Document:

Series 2010-1 Indenture Supplement

 Exhibit 10.1 
 Execution Copy 
  
  
 NAVISTAR FINANCIAL DEALER NOTE

 MASTER OWNER TRUST 
 as Issuer 
 and 
 THE BANK OF NEW YORK MELLON 
 as Indenture Trustee 

SERIES 2010-1 INDENTURE SUPPLEMENT 
 dated as of February 12, 2010 
 to 
 INDENTURE 
 dated as
of June 10, 2004 
  
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
		
	 ARTICLE I Definitions and Other Provisions of General Application
	  	1
		 	Section 1.01	  	Definitions	  	1
		
	 ARTICLE II The Notes
	  	17
		 	Section 2.01	  	Creation and Designation	  	17
		 	Section 2.02	  	Form of Delivery; Depository; Denominations	  	18
		 	Section 2.03	  	Delivery and Payment	  	18
		
	 ARTICLE III Allocations, Deposits and Payments
	  	18
		 	Section 3.01	  	Series 2010-1 Available Interest Amounts	  	18
		 	Section 3.02	  	Series 2010-1 Available Principal Amounts	  	21
		 	Section 3.03	  	Reductions and Reinstatements	  	23
		 	Section 3.04	  	Payment on the Series 2010-1 Notes	  	25
		 	Section 3.05	  	Accumulation Period Length and Accumulation Period Commencement Date	  	26
		 	Section 3.06	  	Final Payment of the Series 2010-1 Notes	  	26
		 	Section 3.07	  	Netting of Deposits and Payments	  	27
		 	Section 3.08	  	Calculation Agent; Determination of LIBOR	  	27
		 	Section 3.09	  	Computation of Interest	  	28
		 	Section 3.10	  	Accounts	  	28
		 	Section 3.11	  	Spread Account	  	29
		 	Section 3.12	  	Negative Carry Account	  	29
		 	Section 3.13	  	Reports and Statements to Series 2010-1 Noteholders	  	30
		
	 ARTICLE IV MISCELLANEOUS PROVISIONS
	  	31
		 	Section 4.01	  	Ratification of Indenture	  	31
		 	Section 4.02	  	Counterparts	  	31
		 	Section 4.03	  	GOVERNING LAW	  	31
		 	Section 4.04	  	Limitation of Owner Trustee Liability	  	31
		 	Section 4.05	  	Notice to FRBNY	  	31
		 	Section 4.06	  	No Registration of the Series 2010-1 Notes under the Securities Act	  	31
		 	Section 4.07	  	Consent to Amendments	  	36

  

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 EXHIBITS 
  

			
	 EXHIBIT A-1
	  	FORM OF SERIES 2010-1 NOTE, CLASS A
		
	 EXHIBIT A-2
	  	FORM OF SERIES 2010-1 NOTE, CLASS B
		
	 EXHIBIT A-3
	  	FORM OF SERIES 2010-1 NOTE, CLASS C
		
	 EXHIBIT B
	  	FORM OF MONTHLY SERVICER AND SETTLEMENT CERTIFICATE

  

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 This SERIES 2010-1 INDENTURE SUPPLEMENT (this “Indenture Supplement”), by
and between NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST, a statutory trust created under the laws of the State of Delaware (the “Issuer”), and THE BANK OF NEW YORK MELLON, a New York banking corporation, as trustee (the
“Indenture Trustee”), is made and entered into as of February 12, 2010. 
 Pursuant to this Indenture
Supplement, the Issuer 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 terms defined in this Article have the meanings assigned to them in this Article, and include the plural as well as the singular;

 (2) all other terms used but not defined herein which are defined in the Indenture, the Series Supplement or the 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 as originally executed. 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 2010-1 Notes
and no other series of Notes issued by the Issuer; and 
 (7) “including” and words of similar import shall be
deemed to be followed by “without limitation.” 
 “Accumulation Period” means the period from
and including the Accumulation Period Commencement Date to but excluding the earlier of (i) the beginning of an Early Redemption Period or (ii) the Series 2010-1 Termination Date. 

 “Accumulation Period Commencement Date” means the first day of the
nth full Due Period prior to the Expected Principal Payment Date where n is the number of Due Periods in the Accumulation Period Length; provided, however, that the Accumulation Period Commencement Date shall be the
Specified Accumulation Period Commencement Date if, on the Specified Accumulation Period Commencement Date, any other Outstanding series of Notes shall have entered into an early redemption period as defined for such other series of Notes; and
provided, further, that, if the Accumulation Period Length and the Accumulation Period Commencement Date have been determined pursuant to Section 3.05 but the Accumulation Period has not commenced and any other Outstanding
series of Notes shall enter into an early redemption period as defined for such other series of Notes, the Accumulation Period Commencement Date shall be the date that such other Outstanding series of Notes shall have entered into an early
redemption period. 
 “Accumulation Period Length” means a period which is between one and nine Due
Periods and which is determined by the Servicer pursuant to Section 3.05. 
 “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. 
 “Calculation Agent” is defined in Section 3.08. 
 “Cash Collateral Percentage” means, with respect to any Transfer Date, the percentage equivalent of a fraction equal to
(a) the sum of the amount of cash on deposit in the Excess Funding Account and in each of the principal funding accounts with respect to each series of Notes over (b) the sum of (i) the Outstanding Principal Amount of each series of
Notes, (ii) the Invested Amount of each series of Investor Certificates (other than the Collateral Certificate) (without giving effect to the allocation of Series Allocable Dealer Note Losses), (iii) the Available Subordinated Amount of
each series of Investor Certificates (other than the Collateral Certificate) (without giving effect to the allocation of Series Allocable Dealer Note Losses), (iv) the Series 2010-1 Target Overcollateralization Amount and the target
overcollateralization amount specified for each other series of Notes and (v) the Required Excess Seller’s Interest (as defined in each Series Supplement) related to the Investor Certificates (other than the Collateral Certificate) and the
Minimum Series Seller’s Interest with respect to the Collateral Certificate less the sum of the overcollateralization amounts specified for each other series of Notes. 
 “Class A Interest Rate” means a rate per annum equal to LIBOR, as determined by the Calculation Agent on the second
Business Day preceding the 15th day of each month (or, if such day is not a Business Day, the next following Business Day) or, in the case of the initial Interest Period, as of 11:00 a.m., London time, on the Business Day preceding the applicable
Loan Subscription Date, plus 1.65%. For purposes of this definition, “Business Day” means any day the FRBNY, as lender under the Master Loan and Security Agreement under TALF, is open for conducting all or substantially all its banking
functions. 
 “Class A Monthly Interest” is defined in Section 3.01. 
  

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 “Class A Nominal Liquidation Amount” means, at any time, the Class A
Outstanding Principal Amount, minus 
  

	 	(i)	the amount (other than investment earnings) then on deposit in the Series 2010-1 Principal Funding Account (after giving effect to any deposits, allocations,
reallocations or withdrawals to be made on that day); minus 

  

	 	(ii)	the share of all reallocations of the Series 2010-1 Available Principal Amounts that is allocated to the Class A Notes pursuant to Section 3.03(b)(iv)
on or prior to such date of determination; minus  

  

	 	(iii)	the share of the allocations of Series 2010-1 Noteholder Allocated Dealer Note Losses that is allocated to the Class A Notes pursuant to
Section 3.03(b)(iv) on or prior to such date of determination; plus 

  

	 	(iv)	the share of all reinstatements of the Series 2010-1 Nominal Liquidation Amount that is allocated to the Class A Notes pursuant to Section 3.03(d)(i)
on or prior to such date of determination; 

 provided, however, the Class A Nominal Liquidation Amount may
never be greater than the Class A Outstanding Principal Amount or less than zero. 
 “Class A Notes” means
the $214,800.000 Class A Floating Rate Dealer Note Asset Backed Notes, Series 2010-1. 
 “Class A Outstanding
Principal Amount” equals the aggregate initial outstanding principal amount of the Class A Notes, minus any principal payments made to holders of the Class A Notes. 
 “Class B Interest Rate” means a rate per annum equal to LIBOR, as determined by the Calculation Agent on the second
Business Day preceding the first day of such Interest Period (or, in the case of the initial Interest Period, as of 11:00 a.m., London time, on the Business Day preceding the applicable Loan Subscription Date), plus 2.50%. For purposes of this
definition, “Business Day” means any day the FRBNY, as lender under the Master Loan and Security Agreement under TALF, is open for conducting all or substantially all its banking functions. 
 “Class B Monthly Interest” is defined in Section 3.01. 
 “Class B Nominal Liquidation Amount” means, at any time, an amount equal to the Class B Outstanding Principal Amount,
minus 
  

	 	(i)	the amount (other than investment earnings) then on deposit in the Series 2010-1 Principal Funding Account (after giving effect to any deposits, allocations,
reallocations or withdrawals to be made on that day) in excess of the Class A Nominal Liquidation Amount; minus 

  

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	 	(ii)	the share of all reallocations of the Series 2010-1 Available Principal Amounts that is allocated to the Class B Notes pursuant to Section 3.03(b)(iii) on
or prior to such date of determination; minus  

  

	 	(iii)	the share of the allocations of Series 2010-1 Noteholder Allocated Dealer Note Losses that is allocated to the Class B Notes pursuant to
Section 3.03(b)(iii) on or prior to such date of determination; plus 

  

	 	(iv)	the share of all reinstatements of the Series 2010-1 Nominal Liquidation Amount that is allocated to the Class B Notes pursuant to Section 3.03(d)(ii) on or
prior to such date of determination; 

 provided, however, the Class B Nominal Liquidation Amount may never be
greater than the Class B Outstanding Principal Amount or less than zero. 
 “Class B Notes” means the
$16,400,000 Class B Floating Rate Dealer Note Asset Backed Notes, Series 2010-1. 
 “Class B Outstanding Principal
Amount” equals the aggregate initial outstanding principal amount of the Class B Notes, minus any principal payments made to holders of the Class B Notes. 
 “Class C Interest Rate” means a rate per annum equal to LIBOR, as determined by the Calculation Agent on the second Business Day preceding the first day of such Interest Period (or, in
the case of the initial Interest Period, as of 11:00 a.m., London time, on the Business Day preceding the applicable Loan Subscription Date), plus 3.50%. For purposes of this definition, “Business Day” means any day the FRBNY, as lender
under the Master Loan and Security Agreement under TALF, is open for conducting all or substantially all its banking functions. 
 “Class C Monthly Interest” is defined in Section 3.01. 
 “Class C Nominal
Liquidation Amount” means, at any time, an amount equal to the Class C Outstanding Principal Amount, minus 
  

	 	(i)	the amount (other than investment earnings) then on deposit in the Series 2010-1 Principal Funding Account (after giving effect to any deposits, allocations,
reallocations or withdrawals to be made on that day) in excess of the sum of the Class A Nominal Liquidation Amount and the Class B Nominal Liquidation Amount; minus 

  

	 	(ii)	the share of all reallocations of the Series 2010-1 Available Principal Amounts that is allocated to the Class C Notes pursuant to Section 3.03(b)(ii) on or
prior to such date of determination; minus  

  

	 	(iii)	the share of the allocations of Series 2010-1 Noteholder Allocated Dealer Note Losses that is allocated to the Class C Notes pursuant to Section 3.03(b)(ii)
on or prior to such date of determination; plus 

  

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	 	(iv)	the share of all reinstatements of the Series 2010-1 Nominal Liquidation Amount that is allocated to the Class C Notes pursuant to Section 3.03(d)(iii) on
or prior to such date of determination; 

 provided, however, the Class C Nominal Liquidation Amount may never be
greater than the Class C Outstanding Principal Amount or less than zero. 
 “Class C Notes” means the
$18,800,000 Class C Floating Rate Dealer Note Asset Backed Notes, Series 2010-1. 
 “Class C Outstanding Principal
Amount” equals the aggregate initial outstanding principal amount of the Class C Notes, minus any principal payments made to holders of the Class C Notes. 
 “Collateral Amount” means, with respect to the Series 2010-1 Notes, the Series 2010-1 Collateral Amount. 
 “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 Weighted Average
Note Rate for the related Distribution 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. 
 “Early Redemption Events” means, with respect to the Series 2010-1 Notes, each of the Early Amortization Events specified
in Section 9.01 of the Pooling and Servicing Agreement, plus each of the following: 
  

	 	(A)	failure on the part of the Seller (i) to make any payment, distribution or deposit required under the Pooling and Servicing Agreement or the Series Supplement
within five Business Days after the Due Date or (ii) to observe or perform in any material respect any other material covenants or agreements of the Seller, which failure has a material adverse effect on the Series 2010-1 Noteholders and which
continues unremedied for a period of 60 days after written notice of such failure shall have been given to the Seller by the Indenture Trustee or to the Seller and the Indenture Trustee by any Holder of the Series 2010-1 Notes;

  

	 	(B)	 any representation or warranty made by the Seller pursuant to the Pooling and Servicing Agreement or any information contained in the schedule of
Dealer Notes delivered thereunder or the Series Supplement 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 Seller by the Indenture Trustee or to
the Seller and the Indenture Trustee by any Holder of the Series 2010-1 Notes and as a result of which the interests of the Series 2010-1 Noteholders are materially and adversely affected; provided, however, that an Early Redemption
Event shall not be deemed to occur if the Seller has

  

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repurchased the related Dealer Notes or all such Dealer Notes, if applicable, during such period in accordance with the provisions of the Pooling and Servicing Agreement;

  

	 	(C)	any of the Seller, ITEC, NIC or NFC shall file a petition commencing a voluntary case under any chapter of the federal bankruptcy laws; or the Seller, ITEC, 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 Seller, ITEC,
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 Seller,
ITEC, 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; 

  

	 	(D)	any order for relief against any of the Seller, ITEC, 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 Seller, ITEC, 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 Seller, ITEC, 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 Seller shall become legally unable for any reason to transfer Dealer Notes to the Master Trust in accordance with the provisions of the 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 Payment Date), the Series 2010-1
Target Overcollateralization Amount exceeds the Series 2010-1 Overcollateralization Amount; provided, however, that if such shortfall was caused by an increase in the Series 2010-1 Target Overcollateralization Amount as a result of the
occurrence of an Excess Cash Collateral Event, the Seller shall have a six month grace period to increase the Series 2010-1 Overcollateralization Amount to the required level; 

  

	 	(G)	any Servicer Termination Event shall occur (i) which would have a material adverse effect on the Series 2010-1 Noteholders and (ii) for which the Servicer has
received a notice of termination; 

  

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	 	(H)	on any Determination Date, as of the last day of the preceding Due Period, the aggregate principal balance of Dealer Notes owned by the Master Trust relating to used
vehicles exceeds 25% of the aggregate principal balance of Dealer Notes held by the Master Trust on that last day; 

  

	 	(I)	the average Monthly Payment Rate for any three consecutive Due Periods is less than 16%; 

  

	 	(J)	the Series 2010-1 Outstanding Principal Amount is not repaid by the Expected Principal Payment Date; 

  

	 	(K)	the Issuer 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 Seller to the Master Trust Trustee of a notice stating that the Seller shall no longer continue to sell Dealer Notes to the Master Trust commencing
on the date specified in such notice; 

  

	 	(N)	the Average Coverage Differential shall be equal to or less than negative two percent (-2%) 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%); 

  

	 	(P)	at the end of any Due Period, the Seller’s Invested Amount is reduced to an amount less than the Minimum Seller’s Invested Amount and the Seller has failed to
assign additional Dealer Notes to the Master Trust or deposit cash into the Excess Funding Account, the Series 2010-1 Principal Funding Account or any other principal funding account with respect to any other series 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 Invested Amount as a result of the occurrence of an Excess Cash Collateral
Event, the Seller shall have a six month grace period to increase the Seller’s Invested Amount to the required level; 

  

	 	(Q)	failure on the part of ITEC 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; and 

  

	 	(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

  

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than 20%, the amount on deposit in the Series 2010-1 Spread Account is less than the Spread Account Required Amount for five (5) consecutive Business Days. 

 In the case of any event described in clauses (A), (B) or (G) above, an Early Redemption Event with respect
to Series 2010-1 Notes shall be deemed to have occurred only if, after the applicable grace period described in those clauses, if any, either the Indenture Trustee or Series 2010-1 Noteholders holding Series 2010-1 Notes evidencing more than 50% of
the Series 2010-1 Outstanding Principal Amount by written notice to the Seller, the Servicer, the Master Trust Trustee and, if given by Series 2010-1 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 clauses (A), (B) or (G) described above, an Early Redemption Event with respect to the Series 2010-1 Notes shall be deemed to have occurred
without any notice or other action on the part of the Indenture Trustee or the Series 2010-1 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 2010-1 Termination Date. 
 “Excess Available Interest Amounts” means, with respect to any Due Period, either (i) the portion of Series 2010-1
Available Interest Amounts, if any, available after application pursuant to Section 3.01(a)(i) through (xi) or (ii) the amounts available to the Series 2010-1 Notes from the Notes of other series 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 (i) the sum of (A) the portion of Series 2010-1 Available Principal Amounts, if any, available after application pursuant to Section 3.02(a)(i) through
(vi), plus (B) the amounts withdrawn from the Series 2010-1 Principal Funding Account pursuant to Section 3.10 and treated as “Excess Available Principal Amounts,” or (ii) the amounts available to the
Series 2010-1 Notes from the Notes of other series that the applicable Indenture Supplements specify are to be treated as “Excess Available Principal Amounts” on the related Business Day. 
 “Excess Cash Collateral Event” shall be deemed to have occurred and be continuing if for any 18 consecutive Transfer Dates
the Cash Collateral Percentage has exceeded 50%; provided, however, that an Excess Cash Collateral Event shall be deemed to have been cured if subsequent to the occurrence of the Excess Cash Collateral Event the Cash Collateral
Percentage is less than 50% for six consecutive Transfer Dates. 
 “Expected Principal Payment Date” means
January 25, 2012. 
 “FRBNY” shall mean the Federal Reserve Bank of New York. 
 “Indenture” means the Indenture, dated as of June 10, 2004, between the Issuer and The Bank of New York Mellon, as
Indenture Trustee, as amended and supplemented from time to time. 
 “Interest Period” means, with respect to
any Payment Date, the period from and including the preceding Payment Date to but excluding that Payment Date, or, in the case of the first

  

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Payment Date, from and including the Series 2010-1 Issuance Date to but excluding such first Payment Date. 
 “Investor Servicing Fee” is defined in the Series Supplement. 
 “Issuance Date” means, with respect to the Series 2010-1 Notes, February 12, 2010. 
 “Legal Final Maturity Date” means January 26, 2015. 
 “LIBOR” means with
respect to any Interest Period: 
 (1) for the Class A Notes, the rate per annum for one-month deposits in U.S. dollars
which appears on the Bloomberg Screen BTMM Page under the heading “LIBOR FIX” as of 11:00 a.m., London, time, on the second Business Day preceding the 15th day of each month (or, in the case of the initial Interest Period, as of 11:00
a.m., London time, on the Business Day preceding the applicable Loan Subscription Date); and 
 (2) for the Class B Notes and
the Class C Notes, the rate per annum for one-month deposits in U.S. dollars which appears on the Bloomberg Screen BTMM Page under the heading “LIBOR FIX” as of 11:00 a.m., London, time, on the second Business Day preceding the first day
of such Interest Period (or, in the case of the initial Interest Period, as of 11:00 a.m., London time, on the Business Day preceding the applicable Loan Subscription Date); 
 provided, that, if such rate does not appear on the Bloomberg Screen BTMM Page, “LIBOR” shall be the
interest rate per annum determined by The Bank of New York Mellon, as administrator under the Master Loan and Security Agreement under TALF (on the basis of quotes from two or more major international banks) to be representative of the rates per
annum at which one-month deposits in U.S. dollars are offered by major international banks to other major international banks in the London interbank market as of the second Business Day preceding (a) with respect to the Class A Notes, the
15th day of each month and (b) with respect to the Class B Notes and the Class C Notes, the first day of such Interest Period (or, in the case of the initial Interest Period, as of the Business Day preceding the applicable Loan Subscription
Date). For purposes of this definition, “Business Day” means any day the FRBNY, as lender under the Master Loan and Security Agreement under TALF, is open for conducting all or substantially all its banking functions. 
 “Loan Subscription Date” has the meaning ascribed to such term in the Master Loan and Security Agreement under TALF.

 “Master Loan and Security Agreement” means the Master Loan and Security Agreement among the FRBNY, as
Lender, various TALF agents from time to time party thereto, each on behalf of itself and its respective customers as borrowers thereunder from time to time, The Bank of New York Mellon, as Administrator, and The Bank of New York Mellon, as
Custodian (as amended from time to time). 
  

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 “Mismatch Amount” means for any Transfer Date, the
product of (a) the amount on deposit in the Series 2010-1 Principal Funding Account during the Revolving Period at the end of any Due Period, (b) the Mismatch Rate and (c)  1/12. 
 “Mismatch Period” means for any Transfer Date when the Mismatch Amount is greater than zero, the number of future Payment
Dates up to and including the Expected Principal Payment Date. 
 “Mismatch Rate” means 2.19%. 
 “Monthly Payment Rate” means, on any Determination Date, the quotient of (1) the sum of Dealer Note Principal
Collections for the related Due Period and (2) the daily average principal amount of Dealer Notes outstanding during the related Due Period. 
 “Nominal Liquidation Amount” means, with respect to the Series 2010-1 Notes, the Series 2010-1 Nominal Liquidation Amount. 
 “Nominal Liquidation Amount Deficit” means, with respect to the Series 2010-1 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.

 “Overcollateralization Amount” means, with respect to the Series 2010-1 Notes, the Series 2010-1
Overcollateralization Amount. 
 “Overcollateralization Amount Deficit” means, with respect to the Series
2010-1 Notes as of any Transfer Date, the excess of the Series 2010-1 Target Overcollateralization Amount as of such Transfer Date over the Series 2010-1 Overcollateralization Amount as of such Transfer Date. 
 “Payment Date” means the 25th day of each calendar month commencing March 25, 2010, or if such day is not a Business Day, the next succeeding
Business Day. 
 “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. 
 “Qualified Institutional Buyer” is defined in Section 4.06(b)(i). 
 “Reinstatement Amount” is defined in Section 3.01(a)(viii). 
 “Required Negative Carry Account Balance” means for any Transfer Date (a) during the Revolving Period after funds are
deposited into the Series 2010-1 Principal Funding Account, the greater of (i) the present value discounted at 0.25% per annum of the Mismatch Amount for each

  

 10 

 
Due Period during the Mismatch Period and (ii) 0.75% of the amount on deposit in the Series 2010-1 Principal Funding Account and (b) at all other times, zero. 
 “Required Seller’s Invested Amount” equals, for the Series 2010-1 Notes, with respect to any Business Day, the sum of
(a) the Series 2010-1 Overcollateralization Amount as of that day and (b) 3.00% of the Series 2010-1 Nominal Liquidation Amount as of that day. 
 “Revolving Period” means the period beginning on the Issuance Date and ending when an Accumulation Period or Early Redemption Period begins. 
 “Series 2010-1 Accounts” is defined in Section 3.10(a). 
 “Series 2010-1 Allocated Dealer Note Losses” means, with respect to any Due Period and the related Transfer Date, the
product of the Series 2010-1 Variable Allocation Percentage for such Due Period and Noteholder Allocated Dealer Note Losses for such Due Period. 
 “Series 2010-1 Allocated Interest Amounts” means, with respect to any Due Period and the related Transfer Date, the product of the Series 2010-1 Variable Allocation Percentage for such
Due Period and Noteholder Available Interest Amounts for such Due Period. 
 “Series 2010-1 Allocated Principal
Amounts” means, with respect to any Due Period and the related Transfer Date, the product of the Series 2010-1 Fixed Allocation Percentage for such Due Period and Noteholder Available Principal Amounts for such Due Period. 
 “Series 2010-1 Available Interest Amounts” means, with respect to any Due Period and the related Transfer Date, the Series
2010-1 Allocated Interest Amounts for such Due Period; plus: 
  

	 	(i)	any net investment earnings for such Due Period on funds in the Series 2010-1 Interest Funding Account, the Series 2010-1 Principal Funding Account, the Series 2010-1
Negative Carry Account and the Series 2010-1 Spread Account; plus 

  

	 	(ii)	the Series 2010-1 Investment Income; plus 

  

	 	(iii)	if the amount of interest at the Weighted Average Note Rate on funds in the Series 2010-1 Principal Funding Account exceeds the sum of the net investment earnings
described in clause (i) above and the Series 2010-1 Investment Income described in clause(ii) above, the amount of this excess shall be withdrawn from the Series 2010-1 Negative Carry Account to the extent of funds on deposit in
the Series 2010-1 Negative Carry Account and applied pursuant to the terms of this Indenture Supplement; plus 

  

	 	(iv)	any Excess Available Interest Amounts allocated to Series 2010-1 for such Due Period pursuant to Section 3.01(b); plus 

  

	 	(v)	any Excess Finance Charge Collections allocated to Series 2010-1 for such Due Period pursuant to Section 3.01(b); plus 

  

 11 

	 	(vi)	any amount treated as Series 2010-1 Available Interest Amounts pursuant to Sections 3.01(c)(i) and (ii). 

 “Series 2010-1 Available Principal Amounts” means, with respect to any Transfer Date, the Series 2010-1 Allocated Principal
Amounts for such Business Day; plus: 
  

	 	(i)	any Series 2010-1 Available Interest Amounts used to fund the Series 2010-1 Noteholder Allocated Dealer Note Losses for the related Due Period pursuant to
Section 3.01(a)(vi); plus 

  

	 	(ii)	any Series 2010-1 Available Interest Amounts used to reinstate any reduction in the Series 2010-1 Collateral Amount for the related Due Period pursuant to Sections
3.01(a)(vii) and 3.03(c); plus 

  

	 	(iii)	any Excess Available Principal Amounts allocated to Series 2010-1 for such Business Day pursuant to Section 3.02(b); plus  

 

	 	(iv)	any Shared Principal Collections allocated to Series 2010-1 for such Business Day pursuant to Section 3.02(b); plus 

  

	 	(v)	during the occurrence of an Excess Cash Collateral Event, any Series 2010-1 Allocable Finance Charge Collections which are treated as Series 2010-1 Available Principal
Amounts and any Series Allocable Finance Charge Collections allocated to the Seller’s Certificates which are treated as Series 2010-1 Available Principal Amounts; plus 

  

	 	(vi)	any funds from the Series 2010-1 Negative Carry Account used to reinstate any reduction in the Series 2010-1 Collateral Amount on that Transfer Date pursuant to
Section 3.12(b); plus 

  

	 	(vii)	if the Series 2010-1 Notes are in an Early Redemption Period, any Series 2010-1 Available Interest Amounts treated as Series 2010-1 Available Principal Amounts pursuant
to Section 3.01(a)(xi). 

 “Series 2010-1 Backup Servicing Expenses” means, with
respect to any Transfer Date, the product of (a) the Backup Servicing Expenses, multiplied by (b) the quotient of (i) the Series 2010-1 Nominal Liquidation Amount as of such Transfer 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 last day of the related Due Period. 
 “Series 2010-1 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) the quotient of (i) the Series 2010-1 Nominal Liquidation Amount as of such Transfer 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 last day of the related Due Period. 
  

 12 

 “Series 2010-1 Collateral Amount” equals the sum of the Series 2010-1
Nominal Liquidation Amount and the Series 2010-1 Overcollateralization Amount; provided, that for purposes of calculating the Series Allocation Percentage and other allocation percentages related to Series 2010-1, Series 2010-1 shall be
deemed to have been outstanding from January 31, 2010 to the Issuance Date, with respect to the allocation of Principal Collections and Finance Collections and related concepts, with a Series 2010-1 Collateral Amount of $299,401,197.60.

 “Series 2010-1 Controlled Accumulation Amount” is equal to (a) the Series 2010-1 Outstanding Principal
Amount as of the last day of the Due Period immediately preceding the Accumulation Period Commencement Date, minus the amount on deposit in the Series 2010-1 Principal Funding Account as of the last day of the Due Period immediately preceding
the Accumulation Period Commencement Date, divided by (b) the Accumulation Period Length. 
 “Series 2010-1
Controlled Deposit Amount” for any Due Period occurring during the Accumulation Period means the excess, if any, of: 
  

	 	(i)	the sum of (x) product of (A) the Series 2010-1 Controlled Accumulation Amount and (B) the number of Due Periods that have occurred with respect to the
Accumulation Period through and including that Due Period (but not in excess of the Accumulation Period Length) and (y) the amount on deposit in the Series 2010-1 Principal Funding Account as of the last day of the Due Period immediately
preceding the Accumulation Period Commencement Date, over 

  

	 	(ii)	the amount on deposit in the Series 2010-1 Principal Funding Account as of the last day of the immediately preceding Due Period; 

 provided that notwithstanding the foregoing, the Seller may, in its sole discretion, increase the Series 2010-1 Controlled Deposit Amount at any time
and from time to time. 
 “Series 2010-1 Fixed Allocation Percentage” means, with respect to any Business Day,
the percentage equivalent of a fraction never greater than 100% or less than 0% equal to: 
  

	 	(i)	the numerator of which is the Series 2010-1 Collateral Amount as of the last day of the immediately preceding Due Period (or the Issuance Date in the case of the first
Transfer Date) or, if the Accumulation Period or an Early Redemption Period has commenced, as of the last day of the Due Period ending prior to the commencement of the Accumulation Period or the Early Redemption Period, as applicable; 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 Date
of that series in the case of 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. 

 “Series 2010-1 Interest Funding
Account” means the account designated as such and established pursuant to Section 3.10(a). 
  

 13 

 “Series 2010-1 Investment Income” means with respect to any Due Period and
the Series 2010-1 Notes, the product of the Series 2010-1 Variable Allocation Percentage for such Due Period and Investment Income allocated to the Collateral Certificate for such Due Period. 
 “Series 2010-1 Monthly Interest” means the sum of Class A Monthly Interest, Class B Monthly Interest and Class C
Monthly Interest. 
 “Series 2010-1 Negative Carry Account” means the account designated as such and
established pursuant to Section 3.10(a). 
 “Series 2010-1 Nominal Liquidation Amount” means, with
respect to any Transfer Date, the sum of the Class A Nominal Liquidation Amount, the Class B Nominal Liquidation Amount and the Class C Nominal Liquidation Amount, each as of such Transfer Date; provided that for purposes of calculating
the Series Allocation Percentage and other allocation percentages related to Series 2010-1, Series 2010-1 shall be deemed to have been outstanding from January 31, 2010 to the Issuance Date, with respect to the allocation of Principal
Collections and Finance Collections and related concepts, with a Series 2010-1 Nominal Liquidation Amount of $250,000,000. 
 “Series 2010-1 Noteholder” means a Person in whose name a Series 2010-1 Note is registered in the Note Register or the bearer of any Series 2010-1 Note in Bearer Note form (including a global Note in bearer form), as the
case may be. 
 “Series 2010-1 Noteholder Allocated Dealer Note Losses” means, with respect to any Due Period,
the product of (a) Series 2010-1 Allocated Dealer Note Losses for such Due Period and (b) the quotient of (i) the Series 2010-1 Nominal Liquidation Amount as of the preceding Transfer Date, divided by (ii) the Series
2010-1 Collateral Amount as of the preceding Transfer Date. 
 “Series 2010-1 Notes” is defined in
Section 2.01. 
 “Series 2010-1 Outstanding Principal Amount” means, the sum of the Class A
Outstanding Principal Amount, the Class B Outstanding Principal Amount and the Class C Outstanding Principal Amount. 
 “Series 2010-1 Overcollateralization Amount” means as of any Transfer Date, the Series 2010-1 Target Overcollateralization Amount as of such Transfer Date minus 
  

	 	(i)	all reallocations of the Series 2010-1 Available Principal Amounts used to pay interest on the Series 2010-1 Notes that have been allocated to the Series 2010-1
Overcollateralization Amount pursuant to Section 3.03(b)(i) on or prior to such Transfer Date; minus  

  

	 	(ii)	all allocations of Series 2010-1 Noteholder Allocated Dealer Note Losses that have been allocated to the Series 2010-1 Overcollateralization Amount pursuant to
Section 3.03(b)(i) on or prior to such Transfer Date; minus 

  

 14 

	 	(iii)	the amount, if any, deposited into the Series 2010-1 Spread Account that has been allocated to the Series 2010-1 Overcollateralization Amount pursuant to
Section 3.03(b)(i) on or prior to such Transfer Date; minus 

  

	 	(iv)	the amount, if any, deposited into the Series 2010-1 Negative Carry Account that has been allocated to the Series 2010-1 Overcollateralization Amount pursuant to
Section 3.03(b)(i) on or prior to such Transfer Date; plus 

  

	 	(v)	all reinstatements of the Series 2010-1 Overcollateralization Amount pursuant to Section 3.03(d)(iv) on or prior to such Transfer Date;

 provided, however, the Series 2010-1 Overcollateralization Amount may never be greater than the Series 2010-1
Target Overcollateralization Amount or less than zero; and provided, further, that for purposes of calculating the Series Allocation Percentage and other allocation percentages related to the Series 2010-1, the Series 2010-1 shall be
deemed to have been outstanding from January 31, 2010 to the Issuance Date, with respect to the allocation of Principal Collections and Finance Collections and related concepts, with a Series 2010-1 Overcollateralization Amount of
$49,401,197.60; provided, further, that if the Series 2010-1 Target Overcollateralization Amount has increased as a result of an Excess Cash Collateral Event, the Series 2010-1 Overcollateralization Amount will be proportionately
increased only to the extent that it will not result in the Minimum Seller’s Invested Amount exceeding the Seller’s Invested Amount, and if other series of Notes require similar increases, each such series, including Series 2010-1, shall
receive only its pro rata share of any such increase available based on the aggregate amount of such series’ shortfall. 
 “Series 2010-1 Overcollateralization Percentage” means 16.50%. 
 “Series 2010-1 Principal
Funding Account” means the trust account designated as such and established pursuant to Section 3.10(a). 
 “Series 2010-1 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 sum of the aggregate principal
amounts of the Dealer Notes in the Master Trust as of the last day of the related Due Period, multiplied by (b) the quotient of (i) the Series 2010-1 Nominal Liquidation Amount as of such Transfer Date, divided by (ii) the sum of the
aggregate principal amounts of the Dealer Notes in the Master Trust and the aggregate amount of funds in the Excess Funding Account, each as of the last day of the related Due Period. 
 “Series 2010-1 Spread Account” means the account designated as such and established pursuant to
Section 3.10(a). 
 “Series 2010-1 Target Overcollateralization Amount” means, with respect to any
Transfer Date, the product of the Series 2010-1 Overcollateralization Percentage and Series 2010-1 Collateral Amount as of such Transfer Date; provided, however, that if an Early Redemption Period has commenced, the Series 2010-1
Collateral Amount for the purpose of calculating the Series 2010-1 Target Overcollateralization Amount shall be the Series 2010-1 Collateral Amount as of the last day of the immediately preceding Revolving Period; provided, further,
that if an Excess Cash Collateral Event occurs and is continuing, the Series 2010-1

  

 15 

 
Collateral Amount for purposes of calculating the Series 2010-1 Target Overcollateralization Amount and the Spread Account Required Amount shall be the Series 2010-1 Collateral Amount without
subtracting the amount on deposit in the Series 2010-1 Principal Funding Account in respect of the Series 2010-1 Notes and the Series 2010-1 Nominal Liquidation Amount for purposes of calculating the Required Seller’s Invested Amount shall be
the Series 2010-1 Nominal Liquidation Amount without subtracting the amount on deposit in the Series 2010-1 Principal Funding Account in respect of the Series 2010-1 Notes. 
 “Series 2010-1 Termination Date” means the earliest to occur of (a) the Payment Date on which the Series 2010-1
Outstanding Principal Amount is reduced to zero, (b) the Legal Final Maturity Date and (c) the date on which the Series 2010-1 Collateral Amount is reduced to zero. 
 “Series 2010-1 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 2010-1 Variable Allocation
Percentage” means, with respect to any Due Period, the percentage equivalent of a fraction never greater than 100% or less than 0% equal to: 
  

	 	(i)	the numerator of which is the Series 2010-1 Collateral Amount as of the last day of the immediately preceding Due Period (or the Issuance Date in the case of the first
Transfer Date); 

  

	 	(ii)	the denominator of which is the sum of the Collateral Amount for each series of Notes on that same day. 

 “Series Available Interest Amounts Shortfall” means, with respect to any Transfer Date and the Series 2010-1 Notes, the
excess, if any, of (a) the aggregate amount required to be applied pursuant to Sections 3.01(a)(i) through (viii) for such Transfer Date over (b) the Series 2010-1 Available Interest Amount (excluding amounts to be
treated as part of the Series 2010-1 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 2010-1 Notes, an amount equal to, the amount, if any, by which (i) the sum of
all payments of interest and other applications of Series 2010-1 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 2010-1 Available Principal Amounts (excluding amounts to be treated as part of Series 2010-1 Available Principal Amounts pursuant to clauses (iii) and (iv) of the definition thereof) on such Business Day. 
 “Series Reassignment Amount” means, with respect to the Series 2010-1 Notes and a Transfer Date, the sum of (a) the
Series 2010-1 Nominal Liquidation Amount and (b) all accrued and unpaid interest on the Series 2010-1 Notes, in each case as of that Transfer Date. 
 “Servicer Certificate” is defined in Section 3.13(a). 
 “Specified Accumulation Period Commencement Date” means April 1, 2011. 
  

 16 

 “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 2010-1 Notes and (b) the Legal Final Maturity 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 2010-1 Spread Account. 
 “Spread Account Initial Deposit”
means $4,491,017.96. 
 “Spread Account Required Amount” means, with respect to any Transfer Date, an amount
equal to $4,491,017.96, which is 1.50% of the Series 2010-1 Collateral Amount as of the Closing Date; provided, that, if and for so long as the average Monthly Payment Rate for any three consecutive Due Periods is less than 20%, then
the Spread Account Required Amount shall be an amount equal to $8,982,035.92, which is 3.00% of the Series 2010-1 Collateral Amount as of the Closing Date. 
 “Stated Principal Amount” with respect to any Note, means the amount that is stated on the face of the Note to be payable to its holders. 
 “TALF” shall mean the FRBNY’s Term Asset Backed Securities Loan Facility. 
 “Weighted Average Note Rate” means, for any Transfer Date, the sum of: 
  

	 	(i)	the Class A Interest Rate, multiplied by a fraction, the numerator of which is the Class A Outstanding Principal Amount and the denominator of which is the
Series 2010-1 Outstanding Principal Amount; 

  

	 	(ii)	the Class B Interest Rate, multiplied by a fraction, the numerator of which is the Class B Outstanding Principal Amount and the denominator of which is the Series
2010-1 Outstanding Principal Amount; and 

  

	 	(iii)	the Class C Interest Rate, multiplied by a fraction, the numerator of which is the Class C Outstanding Principal Amount and the denominator of which is the Series
2010-1 Outstanding Principal Amount. 

 ARTICLE II 
 The Notes 
 Section 2.01 Creation and Designation.

 (a) There is hereby created and designated a series of Notes to be issued pursuant to the Indenture and this Indenture
Supplement to be known as “Navistar Financial Dealer Note Master Owner Trust Floating Rate Dealer Note Asset Backed Notes, Series 2010-1” or the “Series 2010-1 Notes.” The Series 2010-1 Notes shall be issued in
three classes, Class A, Class B and Class C, executed by the Issuer and authenticated by or on behalf of the Indenture Trustee, substantially in the form of Exhibit A-1, Exhibit A-2 and Exhibit A-3, respectively.

 (b) The Series 2010-1 Notes shall not be subordinated to any other series of Notes. The Class B Notes shall be subordinate to
the Class A Notes to the extent provided in this

  

 17 

 
Indenture Supplement and the Class C Notes shall be subordinate to the Class A Notes and the Class B Notes to the extent provided in this Indenture Supplement. 
 Section 2.02 Form of Delivery; Depository; Denominations. 
 (a) The Series 2010-1 Notes shall be delivered in the form of global Registered Notes as provided in Sections 2.02, 2.04 and
3.01 of the Indenture, respectively. 
 (b) The Depository for the Series 2010-1 Notes shall be The Depository Trust
Company, and the Series 2010-1 Notes shall initially be registered in the name of Cede & Co., its nominee. 
 (c) The
Foreign Depositories for the Series 2010-1 Notes shall be Clearstream Banking, Société Anonyme and Euroclear Bank S.A./N.V., as the operator of the Euroclear System. 
 (d) The Series 2010-1 Notes shall be issued in minimum denominations of $100,000 and integral multiples of $1,000. 
 Section 2.03 Delivery and Payment. 
 (a) The Issuer shall execute and deliver the Series 2010-1 Notes to the Indenture Trustee for authentication, and the Indenture Trustee shall deliver the Series 2010-1 Notes when authenticated, each in
accordance with Section 3.03 of the Indenture. 
 ARTICLE III 
 Allocations, Deposits and Payments 
 Section 3.01 Series
2010-1 Available Interest Amounts. 
 (a) Allocation of Series 2010-1 Available Interest Amounts. On each Transfer
Date, the Indenture Trustee, at the written direction of the Servicer, shall apply Series 2010-1 Available Interest Amounts as follows: 
  

	 	(i)	first, on a pro rata basis (a) the Servicer, the Series 2010-1 Servicing Fee due on such Transfer Date (to the extent it has not been waived by the Servicer for
such Transfer Date, and if the Servicer shall waive any Series 2010-1 Servicing Fee, the Servicer shall give notice of such waiver to each of the Note Rating Agencies) and (b) the Backup Servicer, the Series 2010-1 Backup Servicing Fee due on
such Transfer Date; 

  

	 	(ii)	 second, any remaining Series 2010-1 Available Interest Amounts shall be deposited into the Series 2010-1 Interest Funding Account in an amount equal to
the product of (A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, (B) the Class A Interest Rate applicable to the related Interest Period, and
(C) the Class A Outstanding Principal Amount, determined as of the Payment Date preceding the related Payment Date (or

  

 18 

	 	 
with respect to the first Payment Date, as of the Issuance Date) (the “Class A Monthly Interest”), plus an amount equal to the excess, if any, of the aggregate amount accrued
pursuant to this Section 3.01(a)(ii) as of prior Interest Periods over the aggregate amount of interest paid to the Class A Noteholders pursuant to this Section 3.01(a)(ii) in respect of such prior Interest Periods,
together with interest at the Class A Interest Rate on such delinquent amount, to the extent permitted by applicable law; 

  

	 	(iii)	third, any remaining Series 2010-1 Available Interest Amounts shall be deposited into the Series 2010-1 Interest Funding Account in an amount equal to the product of
(A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, (B) the Class B Interest Rate applicable to the related Interest Period, and (C) the Class B
Outstanding Principal Amount, determined as of the Payment Date preceding the related Payment Date (or with respect to the first Payment Date, as of the Issuance Date) (the “Class B Monthly Interest”), plus an amount equal to the
excess, if any, of the aggregate amount accrued pursuant to this Section 3.01(a)(iii) as of prior Interest Periods over the aggregate amount of interest paid to the Class B Noteholders pursuant to this Section 3.01(a)(iii) in
respect of such prior Interest Periods, together with interest at the Class B Interest Rate on such delinquent amount, to the extent permitted by applicable law; 

  

	 	(iv)	fourth, any remaining Series 2010-1 Available Interest Amounts shall be deposited into the Series 2010-1 Interest Funding Account in an amount equal to the product of
(A) a fraction, the numerator of which is the actual number of days in the related Interest Period and the denominator of which is 360, (B) the Class C Interest Rate applicable to the related Interest Period, and (C) the Class C
Outstanding Principal Amount, determined as of the Payment Date preceding the related Payment Date (or with respect to the first Payment Date, as of the Issuance Date) (the “Class C Monthly Interest”), plus an amount equal to the
excess, if any, of the aggregate amount accrued pursuant to this Section 3.01(a)(iv) as of prior Interest Periods over the aggregate amount of interest paid to the Class C Noteholders pursuant to this Section 3.01(a)(iv) in
respect of such prior Interest Periods, together with interest at the Class C Interest Rate on such delinquent amount, to the extent permitted by applicable law; 

  

	 	(v)	fifth, any remaining Series 2010-1 Available Interest Amounts shall be deposited into the Series 2010-1 Spread Account to the extent of any Spread Account Deposit
Amount; 

  

	 	(vi)	sixth, any remaining Series 2010-1 Available Interest Amounts shall be treated as Series 2010-1 Available Principal Amounts to the extent of the amount of Series 2010-1
Noteholder Allocated Dealer Note Losses for the related Due Period; 

  

 19 

	 	(vii)	seventh, any remaining Series 2010-1 Available Interest Amounts shall be treated as Series 2010-1 Available Principal Amounts for the reinstatement of the Series 2010-1
Collateral Amount to the extent of the Series 2010-1 Unreimbursed Amount (the amount being reinstated is referred to as the “Reinstatement Amount”), and then, to the extent that the Series 2010-1 Overcollateralization Amount is less
than the Series 2010-1 Target Overcollateralization Amount as a result of an Excess Cash Collateral Event, an amount up to such shortfall shall be treated as Series 2010-1 Available Principal Amounts, and the Series 2010-1 Overcollateralization
Amount shall be increased by the same amount; 

  

	 	(viii)	eighth, any remaining Series 2010-1 Available Interest Amounts will be deposited into the Series 2010-1 Negative Carry Account to the extent of the Required Negative
Carry Account Balance; 

  

	 	(ix)	ninth, any remaining Series 2010-1 Available Interest Amounts shall be paid to the Servicer to the extent any Series 2010-1 Servicing Fee which had been previously
waived unless that amount has been waived again; 

  

	 	(x)	tenth, to the Backup Servicer, the Series 2010-1 Backup Servicing Expenses due on such Transfer Date; 

  

	 	(xi)	eleventh, if the Series 2010-1 Notes are in an Early Redemption Period, any remaining Series 2010-1 Available Interest Amounts shall be treated as Series 2010-1
Available Principal Amounts to the extent of the Series 2010-1 Nominal Liquidation Amount (after taking into account any reductions due to Series 2010-1 Noteholder Allocated Dealer Note Losses or otherwise or reinstatements due to recoveries) for
payment to the Series 2010-1 Noteholders; and 

  

	 	(xii)	twelfth, any remaining Series 2010-1 Available Interest Amounts shall be treated as Excess Available Interest Amounts and allocated pursuant to Section 5.03
of the Indenture. 

 (b) Excess Available Interest Amounts; Excess Finance Charge Collections. On each
Transfer Date, commencing with the initial Transfer Date, if Series 2010-1 Available Interest Amounts are insufficient to make the allocations provided in Sections 3.01(a)(i) through (viii) above, the Servicer shall allocate
Excess Available Interest Amounts, if any, allocated to Series 2010-1 pursuant to Section 5.03 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 shall allocate Excess Finance Charge Collections, if any, allocated to Series 2010-1 pursuant to Section 5.03 of the Indenture to cover such remaining Series
Available Interest Amounts Shortfall. 
 (c) Spread Account Draws. 
  

	 	(i)	 At the written direction of the Servicer and to the extent that Series 2010-1 Available Interest Amounts (without giving effect to clause
(vi) of the

  

 20 

	 	 
definition thereof) are insufficient to pay in full the amounts set forth in Sections 3.01(a)(ii), (iii) and (iv), the Indenture Trustee shall withdraw funds from the
Series 2010-1 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 2010-1 Spread Account (after giving effect to any withdrawals from the Series 2010-1 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 2010-1 Available Interest Amounts.”

  

	 	(ii)	At the written direction of the Servicer and to the extent that Series 2010-1 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)(vi) and Series 2010-1 is in the Early Redemption Period, the Indenture Trustee shall withdraw funds from the Series 2010-1 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 2010-1 Spread Account (after giving effect to any withdrawals from the Series 2010-1 Spread Account on such Transfer Date) and treat
such funds as “Series 2010-1 Available Interest Amounts.” 

  

	 	(iii)	In addition, after applying funds on deposit in the Spread Account pursuant to Sections 3.01(c)(i) and (ii), on the Legal Final Maturity Date, if the
Outstanding Principal Amount of any Series 2010-1 Notes remains greater than zero, the Indenture Trustee shall, at the written direction of the Servicer, apply funds from the Spread Account to repay the Outstanding Principal Amount of such Series
2010-1 Notes in full, first, to the Class A Noteholders (up to a maximum of the Class A Outstanding Principal Amount on such Payment Date), second, to the Class B Noteholders (up to a maximum of the Class B Outstanding
Principal Amount on such Payment Date), and third, to the Class C Noteholders (up to a maximum of the Class C Outstanding Principal Amount on such Payment Date). 

 Section 3.02 Series 2010-1 Available Principal Amounts. 
 (a) Allocation of Series 2010-1 Available Principal Amounts. On each Transfer Date, the Indenture Trustee, at the written direction
of the Servicer, shall apply Series 2010-1 Available Principal Amounts as follows: 
  

	 	(i)	 first, if the Series 2010-1 Available Interest Amounts are insufficient to make the payments on the Series 2010-1 Notes on each Payment Date pursuant
to Sections 3.01(a)(ii), (iii) and (iv), to the Series 2010-1 Interest Funding Account, an amount equal to the lesser of (i) the amount of that shortfall and (ii) the Series 2010-1 Collateral Amount (after taking
into account any reinstatements pursuant to Section 3.03(d) and reductions due to Section 3.03(a)(ii)); provided, however, the Series 2010-1 Available Principal Amounts shall not be applied to pay Class B
Monthly Interest or

  

 21 

	 	 
Class C Monthly Interest if, as a result of such application, the Class A Nominal Liquidation Amount would be reduced, and the Series 2010-1 Available Principal Amounts shall not be applied
to pay Class C Monthly Interest if, as a result of such application, the Class B Nominal Liquidation Amount would be reduced; 

  

	 	(ii)	second, if the Series 2010-1 Notes are in an Accumulation Period, to the Series 2010-1 Principal Funding Account, the Series 2010-1 Controlled Deposit Amount to the
extent of the Series 2010-1 Nominal Liquidation Amount (computed before giving effect to such deposit but after giving effect to any reinstatements pursuant to Sections 3.03(d)(i), (ii) and (iii) and reductions
pursuant to Sections 3.03(a)(i) and (ii)); 

  

	 	(iii)	third, if the Series 2010-1 Notes are in an Early Redemption Period, to the Series 2010-1 Principal Funding Account any remaining Series 2010-1 Available Principal
Amounts to the extent of the Series 2010-1 Nominal Liquidation Amount (computed before giving effect to such deposit but after giving effect to any reinstatements pursuant to Sections 3.03(d)(i), (ii) and (iii) and
reductions pursuant to Sections 3.03(a)(i) and (ii) for payment to the Series 2010-1 Noteholders; 

  

	 	(iv)	fourth, if the Series 2010-1 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 2010-1 Spread Account on such Transfer Date, reductions to the Series 2010-1 Nominal Liquidation Amount in accordance with Sections 3.03(a)(i) and (ii) and reinstatements
pursuant to Sections 3.03(d)(i), (ii) and (iii)), to the Series 2010-1 Spread Account an amount equal to such Spread Account Deposit Amount (not taking into account any increase in the Spread Account Required Amount as
described in the proviso to the definition thereof); 

  

	 	(v)	fifth, if the Series 2010-1 Notes are in a Revolving Period, at the Servicer’s discretion and subject to the requirement that after giving effect to clause
(vi) below the balance in the Series 2010-1 Negative Carry Account is at least equal to the Required Negative Carry Account Balance, to the Series 2010-1 Principal Funding Account any amounts that would be required to be on deposit in the
Excess Funding Account up to the amount that would reduce the Series 2010-1 Nominal Liquidation Amount to zero; provided, however, the Servicer shall not be permitted to make any such deposit into the Series 2010-1 Principal Funding
Account if, after giving effect to the deposits pursuant to this Section 3.02(a), the Series 2010-1 Overcollateralization Amount would be less than the Series 2010-1 Target Overcollateralization Amount; 

  

	 	(vi)	 sixth, if the Series 2010-1 Notes are not in an Accumulation Period or an Early Redemption Period, if the amount on deposit in the Series 2010-1

  

 22 

	 	 
Negative Carry Account is less than the Required Negative Carry Account Balance, to the Series 2010-1 Negative Carry Account to the extent of the Required Negative Carry Account Balance; and

  

	 	(vii)	seventh, any remaining Series 2010-1 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. On each Transfer Date, commencing after the Issuance Date, if Series 2010-1 Available Principal Amounts are insufficient to make the allocations provided in Sections 3.02(a)(i) through (iv) and
(vi) above, the Indenture Trustee shall allocate Excess Available Principal Amounts, if any, allocated to Series 2010-1 pursuant to Section 5.02 of the Indenture to cover the Series Available Principal Amounts Shortfall. 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 2010-1 pursuant to
Section 5.02 of the Indenture to cover such remaining Series Available Principal Amounts Shortfall. 
 Section 3.03
Reductions and Reinstatements. The Series 2010-1 Collateral Amount, Series 2010-1 Overcollateralization Amount and Series 2010-1 Nominal Liquidation Amount shall be calculated on each Transfer Date and shall be reduced and reinstated as
described below. 
 (a) Reductions. The Series 2010-1 Nominal Liquidation Amount and the Series 2010-1
Overcollateralization Amount shall be reduced on any Transfer Date in the order described in Section 3.03(b) below by the following amounts allocated on that Transfer Date: 
  

	 	(i)	the amount, if any, of the Series 2010-1 Available Principal Amounts used to pay interest on the Series 2010-1 Notes as described in Section 3.02(a)(i);

  

	 	(ii)	the amount of Series 2010-1 Noteholder Allocated Dealer Note Losses for such Due Period to the extent that they are not covered by Series 2010-1 Available Interest
Amounts as described in Section 3.01(a)(vi); 

  

	 	(iii)	the amount, if any, deposited into the Series 2010-1 Spread Account in accordance with Section 3.02(a)(iv); and 

  

	 	(iv)	the amount, if any, of the Series 2010-1 Available Principal Amount deposited into the Series 2010-1 Negative Carry Account pursuant to Section 3.02(a)(vi).

 (b) Allocation of Reductions. On each Transfer Date, the amount of any reduction in the Series 2010-1
Collateral Amount due to Sections 3.03(a)(i), (ii), (iii) or (iv) above shall be allocated as follows: 
  

	 	(i)	 first, the Series 2010-1 Overcollateralization Amount (computed without giving effect to any reductions due to Sections 3.03(a)(i) through
(iv) on

  

 23 

	 	 
such date) shall be reduced by the amount of such reduction until the Series 2010-1 Overcollateralization Amount is reduced to zero; 

  

	 	(ii)	second, the Class C Nominal Liquidation Amount (computed without giving effect to any reductions due to Sections 3.03(a)(i) through (iv) on such
date) shall be reduced by any remaining amount until the Class C Nominal Liquidation Amount is reduced to zero; 

  

	 	(iii)	third, the Class B Nominal Liquidation Amount (computed without giving effect to any reductions due to Sections 3.03(a)(i) through (iv) on such date)
shall be reduced by any remaining amount until the Class B Nominal Liquidation Amount is reduced to zero; provided, however, that the Class B Nominal Liquidation Amount shall not be reduced by using the Series 2010-1 Available
Principal Amounts to pay Class C Monthly Interest; and 

  

	 	(iv)	fourth, the Class A Nominal Liquidation Amount (computed without giving effect to any reductions due to Sections 3.03(a)(i) through (iv) on such
date) shall be reduced by any remaining amount until the Class A Nominal Liquidation Amount is reduced to zero; provided, however, that the Class A Nominal Liquidation Amount shall not be reduced by using the Series 2010-1
Available Principal Amounts to pay Class B Monthly Interest or Class C Monthly Interest. 

 In addition, the
Series 2010-1 Nominal Liquidation Amount will be reduced in the reverse order specified above by the amount of any funds (other than investment earnings) deposited into the Series 2010-1 Available Principal Funding Account since the prior date on
which the Series 2010-1 Collateral Amount was calculated. 
 (c) Reinstatements. The Series 2010-1 Nominal Liquidation
Amount and the Series 2010-1 Overcollateralization Amount shall be reinstated on any Transfer Date by the amount of the Series 2010-1 Available Interest Amounts that are applied to cover the Reinstatement Amount for that Transfer Date pursuant to
Section 3.01(a)(vii) and by the amount of funds released from the Series 2010-1 Negative Carry Account that are applied to cover any Series 2010-1 Unreimbursed Amount for that Transfer Date pursuant to Section 3.12(b).

 (d) Allocation of Reinstatements. The Reinstatement Amount for any Transfer Date specified in
Section 3.03(c) shall be applied as follows: 
  

	 	(i)	first, if the Class A Nominal Liquidation Amount has been reduced as described in Section 3.03(b) above and is not fully reinstated, to the
Class A Nominal Liquidation Amount until the Class A Nominal Liquidation Amount equals the excess of (A) the Class A Outstanding Principal Amount, over (B) the amount on deposit (other than investment earnings) in the Series
2010-1 Principal Funding Account on that Transfer Date allocable to the Class A Notes; 

  

	 	(ii)	 second, if the Class B Nominal Liquidation Amount has been reduced as described in Section 3.03(b) above and is not fully reinstated, to
the Class

  

 24 

	 	 
B Nominal Liquidation Amount until the Class B Nominal Liquidation Amount equals the excess of (A) the Class B Outstanding Principal Amount, over (B) the amount on deposit (other than
investment earnings) in the Series 2010-1 Principal Funding Account on that Transfer Date allocable to the Class B Notes; 

  

	 	(iii)	third, if the Class C Nominal Liquidation Amount has been reduced as described in Section 3.03(b) above and is not fully reinstated, to the Class C Nominal
Liquidation Amount until the Class C Nominal Liquidation Amount equals the excess of (A) the Class C Outstanding Principal Amount, over (B) the amount on deposit (other than investment earnings) in the Series 2010-1 Principal Funding
Account on that Transfer Date allocable to the Class C Notes; and 

  

	 	(iv)	fourth, to the Series 2010-1 Overcollateralization Amount until the Series 2010-1 Overcollateralization Amount equals the Series 2010-1 Target Overcollateralization
Amount. 

 In addition, the Series 2010-1 Nominal Liquidation Amount will be increased in the reverse order in
which it was reduced by deposits into the Series 2010-1 Principal Funding Account by the amount of funds withdrawn from the Series 2010-1 Principal Funding Account and deemed to be Excess Available Principal Amounts since the prior date in which the
Series 2010-1 Collateral Amount was calculated. 
 Section 3.04 Payment on the Series 2010-1 Notes. On each Transfer
Date, the Indenture Trustee, acting in accordance with written instructions from the Servicer, shall transfer to the Series 2010-1 Principal Funding Account and Series 2010-1 Interest Funding Account funds on deposit in the Deposit Account. On each
Payment Date, 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 2010-1 Principal Funding Account and the Series 2010-1 Interest Funding Account: 
 (a) Interest Distributions. On
each Payment Date (including the Expected Principal Payment Date), amounts on deposit in the Series 2010-1 Interest Funding Account shall be distributed in the following manner, first, to the Class A Noteholders, accrued and unpaid
interest on the Class A Notes for that Payment Date, second, to the Class B Noteholders, accrued and unpaid interest on the Class B Notes for that Payment Date, and third, to the Class C Noteholders, accrued and unpaid interest on
the Class C Notes for that Payment Date. If there is a shortfall in the amounts required to be distributed pursuant to the preceding clauses first, second or third, then the amounts actually distributed pursuant to any such
clause shall be shared among the Persons entitled thereto in proportion to the amounts owing such Persons. 
 (b) Expected
Principal Payment Date. On the Expected Principal Payment Date, amounts on deposit in the Series 2010-1 Principal Funding Account shall be distributed as principal first, to the Class A Noteholders (up to a maximum of the
Class A Outstanding Principal Amount on such Payment Date), second, to the Class B Noteholders (up to a maximum of the Class B Outstanding Principal Amount on such Payment Date), and third, to the Class C

  

 25 

 
Noteholders (up to a maximum of the Class C Outstanding Principal Amount on such Payment Date). If there is a shortfall in the amounts required to be distributed pursuant to the preceding
clauses first, second or third, then the amounts actually distributed pursuant to any such clause shall be shared among the Persons entitled thereto in proportion to the amounts owing such Persons. 
 (c) Early Redemption Period. On each Payment Date during an Early Redemption Period, amounts on deposit in the Series 2010-1
Principal Funding Account shall be distributed as principal first, to the Class A Noteholders (up to a maximum of the Class A Outstanding Principal Amount on such Payment Date), second, to the Class B Noteholders (up to a
maximum of the Class B Outstanding Principal Amount on such Payment Date), and third, to the Class C Noteholders (up to a maximum of the Class C Outstanding Principal Amount on such Payment Date). If there is a shortfall in the amounts
required to be distributed pursuant to the preceding clauses first, second or third, then the amounts actually distributed pursuant to any such clause shall be shared among the Persons entitled thereto in proportion to the
amounts owing such Persons. 
 (d) Any installment of interest or principal, if any, payable on any Series 2010-1 Note which is
punctually paid or duly provided for by the Issuer and the Indenture Trustee on the applicable Payment Date shall be paid by the Paying Agent to the Person in whose name such Series 2010-1 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, except that with respect to
Notes registered on the Note Record Date in the name of the nominee of Cede & Co., payment shall be made by wire transfer in immediately available funds to the account designated by such nominee. 
 (e) The right of the Series 2010-1 Noteholders to receive payments from the Issuer shall terminate on the first Business Day following the
Series 2010-1 Termination Date. 
 Section 3.05 Accumulation Period Length and Accumulation Period Commencement Date. On
or prior to the Payment Date which is ten months prior to the Payment Date which is the Expected Principal Payment Date, the Servicer shall determine in its sole discretion the Accumulation Period Length and the Accumulation Period Commencement Date
and, promptly following such determination, the Servicer shall notify the Master Owner Trust Trustee, the Indenture Trustee and the Note Rating Agencies in writing of such determination. 
 Section 3.06 Final Payment of the Series 2010-1 Notes 
 (a) Series 2010-1 Noteholders shall be entitled to payment of principal in an amount equal to the Series 2010-1 Outstanding Principal Amount. However, Series 2010-1 Available Principal Amounts shall be
available to pay principal on the Series 2010-1 Notes only up to the Series 2010-1 Nominal Liquidation Amount (for the purposes of this provision, without giving effect to reductions pursuant to clause (i) of the definitions of Class A
Nominal

  

 26 

 
Liquidation Amount, Class B Nominal Liquidation Amount and Class C Nominal Liquidation Amount). 
 (b) The Series 2010-1 Notes shall be considered to be paid in full, the holders of the Series 2010-1 Notes shall have no further right or claim, and the Issuer shall have no further obligation or
liability for principal or interest, on the earlier to occur of: 
  

	 	(i)	the date on which the Series 2010-1 Outstanding Principal Amount is reduced to zero and all accrued interest on the Series 2010-1 Notes is paid in full; or

  

	 	(ii)	the Legal Final Maturity Date of the Series 2010-1 Notes, after giving effect to all deposits, allocations, reallocations, sales of Dealer Notes and payments to be made
on that date. 

 (c) In no event shall the Issuer repay, redeem, repurchase or otherwise acquire the Class B Notes
unless and until the Class A Notes have been paid in full. In no event shall the Issuer repay, redeem, repurchase or otherwise acquire the Class C Notes unless and until the Class A Notes and the Class B Notes have been paid in full.

 Section 3.07 Netting of Deposits and Payments. The Issuer, in its sole discretion, may make all deposits to the Series
2010-1 Interest Funding Account and the Series 2010-1 Principal Funding Account with respect to any Payment Date net of, and after giving effect to, all reallocations to be made pursuant to Article III. 
 Section 3.08 Calculation Agent; Determination of LIBOR. 
 (a) The Issuer hereby agrees that for so long as any Series 2010-1 Notes are Outstanding, there shall at all times be an agent appointed to
calculate LIBOR for each Interest Period (the “Calculation Agent”). The Issuer hereby initially appoints the Indenture Trustee as the Calculation Agent for purposes of determining LIBOR for each Interest Period. The Calculation
Agent may be removed by the Issuer at any time. If the Calculation Agent is unable or unwilling to act as such or is removed by the Issuer, or if the Calculation Agent fails to determine LIBOR for an Interest Period, the Issuer shall promptly
appoint a replacement Calculation Agent that does not control or is not controlled by or under common control with the Issuer or its Affiliates. The Calculation Agent may not resign its duties, and the Issuer may not remove the Calculation Agent,
without a successor having been duly appointed. 
 (b) The Class A Interest Rate, Class B Interest Rate and the Class C
Interest Rate, applicable to the then current and the immediately preceding Interest Periods, may be obtained by contacting the Indenture Trustee at its Master Owner Trust Corporate Trust Office at https://gctinvestorreporting.bnymellon.com/Home.jsp
or (212) 815-2484 or such other telephone number as shall be designated by the Indenture Trustee for such purpose by prior written notice by the Indenture Trustee to each Noteholder from time to time. 
 (c) With respect to (i) the Class A Notes, on the second Business Day preceding the 15th day of each month (or, if such day is not
a Business Day, the next following Business Day), or, in the case of the initial Interest Period, on the Business Day preceding the

  

 27 

 
applicable Loan Subscription Date under TALF, the Calculation Agent shall send to the Indenture Trustee and the Master Owner Trust Beneficiary, by facsimile transmission, notification of LIBOR
for the following Interest Period, the Class A Interest Rate and the Class A Monthly Interest and (ii) the Class B Notes and the Class C Notes, on the second Business Day preceding the first day of each Interest Period (or, in the
case of the initial Interest Period, on the Business Day preceding the applicable Loan Subscription Date under TALF), the Calculation Agent shall send to the Indenture Trustee and the Master Owner Trust Beneficiary, by facsimile transmission,
notification of LIBOR for the following Interest Period, the Class B Interest Rate, the Class C Interest Rate, the Class B Monthly Interest and the Class C Monthly Interest. 
 Section 3.09 Computation of Interest. Unless otherwise specified in this Indenture Supplement, 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. On or before the Issuance Date, the
Indenture Trustee shall cause to be established and maintained four Eligible Accounts denominated as follows: the “Series 2010-1 Interest Funding Account,” the “Series 2010-1 Principal Funding Account,” the
“Series 2010-1 Negative Carry Account” and the “Series 2010-1 Spread Account” (collectively, the “Series 2010-1 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 2010-1 Noteholders. If on any day during the Revolving Period the amounts on deposit in the Series 2010-1 Principal Funding Account exceed the amount required to
maintain the Seller’s Invested Amount at the Minimum Seller’s Invested Amount, the Issuer may withdraw such excess from the Series 2010-1 Principal Funding Account and treat such amount as “Excess Available Principal Amounts;”
provided, however, that such excess shall only be released if after giving effect to all distributions and deposits on such day the amount on deposit in the Series 2010-1 Spread Account on such day equals or exceeds the Spread Account
Required Amount as of such day. The Indenture Trustee shall possess all right, title and interest to all funds on deposit from time to time in each of the Series 2010-1 Accounts and in all proceeds therefrom, for the benefit of the Secured Parties.
For the avoidance of doubt, it shall be a condition precedent to the withdrawal from the Series 2010-1 Principal Funding Account and the treatment of those funds as Excess Available Principal Amounts that, and no funds shall be withdrawn from the
Series 2010-1 Principal Funding Account unless, on a pro forma basis after giving effect to such withdrawal and application and all other deposits, withdrawals and applications to made on such date, the Seller’s Invested Amount shall not be
less than the Minimum Seller’s Invested Amount, the funds on deposit in the Series 2010-1 Spread Account shall not be less than the Spread Account Required Amount, the funds on deposit in the Series 2010-1 Negative Carry Account shall not be
less than the Required Negative Carry Account Balance, and all other enhancement will not be less than the required amount and there is no writedown of the Series 2010-1 Overcollateralization Amount, the Series 2010-1 Collateral Amount or the
Outstanding Principal Amount of any Series 2010-1 Notes, in each case, after giving effect to such deposits, withdrawals and applications. The Series 2010-1 Accounts constitute Supplemental Accounts and shall be under the sole dominion and control
of the Indenture Trustee for the benefit of the Series 2010-1 Noteholders. If, at any time, the

  

 28 

 
institution holding any Series 2010-1 Account ceases to be an Eligible Institution, the Issuer shall within 15 Business Days (or such longer period, not to exceed 30 calendar days, as to which
each Note Rating Agency may consent) establish a new applicable Series 2010-1 Account, that is an Eligible Account and shall transfer any cash and/or investments to such new Series 2010-1 Account. From the date such new Series 2010-1 Account is
established, it shall be a Series 2010-1 Account, bearing the name of the Series 2010-1 Account it has replaced. 
 (b) All
payments to be made from time to time by the Indenture Trustee to Series 2010-1 Noteholders out of funds in the Series 2010-1 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 Payment Date but only to the extent of funds in the applicable Series 2010-1 Account or as otherwise provided in Article III. 
 Section 3.11 Spread Account. 
 (a) On the Closing Date, the Seller shall
deposit into the Series 2010-1 Spread Account an amount equal to the Spread Account Initial Deposit. 
 (b) Funds on deposit in
the Series 2010-1 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 2010-1 Spread Account, if any, shall
constitute Series 2010-1 Available Interest Amounts. 
 (c) On any Transfer Date on which the amount of funds on deposit in the
Series 2010-1 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 2010-1 Spread Account and allocate and pay such excess to the holders of the
Seller’s Certificates. 
 (d) Upon payment in full of the Outstanding Principal Amount of the Series 2010-1 Notes, any
funds remaining on deposit in the Series 2010-1 Spread Account shall be distributed to the holders of the Seller’s Certificates. 
 (e) If the Spread Account Required Amount increases as described in the proviso to the definition thereof, to the extent that Series 2010-1 Available Interest Amounts are insufficient to make the deposit described in
Section 3.01(a)(v), the Seller may, in its sole discretion, deposit the amount of such shortfall into the Spread Account. 
 Section 3.12 Negative Carry Account. 
 (a) During the Revolving Period, if funds are deposited into the Series
2010-1 Principal Funding Account from the Excess Funding Account, then concurrent with such deposit, funds will be deposited into the Series 2010-1 Negative Carry Account to bring the balance in the Series 2010-1 Negative Carry Account up to the
Required Negative Carry Account Balance. 
  

 29 

 (b) If on any Transfer Date, the amount on deposit in the Series 2010-1 Negative Carry
Account exceeds the Required Negative Carry Account Balance on such Transfer Date, the Servicer shall withdraw such excess from the Series 2010-1 Negative Carry Account and pay such excess to the holders of the Seller’s Certificates;
provided, however, that if funds are released from the Series 2010-1 Principal Funding Account and concurrently with such release funds are required to be deposited into the Series 2010-1 Spread Account to maintain the Spread Account
Required Amount, such funds in an amount up to the Spread Account Deposit Amount shall be withdrawn from the Series 2010-1 Negative Carry Account and deposited into the Series 2010-1 Spread Account; provided, further, that in the event
Series 2010-1 Available Principal Amounts have been used to make deposits into the Series 2010-1 Negative Carry Account and there remains any Series 2010-1 Unreimbursed Amount, such funds in an amount up to the amount of Series 2010-1 Available
Principal Amounts so used and not previously reimbursed shall be treated as Series 2010-1 Available Principal Amounts for the reinstatement of the Series 2010-1 Collateral Amount. 
 (c) Funds on deposit in the Series 2010-1 Negative Carry 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 2010-1 Negative Carry Account, if any, shall constitute Series 2010-1 Available Interest Amounts. 
 (d) Upon payment in full of the Outstanding Principal Amount of the Series 2010-1 Notes, any funds remaining on deposit in the Series 2010-1
Negative Carry Account shall be distributed to the holders of the Seller’s Certificates. 
 Section 3.13 Reports and
Statements to Series 2010-1 Noteholders. 
 (a) On each Payment Date, the Indenture Trustee shall forward to each Series
2010-1 Noteholder a statement substantially in the form of Exhibit B (the “Servicer Certificate”) prepared by the Servicer. 
 (b) Not later than the Transfer Date, the Servicer shall deliver to the Master Owner Trust Trustee, each Note Rating Agency and the Indenture Trustee the Servicer Certificate. 
 (c) On or before January 31 of each calendar year, beginning with January 31, 2011, 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 2010-1 Noteholder, a statement prepared by the Servicer containing the information which is required to be contained in the statement to Series 2010-1
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 2010-1 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. 
  

 30 

 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 WILL 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. 
 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 Master Owner Trust Trustee. In no event shall Deutsche Bank Trust Company Delaware in its individual capacity or, except as expressly provided in the Master Owner Trust Agreement, as Master Owner
Trust Trustee have any liability for the representations, warranties, covenants, agreement or other obligations of Navistar Financial Dealer Note Master Owner Trust 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 Navistar Financial Dealer Note Master Owner Trust. 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 Navistar Financial Dealer Note Master Owner Trust hereunder, the Master Owner Trust Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of the Master Owner Trust Agreement. 
 Section 4.05 Notice to FRBNY. To the extent required by the Certification as to TALF Eligibility for Non-Mortgage-Backed ABS executed
by NFC in connection with the FRBNY’s TALF and the Series 2010-1 Notes, (i) the Servicer will promptly notify the FRBNY and all registered holders of the Series 2010-1 Notes, in writing, of the occurrence of any Early Redemption Event
(such notice to the FRBNY shall be delivered to the FRBNY’s custodian at talf@bnymellon.com and to the FRBNY at talfreports@ny.frb.org at the same time notice of the Early Redemption Event is given to the FRBNY’s custodian) and
(ii) the Servicer shall include the material details of any Early Redemption Event in each statement delivered pursuant to Section 3.13(a). 
 Section 4.06 No Registration of the Series 2010-1 Notes under the Securities Act. 
 (a) The Series 2010-1 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

  

 31 

 
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 2010-1 Note will be deemed to represent and agree that: 
  

	 	(i)	(x) the purchaser (i) is a “qualified institutional buyer” as defined in Rule 144A under the Securities Act (a “Qualified Institutional
Buyer”), (ii) is aware that the sale to it is being made in reliance on the exemption from registration provided by Rule 144A under the Securities Act and if it is acquiring any such Series 2010-1 Notes or any interest or participation
therein for the account of any other Qualified Institutional Buyer, that other Qualified Institutional Buyer is aware that the sale is being made in reliance on Rule 144A, and (iii) is acquiring the Series 2010-1 Notes or any interest or
participation therein for its own account or for one or more accounts, each of which is a Qualified Institutional Buyer, and as to each of which the purchaser exercises sole investment discretion, and in a principal amount of not less than the
minimum denomination of such Series 2010-1 Note for the purchaser and for each such account; 

  

	 	(ii)	 the purchaser and any transferee understand that the Series 2010-1 Notes are being offered only in a transaction not involving any public offering in
the United States within the meaning of the Securities Act, the Series 2010-1 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 2010-1 Notes, such Series 2010-1 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 2010-1 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 2010-1 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 2010-1 Notes under any United States federal or state securities laws or any securities laws of any other jurisdiction on any future date), or (c) if the Series 2010-1
Notes are not eligible for resale pursuant to Rule 144A, 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 Issuer or any initial purchasers, as the case may be, as to the

  

 32 

	 	 
availability of any exemption under the Securities Act or any applicable state securities laws for resale of the Series 2010-1 Notes; 

  

	 	(iii)	unless the relevant legend set out below has been removed from the relevant Series 2010-1 Notes, the purchaser shall notify each transferee of the Series 2010-1 Notes
that (a) such Series 2010-1 Notes have not been registered under the Securities Act, (b) the holder of such Series 2010-1 Notes is subject to the restrictions on the resale or other transfer thereof described in paragraph (ii) above,
(c) such transferee shall be deemed to have represented (1) either (A) if the Series 2010-1 Notes are eligible for resale pursuant to Rule 144A, such transferee is a Qualified Institutional Buyer acquiring the Series 2010-1 Notes for
its own account or as a fiduciary for others (which are Qualified Institutional Buyers), or (B) if the Series 2010-1 Notes are not eligible for resale pursuant to Rule 144A, that such transferee is acquiring such Series 2010-1 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; 

  

	 	(iv)	the purchaser and any transferee understand that an investment in the Series 2010-1 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 Issuer and the Series 2010-1 Notes as it deemed necessary or appropriate in order to make an informed investment decision
with respect to its purchase of the Series 2010-1 Notes, including an opportunity to ask questions of and request information from the Servicer and the Issuer. The purchaser and any transferee have 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 2010-1 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; 

  

	 	(v)	 in connection with the purchase of the Series 2010-1 Notes (a) none of the Issuer, any initial purchasers, the Servicer, NFC, the Seller 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 Issuer, any initial purchasers, the Servicer, NFC, the Seller or the Indenture Trustee other than in a current confidential offering memorandum supplement or the confidential offering
memorandum for such Series 2010-1 Notes and any representations expressly set forth in a written agreement with such party; (c) none of the Issuer, any initial purchasers, the Servicer, NFC, the Seller 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

  

 33 

	 	 
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 2010-1 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 Issuer, any initial purchasers, the Servicer, NFC, the Seller 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 2010-1 Notes reflect those in the relevant market for similar transactions, (f) the purchaser or any transferee is purchasing the Series 2010-1 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
2010-1 Notes; 

  

	 	(vi)	the purchaser and each transferee acknowledge that each Series 2010-1 Note will bear a legend to the following effect unless determined otherwise by the Issuer:

 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 PRINCIPAL AMOUNT OF
NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, 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) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE PURSUANT TO RULE 144A,

  

 34 

 
PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF,
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 ISSUER, 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 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”), (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. 
  

 35 

	 	(vii)	each of the purchaser and any transferee either (x) is not an employee benefit plan (as defined in Section 3(3) of ERISA) subject to the provisions of Title I
of ERISA, a plan as covered by Section 4975 of the Code, an entity whose underlying assets include “plan assets” by reason of an employee benefit plan’s or plan’s investment 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 2010-1 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 law; 

  

	 	(viii)	the purchaser and any transferee are not purchasing the Series 2010-1 Notes with a view to the resale, distribution or other disposition thereof in violation of the
Securities Act; 

  

	 	(ix)	the purchaser and any transferee will provide notice to each person to whom it proposes to transfer any interest in the Series 2010-1 Notes of the transfer restrictions
and representations set forth in the Indenture and this Indenture Supplement, including the exhibits thereto; 

  

	 	(x)	the purchaser or any transferee acknowledges that the Series 2010-1 Notes do not represent deposits with or other liabilities of the Indenture Trustee, any initial
purchasers, the Servicer, NFC, the Seller or any entity related to any of them. Unless otherwise expressly provided in the Indenture or this Indenture Supplement, each of the Indenture Trustee, any initial purchasers, the Servicer, NFC, the Seller
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 2010-1 Notes or the assets held by the Master Trust or the Issuer; and 

  

	 	(xi)	the purchaser acknowledges that the Indenture Trustee, the Issuer, any initial purchasers, the Servicer, NFC, the Seller 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 2010-1 Note (or a beneficial
interest therein) is no longer accurate, then it shall promptly so notify NFC and the Seller in writing. 

 (c) In
the event that the Seller or an Affiliate of the Seller holds all or a portion of the Class B Notes or the Class C Notes, it shall be entitled to amend the transfer restrictions applicable to such retained notes without the consent of the Indenture
Trustee or any of the Series 2010-1 Noteholders, subject to the requirements of Section 10.01 of the Indenture. 
 Section
4.07 Consent to Amendments. By its purchase and acceptance of a Series 2010-1 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 which will be

  

 36 

 
applicable upon the appointment of the Backup Servicer as Successor Servicer under the Pooling and Servicing Agreement. 
  

 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

		
	By:	 	 DEUTSCHE BANK TRUST COMPANY
 DELAWARE, as Master Owner Trust
 Trustee and not in its individual capacity

		
	By:	 	 /s/ Michele HY Voon

	Name:	 	Michele HY Voon
	Title:	 	Attorney-in-fact
		
	By:	 	 /s/ Mark DiGiacomo

	Name:	 	Mark DiGiacomo
	Title:	 	Attorney-in-fact
	
	 THE BANK OF NEW YORK MELLON, as
 Indenture Trustee and not in its individual capacity

		
	By:	 	 /s/ Michael Burack

	Name:	 	Michael Burack
	Title:	 	Senior Associate

 EXHIBIT A-1 
 FORM OF SERIES 2010-1 NOTE, CLASS A 
 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 PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, 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) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, 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 ISSUER, 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

  

 Ex A-1 - 1 

 
SECTION 3(3) OF THE 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”), (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. 
 UNLESS THIS NOTE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT SHALL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER, NAVISTAR FINANCIAL SECURITIES CORPORATION, NAVISTAR FINANCIAL CORPORATION,
OR THE NAVISTAR FINANCIAL DEALER NOTE MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUER, 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-1 - 2 

			
	 A-1 REGISTERED
$                    
	  	No.      CUSIP NO.
                    

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST 
 FLOATING RATE ASSET BACKED NOTES, SERIES 2010-1 
 Navistar Financial Dealer Note Master Owner Trust, a statutory trust created under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of
                         payable no sooner than on the January 25, 2012 Payment Date (the “Expected Principal
Payment Date”), except as otherwise provided below or in the Indenture; provided, however, that the entire unpaid principal amount of this Note shall be due and payable on the January 26, 2015 Payment Date (the
“Legal Final Maturity Date”). Interest shall accrue on this Note from each Payment Date (or, in the case of the first Payment Date, from the date of issuance of this Note) to but excluding the following Payment Date. Interest shall
be computed on the basis of a 360-day year and the actual number of days elapsed. 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 Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the unpaid principal of this Note.

 Reference is made to the further provisions of this Note set forth on the reverse hereof, which shall have the same effect as
though fully set forth on the face of this Note. 
 Unless the certificate of authentication hereon has been executed by the
Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid for any purpose. 
  

 Ex A-1 - 3 

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

					
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST, as Issuer
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Master Owner Trust Trustee under the Master Owner Trust Agreement
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Date: February 12, 2010

 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: February 12, 2010

  

 Ex A-1 - 4 

 [REVERSE OF NOTE] 
 This Series 2010-1 Note, Class A is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Floating Rate
Asset Backed Notes, Series 2010-1 Class A (herein called the “Notes”), all issued under an Indenture dated as of June 10, 2004 (such Indenture, as supplemented or amended, is herein called the
“Indenture”), as supplemented by an Indenture Supplement dated as of February 12, 2010 (the “Indenture Supplement”), between the Issuer 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 Issuer, 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 Issuer, the Master Owner Trust 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 Master Owner Trust Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuer, the Master Owner
Trust Trustee or the Indenture Trustee, (iii) any partner, owner, beneficiary, agent, officer, director or employee of the Master Trust, the Master Trust Trustee, the Issuer, the Indenture Trustee or the Master Owner Trust Trustee in its
individual capacity, or (iv) any holder of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuer, the Master Owner Trust Trustee or the Indenture Trustee or of any successor or assign of the Master Trust Trustee, the
Indenture Trustee or the Master Owner Trust 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 Issuer, or join in any institution against Navistar Financial Securities Corporation, Navistar
Financial Corporation, the Master Trust or the Issuer 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 Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be

  

 Ex A-1 - 5 

 
specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Issuer, 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 Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein
prescribed. 
  

 Ex A-1 - 6 

 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-1 - 7 

 EXHIBIT A-2 
 FORM OF SERIES 2010-1 NOTE, CLASS B 
 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 PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, 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) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, 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 ISSUER, 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

  

 Ex A-2 - 1 

 
SECTION 3(3) OF THE 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”), (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. 
 UNLESS THIS NOTE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT SHALL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER, NAVISTAR FINANCIAL SECURITIES CORPORATION, NAVISTAR FINANCIAL CORPORATION,
OR THE NAVISTAR FINANCIAL DEALER NOTE MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUER, 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 - 2 

			
	 B-1 REGISTERED
$                    
	  	No.      CUSIP NO.
                    

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST 
 FLOATING RATE ASSET BACKED NOTES, SERIES 2010-1 
 Navistar Financial Dealer Note Master Owner Trust, a statutory trust created under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of                      payable
no sooner than on the January 25, 2012 Payment Date (the “Expected Principal Payment Date”), except as otherwise provided below or in the Indenture; provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on the January 26, 2015 Payment Date (the “Legal Final Maturity Date”). Interest shall accrue on this Note from each Payment Date (or, in the case of the first Payment Date, from the date of
issuance of this Note) to but excluding the following Payment Date. Interest shall be computed on the basis of a 360-day year and the actual number of days elapsed. 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 Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the
unpaid principal of this Note. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the certificate of authentication
hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid for any purpose. 
 This Series 2010-1 Note, Class B is subordinate in the right to payment to the Series 2010-1 Notes, Class A in the manner provided in
the Indenture and the Indenture Supplement. 
  

 Ex A-2 - 3 

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

					
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST, as Issuer
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Master Owner Trust Trustee under the Master Owner Trust Agreement
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Date: February 12, 2010

 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: February 12, 2010

  

 Ex A-2 - 4 

 [REVERSE OF NOTE] 
 This Series 2010-1 Note, Class B is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Floating Rate
Asset Backed Notes, Series 2010-1 Class B (herein called the “Notes”), all issued under an Indenture dated as of June 10, 2004 (such Indenture, as supplemented or amended, is herein called the “Indenture”), as
supplemented by an Indenture Supplement dated as of February 12, 2010 (the “Indenture Supplement”), between the Issuer 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 Issuer, 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 Issuer, the Master Owner Trust 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 Master Owner Trust Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuer, the Master Owner Trust Trustee or the Indenture Trustee,
(iii) any partner, owner, beneficiary, agent, officer, director or employee of the Master Trust, the Master Trust Trustee, the Issuer, the Indenture Trustee or the Master Owner Trust Trustee in its individual capacity, or (iv) any holder
of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuer, the Master Owner Trust Trustee or the Indenture Trustee or of any successor or assign of the Master Trust Trustee, the Indenture Trustee or the Master Owner Trust
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 Issuer, or join in any institution against Navistar Financial Securities Corporation, Navistar Financial Corporation, the Master Trust or the Issuer 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 Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be

  

 Ex A-2 - 5 

 
specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Issuer, 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 Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein
prescribed. 
  

 Ex A-2 - 6 

 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-2 - 7 

 EXHIBIT A-3 
 FORM OF SERIES 2010-1 NOTE, CLASS C 
 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 PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, FOR THE PURCHASER AND FOR EACH SUCH ACCOUNT, 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) IF THIS NOTE IS NOT ELIGIBLE FOR RESALE
PURSUANT TO RULE 144A, PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OTHER THAN RULE 144A IN A PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND IN INTEGRAL MULTIPLES OF $1,000 IN EXCESS THEREOF, 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 ISSUER, 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

  

 Ex A-3 - 1 

 
SECTION 3(3) OF THE 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”), (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. 
 UNLESS THIS NOTE IS PRESENTED BY
AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR TO SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 THE HOLDER OF THIS NOTE BY ITS ACCEPTANCE HEREOF COVENANTS AND AGREES THAT IT SHALL NOT AT ANY TIME INSTITUTE AGAINST THE ISSUER, NAVISTAR FINANCIAL SECURITIES CORPORATION, NAVISTAR FINANCIAL CORPORATION,
OR THE NAVISTAR FINANCIAL DEALER NOTE MASTER TRUST, OR JOIN IN ANY INSTITUTION AGAINST THE ISSUER, 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-3 - 2 

			
	C-1 REGISTERED $            	 	No.      CUSIP NO.             

 NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST 
 FLOATING RATE ASSET BACKED NOTES, SERIES 2010-1 
 Navistar Financial Dealer Note Master Owner Trust, a statutory trust created under the laws of the State of Delaware (herein referred to as the “Issuer”), for value received, hereby
promises to pay to CEDE & CO., or registered assigns, subject to the following provisions, a principal sum of                      payable
no sooner than on the January 25, 2012 Payment Date (the “Expected Principal Payment Date”), except as otherwise provided below or in the Indenture; provided, however, that the entire unpaid principal amount of
this Note shall be due and payable on the January 26, 2015 Payment Date (the “Legal Final Maturity Date”). Interest shall accrue on this Note from each Payment Date (or, in the case of the first Payment Date, from the date of
issuance of this Note) to but excluding the following Payment Date. Interest shall be computed on the basis of a 360-day year and the actual number of days elapsed. 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 Issuer with respect to this Note shall be applied first to interest due and payable on this Note as provided above and then to the
unpaid principal of this Note. 
 Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note. 
 Unless the certificate of authentication
hereon has been executed by the Indenture Trustee whose name appears below by manual signature, this Note shall not be entitled to any benefit under the Indenture referred to on the reverse hereof, or be valid for any purpose. 
 This Series 2010-1 Note, Class C is subordinate in the right to payment to the Series 2010-1 Notes, Class A and the Series 2010-1
Notes, Class B in the manner provided in the Indenture and the Indenture Supplement. 
  

 Ex A-3 - 3 

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

					
	NAVISTAR FINANCIAL DEALER NOTE MASTER OWNER TRUST, as Issuer
		
	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE, not in its individual capacity but solely as Master Owner Trust Trustee under the Master Owner Trust Agreement
			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	
	
	Date: February 12, 2010

 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: February 12, 2010

  

 Ex A-3 - 4 

 [REVERSE OF NOTE] 
 This Series 2010-1 Note, Class C is one of the Notes of a duly authorized issue of Notes of the Issuer, designated as its Floating Rate
Asset Backed Notes, Series 2010-1 Class C (herein called the “Notes”), all issued under an Indenture dated as of June 10, 2004 (such Indenture, as supplemented or amended, is herein called the “Indenture”), as
supplemented by an Indenture Supplement dated as of February 12, 2010 (the “Indenture Supplement”), between the Issuer 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 Issuer, 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 Issuer, the Master Owner Trust 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 Master Owner Trust Trustee in its individual capacity, (ii) any owner of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuer, the Master Owner Trust Trustee or the Indenture Trustee,
(iii) any partner, owner, beneficiary, agent, officer, director or employee of the Master Trust, the Master Trust Trustee, the Issuer, the Indenture Trustee or the Master Owner Trust Trustee in its individual capacity, or (iv) any holder
of a beneficial interest in the Master Trust Trustee, the Master Trust, the Issuer, the Master Owner Trust Trustee or the Indenture Trustee or of any successor or assign of the Master Trust Trustee, the Indenture Trustee or the Master Owner Trust
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 Issuer, or join in any institution against Navistar Financial Securities Corporation, Navistar Financial Corporation, the Master Trust or the Issuer 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 Issuer, the Indenture Trustee and any
agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note (as of the day of determination or as of such other date as may be

  

 Ex A-3 - 5 

 
specified in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note is overdue, and neither the Issuer, 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 Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the times, place, and rate, and in the coin or currency herein
prescribed. 
  

 Ex A-3 - 6 

 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-3 - 7 

 EXHIBIT B 
 FORM OF MONTHLY SERVICER AND SETTLEMENT CERTIFICATE 
 NAVISTAR
FINANCIAL DEALER NOTE MASTER OWNER TRUST 
 SERIES 2010-1 NOTES 
 Under the Series 2010-1 Indenture Supplement dated as of February     , 2010 (the “Indenture
Supplement”) by and among the Navistar Financial Dealer Note Master Owner Trust (the “Master Owner Trust”) and The Bank of New York Mellon, as trustee (the “Indenture Trustee”), the information which is
required to be prepared with respect to the Payment Date of                  ,     , the Transfer Date of
                 ,      and with respect to the performance of the Master Owner Trust during the Due Period ended on
                 ,      and the Distribution 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 Master Owner Trust 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 2010-1 Notes Information	  	
			
	5.1	  	Series 2010-1 Nominal Liquidation Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2010-1 Indenture Supplement and to
payments made on the Payment Date).	  	0.00
			
		  	Cumulative Reductions (Net of Reinstatements) of the Series 2010-1 Nominal Liquidation Amount, if any, as of the Transfer Date	  	0.00
			
	5.2	  	Series 2010-1 Collateral Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2010-1 Indenture Supplement and to payments
made on the Payment Date).	  	0.00
			
	5.3	  	Series 2010-1 Overcollateralization Amount as of the Transfer Date (after giving effect to the transactions set forth in Article III of the Series 2010-1 Indenture Supplement and to
payments made on the Payment Date).	  	0.00

  

 Ex B-1 - 1 

					
			
		  	Series 2010-1 Target Overcollateralization Amount, if any, as of the Transfer Date	  	0.00
			
		  	Cumulative Reductions (Net of Reinstatements) of the Series 2010-1 Overcollateralization Amount Deficiency, if any, as of the Transfer Date	  	0.00
			
	5.4	  	Series 2010-1 Allocated Dealer Note Losses / (Recoveries) for the Due Period	  	0.00
			
	5.5	  	Series 2010-1 Allocated Interest Amounts for the Due Period	  	0.00
			
	5.6	  	Series 2010-1 Allocated Principal Amounts for the Due Period	  	0.00
			
	5.7	  	Series 2010-1 Noteholders Allocated Dealer Note Losses / (Recoveries) for the Due Period	  	0.00
			
	5.8	  	Series 2010-1 Available Interest Amounts with respect to the Due Period	  	0.00
			
	5.9	  	Series 2010-1 Available Principal Amounts with respect to the Due Period	  	0.00
			
	5.10	  	Shortfall in Series Available Principal Amounts, if any, for the Due Period	  	0.00
			
	5.11	  	Sellers Invested Amount for the Series 2010-1 Notes for the Due Period	  	0.00
			
	5.12	  	Shortfall in Series Available Interest Amounts, if any, for the Due Period	  	0.00
			
	5.13	  	Unreimbursed reductions to the Series 2010-1 Collateral Amount, if any, for the Due Period	  	0.00

  

 Ex B-1 - 2 

					
			
	5.14	  	Nominal Liquidation Amount plus Accrued and Unpaid Interest as of the Transfer Date	  	0.00
			
	5.15	  	Series 2010-1 Required Seller’s Invested Amount as of the Payment Date	  	0.00
			
	5.16	  	Series 2010-1 Controlled Accumulation Amount, if any, for the Due Period	  	0.00
			
	5.17	  	Series 2010-1 Controlled Deposit Amount, if any, for the Due Period	  	0.00
			
	5.18	  	Series Variable Allocation Percentage for the Due Period	  	0.00
			
	5.19	  	Series Fixed Allocation Percentage for the Due Period	  	0.00
			
	5.20	  	Total amount to be distributed on the Series 2010-1 Notes on the Payment Date	  	0.00
			
	5.21	  	Total amount, if any, to be distributed on the Series 2010-1 Notes on the Payment Date allocable to the Outstanding Principal Amount	  	0.00
			
	5.22	  	Total amount to be distributed on the Series 2010-1 Notes on the Payment Date allocable to interest on the Series 2010-1 Notes	  	0.00
			
	5.23.1	  	Series 2010-1 Servicing Fee to be paid on the Payment Date	  	0.00
			
	5.23.2	  	Series 2010-1 Backup Servicing Expenses to be paid on the Payment Date	  	0.00
			
	5.23.3	  	Series 2010-1 Backup Servicing Fee to be paid on the Payment Date	  	0.00
			
	5.24.1	  	Series 2010-1 Investment Income	  	0.00

  

 Ex B-1 - 3 

					
			
	5.24.2	  	Series 2010-1 Principal Funding Account investment income	  	0.00
			
	5.24.3	  	Series 2010-1 Negative Carry Account investment income	  	0.00
			
	5.24.4	  	Series 2010-1 Interest Funding Account investment income	  	0.00
			
	5.24.5	  	Series 2010-1 Spread Account investment income	  	0.00
			
	5.25	  	Series Excess Available Interest Amounts for the Due Period	  	0.00
			
	5.26	  	Excess Available Interest Amounts for the Due Period allocated to other Series of Notes	  	0.00
			
	5.27	  	Excess Available Interest Amounts for the Due Period allocated to Series of Investor Certificates	  	0.00
			
	5.28	  	Excess Available Principal Collections allocated from other series of Notes to Series 2010-1 for the Due Period	  	0.00
			
	5.29	  	Amount of Shared Principal Collections allocated to Series 2010-1 Collateral Certificate for the Due Period	  	0.00
			
	5.30	  	Amount of Excess Available Principal Collections allocated to other Series of Notes for the Due Period	  	0.00
			
	5.31	  	Cash Collateral Percentage as of the Transfer Date	  	0.00%
			
	5.32	  	Mismatch Amount for the Series 2010-1 Notes for the Due Period	  	0.00
			
	5.33	  	Reimbursement Amount for the Series 2010-1 Notes for the Due Period	  	0.00
			
	5.34	  	Certain amounts and calculations referenced in the definition of Early Redemption Event	  	See Exhibit “A”

  

 Ex B-1 - 4 

					
			
	6	  	Account Information	  	
			
	6.1	  	Series 2010-1 Spread Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
		  	Series 2010-1 Spread Account Required Amount, if any, as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	6.2	  	Series 2010-1 Principal Funding Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	6.3	  	Series 2010-1 Negative Carry Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
		  	Series 2010-1 Required Negative Carry Account Balance, if any, as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	6.4	  	Series 2010-1 Interest Funding Account Balance as of the Payment Date after giving effect to all withdrawals and deposits made on such Payment Date	  	0.00
			
	7	  	Class A Notes Information	  	
			
	7.1	  	Class A Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	7.2	  	Class A Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	7.3	  	Total amount to be distributed on the Class A Notes on the Payment Date	  	0.00

  

 Ex B-1 - 5 

					
			
	7.4	  	Total amount, if any, to be distributed on the Class A Notes on the Payment Date allocable to the Class A Outstanding Principal Amount	  	0.00
			
	7.5	  	Total amount to be distributed on the Class A Notes on the Payment Date allocable interest on the Class A Notes	  	0.00
			
	7.6	  	Class A Monthly Interest for the Interest Period	  	0.00
			
	8	  	Class B Notes Information	  	
			
	8.1	  	Class B Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	8.2	  	Class B Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	8.3	  	Total amount to be distributed on the Class B Notes on the Payment Date	  	0.00
			
	8.4	  	Total amount, if any, to be distributed on the Class B Notes on the Payment Date allocable to the Class B Outstanding Principal Amount	  	0.00
			
	8.5	  	Total amount to be distributed on the Class B Notes on the Payment Date allocable interest on the Class B Notes	  	0.00
			
	8.6	  	Class B Monthly Interest for the Interest Period	  	0.00
			
	9	  	Class C Notes Information	  	
			
	9.1	  	Class C Outstanding Principal Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00
			
	9.2	  	Class C Nominal Liquidation Amount as of the Payment Date after giving effect to the transactions made on such Payment Date	  	0.00

  

 Ex B-1 - 6 

					
			
	9.3	  	Total amount to be distributed on the Class C Notes on the Payment Date	  	0.00
			
	9.4	  	Total amount, if any, to be distributed on the Class C Notes on the Payment Date allocable to the Class C Outstanding Principal Amount	  	0.00
			
	9.5	  	Total amount to be distributed on the Class C Notes on the Payment Date allocable interest on the Class C Notes	  	0.00
			
	9.6	  	Class C Monthly Interest for the Interest Period	  	0.00

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

			
	NAVISTAR FINANCIAL CORPORATION, as Servicer
	  

	By:	 	David L. Derfelt
	Its:	 	VP, CFO & Controller

  

 Ex B-1 - 7Note Purchase Agreement

 Exhibit 10.2 
 EXECUTION VERSION 
 NOTE PURCHASE AGREEMENT

 Navistar Financial Securities Corporation 
 Navistar Financial Dealer Note Master Owner Trust 
 $214,800,000 Class A
Floating Rate Dealer Note Asset Backed Notes, Series 2010-1 
 $16,400,000 Class B Floating Rate Dealer Note Asset Backed Notes,
Series 2010-1 
 $18,800,000 Class C Floating Rate Dealer Note Asset Backed Notes, Series 2010-1 
 February 4, 2010 
 Banc of
America Securities LLC 
 As Representative of the several Initial Purchasers named in Schedule I (the “Representative”)

 c/o Banc of America Securities LLC 
 Hearst Tower 
 214 North Tryon Street 
 Charlotte, NC 28255-0001 
 Mail Code NC1-027-21-04 
 Ladies and Gentlemen: 
 Navistar Financial Securities Corporation, (the
“Company”), as depositor of the Navistar Financial Dealer Note Master Owner Trust (“Master Owner Trust”), proposes, subject to the terms and conditions stated herein, to cause to be issued and sold to the several
initial purchasers named in Schedule I hereto (the “Initial Purchasers”) an aggregate of $214,800,000 principal amount of the Class A Floating Rate Dealer Note Asset Backed Notes, Series 2010-1 (the “Class A
Notes”), an aggregate of $16,400,000 principal amount of the Class B Floating Rate Dealer Note Asset Backed Notes, Series 2010-1 (the “Class B Notes”) and an aggregate of $18,800,000 principal amount of the Class C Floating
Rate Dealer Note Asset Backed Notes, Series 2010-1 (the “Class C Notes”). The Class A Notes will have an Expected Principal Payment Date of January 25, 2012 and will bear interest at LIBOR plus 1.65%. The Class B Notes
will have an Expected Principal Payment Date of January 25, 2012 and will bear interest at LIBOR plus 2.50%. The Class C Notes will have an Expected Principal Payment Date of January 25, 2012 and will bear interest at LIBOR plus 3.50%. The
Class A Notes, the Class B Notes and the Class C Notes are referred to herein collectively as the “Notes”. The property of the Master Owner Trust will consist of a collateral certificate representing an interest in the Navistar
Financial Dealer Note Master Trust (the “Dealer Note Trust”). The property of the Dealer Note Trust (the “Dealer Note Trust Property”) includes receivables (the “Receivables”) generated from time to
time in a revolving pool of dealer notes arising under floor plan financing agreements conveyed to the Dealer Note Trust by the Company. The Notes to which this agreement (this “Agreement”) applies will be issued pursuant to the
Indenture, dated as of June 10, 2004 (as

  

 I-1 

 
amended through the date hereof, the “Master Indenture”), between the Master Owner Trust and The Bank of New York Mellon, as indenture trustee (the “Indenture
Trustee”), as supplemented by an indenture supplement, to be dated as of the Closing Date referred to below (the “Indenture Supplement” and, together with the Master Indenture, the “Indenture”). The Notes
will be secured by a collateral certificate that was issued on June 10, 2004 by the Dealer Note Trust pursuant to a Pooling and Servicing Agreement, dated as of June 8, 1995, as amended as of September 12, 1995, March 27,
1996, July 17, 1998, June 2, 2000, July 13, 2000, October 31, 2003, June 10, 2004 and November 10, 2009 and as supplemented by the Series 2000-VFC Supplement dated as of January 28, 2000,
as amended as of January 22, 2003, October 25, 2007, October 15, 2008 and August 25, 2009, and the Series 2004-1 Supplement dated as of June 10, 2004 (the “Pooling and Servicing Agreement”), among
the Company, Navistar Financial Corporation (“NFC”), as Servicer, and The Bank of New York Mellon, as trustee (the “Dealer Note Trust Trustee”). To the extent not defined herein, capitalized terms used herein shall
have the meanings specified in the Indenture or the Pooling and Servicing Agreement. 
 Certain of the Initial Purchasers are
financial institutions appearing on the list of eligible TALF Agents available in the TALF Standing Loan Facility Procedures (each such financial institution, a “TALF Agent”), and are party to that certain Master Loan and Security
Agreement among the Federal Reserve Bank of New York (the “FRBNY”), as Lender, various TALF Agents from time to time party thereto, each on behalf of itself and its respective customers as borrowers thereunder from time to time, The
Bank of New York Mellon, as Administrator, and The Bank of New York Mellon, as Custodian (as revised from time to time, the “MLSA”), in the form most recently posted by the FRBNY at
http://www.newyorkfed.org/markets/talf_docs.html, in connection with the Term Asset-Backed Securities Loan Facility (“TALF”). To the extent expressly provided in this Agreement, and subject to the limitations set forth in
Section 13 hereof, certain of the rights, benefits and remedies of the Initial Purchasers under this Agreement will be for the benefit of, and will be enforceable by, each Initial Purchaser who is a TALF Agent not only in its capacity as
an Initial Purchaser but also in its capacity as a TALF Agent and as a signatory to a letter agreement making the TALF Agent a party to the MLSA. 
 The Notes will be offered and sold to the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon an exemption
therefrom. The Company has prepared a confidential offering memorandum dated February 4, 2010 and a confidential offering supplement to confidential offering memorandum dated February 4, 2010 (collectively, the “Preliminary
Offering Memorandum”), and has or will prepare and deliver to the Initial Purchasers, on or promptly after the date hereof, copies of a final confidential offering memorandum dated February 4, 2010 and a confidential offering
supplement to confidential offering memorandum dated February 4, 2010 (collectively, the “Final Offering Memorandum”), to be used by the Initial Purchasers in connection with their solicitation of purchases of, or offering of,
the Notes. Any references herein to the Preliminary Offering Memorandum or the Final Offering Memorandum shall be deemed to include all amendments and supplements thereto and all documents incorporated by reference therein (if any), unless otherwise
noted. The Company hereby confirms that it has authorized the use of the Preliminary Offering Memorandum, the other Time of Sale Information (as defined below) and the Final Offering Memorandum in connection with the offer of the Notes and resale of
the Notes by the Initial Purchasers in accordance with the provisions hereof. 
  

 -2- 

 At or prior to the time when sales (including any contracts of sale) of the Notes were first
made to investors by the Initial Purchasers, which shall be deemed to be 2:35 p.m., Chicago time, on February 4, 2010 (the “Time of Sale”), the following information shall have been prepared (collectively, the “Time of
Sale Information”): the Preliminary Offering Memorandum. As used herein, “Disclosure Package” means the following documents taken as a whole: (i) the Time of Sale Information and (ii) the Final Offering
Memorandum. 
 1. The Company agrees to sell and deliver the Notes to each of the Initial Purchasers, severally and not jointly,
as hereinafter provided, and each of the Initial Purchasers, severally and not jointly, upon the basis of the representations and warranties herein contained, but subject to the conditions hereinafter stated, agrees to purchase from the Company the
principal amount of Notes set forth opposite the name of such Initial Purchaser on Schedule I hereto at the purchase price equal to (i) 99.30345% of the principal amount of Class A Notes purchased, (ii) 99.10000% of the
principal amount of Class B Notes purchased and (iii) 98.85000% of the principal amount of Class C Notes purchased. The Notes shall be issued and sold free from all liens, charges and encumbrances, equities and other third party rights of any
nature whatsoever, together with all rights of any nature whatsoever attaching or accruing to them now or after the date of this Agreement. The Company understands that each Initial Purchaser intends to re-sell all or a portion of the Notes acquired
by such Initial Purchaser to one or more entities in the United States which such Initial Purchaser reasonably believes to be “qualified institutional buyers” (“QIBs”) under Rule 144A of the Securities Act (“Rule
144A”) in transactions that comply with Rule 144A. Each of Company and each Initial Purchaser acknowledge and agree that they intend that the offer and sale of the Notes, upon the terms and conditions stated herein, to the Initial
Purchasers is to be exempt from the registration requirements of the Securities Act pursuant to Section 4(2) thereof. 
 2.
Payment for the Notes shall be made to the Company or to its order by wire transfer or other same day funds at the office of Kirkland & Ellis LLP, Chicago, Illinois at 10:00 a.m., Chicago time, on February 12, 2010 or at such other
time on the same or such other date, not later than the fifth Business Day thereafter, as the Initial Purchasers and the Company may agree upon in writing. The time and date of such payment for the Notes are referred to herein as the
“Closing Date.” As used herein, the term “Business Day” means any day other than a Saturday, a Sunday or a day on which banks are permitted or required to be closed in New York City. 
 Payment for the Notes shall be made against delivery to the Initial Purchasers through the facilities of The Depository Trust Company on the
Closing Date of definitive notes representing the Notes registered in the name of Cede & Co., as nominee for The Depository Trust Company, and in such denominations, as permitted by the Indenture, as the Initial Purchasers shall request in
writing not later than two full Business Days prior to the Closing Date, with any transfer taxes payable in connection with the transfer to the Initial Purchasers of the Notes duly paid by the Company. The definitive notes for the Notes will be made
available for inspection by the Initial Purchasers in Chicago, Illinois not later than 1:00 p.m., New York City time, on the Business Day prior to the Closing Date. 
 3. Each of NFC and the Company represents and warrants to (i) the several Initial Purchasers and (ii) with respect to clause (ff) of this Section 3, to each Initial Purchaser in its

  

 -3- 

 
capacity as TALF Agent with respect to the TALF Loans secured by the Class A Notes, unless otherwise specified below, on and as of the Time of Sale, the date hereof and the Closing Date,
that: 
 (a) the Preliminary Offering Memorandum, as of its date and as of the Time of Sale did not, the Time of
Sale Information, as of the Time of Sale did not and as of the Closing Date will not, and the Final Offering Memorandum, as of its date and as of the Closing Date, will not, contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the Company makes no representation or warranty as to
information contained in or omitted from the Preliminary Offering Memorandum, any other Time of Sale Information or the Final Offering Memorandum in reliance upon and in conformity with the written information relating to the Initial Purchasers
furnished to the Company through the Representative by or on behalf of any Initial Purchaser specifically for use therein (such information, the “Initial Purchaser Information”). It is understood and agreed that the Initial
Purchaser Information consists solely of the following information: (i) in the section entitled “Risk Factors—Limited ability to resell the notes” in the Preliminary Offering Memorandum and the Final Offering Memorandum, the
information in the second sentence of the first paragraph of such section and (ii) in the section entitled “Plan of Distribution” in the Preliminary Offering Memorandum and the Final Offering Memorandum, the information in
(A) the first sentence of the third paragraph under such section, and (B) the second and third sentences of the fourth paragraph under such section; 
 (b) none of the Company, NFC nor any of their affiliates, nor any person acting on their behalf (i) has, within the
six-month period prior to the date hereof, offered or sold the Notes or any security of the same or a similar class or series as the Notes, (ii) has offered or will offer or sell the Notes in the United States by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of Regulation D under the Securities Act, (iii) has provided any written information (other than the Preliminary Offering Memorandum and other Time of Sale Information) with
respect to the offering contemplated hereby to prospective purchasers of the Notes or (iv) has, directly or indirectly, made offers of any security, or solicited offers to buy any security, that would require the registration of the Notes under
the Securities Act. None of the Company, NFC nor any of their affiliates has entered or will enter into any contractual arrangement with respect to the distribution of the Notes except for this Agreement. None of the Company, NFC nor any of their
affiliates has received any order or notice from the Securities and Exchange Commission (the “Commission”) or any state securities commission preventing or suspending the offering of the Notes or the use of any portion of the
Disclosure Package, and to the best knowledge thereof, no such order or notice has been issued and no proceedings for that purpose have been instituted; provided, however, that neither the Company nor NFC makes any representation or
warranty as to actions taken by any of the Initial Purchasers, any of their respective affiliates or any Person acting on their behalf in respect of the transactions contemplated by this Agreement. 
  

 -4- 

 (c) each of the Company and NFC has been duly incorporated under the laws of
its jurisdiction of incorporation; each of the Company and NFC is a validly existing corporation in good standing under the laws of its jurisdiction of incorporation, with full power and corporate authority (i) to execute, deliver and perform
its obligations under this Agreement and the other Securitization Agreements (as defined below) to which it is a party and to consummate the transactions contemplated hereby and thereby and (ii) to own, lease and operate its properties and
conduct its business, and is duly qualified as a foreign corporation for the transaction of business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties, or conducts any business, so as to require
such qualification, except where the failure to be so qualified or in good standing would not have a material adverse effect on the business, results of operations or financial condition or the material properties or assets of the Company or NFC or
the performance of their obligations hereunder or under the Securitization Agreements (a “Company/NFC Material Adverse Effect”); 
 (d) the Dealer Note Trust is a common law trust duly organized and validly existing in good standing under the laws of the State of Illinois and the Master Owner Trust is a statutory trust duly organized
and validly existing in good standing under the laws of the State of Delaware, and each of the Dealer Note Trust and the Master Owner Trust has the full power and corporate authority (i) to execute, deliver and perform its obligations under the
Securitization Agreements to which it is a party and to consummate the transactions contemplated hereby and thereby and (ii) to own, lease and operate its properties and conduct its business, and is duly qualified as a foreign corporation for
the transaction of business and is in good standing under the laws of each other jurisdiction in which it owns or leases properties, or conducts any business, so as to require such qualification, except where the failure to be so qualified or in
good standing would not have a material adverse effect on the business, results of operations or financial condition or the material properties or assets of the Master Owner Trust or the Dealer Note Trust or the performance of its obligations under
the Securitization Agreements (a “Master Owner Trust/Dealer Note Trust Material Adverse Effect” and together with a Company/NFC Material Adverse Effect, a “Material Adverse Effect”); 
 (e) each of this Agreement, the Trust Agreement, the Administration Agreement, the Purchase Agreement, the Master Indenture
and the Pooling and Servicing Agreement (the Pooling and Servicing Agreement, together with the Trust Agreement, the Administration Agreement, the Purchase Agreement and the Master Indenture, the “Existing Agreements”) has been duly
and validly authorized, executed and delivered by the Company, NFC, the Dealer Note Trust and the Master Owner Trust, as applicable; 
 (f) the execution and delivery of the Indenture Supplement (the Indenture Supplement, together with the Existing Agreements, the “Securitization Agreements”) and the consummation of the
transactions provided therein have been duly and validly authorized by the Company, NFC, the Dealer Note Trust and the Master Owner Trust, as applicable; 
 (g) this Agreement constitutes the valid and binding agreement of the Company and NFC; and each Existing Agreement to which it is a party constitutes a

  

 -5- 

 
legal, valid and binding agreement of each of the Company, NFC, the Dealer Note Trust and the Master Owner Trust, as applicable, enforceable against the Company, NFC, the Dealer Note Trust and
the Master Owner Trust, as applicable, each in accordance with its terms, except that the enforcement of each such agreement may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors’ rights generally and (ii) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (h) the Notes, the Collateral Certificate and the Securitization Agreements conform in all material respects to the
descriptions thereof in each of the Preliminary Offering Memorandum and Final Offering Memorandum; 
 (i) the
Notes have been duly and validly authorized and, when such Notes are duly and validly executed by or on behalf of the Master Owner Trust, authenticated by the Indenture Trustee and delivered in accordance with the Indenture on the Closing Date, will
be a legal, valid and binding obligation of the Master Owner Trust, enforceable against the Master Owner Trust in accordance with their terms, and validly issued and outstanding and entitled to the benefits and security afforded by the Indenture;
except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) general principles of
equity and the discretion of the court before which any proceeding therefor may be brought; 
 (j) the Collateral
Certificate is a legal, valid and binding obligation of the Dealer Note Trust, enforceable against the Dealer Note Trust in accordance with its terms and is entitled to the benefits of and security afforded by the Pooling and Servicing Agreement;
except that the enforcement thereof may be subject to (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (ii) general principles of
equity and the discretion of the court before which any proceeding therefor may be brought; 
 (k) the execution
and delivery by the Company of, and the performance by the Company of its obligations under, this Agreement, the Notes, the Collateral Certificate and the Securitization Agreements, and the consummation by the Company of the transactions
contemplated herein and therein and in the Preliminary Offering Memorandum and Final Offering Memorandum, (i) do not and will not result in any violation of the Certificate of Incorporation or the By-laws of the Company and (ii) do not and
will not conflict with, or result in a breach or violation of any of the terms or provisions of, or constitute a default (or an event which, with notice or lapse of time, or both, would constitute a default) under, or give rise to any right to
accelerate the maturity or require the prepayment of any indebtedness or the purchase of any capital stock under, or result in the creation or imposition of any lien, charge or encumbrance upon any properties or assets of the Company under,
(A) any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement or other agreement or instrument to which the Company, NFC, Navistar, Inc. (“Navistar”) or Navistar International
Corporation (“NIC”) is a party or by which any of them may be bound or to which any of

  

 -6- 

 
their respective properties or assets may be subject, (B) any applicable law or statute, rule or regulation (other than the securities or blue sky laws of the various states of the United
States of America) or (C) any judgment, order or decree of any government, governmental instrumentality, agency, body or court, domestic or foreign, having jurisdiction over the Company, NFC, Navistar or NIC or any of their respective
properties or assets; 
 (l) the execution and delivery by NFC of, and the performance by NFC of all of its
obligations under, this Agreement and the Securitization Agreements, and the consummation by NFC of the transactions contemplated herein and therein and in the Preliminary Offering Memorandum and Final Offering Memorandum, (i) do not and will
not result in any violation of the Certificate of Incorporation or the By-laws of NFC and (ii) do not and will not conflict with, or result in a breach or violation of any of the terms or provisions of, or constitute a default (or an event
which, with notice or lapse of time, or both, would constitute a default) under, or give rise to any right to accelerate the maturity or require the prepayment of any indebtedness or the purchase of any capital stock under, or result in the creation
or imposition of any lien, charge or encumbrance upon any properties or assets of NFC under, (A) any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement or other agreement or instrument to which NFC,
the Company, Navistar or NIC is a party or by which any of them may be bound or to which any of their respective properties or assets may be subject, (B) any applicable law or statute, rule or regulation (other than the securities or Blue Sky
laws of the various states of the United States of America) or (C) any judgment, order or decree of any government, governmental instrumentality, agency, body or court, domestic or foreign, having jurisdiction over NFC, the Company, Navistar or
NIC or any of their respective properties or assets; 
 (m) the representations and warranties of the Company,
NFC, the Dealer Note Trust and the Master Owner Trust set out in the Securitization Agreements are true and correct in all material respects and each Initial Purchaser may rely on such representations and warranties as if they were set forth herein
in full; 
 (n) no authorization, approval, consent, order, registration, qualification or license of, or filing
with, any government, governmental instrumentality, agency, body or court, domestic or foreign, or third party (other than as may be required under the securities or blue sky laws of the various states of the United States of America) is required
for the valid authorization, issuance, sale and delivery of the Notes, or the performance by the Company, the Dealer Note Trust, the Master Owner Trust or NFC of all of its obligations under this Agreement, the Securitization Agreements or the
Notes, or the consummation by the Company, the Dealer Note Trust, the Master Owner Trust or NFC of the transactions contemplated by this Agreement, the Securitization Agreements or the Preliminary Offering Memorandum or the Final Offering
Memorandum; 
 (o) none of the Company, NFC, the Dealer Note Trust or the Master Owner Trust (i) is in
violation of its respective organizational documents or (ii) is in breach or violation of any of the terms or provisions of, or with the giving of notice or lapse of time, or both, would be in default under, any contract, indenture, mortgage,
deed of trust,

  

 -7- 

 
loan agreement, note, lease, partnership agreement, or other agreement or instrument to which the Company, NFC, the Dealer Note Trust or the Master Owner Trust is a party or by which any of them
may be bound or to which any of their properties or assets may be subject, except for such violations or defaults that would not have a Material Adverse Effect; 
 (p) there is no action, suit or proceeding before or by any government, governmental instrumentality, agency, body or court,
domestic or foreign, now pending or, to the best knowledge of the Company and NFC after due inquiry, threatened against or affecting the Company, the Dealer Note Trust, the Master Owner Trust or NFC (i) asserting the invalidity of this
Agreement, any Securitization Agreement, the Notes or the Collateral Certificate, (ii) seeking to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any Securitization Agreement,
(iii) that might materially and adversely affect the performance by the Company, the Dealer Note Trust, the Master Owner Trust or NFC of its obligations under, or the validity or enforceability of, this Agreement, any Securitization Agreement,
the Notes or the Collateral Certificate, (iv) seeking to affect adversely the federal income tax attributes of the Notes or the Collateral Certificate described in the Preliminary Offering Memorandum or the Final Offering Memorandum or
(v) that if determined adversely as to the Company, the Dealer Note Trust, the Master Owner Trust or NFC would have a Material Adverse Effect; 
 (q) there has not been any material adverse change in the business, results of operations or financial condition or the material properties or assets of Navistar or NFC since the end of the most recent
fiscal quarter of Navistar or NFC; 
 (r) any taxes, fees, and other governmental charges in connection with the
execution and delivery of this Agreement and the Securitization Agreements, the execution, delivery and transfer of the Collateral Certificate and the execution, delivery, and sale of the Notes have been or will be paid at or before the Closing
Date; 
 (s) on the Closing Date, after giving effect to all transactions occurring on the Closing Date,
including the issuance of Notes and the repayment of the Series 2000- VFC Certificate, the Seller’s Invested Amount will be at least equal to the Minimum Seller’s Invested Amount; 
 (t) the Pooling and Servicing Agreement is not required to be qualified under the Trust Indenture Act, and neither the
Company nor the Dealer Note Trust is required to be registered under the Investment Company Act; 
 (u) the
Master Indenture has been qualified under the Trust Indenture Act, and the Master Owner Trust is not required to be registered under the Investment Company Act; 
 (v) none of the Company, NFC, the Dealer Note Trust or the Master Owner Trust is a party to, or otherwise bound by, any
indenture or other material agreement or instrument, or, to the Company’s or NFC’s knowledge, subject to or in violation of any

  

 -8- 

 
statute, regulation or order of any governmental body, administrative agency, regulatory body or court having jurisdiction over the Company, NFC, the Dealer Note Trust or the Master Owner Trust
that would have a Material Adverse Effect; 
 (w) the Notes will, when, as and if issued, satisfy the eligibility
requirements of Rule 144A(d)(3) of the Securities Act. As of the Closing Date, the Notes will not be, (i) of the same class as securities listed on a national securities exchange in the United States that is registered under Section 6 of
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), (ii) quoted in any “automated inter-dealer quotation system” (as such term is used in the Exchange Act) in the United States, or
(iii) convertible or exchangeable at an effective conversion premium (calculated as specified in paragraph (a)(6) of Rule 144A) of less than ten percent for securities so listed or quoted; 
 (x) on the Closing Date, the Master Owner Trust shall be the owner of the Collateral Certificate and the other Collateral and
all proceeds with respect thereto, free and clear of all adverse claims. The Indenture creates a valid and continuing security interest (as defined in the UCC) in the Collateral Certificate in favor of the Indenture Trustee, which security interest
is prior to all other liens and security interests, and is enforceable as such against creditors of and purchasers from the Master Owner Trust; 
 (y) assuming the accuracy of the representations and warranties, and compliance with the agreements and covenants, of each of the Initial Purchasers contained herein and the deemed representations of the
investors in the Notes contained in the Indenture and the Preliminary Offering Memorandum, it is not necessary, in connection with the issuance of the Notes to the Company and the sale thereof to the Initial Purchasers and the offer, resale and
delivery of the Notes by the Initial Purchasers in the manner contemplated by this Agreement and the Preliminary Offering Memorandum, the other Time of Sale Information and the Final Offering Memorandum to register the Notes under the Securities
Act; 
 (z) each of the Company and NFC has filed all tax returns (federal, state and local) required to be filed
by it and has paid all taxes, assessments and other governmental charges then due and payable, except such taxes, assessments and other governmental charges as are being contested in good faith and for which it has set aside appropriate reserves;

 (aa) no proceeds received by the Company in respect of the Notes will be used by the Company to acquire any
security in any transaction which is subject to Section 13 or 14 of the Exchange Act; 
 (bb) (i) each
of the Company, NFC and their respective ERISA Affiliates is in compliance in all material respects with ERISA unless any failure to so comply could not reasonably be expected to have a Material Adverse Effect and (ii) no lien under
Section 303(k) of ERISA or Section 430(k) of the Code exists on any of the Collateral. As used in this paragraph, the term “ERISA Affiliate” means, with respect to any Person, a

  

 -9- 

 
corporation, trade or business that is, along with such Person, a member of a controlled group (as described in Section 414 of the Code or Section 4001 of ERISA); 
 (cc) neither the Company nor NFC has paid or agreed to pay to any person any compensation for soliciting another to purchase
any of the Notes (except as contemplated by this Agreement); 
 (dd) neither the Company nor NFC has taken,
directly nor indirectly, any action designed to cause or to result in, or that has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of the price of any Note or to facilitate the sale or resale of the
Notes; 
 (ee) on and immediately after the Closing Date, each of the Company, NFC, the Master Owner Trust and
the Dealer Note Trust (after giving effect to the issuance of the Notes and to the other transactions related thereto as described in the Preliminary Offering Memorandum, any other Time of Sale Information and the Final Offering Memorandum) will be
Solvent. As used in this paragraph, the term “Solvent” means, with respect to a particular date such Person, that on such date (A) the present fair market value (or present fair saleable value) of the assets of such Person is
not less than the total amount required to pay the probable liabilities of such Person on its total existing debts and liabilities (including contingent liabilities) as they become absolute and matured, (B) such Person is able to realize upon
its assets and pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business, (C) assuming the sale of the Notes as contemplated by this Agreement, the Preliminary
Offering Memorandum, any other Time of Sale Information and the Final Offering Memorandum, such Person is not incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature and (D) such Person is not engaged in
any business or transaction, and is not about to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such Person
is engaged. In computing the amount of such contingent liabilities at any time, it is intended that such liabilities will be computed at the amount that, in the light of all the facts and circumstances existing at such time, represents the amount
that can reasonably be expected to become an actual or matured liability; 
 (ff) TALF. 
 (i) Assuming the Class A Notes receive the ratings described in the Preliminary Offering Memorandum, the Class A
Notes satisfy, or will satisfy on the Closing Date, all requirements to be “eligible collateral” (“Eligible Collateral”) as such term is defined in the form of MLSA posted on the website of the FRBNY (in the most recently
dated version as of the date of such representation) at http://www.newyorkfed.org/_markets/talf_docs.html under TALF; it being understood that no representation or warranty is made by the Company or NFC as to the eligibility of any
borrower under TALF or any borrower’s compliance with TALF; 
  

 -10- 

 (ii) The Class A Notes and the Dealer Notes underlying the Class A
Notes satisfy, or will satisfy on the Closing Date, all applicable criteria for securities relating to “non-auto floor plan ABS” within the meaning of the Term Asset-Backed Securities Loan Facility: Terms and Conditions, effective
November 13, 2009 or as in effect on the date of the Preliminary Offering Memorandum and the date of the Final Offering Memorandum, posted by the FRBNY at http://www.newyorkfed.org/markets/talf_terms.html and the Term Asset-Backed
Securities Loan Facility: Frequently Asked Questions, effective January 15, 2010 or as in effect on the date of the Preliminary Offering Memorandum or the date of the Final Offering Memorandum, posted by the FRBNY at
http://www.newyorkfed.org/markets/talf_faq.html under TALF; 
 (iii) Each of the Company and NFC
represents and warrants that it and the Master Owner Trust have satisfied, or will have satisfied, all requirements under TALF applicable to it or the Master Owner Trust with respect to the Class A Notes and related matters required to be
satisfied as of the applicable dates required under TALF. The Preliminary Offering Memorandum contains, and the Final Offering Memorandum will contain, all applicable information required to be included therein under TALF, as then in effect on the
date of the Preliminary Offering Memorandum or the Final Offering Memorandum, as applicable, in order for the Class A Notes to be Eligible Collateral; and 
 (iv) On the Closing Date and the date hereof, the representations and warranties and certifications of the Company and NFC
contained in the Certification as to TALF Eligibility for Non-Mortgage-Backed ABS to be attached as Appendix A to the Final Offering Memorandum (the “TALF Certification”) are and will be true and correct and each Initial Purchaser
(in its capacity as a TALF Agent with respect to the TALF loans secured by the Class A Notes) may rely on such representations, warranties and certifications as if they were fully set forth herein; and 
 (gg) no forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act) contained in the Preliminary Offering Memorandum has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith and, on and as of the date of the Final Offering Memorandum and the Closing Date, no
forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in the Final Offering Memorandum will have been made or reaffirmed without a reasonable basis or will have
been disclosed other than in good faith. 
 4. Each of the Company and NFC, jointly and severally, covenants and agrees with
each of the Initial Purchasers and, in the case of clauses (o), (p), (q) and (r) of this Section 4, each Initial Purchaser in its capacity as a TALF Agent with respect to the TALF Loans secured by the Class A Notes as
follows: 
 (a) on or before the Closing Date, it shall provide to the Initial Purchasers and their counsel
physical or electronic copies of the Final Offering Memorandum, dated on or before the Closing Date with such changes from the Preliminary Offering Memorandum as shall have been reasonably consented to by the Initial Purchasers; 
  

 -11- 

 (b) it shall promptly from time to time take such action as any Initial
Purchaser may reasonably request to qualify the Notes for offer and sale under the securities laws of such states of the United States as any such Initial Purchaser may reasonably request for so long as reasonably required for the distribution of
the Notes by such Initial Purchaser; to advise the Initial Purchasers, promptly after the Company or NFC receives notice thereof, of the suspension of the qualification of the Notes for offer or sale in any jurisdiction or of the initiation or
threatening of any proceeding for any such purpose; and, in the event of the issuance of any order suspending any such qualification, it shall promptly to use its best efforts to obtain the withdrawal of such order; provided, however,
that none of the Master Owner Trust, the Company or NFC shall be obligated to qualify as foreign corporations in any jurisdiction in which it is not so qualified or to file a general consent to service of process in any jurisdiction; 
 (c) if, at any time prior to the date the Final Offering Memorandum is made available to each Initial Purchaser, any event
shall occur, information shall become known or condition shall exist as a result of which it is necessary to amend or supplement the Time of Sale Information in order that the Time of Sale Information will not include an untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it is necessary at any such time to amend or supplement the Time of
Sale Information to comply with applicable law (in each of the foregoing cases, a “Defective Offering Memorandum”), the Company and NFC shall promptly prepare such amendment or supplement as may be necessary to correct such untrue
statement or omission or so that the Time of Sale Information, as so amended or supplemented, will comply with applicable law (a “Corrected Offering Memorandum”); 
 (d) if, at any time prior to the completion of the initial sale of the Notes by the Initial Purchasers (as evidenced by
written notice from the Representative) but in no event in excess of 180 days from the date hereof, any event shall occur, information shall become known or condition shall exist as a result of which it is necessary to amend or supplement the Final
Offering Memorandum in order that the Final Offering Memorandum will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, or if it is necessary at any such time to amend or supplement the Final Offering Memorandum to comply with applicable law (in each of the foregoing cases, also a “Defective Offering Memorandum”), the
Company and NFC shall promptly prepare such amendment or supplement as may be necessary to correct such untrue statement or omission or so that the Final Offering Memorandum, as so amended or supplemented, will comply with applicable law (also a
“Corrected Offering Memorandum”); 
 (e) neither it nor any of its affiliates or any other
Person acting on their behalf shall engage, in connection with the offer and sale of the Notes, in any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D under the Securities Act, including, but not
limited to, the following: 
 (i) any advertisement, article, notice or other communication published in any
newspaper, magazine or similar medium or broadcast over television or radio; and 
  

 -12- 

 (ii) any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising; 
 (f) so long as the Notes are outstanding, to deliver or cause to be
delivered to each Initial Purchaser the annual statements as to compliance and the annual statement(s) of a firm of independent public accountants delivered to the Dealer Note Trust Trustee pursuant to the Pooling and Servicing Agreement, in each
case promptly after such statements are furnished to the Company; 
 (g) to pay or cause to be paid all costs and
expenses incident to the performance of its obligations hereunder, including without limitation, all costs and expenses (i) incident to the preparation, issuance, execution, authentication and delivery of the Notes, including any expenses of
the Dealer Note Trust Trustee, Indenture Trustee and Master Owner Trust Trustee, (ii) incident to the preparation, printing and mailing of the Disclosure Package (including in each case all exhibits, amendments and supplements thereto) and all
documents related thereto, including, without limitation, the cost of all copies thereof and any amendments thereof or supplements thereto supplied to the Initial Purchasers in such quantities as the Initial Purchasers may reasonably require in
connection with the offer or sale of the Notes, (iii) incurred in connection with the qualification or exemption of the sale of the Notes under state securities or blue sky laws and the determination of their eligibility for investment under
state and federal laws, including filing fees and reasonable fees and disbursements of counsel in connection therewith and, if necessary in the reasonable judgment of the Initial Purchasers, all reasonable expenses in connection with the maintenance
of such qualification, (iv) in connection with the printing (including word processing and duplication costs) and delivery of this Agreement, the Securitization Agreements and all other agreements relating hereto or thereto and (v) payable
to rating agencies in connection with the rating of the Notes; 
 (h) so long as any of the Notes are
outstanding, to furnish to each Initial Purchaser as soon as practicable after the end of the fiscal year, (i) all documents required to be distributed to Noteholders or filed with the Commission pursuant to the Exchange Act, or any order of
the Commission thereunder and (ii) from time to time, any other information concerning the Company, NFC, the Master Owner Trust or the Dealer Note Trust filed with any government or regulatory authority that is otherwise publicly available, as
any Initial Purchaser may reasonably request; 
 (i) to the extent that a rating provided with respect to the
Notes by the rating agencies that initially rate the Notes is conditional upon the furnishing of documents or the taking of any other actions by the Company, NFC, the Master Owner Trust or the Dealer Note Trust, to furnish, as soon as practicable,
such documents and take any such other reasonable actions; 
  

 -13- 

 (j) it shall not solicit any offer to buy from or offer to sell or sell to
any Person any Notes, except through the Initial Purchasers and/or as otherwise specified in the Indenture at any time prior to the Closing Date; it shall not publish or disseminate any material other than the Disclosure Package in connection with
the offer or sale of the Notes as contemplated by this Agreement, unless the Representative shall have consented to the publication or use thereof; 
 (k) it shall not take, or permit or cause any of their affiliates to take, any action whatsoever which would have the effect of requiring the registration, under the Securities Act, of the offer or sale
of the Notes contemplated by the Disclosure Package; 
 (l) on or prior to the Closing Date, it shall use
reasonable efforts to satisfy all conditions set forth in Section 6 of this Agreement; 
 (m) neither
it nor any of its affiliates will make any offer or sale of securities of any class if, as a result of the doctrine of “integration” referred to in Rule 502 under the Securities Act, such offer or sale would render invalid the exemption of
the Notes from the registration requirements of the Securities Act provided by Section 4(2) thereof, or by Rule 144A or otherwise; 
 (n) it shall not take, directly or indirectly, any action designed to or which has constituted or which might reasonably be expected to cause or result, under the Exchange Act or otherwise, in
stabilization or manipulation of the price of any Note to facilitate the sale or resale of the Notes; 
 (o) each
of the Company and NFC shall use reasonable efforts to ensure that, on the Closing Date, the Class A Notes qualify as Eligible Collateral; 
 (p) each of the Company and NFC shall use reasonable efforts to take, and to fully and timely perform, all actions required of it pursuant to the TALF Certification, unless any such required action is
waived by the FRBNY, or its designated agents; 
 (q) for so long as the Class A Notes remain outstanding,
upon determining that any statement set forth in paragraph (2) of the TALF Certification was not correct when made or ceased to be correct, the Company and NFC shall (i) promptly notify the Initial Purchasers of such determination,
(ii) notify the FRBNY and all registered holders of the Class A Notes in writing of such determination no later than 9:00 a.m., New York City time, on the fourth Business Day following such determination, (iii) issue a press release
regarding such determination no later than 9:00 a.m., New York City time, on the fourth Business Day following such determination, and (iv) promptly provide the Initial Purchasers a copy of each such notification; 
 (r) each of the Company and NFC shall promptly notify the FRBNY and all registered holders of the Class A Notes, in
writing, of the occurrence of any Event of Default with respect to the Class A Notes. Such notice will be delivered to the FRBNY’s custodian at talf@bnymellon.com and to FRBNY at talfreports@ny.frb.org at the same time notice
of the Event of Default is given to the Indenture Trustee. The Company shall promptly provide each Initial Purchaser a copy of each such notification; 
  

 -14- 

 (s) for so long as the Notes are outstanding and are “restricted
securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Company shall furnish to holders of the Notes and prospective purchasers of the Notes designated by such holders, upon request of such holders or such prospective
purchasers, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act, unless the Master Owner Trust is then subject to and in compliance with Section 13 or 15(d) of the Exchange Act (the foregoing agreement
being for the benefit of the holders from time to time of the Notes and prospective purchasers of the Notes designated by such holders); 
 (t) it shall not take any action prior to the Closing Date which would require the Preliminary Offering Memorandum or the Final Offering Memorandum to be amended or supplemented pursuant to
Section 4(c) of this Agreement; and 
 (u) it shall apply the net proceeds from the sale of the Notes
as set forth in the Preliminary Offering Memorandum and the Final Offering Memorandum under the heading “Use of Proceeds”. 
 The Company and NFC agree with the Initial Purchasers, during the period of 60 days from the date of the Final Offering Memorandum, not to offer, sell, contract to sell or announce any offering of any securities of the Company or any other
affiliate of NFC, or any other trust for which the Company or any other affiliate of NFC is depositor, which represent interests in wholesale dealer notes issued by dealers to finance purchases of new and used medium and heavy duty trucks other than
the Notes, without the prior written consent of the Initial Purchasers, which consent shall not be unreasonably withheld. Notwithstanding the foregoing, the Company and NFC may at any time cause the Dealer Note Trust to increase the amount
outstanding under a variable funding certificate that has been placed with any asset-backed commercial paper vehicle or to refinance such variable funding certificate by issuing variable funding notes. 
 5. The respective obligations of the several Initial Purchasers hereunder to purchase the Notes are subject to (i) the accuracy, on and
as of the date hereof and the Closing Date, of the representations and warranties of the Company and NFC contained herein, (ii) the accuracy of the statements of the Company, NFC, the Master Owner Trust, the Dealer Note Trust and their
respective officers made in any certificates delivered pursuant hereto and the statements of the Company and NFC made in any certificates provided to the FRBNY pursuant to TALF, (iii) the performance by each of the Company, NFC, the Master
Owner Trust and the Dealer Note Trust of its obligations hereunder, and under the other Securitization Agreements to which it is a party and, to the extent such obligations are required to be fulfilled on or prior to the Closing Date, the
obligations of the Company and NFC under the certification and indemnities given by it to the FRBNY in connection with the Class A Notes, and (iv) each of the following additional conditions: 
 (a) All corporate proceedings and related matters in connection with the organization of the Master Owner Trust, the Dealer
Note Trust, the Company and NFC, the validity of the Securitization Agreements, the registration, authorization, issue, transfer and delivery of the Collateral Certificate and the registration, authorization, issue, sale and delivery of the Notes
shall have been satisfactory to counsel to the

  

 -15- 

 
Representative, and such counsel shall have been furnished with such papers and information as they may reasonably have requested to enable them to pass upon the matters referred to in this
clause. 
 (b) The Representative shall have received on the Closing Date a signed opinion of Kirkland &
Ellis LLP, special counsel for the Company and NFC, in form and substance reasonably satisfactory to the Representative and counsel to the Representative, dated the Closing Date and addressed to the Initial Purchasers, to the effect that:

 (i) when the Notes are duly executed on behalf of the Master Owner Trust and duly authenticated and delivered
by the Indenture Trustee, upon the order of the Company in accordance with the Indenture, delivered and paid for pursuant to the Note Purchase Agreement, the Notes will constitute valid and binding obligations of the Master Owner Trust, enforceable
in accordance with their terms and will be duly issued and outstanding, and the holder of record of any such Note will be entitled to the benefits afforded by the Indenture; 
 (ii) this Agreement has been duly authorized, executed and delivered by the Company and NFC; and each of the Securitization
Agreements to which it is a party (other than the Trust Agreement) constitutes the valid and binding agreement of each of the Company and NFC, enforceable against the Company and NFC in accordance with its terms; 
 (iii) the execution and delivery by the Company of this Agreement and each of the Securitization Agreements to which it is a
party, and the performance by the Company of its obligations hereunder and thereunder (A) have been duly authorized by the Company, (B) do not and will not violate the Certificate of Incorporation or By-laws of the Company and (C) do
not and will not breach, or result in a default under, (1) any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement or other agreement or instrument to which the Company, NFC, Navistar or NIC is a
party or by which any of them may be bound or to which any of their respective properties or assets may be subject, which has been specified by the Company in an officer’s certificate as being material to the Company, NFC, Navistar or NIC
(except that such counsel need not express any opinion with respect to compliance with any financial test or any breach or default under any cross-default provisions arising out of failure to comply with a financial test or a default under any
agreement not so specified in such officer’s certificate), (2) based upon existing facts of which such counsel has knowledge, any federal or State of New York or Illinois law which, in such counsel’s experience, is normally applicable
to general business corporations which are not engaged in regulated business activities and to transactions of the type contemplated by this Agreement and the Securitization Agreements (but without such counsel having made any special investigation
as to any other laws), except that such counsel shall express no opinion as to (x) compliance with any disclosure requirement or any prohibition against fraud or misrepresentation (except to the extent explicitly indicated in numbered paragraph
(v) below), (y) whether performance of indemnification or contribution provisions would be

  

 -16- 

 
permitted or (z) any laws which the Company, NFC, Navistar or NIC may be subject solely as a result of any Initial Purchaser’s (as opposed to underwriters generally) legal or regulatory
status, or any Initial Purchaser’s (as opposed to underwriters generally) involvement in the transactions contemplated by this Agreement or (3) any judgment, order or decree of any government, governmental instrumentality, agency body or
court, domestic or foreign, which has been specified by the Company in an officer’s certificate as being material to the Company, NFC, Navistar or NIC and having jurisdiction over the Company, NFC, Navistar, or NIC or any of their respective
properties or assets; 
 (iv) the execution and delivery by NFC of this Agreement and each of the Securitization
Agreements to which it is a party, and the performance by NFC of its obligations hereunder and thereunder (A) have been duly authorized by NFC, (B) do not and will not violate the Certificate of Incorporation or By-laws of NFC and
(C) do not and will not breach, or result in a default under, (1) any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement or other agreement or instrument to which the Company, NFC, Navistar or
NIC is a party or by which any of them may be bound or to which any of their respective properties or assets may be subject, which has been specified by the Company in an officer’s certificate as being material to the Company, NFC, Navistar or
NIC (except that such counsel need not express any opinion with respect to compliance with any financial test or any breach or default under any cross-default provisions arising out of failure to comply with a financial test or a default under any
agreement not so specified in such officer’s certificate), (2) based upon existing facts of which such counsel has knowledge, any federal or State of New York or Illinois law which, in such counsel’s experience, is normally applicable
to general business corporations which are not engaged in regulated business activities and to transactions of the type contemplated by this Agreement and the Securitization Agreements (but without such counsel having made any special investigation
as to any other laws), except that such counsel shall express no opinion as to (x) compliance with any disclosure requirement or any prohibition against fraud or misrepresentation (except to the extent explicitly indicated in numbered paragraph
(v) below), (y) whether performance of indemnification or contribution provisions would be permitted or (z) any laws which the Company, NFC, Navistar or NIC may be subject solely as a result of any Initial Purchaser’s (as opposed
to underwriters generally) legal or regulatory status, or any Initial Purchaser’s (as opposed to underwriters generally) involvement in the transactions contemplated by this Agreement or (3) any judgment, order or decree of any government,
governmental instrumentality, agency body or court, domestic or foreign, which has been specified by NFC in an officer’s certificate as being material to the Company, NFC, Navistar or NIC and having jurisdiction over the Company, NFC, Navistar
or NIC or any of their respective properties or assets; 
 (v) the information in the Preliminary Offering
Memorandum and Final Offering Memorandum under the headings “Material Federal Income Tax Matters,” “State Tax Matters,” “ERISA Considerations” and “Certain Matters

  

 -17- 

 
Relating to Bankruptcy”, to the extent that it summarizes laws or constitutes legal conclusions with respect thereto, is correct in all material respects; and the Notes and the
Securitization Agreements conform in all material respects to the descriptions thereof in the Preliminary Offering Memorandum and Final Offering Memorandum; 
 (vi) the Pooling and Servicing Agreement is not required to be qualified under the Trust Indenture Act, and none of the
Company, the Master Owner Trust or the Dealer Note Trust is required to be registered under the Investment Company Act; 
 (vii) the Master Indenture has been qualified under the Trust Indenture Act; 
 (viii) no authorization,
approval, consent or order of any government, governmental instrumentality, agency, body or court, domestic or foreign, is required for the valid authorization, issuance, sale and delivery of the Notes, except such consents, approvals,
authorizations or orders as may be required under the state securities or blue sky laws of the various states of the United States of America; and 
 (ix) the Collateral Certificate has been validly issued and is outstanding; and the holder of record of such Collateral Certificate is entitled to the benefits of the Pooling and Servicing Agreement.

 Such counsel shall also advise that the purpose of their professional engagement was not to establish factual matters, and
that preparation of the Preliminary Offering Memorandum and Final Offering Memorandum involved many determinations of a wholly or partially nonlegal character and that they make no representation that they have independently verified the accuracy,
completeness or fairness of the Preliminary Offering Memorandum or Final Offering Memorandum or that the actions taken in connection with the preparation of the Preliminary Offering Memorandum or Final Offering Memorandum (including the actions
described in the next paragraph) were sufficient to cause the Preliminary Offering Memorandum or Final Offering Memorandum to be accurate, complete or fair and that they are not passing upon and do not assume any responsibility for the accuracy,
completeness or fairness of the Preliminary Offering Memorandum or Final Offering Memorandum except to the extent otherwise explicitly indicated in numbered paragraph (v) above, but that they can however confirm that they have participated in
conferences with representatives of the Company and NFC, representatives of the Initial Purchasers, counsel for the Initial Purchasers and representatives of the independent accountants for the Company and NFC during which disclosures in the
Preliminary Offering Memorandum or Final Offering Memorandum and related matters were discussed and that they have reviewed certain corporate records furnished to them by the Company and NFC and that they were not retained by the Company to prepare
the periodic reports or other materials incorporated in the Preliminary Offering Memorandum or Final Offering Memorandum, and that their knowledge about those materials is limited, but that based upon their participation in the conferences and their
document review identified above, their understanding of applicable law and the experience they have gained in their practice thereunder and relying as to materiality to a

  

 -18- 

 
large extent upon the opinions and statements of officers of the Company, they can, however, advise that nothing has come to their attention that has caused them to conclude that either the
Preliminary Offering Memorandum or Final Offering Memorandum at its respective date or the Closing Date contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made, not misleading (it being understood that such counsel expresses no view, with respect to the Preliminary Offering Memorandum, as to any information left blank in the
Preliminary Offering Memorandum that was completed in the Final Offering Memorandum). 
 In rendering such opinions, such
counsel may rely as to matters of fact, to the extent such counsel reasonably deems proper, on certificates of responsible officers of the Company or NFC and certificates or other written statements of officials of jurisdictions having custody of
documents respecting the corporate existence or good standing of the Company or NFC. In addition, such opinion of counsel may state that such counsel’s opinions are subject to the effect of applicable bankruptcy, reorganization, insolvency,
moratorium, fraudulent conveyance or transfer or other laws of general applicability relating to or affecting the enforcement of creditors’ rights from time to time in effect and to general principles of equity. 
 (c) Kirkland & Ellis LLP shall have furnished to the Initial Purchasers a letter stating that the Initial Purchasers
may rely on their opinions, as special counsel to the Company and NFC, as delivered to Moody’s Investors Service, Inc. and Standard & Poor’s Ratings Services in connection with the rating of the Notes. 
 (d) The Representative shall have received on the Closing Date a signed opinion of General Counsel of NFC and the Company, in
form and substance reasonably satisfactory to the Representative and counsel to the Representative, dated the Closing Date and addressed to the Initial Purchasers, to the effect that: 
 (i) each of the Company and NFC has been duly incorporated and is validly existing as a corporation in good standing under
the laws of the State of Delaware with full power and authority (corporate and other) to own, lease and operate its properties and to conduct its business as described in the Preliminary Offering Memorandum and Final Offering Memorandum; 

(ii) except as described in the Preliminary Offering Memorandum or Final Offering Memorandum, there is no action, suit or
proceeding before or by any government, governmental instrumentality, agency, body or court, domestic or foreign, now pending or, to the best knowledge of such counsel, threatened against or affecting the Company, NFC, Navistar or NIC that could
have a Material Adverse Effect or that could have a material adverse effect on the consummation of the transactions contemplated in, or the fulfillment of the terms of, this Agreement, the Preliminary Offering Memorandum or Final Offering Memorandum
or the Securitization Agreements; there is no action, suit or proceeding before or by any government, governmental instrumentality, agency, body or court, now pending, or to the best knowledge of such counsel, threatened against or affecting the
Company, the Dealer Note Trust, the Master Owner Trust,

  

 -19- 

 
NFC, Navistar or NIC that is required to be described in the Preliminary Offering Memorandum or Final Offering Memorandum that is not so described; and to the best of such counsel’s
knowledge, there are no contracts or other documents of a character required to be described or referred to in the Preliminary Offering Memorandum or Final Offering Memorandum that are not described or referred to as required; 
 (iii) the execution and delivery by the Company and NFC of, and the performance by the Company and NFC of all of the
provisions of its obligations under, this Agreement, the Collateral Certificate and the Securitization Agreements to which it is a party, and the consummation by the Company and NFC of the transactions contemplated herein, therein and in the
Preliminary Offering Memorandum and Final Offering Memorandum do not and will not conflict with, or result in a breach or violation of any of the terms or provisions of, or constitute a default (or an event which, with notice or lapse of time, or
both, would constitute a default) under, or give rise to any right to accelerate the maturity or require the prepayment of any indebtedness or the purchase of any capital stock under, or result in the creation or imposition of any lien, charge or
encumbrance upon any properties or assets of the Company, NFC or of any subsidiary under, (A) any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement or other agreement or instrument to which the
Company, NFC, Navistar or NIC is a party or by which any of them may be bound or to which any of their respective properties or assets may be subject or (B) any judgment, order or decree of any government, governmental instrumentality, agency,
body or court, domestic or foreign, having jurisdiction over the Company, NFC, Navistar or NIC or any of their respective properties or assets which violation, in the case of clauses (A) and (B), could reasonably be expected to have a
materially adverse effect on the transactions contemplated herein, therein and in the Preliminary Offering Memorandum and Final Offering Memorandum; and 
 (iv) the statements contained in the Preliminary Offering Memorandum and the Final Offering Memorandum under the heading “Certain Matters Relating to the Dealer Notes and the Collateral
Certificate,” to the extent that they constitute statements of matters of law or legal conclusions with respect thereto, are correct in all material respects. 
 Such counsel shall also advise, based on his participation in the preparation of the Preliminary Offering Memorandum and Final Offering Memorandum and conferences with officers and representatives of the
Company and NFC, representatives of the independent public accountants for the Company and NFC, representatives of the Initial Purchasers and counsel to the Initial Purchasers, that nothing has come to his attention that leads him to believe that
the Preliminary Offering Memorandum or Final Offering Memorandum (other than the financial statements, supporting schedules and other financial and statistical data set forth therein, as to which no advice need be given), as of its respective date
or the Closing Date, contained or contains an untrue statement of a material fact or omitted or omits to state a material fact

  

 -20- 

 
required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 
 (e) On the respective date of each of Preliminary Offering Memorandum and Final Offering Memorandum and on the date hereof,
KPMG shall have furnished to the Representative letters, dated the respective date of delivery thereof, in form and substance satisfactory to the Representative. 
 (f) The Representative shall have received on the Closing Date a signed opinion of Emmet, Marvin & Martin, LLP,
special counsel for the Dealer Note Trust Trustee and the Indenture Trustee, in form and substance reasonably satisfactory to the Representative and counsel to the Representative, dated the Closing Date and addressed to the Initial Purchasers, to
the effect that: 
 (i) The Bank of New York Mellon is a banking corporation duly incorporated and validly
existing under the laws of the State of New York; 
 (ii) Each of the Dealer Note Trust Trustee and the Indenture
Trustee has the requisite power and authority to execute, deliver and perform its obligations under each of the Agreements to which it is a party, and has taken all necessary action to authorize the execution, delivery and performance by it of each
of the Agreements to which it is a party. For purposes of this clause “Agreements” shall mean the Master Indenture, the Indenture Supplement, the Pooling and Servicing Agreement and the Administration Agreement; 
 (iii) each of the Agreements to which the Indenture Trustee is a party has been duly executed and delivered by the Indenture
Trustee, and constitutes a legal, valid and binding obligation of the Indenture Trustee, enforceable against the Indenture Trustee in accordance with its respective terms, except that certain of such obligations may be enforceable solely against the
Owner Trust Estate, subject, as to enforcement, to (A) the effect of bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, receivership, conservatorship and similar laws relating to or affecting creditors’ rights
generally and (B) the application of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law); 
 (iv) each of the Agreements to which the Dealer Note Trust Trustee is a party has been duly executed and delivered by the
Dealer Note Trustee, and constitutes a legal, valid and binding obligation of the Dealer Note Trust Trustee, enforceable against the Dealer Note Trust Trustee in accordance with its respective terms, except that certain of such obligations may be
enforceable solely against the Dealer Note Trust Property, subject, as to enforcement, to (A) the effect of bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium, receivership, conservatorship and similar laws relating to or
affecting creditors’ rights generally and (B) the application of general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law); 
  

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 (v) the Notes delivered on the date hereof have been duly authenticated by
the Indenture Trustee in accordance with the terms of the Indenture; 
 (vi) the Collateral Certificate delivered
on June 10, 2004 has been duly authenticated by the Dealer Note Trust Trustee in accordance with the terms of the Pooling and Servicing Agreement; 
 (vii) neither (a) the execution, delivery or performance by the Indenture Trustee of the Agreements to which it is a party nor (b) the execution, delivery or performance by the Dealer Note Trust
Trustee of the Agreements to which it is a party requires any consent, approval, or authorization of or any registration or filing with, any New York or United States Federal court or governmental agency or body; and 
 (viii) none of (a) the authentication and delivery of the Notes or the Collateral Certificate, (b) the execution,
delivery and the performance by the Indenture Trustee of the Agreements to which it is a party or (c) the execution, delivery and the performance of the Agreements by the Dealer Note Trust Trustee to which it is a party, conflicts with or will
result in a violation of (A) any law or regulation of the United States of America or the State of New York governing the banking or trust powers of the Indenture Trustee or the Dealer Note Trust Trustee or (B) the Articles of
Incorporation or Bylaws of the Indenture Trustee or the Dealer Note Trust Trustee, as the case may be. 
 (g) The
Representative shall have received on the Closing Date a signed opinion of Richards, Layton & Finger, special counsel for the Master Owner Trust Trustee, in form and substance reasonably satisfactory to the Representative and counsel to the
Representative, dated the Closing Date and addressed to the Initial Purchasers, to the effect that: 
 (i)
Deutsche Bank Trust Company Delaware is a banking corporation in good standing under the laws of the State of Delaware and has the power and authority to perform the Trust Agreement and to consummate the transactions contemplated thereby, and, as
Master Owner Trust Trustee on behalf of the Master Owner Trust, to execute and deliver the Indenture Supplement and the Notes; 
 (ii) the Trust Agreement constitutes the legal, valid and binding obligation of the Master Owner Trust Trustee enforceable against the Master Owner Trust Trustee in accordance with its terms; 

(iii) the Indenture Supplement and the Notes have been duly executed and delivered by the Master Owner Trust Trustee on
behalf of the Master Owner Trust; 
 (iv) neither the performance by the Master Owner Trust Trustee of the Trust
Agreement, nor the consummation of any of the transactions by the Master

  

 -22- 

 
Owner Trust Trustee contemplated thereby, requires the consent or approval of, the withholding of objection on the part of, the giving of notice to, the filing, registration or qualification
with, or the taking of any other action in respect of, any governmental authority or agency of the State of Delaware or the United States of America governing the trust powers of the Master Owner Trust Trustee; 
 (v) neither the performance by the Master Owner Trust Trustee of the Trust Agreement, nor the consummation of any of the
transactions by the Master Owner Trust Trustee contemplated thereby, is in violation of the articles of association or bylaws of the Master Owner Trust Trustee or of any law, governmental rule or regulation of the State of Delaware or of the United
States of America governing the banking or trust powers of the Master Owner Trust Trustee or, to such counsel’s knowledge, without independent investigation, any indenture, mortgage, bank credit agreement, note or bond purchase agreement,
long-term lease, license or other agreement or instrument to which it is a party or by which it is bound or, to such counsel’s knowledge, without independent investigation, or any judgment or order applicable to the Master Owner Trust Trustee;
and 
 (vi) to such counsel’s knowledge, without independent investigation, there are no pending or
threatened actions, suits or proceedings against the Master Owner Trust Trustee in any court or before any other governmental authority of the State of New York which, if adversely determined, would materially and adversely affect the ability of the
Master Owner Trust Trustee to enter into or perform its obligations under the Trust Agreement. 
 (h) The
Representative shall have received on the Closing Date a signed opinion of Richards, Layton & Finger, special Delaware counsel for the Master Owner Trust, in form and substance reasonably satisfactory to the Representative and counsel to
the Representative, dated the Closing Date and addressed to the Initial Purchasers, to the effect that: 
 (i)
the Master Owner Trust has been duly formed and is validly existing in good standing as a statutory trust under the Delaware Statutory Trust Act, 12 Del. C. 3801 et seq. (referred to in this Section 6(j) as the
“Trust Act”), and has the power and authority under the Trust Agreement and the Trust Act to execute, deliver and perform its obligations under the Master Owner Trust Documents and the Notes; 
 (ii) the Trust Agreement is a legal, valid and binding obligation of the Company and the Master Owner Trust Trustee,
enforceable against the Company and the Master Owner Trust Trustee, in accordance with its terms; 
 (iii) under
the Trust Act and the Trust Agreement, the execution and delivery of the Master Owner Trust Documents, the issuance of the Notes, and the granting of the Collateral to the Indenture Trustee as security for the Notes has

  

 -23- 

 
been duly authorized by all necessary trust action on the part of the Master Owner Trust; 
 (iv) the Master Owner Trust Certificate has been duly authorized by the Master Owner Trust and, assuming it was duly executed by the Master Owner Trust Trustee on behalf of the Master Owner Trust and
authenticated by the Master Owner Trust Trustee and delivered to the purchasers thereof in accordance with the Trust Agreement, the Master Owner Trust Certificate has been validly issued and is entitled to the benefits of the Trust Agreement;

 (v) neither the execution, delivery or performance by the Master Owner Trust of the Master Owner Trust
Documents or the Notes, nor the consummation of any of the transactions by the Master Owner Trust contemplated thereby, requires the consent or approval of, the withholding of objection on the part of, the giving of notice to, or the filing,
registration or qualification with, or the taking or any other action in respect of, any governmental authority or agency of the State of Delaware, other than the filing of the Certificate of Trust with the Delaware Secretary of State (which
certificate of trust has been duly filed) and the filing of any UCC financing statements with the Delaware Secretary of State pursuant to the Indenture; 
 (vi) neither the execution, delivery and performance by the Master Owner Trust of the Master Owner Trust Documents, nor the consummation by the Master Owner Trust of the transactions contemplated thereby,
is in violation of the Trust Agreement or of any law, rule or regulation of the State of Delaware applicable to the Master Owner Trust; and 
 (vii) with respect to the Master Owner Trust and the Receivables: (a) there is no document, stamp, excise or other similar tax imposed by the State of Delaware upon the perfection of a security
interest in the Collateral Certificate or the Receivables, in the transfer of the Collateral Certificate or the Receivables to or from the Master Owner Trust or the Dealer Note Trust or upon the issuance of the Master Owner Trust Certificate or the
Notes; (b) there is no personal property tax imposed by the State of Delaware upon or measured by the corpus of the Master Owner Trust or the Dealer Note Trust; (c) the characterization of the Master Owner Trust and the Dealer Note Trust
for federal income tax purposes will be determinative of the characterization of the Master Owner Trust and the Dealer Note Trust for Delaware income tax purposes and assuming the Master Owner Trust and the Dealer Note Trust will not be taxed as
associations or as publicly traded partnerships for federal income tax purposes, neither the Master Owner Trust nor the Dealer Note Trust will be subject to Delaware income tax and Noteholders who are not otherwise subject to Delaware income tax
will not be subject to tax by reason of their ownership of the Notes and the receipt of income therefrom; and (d) any income tax imposed by the State of Delaware that might be applicable to the Master Owner Trust would be based on “federal
taxable income,” and for the purposes of determining such income, the characterization of such income for federal income tax purposes will be

  

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determinative, whether the characterization of the transaction is that of a sale or a loan. 
 (i) On the Closing Date, and after giving effect to all transactions occurring on the Closing Date, including the issuance of the Notes and the repayment of the Series 2000-VFC Certificate, the
Seller’s Invested Amount shall be at least equal to the Minimum Seller’s Invested Amount. 
 (j) At or
prior to the Closing Date, the Class A Notes shall be rated “Aaa” by Moody’s Investors Service, Inc. and “AAA” by Standard & Poor’s Ratings Services, the Class B Notes shall be rated “Aa2” by
Moody’s Investors Service, Inc. and “AA” by Standard & Poor’s Ratings Services and the Class C Notes shall be rated “A2” by Moody’s Investors Service, Inc. and “A” by Standard &
Poor’s Ratings Services. 
 (k) The Company shall have furnished or caused to be furnished to the
Representative a certificate, dated the Closing Date, by either the President or a Vice President of Navistar and NFC (in his capacity as such) to the effect that the signer of such certificate has carefully examined this Agreement and the
Securitization Agreements and to the effect that: (i) the representations and warranties of the Company and NFC contained in such agreements are true and correct in all material respects at and as of the Closing Date with the same effect as if
made at the Closing Date, (ii) the Company and NFC have complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date, (iii) there shall have been no material
adverse change in the business, results of operation or financial condition or the material properties or assets of Navistar or NFC since the end of the most recent fiscal quarter of Navistar or NFC, and (iv) nothing has come to his attention
that would lead him to believe that the Preliminary Offering Memorandum or Final Offering Memorandum contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading. 
 (l) The Representative shall have received on
and as of the Closing Date an opinion dated the Closing Date of Mayer Brown LLP, counsel to the Representative, addressed to the Initial Purchasers and in form and substance satisfactory to the Representative with respect to such matters as the
Representative may reasonably request. 
 (m) TALF Deliveries: 
 (i) On or prior to the date that is three weeks prior to the “Loan Subscription Date” (as defined under TALF)
immediately preceding the Closing Date, the Company and NFC, as sponsor, shall have delivered to the FRBNY all “data” (as defined under TALF) that they reasonably believe, based on the guidance provided by the FRBNY, is required to be
provided to the FRBNY. 
 (ii) On or prior to 12:00 Noon, New York City time (or such later time as may be
specified by the FRBNY), on the date that is four Business Days prior

  

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to the Closing Date (or such later time as may be specified by FRBNY) (the “TALF Delivery Date”), KPMG shall have furnished to the FRBNY an attestation, substantially in the form
required under TALF, electronically and by mail, postmarked on or prior to such date, with a notification to the Representative that such attestation has been sent to the FRBNY. 
 (iii) On or prior to 12:00 Noon, New York City time (or such later time as may be specified by the FRBNY), on the TALF
Delivery Date, NFC, as sponsor, shall have executed the Indemnity Undertaking relating to the Class A Notes, substantially in the form required under TALF, and delivered such Indemnity Undertaking electronically and by mail, postmarked on or
prior to such date to the FRBNY, with a copy to the Representative. 
 (iv) On or prior to 12:00 Noon, New York
City time, on the third Business Day prior to the Closing Date (or such later time as may be specified by the FRBNY), the Company and NFC, as sponsor, shall have executed the TALF Certification, and delivered the TALF Certification to the FRBNY,
with a copy to the Representative, and included the executed TALF Certification in the Final Offering Memorandum. 
 (v) On or prior to 10:00 A.M., New York City time, on the Closing Date, the Company shall have delivered to the FRBNY letters from (i) S&P stating that the Class A Notes have received a rating of “AAA” and
(ii) Moody’s stating that the Class A Notes have received a rating of “Aaa”. 
 (vi) On
or prior to the Closing Date, the Company and NFC, as sponsor, shall have delivered to the FRBNY all “additional data” (as defined under TALF), that they reasonably believe, based on the guidance provided by the FRBNY, is required to be
provided to the FRBNY. 
 (vii) On or prior to the Closing Date, the Company or NFC, as sponsor, (A) shall
have delivered a written waiver or consent, in a form acceptable to the FRBNY, to every nationally recognized statistical rating organization (each such entity, an “NRSRO”) to which the Company or NFC, as sponsor, provided
“data” regarding the Class A Notes or the underlying exposures permitting such NRSRO to share its view of the credit quality of the Class A Notes and the underlying exposures with the FRBNY and (B) shall have delivered a
copy of such waiver or consent to the FRBNY on or prior to the TALF Delivery Date. 
 (viii) On or prior to the
Closing Date, the Company or NFC, as sponsor, shall have received an indication from the FRBNY that based on the information provided to the FRBNY and the FRBNY’s risk assessment, it appears that the proposed issuance of the Class A Notes,
as structured at such time, satisfies the FRBNY’s risk assessment for newly issued non-mortgage-backed ABS (as defined under TALF), which indication has not been revised or revoked as of the Closing Date. 
  

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 (n) On or prior to the Closing Date, the Company shall have furnished to the
Representative such further certificates, documents and opinions as the Representative or their counsel, Mayer Brown LLP, shall reasonably request. 
 6. The Company and NFC agree to jointly and severally indemnify and hold harmless each Initial Purchaser (including in its capacity as a TALF Agent), its officers, employees and directors, and each
person, if any, who controls any Initial Purchaser (including in its capacity as a TALF Agent) within the meaning of either Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any and all losses, claims,
damages and liabilities, joint or several (including, without limitation, the legal fees and other expenses reasonably incurred in connection with any suit, action or proceeding or any claim asserted), caused by any untrue statement or alleged
untrue statement of a material fact contained in the Disclosure Package (including, solely for purposes of this Section 6, the confidential offering memorandum dated January 22, 2010 and the confidential offering supplement to
confidential offering memorandum dated January 22, 2010 prepared by the Company and used by the Initial Purchasers in connection with their solicitation of purchases of, or offering of, the Notes (collectively, the “Initial Preliminary
Offering Memorandum”)), the other written communications listed on Annex A, any Permitted Initial Purchaser Communication (as defined below) or any information prepared or approved by the Company or NFC and provided to the FRBNY in
connection with the Class A Notes (the “FRBNY Data”) or caused by any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, however, that (i) the foregoing indemnity shall not apply to any losses, claims, damages or liabilities to the extent arising out of any untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in conformity with the Initial Purchaser Information; (ii) the foregoing indemnity shall not inure to the benefit of any Initial Purchaser (or to the benefit of the
person controlling such Initial Purchaser) from whom the person asserting any such losses, claims, damages or liabilities purchased the Notes if such untrue statement or omission or alleged untrue statement or omission was made in the Disclosure
Package, any Permitted Initial Purchaser Communication or any written communications listed on Annex A and was eliminated or remedied in a Corrected Offering Memorandum delivered to such Initial Purchaser prior to the Time of Sale (with
respect to any sale consummated on the Closing Date) or the time of sale of such Notes to such person (with respect to any sale consummated after the Closing Date) but a copy of such Corrected Offering Memorandum was not furnished to such person at
or prior to the Time of Sale or the time of sale of such Notes to such person, as applicable and (iii) the foregoing indemnity shall not inure to the benefit of any Initial Purchaser (or to the benefit of the person controlling such Initial
Purchaser) from whom the person asserting any such losses, claims, damages or liabilities purchased the Notes if such untrue statement or omission or alleged untrue statement or omission was made in the Initial Preliminary Offering Memorandum and
such Initial Purchaser failed to deliver the Preliminary Offering Memorandum to such person. 
 Each Initial Purchaser,
severally and not jointly, agrees to indemnify and hold harmless the Company and NFC, their directors, their officers, their employees and each person who controls the Company or NFC within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act to the same extent as the foregoing indemnity from the Company and NFC to the Initial Purchasers, but only with reference to the Initial Purchaser Information. 
  

 -27- 

 If any suit, action, proceeding (including any governmental or regulatory investigation),
claim or demand shall be brought or asserted against any person in respect of which indemnity may be sought pursuant to either of the two preceding paragraphs, such person (the “Indemnified Person”) shall promptly notify the person
against whom such indemnity may be sought (the “Indemnifying Person”) in writing, but the failure to give such notice shall not relieve the Indemnifying Party of its indemnification obligations pursuant to this Agreement unless (and
only to the extent that) such failure to give notice results in the forfeiture of material rights or defenses of the Indemnifying Party. The Indemnifying Person, upon request of the Indemnified Person, shall retain counsel reasonably satisfactory to
the Indemnified Person to represent the Indemnified Person and any others the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such counsel related to such proceeding. In any such proceeding, any
Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have mutually
agreed to the contrary, (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person or (iii) the named parties in any such proceeding (including any impleaded
parties) include both the Indemnifying Person and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood that the
Indemnifying Person shall not, in connection with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and
that all such fees and expenses shall be reimbursed as they are incurred. Any such separate firm for the Initial Purchasers and such control persons of the Initial Purchasers shall be designated in writing by the Initial Purchasers and any such
separate firm for the Company and NFC, their respective directors, their respective officers, their respective employees and such control persons of the Company and NFC shall be designated in writing by the Company and NFC. The Indemnifying Person
shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify any Indemnified Person
from and against any loss or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an Indemnified Person shall have requested an Indemnifying Person to reimburse the Indemnified Person for fees
and expenses of counsel as contemplated by the third sentence of this paragraph, the Indemnifying Person agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered
into more than 30 days after receipt by such Indemnifying Person of the aforesaid request and (ii) such Indemnifying Person shall not have reimbursed the Indemnified Person in accordance with such request prior to the date of such settlement.
No Indemnifying Person shall, without the prior written consent of the Indemnified Person, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party and indemnity could
have been sought hereunder by such Indemnified Person, unless such settlement (i) includes an unconditional written release, in form and substance reasonably satisfactory to the Indemnified Party, of such Indemnified Person from all liability
on claims that are the subject matter of such proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability or failure to act by or on behalf of such Indemnified Party. 
  

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 If the indemnification provided for in the first and second paragraphs of this
Section 6 is for any reason unavailable to, or insufficient to hold harmless, an Indemnified Person in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu
of indemnifying such Indemnified Person thereunder, shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the
relative benefits received by the Company and NFC on the one hand and the Initial Purchasers on the other hand from the offering of the Notes or (ii) if the allocation provided by clause (i) above is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the Company and NFC on the one hand and the Initial Purchasers on the other in connection with
the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company and NFC on the one hand and the Initial Purchasers on the
other shall be deemed to be in the same proportion as the total net proceeds from the offering of the Notes purchased under this Agreement (before deducting expenses) received by the Company bear to the total underwriting discounts and commissions
actually received by the Initial Purchasers with respect to the Notes purchased under this Agreement. The relative fault of the Company and NFC on the one hand and the Initial Purchasers on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or NFC or by the Initial Purchasers and the parties’ relative
intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 The Company, NFC
and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 6 were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed to
include, subject to the limitations set forth above, any actual legal or other expenses reasonably incurred by such Indemnified Person in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this
Section 6, no Initial Purchaser shall be required to contribute any amount in excess of the amount by which the total price of the Notes purchased by it and resold exceeds the amount of any damages which such Initial Purchaser has
otherwise paid or become liable to pay by reason of any untrue or alleged untrue statement or omission or alleged omission. The Initial Purchasers’ obligations to contribute as provided in this Section 6 are several in proportion to
the principal amount of the Notes set forth opposite their respective names in Schedule I. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution
from any person who was not guilty of such fraudulent misrepresentation. 
 The indemnity and contribution agreements contained
in this Section 6 are in addition to any liability which the Indemnifying Persons may otherwise have to the Indemnified Persons referred to above. 
 The indemnity and contribution agreements contained in this Section 6 and the representations and warranties of the Company and NFC as set forth in this Agreement shall

  

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remain operative and in full force and effect regardless of (i) any termination of this Agreement, (ii) any investigation made by or on behalf of the Initial Purchasers or any person
controlling any Initial Purchaser or by or on behalf of the Company and NFC, their officers or directors or any other person controlling the Company or NFC and (iii) acceptance of and payment for any of the Notes. 
 7. Each Initial Purchaser, severally and not jointly, represents, warrants, covenants and agrees that: 
 (a) It is an “accredited investor” within the meaning of Regulation D under the Securities Act and a QIB.

 (b) It is understood that the Initial Purchasers propose to offer the Notes for sale as set forth in the Final
Offering Memorandum and in the Time of Sale Information. It understands that the Notes have not been and will not be registered under the Securities Act and the Notes may not be offered or sold except in accordance with Rule 144A. It has not offered
or sold, and shall not offer or sell, the Notes except to (a) persons whom it reasonably believes to be QIBs in the United States in transactions under Rule 144A and (b) in accordance with the representations herein. In connection with
such offer or sale, it shall take reasonable steps to inform purchasers acquiring such Notes from such Initial Purchaser that such offer or sale is being made in reliance on Rule 144A in a manner that would not require registration of the Notes
under the Securities Act or any blue sky law of any state. 
 (c) Neither such Initial Purchaser nor any of its
affiliates or any person acting on its behalf has engaged or shall engage in any form of general solicitation or general advertising (as those terms are used in Rule 502(c) of Regulation D under the Securities Act) in connection with any offer or
sale of the Notes. 
 (d) Prior to the Time of Sale, it shall convey the Preliminary Offering Memorandum to each
purchaser of any of the Notes purchased by the Initial Purchaser from the Company pursuant hereto; in addition to the foregoing, such Initial Purchaser acknowledges and agrees that the Master Owner Trust may rely upon the accuracy of the
representations and warranties of such Initial Purchaser and its compliance with its agreements contained in this Section 7, and such Initial Purchaser hereby consents to such reliance. 
 (e) As soon as practicable after notice from the Company that the Time of Sale Information is required to be amended or
supplemented, such Initial Purchaser shall cease use of the Time of Sale Information until such Initial Purchaser has received such amendment or supplement and thereafter shall make use of the Time of Sale Information only as so amended or
supplemented, and deliver a copy of such amendment or supplement to each prospective purchaser of the Notes to whom a copy of the Time of Sale Information had previously been delivered (and who has not returned such copy). 
 (f) Prior to the date which is one year and one day after the last date upon which (i) the Notes have been paid in full,
and (ii) all obligations due under any other

  

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securitized financing by the Company have been paid in full, such Initial Purchaser shall not institute against, or join any other person in instituting against, the Company any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding or other proceeding under any federal or state bankruptcy or similar law; provided, however, that the foregoing shall not limit the right of such Initial Purchaser to
file any claim in or otherwise take actions with respect to any such proceeding otherwise instituted. 
 (g) If
such Initial Purchaser uses the internet or other electronic means to offer to sell the Notes, it has in place and shall maintain internal controls and procedures which it reasonably believes to be sufficient to ensure compliance in all material
respects with all applicable legal requirements under the Securities Act and applicable procedures, if any, worked out with the staff of the Commission relating to the use of the internet or relating to computerized or electronic means of delivery
to prospective investors of the Final Offering Memorandum, in each case, in connection with the offering of the Notes. 
 (h) Other than the Preliminary Offering Memorandum, the Final Offering Memorandum and the materials listed on Annex A hereto, such Initial Purchaser has not prepared, made, used, authorized, approved or referred to and will not
prepare, make, use, authorize, approve or refer to, any “written communication” (as defined in Rule 405 under the Securities Act) that constitutes an offer to sell or solicitation of an offer to buy the Notes; provided,
however, that each Initial Purchaser may (i) use, authorize use of, refer to or distribute any written communication prepared by such Initial Purchaser and approved by the Company and NFC in writing for use reference or distribution, as
applicable (each such written communication, a “Permitted Initial Purchaser Communication”) and each Initial Purchaser shall be permitted to provide confirmations of sale and (ii) without the approval of the Company or NFC,
use, authorize use of, refer to or distribute any written communication in the form of (A) an Intex CDI file that does not contain any information not included in the Preliminary Offering Memorandum of the type specified in clauses
(1) – (5) of footnote 271 of Commission Release No. 33-8591 (Securities Offering Reform) other than information of the type described in clause (5) of footnote 271 of Commission Release No. 33-8591 (Securities Offering
Reform) prepared by such Initial Purchaser (including traditional computational and analytical materials prepared by such Initial Purchaser) or (B) information on Bloomberg to prospective investors relating to (1) the prepayment speed and
clean-up call information of the Notes, any derivatives expected to be entered into in connection with the Notes or the weighted average life and payment window of one or more classes of the Notes, (2) a column or other entry showing the status
of the subscriptions for the Notes (both for the issuance as a whole and for each Purchaser’s retention) or (3) information customarily included in confirmations of sales of securities and notices of allocations and information that would
be delivered in a public offering as contemplated by Rule 134 of the Securities Act if Rule 134 of the Securities Act were applicable to the offering of the Notes (the “Bloomberg Information”), which, in the case of clauses
(i) and (ii), each Initial Purchaser, solely with respect to itself, represents would not have been required to be filed with the Commission pursuant to the safe harbor provided by Rule 134 because such information would have been a free
writing prospectus under Rule 405 that is not an issuer free writing prospectus under Rule 405, in each case, if the Notes had been sold in a public offering; 
  

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 (i) If a Defective Offering Memorandum has been corrected with a Corrected
Offering Memorandum delivered to such Initial Purchaser subsequent to the original Time of Sale and prior to the Closing Date, with respect to each investor with whom such Initial Purchaser entered into a contract of sale and who received the
Defective Offering Memorandum from such Initial Purchaser, such Initial Purchaser shall (A) deliver such Corrected Offering Memorandum to such investor prior to entering into a new contract of sale with such investor and (B) enter into a
new contract of sale with such investor on the terms described in the Corrected Offering Memorandum or terminate the existing contract of sale with such investor; and 
 (j) Such Initial Purchaser has not delivered and will not deliver any “data” or “additional data” (as
each such term is defined under TALF) to any NRSRO without providing such data to NFC prior to or promptly after delivery to such NRSRO. 
 8. Notwithstanding anything herein contained, this Agreement may be terminated in the absolute discretion of the Initial Purchasers, by notice given to the Company, if after the execution and delivery of
this Agreement and prior to the Closing Date (i) trading generally shall have been suspended or materially limited on or by, as the case may be, any of the New York Stock Exchange or the National Association of Securities Dealers, Inc.,
(ii) a general moratorium on commercial banking activities in New York shall have been declared by either Federal or New York State authorities, (iii) there shall have occurred any outbreak or escalation of hostilities or any change in
financial markets or any calamity or crisis that, in the judgment of the Initial Purchasers, is material and adverse and which, in the judgment of the Initial Purchasers, makes it impracticable or inadvisable to market the Notes on the terms and in
the manner contemplated herein and in the Disclosure Package or (iv) any material adverse change, or any development involving a prospective material adverse change, in or affecting particularly the business or properties of the Company, NFC,
the Master Owner Trust or the Dealer Note Trust and such event singly or together with any other such event makes it, in the reasonable judgment of the Initial Purchasers, impracticable or inadvisable to market the Notes on the terms and in the
manner contemplated herein and in the Disclosure Package. 
 9. If this Agreement shall be terminated by the Initial Purchasers
because of any failure or refusal on the part of the Company or NFC to comply with the terms or to fulfill any of the conditions of this Agreement, or if for any reason the Company or NFC shall be unable to perform its obligations under this
Agreement, each of the Company and NFC, jointly and severally, agrees to reimburse the Initial Purchasers for all out-of-pocket expenses (including the fees and expenses of their counsel) reasonably incurred by the Initial Purchasers in connection
with this Agreement or the offering contemplated hereunder. 
 10. The TALF Undertakings. The Company and NFC make the
Undertakings set forth and defined in Exhibit A hereto for the benefit of each of the Initial Purchasers, in its capacity as TALF Agent. 
 11. This Agreement may be amended or modified only with the prior written consent of the parties hereto. 
  

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 12. Each of the Company and NFC acknowledges that each of the Initial Purchasers is acting
solely in the capacity of arm’s length contractual counterparty to the Company and NFC with respect to the offer of Notes contemplated hereby (including in connection with determining the terms of the offer) and not as a financial advisor or a
fiduciary to, or an agent of, the Company, NFC or any other Person. Additionally, none of the Initial Purchasers is advising the Company, NFC or any other Person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction.
The Company and NFC shall consult with their own advisors concerning such matters and shall be responsible for making their own independent investigation and appraisal of the transactions contemplated hereby, and none of the Initial Purchasers shall
have any responsibility or liability to the Company or NFC with respect thereto. Any review by any of the Initial Purchasers of the Company, NFC, the Master Owner Trust, the Dealer Note Trust, the transactions contemplated hereby or other matters
relating to such transactions will be performed solely for the benefit of the Initial Purchasers and shall not be on behalf of the Company, NFC or any other party. 
 13. The representations, covenants and agreements made by the Company and NFC in this Agreement to each of the Initial Purchasers in its capacity as a TALF Agent shall only extend to each such Initial
Purchaser in its capacity as a TALF Agent in connection with the performance by such Initial Purchaser in its capacity as a TALF Agent of its obligations under TALF, and do not extend to and may not be relied upon by any direct or indirect purchaser
or owner of the Notes, or any other Person claiming by or through any such purchaser or owner or any third party beneficiary, for any purpose or in any circumstance, whether on the theory that the Initial Purchaser in its capacity as a TALF Agent
has acted or acts as their agent or otherwise. For the avoidance of doubt, the limitations contained in this Section 13 shall apply only to an Initial Purchaser in its capacity as a TALF Agent as such and shall not be construed to limit
the representations, covenants and agreements made herein by the Company or NFC to any Initial Purchaser in its capacity as an Initial Purchaser. 
 14. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given if mailed or telecopied. Notices to the Representative shall be given to the
Representative, at Banc of America Securities LLC, Bank of America Plaza, 101 South Tyron Street, Attention: John J. Muller, Charlotte, North Carolina 28255, NC1-002-29-01 (telecopy: (704) 208-3156). Notices to the Company shall be given to it
at 425 N. Martingale Road, Suite 1800, Attention: General Counsel, Schaumburg, Illinois, 60173 (telecopy: (630) 753-4410). 
 15. Notwithstanding anything herein to the contrary, the Company, NFC, the Initial Purchasers and any other taxpayer that participates in the transactions contemplated hereby may disclose without limitation of any kind, any information with
respect to the “tax treatment” and “tax structure” (in each case, within the meaning of Treasury Regulation Section 1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions or other
tax analyses) that are provided to any of the foregoing relating to such tax treatment and tax structure; provided that with respect to any document or similar item that in either case contains information concerning the tax treatment or tax
structure of the transaction as well as other information, this sentence shall only apply to such portions of the document or similar item that relate to the tax treatment or tax structure of the Notes and transactions contemplated hereby. It

  

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is hereby confirmed that each of the foregoing has been so authorized since the commencement of discussions regarding the transactions contemplated hereby. 
 16. Notwithstanding anything in this Agreement to the contrary, this Agreement constitutes the entire agreement and understanding among the
parties hereto with respect to the purchase and sale of the above-referenced Notes. 
 17. This Agreement shall inure to the
benefit of and be binding upon the Initial Purchasers, NFC and the Company and any controlling person referred to herein and their respective successors, heirs and legal representatives. Nothing expressed or mentioned in this Agreement is intended
or shall be construed to give any person, firm or corporation, other than the Initial Purchasers, NFC and the Company and their respective successors, heirs and legal representatives and the controlling persons and officers and directors referred to
in Section 6 and their heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein contained. No purchaser of Notes from the Initial Purchasers shall be
deemed to be a successor merely by reason of such purchase. 
 18. This Agreement may be signed in counterparts, each of which
shall be an original and all of which together shall constitute one and the same instrument. 
 19. THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PROVISIONS THEREOF WHICH WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAW OF ANY JURISDICTION OTHER THAN THE INTERNAL
LAWS OF THE STATE OF NEW YORK. 
 20. If one or more of the Initial Purchasers shall fail at the Closing Date to purchase the
Notes which it or they are obligated to purchase under this Agreement (all such unpurchased Notes, collectively, the “Defaulted Securities”), the Initial Purchasers shall have the right, but not the obligation, within 24 hours
thereafter, to make arrangements for any purchaser to purchase all, but not less than all, of the Defaulted Securities in such amounts as may be agreed upon and upon the terms herein set forth; provided, however, that if the Initial
Purchasers shall not have completed such arrangements within such 24-hour period, then: (a) if the aggregate principal amount of Defaulted Securities does not exceed 10% of the total aggregate principal amount of the Notes, each non-defaulting
Initial Purchaser shall be obligated to purchase its ratable share of the full amount thereof; or (b) if the aggregate principal amount of Defaulted Securities exceeds 10% of the total aggregate principal amount of the Notes, this Agreement
shall terminate without liability on the part of any non-defaulting Initial Purchaser. No action pursuant to this Section shall relieve any defaulting Initial Purchaser from liability in respect of its default. In the event of any such default which
does not result in a termination of this Agreement, either the Initial Purchasers or the Company shall have the right to postpone the Closing Date for a period not exceeding seven days in order to effect any required changes in the Final Offering
Memorandum or in any other documents or arrangement. 
  

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 If the foregoing is in accordance with your understanding, please sign and return four
counterparts hereof. 
  

					
	Very truly yours,
	
	NAVISTAR FINANCIAL SECURITIES CORPORATION
		
	By:	 	 /s/ William V. McMenamin

		 	Name:	 	William V. McMenamin
		 	Title:	 	V.P., CFO & Treasurer
	
	NAVISTAR FINANCIAL CORPORATION
		
	By:	 	 /s/ William V. McMenamin

		 	Name:	 	William V. McMenamin
		 	Title:	 	V.P., CFO & Treasurer

 Accepted: February 4, 2010 
 BANC OF AMERICA SECURITIES LLC 
  

					
	By:	 	 /s/ Carl Anderson

		 	Name:	 	Carl Anderson
		 	Title:	 	Director

 For itself and as Representative of the 
 Several Initial Purchasers 
 Address: 
 Heart Tower 
 214 North Tryon Street 
 Charlotte, NC 28255-0001 
 Mail Code NC1-027-21-04

 SCHEDULE I 
  

										
	 Initial Purchasers
	  	Principal Amount of
Class A Notes	  	Principal Amount of
Class B Notes	  	Principal Amount of
Class C Notes
	 Banc of America Securities LLC
	  	$	140,400,000	  	$	11,480,000	  	$	13,160,000
	 Scotia Capital (USA) Inc.
	  	$	60,100,000	  	$	4,920,000	  	$	5,640,000
	 Comerica Securities, Inc.
	  	$	14,300,000	  			  		
	 UBS Securities LLC
	  			  			  		
		  	 	 	  	 	 	  	 	 
	 Total
	  	$	214,800,000	  	$	16,400,000	  	$	18,800,000
		  	 	 	  	 	 	  	 	 

  

 I-1 

 ANNEX A 
 Additional Time of Sale Information 
  

	1.	Roadshow presentation, dated January 22, 2010. 

  

	2.	Issuer Information for transmission on Bloomberg. 

  

 A-1 

 EXHIBIT A 
 SECTION 1. Definitions. For purposes of this Exhibit A, capitalized terms used but not defined in this Agreement (including
this Exhibit A) shall have the meanings specified in the Master Loan and Security Agreement (the “MLSA”), by and among the Federal Reserve Bank of New York, as lender (“Lender”), the TALF agents party thereto
(the “TALF Agents” and each, individually, a “TALF Agent”) and The Bank of New York Mellon, as administrator and as custodian, executed in connection with the Term Asset-Backed Securities Loan Facility (the
“TALF Program”), or if not defined therein, in the Note Purchase Agreement, dated as of February 4, 2010, by Navistar Financial Securities Corporation and Navistar Financial Corporation and accepted and agreed to by Banc of
America Securities LLC, as Representative of the Initial Purchasers. In addition, as used in this Exhibit A, the following terms shall have the following meanings (such definition to be applicable to both the singular and plural forms of such
terms): 
 “Agent Indemnified Party” means a Relevant Agent and each person, if any, who controls any Relevant
Agent within the meaning of either Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended. 
 “Company Parties” means Navistar Financial Securities Corporation and Navistar Financial Corporation. 
 “Relevant Agent” means any TALF Agent that is acting as agent on behalf of a Borrower with respect to a Relevant Loan. 
 “Relevant Loan” means any Loan for which any of the Notes have been pledged to Lender as Collateral and for which the Loan
Closing Date is the date of issuance of the Class A Notes. 
 “TALF Provisions” means the portions of the
Final Offering Memorandum that describe, or are relevant to, the qualification of the Class A Notes as Eligible Collateral, including without limitation the descriptions of the terms of the Class A Notes and the assets generating
collections or other funds from which the Class A Notes are to be paid. 
 “Undertaking” means the
representations, warranties, covenants and indemnities of the Company Parties set forth in this Exhibit A. 
 SECTION 2.
The Company Parties hereby represent, warrant and agree, for the benefit of each Relevant Agent, as follows: 
 (a) Each
Class A Note constitutes Eligible Collateral. 
 (b) The certifications contained in the TALF Certification are true and
correct, and the Company Parties will promptly perform their obligations under the TALF Certification. 
 (c) No statement or
information contained in the TALF Provisions is untrue as to any material fact or omits any material fact necessary to make the same not misleading. 
  

 A-1 

 SECTION 3. Indemnity. (a) Each Company Party, jointly and severally, will
indemnify and hold harmless each Agent Indemnified Party from and against any and all losses, claims, damages and liabilities, joint or several, or actions in respect thereof (and including all reasonable fees, legal or otherwise incurred in
connection therewith and/or the defense thereof), to which the Agent Indemnified Parties or any of them may become subject, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon a
Company Party’s breach of this Undertaking, the TALF Certification or the Indemnity Undertaking; provided, however, that a Company Party shall not be liable to an Agent Indemnified Party for such Agent Indemnified Party’s gross negligence,
willful misconduct or fraudulent actions as determined by a court of competent jurisdiction in a final, nonappealable order. 
 (b) Promptly after receipt by an Agent Indemnified Party of notice of the commencement of any action or proceeding, such Agent Indemnified Party will notify each Company Party in writing of the commencement thereof; but the omission so to
notify any such Company Party will not relieve it or any of them from any liability which they or any of them may have to any Agent Indemnified Party unless (and only to the extent that) such failure to give notice results in the forfeiture of
material rights or defenses of a Company Party, and shall not relieve such Company Parties from any liability it may have to an Agent Indemnified Parties otherwise than under this paragraph 3(b). Upon receiving such notice, the Company Parties will
be entitled to participate in and, to the extent they shall elect, to assume, at the Company Parties expense, the defense of the matter with counsel reasonably satisfactory to the applicable Agent Indemnified Parties. After written notice from the
Company Parties of their election to assume the defense thereof, the Company Parties will not be liable to the Agent Indemnified Parties under this Section 3 for any legal expenses subsequently incurred by the Agent Indemnified Parties
in connection with the defense of the matter unless (i) the defendants in the matter include both the Agent Indemnified Parties and the Company Parties and the Agent Indemnified Parties shall have reasonably concluded that a conflict may arise
between the positions of the Agent Indemnified Parties and the Company Parties in conducting the defense of any such matter or that there may be legal defenses available to it and/or other indemnified parties which are different from or additional
to those available to the Company Parties, (ii) the Company Parties shall not have retained counsel reasonably satisfactory to the Agent Indemnified Parties within a reasonable time after notice of commencement of the matter or (iii) the
employment of counsel by the Agent Indemnified Parties has been authorized in writing by the Company Parties. In any circumstance described in the preceding sentence, the Agent Indemnified Parties may select separate counsel to assume defense of the
matter on behalf of the Agent Indemnified Parties, the fees and expenses of which shall be at the expense of the Company Parties. In no event shall the Company Parties be liable for the fees and expenses of more than one counsel separate from their
own counsel for all Agent Indemnified Parties in connection with any one action or separate similar actions in the same jurisdiction arising out of the same general allegations or circumstances. No Company Parties shall be liable for any settlement
of any matter effected without its prior written consent (which consent shall not be unreasonably withheld), unless the settlement is entered into more than thirty (30) business days after the Agent Indemnified Parties have requested the
Company Parties to reimburse the Agent Indemnified Parties for fees and expenses of counsel as contemplated by the preceding sentence, and the Company Parties have not so reimbursed the Agent Indemnified Parties prior to the date of such settlement.
No Company Parties shall, without the prior written consent of the Agent Indemnified Parties, effect any settlement,

  

 A-2 

 
compromise or consent to the entry of judgment in any pending matter in which indemnity was or could have been sought hereunder by such Agent Indemnified Parties, unless such settlement,
compromise or consent (i) includes an unconditional release of such Agent Indemnified Parties from all liability arising out of such matter and (ii) does not include a statement as to, or an admission of, fault, culpability or failure to
act by or on behalf of any Agent Indemnified Parties. Upon written demand from an Agent Indemnified Party, each Company Party will pay promptly amounts owed under this indemnity, free and clear of any right of offset, counterclaim or other
deduction. 
 (c) This indemnity remains an obligation of each of the Company Parties notwithstanding termination of the MLSA or
the TALF or payment in full of the Relevant Loans, and is binding upon each of the Company Parties’ successors and assigns. Each Agent Indemnified Party’s right to indemnification hereunder shall be enforceable against each of the Company
Parties directly, without any obligation to first proceed against any third party for whom such Agent Indemnified Party may act, and irrespective of any rights or recourse that any of the Company Parties may have against any such third party.

 SECTION 4. The Company Parties hereby acknowledge (a) the existence of the MLSA and the terms thereof and (b) that
the Relevant Agents are obtaining the Relevant Loans, pledging the Class A Notes as collateral therefor and undertaking obligations, in each case as agents on behalf of the Borrowers with respect thereto in reliance on the representations,
warranties, covenants and indemnities of the Company Parties set forth in this Undertaking. This Undertaking is for the sole benefit of the Agent Indemnified Parties in connection with the performance by a Related Agent of its obligations with
respect to the TALF, and may not be relied upon by (i) the Agent Indemnified Parties for any other purpose or (ii) any direct or indirect purchaser or owner of the Notes, or any other Person claiming by or through any such purchaser or
owner or any third party beneficiary, for any purpose or in any circumstance, whether on theory that the TALF Agents act as their agents or otherwise. 
  

 A-3

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