Document:

Exhibit 10.72

 

AMENDMENT
NO. 1 TO THE

SERIES
2000-VFC SUPPLEMENT TO THE POOLING AND SERVICING

AGREEMENT

 

THIS AMENDMENT NO. 1 (this “Amendment”) to the
Series 2000-VFC Supplement to the Pooling and Servicing Agreement is made as of
January 22, 2003, by and among Navistar Financial Securities Corporation, a
Delaware corporation, as Seller, Navistar Financial Corporation, a Delaware
corporation, as Servicer, and The Bank of New York, a New York banking
corporation, as Master Trust Trustee.

 

The Seller, the Servicer, and the Master Trust Trustee
are parties to the Series 2000-VFC Supplement, dated as of January 28, 2000
(the “Series 2000-VFC Supplement”). 
The Seller, the Servicer and the Master Trust Trustee have agreed to
amend the Series 2000-VFC Supplement in the manner set forth herein.  Capitalized terms used herein but not
otherwise defined have the meanings set forth in the Series 2000-VFC
Supplement.

 

1.                                       Amendment
to Section 2.01. The following provisions of Section 2.01 shall be amended
as follows:

 

(a)                                  The
definition of “Subordinated Percentage” shall be deleted in its entirety and
replaced with the following:

 

“Subordinated Percentage” shall mean the
greater of (a) 15.5% and (b) the subordinated percentage, or calculated
equivalent thereof, required by Moody’s and S&P to rate any series of
Dealer Note Securities issued or to be issued after the date hereof (regardless
of whether such Dealer Note Securities are actually issued) at the highest
investment category for long-term debt for such rating agency; provided, however, if any outstanding
series of Dealer Note Securities rated in the highest investment category by
either Moody’s or S&P is downgraded, the Subordinated Percentage will be
set at the level reasonably determined by the Administrative Agent necessary to
support a rating in the highest investment category for long-term debt on the
Series 2000-VFC, subject to the consent of the Servicer, which consent shall
not be unreasonably withheld; provided
further, however, if the revised Subordinated Percentage is not
agreed to by the Administrative Agent and the Servicer within 30 days after
such downgrade, the Servicer (at its own expense) will retain Moody’s to
determine within 60 days (or such longer period as shall be specified in a
written notice from the Administrative Agent to the Servicer and the Master
Trust Trustee) after such downgrade the revised Subordinated Percentage
necessary to achieve a rating in the highest investment category for long-term
debt by such rating agency on the Series 2000-VFC and the Subordinated
Percentage shall be the amount specified by Moody’s.

 

 

(b)                                 The
definition of “Subordinated Percentage Determination Failure” shall be added:

 

“Subordinated Percentage Determination Failure”
shall mean the earlier to occur of (x) the failure of Moody’s to determine the
Subordination Percentage as provided in the second proviso of the definition of
Subordination Percentage within 60 days (or such longer period as shall be
specified in writing by the Administrative Agent to the Servicer and the Master
Trust Trustee) after the date of such a downgrade and (y) the failure of the
Servicer to retain Moody’s as provided in the second proviso of the definition
of Subordination Percentage within five Business Days (or such longer period as
shall be specified in writing by the Administrative Agent to the Servicer and
the Master Trust Trustee) after the 30th day following the date of such
downgrade.

 

(c)                                  The
definition of “Dealer Note Security” shall be added:

 

“Dealer Note Security” shall mean any
series of Investor Certificates or any series of securities secured by an
Investor Certificate.

 

2.                                       Amendment
to Section 6.01.  In Section 6.01,
clause (q) will be added:

 

“(q) the occurrence and
continuation of a Subordinated Percentage Determination Failure.”

 

3.                                       Miscellaneous.  This Amendment shall be construed in
accordance with the internal laws of the State of Illinois, without reference
to its conflict of law provisions, except that the obligations, rights and
remedies of the Master Trust Trustee shall be determined in accordance with the
internal laws of the State of New York, without regard to conflict of law
provisions.  This Amendment may be
executed in two or more counterparts, each of which shall be an original, but
all of which together constitute one and the same instrument.  The provisions of this Amendment shall be
deemed to be incorporated in, and made a part of, the Series 2000-VFC
Supplement; and the Series 2000-VFC Supplement, as amended by this Amendment,
shall be read, taken and construed as one and the same instrument.  Promptly after the execution of this
Amendment the Master Trust Trustee shall furnish written notification of the
substance of this Amendment to each Investor Certificateholder.

 

*     *    
*     *     *

 

2

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment No. 1 to the Series 2000-VFC Supplement to be duly executed by
their respective officers as of the date first written above.

 

 

	
   

  	
  NAVISTAR FINANCIAL
  SECURITIES

  
	
   

  	
  CORPORATION

  
	
   

  	
  as
  Seller

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew J. Cederoth

  	
   

  
	
   

  	
  Name: Andrew J.
  Cederoth

  
	
   

  	
  Vice President and
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NAVISTAR FINANCIAL
  CORPORATION

  
	
   

  	
  as
  Servicer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew J. Cederoth

  	
   

  
	
   

  	
  Name: Andrew J.
  Cederoth

  
	
   

  	
  Vice President and
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
  as
  Master Trust Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Erwin Soriano

  	
   

  
	
   

  	
  Name: Erwin Soriano

  
	
   

  	
  Title: Assistant
  Treasurer

  
						

 

 

	
  Acknowledged and
  Accepted

  	
   

  
	
  BANK OF AMERICA,
  NATIONAL ASSOCIATION,

  	
   

  
	
  as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Karen P. Louie

  	
   

  	
   

  
	
  Name:
  KAREN P. LOUIE

  	
   

  
	
  Title:    Vice President

  	
   

  
				

 

3Exhibit 10.73

 

EXECUTION COPY

 

AMENDED
AND RESTATED CERTIFICATE PURCHASE AGREEMENT

among

NAVISTAR FINANCIAL SECURITIES CORPORATION

as Seller,

NAVISTAR FINANCIAL CORPORATION,

as Servicer

KITTY HAWK FUNDING CORPORATION,

as a Conduit Purchaser,

LIBERTY STREET FUNDING CORP.,

as a Conduit Purchaser,

BANK OF AMERICA, NATIONAL ASSOCIATION,

as Administrative Agent for the Purchasers,

BANK OF AMERICA, NATIONAL ASSOCIATION,

as a Managing Agent,

BANK OF AMERICA, NATIONAL ASSOCIATION,

as a Committed Purchaser,

THE BANK OF NOVA SCOTIA,

as a Committed Purchaser

and

THE BANK OF NOVA SCOTIA,

as a Managing Agent

dated as of December 27, 2004

 

 

TABLE OF CONTENTS

 

	
  ARTICLE
  I            DEFINITIONS

  	
   

  
	
   

  	
  SECTION
  1.01.

  	
  Certain
  Defined Terms

  	
   

  
	
   

  	
  SECTION
  1.02.

  	
  Other
  Definitional Provisions

  	
   

  
	
  ARTICLE
  II           PURCHASE AND SALE

  	
   

  
	
   

  	
  SECTION
  2.01.

  	
  [RESERVED]

  	
   

  
	
   

  	
  SECTION
  2.02.

  	
  [RESERVED]

  	
   

  
	
   

  	
  SECTION
  2.03.

  	
  Incremental
  Fundings

  	
   

  
	
   

  	
  SECTION
  2.04.

  	
  Extension
  of Purchase Expiration Date

  	
   

  
	
   

  	
  SECTION
  2.05.

  	
  Reduction
  of Maximum Funded Amount

  	
   

  
	
   

  	
  SECTION
  2.06.

  	
  Calculation
  of Monthly Interest

  	
   

  
	
  ARTICLE
  III          CLOSING

  	
   

  
	
   

  	
  SECTION
  3.01.

  	
  [Reserved]

  	
   

  
	
   

  	
  SECTION
  3.02.

  	
  [Reserved]

  	
   

  
	
  ARTICLE
  IV          CONDITIONS PRECEDENT TO
  EFFECTIVENESS OF AMENDMENT AND RESTATEMENT

  	
   

  
	
   

  	
  SECTION
  4.01.

  	
  Performance
  by the Seller and Servicer

  	
   

  
	
   

  	
  SECTION
  4.02.

  	
  Representations
  and Warranties

  	
   

  
	
   

  	
  SECTION
  4.03.

  	
  Corporate
  Documents

  	
   

  
	
   

  	
  SECTION
  4.04.

  	
  Opinions
  of Counsel to NFC and the Seller

  	
   

  
	
   

  	
  SECTION
  4.05.

  	
  Series
  2000-VFC Certificate

  	
   

  
	
   

  	
  SECTION
  4.06.

  	
  Financing
  Statements

  	
   

  
	
   

  	
  SECTION
  4.07.

  	
  Ratings

  	
   

  
	
   

  	
  SECTION
  4.08.

  	
  Documents

  	
   

  
	
   

  	
  SECTION
  4.09.

  	
  No
  Actions or Proceedings

  	
   

  
	
   

  	
  SECTION
  4.10.

  	
  Approvals
  and Consents

  	
   

  
	
   

  	
  SECTION
  4.11.

  	
  Officer’s
  Certificates

   

  	
   

  
	
   

  	
  SECTION
  4.12.

  	
  Payment
  to KHFC

  	
   

  
	
   

  	
  SECTION
  4.13.

  	
  Other
  Documents

  	
   

  
	
   

  	
  SECTION
  4.14.

  	
  Fees

  	
   

  

 

i

 

	
  ARTICLE
  V           REPRESENTATIONS AND
  WARRANTIES OF THE SELLER

  	
   

  
	
   

  	
  SECTION
  5.01.

  	
  Representations
  and Warranties of the Seller

  	
   

  
	
   

  	
  SECTION
  5.02.

  	
  Representations
  and Warranties of NFC

  	
   

  
	
  ARTICLE
  VI          REPRESENTATIONS AND
  WARRANTIES WITH RESPECT TO THE CONDUIT PURCHASERS

  	
   

  
	
   

  	
  SECTION
  6.01.

  	
  Organization

  	
   

  
	
   

  	
  SECTION
  6.02.

  	
  Authority,
  etc

  	
   

  
	
   

  	
  SECTION
  6.03.

  	
  Securities
  Act

  	
   

  
	
   

  	
  SECTION
  6.04.

  	
  Investment
  Company Act

  	
   

  
	
  ARTICLE
  VII        COVENANTS OF THE SELLER

  	
   

  
	
   

  	
  SECTION
  7.01.

  	
  Access
  to Information

  	
   

  
	
   

  	
  SECTION
  7.02.

  	
  Security
  Interests; Further Assurances

  	
   

  
	
   

  	
  SECTION
  7.03.

  	
  Covenants

  	
   

  
	
   

  	
  SECTION
  7.04.

  	
  Amendments

  	
   

  
	
  ARTICLE
  VIIA     COVENANTS OF NFC

  	
   

  
	
   

  	
  SECTION
  7A.01

  	
  INFORMATION
  FROM NFC

  	
   

  
	
   

  	
  SECTION
  7A.02

  	
  ACCESS
  TO INFORMATION

  	
   

  
	
   

  	
  SECTION
  7A.03

  	
  Covenants

  	
   

  
	
   

  	
  SECTION
  7A.04

  	
  Amendments

  	
   

  
	
  ARTICLE
  VIII       ADDITIONAL COVENANTS

  	
   

  
	
   

  	
  SECTION
  8.01.

  	
  Legal
  Conditions to Effectiveness of this Agreement

  	
   

  
	
   

  	
  SECTION
  8.02.

  	
  Expenses

  	
   

  
	
   

  	
  SECTION
  8.03.

  	
  Mutual
  Obligations

  	
   

  
	
   

  	
  SECTION
  8.04.

  	
  Restrictions
  on Transfer

  	
   

  
	
   

  	
  SECTION
  8.05.

  	
  Consents,
  etc

  	
   

  
	
  ARTICLE
  IX         INDEMNIFICATION

  	
   

  
	
   

  	
  SECTION
  9.01.

  	
  Indemnification

  	
   

  
	
   

  	
  SECTION
  9.02.

  	
  Procedure

  	
   

  
	
   

  	
  SECTION
  9.03.

  	
  Defense
  of Claims

  	
   

  
	
   

  	
  SECTION
  9.04.

  	
  Indemnity
  for Taxes, Reserves and Expenses

  	
   

  

 

ii

 

	
   

  	
  SECTION
  9.05.

  	
  Costs,
  Expenses, Taxes, Breakage Payments and Increased Costs under this Agreement
  and Program Facility

  	
   

  
	
  ARTICLE
  X           THE AGENTS

  	
   

  
	
   

  	
  SECTION
  10.01.

  	
  Authorization
  and Action

  	
   

  
	
   

  	
  SECTION
  10.02.

  	
  Agent’s
  Reliance, Etc

  	
   

  
	
   

  	
  SECTION
  10.03.

  	
  Agents
  and Affiliates

  	
   

  
	
   

  	
  SECTION
  10.04.

  	
  Indemnification

  	
   

  
	
   

  	
  SECTION
  10.05.

  	
  Purchase
  Decision

  	
   

  
	
   

  	
  SECTION
  10.06.

  	
  Successor
  Administrative Agent

  	
   

  
	
  ARTICLE
  XI         MISCELLANEOUS

  	
   

  
	
   

  	
  SECTION
  11.01.

  	
  Amendments

  	
   

  
	
   

  	
  SECTION
  11.02.

  	
  Notices

  	
   

  
	
   

  	
  SECTION
  11.03.

  	
  No
  Waiver; Remedies

  	
   

  
	
   

  	
  SECTION
  11.04.

  	
  Binding
  Effect; Assignability

  	
   

  
	
   

  	
  SECTION
  11.05.

  	
  Provision
  of Documents and Information

  	
   

  
	
   

  	
  SECTION
  11.06.

  	
  GOVERNING
  LAW; JURISDICTION

  	
   

  
	
   

  	
  SECTION
  11.07.

  	
  No
  Proceedings; Limitation on Payments

  	
   

  
	
   

  	
  SECTION
  11.08.

  	
  Execution
  in Counterparts

  	
   

  
	
   

  	
  SECTION
  11.09.

  	
  No
  Recourse

  	
   

  
	
   

  	
  SECTION
  11.10.

  	
  Limited
  Recourse

  	
   

  
	
   

  	
  SECTION
  11.11.

  	
  Survival

  	
   

  
	
   

  	
  SECTION
  11.12.

  	
  Tax
  Characterization

  	
   

  
	
   

  	
  SECTION
  11.13.

  	
  Master
  Trust Rating Agency Notices

  	
   

  

 

iii

 

	
  EXHIBIT
  A

  	
  Form of Notice of Incremental Funding

  
	
  EXHIBIT B

  	
  Form of Investment Letter

  
	
   

  	
   

  
	
  SCHEDULE I

  	
  Addresses for Notice

  

 

 

THIS AMENDED AND RESTATED CERTIFICATE PURCHASE
AGREEMENT (this “Agreement”) dated as of December 27, 2004, among
Navistar Financial Securities Corporation (the “Seller”), Navistar
Financial Corporation (“Servicer”), Kitty Hawk Funding Corporation, (“KHFC”),
as a Conduit Purchaser, Liberty Street Funding Corp. (“Liberty Street”),
as a Conduit Purchaser, the Bank of Nova Scotia (“BNS”) as a Managing
Agent and a Committed Purchaser and Bank of America, National Association, as a
Managing Agent, the Administrative Agent and a Committed Purchaser.

 

The parties hereto agree as follows:

 

A.            The
Seller, the Servicer, Ranger Funding Company, LLC (f/k/a Receivables Capital
Corporation) (“RCC”) and Bank of America entered into a Certificate
Purchase Agreement dated as of January 28, 2000, as amended through the date
hereof (the “Existing Agreement”).

 

B.            KHFC
is party to the Existing Agreement by assignment from RCC.

 

C.            The
Seller, the Servicer, KHFC, Liberty Street, BNS, Bank of America, and the other
parties hereto desire to amend and restate the Existing Agreement to make certain
modifications to the Existing Agreement.

 

D.            In
consideration of the mutual agreements, provisions and covenants contained
herein, the parties hereto agree to amend and restate the Existing Agreement to
read in full as set forth herein.

 

ARTICLE I

DEFINITIONS

 

SECTION 1.01.      Certain Defined Terms. 
Capitalized terms used herein without definition shall have the meanings
set forth in the Pooling and Servicing Agreement (as defined below) or the
Series Supplement (as defined below), as applicable.  If a term used herein is defined both in the
Pooling and Servicing Agreement and the Series Supplement, it shall have the
meaning set forth in the Series Supplement. 
Additionally, the following terms shall have the following meanings:

 

“Act” means the Securities Act of 1933, as
amended.

 

“Additional Amounts” means all amounts owed
pursuant to Article IX hereof plus any Breakage Payments owed to the
Purchasers pursuant to Section 2.06(c) of this Agreement.

 

“Administrative Agent” means Bank of America in
its capacity as Administrative Agent for the Purchasers.

 

“Administrative Agent Fee Letter” means the fee
letter dated as of the date hereof among the Seller, the Servicer and the
Administrative Agent setting forth certain fees payable to the Administrative
Agent in connection with this Agreement.

 

1

 

“Agents”
means, collectively, the Managing Agents and the Administrative Agent.

 

“Alternate Rate” for any Fixed Period for any
Funding Tranche means an interest rate per annum equal to 1.15% per  annum
above 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 a Managing Agent shall have been notified by a
Conduit Purchaser or Liquidity Purchaser in its Purchaser Group or other
Program Support Provider that 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 a Conduit
Purchaser or its Liquidity Purchaser or other Program Support Provider to fund
any Funding Tranche (based on the Eurodollar Rate) set forth above (and such
Conduit Purchaser or its Liquidity Purchaser or other Program Support Provider
shall not have subsequently notified its Managing Agent that such circumstances
no longer exist),

 

(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
Administrative Agent of less than three 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 Early Amortization Event
shall be an interest rate equal to 2.0% per  annum above the
Corporate Base Rate in effect on such day.

 

“Applicable Indemnifying Party” shall have the
meaning set forth in Section 9.02 hereof.

 

“Asset Purchase Agreement” means the KHFC
Liquidity Asset Purchase Agreement and the Liberty Street Liquidity Asset
Purchase Agreement, as the same may be amended, restated, supplemented or
otherwise modified.

 

“Assignment and Acceptance” means an assignment
and acceptance agreement entered into by a Purchaser, a permitted assignee and
the Managing Agent for such Purchaser, pursuant to which such assignee may
become a party to this Agreement.

 

“Assignment Amount” means, with respect to a
Committed Purchaser at the time of any assignment pursuant to Section 11.04(c)
of this Agreement, an amount equal to the least of (a) such Committed Purchaser’s
purchase price (as provided in and calculated in accordance with the terms of
the related Asset Purchase Agreement) of the Invested Amount requested by the
related Conduit Purchaser to be assigned at such time; and (b) such Committed
Purchaser’s unused Commitment.

 

2

 

“Assignment Amount” is defined in Section
11.04(c) of this Agreement.

 

“Bank of America” means Bank of America,
National Association, a national banking association.

 

“BNS” means The Bank of Nova Scotia.

 

“Breakage Payment” is defined in Section
2.06(c) of this Agreement.

 

“Closing Date” means January 28, 2000.

 

“Commitment” means, with respect to each
Committed Purchaser, as the context requires, (a) the commitment of such
Committed Purchaser to make Incremental Fundings and to pay Assignment Amounts
in accordance herewith in an amount not to exceed the amount described in the
following clause (b), and (b) the dollar amount set forth underneath such
Committed Purchaser’s name under the heading of “Commitment” on the signature
pages hereto (or in the case of a Committed Purchaser which becomes a party
hereto pursuant to an assignment and assumption agreement, as set forth in such
assignment and assumption agreement), minus the dollar amount of any Commitment
or portion thereof assigned by such Committed Purchaser in accordance with the
terms of this Agreement and pursuant to an assignment and assumption agreement,
plus the dollar amount of any increase to such Committed Purchaser’s Commitment
consented to by such Committed Purchaser prior to the time of determination
minus the amount of any reduction to such Commitment made in accordance with
this Agreement.

 

“Committed Purchaser” means Bank of America,
BNS and each of their respective assigns (with respect to its commitment to
make Incremental Fundings) that shall become a party to this Agreement pursuant
to Section 11.04 hereof.

 

“Conduit Purchaser” means KHFC, Liberty Street
and any of their respective permitted assigns that is a RIC.

 

“Conduit Purchaser Termination Date” means,
with respect to a Conduit Purchaser in the KHFC Purchase Group, the date of the
delivery by such Conduit Purchaser of written notice that such Conduit
Purchaser elects, in its sole discretion, to permanently cease to fund Funded
Amounts and Incremental Fundings hereunder.

 

“Corporate Base Rate” means for any day, a
fluctuating interest rate per annum as shall be in effect from time to time,
which rate shall be at all times equal to the higher of:

 

(a)           the
rate of interest in effect for such day as publicly announced from time to time
by the applicable Managing Agent, as its “reference rate.”  It is a rate set by the applicable Managing
Agent based upon various factors including such Managing 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; and

 

(b)           0.50%
per annum above the latest Federal Funds Rate.

 

3

 

“CP Rate” for any Fixed Period for any Funding
Tranche means, to the extent a Conduit Purchaser funds such Funding Tranche for
such Fixed Period by issuing Notes, the per annum rate equivalent to the “weighted
average cost” (as defined below) related to the issuance of Notes that are
allocated, in whole or in part, by such Conduit Purchaser or its Managing 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
such Conduit Purchaser); 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, such Conduit Purchaser 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 Purchaser’s “weighted average
cost” shall consist of (w) the actual interest rate (or discount) paid to
purchasers of such Conduit Purchaser’s Notes, together with the commissions of
placement agents and dealers in respect of such Notes, to the extent such
commissions are allocated, in whole or in part, to such Notes by such Conduit
Purchaser or its Managing Agent, (x) certain documentation and transaction
costs associated with the issuance of such Notes, (y) any incremental carrying
costs incurred with respect to Notes maturing on dates other than those on
which corresponding funds are received by such Conduit Purchaser, and (z) other
borrowings by such Conduit Purchaser (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).

 

“Defaulting Committed Purchaser” is defined in Section
2.03(f).

 

“Effective Date” means the date that all of the
conditions precedent set forth in Article IV of this Agreement shall
have been satisfied or waived by the Administrative Agent and each Managing
Agent.

 

“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

  	
   

  

 

“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.

 

“Federal Bankruptcy Code” means the bankruptcy
code of the United States of America codified in Title 11 of the United States
Code.

 

4

 

“Federal Funds Rate” means, for any period, the
per annum rate set forth in the weekly statistical release designated as
H.15(519), or any successor publication, published by the Federal Reserve Board
(including any such successor, “H.15(519)”) for such day opposite the caption “Federal
Funds (Effective)”.  If on any relevant
day such rate is not yet published in H.15(519), the rate for such day will be
the rate set forth in the daily statistical release designated as the Composite
3:30 p.m. Quotations for U.S. Government Securities, or any successor
publication, published by the Federal Reserve Bank of New York (including any
such successor, the “Composite 3:30 p.m. Quotation”) for such day under the
caption “Federal Funds Effective Rate”. 
If on any relevant day the appropriate rate for such previous day is not
yet published in either H.15(519) or the Composite 3:30 p.m. Quotations, the
rate for such day will be the arithmetic mean as determined by the
Administrative Agent of the rates for the last transaction in overnight Federal
funds arranged prior to 9:00 a.m. (New York time) on that day by each of three
leading brokers of Federal funds transactions in New York City selected by the
Administrator.

 

“Federal Reserve Board” means the Board of
Governors of the Federal Reserve System, or any entity succeeding to any of its
principal functions.

 

“Fee Letter” means the Amended and Restated Fee
Letter dated as of the date hereof among the Seller, the Servicer, the Managing
Agents and the Administrative Agent setting forth certain fees payable in
connection with the purchase of the Series 2000-VFC Certificates by the
Administrative Agent for the benefit of the Purchasers.

 

“Fixed Period” means, unless otherwise mutually
agreed by the Managing Agent and the Conduit Purchasers within its Purchaser
Group, (a) with respect to any Funding Tranche funded by the issuance of Notes,
(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 Notes, (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 last day of the next following
Distribution Date; provided, that

 

(i)            any Fixed Period with respect to any
Funding Tranche not funded by the issuance of Notes 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;

 

5

 

(ii)           in the case of any Fixed Period for
any Funding Tranche which commences before the Series Termination Date and
would otherwise end on a date occurring after the Series Termination Date, such
Fixed Period shall end on such Series Termination Date and the duration of each
Fixed Period which commences on or after the Series Termination Date shall be
of such duration as shall be selected by the applicable Managing Agent and
communicated by such Managing Agent to the Administrative Agent;

 

(iii)          any Fixed Period in respect of which
interest is computed by reference to the CP Rate may be terminated in
accordance with the terms of this Agreement at the election of a Managing Agent
by notice thereof to the Administrative Agent, and upon notice thereof to the
Seller by, the Administrative Agent (who shall promptly forward such notice upon
receipt thereof from a Managing 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 Alternate Rate.

 

“Funded Amount” means, on any Business Day, an
amount equal to the result of (a) the Initial Funded Amount plus
(b) the aggregate amount of all Incremental Funded Amounts for all
Incremental Fundings occurring on or prior to such Business Day minus
(c) the aggregate amount of principal payments made to
Series 2000-VFC Certificateholders prior to such date.

 

“Funding Rate” means, with respect to any Fixed
Period and any Funding Tranche, (a) to the extent a Conduit Purchaser (or
a RIC which is an assignee of such Conduit Purchaser) is funding such Funding
Tranche during such Fixed Period through the issuance of Notes, its CP Rate,
and (b) to the extent any Purchaser is not funding such Funding Tranche
through the issuance of Notes, 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, at any time, each
portion of the Funded Amount funded by a specific Purchaser, 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

 

6

 

all legally
binding conditions, standards, prohibitions, requirements and judgments of any
Governmental Authority.

 

“Incremental Funded Amount” shall mean the
amount of the increase in the Funded Amount occurring as a result of any
Incremental Funding, which amount shall equal the aggregate amount of the
purchase price paid by the Series 2000-VFC Certificateholders with respect to
that Incremental Funding pursuant to this Agreement and the Series Supplement.

 

“Incremental Funding” means an increase in the
aggregate outstanding principal balance of the Series 2000-VFC Certificate in
accordance with the provisions of Section 2.03 hereof.

 

“Incremental Funding Date” means the date on
which each Incremental Funding occurs.

 

“Indemnified Party” means any Purchaser, the
Liquidity Purchasers, the Program Support Providers, the Managing Agents, the Administrative
Agent or any of their officers, directors, employees, agents, representatives,
assignees or Affiliates.

 

“Investment Deficit” is defined in Section
2.03(f).

 

“Investment Letter” means a letter in the form
of Exhibit B hereto.

 

“KHFC” means Kitty Hawk Funding Corporation, a
Delaware corporation.

 

“KHFC Liquidity Asset Purchase Agreement” means
the liquidity asset purchase agreement relating to this Agreement, among KHFC
(or an RIC that is an assignee of KHFC pursuant to the terms of this
Agreement), the Administrative Agent and each of the Liquidity Purchasers
signatory thereto, as the same may from time to time be amended, restated,
supplemented or otherwise modified.

 

“KHFC Purchaser Group” means KHFC, each
assignee of KHFC which is a RIC, Bank of America, in its capacity as a
Committed Purchaser, and the KHFC Purchasers.

 

“KHFC Purchasers” means each of the purchasers
to a KHFC Liquidity Asset Purchase Agreement.

 

“Liberty Street” means Liberty Street Funding
Corp., a Delaware corporation.

 

“Liberty Street Liquidity Asset Purchase Agreement”
means the liquidity asset purchase agreement, dated as of the date hereof,
among Liberty Street, BNS and each of the Liquidity Purchasers signatory thereto,
as the same may from time to time be amended, restated, supplemented or
otherwise modified.

 

“Liberty Street Purchaser Group” means Liberty
Street, each assignee of Liberty Street which is a RIC, BNS, in its capacity as
a Committed Purchaser hereunder and the Liberty Street Purchasers and any
permitted assignee thereof.

 

“Liberty Street Purchasers” means each of the
purchasers party to a Liberty Street Asset Liquidity Purchase Agreement.

 

7

 

“LIBOR” means the rate of interest per annum
determined by the applicable Liquidity Agent to be the arithmetic mean (rounded
upward to the nearest 1/1000th of 1%) of the rates of interest per
annum notified to a Managing Agent by the Reference Bank as the rate of interest
at which dollar deposits in the approximate amount of the portion of Invested
Amount associated with such Fixed Period would be offered to major banks in the
London interbank market at their request at or about 11:00 a.m. (London time)
on the second Business Day prior to the commencement of such Fixed Period.

 

“Liquidity Agents” means Bank of America in its
capacity as Liquidity Agent pursuant to the KHFC Liquidity Asset Purchase
Agreement and BNS in its capacity as Liquidity Agent pursuant to the Liberty
Street Liquidity Asset Purchase Agreement.

 

“Liquidity Purchaser” means a KHFC Purchaser or
a Liberty Street Purchaser.

 

“Managing Agents” means Bank of America in its
capacity as a Managing Agent for the KHFC Purchaser Group and BNS, in its
capacity as a Managing Agent for the Liberty Street Purchaser Group.

 

“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 NFSC or NFC, (ii) the
performance of their obligations hereunder or under the Series Documents or
(iii) the interests of the Purchasers hereunder.

 

“Maximum Funded Amount” means $400,000,000, as
such amount may be decreased from time to time in accordance with Section
2.05 hereof.

 

“Monthly Interest” means, with respect to any
Distribution Date, the sum of:

 

(A)                              the sum of (i) for each Conduit Purchaser the
summation of the amount of interest accrued during the related Due Period on
each Funding Tranche funded by such Conduit Purchaser at such Conduit Purchaser’s
CP Rate, determined by multiplying (a) the applicable Tranche Rate times
(b) the Weighted Average Funded Amount for such Funding Tranche times
(c) the applicable Day Count Fraction and (ii) any Monthly Interest calculated
in accordance with clause (A)(i) above due but not paid with respect to the
prior Due Period, plus interest on such unpaid amount calculated as the product
of (x) the weighted average Tranche Rate for all Funding Tranches funded at the
CP Rate by such Conduit Purchaser during the most recent Due Period, times
(y) the amount of such unpaid Monthly Interest, times (z) the quotient of the
number of days in the related Distribution 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 Tranche
Rate times (b) the Weighted Average Funded Amount for such Funding
Tranche times (c) the applicable Day Count Fraction and (ii) any Monthly
Interest calculated in accordance with clause

 

8

 

(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 Tranche Rate for all Funding Tranches not funded at the CP
Rate during the most recent Distribution Period, times (y) the amount of
such unpaid Monthly Interest, 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.

 

plus

 

(C)                                on any Distribution Date on which the Funded
Amount of the Series 2000-VFC Certificates is reduced to zero and on the Series
Termination Date, any amounts which accrue in clause (A) above from (and
excluding) the last day of the related Due Period through (and including) such
Distribution Date.

 

“NFC” means Navistar Financial Corporation, a
Delaware corporation, and its successors and permitted assigns.

 

“NFC Losses” has the meaning specified in Section
9.01(b) hereof.

 

“NFSC” means Navistar Financial Securities
Corporation, a Delaware corporation, and its successors and permitted assigns.

 

“Non-Defaulting Committed Purchaser” is defined
in Section 2.03(f).

 

“Non-Use Fee” is defined in the Fee Letter.

 

“Notes” means short-term promissory notes
issued or to be issued by a Conduit Purchaser to fund its investments in
accounts receivable or other financial assets.

 

“Notice of Incremental Funding” means a written
notice of an Incremental Funding in the form of Exhibit A hereto.

 

“Official Body” means any U.S. government or
political subdivision or any U.S. agency, authority, bureau, central bank,
commission, department or instrumentality of any such government or political
subdivision, or any U.S. court, tribunal, grand jury or arbitrator, or any
accounting board or authority (whether or not a part of government) which is
responsible for the establishment or interpretation of U.S. accounting
principles.

 

“Pooling and Servicing Agreement” means the
Pooling and Servicing Agreement dated as of June 8, 1995 among the Seller, the
Servicer, and The Bank of New York, as Master Trust Trustee, as the same has
been and may be amended, modified or supplemented.

 

“Program Rate” means the “Program Rate” as
defined in the Fee Letter.

 

“Program Support Agreement” means and includes,
with respect to a Conduit Purchaser, the Asset Purchase Agreement and any other
agreement entered into by any Program Support Provider providing for the
issuance of one or more letters of credit for the account of such

 

9

 

Conduit Purchaser, the
issuance of one or more surety bonds for which a Conduit Purchaser is obligated
to reimburse the applicable Program Support Provider for any drawings
thereunder, the sale by a Conduit Purchaser to any Program Support Provider of
any interest in the Series 2000-VFC Certificates (or portions thereof) and/or
the making of loans and/or other extensions of credit to a Conduit Purchaser in
connection with such Conduit Purchaser’s securitization program, together with
any letter of credit, surety bond or other instrument issued thereunder (but
excluding any discretionary advance facility provided by the Administrative
Agent or a Managing Agent).

 

“Program Support Provider” means and includes,
with respect to a Conduit Purchaser, any Liquidity Purchaser and any other or
additional Person (other than any customer of a Conduit Purchaser) now or
hereafter extending credit or having a commitment to extend credit to or for
the account of, or to make purchases from, a Conduit Purchaser or issuing a
letter of credit, surety bond or other instrument to support any obligations
arising under or in connection with a Conduit Purchaser’s securitization
program.

 

“Purchase Agreement” means the Purchase
Agreement dated as of June 8, 1995 between NFC and NFSC, as may be amended or
otherwise modified from time to time.

 

“Purchase Expiration Date” means the earlier of
(i) the date which is December 26, 2005 and (ii) the date on
which the Early Amortization Period commences, as such date may from time to
time be modified in accordance with Section 2.04 hereof.

 

“Purchaser Group” means the Liberty Street
Purchaser Group and the KHFC Purchaser Group.

 

“Purchaser Percentage” of any Committed
Purchaser means (a) with respect to Bank of America and BNS, the percentage set
forth on the signature page to this Agreement as such Committed Purchaser’s
Purchaser Percentage, or such percentage as reduced by any Assignment and
Acceptance entered into with an assignee, or (b) with respect to a Committed
Purchaser that has entered into an Assignment and Acceptance, the percentage
set forth therein as such Purchaser’s Purchaser Percentage, or such percentage
as reduced by any Assignment and Acceptance entered into between such Committed
Purchaser and an assignee.

 

“Purchaser” means a Conduit Purchaser or a
Committed Purchaser.

 

“Reference Bank” means Bank of America with
respect to the KHFC Purchaser Group and BNS, with respect to the Liberty Street
Purchaser Group.

 

“RIC” means a special purpose company, other
than a Conduit Purchaser, which (i) is administered by a Managing Agent or an
Affiliate thereof and (ii) has activities generally similar to such Conduit
Purchaser.

 

“Seller Losses” has the meaning specified in Section
9.01(a) hereof.

 

“Series 2000-VFC Certificate” means the Series
2000-VFC Floating Rate Dealer Note Asset Backed Certificate in the maximum
aggregate principal amount of $400,000,000 issued by

 

10

 

the Master Trust
pursuant to the Pooling and Servicing Agreement and the Series Supplement,
evidencing an undivided senior beneficial interest in certain assets of the
Master Trust.

 

“Series Documents” means the Pooling and
Servicing Agreement, the Series Supplement, the Master Revolving Credit
Agreement, the Purchase Agreement and this Agreement.

 

“Series Supplement” means the Series Supplement
dated as of January 28, 2000 among the Seller, the Servicer, and The Bank of
New York, as Master Trust Trustee, supplementing the Pooling and Servicing
Agreement and relating to the Series 2000-VFC Certificates, as the same may be
amended, modified or supplemented.

 

“Servicer” means Navistar Financial
Corporation, or any Successor Servicer appointed in accordance with the terms
of the Pooling and Servicing Agreement and Series Supplement.

 

“Third Party Claim” has the meaning specified
in Section 9.02 hereof.

 

“Tranche Rate” means for any Fixed Period, with
respect to any Funding Tranche, a per annum rate equal to the sum of (i) the
applicable Funding Rate of the applicable Purchaser for such Fixed Period plus
(ii) if such Funding Tranche is funded at the CP Rate, the weighted average of
the applicable Program Rates applicable to such Fixed Period.

 

“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.      Other Definitional Provisions.  (a) 
All terms defined in this Agreement shall have the defined meanings
when used in any certificate or other document made or delivered pursuant
hereto unless otherwise defined therein.

 

(b)           As used herein and in any certificate
or other document made or delivered pursuant hereto or thereto, accounting
terms not defined in Section 1.01, and accounting terms partially
defined in Section 1.01 to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting
principles.  To the extent that the
definitions of accounting terms herein are inconsistent with the meanings of
such terms under generally accepted accounting principles, the definitions
contained herein shall control.

 

(c)           The words “hereof,” “herein” and “hereunder”
and words of similar import when used in this Agreement shall refer to this
Agreement as a whole and not to any particular provision of this
Agreement; and Section, subsection, Schedule and Exhibit references contained
in this Agreement are references to Sections, subsections, the Schedules
and Exhibits in or to this Agreement unless otherwise specified.

 

ARTICLE
II

PURCHASE AND SALE

 

SECTION 2.01.      [RESERVED]

 

11

 

SECTION 2.02.      [RESERVED]

 

SECTION 2.03.      Incremental Fundings. 
(a)  Subject to the terms and
conditions of this Agreement and the Series Supplement, from time to time prior
to the Purchase Expiration Date upon receipt by the Administrative Agent (with
a copy to each Managing Agent) of a Notice of Incremental Funding, (i) each
Managing Agent, on behalf of the Conduit Purchaser in its Purchaser Group, and
in the sole and absolute discretion of each such Conduit Purchaser, may make
Incremental Fundings and (ii) if a Conduit Purchaser elects not to make an
Incremental Funding, each Committed Purchaser in such Conduit Purchaser’s
Purchaser Group and its permitted assigns severally agree to make their
respective Purchaser Percentages of such Incremental Funding; provided, that no
Committed Purchaser shall be required to make a portion of any Incremental
Funding if, after giving effect thereto, (A) its Funded Amount hereunder would
exceed its Commitment or (B) its Funded Amount hereunder plus the aggregate “Unrecovered
Purchase Price” (as defined in the Asset Purchase Agreement) of all “Percentage
Interests” or the definitional equivalent thereof (as defined in its Asset
Purchase Agreement) purchased by such Committed Purchaser as a Liquidity
Purchaser under the Asset Purchase Agreement would exceed its Commitment.

 

(b)           Each Incremental Funding hereunder
shall be subject to the further conditions precedent that:

 

(i)            The Administrative Agent (with a
copy to each Managing Agent) will have received copies of all settlement
statements and all reports required to be delivered by the Servicer to the
Master Trust Trustee pursuant to Section 3.04 of the Pooling and Servicing
Agreement and Section 5.02 of the Series Supplement;

 

(ii)           Each of the representations and
warranties of the Seller and the Servicer made in the Series Documents shall be
true and correct in all material respects as of the applicable Incremental
Funding Date (except to the extent they expressly relate to an earlier or later
time);

 

(iii)          The Seller and the Servicer shall be
in compliance in all material respects with all of their respective covenants
contained in the Series Documents;

 

(iv)          No Early Amortization Event shall have
occurred and be continuing;

 

(v)           The Available Subordinated Amount
shall be at least equal to the Required Subordinated Amount (calculated on a
pro forma basis after giving effect to such Incremental Funding);

 

(vi)          The Master Trust Seller’s Interest
shall be at least equal to the Minimum Master Trust Seller’s Interest (after
giving effect to such Incremental Funding);

 

(vii)         At least three Business Days prior to
the Incremental Funding Date, the Administrative Agent (with a copy to each
Managing Agent) shall have received a completed Notice of Incremental Funding;

 

12

 

(viii)        The amount on deposit in the Spread
Account shall be at least equal to Projected Spread for the related Transfer
Date;

 

(ix)           The available commitments of the
Liquidity Purchasers under their Asset Purchase Agreement and the credit and/or
liquidity coverage committed under the program-wide credit and/or liquidity
facilities for the commercial paper program of each Conduit Purchaser shall be
in the amounts required to maintain the then-current ratings of such Conduit
Purchaser’s Notes; and

 

(x)            There shall have been deposited into
the Incremental Funding Reserve Account an amount at least equal to the
Incremental Funding Reserve Deposit Amount for such Distribution Date.

 

(c)           Each Incremental Funding shall be
requested in a minimum principal amount of $5,000,000 and integral multiples of
$1,000,000 in excess thereof; provided, that an Incremental Funding may
be requested in the entire remaining Maximum Funded Amount (even if such amount
is less than $5,000,000).

 

(d)           The purchase price of each
Incremental Funding shall be equal to 100% of the allocation of the related
Incremental Funded Amount, and shall be paid not later than 1:00 p.m. New
York City time on the Incremental Funding Date by wire transfer of immediately
available funds to the Seller’s account no. 323-2-37053, titled “NFC Proceeds
Deposit Account,” ABA# 021-000-021, maintained at JPMorgan Chase Bank, N.A. (or
such other account as may from time to time be specified by the Seller in a
notice to the Administrative Agent(with a copy to each Managing Agent)).

 

(e)           Subject to the other provisions of
this Agreement, Incremental Funded Amounts shall be allocated between the
Purchaser Groups on a pro rata basis.

 

(f)            Defaulting
Committed Purchaser.  If, by
2:00 p.m. (New York City time), one or more Committed Purchasers (each, a “Defaulting Committed Purchaser”, and each
Committed Purchaser other than any Defaulting Committed Purchaser being
referred to as a “Non-Defaulting Committed
Purchaser”) fails to deposit its pro rata share of any Incremental
Funded Amount into the Seller’s Account pursuant to Section
2.03(d) (the aggregate amount not so made available
as the Incremental Funding Date being herein called in either case the “Investment Deficit”), then the related
Managing Agent for each Non-Defaulting Committed Purchaser shall, by no later
than 2:30 p.m. (New York City time) on the applicable Incremental Funding Date,
instruct each Non-Defaulting Committed Purchaser in its Purchaser Group to pay,
by no later than 3:00 p.m. (New York City time), in immediately available
funds, to the Seller’s account, an amount equal to the lesser of (i) such Non-Defaulting
Committed Purchaser’s proportionate share (based upon the relative Purchaser
Percentage of the Non-Defaulting Committed Purchasers) of the Investment
Deficit and (ii) its unused Commitment. 
A Defaulting Committed Purchaser shall forthwith, upon demand, pay to
its Managing Agent for the ratable benefit of the Non-Defaulting Committed
Purchasers all amounts paid by each such Non-Defaulting Committed Purchaser on
behalf of such Defaulting Committed Purchaser, together with interest thereon,
for each day from the date a payment was made by a Non-Defaulting Committed
Purchaser until the date such Non-Defaulting Committed Purchaser

 

13

 

has been paid such
amounts in full, at a rate per  annum equal to the sum of the Alternate Rate,
plus 2.00% per
annum.

 

SECTION 2.04.      Extension of Purchase Expiration Date.  The parties to this Agreement may mutually
agree in writing to the extension of the Purchase Expiration Date to a date no
later than 364 days following the date of such extension; provided, that
no agreement to any such extension shall be effective unless, the available
commitments of the Liquidity Purchasers under each Asset Purchase Agreement and
the credit and/or liquidity coverage committed under the program-wide credit
and/or liquidity facilities for the commercial paper program of each Conduit
Purchaser will continue to be in effect after such extension in the aggregate
amounts, and for the period of the time, necessary to maintain the then-current
ratings of each such Conduit Purchaser’s Notes.

 

SECTION 2.05.      Reduction of Maximum Funded Amount.  The Seller may reduce in whole or in part the
Maximum Funded Amount (but not below the Invested Amount) by giving the
Administrative Agent (with a copy to each Managing Agent) written notice
thereof at least five Business Days before such reduction is to take place; provided,
however, that any partial reduction shall be in an aggregate amount of
$10,000,000, or any integral multiples of $5,000,000 in excess thereof.  Any such reduction in the Maximum Funded
Amount shall be permanent and shall be allocated between the Purchaser Groups
on a pro rata basis.  The applicable
Purchasers shall be paid any accrued and unpaid Non-Use Fees on the date of such
reduction with respect to the reduction amount.

 

SECTION 2.06.      Calculation of Monthly Interest.  (a)  On
or before the second Business Day after the end of each Due Period, each
Managing Agent shall calculate for the related Distribution Date, the Monthly
Interest payable on such Distribution Date with respect to each Funding Tranche
related to its Purchaser Group and provide such calculation to the
Administrative Agent who shall provide such calculation to the Servicer in
writing.  If any Funding Tranche begins
to accrue interest at a Funding Rate other than a CP Rate after the date the
Administrative Agent provides the Monthly Interest calculation for any
Distribution Date, the applicable Managing Agent shall promptly provide the
Administrative Agent a calculation of the interest that will accrue on such
Funding Tranche and be included in the definition of “Monthly Interest” for
such Distribution Date.  The
Administrative Agent shall promptly provide such calculation to the Servicer
after receipt thereof.  The parties
acknowledge that the interest calculation set forth in clause (C) of the
definition of “Monthly Interest” shall be an estimate.  If the estimated accruals exceed the actual
accruals, the applicable Managing Agent shall reimburse the Seller for such
excess.  If the actual accruals exceed
the estimated accruals, the Seller shall remit such monies to the
Administrative Agent for the account of the applicable Purchaser Group.

 

(b)           All amounts payable with respect to
the Series 2000-VFC Certificate hereunder and under the Series Supplement
(other than in connection with amounts owing under the Administrative Agent Fee
Letter) shall be paid to the respective accounts designated by the Managing
Agents in the Fee Letter.  Amounts
payable to the Administrative Agent under the Administrative Agent Fee Letter
shall be paid to the account specified therein.

 

14

 

(c)           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 during an Early Amortization
Period or Amortization Period or the last day of a Fixed Period with respect to
such Funding Tranche, (ii) the Seller, or the Servicer acting on behalf of the
Seller, shall not have provided the Administrative Agent with the number of
days notice specified in the Series Supplement for such distribution of
principal and (iii) the interest paid by a Purchaser to providers of funds to
it to fund that Funding Tranche exceeds returns earned by such Purchaser from
the first day through the last day of that Fixed Period 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
Administrative Agent to the Servicer, such Purchaser 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.

 

ARTICLE
III

CLOSING

 

SECTION 3.01.      [Reserved].

 

SECTION 3.02.      [Reserved]

 

ARTICLE
IV

CONDITIONS PRECEDENT TO

EFFECTIVENESS OF AMENDMENT AND RESTATEMENT

 

The effectiveness of this Agreement is subject to the
satisfaction of the following conditions (any or all of which may be waived by
the Agents in their sole discretion):

 

SECTION 4.01.      Performance by the Seller and Servicer.  All the terms, covenants, agreements and
conditions of the Series Documents to be complied with and performed by the
Seller and the Servicer on or before the date hereof shall have been complied
with and performed in all material respects.

 

SECTION 4.02.      Representations and Warranties.  Each of the representations and warranties of
the Seller and the Servicer made in the Series Documents shall be true and
correct in all material respects as of the date hereof (except to the extent
they expressly relate to an earlier or later time).

 

SECTION 4.03.      Corporate Documents. 
The Managing Agents shall have received copies of (a) the (i) Certificate
of Incorporation, good standing certificate and By-Laws of NFC, (ii) Board of
Directors resolutions of NFC with respect to the Series Documents, and
(iii) incumbency certificate of NFC, each certified by appropriate
corporate authorities and (b) the (i) Certificate of Incorporation, good
standing certificate and By-Laws of the Seller,

 

15

 

(ii) Board of
Directors resolutions of the Seller with respect to the Series Documents, and
(iii) incumbency certificate of the Seller, each certified by appropriate
corporate authorities.

 

SECTION 4.04.      Opinions of Counsel to NFC and the Seller.  Counsel to NFC and the Seller shall have
delivered to each Managing Agent opinions, dated as of the date hereof, in form
and substance similar to the opinions of counsel delivered to the
Administrative Agent on or about the Closing Date.

 

SECTION 4.05.      Series 2000-VFC Certificate.  The existing Series 2000-VFC shall have been
returned for cancellation by the Administrative Agent and a new Series 2000-VFC
Certificate shall have been delivered to the Administrative Agent, on behalf of
the Purchasers hereunder.

 

SECTION 4.06.      Financing Statements. 
Each Managing Agent shall have received evidence satisfactory to it of
the completion of all recordings, registrations, and filings as may be
necessary or, in the opinion of any such Managing Agent, desirable to perfect
or evidence the transfer by each of NFC to the Seller and by the Seller to the
Master Trust of their respective ownership interests in the Dealer Notes and
the proceeds thereof and the security interest granted pursuant to Sections
2.01 and 2.02 of the Pooling and Servicing Agreement, including:

 

(a)           Acknowledgment copies of all UCC
financing statements and assignments that have been filed in the offices of the
Secretary of State of the applicable states and in the appropriate office or
offices of such other locations as may be specified in the opinions of counsel
delivered pursuant to Section 4.04 hereof; and

 

(b)           Certified copies of requests for
information (Form UCC-11) (or a similar search report certified by parties
acceptable to the Administrative Agent and its counsel) dated a date reasonably
near the date hereof and listing all effective financing statements which name
NFC, the Seller, as seller, assignor or debtor and which have been filed since
the Closing Date in all jurisdictions in which the filings were or will be
made, together with copies of such financing statements.

 

SECTION 4.07.      Ratings.  Each
Conduit Purchaser’s Notes shall continue to be rated at least A-1 by Standard
& Poor’s and P-1 by Moody’s.

 

SECTION 4.08.      Documents.  The
Liberty Street Managing Agent shall have received copies of each executed
counterpart of each of the Series Documents and each and every document or
certification delivered by any party in connection with any of such agreements,
and each such document shall be in full force and effect.  The Managing Agents shall have received duly
executed counterparts of all agreements, documents and other deliveries
executed and delivered in connection with this Agreement.

 

SECTION 4.09.      No Actions or Proceedings.  No action, suit, proceeding or investigation
by or before any Governmental Authority shall have been instituted to restrain
or prohibit the consummation of, or to invalidate, the transactions
contemplated by the Series Documents and the documents related thereto in any
material respect.

 

16

 

SECTION 4.10.      Approvals and Consents. 
All Governmental Actions of all Governmental Authorities required with
respect to the transactions contemplated by the Series Documents and the
other documents related thereto shall have been obtained or made.

 

SECTION 4.11.      Officer’s Certificates. 
The Managing Agents shall have received Officer’s Certificates from NFC
and the Seller in form and substance reasonably satisfactory to the Managing
Agents and their counsel, dated as of the date hereof, certifying as to the
satisfaction of the conditions set forth in Sections 4.01 and 4.02
hereof with respect to NFC and the Seller, respectively.

 

SECTION 4.12.      Payment to KHFC. 
BNS shall have paid to account #00362941, ABA #021001033, titled DBCO as
Depositary for KHFC, reference “Navistar” at Deutsche Bank, and KHFC shall have
received, the sum of $100,000,000 in connection with the reduction of KHFC’s
Funded Amount on the date hereof.  All
Monthly Interest and fees accrued up to but excluding the Effective Date, but
not heretofore paid, shall be due and payable to the KHFC Purchaser Group on
the January 2005 Distribution Date.

 

SECTION 4.13.      Other Documents. 
The Seller shall have furnished to the Administrative Agent and Managing
Agents such other information, certificates and documents as the Administrative
Agent and the Managing Agents may reasonably request.

 

SECTION 4.14.      Fees.  Each fee
specified in the Fee Letter as being due on the date hereof shall have been
paid and each fee specified in the Administrative Agent Fee Letter as being due
on the date hereof shall have been paid.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

SECTION 5.01.      Representations and Warranties of the Seller.  The Seller hereby makes the following
representations and warranties to the Purchasers, the Managing Agents and the
Administrative Agent, as of the date hereof and as of each Incremental Funding
Date, and the Purchasers, the Managing Agents and the Administrative Agent
shall be deemed to have relied on such representations and warranties in
purchasing the Series 2000-VFC Certificate on the Closing Date, entering into
the Agreement and in making (or committing to make) each Incremental Funding on
each Incremental Funding Date.

 

(a)           The Seller repeats and reaffirms to
the Purchasers and the Administrative Agent the representations and warranties
of the Seller set forth in Sections 2.04 and 2.05 of the Pooling and Servicing
Agreement and represents and warrants that such representations and warranties
are true and correct.

 

(b)           Each of the Series Documents 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 (i) bankruptcy, insolvency, reorganization, moratorium or other similar laws
now or hereafter in effect relating to creditors’ rights generally and (ii)
general principles of equity and the discretion of the court before which any
proceeding therefor may be brought.

 

17

 

(c)           The Series 2000-VFC Certificate has
been duly and validly authorized, and, when executed and authenticated in
accordance with the terms of the Pooling and Servicing Agreement and the Series
Supplement, 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 Pooling and Servicing Agreement and the Series Supplement,
except that the enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect relating to creditors’ rights generally and (ii) general principles
of equity and the discretion of the court before which any proceeding therefor
may be brought.

 

(d)           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 (i) asserting the
invalidity of this Agreement, any other Series Document or the Series 2000-VFC,
(ii) seeking to prevent the issuance of the Series 2000-VFC or the consummation
of any of the transactions contemplated by this Agreement or any other Series
Document, (iii) that might materially and adversely affect the performance by
Seller of its obligations under, or the validity or enforceability of, this
Agreement, any other Series Document or the Series 2000-VFC or (iv) that if
determined adversely as to Seller would have a Material Adverse Effect.

 

(e)           The Seller (i) is not in violation of
its Certificate of Incorporation or By-Laws and (ii) 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.

 

(f)            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 Series Documents or
otherwise applicable to the Seller in connection with the Master Trust have
been paid or will be paid by the Seller prior to the date hereof or Incremental
Funding Date, as applicable, 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.

 

(g)           The Master Trust has been duly
created and is validly existing under the laws of the State of Illinois.  The Seller has authorized the Master Trust to
issue and sell the Series 2000-VFC Certificate.

 

(h)           On the date hereof and on each
Incremental Funding Date, the Seller is not insolvent or the subject of any
voluntary or involuntary bankruptcy proceeding.

 

(i)            No proceeds of a purchase hereunder
will be used by the Seller (i) 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 (ii) to acquire any security
in any transaction in violation of Section 13 or 14 of the Securities Exchange
Act of 1934, as amended.

 

(j)            Assuming the accuracy of the
representations and warranties of the Purchaser in Article VI of this
Agreement, the sale of the Series 2000-VFC Certificate pursuant to the terms

 

18

 

of this Agreement,
the Pooling and Servicing Agreement and the Series Supplement will not require
registration of the Series 2000-VFC Certificate under the Act.

 

(k)           Neither the Master 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.

 

(l)            No written information furnished or
to be furnished by the Seller or any of its Affiliates, agents or
representatives to the Purchasers, the Managing Agents or the Administrative
Agent for purposes of or in connection with this Agreement, including, without
limitation, any reports delivered pursuant to Section 7A.01 and any
information relating to the Dealer Notes and NFC’s dealer 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 Purchasers,
the Managing Agents or the Administrative Agent.

 

(m)          On the date hereof and on each
Incremental Funding Date, the Subordinated Percentage shall equal or exceed
15.5%.

 

SECTION 5.02.      Representations and Warranties of NFC.  NFC hereby makes the following
representations and warranties to the Purchasers, the Managing Agents and the
Administrative Agent, as of the Closing Date, the date hereof and as of each
Incremental Funding Date, and the Purchasers and the Administrative Agent shall
be deemed to have relied on such representations and warranties in purchasing
the Series 2000-VFC Certificate on the Closing Date, in entering into this
Agreement on the date hereof and in making (or committing to make) each
Incremental Funding on each Incremental Funding Date.

 

(a)           NFC repeats and reaffirms to the
Purchasers, the Managing Agents and the Administrative Agent the
representations, warranties and covenants of the Servicer set forth in Section
3.03 of the Pooling and Servicing 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.

 

(b)           No Governmental Action which has not
been obtained is required by or with respect to NFC in connection with any of
the Series Documents, except any such failure which would not have a Material
Adverse Effect.

 

(c)           Each of the Series 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 (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect relating to creditors’ rights generally and (ii) general principles
of equity and the discretion of the court before which any proceeding therefor
may be brought.

 

(d)           The Series 2000-VFC Certificate has
been duly and validly authorized, and, when executed and authenticated in
accordance with the terms of the Pooling and Servicing Agreement

 

19

 

and the Series
Supplement, 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 Pooling and Servicing Agreement and the Series Supplement,
except that the enforcement thereof may be subject to (i) bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect relating to creditors’ rights generally and (ii) general principles
of equity and the discretion of the court before which any proceeding therefor
may be brought.

 

(e)           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 (i) asserting the
invalidity of this Agreement, any other Series Document or the Series 2000-VFC,
(ii) seeking to prevent the issuance of the Series 2000-VFC or the consummation
of any of the transactions contemplated by this Agreement or any other Series
Document, (iii) that might materially and adversely affect the performance by
either of NFC or the Seller of its obligations under, or the validity or
enforceability of, this Agreement, any other Series Document or (iv) that if
determined adversely as to NFC or the Seller would have a Material Adverse
Effect.

 

(f)            NFC (i) is not in violation of its
Certificate of Incorporation or By-Laws and (ii) 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 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.

 

(g)           Any taxes, fees and other charges of
Governmental Authorities applicable to NFC in connection with the execution,
delivery and performance by NFC of the Series Documents or otherwise applicable
to NFC in connection with the Master Trust have been paid or will be paid by
NFC at or prior to the Closing Date, the date hereof or each Incremental
Funding Date, as applicable, 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.

 

(h)           The Master Trust has been duly
created and is validly existing under the laws of the State of Illinois.

 

(i)            On the date hereof and on each
Incremental Funding Date, NFC is not insolvent or the subject of any insolvency
proceeding.

 

(j)            No written information furnished or
to be furnished by NFC or its Affiliates, agents or representatives to the
Purchasers, the Managing Agents or the Administrative Agent for purposes of or
in connection with this Agreement, including, without limitation, any reports
delivered pursuant to Section 7A.01 and any information relating to the
Dealer Notes and NFC’s dealer 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 Purchasers, the Managing Agents or the Administrative
Agent.

 

20

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

WITH RESPECT TO THE CONDUIT PURCHASERS

 

Each Managing Agent, on
behalf of the Purchasers in its Purchaser Group, hereby makes the following
representations and warranties to the Seller and NFC on which the Seller and
NFC shall rely in entering into this Agreement.

 

SECTION
6.01.      Organization.  The Conduit Purchaser has been duly organized
and is validly existing and in good standing as a corporation, or limited
liability company, as the case may be, under the laws of the State governing
its incorporation or formation, as the case may be, with power and authority to
own its properties and to transact the business in which it is now engaged and
the Conduit Purchaser is duly qualified to do business and is in good standing
(or is exempt from such requirements) in each State of the United States where
the nature of its business requires it to be so qualified and the failure to be
so qualified and in good standing would have a material adverse effect on the
interests of the Seller.

 

SECTION
6.02.      Authority, etc.  The Conduit Purchaser has all requisite power
and authority to enter into and perform its obligations under this
Agreement and to consummate the transactions contemplated hereby and
thereby.  The execution and delivery by
the Conduit Purchaser of this Agreement and the consummation by the
Conduit Purchaser of the transactions contemplated hereby have been duly and
validly authorized by all necessary corporate action on the part of the Conduit
Purchaser.  This Agreement has been duly
and validly executed and delivered by the Conduit Purchaser and constitutes a
legal, valid and binding obligation of the Conduit Purchaser, enforceable
against the Conduit Purchaser in accordance with its terms, subject as to
enforcement to bankruptcy, reorganization, insolvency, moratorium and other
similar laws of general applicability relating to or affecting creditors’
rights and to general principles of equity. 
Neither the execution and delivery by the Conduit Purchaser of this Agreement nor
the consummation by the Conduit Purchaser of any of the transactions
contemplated hereby, nor the fulfillment by the Conduit Purchaser of the terms
hereof, will conflict with, or violate, result in a breach of or constitute a
default under any term or provision of the Articles of Incorporation or By-laws
of the Conduit Purchaser or any Governmental Rule applicable to the Conduit
Purchaser.

 

SECTION
6.03.      Securities Act.  The Series 2000-VFC Certificate purchased by
the Administrative Agent on behalf of the Purchasers pursuant to this
Agreement will be acquired for investment only and not with a view to any
public distribution thereof, and no Conduit Purchaser will offer to sell or
otherwise dispose of its interest in the Series 2000-VFC Certificate 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 Administrative
Agent and each Purchaser acknowledges that it has no right to require the Seller
to register under the Act or any other securities law any Series 2000-VFC
Certificate to be acquired by the Administrative Agent on behalf of such
Purchaser pursuant to this Agreement.

 

The Conduit Purchasers, the
Committed Purchasers, the Managing Agents and Administrative Agent have such
knowledge and experience in financial and business matters as

 

21

 

to be capable of evaluating the merits and
risks of an investment in the Series 2000-VFC Certificate and the Conduit
Purchasers, the Managing Agents, and Committed Purchaser are able to bear the
economic risk of such investment. The Conduit Purchasers, the Managing Agents,
Committed Purchasers and Administrative Agent have reviewed the Pooling and
Servicing Agreement and the Series Supplement (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 Master Trust and the Series 2000-VFC
Certificate. Each of the Conduit Purchasers, the Committed Purchasers, the
Managing Agents and Administrative 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.

 

SECTION
6.04.      Investment Company Act.  Neither the Purchasers nor any Agent is
required to register as an “investment company” nor is any Purchaser or Agent
controlled by an “investment company” within the meaning of the Investment
Company Act of 1940, as amended.

 

ARTICLE VII

 

COVENANTS OF THE SELLER

 

SECTION
7.01.      Access to Information.  So long as any Series 2000-VFC Certificate
remains outstanding, the Seller will, at any time from time to time during
regular business hours with reasonable notice to the Seller, permit the
Purchasers, the Managing Agents or the Administrative 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
relating to the Dealer Notes, and

 

(b)           visit the offices and property of the Seller for the
purpose of examining such materials described in clause (a) above.

 

Except as provided in Section
11.05, any information obtained by the Purchasers, the Managing Agents or
the Administrative Agent pursuant to this Section 7.01 shall be held in
confidence by the Purchasers, the Managing Agents and the Administrative 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), the Purchasers, the Managing Agents and the
Administrative 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
7.02.      Security Interests; Further
Assurances.  The Seller will take all
action reasonably necessary to maintain the Master Trust Trustee’s first
priority perfected ownership or security interest in the Dealer Notes and the
collateral granted pursuant to Sections 2.01 and 2.02 of the Pooling and
Servicing Agreement.  The Seller agrees
to take any and all acts and to execute any and all further instruments
necessary or reasonably requested by a Conduit

 

22

 

Purchaser, a Managing Agent or the
Administrative Agent to more fully effect the purposes of this Agreement.

 

SECTION
7.03.      Covenants.  The Seller will duly observe and perform each
of its covenants set forth in the other Series Documents in all material
respects.

 

SECTION
7.04.      Amendments.  The Seller will not make, or permit any
Person to make, any amendment, modification or change to, or provide any waiver
under the Series Supplement without the prior written consent of the Managing
Agents.

 

ARTICLE VIIA

 

COVENANTS OF NFC

 

SECTION
7A.01   Information from NFC.  So long as the Series 2000-VFC Certificate
remains outstanding, NFC will furnish to the Administrative Agent (who will
promptly forward copies thereof to each Managing 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 Master Trust Trustee or the Rating
Agencies under any Series 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 Series Document;

 

(b)           such other information (including financial information),
documents, records or reports respecting the Master Trust, the Dealer Notes,
the Seller or, to the extent it relates to the origination of Dealer Notes or
the servicing of the Master Trust, NFC, as the Administrative Agent, on its own
behalf or on behalf of a Purchaser, or a Managing 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;

 

(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
Early Amortization Event or event which with the giving of notice or the
passage of time or both would constitute an Early Amortization Event; and

 

(e)           as soon as possible and in any event within sixty days
after the formation of a special purpose entity having an ownership interest in
the DealCor dealers, an opinion of counsel, in form and substance satisfactory
to each Agent, with respect to certain bankruptcy matters.

 

SECTION
7A.02   Access to Information.  So long as any Series 2000-VFC Certificate
remains outstanding, NFC will, at any time from time to time during regular
business

 

23

 

hours with reasonable notice to NFC, permit
the Purchasers, each Managing Agent and the Administrative 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 NFC
relating to the Dealer Notes, and

 

(b)           visit the offices and property of NFC for the purpose of
examining such materials described in clause (a) above.

 

Except as provided in Section
11.05, any information obtained by a Purchaser or an Agent pursuant to this
Section 7A.02 shall be held in confidence by such Purchaser or 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), the Purchasers, the Managing Agents and the Administrative
Agent shall use commercially reasonable efforts to (x) provide NFC with advance
notice of any such disclosure and (y) cooperate with NFC in limiting the extent
or effect of any such disclosure.

 

SECTION
7A.03   Covenants.  NFC will duly observe and perform each of its
covenants set forth in the other Series Documents in all material respects.

 

SECTION
7A.04   Amendments.  NFC will not make, or permit any Person to
make, any material amendment, modification or change to, or provide any waiver
under the Series Supplement without the prior written consent of the Managing
Agents.

 

ARTICLE VIII

 

ADDITIONAL COVENANTS

 

SECTION
8.01.      Legal Conditions to
Effectiveness of this Agreement.  The
parties hereto will take all reasonable action necessary to obtain (and will
cooperate with one another in obtaining) any consent, authorization, permit,
license, franchise, order or approval of, or any exemption by, any Governmental
Authority or any other Person, required to be obtained or made by it in
connection with any of the transactions contemplated by this Agreement.

 

SECTION
8.02.      Expenses.  Whether or not the Effective Date shall
occur, except as otherwise expressly provided herein or in the Fee letter, all
costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall (as between the Seller, the
Administrative Agent, the Managing Agents and the Purchasers) be paid by the
Seller.

 

SECTION
8.03.      Mutual Obligations.  On and after the Effective Date, each party
hereto will do, execute and perform all such other acts, deeds and documents as
the other party may from time to time reasonably require in order to carry out
the intent of this Agreement.

 

SECTION
8.04.      Restrictions on Transfer.  Each Purchaser and Agent agrees that it will
comply with the restrictions on transfer of the Series 2000-VFC Certificate set
forth in the Pooling and Servicing Agreement and the Series Supplement and that
it will resell the Series 2000-VFC Certificate only in compliance with such
restrictions; provided, however, that the

 

24

 

Seller acknowledges that in the event of the
purchase of the Series 2000-VFC Certificate by any Purchaser or RIC no such
purchaser will be required to execute and deliver the Investment Letter.

 

SECTION
8.05.      Consents, etc.  Each Purchaser and Agent agrees not to
unreasonably withhold or delay its consent to any amendment or other matter
requiring consent of the Series 2000-VFC Certificateholders under a provision
of any Series Document to the extent that such provision specifies that such
consent is not to be unreasonably withheld or delayed.

 

ARTICLE IX

 

INDEMNIFICATION

 

SECTION
9.01.      Indemnification.  (a) 
The Seller hereby agrees to indemnify and hold harmless each Indemnified
Party against any and all losses, claims, damages, liabilities or expenses
(including reasonable legal and accounting fees) (collectively, “Seller
Losses”), as incurred (payable promptly upon written request), for or on
account of or arising from or in connection with this Agreement, including any
breach of any representation, warranty or covenant of the Seller in this
Agreement or in any certificate or other written material delivered pursuant
hereto.

 

(b)           NFC hereby agrees to indemnify and hold harmless each
Indemnified Party against any and all losses, claims, damages, liabilities or
expenses (including reasonable legal and accounting fees) (collectively, “NFC
Losses”), as incurred (payable promptly upon written request), for or on
account of or arising from or in connection with any breach of any representation,
warranty or covenant of NFC in this Agreement or in any certificate or other
written material delivered pursuant hereto.

 

(c)           Notwithstanding Sections 9.01(a) and (b), in
no event shall any Indemnified Party be indemnified for Seller Losses or NFC
Losses to the extent (i) resulting from the performance of the Dealer Notes,
market fluctuations or other similar market or investment risks associated with
ownership of the Series 2000-VFC Certificates, (ii) which would otherwise be
covered in Sections 9.04 and 9.05 hereof, (iii) arising from such
Indemnified Party’s gross negligence or willful misconduct, (iv) arising from a
breach of any representation or warranty set forth in the Pooling and Servicing
Agreement, a remedy for the breach of which is provided in Section 2.06 of the
Pooling and Servicing Agreement or (v) arising from a breach of any
representation or warranty set forth in the Purchase Agreement, a remedy for
the breach of which is provided in Section 4.06(d) of the Purchase Agreement.

 

SECTION
9.02.      Procedure.  In order for an Indemnified Party to be
entitled to any indemnification provided for under this Agreement in respect
of, arising out of, or involving a claim made by any Person against the
Indemnified Party (a “Third Party Claim”), such Indemnified Party must
notify NFC or the Seller, as applicable (the “Applicable Indemnifying Party”)
in writing of the Third Party Claim within a reasonable time after receipt by
such Indemnified Party of written notice of the Third Party Claim unless the
Applicable Indemnifying Party shall have previously obtained actual knowledge
thereof.  Thereafter, the Indemnified

 

25

 

Party shall deliver to the Applicable
Indemnifying Party, within a reasonable time after the Indemnified Party’s
receipt thereof, copies of all notices and documents (including court papers)
received by the Indemnified Party relating to the Third Party Claim.

 

SECTION
9.03.      Defense of Claims.  If a Third Party Claim is made against an
Indemnified Party, (a) the Applicable Indemnifying Party will be entitled
to participate in the defense thereof and, (b) if it so chooses, to assume
the defense thereof with counsel selected by the Applicable Indemnifying Party,
provided that in connection with such assumption (i) such counsel is not reasonably
objected to by the Indemnified Party and (ii) the Applicable Indemnifying Party
first admits in writing their joint and several liability to indemnify the
Indemnified Party with respect to all elements of such claim in full.  Should the Applicable Indemnifying Party so
elect to assume the defense of a Third Party Claim, the Applicable Indemnifying
Party will not be liable to the Indemnified Party for any legal expenses
subsequently incurred by the Indemnified Party in connection with the defense thereof.  If the Applicable Indemnifying Party elects
to assume the defense of a Third Party Claim, the Indemnified Party will (i)
cooperate in all reasonable respects with the Applicable Indemnifying Party in
connection with such defense and (ii) not admit any liability with respect to,
or settle, compromise or discharge, such Third Party Claim without the
Applicable Indemnifying Party’s prior written consent, as the case may be.  If the Applicable Indemnifying Party shall
assume the defense of any Third Party Claim, the Indemnified Party shall be
entitled to participate in (but not control) such defense with its own counsel
at its own expense.  If the Applicable
Indemnifying Party does not assume the defense of any such Third Party Claim,
the Indemnified Party may defend the same in such manner as it may deem
appropriate, including settling such claim or litigation after giving notice to
the Applicable Indemnifying Party of such terms and the Applicable Indemnifying
Party will promptly reimburse the Indemnified Party upon written request.  Anything contained in this Agreement to the
contrary notwithstanding, an Applicable Indemnifying Party shall be entitled to
assume the defense of any part of a Third Party Claim that seeks an order,
injunction or other equitable relief or relief for other than money damages
against the Indemnified Party.

 

SECTION
9.04.      Indemnity for Taxes,
Reserves and Expenses.  (a)  If after the date hereof, the adoption of any
applicable law, rule, standard or regulation by any Official Body or any
amendment or change in the interpretation of any existing or future applicable
law, rule, standard or regulation by any Official Body charged with the
administration, interpretation or application thereof (including, but not
limited to, any interpretation of Accounting Research Bulletin No. 51 by the
Financial Accounting Standards Board) or the compliance with any directive of
any Official Body (whether or not having the force of Governmental Rule):

 

(i)            shall subject any Indemnified Party
to any tax, duty, deduction or other charge with respect to the Dealer Notes,
the Pooling and Servicing Agreement, the Series Supplement, the Series 2000-VFC
Certificate, this Agreement or payments of amounts due thereunder, or shall
change the basis of taxation of payments to any Indemnified Party of amounts
payable in respect thereof (except for changes in the rate of general
corporate, franchise, net income or other income tax (including by means of
withholding) imposed on such Indemnified Party by the United States of America,
the jurisdiction in which such Indemnified Party’s principal executive office
is located or any other

 

26

 

jurisdiction in which the
Indemnified Party would be subject to such tax even if the transactions
contemplated by this Agreement had not occurred); or

 

(ii)           shall impose, modify or deem
applicable any reserve, capital, special deposit or similar requirement
(including, without limitation, any such requirement imposed by the Board of
Governors of the Federal Reserve System) against assets of, deposits with or
for the account of, or credit extended by, any Indemnified Party or shall
impose on any Indemnified Party or on the United States market for certificates
of deposit or the London interbank market any other condition affecting the
Dealer Notes, the Pooling and Servicing Agreement, the Series Supplement, the
Series 2000-VFC Certificate, this Agreement or payments of amounts due
thereunder (including with respect to Eurocurrency liability reserves); or

 

(iii)          imposes upon any Indemnified Party any
other cost or expense (including, without limitation, reasonable attorneys’
fees and expenses, and expenses of litigation or preparation therefor in
contesting any of the foregoing if such a contest is requested by the
Applicable Indemnifying Party) with respect to the Dealer Notes, the Series
2000-VFC Certificate, any Series Document or payments of amounts due hereunder
or thereunder;

 

and the result of any of the foregoing is to
increase the cost or reduce the payments to such Indemnified Party with respect
to the Dealer Notes, the Pooling and Servicing Agreement, the Series
Supplement, the Series 2000-VFC Certificate, this Agreement or payments of
amounts due thereunder or the obligations thereunder or the funding of any
purchases (including Incremental Fundings) with respect thereto by any
Purchaser, by an amount deemed by such Indemnified Party to be material, then
such amount or amounts as will compensate such Indemnified Party for such
increased cost or reduced payments shall be payable to such Indemnified Party
in accordance with Section 9.05(c).

 

(b)           If any Indemnified Party shall have determined that, after
the date hereof, the adoption of any applicable law, rule, standard or
regulation by any Official Body regarding or related to capital adequacy, or
any change therein, or any change in the interpretation thereof by any Official
Body, or any directive regarding or related to capital adequacy (whether or not
having the force of a Governmental Rule) of any such Official Body, has or would
have the effect of reducing the rate of return on capital of such Indemnified
Party’s obligations hereunder or with respect hereto to a level below that
which such Indemnified Party (or its parent) could have achieved but for such
adoption, change, request or directive (taking into consideration its policies
with respect to capital adequacy) by an amount deemed by such Indemnified Party
to be material, then from time to time, such additional amount or amounts as
will compensate such Indemnified Party (or its parent) for such reduction shall
be payable to such Indemnified Party in accordance with Section 9.05(c).  For avoidance of doubt, any interpretation of
Accounting Research Bulletin No. 51 by the Financial Accounting Standards Board
shall constitute an adoption, change, request or directive subject to this
Section 9.4(b).

 

(c)           Any Indemnified Party who makes a demand for payment of
increased costs or capital pursuant to Section 9.04(a) or (b)
shall promptly deliver to the Seller a certificate setting forth in reasonable
detail the computation of such increased costs or capital and specifying the

 

27

 

basis therefor.  In the absence of manifest error, such
certificate shall be conclusive and binding for all purposes.  Each Indemnified Party shall use reasonable
efforts to mitigate the effect upon of any such increased costs or capital
requirements; provided, it shall not be obligated to take any action
that it determines would be disadvantageous to it or inconsistent with its
policies.

 

SECTION
9.05.      Costs, Expenses, Taxes,
Breakage Payments and Increased Costs under this Agreement and Program Facility.  (a) 
Subject to the payment terms of Section 9.05, each of the Seller and NFC
agree to pay to the Administrative Agent, each Purchaser and its Managing Agent
(i) all reasonable costs and expenses in connection with the preparation,
execution and delivery of this Agreement, the other documents to be delivered
hereunder or in connection herewith and any requested amendments, waivers or
consents or examination or visit by the Purchasers, the Managing Agents or
Administrative Agent pursuant to Section 7.01 or 7A.02 hereof
including, without limitation, the reasonable fees and out-of-pocket expenses
of counsel for the Purchasers, the Managing Agents and the Administrative
Agent, with respect thereto and with respect to advising the Purchasers, the
Managing Agents and the Administrative Agent as to its respective rights and
remedies under this Agreement and the other documents delivered hereunder or in
connection herewith and (ii) all costs and expenses, if any, in connection with
the enforcement of this Agreement and the other documents delivered hereunder
or in connection herewith.

 

(b)           Subject to the payment terms of Section 9.05, each
of NFC and the Seller agrees to pay any and all stamp and other taxes and fees
payable in connection with the execution, delivery, filing and recording of
this Agreement, the Series 2000-VFC Certificate or the other documents and
agreements to be delivered hereunder, and agrees to hold each Purchaser, each
Managing Agent and the Administrative Agent harmless from and against any
liabilities with respect to or resulting from any delay in paying or omission
to pay such taxes and fees.

 

(c)           The Seller shall be obligated to pay the amount of any
Breakage Payments, other Additional Amounts or Non-Use Fee payable on each
Distribution Date to the extent not paid when required pursuant to
Section 4.04 of the Series Supplement; provided, that the Seller
shall be required to make such payments solely to the extent of any cash flows
payable to the Seller on such date from the Master Trust.  If and to the extent that any Additional
Amounts (other than Breakage Payments) or Non-Use Fee shall remain outstanding
after payment by the Seller pursuant to the preceding sentence on any
Distribution Date, NFC shall be required to make such payments within 10 days
after demand therefor by the Administrative Agent or the applicable payee.

 

(d)           If a Conduit Purchaser becomes obligated to compensate any
financial institution under its commercial paper program as a result of any
events or circumstances similar to those described in Sections 9.04 or 9.05(c),
such Conduit Purchaser shall promptly deliver to the Seller a certificate
setting forth in reasonable detail the computation of such amounts.  In the absence of manifest error, such
certificate shall be conclusive and binding for all purposes.  The Seller shall be obligated to pay to such
Conduit Purchaser, promptly after receipt of such certificate, such additional
amounts as may be necessary to reimburse such Conduit Purchaser for any amounts
so paid by such Conduit Purchaser.  With
respect to amounts to be paid pursuant to this Section 9.05(d) as a
result of any events or circumstances similar to those described in Section
9.04 or 9.05(c) hereof, the applicable Conduit Purchaser shall
request the party to be compensated to use

 

28

 

its reasonable efforts to mitigate the effect
upon the Seller of any such increased costs or capital requirements; provided,
such party shall not be obligated to take any action that it determines would
be disadvantageous to it or inconsistent with its policies.

 

ARTICLE X

 

THE AGENTS

 

SECTION
10.01.    Authorization and Action.  Each Purchaser hereby accepts the appointment
of and authorizes each Agent to take such action as agent on its behalf and to
exercise such powers as are delegated to such Agent by the terms hereof,
together with such powers as are reasonably incidental thereto.  Such Agent reserves the right, in its sole discretion,
to take any actions and exercise any rights or remedies under this Agreement
and any related agreements and documents. 
Except for actions which an Agent is expressly required to take pursuant
to this Agreement or an Asset Purchase Agreement, such Agent shall not be
required to take any action which exposes such Agent to personal liability or
which is contrary to applicable law unless such Agent shall receive further
assurances to its satisfaction from the Purchasers, of the indemnification obligations
under Section 10.04 hereof against any and all liability and expense
which may be incurred in taking or continuing to take such action.  Each Agent agrees to give to the Purchasers
prompt notice of each notice and determination given to it by the Seller, the
Servicer or the Master Trust Trustee, pursuant to the terms of this Agreement,
the Pooling and Servicing Agreement or the Series Supplement.  Subject to Section 10.06 hereof, the
appointment and authority of each Agent hereunder shall terminate upon (i) the
payment to (a) the Purchasers of all amounts owing to the Purchasers hereunder
and (b) each Agent of all amounts due hereunder and (ii) the Series Termination
Date specified in the Series Supplement.

 

SECTION
10.02.    Agent’s Reliance, Etc.  No Agent nor any of its directors, officers,
agents or employees shall be liable for any action taken or omitted to be taken
by it or them as an Agent under or in connection with this Agreement or any
related agreement or document, except for its or their own gross negligence or
willful misconduct.  Without limiting the
foregoing, each Agent:  (i) may consult
with legal counsel, independent public accountants and other experts selected
by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or
experts; (ii) makes no warranty or representation to the Purchasers or Agents
and shall not be responsible to the Purchasers or Agents for any statements,
warranties or representations made by the Seller or NFC (in any capacity) in
connection with any Series Document; (iii) shall not have any duty to ascertain
or to inquire as to the performance or observance of any of the terms,
covenants or conditions of any Series Document on the part of the Seller or NFC
(in any capacity) or to inspect the property (including the books and records)
of the Seller or NFC (in any capacity); (iv) shall not be responsible to any
Purchaser or Agents for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of this Agreement or any other instrument or
document furnished pursuant hereto; and (v) shall incur no liability under or
in respect of this Agreement by acting upon any notice (including notice by
telephone), consent, certificate or other instrument or writing (which may be
by telex) believed by it in good faith to be genuine and signed or sent by the
proper party or parties.

 

29

 

SECTION
10.03.    Agents and Affiliates.  Each Agent and its respective Affiliates may
generally engage in any kind of business with the Seller, NFC or any Obligor,
any of their respective Affiliates and any Person who may do business with or
own securities of the Seller, NFC or any Obligor or any of their respective
Affiliates, all as if such entities were not an Agent and without any duty to
account therefor to the Purchasers.

 

SECTION
10.04.    Indemnification.  Each Purchaser (other than the Conduit
Purchasers) severally agrees to indemnify the Administrative Agent and its
related Managing Agent (to the extent not reimbursed by the Seller or NFC),
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may be imposed on, incurred by, or asserted
against such Agents in any way relating to or arising out of this Agreement or
any action taken or omitted by such Agents under this Agreement; provided, that
(i) no Purchaser shall be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting or arising from such Agent’s gross
negligence or willful misconduct and (ii) no Purchaser shall be liable for any
amount in respect of any compromise or settlement or any of the foregoing
unless such compromise or settlement is approved by each Conduit Purchaser and
the majority of the Committed Purchasers (in the case of Liquidity Purchasers,
based on purchase commitments under the related Asset Purchase Agreement and in
the case of this Agreement, based on Commitments hereunder).  Without limitation of the generality of the
foregoing, each Purchaser (other than a Conduit Purchaser), agrees to reimburse
the Administrative Agent and its related Managing Agent, promptly upon demand,
for any reasonable out-of-pocket expenses (including reasonable counsel fees)
incurred by such Agents in connection with the 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, provided, that no Purchaser shall be responsible for the costs
and expenses of such Agents in defending itself against any claim alleging the
gross negligence or willful misconduct of such Agents to the extent such gross
negligence or willful misconduct is determined by a court of competent
jurisdiction in a final and non-appealable decision.

 

SECTION
10.05.    Purchase Decision.  Each Purchaser acknowledges that it has,
independently and without reliance upon any Agent, and based on such documents
and information as it has deemed appropriate, made its own evaluation and
decision to enter into this Agreement and to purchase an interest in the Series
2000-VFC Certificate.  Each Purchaser also
acknowledges that it will, independently and without reliance upon any Agent or
any of its Affiliates, and based on such documents and information as it shall
deem appropriate at the time, continue to make its own decisions in taking or
not taking action under this Agreement or any related agreement, instrument or
other document.

 

SECTION
10.06.    Successor Administrative
Agent.  The Administrative Agent may
resign at any time by giving sixty days’ written notice thereof to the
Purchasers, the Managing Agents, the Seller, the Servicer and the Master Trust
Trustee.  Upon any such resignation, the
Purchasers shall have the right to appoint a successor Administrative Agent
approved by the Seller (which approval will not be unreasonably withheld or
delayed).  If no successor Administrative
Agent shall have been so appointed and shall have accepted such appointment,
within sixty days after the retiring Administrative Agent’s giving of notice of
resignation, then

 

30

 

the retiring Administrative Agent may, on
behalf of the Purchasers, appoint a successor Administrative Agent.  If such successor Administrative Agent is not
an Affiliate of the resigning Administrative Agent, such successor
Administrative Agent shall be subject to the Seller’s prior written approval
(which approval will not be unreasonably withheld or delayed).  Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor Administrative Agent, such
successor Administrative Agent shall thereupon succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged
from its duties and obligations under this Agreement.  After any retiring Administrative Agent’s
resignation hereunder as Administrative Agent, the provisions of this Article
X shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was an Administrative Agent under this Agreement.

 

ARTICLE XI

 

MISCELLANEOUS

 

SECTION
11.01.    Amendments.  No amendment or waiver of any provision of
this Agreement shall in any event be effective unless the same shall be in
writing and signed by all of the parties hereto, and then such amendment,
waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given.

 

SECTION
11.02.    Notices.  All notices and other communications provided
for hereunder shall, unless otherwise stated herein, be in writing (including
telecopies, telegraphic, telex or cable communication) and mailed, telecopied,
telegraphed, cabled or delivered, as to each party hereto, at its address set
forth in Schedule I hereto or at such other address as shall be
designated by such party in a written notice to the other party hereto.  All such notices and communications shall,
when mailed, telecopied, telegraphed or cabled, be effective when deposited in
the mail, confirmed by telephone, delivered to the telegraph company or
delivered to the cable company, respectively.

 

SECTION
11.03.    No Waiver; Remedies.  No failure on the part of any party hereto to
exercise, and no delay in exercising, any right hereunder shall operate as a
waiver thereof; nor shall any single or partial exercise of any right hereunder
preclude any other or further exercise thereof or the exercise of any other
right.  The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

 

SECTION
11.04.    Binding Effect; Assignability.  (a) 
This Agreement shall be binding upon and inure to the benefit of the
Seller, NFC, the Administrative Agent, the Managing Agents and the Purchasers
party this Agreement and their respective successors and assigns (including any
subsequent holders of the Series 2000-VFC Certificate); provided, however,
that the Seller shall not have the right to assign its rights hereunder or any
interest herein (by operation of law or otherwise) without the prior written
consent of each Managing Agent.  The
Administrative Agent agrees that it shall not transfer a Series 2000-VFC
Certificate without the Seller’s consent, unless such transfer (x) is to a
Purchaser, (y) is to a RIC or (z) occurs after the commencement of the Early
Amortization Period.

 

31

 

Without limiting the
foregoing, a Managing Agent on behalf of a Conduit Purchaser may, from time to
time, with prior or concurrent notice to the Seller and the Servicer, in one
transaction or a series of transactions, assign all or a portion of a Series
2000-VFC Certificate and its rights and obligations under this Agreement to a
RIC or a Committed Purchaser within its Purchaser Group.  Upon and to the extent of such assignment to
a RIC or Committed Purchaser, (i) the RIC or Committed Purchaser shall be the
owner of the assigned portion of the Series 2000-VFC Certificate, (ii) such
Managing Agent (or an Affiliate thereof) will act as Managing Agent for the RIC
or Committed Purchaser and the Administrative Agent shall act as Administrative
Agent for the RIC or Committed Purchaser as well as for the assigning Conduit
Purchaser, with all corresponding rights and powers, express or implied,
granted herein to the Administrative Agent, (iii) the RIC or Committed
Purchaser and their Program Support Providers and other related parties shall
have the benefit of all the rights and protections provided to the assigning
Conduit Purchaser and its Program Support Providers and other related parties,
respectively, herein and in the other Series Documents (including, without
limitation, any limitation on recourse against the assigning Conduit Purchaser
or related parties, any agreement not to file or join in the filing of a
petition to commence an insolvency proceeding against the assigning Conduit
Purchaser, and the right to assign to another RIC or Committed Purchaser as
provided in this paragraph), (iv) the RIC or Committed Purchaser shall assume
all obligations, if any, of the assigning Conduit Purchaser under and in
connection with this Agreement, and the assigning Conduit Purchaser shall be
released from such obligations, in each case to the extent of such assignment,
and the obligations of the assigning Conduit Purchaser (if any) and the RIC or
Committed Purchaser shall be several and not joint, (v) all distributions in
respect of principal or interest shall be made to the assigning Conduit
Purchaser and the RIC or Committed Purchaser, on a pro rata basis according to
their respective interests (or in the case of interest, the accrued amounts
thereof), (vi) the Funding Rate used to calculate the interest with respect to
the portions of the Series 2000-VFC Certificate owned on behalf of the RIC or
Committed Purchaser and funded with commercial paper notes issued by the RIC
from time to time shall be determined in the manner set forth in the definition
of “CP Rate” on the basis of the discount or interest rates applicable to
commercial paper issued by the RIC (rather than the assigning Conduit
Purchaser), (vii) 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 (viii) if requested by the Administrative
Agent, the parties will execute and deliver such further agreements and
documents and take such other actions as the Administrative Agent may
reasonably request to evidence and give effect to the foregoing.

 

(b)           Without the consent of the Seller, each Committed
Purchaser party to this Agreement may assign all or a portion of its rights and
obligations under this Agreement to any financial or other institution acceptable
to the Administrative Agent.  The parties
to each such assignment shall execute and deliver an Assignment and Acceptance
to the Administrative Agent, and the Administrative Agent shall promptly notify
the Seller of such assignment.  From and
after the effective date of such Assignment and Acceptance, the assigning
Committed Purchaser shall be relieved of its obligations hereunder to the
extent so assigned.

 

(c)           Assigned Amounts. 
At any time on or prior to the Purchase Expiration Date related to the
KHFC Purchaser Group, if the Managing Agent on behalf of the Conduit Purchaser
in the KHFC Group so elects, by written notice to the Administrative Agent,
such Conduit Purchaser does hereby assign, effective on the Assignment of, it
interest in the Funded Amount

 

32

 

and Series 2000-VFC Certificate at such time
to the Committed Purchasers in its Purchaser Group pursuant to this Section
11.04; provided, however, that unless such assignment is an assignment of all
of such Conduit Purchaser’s interest in the Funded Amount and the Series
2000-VFC Certificate in whole on or after such Conduit Purchaser Termination
Date, no such assignment shall take place pursuant to this Section 11.04 at a
time when such Conduit Purchaser is insolvent or subject to any voluntary or
involuntary bankruptcy proceeding.  No
further documentation or action on the part of a Conduit Purchaser or the
Seller shall be required to exercise the rights set forth in the immediately
preceding sentence, other than the giving of the notice by the related Managing
Agent on behalf of such Conduit Purchaser referred to in such sentence and the
delivery by the Managing Agent of a copy of such notice to each Committed
Purchaser in its Purchaser Group (the date of the receipt by the related
Managing Agent of any such notice being the “Assignment Date”).  Each related Committed Purchaser in such
Conduit Purchaser’s Purchaser Group hereby agrees, unconditionally and
irrevocably and under all circumstances, without setoff, counterclaim or
defense of any kind, to pay the full amount of its Assignment Amount on such
Assignment Date to the applicable Conduit Purchaser in immediately available
funds to an account designated by the applicable Managing Agent.  Upon payment of its Assignment Amount, each
related Committed Purchaser shall acquire an interest in the funded Amount and
the Series 2000-VFC Certificate equal to its pro rata share (based on the
outstanding portions of the Funded Amount funded by it) of the assigned portion
of the Funded Amount.  Upon any assignment
in whole by a Conduit Purchaser to the Committed Purchasers in its Purchaser
Group on or after the Conduit Purchaser Termination Date as contemplated
hereunder, such Conduit Purchaser shall cease to make any Incremental Fundings
hereunder.  At all time prior to the
Conduit Purchaser Termination Date, nothing herein shall prevent a Conduit
Purchaser from making a subsequent Incremental Funding hereunder, in its sole
discretion, following any assignment pursuant to this Section 11.04 o r from
making more than one assignment pursuant to this Section 11.04.

 

(d)           Any Purchaser may, in the ordinary course of its business
and in accordance with applicable law, at any time sell to one or more Persons
(each, a “Participant”) participating interests in all or a portion of
its rights and obligations under this Agreement.  Notwithstanding any such sale by a Purchaser
of participating interests to a Participant, such Purchaser’s rights and
obligations under this Agreement shall remain unchanged, such Purchaser shall
remain solely responsible for the performance thereof, and the Seller, each
Managing Agent and the Administrative Agent shall continue to deal solely and
directly with such Purchaser in connection with such Purchaser’s rights and
obligations under this Agreement.  The
Seller also agrees that each Participant shall be entitled to the benefits of Article
IX hereof; provided, however, that all amounts payable by the
Seller to any such Participant shall be limited to the amounts which would have
been payable to the Purchaser selling such participating interest had such
interest not been sold.

 

(e)           This Agreement shall create and constitute the continuing
obligation of the parties hereto in accordance with its terms, and shall remain
in full force and effect until such time as all amounts payable with respect to
the Series 2000-VFC Certificates shall have been paid in full.

 

SECTION
11.05.    Provision of Documents and
Information.  The Seller acknowledges
and agrees that the Conduit Purchasers, the Committed Purchasers, the Managing
Agents and Administrative Agent are permitted to provide to the Liquidity
Purchasers, permitted

 

33

 

assignees and participants, the placement
agents for their respective commercial paper notes, the rating agencies with
respect to such notes and other liquidity and credit providers under their
respective commercial paper programs, opinions, certificates, documents and
other information relating to the Seller, NFC and the Dealer Notes delivered to
the Conduit Purchasers, the Committed Purchasers, the Managing Agents or the
Administrative Agent pursuant to this Agreement.

 

SECTION
11.06.    GOVERNING LAW; JURISDICTION.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REFERENCE TO ITS CONFLICT OF LAW PROVISIONS. 
EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO THE JURISDICTION
OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND
ANY APPELLATE COURT HAVING JURISDICTION TO REVIEW THE JUDGMENTS THEREOF.  EACH OF THE PARTIES HEREBY WAIVES ANY
OBJECTION BASED ON FORUM NON CONVENIENS AND ANY OBJECTION TO VENUE OF
ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND
CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED
APPROPRIATE BY SUCH COURT.

 

SECTION
11.07.    No Proceedings; Limitation on
Payments.  (a)  The Seller agrees that so long as any Notes
of a Conduit Purchaser shall be outstanding or there shall not have elapsed one
year plus one day since the last day on which any Notes of such Conduit
Purchaser shall have been outstanding, it shall not file, or join in the filing
of, a petition against a Conduit Purchaser or the Master Trust under the
Federal Bankruptcy Code, or join in the commencement of any bankruptcy, reorganization,
arrangement, insolvency, liquidation or other similar proceeding against a
Conduit Purchaser or the Master Trust.

 

(b)           Each Purchaser severally agrees that it shall not at any
time file, or join in the filing of, a petition against the Seller, the Master
Trust Trustee (solely in its capacity as acting as such for the Master Trust)
or the Master Trust under the Federal Bankruptcy Code, or join in the
commencement of any bankruptcy, reorganization, arrangement, insolvency,
liquidation or other similar proceeding against the Seller, the Master Trust
Trustee (solely in its capacity as acting as such for the Master Trust) or the
Master Trust.

 

(c)           Notwithstanding any provisions contained in this Agreement
to the contrary, no Conduit Purchaser shall, or shall be obligated to, pay any
amount, if any, payable by it pursuant to this Agreement or the transaction
contemplated hereby unless (i) such Conduit Purchaser has received funds
which may be used to make such payment and which funds are not required to
repay Notes when due and (ii) after giving effect to such payment, either (x)
such Conduit Purchaser could issue Notes to refinance all outstanding Notes
(assuming such outstanding Notes matured at such time) in accordance with the
program documents governing such Conduit Purchaser’s securitization program or
(y) all Notes of such Conduit Purchaser are paid in full. Any amount which such
Conduit Purchaser does not pay pursuant to the operation of the preceding
sentence shall not constitute a claim (as defined in §101 of the Bankruptcy
Code) against or company obligation of such Conduit Purchaser for any such
insufficiency unless and until such Conduit Purchaser satisfies the provisions
of clauses (i) and (ii) above.

 

34

 

SECTION
11.08.    Execution in Counterparts.  This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each
of which when so executed shall be deemed to be an original and all of which
when taken together shall constitute one and the same agreement.

 

SECTION
11.09.    No Recourse.  The obligations of any Purchaser under this
Agreement, or any other agreement, instrument, document or certificate executed
and delivered by or issued by such Purchaser or any officer thereof are solely the
corporate or partnership obligations of such Purchaser.  No recourse shall be had for payment of any
fee or other obligation or claim arising out of or relating to this Agreement
or any other agreement, instrument, document or certificate executed and delivered
or issued by such Purchaser or any officer thereof in connection therewith,
against any stockholder, limited partner, employee, officer, director or
incorporator of such Purchaser.

 

SECTION
11.10.    Limited Recourse.  The obligations of each of the Seller and NFC
under this Agreement are solely the corporate obligations of such Person.  No recourse shall be had for the payment of
any fee or other obligation or claim arising out of or relating to this
Agreement or any other agreement, instrument, document or certificate executed
and delivered or issued by the Seller or NFC or any officer thereof in
connection therewith, against any stockholder, employee, officer or director of
the Seller or NFC.

 

SECTION
11.11.    Survival.  All representations, warranties, covenants,
guaranties and indemnifications contained in this Agreement, including, without
limitation, Article IX and Sections 11.07, 11.09 and 11.10,
and in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the sale, transfer or repayment of the Series
2000-VFC Certificate.

 

SECTION
11.12.    Tax Characterization.  Each party to this Agreement (a) acknowledges
and agrees that it is the intent of the parties to this Agreement that, for
federal, state and local income and franchise tax purposes only, the Series
2000-VFC Certificate will be treated as evidence of indebtedness secured by the
Dealer Notes and proceeds thereof and the Master Trust will not be
characterized as an association (or publicly traded partnership) taxable as a
corporation, (b) agrees to treat the Series 2000-VFC Certificate for federal,
state and local income and franchise tax purposes as indebtedness and (c)
agrees that the provisions of this Agreement and all related Series Documents
shall be construed to further these intentions of the parties.

 

SECTION
11.13.    Master Trust Rating Agency
Notices.  Each of the Seller and the
Servicer hereby agree to provide written notice to each of the rating agencies
then rating any outstanding series issued by the Master Trust at least 5 days
prior to the proposed effectiveness of any (i) any extension of the Purchase
Expiration Date and (ii) any proposed action specified in Section 2.04, Section 7.04,
Section 10.06 or Section 11.01 of this Agreement.  Each such notice shall include a copy or
description of any such proposed action.

 

35

 

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

 

	
   

  	
  NAVISTAR FINANCIAL
  SECURITIES

  CORPORATION,

  	 

	
   

  	
  as Seller

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Andrew J. Cederoth

  	
   

  	 

	
   

  	
   

  	
  Name:  Andrew J. Cederoth

  	
   

  	 

	
   

  	
   

  	
  Title:  Vice President & Treasurer

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
  NAVISTAR FINANCIAL
  CORPORATION

  	 

	
   

  	
  as Servicer

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Andrew J. Cederoth

  	
   

  	 

	
   

  	
   

  	
  Name: Andrew J. Cederoth

  	
   

  	 

	
   

  	
   

  	
  Title:  Vice President & Treasurer

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	 

	
   

  	
  LIBERTY sTREET fUNDING
  CORP.,

  	 

	
   

  	
  as a Conduit Purchaser for
  the Liberty Street

  	 

	
   

  	
  Purchaser Group

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   /s/ Bernard J. Angelo

  	
   

  	 

	
   

  	
   

  	
  Name:  Bernard J. Angelo

  	
   

  	 

	
   

  	
   

  	
  Title:    Vice President

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  KITTY HAWK FUNDING
  CORPORATION,

  	 

	
   

  	
  as a Conduit Purchaser for
  the KHFC Purchaser

  Group

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
   /s/ Jill A. Gordon

  	
   

  	 

	
   

  	
   

  	
  Name:  Jill A. Gordon

  	
   

  	 

	
   

  	
   

  	
  Title:    Vice President

  	
   

  	 

 

36

 

	
   

  	
  BANK OF AMERICA, NATIONAL

  ASSOCIATION,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Van Beek

  	
   

  
	
   

  	
   

  	
  Name: William Van Beek

  	
   

  
	
   

  	
   

  	
  Title:   Principal

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NOVA SCOTIA,

  
	
   

  	
  as a Conduit Purchaser for
  the Liberty Street

  Purchaser Group

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Norman Last

  	
   

  
	
   

  	
   

  	
  Name: Norman Last

  	
   

  
	
   

  	
   

  	
  Title:   Managing Director

  	
   

  
	
   

  	
   

  	
  Purchaser Percentage: 50%

  Commitment: 200,000,000

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, NATIONAL

  ASSOCIATION,

  
	
   

  	
  as a Committed Purchaser
  and Managing Agent for

  the KHFC Purchaser Group

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Van Beek

  	
   

  
	
   

  	
   

  	
  Name: William Van Beek

  	
   

  
	
   

  	
   

  	
  Title:   Principal

  	
   

  
	
   

  	
   

  	
  Purchaser Percentage: 50%

  Commitment: 200,000,000

  	
   

  

 

37

 

EXHIBIT A

 

Form
of Notice of

Incremental Funding

 

[Letterhead
of Navistar Financial Corporation]

 

	
  A.

  	
  Proposed
  Incremental Funding Date:

  	
   

  	
   

  	
   

  
	
  B.

  	
  Amount
  of requested Incremental Funding with respect to Series 2000-VFC Certificate
  (must be more than $5,000,000 (unless for any lesser remaining Maximum Funded
  Amount) but not greater than remaining Maximum Funded Amount)

  	
   

  	
  $

  	
   

  
	
  C.

  	
  Purchase
  Price (50% of the Incremental Funded Amount to the Series 2000-VFC
  Certificate) for the KHFC Purchaser Group

  	
   

  	
  $

  	
   

  
	
  D.

  	
  Purchase
  Price (50% of the Incremental Funded Amount to the Series 2000-VFC
  Certificate) for the Liberty Street Purchaser Group

  	
   

  	
  $

  	
   

  
	
  E.

  	
  Remaining
  Maximum Funded Amount (after giving effect to the requested Incremental
  Funding)

  	
   

  	
  $

  	
   

  
	
  F.

  	
  Certifications:

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  The
  representations and warranties of Navistar Financial Securities Corporation (“Seller”)
  in the Pooling and Servicing Agreement dated as of June 8, 1995 (as amended,
  modified and supplemented, the “Pooling and Servicing Agreement”), among the
  Seller, Navistar Financial Corporation, as Servicer, and The Bank of New
  York, as Master Trust Trustee (the “Master Trust Trustee”), the Series
  Supplement dated as of January 28, 2000 (the “Series Supplement”), among the
  Seller, the Servicer and the Master Trust Trustee and the Amended and
  Restated Certificate Purchase Agreement dated as of December 27, 2004 (the “Certificate
  Purchase Agreement”), among the Seller, the Conduit Purchasers, the Managing
  Agents, the Administrative Agent and the Committed Purchasers named therein,
  are true and correct on the date hereof.

  
	
   

  	
  (b)

  	
  The
  conditions to the Incremental Funding specified in Section 2.03(b) of the
  Certificate Purchase Agreement have been satisfied and/or will be satisfied
  as of the applicable Incremental Funding Date.

  
						

 

38

 

	
   

  	
  NAVISTAR FINANCIAL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Officer

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date of Notice:

  	
   

  	
   

  	
   

  
						

 

39

 

EXHIBIT B

 

[Form
of Investment Letter]

 

              
    , 200[  ]

 

Navistar Financial Securities Corporation

[Address]

 

Re:  Purchase of Series 2000-VFC Certificate

 

Ladies and Gentlemen:

 

This letter (the “Investment
Letter”) is delivered by                                         
(the “Purchaser”) and                                         
(“                    ”),
as Administrative Agent pursuant to Section 6.03 of the Amended and
Restated Certificate Purchase Agreement (“Certificate Purchase Agreement”)
dated as of December 27, 2004 among Navistar Financial Securities Corporation (“Seller”)
and the Conduit Purchasers, Managing Agents, Administrative Agent and Committed
Purchasers named therein.  Capitalized
terms used herein without definition shall have the meanings set forth in the
Certificate Purchase Agreement.  The Purchaser
represents to the Seller as follows:

 

(i)            the Purchaser is authorized to enter
into the Certificate Purchase Agreement and to perform its obligations
thereunder and to consummate the transactions contemplated thereby;

 

(ii)           the Purchaser and Administrative
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 Series
2000-VFC Certificate and the Purchaser is able to bear the economic risk of
such investment;

 

(iii)          the Purchaser and Administrative Agent
have reviewed the Pooling and Servicing Agreement and the Series Supplement
(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
Master Trust and the Series 2000-VFC Certificate;

 

(iv)          Administrative Agent is an agent on
behalf of the Purchaser and the Purchaser is not acquiring the Series 2000-VFC
Certificate as an agent or otherwise for any other person.  The Purchaser is a [                                        ].  Administrative Agent is a [                                        ];

 

40

 

(v)           each of the Purchaser and Administrative
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.  The Purchaser and
Administrative Agent understand that the offering and sale of the Series
2000-VFC Certificate have not been and will not be registered under the
Securities Act of 1933, as amended, and have not and will not be registered or
qualified under any applicable “blue sky” law, and that the offering and sale
of the Series 2000-VFC Certificate have not been reviewed by, passed on or
submitted to any federal or state agency or commission, securities exchange or
other regulatory body;

 

(vi)          the Purchaser, through Administrative
Agent, is acquiring the Series 2000-VFC Certificate without a view to any
distribution, resale or other transfer thereof, except as contemplated by the
following sentence.  The Purchaser and
Administrative Agent will not resell or otherwise transfer the Series 2000-VFC
Certificate or any portion thereof, except (A) [in accordance with Section 8.04
of the Certificate Purchase Agreement] [with a letter from the buyer or
transferee thereof in substantially the form hereof] and (B) (i) pursuant
to an effective registration statement under the Securities Act of 1933, as
amended; (ii) in a transaction exempt from the registration requirements of the
Securities Act of 1933, as amended, and applicable state securities or “blue
sky” laws; (iii) to the Seller or any affiliate of the Seller; (iv) to a person
who the Purchaser and Administrative Agent reasonably believe is a qualified
institutional buyer (within the meaning thereof in Rule 144A under the
Securities Act of 1933, as amended) that is aware that the resale or other
transfer is being made in reliance upon Rule 144A; or (v) pursuant to
Regulation S under the Securities Act of 1933, as amended.

 

(vii)         the Purchaser and Administrative Agent
understand that each Series 2000-VFC Certificate will bear a legend to
substantially the following effect:

 

THIS
CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), IN RELIANCE UPON EXEMPTIONS PROVIDED BY THE
SECURITIES ACT.  NO RESALE OR OTHER
TRANSFER OF THIS CERTIFICATE MAY BE MADE EXCEPT IN COMPLIANCE WITH THE REGISTRATION
PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE PROVISIONS UNDER STATE BLUE
SKY OR SECURITIES LAWS OR PURSUANT TO AN AVAILABLE EXEMPTION FROM SUCH
PROVISIONS.  THE TRANSFER OF THIS
CERTIFICATE IS SUBJECT TO CERTAIN CONDITIONS SET FORTH IN THE POOLING AND
SERVICING AGREEMENT AND SERIES SUPPLEMENT REFERRED TO HEREIN.

 

NEITHER
THIS CERTIFICATE NOR ANY INTEREST HEREIN MAY BE ACQUIRED BY (A) AN EMPLOYEE
BENEFIT PLAN (AS DEFINED IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT SECURITY
ACT OF

 

41

 

1974, AS AMENDED (“ERISA”))
THAT IS SUBJECT TO THE PROVISIONS OF TITLE 1 OF ERISA, (B) A PLAN DESCRIBED IN
SECTION 4975(E)(1) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED, OR (C) ANY
ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF A PLAN’S INVESTMENT
IN THE ENTITY (EACH A “BENEFIT PLAN”). 
BY ACCEPTING AND HOLDING THIS CERTIFICATE OR ANY INTEREST HEREIN, THE
HOLDER HEREOF OR ANY OWNER OF AN INTEREST HEREIN SHALL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED THAT IT IS NOT A BENEFIT PLAN.

 

(viii)        this Investment Letter has been duly
authorized, executed and delivered and constitutes the legal, valid and binding
obligations of the Purchaser and Administrative Agent, enforceable against the
Purchaser and Administrative Agent in accordance with its terms, except as such
enforceability may be limited by receivership, conservatorship, bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and general principles of equity;
and

 

(ix)           Each of the Purchaser and
Administrative Agent represents and warrants that neither the Purchaser nor
Administrative Agent is (i) an employee benefit plan (as defined in Section
3(3) of ERISA) that is subject to the provisions of Title I of ERISA, (ii) a plan
described in Section 4975(e)(1) of the Internal Revenue Code, or (iii) an
entity whose underlying assets include plan assets by reason of a plan’s
investment in such entity.

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ,

  
	
   

  	
  as Purchaser

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ,

  
	
   

  	
  as Administrative Agent

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

42

 

SCHEDULE I

 

Addresses
for Notices

 

If to:

	
  Seller:

  	
  Navistar
  Financial Securities Corporation

  
	
   

  	
  2850
  West Golf Road

  
	
   

  	
  Rolling
  Meadows, Illinois 60008

  
	
   

  	
  Attention:
  Vice President & Treasurer

  
	
   

  	
  cc:

  	
  General
  Counsel

  
	
   

  	
  Facsimile: (847) 734-4090

  
	
   

  	
   

  
	
  Servicer:

  	
  Navistar
  Financial Corporation

  
	
   

  	
  2850
  West Golf Road

  
	
   

  	
  Rolling
  Meadows, Illinois 60008

  
	
   

  	
  Attention:
  Vice President & Treasurer

  
	
   

  	
  cc:

  	
  General
  Counsel

  
	
   

  	
  Facsimile: (847) 734-4090

  
	
  Conduit

  	
   

  
	
  Purchaser:

  	
  Kitty
  Hawk Funding Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Attention:

  
	
   

  	
  Facsimile:

  
	
   

  	
   

  
	
  With
  a copy to:

  	
   

  
	
   

  	
   

  
	
   

  	
  Bank
  of America, National Association

  
	
   

  	
  231
  South LaSalle Street

  
	
   

  	
  Chicago,
  IL 60697

  
	
   

  	
  Attention:
  Willem van Beek

  
	
   

  	
  Facsimile:
  (312) 453-3410

  
	
   

  	
   

  
	
  Administrative

  	
   

  
	
  Agent:

  	
  Bank
  of America, National Association

  
	
   

  	
  231
  South LaSalle Street

  
	
   

  	
  Chicago,
  Illinois 60697

  
	
   

  	
  Attention:
  Willem van Beek

  
	
  Facsimile:

  	
   (312) 453-3410

  
				

 

43

 

	
  With
  a copy to:

  	
   

  
	
   

  	
  Bank
  of America, National Association,

  
	
   

  	
  as
  Administrator

  
	
   

  	
  Bank
  of America Corporate Center

  
	
   

  	
  10th
  Floor

  
	
   

  	
  Charlotte,
  North Carolina 28255

  
	
   

  	
  Attention:

  	
  Banc
  of America Securities, LLC

  
	
   

  	
   

  	
  Global
  Asset Backed Securitization Group;

  
	
   

  	
   

  	
  Treasury
  Management

  
	
   

  	
  Telephone:
  (704) 386-0159

  
	
   

  	
  Facsimile:
  (704) 387-2828

  

 

44

 

	
  Conduit

  	
   

  
	
  Purchaser:

  	
  Liberty
  Street Funding Corp.

  
	
   

  	
  c/o
  Global Securitization Services, LLC

  
	
   

  	
  114
  West 47th Street, Suite 1715

  
	
   

  	
  New
  York, NY 10036

  
	
   

  	
  Attention:
  Andrew L. Stidd

  
	
   

  	
  Telephone:
  (212) 302-5151

  
	
   

  	
  Telecopy:
  (212) 302-8767

  
	
   

  	
   

  
	
   

  	
  With
  a copy to

  
	
   

  	
   

  
	
   

  	
  The
  Bank of Nova Scotia

  
	
   

  	
  One
  Liberty Plaza

  
	
   

  	
  New
  York, NY 10006

  
	
   

  	
  Attention:
  Richard Taiano

  
	
   

  	
  Telephone:
  (212) 225-5070

  
	
   

  	
  Telecopy:
  (212) 225-5090

  
	
   

  	
  Managing Agent

  
	
   

  	
   

  
	
  and
  Committed

  	
   

  
	
  Purchaser:

  	
  The
  Bank of Nova Scotia

  
	
   

  	
  One
  Liberty Plaza

  
	
   

  	
  New
  York, NY 10006

  
	
   

  	
  Telephone:
  (212) 225-5070

  
	
   

  	
  Telecopy:
  (212) 225-5090

  
	
   

  	
   

  
	
   

  	
  Attention:
  Richard Taiano

  

 

45

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