written notification of the substance of such amendment or
consent to each Certificateholder and to each Noteholder of the substance of such amendment or consent. 
 (f) It shall not be necessary for
the consent of Securityholders to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof. 
 (g) Notwithstanding any other provision in this Agreement, if the consent of the Swap Counterparty is required pursuant to the Swap Counterparty Rights
Agreement, any such purported amendment shall be null and void ab initio unless the Swap Counterparty consents in writing to such amendment. 
 Section 11.2 Assignment of Series 2006-ARC Portfolio Certificate. The parties to this Series 2006-ARC Portfolio Supplement hereby acknowledge and consent to (a) the sale and assignment by Harco Leasing of all of its right,
title and interest in the Series 2006-ARC Portfolio Assets and the Series 2006-ARC Portfolio Certificate to Navistar Financial pursuant to the Lease Purchase Agreement, (b) the sale and assignment by Navistar Financial of all of its right,
title and interest in the Series 2006-ARC Portfolio Assets and the Series 2006-ARC Portfolio Certificate to NFRRC pursuant to the Purchase Agreement, (c) the sale and assignment by NFRRC of all of its right, title and interest in the Series
2006-ARC Portfolio Assets and the Series 2006-ARC Portfolio Certificate to the Issuer pursuant to the Pooling Agreement, and (d) the pledge, assignment and grant of a security interest by the Issuer in all of its right, title and interest in
the Series 2006-ARC Portfolio Assets and the Series 2006-ARC Portfolio Certificate to the Indenture Trustee pursuant to the Indenture. 
 Section 11.3 Governing Law. This Series 2006-ARC Portfolio Supplement shall be created under and governed by and construed under the internal laws of the State of Delaware, without regard to any otherwise applicable
principles of conflicts of laws. 
 Section 11.4 Notices. The notice provisions of Section 8.03 of the Titling
Trust Agreement and Appendix B thereto shall apply equally to this Series 2006-ARC Portfolio Supplement. All requests, demands, directions, consents, waivers, notices, authorizations and communications provided or permitted under this Series
2006-ARC Portfolio Supplement or the Titling Trust Agreement to be made upon, given or furnished to or filed with the Series 2006-ARC Portfolio Trustee shall be in writing, personally delivered, sent by facsimile with a copy to 
  

 - 8 - 

 follow via first class mail or mailed by certified mail-return receipt requested, and shall be deemed to have been duly
given upon receipt at the Corporate Trust Office of the Series 2006-ARC Portfolio Trustee. 
 Section 11.5 Severability of
Provisions. If any one or more of the covenants, agreements, provisions or terms of this Series 2006-ARC Portfolio Supplement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed
severable from the remaining covenants, agreements, provisions or terms of this Series 2006-ARC Portfolio Supplement and shall in no way affect the validity or enforceability of the other provisions of this Series 2006-ARC Portfolio
Supplement or of the Series 2006-ARC Portfolio Certificate or the rights of the holder thereof. To the extent permitted by law, the parties hereto waive any provision of law that renders any provision of this Series 2006-ARC Portfolio
Supplement invalid or unenforceable in any respect. 
 Section 11.6 Counterparts. This Series 2006-ARC Portfolio Supplement may
be executed by the parties hereto in separate counterparts (and by different parties on separate counterparts), each of which when so executed and delivered shall be an original, but all of which together shall constitute one and the same
instrument. 
 Section 11.7 Successors and Assigns. All covenants and agreements contained herein shall be binding upon, and
inure to the benefit of, the Grantor, the Titling Trustees and the Holder of the Series 2006-ARC Portfolio Certificate and their respective successors and permitted assigns, all as herein provided. Any request, notice, direction, consent, waiver or
other instrument or action by a Holder of a Series 2006-ARC Portfolio Certificate shall bind the successors and assigns of such Holder. 
 Section 11.8 Headings. The headings of the various Articles and Sections herein are for purposes of reference only and shall not affect the meaning or interpretation of any provision hereof. 
 Section 11.9 Effect of Series 2006-ARC Portfolio Supplement on Titling Trust Agreement and Titling Trust Documents. 
 (a) Except as otherwise specifically provided herein: (i) the parties shall continue to be bound by all provisions of the Titling Trust Agreement;
and (ii) the provisions set forth herein shall operate either as additions to or modifications of the obligations of the parties under the Titling Trust Agreement, as the context may require. In the event of any conflict between the provisions
of this Series 2006-ARC Portfolio Supplement and the Titling Trust Agreement with respect to the Series 2006-ARC Portfolio Interest, the provisions of this Series 2006-ARC Portfolio Supplement shall prevail. 
 (b) For purposes of determining the parties’ obligations under this Series 2006-ARC Portfolio Supplement with respect to the Series 2006-ARC
Portfolio Interest, general references in the Titling Trust Agreement to: (i) a Portfolio Interest shall be deemed to refer more specifically to the Series 2006-ARC Portfolio Interest; and (ii) a Portfolio Supplement shall be deemed to
refer more specifically to this Series 2006-ARC Portfolio Supplement. 
  

 - 9 - 

 (c) In the event of any conflict between the provisions of this Series 2006-ARC Portfolio Supplement or
the Titling Trust Agreement with the provisions of any of the other Basic Documents, the provisions of the other Basic Documents shall prevail, except as to any provision of this Series 2006-ARC Portfolio Supplement or the Titling Trust Agreement
setting forth the rights or obligations of any Titling Trustee which shall prevail over any conflicting provision in the Basic Documents. 
 Section 11.10 Series Liability. Each party hereto acknowledges and agrees that (a) the Series 2006-ARC Portfolio Interest is a separate series of the Titling Trust as provided by Section 3806(b)(2) of Chapter 38 of
Title 12 of the Delaware Code, 12 Del. C. § 3801 et seq., (b) the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Series 2006-ARC Portfolio Interest shall be enforceable only
against the Series 2006-ARC Portfolio Assets, and not against any other Portfolio Assets or the General Portfolio, (c) except to the extent required by law or specified in the Titling Trust Agreement or in this Series 2006-ARC Portfolio
Supplement, Portfolio Assets with respect to any Portfolio Interest (other than the Series 2006-ARC Portfolio Interest) shall not be subject to the claims, debts, liabilities, expenses or obligations arising from or with respect to the Series
2006-ARC Portfolio Interest in respect of such claim, and (d) no creditor or holder of a claim relating to Titling Trust Assets allocated to the Series 2006-ARC Portfolio Interest shall be entitled to maintain any action against or recover any
Titling Trust Assets allocated to the General Interest or any other Portfolio Interest. 
 Section 11.11 Authorization to Enter into
Related Agreements. The Titling Trust is authorized to enter into and perform its obligations under the Servicing Agreement and the Collateral Supplement. 
 *    *    *    * 
  

 - 10 - 

 IN WITNESS WHEREOF, Harco Leasing, the General Interest Trustee, the Delaware Trustee and the Series
2006-ARC Portfolio Trustee have caused this Series 2006-ARC Portfolio Supplement to be duly executed by their respective officers as of the day and year first above written. 
  

			
	HARCO LEASING COMPANY, INC.,
	as Grantor and Requisite GI Holder
		
	By:	 	 /s/ John V. Mulvaney, Sr.

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	Vice President and Controller
	
	 J.P. MORGAN TRUST COMPANY, NATIONAL
 ASSOCIATION (as successor-in-interest to BANK
 ONE, NATIONAL ASSOCIATION),
 as General Interest Trustee and Series 2006-ARC
 Portfolio Trustee

		
	By:	 	 /s/ Janice Ott Rotunno

	Name:	 	Janice Ott Rotunno
	Title:	 	Vice President
	
	 CHASE BANK USA, NATIONAL ASSOCIATION
 (as
successor-in-interest to BANK ONE DELAWARE, INC.),
 as Delaware Trustee

		
	By:	 	 /s/ Sarika M. Sheth

	Name:	 	Sarika M. Sheth
	Title:	 	Assistant Vice President

 EXHIBIT A 
 NAVISTAR LEASING COMPANY 
 SERIES 2006-ARC PORTFOLIO CERTIFICATE 
 evidencing an undivided beneficial ownership interest in all Series 2006-ARC Portfolio Assets (as defined below). 
 (This Certificate does not represent an obligation of, or an interest in, Harco Leasing Company, Inc., International Truck and Engine Corporation,
Navistar Financial Corporation, Navistar Financial Retail Receivable Corporation or any of their respective affiliates.) 
 Number PI - 200  -   
 THIS CERTIFIES THAT Lasalle Bank National Association, in its capacity as
indenture trustee, is the registered owner of a nonassessable, fully-paid, undivided beneficial ownership interest in the Series 2006-ARC Portfolio Assets (such interest, a “Series 2006-ARC Portfolio Interest”), of NAVISTAR LEASING
COMPANY, a Delaware statutory trust (the “Titling Trust”) formed by Harco Leasing Company, Inc., a Delaware corporation (“Harco Leasing”), as grantor, J.P. Morgan Trust Company, National Association (as
successor-in-interest to Bank One, National Association), a national banking association, as general interest trustee (the “General Interest Trustee”), Chase Bank USA, National Association (as successor-in-interest to Bank One
Delaware Inc.), a national banking association, as Delaware trustee (the “Delaware Trustee”), and J.P. Morgan Trust Company, National Association (as successor-in-interest to Bank One, National Association), as Portfolio Trustee
(the “Series 2006-ARC Portfolio Trustee”). Harco Leasing in its capacity as grantor thereunder, and together with any successors or permitted assigns, shall be referred to herein as the “Grantors.” The Titling Trust
was created pursuant to a Trust Agreement, dated as of July 25, 1997, as amended and restated by the certain Trust Agreement, dated as of October 1, 1997, as further amended and restated by that certain Trust Agreement, dated as of
April 15, 1999 (as amended, the “Titling Trust Agreement”), as supplemented by the Series 2006-ARC Portfolio Supplement, dated as of September 1, 2006 (the “Series 2006-ARC Portfolio Supplement” and
together with the Titling Trust Agreement, the “Agreement”), now among Harco Leasing as the sole beneficiary (in such capacity, and together with any successors or permitted assigns, the “Initial Beneficiary”), the
General Interest Trustee, the Delaware Trustee and the Series 2006-ARC Portfolio Trustee. A summary of certain of the pertinent portions of the Agreement is set forth below. To the extent not otherwise defined herein, the capitalized terms herein
have the meanings set forth in the Agreement. 
 This Certificate is the duly authorized certificate issued under the Agreement and
designated as the “SERIES 2006-ARC PORTFOLIO INTEREST CERTIFICATE” (the “Series 2006-ARC Portfolio Certificate”). This Series 2006-ARC Portfolio Certificate is issued under and is subject to the terms, provisions and
conditions of the Agreement, to which Agreement the Holder of this Series 2006-ARC Portfolio Certificate by virtue of the acceptance hereof assents and by which such Holder is bound. Also to be issued under the Agreement are various series of
Certificates, each designated as “NAVISTAR LEASING COMPANY PORTFOLIO INTEREST 
  

 A-1 

 CERTIFICATES” (the “Portfolio Interest Certificates” and, together with the Series 2006-ARC
Portfolio Certificates and the General Interest Certificates, the “Certificates”). The Series 2006-ARC Portfolio Certificate will evidence a separate undivided beneficial ownership interest in a separate Portfolio Interest (as
defined below). 
 The property of the Titling Trust includes, or will include, (a) cash; (b) Leases of Leased Vehicles;
(c) the Leased Vehicles and all proceeds thereof, including (i) the Disposition Proceeds of the Leased Vehicles and (ii) each Certificate of Title of a Leased Vehicle; (d) all of Grantors’ rights (but not their obligations)
with respect to any Lease or Leased Vehicle, including the right to proceeds arising from all repurchase obligations, if any, relating to any Lease or Leased Vehicle; (e) all of Navistar Financial’s and Grantor’s Dealer Agreement
Rights; (f) any proceeds of any Insurance Policy; (g) any rights of the lessor with respect to any security deposit relating to a Lease in accordance with the terms of the Lease; (h) all of the Titling Trust’s rights under any
Servicing Agreement and (i) all proceeds of any of the foregoing (such assets, the “Titling Trust Assets”). From time to time, certain of the Titling Trust Assets have been and will be identified and accounted for independently
within the Titling Trust as one or more separate portfolios (such assets, “Portfolio Assets”). The beneficial interest in each such group of Portfolio Assets shall constitute a separate “divided beneficial ownership
interest” (“Portfolio Interest”) in the portion of the Titling Trust comprised of such Portfolio Assets. 
 Pursuant to
the Series 2006-ARC Portfolio Supplement, various Titling Trust Assets (the “Series 2006-ARC Portfolio Assets”) were, and may, from time to time, be, designated and accounted for separately on the records of the Titling Trust as and
into a separate Portfolio Interest (the “Series 2006-ARC Portfolio Interest”). The rights of the Holder of this Certificate to the proceeds of the Series 2006-ARC Portfolio Assets are and will be further set forth in the Agreement.

 This Certificate does not represent an obligation of, or an interest in, the Grantor, the Initial Beneficiary, the General Interest
Trustee, the Delaware Trustee or the Series 2006-ARC Portfolio Trustee, or any of their respective Affiliates. This Certificate evidences an undivided beneficial ownership interest in the Series 2006-ARC Portfolio Assets, all to the extent and as
more specifically set forth in the Agreement. A copy of the Agreement may be examined during normal business hours at the principal office of the General Interest Trustee or the Delaware Trustee, and at such other places, if any, designated by the
General Interest Trustee, by the Holder hereof upon request. 
 The Series 2006-ARC Portfolio Interest shall be a separate series of the
Titling Trust as provided in Section 3806(b)(2) of the Delaware Statutory Trust Act. As such, separate and distinct records shall be maintained for each series of the Titling Trust and the assets of the Titling Trust associated with each
series shall be held and accounted for separately from the other assets of the Titling Trust. The debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to the Series 2006-ARC Portfolio Interest or
the related Series 2006-ARC Portfolio Assets shall be enforceable against such Series 2006-ARC Portfolio Assets only, and not against the assets of the Titling Trust generally or against the General Trust Assets or any other Portfolio Assets. Except
to the extent required by law or specified in this Agreement, the Series 2006-ARC Portfolio Interest shall not be subject to the claims, debts, liabilities, expenses or obligations arising from or with respect to the General 
  

 A-2 

 Interest or the General Interest Trustee, or any other Portfolio Interest or Portfolio Trustee. No creditor or holder of
a claim relating to assets allocated to the Series 2006-ARC Portfolio Interest shall be entitled to maintain any action against or recover any assets allocated to the General Interest or any other Portfolio Interest in respect of such claim (whether
or not such assets were General Trust Assets at any time since such claim arose). By accepting this Certificate, the Holder hereof waives any Claim to any assets of the Titling Trustees and to all of the Titling Trust Assets from time to time
included within the General Interest and each other Portfolio Interest as General Trust Assets and/or other Portfolio Assets and those proceeds or assets derived from or earned by such General Trust Assets and/or Portfolio Assets. 
 By accepting this Certificate, the Holder hereof hereby covenants and agrees that it shall not, prior to the date which is one year and a day after which
all obligations under each Permitted Financing have been paid in full, acquiesce, petition or otherwise invoke, or join any other Person in acquiescing, petitioning or otherwise invoking, against the Titling Trust or any Special Purpose Entity, any
proceeding in court or with any governmental authority for the purpose of (i) commencing or sustaining a case against such Titling Trust or Special Purpose Entity under any federal or state bankruptcy, insolvency or similar law, or
(ii) appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of all or any substantial part of the respective property of such Titling Trust or Special Purpose Entity, or (iii) ordering the
winding up or liquidation of the affairs of such Titling Trust or Special Purpose Entity. 
 This Certificate and/or the Agreement may be
amended by written agreement between the Requisite GI Holder and the General Interest Trustee with any consent of the Holder hereof required by the Agreement. If the consent of the Holder of this Certificate is required, any such consent shall be
conclusive and binding on the Holder hereof and on all future Holders hereof and of any Certificate issued upon the permitted Transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this
Certificate. 
 Prior to due presentation of this Certificate for registration of a permitted Transfer, the Titling Trustees shall regard the
Person in whose name this Certificate is registered as the owner hereof for all purposes whatsoever and the Titling Trustees shall not be bound by any notice to the contrary; provided, that the Holder may enter into agreements with any Person
with respect to the exercise of any of its rights as Holder of this Certificate. Except as provided in the Agreement, neither Titling Trustees nor any such agent shall be affected by any notice to the contrary. 
 The obligations and responsibilities created by the Agreement and the Titling Trust created thereby shall terminate upon the unanimous written agreement
of all of the Holders of Certificates. Notwithstanding the foregoing, in no event shall the Titling Trust created by the Agreement continue beyond the expiration of 21 years from the death of the last survivor of the descendants of all officers of
the Delaware Trustee living on the date of the Agreement. 
 Unless this Certificate shall have a certificate of authentication attached,
executed by a Responsible Officer of the General Interest Trustee, by manual or facsimile signature, this Certificate shall not entitle the Holder hereof to any benefit under the Agreement or be valid for any purpose. 
 *    *    *    * 
  

 A-3 

 IN WITNESS WHEREOF, the General Interest Trustee on behalf of the Titling Trust and not in its individual
capacity has caused this Series 2006-ARC Portfolio Certificate to be duly executed. 
  

					
	Dated: September 1, 2006	 	NAVISTAR LEASING COMPANY
		
		 	 J.P. Morgan Trust Company, National Association
 (as successor-in-interest to Bank One, National Association),

		 	as General Interest Trustee
			
		 	By:	 	  

		 		 	Authorized Officer

 GENERAL INTEREST TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 This is the Series 2006-ARC Portfolio Certificate referred to in the within-mentioned Agreement. 
  

			
	J.P. Morgan Trust Company, National Association
	(as successor-in-interest to Bank One, National Association), as General Interest Trustee
		
	By:	 	  

		 	Authorized OfficerCollateral Supplement

 EXHIBIT 10.9 
 EXECUTION COPY 
  

 NAVISTAR LEASING COMPANY 
 SERIES 2006-ARC SUPPLEMENT TO 
 COLLATERAL AGENCY AGREEMENT 
 AMONG

 HARCO LEASING COMPANY, INC., 
 NAVISTAR LEASING COMPANY, 
 THE SERIES 2006-ARC PORTFOLIO INTEREST 
 OBLIGORS IDENTIFIED HEREIN, 
 THE SERIES 2006-ARC SECURED PARTIES 
 IDENTIFIED HEREIN, 
 NAVISTAR FINANCIAL
CORPORATION, 
 AS SERVICER, 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION, 
 NAVISTAR FINANCIAL 2006-ARC OWNER TRUST, 
 LASALLE BANK NATIONAL ASSOCIATION, 
 AS
INDENTURE TRUSTEE, 
 AND 
 THE
BANK OF NEW YORK TRUST COMPANY, N.A., 
 AS COLLATERAL AGENT 
 DATED AS OF SEPTEMBER 1, 2006 
  

 TABLE OF CONTENTS 
  

							
	ARTICLE X	  	
		    	    DEFINITIONS	  	2
		    	    SECTION 10.1	  	Definitions	  	2
			
	ARTICLE XI	  		  	
		    	    GRANT OF SECURITY INTEREST OVER DESIGNATED COLLATERAL	  	3
		    	    SECTION 11.1	  	Grant of Security Interest	  	3
		    	    SECTION 11.2	  	Designation of Series 2006-ARC Portfolio Interest Collateral	  	3
		    	    SECTION 11.3	  	Delivery of Series 2006-ARC Portfolio Certificate	  	3
		    	    SECTION 11.4	  	Perfection of Security Interest in Designated Collateral	  	3
		    	    SECTION 11.5	  	Designation of Secured Parties	  	3
		    	    SECTION 11.6	  	Schedule of Retail Leases.	  	4
		    	    SECTION 11.7	  	Statements; Further Assurances	  	4
		    	    SECTION 11.8	  	Remedies	  	4
		    	    SECTION 11.9	  	Re-allocation of Series 2006-ARC Portfolio Assets	  	5
			
	ARTICLE XII	  		  	
		    	    MISCELLANEOUS PROVISIONS	  	5
		    	    SECTION 12.1	  	Notices	  	5
		    	    SECTION 12.2	  	Successors and Assigns	  	5
		    	    SECTION 12.3	  	Severability	  	5
		    	    SECTION 12.4	  	Governing Law	  	5
		    	    SECTION 12.5	  	Counterparts	  	5
		    	    SECTION 12.6	  	Termination	  	5
		    	    SECTION 12.7	  	Headings	  	5
		    	    SECTION 12.8	  	Effect of this Series 2006-ARC Collateral Supplement on the Collateral Agency Agreement	  	6

  

 i 

 SERIES 2006-ARC SUPPLEMENT TO 
 COLLATERAL AGENCY AGREEMENT 
 SERIES 2006-ARC SUPPLEMENT TO COLLATERAL AGENCY
AGREEMENT (this “Series 2006-ARC Collateral Supplement”), dated and effective as of September 1, 2006, among Harco Leasing Company, Inc., a Delaware corporation (“Harco Leasing”), Navistar Leasing Company, a
Delaware statutory trust (the “Titling Trust”), the Series 2006-ARC Portfolio Interest Obligors identified herein, the Series 2006-ARC Secured Parties identified herein, and each other person from time to time joining in this Series
2006-ARC Collateral Supplement in the capacity of a Secured Party, Navistar Financial Corporation, a Delaware corporation (“Navistar Financial”), as Servicer, Navistar Financial Retail Receivables Corporation, a Delaware corporation
(“NFRRC”), Navistar Financial 2006-ARC Owner Trust, a Delaware statutory trust (the “Issuer”), The Bank of New York Trust Company, N.A., a national banking association, as successor-in-interest to Harris Trust and
Savings Bank, acting in its capacity as collateral agent for the holders of the Secured Obligations (in such capacity, the “Collateral Agent”), and LaSalle Bank National Association, a national banking association, acting in its
capacity as Indenture Trustee pursuant to the Indenture (as defined below) (the “Indenture Trustee”). 
 RECITALS

 A. Harco Leasing, the Titling Trust, each other Person from time to time joining in this Series 2006-ARC Collateral Supplement in the
capacity of a Secured Party, Navistar Financial and the Collateral Agent have entered into that certain Collateral Agency Agreement, dated as of April 15, 1999 (as amended, the “Collateral Agency Agreement”), which provides,
among other things, for the grant of certain security interests over the Titling Trust Assets in accordance with the Titling Trust Agreement. 
 B. Harco Leasing, the General Interest Trustee and the Delaware Trustee have entered into the Titling Trust Agreement, pursuant to which the Titling Trust has been formed for the purpose of taking assignments and conveyances of,
holding in trust and dealing in, various Titling Trust Assets. 
 C. Harco Leasing, the General Interest Trustee, the Delaware Trustee and
the Series 2006-ARC Portfolio Trustee have entered into the Series 2006-ARC Portfolio Supplement for the purpose of designating and accounting for as separate the Series 2006-ARC Portfolio Assets as a separate Portfolio Interest known as the Series
2006-ARC Portfolio Interest, to be represented by the Series 2006-ARC Portfolio Certificate. 
 D. The Titling Trust, Harco Leasing, the
Collateral Agent and the Servicer have entered into the Titling Trust Servicing Agreement, which provides for, among other things, the servicing of the Titling Trust Assets by the Servicer. 
 E. Pursuant to the Collateral Agency Agreement, the Collateral Agent holds the Titling Trust Estate as Collateral Agent in order to secure the payment of
the Secured Obligations. 

 F. The Collateral Agency Agreement contemplates that, from time to time, a Titling Trust Interest Holder
may desire to secure Secured Obligations with the Designated Collateral identified in a Collateral Supplement. 
 G. In connection with the
creation of the Series 2006-ARC Portfolio Interest, Harco Leasing has transferred its interest therein and in the related Series 2006-ARC Portfolio Certificate and Series 2006-ARC Portfolio Assets to Navistar Financial pursuant to the Lease Purchase
Agreement. Navistar Financial has in turn transferred the Series 2006-ARC Portfolio Certificate and such other collateral to NFRRC pursuant to the Purchase Agreement. NFRRC has in turn transferred the Series 2006-ARC Portfolio Certificate and such
other collateral to the Issuer pursuant to the Pooling Agreement. The Issuer has in turn granted a security interest in the Series 2006-ARC Portfolio Certificate and such other collateral to the Indenture Trustee pursuant to the Indenture.

 H. The parties hereto wish to supplement the terms of the Collateral Agency Agreement (i) to cause the obligations of Harco Leasing
under the Lease Purchase Agreement, the obligations of Navistar Financial under the Purchase Agreement, the obligations of NFRRC under the Pooling Agreement and the obligations of the Issuer under the Indenture (each such Person in such capacity, a
“Series 2006-ARC Portfolio Interest Obligor”), in each case, to be Secured Obligations, (ii) to establish that each of Navistar Financial under the Lease Purchase Agreement, NFRRC under the Purchase Agreement, the Issuer under
the Pooling Agreement and the Indenture Trustee under the Indenture shall, in such capacity, be a Secured Party under the Collateral Agency Agreement (each such person in such capacity, a “Series 2006-ARC Secured Party”) and
(iii) to establish the terms on which the Collateral Agent will act on behalf of such Series 2006-ARC Secured Parties. 
 NOW THEREFORE,
in consideration of the promises and the mutual covenants contained herein and in the Titling Trust Agreement, the parties hereto agree to the following supplemental obligations and provisions with regard to the Series 2006-ARC Portfolio Assets, the
Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate: 
 ARTICLE X 
 DEFINITIONS 
 SECTION 10.1
Definitions. For all purposes of this Series 2006-ARC Collateral Supplement, except as otherwise expressly provided or unless the context otherwise requires: 
 (a) unless otherwise defined herein, all capitalized terms used herein shall have the meanings attributed to them by Appendix A to the Pooling Agreement dated as of September 1, 2006 between Navistar
Financial Retail Receivables Corporation and Navistar Financial 2006-ARC Owner Trust (the “Pooling Agreement”), or if not defined therein, then as defined in Appendix A to the Titling Trust Agreement (as defined in the
Pooling Agreement); 
 (b) the rules of construction set forth in Part II of Appendix A to the Pooling Agreement shall be applicable
to this Series 2006-ARC Collateral Supplement; and 
  

 2 

 (c) any reference herein to the “General Interest Trustee, acting on behalf of the Titling
Trust,” or words of similar import, shall be deemed to mean the General Interest Trustee, acting on behalf of the Titling Trust and all beneficiaries thereof. 
 ARTICLE XI 
 GRANT OF SECURITY INTEREST OVER DESIGNATED COLLATERAL 
 SECTION 11.1 Grant of Security Interest. Pursuant to Section 2.1(b) of the Collateral Agency Agreement, in order to secure the rights
of each Series 2006-ARC Secured Party and the payment and performance of the respective Secured Obligations owing to each such Series 2006-ARC Secured Party, each Series 2006-ARC Portfolio Interest Obligor hereby assigns, conveys, transfers,
delivers and sets over unto the Collateral Agent for the benefit of the applicable Series 2006-ARC Secured Party, as a Secured Party, and hereby grants to the Collateral Agent for the benefit of the applicable Series 2006-ARC Secured Party, as a
Secured Party, a Security Interest in and to the Series 2006-ARC Portfolio Interest Collateral. The parties hereto acknowledge that this Series 2006-ARC Collateral Supplement shall be deemed a “Security Document” for purpose of the
Collateral Agency Agreement. 
 SECTION 11.2 Designation of Series 2006-ARC Portfolio Interest Collateral. Each of the Series 2006-ARC
Portfolio Interest Obligors hereby agrees that the collateral over which the Security Interest is created pursuant to Section 11.1 above (the “Series 2006-ARC Portfolio Interest Collateral”) consists of the following:

 (a) the Series 2006-ARC Portfolio Assets, the Series 2006-ARC Portfolio Interest and the Series 2006-ARC Portfolio Certificate; and

 (b) all proceeds of any of the foregoing, in each case, whether now owned or existing or hereafter acquired or arising and regardless of
where located. All of the Series 2006-ARC Portfolio Interest Collateral shall constitute “Designated Collateral” for purposes of the Collateral Agency Agreement. 
 SECTION 11.3 Delivery of Series 2006-ARC Portfolio Certificate. Harco Leasing has agreed to deliver the Series 2006-ARC Portfolio Certificate to
Navistar Financial. Navistar Financial has agreed to deliver the Series 2006-ARC Portfolio Certificate to NFRRC. NFRRC has agreed to deliver the Series 2006-ARC Portfolio Certificate to the Issuer, and the Issuer has agreed to deliver the Series
2006-ARC Portfolio Certificate to the Indenture Trustee. The Indenture Trustee will be the Holder of the Series 2006-ARC Portfolio Certificate (the “Series 2006-ARC Portfolio Interest Holder”). 
 SECTION 11.4 Perfection of Security Interest in Designated Collateral. Each of the Servicer, the Titling Trust and each Series 2006-ARC Portfolio
Interest Obligor hereby agrees to take such steps as are necessary to perfect the Security Interest of the Collateral Agent, on behalf of the Series 2006-ARC Secured Parties, over the Series 2006-ARC Portfolio Interest Collateral. 
 SECTION 11.5 Designation of Secured Parties. Each of Navistar Financial in its capacity as purchaser under the Lease Purchase Agreement, NFRRC in
its capacity as purchaser under the Purchase Agreement, the Issuer in its capacity as transferee under the Pooling Agreement and the Indenture Trustee in its capacity as Trustee under the Indenture shall, in such capacity, be a Secured Party under
the Collateral Agency Agreement. 
  

 3 

 SECTION 11.6 Schedule of Retail Leases. 
 (a) On or before each Lease Purchase Date, the Servicer shall deliver to each of the Collateral Agent and the Indenture Trustee a list of all Retail
Leases which shall be, effective as of the closing to occur on such date, allocated to the Series 2006-ARC Portfolio Interest. 
 (b) The
Collateral Agent shall maintain the current list of Retail Leases described in this Section 11.6 for examination by the Series 2006-ARC Secured Parties and their respective representatives during normal business hours and upon prior
written request at the address set forth on the signature page hereof. 
 SECTION 11.7 Statements; Further Assurances. The Servicer
agrees to execute and record and file or cause to be recorded and filed financing statements (and continuation and other statements with respect to such financing statements, when appropriate) with respect to the Series 2006-ARC Portfolio Interest
Collateral (whether now existing or hereafter created) meeting the requirements of applicable state or local law in such manner and in such jurisdictions as the Series 2006-ARC Portfolio Interest Holder reasonably determines are necessary or
desirable to perfect, and to maintain perfection of (and the priority of), the Series 2006-ARC Portfolio Interest Holder’s Security Interest in the Series 2006-ARC Portfolio Interest Collateral. The Servicer shall deliver (or cause to be
delivered) to the Series 2006-ARC Portfolio Interest Holder file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as available following such filing. Subject to Section 11.6 hereof, at any time and
from time to time, upon the written request of the Series 2006-ARC Portfolio Interest Holder, the Servicer will promptly and duly execute and deliver any and all such further instruments and documents as the Series 2006-ARC Portfolio Interest Holder
may reasonably request to: (i) obtain the full benefit of the Security Interest intended to be afforded hereby and of the rights and powers herein granted (subject to the Servicer’s rights under this Series 2006-ARC Collateral Supplement),
(ii) enforce the rights of the Series 2006-ARC Portfolio Interest Holder in any of the Series 2006-ARC Portfolio Interest Collateral; or (iii) preserve and defend the rights of the Series 2006-ARC Portfolio Interest Holder in the Series
2006-ARC Portfolio Interest Collateral against the claims of all Persons and parties. 
 SECTION 11.8 Remedies. Articles V and VI of
the Collateral Agency Agreement shall not be applicable with respect to the Series 2006-ARC Portfolio Interest Collateral and neither Harco Leasing nor any Series 2006-ARC Portfolio Interest Holder shall be deemed to be an Electing Holder
thereunder. It is the intent of the parties to this Series 2006-ARC Collateral Supplement that, upon the occurrence of an Event of Default under the Indenture, the Collateral Agent will act at the written direction of the Indenture Trustee with
respect to the Series 2006-ARC Portfolio Interest Collateral, and the Indenture Trustee may exercise all available remedies under the Indenture with respect to the Series 2006-ARC Portfolio Interest Collateral by itself or through the Collateral
Agent. 
  

 4 

 SECTION 11.9 Re-allocation of Series 2006-ARC Portfolio Assets. If any Retail Lease becomes a
Warranty Receivable or an Administrative Receivable, the repurchase by NFC or NFRRC or any other Person of such Retail Lease and the Related Titling Trust Assets in accordance with the Basic Documents shall constitute a transfer thereof and of any
related Series 2006-ARC Portfolio Interest Collateral to which Section 2.2(b) of the Collateral Agency Agreement shall be effective. 
 ARTICLE XII 
 MISCELLANEOUS PROVISIONS 
 SECTION 12.1 Notices. The notice provisions of Section 9.1 of the Collateral Agency Agreement shall apply equally to this Series 2006-ARC Collateral Supplement. Any notice to be provided to the
Indenture Trustee shall be sent to the following location: 135 S. LaSalle Street, Suite 1625, Chicago, Illinois 60603, Attention: Global Securities and Trust Services—Navistar 2006-ARC, Facsimile: (312) 904-1085. 
 SECTION 12.2 Successors and Assigns. Whenever any of the parties hereto is referred to such reference shall be deemed to include the successors
and assigns of such party; and all the covenants, promises and agreements in this Series 2006-ARC Collateral Supplement contained by or on behalf of the parties hereto shall bind and inure to the benefit of the respective successors and assigns of
such parties whether so expressed or not. 
 SECTION 12.3 Severability. Any provision of this Series 2006-ARC Collateral Supplement
that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 SECTION
12.4 Governing Law. This Series 2006-ARC Collateral Supplement shall be construed in accordance with the internal laws of the State of Illinois, except as otherwise required by mandatory provisions of law without reference to its
conflict of law provisions, and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
 SECTION 12.5 Counterparts. This Series 2006-ARC Collateral Supplement may be executed by the parties hereto in separate counterparts (and by different parties on separate counterparts), each of which when so executed and delivered
shall be an original, but all of which together shall constitute one and the same instrument. 
 SECTION 12.6 Termination. This Series
2006-ARC Collateral Supplement shall terminate when the Security Interest granted hereunder has terminated in accordance with Section 8.2 of the Collateral Agency Agreement and all the Series 2006-ARC Portfolio Interest Collateral has
been released; provided that the provisions of Section 7.12 of the Collateral Agency Agreement shall not be affected by any such termination. 
 SECTION 12.7 Headings. The headings of the various Articles and Sections herein are for purposes of reference only and shall not affect the meaning or interpretation of any provision hereof. 
  

 5 

 SECTION 12.8 Effect of this Series 2006-ARC Collateral Supplement on the Collateral Agency
Agreement. Except as otherwise specifically provided herein: (i) the parties shall continue to be bound by all provisions of the Collateral Agency Agreement; (ii) the provisions set forth herein shall operate either as additions to or
modifications of the obligations of the parties under the Collateral Agency Agreement, as the context may require; and (iii) the Collateral Agent shall be afforded the same rights, protections, immunities and indemnities as set forth in the
Collateral Agency Agreement as if the same were expressly set forth herein. In the event of any conflict between the provisions of this Series 2006-ARC Collateral Supplement and the Collateral Agency Agreement with respect to the Series 2006-ARC
Portfolio Interest Collateral, the provisions of this Series 2006-ARC Collateral Supplement shall prevail. 
 *    *    *    * 
  

 6 

 IN WITNESS WHEREOF, the parties hereto have caused this Series 2006-ARC Collateral Supplement to the
Collateral Agency Agreement to be duly executed by their respective officers as of the day and year first above written. 
  

			
	HARCO LEASING COMPANY, INC.
		
	By:	 	 /s/ John V. Mulvaney, Sr.

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	Vice President and Controller
	
	NAVISTAR LEASING COMPANY
		
	By:	 	 /s/ John V. Mulvaney, Sr.

	Name:	 	John V. Mulvaney, Sr.
	Title:	 	Vice President and Controller
	
	NAVISTAR FINANCIAL CORPORATION
		
	By:	 	 /s/ John V. Mulvaney, Sr.

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

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

  

 7 

			
	NAVISTAR FINANCIAL 2006-ARC OWNER TRUST
	
	By: Chase Bank USA, National Association, not in its individual capacity, but solely in its capacity as Owner Trustee
		
	By:	 	 /s/ Sarika M. Sheth

	Name:	 	Sarika M. Sheth
	Title:	 	Assistant Vice President
	Address:	 	c/o JPMorgan Chase
		 	500 Stanton Christiana Road
		 	OPS4/3rd Floor
		 	Newark, DE 19713
		 	Attn: Institutional Trust Services
	
	 LASALLE BANK NATIONAL ASSOCIATION,
 solely in its capacity as Indenture Trustee

		
	By:	 	 /s/ Timothy E. Cutsinger

	Name:	 	Timothy E. Cutsinger
	Title:	 	Assistant Vice President
	Address:	 	135 S. LaSalle Street, Suite 1625
		 	Chicago, IL 60603
		 	Attn: Global Securities and Trust Services-Navistar 2006-ARC
	
	THE BANK OF NEW YORK TRUST COMPANY, N.A., solely in its capacity as Collateral Agent
		
	By:	 	 /s/ Sally R. Tokich

	Name:	 	Sally R. Tokich
	Title:	 	Assistant Vice President
	Address:	 	2 North LaSalle Street, Suite 1020
		 	Chicago, IL 60602

  

 8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]