Document:

Form of Registrant's Minimum Return Equity Appreciation Growth

 THIS NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS NOTE IS NOT EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF
THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE. 
 Unless this Note is presented by an authorized representative of The Depository Trust Company, a New York corporation (55 Water
Street, New York, New York) (“DTC”), to the Corporation or its agent for registration of transfer, exchange or payment, and this Note is registered in the name of Cede & Co. or such other name as requested by an authorized
representative of DTC, and unless any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein. 
 THIS NOTE IS NOT A SAVINGS ACCOUNT OR A DEPOSIT, IS NOT AN OBLIGATION OF OR GUARANTEED BY ANY BANKING OR NONBANKING AFFILIATE OF BANK OF AMERICA
CORPORATION, AND IS NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY. 
  

			
	 REGISTERED
	 	$ 4,000,000               
		
	 NUMBER __I-_____
	 	CUSIP 06050 MGE1

 BANK OF AMERICA CORPORATION 
 MEDIUM-TERM SENIOR NOTE, SERIES K 
 (Indexed Note) 
  

	 ̈	SEE THE ATTACHED PRINCIPAL REPAYMENT AMOUNT RIDER for a description of the PRINCIPAL REPAYMENT AMOUNT and its method of calculation. 

  

	x	SEE THE ATTACHED SUPPLEMENTAL REDEMPTION AMOUNT RIDER for a description of the SUPPLEMENTAL REDEMPTION AMOUNT and its method of calculation 

  

	ORIGINAL	ISSUE DATE: October 26, 2006 

	MATURITY	DATE: October 28, 2011 

	CALCULATION	AGENT: Banc of America Securities LLC (“BAS”) 

	ADDITIONAL	TERMS: See Supplemental Redemption Amount Rider 

	MINIMUM	DENOMINATIONS: $1,000 and whole multiples of $1,000. 

 BANK OF AMERICA CORPORATION, a Delaware corporation (the “Corporation,” which term includes any successor corporation under the Indenture referred to on the reverse hereof), for value received, hereby promises to pay on the
Maturity Date to CEDE & CO., as nominee for The Depository Trust Company, or its registered assigns, (i) the principal amount of FOUR MILLION DOLLARS ($4,000,000) and (ii) that supplemental redemption amount (the
“Supplemental Redemption Amount”) calculated according to the terms of the attached Supplemental Redemption Amount Rider. 
 Any
principal or Supplemental Redemption Amount not punctually paid or duly provided for shall be payable as provided in the Indenture. As used in this Note, “business day” means any weekday that is not a legal holiday in New York, New York,
Charlotte, North Carolina, or any other place of payment of this Note, and that is not a date on which banking institutions in those cities or any other place of payment with respect to this Note are authorized or required by law or regulation to be
closed; but that is not a day on which the principal securities market (or markets) on which the constituent stocks of the AMEX Biotechnology Index, are traded is closed. 

 The principal and Supplemental Redemption Amount on this Note are payable in immediately available funds
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 at the office or agency of the Corporation designated as provided in the Indenture; provided,
however, that the principal or Supplemental Redemption Amount may be paid, at the option of the Corporation, by check mailed to the person entitled thereto at his address last appearing on the registry books of the Corporation relating to the
Notes. Notwithstanding the preceding sentence, payments of the principal and Supplemental Redemption Amount payable on the Maturity Date will be made by wire transfer of immediately available funds to a designated account maintained in the United
States upon (i) receipt of written notice by the Issuing and Paying Agent (as described on the reverse hereof) from the registered holder of this Note not less than one business day prior to the due date of such principal and
(ii) presentation of this Note to The Bank of New York, as Issuing and Paying Agent, 101 Barclay Street, New York, New York 10286 (the “Corporate Trust Office”). 
 For both this Note and Notes issued in certificated form, the payment of principal of and any other amounts due on or after the Maturity Date will be
made only upon the presentation and surrender of such Note at the office of the Trustee or successor thereof, and with respect to this Note, in accordance with the procedures of DTC. 
 References herein to “U.S. dollars,” “U.S.$,” or “$” are to the coin or currency of the United States at the time of
payment is legal tender for the payment of public and private debts. 
 Reference is hereby made to the further provisions of this Note set
forth on the reverse hereof and on the attached Rider, which shall have the same effect as though fully set forth at this place. 
 Unless
the certificate of authentication hereon has been executed by the Trustee or an authenticating agent on behalf of the Trustee by manual signature, this Note shall not be entitled to any benefit under the Indenture or be valid or obligatory for any
purpose. 
  

 2 

 IN WITNESS WHEREOF, the Corporation has caused this Note to be duly executed, by manual or facsimile
signature, under its corporate seal or a facsimile thereof. 
  

			
	BANK OF AMERICA CORPORATION
		
	By:	 	  
	Title:	 	Senior Vice President

  
  

			
	 ATTEST:

		
	By:	 	  
	Title:	 	Assistant Secretary

  

 3 

 Certificate of Authentication 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
 Dated: October 26, 2006 
  

			
	 THE BANK OF NEW YORK,
 as Trustee

		
	By:	 	  
		 	Authorized Signatory

  

 4 

 [Reverse of Note] 
 BANK OF AMERICA CORPORATION 
 MEDIUM-TERM SENIOR NOTE, SERIES K 
 (Indexed Note) 
 SECTION 1. General.
This Note is one of a duly authorized series of Securities of the Corporation unlimited in aggregate principal amount (herein called the “Notes”) issued and to be issued under an Indenture dated as of January 1, 1995 (herein called
the “Indenture”), between the Corporation (successor in interest to NationsBank Corporation) and The Bank of New York, as Trustee (successor in interest to U.S. Bank Trust National Association, successor trustee to BankAmerica National
Trust Company, herein called the “Trustee,” which term includes any successor trustee under the Indenture), as supplemented by a First Supplemental Indenture dated as of September 18, 1998, a Second Supplemental Indenture dated as of
May 7, 2001, a Third Supplemental Indenture dated as of July 28, 2004, and a Fourth Supplemental Indenture dated April 28, 2006, to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of
the respective rights thereunder of the Corporation, the Trustee, and the holders of the Notes, and the terms upon which the Notes are, and are to be, authenticated and delivered. This Note is also one of the Notes designated as the
Corporation’s Senior Medium-Term Notes, Series K, initially limited in aggregate principal amount to $10,000,000,000. The Trustee initially shall act as Security Registrar, Transfer Agent, and Issuing and Paying Agent in connection with the
Notes. The Notes may bear different dates, mature at different times, bear interest at different rates, and vary in such other ways as are provided in the Indenture. 
 SECTION 2. No Sinking Fund. This Note is not subject to any sinking fund. 
 SECTION 3.
Redemption. This Note is not redeemable prior to the Maturity Date. 
 SECTION 5. Defeasance. The provisions of Article
Fourteen of the Indenture do not apply to Securities of this Series. 
 SECTION 6. Events of Default. If an Event of Default (defined
in the Indenture as (a) the Corporation’s failure to pay the principal of (or premium, if any, on) the Notes; (b) the Corporation’s failure to pay interest on the Notes within 30 calendar days after the same becomes due;
(c) the Corporation’s breach of its other covenants contained in this Note or in the Indenture, which breach is not cured within 90 calendar days after written notice by the Trustee or the holders of at least 25% in outstanding principal
amount of all Securities issued under the Indenture and affected thereby; and (d) certain events involving the bankruptcy, insolvency or liquidation of the Corporation) shall occur with respect to the Notes, the principal of all the Notes may
be declared due and payable in the manner and with the effect provided in the Indenture. 
 SECTION 7. Modifications and Waivers. The
Indenture permits, with certain exceptions as therein provided, the amendment of the Indenture and the modification of the rights and obligations of the Corporation and the rights of the holders of the Notes under the Indenture at any time by the
Corporation with the consent of the holders of not less than 66 2/3% in aggregate principal amount of the Notes then outstanding and all other Securities then outstanding under 

  

 5 

 
the Indenture and affected by such amendment and modification. The Indenture also contains provisions permitting the holders of a majority in aggregate
principal amount of the Notes then outstanding and all other Securities then outstanding under the Indenture and affected thereby, on behalf of the holders of all such Securities, to waive compliance by the Corporation with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the holder of this Note shall be conclusive and binding upon such holder and upon all future holders of this Note and of any Note issued
upon the registration of transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Note. 
 No recourse shall be had for the payment of the principal of, premium on (if any), or other amounts payable on this Note, or for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the
Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer, or director, as such, past, present, or future, of the Corporation or any predecessor or successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for issue hereof, expressly waived and released. 
 SECTION 8. Obligations Unconditional. No reference herein to the Indenture and no provision of this Note or of the Indenture shall alter or impair
the obligation of the Corporation, which is absolute and unconditional, to pay the principal of, premium (if any), and other amounts payable on this Note at the times, place and rate, and in the coin or currency, herein prescribed. 
 SECTION 9. Authorized Denominations. The Notes are issuable only as registered Notes without coupons, and unless otherwise set forth above, only
in denominations of $1,000 and whole multiples of $1,000. As provided in the Indenture, and subject to certain limitations therein set forth, Notes are exchangeable for a like aggregate principal amount of Notes of different authorized
denominations, as requested by the holder surrendering the same. 
 SECTION 10. Registration of Transfer. As provided in the Indenture
and subject to certain limitations as therein set forth, the transfer of this Note is registrable in the register maintained by the Registrar, upon surrender of this Note for registration of transfer at the office or agency of the Corporation
designated by it pursuant to the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Corporation and the Trustee or the Security Registrar requiring such written instrument of transfer duly
executed by, the registered holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes of this series, of authorized denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees. 
 This Note is being issued by means of a book-entry system with no physical distribution of certificates to be
made except as provided in the Indenture. The book-entry system maintained by DTC will evidence ownership of the Notes, with transfers of ownership effected on the records of DTC and its participants pursuant to rules and procedures established by
DTC and its participants. The Corporation will recognize Cede & Co., as nominee of DTC, while the registered holder of the Notes, as the owner of the Notes for all purposes, including payment of principal and the Supplemental Redemption
Amount, notices and voting. Transfer of principal 

  

 6 

 
and the Supplemental Redemption Amount to participants of DTC will be the responsibility of DTC, and transfer of principal and the Supplemental Redemption
Amount payable to beneficial owners of the Notes by participants of DTC will be the responsibility of such participants and other nominees of such beneficial owners. So long as the book-entry system is in effect, the selection of any Notes to be
redeemed will be determined by DTC pursuant to rules and procedures established by DTC and its participants. The Corporation will not be responsible or liable for such transfers or payments or for maintaining, supervising or reviewing the records
maintained by DTC, its participants, or persons acting through such participants. 
 This Note may be exchanged in whole, but not in part,
for security-printed certificated Notes, only if (i) DTC notifies the Corporation or the Trustee that it is unwilling or unable to continue to act as depository for this Note in global form or if at any time DTC ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, and in either such case, a successor depository is not appointed by the Corporation within 60 calendar days, or (ii) the Corporation executes and delivers to the Trustee a
written notification that this Note in global form shall be so exchangeable, or (iii) an Event of Default occurs and is continuing with respect to this Note in global form. In any such instance, an owner of a beneficial interest in this Note
will be entitled to physical delivery in certificated form of Notes equal in principal amount to such beneficial interest and to have such Notes registered in its name. Unless otherwise set forth above, Notes so issued in certificated form will be
issued in authorized denominations only and will be issued in registered form only, without coupons. 
 No service charge shall be made for
any such registration of transfer or exchange, but the Corporation may require payment of a sum sufficient to cover any tax, assessment, or other governmental charge, including, without limitation, any withholding tax, payable in connection
therewith. 
 Prior to due presentment of this Note for registration of transfer, the Corporation, the Trustee, the Issuing and Paying Agent,
and any agent of the Corporation, the Trustee or any Issuing and Paying Agent may treat the person in whose name this Note is registered as the owner hereof for all purposes. 
 SECTION 11. Defined Terms. All terms used in this Note which are not defined herein but are defined in the Indenture shall have the meanings
assigned to them in the Indenture. 
 SECTION 12. Governing Law. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAWS. 
  

 7 

 ABBREVIATIONS 
 The following abbreviations, when used in the inscription on the face of the within Note, shall be construed as though they were written out in full according to applicable laws or regulations: 
  

			
	 TEN COM—
	 	as tenants in common
	 TEN ENT—
	 	as tenants by the entireties
	 JT TEN—
	 	as joint tenants with right of survivorship and not as tenants in common
	UNIF GIFT MIN ACT— ________________________ as Custodian for ___________________________
	     (Cust)
                                        
                        (Minor)

 Under Uniform Gifts to Minors Act 
 _____________________________ 
 (State) 
 Additional abbreviations may also be used though not in the above list. 
  

_____________________________ 
 ASSIGNMENT

 FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto 
 [PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS 
 INCLUDING ZIP CODE OF ASSIGNEE] 

________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 Please Insert Social Security or Other 
         Identifying Number of Assignee: ____________________________ 
 the within Note and all rights
thereunder, hereby irrevocably constituting and appointing __________________________________ Attorney to transfer said Note on the books of the Corporation, with full power of substitution in the premises. 
  

	Dated:	_________________________
________                                       
 _________________________________ 

 NOTICE: The signature to this assignment must correspond with the name as it appears upon the face of
the within Note in every particular, without alteration or enlargement or any change whatever and must be guaranteed. 
  

 8 

 BANK OF AMERICA CORPORATION 
 Medium-Term Senior Note, Series K 
 SUPPLEMENTAL REDEMPTION AMOUNT RIDER

 General 
 This Note is part of a
series of medium-term notes entitled “Medium-Term Notes, Series K” issued under the Indenture, as described in the Prospectus dated April 14, 2004 and Prospectus Supplement dated April 15, 2004 and is designated as the Bank
of America Corporation Minimum Return Equity Appreciation Growth LinkEd Securities “Index EAGLES®,” due October 28, 2011, Linked to the AMEX Biotechnology Index. Certain capitalized terms used herein have the meanings ascribed to them in the Prospectus and the Prospectus Supplement. 
 Payment at Maturity; Supplemental Redemption Amount 
 At maturity, the holder of the Note will receive the principal amount of this Note. The holder of the Note also will receive the Supplemental Redemption Amount, which will not be less than 5.00% of the principal amount of this Note at
maturity. This minimum amount is called the “Minimum Supplemental Redemption Amount.” The Supplemental Redemption Amount will be based primarily upon the performance of the AMEX Biotechnology Index during the term of this Note and will be
determined by the Calculation Agent in the manner described below. 
 The Calculation Agent will determine the Supplemental Redemption Amount
payable to the holder of the Note at maturity by reference to the periodic returns of the AMEX Biotechnology Index during the following 20 “Reference Periods”: 
  

									
	 2006/07
	 	 2007/08
	 	 2008/09
	 	 2009/10
	 	 2010/11

	 10/23/06-1/23/07
	 	10/23/07-1/23/08	 	10/23/08-1/23/09	 	10/23/09-1/23/10	 	10/23/10-1/23/11
	 1/23/07-4/23/07
	 	1/23/08-4/23/08	 	1/23/09-4/23/09	 	1/23/10-4/23/10	 	1/23/11-4/23/11
	 4/23/07-7/23/07
	 	4/23/08-7/23/08	 	4/23/09-7/23/09	 	4/23/10-7/23/10	 	4/23/11-7/23/11
	 7/23/07-10/23/07
	 	7/23/08-10/23/08	 	7/23/09-10/23/09	 	7/23/10-10/23/10	 	7/23/11-10/23/11

 This Note was priced on October 23, 2006, or the “pricing date.” The pricing date
is the first day of the first Reference Period. 
 The last day of each Reference Period is referred to as a “Reset Date.” On each
Reset Date, the Calculation Agent will determine the “Periodic Return” of the AMEX Biotechnology Index for the Reference Period then ended by applying the following formula: 
  

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 (Ending Level—Starting Level) 
 Starting Level 
 The result will be rounded to the nearest ten-thousandth of a decimal
place and then expressed as a percentage. 
 The “Starting Level” for the initial Reference Period is the closing level of the AMEX
Biotechnology Index on the pricing date, or 738.91, and the “Starting Level” for each subsequent Reference Period is the Ending Level for the immediately preceding Reference Period. The “Ending Level” for each Reference Period is
the closing level of the AMEX Biotechnology Index on the applicable Reset Date, or if that day is not a business day (as defined above), the closing level of the AMEX Biotechnology Index on the next following business day. 
 On the pricing date, the Corporation set a cap of 7.00%, or the “Return Cap,” which limits any increases in the Periodic Return of the AMEX
Biotechnology Index to that rate. For any Reference Period in which the Periodic Return is greater than the Return Cap, the Periodic Return for that Reference Period will be deemed to be the Return Cap. 
 After the close of the market on the last Reset Date, the Calculation Agent will determine the Supplemental Redemption Amount, which will not be less
than the Minimum Supplemental Redemption Amount, based on the following formula: 
 Principal Amount x Index Return 
 The “Index Return” is the compounded value of the 20 Periodic Returns computed in the following manner: 
 [The product of (1.00 + the Periodic Return) for each Reference Period] – 1.00 
 The Index Return will be rounded to the nearest ten-thousandth and then expressed as a percentage. 
 The Supplemental Redemption Amount will be calculated after the close of the market on the last Reset Date. The period of time between the last Reset
Date and the Maturity Date is not part of a Reference Period, and, therefore, changes in the AMEX Biotechnology Index during that period will not affect the Supplemental Redemption Amount payable to the holder of this Note at maturity. If the
calculation of the Supplemental Redemption Amount results in an amount that is less than the Minimum Supplemental Redemption Amount, then the Corporation will pay the holder of this Note a Supplemental Redemption Amount equal to the Minimum
Supplemental Redemption Amount. 
 Event of Default 
 Upon the occurrence of an Event of Default (as defined in the Indenture), the holder of this Note only will be entitled to receive the principal amount of the Note, and will not be entitled to payment of the
Supplemental Redemption Amount. 
  

 10 

 Market Disruption 
 Each of the following will be a “Market Disruption Event” if, in the sole opinion of the Calculation Agent, that event materially affects the AMEX Biotechnology Index: 
 (a) the suspension, material limitation, or absence of the trading of a material number of stocks included in the AMEX Biotechnology Index; 
 (b) the suspension or material limitation of the trading of stocks on one or more stock exchanges on which stocks included in the AMEX Biotechnology Index
are quoted; 
 (c) a breakdown or failure in the price and trade reporting systems of the respective primary markets on which the stocks
included in the AMEX Biotechnology Index are quoted, as a result of which the reported trading prices for the affected stocks, during the last one-half hour before the close of trading in that market are materially inaccurate; or 
 (d) the suspension or material limitation of the trading of (1) options or futures relating to the AMEX Biotechnology Index on any options or futures
exchanges or (2) options or futures generally. 
 For purposes of determining whether a Market Disruption Event has
occurred: 
 (a) a limitation on the number of hours or days of trading will not be a Market Disruption Event if it results from an announced
change in the regular business hours of the relevant exchange; 
 (b) a limitation on trading imposed by reason of the movements in price
exceeding the levels permitted by any relevant exchange will be a Market Disruption Event; 
 (c) a decision to permanently discontinue
trading in the relevant futures or options contracts will not constitute a Market Disruption Event; and 
 (d) an absence of trading on an
exchange or quotation system will not include any time when that exchange or quotation system is closed for trading under ordinary circumstances. 
 If a Market Disruption Event occurs or is continuing on a day that would otherwise be a Reset Date, then the Calculation Agent instead will use the closing level of the AMEX Biotechnology Index on the first business day after that day on
which no Market Disruption Event occurs or is continuing. In no event, however, will any Reset Date be postponed by more than five business days. If any Reset Date is postponed to the last possible day, but a Market Disruption Event occurs or is
continuing on that day, that day nevertheless will be the Reset Date, and the Calculation Agent will make a good faith estimate of the closing level of the AMEX Biotechnology Index based upon its assessment of the level of the AMEX Biotechnology
Index at that time. If the last scheduled Reset Date is postponed due to a Market Disruption Event, the Maturity Date for this Note also will be postponed by the same number of business days. 
  

 11 

 Discontinuance of the AMEX Biotechnology Index; Alteration of Method of Calculation 
 If the American Stock Exchange LLC (the “AMEX”) discontinues publication of the AMEX Biotechnology Index and the AMEX or another entity
publishes a successor or substitute index that the Calculation Agent determines, in its sole discretion, is comparable to the discontinued AMEX Biotechnology Index (the new index being referred to as a “Successor Index”), then the relevant
closing levels shall be determined by reference to the Successor Index at the close of trading on the New York Stock Exchange, the AMEX, The Nasdaq National Market, or the relevant exchange or market for the constituent stocks of the Successor
Index. 
 If the Calculation Agent selects a Successor Index, the Calculation Agent immediately shall notify the Corporation and the Trustee,
and the Trustee will provide written notice of a change to the holders of this Note within three business days of selection. 
 If the AMEX
discontinues publication of the AMEX Biotechnology Index, and the Calculation Agent determines that no Successor Index is available, then the Calculation Agent will notify the Corporation and the Trustee and shall calculate the appropriate closing
levels. These calculations by the Calculation Agent will be in accordance with the formula for and method of calculating the AMEX Biotechnology Index last in effect prior to that discontinuance. If a Successor Index is selected or the Calculation
Agent calculates a level as a substitute for the AMEX Biotechnology Index, that Successor Index or level will be substituted for the AMEX Biotechnology Index for all purposes. 
 If at any time the method of calculating the AMEX Biotechnology Index or a Successor Index, or the level of that index, is changed in a material respect,
or if the AMEX Biotechnology Index or a Successor Index in any other way is modified so that it does not, in the opinion of the Calculation Agent, fairly represent the level of the AMEX Biotechnology Index or the Successor Index had those changes or
modifications not been made, then, from and after that time, the Calculation Agent will notify the Corporation and the Trustee. The Calculation Agent will make those calculations and adjustments as, in the good faith judgment of the Calculation
Agent, may be necessary in order to arrive at a level of a stock index comparable to the AMEX Biotechnology Index or the Successor Index, as the case may be, as if those changes or modifications had not been made, and calculate the closing levels
with reference to the AMEX Biotechnology Index or the Successor Index, as adjusted. Accordingly, if the method of calculating the AMEX Biotechnology Index or a Successor Index is modified so that the level of such index is a fraction of what it
would have been if it had not been modified (e.g., due to a split in the index), then the Calculation Agent shall adjust that index in order to arrive at a level of the AMEX Biotechnology Index or the Successor Index as if it had not been modified
(e.g., as if the split had not occurred). 
  

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 Role of the Calculation Agent 
 The Calculation Agent has the sole discretion to make all determinations regarding this Note, including determinations regarding the Index Return, the Periodic Return, the Supplemental Redemption Amount, Market
Disruption Events, Successor Indices, and business days. Absent manifest error, all determinations of the Calculation Agent will be final and binding on the holder of this Note and the Corporation, without any liability on the part of the
Calculation Agent. 
 The Corporation has initially appointed its affiliate, Banc of America Securities LLC, as the Calculation Agent, but
the Corporation may change the Calculation Agent at any time without notifying the holder of this Note. 
  

 13Note Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 NOTE PURCHASE AGREEMENT 
 dated as of 
 October 20, 2006 
 among 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES
CORPORATION, 
 as Seller 
 THUNDER BAY FUNDING, LLC, 
 as the Conduit Investor 
 ROYAL BANK OF CANADA, 
 as Agent for the Investors 
 and 
 NAVISTAR FINANCIAL CORPORATION, 
 Individually and as Servicer 
 NAVISTAR
FINANCIAL 2006-RBC OWNER TRUST, 
 Series 2006-RBC Floating Rate Asset Backed Notes 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE I Definitions
	  	1
			
	 SECTION 1.01.
	  	 Defined Terms
	  	1
			
	 SECTION 1.02.
	  	 Terms Generally
	  	9
			
	 SECTION 1.03.
	  	 Computation of Time Periods
	  	9
		
	 ARTICLE II Purchase of the Purchased Note
	  	9
			
	 SECTION 2.01.
	  	 Purchase of the Purchased Note
	  	9
			
	 SECTION 2.02.
	  	 The Note; Etc.
	  	10
			
	 SECTION 2.03.
	  	 Calculation of Interest; Etc.
	  	10
			
	 SECTION 2.04.
	  	 Sharing of Payments, Etc.
	  	11
		
	 ARTICLE III Representations and Warranties
	  	11
			
	 SECTION 3.01.
	  	 Representation and Warranties
	  	11
		
	 ARTICLE IV Conditions
	  	16
			
	 SECTION 4.01.
	  	 Conditions Precedent
	  	16
		
	 ARTICLE V Covenants of the Seller and Servicer
	  	17
			
	 SECTION 5.01.
	  	 Access
	  	17
			
	 SECTION 5.02.
	  	 Information from NFC
	  	17
			
	 SECTION 5.03.
	  	 Security Interests; Further Assurances
	  	18
			
	 SECTION 5.04.
	  	 Conduct of Business
	  	18
			
	 SECTION 5.05.
	  	 Compliance with Laws
	  	18
			
	 SECTION 5.06.
	  	 Replacement of Trustee
	  	18
			
	 SECTION 5.07.
	  	 Compliance with Opinion Assumptions
	  	18
			
	 SECTION 5.08.
	  	 Further Covenants
	  	18
			
	 SECTION 5.09.
	  	 Amendments
	  	18
		
	 ARTICLE VI Indemnification
	  	19
			
	 SECTION 6.01.
	  	 Indemnities by the Seller and the Servicer
	  	19
			
	 SECTION 6.02.
	  	 Increased Cost and Reduced Return
	  	19
			
	 SECTION 6.03.
	  	 Other Costs and Expenses
	  	20
		
	 ARTICLE VII The Agent
	  	20
			
	 SECTION 7.01.
	  	 Authorization and Action
	  	20
			
	 SECTION 7.02.
	  	 Delegation of Duties
	  	21

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

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

 Exhibits 
  

	Exhibit	A - Documents to be Delivered to the Agent on or before the Closing Date 

  

 -ii- 

 NOTE PURCHASE AGREEMENT dated as of October 20, 2006 (as amended, supplemented or otherwise modified
from time to time, the “Agreement”), among: 
 NAVISTAR FINANCIAL RETAIL RECEIVABLES CORPORATION, a Delaware corporation, as
Seller (the “Seller”); 
 THUNDER BAY FUNDING, LLC, a Delaware limited liability company, as the Conduit Investor;

 ROYAL BANK OF CANADA, a Canadian chartered bank acting through a New York Branch (“Royal Bank”), as Agent for the
Investors; and 
 NAVISTAR FINANCIAL CORPORATION, a Delaware corporation, individually (“NFC”) and as Servicer (together
with its successors and assigns, the “Servicer”). 
 RECITALS 
 WHEREAS, the Trust and the Indenture Trustee are party to an Indenture dated as of October 20, 2006 (as amended, restated, supplemented or otherwise
modified from time to time, the “Indenture”), pursuant to which the Seller has authorized the issuance of the Series 2006-RBC Floating Rate Asset Backed Note (the “Note”); and 
 WHEREAS, on the Closing Date, the Seller intends to sell the Purchased Note to the Agent for the benefit of the Conduit Investor and the other Investors
and the Conduit Investor and the other Investors desire to acquire the Purchased Note. 
 Accordingly, the parties hereto agree as follows:

 ARTICLE I 
 Definitions

 SECTION 1.01. Defined Terms. Terms used herein but not otherwise defined herein have the respective meanings given to such
terms in Part I of Appendix A to the Pooling Agreement. As used in this Agreement, the following terms have the meanings specified below: 
 “Agent” means Royal Bank in its capacity as agent for the Investors, and its successors and assigns appointed pursuant to Section 7.09. 
 “Agent-Related Person” means the Agent, together with its Affiliates, and the officers, directors, employees, agents and attorneys-in-fact of such Persons and their respective Affiliates. 

“Agreement” is defined in the preamble. 
 “Alternate Rate” for any Fixed Period for any Funding Tranche means an interest rate per annum equal to the sum of (x) Applicable Margin per annum and (y) the Eurodollar Rate for such Fixed
Period; provided, however, that in the case of 

 (i) any Fixed Period existing on or after the first day of which the Agent shall have
been notified by the Conduit Investor or any Program Support Provider that: 
 (w) the introduction of or any change in or in
the interpretation of any law or regulation makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful, for the Conduit Investor or such Program Support Provider to fund any Funding Tranche (based on the
Eurodollar Rate) set forth above (and the Conduit Investor or such Program Support Provider shall not have subsequently notified the Agent that such circumstances no longer exist), 
 (x) U.S. dollar deposits in the London interbank market in the relevant amounts and for the relevant portion of such Fixed Period are not
available, 
 (y) adequate and reasonable means do not exist for ascertaining LIBOR for such Fixed Period, or 
 (z) LIBOR does not accurately reflect the cost to the Conduit Investor or such Program Support Provider (as conclusively determined by the
Conduit Investor or such Program Support Provider (or by the Agent on its behalf)) of maintaining the applicable Funding Tranche during such Fixed Period; 
 (ii) any Fixed Period of one to (and including) 13 days, 
 (iii) any Fixed Period relating to
a Funding Tranche which is less than $1,000,000, and 
 (iv) any Fixed Period with respect to which the Alternate Rate, for
any reason, becomes applicable on notice to the Agent of less than three (3) Business Days, 
 the “Alternate Rate” for
each such Fixed Period shall be an interest rate per annum equal to the Corporate Base Rate in effect on each day of such Fixed Period. The “Alternate Rate” for any day on or after the occurrence of an Event of Default shall be an
interest rate equal to 2.0% per annum above the Corporate Base Rate in effect on such day. 
 “Applicable
Margin” has the meaning specified in the Fee Letter. 
 “Assignee Rating Criteria” means a short term debt rating
of “A-1” or higher from Standard & Poor’s, “P-1” from Moody’s and, if applicable, “F-1” or higher from Fitch. 
 “Bankruptcy Code” means the Bankruptcy Reform Act of 1978, 11 U.S.C. §§ 101 et seq. 
 “Breakage Payment” is defined in Section 2.03(b). 
 “Commercial
Paper” means short-term promissory notes issued or to be issued by the Conduit Investor to fund its investments in accounts receivable or other financial assets. 
 “Commission” is defined in Section 3.01(c). 
  

 2 

 “Conduit Assignee” means any commercial paper conduit administered by Royal Bank or any
of its Affiliates and designated by Royal Bank from time to time to accept an assignment from the Conduit Investor of all or a portion of its rights and obligations hereunder. 
 “Conduit Investor” means Thunder Bay Funding, LLC, a Delaware limited liability company and any successor thereto and any assignee
thereof, including any Conduit Assignee. 
 “Corporate Base Rate” means, for any day a fluctuating rate per annum equal to
the higher of (a) the Federal Funds Rate for such day, plus 0.50% and (b) the rate of interest in effect for such day as publicly announced from time to time by the Agent as its “prime rate”. The “prime rate” is
a rate set by the Agent based upon various factors including the Agent’s costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below
such announced rate. Any change in the prime rate announced by the Agent shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Corporate Services Provider” is defined in Section 8.11. 
 “CP Rate” for any Fixed Period for any Funding Tranche means, to the extent a Conduit Investor funds such Funding Tranche for such Fixed
Period by issuing Commercial Paper, the per annum rate equivalent to the “weighted average cost” (as defined below) related to the issuance of Commercial Paper that are allocated, in whole or in part, by the Conduit Investor or the Agent
to fund or maintain such Funding Tranche (and which may also be allocated in part to the funding of other Funding Tranches hereunder or of other assets of the Conduit Investor); provided, however, that if any component of such rate is
a discount rate, in calculating the “CP Rate” for such Funding Tranche for such Fixed Period, the Conduit Investor shall for such component use the rate resulting from converting such discount rate to an interest bearing equivalent
rate per annum. As used in this definition, a Conduit Investor’s “weighted average cost” shall consist of (w) the actual interest rate (or discount) paid to purchasers of the Conduit Investor’s Commercial Paper,
together with the commissions of placement agents and dealers in respect of such Commercial Paper, to the extent such commissions are allocated, in whole or in part, to such Commercial Paper by a Conduit Investor or the Agent, (x) certain
documentation and transaction costs associated with the issuance of such Commercial Paper, (y) any incremental carrying costs incurred with respect to Commercial Paper maturing on dates other than those on which corresponding funds are received
by the Conduit Investor, and (z) other borrowings by the Conduit Investor (other than under any Program Support Agreement), including borrowings to fund small or odd dollar amounts that are not easily accommodated in the commercial paper
market. 
 “Day Count Fraction” means, as to any Funding Tranche for any Fixed Period, a fraction (a) the numerator of
which is the number of days in such Fixed Period and (b) the denominator of which is 360 (or, with respect to any Funding Tranche which accrues interest by reference to the Corporate Base Rate, the actual number of days in the related calendar
year). 
 “Distribution Period” means, initially, the period from, and including, the Closing Date to, but excluding, the
first Distribution Date and thereafter the period from, and including, each Distribution Date to, but excluding, the next Distribution Date. 
  

 3 

 “Distribution Date” is defined in the Indenture. 
 “Eurodollar Rate” means, for any Fixed Period, an interest rate per annum (rounded upward to the nearest 1/1000th of 1%) determined
pursuant to the following formula: 
  

			
	 Eurodollar Rate =    
	  	LIBOR
		  	1.00 - Eurodollar Reserve Percentage

 Where, 
 “Eurodollar Reserve Percentage” means, for any Fixed Period, the maximum reserve percentage (expressed as a decimal, rounded upward to the nearest 1/1000th of 1%) in effect on the date LIBOR for such
Fixed Period is determined under regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to
Eurocurrency funding (currently referred to as “Eurocurrency liabilities”) having a term comparable to such Fixed Period; and 
 “LIBOR” means the rate per annum equal to the applicable British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters Screen FRBD as of 11:00 a.m. (London time) on the second
Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed Period, provided that, (i) if Reuters Screen FRBD is not available to the Agent for any
reason, LIBOR for such Fixed Period shall instead be the applicable British Bankers’ Association Interest Settlement Rate for deposits in U.S. dollars as reported by any other generally recognized financial information service as of 11:00 a.m.
(London time) on the second Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed Period, and (ii) if no such British Bankers’ Association
Interest Settlement Rate is available to the Agent, LIBOR for such Fixed period shall instead be the rate determined by the Agent to be the rate at which Royal Bank offers to place deposits in U.S. dollars with first-class banks in the London
interbank market at approximately 11:00 a.m. (London time) on the second Business Day prior to the commencement of such Fixed Period in the approximate amount of the portion of the Funded Amount associated with such Fixed period. 
 “Event of Bankruptcy” means, with respect to any Person, (a) that such Person (i) shall generally not pay its debts as such
debts become due or (ii) shall admit in writing its inability to pay its debts generally or (iii) shall make a general assignment for the benefit of creditors; (b) any proceeding shall be instituted by or against such Person seeking
to adjudicate it as bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief
of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it or any substantial 

  

 4 

 
part of its property; or (c) such Person shall take any corporate, partnership or other similar appropriate action to authorize any of the actions set
forth in the preceding clauses (a) or (b) . 
 “Federal Funds Rate” means, for any day, the rate per
annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as
published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate charged to the Agent on such
day on such transactions as determined by it. 
 “Fee Letter” means the agreement, dated as of the Closing Date, among the
Seller, the Servicer and the Agent. 
 “Fitch” means Fitch, Inc. and its successors in interest. 
 “Fixed Period” means, unless otherwise mutually agreed by the Agent and the Conduit Investor, (a) with respect to any Funding
Tranche funded by the issuance of Commercial Paper, (i) initially the period commencing on (and including) the date of the initial purchase or funding of such Funding Tranche and ending on (and including) the last day of the current calendar
month, and (ii) thereafter, each period commencing on (and including) the first day after the last day of the immediately preceding Fixed Period for such Funding Tranche and ending on (and including) the last day of the current calendar month
and (b) with respect to any Funding Tranche not funded by the issuance of Commercial Paper, (i) initially the period commencing on (and including) the date of the initial purchase or funding of such Funding Tranche and ending on (but
excluding) the next following Distribution Date and (ii) thereafter, each period commencing on (and including) the first day after the last day of the immediately preceding Fixed Period for such Funding Tranche and ending on (and excluding) the
next following Distribution Date; provided, that 
 (i) any Fixed Period with respect to any Funding Tranche not funded
by the issuance of Commercial Paper which would otherwise end on a day which is not a Business Day shall be extended to the next succeeding Business Day; provided, however, if interest in respect of such Fixed Period is computed by
reference to the Eurodollar Rate, and such Fixed Period would otherwise end on a day which is not a Business Day, and there is no subsequent Business Day in the same calendar month as such day, such Fixed Period shall end on the next preceding
Business Day; 
 (ii) in the case of any Fixed Period for any Funding Tranche which commences before the Final Scheduled
Termination Date and would otherwise end on a date occurring after the Final Scheduled Termination Date, such Fixed Period shall end on such Final Scheduled Termination Date and the duration of each Fixed Period which commences on or after the Final
Scheduled Termination Date shall be of such duration as shall be selected by the Agent; 
  

 5 

 (iii) any Fixed Period in respect of which interest is computed by reference to the CP
Rate may be terminated at the election of, and upon notice thereof to the Seller by, the Agent any time, in which case the Funding Tranche allocated to such terminated Fixed Period shall be allocated to a new Fixed Period commencing on (and
including) the date of such termination and ending on (but excluding) the next following Distribution Date, and shall accrue interest at the Corporate Base Rate. 
 “Funded Amount” means on any Business Day, an amount equal to the result of (a) the Initial Invested Amount minus (b) the aggregate principal amount of principal payments made to the
Noteholder prior to such day; provided, that the Funded Amount shall be restored or reinstated to the extent any such principal payment so received and applied is at any time rescinded, returned or refunded for any reason. 
 “Funding Rate” means, with respect to any Fixed Period and any Funding Tranche, (a) to the extent the Conduit Investor is funding
such Funding Tranche during such Fixed Period through the issuance of Commercial Paper, the CP Rate, and (b) to the extent any Investor is not funding such Funding Tranche through the issuance of Commercial Paper, a rate per annum (expressed as
a percentage and an interest yield equivalent and calculated on the basis of a 360-day year and the actual days elapsed) equal to the Alternate Rate. 
 “Funding Tranche” means, any time, each portion of the Funded Amount allocated to the same Fixed Period and accruing interest by reference to the same Funding Rate at such time. 
 “Governmental Actions” means any and all consents, approvals, permits, orders, authorizations, waivers, exceptions, variances,
exemptions or licenses of, or registrations, declarations or filings with, any Governmental Authority required under any Governmental Rules. 
 “Governmental Authority” means the United States of America, any state or other political subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government and having jurisdiction over the applicable Person. 
 “Governmental Rules” means any and all laws,
statutes, codes, rules, regulations, ordinances, orders, writs, decrees and injunctions, of any Governmental Authority and any and all legally binding conditions, standards, prohibitions, requirements and judgments of any Governmental Authority.

 “Indemnified Amounts” has the meaning specified in Section 6.01. 
 “Indemnified Parties” has the meaning specified in Section 6.01. 
 “Indenture” is defined in the first paragraph of the recitals. 
 “Indenture Trustee” is defined in the Indenture. 
 “Initial Invested Amount” means $374,921,626.15. 
  

 6 

 “Investors” means the Conduit Investor and/or the Program Support Providers, as the
context may require. 
 “Issuer” or “Trust” means Navistar Financial 2006-RBC Owner Trust, a Delaware
statutory trust. 
 “Material Adverse Effect” means a material adverse effect on (i) the business, results of
operations or financial condition or the material properties or assets of NFC or NFRRC, (ii) the ability of NFC or NFRRC to perform its obligations hereunder or under any other Transaction Document or (iii) the interests of the Agent or
any Investor hereunder. 
 “Moody’s” means Moody’s Investors Service, Inc., or any successor that is a nationally
recognized statistical rating organization. 
 “NFC” is defined in the preamble. 
 “NFRRC” means Navistar Financial Retail Receivables Corporation, a Delaware corporation, and its successors and permitted assigns.

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

 7 

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

 “Other Obligations” means the fees under the Fee Letter and any other amounts payable to the Agent or any Investor under
or in connection with this Agreement or any other Transaction Document (other than principal or interest in respect of the Notes), including, without limitation, all Breakage Payments and all amounts payable from time to time pursuant to Article
VI. 
 “Program Support Agreement” means and includes any agreement entered into by any Program Support Provider
providing for the issuance of one or more letters of credit for the account of the Conduit Investor, the issuance of one or more surety bonds for which the Conduit Investor is obligated to reimburse the applicable Program Support Provider for any
drawings thereunder, the sale by the Conduit Investor to any Program Support Provider of the Purchased Notes (or portions thereof or participations therein) and/or the making of loans and/or other extensions of credit to the Conduit Investor in
connection with the Conduit Investor’s commercial paper program, together with any letter of credit, surety bond or other instrument issued thereunder, whether any of the foregoing is for the purpose of providing credit support or liquidity to
the Conduit Investor. 
 “Program Support Provider” means and includes any Person now or hereafter extending credit or
having a commitment to extend credit to or for the account of, or to make purchases from, the Conduit Investor or issuing a letter of credit, surety bond or other instrument to support any obligations arising under or in connection with the Conduit
Investor’s commercial paper program. 
 “Purchased Note” means the Note, in the maximum aggregate principal amount of
$374,921,626.15 to be issued to the Agent on behalf of the Investors pursuant to the Indenture and Section 2.01 hereof. 
 “Recipient” has the meaning specified in Section 2.04. 
 “Royal Bank” is defined in
the preamble. 
 “Seller” is defined in the preamble . 
 “Servicer” is defined in the preamble . 
 “Standard & Poor’s” or “S&P” means Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., or any successor that is a nationally recognized
statistical rating organization. 
  

 8 

 “Transaction Documents” means the “Basic Documents” as defined in Part I of
Appendix A to the Pooling Agreement. 
 “Weighted Average Funded Amount” means, with respect to any Funding Tranche for any
Fixed Period, the quotient of (i) the summation of the portion of the Funded Amount allocated to such Funding Tranche determined as of each day in such Fixed Period, divided by (ii) the number of days in such Fixed Period. 
 SECTION 1.02. Terms Generally. All terms defined directly or by incorporation herein shall have the defined meanings when used in any certificate
or other document delivered pursuant hereto unless otherwise defined therein. For purposes of this Agreement and all such certificates and other documents, unless the context otherwise requires: (a) accounting terms not otherwise defined
herein, and accounting terms partly defined herein to the extent not defined, shall have the respective meanings given to them under, and shall be construed in accordance with, generally accepted accounting principles in effect in the United States
from time to time; (b) terms used in Article 9 of the applicable UCC as in effect from time to time, and not specifically defined herein, are used herein as defined in such Article 9; (c) references to any amount as on deposit or
outstanding on any particular date means such amount at the close of business on such day; (d) the words “hereof,” “herein” and “hereunder” and words of similar import refer to this Agreement (or the certificate or
other document in which they are used) as a whole and not to any particular provision of this Agreement (or such certificate or document); (e) references to any Article, Section, Schedule or Exhibit are references to Articles, Sections,
Schedules and Exhibits in or to this Agreement (or the certificate or other document in which the reference is made) and references to any paragraph, subsection, clause or other subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (f) the term “including” means “including without limitation”; (g) references to any law refer to that law as amended from time to time and include
any successor law; (h) references to any agreement refer to that agreement as from time to time amended or supplemented or as the terms of such agreement are waived or modified in accordance with its terms; (i) references to any Person
include that Person’s successors and permitted assigns; and (j) headings are for purposes of reference only and shall not otherwise affect the meaning or interpretation of any provision hereof. 
 SECTION 1.03. Computation of Time Periods. Unless otherwise stated in this Agreement, in the computation of a period of time from a specified date
to a later specified date, the word “from” means “from and including”, the words “to” and “until” each means “to but excluding”, and the word “within” means “from and excluding a
specified date and to and including a later specified date”. 
 ARTICLE II 
 Purchase of the Purchased Note 
 SECTION 2.01. Purchase of the Purchased
Note. On the terms and subject to the conditions set forth in this Agreement, and in reliance on the covenants, representations, warranties and agreements herein and therein set forth, the Seller shall cause to be issued, and shall cause the
Indenture Trustee to authenticate and deliver to the Agent and the Agent shall 

  

 9 

 
purchase the Purchased Note, issued on the Closing Date, on behalf of the Investors. The purchase price payable for the Purchased Note shall be equal to the
Initial Invested Amount. The Agent shall hold the Purchased Note on behalf of the Investors pro rata in accordance with their respective outstanding portions (if any) of the Funded Amount funded by them from time to time. The Purchased Note so
issued shall be dated the Closing Date, registered in the name of the Agent and duly authenticated in accordance with the provisions of the Indenture. Without limiting any other provision of this Agreement, the issuance of the Purchased Note and the
funding of the Funded Amount thereunder on the Closing Date is subject to the satisfaction of the conditions precedent set forth in Article IV. Upon such issuance, (i) the Agent shall thereby acquire the Purchased Note, and (ii) the
Agent and the Investors shall become subject to the terms and conditions set forth herein and the Indenture. 
 SECTION 2.02. The Note;
Etc. The funding of the Initial Invested Amount shall be evidenced by the Purchased Note and shall be governed by and subject to the Indenture. All payments to be made on the Note shall be made in accordance with the Indenture and the terms of
this Agreement. The sole Holder of the Purchased Note shall be the Agent, which shall hold such Note for the benefit of the Investors. Except as otherwise required in the Indenture, all payments to be made on the Note shall be made by wire transfer
of immediately available funds to the account set forth below the Agent’s signature to this Agreement (or to such other account as the Agent may specify from time to time in writing to the Seller and the Indenture Trustee). 
 SECTION 2.03. Calculation of Interest; Etc. 
 (a) On or before the second Business Day after the end of each Monthly Period, the Agent shall calculate for the related Distribution Date, the Noteholders’ Interest Distributable Amount payable on such Distribution Date and provide
such calculation to the Servicer in writing. If any Funding Tranche begins to accrue interest at a Funding Rate other than the CP Rate after the date the Agent provides the Noteholders’ Interest Distributable Amount calculation for any
Distribution Date, the Agent shall promptly provide the Servicer a calculation of the interest that will accrue on such Funding Tranche and be included in the definition of “Noteholders’ Interest Distributable Amount” for such
Distribution Date. The parties acknowledge that the interest calculation set forth in clause (C) of the definition of “Noteholders’ Interest Distributable Amount” shall be an estimate. If the estimated accruals exceed the
actual accruals, the Agent shall reimburse such excess. If the actual accruals exceed the estimated accruals, the Seller shall reimburse the Agent. 
 (b) If (i) any distribution of principal is made with respect to any Funding Tranche with a Fixed Period and a fixed interest rate other than on a Distribution Date and (ii) as a consequence of such distribution the interest paid
by an Investor to providers of funds to it to fund that Funding Tranche exceeds returns earned by such Investor with respect to such Funding Tranceh, factoring in actual returns earned during the Fixed Period and assuming redeployment of such funds
in highly rated short-term money market instruments from the date of principal distribution through the end of the Fixed Period, then, upon written notice (including a detailed calculation of such Breakage Payment) from the Agent to the Servicer,
such Investor shall be entitled to receive additional amounts in the amount of such excess (each, a “Breakage Payment”) on the date of such distribution, so long as such written notice is received not later than noon, New York City
time, on the first Business Day immediately preceding such distribution. 
  

 10 

 (c) On each date the principal amount of the Purchased Note is reduced, a duly authorized officer,
employee or agent of the Agent shall make appropriate notations in its books and records of the applicable rates of interest and the amount of each such reduction, as applicable. Each of the Servicer, the Seller and each Investor authorizes each
duly authorized officer, employee and agent of the Agent to make such notations on the books and records as aforesaid and such notation made in accordance with the foregoing authority shall be binding on the Servicer, the Seller and each Investor
absent manifest error. 
 (d) Whenever any amount is paid pursuant to the Indenture to the Agent in connection with the Purchased Note, the
Agent shall promptly allocate such amounts among the applicable Investors and pay, or cause to be paid, out of such funds received by it, to each applicable Investor, its applicable share of such amount; provided, that if any such amount paid
to the Agent is insufficient to pay the amount due to each Investor in respect of such amounts, the Agent shall distribute the amount it has received to each Investor pro rata based on the amounts owed to each Investor and forthwith report the
amount of such deficiency to the Seller, the Indenture Trustee and the Servicer. 
 SECTION 2.04. Sharing of Payments, Etc. If any
Investor (for purposes of this Section only, being a “Recipient”) shall obtain any payment (whether voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of any Note Interest owned by it in
excess of its ratable share of payments on account of the applicable Funded Amount obtained by the Investors entitled thereto, such Recipient shall forthwith purchase from the Investors entitled to a share of such amount participations in the
applicable Note Interests owned by such Persons as shall be necessary to cause such Recipient to share the excess payment ratably with each such other Person entitled thereto; provided , that if all or any portion of such excess payment is
thereafter recovered from such Recipient, such purchase from each such other Person shall be rescinded and each such other Person shall repay to the Recipient the purchase price paid by such Recipient for such participation to the extent of such
recovery, together with an amount equal to such other Person’s ratable share (according to the proportion of (a) the amount of such other Person’s required payment to (b) the total amount so recovered from the Recipient) of any
interest or other amount paid or payable by the Recipient in respect of the total amount so recovered. 
 ARTICLE III 
 Representations and Warranties 
 SECTION 3.01. Representation and Warranties. 
 (a) The Seller hereby makes the following representations and warranties to
the Agent and the Investors as of the Closing Date and the Investors and the Agent shall be deemed to have relied on such representations and warranties in purchasing the Purchased Note on the Closing Date: 
 (i) the Seller repeats and reaffirms that the representations and warranties of the Seller set forth in Section 3.01 of the Pooling Agreement and
represents and warrants that such representations and warranties are true and correct; 
  

 11 

 (ii) each of the Transaction Documents executed by the Seller has been duly authorized, executed and
delivered by the Seller, and is the valid and legally binding obligation of the Seller, enforceable against the Seller in accordance with its terms, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought;

 (iii) the Purchased Note has been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the
Indenture, and delivered to and paid for in accordance with this Agreement, will be duly and validly issued and outstanding and will be entitled to the benefits of the Indenture, except that the enforcement thereof may be subject to
(x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any
proceeding therefor may be brought; 
 (iv) there is no pending or, to the Seller’s knowledge, threatened action, suit or proceeding by
or against the Seller before any Governmental Authority or any arbitrator (w) asserting the invalidity of this Agreement, any other Transaction Document or the Purchased Note, (x) seeking to prevent the issuance of the Purchased Note or
the consummation of any of the transactions contemplated by this Agreement or any other Transaction Document, (y) that might materially and adversely affect the performance by the Seller or the Trust of its obligations under, or the validity or
enforceability of, this Agreement, any other Transaction Document or the Purchased Note or (z) that if determined adversely as to the Seller or the Trust would have a Material Adverse Effect; 
 (v) except for those caused by the failure of NFC and its affiliates to deliver its financial statements and related financial information for the for
the fiscal years ended October 31, 2005 and October 31, 2006, or for the fiscal quarters ended January 31, April 30 and July 31 of 2006, or for the fiscal quarters ended January 31 and April 30 of 2007, in
each case, prior to the earliest of (1) July 31, 2007, (2) five (5) Business Days after the filing thereof with the Commission and (3) the date on which such financial statements are (or any of them is) required to be
delivered pursuant to the Credit Agreement, the Seller (x) is not in violation of its Certificate of Incorporation or By-Laws and (y) is not in breach or violation of any of the terms or provisions of, or with the giving of notice or lapse
of time, or both, would be in default under, any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, partnership agreement, or other agreement or instrument to which the Seller is a party or by which it may be bound or to
which any of its properties or assets may be subject, except for such violations or defaults that would not have a Material Adverse Effect; 
 (vi) any taxes, fees and other charges of Governmental Authorities applicable to the Seller in connection with the execution, delivery and performance by the Seller of the Transaction Documents or otherwise applicable to the Seller in
connection with the Trust have 

  

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

 (xiv) (x) the Seller’s chief executive office and principal place of business is, and has been at all times during the five years
preceding the date of this Agreement, located in the State of Illinois and (y) the Seller is a “registered organization” (as defined in Section 9-102 of the UCC) incorporated in the State of Delaware and, for purposes of Article
9 of the UCC, NFC is, and has been at all times during the five years preceding the date of this Agreement, located in the State of Delaware; 
  

 13 

 (b) NFC hereby makes the following representations and warranties to the Investors and the Agent as of
the Closing Date and the Investors and the Agent shall be deemed to have relied on such representations and warranties in purchasing the Purchased Note on the Closing Date: 
 (i) NFC repeats and reaffirms to the Investors and the Agent the representations, warranties and covenants of the Servicer set forth in Section 5.01
of the Servicing Agreement and the representations and warranties of NFC set forth in Section 5.01 of the Purchase Agreement and the representations and warranties of NFC set forth in Section 3.02 of the Purchase Agreement and represents
and warrants that all such representations and warranties are true and correct as of such date; 
 (ii) no Governmental Action which has not
been obtained is required by or with respect to NFC in connection with any of the Transaction Documents, except any such failure which would not have a Material Adverse Effect; 
 (iii) each of the Transaction Documents has been duly authorized, executed and delivered by NFC, and is the valid and legally binding obligation of NFC,
enforceable against NFC in accordance with its terms, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating to creditors’
rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (iv) the Purchased Note has been duly and validly authorized, and, when executed and authenticated in accordance with the terms of the Indenture, and when delivered to and paid for in accordance with this Agreement, will be duly and validly
issued and outstanding and will be entitled to the benefits of the Indenture, except that the enforcement thereof may be subject to (x) bankruptcy, insolvency, reorganization, moratorium or other similar laws now or hereafter in effect relating
to creditors’ rights generally and (y) general principles of equity and the discretion of the court before which any proceeding therefor may be brought; 
 (v) there is no pending or, to NFC’s knowledge, threatened action, suit or proceeding by or against NFC or the Seller before any Governmental Authority or any arbitrator (w) asserting the invalidity of this
Agreement, any other Transaction Document or the Purchased Note, (x) seeking to prevent the issuance of the Purchased Note or the consummation of any of the transactions contemplated by this Agreement or any other Transaction Document,
(y) that might materially and adversely affect the performance by any of NFC, the Seller or the Trust of its obligations under, or the validity or enforceability of, this Agreement, any other Transaction Document or the Purchased Note or
(z) that if determined adversely as to NFC, the Seller or the Trust would have a Material Adverse Effect; 
 (vi) except for those
caused by the failure of NFC and its affiliates to deliver its financial statements and related financial information for the for the fiscal years ended October 31, 2005 and October 31, 2006, or for the fiscal quarters ended
January 31, April 30 and July 31 of 2006, or for the fiscal quarters ended January 31 and April 30 of 2007, in each case, prior to the earliest of (1) July 31, 2007, (2) five (5) Business Days after
the filing thereof with the Commission and (3) the date on which such financial statements are (or any of them is) required to be delivered pursuant to the Credit Agreement, NFC (x) is not in violation of its Certificate of Incorporation
or By-Laws and (y) is not in breach or violation of any of the terms 

  

 14 

 
or provisions of, or with the giving of notice or lapse of time, or both, would be in default under, any contract, indenture, mortgage, deed of trust, loan
agreement, note, lease, partnership agreement, or other agreement or instrument to which NFC is a party or by which it may be bound or to which any of its properties or assets may be subject, except for such violations or defaults that would not
have a Material Adverse Effect; 
 (vii) any taxes, fees and other charges of Governmental Authorities applicable to NFC in connection with
the execution, delivery and performance by NFC of the Transaction Documents or otherwise applicable to NFC in connection with the Trust have been paid or will be paid by NFC at or prior to the Closing Date to the extent then due, except for any such
failures to pay which, individually and in the aggregate, would not have a Material Adverse Effect; 
 (viii) the Trust has been duly created
and is validly existing under the laws of the State of Delaware; 
 (ix) on the date hereof, NFC is not insolvent or the subject of any
insolvency proceeding; 
 (x) no written information furnished or to be furnished by NFC or its Affiliates, agents or representatives to the
Investors or the Agent for purposes of or in connection with this Agreement, including, without limitation, any reports delivered pursuant to Section 5.02 and any information relating to the Receivables and NFC’s retail receivable
financing business, is or shall be inaccurate in any material respect, or contains or shall contain any material misstatement of fact, or omits or shall omit to state a material fact or any fact necessary to make the statements contained therein not
misleading, in each case as of the date such information was or shall be stated or certified, and such information heretofore furnished remains true and correct in all material respects as of the date such information was delivered by NFC or any of
its Affiliates, agents or representatives to the Investors or the Agent. 
 (xi) (x) NFC’s chief executive office and principal place of
business is, and has been at all times during the five (5) years preceding the date of this Agreement, located in the State of Illinois and (y) NFC is a “registered organization” (as defined in Section 9-102 of the UCC)
incorporated in the State of Delaware and, for purposes of Article 9 of the UCC, NFC is, and has been at all times during the five years preceding the date of this Agreement, located in the State of Delaware. 
 (c) The Note purchased by the Agent on behalf of the Investors pursuant to this Agreement will be acquired for investment only and not with a view
to any public distribution thereof, and no Investor will offer to sell or otherwise dispose of its interest in the Note so acquired by it (or any interest therein) in violation of any of the registration requirements of the Act or any applicable
state or other securities laws. The Agent and each Investor acknowledges that it has no right to require the Seller to register under the Act or any other securities law the Note to be acquired by the Agent on behalf of such Investor pursuant to
this Agreement. 
  

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 The Investors and the Agent have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of an investment in the Note and the Investors are able to bear the economic risk of such investment. The Investors and the Agent have reviewed the Pooling Agreement, the Servicing Agreement and the
Indenture (including the schedule and exhibits thereto) and have had the opportunity to perform due diligence with respect thereto and to ask questions of and receive answers from the Seller and its representatives concerning the Seller, the Trust
and the Note. Each of the Investors and the Agent is an “accredited investor” as defined in Rule 501, promulgated by the Securities and Exchange Commission (the “Commission”) under the Securities Act of 1933, as amended.

 (d) None of the Investors or the Agent is required to register as an “investment company” nor are the Investors or the Agent
controlled by an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 
 ARTICLE IV

 Conditions 
 SECTION
4.01. Conditions Precedent. 
 (a) The obligation of the Agent, for the benefit of the Investors to purchase the Purchased Note is
subject to the conditions precedent that (i) the Agent shall have received on or before the Closing Date each of the Transactions Documents, (ii) the Agent shall have received the certificates, opinions, lien searches and other items
listed on Exhibit A hereto, (iii) the Agent shall have received all fees and expenses required to be paid on such date pursuant to the terms of this Agreement and the Fee Letter and (iv) all conditions precedent under the Indenture
and the other Transaction Documents shall have been satisfied. 
 (b) The funding of the Initial Invested Amount shall be subject to the
further conditions precedent that: 
 (i) the Agent has received copies of all settlement statements and all reports required to be delivered
by the Servicer to the pursuant to Section 2.17 of the Servicing Agreement; 
 (ii) each of the representations and warranties of the
Seller and the Servicer made herein and of the Trust made in the Transaction Documents shall be true and correct in all material respects as of the Closing Date (except to the extent they expressly relate to an earlier or later time); 
 (iii) the Seller, the Trust and the Servicer shall be in compliance in all material respects with all of their respective covenants contained in the
Transaction Documents; 
 (iv) no Event of Default shall have occurred and be continuing and no Event of Default shall occur as a result of
funding the Initial Invested Amount; and 
 (v) the Aggregate Starting Receivables Balance shall equal or exceed $396,742,461.53. 

 

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 ARTICLE V 
 Covenants of the Seller and Servicer 
 SECTION 5.01. Access. So long as the Purchased Note
remains outstanding, each of NFC and the Seller will, at any time from time to time during regular business hours with reasonable notice to the Seller and NFC, permit the Investors or the Agent, or their agents or representatives to: 
 (a) examine all books, records and documents (including computer tapes and disks) in the possession or under the control of the Seller or NFC relating to
the Receivables, and 
 (b) visit the offices and property of the Seller or NFC for the purpose of examining such materials described in
clause (a) above; 
 it being understood that except as provided in Section 8.12, any information obtained by an Investor or the
Agent pursuant to this Section 5.01 shall be held in confidence by the Investors and the Agent unless and to the extent such information (i) has become available to the public, (ii) is required or requested by any Governmental
Authority or in any court proceeding or (iii) is required by any Governmental Rule. In the case of any disclosure permitted by clause (ii) or (iii) an Investor and the Agent shall use commercially reasonable efforts to
(x) provide the Seller with advance notice of any such disclosure and (y) cooperate with the Seller in limiting the extent or effect of any such disclosure. 
 SECTION 5.02. Information from NFC. So long as the Purchased Note remains outstanding, NFC will furnish to the Agent: 
 (a) a copy of each certificate, opinion, report, statement, notice or other communication (other than investment instructions) furnished by or on behalf of NFC or the Seller to the Indenture Trustee under any
Transaction Document, concurrently therewith, and promptly after receipt thereof, a copy of each notice, demand or other communication received by or on behalf of NFC or the Seller under any Transaction Document; 
 (b) such other information (including financial information), documents, records or reports respecting the Trust, the Receivables, the Seller or, to the
extent it relates to the origination of Receivables or the servicing of the Trust, NFC, as the Investors or Agent may from time to time reasonably request; 
 (c) as soon as available and in any event within (i) 45 days after the end of each of the first three fiscal quarters of any fiscal year and (ii) 120 days after the end of the last fiscal quarter of any
fiscal year, copies of the interim or annual, as applicable, financial statements of NFC, prepared in conformity with generally accepted accounting principles consistently applied; provided, however that NFC shall not be required to deliver its
financial statements for the fiscal years ended October 31, 2005 and October 31, 2006, or for the fiscal quarters ended January 31, April 30 and July 31 of 2006, or for the fiscal quarters ended January 31 and
April 30 of 2007, in each case, until the earliest of (1) July 31, 2007, (2) five (5) Business Days after the filing thereof with the Commission and (3) the date on which such financial statements are (or any of them
is) required to be delivered pursuant to the Credit Agreement; and 
  

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 (d) as soon as possible and in any event within two Business Days after knowledge thereof by a
Responsible Officer of NFC, notice of each Event of Default or event which with the giving of notice or the passage of time or both would constitute an Event of Default. 
 SECTION 5.03. Security Interests; Further Assurances. The Seller will take all action reasonably necessary to maintain the Indenture Trustee’s first priority perfected security interest in the Receivables
and the other Collateral granted pursuant to the Indenture. The Seller agrees to take any and all acts and to execute any and all further instruments necessary or reasonably requested by the Investors or the Agent to more fully effect the purposes
of this Agreement. 
 SECTION 5.04. Conduct of Business. The Seller and the Servicer shall do all things necessary to remain duly
incorporated, validly existing and in good standing as a domestic corporation (or other business entity) in its jurisdiction of incorporation (or formation) and the Seller will cause the Trust to do all things necessary to remain duly organized,
validly existing and in good standing as a statutory trust in the State of Delaware. The Servicer shall maintain all requisite authority to conduct its business in each jurisdiction in which its business requires such authority except, in each case,
where the failure to do so does not, and is not reasonably expected to, have a Material Adverse Effect. 
 SECTION 5.05. Compliance with
Laws. The Seller and the Servicer shall comply in all material respects with all laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may be subject or which are applicable to the Collateral except where
the failure to so comply does not, and is not reasonably expected to, have a Material Adverse Effect. 
 SECTION 5.06. Replacement of
Trustee. If at any time the identity of the Owner Trustee and the Indenture Trustee is such that the Trust Indenture Act would require the replacement of the Owner Trustee and/or the Indenture Trustee (assuming for this purpose that the
Indenture were required to be qualified thereunder), then the Seller shall (or shall cause the Issuer to) so replace the Owner Trustee and/or the Indenture Trustee, as applicable, in each case, within 180 days following the event which precipitated
such replacement, with an Owner Trustee and/or Indenture Trustee, as applicable, reasonably satisfactory to the Agent. 
 SECTION 5.07.
Compliance with Opinion Assumptions. Each of the Seller and NFC shall at all times (as to itself) conduct its affairs in all material respects in accordance with the factual assumptions applicable to it set forth in, and forming the basis of,
the bankruptcy opinion(s) of Kirkland & Ellis delivered pursuant to Section 4.01(a). 
 SECTION 5.08. Further
Covenants. Each of the Seller and NFC will duly observe and perform each of its covenants set forth in the other Transaction Documents in all material respects. 
 SECTION 5.09. Amendments. Neither the Seller nor NFC will make, or permit any Person to make, any amendment, modification or change to, or provide any waiver under any Transaction Document without the prior
written consent of the Agent. 
  

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 ARTICLE VI 
 Indemnification 
 SECTION 6.01. Indemnities by the Seller and the Servicer. Without limiting
any other rights that the Agent or any Investor may have hereunder or under applicable law, (A) the Seller hereby agrees to indemnify (and pay upon demand to) the Agent and each Investor and their respective assigns, officers, directors, agents
and employees (each an “Indemnified Party”) from and against any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts payable, including reasonable attorneys’ fees (which attorneys may
be employees of the Agent or such Investor) and disbursements (all of the foregoing being collectively referred to as “Indemnified Amounts”) awarded against or incurred by any of them arising out of or as a result of this Agreement
or the acquisition, either directly or indirectly, by an Investor of an interest in the Receivables, and (B) the Servicer hereby agrees to indemnify (and pay upon demand to) each Indemnified Party for Indemnified Amounts awarded against or
incurred by any of them arising out of the Servicer’s activities as Servicer excluding, however, in all of the foregoing instances under the preceding clauses (A) and (B) : 
 (i) Indemnified Amounts to the extent such Indemnified Amounts resulted from gross negligence or willful misconduct on the part of the Indemnified Party
seeking indemnification; 
 (ii) Indemnified Amounts to the extent arising from the acts or omissions of a successor Servicer; 
 (iii) Indemnified Amounts to the extent the same includes losses in respect of Receivables that are uncollectible; 
 (iv) taxes imposed by any jurisdiction in which such Indemnified Party is or would be subject to tax (unless such tax arises solely as a result of the
transactions contemplated by this Agreement) on or measured by the overall net income of such Indemnified Party to the extent that the computation of such taxes is consistent with the characterization for income tax purposes of the acquisition by
the Investors of interests in the Purchased Note as a loan or loans by the Investors to Seller secured by the Receivables; or 
 (v) arising
from a breach of any representation or warranty with respect to any Receivable, to the extent such Receivable is repurchased in accordance with the terms of the Pooling Agreement and the Purchase Agreement; 
 provided, however, that nothing contained in this sentence shall limit the liability of the Seller or NFC or limit the recourse of the Agent or the
Investors to the Seller or NFC for amounts otherwise specifically provided to be paid by the Seller or NFC under the terms of this Agreement or any otherTransaction Document. 
 SECTION 6.02. Increased Cost and Reduced Return. If after the date hereof, any Investor shall be charged any fee, expense or increased cost on
account of the adoption of any applicable law, rule or regulation (including any applicable law, rule or regulation regarding capital adequacy) or any change therein, or any change in the interpretation 

  

 19 

 
or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof or any
accounting board or authority (whether or not part of government) which is responsible for the establishment or interpretation of national or international accounting principles, or compliance with any request or directive (whether or not having the
force of law) of any such authority, central bank or comparable agency or accounting board or authority (a “Regulatory Change”): (i) that subjects any Investor to any charge or withholding on or with respect to this Agreement
or any Program Support Agreement or an Investor’s obligations under this Agreement or a Program Support Agreement, or on or with respect to the Receivables, or changes the basis of taxation of payments to any Investor of any amounts payable
under this Agreement or any Program Support Agreement (except for changes in the rate of tax on the overall net income of an Investor) or taxes excluded by Section 6.01 or (ii) that imposes, modifies or deems applicable any reserve,
assessment, insurance charge, special deposit or similar requirement against assets of, deposits with or for the account of an Investor, or credit extended by an Investor pursuant this Agreement or a Program Support Agreement or (iii) that
imposes any other condition the result of which is to increase the cost to an Investor of performing its obligations under this Agreement or a Program Support Agreement, or to reduce the rate of return on an Investor’s capital as a consequence
of its obligations under this Agreement or a Program Support Agreement, or to reduce the amount of any sum received or receivable by an Investor under this Agreement or a Program Support Agreement or to require any payment calculated by reference to
the amount of interests or loans held or interest received by it, then, upon demand by the Agent, Seller shall pay to the Agent, for the benefit of the relevant Investor, such amounts charged to such Investor or such amounts to otherwise compensate
such Investor for such increased cost or such reduction. 
 SECTION 6.03. Other Costs and Expenses. Seller shall pay to the Agent on
demand any and all costs and expenses of the Agent and the Investors, if any, including reasonable counsel fees and expenses in connection with the enforcement of this Agreement and the other documents delivered hereunder and in connection with any
restructuring or workout of this Agreement or such documents, or the administration of this Agreement following an Event of Default. 
 ARTICLE VII 
 The Agent 
 SECTION 7.01. Authorization and Action. Each Investor hereby irrevocably appoints, designates and authorizes the Agent to take such action on its behalf under the provisions of this Agreement and each other Transaction Document and
to exercise such powers and perform such duties as are expressly delegated to the Agent by the terms of this Agreement and any other Transaction Document, together with such other powers as are reasonably incidental thereto. Notwithstanding any
provision to the contrary contained elsewhere in this Agreement or in any other Transaction Document, the Agent shall not have any duties or responsibilities, except those expressly set forth in this Agreement, nor shall the Agent have or be deemed
to have any fiduciary relationship with any Investor, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Transaction Document or otherwise exist against the Agent.
Without limiting the generality of the foregoing sentence, the use of the term “agent” in this Agreement 

  

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with reference to the Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any
applicable law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 
 SECTION 7.02. Delegation of Duties. The Agent may execute any of its duties under this Agreement or any other Transaction Document by or through
agents, employees or attorneys-in-fact and shall be entitled to the advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it
selects with reasonable care. 
 SECTION 7.03. Liability of Agent. No Agent-Related Person shall (i) be liable for any action
taken or omitted to be taken by any of them under or in connection with this Agreement or any other Transaction Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct), or (ii) be responsible
in any manner to any Investor for any recital, statement, representation or warranty made by the Seller, the Servicer, the Indenture Trustee, or any officer thereof, contained in this Agreement or in any other Transaction Document, or in any
certificate, report, statement or other document referred to or provided for in, or received by the Agent under or in connection with, this Agreement or any other Transaction Document, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Transaction Document, or for any failure of the Seller, the Servicer, the Indenture Trustee, or any other party to any Transaction Document to perform its obligations hereunder or thereunder. No
Agent-Related Person shall be under any obligation to any Investor to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Transaction Document, or to
inspect the properties, books or records of the Seller, the Servicer, the Indenture Trustee, or any of their respective Affiliates. 
 SECTION 7.04. Reliance by Agent. (a) The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or
telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by or on behalf of the proper Person or Persons, and upon advice and statements of legal counsel (including
counsel to the Seller, the Servicer and the Indenture Trustee), independent accountants and other experts selected by the Agent. The Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other
Transaction Document unless it shall first receive such advice or concurrence of the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support Providers) as it deems appropriate and, if it so requests, it
shall first be indemnified to its satisfaction by the Investors against any and all liability and expense which may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Transaction Document in accordance with a request or consent of the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support Providers)
or, if required hereunder, all Investors and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Investors. 
  

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 (b) For purposes of determining compliance with the conditions specified in Article IV on the
Closing Date, each Investor that has executed this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter either sent by the Agent to such Investor for consent, approval,
acceptance or satisfaction, or required thereunder to be consented to or approved by or acceptable or satisfactory to such Investor. 
 SECTION 7.05. Notice of Event of Default. The Agent shall not be deemed to have knowledge or notice of the occurrence of an Event of Default or an event which, with the giving of notice or passage of time, or both, would constitute
an Event of Default unless the Agent has received written notice from an Investor referring to this Agreement, describing such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of
Default stating that such notice is a “Notice of Event of Default”. The Agent will notify the Investors of its receipt of any such notice. The Agent shall (subject to Section 7.04 ) take such action with respect to such Event
of Default or event which, with the giving of notice or passage of time, or both, would constitute an Event of Default as may be requested by the Conduit Investor (and, if required by any Program Support Agreement, the requisite Program Support
Providers), provided , that, unless and until the Agent shall have received any such request, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Event of Default or event
which, with the giving of notice or passage of time, or both, would constitute an Event of Default as it shall deem advisable or in the best interest of the Investors. 
 SECTION 7.06. Credit Decision; Disclosure of Information by the Agent. Each Investor acknowledges that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by the
Agent hereinafter taken, including any consent to and acceptance of any assignment or review of the affairs of the Seller, the Servicer, the Indenture Trustee, or any of their respective Affiliates, shall be deemed to constitute any representation
or warranty by any Agent-Related Person to any Investor as to any matter, including whether the Agent-Related Persons have disclosed material information in their possession. Each Investor, including any Investor by assignment, represents to the
Agent that it has, independently and without reliance upon any Agent-Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of the Seller, the Servicer or the Indenture Trustee, or their respective Affiliates, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its
own decision to enter into this Agreement and to extend credit to the Seller hereunder. Each Investor also represents that it shall, independently and without reliance upon any Agent-Related Person and based on such documents and information as it
shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Transaction Documents, and to make such investigations as it deems necessary to
inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of the Seller, the Servicer or the Indenture Trustee. Except for notices, reports and other documents expressly herein required to
be furnished to the Investors by the Agent herein, the Agent shall not have any duty or responsibility to provide any Investor with any credit or other information concerning the business, prospects, operations, property, financial 

  

 22 

 
and other condition or creditworthiness of the Seller, the Servicer, the Indenture Trustee, or their respective Affiliates which may come into the possession
of any of the Agent-Related Persons. 
 SECTION 7.07. Indemnification of the Agent. Whether or not the transactions contemplated
hereby are consummated, the Program Support Providers shall indemnify upon demand each Agent-Related Person, pro rata, and hold harmless each Agent-Related Person from and against any and all damages, losses, claims, liabilities, costs and expenses,
including reasonable attorneys’ fees (which such attorneys may be employees of the Program Support Providers or the Agent) and disbursements awarded against or incurred by it; provided, that no Program Support Provider shall be liable for the
payment to any Agent-Related Person of any portion of such amounts resulting from such Person’s gross negligence or willful misconduct; provided, further, that no action taken in accordance with the directions of the Conduit Investor (and, if
required by any Program Support Agreement, the requisite Program Support Providers) shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section. Without limitation of the foregoing, each Program Support Provider
shall reimburse the Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including attorney’s fees) incurred by the Agent in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Transaction Document, or any document contemplated by or referred
to herein. The undertaking in this Section shall survive payment in full of the Note and the resignation or the replacement of the Agent. 
 SECTION 7.08. Agent in Individual Capacity. Royal Bank (and any successor acting as Agent) and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and
generally engage in any kind of banking, trust, financial advisory, underwriting or other business with any of the Seller, the Servicer, the Indenture Trustee, or any of their Affiliates as though Royal Bank were not the Agent hereunder and without
notice to or consent of the Investors. The Investors acknowledge that, pursuant to such activities, Royal Bank or its Affiliates may receive information regarding the Seller, the Servicer, the Indenture Trustee, or their respective Affiliates
(including information that may be subject to confidentiality obligations in favor of such Person) and acknowledge that the Agent shall be under no obligation to provide such information to them. 
 SECTION 7.09. Resignation of Agent. The Agent may resign as Agent upon thirty (30) days’ notice to the Investors. If the Agent resigns
under this Agreement, the Investors shall appoint from among the Program Support Providers a successor agent for the Investors. If no successor agent is appointed prior to the effective date of the resignation of the Agent, the Agent may appoint,
after consulting with the Investors, a successor agent from among the Program Support Providers. Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers and duties of the
retiring Agent and the term “Agent” shall mean such successor agent and the retiring Agent’s appointment, powers and duties as Agent shall be terminated. After any retiring Agent’s resignation hereunder as Agent, the provisions
of this Section 7.09 and Sections 7.03 and 7.07 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was the Agent under this Agreement. If no successor agent has accepted appointment as
Agent by the date which is thirty (30) days following a retiring Agent’s notice of resignation, the retiring 

  

 23 

 
Agent’s resignation shall nevertheless thereupon become effective and the Program Support Providers shall perform all of the duties of the Agent
hereunder until such time, if any, as the Investors appoint a successor agent as provided for above; provided that until such time as a successor agent shall have been appointed, the resigning Agent shall continue to hold the Purchased Note
as “nominee” for the Investors. 
 SECTION 7.10. Payments by the Agent. Unless specifically allocated to an Investor
pursuant to the terms of this Agreement, all amounts received by the Agent on behalf of the Investors shall be paid by the Agent to the Investors pro rata in accordance with their respective outstanding funded portions of the Funded
Amount on the Business Day received by the Agent, unless such amounts are received after 12:00 noon on such Business Day, in which case the Agent shall use its reasonable efforts to pay such amounts to the Investors on such Business Day, but, in any
event, shall pay such amounts to the Investors not later than the following Business Day. 
 ARTICLE VIII 
 Miscellaneous 
 SECTION 8.01.
Assignment. (a) This Agreement shall be binding on the parties hereto and their respective successors and assigns; provided , that the Seller may not assign any of its rights or delegate any of its duties hereunder without the
prior written consent of the Agent. The Conduit Investor may assign, participate, grant security interests in, or otherwise transfer any portion of its Note Interest, in each case, as provided in clause (b) below. No provision of this
Agreement shall in any manner restrict the ability of any Program Support Provider to assign, participate, grant security interests in, or otherwise transfer any portion of its Note Interest, provided that any such transfer shall be in
accordance with the terms of the Indenture. All costs and expenses of the Agent incurred in connection with any assignment hereunder shall be borne by the Seller. 
 (b) The Conduit Investor may, from time to time, with prior or concurrent notice to the Seller and the Indenture Trustee, in one transaction or a series of transactions, assign, participate, grant security interests
in, or otherwise transfer all or a portion of its Note Interest and its rights and obligations under this Agreement and any other Transaction Document to which it is a party (x) without the consent of the Seller or any other Person, (i) to
a Conduit Assignee, (ii) to any Program Support Provider or (iii) to any other Person which satisfies the Assignee Rating Criteria and (y) with the consent of the Seller (such consent not to be unreasonably withheld or delayed), to
any Person not described in preceding clause (x); provided, that, the Conduit Investor may, during the continuance of an Event of Default, assign, participate, grant security interests in, or otherwise transfer all or a portion of its Note Interest
and its rights and obligations under this Agreement and any other Transaction Document to which it is a party, in each case, without the consent of the Seller or any other Person. Subject to the transfer restrictions set forth in the Indenture, upon
and to the extent of such assignment or other transfer by the Conduit Investor, (i) such assignee shall be the owner of the assigned or transferred portion of the Note Interest, (ii) if such assignee is a Conduit Assignee, such Conduit
Assignee and its liquidity support provider(s) and credit support provider(s) and other related parties shall have the benefit of all the rights and protections provided to a Conduit Investor and 

  

 24 

 
its Program Support Provider(s) herein and in the other Transaction Documents (including any limitation on recourse against such Conduit Assignee or related
parties, any agreement not to file or join in the filing of a petition to commence an insolvency proceeding against such Conduit Assignee, and the right to assign or otherwise transfer to another Conduit Assignee as provided in this paragraph),
(iii) such assignee shall assume all (or the assigned or assumed portion) of the Conduit Investor’s obligations, if any, hereunder or under any other Transaction Document, and the Conduit Investor shall be released from such obligations,
in each case to the extent of such assignment, and the obligations of the Conduit Investor and such assignee shall be several and not joint, (iv) all distributions in respect of its Note Interest shall be made to the Agent, on behalf of the
Conduit Investor and such assignee according to their respective Note Interests, (v) the defined terms and other terms and provisions of this Agreement and the other Transaction Documents shall be interpreted in accordance with the foregoing,
and (vi) if requested by the Agent with respect to the assignee, the parties will execute and deliver such further agreements and documents and take such other actions as the Agent may reasonably request to evidence and give effect to the
foregoing. 
 SECTION 8.02. Notices. Except in the case of notices and other communications expressly permitted to be given by
telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service or sent by telecopy or by e-mail (if the recipient has provided an e-mail address), as follows:

 (a) if to the Seller or the Servicer, at its address or telecopy number set forth in Appendix B to the Pooling Agreement; 
 (b) if to the Conduit Investor: 
 Thunder Bay
Funding, LLC 
 c/o Royal Bank of Canada 
 Global Securitization Group 
 One Liberty Plaza, 5th Floor 
 New York, NY 10006-1404 
 Attention: Denham
Turton 
 Email:     Denham.turton@rbccm.com 
 Phone:    (212) 428-6255 
 Fax:        (212) 428-2304 
 (c) if to the Agent: 
 Royal Bank of Canada 
 Global Securitization
Group 
 One Liberty Plaza, 5th Floor 
 New York, NY 10006-1404 
 Attn: Denham Turton 
 Email:     denham.turton@rbccm.com 
 Phone:
    (212) 428-6255 
 Fax:         (212) 428-2304 
  

 25 

 With communications to Thunder Bay Funding, LLC and/or Royal Bank of Canada, with copies
to: 
 Royal Bank of Canada 
 One Little Falls Centre 
 Global Securitization Group – Middle Office 
 2711 Centerville Rd., Suite 220 
 Wilmington,
DE 19808 
 Attn: Kim Wagner 
 Email:     Conduit_Management@rbccm.com 
 Phone:     (302) 892-5903/5911

 Fax:         (302) 892-5900 
 and 
 Global Securitization Services, LLC

 445 Broadhollow Road, Suite 239 
 Melville, NY 11747 
 Attn: Tony Wong 
 Email:     twong@gssnyc.com 
 Phone:     (631) 587-4700

 Fax:         (212) 302-8767 
 All notices and other communications given to any party hereto in accordance with the provisions of this Agreement shall be deemed to have been given on
the date of receipt. 
 SECTION 8.03. Waivers; Amendments. 
 (a) No waiver of any provision of this Agreement or consent to any departure by the Seller therefrom shall in any event be effective unless the same
shall be permitted by Section 8.03(b), and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the Funding of the Purchased
Note shall not be construed as a waiver of any Event of Default, regardless of whether the Indenture Trustee, the Seller, the Servicer, the Agent or the Conduit Investor may have had notice or knowledge of such Event of Default at the time.

 (b) Any provision of the Agreement may be amended or waived by (x) the Seller or Servicer if, but only if, it is in writing and
signed by such Person and (y) the Agent and the Investors, if, but only if, it is in writing and signed by the Agent and the Conduit Investor. Any consent or other election or action to be taken by an Investor pursuant to the Indenture shall be
taken by the Agent as registered Holder of the Purchased Note, in each case with the consent of the applicable Investors (the Seller shall have no obligation to inquire as to such consent and may rely on any consent, election or action taken by the
Agent as such Holder). 
  

 26 

 (c) No waiver, amendment or modification of the Transaction Documents or any other agreement referred to
herein or therein to which the Seller is a party (other than this Agreement) shall affect any of the rights or obligations under this Agreement of any party hereto unless such party has given its written consent to such waiver, amendment or
modification. 
 (d) A failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed to
operate as a waiver, and a single or partial exercise of any right, power or privilege will not be presumed to preclude any subsequent or further exercise, of that right, power or privilege or the exercise of any other right, power or privilege.

 SECTION 8.04. Survival. All covenants, agreements, representations and warranties made by the Seller and the Servicer herein and in
the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of this Agreement and the funding
of the Purchased Note, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Indenture Trustee, the Agent or the Conduit Investor may have had notice or knowledge of any Event of Default or
incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the Note or any amount payable under this Agreement is outstanding and unpaid. 
 SECTION 8.05. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on
different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the Indenture and the other Transaction Documents constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. This Agreement shall become effective when it shall have been executed by each of
the parties hereto and thereafter this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement by telecopy
shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 8.06. Severability. Any provision of
this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
 SECTION 8.07. Governing Law; Jurisdiction; Consent to Service of Process; Waiver of Jury Trial Right. 
 (a) This Agreement shall be construed in accordance with the laws of the State of New York, without reference to its conflict of laws provisions (other
than Section 5-1401 of the new York General Obligations Law), and the obligations, rights and remedies of the parties hereunder shall be determined in accordance with such laws. 
  

 27 

 (b) TO THE EXTENT PERMITTED BY LAW, EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT. 
 SECTION 8.08. No
Bankruptcy Petition Against the Conduit Investor. Each of the Investors, the Agent, the Seller and the Servicer hereby covenants and agrees that, prior to the date which is one year and one day (or the then applicable preference period) after
the payment in full of all outstanding Commercial Paper or other rated indebtedness of the Conduit Investor, it will not institute against, or join any other Person in instituting against, the Conduit Investor any proceeding of a type referred to in
the definition of Event of Bankruptcy. 
 SECTION 8.09. Benefits of Indenture. Each of the Seller and the Servicer hereby acknowledges
and confirms that each representation, warranty, covenant and agreement made pursuant to the Indenture by the Seller and the Servicer is also made herein, all for the benefit and security of the Investors and the Agent. 
 SECTION 8.10. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of
this Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
 SECTION 8.11.
No Recourse Against Conduit Investor, Members, Officers or Directors. Notwithstanding anything to the contrary contained in this Agreement, the obligations of each Conduit Investor under this Agreement and all other Transaction Documents are
solely the corporate obligations of such Conduit Investor and shall be payable solely to the extent of funds received in accordance herewith or from any party to any Transaction Document in accordance with the terms thereof in excess of funds
necessary to pay matured and maturing Commercial Paper. No recourse under any obligation, covenant or agreement of the Conduit Investor contained in this Agreement shall be had against Global Securitization Services, LLC (the “Corporate
Services Provider”) (or any Affiliate thereof), or any stockholder, member, employee, officer, director or incorporator of the Corporate Services Provider or the Conduit Investor or any beneficial owner of any of them, as such, by the
enforcement of any assessment or by any legal or equitable proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement is solely a corporate obligation of the Conduit Investor, and that no personal
liability whatsoever shall attach to or be incurred by the Corporate Services Provider (or any Affiliate thereof), or any stockholder, member, employee, officer, director or incorporator of the Corporate Services Provider or the Conduit Investor or
any beneficial owner of any of them, as such, or any of them, under or by reason of any of the obligations, covenants or agreements of the Conduit Investor contained in this Agreement, or implied therefrom, and that any and all personal liability
for breaches by the Conduit Investor of any of such obligations, covenants or agreements, either at common law or at equity, or by statute or constitution, of the Corporate Services Provider (or any Affiliate thereof) and every such stockholder,
member, employee, officer, director or incorporator of the Corporate Services Provider and the Conduit Investor or any beneficial owner of any of them, as such, is hereby expressly waived as a condition of and consideration for the execution of this
Agreement; provided, that the Conduit Investor shall not be considered to be an Affiliate of the Corporate Services Provider; and provided, further, that this Section 8.11 shall not relieve the Corporate 

  

 28 

 
Service Provider (or an Affiliate thereof) or any such stockholder, member, employee, officer, director or incorporator of the Corporate Servicer Provider or
the Conduit Investor or any beneficial owner of any of them, as such, of any liability it might otherwise have for its own intentional misrepresentation or willful misconduct. 
 SECTION 8.12. Waiver of Confidentiality. Each of the Seller and the Servicer hereby consents to the disclosure of any non-public information with
respect to it received by the Agent or any Investor to (i) the Agent, any nationally recognized statistical rating organization rating the Conduit Investor’s Commercial Paper, any dealer or placement agent of or depositary for the Conduit
Investor’s Commercial Paper, any Program Support Provider or any of such Person’s counsel or accountants in relation to this Agreement or any other Transaction Document; and (ii) with the Seller’s and the Servicer’s consent
(such consent not to be unreasonably withheld or delayed), any other Investor or potential Investor. 
 SECTION 8.13. Confidentiality
Agreement. Each of the Seller and the Servicer hereby agrees that it will not disclose the contents of this Agreement or any other Transaction Document or any other proprietary or confidential information of or with respect to any Investor, the
Agent or any Program Support Provider to any other Person except (a) its auditors and attorneys, employees or financial advisors (other than any commercial bank) and any nationally recognized statistical rating organization, provided such
auditors, attorneys, employees, financial advisors or rating agencies are informed of the highly confidential nature of such information, (b) as otherwise required by applicable law or order of a court of competent jurisdiction, including its
regulators, (c) in connection with any proceeding brought by or against it with respect to this Agreement or the related transactions contemplated hereby, (d) in any offering circular prepared for the issuance and sale of the Note, if such
disclosure has been reviewed and agreed to by the Investors and the Agent and (e) that the Seller and Servicer may file copies of the Transaction Documents (other than the Fee Letter) with the Commission. 
 SECTION 8.14. Excess Funds. Notwithstanding any provisions contained in this Agreement to the contrary, the Conduit Investor shall not, and shall
not be obligated to, pay any amount pursuant to this Agreement unless (i) the Conduit Investor has received funds which may be used to make such payment and which funds are not required to repay its Commercial Paper when due and (ii) after
giving effect to such payment, either (x) the Conduit Investor could issue Commercial Paper to refinance all of its outstanding Commercial Paper (assuming such outstanding Commercial Paper matured at such time) in accordance with the program
documents governing the Conduit Investor’s securitization program or (y) all of such Conduit Investor’s Commercial Paper is paid in full. Any amount which the Conduit Investor does not pay pursuant to the operation of the preceding
sentence shall not constitute a claim (as defined in § 101 of the United States Bankruptcy Code) against or corporate obligation of the Conduit Investor for any such insufficiency unless and until the Conduit Investor satisfies the
provisions of clauses (i) and (ii) above. This Section shall survive the termination of this Agreement. 
 [Signature Pages Follow]

  

 29 

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

			
	 THUNDER BAY FUNDING, LLC,
 as Conduit Investor

		
	By:	 	Royal Bank of Canada, its attorney-in-fact
		
	By:	 	/s/ Roger Pellegrini
	Name:	 	Roger Pelligrini
	Title:	 	Authorized Signatory

 [Signature Page to Thunder Bay Note Purchase Agreement] 

			
	 NAVISTAR FINANCIAL RETAIL
 RECEIVABLES
CORPORATION, as Seller

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

 [Signature Page to Thunder Bay Note Purchase Agreement] 

			
	ROYAL BANK OF CANADA, as Agent
		
	By:	 	/s/ Denham O. Turton
	Name:	 	Denham O. Turton
	Title:	 	Authorized Signatory

  
  

			
	Payment Information:	  	Deutsche Bank Trust Company Americas
		  	ABA: 021-001-033
		  	Account Number: 003-63-610
		  	Account Name: Thunder Bay Funding, LLC
		  	Ref: Kim Sukedo/Navistar Pool 2006-RBC

 [Signature Page to Thunder Bay Note Purchase Agreement] 

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

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

  

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

  

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

  

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

  

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

  

	 	•	 	authorization, execution and delivery of the Transaction Documents 

  

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

  

	 	•	 	perfection and priority of security interests 

  

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

  

	 	•	 	treatment of the Note as debt for tax purposes 

  

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

  

 A-1 

	 	 
reports (in Delaware and Illinois) dated a date reasonably near the Closing Date listing all effective federal tax liens which name Truck Retail Instalment
Paper Corp., NFC or NFRRC (under its respective present or previous names), as debtor. 

  

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

  

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

  

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

  

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

  

 A-2

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