navistar international corporation...item 1.01 entry into a material definitive agreement on august...

UNITED STATESSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORTPursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 6, 2020 (August 4, 2020)

NAVISTAR INTERNATIONAL CORPORATION(Exact name of registrant as specified in its charter)

Delaware 1-9618 36-3359573

(State or other jurisdiction ofincorporation or organization)

(CommissionFile No.)

(I.R.S. EmployerIdentification No.)

2701 Navistar Drive

Lisle Illinois 60532(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (331) 332-5000

(Former name or former address, if changed since last report.)

ChecktheappropriateboxbelowiftheForm8-Kfilingisintendedtosimultaneouslysatisfythefilingobligationoftheregistrantunderanyofthefollowingprovisions:

☐ WrittencommunicationspursuanttoRule425undertheSecuritiesAct(17CFR230.425)

☐ SolicitingmaterialpursuanttoRule14a-12undertheExchangeAct(17CFR240.14a-12)

☐ Pre-commencementcommunicationspursuanttoRule14d-2(b)undertheExchangeAct(17CFR240.14d-2(b))

☐ Pre-commencementcommunicationspursuanttoRule13e-4(c)undertheExchangeAct(17CFR240.13e-4(c))

SecuritiesregisteredpursuanttoSection12(b)oftheAct:

Title of each class Trading

Symbol(s) Name of each exchange

on which registeredCommon Stock, par value $0.10 NAV New York Stock Exchange

Cumulative convertible junior preference stock,Series D (par value $1.00)

New York Stock Exchange

IndicatebycheckmarkwhethertheregistrantisanemerginggrowthcompanyasdefinedinRule405oftheSecuritiesActof1933(§230.405ofthischapter)orRule12b-2oftheSecuritiesExchangeActof1934(§240.12b-2ofthischapter).

EmergingGrowthCompany☐

Ifanemerginggrowthcompany,indicatebycheckmarkiftheregistranthaselectednottousetheextendedtransitionperiodforcomplyingwithanyneworrevisedfinancialaccountingstandardsprovidedpursuanttoSection13(a)oftheExchangeAct.☐

ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

OnAugust4,2020(the“ClosingDate”),NavistarInternationalCorporation,aDelawarecorporation(the“Company”),completedacertaintax-exemptbondfinancinginwhichtheIllinoisFinanceAuthority(the“IFA”)issuedandsold$225,000,000aggregateprincipalamountofRecoveryZoneFacilityRevenueRefundingBonds(NavistarInternationalCorporationProject)Series2020dueOctober15,2040(the“Bonds”).TheBondswereissuedpursuanttoanIndenturedatedasofJuly1,2020(the“Indenture”),betweentheIFAandCitibank,N.A.,asTrustee(the“Trustee”).TheproceedsoftheBondswereloanedbytheIFAtotheCompanypursuanttoaLoanAgreementdatedasofJuly1,2020(the“LoanAgreement”).TheobligationsoftheCompanyundertheLoanAgreementareevidencedbyaPromissoryNote(the“Note”)executedbytheCompanyinfavoroftheIFA.TheIFAhasassignedtheNoteandcertainofitsrightsundertheLoanAgreementtotheTrusteeassecurityforthepaymentoftheprincipalorpurchasepriceof,premium,ifany,andintereston,theBonds.TheLoanAgreementandtheNoteareseniorunsecuredobligationsoftheCompany.Thepaymentofprincipalorpurchasepriceof,premium,ifany,andintereston,theBondsisguaranteedbyaBondGuaranteedatedasofJuly1,2020(the“Guarantee”)fromNavistar,Inc.,thewholly-ownedandprincipalmanufacturingsubsidiaryoftheCompany(the“Guarantor”),totheTrustee.

TheBondswereofferedforsalebyBofASecurities,Inc.(the“Underwriter”).

TheBondsarespecial,limitedobligationsoftheIFA,payableoutoftherevenuesandincomederivedundertheLoanAgreementandtheGuarantee.TheproceedsfromtheissuanceoftheBondswillbeused,togetherwithcertainotherfundsoftheCompany,forthepurposesofrefunding(1)the$135,000,000aggregateprincipalamountofIFARecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject),Series2010dueOctober15,2040(the“IFA2010Bonds”)and(2)$90,000,000aggregateprincipalamountofTheCountyofCook,IllinoisRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject),Series2010dueOctober15,2040(the“CookCountyBonds”;togetherwiththeIFABonds,the“2010Bonds”).Proceedsofthe2010Bondswereusedto(1)financeaportionofthecostofacquiring,constructingandequippingcertainfacilities(the“Projects”)eitherleased,orthenownedortobeownedbytheCompanyoroneofitsaffiliates,includingtheconsolidationofvariousoperationsintoonecentrallocation,theexpansionofathenexistingwarehousefacilityandthedevelopmentofcertainindustrialfacilities,togetherwithrelatedfacilities,improvementsandequipmentor(2)payaportionoftheinterestaccruingontheBondsduringconstructionoftheProjects.

TheCompany’spaymentobligationsundertheLoanAgreementcorrespondtothepaymentofprincipalandinterestwhenandasdueontheBonds.TheBondsbearinterestatthefixedrateof4.75%perannumforaninitialterminterestrateperiodfromAugust4,2020throughJuly31,2030(the“InitialTermInterestRatePeriod”),payableeachApril15andOctober15,commencingApril15,2021.BeginningonAugust1,2030,theBondsaresubjecttooptionalredemptionatthedirectionoftheCompany,inwholeorinpart.Inaddition,iftheCompanyisacquiredbyTRATONSEoroneofitsaffiliates,theCompanymay,atitsoption,redeemall,butnotlessthanall,oftheBonds.Ineachcase,theCompanywillpayaredemptionpriceequalto100%oftheprincipalamountthereof,plusaccruedinterest,ifany,totheredemptiondate.TheBondswillbesubjecttomandatorytenderforpurchaseonthebusinessdayfollowingthelastdayoftheInitialTermInterestRatePeriod.PaymentofthepurchasepriceoftheBondswillbemadefromproceedsofremarketingtheBonds,bytheCompanypursuanttotheLoanAgreementandtheNoteorbytheGuarantorpursuanttotheGuarantee.AsprovidedintheIndenture,theinterestrateontheBondsmaybeconvertedandreconvertedfromoneInterestRatePeriod(asdefinedintheIndenture)toanotherInterestRatePeriod.UponachangeintheInterestRatePeriod,theBondswillbesubjecttomandatorytenderforpurchase.

TheLoanAgreement,amongotherthings,(1)limits,incertaincircumstances,theabilityoftheCompanytoengageinmergersorconsolidationsortransferallorsubstantiallyallofitsassetsand(2)providesforcustomaryeventsofdefaultwhichinclude(subjectincertaincasestocustomarygraceandcureperiods),amongothers,nonpaymentofprincipalorinterest;breachofotheragreementsintheLoanAgreement;anddefaultsin,orfailuretopay,certainotherindebtedness.Generally,ifaneventofdefaultoccursandisnotcuredwithinthetimeperiodsspecified,theTrusteemay,orupontherequestoftheholdersofnotlessthan66-2/3%inaggregateprincipalamountofthethenoutstandingBonds,shalldeclareallofsuchBondstobedueandpayableimmediately.

CopiesoftheLoanAgreement,theNoteandtheGuaranteeareattachedheretoasExhibits10.1,10.2and10.3,respectively,andareincorporatedhereinbyreference.AcopyoftheIndentureisalsobeingfiledherewithsolelybecausecertaintermsusedintheLoanAgreementaredefinedintheIndentureandthereforetheLoanAgreementandIndentureareintegrallyrelated.

ITEM 2.03 CREATION OF A DIRECT FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEETARRANGEMENT OF A REGISTRANT

TheinformationsetforthunderItem1.01whichisresponsivetothisItem2.03ofthisForm8-Kisincorporatedhereinbyreference.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) ExhibitsExhibit

No. Description of Exhibit

LoanAgreementbetweentheIllinoisFinanceAuthority(‘IFA”)andtheCompanydatedasofJuly1,2020(includingasanexhibitthereto,acopyoftheIndenturerelatingtotheBondsdatedJuly1,2020betweentheIFAandCitibank,N.A.,asTrustee,inordertoprovideallofthedefinedtermsandotherapplicableprovisionsusedintheLoanAgreementthatareotherwisecontainedintheIndenture).

10.2 FormofPromissoryNote(includedinExhibit10.1)

10.3 BondGuaranteeinrespectoftheBondsdatedasofJuly1,2020fromNavistar,Inc.toCitibank,N.A.,asTrustee.

104 CoverPageInteractiveDataFile(embeddedwithintheInlineXBRLdocument)

Forward-Looking Statements

Information provided and statements contained in this report that are not purely historical are forward-looking statements within the meaning ofSection 27A of the Securities Act of 1933, as amended (“Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (“ExchangeAct”), and the Private Securities Litigation Reform Act of 1995. Such forward-looking statements only speak as of the date of this report and NavistarInternational Corporation assumes no obligation to update the information included in this report. Such forward-looking statements include informationconcerning our possible or assumed future results of operations, including descriptions of our business strategy. These statements often include words suchas believe, expect, anticipate, intend, plan, estimate, or similar expressions. These statements are not guarantees of performance or results and they involverisks, uncertainties, and assumptions. For a further description of these factors, see the risk factors set forth in our filings with the Securities and ExchangeCommission, including our annual report on Form 10-K for the fiscal year ended October 31, 2019, and our quarterly report on Form 10-Q for the periodended April 30, 2020. Although we believe that these forward-looking statements are based on reasonable assumptions, there are many factors that couldaffect our actual financial results or results of operations and could cause actual results to differ materially from those in the forward-looking statements.All future written and oral forward-looking statements by us or persons acting on our behalf are expressly qualified in their entirety by the cautionarystatements contained or referred to above. Except for our ongoing obligations to disclose material information as required by the federal securities laws,we do not have any obligations or intention to release publicly any revisions to any forward-looking statements to reflect events or circumstances in thefuture or to reflect the occurrence of unanticipated events.

SIGNATURE

PursuanttotherequirementsoftheSecuritiesExchangeActof1934,theregistranthasdulycausedthisreporttobesignedonitsbehalfbytheundersignedhereuntodulyauthorized.

NAVISTARINTERNATIONALCORPORATION(Registrant)

By: /s/WalterG.BorstName: WalterG.Borst

Title:

ExecutiveVicePresidentandChiefFinancialOfficer

Dated:August6,2020

Exhibit10.1

LOANAGREEMENT

between

ILLINOISFINANCEAUTHORITY

NAVISTARINTERNATIONALCORPORATION

DatedasofJuly1,2020

RELATINGTO

$225,000,000ILLINOISFINANCEAUTHORITY

RECOVERYZONEFACILITYREFUNDINGREVENUEBONDS(NAVISTARINTERNATIONALCORPORATIONPROJECT)

SERIES2020

TABLEOFCONTENTS PageArticleIDEFINITIONS 2

Section1.1. DefinitionofTerms 2Section1.2. NumberandGender 2Section1.3. Articles,Sections,Etc. 2

ArticleIIREPRESENTATIONSANDWARRANTIES 3Section2.1. BondResolutionoftheAuthority 3Section2.2. RepresentationsoftheAuthority 3Section2.3. RepresentationsandWarrantiesoftheBorrower 4

ArticleIIIISSUANCEOFTHEBONDS;APPLICATIONOFBONDPROCEEDS 6Section3.1. AgreementtoIssueBonds;ApplicationofBondProceeds 6Section3.2. DisbursementsfromtheCostsofIssuanceFund 7Section3.3. [Reserved] 7Section3.4. InvestmentofMoneysinFunds 7Section3.5. NoRecourse 7Section3.6. NoWarrantybytheAuthority 7

ArticleIVLOANSOFPROCEEDS;REPAYMENTPROVISIONS 8Section4.1. LoanofBondProceeds;IssuanceofBonds 8Section4.2. RepaymentandPaymentofOtherAmountsPayable 8Section4.3. [Reserved] 11Section4.4. AssignmentandPledgeofAuthority’sRights;ObligationsofBorrowerUnconditional 11Section4.5. AmountsRemaininginFunds 11

ArticleVSPECIALCOVENANTSANDAGREEMENTS 12Section5.1. RightofAccesstotheProject 12Section5.2. TheBorrower’sMaintenanceofItsExistence;Assignments;PermittedTransfersoftheProject 12Section5.3. RecordsandFinancialStatementsofBorrower 13Section5.4. MaintenanceandRepairs;Insurance 14Section5.5. [Reserved] 14Section5.6. QualificationinState 14Section5.7. LetterofCreditandAlternateCreditFacility 14Section5.8. GeneralTaxCovenants 15Section5.9. ContinuingDisclosure 16Section5.10. MaintenanceofGuaranty;AdditionalSubsidiaryGuaranties 16Section5.11. AnnualCertificate 16Section5.12. CompliancewithLaws 17Section5.13. RecordingandMaintenanceofLiens 17

ArticleVILOANDEFAULTEVENTSANDREMEDIES 18

Section6.1. LoanDefaultEvents 18Section6.2. RemediesonDefault 19Section6.3. AgreementtoPayAttorneys’Fees,CostsandExpenses 21Section6.4. NoRemedyExclusive 21Section6.5. NoAdditionalWaiverImpliedbyOneWaiver 21

ArticleVIIPREPAYMENT 21Section7.1. RedemptionofBondswithPrepaymentMoneys 21Section7.2. OptionstoPrepayInstallments 21Section7.3. MandatoryPrepayment 22Section7.4. AmountofPrepayment 22Section7.5. NoticeofPrepayment 22Section7.6. OffertoPurchaseuponaChangeofControl 23

ArticleVIIINON-LIABILITYOFAUTHORITY;EXPENSES;INDEMNIFICATION 25Section8.1. LimitedLiabilityofAuthority 25Section8.2. Expenses 25Section8.3. EnforcementofRights 25Section8.4. Indemnification 26

ArticleIXMISCELLANEOUS 28Section9.1. Notices 28Section9.2. Severability 29Section9.3. ExecutionofCounterparts 29Section9.4. SupplementsandAmendmentstoLoanAgreement;AmendmentofLetterofCredit 29Section9.5. GoverningLaw 30Section9.6. AuthorizedRepresentative 30Section9.7. TermoftheAgreement 30Section9.8. BindingEffect 30Section9.9. SurvivalofFeeObligation;NoPrevailingParty 30Section9.10. PurchaseofBonds 31Section9.11. IndentureProvisions 31Section9.12. CompleteAgreement 31Section9.13. Third-PartyBeneficiaries 31

EXHIBITA DESCRIPTIONOFTHEPROJECT EXHIBITB FORMOFPROMISSORYNOTE

LOAN AGREEMENT

THISLOANAGREEMENT,datedasofJuly1,2020(asitmayfromtimetotimebesupplemented,modifiedoramended,this“Agreement”),betweentheILLINOISFINANCEAUTHORITY(the“Authority”),abodypoliticandcorporateoftheStateofIllinois(the“State”),andNAVISTARINTERNATIONALCORPORATION,acorporationorganizedandexistingunderthelawsoftheStateofDelaware(the“Borrower”).

W I T N E S E T H :

WHEREAS,theAuthorityisabodypoliticandcorporateoftheStatecreatedundertheIllinoisFinanceAuthorityAct,20ILCS3501/801-1etseq.,asitmaybesupplementedoramended(the“Act”);and

WHEREAS,theAuthorityisauthorizedandempoweredbytheprovisionsoftheActtoissuerevenuebondsforthepurposeoftheacquisition,construction,refurbishment,creation,developmentorredevelopmentof“industrialprojects”(assuchtermisdefinedintheAct);and

WHEREAS,theAuthoritypreviouslyreceivedrecoveryzonebondallocationswaivedtotheStatefromcountiesandmunicipalitieswithintheStateinordertoissuerecoveryzonefacilitybondsforqualifyingprojectswithintheStateandtodesignatealloraportionoftheStateasa“recoveryzone”forpurposesofSection1400U-1oftheInternalRevenueCodeof1986,asamended(the“Code”);and

WHEREAS,theAuthoritypreviouslyissued$135,000,000inaggregateprincipalamountofitsIllinoisFinanceAuthorityRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010(the“IFA2010Bonds”)andloanedtheproceedsfromthesaleoftheIFA2010BondstotheBorrowertofinancethecostsoftheacquisition,construction,equipping,installation,improvementandexpansionofcertaincapitalimprovementsasmorefullydescribedinExhibitAhereto(the“IFA-FinancedProject”);and

WHEREAS,theCountyofCook,Illinois(the“County”)receivedarecoveryzonebondallocationinordertoissuerecoveryzonefacilitybondsforqualifyingprojectswithintheStateandtodesignatealloraportionoftheCountyasa“recoveryzone”forpurposesofSection1400U-1oftheCode;and

WHEREAS,theCountypreviouslyissued$90,000,000inaggregateprincipalamountofitsRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010(the“County2010Bonds”)andloanedtheproceedsfromthesaleoftheCounty2010BondstotheBorrowertofinancethecostsoftherenovation,expansionandequippingofanexistingofficeandmanufacturingplantoftheBorrowerortheGuarantorasmorefullydescribedinExhibitAhereto(the“County-FinancedProject,”andtogetherwiththeIFA-FinancedProject,the“Project”);and

WHEREAS,theBorrowerhasrequestedtheassistanceoftheAuthorityinrefinancingtheProjectand,infurtheranceofthepurposessetforthintheAct,theAuthorityproposestoissueitsIllinoisFinanceAuthorityRecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020intheaggregateprincipalamountof$225,000,000

(the“Bonds”)undertheIndenturedatedasofJuly1,2020(asitmayfromtimetotimebesupplemented,modifiedoramended,the“Indenture”),betweentheAuthorityandCitibank,N.A.,astrustee(the“Trustee”),toprovidefundstoloantotheBorrowerpursuanttothisAgreementtoprovideaportionofthefundsnecessarytorefundtheIFA2010BondsandtheCounty2010Bonds;and

WHEREAS,theBorrowerisrequiredunderthisAgreementtomakeloanpaymentssufficienttopaywhenduetheprincipalof,premium,ifany,andinterestontheBonds;and

WHEREAS,theBorrowerhasdeliveredtotheAuthorityitsPromissoryNote,intheformofExhibitBattachedhereto,datedtheDateofDelivery(the“Note”),asevidenceofitsobligationshereunder;and

WHEREAS,asfurthersecurityfortheBonds,Navistar,Inc.,aDelawarecorporation(the“Guarantor”),willexecuteaBondGuaranteedatedasofJuly1,2020(asitmayfromtimetotimebesupplemented,modifiedoramended,the“Guaranty”),infavoroftheTrustee,wherebytheGuarantorwillguaranteepaymentsontheBondsandthepaymentobligationsoftheBorrowerunderthisAgreement;and

WHEREAS,pursuanttotheIndenture,theBondswillbeissuedandtheAuthoritywillassigntotheTrusteeitsrighttoreceivepayments(excludingRetainedRights),andcertainotherrights(excludingRetainedRights),underthisAgreementandtheNote;

NOW,THEREFORE,forandinconsiderationofthepremisesandthematerialcovenantshereinaftercontained,thepartiesheretoherebyformallycovenant,agreeandbindthemselvesasfollows:

ARTICLE I

DEFINITIONS

Section1.1.DefinitionofTerms.Unlessthecontextotherwiserequires,thetermsusedinthisAgreementshallhavethemeaningsspecifiedinSection1.01oftheIndenture,asoriginallyexecutedorasitmayfromtimetotimebesupplementedoramendedasprovidedtherein.

Section1.2.NumberandGender.Thesingularformofanywordusedherein,includingthetermsdefinedinSection1.01oftheIndenture,shallincludetheplural,andviceversa.Theusehereinofawordofanygendershallincludeallgenders.

Section1.3.Articles,Sections,Etc.Unlessotherwisespecified,referencestoArticles,SectionsandothersubdivisionsofthisAgreementaretothedesignatedArticles,SectionsandothersubdivisionsofthisAgreementasamendedfromtimetotime.Thewords“hereof,”“herein,”“hereby,”“hereunder”andwordsofsimilarimportrefertothisAgreementasawhole.Theheadingsortitlesoftheseveralarticlesandsections,andthetableofcontentsappendedtocopieshereof,shallbesolelyforconvenienceofreferenceandshallnotaffectthemeaning,constructionoreffectoftheprovisionshereof.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

Section2.1.BondResolutionoftheAuthority.OnJuly14,2020,theAuthorityadopteditsresolutionapprovingtherefinancingoftheProject,andauthorizedandapprovedtheexecutionanddeliveryoftheAuthorityDocumentsandconsummationbytheAuthorityofthetransactionscontemplatedthereby.

Section2.2.RepresentationsoftheAuthority.TheAuthoritymakesthefollowingrepresentationsasthebasisforitsundertakingshereincontained:

(a)TheAuthorityisabodypoliticandcorporatevalidlycreatedandexistingundertheAct,isauthorizedtoenterintothetransactionscontemplatedbythisAgreementandtocarryoutitsobligationshereunder,andhasbeendulyauthorizedtoexecuteanddeliverthisAgreement.

(b)ItistheAuthority’sunderstanding,baseduponcertainrepresentationsoftheBorrower,thattheissuanceandsaleoftheBondsandthelendingoftheproceedsoftheBondstotheBorrower(whichproceeds,alongwithcertainothermoneys,willbeappliedforthebenefitoftheBorrower)istoprovideaportionofthemoneysrequiredtorefundtheIFA2010BondsandtheCounty2010Bonds.

(c)ToprovidefundstoloantotheBorrowerforthepurposesdescribedin(b)above,theAuthorityhasauthorizeditsBondsintheaggregateprincipalamountof$225,000,000tobeissueduponthetermssetforthintheIndenture,undertheprovisionsofwhichtheAuthority’sinterestinthisAgreementandthepaymentsofprincipal,premium,ifany,interestandotherrevenueshereunder(otherthanRetainedRights)andundertheNotearepledgedandassignedtotheTrusteeassecurityforthepaymentoftheprincipalof,premium,ifany,andinterestontheBonds.TheAuthoritycovenantsthatithasnotandwillnotpledgeorassignitsinterestinthisAgreement,ortheRevenuesderivedpursuanttothisAgreement,exceptingRetainedRights,otherthantotheTrusteeundertheIndenturetosecuretheBonds.

(d)Tothebestofitsknowledge,nomemberoftheAuthorityorofficer,agentoremployeethereofis,inhisorherownnameorinthenameofanominee,anofficer,directororholderofanownershipinterestofmorethan71/2%inanyperson,association,trust,corporation,partnershiporotherentitywhichis,initsownnameorinthenameofanominee,apartytoanycontractoragreementuponwhichthememberorofficer,agentoremployeemaybecalledupontoactorvoteinconnectionwiththeProject.

(e)Tothebestofitsknowledge,nomemberoftheAuthorityorofficer,agentoremployeethereofis,inhisorherownnameorinthenameofanominee,aholderofanydirectorindirectinterest(otherthanaprohibitedinterestdescribedinparagraph(d)above)inanycontractoragreementuponwhichthememberorofficer,agentoremployeemaybecalledupontoactorvoteinconnectionwiththeProject,exceptfordirectorindirectinterests(otherthanprohibitedinterests),(i)whichsuchmember,officer,agentoremployeehasdisclosedtotheSecretaryoftheAuthoritypriortothetakingoffinalactionbytheAuthoritywithrespecttosuchcontractoragreementinthemannerrequiredbySection845-45(b)oftheAct,whichdisclosurehasbeen

publiclyacknowledgedbytheAuthorityandenteredupontheminutesoftheAuthority,and(ii)astowhichthemember,officer,agentoremployeehasrefrainedfromtakingtheactionsdescribedinsaidSection845-45(b).

(f)NeithertheAuthority’sexecutionofthisAgreement,itsconsummationofthetransactioncontemplatedonitspartthereby,northeAuthority’sfulfillmentorcompliancewiththetermsandconditionsthereofconflictswithorresultsinabreachoftheterms,conditionsandprovisionsofanymaterialrestriction,agreementorinstrumenttowhichtheAuthorityisaparty,orbywhichitoranyofitspropertyisbound,orconstitutesadefaultunderanyoftheforegoing.

Section2.3.RepresentationsandWarrantiesoftheBorrower.TheBorrowermakesthefollowingrepresentationsandwarrantiesasthebasisforitscovenantsherein:

(a)TheBorrowerisacorporationdulyincorporatedunderthelawsoftheStateofDelaware,isingoodstandinganddulyauthorizedtoconductitsbusinessintheState,isdulyauthorizedandhasfullpowerunderallapplicablelawsanditsarticlesofincorporationandbylawstocreate,issue,enterinto,executeanddeliver,asthecasemaybe,thisAgreement,theNote,theContinuingDisclosureUndertaking,theRemarketingAgreement,theBondPurchaseAgreement,theTaxCertificateandanyotherdocumentorinstrumenttowhichtheBorrowerisapartyorbywhichitisboundandthatisexecutedanddeliveredinconnectionwiththisAgreement(collectively,the“BorrowerDocuments”).

(b)TheexecutionanddeliveryoftheBorrowerDocumentsontheBorrower’sparthavebeendulyauthorizedbyallnecessarycorporateaction,andneithertheBorrower’sexecutionanddeliveryoftheBorrowerDocuments,theBorrower’sconsummationofthetransactionscontemplatedonitspartthereby,northeBorrower’sfulfillmentoforcompliancewiththetermsandconditionsthereof,conflictswithorresultsinamaterialbreachofthearticlesofincorporationorbylawsoftheBorroweroranymaterialagreementorinstrumenttowhichtheBorrowerisnowapartyorbywhichitisbound(exceptforanysuchbreachesforwhichtheBorrowerhasobtainedawaiverorarequiredconsent),orconstitutesamaterialdefault(orwouldconstituteamaterialdefaultwithduenoticeorthepassageoftimeorboth)underanyoftheforegoing.

(c)Nolitigation,proceedingsorinvestigationsarependingor,totheknowledgeoftheBorrower,threatenedagainsttheBorrowerseekingtorestrain,enjoinorinanywaylimittheapprovalorissuanceanddeliveryoftheBorrowerDocuments,orwhichwouldinanymannerchallengeoradverselyaffectthecorporateexistenceorpowersoftheBorrowertoenterintoandcarryoutthetransactionsdescribedinorcontemplatedbyortheexecution,delivery,validityorperformancebytheBorroweroftheBorrowerDocuments.Inaddition,exceptasdescribedintheLimitedOfferingMemorandum,nolitigation,proceedingsorinvestigationsarependingor,totheknowledgeoftheBorrower,threatenedinwritingagainsttheBorrower,exceptlitigation,proceedingsorinvestigationsinvolvingclaimsforwhichtheprobableultimaterecoveriesandtheestimatedcostsandexpensesofdefense,intheopinionofmanagementoftheBorrower(i)willbeentirelywithintheapplicableinsurancepolicylimits(subjecttoapplicabledeductibles)orarenotinexcessofthetotaloftheavailableassetsheldunderapplicableself-insuranceprogramsor(ii)willnothaveamaterialadverseeffectontheoperationsorcondition,financialorotherwise,oftheBorrower.

(d)TheconsolidatedfinancialstatementsoftheBorroweranditssubsidiariescontainedorincorporatedbyreferenceintheLimitedOfferingMemorandumcorrectlyandfairlypresenttheconsolidatedfinancialconditionandoperationsoftheBorroweranditssubsidiariesasoftherespectivedatesorfortherespectiveperiodstowhichtheyapply;andsuchstatementshavebeenpreparedineachcaseinaccordancewithgenerallyacceptedaccountingprinciplesconsistentlyappliedthroughouttheperiodsinvolvedexceptasotherwiseindicatedintheLimitedOfferingMemorandumorinsuchfinancialstatements,andtherehasbeennomaterialadversechangeinthecondition,financialorotherwise,oftheBorrowersincetherespectivemostrecentdatesasofwhichinformationisgivenintheLimitedOfferingMemorandum.

(e)Theinformationusedinthepreparationofthefinancialstatementsreferredtoinparagraph(d)above,thisAgreement,theTaxCertificateandanyotherwrittenstatementfurnishedbytheBorrowertotheAuthority(includingthedescriptionsandinformationcontainedorincorporatedbyreferenceintheLimitedOfferingMemorandumrelatingto(i)theBorrowerandtheProject,(ii)theoperations,financialsandotheraffairsoftheBorrower,(iii)theapplicationbytheBorroweroftheproceedstobereceivedbyitfromtheloanoftheproceedsofthesaleoftheBonds,and(iv)theparticipationbytheBorrowerinthetransactionscontemplatedhereinandintheLimitedOfferingMemorandum)donotcontainanyuntruestatementofamaterialfactoromittostateamaterialfactnecessarytomakethestatementscontainedthereinorhereinnotmisleading.ThereisnofactwhichisnotdisclosedintheLimitedOfferingMemorandumorotherwisedisclosedbytheBorrowertotheAuthorityinwritingwhichmateriallyadverselyaffectsor,sofarastheBorrowercannowforesee,willmateriallyadverselyaffectthefinancialconditionoftheBorrower,theabilityoftheBorroweroritsAffiliatestoownandoperatetheProjectortheBorrower’sabilitytomakepaymentsontheNoteandunderthisAgreementwhenandasthesamebecomedueandpayable.

(f)WithrespecttoanypensionplansubjecttoERISAmaintainedbytheBorrower,towhichtheBorrowerhasanobligation,orwithrespecttowhichtheBorrowerhasanyliability,contingentorotherwise(each,a“Plan”)(a)totheknowledgeoftheBorrower,neitheranyPlannorthetrustscreatedthereunder,noranytrusteeoradministratorthereof,hasengagedina“prohibitedtransaction,”assuchtermisdefinedinSection4975oftheCode,whichcouldsubjectthePlan,anysuchtrust,oranytrusteeoradministratorthereof,oranypartydealingwiththePlanoranysuchtrusttothetaxorpenaltyonprohibitedtransactionsimposedbySection4975oftheCode,andwhichhashadorcouldreasonablybeexpectedtohaveamaterialadverseeffectonthecondition(financialorotherwise),resultsofoperations,businessorpropertiesoftheBorrower(a“MaterialAdverseEffect”);and(b)theperformanceofthetransactionscontemplatedbythisLoanAgreementwillnotinvolveanyprohibitedtransaction(otherthananexemptprohibitedtransaction).NeitheranyPlannoranysuchtrustshavebeenterminated(exceptasrelatedtoPlanmergers),norhavetherebeenany“reportableevents,”assuchtermisdefinedinSection4043ofERISA,withinthelastfiveyearsexceptforPlanortrustterminationsorreportableeventswhicheitherhaveheretoforebeendisclosedpubliclyorwhichdidnotandcouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.NeitheranyPlannoranysuchtrustshaveincurredany“accumulatedfundingdeficiency”(whetherornotwaived),assuchtermwasdefinedinSection302ofERISApriortotheeffectivedateofthePensionProtectionActof2006,norhasanyPlanorsuchtrustsfailedtosatisfytheminimumfundingstandards(whetherornotwaived),asdefinedinSection302ofERISAonandaftertheeffectivedateofthePensionProtectionActof2006withinthelastfiveyearswhichhavehadorcouldreasonablybeexpectedtohavea

MaterialAdverseEffect.Inaddition,exceptascouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect,theBorrowerandanymemberofacontrolledcorporationoraffiliatedservicegroupinwhichtheBorrowerisamemberwithinthemeaningofSection4001(a)(14)ofERISA(“ERISAAffiliate”),(a)hasfulfilledinallmaterialrespectsitsobligationsundertheminimumfundingstandardsofERISAandtheCodewithrespecttoeachPlantowhichithasanysuchobligation;(b)isincomplianceinallmaterialrespectswiththepresentlyapplicableprovisionsofERISA,theCodeandanyPlan;and(c)hasnotincurredanymaterialandpastdueliabilitytothePensionBenefitGuarantyCorporation.ExceptascouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect,neithertheBorrowernoranyERISAAffiliateisrequiredtomakeoraccrue,norhaswithinthelastfiveyearsmadeoraccrued,anobligationtomakeamaterialcontributiontoa“multiemployerplan”asdefinedinSection3(37)(A)ofERISAorSection414oftheCode.

(g)TheBorrowerhasanyandallnecessarylicensesandpermitstooccupyandoperateitsexistingfacilitiesandhasobtained,willobtainorwillcausetobeobtainedallnecessarylicensesandpermitstoacquire,occupyandoperatetheProjectastheybecomerequired.WithrespecttotheconstructionoftheProjectwithproceedsoftheBonds,theBorrowerhascompliedwiththeIllinoisPrevailingWageAct,820ILCS130/1to130/12,totheextentrequiredbytheActandotherapplicablelaws.

(h)ThecostsoftheProjectaresetforthintheTaxCertificate,havebeendeterminedinaccordancewithstandardaccountingprinciples,andreflectengineering,constructionandothercosts,asreasonablydeterminedbytheBorrowerortheGuarantor.TherepresentationsandcertificationsintheTaxCertificatearetrueandcorrectandareincorporatedbyreferenceherein.

(i)TheBorrowerortheGuarantorusedtheproceedsoftheIFA2010BondsandoftheCounty2010Bondstoacquire,construct,improveandequiptheIFA-FinancedProjectandtheCounty-FinancedProject,respectively,substantiallyasdescribedinExhibitAheretoandthattheBorrowerortheGuarantorhasoperatedandwilloperatetheProjectas”industrialfacilities”withinthemeaningoftheAct.

ARTICLE III

ISSUANCE OF THE BONDS; APPLICATION OF BOND PROCEEDS

Section3.1.AgreementtoIssueBonds;ApplicationofBondProceeds.

(a)ToprovidefundstorefinancetheProject,theAuthorityagreesthatitwillissueundertheIndenture,andsellandcausetobedeliveredtothepurchasersthereof,theBonds.TheAuthoritywillthereuponapplytheproceedsreceivedfromthesaleoftheBondsasprovidedintheIndenture.TheBorroweragreestopay,fromfundsotherthantheproceedsoftheBonds,allCostsofIssuance.

(b)TheBorrowershallnotmakeanychangestotheProjectortotheoperationthereofthatwouldaffectthequalificationoftheProjectas“industrialfacilities”undertheActorimpairtheexemptionfromfederalincometaxationoftheinterestontheBonds.Inparticular,theBorroweragreestocomplywithallrequirementssetforthintheTaxCertificate.Exceptas

otherwisepermittedpursuanttothisSection3.1orSection5.2(a),theBorroweralsoagreesthatitoranAffiliatewillowntheProjectduringthetermofthisAgreementor,ifshorter,theusefullifeofanycomponentoftheProject.TheBorroweralsoagreesthatitoranAffiliatewilloperatetheProject(exceptsuchportionthatistransferredtoaPersonotherthananAffiliateinaccordancewithSection5.2)duringthetermofthisAgreementor,ifshorter,theusefullifeofanycomponentoftheProject.

Section3.2.DisbursementsfromtheCostsofIssuanceFund.TheBorrowerwillauthorizeanddirecttheTrusteeinwriting,uponcompliancewithSection3.04oftheIndenture,todisbursethemoneysintheCostsofIssuanceFundtooronbehalfoftheBorroweronlyforCostsofIssuance.EachofthepaymentsreferredtointhisSection3.2shallbemadeuponreceiptbytheTrusteeofawrittenrequisitionintheformprescribedbySection3.04oftheIndenture,signedbyanAuthorizedRepresentativeoftheBorrower.

Section3.3.[Reserved].

Section3.4.InvestmentofMoneysinFunds.AnymoneysinanyfundoraccountheldbytheTrusteeshall,atthewrittenrequestofanAuthorizedRepresentativeoftheBorrower,beinvestedorreinvestedbytheTrusteeasprovidedintheIndenture.SuchinvestmentsshallbeheldbytheTrusteeandshallbedeemedatalltimesapartofthefundoraccountfromwhichsuchinvestmentsweremade,andtheinterestaccruingthereon,andanyprofitorlossrealizedtherefrom,shallbecreditedorchargedtosuchfundoraccount.TheBorrowerherebywaivestherighttoreceivebrokerageconfirmationsofsecuritytransactionspursuanttoSection5.05oftheIndenture.

Section3.5.NoRecourse.TheobligationsoftheAuthorityarespecial,limitedobligationsoftheAuthority,payablesolelyoutoftherevenuesandincomederivedundertheIndenture.TheobligationsoftheAuthorityshallnotbedeemedtoconstituteindebtednessoranobligationoftheStateoranypoliticalsubdivisionthereofwithinthepurviewofanyconstitutionallimitationorstatutoryprovision,orachargeagainstthecreditorgeneraltaxingpowers,ifany,ofanyofthem.TheAuthoritydoesnothavethepowertolevytaxesforanypurposeswhatsoever.NeithertheAuthoritynoranymember,director,officers,employeeoragentoftheAuthoritynoranypersonexecutingtheBondsshallbeliablepersonallyfortheBondsorbesubjecttoanypersonalliabilityoraccountabilitybyreasonoftheissuanceoftheBonds.Norecourseshallbehadforthepaymentoftheprincipaloforpremium,ifany,andinterestonanyoftheBondsorforanyclaimbasedthereonoruponanyobligation,covenantoragreementcontainedinthisAgreement,theIndenture,theBondPurchaseAgreementortheTaxCertificateagainstanypast,presentorfuturemember,officer,agentoremployeeoftheAuthority,oranyincorporator,member,officer,employee,directorortrusteeofanysuccessorcorporation,assuch,eitherdirectlyorthroughtheAuthorityoranysuccessorcorporation,underanyruleoflaworequity,statuteorconstitutionorbytheenforcementofanyassessmentorpenaltyorotherwise,andallsuchliabilityofanysuchincorporator,member,officer,employee,director,agentortrusteeassuchisherebyexpresslywaivedandreleasedasaconditionofandconsiderationfortheexecutionofthisAgreementortheIndentureandtheissuanceoftheBonds.

Section3.6.NoWarrantybytheAuthority.THEBORROWERRECOGNIZESTHATTHEAUTHORITYHASNOTMADEANINSPECTIONOFTHEPROJECTOROFANYFIXTUREOROTHERITEMCONSTITUTINGAPORTIONTHEREOF,ANDTHE

AUTHORITYMAKESNOWARRANTYORREPRESENTATION,EXPRESSORIMPLIEDOROTHERWISE,WITHRESPECTTOTHESAMEORTHELOCATION,USE,DESCRIPTION,DESIGN,MERCHANTABILITY,CONDITION,WORKMANSHIP,ORFITNESS,SUITABILITYORUSEFORANYPARTICULARPURPOSE,CONDITIONORDURABILITYTHEREOF.THEBORROWERFURTHERRECOGNIZESTHATTHEAUTHORITYHASNOTITLEORINTERESTTOANYPARTOFTHEPROJECTANDTHATTHEAUTHORITYMAKESNOREPRESENTATIONSORWARRANTIESOFANYKINDASTOTHEBORROWER’STITLETHERETOOROWNERSHIPTHEREOFOROTHERWISE,ITBEINGAGREEDTHATALLRISKSINCIDENTTHERETOARETOBEBORNEBYTHEBORROWER.INTHEEVENTOFANYDEFECTORDEFICIENCYOFANYNATUREINTHEBONDFINANCEDPROPERTYORANYFIXTUREOROTHERITEMCONSTITUTINGAPORTIONTHEREOF,WHETHERPATENTORLATENT,THEAUTHORITYSHALLHAVENORESPONSIBILITYORLIABILITYWITHRESPECTTHERETO.THEPROVISIONSOFTHISSECTION3.6HAVEBEENNEGOTIATEDANDAREINTENDEDTOBEACOMPLETEEXCLUSIONANDNEGATIONOFANYWARRANTIESORREPRESENTATIONSBYTHEAUTHORITY,EXPRESSORIMPLIED,WITHRESPECTTOTHEPROJECTORANYFIXTUREOROTHERITEMCONSTITUTINGAPORTIONTHEREOF,WHETHERARISINGPURSUANTTOTHEUNIFORMCOMMERCIALCODEOFTHESTATEORANOTHERLAWNOWORHEREAFTERINEFFECTOROTHERWISE.

ARTICLE IV

LOANS OF PROCEEDS; REPAYMENT PROVISIONS

Section4.1.LoanofBondProceeds;IssuanceofBonds.TheAuthoritycovenantsandagrees,uponthetermsandconditionsinthisAgreement,tomakealoantotheBorroweroftheproceedsoftheBondsconditionedonthereceiptthereofbytheAuthorityforthepurposeofrefinancingtheCostsoftheProject.Pursuanttosaidcovenantsandagreements,theAuthoritywillissuetheBondsuponthetermsandconditionscontainedinthisAgreementandtheIndentureandwillcausetheBondproceedstobeappliedasprovidedinArticleIIIoftheIndenture.

Section4.2.RepaymentandPaymentofOtherAmountsPayable.

(a)OnorbeforeeachBondPaymentDate,untiltheprincipalorPurchasePriceofand,premium,ifany,andintereston,theBondsshallhavebeenfullypaidorprovisionforsuchpaymentshallhavebeenmadeasprovidedintheIndenture,theBorrowercovenantsandagreestopaytotheTrusteeasarepaymentontheloanmadetotheBorrowerfromBondproceedspursuanttoSection4.1hereof,asumequaltotheamountpayableonthenextBondPaymentDateasprincipalorPurchasePriceofandpremium,ifany,andintereston,theBondsasprovidedintheIndenture(“LoanRepayments”).SuchLoanRepaymentsshallbemadeinfederalfundsorotherfundsimmediatelyavailableattheCorporateTrustOfficeoftheTrustee.

EachLoanRepaymentshallatalltimesbesufficienttopaythetotalamountofinterestandprincipal(whetheratmaturityoruponredemptionoracceleration)andpremium,ifany,becomingdueandpayableontheBondsoneachBondPaymentDate;providedthatonceperyear,onthethirdBusinessDayfollowingtheBondPaymentDateofeachApril,anyamountheldbytheTrusteeintheRevenueFundontheduedateforaLoanRepaymenthereundershallbecredited

againsttheinstallmentdueonthenextBondPaymentDatetotheextentavailableforsuchpurposeunderthetermsoftheIndenture;andprovidedfurtherthatifatanytimetheamountsheldbytheTrusteeintheRevenueFundaresufficienttopayalloftheprincipalofandinterestandpremium,ifany,ontheBondsassuchpaymentsbecomedue,theBorrowershallberelievedofanyobligationtomakeanyfurtherpaymentsundertheprovisionsofthisSection.Notwithstandingtheforegoing,ifonanydatetheamountheldbytheTrusteeintheRevenueFundisinsufficienttomakeanyrequiredpaymentsofprincipalof(whetheratmaturityoruponredemption(includingwithoutlimitationsinkingfundredemption)oracceleration)andinterestandpremium,ifany,ontheBondsassuchpaymentsbecomedue,theBorrowershallforthwithpaysuchdeficiencyasaLoanRepaymenthereunder.

TheobligationoftheBorrowertomakeanyLoanRepaymentshallbedeemedtohavebeensatisfiedtotheextentofanycorrespondingpaymentmadebyaBanktotheTrusteepursuanttoaLetterofCreditthenineffectwithrespecttotheBonds.

TheBorrowerfurthercovenantsthatitwillmakeanypaymentsrequiredtobemadepursuanttoSections2.04and4.06oftheIndentureattheapplicablePurchasePricethereofby4:00p.m.NewYorkCitytime;provided,however,theobligationtomakesuchpaymentsshallhavebeendeemedsatisfiedtotheextentthatsuchPurchasePriceshallhavebeenpaidfromremarketingproceeds,fromadrawunderaLetterofCreditoranAlternateCreditFacilityorfrompaymentbytheBorrowerortheGuarantorpursuanttoSection4.07(A)(2)oftheIndenture.

(b)TheBorroweralsoagreestopay(i)theannualfeeoftheTrustee,theTenderAgent,ifany,theCalculationAgent,ifany,andtheRemarketingAgent,ifany,fortheirordinaryservicesrenderedastrustee,tenderagent,calculationagentorremarketingagent,respectively,andtheirordinaryexpensesincurredundertheIndenture,asandwhenthesamebecomedue,(ii)thereasonablefees,chargesandexpenses(includingreasonablelegalfees,costsandexpenses)oftheTrustee,asbondregistrarandpayingagent,thereasonablefeesofanyotherpayingagentontheBondsasprovidedintheIndentureandthisAgreement(including,butnotlimitedto,attorneys’fees,costsandexpenses),asandwhenthesamebecomedue,(iii)thereasonablefees,chargesandexpensesoftheTrusteeortheAuthorityforthenecessaryextraordinaryservicesrenderedbyitandextraordinaryexpenses(including,butnotlimitedtoattorneys’fees,costsandexpenses)incurredbyitundertheIndentureorthisAgreement,asapplicable,asandwhenthesamebecomedue,(iv)thecostofprintinganyBondsrequiredtobefurnishedbytheAuthorityattheexpenseoftheAuthority,(v)thecostofprintingandtypesettinganypreliminaryLimitedOfferingMemorandum,LimitedOfferingMemorandumorotherofferingcircularutilizedinconnectionwiththesaleorremarketingofanyBondsandanyamendmentorsupplementthereto,(vi)theAuthorityIssuanceFeeandthefeeofitscounselattheDateofDeliveryandfromtimetotimethereafter,assetforthinSection4.2(d)hereof,and(vii)anyamountsrequiredtobedepositedintheRebateFundtocomplywiththeprovisionsofSection6.06oftheIndentureandthepaymentofanyrebateanalyst.TheTrustee’scompensationshallnotbelimitedbyanyprovisionoflawregardingthecompensationofaTrusteeofanexpresstrust.

(c)TheBorroweralsoagreestopay,assoonaspracticableafterreceiptofrequestforpaymentthereof,allexpensesrequiredtobepaidbytheBorrowerunderthetermsoftheBondPurchaseAgreement,whichshallincludeallCostsofIssuanceoftheBonds.

(d)TheBorrowercovenantsandagreestopaytooronbehalfoftheAuthority,withinthirty(30)daysafterreceiptofaninvoicetherefor,thefollowing:

(i)AlltaxesandassessmentsofanytypeorcharacterchargedtotheAuthorityaffectingtheamountavailabletotheAuthorityfrompaymentstobereceivedhereunderorinanywayarisingduetothetransactionscontemplatedhereby(includingtaxesandassessmentsassessedorleviedbyanypublicagencyorgovernmentalauthorityofwhatsoevercharacterhavingpowertolevytaxesorassessments);provided, however,thattheBorrowershallhavetherighttoprotestanysuchtaxesorassessmentsandtorequiretheAuthority,attheBorrower’sexpense,toprotestandcontestanysuchtaxesorassessmentslevieduponthemandthattheBorrowershallhavetherighttowithholdpaymentofanysuchtaxesorassessmentspendingdispositionofanysuchprotestorcontestunlesssuchwithholding,protestorcontestwouldadverselyaffecttherightsorinterestsoftheAuthority;

(ii)Thereasonablefeesandexpensesofsuchaccountants,consultants,attorneysandotherexpertsasmaybeengagedbytheAuthoritytoprepareaudits,financialstatements,reports,opinionsorprovidesuchotherservicesrequiredundertheFinancingDocumentsortheIndenture;

(iii)TheAuthorityIssuanceFeeandthereasonablefeesandexpensesoftheAuthorityoranyagentorattorneyselectedbytheAuthoritytoactonitsbehalfinconnectionwiththeFinancingDocuments,theBondsortheIndenture,including,withoutlimitation,anyandallreasonableexpensesincurredinconnectionwiththeauthorization,issuance,saleanddeliveryofanysuchBondsorinconnectionwithanylitigation,investigationorotherproceedingwhichmayatanytimebeinstitutedinvolvingthisLoanAgreement,theFinancingDocuments,theBondsortheIndentureoranyoftheotherdocumentscontemplatedthereby,orinconnectionwiththereasonablesupervisionorinspectionoftheBorrower,itsproperties,assetsoroperationsorotherwiseinconnectionwiththeadministrationoftheFinancingDocuments;and

(iv)AnyamountsdueandpayablebytheBorrowerasarbitragerebateunderSection148oftheCodepursuanttotheBorrower’scovenantsandagreementswithrespecttheretointheTaxCertificate.

SuchAdditionalPaymentsshallbebilledtotheBorrowerbytheAuthorityfromtimetotime,togetherwithastatementcertifyingthattheamountbilledhasbeenincurredorpaidbytheAuthorityforoneormoreoftheaboveitems.Aftersuchademand,amountssobilledshallbepaidbytheBorrowerwithinthirty(30)daysafterthedateofinvoice.Notwithstandingtheforegoing,theAuthorityshallnotberequiredtosubmitabilltotheBorrowerforpaymentofanyamountsduewithrespecttoarbitragerebateunderSection148oftheCode,thecalculationandpaymentforwhichistheresponsibilityoftheBorrower.

TheAuthorityIssuanceFeeshallbepaidtotheAuthoritybytheBorrowerontheDateofDeliveryoftheBonds.TheBorrower’sobligationtopaytheAuthorityIssuanceFeeshallinnowaylimitamountspayablebytheBorrowertotheAuthorityundertheFinancingDocuments,includingfortheenforcementthereof.

(e)IntheeventtheBorrowershouldfailtomakeanyofthepaymentsrequiredbySubsections(b)through(d)ofthisSection,suchpaymentsshallcontinueasobligationsoftheBorrower,untilsuchamountsshallhavebeenfullypaid.

(f)TheBorroweragreestopayanyamountsrequiredtobedepositedintheRebateFundtocomplywiththeprovisionsoftheTaxCertificateandtopaythefees,chargesandexpensesofanyrebateanalystengagedbytheBorrowerortheAuthority.

(g)TheBorroweragreestopayandperformitsobligationsunderSection8.4ofthisAgreementinrespectofindemnificationoftheIndemnifiedPersons(ashereinafterdefined).

Section4.4.AssignmentandPledgeofAuthority’sRights;ObligationsofBorrowerUnconditional.AssecurityforthepaymentoftheBonds,theAuthoritywillassignandpledgetotheTrusteeallright,titleandinterestoftheAuthorityinandtothisAgreementandtheNote,includingtherighttoreceivepaymentshereunderandthereunder(exceptitsRetainedRights,includingwithoutlimitation,therighttoreceivepaymentofexpenses,fees,indemnificationandtherightstomakedeterminationsandreceivenoticesifrequestedashereinprovidedunderSections4.2(d),6.3,8.2and8.3hereof),andherebydirectstheBorrowertomakesaidpaymentsdirectlytotheTrustee.TheBorrowerherewithassentstosuchassignmentandpledgeandwillmakepaymentsdirectlytotheTrusteewithoutdefenseorset-offbyreasonofanydisputebetweentheBorrowerandtheAuthorityorTrustee,andherebyagreesthatitsobligationtomakepaymentshereunderandtoperformitsotheragreementscontainedhereinareabsoluteandunconditional.UntiltheprincipalofandinterestontheBondsshallhavebeenfullypaidorprovisionforthepaymentoftheBondsmadeinaccordancewiththeIndenture,theBorrower(a)willnotsuspendordiscontinueanypaymentsprovidedforinthisAgreement,(b)willperformallitsotherdutiesandresponsibilitiescalledforbythisAgreement,and(c)willnotterminatethisAgreementforanycauseincludinganyactsorcircumstancesthatmayconstitutefailureofconsideration,destructionofordamagetotheProject,commercialfrustrationofpurpose,anychangeinthelawsoftheUnitedStatesoroftheStateoranypoliticalsubdivisionofeitheroranyfailureoftheAuthoritytoperformanyofitsagreements,whetherexpressorimplied,oranyduty,liabilityorobligationarisingfromorconnectedwiththisAgreement.

Section4.5.AmountsRemaininginFunds.Itisagreedbythepartiesheretothatafterpaymentinfullof(i)theBonds,orafterprovisionforsuchpaymentshallhavebeenmadeasprovidedintheIndenture,(ii)thefees,chargesandexpensesoftheTrusteeandpayingagentsinaccordancewiththeIndenture,and(iii)allotheramountsrequiredtobepaidunderthisAgreementandtheIndenture,anyamountsremaininginanyfundheldbytheTrusteeundertheIndenture(exceptingtheRebateFund)shallbepaidasprovidedinSection10.01oftheIndenture.NotwithstandinganyotherprovisionofthisAgreementortheIndenture,undernocircumstancesshallproceedsofadrawonaLetterofCredit,anyAlternateCreditFacilityorremarketingproceedsbepaidtotheAuthorityortheBorrower.

ARTICLE V

SPECIAL COVENANTS AND AGREEMENTS

Section5.1.RightofAccesstotheProject.TheBorroweragreesthat,duringthetermofthisAgreement,theAuthority,theTrusteeandtheirdulyauthorizedagentsshallhavetheright,butshallbeundernodutyorobligationtoexercisethisright,duringregularbusinesshours,withreasonablenotice,toenteruponeachsitewhereanypartoftheProjectislocatedandtoexamineandinspecttheProject,subjecttosuchlimitations,restrictionsandrequirementsastheBorrowermayreasonablyprescribe.

Section5.2.TheBorrower’sMaintenanceofItsExistence;Assignments;PermittedTransfersoftheProject.

(a)Totheextentpermittedbylaw,theBorrowercovenantsandagreesthatduringthetermofthisAgreementitshallmaintainitsexistenceasacorporationingoodstandingandqualifiedtodobusinessintheStateofDelaware,willnotdissolve,sellorotherwisedisposeofallorsubstantiallyallofitsassetsandwillnotcombineorconsolidatewithormergeintoanotherentitysothattheBorrowerisnottheresultingorsurvivingentity(anysuchsale,disposition,combinationormergershallbereferredtohereafterasa“transaction”);providedthattheBorrowermayenterintosuchtransaction,if:

(i)noeventofdefaultexistsunderthisAgreement,theIndentureortheBorrowerDocumentsandnoeventofdefaultthereunderwillbecausedbythedissolution,liquidation,disposition,consolidationormerger;

(ii)theentitysurvivingthedissolution,liquidation,disposition,consolidationormergerassumes(orifthesurvivingentityistheBorrower,affirms)inwritingandwithoutconditionorqualificationtheobligationsoftheBorrowerundereachoftheBorrowerDocuments;

(iii)neitherthevaliditynortheenforceabilityoftheBonds,theIndentureortheBorrowerDocumentsisadverselyaffectedbythedissolution,liquidation,disposition,consolidationormerger;

(iv)theexclusionoftheinterestontheBondsfromgrossincomeforfederalincometaxpurposesisnotadverselyaffectedbythedissolution,liquidation,disposition,consolidationormerger,andtheprovisionsoftheActandtheIndenturearecompliedwithconcerningthedissolution,liquidation,disposition,consolidationormerger;

(v)theProjectcontinuestobeasdescribedherein;

(vi)anysuccessortotheBorrowershallbequalifiedtodobusinessintheStateandshallcontinuetobequalifiedtodobusinessintheStatethroughoutthetermhereof;and

(vii)theTrusteehasexecutedacertificateacknowledgingreceiptandapprovalofalldocuments,informationandmaterialsrequiredbythisSection5.2(a).

Asoftheeffectivedateofthedissolution,liquidation,disposition,consolidationormerger,theBorrower(atitscost)shallfurnishtotheAuthority(a)anopinionofBondCounsel,informandsubstancesatisfactorytotheAuthority,astoitem(iv)above,(b)anOpinionofCounsel(ofhighreputationandexpertiseasdeterminedbytheAuthority),informandsubstancesatisfactorytotheAuthority,astothelegal,validandbindingnatureofitems(ii)and(iii)above,(c)acertificateoftheBorrower,informandsubstancesatisfactorytotheAuthority,astoitems(i),(v)and(vi),and(d)atrueandcompletecopyoftheinstrumentofdissolution,liquidation,disposition,consolidationormerger.

(b)TherightsandobligationsoftheBorrowerunderthisAgreementmaybeassignedbytheBorrowertoanyPersoninwholeorinpart,subject,however,toeachofthefollowingconditions:

(i)NoassignmentotherthanpursuanttothisSection5.2shallrelievetheBorrowerfromprimaryliabilityforanyofitsobligationshereunder,andintheeventofanyassignmentnotpursuanttothisSection5.2theBorrowershallcontinuetoremainprimarilyliableforthepaymentsspecifiedinSection4.2hereofandforperformanceandobservanceoftheotheragreementsonitsparthereinprovidedtobeperformedandobservedbyit.

(ii)AnyassignmentfromtheBorrowerunderthissubsection(b)shallretainfortheBorrowersuchrightsandinterestsaswillpermitittoperformitsobligationsunderthisAgreement,ifapplicable,andanyassigneefromtheBorrowershallassumeinwritingtheobligationsoftheBorrowerhereundertotheextentoftheinterestassigned.

(iii)Withinthirty(30)calendardaysafterdeliverythereof,theBorrowershallfurnishorcausetobefurnishedtotheAuthority,theBank,ifany,andtheTrusteeatrueandcompletecopyofeachsuchassignmenttogetherwithaninstrumentofassumption.

(iv)TheBorrowershallfurnishtotheAuthority,theBank,ifany,andtheTrusteeaCertificateofanAuthorizedRepresentativeoftheBorrowerandanOpinionofCounseladdressedtotheAuthorityandtheTrusteethattheprovisionsofthissubsection(b)havebeencompliedwith.

(v)Notwithstandingtheforegoing,theBorrowermayassign(withtheconsentoftheAuthority,whichconsentshallnotbeunreasonablywithheld)itsentireinterestinthisAgreementwithoutrecourseandhavenofurtherliabilityforanyobligationsunderthisAgreementiftheconsentoftheBondholdershasbeenobtaineddirectlyorconstructivelypursuanttothetermsofthisAgreementortheIndentureandtheconditionsoftheforegoingsubsection(b)(iii)aresatisfied.

(c)Ifamerger,consolidation,saleorothertransferiseffectedasprovidedinthisSection,allprovisionsofthisSectionshallcontinueinfullforceandeffectandnofurthermerger,consolidation,saleortransfershallbeeffectedexceptinaccordancewiththeprovisionsofthisSection.

Section5.3.RecordsandFinancialStatementsofBorrower.TheBorrowercovenantsandagreesatalltimestokeep,orcausetobekept,properbooksofrecordandaccount,prepared

inaccordancewithgenerallyacceptedaccountingprinciples,inwhichcompleteandaccurateentriesshallbemadeofalltransactionsoforinrelationtothebusiness,propertiesandoperationsoftheBorrower.SuchbooksofrecordandaccountshallbeavailableforinspectionbytheAuthorityortheTrusteeuponreasonablepriornotice,duringnormalbusinesshoursandunderreasonablecircumstances.

Section5.4.MaintenanceandRepairs;Insurance.TheBorrowerwillmaintaintheProjectinasafeandsoundoperatingcondition;makingfromtimetotimeallneededmaterialrepairsthereto,andshallmaintainreasonableamountsofinsurancecoverage,or“self-insurance”inaccordancewiththeordinarycourseoftheBorrowerandtheGuarantor,withrespecttotheProject.TheBorrowershallpayallcostsofsuchmaintenance,repairandinsurance.

Section5.6.QualificationinState.TheBorroweragreesthatthroughoutthetermofthisAgreementitwillbequalified,anditwillcausetheGuarantor,oranysuccessororassigneetoitoranyofthemaspermittedbySection5.2andtotheextentrequiredbyapplicablelaw,tobequalifiedtodobusinessintheState.

Section5.7.LetterofCreditandAlternateCreditFacility.

(a)AtanytimetheBorrowermay,atitsoption,provideforthedeliverytotheTrusteeofaLetterofCreditorAlternateLetterofCredit(hereaftercollectivelyreferredtoasa“CreditInstrument”)andtheBorrowershall,inanyevent,causetobedeliveredaCreditInstrumentatleasttwenty(20)calendardaysbeforetheexpirationdateofanyexistingLetterofCredit,unlessotherwisepermittedbytheIndenture.ACreditInstrumentshallbeanirrevocableletterofcreditorotherirrevocablecreditfacility(including,ifapplicable,aconfirmingletterofcredit),issuedbyaBank(thatisnotanAffiliateoftheTrustee),thetermsofwhichshallbeacceptabletotheTrusteeandshallotherwisecomplywiththerequirementsoftheIndenture;provided,thattheexpirationdateofsuchCreditInstrumentshallbeadatenotearlierthanoneyearfromitsdateofissuance,subjecttoearlierterminationuponpaymentoftheBondsinfullorprovisionforsuchpaymentinaccordancewiththeIndenture.OnorpriortothedateofthedeliveryofaCreditInstrumenttotheTrustee,theBorrowershallcausetobefurnishedtotheTrustee(i)anApprovingOpinion,(ii)anopinionofcounseltotheBankissuingsuchCreditInstrumentstatingtotheeffectthatsuchCreditInstrumentisenforceableinaccordancewithitsterms(excepttotheextentthattheenforceabilitythereofmaybelimitedbybankruptcy,reorganizationorsimilarlawslimitingtheenforceabilityofcreditors’rightsgenerallyandexceptthatnoopinionneedbeexpressedastotheavailabilityofanydiscretionaryequitableremedies),(iii)writtenevidencefromaRatingAgencythattheBondsshallhavealong-termratingof“A”(orequivalent)orhigheror,iftheBondsonlyhaveashort-termrating,suchshort-termratingshallbeinthehighestshort-termratingcategory(withoutregardto“+”sor“-”s)and(iv)ifnoRatingAgencyisthenratingtheBonds,anopinionofBondCounseladdressedtotheTrusteeoranopinionofcounseltotheBankaddressedtotheTrusteetotheeffectthatpaymentsundersuchCreditInstrumentwillnotconstituteavoidablepreferenceunderSection547oftheUnitedStatesBankruptcyCodeasthenineffectifapetitioninbankruptcyisfiledbyoragainsttheBorrower,theGuarantorortheAuthorityoranaffiliateorasubsidiaryofanyofthem.

(b)TheBorrowershallprovidetotheTrustee(withacopytotheAuthority)awrittennoticeatleastfifteen(15)calendardayspriortotheeffectivedateofanyAlternateLetterofCredit(andinnoeventlaterthanthirty-five(35)calendardayspriortotheexpirationofanyexistingLetterofCredit)identifyingtheAlternateLetterofCredit,ifany,andtheratingwhichwillapplytotheBondsaftertheeffectivedate.

(c)TheBorrowermaydepositwiththeTrusteeanAlternateCreditFacility,inlieuofkeepingaCreditInstrumentinplaceatleast20calendardaysbeforetheexpirationdateofanyexistingCreditInstrument.

(d)UpondepositwiththeTrustee,theAlternateCreditFacilitymustmeetthefollowingconditions:

(i)theprovisionsoftheAlternateCreditFacilitymustbeacceptabletotheTrusteeandtheAlternateCreditFacilitymustbewithaBankthatisnotanAffiliateoftheTrustee;

(ii)thetermoftheAlternateCreditFacilitymustextendatleast364daysortoatleastthefirstdateonwhichtheBondsaresubjecttoredemption,pursuanttotheIndenture;and

(iii)theAlternateCreditFacilitymustbeinanamountsufficienttopayprincipalof,interestandthePurchasePriceofsuchBonds(anyredemptionpremiumnotcoveredbytheAlternateCreditFacilitymustbepaidwithAvailableMoneys).

(iv)Notlessthan20dayspriortothedateofdeliveryofanAlternateCreditFacility,theBorrowershall(i)delivertotheTrusteeawrittennoticeofexpecteddeliveryofsuchAlternateCreditFacility,(ii)informtheTrusteeinwritingofthedateonwhichtheAlternateCreditFacilitywillbecomeeffective,whichdateshallnotbelessthantwenty(20)calendardayspriortothestatedexpirationdateoftheexistingCreditInstrumentand(iii)informtheTrusteeinwritingoftheratingexpectedtoapplytotheBondsaftertherelatedAlternateCreditFacilityisdelivered.OnorpriortothedateofthedeliveryofanAlternateCreditFacilitytotheTrustee,theBorrowershallcausetobefurnishedtotheTrustee(i)anApprovingOpinion,(ii)anopinionofcounseltotheBanktotheeffectthattheAlternateCreditFacilityisenforceableinaccordancewithitsterms(excepttotheextentthatenforceabilitythereofmaybelimitedbybankruptcy,reorganizationorsimilarlawslimitingtheenforceabilityofcreditors’rightsgenerallyandexceptthatnoopinionneedbeexpressedastotheavailabilityofanydiscretionaryequitablerights),and(iii)writtenevidencefromaRatingAgencythattheBondsshallhavealong-termratingequivalentofatleastS&P“A”(orequivalent)orhigheror,iftheBondsonlyhaveashort-termrating,suchshort-termratingshallbeinthehighestshort-termratingcategory(withoutregardto“+”sor“-”s).

Section5.8.GeneralTaxCovenants.TheBorrowercovenantsandagreesthatitshallatalltimesdoandperformallactsandthingspermittedbylawandthisAgreementandtheIndenturewhicharenecessaryinordertoassurethatinterestpaidontheBonds(oranyofthem)willbeexcludablefromgrossincomeoftheownersthereofforfederalincometaxpurposesandshalltake

noactionthatwouldresultinsuchinterestnotbeingexcludablefromgrossincomeforfederalincometaxpurposes.Withoutlimitingthegeneralityoftheforegoing,theBorroweragreestocomplywiththeprovisionsoftheTaxCertificate,whichareherebyincorporatedherein.ThiscovenantshallsurvivepaymentinfullordefeasanceoftheBonds.

Section5.9.ContinuingDisclosure.TheBorrowerhascovenantedandagreedtocomplywiththecontinuingdisclosurerequirementsoftheContinuingDisclosureUndertaking.NotwithstandinganyotherprovisionofthisAgreement,failureoftheBorrowertocomplywiththeContinuingDisclosureUndertakingshallnotbeconsideredaLoanDefaultEvent;however,theTrustee,atthewrittenrequestoftheRemarketingAgentortheHoldersofatleast25%inaggregateprincipalamountofOutstandingBonds,shall,butonlytotheextentindemnifiedand/orprovidedwithsecuritytoitssatisfactionfromandagainstanycost,liabilityorexpenserelatedthereto,including,withoutlimitation,fees,costsandexpensesofitsattorneysandadvisorsandadditionalfees,costsandexpensesoftheTrustee,oranyBondholderorbeneficialowneroftheBondsmay,takesuchactionsasmaybenecessaryandappropriate,includingseekingmandateorspecificperformancebycourtorder,tocausetheBorrowertocomplywithitsobligationsundertheContinuingDisclosureUndertaking.TheBorroweracknowledgesandagreesthattheAuthorityshallhavenoobligationsorliabilitieswithrespecttotheContinuingDisclosureUndertaking.

Section5.10.MaintenanceofGuaranty;AdditionalSubsidiaryGuaranties.(a)TheBorroweragreesthatthroughoutthetermofthisAgreement,theBorrower,oranysuccessororassigneeaspermittedbySection5.2,willcausetheGuarantortomaintaintheGuarantyinfullforceandeffect.

(b)TheBorrowershallcauseeachRestrictedSubsidiaryoftheBorrower,otherthantheGuarantor,that,onoraftertheDateofDeliveryoftheBonds,guaranteesthepaymentofanyunsecuredIndebtednessoftheBorrower(i)toexecuteanddelivertotheTrusteepromptly(butinanyeventnotmorethan30daysafteranyRestrictedSubsidiaryentersintosuchguaranty)aSubsidiaryBondGuarantyinformandsubstancesatisfactorytotheTrusteeand(ii)delivertotheAuthorityandtheTrusteeanOpinionofCounseltotheeffectthatsuchSubsidiaryBondGuarantyhasbeendulyauthorizedandexecutedbysuchRestrictedSubsidiaryandconstitutesthelegal,valid,bindingandenforceableobligationofsuchRestrictedSubsidiary(subjecttosuchcustomaryexceptionsconcerningfraudulentconveyancelaws,creditors’rightsandequitableprinciplesasmaybeacceptabletotheTrusteeinitsdiscretion).

Section5.11.AnnualCertificate.ForeachyearthatthisAgreementremainsineffect,theBorrowerwillfurnishtotheTrusteeannuallynolaterthan210daysaftertheendoftheBorrower’sFiscalYear,acertificateoftheBorrower,signedbyanAuthorizedRepresentative,statingthat(i)theBorrowerhasmadeareviewofitsactivitiesduringtheprecedingcalendaryearforthepurposeofdeterminingwhetherornottheBorrowerhascompliedwithallfederaltaxandfederalsecuritieslawrequirementsrelatingtotheBondsandhasdeterminedthattheBorrowerisincompliancewithallrequirements,(ii)theBorrower’spost-issuancecompliancepolicycontainsatleast:(a)anidentificationofaresponsibleofficerorofficersforbondcompliance,(b)proceduresforrecordretention,includingarequirementtomaintainrecordsfortheentirerecordretentionperiod(generally,threeyearsaftertheApril15ofthecalendaryearimmediatelyafterthedateon

whichthelastbondoftheissueisretired),(c)procedurestoassurethatthearbitrageyieldrestrictionandrebaterequirementsaremet,and(d)procedurestotakeremedialaction,ifrequired,includingacknowledgementofthevoluntaryclosingagreementprogramoftheInternalRevenueService,(iii)theBorrowerisincompliancewithitspost-issuancecompliancepolicy,(iv)theBorrowerhasmadeareviewofitsactivitiesduringtheprecedingcalendaryearforthepurposeofdeterminingwhetherornottheBorrowerhascompliedwithalloftheterms,provisionsandconditionsofthisAgreement,(v)theBorrowerhaskept,observed,performedandfulfilledeachandeverycovenant,provisionandconditionofthisAgreementonitsparttobeperformed,and(vi)theBorrowerisnotindefaultintheperformanceorobservanceofanyofthecovenants,provisionsorconditionshereof,oriftheBorrowershallbeindefault,suchcertificateshallspecifyallsuchdefaultsandthenaturethereof.TheAuthoritymayrequestatitssolediscretioncopiesofanysuchcertificatefromtheBorrowerand/ortheTrustee.

Section5.12.CompliancewithLaws.TheBorrowershall,throughthetermofthisAgreementandatnoexpensetotheAuthority,promptlycomplyorcausecompliancewithallapplicablelaws,ordinances,orders,rules,regulationsandrequirementsofdulyconstitutedpublicauthoritieswhichmaybeapplicabletotheProject,ortotherepairandalterationthereof,ortotheuseormannerofuseoftheProject,including,butnotlimitedto,theAmericanswithDisabilitiesAct,IllinoisAccessibilityCode,allfederal,Stateandlocalenvironmental,healthandsafetylaws,rules,regulationsandordersapplicabletoorpertainingtotheProject,FederalWorkerAdjustmentandRetrainingNotificationActand,ifapplicable,theIllinoisPrevailingWageAct.TheBorroweracknowledgesthatitisawarethatStatestatutes,laws,ordinances,includingbuildingandzoningcodes,etc.,mayhavemateriallydifferentrequirementsandutilizedifferentdefinitionsthancomparablelawsinotherstatesandjurisdictions,andtheapplicationofsuchlawsmaybeimpactedbytheuseofbondproceedstofinance,inwholeorinpart,theProject.TheBorrowerhasconsultedwithcounselwithrespecttotheinterpretationandapplicationofthesestatutes,laws,ordinances,etc.

Section5.13.RecordingandMaintenanceofLiens.

(a)TheBorrowerwill,atitsownexpense,takeallnecessaryactiontomaintainandpreservethelienandsecurityinterestoftheIndenturesolongasanyprincipalof,premium,ifany,orinterestontheBondsremainsunpaid.

(b)TheBorrowerwill,forthwithaftertheexecutionanddeliveryofthisAgreementandtheIndentureandthereafterfromtimetotime,causethisAgreementandtheIndenture,includinganyamendmentsthereofandsupplementsthereto,andanyfinancingstatementsinrespectthereoftobefiled,registeredandrecordedinsuchmannerandinsuchplacesasmayberequiredbylawinordertopublishnoticeofandfullytoperfectandprotect(i)thetitleoftheBorrowertotheProject,and(ii)thelienandsecurityinterestthereingrantedtotheTrustee,totherights,ifany,oftheAuthorityassignedunderthisAgreementandtheIndenture,andfromtimetotimewillperformorcausetobeperformedanyotheractasprovidedbylawandwillexecuteorcausetobeexecutedanyandallcontinuationstatementsandfurtherinstrumentsnecessaryforsuchpublication,perfectionandprotection.Excepttotheextentitisexempttherefrom,theBorrowerwillpayorcausetobepaidallfiling,registrationandrecordingfeesincidenttosuchfiling,registrationandrecording,andallexpensesincidenttothepreparation,executionandacknowledgmentofsuchinstrumentsoffurtherassurance,andallfederalorStatefeesandothersimilarfees,duties,imposts,assessmentsandchargesarisingoutoforinconnectionwiththeexecutionanddeliveryofthisAgreementandtheIndentureandsuchinstrumentsoffurtherassurance.

(c)NeithertheAuthoritynortheTrusteeshallhaveanyresponsibilityforthepreparation,filingorrecordingofanyinstrument,documentorfinancingstatementorforthemaintenanceofanysecurityinterestintendedtobeperfectedthereby.TheAuthorityandtheTrusteewillexecutesuchinstrumentsprovidedtoitbytheBorrowerasmaybereasonablynecessaryinconnectionwithsuchfilingorrecording.

ARTICLE VI

LOAN DEFAULT EVENTS AND REMEDIES

Section6.1.LoanDefaultEvents.AnyoneofthefollowingwhichoccursandcontinuesshallconstituteaLoanDefaultEvent:

(a)failureoftheBorrowertomakeanypaymentrequiredbySection4.2(a)hereofwhendue,unlesssuchpaymentispaidbytheGuarantorpriortothetimepaymentisdue;or

(b)failureoftheBorrowertoobserveandperformanycovenant,conditionoragreementonitspartrequiredtobeobservedorperformedbythisAgreement,otherthanasprovidedinsubsection(a)ofthisSection,whichcontinuesforaperiodof30daysafterwrittennoticedeliveredtotheBorrowerandtheGuarantorbytheAuthorityortheTrusteeandwhichnoticeshallspecifysuchfailureandrequestthatitberemedied,unlesstheAuthorityandtheTrusteeshallagreeinwritingtoanextensionofsuchtime;provided,however,thatifthefailurestatedinthenoticecannotbecorrectedwithinsuchperiod,theAuthorityandtheTrusteewillnotunreasonablywithholdtheirconsenttoanextensionofsuchtimeifcorrectiveactionisinstitutedwithinsuchperiodanddiligentlypursueduntilthedefaultiscorrected,providedtheBorrowerprovidestheAuthorityandtheTrusteewithacertificationthatsuchdefaultissuchthatitcanbecorrectedbutnotwithintheapplicableperiodandthatcorrectiveactioncapableofremedyingsuchdefaulthasbeeninstitutedandisbeingdiligentlypursuedandwillbediligentlypursueduntilthedefaultiscorrected;or

(c)existenceofanEventofDefaultunderandasdefinedinSection7.01(a),(b),(c)or(e)oftheIndenture;or

(d)anyrepresentationorwarrantyoftheBorrowersetforthinSection2.3ofthisAgreementatthetimemadeordeemedmadeisfalseinanymaterialrespect;or

(e)anyeventofdefaultundertheGuaranty;or

(f)SolongastheBondsareintheTermInterestRatePeriodandnoLetterofCreditisineffect,theexistenceofadefaultunderandasdefinedin(i)theABLCreditAgreement,(ii)theTermLoanCreditAgreement,(iii)theSeniorNotesIndentureor(iv)theSeniorSecuredNotesIndenture,butonlyifsuchdefaulthasresultedintheaccelerationoftheobligationsowedunderanysuchinstrumentpriortoitsfinalstatedmaturityandprovidedthat,intheeventthatsuchaccelerationhasbeenrescinded,suchEventofDefaulthereunderwillbedeemedcuredforallpurposesandofnofurthereffect;or

(g)SolongastheBondsareintheTermInterestRatePeriodandnoLetterofCreditisineffect,andtheBorrowershallhavebeendeemeddischargedfromitswithrespectto(i)theABLCreditAgreement,(ii)theTermLoanCreditAgreement,(iii)theSeniorNotesIndentureor(iv)theSeniorSecuredNotesIndenture(otherthananyindemnificationandotherobligationswhichsurvivetheterminationanysuchinstrument),adefaultunder,andasdefinedin,anyindenture,agreementorinstrumentgoverninganyIndebtednessintheprincipalamountof$50,000,000,butonlyifsuchdefaultwithrespecttoanysuchIndebtednesshasresultedintheaccelerationofsuchIndebtednesspriortoitsfinalstatedmaturityandprovidedthat,intheeventthatsuchaccelerationhasbeenrescinded,suchEventofDefaulthereunderwillbedeemedcuredforallpurposesandofnofurthereffect.

Theprovisionsofsubsection(b)ofthisSectionaresubjecttothelimitationthattheBorrowershallnotbedeemedindefaultif,andsolongas,theBorrowerisunabletocarryoutitsagreementshereunderbyreasonofstrikes,lockoutsorotherindustrialdisturbances;actsofpublicenemies;ordersofanykindofthegovernmentoftheUnitedStatesoroftheStateortheStateofDelawareoranyoftheirdepartments,agencies,orofficials,oranycivilormilitaryauthority;insurrections,riots,epidemics,landslides;lightning;earthquake;fire;hurricanes;storms;floods;washouts;droughts;arrests;restraintofgovernmentandpeople;civildisturbances;wars;actsofterrorism;explosions;breakageoraccidenttomachinery,transmissionpipesorcanals;partialorentirefailureofutilities;oranyothercauseoreventnotreasonablywithinthecontroloftheBorrower;itbeingagreedthatthesettlementofstrikes,lockoutsandotherindustrialdisturbancesshallbeentirelywithinthediscretionoftheBorrowerandtheBorrowershallnotberequiredtomakesettlementofstrikes,lockoutsandotherindustrialdisturbancesbyaccedingtothedemandsoftheopposingpartyorpartieswhensuchcourseis,inthejudgmentoftheBorrower,unfavorabletotheBorrower.Thislimitationshallnotapplytoanydefaultundersubsections(a),(c),(d),(f)or(g)ofthisSection.

NotwithstandinganyotherprovisionofthisAgreementtothecontrary,solongastheBankisnotindefaultundertheLetterofCredit,theTrusteeshallnotwithoutthepriorwrittenconsentordirectionoftheBankexerciseanyremediesunderthisAgreementinthecaseofanyLoanDefaultEventdescribedinsubsections(a),(b),(c)or(d)above;provided, however,thatnoconsentoftheBankshallberequiredwithrespecttotheAuthority’sexerciseofanyremedyprovidedhereinseekingenforcementoftheRetainedRights.TheTrusteemayexerciseanyandallremediesundertheIndentureandthisAgreement(exceptacceleration)tocollectanyfees,expensesandindemnificationduetoitineachofitscapacitiesundertheIndentureandthisAgreementfromtheBorrowerwithoutobtainingtheconsentoftheBank.

Section6.2.RemediesonDefault.SubjecttoSection6.1hereof,wheneveranyLoanDefaultEventshallhaveoccurredandshallbecontinuing,

(a)TheTrustee,bywrittennoticetotheAuthority,theBorrower,theGuarantorandtheBank,ifany,shalldeclaretheunpaidbalanceoftheLoanRepaymentspayableunderSection4.2(a)ofthisAgreementtobedueandpayableimmediately,providedthatconcurrentlywithorpriortosuchnoticetheunpaidprincipalamountoftheBondsshallhavebeendeclaredto

bedueandpayableundertheIndenture.Uponanysuchdeclaration,suchamountshallbecomeandshallbeimmediatelydueandpayableasdeterminedinaccordancewithSection7.01oftheIndentureandtheTrusteeshallimmediatelydrawupontheLetterofCredit,ifpermittedbyitstermsandrequiredbythetermsoftheIndenture,andapplytheamountsodrawninaccordancewiththeIndenture.

(b)TheTrusteemayhaveaccesstoandmayinspect,examineandmakecopiesofthebooksandrecordsandanyandallaccounts,dataandfederalincometaxandothertaxreturnsoftheBorrower;providedthattheTrusteeshallbeobligatedtoprotecttheconfidentialityofsuchinformationtotheextentprovidedbyStateandfederallawandpreventitsdisclosuretothepublic,excepttheAuthority.

(c)TheAuthorityortheTrusteemaytakewhateverotheractionatlaworinequityasmaybenecessaryordesirabletocollectthepaymentsandotheramountsthendueandthereaftertobecomedueortoenforceperformanceandobservanceofanyobligation,agreementorcovenantoftheBorrowerunderthisAgreement;provided, however,thataccelerationoftheunpaidbalanceoftheLoanRepaymentsisnotaremedyavailabletotheAuthority.

(d)IncasetheTrusteeortheAuthorityshallhaveproceededtoenforceitsrightsunderthisAgreementandsuchproceedingsshallhavebeendiscontinuedorabandonedforanyreasonorshallhavebeendeterminedadverselytotheTrusteeortheAuthority,then,andineverysuchcase,theBorrower,theTrusteeandtheAuthorityshallberestoredrespectivelytotheirseveralpositionsandrightshereunder,andallrights,remediesandpowersoftheBorrower,theTrusteeandtheAuthorityshallcontinueasthoughnosuchactionhadbeentaken.

(e)TheBorrowercovenantsthat,incaseaLoanDefaultEventshalloccurwithrespecttothepaymentofanyLoanRepaymentpayableunderSection4.2(a)hereof,then,upondemandoftheTrustee,theBorrowerwillpaytotheTrusteethewholeamountthatthenshallhavebecomedueandpayableundersaidSection,withinterestontheamountthenoverdueattheratethenbornebytheBondsonthedaypriortotheoccurrenceofsuchdefault.

(f)IncasetheBorrowershallfailforthwithtopaysuchamountsuponsuchdemand,theTrusteeshallbeentitledandempoweredtoinstituteanyactionorproceedingatlaworinequityforthecollectionofthesumssodueandunpaid,andmayprosecuteanysuchactionorproceedingtojudgmentorfinaldecree,andmayenforceanysuchjudgmentorfinaldecreeagainsttheBorrowerandcollectinthemannerprovidedbylawthemoneysadjudgedordecreedtobepayable.

(g)IncaseproceedingsshallbependingforthebankruptcyorforthereorganizationoftheBorrowerunderthefederalbankruptcylawsoranyotherapplicablelaw,orincaseareceiverortrusteeshallhavebeenappointedforthepropertyoftheBorrowerorinthecaseofanyothersimilarjudicialproceedingsrelativetotheBorrower,thecreditorsorpropertyoftheBorrower,thentheTrusteeshallbeentitledandempowered,byinterventioninsuchproceedingsorotherwise,tofileandproveaclaimorclaimsforthewholeamountowingandunpaidpursuanttothisAgreementand,incaseofanyjudicialproceedings,tofilesuchproofsofclaimandotherpapersordocumentsasmaybenecessaryoradvisableinordertohavetheclaimsoftheTrusteeallowedinsuchjudicialproceedingsrelativetotheBorrower,itscreditorsoritsproperty,andtocollectandreceiveanymoneysorotherpropertypayableordeliverableonanysuchclaims,andto

distributesuchamountsasprovidedintheIndentureafterthedeductionofitsreasonablechargesandexpensestotheextentpermittedbytheIndenture.Anyreceiver,assigneeortrusteeinbankruptcyorreorganizationisherebyauthorizedtomakesuchpaymentstotheTrusteeandtopaytotheTrusteeanyamountdueitforreasonablecompensationandexpenses,includingreasonableexpenses,costsandfeesofcounselincurredbytheTrusteeuptothedateofsuchdistribution.

Section6.3.AgreementtoPayAttorneys’Fees,CostsandExpenses.IntheeventtheBorrowershoulddefaultunderanyoftheprovisionsofthisAgreementandtheTrusteeshouldemployattorneysorincurothercostsorexpensesforthecollectionofthepaymentsdueunderthisAgreementortheenforcementofperformanceorobservanceofanyobligationoragreementonthepartoftheBorrowerhereincontained(otherthanlitigationofdisputesbetweentheAuthorityandtheBorrower),theBorroweragreestopayandindemnify,ortocausetheGuarantortopayandindemnify,theTrusteeforthereasonablefees,costsandexpensesofsuchattorneysandsuchotherreasonablecostsandexpensessoincurredbytheTrustee.

Section6.4.NoRemedyExclusive.NoremedyhereinconferreduponorreservedtotheAuthorityortheTrusteeisintendedtobeexclusiveofanyotheravailableremedyorremedies,buteachandeverysuchremedyshallbecumulativeandshallbeinadditiontoeveryotherremedygivenunderthisAgreementandtheIndenture,noworhereafterexistingatlaw,inequityorbystatute.Nodelayoromissiontoexerciseanyrightorpoweraccruinguponanydefaultshallimpairanysuchrightorpowerorshallbeconstruedtobeawaiverthereof,butanysuchrightandpowermaybeexercisedfromtimetotimeandasoftenasmaybedeemedexpedient.InordertoentitletheAuthorityortheTrusteetoexerciseanyremedyreservedtoitinthisArticle,itshallnotbenecessarytogiveanynotice,otherthansuchnoticeasmaybehereinexpresslyrequired.TheTrusteeandtheHoldersoftheBondsshallbeconsideredthirdpartybeneficiariesforthepurposesofenforcingtherightsoftheAuthorityandtheirownrespectiverights.

Section6.5.NoAdditionalWaiverImpliedbyOneWaiver.IntheeventanyagreementorcovenantcontainedinthisAgreementshouldbebreachedbytheBorrowerandthereafterwaivedbytheAuthorityortheTrustee,suchwaivershallbelimitedtotheparticularbreachsowaivedandshallnotbedeemedtowaiveanyotherbreachhereunder.

ARTICLE VII

PREPAYMENT

Section7.1.RedemptionofBondswithPrepaymentMoneys.ByvirtueoftheassignmentoftherightsoftheAuthorityunderthisAgreementtotheTrusteeasisprovidedinSection4.4hereof,theBorroweragreestoandshallpaydirectlytotheTrusteeanyamountpermittedorrequiredtobepaidbyitunderthisArticleVII.TheTrusteeshallusethemoneyssopaidtoitbytheBorrowertoredeemtheBondsonthedatesetforsuchredemptionpursuanttoSection7.5hereof.TheAuthorityshallcallBondsforredemptionasrequiredbyArticleIVoftheIndentureorasrequestedbytheBorrowerpursuanttotheIndentureorthisAgreement.

Section7.2.OptionstoPrepayInstallments.TheBorrowershallhavetheoptiontoprepaytheamountspayableunderSection4.2(a)hereofbypayingtotheTrustee,fordepositin

theRedemptionAccountwithintheRevenueFund,theamountsetforthinSection7.4hereof,underthefollowingcircumstances:

(a)TheBorrowermayprepaysuchamountsinwhole,orinpart,andcausealloftheBondstoberedeemedatthepriceandtimeandundertheconditionssetforthinSection4.01(5)oftheIndenture.

(b)TheBorrowermayprepayalloranypartoftheLoanRepaymentsandcausealloranypartoftheBondstoberedeemedatthetimesandatthepricessetforthinSection4.01(3),(4),(6),(7)or(8)oftheIndentureandinanySupplementalIndenture,subjecttoanyadditionalrequirementsofaCreditAgreement.

Section7.3.MandatoryPrepayment.TheBorrowershallhaveandherebyacceptstheobligationtoprepayinwholetheLoanRepaymentsrequiredbySection4.2(a)ofthisAgreement,togetherwithinterestaccrued,butunpaid,thereon,tobeusedtoredeemallorapartoftheOutstandingBondsifmandatoryredemptionisrequiredbySection4.01(2)oftheIndentureorbyanySupplementalIndenture.

TheamountpayablebytheBorrowerintheeventofaprepaymentrequiredbythisSectionshallbedeterminedassetforthinSection7.4andshallbedepositedintheRedemptionAccountwithintheRevenueFund.

Section7.4.AmountofPrepayment.InthecaseofaprepaymentoftheentireamountduehereunderpursuanttoSection7.2or7.3hereof,theamounttobepaidshallbeasumsufficient,togetherwithotherfundsandtheyieldonanysecuritiesdepositedwiththeTrusteeandavailableforsuchpurpose,topay(1)theprincipalofallBondsOutstandingontheredemptiondatespecifiedinthenoticeofredemption,plusinterestaccruedandtoaccruetothepaymentorredemptiondateoftheBonds,pluspremium,ifany,pursuanttotheIndenture,(2)allreasonableandnecessaryfeesandexpensesoftheAuthority,theTrustee,theTenderAgent,theRegistrar,theCalculationAgent,ifany,andanypayingagentaccruedandtoaccruethroughfinalpaymentoftheBondsand(3)allotherliabilitiesoftheBorroweraccruedandtoaccrueunderthisAgreement(including,withoutlimitation,anypaymentsinrespectoftheRetainedRightsthathaveaccrueduptothedateofsuchprepayment;provided,thatfortheavoidanceofdoubt,thepartiesacknowledgethatpursuanttoSection9.9herein,suchpaymentinrespectoftheRetainedRightsdoesnotrelievetheBorrowerwithrespecttoitsobligationsthatsurviveterminationofthisAgreementthereunder).

InthecaseofpartialprepaymentoftheLoanRepayments,theamountpayableshallbeasumsufficient,togetherwithotherfundsdepositedwiththeTrusteeandavailableforsuchpurpose,topaytheprincipalamountofandpremium,ifany,andaccruedinterestontheBondstoberedeemed,asprovidedintheIndenture,andtopayexpensesofredemptionofsuchBonds.AllpartialprepaymentsoftheLoanRepaymentsshallbeappliedininverseorderoftheduedatesthereof.

Section7.5.NoticeofPrepayment.ToexerciseanoptiongrantedinortoperformanobligationrequiredbythisArticleVII,theBorrowershallgivewrittennotice,atleast15dayspriortothelastdaybywhichtheTrusteeispermittedtogivenoticeofredemptionpursuanttoSection4.03oftheIndenture,totheAuthorityandtheTrusteespecifyingtheamounttobeprepaid

andthedateuponwhichanyprepaymentwillbemade.IftheBorrowerfailstogivesuchnoticeofaprepaymentinconnectionwithamandatoryredemptionunderthisAgreement,suchnoticemaybegivenbytheAuthority,bytheTrusteeorbyanyHolderorHoldersof10%ormoreinaggregateprincipalamountofBondsOutstanding.TheAuthorityandtheTrustee,atthewrittenrequestoftheBorroweroranysuchBondholder,shallforthwithtakeallstepsnecessaryundertheapplicableprovisionsoftheIndenture(exceptthattheAuthorityshallnotberequiredtomakepaymentofanymoneyrequiredforsuchredemption)toeffectredemptionofallorpartofthethenOutstandingBonds,asthecasemaybe,ontheearliestpracticabledatethereafteronwhichsuchredemptionmaybemadeunderapplicableprovisionsoftheIndenture.

Section7.6.OffertoPurchaseuponaChangeofControl.(a)IfaChangeofControloccurs,eachHoldershallhavetherighttorequiretheBorrowertopurchasealloranypartofthatHolder’sBonds(which,ifinpart,shallbeinanamountequaltoanAuthorizedDenominationandthenon-purchasedportionshallalsobeinanamountequaltoanAuthorizedDenomination)pursuanttoachangeofcontrolofferonthetermssetforthinthisLoanAgreement(a“ChangeofControlOffer”).IntheChangeofControlOffer,theBorrowershallofferpaymentincashequalto101%oftheaggregateprincipalamountofBondspurchasedplusaccruedandunpaidinterestthereontothedateofpurchase(a“ChangeofControlPayment”).Within30daysfollowinganyChangeofControl,theTrustee,atthewrittendirectionoftheBorrower,shallmailanoticetoeachHolderstating:

(i)thetransactionortransactionsthatconstitutetheChangeofControl;

(ii)thattheChangeofControlOfferisbeingmadepursuanttothisSection7.6andthatallBondstenderedshallbeacceptedforpayment;

(iii)thepurchasepriceandthepurchasedate,whichdateshallbenoearlierthan30daysandnolaterthan60daysfromthedatethenoticeismailed(the“ChangeofControlPaymentDate”);

(iv)thatanyBondnottenderedshallcontinuetoaccrueinterest;

(v)that,unlesstheBorrowerdefaultsinthepaymentoftheChangeofControlPayment,allBondsacceptedforpaymentpursuanttotheChangeofControlOffershallceasetoaccrueinterestaftertheChangeofControlPaymentDate;

(vi)thatHolderselectingtohaveanyBonds(orportionsthereofinAuthorizedDenominations)purchasedpursuanttoaChangeofControlOffershalldeliveranirrevocablenoticeinwritingbytheDirectParticipanthavingtheownershipinterestinsuchBondstotheTrustee,andsuchDirectParticipantshalltransferontheregistrationbooksofDTCtheownershipinterestinsuchBonds(orportionsthereofinAuthorizedDenominations),totheTrustee,priortothecloseofbusinessonthethirdBusinessDayprecedingtheChangeofControlPaymentDate;

(vii)thatHoldersshallbeentitledtowithdrawtheirelectioniftheTrusteereceives,notlaterthanthecloseofbusinessonthesecondBusinessDayprecedingtheChangeofControlPaymentDate,atelex,facsimiletransmissionorlettersettingforththenameoftheHolder,theprincipalamountofBondsdeliveredforpurchase,andastatementthatsuchHolderiswithdrawinghiselectiontohavesuchBondspurchased;and

(viii)thatHolderswhoseBondsarebeingpurchasedonlyinpartshallbeissuednewBondsequalinprincipalamounttotheunpurchasedportionoftheBondssurrendered,whichunpurchasedportionmustbeequaltoanAuthorizedDenomination.

TheBorrowershallcomplywiththerequirementsofSection14(e)andRule14e-1undertheExchangeActandanyothersecuritieslawsandregulationsthereundertotheextentthoselawsandregulationsareapplicableinconnectionwiththerepurchaseoftheBondsasaresultofaChangeofControl.TotheextentthattheprovisionsofanysecuritieslawsorregulationsconflictwiththeChangeofControlprovisionsofthisLoanAgreement,theBorrowershallcomplywiththeapplicablesecuritieslawsandregulationsandwillnotbedeemedtohavebreacheditsobligationsundertheChangeofControlprovisionsofthisLoanAgreementbyvirtueofsuchconflict.

(b)OntheChangeofControlPaymentDate,theBorrowershall,totheextentlawful:

(i)acceptforpaymentallBondsorportionsofBondsproperlytenderedpursuanttotheChangeofControloffer;

(ii)depositwiththeTrusteeanamountequaltotheChangeofControlPaymentinrespectofallBondsorportionsofBondsproperlytendered;and

(iii)deliverorcausetobedeliveredtotheTrusteetheBondssoacceptedtogetherwithaCertificateofanAuthorizedRepresentativeoftheBorrowerstatingtheaggregateprincipalamountofBondsorportionsofBondsbeingpurchasedbytheBorrower.

TheTrusteeshallpromptlymailtoeachHolderofBondsproperlytenderedtheChangeofControlPaymentforsuchBonds,anduponreceiptofaRequestfromtheAuthority,theTrusteeshallpromptlyauthenticateandmail(orcausetobetransferredbybookentry)toeachHolderanewBondequalinprincipalamounttoanyunpurchasedportionoftheBondssurrendered,ifany;providedthateachnewBondwillbeinaprincipalamountequaltoanAuthorizedDenomination.

TheBorrowershallpubliclyannouncetheresultsoftheChangeofControlOfferonorassoonaspracticableaftertheChangeofControlPaymentDate.

TheprovisionsdescribedabovethatrequiretheBorrowertomakeaChangeofControlOfferfollowingaChangeofControlwillbeapplicableregardlessofwhetheranyotherprovisionsofthisLoanAgreementareapplicable.

TheBorrowerwillnotberequiredtomakeaChangeofControlOfferuponaChangeofControlif(1)athirdpartymakestheChangeofControlOfferinthemanner,atthetimesandotherwiseincompliancewiththerequirementsdescribedhereinapplicabletoaChangeofControlOffermadebytheBorrowerandpurchasesallBondsvalidlytenderedandnotwithdrawnundersuchChangeofControlOfferor(2)anoticeofredemptionhasbeengivenpursuanttotheIndentureasdescribedunderSection4.03oftheIndenture,unlessanduntilthereisadefaultin

thepaymentoftheapplicableredemptionprice.AChangeofControlOffermaybemadeinadvanceofaChangeofControlandmaybeconditionedupontheoccurrenceofaChangeofControlifadefinitiveagreementisinplacefortheChangeofControlatthetimetheChangeofControlOfferismade.

ARTICLE VIII

NON-LIABILITY OF AUTHORITY; EXPENSES; INDEMNIFICATION

Section8.1.LimitedLiabilityofAuthority.Notwithstandinganyprovisionorobligationtothecontrarysetforthherein,noprovisionofthisAgreementshallbeconstruedsoastogiverisetoapecuniaryliabilityoftheAuthorityortogiverisetoachargeuponthegeneralcreditoftheAuthority,theliabilityoftheAuthorityhereundershallbelimitedtoitsinterestintheProject,thisAgreement,theNote,andallotherrelateddocumentsandcollateralandthelienofanyjudgmentshallberestrictedthereto.IntheperformanceoftheagreementsoftheAuthorityhereincontained,anyobligationitmayincurforthepaymentofmoneyshallnotbeadebtoftheAuthority,norshalltheAuthoritybeliableonanyobligationsoincurred.TheAuthoritydoesnotassumegeneralliabilityfortherepaymentofthebondsorforthecosts,fees,penalties,taxes,interest,commissions,charges,insuranceoranyotherpaymentsrecitedherein,andshallbeobligatedtopaythesameonlyoutoftheamountspayablebytheBorrowerhereunder.TheAuthorityshallnotberequiredtodoanyactwhatsoeverorexerciseanydiligencewhatsoevertomitigatethedamagestotheBorrowerifadefaultshalloccurhereunder.

Section8.2.Expenses.TheBorrowercovenantsandagreestopayandtoindemnifytheAuthorityandtheTrusteeagainstallcostsandcharges,includingreasonablefees,costs,expensesanddisbursementsofattorneys,accountants,consultantsandotherexperts,incurredingoodfaithinconnectionwiththisAgreement,theBondsortheIndenture.

Section8.3.EnforcementofRights.NotwithstandinganythingtothecontraryintheIndentureorthisAgreement,theAuthorityshallhavenoobligationto,andinsteadtheTrusteeoranyBondholdermay,inaccordancewiththeIndentureandthisAgreement,andwithoutanydirectionfromoractionbytheAuthority,takeanyandallsteps,actionsandproceedingstoenforceanyorallrightsoftheAuthority(otherthantheRetainedRights)undertheIndentureorthisAgreement,including,withoutlimitation,therightstoenforcetheremediesupontheoccurrenceandcontinuationofanEventofDefault,theobligationsoftheBorrowerunderthisAgreementandtheGuarantorundertheGuaranty.

Notwithstandingtheforegoing,nothingintheIndentureorthisAgreementshallbedeemedorconstruedtolimit,impairoraffectinanywaytheAuthority’s(oranyAuthorityIndemnifiedPerson’s)righttoenforcetheRetainedRights,regardlessofwhetherthereisthenexistingaLoanDefaultEvent(including,withoutlimitation,apaymentdefault),oranyactionbasedthereonoroccasionedbyaLoanDefaultEventorallegedLoanDefaultEvent,andregardlessofanywaiverorforbearancegrantedbytheTrusteeoranyBondholderinrespectthereof.Anydefault,EventofDefaultorLoanDefaultEventinrespectoftheRetainedRightsmayonlybewaivedwiththeAuthority’swrittenconsent.

Section8.4.Indemnification.(a)TheBorrowerwillpay,andwillprotect,indemnifyandsavetheAuthorityandtheTrusteeandtheirrespectivepast,presentandfuturemembers,officers,directors,employees,agents,successor,assignsandanyotherperson,ifany,who“controls”theAuthorityortheTrustee,asthecasemaybe,asthattermisdefinedinSection15oftheSecuritiesActof1933,asamended(each,an“IndemnifiedPerson”andtheAuthority,theTrusteeandtheotherlistedpersonscollectivelyreferredtoasthe“IndemnifiedPersons”)harmlessfromandagainstanyandallliabilities,losses,damages,taxes,penalties,costsandexpenses(includingattorneys’feesandexpensesoftheAuthorityandtheTrustee),causesofaction,suits,proceedings,claims,demands,taxreviews,investigationsandjudgmentsofwhatsoeverkindandnature(including,butnotlimitedto,thosearisingorresultingfromanyinjurytoordeathofanypersonordamagetoproperty)arisingfromorinanymannerdirectlyorindirectlygrowingoutoforconnectedwiththefollowing:

(i)theuse,financing,non-use,conditionoroccupancyoftheProject,anyrepairs,construction,alterations,renovation,relocation,remodelingandequippingthereofortheretoortheconditionoftheProjectincludingadjoiningsidewalks,streetsoralleysandanyequipmentorfacilitiesatanytimelocatedonorconnectedwiththeProjectorusedinconnectiontherewithbutwhicharenottheresultofthegrossnegligenceoftheAuthorityorTrustee(asadjudicatedinafinalnon-appealabledecisionbyacourtofcompetentjurisdiction);

(ii)aviolationofanyagreement,warranty,covenantorconditionofthisAgreementoranyotheragreementexecutedinconnectionwiththisAgreement;

(iii)aviolationofanycontract,agreementorrestrictionbytheBorrowerrelatingtotheProject;

(iv)aviolationofanylaw,ordinance,rule,regulationorcourtorderaffectingtheProjectortheownership,occupancyorusethereofortheBondsoruseoftheproceedsthereof;

(v)aviolationofanylaw,ordinance,rule,regulationorcourtorderrelatingtothesaleoftheBondsortheuseoftheLimitedOfferingMemorandum(orotherdisclosuredocument)relatedthereto;

(vi)anystatementorinformationconcerningtheBorrower,anyofitsofficersandmembers,itsoperationsorfinancialconditiongenerallyortheProject,containedintheLimitedOfferingMemorandumorsupplementoramendmenttheretofurnishedtotheAuthorityorthepurchaserofanyBonds,thatisuntrueorincorrectinanymaterialrespect,andanyomissionfromsuchLimitedOfferingMemorandumoranystatementorinformationwhichshouldbecontainedthereinforthepurposeforwhichthesameistobeusedorwhichisnecessarytomakethestatementsthereinconcerningtheBorrower,anyofitsofficersandmembersandtheProjectnotmisleadinginanymaterialrespect,providedthatsuchLimitedOfferingMemorandumorsupplementoramendmenthasbeenapprovedbytheBorrower;and

(vii)theacceptanceoradministrationoftheIndenture,includingwithoutlimitationtheenforcementofanyremediesundertheIndentureandanyotherrelateddocuments,providedthattheTrusteeshallnotbeentitledtoanyindemnityrelatedtoliabilitiesdescribedinthisclause(vii)causedsolelybythegrossnegligenceorwillfulmisconductoftheTrustee(asadjudicatedinafinalnon-appealabledecisionbyacourtofcompetentjurisdiction).

(b)IncaseanyclaimshallbemadeoranyactionshallbebroughtagainstoneormoreoftheIndemnifiedPersonsinrespectofwhichindemnitycanbesoughtagainsttheBorrowerpursuanttothisSection,theIndemnifiedPersonseekingindemnityshallpromptlynotifytheBorrower,inwriting(providedthatthefailurebytheIndemnifiedPersontosonotifytheBorrowershallnotrelievetheBorrowerofitsobligationshereunder),andtheBorrowershallpromptlyassumethedefensethereof,includingtheemploymentofcounselchosenbytheBorrowerandapprovedbytheAuthorityorTrustee,orboth(provided,thatsuchapprovalbytheAuthorityorTrusteeshallnotbeunreasonablywithheld),thepaymentofallexpensesandtherighttonegotiateandconsenttosettlement.IfanyIndemnifiedPersonisadvisedinawrittenopinionofcounselthattheremaybelegaldefensesavailabletosuchIndemnifiedPersonwhichareadversetoorinconflictwiththoseavailabletotheBorrower,orthatthedefenseofsuchIndemnifiedPersonshouldbehandledbyseparatecounsel,theBorrowershallnothavetherighttoassumethedefenseofsuchIndemnifiedPerson,buttheBorrowershallberesponsibleforthereasonablefeesandexpensesofcounselretainedbysuchIndemnifiedPersoninassumingitsowndefense,andprovidedalsothat,iftheBorrowershallhavefailedtoassumethedefenseofsuchactionortoretaincounselreasonablysatisfactorytotheAuthorityorTrusteewithinareasonabletimeafternoticeofthecommencementofsuchaction,thereasonablefeesandexpensesofcounselretainedbytheIndemnifiedPersonshallbepaidbytheBorrower.Notwithstandingtheforegoing,anyoneormoreoftheIndemnifiedPersonsshallhavetherighttoemployseparatecounselwithrespecttoanysuchclaimorinanysuchactionandtoparticipateinthedefensethereof,butthefeesandexpensesofsuchcounselshallbepaidbysuchIndemnifiedPersonunlesstheemploymentofsuchcounselhasbeenspecificallyauthorizedbytheBorrowerorunlesstheprovisionsoftheimmediatelyprecedingsentenceareapplicable.TheBorrowershallnotbeliableforanysettlementofanysuchactionaffectedwithouttheconsentoftheBorrower,butifsettledwiththeconsentoftheBorroweroriftherebeafinaljudgmentfortheplaintiffinanysuchactionwithorwithoutconsent,theBorroweragreestoindemnifyandholdharmlesstheIndemnifiedPersonfromandagainstanyloss,liabilityorexpensebyreasonofsuchsettlementorjudgment.AnysettlementwhichaffectstheTrusteemaynotbeenteredintowithoutthewrittenconsentoftheTrustee,unlesstheTrusteeisgivenafullandunconditionalreleasefromliabilitywithrespecttotheclaimscoveredtherebyandsuchsettlementdoesnotincludeastatementoradmissionoffault,culpabilityorfailuretoactbyoronbehalfoftheTrustee.

(c)TheBorrowershallalsoindemnifytheAuthority,TrusteeandsuchIndemnifiedPersonsforallreasonablecostsandexpenses,includingreasonablecounselfees,incurredin:(i)enforcinganyobligationoftheBorrowerunderthisAgreement,anyLetterofCreditoranyotherrelatedagreement,(ii)takinganyactionrequestedbytheBorrowerwithrespecttotheAuthorityortheTrustee,(iii)takinganyactionrequiredbythisAgreement,theIndenture,anyLetterofCreditoranyotherrelatedagreement,or(iv)takinganyactionconsiderednecessarybytheAuthorityandwhichisauthorizedbythisAgreement,theIndenture,anyLetterofCreditoranyotherrelatedagreement.IftheAuthorityistotakeanyactionunderthisAgreementorany

otherinstrumentexecutedinconnectionherewithforthebenefitoftheBorrower,itwilldosoifandonlyif(i)theAuthorityisanecessarypartytoanysuchactionorproceeding,and(ii)theAuthorityhasreceivedspecificwrittendirectionfromtheBorrower,asrequiredhereunderorunderanyotherinstrumentexecutedinconnectionherewith,astotheactiontobetakenbytheAuthority.

(d)AllamountspayabletotheAuthorityunderthisSection8.4shallbedeemedtobefeesandexpensespayabletotheAuthorityforthepurposesoftheprovisionshereofandoftheIndenturedealingwithassignmentoftheAuthority’srightshereunder.TheAuthorityanditsmembers,officers,agents,employeesandtheirsuccessorsandassignsshallnotbeliabletotheBorrowerforanyreason.

(e)AnyprovisionofthisAgreementoranyotherinstrumentordocumentexecutedanddeliveredinconnectiontherewithtothecontrarynotwithstanding,theAuthorityretainstherightto(i)enforceanyapplicablefederalorStatelaworregulationorresolutionoftheAuthority,and(ii)enforceanyrightsaccordedtotheAuthoritybyfederalorStatelaworpolicyorprocedureoftheAuthority,andnothinginthisLoanAgreementshallbeconstruedasanexpressorimpliedwaiverthereof.

(f)TherightsofanypersonstoindemnityhereunderandrightstopaymentoffeesandreimbursementofexpensespursuanttoSection4.2(d),Section8.2andthisSection8.4shallsurvivethefinalpaymentordefeasanceoftheBondsandinthecaseoftheTrusteeanyresignationorremoval.TheprovisionsofthisSectionshallsurvivetheterminationofthisAgreement.

(g)WithoutprejudicetoanyotherrightsavailabletotheTrusteeunderapplicablelaw,whentheTrusteeincursexpensesorrendersservicesafteranEventofDefaultspecifiedinSection5.01occurs,theexpensesandcompensationforsuchservicesareintendedtoconstituteexpenses(includingthereasonablechargesandexpensesofitscounsel)andthecompensationfortheservicesconstituteadministrationunderTitle11,U.S.Code,oranysimilarFederal,Stateoranalogousforeignlawforthereliefofdebtors.

ARTICLE IX

MISCELLANEOUS

Section9.1.Notices.Unlessotherwisespecificallyprovidedherein,anynotice,request,complaint,demand,communicationorotherpapershallbesufficientlygivenandshallbedeemedgivenwhenthesameis:(i)depositedintheUnitedStatesmailandsentbyfirstclassmail,postageprepaid,or(ii)sentbyfacsimile(receiptconfirmed),or(iii)delivered,ineachcasetotheparties

attheaddressesorfacsimilenumberssetforthbeloworatsuchotheraddressorfacsimilenumberasapartymaydesignatebynoticetotheotherparties:TotheAuthority: IllinoisFinanceAuthority

P.O.Box641249Chicago,Illinois60664Attention:ExecutiveDirectorTelephone:(312)651-1300Facsimile:(312)651-1350

withcopiesto: IllinoisFinanceAuthorityP.O.Box641249Chicago,Illinois60664Attention:GeneralCounselTelephone:(312)651-1300Facsimile:(312)651-1350

TotheBorrower: NavistarInternationalCorporation2701NavistarDriveLisle,Illinois60532Attention:President,FinancialServicesandTreasurerTelephone:(331)332-4028

TotheTrustee: CitibankAgency&Trust338GreenwichStreetNewYork,NewYork10013Attention:PaoloIppolitoTelephone:(215)816-8831

AnynoticegiventotheBorrowerasprovidedaboveshallbedeemedtohavebeengiventoanyaffiliateoftheBorroweraffectedbysuchnotice.

TheAuthority,theBorrowerandtheTrusteemay,bynoticegivenhereunder,designateanydifferentaddressestowhichsubsequentnotices,certificatesorothercommunicationsshallbesent.

Section9.2.Severability.IfanyprovisionofthisAgreementshallbeheldordeemedtobe,orshallinfactbe,illegal,inoperativeorunenforceable,thesameshallnotaffectanyotherprovisionorprovisionshereincontainedorrenderthesameinvalid,inoperative,orunenforceabletoanyextentwhatever.

Section9.3.ExecutionofCounterparts.ThisAgreementmaybesimultaneouslyexecutedinseveralcounterparts,eachofwhichshallbeanoriginalandallofwhichshallconstitutebutoneandthesameinstrument.

Section9.4.SupplementsandAmendmentstoLoanAgreement;AmendmentofLetterofCredit.Subjecttotheterms,conditionsandprovisionsofSection6.07(b)andArticleIXoftheIndenture,theBorrowerandtheAuthoritymayfromtimetotimeenterintosupplementsandamendmentstothisAgreement.Anexecutedcopyofanyoftheforegoingamendments,changesormodificationshallbefiledwiththeTrustee.

Section9.5.GoverningLaw.ThisAgreementshallbegovernedbyandconstruedinaccordancewiththeinternallawsoftheStateapplicabletocontractstobewhollyperformedtherein.

Section9.6.AuthorizedRepresentative.WheneverundertheprovisionsofthisAgreementtheapprovaloftheBorrowerisrequiredortheBorrowerisrequiredtotakesomeactionattherequestoftheAuthority,suchapprovalorsuchrequestshallbegivenonbehalfoftheBorrowerbyanAuthorizedRepresentative.TheAuthorityandtheTrusteeshallbeauthorizedtoactonanysuchapprovalorrequestandneitherpartyheretoshallhaveanycomplaintagainsttheotheroragainsttheTrusteeasaresultofanysuchactiontaken.

Section9.7.TermoftheAgreement.ThisAgreementshallbeinfullforceandeffectfromthedatehereof,andshallcontinueineffectuntilthepaymentinfullofallprincipalof,premium,ifany,andinterestontheBonds,orprovisionforthepaymentthereofshallhavebeenmadepursuanttoArticleXoftheIndenture;allfees,charges,indemnitiesandexpensesoftheAuthority,theTrustee,thePayingAgent,theTenderAgent,theCalculationAgent,theBondRegistrarandtheRemarketingAgenthavebeenfullypaidorprovisionmadeforsuchpayment(thepaymentofwhichfees,charges,indemnitiesandexpensesshallbeevidencedbyawrittencertificationoftheBorrowerthatithasfullypaidorprovidedforallsuchfees,charges,indemnitiesandexpenses);andallotheramountsduehereunderandundertheNotehavebeendulypaidorprovisionmadeforsuchpayment.Allrepresentations,certificationsandcovenantsbytheBorrowerastotheindemnificationofvariouspartiesandthepaymentoffeesandexpensesoftheAuthorityasdescribedinSections4.2(d),6.3,8.2and8.3hereof,andallmattersaffectingtheTax-exemptstatusoftheBondsshallsurvivetheterminationofthisAgreement.

Section9.8.BindingEffect.ThisAgreementshallinuretothebenefitofandshallbebindingupontheAuthority,theBorrowerandtheirrespectivesuccessorsandassigns,subject,however,tothelimitationscontainedinSection5.2hereof.

Section9.9.SurvivalofFeeObligation;NoPrevailingParty.TherightoftheAuthority,theTrusteeineachofitscapacities,andtheBanktoreceiveanyfeesortobereimbursedforanyexpensesincurredpursuanttothisAgreementand/ortherighttobeindemnified,andtherightoftheAuthorityandtheTrusteetobeprotectedfromanyliabilityasprovidedinthisAgreement,shallsurvivetheretirementoftheBondsandtheterminationofthisAgreement.NothinginthisSection9.9affectstherightsoftheTrusteeinanyofitscapacitiesasprovidedherein.

TheprovisionsofthisAgreementandtheIndentureandanyotherdocumentinconnectionwiththeissuanceoftheBondstowhichtheAuthorityisapartyconcerning(i)theTax-exemptstatusoftheBonds(including,butnotlimitedto,provisionsconcerningrebate);(ii)theinterpretationofthisAgreement;(iii)governinglaw,jurisdictionandvenue;(iv)theAuthority’srighttorelyonwrittenrepresentationsofotherscontainedhereinorinanyotherdocumentorinstrumentissuedorenteredintoinrespectoftheBonds,regardlessofwhethertheAuthorityisapartythereto;(v)theindemnificationrightsandexculpationfromliabilityoftheAuthorityandthe

AuthorityIndemnifiedPersons;and(vi)anyotherprovisionofthisAgreementnotdescribedorenumeratedabovethatexpresslyprovidesforitssurvival,shallsurviveandremaininfullforceandeffectnotwithstandingthepaymentorredemptioninfull,ordefeasanceoftheBonds,thedischargeoftheIndenture,andtheterminationorexpirationofthisAgreement.

Section9.10.PurchaseofBonds.TheBorroweragreesthatitshallnotuseitsownfundstopurchaseBondsfromanyPersonandthatitshallcauseanyGuarantor,affiliateandanyshareholder,memberorotherowneroftheBorrowernottouseitsownfundstopurchaseBondsfromanyPerson;provided, however,thattheforegoingshallnotapplytoapurchaseofBondsfromtheRemarketingAgentiftheRemarketingAgenthasuseditsownfundstopurchasetheBonds.

Section9.11.IndentureProvisions.TheIndentureprovisionsconcerningtheBondsandothermattersthereinareanintegralpartofthetermsandconditionsoftheloanmadebytheAuthoritytotheBorrowerpursuanttothisAgreement,andtheexecutionofthisAgreementshallconstituteconclusiveevidenceofapprovaloftheIndenturebytheBorrowertotheextentitrelatestotheBorrower.Additionally,theBorroweragreesthatwhenevertheIndenture,byitsterms,imposesadutyorobligationupontheBorrower,suchdutyorobligationshallbebindingupontheBorrowertothesameextentasiftheBorrowerwereanexpresspartytotheIndenture,andtheBorrowerherebyagreestocarryoutandperformallofitsobligationsundertheIndentureasfullyasiftheBorrowerwereapartytotheIndenture.

Section9.12.CompleteAgreement.ThepartiesagreethatthetermsandconditionsofthisAgreementsupersedethoseofallpreviousagreementsbetweenthepartiesrelativetotheBonds,andthatthisAgreement,togetherwiththedocumentsreferredtointhisAgreement,containstheentireagreementrelativetotheBondsbetweenthepartieshereto.

Section9.13.Third-PartyBeneficiaries.Notwithstandinganythinghereintothecontrary,itisspecificallyacknowledgedandagreedthat,totheextentoftheirrightshereunder(including,withoutlimitation,theirrightstoimmunity,indemnificationexculpationfrompecuniaryliability)eachAuthorityIndemnifiedPerson,including,withoutlimitation,theTrustee,isathird-partybeneficiaryofthisAgreemententitledtoenforcesuchrightsinhis,her,itsortheirownname.

[REMAINDEROFPAGEINTENTIONALLYLEFTBLANK;SIGNATUREPAGEFOLLOWS]

INWITNESSWHEREOF,theAuthorityhascausedthisAgreementtobeexecutedinitsname,andtheBorrowerhascausedthisAgreementtobeexecutedinitsname,eachbyitsdulyauthorizedofficer,allasofthedatefirstabovewritten.

By: /s/ Jacob StuckeyName: JacobStuckeyTitle: DeputyExecutiveDirector

By: /s/ William V. McMenaminName: WilliamV.McMenaminTitle: President,FinancialServicesandTreasurer

[SIGNATUREPAGETOLOANAGREEMENT]

EXHIBIT A

DESCRIPTION OF THE PROJECT

TheIFA-FinancedProjectconsistedof(i)theacquisition,construction,equippingandinstallationofcertainqualifiedcapitalimprovementsto,andtheconstructionofvariousbuildingadditionsat,ninebuildingsownedbytheBorrowerortheGuarantor,locatedat2601-2701 LucentLane(nowknownasNavistarDrive),Lisle,Illinois60532-1511;and(ii)theimprovement,expansionandequippingofanexistingwarehousefacilityleasedbytheBorrowerortheGuarantorlocatedat2700Haven,Joliet,Illinois60435,allasmorefullydescribedintheProjectCertificate.

TheCounty-FinancedProjectconsistedoftherenovation,expansionandequippingoftheexistingofficeandmanufacturingplantoftheBorrowerortheGuarantorlocatedat10400WestNorthAvenue,MelrosePark,Illinois60160-1028,fortheuseofspaceandfacilitiesatsuchlocationforresearch,developmentandprojecttesting,allasmorefullydescribedintheProjectCertificate.

EXHIBIT B

PROMISSORY NOTE$225,000,000 August4,2020

NAVISTARINTERNATIONALCORPORATION,aDelawarecorporation(the“Borrower”),forvaluereceived,herebypromisestopaytotheIllinoisFinanceAuthority(the“Authority”),orassigns,onOctober15,2040,theprincipalsumof$225,000,000,subjecttopriorpayment,withinterestontheunpaidprincipalsum,fromthedatehereof,untilsaidprincipalsumshallbepaidoruntilthematurityoftheBonds(ashereinafterdefined)shallbeacceleratedpursuanttotheIndenture(ashereinafterdefined),andtotheextentpermittedbylaw,interestonoverdueinstallmentsofsuchinterest,atthetheninterestrateprovidedintheBonds,ashereinafterdefined.InterestshallbepayableattheinterestratespayableontheBonds,andtheprincipalof,premium,ifany,andinterestonthisNoteshallbepayableatthetimesassetforthinmoredetailintheAgreement(ashereinafterdefined)andtheIndenture.

PaymentsshallbemadeinlawfulmoneyoftheUnitedStatesofAmericainimmediatelyavailablefundsonthedatepaymentisdue,atthedesignatedcorporatetrustofficeofCitibank,N.A.,astrustee(the“Trustee”),inNewYork,NewYork,oratsuchotherplaceastheTrusteemaydirectinwriting.

TheAuthority,bytheexecutionoftheIndenture,ashereinafterdefined,andtheassignmentformatthefootofthisNote,isassigningthisNoteandthepaymentsthereontotheTrusteeactingpursuanttotheIndenture,datedasofJuly1,2020(the“Indenture”),betweentheAuthorityandtheTrusteeassecurityfortheAuthority’s$225,000,000inaggregateprincipalamountofRecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020(the“Bonds”),issuedpursuanttotheIndenture.PaymentsofprincipalofandinterestonthisNoteshallbemadedirectlytotheTrusteefortheaccountoftheAuthoritypursuanttosuchassignmentandappliedonlytotheprincipalofandinterestontheBonds.AllobligationsoftheBorrowerhereundershallterminatewhenallsumsdueandtobecomeduepursuanttotheIndenture,thisNote,theAgreementandtheBondshavebeenpaid.

Inadditiontothepaymentsofprincipalandinterestspecifiedinthefirstparagraphhereof,theBorrowershallalsobeobligatedtopaysuchadditionalamounts,ifany,which,togetherwithothermoneysavailablethereforpursuanttotheIndenture,maybenecessarytoprovideforpaymentwhendue(whetheratmaturity,byaccelerationorcallforredemption,mandatorypurchase,purchaseuponoptionaltenders,sinkingfundredemptionorotherwise)ofprincipalandpurchasepriceof,premium,ifany,andinterestontheBonds.

TheBorrowershallhavetheoptionormayberequiredtoprepaythisNoteinwholeorinpartuponthetermsandconditionsandinthemannerspecifiedintheLoanAgreementdatedasofJuly1,2020(the“Agreement”),betweentheAuthorityandtheBorrower.

ThisNoteisissuedpursuanttotheAgreementasevidenceoftheBorrower’spaymentobligationinSections4.2(a)and4.2(b)thereofandisentitledtothebenefitsandsubjecttotheconditionsthereof,includingtheprovisionsofSection4.4thereofthattheBorrower’sobligationsthereunderandhereundershallbeunconditional.Alltheterms,conditionsandprovisionsoftheAgreementandtheapplicableprovisionsoftheBondsandtheIndentureare,bythisreferencethereto,incorporatedhereinasapartofthisNote.

IncaseaLoanDefaultEvent,asdefinedintheAgreement,shalloccur,theprincipalofandinterestonthisNotemaybedeclaredimmediatelydueandpayableasprovidedintheAgreement.ThisNoteshallbegovernedby,andconstruedinaccordancewith,thelawsoftheStateofIllinois.

INWITNESSWHEREOF,theBorrowerhascausedthisNotetobeexecutedinitscorporatenamebyitsdulyauthorizedofficer,allasofthedatefirstabovewritten.

By: Name: Title:

ASSIGNMENT

TheIllinoisFinanceAuthority(the“Authority”),herebyirrevocablyassigns,withoutrecourse,theforegoingPromissoryNote(the“Note”)toCitibank,N.A.,astrustee(the“Trustee”)underanIndenturedatedasofJuly1,2020(the“Indenture”),betweentheAuthorityandtheTrustee,andherebydirectsNavistarInternationalCorporationasthemakeroftheNotetomakeallpaymentsofprincipalofandinterestthereondirectlytotheTrusteeatitsprincipalcorporatetrustofficeinNewYork,NewYork,oratsuchotherplaceastheTrusteemaydirectinwriting.SuchassignmentismadeassecurityforthepaymentoftheAuthority’s$225,000,000inaggregateprincipalamountofRecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020,issuedpursuanttotheIndenture.

By: Name: Title:

INDENTURE

between

CITIBANK,N.A.,asTrustee

DatedasofJuly1,2020

RELATINGTO

$225,000,000ILLINOISFINANCEAUTHORITY

RECOVERYZONEFACILITYREFUNDINGREVENUEBONDS(NAVISTARINTERNATIONALCORPORATIONPROJECT)

SERIES2020

TABLEOFCONTENTS PageARTICLEIDEFINITIONS;CONTENTOFCERTIFICATESANDOPINIONS 3

Section1.01. Definitions 3Section1.02. ContentofCertificatesandOpinions 30Section1.03. Interpretation 31

ARTICLEIITHEBONDS 31

Section2.01. AuthorizationofBonds 31Section2.02. FormoftheBonds 32Section2.03. InterestRates 32Section2.04. DemandPurchaseofBonds 40Section2.05. ExecutionofBonds 41Section2.06. TransferofBonds 41Section2.07. ExchangeofBonds 42Section2.08. BondRegistrar 42Section2.09. TemporaryBonds 42Section2.10. BondsMutilated,Lost,DestroyedorStolen 42Section2.11. Book-EntryOnlySystem 43

ARTICLEIIIISSUANCEOFBONDS;APPLICATIONOFPROCEEDS 46

Section3.01. IssuanceoftheBonds 46Section3.02. ApplicationofProceedsofBonds 46Section3.03. [Reserved] 46Section3.04. [CostsofIssuanceFund 46Section3.05. [Reserved] 46Section3.06. ValidityofBonds 46

ARTICLEIVREDEMPTIONANDPURCHASEOFBONDS 47

Section4.01. TermsofRedemptionofBonds 47Section4.02. SelectionofBondsforRedemption;PurchaseInLieuofRedemption 49Section4.03. NoticeofRedemption 50Section4.04. PartialRedemptionofBonds 51Section4.05. EffectofRedemption 51Section4.06. MandatoryTenderforPurchaseofBonds 51Section4.07. PurchaseandRemarketingofBonds 52Section4.08. PurchaseuponChangeofControl 57

ARTICLEVREVENUES;FUNDSANDACCOUNTS;PAYMENTOFPRINCIPALANDINTEREST 58

Section5.01. PledgeandAssignment;RevenueFund 58Section5.02. AllocationofRevenues 59Section5.03. PriorityofMoneysinRevenueFund;LetterofCredit 59Section5.04. LetterofCredit 61Section5.05. InvestmentofMoneys 62Section5.06. AdditionalPaymentsandPaymentsfromGuarantor 64

ARTICLEVIPARTICULARCOVENANTS 64

Section6.01. PunctualPaymentofBonds;LimitedObligationofAuthority;FeesofAuthority 64Section6.02. ExtensionofPaymentofBonds 65Section6.03. AgainstEncumbrances 65Section6.04. PerformanceofCovenants;Authority 65Section6.05. AccountingRecordsandReports 66Section6.06. ArbitrageCovenants 66Section6.07. OtherCovenants 67Section6.08. WaiverofLaws 68Section6.09. FurtherAssurances 68Section6.10. ContinuingDisclosure 68Section6.11. RequiredReportingtotheAuthority 68Section6.12. RecordationandOtherInstruments 69

ARTICLEVIIEVENTSOFDEFAULTANDREMEDIESOFBONDHOLDERS 69

Section7.01. EventsofDefault;Acceleration;WaiverofDefault 69Section7.02. InstitutionofLegalProceedingsbyTrustee 71Section7.03. ApplicationofRevenuesandOtherFundsAfterDefault 71Section7.04. TrusteetoRepresentBondholders 73Section7.05. Bondholders’DirectionofProceedings 73Section7.06. LimitationonBondholders’RighttoSue 74Section7.07. AbsoluteObligationofAuthority 74Section7.08. TerminationofProceedings 74Section7.09. RemediesNotExclusive 74Section7.10. NoWaiverofDefault 75Section7.11. Non-ImpairmentofAuthority 75Section7.12. ConsenttoDefaults 75

ARTICLEVIIITHETRUSTEE,THEPAYINGAGENT,THEBONDREGISTRAR,THETENDERAGENT,THEREMARKETINGAGENTANDTHECALCULATIONAGENT

Section8.01. Duties,ImmunitiesandLiabilitiesofTrustee 75Section8.02. MergerorConsolidation 80Section8.03. LiabilityofTrustee 80Section8.04. RightofTrusteetoRelyonDocuments 83Section8.05. PreservationandInspectionofDocuments 84Section8.06. CompensationandIndemnification 84Section8.07. PayingAgent 84

Section8.08. TrusteeandAuthorityRequiredtoAcceptDirectionsandActionsofBorrower 85Section8.09. CalculationAgent 85Section8.10. NoticestoRatingAgencyandtheBank 86Section8.11. DutiesofRemarketingAgent 86Section8.12. EligibilityofRemarketingAgent;Replacement 87Section8.13. CompensationofRemarketingAgent 88Section8.14. AppointmentandDutiesofTenderAgent 88Section8.15. EligibilityofTenderAgent;Replacement 88Section8.16. CompensationofTenderAgent 89Section8.17. AppointmentandDutiesofBondRegistrar 89Section8.18. EligibilityofBondRegistrar;Replacement 89Section8.19. BondRegistrar’sPerformanceofDuties 90

ARTICLEIXMODIFICATIONORAMENDMENTOFTHEINDENTUREANDTHEAGREEMENT 91

Section9.01. AmendmentsPermitted 91Section9.02. EffectofSupplementalIndenture 92Section9.03. EndorsementofBonds;PreparationofNewBonds 93Section9.04. AmendmentofParticularBonds 93Section9.05. AmendmentsofAgreementNotRequiringConsentofBondholders;Waivers 93

ARTICLEXDEFEASANCE 94

Section10.01. DischargeofIndenture 94Section10.02. DischargeofLiabilityonBonds 95Section10.03. DepositofMoneyorSecuritieswithTrustee 95Section10.04. PaymentofBondsAfterDischargeofIndentureObligation 96

ARTICLEXIMISCELLANEOUS 96

Section11.01. LiabilityofAuthorityLimitedtoTrustEstate 96Section11.02. SuccessorIsDeemedIncludedinAllReferencestoPredecessor 97Section11.03. LimitationofRightstoPartiesandBondholders 97Section11.04. WaiverofNotice 97Section11.05. DestructionofBonds 97Section11.06. SeverabilityofInvalidProvisions 97Section11.07. GoverningLaw 98Section11.08. Notices 98Section11.09. EvidenceofRightsofBondholders 99Section11.10. DisqualifiedBonds 100Section11.11. MoneyHeldforParticularBonds 100Section11.12. FundsandAccounts 101Section11.13. BusinessDay 101Section11.14. ImmunityofOfficers,EmployeesandMembersoftheAuthority 101

Section11.15. CompleteAgreement 101Section11.16. ExecutioninSeveralCounterparts 101Section11.17. EffectofBankDefault 101

EXHIBITA FORMOFBOND EXHIBITB FORMOFREQUISITIONFROMTHECOSTSOFISSUANCEFUND

THISINDENTURE,madeandenteredintoasofJuly1,2020,byandbetweentheILLINOISFINANCEAUTHORITY(the“Authority”),abodypoliticandcorporateoftheStateofIllinois(the“State”),andCITIBANK,N.A.,anationalbankingassociationdulyestablished,existingandauthorizedtoacceptandexecutetrustsofthecharacterhereinsetoutunderandbyvirtueofthelawsoftheUnitedStatesofAmerica(the“Trustee”);

W I T N E S S E T H :

WHEREAS,theAuthorityisabodypoliticandcorporateoftheStatecreatedundertheIllinoisFinanceAuthorityAct,20ILCS3501/801-1et seq.,asitmaybesupplementedoramended(the“Act”);and

WHEREAS,theAuthorityisauthorizedandempoweredbytheActtoissueitsrevenuebondstofinanceorrefinancethecostsof“industrialprojects”(asdefinedundertheAct);and

WHEREAS,theAuthoritypreviouslywasauthorizedundertheActtoreceiverecoveryzonebondallocationswaivedtotheStatefromcountiesandmunicipalitieswithintheStateinordertoissuerecoveryzonefacilitybondsforqualifyingprojectswithintheStateandtodesignatealloraportionoftheStateasa“recoveryzone”forpurposesofSection1400U-1oftheInternalRevenueCodeof1986,asamended(the“Code”);and

WHEREAS,pursuanttoandinaccordancewiththeprovisionsoftheActandIFAResolutionNo.2010-0914-BI03adoptedbythemembersoftheAuthorityonSeptember14,2010,theAuthorityissued$135,000,000inaggregateprincipalamountofitsRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010(the“IFA2010Bonds”)andloanedtheproceedsfromthesaleoftheIFA2010BondstoNavistarInternationalCorporation,aDelawarecorporation(the“Borrower”);and

WHEREAS,theBoardofCommissioners(the“Board”)oftheCountyofCook,Illinois(the“County”),pursuanttoandinaccordancewiththeprovisionsofOrdinanceNo.09-O-43,adoptedonJuly2,2009,whichdesignatedtheCountyasa“recoveryzone”forpurposesofSection1400U-1oftheCode,andOrdinanceNo.10-O-64onOctober5,2010,issued$90,000,000inaggregateprincipalamountofitsRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010(the“County2010Bonds”)andloanedtheproceedsfromthesaleoftheCounty2010BondstotheBorrower;and

WHEREAS,theBorrowerusedtheproceedsoftheIFA2010BondsandtheCounty2010Bondstopayalloraportionofthecostsoftheacquisition,construction,improving,installation,and/orequippingofcertainrecoveryzonefacilityprojects(collectively,the“Project”),asmoreparticularlydescribedinExhibitAtotheLoanAgreementofevendateherewith(the“LoanAgreement”or“Agreement”)betweentheAuthorityandtheBorrower;and

WHEREAS,theBorrowerhasrequestedtheassistanceoftheAuthorityinrefinancingtheProjectand,infurtheranceofthepurposessetforthintheAct,theAuthorityproposestoissueitsIllinoisFinanceAuthorityRecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020intheaggregateprincipalamountof$225,000,000(the“Bonds”)toprovidefundstoloantotheBorrowertoprovideaportionofthefundsnecessarytorefundtheIFA2010BondsandtheCounty2010Bonds;and

WHEREAS,theBorrowerisrequiredundertheLoanAgreementtomakeloanpaymentssufficienttopaywhenduetheprincipalof,premium,ifany,andinterestontheBonds;and

WHEREAS,theBorrowerhasdeliveredtotheAuthorityitsPromissoryNote,intheformofExhibitBtotheLoanAgreement,datedtheDateofDelivery(the“Note”),asevidenceofitsobligationundertheLoanAgreement;and

WHEREAS,asfurthersecurityfortheBonds,Navistar,Inc.,aDelawarecorporation(the“Guarantor”),hasenteredintoaBondGuaranteedatedasofJuly1,2020infavoroftheTrustee,inwhichtheGuarantorwillguaranteecertainpaymentobligationsoftheBorrowerundertheLoanAgreementandtheNote;and

WHEREAS,theBonds,theprovisionsforregistrationtobeendorsedthereon,andthecertificateofauthenticationtobeexecutedthereonshallbeinsubstantiallytheformsetforthinExhibitAhereto,withnecessaryorappropriatevariations,omissionsandinsertions,aspermittedorrequiredbythisIndenture;and

WHEREAS,inordertoprovidefortheauthenticationanddeliveryoftheBonds,toestablishanddeclarethetermsandconditionsuponwhichtheBondsaretobeissuedandsecuredandtosecurethepaymentoftheprincipalthereofandthepremium,ifany,andinterestthereon,theAuthorityhasauthorizedtheexecutionanddeliveryofthisIndenture;and

WHEREAS,theAuthorityhasdeterminedthatallactsandproceedingsrequiredbylawnecessarytomaketheBonds,whenexecutedbytheAuthority,authenticatedanddeliveredbytheTrusteeanddulyissued,thevalid,bindingandlegalspecial,limitedobligationsoftheAuthority,andtoconstitutethisIndentureavalidandbindingagreementfortheusesandpurposeshereinsetforthinaccordancewithitsterms,havebeendoneandtaken,andtheexecutionanddeliveryofthisIndenturehavebeeninallrespectsdulyauthorized;and

WHEREAS,theBondsissuedunderthisIndenturewillbesecuredbyapledgeandassignmentofcertainrightsundertheAgreement;

NOW,THEREFORE,THISINDENTUREWITNESSETH,thatinordertosecurethepaymentoftheprincipalof,premium,ifany,andtheintereston,allBondsatanytimeissuedandoutstandingunderthisIndenture,accordingtotheirtenor,toprovideforthepaymentofthePurchasePrice(asdefinedherein)oftenderedBonds,tosecuretheperformanceandobservanceofallthecovenantsandconditionsthereinandhereinsetforthandtodeclarethetermsandconditionsuponandsubjecttowhichtheBondsaretobeissuedandreceived,andinconsiderationofthepremisesandofthemutualcovenantshereincontainedandofthepurchaseandacceptanceoftheBondsbytheHolders(asdefinedherein)thereof,andforothervaluableconsideration,thereceiptwhereofisherebyacknowledged,theAuthoritydoesherebygrant,convey,transfer,assignandpledgeuntotheTrusteeallright,titleandinterestoftheAuthorityin,toandunderthe

Agreement(exceptasprovidedinSection5.01(B)hereof),anddoesherebycovenantandagreewiththeTrustee,fortheequalandproportionatebenefitoftherespectiveHoldersfromtimetotimeoftheBonds,asfollows:

ARTICLE I

DEFINITIONS; CONTENT OF CERTIFICATES AND OPINIONS

Section1.01.Definitions.Unlessthecontextotherwiserequires,thetermsdefinedinthisArticleshall,forallpurposesofthisIndentureandofanyindenturesupplementalheretoandofanycertificate,opinionorotherdocumenthereinmentioned,havethemeaningshereinspecified,tobeequallyapplicabletoboththesingularandpluralformsofanyofthetermshereindefined.

“Accountant”meansanyfirmofnationally-recognizedindependentcertifiedpublicaccountantsselectedbytheBorrower.

“ABL Credit Agreement”meansthatcertainSecondAmendedandRestatedABLCreditAgreement,datedasofAugust4,2017,byandamongNavistar,Inc.,asborrower,BankofAmerica,N.A.,asadministrativeagent,andtheotherlendersandagentsnamedtherein,togetherwiththerelateddocumentsthereto(includingtherevolvingloansthereunder,anylettersofcreditandreimbursementobligationsrelatedthereto,anyguaranteesandsecuritydocuments),asamended,extended,renewed,restated,refunded,replaced,refinanced,supplemented,modifiedorotherwisechanged(inwholeorinpart,andwithoutlimitationastoamount,terms,conditions,covenantsandotherprovisions)fromtimetotime,andanyoneormoreagreements(andrelateddocuments)governingIndebtedness,includingindentures,incurredtorefinance,substitute,supplement,replaceoraddto(includingincreasingtheamountavailableforborrowingoraddingorremovinganyPersonasaborrower,issuerorguarantorthereunder,inwholeorinpart),theborrowingsandcommitmentsthenoutstandingorpermittedtobeoutstandingundersuchABLCreditAgreementoroneormoresuccessorstotheABLCreditAgreementoroneormorenewcreditagreements.

“Act”hasthemeaningassignedtheretointherecitals.

“Act of Bankruptcy”meanswithrespecttoanyentity(i)theentryofanorderordecree,byacourthavingjurisdictioninthepremises,forreliefagainstsuchentityinaninvoluntarycaseunderanyapplicablebankruptcy,insolvencyorothersimilarlawnoworhereafterineffectwhichremainsnotdischarged,bondedorstayedforatleast90days,orappointingareceiver,liquidator,assignee,custodian,trustee,sequestrator(orothersimilarofficial)forasubstantialpartofsuchentity’spropertywhichremainsnotdischarged,bondedorstayedforatleast90days,ororderingthewindinguporliquidationofitsaffairs;or(ii)theinstitutionorcommencementbysuchentityofavoluntarycaseunderanyapplicablebankruptcy,insolvencyorothersimilarlawnoworhereafterineffect;or(iii)theconsentbyittotheentryofanorderforreliefagainstitinanyinvoluntarycaseunderanysuchlaw,ortotheappointmentofareceiver,liquidator,assignee,custodian,trustee,sequestrator(orothersimilarofficial)forasubstantialpartofsuchentity’sproperty;or(iv)themakingbyitofageneralassignmentofsubstantiallyallofitsassetsforthebenefitofcreditors;or(v)thefailureofitgenerallytopayitsdebtsastheybecomedue,ortheadmissionbyitinwritingofsuchfailure,withinthemeaningoftheBankruptcyCodeof1978,asamended,andjudicialinterpretationsthereof.

“Additional Payments”meansthepaymentsrequiredtobemadebytheBorrowerpursuanttoSections4.2(b),(c),and(d)oftheAgreement(includinganyinterestrequiredtobepaidbytheBorroweronsuchpayments)andSections6.2(c),6.3,8.2and8.4oftheAgreement.

“Administrative Fees and Expenses”meanstheexpensesincurredbytheAuthoritypursuanttotheAgreementorthisIndentureandthecompensationandexpensespaidtoorincurredbytheTrustee,theTenderAgent,ifany,theBondRegistrar,theCalculationAgent,ifany,theRemarketingAgent,ifany,and/oranyPayingAgentundertheAgreementorthisIndenture,whichincludebutarenotlimitedtoprintingofBonds,accomplishingtransfersornewregistrationofBonds,orotherchargesandotherdisbursementsincludingthoseoftheirrespectiveofficers,directors,members,attorneys,agentsandemployeesincurredinandabouttheadministrationandexecutionoftheAgreementandthisIndenture.

“Affiliate”means,whenusedwithreferencetoanyPerson,anyotherPersondirectlyorindirectlycontrolling,controlledby,orunderdirectorindirectcommoncontrolwith,thereferentPerson,asthecasemaybe.Forthepurposesofthisdefinition,“control”whenusedwithrespecttoanyspecifiedPersonmeansthepowertodirectorcausethedirectionofmanagementorpoliciesofthereferentPerson,directlyorindirectly,whetherthroughtheownershipofvotingsecurities,bycontractorotherwise;andtheterms“controlling”and“controlled”havemeaningscorrelativeoftheforegoing.

“Agreement”or“Loan Agreement”meansthatcertainLoanAgreementbyandbetweentheAuthorityandtheBorrower,datedasofJuly1,2020,asoriginallyexecutedandasitmayfromtimetotimebesupplemented,modifiedoramendedinaccordancewiththetermsthereofandofthisIndenture.

“Alternate Credit Facility”meansbondinsuranceorothersimilarcreditenhancementmeetingtherequirementsofSection5.7oftheAgreement.

“Alternate Letter of Credit”meansanalternateirrevocableletterofcredit,including,ifapplicable,aconfirmingletterofcredit,orsimilarcreditfacilityissuedbyacommercialbank,savingsinstitutionorotherfinancialinstitution,thetermsofwhichshallinallmaterialrespectsbethesameasthoseofanypreviousLetterofCredit,deliveredtotheTrusteepursuanttoSection5.7oftheAgreement.

“Applicable Factor”means(i)79.0%whentheIndexisLIBORor(ii)suchotherpercentageorfactordeterminedbytheRemarketingAgentinconnectionwithachangeinInterestRatePeriodfortheBondstoanIndexInterestRatePeriod(whichmayincludeapercentageorfactortobeappliedtoLIBORotherthanthepercentagesetforthinclause(i)),providedthattheBorrowerdeliversanApprovingOpinionaddressingtheselectionofsuchotherpercentageorfactor.

“Applicable Spread”means,withrespecttoachangeinInterestRatePeriodfortheBondstoanIndexInterestRatePeriodoraSIFMAInterestRatePeriodaftertheDateofDelivery(includingachangeinInterestRatePeriodfromoneIndexInterestRatePeriodtoanotherIndexInterestRatePeriodoroneSIFMAInterestRatePeriodtoanotherSIFMAInterestRatePeriod),themarginorspread,whichmaybepositiveornegative,determinedbytheRemarketingAgent

onorpriortotheConversionDate,thatisaddedtotheIndextodeterminetheIndexInterestRateortotheSIFMAIndextodeterminetheSIFMAInterestRate,asapplicable.TheApplicableSpreadshallbesetsoastoenabletheRemarketingAgenttoselltheBondsontheConversionDateataprice(withoutregardtoaccruedinterest)equaltotheprincipalamountthereof.TheApplicableSpreadshallremainconstantforthedurationofsuchInterestRatePeriod.

“Approving Opinion”meansanopinionofBondCounsel(addressedanddeliveredtotheAuthorityandtheTrustee)thatanactionbeingtaken(i)isauthorizedbythisIndentureandcomplieswiththetermsoftheAgreement,ifapplicable,and(ii)willnot,inandofitself,adverselyaffecttheTax-exemptstatusoftheBonds.

“Attributable Indebtedness”inrespectofaSale/LeasebackTransactioninvolvinganoperatingleasemeans,asatthetimeofdetermination,thepresentvalue(discountedattheimpliedinterestrateinsuchtransactioncompoundedannually)ofthetotalobligationsofthelesseeforrentalpaymentsduringtheremainingtermoftheleaseincludedinsuchSale/LeasebackTransaction(includinganyperiodforwhichsuchleasehasbeenextended).

“Authority”meanstheIllinoisFinanceAuthority,itssuccessorsandassigns.

“Authority Documents”meansthisIndenture,theAgreement,theBonds,theTaxCertificateandtheBondPurchaseAgreement,eachamendmentthereof,andanyotherdocumentorinstrumenttowhichtheAuthorityisapartyorbywhichitisboundandthatisexecutedanddeliveredinconnectionwiththeBonds.

“Authority Indemnified Persons”means,collectively,thedesignatedmembersoftheAuthorityandeachandalloftheAuthority’s,respectivepast,presentandfutureofficers,members,directors,officials,employees,attorneysandagents(includingcounselandfinancialadvisers)andeachoftheirrespectiveheirs,successorsandassigns.

“Authority Issuance Fee”meansaone-timeissuancefeeof10basispointsoftheaggregateoriginalprincipalamountoftheBondspayabletotheAuthorityontheDateofDeliveryoftheBonds.

“Authorized Denomination”means$100,000oranyintegralmultipleof$5,000inexcessthereof.

“Authorized Representative”meanswithrespecttotheBorrower,thepersonorpersonsatthetimedesignatedtoactonbehalfoftheBorrowerbyawrittencertificatesignedbytheBorrower,furnishedtotheTrustee,theBank,ifany,andtheAuthoritycontainingthespecimensignatureofeachsuchperson.WithrespecttoanyBank,“AuthorizedRepresentative”shallmeananyindividualorindividualsatthetimedesignatedtoactonbehalfofsuchBankbyawrittencertificatesignedbytheBank,furnishedtotheTrustee,theBorrowerandtheAuthorityandcontainingthespecimensignatureofeachsuchindividual.WithrespecttotheAuthority,initiallytheChairman,ViceChairman,ExecutiveDirector,GeneralCounselorSecretaryoftheAuthority,oranyotherpersondesignatedasanAuthorizedRepresentativebyacertificatesignedbyamemberoftheBoardorsuchExecutiveDirectorandfiledwiththeTrustee,whichcertificatemaydesignateanalternateoralternates,and,whenusedwithreferencetotheperformanceofanyact,thedischargeofanydutyortheexecutionofanycertificateorotherdocument,anyofficer,employeeorotherpersonauthorizedtoperformsuchact,dischargesuchdutyorexecutesuchcertificateorotherdocument.

“Available Moneys”means(1)atanytimewhenthereisnoLetterofCreditineffectwithrespecttotheBonds,anymoneysfromwhateversourcederived(includingmoneysfromtheBorrowerortheGuarantor)and(2)atanytimewhenthereisanirrevocabledirectpayLetterofCreditineffectwithrespecttotheBonds,(A)moneysderivedfromdrawingsunderaLetterofCreditthataredepositedintheLetterofCreditAccountthatarenotcommingledwithanyothermoneys,(B)moneys(otherthanthosedescribedinclause(2)(A))heldbytheTrustee(otherthanintheRebateFundortheaccountdescribedinSection4.07(G)hereof)andsubjecttoafirst-priorityperfectedlienunderthisIndentureforaperiodofatleastninety-one(91)consecutivecalendardaysandnotcommingledwithanymoneyssoheldforlessthansaidperiodandduringandpriortowhichperiodnopetitioninbankruptcywasfiledbyoragainst,andnoreceivership,insolvency,assignmentforthebenefitofcreditorsorothersimilarproceedinghasbeencommencedbyoragainsttheBorrower,theAuthorityortheGuarantor,(C)proceedsfromthesaleoftheBondsreceivedcontemporaneouslywiththeissuanceandsaleorremarketingofsuchBonds,(D)investmentincomederivedfromtheinvestmentofmoneysdescribedinclause(C)solongas(i)investmentsofsuchmoneysareinInvestmentSecuritiesratedbytheRatingAgencyin(a)anyofthetwo-highestlong-termratingcategories;or(b)ifapplicable,thehighestshort-termratingcategory;and(ii)withrespecttosuchinvestmentearningstherehasbeendeliveredtotheTrusteeanopinionofnationallyrecognizedbankruptcycounselselectedorapprovedbytheAuthoritytotheeffectthatthepaymentofsuchmoneystotheholdersoftheBondswouldnotconstitutetransfersavoidableunderSection547(b)oftheBankruptcyCodeandrecoverablefromtheholdersoftheBondsunderSection550(a)oftheBankruptcyCodeshouldtheAuthority,theBorrower,ortheGuarantorbethedebtorinacaseundertheBankruptcyCode,and(E)proceedsofanyrefundingbondsissuedtorefundtheBonds.

“Bank”meansanycommercialbank,savingsassociationorotherfinancialinstitutionissuingaLetterofCredittosupporttheBonds,whichwillbeapartytoaCreditAgreement.

“Bank Bonds”shallhavethemeaningascribedtheretoinSection4.07(C)(2)hereof.

“Beneficial Owners”meansthoseindividuals,partnerships,corporationsorotherentitiesforwhomtheDirectParticipantshavecausedDTCtoholdBook-EntryBonds.

“Bond Counsel”meansuponoriginalissuance,PolsinelliPC,andthereafteranyattorneyatlaworfirmofattorneysofnationallyrecognizedstandinginmatterspertainingtothefederaltaxexemptionofinterestonbondsissuedbystatesandpoliticalsubdivisions,dulyadmittedtopracticelawbeforethehighestcourtofanystateoftheUnitedStatesofAmerica,andacceptabletotheAuthority.

“Bondholder”see“Holder.”

“Bond Payment Date”meansanydateuponwhichanyamountspayablewithrespecttotheBondsshallbecomedue,whetheruponredemption(includingwithoutlimitationsinkingfundredemption),acceleration,maturityorotherwise.

“Bond Purchase Agreement”meanstheBondPurchaseAgreementdatedJuly23,2020,relatingtothesaleoftheBonds,amongtheAuthority,theBorrower,theGuarantorandtheUnderwriter.

“Bond Registrar”or“Registrar”meanstheentityorentitiesperformingthedutiesofthebondregistrarpursuanttoSection2.08hereof.

“Bonds”or“Bond”meansallrevenuebondsoftheAuthorityauthorizedbyandatanytimeOutstandingpursuantheretoandexecuted,issuedanddeliveredinaccordancewithSection2.02hereof.

“Book-Entry Bonds”meanstheBondsregisteredinthenameofthenomineeofDTC,oranysuccessorsecuritiesdepositoryforsuchBonds,astheregisteredownerthereofpursuanttothetermsandprovisionsofSection2.11hereof.

“Borrower”meansNavistarInternationalCorporation,aDelawarecorporation,oranyentitywhichisthesurviving,resultingortransfereeentityinanymerger,consolidationortransferofassetspermittedunderSection5.2oftheAgreementandalsomeans,unlessthecontextotherwiserequires,anassigneeoftheAgreementaspermittedbySection5.2oftheAgreement.

“Borrower Documents”meansthosedocumentsidentifiedassuchinSection2.3(a)oftheAgreement.

“Business Day”meansanydayotherthan(i)aSaturday,SundayorlegalholidayintheState,(ii)adayonwhichcommercialbanksinNewYork,NewYork,oranyothercityorcitiesinwhichtheCorporateTrustOfficeoftheTrusteeortheTenderAgentareauthorizedorrequiredbylawtoclose,(iii)adayonwhichtheNewYorkStockExchangeisclosed,or(iv)adayonwhichinterbankwiretransferscannotbemadeontheFedwiresystem.ForpurposesofdeterminingtheSIFMAInterestRate,“BusinessDay”alsoexcludesanydaythatSIFMArecommendsthatthefixedincomedepartmentsofitsmembersbeclosedforpurposesoftradinginU.S.governmentsecurities.ForpurposesofdeterminingLIBOR,“BusinessDay”meansanyday,otherthanaSaturdayorSunday,onwhichdealingsindepositsinU.S.dollarsaretransactedintheLondoninterbankmarket.AtsuchtimeasthereisaLetterofCreditsupportingtheBonds,thecitywheretheofficeoftheBank(atwhichdrawsundersuchLetterofCreditwillbemade)islocatedshallbeincludedinclause(ii)ofthisdefinition.

“Calculation Agent”means,whiletheBondsbearinterestinanIndexInterestRatePeriodoraSIFMAInterestRatePeriod,thePayingAgent,untilasuccessorCalculationAgentisappointedpursuanttoSection8.09,andthereaftermeanssuchsuccessorCalculationAgent.

“Capital Stock”means,withrespecttoanyPerson,anyandallshares,interests,participations,rightsin,orotherequivalents(howeverdesignatedandwhethervotingornon-voting)of,suchPerson’scapitalstock(orotherownershiporprofitsinterest,including,withoutlimitation,partnership,memberortrustinterest),includingeachclassofCommonorPreferredStockofsuchPerson,whetheroutstandingontheDateofDeliveryorissuedaftertheDateofDelivery,andanyandallrights,warrantsoroptionsexchangeablefororconvertibleintosuchcapitalstock(otherthananydebtsecuritiesconvertibleorexchangeableintosuchcapitalstock).

“Capitalized Lease Obligation”meansobligationsunderaleasethatarerequiredtobeclassifiedandaccountedforasacapitalizedlease(and,fortheavoidanceofdoubt,notastraight-lineoroperatinglease)underGAAPand,forpurposesofthisIndenture,theamountofsuchobligationsatanydateshallbethecapitalizedamountofsuchobligationsatsuchdate,determinedinaccordancewithGAAP.Thestatedmaturityofsuchobligationshallbethedateofthelastpaymentofrentoranyotheramountdueundersuchleasepriortothefirstdateuponwhichsuchleasemaybeterminatedbythelesseewithoutpenalty.Allobligations(includingobligationsincurredunderanyleaseexecutedaftertheDateofDelivery)ofanyPersonthatareorwouldbecharacterizedasanoperatingleaseunderGAAPasineffectasofNovember6,2017shallcontinuetobe(orshallbe)accountedforasanoperatingleaseforpurposesofthisIndentureregardlessofanychangeinGAAPfollowingthedatethereofthatwouldotherwiserequiresuchobligationtobecharacterizedorrecharacterizedasaCapitalizedLeaseObligation.

“Cash Management Services”meansanyofthefollowingtotheextentnotconstitutingalineofcredit(otherthananovernightdraftfacilitythatisnotindefault):automatedclearinghousetransactions,treasury,depository,creditordebitcard,purchasingcard,storedvaluecard,electronicfundtransferservicesand/orcashmanagementservices,includingcontrolleddisbursementservices,overdraftfacilities,foreignexchangefacilities,depositandotheraccountsandmerchantservicesorothercashmanagementarrangementsintheordinarycourseofbusinessorconsistentwithpastpractice.

“Certificate,”“Statement,”“Request,”“Requisition”or“Order”oftheAuthorityortheBorrowermeans,respectively,awrittencertificate,statement,request,requisitionorordersignedinthenameoftheAuthoritybyitsAuthorizedRepresentativeorsuchotherindividualasmaybedesignatedandauthorizedtosignfortheAuthorityorinthenameoftheBorrowerbyanAuthorizedRepresentativeoftheBorrower.Anysuchinstrumentandsupportingopinionsorrepresentations,ifany,may,butneednot,becombinedinasingleinstrumentwithanyotherinstrument,opinionorrepresentationandthetwoormoresocombinedshallbereadandconstruedasasingleinstrument.IfandtotheextentrequiredbySection1.02hereof,eachsuchinstrumentshallincludethestatementsprovidedforinSection1.02hereof.

“Change of Control”meanstheoccurrenceofoneormoreofthefollowingevents:

(1)any“person”or“group”(assuchtermsareusedinSection13(d)and14(d)oftheExchangeAct),otherthan(i)employeeorretireebenefitplansortrustssponsoredorestablishedbytheBorrowerortheGuarantoror(ii)oneormorePermittedHoldersinatransactionthat,takingintoaccountanyIndebtednessincurredinconnectiontherewith,resultsinImprovedRatingsfromS&PandMoody’s,isorbecomesthe“beneficialowner”(asdefinedinRule13d-3undertheExchangeAct),directlyorindirectly,ofsecuritiesoftheBorrowerrepresenting50%ormoreofthecombinedvotingpoweroftheBorrower’sthenoutstandingVotingStock;

(2)thefollowingindividualsceaseforanyreasontoconstitutemorethanamajorityofthenumberofdirectorsthenservingontheBoardofDirectorsoftheBorrower:individualswho,ontheDateofDelivery,constitutedtheBoardofDirectorsandanynewdirectorwhoseappointmentorelectionbytheBoardofDirectorsornominationforelectionbytheBorrower’sstockholderswasapproved(a)bythevoteofatleastamajority

ofthedirectorsthenstillinofficeorwhoseappointment,electionornominationwaspreviouslysoapprovedorrecommendedor(b)withrespecttodirectorswhoseappointmentofelectiontotheBoardofDirectorswasmadebytheholdersoftheBorrower’snon-convertiblejuniorpreferencestock,seriesB,bytheholdersofsuchpreferencestock;

(3)theshareholdersoftheBorrowershallapproveanyPlanofLiquidation;

(4)theBorrowerconsolidateswithormergeswithorintoanotherPerson(otherthantheBorroweroranyoftheRestrictedSubsidiaries),otherthanamergerorconsolidationoftheBorrower(i)inwhichtheholdersoftheCommonStockoftheBorroweroutstandingimmediatelypriortotheconsolidationormergerhold,directlyorindirectly,atleastamajorityoftheCommonStockofthesurvivingcorporationimmediatelyaftersuchconsolidationormergeror(ii)withaPermittedHolderinatransactionthat,takingintoaccountanyIndebtednessincurredinconnectiontherewith,resultsinImprovedRatingsfromS&PandMoody’s;or

(5)theBorroweroranyRestrictedSubsidiary,directlyorindirectly,sells,assigns,conveys,transfers,leasesorotherwisedisposesof(otherthanbywayofmergerorconsolidation),inonetransactionoraseriesofrelatedtransactions,allorsubstantiallyallofthepropertyorassetsoftheBorrowerandtheRestrictedSubsidiaries(determinedonaconsolidatedbasis)toanyPerson;provided thatnoneof(a)themergerorconsolidationofaRestrictedSubsidiaryintotheBorrowerorintoanyRestrictedSubsidiary,(b)aseriesoftransactionsinvolvingthesaleofReceivablesorintereststhereinintheordinarycourseofbusinessbyaSecuritizationSubsidiaryinconnectionwithaQualifiedSecuritizationTransaction,(c)thegrant(butnottheforeclosureorrealization)ofaLienonassetsoftheBorroweroranyRestrictedSubsidiaryinconnectionwithIndebtednesspermittedpursuanttotheSeniorNotesIndentureor(d)thesale,conveyance,transferorleaseofallorsubstantiallyallofthepropertyorassetsoftheBorrowerandtheRestrictedSubsidiariestoaPermittedHolderinatransactionthat,takingintoaccountanyIndebtednessincurredinconnectiontherewith,resultsinImprovedRatingsfromeachRatingAgency,shallbedeemedtobeaChangeofControl.

Forpurposesoftheforegoing,thetransfer(bylease,assignment,saleorotherwise,inasingletransactionorseriesoftransactions)ofallorsubstantiallyallofthepropertiesorassetsofoneormoreRestrictedSubsidiaries,theCapitalStockofwhichconstitutesallorsubstantiallyallofthepropertiesandassetsoftheBorrower,shallbedeemedtobethetransferofallorsubstantiallyallofthepropertiesandassetsoftheBorrower.

Forpurposesoftheforegoingclauses(1),(4)and(5),withrespecttoanysuchtransactioninvolvingaPermittedHolder,thedeterminationofwhetheraChangeofControlhasoccurredmaybedelayedforsolongasanyRatingAgencyhasannouncedorotherwiseinformedtheBorrowerthatitsratingwithrespecttotheBondsremainsunderreviewinconnectionwithsuchtransaction,untiltheearliestof(1)thedateofcompletionofsuchreviewbyanysuchRatingAgency,(2)therevisionorconfirmationbyanysuchRatingAgencyofaratinginrespectoftheBondsinconnectionwithsuchtransactionthatisnotanImprovedRatingand(3)thedatethatis90daysafterthecompletionofsuchtransaction(andif,atsuch90thday,ImprovedRatingsshallnothavebeenissuedbyanysuchRatingAgency,aChangeofControlshallbedeemedtohaveoccurredonsuchdate).

“Code”meanstheInternalRevenueCodeof1986,asamendedfromtimetotime.

“Commodity Agreement”meansanycommodityprice/indexswap,futuresoroptioncontractorsimilaragreementorarrangement.

“Common Stock”ofanyPersonmeansanyandallshares,interestsorotherparticipationsin,andotherequivalents(howeverdesignatedandwhethervotingornon-voting)ofsuchPerson’scommonstock,whetheroutstandingontheDateofDeliveryorissuedaftertheDateofDelivery,andincludes,withoutlimitation,allseriesandclassesofsuchcommonstock.

“Continuing Disclosure Undertaking”meansthatcertainContinuingDisclosureUndertaking,datedtheDateofDelivery,executedbytheBorrower,asoriginallyexecutedorasitmayfromtimetotimebesupplementedoramended.

“Conversion Date”meanseachdateonwhichtheInterestRatePeriodfortheBondsisconvertedfromonetypeofInterestRatePeriodtoanothertypeofInterestRatePeriodorfromaTermInterestRatePeriodtoanotherTermInterestRatePeriodorfromanIndexInterestRatePeriodtoanotherIndexInterestRatePeriodorfromaSIFMAInterestRatePeriodtoanotherSIFMAInterestRatePeriod.

“Corporate Trust Office”meanswithrespecttotheTrustee,theofficeoftheTrusteeatwhichatanyparticulartimeitscorporatetrustbusinessshallbeprincipallyadministered,whichofficeatthedatehereofislocatedinNewYork,NewYork,andwithrespecttotheTenderAgent,theofficeoftheTenderAgentatwhichatanyparticulartimeitscorporatetrustbusinessshallbeprincipallyadministered,whichofficeatthedatehereofislocatedinNewYork,NewYork;provided, however,thatwithrespecttopresentationofBondsforpaymentorforregistrationoftransferandexchangesuchtermshallmeantheofficeoragencyoftheTrusteeorBondRegistraratwhich,atanyparticulartime,itscorporatetrustagencybusinessshallbeconducted,whichoffices,atthedateoftheexecutionofthisIndenture,islocatedat(a)forbondtransfer/surrenderpurposes,480WashingtonBoulevard,30thFloor,JerseyCity,NewJersey07310,Facsimile:(973)461-7191or(973)461-7192,Attention:Agency&Trust–NavistarInternationalCorporation,and(b)forallotherpurposes,388GreenwichStreet,NewYork,NewYork10013,Facsimile:(212)816-5527,Attention:Agency&Trust–NavistarInternationalCorporation.

“Costs of Issuance”meansallitemsofexpensedirectlyorindirectlypayablebyorreimbursabletotheAuthorityortheBorrowerandrelatedtotheauthorization,issuance,saleanddeliveryoftheBonds,includingbutnotlimitedto,thefeesandexpensesoftheAuthority,includingitsreasonableattorneys’fees,costsofpreparationandreproductionofdocuments,printingexpenses,filingandrecordingfees,initialfeesandchargesoftheTrustee,includingitsreasonableattorneys’fees,underwritingfees,legalfeesandcharges,feesanddisbursementsofconsultantsandprofessionals,ratingagencyfees,feesandchargesforpreparation,executionandsafekeepingoftheBondsandanyothercost,chargeorfeeincurredinconnectionwiththeoriginalissuanceoftheBondswhichconstitutesa“costofissuance”withinthemeaningofSection147(g)oftheCode.

“Costs of Issuance Fund”meansthefundbythatnameestablishedpursuanttoSection3.04hereof.

“County 2010 Bonds”meansthe$90,000,000inaggregateprincipalamountofoutstandingTheCountyofCook,IllinoisRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010.

“County 2010 Trustee”meansCitibank,N.A.,astrusteeundertheIndentureofTrustdatedasofOctober1,2010,assupplementedandamendedbytheFirstSupplementalIndentureofTrustdatedAugust1,2016,andtheSecondSupplementalIndentureofTrustdatedNovember6,2017,betweenTheCountyofCook,IllinoisandtheCounty2010TrusteerelatingtotheCounty2010Bonds.

“Credit Agreement”meansanyagreemententeredintoinconnectionwiththeissuanceofanyLetterofCreditorofanyAlternateLetterofCredit.

“Currency Agreement”meansanyforeignexchangecontract,currencyswapagreement,currencyforward,futureoroptioncontractorothersimilaragreementorarrangement.

“Daily Interest Rate”meansavariableinterestrateonalloraportionoftheBondsestablisheddailyinaccordancewithSection2.03(D)hereof.

“Daily Interest Rate Period”meanseachperiodoftimeduringwhichaDailyInterestRateisineffect.

“Date of Delivery”meansAugust4,2020,thedateofinitialissuanceanddeliveryoftheBonds.

“DealCor Subsidiaries”meansanySubsidiariesownedasoftheDateofDeliverybytheBorroweroroneofitsSubsidiariesoracquiredbytheBorroweroroneofitsSubsidiariesaftertheDateofDeliverywhoseprincipalbusinessisowningoroperatingadealershipthatsellsproductsmanufacturedbytheBorroweroranyofitsRestrictedSubsidiaries.

“Determination of Taxability”means(1)if,duetotheuntruthorinaccuracyofanyrepresentationorwarrantymadebytheBorrowerintheLoanAgreementorinconnectionwiththeofferandsaleoftheBonds,orthebreachofanycovenantorwarrantyoftheBorrowercontainedintheLoanAgreementorintheTaxCertificate,interestontheBonds,oranyofthem,isdeterminednottobeTax-exemptfortheHoldersthereofbyafinaladministrativedeterminationoftheInternalRevenueServiceorajudicialdecisionofacourtofcompetentjurisdiction;or(2)BondCounseldeliversanopinionobtainedbytheBorroweroraGuarantor,anddeliveredtotheTrusteewithacopytobedeliveredtotheAuthority,totheeffectthat(a)interestontheBonds,oranyofthem,isnotTax-exemptorwouldnotbeTax-exemptabsentaredemptionofallorpartoftheBonds,or(b)thattheBondsoranyofthemmustberedeemedunderthetermsofaclosingagreementorsimilaragreementbetweenAuthorityandtheInternalRevenueService;provided,however,thatnoDeterminationofTaxabilityshalloccurifanyoftheBondsarenotTax-exemptbecausesuchBondisheldbyasubstantialuserorrelatedpersonthereto,assuchtermsaredefinedinSection147oftheCode.Adeterminationordecisionwillnotbeconsideredfinalforpurposesofthisdefinitionunless(A)theAuthorityortheholderorholdersoftheBondsinvolvedinthe

proceedinginwhichtheissueisraised(i)shallhavegiventheBorrowerandtheTrusteepromptwrittennoticeofthecommencementthereof,and(ii)shallhaveofferedtheBorrowertheopportunitytocontroltheproceeding;providedtheBorroweragreestopayallexpensesandcostsinconnectiontherewithandtoindemnifytheAuthorityandsuchholderorholdersagainstallliabilityforsuchexpensesandcosts(exceptthatanysuchholdermayengageseparatecounselfortheholderorholdersoftheBonds,andtheBorrowershallnotbeliableforthefeesorexpensesofsuchcounselbutshallbeliableforthefeesandexpensesofcounseltotheAuthority);and(B)suchproceeding(whetheradministrativeorjudicial)shallnotbesubjecttoafurtherrightofappealorrevieworshallnothavebeentimelyappealedorsubmittedforfurtherreview.

“Direct Participants”meansthosebroker-dealers,banksandotherfinancialinstitutionsfromtimetotimeforwhichDTCholdstheBondsassecuritiesdepository.

“Disqualified Capital Stock”meansanyCapitalStockthat,otherthansolelyattheoptionoftheissuerthereof,byitsterms(orbythetermsofanysecurityintowhichitisconvertibleorexchangeable)is,oruponthehappeningofaneventorthepassageoftimewouldbe,requiredtoberedeemedorrepurchased,inwholeorinpart,priortothefirstanniversaryofthematuritydateoftheSeniorNotesorhas,oruponthehappeningofaneventorthepassageoftimewouldhave,aredemptionorsimilarpaymentdueonorpriortothefirstanniversaryofthematuritydateoftheSeniorNotes,orisconvertibleintoorexchangeablefordebtsecuritiesattheoptionoftheholderthereofatanytimepriortothefirstanniversaryofthematuritydateoftheSeniorNotes.

“DTC”meansTheDepositoryTrustCompany,NewYork,NewYork,alimitedpurposetrustcompanyorganizedundertheNewYorkBankingLaw,oranysuccessorsecuritiesdepositoryfortheBonds.

“Electronic Means”meanstelecopy,telegraph,telex,electronicmailasaportabledocumentformat(pdf)orotherreplicatingimageattachedtoelectronicmail,facsimiletransmissionorothersimilarelectronicmeansofcommunicationprovidingconfirmationofreceipt,includingatelephoniccommunicationconfirmedbywritingorwrittentransmission.

“Event of Default”meansanyoftheeventsspecifiedinSection7.01hereof.

“Exchange Act”meanstheSecuritiesExchangeActof1934,asamended,andtherulesandregulationsoftheSECpromulgatedthereunder,asamended.

“Facility”meansanylocationatwhichanyportionoftheProjectexists.

“Financing Documents”meansthisIndenture,theAgreement,theBonds,theRemarketingAgreement,theCreditAgreement,ifany,theTaxCertificateandeachamendmentthereof,andanyotherdocumentorinstrumenttowhichtheAuthorityortheBorrowerisapartyorbywhicheitherofthemisboundandthatisexecutedanddeliveredinconnectionwiththeBonds.

“Financing Participants”meanstheBorrower,thePayingAgent,theBondRegistrar,theCalculationAgent,ifany,theBank,ifany,andtheRemarketingAgent,ifany.

“Fiscal Year”meanstheperiodbeginningonNovember1ofeachyearandendingonthenextsucceedingOctober31,oranyothertwelve-month,orfifty-twoweek,periodhereafterselectedanddesignatedastheofficialfiscalyearperiodoftheBorrower.

“Fitch”meansFitch,Inc.acorporationorganizedandexistingunderthelawsoftheStateofDelaware,doingbusinessasFitchRatings,itssuccessorsandtheirassigns,or,ifsuchentityshallbedissolvedorliquidatedorshallnolongerperformthefunctionsofasecuritiesratingagency,“Fitch”shallbedeemedtorefertoanyothernationallyrecognizedsecuritiesratingagency(otherthanS&PorMoody’s)designatedbytheAuthority,withtheapprovaloftheBorrower,bywrittennoticetotheBank,theTrustee,theRemarketingAgentandtheTenderAgent.

“GAAP”meansgenerallyacceptedaccountingprinciplesintheUnitedStatesofAmericaasineffectfromtimetotime,itbeingunderstoodthat,forpurposesofthisIndenture,allreferencestocodifiedaccountingstandardsspecificallynamedinthisIndentureshallbedeemedtoincludeanysuccessor,replacement,amendmentorupdatedaccountingstandardundergenerallyacceptedaccountingprinciplesintheUnitedStatesofAmerica;provided,however,thatleasesshallbedeterminedinaccordancewithFinancialAccountingStandardsBoardcodification840asineffectontheOriginalSecuritiesIssuanceDate.

“Guarantor”meansNavistar,Inc.,aDelawarecorporation,oranysuccessorthereof.

“Guaranty”meansthecertainBondGuaranteedatedasofJuly1,2020,issuedbytheGuarantorinfavoroftheTrustee,asoriginallyexecutedandasitmayfromtimetotimebesupplemented,modifiedoramendedinaccordancewiththetermsthereof.

“Holder”or“Bondholder”or“Owner,”wheneverusedhereinwithrespecttoaBond,meansthePersoninwhosenamesuchBondisregistered,includingbutnotlimitedtoanIndexInterestRateHolderoraSIFMAInterestRateHolder.

“IFA 2010 Bonds”meansthe$135,000,000inaggregateprincipalamountofoutstandingIllinoisFinanceAuthorityRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010.

“IFA 2010 Trustee”meansCitibank,N.A.,astrusteeundertheIndentureofTrustdatedasofOctober1,2010,assupplementedandamendedbytheFirstSupplementalIndentureofTrustdatedAugust1,2016,andtheSecondSupplementalIndentureofTrustdatedNovember6,2017,betweentheAuthorityandtheIFA2010TrusteerelatingtotheIFA2010Bonds.

“Improved Ratings”means,aftergivingeffecttoanytransactionthatotherwisewouldconstituteaChangeofControl,theratingoftheBonds,asconfirmedorrevisedbyeachRatingAgencyinconnectionwithsuchtransaction,asapplicable,ishigherbyoneormoregradations(includinggradationswithinratingcategories(i.e.,+or–forS&Pand1,2and3forMoody’s)aswellasbetweenratingcategories,butnotincludingratingsoutlookchanges)thanitsratingoftheBondsasoftheDateofDelivery.

“Indebtedness”means,withrespecttoanyPerson,onanydateofdetermination,anyofthefollowing,withoutduplication:

(1)theprincipalofallobligationsofsuchPerson,whetherornotcontingent(a)forborrowedmoney(whetherornottherecourseofthelenderistothewholeoftheassetsofsuchPersonoronlytoaportionthereof),(b)evidencedbyanote,bond,debentureorsimilarinstrumentor(c)forthepaymentofmoneyrelatingtoaCapitalizedLeaseObligationorotherobligation(whetherissuedorassumed)relatingtotheaccruedpurchasepriceofpropertyorservices,butexcludingtradeaccountspayableorsimilarobligationstoatradecreditor,deferredexpenses,deferredcompensationandsimilarobligationsofsuchPersonarisingintheordinarycourseofbusiness;

(2)allconditionalsaleobligationsandallobligationsunderanytitleretentionagreement(eveniftherightsandremediesofthesellerundersuchagreementintheeventofdefaultarelimitedtorepossessionorsaleofsuchproperty),butexcludingtradeaccountspayable,deferredexpenses,deferredcompensationandsimilarobligationsofsuchPersonarisingintheordinarycourseofbusinessorearn-outobligationuntilsuchobligationbecomesaliabilityonthebalancesheetofsuchPersoninaccordancewithGAAP;

(3)allobligationsforthereimbursementofanyobligoronanyletterofcredit,banker’sacceptanceorsimilarcredittransaction(excepttotheextentsuchreimbursementobligationsrelatetotradepayablesorsimilarobligationstoatradecreditorandsuchobligationsaresatisfiedwithin30daysofincurrencethereof),ifandtotheextentdrawnupon;

(4)allIndebtednessofotherssecuredby(orforwhichtheholderofsuchIndebtednesshasanexistingright,contingentorotherwise,tobesecuredby)anyLien(otherthaninconnectionwithpropertysubjecttoaQualifiedSecuritizationTransaction)onanyassetorproperty(including,withoutlimitation,leaseholdinterestsandanyothertangibleorintangibleproperty)ofsuchPerson,whetherornotsuchIndebtednessisassumedbysuchPersonorisnototherwisesuchPerson’slegalliability;provided thatiftheobligationssosecuredhavenotbeenassumedbysuchPersonorareotherwisenotsuchPerson’slegalliability,theamountofsuchIndebtednessforthepurposesofthisdefinitionshallbelimitedtothelesseroftheamountofsuchIndebtednesssecuredbysuchLienandthefairmarketvalueoftheassetsorpropertysecuringsuchLien;

(5)allIndebtednessofothers(includingalldividendsofotherPersonsthepaymentofwhichis)guaranteed,directlyorindirectly,bysuchPersonorthatisotherwiseitslegalliabilityorwhichsuchPersonhasagreedtopurchaseorrepurchaseorinrespectofwhichsuchPersonhasagreedcontingentlytosupplyoradvancefunds;

(6)allDisqualifiedCapitalStockissuedbysuchPersonandPreferredStockofsuchPerson’sRestrictedSubsidiarywiththeamountofIndebtednessrepresentedbysuchDisqualifiedCapitalStockorPreferredStockbeingequaltothegreaterofitsvoluntaryorinvoluntaryliquidationpreferenceanditsmaximumfixedrepurchaseprice,butexcludingaccrueddividendsifany;

(7)allnetamountsowingunderInterestRateProtectionAgreements,CurrencyAgreementsorCommodityAgreements(theamountofanysuchobligationstobeequalatanytimetothenetpaymentsundersuchagreementsorarrangementsgivingrisetosuchobligationthatwouldbepayablebysuchPersonuponterminationofsuchagreementorarrangementatsuchtime);and

(8)allAttributableIndebtednessinrespectofSale/LeasebackTransactionsenteredintobysuchPerson.

Notwithstandingtheforegoing,Indebtednessshallnotinclude:(i)anyguaranteesofobligationsofsupplierstotheBorroweroranyofitsRestrictedSubsidiariesthatensuretimelydeliveryofproducts,toolingandothermaterialsusedintheproductionprocess;(ii)anylease,concessionorlicenseofproperty(orguaranteethereof)whichwouldbeconsideredanoperatingleaseunderGAAPasineffectonNovember6,2017,anyprepaymentsofdepositsreceivedfromclientsorcustomersintheordinarycourseofbusinessorconsistentwithpastpractice,orobligationsunderanylicense,permitorotherapproval(orguaranteesgiveninrespectofsuchobligations)incurredintheordinarycourseofbusinessorconsistentwithpastpractice;(iii)contingentobligationsincurredintheordinarycourseofbusinessorconsistentwithpastpractice;(iv)CashManagementServices;and(v)anyobligationsinrespectofworkers’compensationclaims,earlyretirementorterminationobligations,pensionfundobligationsorcontributionsorsimilarclaims,obligationsorcontributionsorsocialsecurityorwagetaxes.

“Indenture”meansthisIndenture,asoriginallyexecutedorasitmayfromtimetotimebesupplemented,modifiedoramendedbyanySupplementalIndenture.

“Index”meansLIBOR,orsuchotherIndexselectedbytheBorrowerthatwillbecomeeffectiveuponachangeinInterestRatePeriodoftheBonds,providedthattheBorrowerdeliversanApprovingOpinionaddressingtheselectionofsuchotherIndex.

“Index Interest Rate”means,asestablishedpursuanttoSection2.03(B)duringanyIndexInterestRatePeriod,aperannumrateofinterestequaltothesumof(i)theApplicableSpreadplus(ii)theproductoftheIndexasofthedateofdeterminationmultipliedbytheApplicableFactor.

“Index Interest Rate Holder”means,duringanyIndexInterestRatePeriod,(i)iftheBondsarenotthenheldundertheBook-EntrySystem,theHolderoftheBonds,providedthatthereisasingleHolderofalloftheBonds,and(ii)iftheBondsarethenheldundertheBook-EntrySystem,theBeneficialOwneroftheBonds,providedthatthereisasingleBeneficialOwnerofalloftheBonds.

“Index Interest Rate Period”meanseachperiodduringwhichanIndexInterestRateisineffect,andwhichendsontheIndexRateTerminationDate.

“Index Tender Date”meanswithrespecttoachangeinInterestRatePeriodfortheBondstoanIndexInterestRatePeriodaftertheDateofDelivery(includingachangeinInterestRatePeriodfromoneIndexInterestRatePeriodtoanotherIndexInterestRatePeriod),thedatesospecifiedbytheBorrowerpursuanttoSection2.03(B)(II).TheIndexTenderDateshallalwaysbeaBusinessDay,unlesssuchdateisthePrincipalPaymentDate.Ifadate(otherthanthePrincipalPaymentDate)thatisnotaBusinessDayisspecifiedasanIndexTenderDate,thentheIndexTenderDateshallbetheBusinessDayfollowingsuchspecifieddate.

“Index Rate Termination Date”shallmeanwithrespecttoanyIndexInterestRatePeriodthedateonwhichtheInterestRatePeriodontheBondsconvertstoadifferentInterestRatePeriodpursuanttoSections2.03(C),2.03(D)or2.03(E)ortoanewIndexInterestRatePeriodpursuanttoSection2.03(B).

“Information Service”meanstheMunicipalSecuritiesRulemakingBoard(the“MSRB”)or,inaccordancewiththencurrentguidelinesoftheSecuritiesandExchangeCommission,suchotherservicesprovidinginformationwithrespecttocalledbonds,ornosuchservices,astheAuthoritymaydesignateinaCertificateoftheAuthoritydeliveredtotheTrusteeinwriting.UntilotherwisedesignatedbytheMSRB,filingswiththeMSRBaretobemadethroughtheElectronicMunicipalMarketAccess(EMMA)SystemoftheMSRBlocatedathttp://emma.msrb.org.

“Interest Account”meanstheaccountbythatnameintheRevenueFundestablishedpursuanttoSection5.02hereof.

“Interest Payment Date”means(a)duringtheinitialTermInterestRatePeriod,eachApril15andOctober15,commencingApril15,2021,(b)duringaVariableInterestRatePeriod,thefirstBusinessDayofeachcalendarmonth,(c)duringaTermInterestRatePeriodotherthantheinitialTermInterestRatePeriodora3-MonthTermInterestRatePeriod(inwhichcase,theInterestPaymentDatemeanstheConversionDate),thefifteenthdayofthecalendarmonththatissixcalendarmonthsafterthebeginningofthecalendarmonthinwhichtheConversionDateoccurs,asapplicable,andthefifteenthdayofthecalendarmontheverysixmonthsaftereachsuchpaymentdatethereafteruntiltheendofsuchInterestRatePeriodwiththelastInterestPaymentDatethereofbeingonthefirstBusinessDayaftertheendofsuchTermInterestRatePeriod,(d)eachConversionDate,(e)thePrincipalPaymentDate,(f)anyredemptiondate,and(g)duringanIndexInterestRatePeriodoraSIFMAInterestRatePeriod,(i)thefirstBusinessDayofeachmonthand(ii)theIndexTenderDateortheSIFMATenderDate,asapplicable.

“Interest Period”meanstheperiodfromandincludinganyInterestPaymentDatetoandincludingthedayimmediatelyprecedingthenextfollowingInterestPaymentDate,exceptthatthefirstInterestPeriodshallbetheperiodfromandincludingthedateofthefirstauthenticationanddeliveryoftheBondstoandincludingthedayimmediatelyprecedingthefirstInterestPaymentDaterelatingtotheBonds.

“Interest Rate Period”meansaDailyInterestRatePeriod,anIndexInterestRatePeriod,aSIFMAInterestRatePeriod,aWeeklyInterestRatePeriodoraTermInterestRatePeriod.

“Interest Rate Protection Agreement”meansanycreditdefaultswaporoptionagreement,interestrateprotectionagreement,interestratefutureagreement,interestrateoptionagreement,interestrateswapagreement(whetherfromfixedtofloatingorfromfloatingtofixed),interestratecapagreement,interestratecollaragreement,interestratehedgeagreementorothersimilaragreementorarrangement.

“Investment Securities”meansanyofthefollowingsecurities(otherthanthoseissuedbytheAuthority,theBorrowerortheGuarantor):

(1)UnitedStatesdollars;

(2)securitiesissuedordirectlyandfullyguaranteedorinsuredbytheUnitedStatesgovernmentoranyagencyorinstrumentalityoftheUnitedStatesgovernment(providedthatthefullfaithandcreditoftheUnitedStates,asthecasemaybe,ispledgedinsupportofthosesecurities)orhavingmaturitiesofnotmorethantwenty-fourmonthsfromthedateofacquisition;

(3)demanddepositaccountsusedintheordinarycourseofbusinesswithoverseasbranchesofcommercialbanksincorporatedunderthelawsoftheUnitedStates,anystatethereofortheDistrictofColumbia;providedthatsuchcommercialbankhas,atthetimeoftheinvestmenttherein,(1)capital,surplusandundividedprofits(asofthedateofsuchinstitution’smostrecentlypublishedfinancialstatements)inexcessof$100.0millionand(2)thelong-termunsecureddebtobligations(otherthansuchobligationsratedonthebasisofthecreditofaPersonotherthansuchinstitution)ofsuchinstitution,atthetimeoftheinvestmenttherein,areratedatleast“A”fromS&Por“A2”fromMoody’s;

(4)obligations(including,butnotlimitedtodemanddeposits,bankers’acceptancesandcertificatesofdeposit)issuedorguaranteedbyadepositoryinstitutionortrustcompanyincorporatedunderthelawsoftheUnitedStates,anystatethereofortheDistrictofColumbia;providedthat(A)suchinstrumenthasafinalmaturitynotmorethanoneyearfromthedateofpurchasethereofand(B)suchdepositoryinstitutionortrustcompanyhasatthetimeoftheinvestmentthereinorcontractualcommitmentprovidingforsuchInvestment,(x)capital,surplusandundividedprofits(asofthedateofsuchinstitution’smostrecentlypublishedfinancialstatements)inexcessof$100.0millionand(y)thelong-termunsecureddebtobligations(otherthansuchobligationsratedonthebasisofthecreditofaPersonotherthansuchinstitution)ofsuchinstitution,atthetimeoftheinvestmentthereinorcontractualcommitmentprovidingforsuchInvestment,areratedatleast“A”fromS&Por“A2”fromMoody’s;

(5)securitieswithmaturitiesofoneyearorlessfromthedateofacquisitionbackedbystandbylettersofcreditissuedbyanyPersonreferencedinclause(3)above;

(6)marketableshort-termmoneymarketandsimilarsecuritieshavingaratingofatleast“P-2”or“A-2”fromeitherS&PorMoody’s,respectively(or,ifatthetime,neitherisissuingcomparableratings,thenacomparableratingofanotherNationallyRecognizedStatisticalRatingOrganization)andineachcasematuringwithintwoyearsfromthedateofcreationoracquisition;

(7)readilymarketabledirectobligationsissuedbyanystateoftheUnitedStatesoranypoliticalsubdivision,taxingauthorityorpublicinstrumentalitythereof,ineachcase,havingoneofthetwohighestratingcategoriesobtainablefromeitherMoody’sorS&P(or,ifatthetime,neitherisissuingcomparableratings,thenacomparableratingofanotherNationallyRecognizedStatisticalRatingOrganization)withmaturitiesofnotmorethantwoyearsfromthedateofcreationoracquisition;

(8)investmentswithaveragematuritiesof12monthsorlessfromthedateofacquisitioninmoneymarketfundsratedwithinthethreehighestratingscategoriesbyS&PorMoody’s(or,ifatthetime,neitherisissuingcomparableratings,thenacomparableratingofanotherNationallyRecognizedStatisticalRatingOrganization);

(9)(i)interestsinanyinvestmentcompany,moneymarket,orotherinvestmentfundwhichinvests95%ormoreofitsassetsininstrumentsofthetypesspecifiedinclauses(1)through(8)aboveor(ii)moneymarketfundsthatareratedatleast“AAA”byS&P;and

(10)AnyotherinvestmentdesignatedbytheBorrowerandapprovedinwritingbytheBank(ifaLetterofCreditisthenineffect).

“Letter of Credit”means,asapplicable,(i)anyLetterofCreditissuedbyaBank(thatisnotanAffiliateoftheTrustee),namingtheTrusteeasbeneficiaryanddeliveredwithrespecttotheBonds,pursuanttoaCreditAgreementwhichmeetstherequirementofSection5.7oftheAgreementand(ii)intheeventofdeliveryofanAlternateLetterofCredit,suchAlternateLetterofCredit.

“Letter of Credit Account”meanstheaccountbythatnameintheRevenueFundestablishedpursuanttoSection5.03hereof.

“LIBOR”means,foreachResetDate,theLondonInterbankOfferedRateforU.S.dollardepositsforaone-monthperiod,asreportedontheBloombergScreenLIBOR01Page(oranysuccessor)(the“DesignatedLIBORPage”)asof11:00a.m.,Londontime,onthesecondBusinessDayprecedingsuchResetDate.IfsuchrateisnotthenreportedbyBloomberg,then“LIBOR”shallmeantheratethenreportedbyanysuccessortoorsubstituteforsuchservicedesignatedbytheBorrowerinwritingthatprovidesratequotationscomparabletothoseprovidedonsuchBloombergscreenpage.IfLIBORhasbeenpermanentlydiscontinuedandnolongerappearsontheDesignatedLIBORPage,theCalculationAgentwill useasdirectedinwritingbytheAuthoritywithconsentbytheBorrower,asasubstituteforLIBORandforeachfutureResetDate,thealternativereferencerateselectedbythecentralbank,reservebank,monetaryauthorityoranysimilarinstitution(includinganycommitteeorworkinggroupthereof)thatisconsistentwithacceptedmarketpractice(the“AlternativeRate”).Aspartofsuchsubstitution,theRemarketingAgentwillmakesuchadjustmentstotheAlternativeRateorthespreadthereon,aswellastheBusinessDayconvention,interestratedeterminationdatesandrelatedprovisionsanddefinitions(“Adjustments”)(ifany).TotheextentamendmentstothisIndenturearenecessarytoimplementanysuchAdjustments,theAuthorityinitssolediscretionmayamendthisIndenturewithouttheconsentofanyBondholder.If,providedhowever,anAlternativeRatehasnotbeendetermined,theAuthoritywillappointinitssolediscretionandattheexpenseoftheBorroweranindependentfinancialadvisor(the“FinancialAdvisor”)todetermineanappropriateAlternativeRate,andanyAdjustments,andthedecisionoftheFinancialAdvisorwillbebindingontheAuthority,theCalculationAgent,theBorrowerandtheBondholders.NotwithstandinganythingtothecontrarycontainedinthisIndenture,theCalculationAgentshallbeentitledtoconclusivelyrelyuponthedeterminationofasubstituteorsuccessorratebytheAuthorityortheFinancialAdvisor.NeithertheTrustee,thePayingAgent,northeCalculationAgentshallhaveanyobligationtoselectasuccessorratenorshalltheTrustee,thePayingAgent,theTenderAgent,theRegistrarortheCalculationAgentberesponsibleformonitoringtheselectionofasuccessorratebytheAuthorityortheFinancialAdvisor.Fortheavoidanceofdoubt,neithertheTrustee,thePayingAgent,the

TenderAgent,theRegistrarnortheCalculationAgentwillbeunderanyobligationto(i)monitor,determineorverifytheunavailabilityorcessationofLIBOR(orotherapplicablebenchmark),orwhetherorwhentherehasoccurred,ortogivenoticetoanyothertransactionpartyoftheoccurrenceof,any“BenchmarkTransitionEvent”or“BenchmarkReplacementDate,”or(ii)select,determineordesignateany“BenchmarkReplacement”orothersuccessororreplacementbenchmarkindex,orwhetheranyconditionstothedesignationofsucharatehavebeensatisfied,or(iii)toselect,determineordesignateanyAdjustment,orothermodifiertoanyreplacementorsuccessorindex,ifany,inconnectionwithanyoftheforegoing.NeithertheTrustee,thePayingAgent,theTenderAgent,theRegistrarnortheCalculationAgentshallbeliableforanyinability,failureordelayonitsparttoperformanyofitsdutiesasaresultoftheunavailabilityofLIBOR(orotherapplicablebenchmark)andabsenceofadesignatedreplacementbenchmark,includingasaresultofanyinability,delay,errororinaccuracyonthepartofanyothertransactionpartyinprovidinganyrequiredorcontemplateddirection,instruction,noticeorinformationandreasonablyrequiredfortheperformanceofsuchduties.

“Lien”means,withrespecttoanyPerson,anymortgage,pledge,lien,encumbrance,easement,restriction,covenant,right-of-way,chargeoradverseclaimaffectingtitleorresultinginanencumbranceagainstrealorpersonalpropertyofsuchPerson,orasecurityinterestofanykind,includinganyconditionalsaleorothertitleretentionagreement,anyleaseinthenaturethereof,anyoption,rightoffirstrefusalorothersimilaragreementtosell,ineachcasesecuringobligationsofsuchPersonandanyfilingoforagreementtogiveanyfinancingstatementundertheUniformCommercialCode(orequivalentstatuteorstatutes)ofanyjurisdictionbutexcludinganysuchfilingoragreementwhichreflectsownershipbyathirdpartyof(1)propertyleasedtothereferentPersonoranyofitsRestrictedSubsidiariesunderaleasethatisnotinthenatureofaconditionalsaleortitleretentionagreementor(2)accounts,generalintangiblesorchattelpapersoldtothereferentPerson.

“LimitedOffering Memorandum”meanstheLimitedOfferingMemorandumdatedJuly23,2020,relatingtotheBonds.

“Loan Default Event”meansanyoneormoreoftheeventsspecifiedinSection6.1oftheAgreement.

“Loan Repayments”meansthepaymentssodesignatedandrequiredtobemadebytheBorrowerpursuanttoSection4.2oftheAgreement.

“Maximum Rate”meansthelesserof(i)twelvepercent(12%)perannumand(ii)themaximumratepermittedbyapplicablelaw.

“Moody’s”meansMoody’sInvestorsService,Inc.,acorporationorganizedandexistingunderthelawsoftheStateofDelaware,itssuccessorsandtheirassigns,or,ifsuchcorporationshallbedissolvedorliquidatedorshallnolongerperformthefunctionsofasecuritiesratingagency,“Moody’s”shallbedeemedtorefertoanyothernationallyrecognizedsecuritiesratingagency(otherthanS&PorFitch)designatedbytheAuthority,withtheapprovaloftheBorrower,bywrittennoticetotheBank,theTrustee,theRemarketingAgentandtheTenderAgent.

“Net Proceeds”meanstheproceedsfrominsuranceorfromactualorthreatenedcondemnationoreminentdomainactionswithrespecttoalloranyportionoftheProject,lessanycostsreasonablyexpendedbytheBorrowertoreceivesuchproceeds.

“Note”meansthePromissoryNotedatedtheDateofDeliveryfromtheBorrowertotheAuthorityandassignedtotheTrusteepursuanttotheAgreement.

“Opinion of Counsel”meansawrittenopinion(addressedanddeliveredtotheAuthorityandtheTrustee)ofcounsel(whomaybecounselfortheAuthority)selectedbytheAuthorityandwithrespecttoanyOpinionofCounseldeliveredtotheTrustee,informandsubstancereasonablyacceptabletotheTrustee.IfandtotheextentrequiredbytheprovisionsofSection1.02hereof,eachOpinionofCounselshallincludethestatementsprovidedforinSection1.02hereof.

“Original Securities Issuance Date”meansNovember6,2017,beingthedateoftheissuanceoftheSeniorNotes.

“Outstanding,”whenusedasofanyparticulartimewithreferencetoBonds,means(subjecttotheprovisionsofSection11.10hereof)allBondstheretofore,orthereuponbeing,authenticatedanddeliveredbytheTrusteeunderthisIndentureexcept(1)BondstheretoforecanceledbytheTrusteeorsurrenderedtotheTrusteeforcancellation;(2)BondswithrespecttowhichliabilityoftheAuthorityshallhavebeendischargedinaccordancewithSection10.02hereof,includingBonds(orportionsofBonds)referredtoinSection11.10hereof;(3)BondsforthetransferorexchangeoforinlieuoforinsubstitutionforwhichotherBondsshallhavebeenauthenticatedanddeliveredbytheTrusteepursuanttothisIndenture;and(4)untenderedBondsforwhichmoneyssufficienttopaythePurchasePricehavebeendepositedasdescribedineitherSection2.04(B)or4.07(G)herein.

“Owner”see“Holder.”

“Participating Affiliate”means,withrespecttotheBorrower,eachPersonthatdirectlyorindirectly,throughoneormoreintermediariesorotherPersons,controls,oriscontrolledby,orisundercommoncontrolwith,theBorrower.Forthepurposeofthisdefinition,the“control”ofaPersonshallmeanthepossession,directlyorindirectly,ofthepowertodirectorcausethedirectionofitsmanagementorpolicies,whetherthroughtheownershipofamajorityofvotingsecuritiesormembershipinterests,astrustee,bycontractorotherwise.

“Paying Agent”meansthePayingAgentdescribedinSection8.07hereof.

“Permitted Holder”meansanyPersonthatisprimarilyengaged,directlyorindirectly,inmanufacturingoranotherindustrialbusinessandactivitiesrelatedthereto.AnyPersonincludedintheTRATONGroupwillbea“PermittedHolder.”

“Person”meansanyindividual,corporation,partnership,limitedliabilitycompany,jointstockcompany,jointventure,trust,estate,unincorporatedorganizationorotherentityorgovernmentoranyagencyorpoliticalsubdivisionthereof.

“Plan of Liquidation”means,withrespecttoanyPerson,aplan(includingbyoperationoflaw)thatprovidesfor,contemplatesortheeffectuationofwhichisprecededoraccompaniedby(whetherornotsubstantiallycontemporaneously):

(1)thesale,lease,conveyanceorotherdispositionofallorsubstantiallyalloftheassetsofthereferentPerson;and

(2)thedistributionofallorsubstantiallyalloftheproceedsofsuchsale,lease,conveyanceorotherdispositionandallorsubstantiallyalloftheremainingassetsofthereferentPersontoholdersofCapitalStockofthereferentPerson.

“Preferred Stock”means,asappliedtotheCapitalStockofanyPerson,theCapitalStockofsuchPerson(otherthantheCommonStockofsuchPerson)ofanyclassorclasses(howeverdesignated)thatranksprior,astothepaymentofdividendsorastothedistributionofassetsuponanyvoluntaryorinvoluntaryliquidation,dissolutionorwinding-upofsuchPerson,tosharesofCapitalStockofanyotherclassofsuchPerson.

“Principal Account”meanstheaccountbythatnameintheRevenueFundestablishedpursuanttoSection5.02.

“Principal Payment Date”meansOctober15,2040.

“Project”meansanyequipment,buildings,structures,fixtures,vehiclesandimprovementsfinancedinwholeorinpartfromtheproceedsofthesaleofthe2010IFABondsorthe2010CookCountyBondsasmorefullydescribedinExhibitAtotheLoanAgreement.

“Purchase Date”meansthedateonwhichanyBondisrequiredtobepurchasedpursuanttoSection2.04hereof,Section4.02(B)orSection4.06hereof.

“Purchase Price”meansthatamountequalto100%oftheprincipalamountofanyBondpurchasedpursuanttoSections2.04,4.02(B)or4.06ofthisIndenture,plusaccruedandunpaidinterestthereontobutnotincludingthePurchaseDateorthedateonwhichsuchBondisdeemedpurchasedinaccordancewithSection2.04hereof.

“Qualified Securitization Transaction”meansanytransactionorseriesoftransactionsthathavebeenormaybeenteredintobyanyoftheRestrictedSubsidiariesinconnectionwithorreasonablyrelatedtoatransactionorseriesoftransactionsinwhichanyoftheRestrictedSubsidiariesmaysell,conveyorotherwisetransferto:

(1)aSecuritizationSubsidiary;or

(2)anyotherPerson,ormaygrantasecurityinterestin,anyReceivablesorintereststhereinsecuredbythemerchandiseorservicesfinancedthereby(whethersuchReceivablesarethenexistingorarisinginthefuture)ofanyoftheRestrictedSubsidiaries,andanyassetsrelatedtheretoincluding,withoutlimitation,allsecurityorownershipinterestsinmerchandiseorservicesfinancedthereby,theproceedsofsuchReceivables,andotherassetswhicharecustomarilysoldorinrespectofwhichsecurityinterestsarecustomarilygrantedinconnectionwithsecuritizationtransactionsinvolvingsuchassets.

“Receivables”meansanyrightofpaymentfromoronbehalfofanyobligor,whetherconstitutinganaccount,chattelpaper,instrument,generalintangibleorotherwise,arisingfromthefinancingbyanyRestrictedSubsidiaryofmerchandiseorservices,andmoniesduethereunder,securityorownershipinterestsinthemerchandiseandservicesfinancedthereby,recordsrelatedthereto,andtherighttopaymentofanyinterestorfinancechargesandotherobligationswithrespectthereto,proceedsfromclaimsoninsurancepoliciesrelatedthereto,anyotherproceedsrelatedthereto,andanyotherrelatedrights.

“Rating Agency”meansMoody’s,ifMoody’sisthenratingtheBonds,S&P,ifS&PisthenratingtheBondsand/orFitch,ifFitchisthenratingtheBonds,orsuchothernationally-recognizedratingagencythenratingtheBonds.

“Rating Letter”meansaletterfromaRatingAgencyindicatingaratingontheBondsassignedbysuchRatingAgency.

“Rebate Fund”meansthefundbythatnamecreatedbytheTaxCertificate.

“Rebate Instructions”meansthosecalculationsanddirectionsrequiredtobedeliveredtotheTrusteeand,ifrequested,theAuthoritybytheBorrowerundertheTaxCertificate.

“Rebate Requirement”meanstheRebateRequirementdefinedintheTaxCertificate.

“Record Date”means(i)theBusinessDayimmediatelyprecedingtheapplicableInterestPaymentDateduringaVariableInterestRatePeriod,(ii)theBusinessDayimmediatelyprecedingtheapplicableInterestPaymentDateduringanyTermInterestRatePeriodoflessthanoneyear,includingany3-MonthTermInterestRatePeriod,and(iii)theday,whetherornotaBusinessDay,whichisthefifteenthdayofthemonthpriortoanInterestPaymentDateduringanyIndexInterestRatePeriod,anySIFMAInterestRatePeriodoranyTermInterestRatePeriodofoneyearorgreater.

“Redemption Account”meanstheaccountbythatnameestablishedintheRevenueFundpursuanttoSection5.02hereof.

“Remarketing Agent”meansanyRemarketingAgentappointedpursuanttoSection8.12hereof,anditssuccessorsinsuchofficeunderthisIndenture.

“Remarketing Agreement”meansanyremarketingagreementbetweentheBorrowerandaRemarketingAgent,ortheagreementorinstrumentpursuanttowhichasuccessortotheRemarketingAgentshallperformitsservices.

“Request of the Authority”or“Request of the Borrower”shallmeanawrittendirectionbyanAuthorizedRepresentativeoftheAuthorityortheBorrower,asthecasemaybe.

“Reset Date”meanswithrespecttoBondsinanIndexInterestRatePeriodoraSIFMAInterestRatePeriod,eachdateonwhichtheinterestratewithrespecttotheBondschangesandtheBondsbegintobearinterestatanewrate,whichshallbe(i)inthecaseoftheIndexInterestRatePeriod,thefirstdayofsuchIndexInterestRatePeriodandthereafterthefirstBusinessDayofeachmonth,and(ii)inthecaseoftheSIFMAInterestRatePeriod,thefirstdayofsuchSIFMA

InterestRatePeriodandthereaftereachThursday;provided, however,inconnectionwithachangeinInterestRatePeriod,theRemarketingAgentmaydesignate,uponthedirectionoftheBorrower,onorpriortotheConversionDate,anyotherdayastheResetDateforBonds.

“Responsible Officer”meansanyofficerwithinthecorporatetrustdepartmentoftheTrustee,includinganyvicepresident,assistantvicepresident,assistantsecretary,assistanttreasurer,trustofficeroranyotherofficeroftheTrusteewhocustomarilyperformsfunctionssimilartothoseperformedbythepersonswhoatthetimeshallbesuchofficers,respectively,ortowhomanycorporatetrustmatterisreferredbecauseofsuchperson’sknowledgeofandfamiliaritywiththeparticularsubjectandwhoshallhavedirectresponsibilityfortheadministrationofthisIndenture.

“Restricted Subsidiary”meansanySubsidiarythatisnotanUnrestrictedSubsidiary.InthisIndenture,referencestoa“RestrictedSubsidiary”aretoaRestrictedSubsidiaryoftheBorrower,unlessthecontextrequiresotherwise.TheGuarantorisaRestrictedSubsidiary.

“Retained Rights”meanstherightsoftheAuthorityunderSections4.2(b),4.2(c),4.2(d),8.2and8.4oftheAgreementand,totheextentnotexpresslyprovidedinsaidsections(orinanyothersectionshereoforthereof)theAuthority’srightsunderthisIndentureandtheAgreementto(a)receiveanyAdministrativeFeesandExpensestotheextentpayabletotheAuthority;(b)inspectbooksandrecordsandtheProject;(c)giveorreceivenotices,approvals,consents,requests,andothercommunications;(d)receivepaymentorreimbursementforexpenses,including,withoutlimitation,“AdditionalPayments”;(e)immunityfromandlimitationofliability;(f)indemnificationbytheBorroweroranyotherPersonandsecurityfortheBorrower’sindemnificationobligation;and(g)theobligationoftheBorrowertomakedepositspursuanttotheTaxCertificate;andfurther,toenforce,initsownnameandonitsownbehalf,thoseprovisionshereofandoftheAgreementandanyotherdocument,instrumentoragreemententeredintowithrespecttotheBondsthatprovidesgenerallyfortheforegoingenumeratedrightsoranysimilarrightsoftheAuthorityoranyAuthorityIndemnifiedPerson.Foravoidanceofdoubt,the“RetainedRights”referencedinclauses(e)and(f)above,shallinclude(butnotbelimitedto)therightsoftheAuthorityIndemnifiedPersonstoimmunityfromandlimitationofliabilityandindemnificationbytheBorrowerasprovidedintheAgreementandtherightofanysuchAuthorityIndemnifiedPersontoenforcesuchrightsinhis,heroritsownname.

“Revenue Fund”meansthefundbythatnameestablishedpursuanttoSection5.01.

“Revenues”meansallamountsreceivedbytheAuthorityortheTrusteefortheaccountoftheAuthoritypursuantorwithrespecttotheAgreement,theNote,theLetterofCredit,ifany,ortheGuarantyincluding,withoutlimitingthegeneralityoftheforegoing,LoanRepayments(includingbothtimelyanddelinquentpayments,anylatecharges,andpaidfromwhateversource),prepayments,insuranceproceeds,condemnationproceeds,andallinterest,profitsorotherincomederivedfromtheinvestmentofamountsinanyfundoraccountestablishedpursuanttothisIndenture(exceptasprovidedbelow),butnotincludingAdditionalPayments,includingwithoutlimitationanyAdministrativeFeesandExpenses,TenderProceeds,oranymoneyspaidfordepositintotheRebateFund,anyinvestmentearningsonmoneysheldinsuchfundsoraccounts,andanyotherpaymentsinrespectoftheRetainedRights.

“S&P”meansS&PGlobalRatings,itssuccessorsandtheirassigns,and,ifsuchentityshallbedissolvedorliquidatedorshallnolongerperformthefunctionsofasecuritiesratingagency,“S&P”shallbedeemedtorefertoanyothernationallyrecognizedsecuritiesratingagency(otherthanMoody’sorFitch)designatedbytheAuthority,withtheapprovaloftheBorrower,bywrittennoticetotheBank,ifany,theTrustee,theRemarketingAgent,ifany,andtheTenderAgent,ifany.

“S&P Index”meanstheS&PWeeklyHighGradeIndexmaintainedbyS&P.

“Sale/Leaseback Transaction”meansanarrangementrelatingtopropertynowownedorhereafteracquiredwherebytheBorroweroraRestrictedSubsidiarytransferssuchpropertytoaPersonandtheBorroweroraRestrictedSubsidiaryleasesitfromsuchPerson.

“Securities Depositories”meansthefollowingregisteredsecuritiesdepositories:TheDepositoryTrustCompany,55WaterStreet,NewYork,NewYork10041-0099(fornoticesofredemption–Attn:CallNotificationDepartment,RedemptionNoticeEnclosed,Fax–(212)855-7232,7233,7234or7235;fornoticesoftender–Attn:PutBondsUnit,PutNoticeEnclosed,Fax–(212)855-5235);or,inaccordancewiththen-currentguidelinesoftheSecuritiesandExchangeCommission,suchothersecuritiesdepositories,ornosuchdepositories,astheAuthoritymayindicateinaCertificateoftheAuthoritydeliveredtotheTrustee.

“Securitization Subsidiary”meansaSubsidiaryoftheBorrowerexistingontheDateofDeliveryorformedoracquiredthereafterwhichengagesprincipallyinsecuritizationtransactionsandinactivitiesreasonablyrelatedtoorinconnectionwiththeenteringintoofsecuritizationtransactionsand:

(1)noportionoftheIndebtednessoranyotherobligations(contingentorotherwise)ofwhich

(a)isguaranteedbytheBorroweroranyRestrictedSubsidiary,

(b)isrecoursetoorobligatestheBorroweroranyRestrictedSubsidiaryinanywayotherthanpursuanttorepresentations,warrantiesandcovenants(includingthoserelatedtoservicing)enteredintointheordinarycourseofbusinessinconnectionwithaQualifiedSecuritizationTransaction,or

(c)subjectsanypropertyorassetoftheBorroweroranyRestrictedSubsidiary,directlyorindirectly,contingentlyorotherwise,toanyLienortothesatisfactionthereof,otherthanpursuanttorepresentations,warrantiesandcovenants(includingthoserelatedtoservicing)enteredintointheordinarycourseofbusinessinconnectionwithaQualifiedSecuritizationTransaction;

(2)withwhichneithertheBorrowernoranyRestrictedSubsidiary:

(a)providesanycreditsupport;or

(b)hasanycontract,agreement,arrangementorunderstandingotherthanontermsthatarefairandreasonableandthatarenolessfavorabletotheBorrowerorsuchRestrictedSubsidiarythancouldbeobtainedfromanunrelatedPerson(otherthan,inthecaseofsubclauses(a)and(b)

ofthisclause(2),representations,warrantiesandcovenants(includingthoserelatingtoservicing)enteredintointheordinarycourseofbusinessinconnectionwithaQualifiedSecuritizationTransactionandintercompanynotesrelatingtothesaleofReceivablestosuchSecuritizationSubsidiary);and

(3)withwhichneithertheBorrowernoranyRestrictedSubsidiaryhasanyobligationtomaintainorpreservesuchSubsidiary’sfinancialconditionortocausesuchSubsidiarytoachievecertainlevelsofoperatingresults.Forpurposesoftheforegoing,Navistar,Inc.shallnotbedeemedtobeprovidingcreditsupporttoanySubsidiaryofNavistarFinancialCorporation(“NFC”)thatwouldotherwisequalifyasaSecuritizationSubsidiaryasaresultofthetermsoftheSupportAgreementinwhichtheGuarantoragreestoprovidecreditsupportdirectlytoNFCforthebenefitofitslenders(butnotanyotherprovisions).

“Senior Notes”meanstheBorrower’s6.625%SeniorNotesdue2025issuedundertheSeniorNotesIndentureandanyunsecuredIndebtednessoftheBorrowerincurredtorefinancetheSeniorNotes.

“Senior NotesIndenture”meanstheIndenturedatedasofNovember6,2017,amongtheBorrower,theGuarantorandTheBankofNewYorkMellonTrustCompany,N.A.astrustee,asoriginallyexecutedorasitmayfromtimetotimebesupplemented,modifiedoramended,providingfortheissuanceoftheSeniorNotes,andanyoneormoreagreements,includingindentures,governingunsecuredIndebtednessincurredtorefinancetheSeniorNotes.

“Senior Secured Notes”meanstheBorrower’s9.500%SeniorSecuredNotesdue2025issuedundertheSeniorSecuredNotesIndentureandanyIndebtednessoftheBorrowerincurredtorefinancetheSeniorSecuredNotes.

“Senior Secured NotesIndenture”meanstheIndenturedatedasofApril27,2020,amongtheBorrower,theGuarantorandTheBankofNewYorkMellonTrustCompany,N.A.astrustee,asoriginallyexecutedorasitmayfromtimetotimebesupplemented,modifiedoramended,providingfortheissuanceoftheSeniorSecuredNotes,andanyoneormoreagreements,includingindentures,governingIndebtednessincurredtorefinancetheSeniorSecuredNotes.

“SIFMA”meanstheSecuritiesIndustryandFinancialMarketsAssociation,andanysuccessorthereto.

“SIFMA Delayed Remarketing Period”meanstheperiodbeginningonthedatethatallthenOutstandingBondsintheSIFMAInterestRatePeriodarenotremarketedontheSIFMATenderDateandendingonthedatethatsuchBondsareremarketedorredeemed.

“SIFMA Index”means,onanydate,theMunicipalSwapIndexcompiledfromweeklyinterestrateresetsoftax-exemptvariablerateissuesincludedinadatabasemaintainedbyMunicipalMarketDatathatmeetspecificcriteriaestablishedfromtimetotimebySIFMA,oranypersonactingincooperationwithorunderthesponsorshipofSIFMAandacceptabletotheBorrower,andeffectivefromsuchdate.IftheMunicipalSwapIndexisnotavailable,“SIFMAIndex”shallmeantheS&PIndexand,ifneithertheMunicipalSwapIndexnortheS&PIndexisavailable,“SIFMAIndex”shallmeantheSubstituteIndex.

“SIFMA Interest Rate”means,asestablishedpursuanttoSection2.03(C)duringanySIFMAInterestRatePeriod,aperannumrateofinterestequaltothesumoftheSIFMAIndexasofthedateofdeterminationandtheApplicableSpread.

“SIFMA Interest Rate Holder”means,duringanySIFMAInterestRatePeriod,(i)iftheBondsarenotthenheldundertheBook-EntrySystem,theHolderoftheBonds,providedthatthereisasingleHolderofalloftheBonds,and(ii)iftheBondsarethenheldundertheBook-EntrySystem,theBeneficialOwneroftheBonds,providedthatthereisasingleBeneficialOwnerofalloftheBonds.

“SIFMA Interest Rate Period”meanseachperiodduringwhichaSIFMAInterestRateisineffect,andwhichendsontheSIFMAInterestRateTerminationDate.

“SIFMA Interest Rate Termination Date”shallmeanwithrespecttoanySIFMAInterestRatePeriodthedateonwhichtheInterestRatePeriodontheBondsconvertstoadifferentInterestRatePeriodpursuanttoSections2.03(B),2.03(D)or2.03(E)ortoanewSIFMAInterestRatePeriodpursuanttoSection2.03(C).

“SIFMA Tender Date”means,withrespecttoachangeinInterestRatePeriodfortheBondstoaSIFMAInterestRatePeriodaftertheDateofDelivery(includingachangeinInterestRatePeriodfromoneSIFMAInterestRatePeriodtoanotherSIFMAInterestRatePeriod),thedatesospecifiedbytheBorrowerpursuanttoSection2.03(C).TheSIFMATenderDateshallalwaysbeaBusinessDay,unlesssuchdateisthePrincipalPaymentDate.Ifadate(otherthanthePrincipalPaymentDate)thatisnotaBusinessDayisspecifiedasaSIFMATenderDate,thentheSIFMATenderDateshallbetheBusinessDayfollowingsuchspecifieddate.

“State”meanstheStateofIllinois.

“Subsidiary”ofanyPersonmeans:

(1) acorporationamajorityofwhoseVotingStockisatthetime,directlyorindirectly,ownedbysuchPerson,byoneormoreRestrictedSubsidiariesofsuchPersonorbysuchPersonandoneormoreRestrictedSubsidiariesofsuchPerson;or

(2) anyotherPerson(otherthanatrustformedinconnectionwithaQualifiedSecuritizationTransaction)inwhichsuchPerson,aRestricted

SubsidiaryofsuchPersonorsuchPersonandoneormoreRestrictedSubsidiariesofsuchPerson,directlyorindirectly,atthedateofdeterminationthereof,haveatleastamajorityownershipinterest.

“Subsidiary Bond Guaranty”meanseachguarantyexecutedanddeliveredbyaSubsidiaryGuarantortotheTrusteepursuanttoSection5.10(b)oftheLoanAgreement.

“Subsidiary Guarantor”meanstheGuarantorandeachRestrictedSubsidiaryoftheBorrowerthatbecomesaguarantoroftheBondspursuanttoSection5.10(b)oftheLoanAgreement.

“Substitute Index”meansthemostrecentlyeffectivesubstituteSIFMAIndex,ifany,designatedinwritingbytheBorrower,fortax-exemptbondsmeetingthethen-currentSIFMAcriteria.TheCalculationAgentshallbeentitledtoconclusivelyrelyuponthedeterminationofaSubstituteIndexbytheBorrowerandshallhavenoobligationtoselectaSubstituteIndex,norshalltheCalculationAgentberesponsibleformonitoringtheselectionofSubstituteIndexbytheBorrower.

“Supplemental Indenture”meansanyindenturehereafterdulyauthorizedandenteredintobetweentheAuthorityandtheTrustee,supplementing,modifyingoramendingthisIndenture;butonlyifandtotheextentthatsuchSupplementalIndentureisspecificallyauthorizedhereunder.

“Support Agreement”meanstheFourthAmendedandRestatedSideAgreementdatedasofMay27,2016,asamendedtotheIssueDatebetweentheBorrowerandtheGuarantor(formerlyknownasInternationalTruckandEngineCorporation),asitmaybeamended,modified,supplemented,restatedorrenewedfromtimetotime;providedthatsuchagreementshallnotbeamended,modified,supplemented,restatedorrenewedinamanneradverseinanymaterialrespecttotheinterestsoftheBorroweranditsRestrictedSubsidiariestakenasawhole.

“Tax Certificate”meanstheTaxAgreementdatedtheDateofDeliveryamongtheAuthority,theTrusteeandtheBorrower.

“Tax-exempt”means,withrespecttointerestonanyobligationsofastateorlocalgovernment,includingtheBonds,thatsuchinterestisexcludedfromgrossincomeforfederalincometaxpurposes(otherthaninthecaseofaHolderofanyBondswhoisasubstantialuserofanycomponentoftheProjectorarelatedPersonwithinthemeaningofSection147(a)oftheCode)whetherornotsuchinterestisincludableasanitemoftaxpreferenceorotherwiseincludabledirectlyorindirectlyforpurposesofcalculatingtaxliabilities,includinganyalternativeminimumtaxorenvironmentaltax,undertheCode.

“Tender Agent”meansinitiallytheTrusteeandanysuccessortenderagentappointedpursuanttoSection8.14hereof.

“Tender Proceeds”meansmoneyspaidtotheTenderAgentfromthesourcessetforthinSection4.07(A)(2)topurchaseBondswhichhavebeentenderedpursuanttoSection2.04(A)orSection4.06.

“Term Interest Rate”meansanon-variableinterestrateontheBondsestablishedinaccordancewithSection2.03(E)hereof,orfortheinitialTermInterestRatePeriod,establishedbytheUnderwriterpriortosaleoftheBonds.

“Term Interest Rate Period”meanseachperiodduringwhichaTermInterestRateisineffect.

“Term Loan Credit Agreement”meansthatcertaincreditagreementdatedNovember6,2017byandamongtheBorrower,theGuarantor,theotherborrowerspartythereto,theguarantorsfromtimetotimepartythereto,JPMorganChaseBank,N.A.,asadministrativeagentandcollateralagent,andeachlenderfromtimetotimepartythereto,togetherwiththerelateddocumentsthereto(includingtherevolvingloansthereunder,anylettersofcreditandreimbursementobligations

relatedthereto,anyguaranteesandsecuritydocuments),asamendedbythatcertainAmendmentNo.1totheCreditAgreementdatedasofJanuary19,2018byandamongtheGuarantor,theBorrower,thelenderspartytheretoandJPMorganChaseBank,N.A.asadministrativeagentandcollateralagent,asamended,extended,renewed,restated,refunded,replaced,refinanced,supplemented,modifiedorotherwisechanged(inwholeorinpart,andwithoutlimitationastoamount,terms,conditions,covenantsandotherprovisions)fromtimetotime,andanyoneormoreagreements(andrelateddocuments)governingIndebtedness,includingindentures,incurredtorefinance,substitute,supplement,replaceoraddto(includingincreasingtheamountavailableforborrowingoraddingorremovinganyPersonasaborrower,issuerorguarantorthereunder,inwholeorinpart),theborrowingsandcommitmentsthenoutstandingorpermittedtobeoutstandingundersuchTermLoanCreditAgreementoroneormoresuccessorstotheTermLoanCreditAgreementoroneormorenewcreditagreements.

“TRATON Acquisition” meansanytransactionorseriesofrelatedtransactionsinwhichTRATONSEoranyofitsAffiliates(orany“group”(assuchtermisusedinSection13(d)and14(d)oftheExchangeAct)inwhichTRATONSEoranyofitsAffiliatesisacontrollingmember):(i)becomesthe“beneficialowner”(asdefinedinRule13d-3undertheExchangeAct),directlyorindirectly,ofsecuritiesoftheBorrowerrepresenting50%ormoreofthecombinedvotingpoweroftheBorrower’sthenoutstandingVotingStock;(ii)TRATONSEoroneofitsAffiliatesconsolidateswithormergeswithorintotheBorrower,otherthanamergerorconsolidationoftheBorrowerinwhichtheholdersoftheCommonStockoftheBorroweroutstandingimmediatelypriortotheconsolidationormergerhold,directlyorindirectly,atleastamajorityoftheCommonStockofthesurvivingcorporationimmediatelyaftersuchconsolidationormerger;or(iii)theBorroweroranyRestrictedSubsidiary,directlyorindirectly,sells,assigns,conveys,transfers,leasesorotherwisedisposesof(otherthanbywayofmergerorconsolidation),inonetransactionoraseriesofrelatedtransactions,allorsubstantiallyallofthepropertyorassetsoftheBorrowerandtheRestrictedSubsidiaries(determinedonaconsolidatedbasis)toTRATONSEoranyofitsAffiliates.

“TRATON Group” meansTRATONSEoranyofitsAffiliates(orany“group”(assuchtermisusedinSection13(d)and14(d)oftheExchangeAct)inwhichTRATONSEoranyofitsAffiliatesisacontrollingmember).

“Trust Estate”meansalloftheRevenuesandanyotheramounts(includingproceedsofthesaleofBonds)heldinanyfundoraccountestablishedpursuanttothisIndenture(excepttheRebateFundandanyamountsduetotheAuthorityortheAuthorityIndemnifiedPersonsinrespectoftheRetainedRights).

“Trustee”meansCitibank,N.A.,anationalbankingassociation,havingadesignatedCorporateTrustOfficeinNewYork,NewYork,oritssuccessorasTrusteehereunderasprovidedinSection8.01.

“Underwriter”meansBofASecurities,Inc.

“Unrestricted Subsidiary”means:

(1)eachofNFC;NavistarFinancialS.A.deC.V.SOFOME.N.R.;NavistarComercial,S.A.deC.V.;ServiciosCorporativosNavistar,S.A.deC.V.;TransproteccionAgentedeSeguros,S.A.deC.V.;HarbourAssuranceCompanyofBermudaLimited;NavistarLeasingServicesCorporationf/k/aHarcoLeasingCompany,Inc.;InternationalTruckandEngineCorporationUSHoldingCompany,LLC;InternationalTruckandEngineCorporationCaymanIslandsHoldingCompany;InternationalTruckandEngineInvestmentsCorporation;BlueDiamondParts,LLC;InternationalDealcorOperations,Ltd.;InternationalTruckandEngineMauritiusHoldingLtd.;InternationalTruckLeasingCorp.;NavistarFinancialRetailReceivablesCorporation;NavistarFinancialSecuritiesCorporation;TruckRetailAccountsCorporation;NavistarCaymanIslandsIntellectualPropertyCompany;NavistarLuxembourgIntellectualPropertyCompany;Navistar(Shanghai)TradingCo.Ltd.;AnhuiJianghuaiNavistarDieselEngineCo.,Ltd.;NavistarAsiaPacificPte.Ltd.;NavistarDefenceAfrica(Proprietary)Limited;NavistarFinancialFleetFundingCorp.;Navistar(Gibraltar)HoldingLimited;NavistarHongKongHoldingCompanyLimited;NavistarLuxembourgHoldingS.a.r.l.;NC2LuxembourgPropertyS.àr.l.;PowertrainIndustriaeComercioLtda.;Parts&ServiceVenturesInc.;Parts&ServiceVenturesCanadaInc.;OCCTechnologies,LLC;allDealCorSubsidiariesandallSecuritizationSubsidiariesinexistenceasoftheDateofDeliveryandtheirrespectiveSubsidiariesuntilsuchtimeasitisdesignatedaRestrictedSubsidiarypursuanttothesecondsucceedingsentence;

(2)anySubsidiaryoftheBorrower(otherthantheGuarantoraslongasitsGuarantyisineffect,andotherthanNIBVoranyofitsSubsidiaries)thatatthetimeofdeterminationshallbedesignatedanUnrestrictedSubsidiarybytheBoardofDirectorsinthemannerprovidedbelow;and

(3)anySubsidiaryofanUnrestrictedSubsidiary.

TheBoardofDirectorsmaydesignateanySubsidiaryoftheBorrower(includinganynewlyacquiredornewlyformedSubsidiary)tobeanUnrestrictedSubsidiaryunlesssuchSubsidiaryoranyofitsSubsidiariesownsanyCapitalStockof,orholdsanyLienonanypropertyof,theBorroweroranyotherRestrictedSubsidiary;provided thateither

(1)theSubsidiarytobesodesignatedhastotalassetsof$1,000orlessor

(2)ifsuchSubsidiaryhasassetsgreaterthan$1,000,suchdesignationwouldbepermittedundertheSeniorNotesIndenture.

TheBoardofDirectorsmaydesignateanyUnrestrictedSubsidiarytobeaRestrictedSubsidiary;provided thatimmediatelyaftergivingeffecttosuchdesignation(a)ifsuchUnrestrictedSubsidiaryatsuchtimehasIndebtedness,theBorrowercouldincur$1.00ofadditionalIndebtednessundertheSeniorNotesIndentureand(b)nodefaultshallhaveoccurredandbecontinuingundertheSeniorNotesIndenture.AnysuchdesignationbytheBoardofDirectorsshallbeevidencedbytheBorrowertotheTrusteebypromptlyfilingwiththeTrusteeacopyoftheboardresolutiongivingeffecttosuchdesignationandaCertificateofanAuthorizedRepresentativeoftheBorrowercertifyingthatsuchdesignationcompliedwiththeforegoingprovisions.

“Variable Interest Rate”meanstheDailyInterestRateandtheWeeklyInterestRate.

“Variable Interest Rate Period”meanseachperiodduringwhichaVariableInterestRateisineffect.

“Voting Stock”means,withrespecttoanyPerson,securitiesofanyclassorclassesofCapitalStockinsuchPersonentitlingtheholdersthereof(whetheratalltimesoronlysolongasnoseniorclassofstockhasvotingpowerbyreasonofanycontingency)tovoteintheelectionofmembersoftheboardofdirectorsorothergoverningbodyofsuchPerson.

“Weekly Interest Rate”meansavariableinterestrateontheBondsestablishedweeklyinaccordancewithSection2.03(D)hereof.

“Weekly Interest Rate Period”meanseachperiodduringwhichWeeklyInterestRatesareineffect.

“3-Month Term Interest Rate Period”meanseachTermInterestRatePeriodwithadurationofthreecalendarmonths.

Section1.02.ContentofCertificatesandOpinions.EverycertificateoropinionprovidedforinthisIndenturewithrespecttocompliancewithanyprovisionhereofshallinclude(1)astatementthatthePersonmakingorgivingsuchcertificateoropinionhasreadsuchprovisionandthedefinitionshereinrelatingthereto;(2)abriefstatementastothenatureandscopeoftheexaminationorinvestigationuponwhichthecertificateoropinionisbased;(3)astatementthat,intheopinionofsuchPerson,suchPersonhasmadeorcausedtobemadesuchexaminationorinvestigationasisnecessarytoenablesuchPersontoexpressaninformedopinionwithrespecttothesubjectmatterreferredtointheinstrumenttowhichsuchPerson’ssignatureisaffixed;(4)astatementoftheassumptionsuponwhichsuchcertificateoropinionisbased,andthatsuchassumptionsarereasonable;and(5)astatementastowhether,intheopinionofsuchPerson,suchprovisionhasbeencompliedwith.

AnysuchcertificateoropinionmadeorgivenbyanofficeroftheAuthorityoranofficerorAuthorizedRepresentativeoftheBorrowermaybebased,insofarasitrelatestolegal,accountingorbusinessmattersofeitherofthem,uponacertificateoropinionoforrepresentationbycounsel,anAccountantoramanagementconsultant,unlesssuchofficerorAuthorizedRepresentativeknows,orintheexerciseofreasonablecareshouldhaveknown,thatthecertificate,opinionorrepresentationwithrespecttothemattersuponwhichsuchcertificate,opinionorrepresentationmaybebased,asaforesaid,iserroneous.Anysuchcertificate,opinionorrepresentationmadeorgivenbycounsel,anAccountantoramanagementconsultantmaybebased,insofarasitrelatestofactualmatters(withrespecttowhichinformationisinthepossessionoftheAuthorityortheBorrower,asthecasemaybe)uponacertificateoropinionoforrepresentationbyanofficeroftheAuthorityoranofficerorAuthorizedRepresentativeoftheBorrower,unlesssuchcounsel,Accountantormanagementconsultantknows,orintheexerciseofreasonablecareshouldhaveknown,thatthecertificateoropinionorrepresentationwithrespecttothemattersuponwhichsuchPerson’scertificateoropinionmaybebased,asaforesaid,is

erroneous.ThesameofficeroftheAuthorityorofficerorAuthorizedRepresentativeoftheBorrower,orthesamecounselorAccountantormanagementconsultant,asthecasemaybe,neednotcertifytoallofthemattersrequiredtobecertifiedunderanyprovisionofthisIndenture,butdifferentofficers,AuthorizedRepresentatives,counsel,Accountantsormanagementconsultantsmaycertifytodifferentmatters,respectively.

Notwithstandingtheforegoingtwoparagraphs,whenanycertificateoropinionisrequiredbytheexpresstermsofthisIndentureortheAgreementtobegivenbytheAuthorityonitsownbehalf,anysuchcertificateoropinionmadeorgivenbyanAuthorizedRepresentativeoftheAuthority(andinnoeventindividually)maybebased,(i)insofarasitrelatestofactualmatters,solelyuponacertificateoforrepresentationbytheBorrower,(ii)insofarasitrelatestolegaloraccountingmatters,solelyuponacertificateorrepresentationbycounseloranAccountant,asthecasemaybe,ineachcaseunderclauses(i)and(ii)withoutfurtherinvestigationorinquirybysuchAuthorizedRepresentativeunlesssuchAuthorizedRepresentativehasactual(andnotimplied,constructiveorimputed)knowledgethatthecertificateoropinionwithrespecttothemattersuponwhichsuchcertificateoropinionmaybebasedareerroneousinanymaterialrespect;andfurtherineachcasewithoutincludinganyorallofthestatementsenumeratedinsubclauses(1)through(5)ofthefirstparagraphofthisSection1.02.

Section1.03.Interpretation.Unlessthecontextotherwiseindicates,wordsexpressedinthesingularshallincludethepluralandviceversaandtheuseoftheneuter,masculine,orfemininegenderisforconvenienceonlyandshallbedeemedtomeanandincludetheneuter,masculineorfemininegender,asappropriate.

(a)Headingsofarticlesandsectionshereinandthetableofcontentshereofaresolelyforconvenienceofreference,donotconstituteaparthereofandshallnotaffectthemeaning,constructionoreffecthereof.

(b)Allreferenceshereinto“Articles,”“Sections”andothersubdivisionsaretothecorrespondingArticles,SectionsorsubdivisionsofthisIndenture;thewords“herein,”“hereof,”“hereby,”“hereunder”andotherwordsofsimilarimportrefertothisIndentureasawholeandnottoanyparticularArticle,Sectionorsubdivisionhereof.

(c)AllreferencestotimehereinshallrefertolocaltimeinNewYork,NewYork.

ARTICLE II

THE BONDS

Section2.01.AuthorizationofBonds.BondsshallbeissuedhereunderinordertoobtainmoneystocarryoutthepurposesoftheActforthebenefitoftheAuthorityandtheBorrower.OneormoreseriesofBondsmaybeissuedhereunderintheaggregateprincipalamountspecifiedinSection2.02.TheBondsaredesignatedas“IllinoisFinanceAuthorityRecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020.”ThisIndentureconstitutesacontinuingagreementwiththeHoldersfromtimetotimeoftheBondstosecurethefullpaymentoftheprincipal(orredemptionprice)ofandinterestonallsuchBondssubjecttothecovenants,provisionsandconditionshereincontained.

Section2.02.FormoftheBonds.TheBondsshallbeissuedintheformoffullyregisteredbonds,withoutcouponsinAuthorizedDenominations,intheaggregateprincipalamountofTwoHundredTwenty-FiveMillionDollars($225,000,000),shallbedatedtheDateofDeliveryandshallmature(subjecttopriorredemptionatthepricesanddatesanduponthetermsandconditionshereinaftersetforth)onthePrincipalPaymentDate.TheBondsshallbearinterestontheunpaidprincipalamountthereofassetforthinSection2.03hereof;provided, however,thatinnoeventshalltherateofinterestonanyBondexceedatanytimetheMaximumRate.IfanEventofDefaultshallhaveoccurredandbecontinuing,theinterestrateontheBondsshallbetherateontheBondsonthedaypriortotheoccurrenceofsuchEventofDefault.

TheBondsshallbeissuedinsubstantiallytheformsetforthinExhibitAofthisIndenturewithsuchvariations,insertionsoromissionsasareappropriateandnotinconsistenttherewithandshallconformgenerallytotherulesandregulationsofanygovernmentalauthorityorusageorrequirementoflawwithrespectthereto.TheBondsshallbenumberedandletteredfromoneupwardprecededbytheletter“R”prefixedtothenumberandmaybearsuchadditionalletters,numbers,legendsordesignationsastheBondRegistrardeterminesaredesirable.

Section2.03.InterestRates.(A)TheBondsshallbearinterestfromandincludingtheirDateofDeliveryuntilpaymentoftheprincipalorredemptionpricethereofshallhavebeenmadeorprovidedforinaccordancewiththeprovisionshereof,whetheratmaturity,uponredemptionorotherwise.InterestontheBondswithrespecttotheimmediatelyprecedingInterestPeriodshallbepaidasprovidedbelow,providedthatifanyInterestPaymentDateisnotaBusinessDay,suchinterestshallbemailedorwiredpursuanttothisSection2.03onthenextsucceedingBusinessDay,withthesameeffectasifmadeonthedaysuchpaymentwasdue.ExceptduringaTermInterestRatePeriodofoneyearormore,interestoneachseriesofBondsshallbecomputeduponthebasisofa365-dayor366-day,asapplicable,yearforthenumberofdaysactuallyelapsed.DuringanyTermInterestRatePeriodofoneyearormore,interestontheBondsshallbecomputeduponthebasisofa360-dayyear,consistingoftwelve30-daymonths.ThefirstInterestPaymentDatefortheBondsshallbeApril15,2021.

PaymentoftheinterestonanyBondshallbemadetothePersonappearingonthebondregistrationbooksoftheBondRegistrarastheBondholderthereofasofthecloseofbusinessontheRecordDate,suchinteresttobepaidbythePayingAgenttosuchBondholder(i)bycheckmailedbyfirstclassmailontheInterestPaymentDate,tosuchBondholder’saddressasitappearsontheregistrationbooksoratsuchotheraddressashasbeenfurnishedtotheBondRegistrarasprovidedbelow,inwritingbysuchBondholdernotlaterthantheRecordDate,or(ii)uponwrittenrequestatleastthreeBusinessDayspriortotheapplicableRecordDateoftheBondholderofBondsaggregatingnotlessthan$1,000,000inprincipalamountofsuchBonds,bywiretransferinimmediatelyavailablefundsatanaccountmaintainedintheUnitedStatesatsuchwireaddressassuchBondholdershallspecifyinitswrittennotice(anysuchwrittenrequestshallremainineffectuntilrescindedinwritingbysuchBondholder);except,ineachcase,thatifandtotheextentthatthereshallbeadefaultinthepaymentoftheinterestdueonsuchInterestPaymentDate,suchdefaultedinterestrateshallbetherateontheBondsonthedaybeforesuchdefaultoccurredandsuchdefaultedinterestshallbepaidtotheBondholderinwhosenameanysuchBondsare

registeredatthecloseofbusinessonthefifthBusinessDaynextprecedingthedateofpaymentofsuchdefaultedinterest.Boththeprincipalofandpremium,ifany,ontheBondsshallbepayableuponsurrenderthereofinlawfulmoneyoftheUnitedStatesofAmericaattheCorporateTrustOfficeoftheTrustee.

Inthemannerhereinafterprovided,thetermoftheBondswillbedividedintoconsecutiveInterestRatePeriods,duringeachofwhichtheBondsshallbearinterestatanIndexInterestRate,aSIFMAInterestRate,aDailyInterestRate,aWeeklyInterestRateoraTermInterestRate.TheinitialInterestRatePeriodfortheBondsshallbetheTermInterestRatePeriod.TheinitialTermInterestRatePeriodfortheBondsshallendonJuly31,2030.TheinterestratefortheinitialTermInterestRatePeriodshallbe4.75%perannum.ThePrincipalPaymentDatefortheBondsisOctober15,2040.

(B)(I)DeterminationofIndexInterestRate.DuringeachIndexInterestRatePeriod,theBondsshallbearinterestattheIndexInterestRate.TheApplicableSpreadforeachIndexInterestRatePeriodshallbedeterminedbytheRemarketingAgentonorpriortotheConversionDateinaccordancewiththedefinitionthereof.TheRemarketingAgentshallfurnishsuchApplicableSpreadsodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthantheConversionDate.TheIndexInterestRateshallbedeterminedbytheCalculationAgentatorbefore12:00noon(NewYorkCitytime)oneachResetDate.TheCalculationAgentshallfurnisheachIndexInterestRatesodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthansuchResetDate.UponthewrittenrequestofanyBondholder,thePayingAgentshallconfirmtheIndexInterestRatethenineffect(totheextentavailabletoit).

AllpercentagesresultingfromanystepinthecalculationofinterestontheBondswhileinanIndexInterestRatePeriodwillberounded,ifnecessary,tothenearestten-thousandthofapercentagepoint(i.e.,tofourdecimalplaces)withfivehundredthousandthsofapercentagepointroundedupward,andalldollaramountsusedinorresultingfromsuchcalculationofinterestontheBondswhileinanIndexInterestRatePeriodwillberoundedtothenearestcent(withone-halfcentbeingroundedupward).

(II)AdjustmenttoIndexInterestRatePeriodandNoticeThereof.TheBorrowermayelectthattheInterestRatePeriodfortheBondsshallbeanIndexInterestRatePerioduponconsultationwithBondCounselastotheeffect,ifany,oftheproposedelectionorconversion(unlesssuchIndexInterestRatePeriodfollowsanIndexInterestRatePeriod,inwhichcaseconsultationshallnotberequired)andbywrittennoticetotheTrustee,theCalculationAgent,andtheRemarketingAgent.Suchnotice(a)shallspecifythedateonwhichtheBondsshallbepurchasedpursuanttoSection4.06hereof,whichdateshallbe(1)withrespecttoconversionfromaVariableInterestRatePeriod,thefirstBusinessDayofamonthnotlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice,(2)withrespecttoaconversionfromaSIFMAInterestRatePeriodoranotherIndexInterestRatePeriod,theBusinessDaynextsucceedingthelastdayoftheSIFMAInterestRatePeriodorthethen-currentIndexInterestRatePeriod,asapplicable,oraBusinessDaymeetingtherequirementsofSection2.03(B)(III)orSection2.03(C)(III),asapplicable,and,ineachcase,notlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice,or(3)withrespecttoconversionfromaTermInterestRatePeriod,theBusinessDaynextsucceedingthelastdayofsuchInterestRatePeriodandnotlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeof

suchnotice;(b)shallstatewhetheraLetterofCreditshallsecuretheBondsduringtheIndexInterestRatePeriodand,ifso,statethenameoftheBank;(c)shallstatethataRatingLettershallbedeliveredtotheTrusteeatleastfive(5)calendardayspriortothecommencementoftheIndexInterestRatePeriod;(d)ifapplicable,shallbeaccompaniedbyanexecutedcopyoftheContinuingDisclosureUndertakingtobeineffectwithrespecttosuchIndexInterestRatePeriod;and(e)shallprovidetheinformationdescribedinSection2.03(D)(III)(vi).NolaterthanthesecondBusinessDaypriortotheproposedConversionDateoratanyearliertime,astheRemarketingAgentortheTrusteemayrequestfromtheBorrower,theBorrower,bywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent,shalldeterminethedurationoftheIndexInterestRatePeriod(whichmaybe(i)anyperiodof(a)oneyearor(b)anyintegralmultipleofoneyear,exceptthatintheeventsuchInterestRatePeriodendsonadaythatwouldcausetheimmediatesucceedingInterestRatePeriodtobeginonadaythatisnotaBusinessDay,thedurationofanysuchInterestRatePeriodmaybeadjustedtoallowtheeffectivedateforanysubsequentInterestRatePeriodtooccurontheimmediatefollowingBusinessDay,or(ii)theperiodoftimeremainingtothePrincipalPaymentDate).If,atleasttwenty(20)calendardayspriortothelastdayofanyIndexInterestRatePeriod,theBorrowershallnothaveelectedthattheBondsbearinterestatanIndexInterestRate,aSIFMAInterestRate,aVariableInterestRateoraTermInterestRateduringthenextsucceedingInterestRatePeriod,thenextsucceedingInterestRatePeriodshallbeanIndexInterestRatePeriodofthesamedurationastheIndexInterestRatePeriodcurrentlyineffect,or,ifless,untilthePrincipalPaymentDate.

IntheeventtheBorrowerdoesnotconfirmtheproposedIndexInterestRate,theBondsshallconverttoaWeeklyInterestRatePeriodandtheinterestrateineffectontheBondsbeginningontheapplicableeffectivedateshallbeapercentageperannumequaltotheSIFMAIndexplus15basispointstoberesetinthesamemannerastheWeeklyInterestRateisreset,asprovidedinSection2.03(D)(I)hereof,untiltheBondsareconvertedtoanotherInterestRatePeriod.

(III)ConversionfromIndexInterestRatePeriodPriortoIndexTenderDate.DuringanyIndexInterestRatePeriod,theBorrowermayelecttochangetheInterestRatePeriodoftheBondstoanotherInterestRatePeriodonanydateonwhichtheBondsaresubjecttooptionalredemptionpursuanttoSection4.01(3),uponconsultationwithBondCounselastotheeffect,ifany,oftheproposedelectionorconversion(unlesssuchIndexInterestRatePeriodisconvertedtoanotherIndexInterestRatePeriod,inwhichcaseconsultationshallnotberequired)andbywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent.IftheBondsarenotsuccessfullyremarketedonthedatethenewInterestRatePeriodwastohavebecomeeffective,theBondsshallnotbesubjecttomandatorypurchasepursuanttoSection4.06hereof,theBondsshallcontinuetobearinterestattheIndexInterestRateinthecurrentInterestRatePeriod,andsuchBondsshallremainsubjecttomandatorypurchaseontheIndexTenderDateforsuchcurrentInterestRatePeriod.

(C)(1)DeterminationofSIFMAInterestRate.DuringeachSIFMAInterestRatePeriod,theBondsshallbearinterestattheSIFMAInterestRate.TheApplicableSpreadforeachSIFMAInterestRatePeriodshallbedeterminedbytheRemarketingAgentonorpriortotheConversionDateinaccordancewiththedefinitionthereof.TheRemarketingAgentshallfurnishsuchApplicableSpreadsodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthantheConversionDate.DuringtheSIFMAInterestRatePeriod,theCalculationAgentshallestablishtheSIFMAIndexby4:00p.m.oneachWednesdayor,ifsuchWednesdayisnota

BusinessDay,theBusinessDaynextprecedingsuchWednesday.TheSIFMAInterestRateshallbedeterminedbytheCalculationAgentatorbefore12:00noon(NewYorkCitytime)oneachResetDate.TheCalculationAgentshallfurnisheachSIFMAInterestRatesodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthansuchResetDate.UponthewrittenrequestofanyBondholder,thePayingAgentshallconfirmtheSIFMAInterestRatethenineffect.

AllpercentagesresultingfromanystepinthecalculationofinterestontheBondswhileinaSIFMAInterestRatePeriodwillberounded;ifnecessary,tothenearestten-thousandthofapercentagepoint(i.e.,tofourdecimalplaces)withfivehundredthousandthsofapercentagepointroundedupward,andalldollaramountsusedinorresultingfromsuchcalculationofinterestontheBondswhileinaSIFMAInterestRatePeriodwillberoundedtothenearestcent(withone-halfcentbeingroundedupward).

(II)AdjustmenttoSIFMAInterestRatePeriodandNoticeThereof.TheBorrowermayelectthattheInterestRatePeriodfortheBondsshallbeaSIFMAInterestRatePerioduponconsultationwithBondCounselastotheeffect,ifany,oftheproposedelectionorconversion(unlesssuchSIFMAInterestRatePeriodfollowsaSIFMAInterestRatePeriod,inwhichcaseconsultationshallnotberequired)andbywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent.Suchnotice(a)shallspecifythedateonwhichtheBondsshallbepurchasedpursuanttoSection4.06hereof,whichdateshallbe(1)withrespecttoconversionfromaVariableInterestRatePeriod,thefirstBusinessDayofamonthnotlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice,(2)withrespecttoconversionfromanIndexInterestRatePeriodoranotherSIFMAInterestRatePeriod,theBusinessDaynextsucceedingthelastdayofthethen-currentSIFMAInterestRatePeriodortheIndexInterestRatePeriod,asapplicable,oraBusinessDaymeetingtherequirementsofSection2.03(B)(III)orSection2.03(C)(III),asapplicable,and,ineachcase,notlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice,or(3)withrespecttoconversionfromaTermInterestRatePeriod,theBusinessDaynextsucceedingthelastdayofsuchInterestRatePeriodandnotlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice;(b)shallstatewhetheraLetterofCreditshallsecuretheBondsduringtheSIFMAInterestRatePeriodand,ifso,statethenameoftheBank;(c)shallstatethataRatingLettershallbedeliveredtotheTrusteeatleastfive(5)calendardayspriortothecommencementoftheSIFMAInterestRatePeriod;(d)ifapplicable,shallbeaccompaniedbyanexecutedcopyoftheContinuingDisclosureUndertakingtobeineffectwithrespecttosuchSIFMAInterestRatePeriod;and(e)shallprovidetheinformationdescribedinSection2.03(D)(III)(vi).NolaterthanthesecondBusinessDaypriortotheproposedConversionDateoratanyearliertime,astheRemarketingAgentortheTrusteemayrequestfromtheBorrower,theBorrower,bywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent,shalldeterminethedurationoftheSIFMAInterestRatePeriod(whichmaybe(i)anyperiodof(a)oneyearor(b)anyintegralmultipleofoneyear,exceptthatintheeventsuchInterestRatePeriodendsonadaythatwouldcausetheimmediatesucceedingInterestRatePeriodtobeginonadaythatisnotaBusinessDay,thedurationofanysuchInterestRatePeriodmaybeadjustedtoallowtheeffectivedateforanysubsequentInterestRatePeriodtooccurontheimmediatefollowingBusinessDay,or(ii)theperiodoftimeremainingtothePrincipalPaymentDate).If,atleasttwenty(20)calendardayspriortothelastdayofanySIFMAInterestRatePeriod,theBorrowershallnothaveelectedthattheBondsbearinterestataSIFMAInterestRate,anIndexInterestRate,aVariableInterestRateoraTermInterestRateduringthenextsucceedingInterestRatePeriod,thenextsucceedingInterestRatePeriodshallbeaSIFMAInterestRatePeriodofthesamedurationastheSIFMAInterestRatePeriodcurrentlyineffect,or,ifless,untilthePrincipalPaymentDate.

IntheeventtheBorrowerdoesnotconfirmtheproposedSIFMAInterestRate,theBondsshallconverttoaWeeklyInterestRatePeriodandtheinterestrateineffectontheBondsbeginningontheapplicableeffectivedateshallbeapercentageperannumequaltotheSIFMAIndexplus15basispointstoberesetinthesamemannerastheWeeklyInterestRateisreset,asprovidedinSection2.03(D)(I)hereof,untiltheBondsareconvertedtoanotherInterestRatePeriod.

(III)ConversionfromSIFMAInterestRatePeriodPriortoSIFMATenderDate.DuringanySIFMAInterestRatePeriod,theBorrowermayelecttochangetheInterestRatePeriodoftheBondstoanotherInterestRatePeriodonanydateonwhichtheBondsaresubjecttooptionalredemptionpursuanttoSection4.01(4),uponconsultationwithBondCounselastotheeffect,ifany,oftheproposedelectionorconversion(unlesssuchSIFMAInterestRatePeriodisconvertedtoanotherSIFMAInterestRatePeriod,inwhichcaseconsultationshallnotberequired)andbywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent.IftheBondsarenotsuccessfullyremarketedonthedatethenewInterestRatePeriodwastohavebecomeeffective,theBondsshallnotbesubjecttomandatorypurchasepursuanttoSection4.06hereof,theBondsshallcontinuetobearinterestattheSIFMAInterestRateinthecurrentInterestRatePeriod,andsuchBondsshallremainsubjecttomandatorypurchaseontheSIFMATenderDateforsuchcurrentInterestRatePeriod.

(D)(I)DeterminationofDailyInterestRateandWeeklyInterestRate.DuringeachDailyInterestRatePeriod,theBondsshallbearinterestattheDailyInterestRate,whichshallbedeterminedbytheRemarketingAgentnotlaterthan9:30a.m.(NewYorkCitytime)oneachBusinessDayduringsuchDailyInterestRatePeriodtotakeeffectonthenextsucceedingBusinessDay;provided, however,thatifthethencurrentInterestRatePeriodisanIndexInterestRatePeriod,aSIFMAInterestRatePeriod,aWeeklyInterestRatePeriodoraTermInterestRatePeriod,theDailyInterestRatefortheDailyInterestRatePeriodsucceedingsuchIndexInterestRatePeriod,SIFMAInterestRatePeriod,WeeklyInterestRatePeriodorTermInterestRatePeriod,asapplicable,shallbedeterminednotlaterthantheBusinessDaynextprecedingtheeffectivedateofsuchDailyInterestRatePeriod.DuringeachWeeklyInterestRatePeriod,theBondsshallbearinterestattheWeeklyInterestRate,whichshallbedeterminedbytheRemarketingAgentnotlaterthan12:00noon(NewYorkCitytime)onWednesdayofeachweek(orby12:00noon(NewYorkCitytime)onthenextsucceedingBusinessDayifsuchWednesdayisnotaBusinessDay)duringsuchWeeklyInterestRatePeriodfortheweekcommencingonthatnextsucceedingThursday(unlesssuchWeeklyInterestRateisdeterminedonthenextsucceedingBusinessDayifWednesdayisnotaBusinessDay,inwhichcaseitshallbeeffectiveonthedayofsuchdetermination);provided, however,thatifthethencurrentInterestRatePeriodisanIndexInterestRatePeriod,aSIFMAInterestRatePeriod,aDailyInterestRatePeriodoraTermInterestRatePeriod,thefirstWeeklyInterestRatefortheWeeklyInterestRatePeriodsucceedingsuchIndexInterestRatePeriod,SIFMAInterestRatePeriod,DailyInterestRatePeriodorTermInterestRatePeriod,asapplicable,shallbedeterminednotlaterthantheBusinessDaynextprecedingtheeffectivedateofsuchWeeklyInterestRatePeriod.TheVariableInterestRateshallbetheinterestratedeterminedbytheRemarketingAgent(onthebasisofexaminationofobligationscomparabletotheBondsknownbytheRemarketingAgenttohavebeenpricedor

tradedunderthenprevailingmarketconditions)tobetheminimuminterestratewhich,ifbornebytheBonds,wouldenabletheRemarketingAgenttoselltheBondsontheeffectivedateofsuchVariableInterestRatePeriodatapriceequaltotheprincipalamountthereofplusaccruedinterest;provided,however,thatifforanyreasontheVariableInterestRatecannotbedetermined,noRemarketingAgentshallbeservingortheratedeterminedisheldtobeinvalidorunenforceable,theDailyInterestRateforthenextsucceedingBusinessDayandthereaftershallremainatthethen-existingDailyInterestRate,andtheWeeklyInterestRateforthenextsucceedingWeeklyInterestRatePeriodshallremainatthethen-existingWeeklyInterestRate,andthereaftertheWeeklyInterestRateshallbetheSIFMAIndexplus15basispoints.ThefirstDailyInterestRatedeterminedforeachDailyInterestRatePeriodshallapplytotheperiodcommencingonthefirstdayofsuchDailyInterestRatePeriodandendingonthenextsucceedingBusinessDay.Thereafter,eachDailyInterestRateshallapplytotheperiodcommencingoneachBusinessDayandendingonthenextsucceedingBusinessDay.ThefirstWeeklyInterestRatedeterminedforeachWeeklyInterestRatePeriodshallapplytotheperiodcommencingonthefirstdayofsuchWeeklyInterestRatePeriodandendingonthenextsucceedingWednesday.Thereafter,eachWeeklyInterestRateshallapplytotheperiodcommencingonThursdayandendingonthenextsucceedingWednesday,unlesssuchWeeklyInterestRatePeriodshall(i)beginonadayotherthanThursday,inwhicheventtheWeeklyInterestRateforsuchWeeklyInterestRatePeriodshallapplytotheperiodcommencingonsuchdateandendingonthesucceedingWednesdayor(ii)endonadayotherthanWednesday,inwhicheventthelastWeeklyInterestRateforsuchWeeklyInterestRatePeriodshallapplytotheperiodcommencingontheThursdayprecedingthelastdayofsuchWeeklyInterestRatePeriodandendingonsuchlastday.

(II)AdjustmenttoDailyInterestRatePeriodorWeeklyInterestRatePeriod.TheBorrowermayelecttoconverttheInterestRatePeriodfortheBonds(i)fromaWeeklyInterestRatePeriod,IndexInterestRatePeriod,SIFMAInterestRatePeriodoraTermInterestRatePeriodtoaDailyInterestRatePeriodor(ii)fromaDailyInterestRatePeriod,IndexInterestRatePeriod,SIFMAInterestRatePeriodoraTermInterestRatePeriodtoaWeeklyInterestRatePeriod,ineachcaseuponconsultationwithBondCounselastotheeffect,ifany,oftheproposedelectionorconversion(unlesssuchDailyInterestRatePeriodorWeeklyInterestRatePeriod,asapplicable,followsaDailyInterestRatePeriodoraWeeklyInterestRatePeriod,inwhichcaseconsultationshallnotberequired)andbywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent.SuchnoticeshallincludetheinformationsetforthinSection2.03(D)(III)andshallspecifytheConversionDate,whichshallbetheBusinessDaynextsucceedingthelastdayofanyDailyInterestRatePeriod,WeeklyInterestRatePeriod,SIFMAInterestRatePeriod,IndexInterestRatePeriodorTermInterestRatePeriod,asapplicable,oraBusinessDaymeetingtherequirementsofSection2.03(B)(III)orSection2.03(C)(III),asapplicable,and,ineachcase,notlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice,(iii)shallstatethataRatingLettershallbedeliveredtotheTrusteeatleastfive(5)calendardayspriortotheConversionDate,(iv)shallstatewhetheraLetterofCreditshallsecuretheBondsduringtheVariableInterestRatePeriodand,ifso,statethenameoftheBank,and(v)ifapplicable,shallbeaccompaniedbyanexecutedcopyoftheContinuingDisclosureUndertakingtobeineffectwithrespecttosuchVariableInterestRatePeriod.

(III)NoticeofAdjustmenttoDailyInterestRatePeriodorWeeklyInterestRatePeriod.TheTrusteeshallgivenoticebymailofaconversiontoaVariableInterestRatePeriodtotheBondholders,theBank,ifany,theRemarketingAgentandtheBorrowernotlessthanfifteen

(15)calendardayspriortotheConversionDateofsuchVariableInterestRatePeriod.Suchnoticeshallstate(i)thattheinterestrateontheBondswillbeconvertedtoaDailyInterestRateoraWeeklyInterestRate,asapplicable,(ii)theeffectivedateofsuchDailyInterestRatePeriodorWeeklyInterestRatePeriod,asapplicable,(iii)thattheBondswillbepurchasedonsuchConversionDate,pursuanttoSection4.06hereof,(iv)theproceduresforthepurchasedescribedin(iii)above,(v)thataRatingLettershallbedeliveredtotheTrusteeatleastfive(5)calendardayspriortotheConversionDateand(vi)theprincipalamountandtheInterestRatePeriodoftheBondstobeconverted,including,ifapplicable,theCUSIPnumberorletterandnumericaldesignatorofsuchBonds.

(E)(I)DeterminationofTermInterestRate.DuringeachTermInterestRatePeriod,theBondsshallbearinterestattheTermInterestRate,whichshallbedeterminedbytheRemarketingAgentnotlaterthan4:00p.m.(NewYorkCitytime)ontheBusinessDayprecedingthefirstdayofsuchTermInterestRatePeriod.TheTermInterestRateshallbetheratedeterminedbytheRemarketingAgent(onthebasisofexaminationofobligationscomparabletotheBondsknowntotheRemarketingAgenttohavebeenpricedortradedunderthenprevailingmarketconditions)tobetheminimuminterestratewhich,ifbornebytheBonds,wouldenabletheRemarketingAgenttosellsuchBondsonthefirstdayofsuchTermInterestRatePeriodatapriceequaltotheprincipalamountthereof;provided, however,thatifforanyreasontheTermInterestRatecannotbedeterminedforanyTermInterestRatePeriod,theinterestrateonsuchBondsshallconverttoaWeeklyInterestRateduringaWeeklyInterestRatePeriodunlessthethenexistingInterestRatePeriodisanIndexInterestRatePeriodoraSIFMAInterestRatePeriod,asapplicable,inwhichcasetheBondsshallbearinterestinaccordancewithSection2.03(B)(II)orSection2.03(C)(II),asapplicable.

(II)AdjustmenttoTermInterestRatePeriod.Exceptwithrespecttoa3-MonthTermInterestRatePeriodthatimmediatelyfollowsanother3-MonthTermInterestRatePeriodwhennonoticeshallberequired,theBorrower,bywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent,mayelectthattheInterestRatePeriodfortheBondsshallbeaTermInterestRatePeriod.Suchnotice(a)shallspecifytheConversionDateonwhichtheBondsshallbepurchasedpursuanttoSection4.06hereofwhichdateshallbe(1)withrespecttoconversionfromaVariableInterestRatePeriod,thefirstBusinessDayofamonthnotlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice,(2)theBusinessDaynextsucceedingthelastdayofthethen-currentTermInterestRatePeriodandnotlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice;or(3)withrespecttoconversionfromanIndexInterestRatePeriodoraSIFMAInterestRatePeriod,theBusinessDaynextsucceedingthelastdayofsuchInterestRatePeriodoraBusinessDaymeetingtherequirementsofSection2.03(B)(III)orSection2.03(C)(III),asapplicable,and,ineachcase,notlessthantwenty(20)calendardaysfollowingthedateofreceiptbytheTrusteeofsuchnotice;(b)shallstatewhetheraLetterofCreditshallsecuretheBondsduringtheTermInterestRatePeriodand,ifso,statethenameoftheBank;(c)shallstatethataRatingLettershallbedeliveredtotheTrusteeatleastfive(5)calendardayspriortotheConversionDate;(d)ifapplicable,shallbeaccompaniedbyanexecutedcopyoftheContinuingDisclosureUndertakingtobeineffectwithrespecttosuchTermInterestRatePeriod;(e)shallprovidetheinformationdescribedinSection2.03(D)(III)(vi)above;and(f)shallstatewhethertheBorrowerexpectstoprovideanalternateredemptionschedulepursuanttoSection4.01(8)herein.NolaterthanthesecondBusinessDaypriortotheproposedConversionDateoratanyearliertime,asthe

RemarketingAgentortheTrusteemayrequestfromtheBorrower,theBorrowershall,uponconsultationwithBondCounselastotheeffect,ifany,oftheproposedconversion(unlesssuchTermInterestRatePeriodfollowsaTermInterestRatePeriod,inwhichcaseconsultationshallnotberequired)andbywrittennoticetotheTrustee,theCalculationAgentandtheRemarketingAgent,determinethedurationoftheTermInterestRatePeriod(whichmaybe(i)anyperiodof(a)threemonths,(b)oneyear,or(c)anyintegralmultipleofoneyear,exceptthatintheeventsuchInterestRatePeriodendsonadaythatwouldcausetheimmediatesucceedingInterestRatePeriodtobeginonadaythatisnotaBusinessDay,thedurationofanysuchInterestRatePeriodmaybeadjustedtoallowtheConversionDateforanysubsequentInterestRatePeriodtooccurontheimmediatelyfollowingBusinessDay,or(ii)theperiodoftimeremainingtothePrincipalPaymentDate).If,atleasttwenty(20)calendardayspriortothelastdayofanyTermInterestRatePeriod,theBorrowershallnothaveelectedthattheBondsbearinterestataVariableInterestRate,anIndexInterestRate,aSIFMAInterestRateoraTermInterestRateduringthenextsucceedingInterestRatePeriod,thenextsucceedingInterestRatePeriodshallbeaTermInterestRatePeriodofthesamedurationastheTermInterestRatePeriodcurrentlyineffect,or,ifless,untilthePrincipalPaymentDate.

(III)NoticeofAdjustmenttoTermInterestRatePeriod.Exceptwithrespecttoa3-MonthTermInterestRatePeriodthatimmediatelyfollowsanother3-MonthTermInterestRatePeriodwhennonoticeshallberequired,theTrusteeshallgivenoticebymailofeachTermInterestRatePeriodtotheBondholders,theBank,ifany,theRemarketingAgentandtheBorrowernotlessthanfifteen(15)calendardayspriortotheeffectivedateofsuchTermInterestRatePeriod.Suchnoticeshallstate(i)thattheinterestrateontheBondswillbeconvertedtoorcontinuetobeaTermInterestRate,(ii)theConversionDatetosuchTermInterestRatePeriod,(iii)thattheBondswillbepurchasedonsuchConversionDatepursuanttoSection4.06hereof,(iv)whethertheBondswillbesecuredbyaLetterofCreditand,ifso,thenameoftheBank,(v)theproceduresofsuchpurchasedescribedin(iii)aboveand(vi)theinformationdescribedinSection2.03(D)(III)(vi).

(F)ThedeterminationoftheinterestrateontheBondsbytheRemarketingAgentortheCalculationAgent,asapplicable,shallbeconclusiveandbindingupontheBondholdersofsuchBonds,theAuthority,theTenderAgent,theBorrower,theBank,ifany,andtheTrustee.

TheBondsshallbesubjecttoredemptionandpurchaseasprovidedinSections4.01and4.06hereof.

(G)PartialConversions.

(I)General.BondsmaybeconvertedinwholeorinparttoanyInterestRatePeriodsubjecttothetermsofthisIndenture.IntheeventtheBondsarein(oraretobeconvertedto)morethanoneInterestRatePeriod,theprovisionshereinrelatingtoBondsinaparticularInterestRatePeriod(ortobeconvertedtoaparticularInterestRatePeriod)shallapplyonlytotheBondsin(ortobeconvertedto)suchInterestRatePeriodand,wherenecessaryorappropriate,anyreferenceinthisIndenturetotheBondsshallbeconstruedtomeantheBondsin(ortobeconvertedto)suchInterestRatePeriod.ThisprovisionshallnotapplytoanyIndexInterestRatePeriodorSIFMAInterestRatePeriod.

(II)Selection.IntheeventofanypartialconversionoftheBondstoanewInterestRatePeriod,theBondstobeconvertedshallbeselectedbytheTrusteefromtheBondsintheInterestRatePeriodasdirectedinwritingbytheBorrower.TheparticularBonds(orportionsthereof)intheInterestRatePeriodtobeconvertedshallbeselectediftheBondsarelistedonanynationalsecuritiesexchange,incompliancewiththerequirementsoftheprincipalnationalsecuritiesexchangeonwhichtheBondsarelistedorbylotbytheTrusteefromalltheBondsintheInterestRatePeriodfromwhichBondsaretobeconverted.TheprincipalamountofBondstobeconvertedshallbedeterminedsothatalloftheBondsshallbeinAuthorizedDenominations.Bonds(orportionsthereof)shallbeselectediftheBondsarelistedonanynationalsecuritiesexchange,incompliancewiththerequirementsoftheprincipalnationalsecuritiesexchangeonwhichtheBondsarelistedorbylotbytheTrustee.SuchselectionshallbeconclusiveandbindinguponanyaffectedBondholder,theBorrower,theGuarantor,theRemarketingAgent,theAuthorityandtheBank,ifany,andtheselectionoftheBondstobeconvertedshalloccurpriortothedatenoticeofmandatorytenderissentbytheTrusteetotheBondholderspursuanttoSection4.06hereof.

(H)Amendments.TheprovisionsofthisIndenturemaybeamendedtopermitorfacilitatepartialconversionsoftheBondswithoutBondholderconsentinaccordancewithSection9.01(B)hereof.

Section2.04.DemandPurchaseofBonds.

(A)PurchaseofBondsDuringVariableInterestRatePeriod.DuringanyVariableInterestRatePeriod,theBondsorportionsthereofinAuthorizedDenominationsshallbepurchasedattheoptionoftheBondholderthereof,or,withrespecttoBook-EntryBonds,attheoptionoftheDirectParticipantwithanownershipinterestinBook-EntryBonds,onanyBusinessDay,atapriceof100%oftheprincipalamountthereof,plusaccruedinteresttothePurchaseDate,upon(i)deliverytotheTrusteeandtheTenderAgent,attheirrespectiveCorporateTrustOfficesofanirrevocablenoticeinwriting(a“TenderNotice”)by10:30a.m.(NewYorkCitytime)inthecaseofBondsinaDailyInterestRatePeriod,or3:00p.m.(NewYorkCitytime)inthecaseofBondsinaWeeklyInterestRatePeriod,onanyBusinessDay,whichstatesthenameoftheregisteredBondholderofsuchBondsortheDirectParticipantforsuchBondsandsuchDirectParticipant’saccountnumber,asapplicable,paymentinstructionswithrespecttothePurchasePriceofsuchBonds,theprincipalamountofsuchBondsorportionsthereofinAuthorizedDenominationsbeingtenderedforpurchase,theCUSIPnumberofsuchBondsandthedateonwhichthesamearetobepurchased(whichdate,inthecaseofBondsbearinginterestataDailyInterestRate,shallbeanyBusinessDayand,inthecaseofBondsinaWeeklyInterestRatePeriod,shallbeaBusinessDaynotpriortotheseventhdaynextsucceedingthedateofthedeliveryofsuchTenderNoticetotheTrusteeandtheTenderAgent),and(ii)(a)iftheBondsarenotBook-EntryBonds,deliveryofsuchBondstotheTenderAgentatitsCorporateTrustOffice,accompaniedbyaninstrumentoftransferthereofinformsatisfactorytotheTenderAgent,executedinblankbytheBondholderthereofwiththesignatureguaranteedinaccordancewiththeguidelinessetforthbyoneofthenationallyrecognizedmedallionsignatureprograms,atorpriorto12:30p.m.(NewYorkCitytime)onthePurchaseDatespecifiedintheTenderNotice,or(b)iftheBondsareBook-EntryBonds,confirmationbyDTC(obtainedbytheDirectParticipantoftheBook-EntryBondsbeingtenderedforpurchasepursuanttothisSection2.04)thatsuchDirectParticipanthasanownershipinterestinsuchBook-EntryBondsatleastequaltotheamount

specifiedinsuchTenderNotice,andofthetransferontheregistrationbooksofDTCofthebeneficialownershipinterestinsuchBook-EntryBondstotheaccountoftheTrustee(ortotheaccountofaDirectParticipantactingonbehalfoftheTrustee).

(B)IfmoneyssufficienttopaythePurchasePriceofsuchBondstobepurchasedpursuanttoSection2.04(A)hereofshallbeheldbytheTrusteeonthedatesuchBondsaretobepurchased,anysuchBondstobesopurchasedwhicharenotdeliveredbytheBondholdersthereoftotheTenderAgentortransferredontheregistrationbooksofDTC,asapplicable,onthedatespecifiedforpurchasethereofwillbedeemedtohavebeendeliveredforpurchase,ortransferredontheregistrationbooksofDTC,asapplicable,onsuchdateandtohavebeenpurchased.TheformerBondholdersofsuchBonds,orDirectParticipantswithrespecttoBook-EntryBonds,willthereafterhavenorightswithrespecttosuchBondsexcepttoreceivepaymentofthePurchasePricethereforuponsurrenderofsuchBondstotheTenderAgentorthetransfer,ontheregistrationbooksofDTC,ofthebeneficialinterestinsuchBook-EntryBonds.

Section2.05.ExecutionofBonds.TheBondsshallbeexecutedonbehalfoftheAuthoritywiththemanualorfacsimilesignatureofitsChairperson(orotherofficeroftheAuthoritysoauthorized)andshallhaveimpressedorimprintedthereontheofficialsealoftheAuthorityorafacsimilethereofandshallbeattestedbythemanualorfacsimilesignatureofitsSecretaryoranyAssistantSecretary.Allauthorizedfacsimilesignaturesshallhavethesameforceandeffectasifmanuallysigned.IncaseanyofficialwhosesignatureorafacsimileofwhosesignatureshallappearontheBondsshallceasetobesuchofficialbeforethedeliveryofsuchBonds,suchsignatureorsuchfacsimileshallneverthelessbevalidandsufficientforallpurposes,thesameasifsuchofficialhadremainedinofficeuntildelivery.TheBondsmaybesignedonbehalfoftheAuthoritybysuchpersonswho,atthetimeoftheexecutionofsuchBonds,aredulyauthorizedorholdtheappropriateofficeoftheAuthority,althoughonthedateoftheBondssuchpersonswerenotsoauthorizedordidnotholdsuchoffices.

OnlysuchoftheBondsasshallbearthereonacertificateofauthenticationsubstantiallyintheformsetforthinExhibitA,withthemanualsignatureoftheTrusteeortheTenderAgentasauthenticatingagent,shallbevalidorobligatoryforanypurposeorentitledtothebenefitsofthisIndenture,andsuchcertificateoftheTrusteeorTenderAgentshallbeconclusiveevidencethattheBondssoauthenticatedhavebeendulyexecuted,authenticatedanddeliveredhereunderandareentitledtothebenefitsofthisIndenture.

Section2.06.TransferofBonds.AnyBondmay,inaccordancewithitsterms,betransferred,uponthebooksrequiredtobekeptpursuanttotheprovisionsofSection2.08hereof,bythePersoninwhosenameitisregistered,inpersonorbyitsdulyauthorizedattorney,uponsurrenderofsuchregisteredBondforcancellation,accompaniedbydeliveryofawritteninstrumentoftransfer,dulyexecutedinaformacceptabletotheTrustee.Exceptinthecaseofmandatoryoroptionaltenders,transferofaBondshallnotbepermittedbytheTrusteeduringtheperiodBondsareselectedforredemptionoraftertheRecordDatepriortothenextsucceedingInterestPaymentDate.

WheneveranyBondorBondsshallbesurrenderedfortransfer,theAuthorityshallexecuteandupontheRequestoftheAuthority,theTrusteeshallauthenticateanddeliveranewBondorBondsforalikeaggregateprincipalamountinAuthorizedDenominations.TheTrusteeshall

requiretheBondholderrequestingsuchtransfertopayanytaxorothergovernmentalchargerequiredtobepaidwithrespecttosuchtransfer.ThecostofprintingBondsandanyservicesrenderedorexpensesincurredbytheAuthorityortheTrusteeinconnectionwithanysuchtransfershallbepaidbytheBorrower.PriortoanytransferoftheBondsoutsideoftheBook-EntryOnlysystem(including,butnotlimitedto,theinitialtransferoutsidetheBook-EntryOnlysystem)thetransferorshallprovideorcausetobeprovidedtotheTrusteeallinformationnecessarytoallowtheTrusteetocomplywithanyapplicabletaxreportingobligations,includingwithoutlimitationanycostbasisreportingobligationsunderInternalRevenueCodeSection6045,asamended.TheTrusteeshallconclusivelyrelyontheinformationprovidedtoitandshallhavenoresponsibilitytoverifyorensuretheaccuracyofsuchinformation.

Section2.07.ExchangeofBonds.BondsmaybeexchangedattheCorporateTrustOfficeoftheTrusteeforalikeaggregateprincipalamountofBondsofotherAuthorizedDenominations.TheTrusteeshallrequiretheBondholderrequestingsuchexchangetopayanytaxorothergovernmentalchargerequiredtobepaidwithrespecttosuchexchange.ThecostofprintingBondsandanyservicesrenderedorexpensesincurredbytheAuthorityortheTrusteeinconnectionwithanysuchexchangeshallbepaidbytheBorrower.

Section2.08.BondRegistrar.TheTrusteeisherebyappointedastheinitialBondRegistrar.TheBondRegistrarwillkeeporcausetobekeptatitsCorporateTrustOfficesufficientbooksfortheregistrationandtransferoftheBonds,whichshallatalltimesbeopentoinspectionduringregularbusinesshoursbytheAuthorityuponreasonablenotice;and,uponpresentationforsuchpurpose,theBondRegistrarshall,undersuchreasonableregulationsasitmayprescribe,registerortransferorcausetoberegisteredortransferred,onsuchbooks,Bondsashereinbeforeprovided.InactinghereunderandinconnectionwiththeBonds,theBondRegistrarshallactsolelyasanagentoftheAuthority,andwillnottherebyassumeanyobligationstowardsorrelationshipofagencyortrustfororwithanyBondholder.

Section2.09.TemporaryBonds.TheBondsmaybeissuedintemporaryformexchangeablefordefinitiveBondswhenreadyfordelivery.AnytemporaryBondmaybeprinted,lithographedortypewritten,shallbeinanAuthorizedDenomination,shallbeinfullyregisteredformwithoutcouponsandmaycontainsuchreferencetoanyoftheprovisionsofthisIndentureasmaybeappropriate.EverytemporaryBondshallbeexecutedbytheAuthorityand,upontheRequestoftheAuthority,beauthenticatedbytheTrusteeuponthesameconditionsandinsubstantiallythesamemannerasthedefinitiveBonds.IftheAuthorityissuestemporaryBonds,itwillexecuteanddeliverdefinitiveBondsaspromptlythereafteraspracticable,andthereuponthetemporaryBondsmaybesurrendered,forcancellation,inexchangethereforattheCorporateTrustOfficeoftheTrusteeand,upontheRequestoftheAuthority,theTrusteeshallauthenticateanddeliverinexchangeforsuchtemporaryBondsanequalaggregateprincipalamountofdefinitiveBondsinAuthorizedDenominations.Untilsoexchanged,thetemporaryBondsshallbeentitledtothesamebenefitsunderthisIndentureasdefinitiveBondsauthenticatedanddeliveredhereunder.

Section2.10.BondsMutilated,Lost,DestroyedorStolen.IfanyBondshallbecomemutilated,theAuthority,attheexpenseoftheHolderofsaidBond,shallexecute,andupontheRequestoftheAuthority,theTrustee,attheexpenseoftheHolderofsaidBond,shallthereuponauthenticateanddeliver,anewBondofliketenorinexchangeandsubstitutionfortheBondso

mutilated,butonlyuponsurrendertotheTrusteeoftheBondsomutilated.EverymutilatedBondsosurrenderedtotheTrusteeshallbecanceledbyitand,uponwrittenrequest,deliveredtotheAuthority.IfanyBondshallbelost,destroyedorstolen,evidenceofsuchloss,destructionortheftmaybesubmittedtotheAuthorityandtheTrusteeand,ifsuchevidencebesatisfactorytobothandindemnityand/orsecuritysatisfactorytothemshallbegiven,theAuthority,attheexpenseoftheHolder,shallexecute,andupontheRequestoftheAuthority,theTrustee,attheexpenseoftheHolder,shallthereuponauthenticateanddeliver,anewBondofliketenorinlieuofandinsubstitutionfortheBondsolost,destroyedorstolen(orifanysuchBondshallhavematured,insteadofissuingasubstituteBond,theTrusteemaypaythesamewithoutsurrenderthereofuponreceiptofindemnityand/orsecuritysatisfactorytotheTrustee).TheAuthoritymayrequirepaymentbytheHolderofasumnotexceedingtheactualcostofpreparingeachnewBondissuedunderthisSectionandoftheexpenseswhichmaybeincurredbytheAuthorityandtheTrusteeinthepremises.If,afterthedeliveryofsuchnewBond,abonafidepurchaseroftheoriginalBondinlieuofwhichsuchnewBondwasissuedpresentsforpaymentorregistrationsuchoriginalBond,theTrusteeshallbeentitledtorecoversuchnewBondfromthepersontowhomitwasdeliveredoranypersontakingtherefrom,exceptabonafidepurchaser,andshallbeentitledtorecoveruponthesecurityand/orindemnityprovidedtherefortotheextentofanyloss,damage,costorexpenseincurredbytheTrusteeortheAuthorityinconnectiontherewith.AnyBondissuedundertheprovisionsofthisSectioninlieuofanyBondallegedtobelost,destroyedorstolenshallconstituteanoriginaladditionalcontractualobligationonthepartoftheAuthoritywhetherornottheBondsoallegedtobelost,destroyedorstolenbeatanytimeenforceablebyanyone,andshallbeentitledtothebenefitsofthisIndenturewithallotherBondssecuredbythisIndenture.

Section2.11.Book-EntryOnlySystem.

(A)Exceptasotherwiseprovidedinsubsections(B)and(C)ofthisSection2.11,theBondsinitiallyauthenticatedanddeliveredhereundershallberegisteredinthenameofCede&Co.,asnomineeofDTC,orsuchothernomineeasDTCshallrequest.Paymentsofintereston,principalofandanypremiumonandthePurchasePriceof,theBondsshallbemadetotheaccountofCede&Co.oneachpaymentdateforprincipalorinterestonorPurchasePriceoftheBondsattheaddressindicatedforCede&Co.intheregistrationbooksmaintainedbytheBondRegistrarbytransferofimmediatelyavailablefunds.DTChasrepresentedtotheAuthoritythatitwillmaintainabook-entrysysteminrecordingownershipinterestsoftheDirectParticipantsandtheownershipinterestsofBeneficialOwnerswillberecordedthroughbookentriesontherecordsoftheDirectParticipants.

(B)TheBondsshallbeinitiallyissuedintheformofaseparatesingleauthenticatedfullyregisteredBondintheamountofeachseparatestatedmaturity.WithrespecttoBondssoregisteredinthenameofCede&Co.,theAuthority,theTrusteeandtheTenderAgent,ifany,shallhavenoresponsibilityorobligationtoanyDirectParticipant(withtheexceptionoftherightofDirectParticipantstodemandpurchaseofBondspursuanttoSection2.04hereof)ortoanyBeneficialOwnerofsuchBonds.Withoutlimitingtheimmediatelyprecedingsentence,theAuthority,theTrusteeandtheTenderAgent,ifany,shallhavenoresponsibilityorobligationwithrespectto(i)theaccuracyoftherecordsofDTC,Cede&Co.oranyDirectParticipantwithrespecttoanybeneficialownershipinterestintheBonds,(ii)thedeliverytoanyDirectParticipant,BeneficialOwnerorotherPerson,otherthanDTC,ofanynoticewithrespecttotheBonds,includinganynoticeofredemption,(iii)thepaymenttoanyDirectParticipant,BeneficialOwner

orotherPerson,otherthanDTC,ofanyamountwithrespecttotheprincipal,redemptionpriceorPurchasePriceof,orintereston,theBondsor(iv)anyconsentgivenorotheractiontakenbyDTCasHolderoftheBonds.TheAuthority,theTrusteeandtheTenderAgentmaytreatDTCas,anddeemDTCtobe,theabsoluteHolderofeachBondforallpurposeswhatsoever(withtheexceptionoftherightofDirectParticipantstodemandpurchaseofBondspursuanttoSection2.04hereof)including(butnotlimitedto)(i)paymentoftheprincipal,redemptionpriceorPurchasePriceof,andintereston,eachsuchBond,(ii)givingnoticesofconversionorredemptionandothermatterswithrespecttosuchBondsand(iii)registeringtransferswithrespecttosuchBonds.TheTrusteeshallpaytheprincipal,redemptionprice(includingpremium,ifany)orPurchasePriceof,andintereston,allBondsonlytoorupontheorderofDTC,andallsuchpaymentsshallbevalidandeffectivetofullysatisfyanddischargetheAuthority’sobligationswithrespecttosuchprincipal,redemptionpriceorPurchasePrice,andinterest,totheextentofthesumorsumssopaid.NoPersonotherthanDTCshallreceiveaBondevidencingtheobligationoftheAuthoritytomakepaymentsofprincipal,redemptionpriceorPurchasePriceof,andintereston,theBondspursuanttothisIndenture.UpondeliverybyDTCtotheTrusteeofwrittennoticetotheeffectthatDTChasdeterminedtosubstituteanewnomineeinplaceofCede&Co.,andsubjecttothetransferprovisionshereof,theword“Cede&Co.”inthisIndentureshallrefertosuchnewnomineeofDTC.AllnoticesandcommunicationstobegiventotheBondholdersandallpaymentstobemadetoBondholdersinrespectoftheBondsshallbegivenormadeonlytoorupontheorderoftheregisteredBondholders(whichshallbetheSecuritiesDepositoryforsuchglobalbondoritsnomineeinthecaseofaglobalbond).TherightsofbeneficialownersinanyglobalbondshallbeexercisedonlythroughtheSecuritiesDepositoryforsuchglobalbondsubjecttotheapplicablerulesandproceduresofsuchSecuritiesDepository.TheAuthority,theTrustee,theTenderAgentortheBondRegistrarmayrelyandshallbefullyprotectedinrelyinguponinformationfurnishedbytheSecuritiesDepositoryforsuchglobalbondwithrespecttoitsmembers,participantsandanybeneficialowners.

(C)(1)DTCmaydeterminetodiscontinueprovidingitsserviceswithrespecttotheBondsatanytimebygivingreasonablewrittennoticetotheAuthorityandtheTrusteeanddischargingitsresponsibilitieswithrespecttheretounderapplicablelaw.

(2)TheAuthority,initssolediscretionandwithouttheconsentofanyotherPerson,mayterminate,uponprovisionofnoticetotheTrustee,theBorrower,theRemarketingAgent,ifany,andtheTenderAgent,theservicesofDTCwithrespecttotheBondsiftheAuthoritydeterminesthatthecontinuationofthesystemofbook-entryonlytransfersthroughDTC(orasuccessorsecuritiesdepository)isnotinthebestinterestsoftheBeneficialOwnersoftheBondsorisburdensometotheAuthority.

(3)TheAuthorityshallterminatetheservicesofDTCwithrespecttotheBondsuponreceiptbytheAuthority,theTrustee,theBorrower,theRemarketingAgent,andtheTenderAgentofwrittennoticefromDTCtotheeffectthatDTChasreceivedwrittennoticefromDirectParticipantshavinginterests,asshownintherecordsofDTC,inanaggregateprincipalamountofnotlessthan50%oftheaggregateprincipalamountofthethenOutstandingBondstotheeffectthat:(i)DTCisunabletodischargeitsresponsibilitieswithrespecttosuchBonds,or(ii)acontinuationoftherequirementthatalloftheOutstandingBondsberegisteredintheregistrationbookskeptbytheTrusteeinthenameofCede&Co.,asnomineeofDTC,isnotinthebestinterestoftheBeneficialOwnersofsuchBonds.

(D)UpontheterminationoftheservicesofDTCwithrespecttotheBondspursuanttosubsection(C)(3)(ii)hereof,oruponthediscontinuanceorterminationoftheservicesofDTCwithrespecttotheBondspursuanttosubsection(C)(1),(C)(2)or(C)(3)(i)hereofafterwhichnosubstituteSecuritiesDepositorywillingtoundertakethefunctionsofDTChereundercanbefoundorwhich,intheopinionoftheAuthority,iswillingandabletoundertakesuchfunctionsuponreasonableandcustomaryterms,theBondsshallnolongerberestrictedtobeingregisteredintheregistrationbookskeptbytheTrusteeinthenameofCede&Co.asnomineeofDTC.Insuchevent,theAuthorityshallissueand,upontheRequestoftheAuthority,theTrusteeshalltransferandexchange,attheexpenseoftheBorrower,BondcertificatesasrequestedbyDTCorDirectParticipantsoflikeprincipalamountandmaturity,inAuthorizedDenominationstotheidentifiableBeneficialOwnersinreplacementofsuchBeneficialOwners’beneficialinterestsintheBonds.

(E)NotwithstandinganyotherprovisionofthisIndenturetothecontrary,solongasanyBondisregisteredinthenameofCede&Co.,asnomineeofDTC,allpaymentswithrespecttotheprincipal,redemptionpriceorPurchasePriceof,andintereston,suchBondandallnoticeswithrespecttosuchBondshallbemadeandgiven,respectively,toDTCasprovidedintheletterofrepresentationsoftheAuthorityaddressedtoDTCwithrespecttotheBonds(the“DTCLetterofRepresentations”).

(F)InconnectionwithanynoticeorothercommunicationtobeprovidedtoBondholderspursuanttothisIndenturebytheAuthority,theTenderAgentortheTrusteewithrespecttoanyconsentorotheractiontobetakenbyBondholders,theAuthority,theTenderAgentortheTrustee,asthecasemaybe,shallestablisharecorddateforsuchconsentorotheractionandgiveDTCnoticeofsuchrecorddatenotlessthan15calendardaysinadvanceofsuchrecorddatetotheextentpossible.

(G)Notwithstandinganyprovisionhereintothecontrary,theAuthorityandtheTrusteemayagreetoallowDTC,oritsnominee,Cede&Co.,tomakeanotationonanyBondredeemedinparttoreflect,forinformationalpurposesonly,theprincipalamountanddateofanysuchredemption.

(H)Notwithstandinganyprovisionhereintothecontrary,solongastheBondsaresubjecttoasystemofbook-entryonlytransferspursuanttothisSection,anyrequirementforthedeliveryofBondstotheTenderAgentinconnectionwithanoptionaltenderpursuanttoSection2.04hereoforamandatorytenderpursuanttoSection4.06hereofshallbedeemedsatisfieduponthetransfer,ontheregistrationbooksofDTC,ofthebeneficialownershipinterestsinsuchBondstenderedforpurchasetotheaccountoftheTrustee,oraDirectParticipantactingonbehalfofsuchTrustee.

(I)TheTrusteeshallhavenoobligationordutytomonitor,determineorinquireastocompliancewithanyrestrictionsontransferimposedunderthisIndentureorunderapplicablelawwithrespecttoanytransferofanyinterestinanyBond(includinganytransfersbetweenoramongtheSecuritiesDepositoryforsuchparticipants,membersorbeneficialownersinanyglobalsecurity)otherthantorequiredeliveryofsuchcertificatesandotherdocumentationorevidenceas

areexpresslyrequiredby,andtodosoifandwhenexpresslyrequiredby,thetermsofthisIndenture,andtoexaminethesametodeterminesubstantialcomplianceastoformwiththeexpressrequirementshereof.NeithertheTrusteenoranyofitsagentsshallhaveanyresponsibilityforanyactionstakenornottakenbytheSecuritiesDepositoryforsuchglobalbonds.

ARTICLE III

ISSUANCE OF BONDS; APPLICATION OF PROCEEDS

Section3.01.IssuanceoftheBonds.AtanytimeaftertheexecutionanddeliveryofthisIndentureorfromtimetotimethereafter,upontheexecutionoftheBondsbytheAuthorityanddeliverythereoftotheTrustee,ashereinaboveprovided,andwithoutanyfurtheractiononthepartoftheAuthority,theTrusteeshallauthenticateuponRequestoftheAuthority,anddelivertheBondsinanaggregateprincipalamountnotexceeding$225,000,000.

Section3.02.ApplicationofProceedsofBonds.TheproceedsreceivedbytheAuthorityfromthesaleoftheBondsshallbedepositedwiththeTrustee,whichshallforthwithtransfer(a)$135,000,000ofsuchproceedstotheIFA2010Trusteeand(b)thebalanceofsuchproceeds($90,000,000)totheCounty2010Trustee.

Section3.04. CostsofIssuanceFund.

TheTrusteedoesherebyestablishtheCostsofIssuanceFund(the“CostsofIssuanceFund”).AnyamountsreceivedbytheTrusteefromtheBorrower(notrepresentingproceedsfromthesaleoftheBonds)forthepaymentofCostsofIssuanceshallbedepositedbytheTrusteeintotheCostsofIssuanceFund.ThemoneysintheCostsofIssuanceFundshallbeheldbytheTrusteeintrustandappliedtothepaymentofCostsofIssuanceoftheBonds,uponarequisitionfiledwiththeTrustee,intheformattachedheretoasExhibitB,signedbyanAuthorizedRepresentativeoftheBorrower.EachsuchrequisitionshallbesufficientevidencetotheTrusteeofthefactsstatedtherein,andtheTrusteeshallhavenodutytoconfirmthatsuchrequesteddisbursementsconstituteCostsofIssuance.AnymoneyremainingintheCostsofIssuanceFundsixmonthsfollowingtheDateofDeliveryshallbetransferredbytheTrusteetotheInterestAccount.

Section3.06.ValidityofBonds.ThevalidityoftheauthorizationandissuanceoftheBondsisnotdependentonandshallnotbeaffectedinanywaybyanyproceedingstakenbytheAuthorityortheTrusteewithrespecttoorinconnectionwiththeAgreement.TherecitalcontainedintheBondsthatthesameareissuedpursuanttotheActandlawsoftheStateshallbeconclusiveevidenceoftheirvalidityandofcompliancewiththeprovisionsoflawintheirissuance.

ARTICLE IV

REDEMPTION AND PURCHASE OF BONDS

Section4.01.TermsofRedemptionofBonds.TheBondsaresubjecttoredemptionifandtotheextenttheBorrowerisentitledtomakeandmakes,orisrequiredtomake,aprepaymentpursuanttoArticlesIVorVIIoftheAgreement.AllsuchprepaymentsshallbedepositedintheRedemptionAccount.TheBondsshallnotbecalledforoptionalredemption,andtheTrusteeshallnotgivenoticeofanysuchredemption,unlesstheBorrowerhassodirectedinwritingtotheTrusteewithacopytotheAuthority.Onorpriortotheredemptiondate,theBorrowershallmake(orprovideforthroughaLetterofCreditoranAlternateCreditFacility)paymentofallrequiredinstallmentsoftheBorrower’sobligationsunderSection7.4oftheAgreement,including,withoutlimitation,amountssufficienttopayallprincipalorPurchasePriceof,andpremium,ifany,andinterestdueonsuchBondsontheredemptiondate;provided, however,thatintheeventofamandatoryredemptionpursuanttoSection4.01(2)below,theTrusteeshallrequiresuchpaymentunderSection7.3oftheAgreement.

Subjecttotheprovisionsoftheprecedingparagraph,theBondsshallberedeemed(withAvailableMoneysifaLetterofCreditisineffect)pursuanttoSection5.03uponthefollowingterms:

(1)RedemptionduringInitialTermInterestRatePeriod.DuringtheinitialTermInterestRatePeriod,theBondsshallnotbesubjecttomandatorysinkingfundredemptionoroptionalredemptionexceptasprovidedinSection4.01(5)or(6)below.

(2)MandatoryRedemptionuponInvalidityoraDeterminationofTaxability.IftheAgreementisdeterminedtobeinvalidoraDeterminationofTaxabilityoccurs,thenBondsOutstandingonthedateofthedeterminationofinvalidityortheoccurrenceofsuchDeterminationofTaxabilityshallberedeemedinwhole(orinpartiftheBorrowerdeliversanApprovingOpiniontotheTrusteeandtheAuthority)atanytimewithinsixty(60)calendardaysthereafter,ataredemptionpriceof100%oftheprincipalamountthereof,withoutpremium,plusaccruedinteresttothedateofredemption.

(3)OptionalRedemptionintheIndexInterestRatePeriod.BondsinanIndexInterestRatePeriodaresubjecttoredemption,attheoptionoftheBorrower,inwholeorinpartonanyBusinessDayduringtheperiodbeginningsixmonthspriortotheIndexTenderDate,toandincludingsuchIndexTenderDate,ataredemptionpriceequalto100%oftheprincipalamountofBondscalledforredemption,plusaccruedinterest,ifany,tothedateofredemption.UpondeliveryofsuchRequestoftheBorrowertotheTrustee,theAuthorityshallbedeemed,withoutanyactiononitspart,tohaveexerciseditsoptiontoredeemtheBondsunderthissubsection(3).

(4)OptionalRedemptionintheSIFMAInterestRatePeriod.BondsinaSIFMAInterestRatePeriodaresubjecttoredemption,attheoptionoftheBorrower,inwholeorinpart,onanyBusinessDayduringtheperiodbeginningsixmonthspriortotheSIFMATenderDate,toandincludingsuchSIFMATenderDateandduringaSIFMADelayedRemarketingPeriod,ataredemptionpriceequalto100%oftheprincipalamount

ofBondscalledforredemption,plusaccruedinterest,ifany,tothedateofredemption.UpondeliveryofsuchRequestoftheBorrowertotheTrustee,theAuthorityshallbedeemed,withoutanyactiononitspart,tohaveexerciseditsoptiontoredeemtheBondsunderthissubsection(4).

(5)OptionalRedemptionuponOccurrenceofExtraordinaryEvents.DuringanyIndexInterestRatePeriod,SIFMAInterestRatePeriodorTermInterestRatePeriod,theBondsmayberedeemedinwholeorinpartonanydate,ataredemptionpriceequaltotheprincipalamountthereoftoberedeemed,withoutpremium,plusaccruedinteresttothedateofredemption,uponreceiptbytheTrusteeofaspecificwrittennoticefromanAuthorizedRepresentativeoftheBorrowerstatingthatanyofthefollowingeventshasoccurred:

(i)alloftheProjectoraportionthereofisdamaged,destroyed,condemnedortakenbyeminentdomaintosuchextentthat,intheopinionoftheBorrowercontainedinaCertificateprovidedtotheAuthorityandtheTrustee,whichCertificatemaybeconclusivelyrelieduponbytheTrusteeandtheAuthority,(i)itisnotpracticableordesirabletorebuild,repairorrestoresuchProjectorsuchportionthereofwithinaperiodofthreeconsecutivemonthsfollowingsuchdamage,destructionorcondemnation,andtheBorrowerisorwillbetherebypreventedfromcarryingonitsnormaloperationsatsuchProjectorsuchportionthereofforaperiodofatleastthreeconsecutivemonths,or(ii)thecostofrestorationofsuchProjectorsuchportionthereofwouldsubstantiallyexceedtheNetProceedsofinsurancecarriedthereon;or

(ii)thecontinuedoperationofalloraportionoftheProjectisenjoinedorpreventedorisotherwiseprohibitedby,orconflictswith,anyorder,decree,ruleorregulationofanycourtorfederal,stateorlocalregulatorybody,administrativeagencyorothergovernmentalbody.

(6)OptionalRedemptionuponAcquisitionbyTRATONGroup.DuringtheinitialTermInterestRatePeriod,theBondsmayberedeemedinwholeonanydate,ataredemptionpriceequaltotheprincipalamountthereoftoberedeemed,withoutpremium,plusaccruedinteresttothedateofredemption,uponreceiptbytheTrusteeofaspecificwrittennoticefromanAuthorizedRepresentativeoftheBorrowerconcurrentwithorsubsequenttothecompletionoftheTRATONAcquisition.

(7)OptionalRedemptionDuringVariableInterestRatePeriod.OnanyBusinessDayduringaVariableInterestRatePeriodandonanyConversionDate,theBondsmayberedeemedbytheTrustee,attheoptionoftheAuthorityuponRequestofanAuthorizedRepresentativeoftheBorrowerasprovidedinSection7.5oftheAgreement,inwholeorinpart,ataredemptionpriceof100%oftheprincipalamountthereof,withoutpremium,plusaccruedinteresttothedateofredemption.UpondeliveryofsuchRequestoftheBorrowertotheTrustee,theAuthorityshallbedeemed,withoutanyactiononitspart,tohaveexerciseditsoptiontoredeemtheBondsunderthissubsection(7).

(8)OptionalRedemptionDuringTermInterestRatePeriod.DuringanyTermInterestRatePeriodotherthantheinitialTermRatePeriod,theBondsshallbesubjectto

optionalredemptionattheoptionoftheBorrower,inwholeorfromtimetotimeinpart,atthetimes(measuredfromthefirstdayoftheapplicableTermInterestRatePeriod),andattheredemptionprices(expressedaspercentagesofprincipalamount)setforthbelow,plusaccruedinterest,ifany,totheredemptiondate:

LengthofTermInterestRatePeriod RedemptionDatesandPricesLessthanoneyear Notsubjecttooptionalredemption.

Oneyearto10yearsOnanyBusinessDaybeginning90dayspriortothePurchaseDateat100%oftheprincipalamountbeingredeemed.

Greaterthan10years

OnanyBusinessDayonorafterthe10thanniversaryoftheeffectivedatecommencingsuchInterestRatePeriodat100%oftheprincipalamountbeingredeemed.

UpondeliveryofsuchRequestoftheBorrowertotheTrustee,theAuthorityshallbedeemed,withoutanyactiononitspart,tohaveexerciseditsoptiontoredeemtheBondsunderthissubsection(8).Notwithstandingtheoptionalredemptionschedulesetforthabove,onorpriortotheeffectivedateofanyTermInterestRatePeriod,theBorrowercanprovideanalternateoptionalredemptionscheduleifitobtainsanApprovingOpinionaddressedtotheAuthorityandtheTrustee.

Section4.02.SelectionofBondsforRedemption;PurchaseInLieuofRedemption.

(A)WheneverprovisionismadeinthisIndenturefortheredemptionoflessthanalloftheBonds,theTrusteeshallselecttheBondstoberedeemedfromallBondsofaseriesorsuchgivenportionthereofnotpreviouslycalledforredemptioniftheBondsarelistedonanynationalsecuritiesexchange,incompliancewiththerequirementsoftheprincipalnationalsecuritiesexchangeonwhichtheBondsarelistedorbylotbytheTrustee;provided, however,thatBankBondsshallbethefirstBondsselectedforredemption.

(B)NotwithstandinganyotherprovisionofthisIndenture,atthewrittendirectionofanAuthorizedRepresentativeoftheBorrower,theAuthorityshallcausetheBondstobepurchasedinlieuofredemptioninconnectionwithanoptionalredemptionoftheBondspursuanttoSection4.01(3),(4),(5),(6),(7)or(8)hereof.SuchoptionshallbeexercisedbytheAuthoritybydeliveringtotheTrusteewrittennoticeasprovidedbyanAuthorizedRepresentativeoftheBorroweronorpriortotheBusinessDayprecedingtheredemptiondatecontainingaRequestoftheAuthoritytotheTrusteespecifyingthattheBondsshallnotberedeemed,butinsteadshallbesubjecttopurchasepursuanttothisSection.TheTrusteeshallsendacopyofsuchRequestoftheAuthorityassoonaspracticabletotheBank,ifany.Upondeliveryofsuchnotice,theBondsshallnotberedeemedbutshallinsteadbesubjecttomandatorytenderataPurchasePriceequaltotheredemptionpriceatwhichtheBondswouldhavebeenredeemedhereunderonaPurchaseDate

(thedatethatwouldhavebeentheredemptiondate);providedthatthepaymentoffundsfromremarketingproceedsorfundsfromtheBorrowerortheGuarantorordrawsunderanyLetterofCreditinanamountequaltothePurchasePriceshallbemadetotheTrusteeonorpriortothePurchaseDate.Followingsuchpurchase,theTrusteeshallcausetheBondstoberegisteredupontheRequestoftheBorroweranddeliversuchBondsasdirectedinwritingbyanAuthorizedRepresentativeoftheBorrower.TheapplicableprovisionsofSection4.07shallgovernsuchpurchase.NopurchaseofBondsbytheBorrower,theGuarantorortheproviderofaLetterofCreditpursuanttothisSectionoradvanceoruseofanymoneystoeffectuateanysuchpurchaseshallbedeemedtobeapaymentorredemptionoftheBondsoranyportionthereof,andsuchpurchaseshallnotoperatetoextinguishordischargetheindebtednessevidencedbytheBonds.

Section4.03.NoticeofRedemption.

(A)Noticeofredemptionshallbemailedbyfirstclassmailnotlessthan30days(or20daysinthecaseofredemptionpursuanttoSection4.01(7))normorethan60daysbeforesuchredemptiondatetotherespectiveHoldersofanyBondsdesignatedforredemptionattheiraddressesontheregistrationbooksmaintainedbytheBondRegistrar.Eachnoticeofredemptionshallstatetheredemptiondate,theplaceorplacesofredemption,iflessthanalloftheBondsaretoberedeemed,thedistinctivenumber(s)oftheBondstoberedeemedand,inthecaseofBondstoberedeemedinpartonly,therespectiveportionsoftheprincipalamountthereoftoberedeemed.EachsuchnoticeshallalsostatethatonsaiddatetherewillbecomedueandpayableoneachofsaidBondstheprincipalthereoforofsaidspecifiedportionoftheprincipalthereofinthecaseofaBondtoberedeemedinpartonly,andthatfromandaftersuchredemptiondateinterestthereonshallceasetoaccrue,andshallrequirethatsuchBondsbethensurrendered,and,withregardtooptionalredemptionpursuanttoSections4.01(3),(4),(5),(6),(7)or(8),intheeventthatfundsrequiredtopaytheredemptionpricearenotondepositundertheIndentureatthetimethenoticeofredemptionissent,astatementtotheeffectthattheredemptionisconditioneduponthereceiptoftheappropriatefundsrequiredtopaytheredemptionpricebytheTrusteeonorpriortotheredemptiondate.Neitherfailuretoreceivesuchnoticenoranydefectthereinshallaffectthesufficiencyofsuchredemption.WithrespecttoanynoticeofoptionalredemptionofBonds,suchnoticemaybeconditionaluponthefulfillmentofanyconditionssetoutwithinsuchnotice.Intheeventthatsuchnoticeofredemptioncontainsconditionswhicharenotmet,theredemptionshallnotbemadeandtheTrusteeshallgivenotice,onorpriortothedatebeforetheredemptionwastobemade,inthemannerinwhichthenoticeofredemptionwasgiven,thattheredemptionwillnotbemade.

(B)NoticeofredemptionofsuchBondsshallbegivenbytheTrustee,attheexpenseoftheBorrower,forandonbehalfoftheAuthority.

(C)AtthesametimethatitsendsnoticeofredemptiontoOwnersofsuchBonds,theTrusteeshallalsosendacopyofthenoticebyfirstclassmail,bytelecopyorbyovernightdeliveryorelectronicmailtotheAuthority,theTenderAgent,ifany,theRemarketingAgent,theBank,ifany,theSecuritiesDepositoriesandanInformationService.FailuretoprovidenoticetotheAuthority,theTenderAgent,ifany,theRemarketingAgent,theBank,ifany,theSecuritiesDepositoriesoranInformationServiceshallnotaffectthevalidityofproceedingsfortheredemptionofsuchBondsandtheTrusteeshallhavenoliabilityinconnectiontherewith.Notwithstandinganythingtothecontraryherein,theAuthorityandtheBorrowereach

acknowledgesandagreesthattheTrusteeisnotactingasthedisclosure/disseminationagentforpurposesofRule15c2-12oftheSecuritiesExchangeActof1934inconnectionwithanynoticerequiredtobepostedwithanyInformationService.

Section4.04.PartialRedemptionofBonds.UponsurrenderofanyBondredeemedinpartonly,theAuthorityshallexecuteanduponreceiptofaRequestbytheAuthority,theTrusteeshallauthenticateanddelivertotheOwnerthereof,attheexpenseoftheBorrower,anewBondorBondsofAuthorizedDenominationsandoflikematurityequalinaggregateprincipalamounttotheunredeemedportionoftheBondsurrendered.

Section4.05.EffectofRedemption.Noticeofredemptionhavingbeendulygivenasaforesaid,andmoneysforpaymentoftheredemptionprice(includingpremium,ifany)of,togetherwithinterestaccruedtothedatefixedforredemptionon,theBonds(orportionsthereof)socalledforredemptionbeingheldbytheTrustee,ontheredemptiondatedesignatedinsuchnotice,theBonds(orportionsthereof)socalledforredemptionshallbecomedueandpayable,interestontheBondssocalledforredemptionshallceasetoaccrue,saidBonds(orportionsthereof)shallceasetobeentitledtoanybenefitorsecurityunderthisIndenture,exceptforpaymentofparticularBondsforwhichmoneysarebeingheldbytheTrusteewhichmoneysshallbepledgedtosuchpayment,andtheHoldersofsaidBondsshallhavenorightsinrespectthereofexcepttoreceivepaymentofsaidredemptionprice(includingpremium,ifany)andinterestaccruedtothedatefixedforredemption.

AllBondsredeemedpursuanttotheprovisionsofthisArticleshallbecanceledanddestroyedbytheTrusteeuponsurrenderthereofandtheTrusteeshallthereupondelivertotheAuthorityacertificateevidencingsuchcancellationanddestruction.

Section4.06.MandatoryTenderforPurchaseofBonds.

(A)(i)OnthefirstdayofeachnewInterestRatePeriod,includingarenewalofaTermInterestRatePeriod,or

(ii)duringaWeeklyInterestRatePeriod,(I)ontheeffectivedateofanAlternateCreditFacilityorAlternateLetterofCreditcomplyingwiththerequirementsofSection5.7oftheAgreement,or(II)fiveBusinessDaysbeforetheexpirationdateofanythencurrentLetterofCreditorAlternateCreditFacility,exceptthatifsubparagraph4.06(A)(i)shallapply,thissubparagraphwillnotapply,or

(iii)onthesecondBusinessDayfollowingthedayonwhichtheTrusteereceiveswrittennoticefromanyBankpursuanttoSection7.01(e)(i)hereofthatanEventofDefaulthasoccurredunder(andasdefinedin)theCreditAgreementanddirectingtheTrusteeinwritingtopurchasetheBonds,theTrusteeshallpromptlygivenoticetoeachBondholderofthemandatorytenderoftheBondsandthatinterestwillceasetoaccruetotheBondholderonsuchBondsafterthedateofmandatorytender(eacha“PurchaseDate”),andtheBondholderorDirectParticipantofsuchBondshalltendersuchBondforpurchaseasprovidedbelowandsuchBondshallbepurchasedor(forBondswhicharenotBook-EntryBonds)deemedpurchasedasprovidedinSection4.07(A)(3)hereofataPurchasePriceequaltotheprincipalamountthereofplusaccruedandunpaidinterestthereonand

premium,ifany.SubjecttoSection4.07(G)hereof,paymentofthePurchasePriceofsuchBondshallbemadeby4:30p.m.(NewYorkCitytime),inthesamemanneraspaymentofinterestontheBonds,totheHolderofrecord,orDirectParticipantwithrespecttoBook-EntryBonds,ontheRecordDate.IfsuchBondsarenotBook-EntryBonds,theHoldershalldeliversuchBondsbynolaterthan12:30p.m.(NewYorkCitytime)onthePurchaseDatetotheTenderAgentatitsCorporateTrustOffice,accompaniedbyaninstrumentoftransferthereof,informsatisfactorytotheTenderAgent,withthesignatureguaranteedinaccordancewiththeguidelinessetforthbyoneofthenationallyrecognizedmedallionsignatureprograms.IfsuchBondsareBook-EntryBonds,onthePurchaseDatethetenderingDirectParticipantshalltransfer,ontheregistrationbooksofDTC,thebeneficialownershipinterestsinsuchBondstenderedforpurchasetotheaccountoftheTrusteeoraDirectParticipantactingonbehalfoftheTrustee.

(B)AnyinstrumentdeliveredtotheTrusteeorTenderAgentinaccordancewiththisSectionshallbeirrevocablewithrespecttothemandatorypurchaseforwhichsuchinstrumentwasdeliveredandshallbebindinguponanysubsequentBondholderorDirectParticipantoftheBondtowhichitrelates,includinganyBondissuedinexchangetherefororupontheregistrationoftransferthereofandasofthedateofsuchinstrument,theBondholderorDirectParticipantoftheBondsspecifiedthereinshallnothaveanyrighttotenderforpurchasesuchBondspriortosuchPurchaseDate.

Section4.07.PurchaseandRemarketingofBonds.

(A)PurchaseofBonds.

WhenevertheBondsareBook-EntryBonds,allreferencesinthisSection4.07totheTenderAgent’sactionsrelativetosuchBondsshallinsteadmeantheTrustee,asthecontextmayrequire.

(1)Assoonaspracticablebutinanyeventnolaterthan12:00noon(NewYorkCitytime)ontheBusinessDayafteraTenderNoticeisreceivedduringaWeeklyInterestRatePeriodor(b)10:45a.m.(NewYorkCitytime)onthesameBusinessDaythataTenderNoticeisreceivedduringaDailyInterestRatePeriod,theTenderAgentshallgivetelephonic,telegraphicortelecopiernotice,promptlyconfirmedinwriting,totheTrusteeandtheRemarketingAgent,specifyingthePurchaseDateandtheprincipalamountofBondsrequiredtobetenderedforpurchaseinaccordancewithSection4.06hereofortenderedpursuanttoSection2.04(A)or(B)hereof.TheTrusteeshallpromptlysupplythesamenoticetotheBank,ifapplicable.

(2)TheTenderAgentshallpurchase,butonlyfromthesourceslistedbelow,BondsrequiredtobepurchasedinaccordancewithSection4.06hereofortenderedpursuanttoSection2.04(A)hereoffromtheHoldersthereofby4:30p.m.(NewYorkCitytime)onthedatesuchBondsarerequiredtobepurchasedatthePurchasePriceprovidedinSection4.06orSection2.04(A).FundsforthepaymentofsuchPurchasePriceshallbe

derivedfromthefollowingsources,atthefollowingtimesandintheorderofpriorityindicatedbelow:

(a)fromtheproceedsoftheremarketingofsuchBonds(butonlysuchremarketingproceedsasarereceivedfrompurchasersofsuchBondspursuanttoSection4.07(C)hereof)whichhavebeenfurnishedtotheTenderAgentbynolaterthan11:00a.m.(NewYorkCitytime)onthePurchaseDatebytheTrustee,whichshallhavereceivedsuchfundsfromtheRemarketingAgentby10:30a.m.(NewYorkCitytime);provided,however,thatsuchproceedsshallnothavebeenderivedfromtheAuthorityortheBorrower,ortheGuarantor,anyaffiliate,oranyshareholderoftheBorrowerortheGuarantor,andprovidedfurtherthatremarketingproceedsmaynotbeappliedinthecaseofmandatorytenderunderSection4.06(A)(iii);and

(b)frommoneyswhichhavebeenfurnishedtotheTenderAgentbynolaterthan2:30p.m.(NewYorkCitytime)onthePurchaseDate,representingtheproceedsofadrawunderanyLetterofCreditenhancingtheBonds;and

(c)onlyiftheBankhaswrongfullyfailedtopayaproperlysubmitteddrawingontheLetterofCreditortheLetterofCredithasbeenrepudiatedorifthereisnoLetterofCreditineffect,andthesourcesinsubparagraphs(a)and(b)areinsufficient,frommoneysfurnishedbytheBorrowerortheGuarantortotheTenderAgent.

(3)TheprovisionsofthisSection4.07(A)(3)shallnotapplyatanytimesuchBondsareBook-EntryBonds.WithrespecttoanysuchBondstenderedforpurchaseorrequiredtobetenderedforpurchaseastowhichsufficientfundstoaccomplishsuchpurchaseareavailabletotheTenderAgentattherespectivetimesatwhichpaymentofthePurchasePriceistobemadeasprovidedherein:

(a)SuchBondsshallbedeemedpurchasedforallpurposesofthisIndenture,irrespectiveofwhetherornotsuchBondsshallhavebeenpresentedtotheTenderAgent,andtheformerHolderorHoldersofsuchBondsshallhavenoclaimthereon,underthisIndentureorotherwiseforanyamountotherthanthePurchasePricethereofandsuchBondsshallnolongerbedeemedtobeOutstandingforpurposesofthisIndentureandtheBondRegistrarshallsonoteontheBondregisterfortheBonds.

(b)SubjecttoSection4.07(G)hereof,intheeventthatanysuchBondsshallnotbepresentedtotheTenderAgent,theTenderAgentshallsegregateandholdthemoneysforthePurchasePriceofsuchBondsintrust,heldasprovidedinSection5.05hereofforthebenefitoftheformerHoldersofsuchBonds,whoshall,exceptasprovidedinthefollowingsentences,thereafterberestrictedexclusivelytosuchmoneysforthesatisfactionofanyclaimforthePurchasePriceofsuchBonds.

(c)IntheeventthatanysuchBondsshallnotbepresentedtotheTenderAgentatthetimespecifiedinSection4.06hereoforSection2.04(A)hereof(eachan“UndeliveredBond”),thentheAuthorityshallexecuteanddelivertotheTrusteeforauthentication,attheexpenseoftheBorrower,anewBondorBonds,asthe

casemaybe,inanaggregateprincipalamountequaltotheprincipalamountoftheUndeliveredBondsbearinganumberornumbersnotcontemporaneouslyoutstanding.EverysuchBondauthenticatedanddeliveredasprovidedintheprecedingsentenceshallbeentitledtoallthebenefitsofthisIndentureequallyandproportionatelywithanyandallotherBondsdulyissuedhereunder.TheTenderAgentshallmaintainarecordofanyUndeliveredBonds,togetherwiththenamesandaddressesoftheformerHoldersthereof.

(d)IncaseanysuchBondswhichhavebeendeemedpurchasedasprovidedinSection4.07(A)(3)(a)hereofaredeliveredtotheTenderAgentsubsequenttothedateandtimespecifiedforsuchdeliveryforpaymentofthePurchasePricethereofatitsCorporateTrustOffice,accompaniedbyaninstrumentoftransferthereof,informsatisfactorytotheTenderAgent,executedinblankbytheHolderthereofwiththesignatureguaranteedinaccordancewiththeguidelinessetforthbyoneofthenationallyrecognizedmedallionsignatureprogramsonanyBusinessDay,theTenderAgentshall(subjecttoSection4.07(G)hereof)paythePurchasePriceofsuchBondtotheHoldernolaterthan12:00noon(NewYorkCitytime)onthenextsucceedingBusinessDay.AnysuchBondsodeliveredtotheTenderAgentshallbecanceledanddeliveredtotheTrustee.

(B)RemarketingofBonds;NoticeofInterestRates.

(1)TheRemarketingAgentshalldeterminetherateofinteresttobebornebytheapplicableseriesofBondstotheextentrequiredbyandasprovidedinSection2.03hereofandshallfurnishinwritingtotheTrusteeandtheBank,ifany,andtheTenderAgentinatimelymannerallinformationnecessaryfortheTenderAgentandtheTrusteetocarryouttheirrespectivedutieshereunder,including,butnotlimitedto,theinterestratesapplicabletotheapplicableseriesofBonds.

(2)TheRemarketingAgentshallperiodicallyinforminwritingtheTrustee,theBank,ifany,andDTCpursuanttotheDTCLetterofRepresentations,ifsorequestedandifsuchratewasdeterminedbytheRemarketingAgent,oftherateofinterestbornebytheBondsfromtimetotime.

(3)TheRemarketingAgentshall,pursuanttotheRemarketingAgreement,useitsbesteffortstosellanyBondstenderedforpurchase (exceptBondstenderedpursuanttoSection4.06(A)(iii))tonewpurchasers.Notlaterthan4:00p.m.(NewYorkCitytime)ontheBusinessDaybeforethePurchaseDate,theRemarketingAgentshallnotifytheTenderAgent,theTrusteeandtheBank,ifany,inwritingof(i)theamountofBondstobepurchasedonthePurchaseDatewhichhavebeenremarketedand(forBondswhicharenotBook-EntryBonds)thename,addressandtaxpayeridentificationnumberofthenewpurchasersandthedenominationswithrespecttowhichsuchremarketedBondsaretoberegisteredand(ii)theamountrequiredtobedrawnundertheLetterofCredittoprovidesufficientfundstopurchasetheBondsactuallytenderedordeemedtenderedforwhichnoremarketingproceedsareexpectedtobeavailableonthePurchaseDate.

(C)DeliveryofRemarketedBonds;TenderProceeds.

(1)TheTenderAgentshallholdallBondsdeliveredtoitintrustforthebenefitoftherespectiveHolderswhichshallhavesodeliveredsuchBondsorfortheDirectParticipantswhohavetransferredtheirinterestsintheBook-EntryBondsuntilmoneysrepresentingthePurchasePriceofsuchBondsshallhavebeendeliveredtoorfortheaccountofortotheorderofsuchHoldersorDirectParticipants.TheTrustee,forBook-EntryBonds,ortheTenderAgent(orafterfiveBusinessDays,asprovidedinSection4.07(G),theTrustee)fornon-Book-EntryBonds,shallholdallTenderProceedsreceivedforthepurchaseofBondsintrust,uninvestedandinnon-commingledfundsforthebenefitofthePersonwhichshallhavesodeliveredsuchmoneysuntilBondspurchasedwithsuchmoneysshallhavebeendeliveredtoorfortheaccountofsuchPerson,andsuchTenderProceedsshall,subjecttoSection4.07(A)(3)(b),thereuponimmediatelybedeliveredtotherespectivetenderingHolders.NeithertheAuthority,theBorroweroranyGuarantorshallhaveanyright,title,orinterestinortoanyTenderProceedsheldbytheTrustee,theTenderAgentortheRemarketingAgentorpursuanttoSection4.07(G)hereof.BondspurchasedwithmoneysdescribedinSection4.07(A)(2)(a)hereof,includingwithoutlimitationBondsissuedinplaceofsuchBondspursuanttoSection4.07(A)(3)(c)hereof,shall,inthecaseofBondswhicharenotBook-EntryBonds,beregisteredasdirectedbytheTrustee(fromwritteninstructionsreceivedfromtheRemarketingAgent)andmadeavailabletotheRemarketingAgentby12:00noon(NewYorkCitytime)onthedateofsuchpurchaseor,inthecaseofBook-EntryBondspurchasedwithsuchmoneys,betransferredontheregistrationbooksofDTConthedateofsuchpurchaseorthedatetheownershipinterestshallbetransferredtothenewDirectParticipantsonthebooksofDTC,againstpaymentinimmediatelyavailablefundsorevidenceofimmediatelyavailablefundsintheformofafederalreservewirenumber.

(2)BondspurchasedwithmoneysobtainedbyadrawingonaLetterofCredit(the“BankBonds”),includingwithoutlimitationBondsissuedinplaceofsuchBondspursuanttoSection4.07(A)(3)(c)hereof,shall,inthecaseofBondswhicharenotBook-EntryBonds,beheldbytheTenderAgentforthebenefitoftheBank,or,inthecaseofBook-EntryBonds,beregisteredinthenameoftheBankoritsnominee(assetforthintheCreditAgreementorasotherwisedirectedinwritingbytheBank)ontheregistrationbooksofDTC,withrespecttoBook-EntryBonds.TheTenderAgentshall,attheexpenseoftheBorrower,promptlyapplyfornew,separateCUSIPnumberstobeassignedtotheBankBondsandtoallotherBonds.TheRemarketingAgentshallseektoremarketanyBankBondspriortoremarketinganyotherBondstenderedforpurchase.TheproceedsofanyremarketingofBankBondsshallbetransferredbytheTrusteetotheBank.UponreceiptbytheTrusteeoffundsrepresentingtheproceedsoftheremarketingofBankBonds,BondsinplaceofsuchBankBondssopurchasedshallbemadeavailableforpick-upbytheRemarketingAgentforsubsequentdeliverytothepurchasersthereof,ortheownershipinterestshallbetransferredtothenewDirectParticipantsonthebooksofDTC.Priortoorsimultaneouslywithsuchdelivery,theproceedsofsuchremarketingshallhavebeenorshallbetransferredtotheBank,andtheTrusteeandtheTenderAgentshallhavereceivedwrittenconfirmationfromtheBankofthereinstatementinfulloftheLetterofCredit.Notwithstandinganyotherprovisionofthissubsection(C)(2),theRemarketingAgentshallnotremarketanyBankBondsderivedfromamandatorytenderunderSection4.06(A)(iii)untildirectedinwritingbytheBank.

(3)IntheeventthattheRemarketingAgentisabletoremarketanyBondsrequiredtobepurchasedpursuanttothisSection4.07afterthetimeonwhichtheRemarketingAgentisrequiredtoprovidenoticetotheTrusteeasspecifiedinthisSection4.07,theRemarketingAgentshallgivenoticeinthemannerandcontainingthedetailssetforthinthisSection4.07assoonaspracticableaftersuchremarketing,butinnoeventlaterthan2:00p.m.(NewYorkCitytime)onthePurchaseDate,andtheBondsshallberegisteredinthenamesofthepurchasersthereofandmadeavailabletotheRemarketingAgentassoonaspracticablethereafteronsuchdateorthenextsucceedingBusinessDayortransferredontheregistrationbooksofDTCtotheaccountofDirectParticipantsfurnishedtotheTrusteeorTenderAgent,asapplicable,bytheRemarketingAgent.

(4)IfanyBondistenderedafteranoticeofredemptionforsuchBondhasbeengiven,theRemarketingAgentwillgivetheredemptionnoticetoanypurchaserofsuchBond,ortoDTCifsuchBondisaBook-EntryBond,andthepurchaser(includingaDirectParticipant)shallacknowledgereceiptofsuchredemptionnotice.

(D)DrawsupontheLetterofCredit.

(1)TheTrusteeshalldrawontheexistingLetterofCreditenhancingaseriesofBondsinanamountnecessaryandinsufficienttime(assetforthbythetermsofsuchLetterofCredit)soastoprovidetotheTrusteeorTenderAgent,asapplicable,thebalanceofthefundsneededtopurchasetenderedBonds,takingintoaccounttheremarketingproceedsthattheTrusteeorTenderAgent,asapplicable,hasreceivedby11:00a.m.(NewYorkCitytime)onthePurchaseDate.IftheRemarketingAgenthasnotifiedtheTrusteepursuanttoSection4.07(B)(3)thatitdoesnotexpecttoremarketalltheBondstendered,theTrusteeisauthorizedtodrawonsuchLetterofCreditpursuanttosuchnotice;iftheRemarketingAgentremarketssuchBondsafter11:00a.m.(NewYorkCitytime)onthePurchaseDate,theTrusteeshallstilldrawontheLetterofCreditenhancingtheBondsinanamountnecessaryandinsufficienttime(assetforthbythetermsofsuchLetterofCredit)soastoprovidethebalanceofthefundsneededtopurchasetenderedBonds,withouttakingintoaccountanyremarketingproceedsotherthanthosepromisedintheRemarketingAgent’snoticepursuanttoSection4.07(B)(3)hereof.TheTrusteeshalltransfertotheBankanyexcessmoneysreceivedfromadrawontheLetterofCreditenhancingaseriesofBondsthatarenotneededtopaythePurchasePriceoftheBondsonthePurchaseDate.

(2)TheTrusteeshalldrawontheexistingLetterofCreditenhancingtheBondsonthePurchaseDatespecifiedinSection4.06(A)(iii)insufficienttime(assetforthbythetermsoftheLetterofCredit)soastoprovidetotheTrusteeorTenderAgent,asapplicable,thefundsneededtopurchaseBondssubjecttosuchmandatorytenderonthespecifiedPurchaseDate.

(3)IftheTrusteehasmadeaproperdrawingontheLetterofCreditandtheBankwrongfullyfailstomakeapaymentforthePurchasePriceoftenderedBondsby

2:30p.m.(NewYorkCitytime)ortheLetterofCredithasbeenrepudiated,theTrusteeshallimmediatelynotifytheBorrowerandtheGuarantorandrequestpaymentofthePurchasePriceinimmediatelyavailablefundsby4:00p.m.(NewYorkCitytime)onthePurchaseDate,andintheeventsuchBondsarenotBook-EntryBonds,theTrusteewilldirecttheBorrowerortheGuarantor,asapplicabletotransferfundstotheTenderAgent.

(E)DeliveryofProceedsofSale.TheproceedsoftheremarketingbytheRemarketingAgentofanyBondsshallbetransferredonthePurchaseDatebytheRemarketingAgenttotheTrusteeandfromtheTrusteetotheTenderAgent,asapplicable,by11:00a.m.(NewYorkCitytime)onthePurchaseDateandsuchproceedsshallbeheldintrustandappliedbytheTrusteeorTenderAgent,asapplicable,tothepaymentonthePurchaseDateofthePurchasePriceofBondstotheHoldersorBeneficialOwnersthereofpursuanttoSection4.07(A)(2)(a)hereofbymakingBondsavailablefordeliverytotheRemarketingAgentwhichareregisteredpursuanttotheinstructionsoftheRemarketingAgentordirectingthetransferontheregistrationbooksofDTCpursuanttotheinstructionsoftheRemarketingAgentor,inthecaseoftheremarketingofBondswhichconstituteBankBonds,asprovidedinSection4.07(C)(2)hereof.InmakingpaymentstotheBank,theTrusteemayconclusivelyassumethattheBankhasnotbeenrepaidfromanyothersources.TotheextentthattheBankisrepaidwithproceedsofthesaleofBankBondsbytheRemarketingAgent,newBondsshallberegisteredanddelivered(orownershipintereststransferred)asprovidedinSection4.07(C)(2)hereof.

(F)NoRemarketingAfterDefault.NotwithstandinganyotherprovisionofthisIndenture,thereshallbenoremarketingofBondsunderSection4.07(B)(3)aftertheoccurrence,andduringthecontinuance,ofanEventofDefaultunderArticleVIIhereof.

(G)UnclaimedMoneys.TheTenderAgentshall,attheendofthefifthBusinessDayafterthePurchaseDate,transferallfundsthenheldonhandbyvirtueofthefactthatBondsdeemedtenderedonsuchdatewerenotpresentedforpurchasetotheTenderAgentinaccordancewiththeprovisionsofSection4.06hereoftotheTrusteetobeheldinasegregatedaccountfortheapplicableBondsandtoholdthesameintrustforthepaymentofthePurchasePricethereoftotheformerHoldersofsuchBondsasrequiredbytheprovisionsofSection4.07(A)hereof.TheTrusteeshallpaysuchPurchasePricefromsuchamountsbycheckordraftoftheTrusteeoroneofitsaffiliatesmadepayabletothepartyentitledtosuchpaymentassoonaspracticableaftersuchpartysurrenderstheBondorBondssodeemedpurchasedtotheTrustee.AnysuchmoneyssoheldintrustbytheTrusteeshallbehelduninvesteduntilpaidtothePersonentitledtheretoordisposedofasprovidedbylaw.

Section4.08.PurchaseuponChangeofControl.IfaChangeofControloccurs,eachBondholdershallhavetherighttorequiretheBorrowertopurchasealloranypartofsuchHolder’sBonds(which,ifinpart,shallbeinanamountequaltoanAuthorizedDenominationandthenon-purchasedpartshallalsobeinanamountequaltoanAuthorizedDenomination)pursuanttoachangeincontrolofferonthetermssetforthintheLoanAgreement(the“ChangeinControlOffer”).IntheChangeofControlOffer,theBorrowershallofferapaymentincashinanamountequalto101%oftheaggregateprincipalamountoftheBondspurchasedplusaccruedandunpaidinterestontheBondspurchasedtothedateofpurchase.TheBorrowerisrequiredtodirecttheTrusteeinwritingtonotifytheBondholdersoftheoccurrenceoftheChangeofControlandthepurchasepriceandthepurchasedateassetforthinSection7.6oftheLoanAgreement.

ARTICLE V

REVENUES; FUNDS AND ACCOUNTS;PAYMENT OF PRINCIPAL AND INTEREST

Section5.01.PledgeandAssignment;RevenueFund.(A)SubjectonlytotheprovisionsofthisIndenturepermittingtheapplicationthereofforthepurposesandonthetermsandconditionssetforthherein,alloftheRevenuesandanyotheramounts(includingproceedsofthesaleofBonds)heldinanyfundoraccountestablishedpursuanttothisIndenture(excepttheRebateFundandanyamountsduetotheAuthorityortheAuthorityIndemnifiedPersonsinrespectoftheRetainedRights)areherebypledgedtosecurethefullpaymentoftheprincipalorPurchasePriceof,premium,ifany,andinterestontheBondsinaccordancewiththeirtermsandtheprovisionsofthisIndentureandthereaftertosecuretheBanktotheextentofitsinterestinsuchRevenuesandcertainotherfundsoraccountsestablishedunderthisIndenture.NotwithstandinganyotherprovisionofthisIndenture,thebenefitsunderanyLetterofCreditorAlternateCreditFacilityshallapplyonlytotheBondsforwhichsuchLetterofCreditorAlternateCreditFacilitywasissued;moneysintheaccountcreatedbySection4.07(G)hereofshallbeheldsolelyforthebenefitoftheformerholdersofBondsasprovidedinSection4.07(G);andtheTenderProceedsshallbeheldintrustasprovidedinSection4.07(C)(1).SUBJECTONLYTOTHERIGHTSOFTHEAUTHORITYTOAPPLYAMOUNTSUNDERTHEPROVISIONSOFTHISINDENTURE,THEPLEDGEANDASSIGNMENTOFTHETRUSTESTATESHALLIMMEDIATELYATTACHTHERETOANDSHALLBEEFFECTIVE,BINDINGANDENFORCEABLEFROMANDAFTERTHETIMEOFTHEDELIVERYBYTHETRUSTEEOFTHEFIRSTBONDSAUTHENTICATEDANDDELIVEREDUNDERTHISINDENTURE.THESECURITYSOPLEDGEDANDANYASSIGNMENTTHENORTHEREAFTERRECEIVEDBYTHEAUTHORITYSHALLIMMEDIATELYBESUBJECTTOTHELIENOFSUCHPLEDGEANDASSIGNMENTANDTHELIENOFSUCHPLEDGEANDASSIGNMENTSHALLBEVALIDANDBINDINGAGAINSTTHEAUTHORITY,PURCHASERSTHEREOF,CREDITORSIRRESPECTIVEOFWHETHERSUCHPARTIESHAVENOTICETHEREOFANDWITHOUTTHENEEDFORANYPHYSICALDELIVERY,RECORDATION,FILING,ORFURTHERACT.

(B)TheAuthorityherebytransfersintrust,andassignstotheTrustee,forthebenefitoftheHoldersfromtimetotimeoftheBondsandtheBank,ifany,totheextentofitsinteresttherein,theTrustEstateandalloftheright,titleandinterestoftheAuthorityintheAgreementandintheGuaranty(exceptfortheRetainedRightsandpaymentsinrespectthereof).Inaddition,theAuthorityhasassignedtheNotetotheTrusteeassecurityforthepaymentoftheBonds.SuchassignmenttotheTrusteeissolelyinitscapacityasTrusteeunderthisIndenture,subjecttotheprotections,indemnities,immunitiesandlimitationsfromliabilityaffordedtheTrusteehereunder.TheTrusteeshallbeentitledtoandshallcollectandreceivealloftheRevenues,andanyRevenuescollectedorreceivedbytheAuthorityshallbedeemedtobeheld,andtohavebeencollectedorreceived,bytheAuthorityastheagentoftheTrusteeand,subjecttotheprovisionsoftheIndenture,shallforthwithbepaidbytheAuthoritytotheTrustee.NotwithstandinganythingtothecontraryinthisIndentureortheAgreement,theAuthorityshallhavenoobligationto,andinsteadtheTrustee,ortheBondholdersasthecasemaybe,may,withoutdirectionfromtheAuthority,takeanyandallsteps,actionsandproceedingstoenforceanyorallrightsoftheAuthority(otherthantheRetainedRights)undertheIndenture,theAgreementortheNote,

including,withoutlimitation,therightstoenforcetheremediesupontheoccurrenceandcontinuationofanEventofDefault,theobligationsoftheBorrowerundertheAgreementandtheGuarantorundertheGuaranty.

(C)AllRevenues(exceptinvestmentearnings(whichshallbedepositedasprovidedinSection5.05hereof)shallbepromptlydepositedbytheTrusteeuponreceiptthereofinaspecialfunddesignatedastheRevenueFundwhichtheTrusteeshallestablish,maintainandholdintrust;exceptasotherwiseprovidedinSection5.02hereof,allmoneysreceivedbytheTrusteeandrequiredtobedepositedintheRedemptionAccount,ifany,shallbepromptlydepositedintheRedemptionAccount,whichtheTrusteeshallestablish,maintainandholdintrustasprovidedinSection5.02hereof.AllRevenuesdepositedwiththeTrusteeshallbeheld,disbursed,allocatedandappliedbytheTrusteeonlyasprovidedinthisIndenture.

(D)Onceperyear,onthethirdBusinessDayfollowingtheBondPaymentDateofeachApril,anyamountheldbytheTrusteeintheRevenueFundontheduedateforaLoanRepaymentundertheAgreementshallbecreditedagainsttheinstallmentdueonsuchdatetotheextentavailableforsuchpurposeunderthetermsofthisIndenture.

Section5.02.AllocationofRevenues.Onorbeforeanydateonwhichinterestorprincipal(whetheratmaturityorbyredemptionoracceleration)isdue,theTrusteeshalltransferfundsfromtheRevenueFundanddepositintothefollowingrespectiveaccounts(eachofwhichtheTrusteeisherebydirectedandagreestoestablishandmaintainwithintheRevenueFund),thefollowingamounts,inthefollowingorderofpriority,therequirementsofeachsuchaccount(includingthemakingupofanydeficienciesinanysuchaccountresultingfromlackofRevenuessufficienttomakeanyearlierrequireddeposit)atthetimeofdeposittobesatisfiedbeforeanytransferismadetoanyaccountsubsequentinpriority:

First:totheInterestAccount,theaggregateamountofinterestbecomingdueandpayableonthenextsucceedingInterestPaymentDateordateofredemptionofallBondsthenOutstanding,untilthebalanceinsaidaccountisequaltosaidaggregateamountofinterest.

Second:tothePrincipalAccount,theamountpaidbytheBorroweranddesignatedasorattributabletoprincipalontheBondsinthemostrecentLoanRepaymentequaltotheaggregateamountofprincipaldueonthePrincipalPaymentDatepursuanttoSection2.02hereof.

Third:totheRedemptionAccount,theaggregateamountofprincipalandpremiumnextcomingduebyaccelerationorbyredemptionpermittedorrequiredunderArticleIVhereof,oranyportionthereofpaidbytheBorrower.

Section5.03.PriorityofMoneysinRevenueFund;LetterofCredit.(a)Fundsforthepaymentoftheprincipalorredemptionprice(includingpremium,ifany)ofandinterestontheBondsshallbederivedfromthefollowingsourcesintheorderofpriorityindicatedbelowfromeachoftheaccountsintheRevenueFund;provided, however,thatamountsintherespectiveaccountsintheRevenueFundshallbeusedtopaywhendue(whetheruponredemption,acceleration,interestpaymentdate,maturityorotherwise)theprincipalorredemptionprice

(includingpremium,ifany)ofandinterestontheBondsheldbyHoldersotherthantheBank,ifany,ortheBorrowerpriortothepaymentoftheprincipalandinterestontheBondsheldbytheBank,ifany,ortheBorrower:

(i)moneyspaidintotheLetterofCreditAccount(establishedbelow)oftheRevenueFundfromadrawbytheTrusteeunderanyLetterofCredit;

(ii)moneyspaidintotheInterestAccount,ifany,representingaccruedinterestreceivedattheinitialsaleoftheBondsandproceedsfromtheinvestmentthereofwhichshallbeappliedtothepaymentofinterestonsuchBonds;

(iii)moneyspaidintotheRevenueFundpursuanttoSection10.01(b)hereofandproceedsfromtheinvestmentthereof,whichshallconstituteAvailableMoneysifaLetterofCreditisineffect;

(iv)anyothermoneys(otherthanfromdrawsontheLetterofCredit)paidintotheRevenueFundanddepositedintheRevenueFundandproceedsfromtheinvestmentthereof,whichshallconstituteAvailableMoneysifaLetterofCreditisineffect;

(v)anyothermoneyspaidintoanddepositedintheRevenueFundbytheBorrowerandproceedsfromtheinvestmentthereof,whicharenotAvailableMoneys;

(vi)anyothermoneyspaidintotheRevenueFundanddepositedintheRevenueFundandproceedsfromtheinvestmentthereof,whicharenotAvailableMoneys;and

(vii)anyofthemoneyspaidintoanddepositedintheRevenueFundbytheGuarantorandproceedsfromtheinvestmentthereof,whicharenotAvailableMoneys.

IfaLetterofCreditisenhancingtheBonds,theTrusteeshallcreatewithintheRevenueFundaseparateaccountcalledthe“LetterofCreditAccount,”intowhichallmoneysdrawnunderanyLetterofCreditforsuchBondsshallbedepositedanddisbursed.NoneoftheBorrower,theAuthoritynortheGuarantorshallhaveanyrightstoorinterestintheLetterofCreditAccount.EachLetterofCreditAccountshallbeestablishedandmaintainedbytheTrusteeandheldintrustapartfromallothermoneysandsecuritiesheldunderthisIndentureorotherwise,andoverwhichtheTrusteeshallhavetheexclusiveandsolerightofwithdrawalfortheexclusivebenefitoftheHoldersoftheBondswithrespecttowhichsuchdrawingwasmade.NomoneysfromanyLetterofCreditAccountmayinanycircumstancebeusedtopayprincipalorredemptionprice(includingpremium,ifany,totheextentdrawsthereforarepermittedundertheLetterofCredit)oforinterestonanyBankBonds.

TheTrusteemayestablishwithintheInterestAccount,PrincipalAccountorRedemptionAccountoneormoresubaccountstofacilitatethecalculationoftheagingofmoneysdepositedwiththeTrusteeuntiltheybecomeAvailableMoneys.

(b)(i)TheTrusteeshalldrawmoneysunderanyLetterofCreditinaccordancewiththetermsthereofinanamountnecessarytomaketimelypaymentsofprincipalorPurchasePriceof,premium,ifany,totheextentdrawsthereforarepermittedundertheLetterofCredit,andinterestontheBondsenhancedbysuchLetterofCredit,otherthanBondsownedbyorforthe

accountoftheBorrower,theGuarantorortheBank,whendue,whetheratmaturity,interestpaymentdate,redemption,accelerationorotherwise.Inaddition,theTrusteeshalldrawmoneysundertheLetterofCreditinaccordancewiththetermsthereoftotheextentnecessarytomaketimelypaymentsrequiredtobemadepursuanttoandinaccordancewithSections4.06and4.07hereof.

(ii)ImmediatelyaftermakingadrawingunderanyLetterofCreditwhichhasbeenhonored,theTrusteeshallreimbursetheBankfortheamountofthedrawingusingmoneys,ifany,containedin:

(A)theInterestAccountforsuchBonds,ifthedrawingwastopayinterestontheBondsenhancedbysuchLetterofCredit;

(B)thePrincipalAccountforsuchBonds,ifthedrawingwastopayprincipalontheBondsenhancedbysuchLetterofCredit;and

(C)theRedemptionAccountforsuchBonds,ifthedrawingwastoredeemBondsenhancedbysuchLetterofCredit.

(i)IftheTrusteehasmadeaproperdrawingontheLetterofCredit(otherthanatenderdrawing)andtheBankwrongfullyfailstomakeapaymentfordebtservicedueontheBondsby11:00a.m.(NewYorkCitytime)ontheBondPaymentDateortheLetterofCredithasbeenrepudiated,theTrusteeshallimmediatelynotifytheBorrowerandtheGuarantorandrequestpaymentofthedebtservicedueinimmediatelyavailablefundsby4:00p.m.(NewYorkCitytime)ontheBondPaymentDate.Thissectionshallnotapplytotenderdrawings,whichareprovidedforinSection4.07(D).

(c)IfatanytimethereshallhavebeendeliveredtotheTrusteeanAlternateLetterofCreditorAlternateCreditFacilitypursuanttoSection5.7oftheAgreement,thentheTrusteeshallacceptsuchAlternateLetterofCreditorAlternateCreditFacilityandpromptlysurrenderthepreviouslyheldLetterofCredittotheBank,inaccordancewiththetermsofsuchLetterofCredit,forcancellation;provided, however,thattheTrusteeshallnotsurrenderthepreviouslyheldLetterofCredituntilalldrawsonsuchLetterofCredithavebeenpaidasrequiredthereby.IfatanytimethereshallceasetobeanyBondsOutstandinghereunder,theTrusteeshallpromptlysurrendertheLetterofCredittotheBank,inaccordancewiththetermsofsuchLetterofCredit,forcancellation.TheTrusteeshallcomplywiththeproceduressetforthinsuchLetterofCreditrelatingtotheterminationthereof.

Section5.04.LetterofCredit.IfaLetterofCreditisenhancingtheBonds,theTrusteeshallholdandmaintaineachLetterofCreditforthebenefitoftheBondholders,untilsuchLetterofCreditexpiresinaccordancewithitsterms.SubjecttotheprovisionsofthisIndenture,theTrusteeshallenforceallterms,covenantsandconditionsofeachLetterofCredit,includingpaymentwhendueofanydrawsonsuchLetterofCredit,andtheprovisionsrelatingtothepaymentofdrawson,andreinstatementofamountsthatmaybedrawnunder,suchLetterofCredit,andwillnotconsentto,agreetoorpermitanyamendmentormodificationofsuchLetterofCreditwhichwouldmateriallyadverselyaffecttherightsorsecurityoftheHoldersoftheBondsenhancedbysuchLetterofCredit.IfatanytimeduringthetermofanyLetterofCreditany

successorTrusteeshallbeappointedandqualifiedunderthisIndenture,theresigningorremovedTrusteeshallrequestthattheBanktransfersuchLetterofCredittothesuccessorTrustee.IftheresigningorremovedTrusteefailstomakethisrequest,thesuccessorTrusteeshalldosobeforeacceptingappointment.WhenaLetterofCreditexpiresinaccordancewithitstermsorisreplacedbyanAlternateLetterofCredit,theTrusteeshallpromptlysurrendersuchLetterofCredittotheBank.

Section5.05.InvestmentofMoneys.AllmoneysinanyofthefundsoraccountsestablishedpursuanttothisIndentureshallbeinvestedbytheTrustee,asdirectedinwritingbytheBorrowersolelyinInvestmentSecurities.Notwithstandinganyotherprovisionherein,intheabsenceofspecificwritteninvestmentinstructionsdirectingtheTrusteeby12:00noonofthesecond(2nd)BusinessDayprecedingthedaywheninvestmentsaretobemade,theTrusteeisdirectedtoinvestavailablefundsinthemoneymarketmutualfundtobedesignatedinwritingbytheBorrowertotheTrusteepriortotheDateofDelivery,orshouldsuchdesignationnothavebeenmadeorsuchdesignatedfundbeunavailable,thefundsshouldbehelduninvested.TheTrusteeshallnotbeliableforanyconsequencesresultingfromanyinvestmentsmadepursuanttotheprecedingsentence.TheTrusteeshallbeentitledtorelyconclusivelyuponspecificwritteninvestmentdirectionsbyanAuthorizedRepresentativeoftheBorrowerastothesuitabilityandlegalityofthedirectedinvestmentsandthateachsuchinvestmentmeetsthecriteriaoftheIndenture.TheTrusteemaymakeanyandallsuchinvestmentsthroughitsowninvestmentdepartmentorthatofitsaffiliatesorsubsidiaries,andmaychargeitsordinaryandcustomaryfeesforsuchinvestments.

InvestmentSecuritiesmaybepurchasedatsuchpricesastheTrusteemayinitsdiscretiondetermineorasmaybedirectedinwritingbytheBorroweroritsagent.AllInvestmentSecuritiesshallbeacquiredsubjecttothelimitationssetforthinSection6.05hereof,thelimitationsastomaturitieshereinafterinthisSectionsetforthandsuchadditionallimitationsorrequirementsconsistentwiththeforegoingasmaybeestablishedbyRequestoftheBorrower.

MoneysinallfundsandaccountsshallbeinvestedinInvestmentSecuritiesmaturingnotlaterthanthedateonwhichsuchmoneyswillberequiredforthepurposesspecifiedinthisIndenture.NotwithstandinganythingelseinthisSection5.05,anymoneysintheInterestAccount,thePrincipalAccountortheRedemptionAccountheldforthepaymentofparticularBondsshallbeinvestedattheRequestoftheBorrowerindirectobligationsoftheUnitedStatesorbondsorotherobligationsguaranteedbytheUnitedStatesgovernmentorforwhichthefullfaithandcreditoftheUnitedStatesispledgedforthefullandtimelypaymentofprincipalandinterestthereof(ormoneymarketfundsconsistingsolelyofsuchinvestments),ratedinthehighestratingcategoryapplicabletosuchinvestmentswhichmaturenotlaterthanthedateonwhichitisestimatedthatsuchmoneyswillberequiredtopaysuchBonds(butinanyeventmaturinginnotmorethanthirtydays).InvestmentsofmoneysintheRebateFundarealsosubjecttotheprovisionsoftheTaxCertificate.MoneysinaLetterofCreditAccountcreatedinSection5.03,TenderProceeds,moneysheldfornon-presentedBondsandmoneysdescribedinSection4.07(G)shallbehelduninvestedandwithoutliabilityforinterest.

Allinterest,profitsandotherincomereceivedorlossesincurredfromtheinvestmentofmoneysinanyfundestablishedpursuanttothisIndentureshallbedepositedorbookedinthefundoraccountwhichgaverisetotheinvestmentearningsorlosses.Notwithstandinganythingtothe

contrarycontainedinthisparagraph,anamountofinterestreceivedwithrespecttoanyInvestmentSecurityequaltotheamountofaccruedinterest,ifany,paidaspartofthepurchasepriceofsuchInvestmentSecurityshallbecreditedtothefundfromwhichsuchaccruedinterestwaspaid.TotheextentthatanyInvestmentSecuritiesareregistrable,suchInvestmentSecuritiesshallberegisteredinthenameoftheTrusteeoritsnominee.

Forthepurposeofdeterminingtheamountinanyfund,allInvestmentSecuritiescreditedtosuchfundshallbevaluedatthelesserofcostorparvalueplus,priortothefirstpaymentofinterestfollowingpurchase,theamountofaccruedinterest,ifany,paidasapartofthepurchaseprice.

SubjecttoSection6.06hereof,investmentsinanyandallfundsandaccountsheldbytheTrusteehereunder(otherthanmoneysrepresentingtheproceedsofadrawonaLetterofCreditorheldinaLetterofCreditAccount,TenderProceeds,AvailableMoneys,moneysbeingagedtobecomeAvailableMoneys,moneysheldintheRebateFund,ormoneysheldforthepaymentofparticularBonds(includingmoneysheldfornon-presentedBondsorheldunderSection4.07(G)or10.03hereof))maybecommingledforpurposesofmaking,holdinganddisposingofinvestments,notwithstandingprovisionshereinfortransfertoorholdinginparticularfundsandaccounts,theamountsreceivedorheldbytheTrustee,hereunder,providedthattheTrusteeshallatalltimesaccountforsuchinvestmentsstrictlyinaccordancewiththefundsandaccountstowhichtheyarecreditedandotherwiseasprovidedinthisIndenture.SubjecttoSection6.06hereof,anymoneysinvestedinaccordancewiththisSectionmaybeinvestedinapooledinvestmentaccountconsistingsolelyoffundsheldbytheTrusteeasafiduciary.TheAuthority(andtheBorrowerbyitsexecutionoftheAgreement)acknowledgesthattotheextentregulationsoftheComptrolleroftheCurrencyorotherapplicableregulatoryentitygranttheAuthorityortheBorrowertherighttoreceivebrokerageconfirmationsofsecuritytransactionsastheyoccur,theAuthorityandtheBorrowerspecificallywaivereceiptofsuchconfirmationstotheextentpermittedbylaw.TheTrustee,willfurnishormakeavailabletotheAuthorityandtheBorroweruponwrittenrequestperiodiccashtransactionstatementswhichincludedetailforallinvestmenttransactionsmadebytheTrustee,hereunder.TheTrusteemayactasprincipaloragentinthemakingordisposingofanyinvestment.TheTrusteemaysellorpresentforredemptionanyInvestmentSecuritieswheneveritshallbenecessarytoprovidemoneystomeetanyrequiredpayment,transfer,withdrawalordisbursementfromthefundtowhichsuchInvestmentSecurityiscredited,andtheTrusteeshallnotbeliableorresponsibleforanylossresultingfromsuchinvestment.

TheTrusteemayelect,butshallnotbeobligated,tocreditthefundsandaccountsheldbyitwithmoneysrepresentingincomeorprincipalpaymentsdueon,orsalesproceedsdueinrespectof,InvestmentSecuritiesinsuchfundsandaccounts,ortocredittoInvestmentSecuritiesintendedtobepurchasedwithsuchmoneys,ineachcasebeforeactuallyreceivingtherequisitemoneysfromthepaymentsource,ortootherwiseadvancefundsforaccounttransactions.TheAuthorityandtheBorrowereachacknowledgethatthelegalobligationtopaythepurchasepriceofanyInvestmentSecuritiesarisesimmediatelyatthetimeofthepurchase.NotwithstandinganythingelseinthisIndenture,(i)anysuchcreditingoffundsorassetsshallbeprovisionalinnature,andtheTrusteeshallbeauthorizedtoreverseanysuchtransactionsoradvancesoffundsintheeventthatitdoesnotreceivegoodfundswithrespectthereto,and(ii)nothinginthisIndentureshallconstituteawaiverofanyoftheTrustee’srightsasasecuritiesintermediaryunderUniformCommercialCode§9-206.

Section5.06.AdditionalPaymentsandPaymentsfromGuarantor.TheTrusteeshalltransferanyAdditionalPaymentspromptlyuponreceiptthereoffromtheBorrowertotheAuthorityattheaddressspecifiedhereinfornoticetotheAuthorityorasotherwisedirectedinwritingbytheAuthority,exceptthatpaymentsofanyfeesduetotheAuthorityshallberemittedbytheBorrowerdirectlytotheAuthorityatthetimesspecifiedintheAgreement.Additionally,theTrusteeshalltransferanypaymentsreceivedfromtheGuarantorinrespectoftheAuthority’sortheAuthorityIndemnifiedPersons’rightstopaymentpursuanttoSections4.2(b),4.2(c),4.2(d),8.2and8.4oftheAgreement.

ARTICLE VI

PARTICULAR COVENANTS

Section6.01.PunctualPaymentofBonds;LimitedObligationofAuthority;FeesofAuthority.TheAuthorityshallpunctuallypayorcausetobepaidtheprincipal,premium,ifany,andinteresttobecomedueinrespectofalltheBonds,instrictconformitywiththetermsoftheBondsandofthisIndenture,accordingtothetrueintentandmeaningthereof,butonlyoutoftheTrustEstate.NofundsormoneysoftheAuthorityarepledgedtothepaymentoftheBonds,onlythefundsprovidedbytheBorrowerassetforthherein.Whenandaspaidinfull,allBonds,ifany,shallbedeliveredtotheTrustee,shallforthwithbecanceledanddestroyed,andacertificateofsuchdestructionshallthereafterbedeliveredtotheAuthority.

TheBonds,togetherwithallprincipalandinterestthereonandpremium,ifany,withrespectthereto,arespecial,limitedobligationsoftheAuthoritysecuredbytheAgreementandtheNoteandshallalwaysbepayablesolelyfromtherevenuesandincomederivedfromtheAgreement,theNoteandtheGuaranty(excepttotheextentpaidoutofmoneysattributabletoproceedsoftheBonds,theincomefromthetemporaryinvestmentthereoforpaymentsmadepursuanttoorderivedfromamortgageorassignmentofleasesandrentsorcreditenhancementdevice)areandshallalwaysbeavalidclaimoftheownerthereofonlyagainsttherevenuesandincomederivedfromtheAgreement,theNoteandtheGuaranty,whichrevenuesandincomeshallbeusedfornootherpurposethantopaytheprincipalinstallmentsof,premium,ifany,andinterestontheBonds,exceptasmaybeexpresslyauthorizedotherwiseinthisIndentureandintheAgreement.

TheBondsandtheobligationtopayprincipalandinterestthereonandanypremiumwithrespecttheretodonotnowandshallneverconstituteanindebtednessoranobligationoftheStateorofanypoliticalsubdivisionthereof,withinthepurviewofanyconstitutionalorstatutorylimitationorprovision,orachargeagainstthegeneralcreditortaxingpowers,ifany,ofanyofthem,butshallbesecuredasaforesaid,andshallbepayablesolelyfromtherevenuesandincomederivedfromtheAgreementandtheNote(exceptasstatedaforesaid).NoowneroftheBondsshallhavetherighttocompeltheexerciseofthetaxingpower,ifany,oftheStateoranypoliticalsubdivisionthereoftopayanyprincipalinstallmentof,redemptionpremium,ifany,orinterestontheBonds.TheAuthoritydoesnothavethepowertolevytaxesforanypurposeswhatsoever.

TheAuthorityshallnotbeobligatedtoexecuteanydocumentsortakeanyotheractionunderorpursuanttothisIndenture,theAgreement,theNoteoranyotherdocumentinconnectionwiththeBondsunlessanduntilprovisionforthepaymentofexpensesoftheAuthority,includinglegalcounselfees,shallhavebeenmade.ProvisionsforexpensesshallbedeemedtohavebeenmadeuponarrangementsreasonablysatisfactorytotheAuthorityfortheprovisionofexpensesbeingagreeduponbytheAuthorityandthepartyrequestingsuchexecution.

Section6.02.ExtensionofPaymentofBonds.TheAuthorityshallnotdirectlyorindirectlyextendorassenttotheextensionofthematurityofanyoftheBondsorthetimeofpaymentofanyclaimsforinterestbythepurchaseorfundingofsuchBondsorclaimsforinterestorbyanyotherarrangementand,incasethematurityofanyoftheBondsorthetimeofpaymentofanysuchclaimsforinterestshallbeextended,suchBondsorclaimsforinterestshallnotbeentitled,incaseofanydefaulthereunder,tothebenefitsofthisIndenture,exceptsubjecttothepriorpaymentinfulloftheprincipalofalloftheBondsthenOutstandingandofallclaimsforinterestthereonwhichshallnothavebeensoextended.NothinginthisSectionshallbedeemedtolimittherightoftheAuthoritytoissuebondsforthepurposeofrefundinganyOutstandingBonds,andsuchissuanceshallnotbedeemedtoconstituteanextensionofmaturityofBonds.

Section6.03.AgainstEncumbrances.TheAuthorityshallnotcreate,orpermitthecreationof,anypledge,lien,chargeorotherencumbranceupontheTrustEstatewhileanyoftheBondsareOutstanding,exceptthepledgeandassignmentcreatedbythisIndenture.Subjecttothislimitation,theAuthorityexpresslyreservestherighttoenterintooneormoreotherindenturesforanyofitscorporatepurposes,includingotherprogramsundertheAct,andreservestherighttoissueotherobligationsforsuchpurposes.

Section6.04.PerformanceofCovenants;Authority.TheAuthoritycovenantsthatitwillfaithfullyperformonitspartatalltimesanyandallcovenants,undertakings,stipulationsandprovisionscontainedinthisIndenture,inanyandeveryBondexecuted,authenticatedanddeliveredhereunderandinallofitsproceedingspertainingthereto;provided, however,thatexceptforthematterssetforthinanydocumentshereofrelatingtopaymentoftheBonds,theAuthorityshallnotbeobligatedtotakeanyactionorexecuteanyinstrumentpursuanttoanyprovisionhereofuntilitshallhavebeenrequestedtodosobytheBorrowerorbytheTrustee,orshallhavereceivedtheinstrumenttobeexecutedandattheoptionoftheAuthorityshallhavereceivedfromthepartyrequestingsuchactionorexecutionassurancesatisfactorytotheAuthoritythattheAuthorityshallbereimbursedforitsreasonableexpenses,includinglegalcounselfees,incurredortobeincurredinconnectionwithtakingsuchactionorexecutingsuchinstrument.TheAuthoritycovenantsthatitisdulyauthorizedundertheConstitutionandthelawsoftheState,includingparticularlytheActandtheresolutionoftheAuthorityauthorizingtheissuanceoftheBonds,toissuetheBondsauthorizedherebyandtoexecutethisIndenture,tograntthesecurityinteresthereinprovided,toassignandpledgetheLoanAgreementandtheNote(exceptasotherwiseprovidedherein)andtoassignandpledgetheamountsherebyassignedandpledgedinthemannerandtotheextenthereinsetforth,thatallactiononitspartfortheissuanceoftheBondsandtheexecutionanddeliveryofthisIndenturehasbeendulyandeffectivelytaken,andthattheBondsinthehandsoftheownersthereofareandwillbevalidandenforceableobligationsoftheAuthorityaccordingtothetermsthereofandhereof.AnythingcontainedinthisIndenturetothecontrarynotwithstanding,itisherebyunderstoodthatnoneofthecovenantsoftheAuthoritycontainedinthisIndentureareintendedtocreateageneralorprimaryobligationoftheAuthority.

Section6.05.AccountingRecordsandReports.TheTrusteeshallkeeporcausetobekeptaccuratebooksofrecordandaccountinwhichcompleteandcorrectentriesshallbemadeofalltransactionsmadebyitrelatingtothereceipt,investment,disbursement,allocationandapplicationoftheRevenuesandtheproceedsoftheBonds.Suchrecordsshallspecifytheaccountorfundtowhicheachinvestment(orportionthereof)heldbytheTrusteeistobeallocatedandshallsetforth,inthecaseofeachInvestmentSecurity,(a)itspurchaseprice,(b)identifyinginformation,includingparamount,couponrateandpaymentdates,(c)theamountreceivedatmaturityoritssaleprice,asthecasemaybe,(d)theamountsanddatesofanypaymentsmadewithrespecttheretoand(e)suchdocumentationasisrequiredtoberetainedbytheTrusteewithrespecttoestablishingmarketprice,totheextentprovidedtoit.SuchrecordsshallbeopentoinspectionbytheAuthority,anyHolderandtheBankatanyreasonabletimeduringregularbusinesshoursonreasonablewrittennotice.

Section6.06.ArbitrageCovenants.

(a)Subjecttothelimitationsonitsliabilityasstatedhereinandtotheextentpermittedbylaw,theAuthoritycovenantsandagreesthat(i)ithasnotknowinglyengagedandwillnotknowinglyengageinanyactivitiesandthatithasnotknowinglytakenandwillnotknowinglytakeanyactionwhichmightresultinanyinterestontheBondsbecomingincludableinthegrossincomeoftheownersthereofforpurposesoffederalincometaxation,and(ii)itwilltaketheactionrequiredbyittobetakenhereunderandwillcooperate,totheextentreasonablypossiblewithoutincurringadditionalcosts,withtheBorrowerinmaintainingtheTax-exemptstatusofinterestontheBonds.Withoutlimitingthegeneralityoftheforegoing,theAuthoritycovenantsandagreesthatitwillcomplywiththerequirementsoftheTaxCertificate.TheBorrowerhasmadecertaintaxcovenantsinSections5.8oftheAgreementandintheTaxCertificate.

(b)TheBorrowerhascovenantedintheLoanAgreement,andagreedintheTaxCertificate,topayorcausetobepaidtotheUnitedStatesrebatepaymentswithrespecttotheBondsasprovidedintheTaxCertificate.TheTrusteeagreestocomplywithallspecificwritteninstructionsoftheBorrowergivenpursuanttotheLoanAgreement,theTaxCertificateandthetermshereofwithrespecttosuchrebatepayments;provided, however,thattheTrusteeshallnotberesponsibleinanywayforanyrebatecalculationsorotherarbitragecalculations,andprovidedfurtherthattheBorrowershallberesponsibleforsuchinstructionscomplyingwiththeTaxCertificate.

TheTrusteeconclusivelyshallbedeemedtohavecompliedwiththeprovisionsofthisSection6.06(b)ifitfollowsthewrittendirectionsoftheBorrowersetforthintheinstructionsrequiredbytheLoanAgreementandtheTaxCertificateandshallnotberequiredtotakeanyactionunderthisSection6.06(b)intheabsenceofsuchwrittendirectionsfromtheBorrower.TheTrusteeshallnotbeliableforanyconsequencesresultingfromitsfailuretoactifnowritteninstructionsfromtheBorrower(orintheabsenceofBorrowerinstructions,writteninstructionsfromtheAuthority)aredeliveredtoit.TheTrusteehasnodutyorobligationtoconfirmthatanywritteninvestmentdirectionsprovidedtoitcomplywiththeprovisionsoftheTaxCertificate.

(c)NotwithstandinganyprovisionofthisSection,iftheBorrowershallprovidetotheTrusteeandtheAuthorityanopinionofBondCounseladdressedtotheAuthorityandthe

TrusteethatanyactionrequiredunderSections5.8oftheAgreementorthisSection6.06isnolongerrequired,orthatsomefurtheractionisrequiredtomaintaintheTax-exemptstatusofinterestontheBonds,theTrusteeandtheAuthoritymayrelyconclusivelyonsuchopinionincomplyingwiththerequirementsofthisSection,andthecovenantscontainedhereinshallbedeemedtobemodifiedtothatextent.

(d)ThecovenantsoftheAuthorityinthisSection6.06aremadesolelyinrelianceontherepresentationsandcovenantsoftheBorrowersetforthintheLoanAgreementandtheTaxCertificate,andadefaultbytheBorrowerwithrespecttheretoshallnotbeconsideredadefaultoftheAuthorityhereunder.ThecovenantsoftheAuthorityinthisSection6.06arelimitedtothoseactionswithinitscontrol,andfurtherlimitedtotheextentthatthecostsandexpensesoftakingsuchactionsarebornebytheBorrowerorathirdparty.

Section6.07.OtherCovenants.

(a)TheTrusteeshallpromptlycollectallamountsduefromtheBorrowerpursuanttotheAgreement,shallperformalldutiesimposeduponitpursuanttotheAgreementand,subjecttoSection8.03hereof,shalldiligentlyenforce,andtakeallsteps,actionsandproceedingsreasonablynecessaryfortheenforcementofalloftherightsoftheAuthority(otherthantheRetainedRights)andalloftheobligationsoftheBorrowerpursuanttotheAgreement.

(b)TheAuthorityshallnotamend,modifyorterminateanyofthetermsoftheAgreement,orconsenttoanysuchamendment,modificationortermination,withoutthepriorwrittenconsentoftheTrusteeandtheBank,ifapplicable.TheTrusteeshallgivesuchwrittenconsentonlyif(i)intheOpinionofCounsel,suchamendment,modificationorterminationwillnotmateriallyadverselyaffecttheinterestsoftheBondholdersorresultinanymaterialimpairmentofthesecurityherebygivenforthepaymentoftheBonds,or(ii)theTrusteefirstobtainsthewrittenconsentoftheHoldersofnolessthanamajorityinprincipalamountoftheBondsthenOutstandingtosuchamendment,modificationortermination,provided, however,thatnosuchamendment,modificationorterminationshallreducetheamountofLoanRepaymentstobemadetotheAuthorityortheTrusteebytheBorrowerpursuanttotheAgreement,orextendthetimeformakingsuchpayments,withoutthewrittenconsentofalloftheHoldersoftheBondsthenOutstanding,or(iii)suchamendment,modificationorterminationismadepursuanttoSection9.01(B)(6)orSection9.05.TheTrusteeandtheAuthorityshallbeentitledtorelyuponanOpinionofCounselwithrespecttotheeffectofanyamendmentsheretoortotheAgreement.TheTrusteemayinitsdiscretion,butshallnotbeobligatedto,giveitswrittenconsentifsuchamendment,modificationorterminationaffectstheTrustee’sownrights,dutiesorimmunities.

(c)TheAuthorityshallnotpurchaseBondsfromtheRemarketingAgentorotherwise.

(d)TheAuthorityshallnotbeobligatedtopaytheprincipalof,premium,ifany,orinterestontheBondsoranycostsincidentalthereto,exceptfromtheTrustEstate.TheAuthorityshallnotbedirectly,indirectly,contingentlyorotherwiseliableforanycosts,expenses,losses,damages,claimsoractions,ofanyconceivablekindonanyconceivabletheory,underorbyreasonoforinconnectionwiththisIndenture,theBondsortheAgreement,exceptonlytotheextentamountsarereceivedforthepaymentthereoffromtheBorrowerundertheAgreement.

(e)TheTrusteeherebyacknowledgesthattheAuthority’ssolesourceofmoneystorepaytheBondswillbeprovidedbytheTrustEstate,andherebyagreesthatifsuchamountsshalleverproveinsufficienttopayallprincipalof,premium,ifany,andinterestontheBondsasthesameshallbecomedue(whetherbymaturity,redemption,accelerationorotherwise)oranycostsincidentalthereto,thentheTrusteeshallgivenoticetotheBorrowerinaccordancewithArticleVIIhereoftopaysuchamountsasarerequiredfromtimetotimetopreventanydeficiencyordefaultinthepaymentofsuchprincipal,premium,ifany,orinterest,orcostsincidentaltheretoincluding,butnotlimitedto,anydeficiencycausedbyacts,omissions,nonfeasanceormalfeasanceonthepartoftheTrustee,theBorrower,theAuthorityoranythirdparty,subjecttoanyrightofreimbursementfromtheTrustee,theAuthorityoranysuchthirdparty,asthecasemaybe,therefor.

Section6.08.WaiverofLaws.TheAuthorityshallnotatanytimeinsistuponorpleadinanymannerwhatsoever,orclaimortakethebenefitoradvantageof,anystayorextensionlawnoworatanytimehereafterinforcethatmayaffectthecovenantsandagreementscontainedinthisIndentureorintheBonds,andallbenefitoradvantageofanysuchlaworlawsisherebyexpresslywaivedbytheAuthoritytotheextentpermittedbylaw.

Section6.09.FurtherAssurances.SubjecttoSection11.01hereof,theAuthoritywillmake,executeanddeliveranyandallsuchfurtherindentures,instrumentsandassurancesasmaybereasonablynecessaryorpropertocarryouttheintentionortofacilitatetheperformanceofthisIndentureandforthebetterassuringandconfirminguntotheHoldersoftheBondsoftherightsandbenefitsprovidedinthisIndenture.

Section6.10.ContinuingDisclosure.PursuanttoSection5.9oftheAgreement,theBorrowerhasundertakenallresponsibilityforcompliancewiththecontinuingdisclosurerequirementspromulgatedunderSECRule15c2-12,asitmayfromtimetotimehereafterbeamendedorsupplemented,andtheAuthorityshallhavenoliabilitytotheHoldersoftheBondsoranyotherPersonwithrespecttosuchdisclosurematters.NotwithstandinganyotherprovisionofthisIndenture,failureoftheBorrowertocomplywiththerequirementsofSECRule15c2-12,asitmayfromtimetotimehereafterbeamendedorsupplemented,shallnotbeconsideredanEventofDefault;provided, however,thattheTrustee,atthewrittenrequestoftheRemarketingAgentortheHoldersofatleast25%aggregateprincipalamountofOutstandingBonds,shall,butonlytotheextentindemnifiedand/orprovidedwithsecuritytoitssatisfactionfromandagainstanycost,liabilityorexpenseofanykindwhatsoeverrelatedthereto,including,withoutlimitation,reasonablefees,costsandexpensesofitsattorneysandadvisorsandadditionalfees,costsandexpensesoftheTrustee,oratthewrittenrequestofanyBondholderorbeneficialownerofanyBondsmay,takesuchactionsasmaybenecessaryandappropriate,includingseekingmandateorspecificperformancebycourtorder,tocausetheBorrowertocomplywithitsobligationsunderSection5.9oftheAgreement.

Section6.11.RequiredReportingtotheAuthority.

(a)TheTrusteeshallkeeporcausetobekeptproperbooksofrecordsandaccountsinwhichcompleteandaccurateentriesshallbemadeofallfundsandaccountsestablishedbyorpursuanttothisIndenture,whichshallatallreasonabletimesbesubjecttotheinspectionbytheAuthority,ortheHolders(oradesignatedrepresentativethereof)ofnotlessthantenpercent(10%)inaggregateprincipalamountoftheBondsthenoutstanding.

(b)Nolaterthan30daysafteraprincipaland/orinterestpaymentismade,theTrustee(orotherdesignatedpayingagentapprovedbytheAuthority)willprepareandfilewiththeOfficeofComptrolleroftheStateofIllinoisaC-08,NoticeofPaymentofBondInterestand/orPrincipal(bondpayments@illinoiscomptroller.gov).AcopyoftheC-08shouldbeforwardedtotheAuthoritybye-mail(bondpayments@il-fa.com).

Section6.12.RecordationandOtherInstruments.InordertoperfectthesecurityinterestoftheTrusteeintheTrustEstateandtoperfectthesecurityinterestintheNote,theAuthority,totheextentpermittedbylaw,willexecutesuchsecurityagreementsorfinancingstatements,namingtheTrusteeasassigneeandpledgeeoftheTrustEstateassignedandpledgedunderthisIndentureforthepaymentoftheprincipalof,premium,ifany,andinterestontheBondsandasotherwiseprovidedherein,andtheBorrowerwillcausethesametobedulyfiledandrecorded,asthecasemaybe,intheappropriateStateandcountyofficesasrequiredbytheprovisionsoftheUniformCommercialCodeorothersimilarlawasadoptedintheState,asfromtimetotimeamended.Tocontinuethesecurityinterestevidencedbysuchsecurityagreementsorfinancingstatements,theBorrowershallfileandrecordorcausetobefiledandrecordedsuchnecessarycontinuationstatementsorsupplementstheretoandotherinstrumentsfromtimetotimeasmayberequiredpursuanttotheprovisionsofthesaidUniformCommercialCodeorothersimilarlawtofullypreserveandprotectthesecurityinterestoftheTrusteeintheTrustEstateandtoperfectthesecurityinterestintheNote.TheAuthority,totheextentpermittedbylaw,attheexpenseoftheBorrower,shallexecuteandcausetobeexecutedanyandallfurtherinstrumentsasshallbereasonablyrequiredbytheTrusteeortheBankforsuchprotectionandperfectionoftheinterestsoftheTrustee,theregisteredownersortheBank,andtheBorroweroritsagent,asthecasemaybe,shallfileandrefileorcausetobefiledandrefiledsuchinstrumentswhichshallbenecessarytopreserveandperfectthelienofthisIndentureupontheTrustEstateuntiltheprincipalof,premium,ifany,andinterestontheBondsissuedhereundershallhavebeenpaidorprovisionfortheirpaymentshallbemadeashereinprovided.

ARTICLE VII

EVENTS OF DEFAULT AND REMEDIES OF BONDHOLDERS

Section7.01.EventsofDefault;Acceleration;WaiverofDefault.Eachofthefollowingeventswhichhasoccurredandiscontinuingshallconstitutean“EventofDefault”hereunder:

(a)defaultinthedueandpunctualpaymentoftheprincipalof,orpremium(ifany)on,anyBondwhenandasthesameshallbecomedueandpayable,whetheratmaturityasthereinexpressed,byproceedingsforredemption,bydeclarationorotherwise;

(b)defaultinthedueandpunctualpaymentofanyinstallmentofintereston,orthePurchasePriceof,anyBond,whenandasthesameshallbecomedueandpayable;

(c)failurebytheAuthoritytoperformorobserveanyotherofthecovenants,agreementsorconditionsonitspartinthisIndentureorintheBondscontained,andthe

continuationofsuchfailureforaperiodofsixty(60)daysafterwrittennoticethereof,specifyingsuchdefaultandrequiringthesametoberemedied,shallhavebeengiventotheAuthority,theBank,ifapplicable,andtheBorrowerbytheTrustee,ortotheAuthority,theBank,ifapplicable,theBorrowerandtheTrusteebytheHoldersofnotlessthanfiftypercent(50%)inaggregateprincipalamountoftheBondsatthetimeOutstanding;

(d)theoccurrenceandcontinuanceofaLoanDefaultEventdescribedinSection6.1oftheAgreement;or

(e)ifaLetterofCreditisenhancingtheBonds,receiptbytheTrusteeofnoticefromtheBankthateither(i)anEventofDefault(asdefinedintheCreditAgreement)hasoccurredundertheCreditAgreementanddirectingtheTrusteetoeither(A)acceleratetheBondsor(B)givenoticeofmandatorytenderfortheBondspursuanttoSection4.06(A)(iii),or(ii)theBankwillnotreinstatetheinterestportionoftheLetterofCredit.

Nodefaultspecifiedin(c)aboveshallconstituteanEventofDefaultunlesstheAuthorityandtheBorrowershallhavefailedtocorrectsuchdefaultwithintheapplicableperiod;provided, however,thatifthedefaultshallbesuchthatitcannotbecorrectedwithinsuchperiod,itshallnotconstituteanEventofDefaultifcorrectiveactionisinstitutedbytheAuthorityortheBorrower(ortheBankonitsbehalf)withintheapplicableperiodanddiligentlypursuedinthesoledeterminationoftheBank,ifapplicable,andiftheAuthorityortheBorrowershallwithintheapplicableperiodfurnishtotheTrusteeaCertificatecertifyingthatsuchdefaultissuchthatitcanbecorrectedbutnotwithintheapplicableperiodandthatcorrectiveactioncapableofremedyingsuchdefaulthasbeeninstitutedandisbeingdiligentlypursuedandwillbediligentlypursueduntilthedefaultiscorrected.TheAuthorityortheBorrowershallnotifytheTrusteeinwritingwhensuchdefaulthasbeencorrected.TheTrusteeshallbeentitledtoconclusivelyrelyuponanysuchCertificategivenpursuanttothisSection.WithregardtoanyallegeddefaultconcerningwhichnoticeisgiventotheBorrowerundertheprovisionsofthisSection,theBorrower(ortheBankonitsbehalf)shallhavefullauthoritytoperformanycovenantorobligationthenon-performanceofwhichisallegedinsaidnoticetoconstituteadefaultwithfullpowertodoanyandallthingsandactstothesameextentthattheAuthoritycoulddoandperformanysuchthingsandacts.

DuringthecontinuanceofanEventofDefaultdescribedin(a),(b),(c)or(d)above,unlesstheprincipalofalltheBondsshallhavealreadybecomedueandpayable,theTrusteemay,anduponthewrittenrequestoftheHoldersofnotlessthan66-2/3%inaggregateprincipalamountoftheBondsatthetimeOutstanding,orupontheoccurrenceofanEventofDefaultdescribedin(e)(i)(A)above,theTrusteeshall,unlesstheBank,ifany,hasdirectedmandatorytenderoftheBondspursuanttoSection4.06(A)(iii),promptlyuponsuchoccurrence,bynoticeinwritingtotheAuthority,theBorrowerandtheBank,ifany,declaretheprincipalofalltheBondsthenOutstanding,andtheinterestaccruedthereon,tobedueandpayableimmediately,anduponanysuchdeclarationandsubjecttotheTrustee’sreceiptofwrittennoticeofthesame,thesameshallbecomeandshallbeimmediatelydueandpayable,anythinginthisIndentureorintheBondscontainedtothecontrarynotwithstanding.UponanysuchdeclarationtheTrusteeshallpromptlydrawuponanythenexistingLetterofCreditinaccordancewiththetermsthereofandapplytheamountsodrawntopaytheprincipalofandinterestontheBondsenhancedbysuchLetterofCreditsodeclaredtobedueandpayable.InterestontheBondsshallceasetoaccrueasofthedateofdeclarationofacceleration.SubjecttotheTrustee’sreceiptofwrittennoticeofsuchdeclaration,theTrusteeshallpromptlynotifytheBondholdersofthedateofdeclarationofaccelerationandthecessationofaccrualofinterestontheBondsinthesamemannerasforanoticeofredemption.

Theprecedingparagraph,however,issubjecttotheconditionthatif,atanytimeaftertheprincipaloftheBondsshallhavebeensodeclareddueandpayable,andbeforeanyjudgmentordecreeforthepaymentofthemoneysdueshallhavebeenobtainedorenteredashereinafterprovided,andbeforeanyLetterofCredithasbeendrawnuponinaccordancewithitstermsandhonored,thereshallhavebeendepositedwiththeTrusteeasumsufficienttopay(withAvailableMoneysifaLetterofCreditisineffect)alltheprincipaloftheBondsmaturedpriortosuchdeclarationandallmaturedinstallmentsofinterest(ifany)uponalltheBonds,withinterestonsuchoverdueinstallmentsofprincipalasprovidedintheAgreement,andthereasonablefeesandexpensesoftheTrustee,includingreasonablefees,costsandexpensesofitsattorneys,andanyandallotherEventsofDefaultactuallyknowntoaResponsibleOfficeroftheTrustee(otherthaninthepaymentofprincipalofandinterestontheBondsdueandpayablesolelybyreasonofsuchdeclaration)shallhavebeenmadegoodorcuredtothesatisfactionoftheTrusteeorprovisiondeemedbytheTrusteetobeadequateshallhavebeenmadetherefor,then,andineverysuchcase,theHoldersofatleastamajorityinaggregateprincipalamountoftheBondsthenOutstanding,bywrittennoticetotheAuthorityandtotheTrustee,may,onbehalfoftheHoldersofalltheBonds,rescindandannulsuchdeclarationanditsconsequencesandwaivesuchdefault;providedtheTrusteeshallhavereceivedwrittennoticefromtheBankthattheLetterofCredithasbeenreinstatedinfull;butnosuchrescissionandannulmentshallextendtoorshallaffectanysubsequentdefault,orshallimpairorexhaustanyrightorpowerconsequentthereon.NotwithstandinganyotherprovisionofthisIndentureexceptasprovidedinthefollowingsentence,theTrusteemaynotexerciseanyremedyintheeventofanEventofDefaultunderSection7.01(a),(b)or(d)hereofwithoutthewrittenconsentoftheBank,ifany,solongaseachLetterofCreditisineffectandtheBankhasnotwrongfullyfailedtomakeapaymentthereunder.TheTrusteemayexerciseanyandallremediesundertheIndentureandtheAgreement(exceptacceleration)tocollectanyfees,expensesandindemnificationfromtheBorrowerduetoitineachofitscapacitiesunderthetermsoftheIndentureortheLoanAgreementwithoutobtainingtheconsentoftheBank,ifany.

Section7.02.InstitutionofLegalProceedingsbyTrustee.SubjecttoSection7.01hereof,ifoneormoreoftheEventsofDefaultshallhappenandbecontinuing,theTrusteeinitsdiscretionmay,anduponthewrittenrequestofHoldersofnotlessthan66-2/3%inaggregateprincipalamountoftheBondsthenOutstandinganduponbeingindemnifiedand/orprovidedwithsecuritytoitssatisfactionthereforpursuanttoSection8.03(G)hereof,shall,proceedtoprotectorenforceitsrightsortherightsoftheHoldersofBondsundertheActorunderthisIndenture,theAgreement,theNote,theGuarantyoranyLetterofCreditbyasuitinequityoractionatlaw,eitherforthespecificperformanceofanycovenantoragreementcontainedhereinortherein,orinaidoftheexecutionofanypowerhereinorthereingranted,orbymandamusorotherappropriateproceedingfortheenforcementofanyotherlegalorequitableremedyastheTrusteeshalldeemmosteffectualinsupportofanyofitsrightsordutieshereunder.

Section7.03.ApplicationofRevenuesandOtherFundsAfterDefault.IfanEventofDefaultshalloccurandbecontinuing,allRevenuesandanyotherfundsthenheldorthereafterreceivedbytheTrusteeunderanyoftheprovisionsofthisIndenture(subjecttoSections4.07(G),

5.06,6.06and11.11hereof)shallbepromptlyappliedbytheTrusteeasfollowsandinthefollowingorder:

(1)TothepaymentofreasonablefeesandexpensesoftheTrusteeineachofitscapacitieshereunder(includingreasonablefees,costs,expensesanddisbursementsofitscounsel)incurredinandabouttheperformanceofitspowersanddutiesunderthisIndenture,theLoanAgreementandanyotherdocumentrelatedthereto(provided, however,thatnomoneysinanyLetterofCreditAccountoftheRevenueFundmaybeusedtopaysuchexpenses)andtothepaymentofreasonablefeesandexpensesoftheAuthorityandAuthorityIndemnifiedPersonsandanyotherpaymentsduetotheAuthorityinrespectoftheRetainedRights(including,withoutlimitation,indemnificationpayments);

(2)TothepaymentoftheprincipalofandinterestthendueontheBonds(uponpresentationoftheBondstobepaid,andstampingthereonofthepaymentifonlypartiallypaid,orsurrenderthereofiffullypaid)subjecttotheprovisionsofthisIndenture(includingSection6.02hereof),asfollows:

(i)UnlesstheprincipalofalloftheBondsshallhavebecomeorhavebeendeclareddueandpayable,

First:TothepaymenttothePersonsentitledtheretoofallinstallmentsofinterestthendueintheorderofthematurityofsuchinstallments,and,iftheamountavailableshallnotbesufficienttopayinfullanyinstallmentorinstallmentsmaturingonthesamedate,thentothepaymentthereofratably,accordingtotheamountsduethereon,tothePersonsentitledthereto,withoutanydiscriminationorpreference;

Second:TothepaymenttothePersonsentitledtheretooftheunpaidprincipalofanyBondswhichshallhavebecomedue,whetheratmaturityorbycallforredemption,withinterestontheoverdueprincipalattheratebornebytherespectiveBonds,and,iftheamountavailableshallnotbesufficienttopayinfullalltheBonds,togetherwithsuchinterest,thentothepaymentthereofratably,accordingtotheamountsofprincipaldueonsuchdatetothePersonsentitledthereto,withoutanydiscriminationorpreference;and

Third:IfaLetterofCreditisenhancingtheBonds,toreimbursetheBankforanyunreimbursedobligationsowedundertheCreditAgreement.

(ii)IftheprincipalofalloftheBondsshallhavebecomeorhavebeendeclareddueandpayable,tothepaymentoftheprincipalandinterestthendueandunpaidupontheBonds,withinterestontheoverdueprincipalattheratebornebytheBonds,and,iftheamountavailableshallnotbesufficienttopayinfullthewholeamountsodueandunpaid,thentothepaymentthereofratably,withoutpreferenceorpriorityofprincipaloverinterest,orofinterestoverprincipal,orofanyinstallmentofinterestoveranyotherinstallmentofinterest,orofanyBondoveranyotherBond,accordingtotheamountsduerespectivelyforprincipalandinterest,tothePersonsentitledtheretowithoutanydiscriminationorpreference;

(3)TothepaymentofanyamountsowingtotheBankoranyotherproviderofcreditundertheCreditAgreementoranyrelateddocuments;provided, however,thatinno

eventshallmoneysderivedfromdrawingsunderaLetterofCredit,moneyssetasidetopayprincipalorinterestonanyparticularBonds(includingmoneysheldfornon-presentedBondsorheldunderSection10.03hereof),orTenderProceedsbeusedtopayanyoftheitemslistedinclause(1)ofthisSectionandAvailableMoneysandmoneysbeingagedtobecomeAvailableMoneysshallnotbeusedtopayanyoftheitemslistedinclause(1)ofthisSectionuntilallamountshavebeenpaidunderclause(2)ofthisSection;providedfurtherthatproceedsofadrawonaLetterofCreditandTenderProceedsshallbeusedsolelytopayprincipal,interest,premium,orPurchasePriceoftheBondsasotherwiseprovidedherein.

Section7.04.TrusteetoRepresentBondholders.TheTrusteeisherebyirrevocablyappointed(andthesuccessiverespectiveHoldersoftheBonds,bytakingandholdingthesame,shallbeconclusivelydeemedtohavesoappointedtheTrustee)astrusteeandtrueandlawfulattorney-in-factoftheHoldersoftheBondsforthepurposeofexercisingandprosecutingontheirbehalfsuchrightsandremediesasmaybeavailabletosuchHoldersundertheprovisionsoftheBonds,thisIndenture,theAgreement,theGuaranty,theNote,anyLetterofCredit,theActandapplicableprovisionsofanyotherlaw.SubjecttoSection7.01hereof,upontheoccurrenceandcontinuanceofanEventofDefaultorotheroccasiongivingrisetoarightintheTrusteetorepresenttheBondholders,theTrusteemay(butshallnotbeobligatedto),anduponthewrittenrequestoftheHoldersofnotlessthan66-2/3%inaggregateprincipalamountoftheBondsthenOutstanding,anduponbeingindemnifiedand/orprovidedwithsecuritytoitssatisfactiontherefor,shall,proceedtoprotectorenforceitsrightsortherightsofsuchHoldersbysuchappropriateaction,suit,mandamusorotherproceedingsasitshalldeemmosteffectualtoprotectandenforceanysuchright,atlaworinequity,eitherforthespecificperformanceofanycovenantoragreementcontainedherein,orinaidoftheexecutionofanypowerhereingranted,orfortheenforcementofanyotherappropriatelegalorequitablerightorremedyvestedintheTrusteeorinsuchHoldersunderthisIndenture,theAgreement,theGuaranty,theNote,anyLetterofCredit,theActoranyotherlaw;anduponinstitutingsuchproceeding,theTrusteeshallbeentitled,asamatterofright,totheappointmentofareceiveroftheTrustEstate,pendingsuchproceedings.AllrightsofactionunderthisIndentureortheBondsorotherwisemaybeprosecutedandenforcedbytheTrusteewithoutthepossessionofanyoftheBondsortheproductionthereofinanyproceedingrelatingthereto,andanysuchsuit,actionorproceedinginstitutedbytheTrusteeshallbebroughtinthenameoftheTrusteeforthebenefitandprotectionofalltheHoldersofsuchBonds,subjecttotheprovisionsofthisIndenture(includingSection6.02hereof).

Section7.05.Bondholders’DirectionofProceedings.AnythinginthisIndenturetothecontrarynotwithstanding,butsubjecttoSection8.03(G),theHoldersofatleastfiftypercent(50%)inaggregateprincipalamountoftheBondsthenOutstandingshallhavetheright,byaninstrumentorconcurrentinstrumentsinwritingexecutedanddeliveredtotheTrustee,todirectthemethodofconductingallremedialproceedingstakenbytheTrusteehereunder,providedthatsuchdirectionshallnotbeotherwisethaninaccordancewithlawandtheprovisionsofthisIndenture,andthattheTrusteeshallhavetherighttodeclinetofollowanysuchdirectionwhichintheopinionoftheTrustee(whichmaybebaseduponanopinionofcounsel)wouldbeunjustlyprejudicialtoBondholdersnotpartiestosuchdirection(itbeingunderstoodthattheTrusteedoesnothaveanaffirmativedutytoascertainwhetherornotanysuchdirectionsareundulyprejudicialtosuchBondholders)orforwhichithasnotbeenprovidedadequateindemnityand/orsecurity.

Section7.06.LimitationonBondholders’RighttoSue.SubjecttoSection7.01hereof,noHolderofanyBondshallhavetherighttoinstituteanysuit,actionorproceedingatlaworinequity,fortheprotectionorenforcementofanyrightorremedyunderthisIndenture,theAgreement,theGuaranty,theNote,anyLetterofCredit,theActoranyotherapplicablelawwithrespecttosuchBond,unless(1)suchHoldershallhavegiventotheTrusteewrittennoticeoftheoccurrenceofanEventofDefault;(2)theHoldersofnotlessthanfiftypercent(50%)inaggregateprincipalamountoftheBondsthenOutstandingshallhavemadewrittenrequestupontheTrusteetoexercisethepowershereinbeforegrantedortoinstitutesuchsuit,actionorproceedinginitsownname;(3)subjecttoSection8.03(G)hereof,suchHolderorsaidHoldersshallhavetenderedtotheTrusteeindemnityand/orsecuritysatisfactorytoitagainstthecosts,expensesandliabilitiestobeincurredincompliancewithsuchrequest;and(4)theTrusteeshallhaverefusedoromittedtocomplywithsuchrequestforaperiodofsixty(60)daysaftersuchwrittenrequestshallhavebeenreceivedby,andsaidtenderofindemnityand/orsecurityshallhavebeenmadeto,theTrustee.

Suchnotification,request,tenderofindemnityand/orsecurityandrefusaloromissionareherebydeclared,ineverycase,tobeconditionsprecedenttotheexercisebyanyHolderofBondsofanyremedyhereunderorunderlaw;itbeingunderstoodandintendedthatnooneormoreHoldersofBondsshallhaveanyrightinanymannerwhateverbysuchHolders’actiontoaffect,disturborprejudicethesecurityofthisIndentureortherightsofanyotherHoldersofBonds,ortoenforceanyrightunderthisIndenture,theAgreement,theGuaranty,theNote,anyLetterofCredit,theActorotherapplicablelawwithrespecttotheBonds,exceptinthemannerhereinprovided,andthatallproceedingsatlaworinequitytoenforceanysuchrightshallbeinstituted,hadandmaintainedinthemannerhereinprovidedandforthebenefitandprotectionofallHoldersoftheOutstandingBonds,subjecttotheprovisionsofthisIndenture(includingSection6.02hereof).

Section7.07.AbsoluteObligationofAuthority.SubjecttoSection11.01,nothinginSection7.06orinanyotherprovisionofthisIndenture,orintheBonds,shallaffectorimpairtheobligationoftheAuthority,whichisabsoluteandunconditional,topaytheprincipalof,premium,ifany,andinterestontheBondstotherespectiveHoldersoftheBondsattheirrespectivedatesofmaturity,oruponcallforredemption,ashereinprovided,butonlyoutoftheTrustEstate,oraffectorimpairtherightofsuchHolders,whichisalsoabsoluteandunconditional,toenforcesuchpaymentbyvirtueofthecontractembodiedintheBonds.

Section7.08.TerminationofProceedings.IncaseanyproceedingstakenbytheTrusteeoranyoneormoreBondholdersonaccountofanyEventofDefaultshallhavebeendiscontinuedorabandonedforanyreasonorshallhavebeendeterminedadverselytotheTrusteeortheBondholders,thenineverysuchcasetheAuthority,theBank,ifany,theTrusteeandtheBondholders,subjecttoanydeterminationinsuchproceedings,shallberestoredtotheirformerpositionsandrightshereunder,severallyandrespectively,andallrights,remedies,powersanddutiesoftheAuthority,theBank,theTrusteeandtheBondholdersshallcontinueasthoughnosuchproceedingshadbeentaken.

Section7.09.RemediesNotExclusive.NoremedyhereinconferreduponorreservedtotheTrustee,theBank,ifany,ortotheHoldersoftheBondsisintendedtobeexclusiveofanyotherremedyorremedies,andeachandeverysuchremedy,totheextentpermittedbylaw,shallbecumulativeandinadditiontoanyotherremedygivenhereunderornoworhereafterexistingatlaworinequityorotherwise.

Section7.10.NoWaiverofDefault.NodelayoromissionoftheTrustee,theBank,ifany,orofanyHolderoftheBondstoexerciseanyrightorpowerarisingupontheoccurrenceofanydefaultshallimpairanysuchrightorpowerorshallbeconstruedtobeawaiverofanysuchdefaultoranacquiescencetherein;andeverypowerandremedygivenbythisIndenturetotheTrustee,theBank,ifany,ortotheHoldersoftheBondsmaybeexercisedfromtimetotimeandasoftenasmaybedeemedexpedient.

Section7.11.Non-ImpairmentofAuthority.NothinginthisIndentureshallbedeemedorconstruedtolimit,impairoraffectinanywaytheAuthority’s(oranyAuthorityIndemnifiedPerson’s)righttoenforcetheRetainedRights,regardlessofwhetherthereisthenexistinganEventofDefault(including,withoutlimitation,apaymentdefault),oranyactionbasedthereonoroccasionedbyanEventofDefaultorallegedEventofDefault,andregardlessofanywaiverorforbearancegrantedbytheTrusteeoranyBondholderinrespectthereof.AnydefaultorEventofDefaultinrespectoftheRetainedRightsmayonlybewaivedwiththeAuthority’swrittenconsent.

Section7.12.ConsenttoDefaults.NotwithstandinganyotherprovisionsofthisArticleVII,andsubjecttoSection8.03(G)hereof,solongasaLetterofCreditisinplaceandtheBankisnotcontinuingwrongfullytodishonordrawingsunderanyLetterofCredit,noEventofDefaultshallbedeclaredpursuanttoSection7.01(a),(b)or(d)hereof(exceptinacaseresultingfromthefailureoftheBorrowertopaytheTrustee’sandtheAuthority’sfeesandexpensesortoindemnifytheTrusteeandtheAuthority,ortomakeanypaymentsdueinrespectoftheRetainedRights),noranyremediesexercisedwithrespecttoanyEventofDefaultotherthananEventofDefaultdeclaredpursuanttoSection7.01(e)hereofbytheTrusteeorbytheBondholders(exceptinacaseresultingfromthefailureoftheBorrowertopaytheTrustee’sfeesandexpensesortoindemnifytheTrustee),andnoEventofDefaultunderthisIndentureshallbewaivedbytheTrusteeortheBondholderstotheextenttheymayotherwisebepermittedhereunder,without,inanycase,thepriorwrittenconsentoftheBank.SolongasanyLetterofCreditisinplaceandtheBankisnotcontinuingwrongfullytodishonordrawingsunderanyLetterofCredit,noEventofDefaultcanbewaived,inanycircumstance,unlesstheTrusteehasreceivedwrittennoticefromtheBankthattheLetterofCredithasbeenfullyreinstatedandisinfullforceandeffectandthatanynoticefromtheBankdeclaringanEventofDefault(asdefinedundertheCreditAgreement)undertheCreditAgreementhasbeenrescindedbytheBank.NothinginthisSectionshallbedeemedtolimitinanyrespecttherightoftheAuthoritytoenforceorwaiveanyofitsRetainedRightsundertheAgreement.

ARTICLE VIII

THE TRUSTEE, THE PAYING AGENT, THE BOND REGISTRAR, THE TENDER AGENT, THE REMARKETING AGENT AND THECALCULATION AGENT

Section8.01.Duties,ImmunitiesandLiabilitiesofTrustee.(A)TheTrusteeshall,priortoanEventofDefault,andafterthecuringorwaiverofallEventsofDefaultwhichmayhaveoccurred,performsuchdutiesandonlysuchdutiesasarespecificallysetforthinthisIndenture.TheTrusteeshall,duringtheexistenceofanyEventofDefault(whichhasnotbeen

curedorwaived),exercisesuchoftherightsandpowersvestedinitbythisIndenture,andusethesamedegreeofcareandskillintheirexerciseasprudentpersonswouldexerciseoruseunderthecircumstancesintheconductoftheirownaffairs.IftheTrusteeisnottheBondRegistrartheprovisionsofSection8.01(A)(a)and(b)applytoanysuchotherBondRegistrarastheyapplytotheTrustee.

NoprovisionofthisIndentureshallbeconstruedtorelievetheTrusteefromliabilityforitsowngrosslynegligentactionoritsowngrosslynegligentfailuretoact,exceptthat:

(a)PriortosuchanEventofDefaulthereunderandafterthecuringofallEventsofDefaultwhichmayhaveoccurred,

(1)thedutiesandobligationsoftheTrusteeshallbedeterminedsolelybytheexpressprovisionsofthisIndenture,theTrusteeshallnotbeliableexceptfortheperformanceofsuchdutiesandobligationsasarespecificallysetforthinthisIndenture,andnoimpliedcovenantsorobligationsshallbereadintothisIndentureagainsttheTrustee;and

(2)intheabsenceofgrossnegligenceorwillfulmisconductonthepartoftheTrustee,theTrusteemayconclusivelyrely,astothetruthofthestatementsandthecorrectnessoftheopinionsexpressedtherein,uponanycertificateoropinionfurnishedtotheTrusteeconformingtotherequirementsofthisIndenture;butinthecaseofanysuchcertificateoropinionwhichbyanyprovisionhereofisspecificallyrequiredtobefurnishedtotheTrustee,theTrusteeshallbeunderadutytoexaminethesametodeterminewhetherornotitconformstotherequirementsofthisIndenture.

(b)Atalltimes,regardlessofwhetherornotanyEventofDefaultshallexist,

(1)theTrusteeshallnotbeliableforanyerrorofjudgmentmadeingoodfaithbyaresponsibleofficer,directororemployeeoftheTrusteeunlessitshallbeprovedthattheTrusteewasgrosslynegligentinascertainingthepertinentfacts;and

(2)theTrusteeshallnotbeliablewithrespecttoanyactiontakenoromittedtobetakenbyitingoodfaithinaccordancewiththedirectionoftheHoldersofnotlessthanamajority,orsuchlargerpercentageasmayberequiredhereunder,inaggregateprincipalamountoftheBondsatthetimeoutstandingrelatingtothetime,methodandplaceofconductinganyproceedingforanyremedyavailabletotheTrustee,orexercisinganytrustorpowerconferredupontheTrusteeunderthisIndenture.

NoneoftheprovisionscontainedinthisIndentureshallrequiretheTrusteetoexpendorriskitsownfundsorotherwiseincurindividualfinancialliabilityintheperformanceofanyofitsdutiesorintheexerciseofanyofitsrightsorpowersotherthantonotifytheAuthoritythatitintendstotakenoparticularactionortonotifytheBondholdersthatitwilltakenoactionifadequateindemnityand/orsecuritysatisfactoryagainstsuchriskorliabilityisnotassuredtoit.AllindemnificationsandreleasesfromliabilitygrantedhereinorundertheLoanAgreementtotheTrusteeshallextendtothedirectors,officers,employees,agents,successorsandassignsoftheTrusteeandtotheTrusteeineachofitscapacitieshereunder.

(B)TheAuthoritymayremovetheTrusteeatanytimeuponitsowndecisionoruponRequestoftheBorrower,andshallremovetheTrusteeifatanytimerequestedtodosobyaninstrumentorconcurrentinstrumentsinwritingsignedbytheHoldersofnotlessthanamajorityinaggregateprincipalamountoftheBondsthenOutstanding(ortheirattorneysdulyauthorizedinwriting)orifatanytimetheTrusteeshallceasetobeeligibleinaccordancewithsubsection(F)ofthisSection,orshallbecomeincapableofacting,orshallbeadjudgedbankruptorinsolvent,orareceiveroftheTrusteeoritspropertyshallbeappointed,oranypublicofficershalltakecontrolorchargeoftheTrusteeorofitspropertyoraffairsforthepurposeofrehabilitation,conservationorliquidation,ineachcasebygivingthirty(30)days’priorwrittennoticeofsuchremovaltotheTrustee.

(C)TheTrusteemayatanytimeresignbygivingwrittennoticeofsuchresignationtotheAuthority,theBorrowerandtheBank,ifany,notlessthanforty-five(45)daysbeforethedatespecifiedinsuchnoticewhensuchresignationshalltakeeffect,andbygivingtheBondholdersnoticeofsuchresignationbymailattheaddressesshownontheregistrationbooksmaintainedbytheTrusteenotlessthantwenty(20)dayspriortosuchresignationdate.

(D)IntheeventthattheTrusteehereundershallgivenoticeofresignationorberemoved,orbedissolved,orshallbeinthecourseofdissolutionorliquidation,orotherwisebecomeincapableofactinghereunder,orincaseitshallbetakenunderthecontrolofanypublicofficeoroffices,orofareceiverappointedbyacourt,theBorrowermay(totheextentthatnoEventofDefaultshallhaveoccurredandbecontinuinghereunderorundertheLoanAgreement),withthepriorwrittenconsentoftheAuthorityandtheBank,ifany,appointasuccessorTrusteeandshallconfirmsuchappointmentinwritingdeliveredpersonallyorsentbyfirstclassmail,postageprepaid,totheAuthority,retiringTrustee,successorTrustee,Bank,ifany,andRemarketingAgent,ifany.

PendingsuchappointmentbytheBorrowerasprovidedabove,theAuthoritymay,withtheconsentoftheBorrower(totheextentthatnoEventofDefaultshallhaveoccurredandbecontinuinghereunderorundertheLoanAgreement)andtheBank,ifany,appointatemporarysuccessorTrusteebyaninstrumentinwritingsignedbyanauthorizedofficeroftheAuthority,acopyofwhichshallbedeliveredpersonallyorsentbyfirstclassmail,postageprepaid,totheretiringTrustee,thesuccessorTrustee,theBorrower,theBank,ifany,andtheRemarketingAgent,ifany.IfnopermanentsuccessorTrusteeshallhavebeenappointedbytheBorrowerwithinsix(6)calendarmonthsnextsucceedingthemonthduringwhichtheAuthorityappointssuchatemporaryTrustee,suchtemporaryTrusteeshallwithoutfurtheractiononthepartoftheAuthorityortheBondholdersbecomethepermanentsuccessorTrustee.

(E)AnyremovalorresignationoftheTrusteepursuantto(B)or(C)aboveandappointmentofasuccessorTrusteeshallbecomeeffectiveuponacceptanceofappointmentbythesuccessorTrustee.IftheBorrowerortheAuthorityfailtosoappointasuccessorTrustee(whetherpermanentortemporary)hereunderwithinforty-five(45)daysaftertheTrusteehasgivennoticeofitsresignation,hasbeenremoved,hasbeendissolved,hasotherwisebecomeincapableofactinghereunderorhasbeentakenundercontrolbyapublicofficerorreceiver,theTrusteeshallhavetherighttopetitionacourtofcompetentjurisdictiontoappointasuccessorhereunder.

(F)AnyTrusteeappointedundertheprovisionsofthisSectioninsuccessiontotheTrusteeshallbeatrustcompany,nationalassociationorbankorganizedandingoodstandingunderthelawsoftheState,theUnitedStatesofAmericaoranystateortheDistrictofColumbiaandhaveacombinedtotalcapitalandsurplusofnotlessthan$50,000,000assetforthinitsmostrecentpublishedannualreportofcondition,oralternatively,aliabilitypolicyhavingthetypeofcoverageandinanamountacceptabletotheAuthorityandtheBorrower.EverysuchTrusteeshallhaveanoperationsgroupofatleastfour(4)experiencedtrustofficers,withresponsibilityformunicipalbondissuesandshallhaveatleast25municipalbondindenturesaggregatingatleast$25,000,000underitsadministration.IncaseatanytimetheTrusteeshallceasetobeeligibleinaccordancewiththeprovisionsofthissubsection(F),theTrusteeshallresignimmediatelyinthemannerandwiththeeffectspecifiedinthisSection.

(G)AnysuccessorTrusteeappointedunderthisIndentureshallsignifyitsacceptanceofsuchappointmentbyexecutinganddeliveringtotheAuthorityandtoitspredecessorTrusteeawrittenacceptancethereof,andthereuponsuchsuccessorTrustee,withoutanyfurtheract,deedorconveyance,shallbecomevestedwithallthemoneys,estates,properties,rights,powers,trusts,dutiesandobligationsofsuchpredecessorTrustee,withlikeeffectasiforiginallynamedTrusteeherein;provided,however,thatattheRequestoftheAuthorityorthewrittenrequestofthesuccessorTrustee,suchpredecessorTrusteeshallexecuteanddeliveranyandallinstrumentsofconveyanceorfurtherassuranceanddosuchotherthingsasmayreasonablyberequiredformorefullyandcertainlyvestinginandconfirmingtosuchsuccessorTrusteealltheright,titleandinterestofsuchpredecessorTrusteeinandtoanypropertyheldbyitunderthisIndentureandshallpayover,transfer,assignanddelivertothesuccessorTrusteeanymoneyorotherpropertysubjecttothetrustsandconditionshereinsetforth.UponrequestofthesuccessorTrustee,theAuthorityshallexecuteanddeliveranyandallinstrumentsasmaybereasonablyrequiredformorefullyandcertainlyvestinginandconfirmingtosuchsuccessorTrusteeallsuchmoneys,estates,properties,rights,powers,trusts,dutiesandobligations.UponacceptanceofappointmentbyasuccessorTrusteeasprovidedinthissubsection,thesuccessortrusteeshallmailanoticeofthesuccessionofsuchTrusteetothetrustshereundertoeachRatingAgencywhichisthenratingtheBonds,totheBondholdersattheaddressesshownontheregistrationbooksmaintainedbytheTrustee,totheBorrower,theRemarketingAgent,ifany,andtotheBank,ifany.

(H)NotwithstandinganyprovisionsofthisSection8.01tothecontraryconcerningtheresignationorremovaloftheTrusteeortheappointmentofasuccessorTrustee,forsolongasaLetterofCreditisineffectwithrespecttotheBonds,nosuchresignation,removalorappointmentshallbeeffectiveuntiltheBankshallhaveissuedanddeliveredtothesuccessorTrustee(i)asubstituteLetterofCreditinfavorofthesuccessorTrusteeinsubstantiallythesameformastheexistingLetterofCredit,whereupontheTrusteeshallreturntheexistingLetterofCredittotheBankforcancellationor(ii)anamendmenttotheexistingLetterofCreditevidencingthetransferthereoftothesuccessorTrustee.

(I)TheTrusteeisnotresponsibleforeffecting,maintainingorrenewinganypoliciesofinsuranceoftheBorrowerorforanyrepresentationsregardingthesufficiencyofanypolicyofinsuranceoftheBorrowerandshallnotberesponsibleformonitoringorreviewinganypolicyofinsuranceoftheBorrowerorbeobligatedtofileclaimsorproofsoflossinthecaseofinsuranceortopaytaxesorassessments.

(J)TheTrusteeshallnotberesponsibleforfilingfinancingorcontinuationstatementsinanypublicofficeatanytimeorotherwiseperfectormaintaintheperfectionofanysecurityinterestorliengrantedtoithereunderortorecordthisIndenture.

(K)SubjecttotheprovisionsofSections5.06and10.03hereof,allmoneysreceivedbytheTrusteeandtheTenderAgentshall,untilusedorappliedashereinprovided,beheldintrustforthepurposesforwhichtheywerereceived,butneednotbesegregatedfromotherfundsexceptdrawsontheLetterofCredit,allAvailableMoneys,allTenderProceeds,allmoneysbeingagedtobecomeAvailableMoneys,andotherwiseexcepttotheextentrequiredbylaworbythisIndenture.TheTrusteeandtheTenderAgentshallbeundernoliabilityforinterestonanymoneysreceivedbythemhereunder.Anyinterestallowedonanysuchmoneysshallbedepositedinthefundoraccounttowhichsuchmoneysarecredited.AnymoneysheldbytheTrusteeortheTenderAgentmaybedepositedbyitinitsbankingdepartmentandinvestedasprovidedherein.

(L)TheTrusteeshallnotberesponsiblefortheBorrower’suseoftheproceedsfromtheBonds.

(M)TheTrusteeagreestoacceptandactuponinstructionsordirectionspursuanttothisIndentureortheAgreementsentbyunsecurede-mail,facsimiletransmissionorothersimilarunsecuredelectronicmethods,provided,however,that:(1)subsequenttosuchfacsimiletransmissionofwritteninstructionsordirectionstheTrusteeshallforthwithreceivetheoriginallyexecutedinstructionsordirections,(2)suchoriginallyexecutedinstructionsordirectionsshallbesignedbyapersonasmaybedesignatedandauthorizedtosignforthepartysigningsuchinstructionsordirectionsand(3)theTrusteeshallhavereceivedacurrentincumbencycertificatelistingpersonsdesignatedtogivesuchinstructionsordirectionsandcontainingthespecimensignatureofsuchdesignatedpersons,whichsuchincumbencycertificateshallbeamendedandreplacedwheneverapersonistobeaddedordeletedfromthelisting.IftheBorrowerelectstogivetheTrusteee-mailorfacsimileinstructions(orinstructionsbyasimilarelectronicmethod)andtheTrusteeinitsdiscretionelectstoactuponsuchinstructions,theTrustee’sunderstandingofsuchinstructionsshallbedeemedcontrolling.TheTrusteeshallnotbeliableforanylosses,costsorexpensesarisingdirectlyorindirectlyfromtheTrustee’srelianceuponandcompliancewithsuchinstructionsnotwithstandingsuchinstructionsconflictorareinconsistentwithasubsequentwritteninstruction.TheBorroweragreestoassumeallrisksarisingoutoftheuseofsuchelectronicmethodsbytheBorrowertosubmitinstructionsanddirectionstotheTrustee,including,withoutlimitation,theriskoftheTrusteeactingonunauthorizedinstructionsandtheriskofinterceptionandmisusebythirdparties.InstructionsordirectionsexecutedbyanAuthorizedRepresentativeoftheBank,ifany,ortheBorrowershallbedeemedtobeincompliancewithclauses(2)and(3)ofthisparagraph.

(N)ThepermissiverightsoftheTrusteetodothingsenumeratedintheIndentureshallnotbeconstruedasaduty.

(O)EachoftherightsandprotectionsoftheTrusteeunderthisIndentureshallalsobeaffordedtotheTrusteeineachcapacityorsub-capacity,asapplicable,thatitservesunderthisIndentureandtheLoanAgreementandallotheragreementsrelatedthereto.

(P)TheTrusteemakesthefollowingrepresentationstotheAuthority:

(I)Allfederal,stateandlocalgovernmental,public,andregulatoryauthorityapprovals,consents,notices,authorizations,registrations,licenses,exemptionsandfilingsthatarerequiredtohavebeenobtainedormadebytheTrusteewithrespecttotheauthorization,execution,delivery,andperformanceby,ortheenforcementagainstorby,theTrusteeofthisIndenturehavebeenobtainedandareinfullforceandeffectandallconditionsofsuchapprovals,consents,notices,authorizations,registrations,licenses,exemptionsandfilingshavebeenfullycompliedwith.

(II)TheTrusteeisnot(i)requiredtoqualifyorobtainanycertificateofauthoritytodobusinessintheStateor(ii)subjecttoanyfilingrequirementtomakeanyorpayanyfeesortaxesrequiredofforeignentitiesdoingbusinessintheState,ineithercasesolelyasaresultofexecuting,delivering,orperformingthisIndenture.

(III)TheTrusteehasacombinedcapitalandsurplusofatleast$50,000,000or,alternatively,aliabilitypolicyhavingthetypeofcoverageandinanamountacceptabletotheAuthorityandtheBorrower.TheTrusteehasanoperationsgroupofatleastfourexperiencedtrustofficers,withresponsibilityformunicipalbondissues.TheTrusteeadministersatleast25municipalbondindenturesaggregatingatleast$25,000,000underitsadministration.

Section8.02.MergerorConsolidation.AnycompanyintowhichtheTrusteemaybemergedorconvertedorwithwhichitmaybeconsolidated,oranycompanyresultingfromanymerger,conversionorconsolidationtowhichitshallbeaparty,oranycompanytowhichtheTrusteemaysellortransferallorsubstantiallyallofitsmunicipalcorporatetrustbusiness,providedsuchcompanyshallbeeligibleundersubsection(F)ofSection8.01,shallbethesuccessortosuchTrusteewithouttheexecutionorfilingofanypaperoranyfurtheract,anythinghereintothecontrarynotwithstanding.

Section8.03.LiabilityofTrustee.

(A)Therecitals,statementsandrepresentationsoffactshereinandintheBondscontainedshallbetakenasstatementsoftheAuthorityandnottheTrustee,andtheTrusteeshallnotassumenorhaveanyresponsibilityorobligationforthecorrectnessofthesame,ormakeanyrepresentationsastothevalidity,priorityorsufficiencyofthisIndenture,theLoanAgreement,oftheBondsortheperfectionormaintenanceoftheperfectionofanysecurityinterestgrantedhereby.Inaddition,theTrusteeshallassumenoresponsibilitywithrespecttothisIndentureortheBondsotherthaninconnectionwiththedutiesorobligationsassignedtoorimposedupontheTrusteehereinorintheBonds.TheTrusteeshall,however,beresponsibleforitsrepresentationscontainedinitscertificateofauthenticationontheBonds.TheTrusteeshallnotbeliableinconnectionwiththeperformanceofitsdutieshereunder,exceptforitsowngrossnegligenceorwillfulmisconduct.TheTrusteemaybecometheHolderofBondswiththesamerightsitwouldhaveifitwerenotTrusteeand,totheextentpermittedbylaw,mayactasdepositoryforandpermitanyofitsofficersordirectorstoactasamemberof,orinanyothercapacitywithrespectto,anycommitteeformedtoprotecttherightsofBondholders,whetherornotsuchcommitteeshallrepresenttheHoldersofamajorityinprincipalamountoftheBondsthenOutstanding.

TheTrusteemayexecuteanyofthetrustsorpowerssetforthhereinandperformthedutiesrequiredofithereunderbyorthroughattorneys,agents,employeesorreceiversandshallbe

entitledtoandmayconclusivelyrelyupontheadviceofcounselconcerningallmattersoftrustsanditsdutieshereinandshallnotbeanswerablefortheconductofanysuchattorney,agent,employeeorreceiverifappointedbytheTrusteewithreasonablecare.

(B)TheTrusteeshallnotbeliableforanyexerciseofanydiscretionorpowerunderthisIndentureorerrorofjudgmentmadeingoodfaithbyaresponsibleofficer,directororemployeeunlessitshallbeprovedthattheTrusteewasgrosslynegligentinascertainingthepertinentfacts.

(C)TheTrusteeshallnotbeliablewithrespecttoanyactionorinactiontakenoromittedtobetakenbyitingoodfaithinaccordancewiththedirectionoftheHoldersofnotlessthanamajorityinaggregateprincipalamountoftheBondsatthetimeOutstandingrelatingtothetime,methodandplaceofconductinganyproceedingforanyremedyavailabletotheTrustee,orexercisinganytrustorpowerconferredupontheTrusteeunderthisIndenture.

(D)TheTrusteeshallbeundernoobligationtoexerciseanyoftherightsorpowersvestedinitbythisIndentureattherequest,orderordirectionofanyoftheBondholderspursuanttotheprovisionsofthisIndentureunlesssuchBondholdersshallhaveofferedtotheTrusteesecurityand/orindemnitysatisfactorytoitagainstthecosts,expensesandliabilities(including,butnotlimitedto,attorney’sfees,costsandexpenses)whichmaybeincurredthereinorthereby.

(E)TheTrusteeshallnotbeliableforanyactionorinactiontakenbyitingoodfaithandbelievedbyittobeauthorizedorwithinthediscretionorrightsorpowersconferreduponitbythisIndenture.

(F)ExceptforEventsofDefaultunderSection7.01(a)and(b),theTrusteeshallnotbedeemedtohaveknowledgeofanydefaultorEventofDefaulthereunderunlessanduntilaResponsibleOfficeroftheTrusteeshallhavereceivedwrittennoticethereof,atitsCorporateTrustOffice,andsuchnoticereferencestheBorrower,thisIndentureandtheBonds.Exceptasotherwiseexpresslyprovidedherein,theTrusteeshallnotbeboundtoascertainorinquireastotheperformanceorobservanceofanyoftheterms,conditions,covenantsoragreementshereinorofanyofthedocumentsexecutedinconnectionwiththeBonds,orastotheexistenceofadefaultorEventofDefaultthereunder.TheTrusteeshallnotberesponsibleforthevalidityoreffectivenessofanycollateralgiventoorheldbyit.

(G)NoprovisionofthisIndentureshallrequiretheTrusteetoexpendorriskitsownfundsorotherwiseincuranyfinancialliabilityintheperformanceofanyofitsdutieshereunder,orintheexerciseofitsrightsorpowers,otherthantonotifytheAuthoritythatitintendstotakenoparticularactionortonotifytheBondholdersthatitwilltakenoaction,ifrepaymentofsuchfundsoradequateindemnityand/orsecurityagainstsuchriskorliabilityisnotreasonablyassuredtoit.TheTrusteeshallnotberequiredtogiveanybondorsuretyinrespecttotheexecutionofitstrustsandpowershereunder.TheTrusteeshall,however,inanycase,makedrawingsundertheLetterofCredit,orrequestpaymentsundertheGuaranty,topayprincipalandPurchasePriceofandpremium,ifany,orinterestontheBondsasitbecomesdueandshallacceleratetheBondsorcausemandatorytenderoftheBondspursuanttoSection4.06(A)(iii)asrequiredbythisIndenture,notwithstandinganythingtothecontraryherein.

(H)TheTrusteeshallhavenoresponsibility,opinionorliabilitywithrespecttoanyinformationstatementorrecitalfoundinanyofficialstatementorotherdisclosurematerial,preparedordistributedwithrespecttotheissuanceofsuchbonds,exceptforinformationprovidedbytheTrustee,andshallhavenoresponsibilityforcompliancewithanystateorfederalsecuritieslawsinconnectionwiththeBonds.

(I)TheTrusteemayemployagentsorattorneystotransactorconcurintransactinganybusinessandtodoorconcurindoinganyactsrequiredtobedonebytheTrusteeandshallnotberesponsibleforthemisconductornegligenceofanysuchagentorattorneyappointedwithduecare.

(J)InnoeventshalltheTrusteeberesponsibleorliableforspecial,indirect,punitiveorconsequentiallossordamageofanykindwhatsoever(including,butnotlimitedto,lossofprofit)irrespectiveofwhethersuchTrusteehasbeenadvisedofthelikelihoodofsuchlossordamageandregardlessoftheformofaction.

(K)Therights,privileges,protections,immunitiesandbenefitsandgiventotheTrustee,including,withoutlimitation,itsrighttobeindemnified,areextendedto,andshallbeenforceableby,theTrusteeineachofitscapacitieshereunderandundertheLoanAgreementoranyotheragreementrelatedthereto,andeachagent,custodianandotherPersonemployedtoacthereunderorundertheLonAgreementoranyotheragreementrelatedthereto.

(L)TheTrusteemayrequestthattheBorrowerdeliveracertificatesettingforththenamesoftheindividualsand/ortitlesofofficersauthorizedatsuchtimetotakespecifiedactionspursuanttothisIndenture.

(M)WheneverintheadministrationofthisIndenturetheTrusteeshalldeemitdesirablethatamatterbeprovedorestablishedpriortotaking,sufferingoromittinganyactionhereunder,theTrustee(unlessotherevidencebehereinspecificallyprescribed)mayrequireandrelyuponanOpinionofCounseland/oraCertificateandtheTrusteeshallnotbeliableforanyactionittakesoromitstotakeingoodfaithinreliancethereon.

(N)TheTrustee,initsindividualcapacity,mayingoodfaithbuy,sell,own,holdanddealinanyoftheBondsissuedhereunderandmayjoininanyactionwhichanyHoldermaybeentitledtotakewithlikeeffectasifitdidnotactinanycapacityhereunder.TheTrustee,initsindividualcapacity,eitherasprincipaloragent,mayalsoengageinorbeinterestedinanyfinancialorothertransactionwiththeAuthorityortheBorrower,andmayactasdepositary,trusteeoragentforanycommitteeorbodyoftheHolderssecuredherebyorotherobligationsoftheAuthorityortheBorrowerasfreelyasifitdidnotactinanycapacityhereunder.

(O)TheTrusteeshallnotincuranyliabilityfornotperforminganyactorfulfillinganyduty,obligationorresponsibilityhereunderbyreasonofanyoccurrencebeyondthecontroloftheTrustee(includingbutnotlimitedtoanyactorprovisionofanypresentorfuturelaworregulationorgovernmentalauthority,anyactofGodorwar,civilunrest,localornationaldisturbanceordisaster,anyactofterrorism,ortheunavailabilityoftheFederalReserveBankwireorfacsimileorotherwireorcommunicationfacility).

(P)Inordertocomplywiththelaws,rules,regulationsandexecutiveordersineffectfromtimetotimeapplicabletobankinginstitutions,including,withoutlimitation,thoserelatingtothefundingofterroristactivitiesandmoneylaundering,includingSection326oftheUSAPATRIOTActoftheUnitedStates(“ApplicableLaw”),theTrusteeanditsagentsarerequiredtoobtain,verify,recordandupdatecertaininformationrelatingtoindividualsandentitieswhichmaintainabusinessrelationshipwiththeTrusteeanditsagents.Accordingly,eachofthepartiesagreetoprovidetotheTrusteeanditsagents,upontheirrequestfromtimetotimesuchidentifyinginformationanddocumentationasmaybeavailableforsuchpartyinordertoenabletheTrusteeanditsagentstocomplywithApplicableLaw.

Section8.04.RightofTrusteetoRelyonDocuments.TheTrusteeshallconclusivelyrelyuponandbefullyprotected,absentitsowngrossnegligenceorwillfulmisconduct,inactinguponanynotice,resolution,request,consent,order,certificate,report,opinion,bondorotherpaperordocumentbelievedbyittobegenuineandtohavebeensignedorpresentedbytheproperpartyorparties;inparticular,theTrusteeshallbeentitledtorelyuponaCertificateoftheBorrowertotheeffectthatnoActofBankruptcyhasoccurred.TheTrusteemayconsultwithcounsel,whomaybecounselofortotheAuthorityortheBorrower,withregardtolegalquestions,andtheopinionofsuchcounselshallbefullandcompleteauthorizationandprotectioninrespectofanyactiontakenorsufferedbyithereunderingoodfaithandinaccordancetherewith,andmayinallcasespaysuchreasonablecompensationtosuchattorneys,agents,employeesandreceiversasmaybereasonablyemployedinconnectionwiththetrustshereof.

TheTrusteeshallnotbeboundtorecognizeanyPersonastheHolderofaBondunlessanduntilsuchBondissubmittedforinspection,ifrequired,anditstitletheretoissatisfactorilyestablished,ifdisputed.

WheneverintheadministrationofthetrustsimposeduponitbythisIndenturetheTrusteeshalldeemitnecessaryordesirablethatamatterbeprovedorestablishedpriortotakingorsufferinganyactionhereunder,suchmatter(unlessotherevidenceinrespectthereofbehereinspecificallyprescribed)maybedeemedtobeconclusivelyprovedandestablishedbyaCertificateoftheAuthority,andsuchCertificateshallbefullwarranttotheTrusteeforanyactiontakenorsufferedingoodfaithundertheprovisionsofthisIndentureinrelianceuponsuchCertificate,butinitsdiscretiontheTrusteemay,inlieuthereof,acceptotherevidenceofsuchmatterormayrequiresuchadditionalevidenceasitmaydeemreasonable.

TheTrusteeshallalsobeentitledtorelyconclusivelyuponcertificatesoftheBorrower,theAuthorityortheGuarantor,asthecasemaybe,thatnoActofBankruptcyhasoccurredornopetitioninbankruptcyhasbeenfiledandnoreceivership,insolvency,assignmentforthebenefitofcreditorsorothersimilarproceedinghasbeencommenced(asdescribedundersubsection(2)(B)oftheterm“AvailableMoneys”herein),whichcertificatestheAuthority,theBorrowerorGuarantor,asthecasemaybe,willsupplyfromtimetotime,uponrequestoftheTrustee.

TheTrusteeshallbeundernodutytomakeanyinvestigationorinquiryastoanystatementscontainedormattersreferredtoinanysuchinstrument,butmayacceptandrelyuponthesameasconclusiveevidenceofthetruthandaccuracyofsuchstatements;provided,however,thattheTrusteemay,initsdiscretion,make,butshallinnocaseberequiredtomake,suchfurtherinquiryorinvestigationintosuchfactsormattersasitmayseefit,and,iftheTrusteeshalldetermineto

makesuchfurtherinquiryorinvestigationitshallbeentitledtoexaminethebooks,recordsandpremisesoftheBorrowerpersonallyorbyagentorattorney.TheTrusteeshallnotbeboundtorecognizeanypersonasaHolderortotakeanyactionatsuchperson’srequestunlesssatisfactoryevidenceoftheownershipofsuchBondshallbefurnishedtosuchentity.

Section8.05.PreservationandInspectionofDocuments.AlldocumentsreceivedbytheTrusteeundertheprovisionsofthisIndentureshallberetainedinitspossessionandshallbesubjecttotheinspectionoftheAuthority,theBorrower,anyBondholderandtheBank,andtheiragentsandrepresentativesdulyauthorizedinwritinguponpriorwrittennotice,atreasonablehoursduringthenormalbusinesshoursoftheTrusteeandunderreasonableconditions.

Section8.06.CompensationandIndemnification.TheAuthority,theTrustee,theTenderAgent,thePayingAgent(includinginitscapacityasCalculationAgent)andtheBondRegistrarshallbeentitledtopaymentandreimbursementforreasonablefeesfortheirrespectiveservicesrenderedhereunderandalladvances,counselfeesandotherexpensesreasonablymadeorincurredbyanyoftheminconnectionwithsuchservicesandinconnectionwithenteringintothisIndenture,includinganysuchfeesandexpensesincurredinconnectionwithactiontakenhereunder.InaccordancewithSection4.2oftheAgreement,theBorrowershallpaytotheAuthority,theTrustee,theTenderAgent,thePayingAgent(includinginitscapacityasCalculationAgent)andtheBondRegistrarfromtimetotimereasonablecompensationforallservicesrenderedunderthisIndenture,andtheTrusteeshallhavealienthereforonanyandallfunds(excepttheRebateFund,themoneysheldforparticularBonds(includingnon-presentedBonds),anymoneysderivedfromaLetterofCredit,TenderProceeds,AvailableMoneys,moneysbeingagedtobecomeAvailableMoneys,andmoneysheldpursuanttoSection10.03)atanytimeheldbyitunderthisIndenturewhichlienshallbepriorandsuperiortothelienoftheHoldersoftheBonds.TheBorrowershallindemnifyandsavetheAuthority,theTrustee,theTenderAgent,thePayingAgent(includinginitscapacityasCalculationAgent)andtheRegistrarharmlesspursuanttoSection8.4oftheAgreement.TheobligationsoftheBorrowerunderthisSectionshallsurviveresignationorremovaloftheTrustee,theTenderAgent,ifany,thePayingAgent(includinginitscapacityasCalculationAgent)andtheBondRegistrarunderthisIndentureandpaymentoftheBondsanddischargeofthisIndentureandshallinuretothebenefitoftheirrespectivesuccessorsandassigns.TheprovisionsofthisSection8.06shallsurvivetheterminationofthisIndenture.

Section8.07.PayingAgent.TheAuthority(atthewrittenrequestoftheBorrower),withthewrittenapprovaloftheTrusteeandtheBank,ifany,mayappointandatalltimeshaveaPayingAgentinsuchcitiesastheAuthoritydeemsdesirable,forthepaymentoftheprincipalof,andtheinterest(andpremium,ifany)on,theBonds.ItshallbethedutyoftheTrusteetomakesuchcreditarrangementswithsuchPayingAgentasmaybenecessarytoassure,totheextentofthemoneysheldbytheTrusteeforsuchpayment,thepromptpaymentoftheprincipalof,andinterest(andpremium,ifany)on,theBondspresentedateitherplaceofpayment.TheTrusteewillnotberesponsibleforthefailureoftheBankoranyotherpartytomakefundsavailabletotheTrusteeorPayingAgent.TheTrusteeisherebyappointedbytheAuthority(actingattherequestoftheBorrower)astheinitialPayingAgent.IfthePayingAgentisanyentityotherthantheTrustee,(i)thePayingAgentmaynotholdanysuchfundsand(ii)thePayingAgentshallbesubjecttothesamestandardsandqualificationsapplicabletotheTrusteeassetforthinthisIndenture.InactinghereunderandinconnectionwiththeBonds,thePayingAgentshallactsolelyasanagentofthe

Authority,andwillnottherebyassumeanyobligationstowardsorrelationshipofagencyortrustfororwithanyBondholder.InactinghereunderandinconnectionwiththeBonds,thePayingAgentshallactsolelyasanagentoftheAuthority,andwillnottherebyassumeanyobligationstowardsorrelationshipofagencyortrustfororwithanyBondholder.

Section8.08.TrusteeandAuthorityRequiredtoAcceptDirectionsandActionsofBorrower.WheneverafterareasonablespecificwrittenrequestbytheBorrower,andiftheBorrowerisnotindefaultundertheAgreement,theAuthorityshallfail,refuseorneglecttogiveanyspecificwrittendirectiontotheTrusteeortorequiretheTrusteetotakeanyactionwhichtheAuthorityisrequiredtohavetheTrusteetakepursuanttotheprovisionsoftheAgreementorthisIndenture,theBorrower,onbehalfoftheAuthority,maygiveanysuchspecificwrittendirectiontotheTrusteeorrequiretheTrusteetotakeanysuchaction(solongassuchactiondoesnotadverselyimpairtherightsoftheAuthority,theTrusteeandtheBondholdershereunderorconflictwiththetermsofthisIndentureorapplicablelaw),andtheTrusteeisherebyirrevocablyempoweredanddirectedtoacceptsuchspecificRequestfromtheBorrowerassufficientforallpurposesofthisIndenture,providedtheTrusteereceivesindemnityand/orsecuritysatisfactorytoit.Subjecttothetermshereof,theBorrowershallhavetheright,onbehalfoftheAuthority,tocausetheTrusteetocomplywithanyoftheTrustee’sobligationsunderthisIndenture(otherthantheRetainedRights)tothesameextentthattheAuthorityisempoweredsotodo.

CertainactionsorfailurestoactbytheAuthorityunderthisIndenturemaycreateorresultinanEventofDefaultunderthisIndenture,andtheBorrower,onbehalfoftheAuthority,may,totheextentpermittedbylaw,performanyandallactsortakesuchaction(solongassuchactiondoesnotadverselyimpairtherightsoftheAuthority,theTrusteeandtheBondholdershereunderorconflictwiththetermsofthisIndentureorapplicablelaw)asmaybenecessaryforandonbehalfoftheAuthoritytopreventorcorrectsuchanEventofDefault,andtheTrusteeshalltakeoracceptsuchperformancebytheBorrowerasperformancebytheAuthorityinsucheventprovidedtheTrusteereceivesindemnityand/orsecuritysatisfactorytoit;provided, however,thattheforegoingshallnotextendthetimeforperformancerequiredhereby.

TheAuthorityherebyauthorizestheBorrowertogivealldirections,doallthingsandperformallacts,totheextentsoprovided,bythisSection.TheBorrowershallactreasonablypursuanttosuchauthorization,andtheBorrowershalltakenoactionthereunderthatwouldcreateanyliabilityoftheAuthority,includinganyliabilitywithrespecttopaymentoftheBonds(exceptasotherwiseprovidedinthisIndenture).

Section8.09.CalculationAgent.

(a)ThePayingAgentisherebyappointedbytheAuthority(actingattherequestoftheBorrower)as“CalculationAgent”forpurposesofthisIndentureandacceptsthedutiesandobligationsoftheCalculationAgenthereunder.InactinghereunderandinconnectionwiththeBonds,theCalculationAgentshallactsolelyasanagentoftheAuthority,andwillnottherebyassumeanyobligationstowardsorrelationshipofagencyortrustfororwithanyBondholder.

(b)TheCalculationAgentmayresignatanytimebygivingthirty(30)days’noticetotheBorrowerand,iftheCalculationAgentisnotthePayingAgent,tothePayingAgent.NosuchresignationshallbecomeeffectiveuntilasuccessorCalculationAgenthasbeenappointedandhasaccepteditsdutiesandobligationshereunder.

(c)TheBorrowermayremovetheCalculationAgentatanytimeuponthirty(30)days’writtennoticetotheCalculationAgentand,iftheCalculationAgentisnotthePayingAgent,tothePayingAgent.NosuchremovalshallbecomeeffectiveuntilasuccessorCalculationAgenthasbeenappointedandhasaccepteditsdutiesandobligationshereunder.

(d)IftheCalculationAgentshallresign,beremovedorbecomeincapableofacting,orifavacancyshalloccurinthecorporatetrustofficeoftheCalculationAgentforanycause,theBorrowershallpromptlyappointasuccessorCalculationAgent,whichmaybethePayingAgent,and,ifnotthePayingAgent,shallbeacceptabletothePayingAgent.AnysuccessorCalculationAgentshallsignifyitsacceptanceofsuchappointmentanditsassumptionofthedutiesandobligationsimposeduponitbythisIndenturebyexecutionanddeliveryofanagreementsatisfactorytotheAuthorityand,iftheCalculationAgentisnotthePayingAgent,tothePayingAgent.IfnosuccessorCalculationAgentshallhavebeensoappointedandacceptedappointmentwithinforty-five(45)daysofsuchresignation,removal,incapabilityortheoccurrenceofavacancyintheofficeofTrusteeinthemannerhereinprovided,theCalculationAgentoranyHoldermay,attheexpenseoftheBorrower,petitionanycourtofcompetentjurisdictionfortheappointmentofasuccessorCalculationAgentuntilasuccessorshallhavebeenappointedasaboveprovided.

(e)TheCalculationAgentshallnotbeentitledtoanycompensationfromtheAuthority,theRemarketingAgentortheTrusteebut,rather,thecompensationandexpensesoftheCalculationAgentshallbepaidbytheBorrower,asprovidedintheagreementoftheCalculationAgentacceptingitsappointment(ortheLoanAgreementifthePayingAgentistheCalculationAgent).

Section8.10.NoticestoRatingAgencyandtheBank.TheTrustee,attheexpenseoftheBorrower,shallprovideanyRatingAgencyandtheBank,ifany,withwrittennoticeupontheoccurrenceof:(i)theexpiration,terminationorextensionofanyLetterofCredit;(ii)thedischargeofliabilityontheBondspursuanttoSection10.02hereof;(iii)theresignationorremovaloftheTrustee,TenderAgentorRemarketingAgent;(iv)acceptanceofappointmentassuccessorTrustee,TenderAgentorRemarketingAgenthereunder;(v)theredemptionofallBonds;(vi)conversiontoanewInterestRatePeriodortoanInterestRatePeriodnotenhancedbyaLetterofCredit;(vii)amaterialchangeintheIndenture,theAgreement,theCreditAgreement(uponreceiptofsuchnoticefromtheBank)ortheLetterofCredit;and(viii)whentheBondsarenolongerOutstanding.TheTrustee,attheexpenseoftheBorrower,shallalsonotifyanyRatingAgencyofanychangestoanyofthedocumentstowhichtheTrusteeisaparty,uponexecutionofanyamendmentsthereto.TheTrusteeshallnotbeliabletoanypartyforfailuretogivenoticeasprovidedinthisSection.

Section8.11.DutiesofRemarketingAgent.TheAuthority,withtheadviceoftheBorrower,shallappointtheRemarketingAgentfortheBonds,subjecttotheconditionssetforthinSection8.12hereof.TheRemarketingAgentshalldesignatetotheTrusteeinwritingitsprincipalofficeandsignifyitsacceptanceofthedutiesandobligationsimposedonithereunderbyawritteninstrumentofacceptancedeliveredtotheAuthorityandtheTrusteeunderwhichthe

RemarketingAgentwillagreetoperformtheobligationsoftheRemarketingAgentsetforthhereinandunderwhichtheRemarketingAgentwillagreetokeepsuchbooksandrecordsasshallbeconsistentwithprudentindustrypracticeandtomakesuchbooksandrecordsavailableforinspectionbytheAuthority,theTrustee,theBankandtheBorroweratallreasonabletimes.TheRemarketingAgentshallsettheinterestratesontheBondsandperformtheotherdutiesprovidedforinSection2.03andshallremarketBondsasprovidedinSection4.07hereof.TheremaybeseparateRemarketingAgentsforthesetwofunctions.TheRemarketingAgentshallholdallmoneysdeliveredtoitintrustinnon-commingledfundsforthebenefitofthePersonwhichshallhavesodeliveredsuchmoneysuntilsuchmoneysarepaidtotheTrusteeasprovidedherein.TheRemarketingAgentmayforitsownaccountorasbrokeroragentforothersdealinBondsandmaydoanythinganyotherHoldermaydotothesameextentasiftheRemarketingAgentwerenotservingassuch.

Section8.12.EligibilityofRemarketingAgent;Replacement.

(A)AnyRemarketingAgentshallbeabank,trustcompanyormemberoftheFinancialIndustryRegulatoryAuthority(“FINRA”)organizedanddoingbusinessunderthelawsoftheUnitedStatesoranystateortheDistrictofColumbia.TheinitialRemarketingAgentshallbeBofASecurities,Inc.

(B)TheRemarketingAgentmayresignatanytimebywrittennoticetotheAuthority,theTrustee,theTenderAgent,theBorrowerandtheBank,ifany,atleast45days beforetheeffectivedateofsuchresignationandtheBorrower,withtheconsentoftheAuthorityandtheBank,ifany,shallappointasuccessorbynotifyingtheTrustee,theTenderAgent,ifany,andtheBank,ifany,inwriting.TheAuthorityortheBorrowermayremovetheRemarketingAgent,andtheBorrower,withwrittennoticetotheAuthorityandtheTrusteeandtheconsentoftheBank,ifany,shallappointasuccessorbynotifyingtheRemarketingAgent,theBank,ifany,theTrusteeandtheTenderAgent,ifany,inwriting.NoresignationorremovalshallbeeffectiveuntilthesuccessorhasdeliveredanacceptanceofitsappointmenttotheTrustee.

(C)IfanyLetterofCreditisterminatedforanyreasonoranEventofDefaultunderthisIndentureoccurs,theRemarketingAgentshallhavetherighttoresignimmediately.

(D)TheappointmentofanyRemarketingAgentpursuanttothisSection8.12shallterminate(subjecttorenewalbytheBorrower,withnoticetotheAuthorityandtheconsentoftheBank,ifany,orreplacementbyasuccessorRemarketingAgentasprovidedinthisSection)fifteendayspriortothecommencementofanyTermInterestRatePeriodofthreeyearsorlongerdurationforwhichsuchRemarketingAgentwasappointed.

(E)IftheRemarketingAgentconsolidateswith,mergesorconvertsinto,transfersallorsubstantiallyallitsassets(or,inthecaseofabankortrustcorporation,itscorporatetrustassets)toanotherentity,orassignsortransfersanyorallofitsrightsandobligationsundertheRemarketingAgreementtoanyotherdirectorindirectsubsidiaryofBankofAmericaCorporation,theresulting,survivingortransfereeentity,ifotherwiseeligibletoservehereunder,withoutanyfurtheractshallbethesuccessorRemarketingAgent.

Section8.13.CompensationofRemarketingAgent.TheRemarketingAgentshallnotbeentitledtoanycompensationfromtheAuthorityortheTrusteebut,rather,shallmakeseparatearrangementswiththeBorrowerforitscompensation.

Section8.14.AppointmentandDutiesofTenderAgent.TheAuthority,atthedirectionoftheBorrower,herebyappointstheTrusteeasinitialTenderAgent,providedthatiftheBondsarenolongerBook-EntryBonds,theAuthority,withtheadviceoftheBorrower,shallappointasuccessorTenderAgent,subjecttotheconditionsofSection8.15hereof.AnysuccessorTenderAgentshalldesignateitsCorporateTrustOfficeandsignifyitsacceptanceofallofthedutiesandobligationsimposeduponithereunderbyawritteninstrumentofacceptancedeliveredtotheAuthority,theTrustee,theBankandtheRemarketingAgent.TheTenderAgentshallperformthedutiesprovidedforinthisIndentureandinexercisingsuchdutiesshallbesubjecttothesamestandardsandentitledtothesamerights,privileges,indemnities,protections,benefitsandimmunitiesapplicabletotheTrusteeassetforthinthisIndentureandshallnotbeliableforanyactionoromissiontoactexceptforitsowngrossnegligenceorwillfulmisconduct.NotwithstandinganyprovisioninthisIndenturetothecontrary,theTenderAgentshallnotberesponsibleforanymisconductorgrossnegligenceonthepartofanyagent,correspondent,attorneyorreceiverappointedwithduecarebyithereunder.IftheTenderAgentisanyentityotherthantheTrustee,theTenderAgentshallbesubjecttothesamestandardsapplicabletotheTrusteeassetforthinthisIndenture.InactinghereunderandinconnectionwiththeBonds,theTenderAgentshallactsolelyasanagentoftheAuthority,andwillnottherebyassumeanyobligationstowardsorrelationshipofagencyortrustfororwithanyBondholder.

Section8.15.EligibilityofTenderAgent;Replacement.IntheeventthattheTenderAgenthereundershallgivenoticeofresignationorberemoved,orbedissolved,orshallbeinthecourseofdissolutionorliquidation,orotherwisebecomeincapableofactinghereunder,orincaseitshallbetakenunderthecontrolofanypublicofficeoroffices,orofareceiverappointedbyacourt,theBorrowermay(totheextentthatnoEventofDefaultshallhaveoccurredandbecontinuinghereunderorundertheLoanAgreement),withthepriorwrittenconsentoftheAuthorityandtheBank,ifany,appointasuccessorTenderAgentandshallconfirmsuchappointmentinwritingdeliveredpersonallyorsentbyfirstclassmail,postageprepaid,totheAuthority,retiringTenderAgent,successorTenderAgent,Bank,ifany,andRemarketingAgent,ifany.

PendingsuchappointmentbytheBorrowerasprovidedabove,theAuthoritymay,withtheconsentoftheBorrower(totheextentthatnoEventofDefaultshallhaveoccurredandbecontinuinghereunderorundertheLoanAgreement)andtheBank,ifany,appointatemporarysuccessorTenderAgentbyaninstrumentinwritingsignedbyanauthorizedofficeroftheAuthority,acopyofwhichshallbedeliveredpersonallyorsentbyfirstclassmail,postageprepaid,totheretiringTenderAgent,thesuccessorTenderAgent,theBorrower,theBank,ifany,andtheRemarketingAgent,ifany.IfnopermanentsuccessorTenderAgentshallhavebeenappointedbytheBorrowerwithinsix(6)calendarmonthsnextsucceedingthemonthduringwhichtheAuthorityappointssuchatemporaryTenderAgent,suchtemporaryTenderAgentshallwithoutfurtheractiononthepartoftheAuthorityortheBondholdersbecomethepermanentsuccessorTenderAgent.

IftheBorrowerortheAuthorityfailtosoappointasuccessorTenderAgent(whetherpermanentortemporary)hereunderwithinforty-five(45)daysaftertheTenderAgenthasgivennoticeofitsresignation,hasbeenremoved,hasbeendissolved,hasotherwisebecomeincapableofactinghereunderorhasbeentakenundercontrolbyapublicofficerorreceiver,theTenderAgentshallhavetherighttopetitionacourtofcompetentjurisdictiontoappointasuccessorhereunder.EverysuchTenderAgentappointedpursuanttotheprovisionsofthisSectionshallbeatrustcompany,nationalassociationorbankorganizedandingoodstandingunderthelawsoftheState,theUnitedStatesofAmericaoranystateortheDistrictofColumbiaandhaveacombinedtotalcapitalandsurplusofnotlessthan$50,000,000assetforthinitsmostrecentpublishedannualreportofcondition,oralternatively,aliabilitypolicyhavingthetypeofcoverageandinanamountacceptabletotheAuthorityandtheBorrower.EverysuchTenderAgentshallhaveanoperationsgroupofatleastfour(4)experiencedtrustofficers,withresponsibilityformunicipalbondissuesandshallhaveatleast25municipalbondindenturesaggregatingatleast$25,000,000underitsadministration.IncaseatanytimetheTenderAgentshallceasetobeeligibleinaccordancewiththeprovisionsofthisparagraph,theTenderAgentshallresignimmediatelyinthemannerandwiththeeffectspecifiedinthisSection.

IntheeventoftheresignationorremovaloftheTenderAgent,suchTenderAgentshallpayover,assignanddeliveranymoneysheldbyitasTenderAgenttoitssuccessor,orifthereisnosuccessor,totheTrustee.IntheeventthatforanyreasonthereshallbeavacancyintheofficeofTenderAgent,theTrusteeshallactassuchTenderAgenttotheextentithasoperationalcapacitytoperformsuchtasks.

Section8.16.CompensationofTenderAgent.TheTenderAgentshallnotbeentitledtoanycompensationfromtheAuthority,theRemarketingAgentortheTrusteebut,rather,shallonlybeentitledtocompensationfromtheBorrower.UndertheAgreement,theBorrowershalltransmitallpaymentoffeestotheTrusteewhoshall,inturn,makepaymenttotheTenderAgent.

Section8.17.AppointmentandDutiesofBondRegistrar.TheAuthority,atthedirectionoftheBorrower,herebydesignatestheTrusteeasinitialBondRegistrar,providedthattheTenderAgentshallactasco-BondRegistrarwithrespecttoBondstenderedpursuanttoSections2.04or4.06.

TheBondRegistrarshallnotbeentitledtoanycompensationfromtheAuthority,theRemarketingAgentortheTrusteebut,rather,shallonlybeentitledtocompensationfromtheBorrower.

Section8.18.EligibilityofBondRegistrar;Replacement.IntheeventthattheBondRegistrarhereundershallgivenoticeofresignationorberemoved,orbedissolved,orshallbeinthecourseofdissolutionorliquidation,orotherwisebecomeincapableofactinghereunder,orincaseitshallbetakenunderthecontrolofanypublicofficeoroffices,orofareceiverappointedbyacourt,theBorrowermay(totheextentthatnoEventofDefaultshallhaveoccurredandbecontinuinghereunderorundertheLoanAgreement),withthepriorwrittenconsentoftheAuthorityandtheBank,ifany,appointasuccessorBondRegistrarandshallconfirmsuchappointmentinwritingdeliveredpersonallyorsentbyfirstclassmail,postageprepaid,totheAuthority,retiringBondRegistrar,successorBondRegistrar,Bank,ifany,andRemarketingAgent,ifany.

PendingsuchappointmentbytheBorrowerasprovidedabove,theAuthoritymay,withtheconsentoftheBorrower(totheextentthatnoEventofDefaultshallhaveoccurredandbecontinuinghereunderorundertheLoanAgreement)andtheBank,ifany,appointatemporarysuccessorBondRegistrarbyaninstrumentinwritingsignedbyanauthorizedofficeroftheAuthority,acopyofwhichshallbedeliveredpersonallyorsentbyfirstclassmail,postageprepaid,totheretiringBondRegistrar,thesuccessorBondRegistrar,theBorrower,theBank,ifany,andtheRemarketingAgent,ifany.IfnopermanentsuccessorBondRegistrarshallhavebeenappointedbytheBorrowerwithinsix(6)calendarmonthsnextsucceedingthemonthduringwhichtheAuthorityappointssuchatemporaryBondRegistrar,suchtemporaryBondRegistrarshallwithoutfurtheractiononthepartoftheAuthorityortheBondholdersbecomethepermanentsuccessorBondRegistrar.

IftheBorrowerortheAuthorityfailtosoappointasuccessorBondRegistrar(whetherpermanentortemporary)hereunderwithinforty-five(45)daysaftertheBondRegistrarhasgivennoticeofitsresignation,hasbeenremoved,hasbeendissolved,hasotherwisebecomeincapableofactinghereunderorhasbeentakenundercontrolbyapublicofficerorreceiver,theBondRegistrarshallhavetherighttopetitionacourtofcompetentjurisdictiontoappointasuccessorhereunder.EverysuchBondRegistrarappointedpursuanttotheprovisionsofthisSectionshallbeatrustcompany,nationalassociationorbankorganizedandingoodstandingunderthelawsoftheState,theUnitedStatesofAmericaoranystateortheDistrictofColumbiaandhaveacombinedtotalcapitalandsurplusofnotlessthan$50,000,000assetforthinitsmostrecentpublishedannualreportofcondition,oralternatively,aliabilitypolicyhavingthetypeofcoverageandinanamountacceptabletotheAuthorityandtheBorrower.EverysuchBondRegistrarshallhaveanoperationsgroupofatleastfour(4)experiencedtrustofficers,withprimaryresponsibilityformunicipalbondissuesandshallhaveatleast25municipalbondindenturesaggregatingatleast$25,000,000underitsadministration.IncaseatanytimetheBondRegistrarshallceasetobeeligibleinaccordancewiththeprovisionsofthisparagraph,theBondRegistrarshallresignimmediatelyinthemannerandwiththeeffectspecifiedinthisSection.

IntheeventoftheresignationorremovaloftheBondRegistrar,suchBondRegistrarshallpayover,assignanddeliveranymoneysheldbyitasBondRegistrartoitssuccessor,orifthereisnosuccessor,totheTrustee.IntheeventthatforanyreasonthereshallbeavacancyintheofficeoftheBondRegistrar,theTrusteeshallactassuchBondRegistrartotheextentithasoperationalcapacitytoperformsuchtasks;providedhowever,iftheTrusteeisactingastheBondRegistrar,thentheresignationorremovaloftheTrusteeshallautomaticallyactastheresignationorremovalasBondRegistrareffectiveuponappointmentofasuccessorTrusteepursuanttothetermsofthisIndenture.

Section8.19.BondRegistrar’sPerformanceofDuties.TheBondRegistrarshallperformthedutiesprovidedforinthisIndentureandinexercisingsuchdutiesshallbesubjecttothesamestandardsandentitledtothesamerightsandimmunitiesapplicabletotheTrusteeassetforthinthisIndentureandshallnotbeliableforanyactionoromissiontoactexceptforitsowngrossnegligenceorwillfulmisconduct.

ARTICLE IX

MODIFICATION OR AMENDMENT OF THE INDENTURE AND THE AGREEMENT

Section9.01.AmendmentsPermitted.

(A)ThisIndentureandtherightsandobligationsoftheAuthorityandoftheHoldersoftheBondsandoftheTrusteemaybemodifiedoramendedfromtimetotimeandatanytimebyanindentureorindenturessupplementalhereto,whichtheAuthorityandtheTrusteemayenterintowhenthewrittenconsentoftheHoldersofnotlessthanamajorityinaggregateprincipalamountofallBondsthenOutstanding,andtheBank,ifany,shallhavebeenfiledwiththeTrusteeandtheTrusteehasreceivedanApprovingOpinion.Nosuchmodificationoramendmentshall(1)extendthefixedmaturityofanyBond,orreducetheamountofprincipalthereof,orextendthetimeofpayment,orchangethemethodofcomputingtherateofinterestthereon,orextendthetimeofpaymentofinterestthereon,withouttheconsentoftheHolderofeachBondsoaffected,or(2)reducetheaforesaidpercentageofBondstheconsentoftheHoldersofwhichisrequiredtoeffectanysuchmodificationoramendment,orpermitthecreationofanylienontheTrustEstatepriortooronaparitywiththeliencreatedbythisIndenture,ordeprivetheHoldersoftheBondsoftheliencreatedbythisIndentureonsuchTrustEstate(exceptasexpresslyprovidedinthisIndenture),withouttheconsentoftheHoldersofalloftheBondsthenOutstandingandreceiptbytheTrusteeofanApprovingOpinion.ItshallnotbenecessaryfortheconsentoftheBondholderstoapprovetheparticularformofanySupplementalIndenture,butitshallbesufficientifsuchconsentshallapprovethesubstancethereof.PromptlyaftertheexecutionbytheAuthorityandtheTrusteeofanySupplementalIndenturepursuanttothissubsection(A),theTrusteeshallmailanoticeprovidedbytheBorrower,settingforthingeneraltermsthesubstanceofsuchSupplementalIndenture,toeachRatingAgencythenratingtheBondsandtheHoldersoftheBondsattheaddressshownontheregistrationbooksoftheTrustee.Anyfailuretogivesuchnotice,oranydefecttherein,shallnot,however,inanywayimpairoraffectthevalidityofanysuchSupplementalIndenture.

(B)ThisIndentureandtherightsandobligationsoftheAuthority,oftheTrusteeandoftheHoldersoftheBondsmayalsobemodifiedoramendedfromtimetotimeandatanytimebyenteringintoaSupplementalIndenture,whichtheAuthorityandtheTrusteemayenterintowithouttheconsentofanyBondholders,butwiththewrittenconsentoftheBank,ifany,andonlytotheextentpermittedbylaw,andwithrespecttosubsection(6)below,withanApprovingOpiniondeliveredtotheTrustee,including,withoutlimitation,foranyoneormoreofthefollowingpurposes:

(1)toaddtothecovenantsandagreementsoftheAuthorityinthisIndentureandothercovenantsandagreementsthereaftertobeobserved,topledgeorassignadditionalsecurityfortheBonds(oranyportionthereof),ortosurrenderanyrightorpowerhereinreservedtoorconferredupontheAuthority;

(2)tomakesuchprovisionsforthepurposeofcuringanyambiguity,inconsistencyoromission,orofcuringorcorrectinganydefectiveprovision,containedinthisIndenture,orinregardtomattersorquestionsarisingunderthisIndenture,astheAuthoritymaydeemnecessaryordesirableandnotinconsistentwiththisIndenture,includingamendmentspursuanttoSection2.03(H)hereof;

(3)tomodify,amendorsupplementthisIndentureinsuchmannerastopermitthequalificationhereofundertheTrustIndentureActof1939,asamended,oranysimilarfederalstatutehereafterineffect,andtoaddsuchotherterms,conditionsandprovisionsasmaybepermittedbysaidactorsimilarfederalstatute;

(4)toconformtothetermsandprovisionsofanyLetterofCredit,AlternateLetterofCreditorAlternateCreditFacilityortoobtainaratingontheBonds;

(5)tomodify,amendorsupplementthisIndentureinsuchamannertopermittheAuthority,theTrustee,theBorroweroranyotherresponsiblepartytocomplywiththerequirementsofSECRule15c2-12,asitmayfromtimetotimebeamendedorsupplemented,withrespecttotheBonds;or

(6)tomodify,alter,amendorsupplementthisIndentureortheAgreementinanyotherrespect,includingamendmentswhichwouldotherwisebedescribedinSection9.01(A)hereof,iftheeffectivedateofsuchsupplementalindentureoragreementisadateonwhichallBondsaffectedtherebyaresubjecttomandatorytenderforpurchasepursuanttoSection4.06hereoforifnoticebyfirstclassmail,postageprepaid,oftheproposedsupplementalindentureoragreementisgiventoHoldersoftheaffectedBondsatleast30daysbeforetheeffectivedatethereofand,onorbeforesucheffectivedate,suchBondholdershavetherighttodemandpurchaseoftheirBondspursuanttoSection2.04hereof.

PromptlyaftertheexecutionbytheAuthorityandtheTrusteeofanySupplementalIndenturepursuanttothissubsection(B),theTrusteeshallmailanotice,settingforthingeneraltermsthesubstanceofsuchSupplementalIndenture,toeachRatingAgencythenratingtheBondsandtheHoldersoftheBondsattheaddressshownontheregistrationbooksoftheTrustee.Anyfailuretogivesuchnotice,oranydefecttherein,shallnot,however,inanywayimpairoraffectthevalidityofanysuchSupplementalIndenture.

(C)TheTrusteeandtheAuthoritymayintheirdiscretion,butshallnotbeobligatedto,enterintoanysuchSupplementalIndentureauthorizedbysubsections(A)or(B)ofthisSectionwhichmateriallyadverselyaffectstheTrustee’sortheAuthority’sownrights,dutiesorimmunities,respectively,underthisIndentureorotherwise.

(D)Anythinghereintothecontrarynotwithstanding,aSupplementalIndentureunderthisSectionshallnotbecomeeffectiveunlessanduntiltheBorrowershallhaveconsentedtheretoinwriting.

Section9.02.EffectofSupplementalIndenture.UpontheexecutionofanySupplementalIndenturepursuanttothisArticle,thisIndentureshallbedeemedtobemodifiedandamendedinaccordancetherewith,andtherespectiverights,dutiesandobligationsunderthisIndentureoftheAuthority,theTrustee,theBank,ifany,andallHoldersofBondsOutstandingshallthereafterbedetermined,exercisedandenforcedhereundersubjectinallrespectstosuchmodificationandamendment,andallthetermsandconditionsofanysuchSupplementalIndentureshallbedeemedtobepartofthetermsandconditionsofthisIndentureforanyandallpurposes.

AnysuchSupplementalIndentureshallcomplywiththetermsofthisArticleIX,andtheTrusteeandtheAuthorityshallbeprovidedwithandmayconclusivelyrelyonanOpinionofCounselthattheSupplementalIndenturecomplieswiththeprovisionstherein,isauthorizedorpermittedundertheprovisionstherein,andallconditionsprecedenttotheexecutionofanysuchSupplementalIndenturehavebeensatisfied.

Section9.03.EndorsementofBonds;PreparationofNewBonds.BondsdeliveredaftertheexecutionofanySupplementalIndenturepursuanttothisArticlemay,andiftheTrusteesodeterminesshall,bearanotationbyendorsementorotherwiseinformapprovedbytheAuthorityandtheTrusteeastoanymodificationoramendmentprovidedforinsuchSupplementalIndenture,and,inthatcase,uponwrittendemandoftheHolderofanyBondOutstandingatthetimeofsuchexecutionandpresentationofsuchHolder’sBondforthepurposeattheCorporateTrustOfficeoftheTrusteeoratsuchadditionalofficesastheTrusteemayselectanddesignateforthatpurpose,asuitablenotationshallbemadeonsuchBond.IftheSupplementalIndentureshallsoprovide,newBondssomodifiedastoconform,intheopinionoftheAuthority,toanymodificationoramendmentcontainedinsuchSupplementalIndenture,shallbepreparedandexecutedbytheAuthorityandauthenticatedbytheTrustee,anduponwrittendemandoftheHoldersofanyBondsthenOutstandingshallbeexchangedattheCorporateTrustOfficeoftheTrustee,withoutcosttoanyBondholder,forBondsthenOutstanding,uponsurrenderforcancellationofsuchBonds,inequalaggregateprincipalamountsinthesameseriesandmaturity.

Section9.04.AmendmentofParticularBonds.TheprovisionsofthisArticleshallnotpreventanyBondholderfromacceptinganyamendmentastotheparticularBondsheldbyhimorher,providedthatduenotationthereofismadeonsuchBonds.

Section9.05.AmendmentsofAgreementNotRequiringConsentofBondholders;Waivers.SubjecttothetermsandprovisionsofthisIndenture,theAuthorityandtheBorrowermayamendormodifytheAgreement,oranyprovisionthereof,ormayconsenttotheamendmentormodificationthereof,inanymannernotinconsistentwiththetermsandprovisionsofthisIndenture,foranyoneormoreofthefollowingpurposes:(a)tocureanyambiguityorformaldefectintheAgreement;(b)togranttoorconferupontheAuthorityorTrustee,forthebenefitoftheBondholders,anyadditionalrights,remedies,powersorauthoritiesthatlawfullymaybegrantedtoorconferredupontheAuthorityortheTrustee;(c)toamendormodifytheAgreement,oranypartthereof,inanymannerspecificallyrequiredorpermittedbythetermsthereof,including,withoutlimitation,asmaybenecessarytomaintaintheexclusionfromgrossincomeforpurposesoffederalincometaxationoftheinterestontheBonds;(d)toprovidethattheBondsmaybesecuredbyaLetterofCreditorotheradditionalsecuritynototherwiseprovidedforinthisIndentureortheAgreement;(e)tomodify,amendorsupplementtheAgreement,oranypartthereof,oranysupplementthereto,insuchmannerastheTrustee,BorrowerandRemarketingAgentdeemnecessaryinordertocomplywithanystatute,regulation,judicialdecisionorotherlawrelatingtosecondarymarketdisclosurerequirementswithrespecttotax-exemptobligationsofthetypethatincludestheBonds;(f)toprovidefortheappointmentofasuccessorsecuritiesdepository;(g)toprovidefortheavailabilityofcertificatedBonds;(h)toprovideforchangesinthecomponentsoftheProject,totheextentpermittedbythisIndentureandtheAgreement;and

(i)toprovidefortheadditionofanyinterestratemode,including,withoutlimitation,anauctionratemode,ortoprovideforthemodificationordeletionofanyinterestratemodesolongasnoBondswillbeoperatingintheinterestratemodewhenitistobesomodifiedordeleted,ortoamend,modifyoraltertheinterestratesettingprovisions,tenderprovisionorconversionprovisionsforanythenexistinginterestratemodesolongasnoBondswillbeoperatingintheinterestmodewhensuchprovisionsaretobesoamended,modifiedoraltered;providedthat,ineachcase,thereisdeliveredtotheTrusteeanApprovingOpinion.

ARTICLE X

DEFEASANCE

Section10.01.DischargeofIndenture.BondsthatbearinterestataTermInterestRatetothematurityoftheBondsmaybepaidbytheAuthorityinanyofthefollowingways,providedthattheAuthorityalsopaysorcausestobepaidanyothersumspayablehereunderbytheAuthorityandrelatedtotheBonds:

(a)payingorcausingtobepaid(withAvailableMoneysifaLetterofCreditisineffect)theprincipalof,interestandpremium,ifany,ontheBondsOutstanding,asandwhenthesamebecomedueandpayable;

(b)bydepositingwiththeTrustee,intrust,atorbeforematurity,moneyorsecuritiesinthenecessaryamount(asprovidedinSection10.03)topayorredeem(withAvailableMoneysifaLetterofCreditisineffect)allBondsthenOutstanding;or

(c)bydeliveringtotheTrustee,forcancellationbyit,theBondsthenOutstanding.

IftheAuthorityshallalsopayorcausetobepaidallothersumspayablehereunderbytheAuthority,thenandinthatcase,attheelectionoftheAuthority(evidencedbyaCertificateoftheAuthority,filedwiththeTrustee,signifyingtheintentionoftheAuthoritytodischargeallsuchindebtednessandthisIndenture),andnotwithstandingthatanyBondsshallnothavebeensurrenderedforpayment,thisIndentureandthepledgeoftheTrustEstateandallcovenants,agreementsandotherobligationsoftheAuthorityunderthisIndentureshallcease,terminate,becomevoidandbecompletelydischargedandsatisfiedexceptonlyasprovidedinSection10.02hereof.Insuchevent,uponRequestoftheAuthority,theTrustee,attheexpenseoftheBorrower,shallcauseanaccountingforsuchperiodorperiodsasmayberequestedbytheAuthoritytobepreparedandfiledwiththeAuthorityandshallexecuteanddelivertotheAuthorityallsuchinstrumentsasmaybenecessaryordesirabletoevidencesuchdischargeandsatisfaction,andtheTrusteeshallpayover,transfer,assignordeliverallmoneysorsecuritiesorotherpropertyheldbyitpursuanttothisIndenture(otherthantheRebateFund)whicharenotrequiredforthepaymentorredemptionofBondsnottheretoforesurrenderedforsuchpaymentorredemptionandanyamountsowedtotheTrusteehereunderortheAuthorityundertheAgreementinthefollowingorder:(1)first,totheBank,ifany,totheextentthatanyamountsareduetotheBank,ifany,pursuanttotheCreditAgreementand(2)second,totheBorrower,provided, however,thattheBorrowermaynotreceiveanyfundsderivedfromadrawonanyLetterofCredit,TenderProceedsormoneysheldforthepaymentofparticularBonds(includingmoneysheldfornon-presentedBonds).

Section10.02.DischargeofLiabilityonBonds.UponthedepositwiththeTrustee,intrust,atorbeforematurityorredemption,asthecasemaybe,ofmoneyorsecuritiesinthenecessaryamount(asprovidedinSection10.03hereof)topayorredeemanyOutstandingBond(whetheruponorpriortoitsmaturityortheredemptiondateofsuchBond),providedthat,ifsuchBondistoberedeemedpriortomaturity,noticeofsuchredemptionshallhavebeengivenasinArticleIVprovidedorprovisionsatisfactorytotheTrusteeshallhavebeenmadeforthegivingofsuchnotice,thenallliabilityoftheAuthorityinrespectofsuchBondshallcease,terminateandbecompletelydischarged,exceptonlythattheHolderthereofshallthereafterbeentitledtopaymentoftheprincipalof,premium,ifany,andinterestonsuchBondbytheAuthority,andtheAuthorityshallremainliableforsuchpayment,butonlyoutofsuchmoneyorsecuritiesdepositedwiththeTrusteeasaforesaidfortheirpaymentandsuchmoneyorsecuritiesshallbepledgedtosuchpayment;providedfurther,however,thattheprovisionsofSection10.04hereofshallapplyinallevents.

TheAuthoritymayatanytimesurrendertotheTrusteeforcancellationbyitanyBondspreviouslyissuedanddelivered,whichtheAuthoritymayhaveacquiredinanymannerwhatsoever,andsuchBonds,uponsuchsurrenderandcancellation,shallbedeemedtobepaidandretired.

Section10.03.DepositofMoneyorSecuritieswithTrustee.WheneverinthisIndentureitisprovidedorpermittedthattherebedepositedwithorheldintrustbytheTrusteemoneyorsecuritiesinthenecessaryamounttopayorredeemanyBonds,themoneyorsecuritiestobedepositedorheldmayincludemoneyorsecuritiesheldbytheTrusteeinthefundsandaccountsestablishedpursuanttothisIndenture(exclusiveoftheRebateFund,anyLetterofCreditAccountandtheaccountdescribedinSection4.07(G)hereof)andshallbe:

(a)moneys(whichshallbeAvailableMoneysifaLetterofCreditisineffect)inanequalamounttotheprincipalamountofsuchBonds,andallunpaidinterestthereontomaturityexceptthat,inthecaseofBondswhicharetoberedeemedpriortomaturityandinrespectofwhichnoticeofsuchredemptionshallhavebeengivenasinArticleIVprovidedorprovisionsatisfactorytotheTrusteeshallhavebeenmadeforthegivingofsuchnotice,theamounttobedepositedorheldshallbetheprincipalamountorredemptionpriceofsuchBondsandallunpaidinterestthereontotheredemptiondate;or

(b)InvestmentSecuritiesofthetypedescribedinclause(ii)ofthedefinitionofInvestmentSecurities(includingfundsdescribedinclause(v)ratedS&P’s“AAA”orequivalentwhichconsistsolelyofsecuritiesdescribedinclause(ii))whicharepurchasedwithmoneys(AvailableMoneysifaLetterofCreditisineffect)andwhicharenonredeemableandnoncallable,theprincipalofandinterestonwhichwhendueandwithoutreinvestmentwillprovidemoneysufficienttopaytheprincipalorPurchasePriceof,premium,ifany,allunpaidinteresttomaturity,ortotheredemptiondate,ontheBondstobepaidorredeemed,assuchprincipalandinterestbecomedue,withmaturitiesnolongerthan30daysorasmaybenecessarytomaketherequiredpaymentontheBondsprovidedthat,inthecaseofBondswhicharetoberedeemedpriortothematuritythereof,noticeofsuchredemptionshallhavebeengivenasinArticleIVprovidedorprovisionsatisfactorytotheTrusteeshallhavebeenmadeforthegivingofsuchnotice;provided,

ineachcase,thattheTrusteeshallhavebeenirrevocablyinstructed(bythetermsofthisIndentureorbyRequestoftheAuthority)toapplysuchmoneysorInvestmentSecuritiestothepaymentofsuchprincipal,premium,ifany,andinterestwithrespecttosuchBondsandprovidedfurtherthateachRatingAgencythenratingsuchBonds,theAuthorityandtheTrusteeshallhavereceivedareportofanAccountantthatthemoneysorInvestmentSecuritiesondepositaresufficienttopaytheprincipal,premium,ifany,andinterestontheBondstomaturityortheredemptiondate,and,ifaLetterofCreditisineffect,alegalopinionfromanationallyrecognizedfirminbankruptcylawselectedbytheAuthoritythatpaymentoftheBondsfromsuchmoneyswillnotbeavoidablepreferenceintheeventofthebankruptcyoftheBorrower,theGuarantorortheAuthority.

Section10.04.PaymentofBondsAfterDischargeofIndentureObligation.NotwithstandinganyprovisionsofthisIndenture,anymoneysdepositedwiththeTrusteeintrustforthepaymentoftheprincipalof,orinterestorpremiumon,anyBondsremainingunclaimedaftertheprincipalofanyBondhasbecomedueandpayable(whetheratmaturityoruponcallforredemptionorbydeclarationasprovidedinthisIndenture),shallbedisposedofasprovidedbylawandtheHoldersofsuchBondsshallthereafterbeentitledtolookonlytothetransfereeofsuchmoneys(presentlytheStateController)forpaymentthereof,andallliabilityoftheTrusteewithrespecttosuchmoneysshallthereuponcease.

ARTICLE XI

MISCELLANEOUS

Section11.01.LiabilityofAuthorityLimitedtoTrustEstate.

NoneoftheprovisionsofthisIndentureshallrequiretheAuthoritytoexpendorriskitsownfundsorotherwisetoincurfinancialliabilityintheperformanceofanyofitsdutiesorintheexerciseofanyofitsrightsorpowershereunder,unlesspayablefromtheTrustEstate,orunlesstheAuthorityshallfirsthavebeenadequatelyindemnifiedtoitssatisfactionagainstthecost,expense,andliabilitywhichmaybeincurredthereby.TheAuthorityshallnotbeunderanyobligationhereundertoperformanyadministrativeservicewithrespecttotheBondsortheProject(including,withoutlimitation,recordkeepingandlegalservices),itbeingunderstoodthatsuchservicesshallbeperformedorprovidedbytheTrusteeortheBorrower.TheAuthoritycovenantsthatitwillfaithfullyperformatalltimesanyandallcovenants,undertakings,stipulations,andprovisionsexpresslycontainedinthisIndenture,theAgreement,andanyandeveryBondexecuted,authenticatedanddeliveredunderthisIndenture;provided, however,thattheAuthorityshallnotbeobligatedtotakeanyactionorexecuteanyinstrumentpursuanttoanyprovisionhereofunlessanduntilitshallhave(i)beendirectedtodosoinwritingbytheBorrower,theTrustee,ortheBondholdershavingauthoritytosodirect;(ii)receivedfromtheBorrowerortheBondholdersassurancesatisfactorytotheAuthoritythattheAuthority’sreasonableexpensesincurredortobeincurredinconnectionwithtakingsuchactionorexecutingsuchinstrumenthavebeenorwillbepaidorreimbursedtotheAuthority;and(iii)ifapplicable,receivedinatimelymannertheinstrumentordocumenttobeexecuted,informandsubstancesatisfactorytotheAuthority.IncomplyingwithanyprovisionhereinorintheAgreementrequiringtheAuthorityto“cause”anotherPersontotakeoromitanyaction,theAuthorityshallbeentitledtorelyconclusively(andwithoutindependentinvestigationorverification)(i)onthefaithfulperformancebytheTrusteeortheBorrower,asthecasemaybe,oftheirrespectiveobligationshereunderandunderthe

Agreementand(ii)uponanywrittencertificationoropinionfurnishedtotheAuthoritybytheTrusteeortheBorrower,asthecasemaybe.Inacting,orinrefrainingfromacting,underthisIndenture,theAuthoritymayconclusivelyrelyontheadviceofitscounsel.TheAuthorityshallnotberequiredtotakeanyactionhereunderorundertheAgreementthatitreasonablybelievestobeunlawfulorincontraventionhereoforthereof.

Section11.02.SuccessorIsDeemedIncludedinAllReferencestoPredecessor.WheneverinthisIndentureeithertheAuthority,theBank,ifany,ortheTrusteeisnamedorreferredto,suchreferenceshallbedeemedtoincludethesuccessorsorassignsthereof,andallthecovenantsandagreementsinthisIndenturecontainedbyoronbehalfoftheAuthority,theBank,ifany,ortheTrusteeshallbindandinuretothebenefitoftherespectivesuccessorsandassignsthereofwhethersoexpressedornot.Allthecovenants,stipulations,promisesandagreementsinthisIndenturecontained,byoronbehalfoftheAuthority,shallbindandinuretothebenefitofitssuccessorsandassigns,whethersoexpressedornot.

Section11.03.LimitationofRightstoPartiesandBondholders.NothinginthisIndentureorintheBondsexpressedorimpliedisintendedorshallbeconstruedtogivetoanyPersonotherthantheAuthority,theTrustee,theBank,ifany,theBorrower,theDirectParticipants(asprovidedinSection2.04hereof)andtheHoldersoftheBonds,anylegalorequitableright,remedyorclaimunderorinrespectofthisIndentureoranycovenant,conditionorprovisionthereinorhereincontained;andallsuchcovenants,conditionsandprovisionsareandshallbeheldtobeforthesoleandexclusivebenefitoftheAuthority,theTrustee,theBank,ifany,theBorrower,theDirectParticipants(asprovidedinSection2.04hereof)andtheHoldersoftheBonds.Notwithstandingtheforegoing,itisspecificallyacknowledgedandagreedthat,totheextentoftheirrightshereunder(including,withoutlimitation,theirrightstoimmunityandexculpationfrompecuniaryliability)eachAuthorityIndemnifiedPersonisathirdpartybeneficiaryofthisIndentureentitledtoenforcesuchrightsinhis,her,itsortheirownname.

Section11.04.WaiverofNotice.WheneverinthisIndenturethegivingofnoticebymailorotherwiseisrequired,thegivingofsuchnoticemaybewaivedinwritingbythePersonentitledtoreceivesuchnoticeandinanysuchcasethegivingorreceiptofsuchnoticeshallnotbeaconditionprecedenttothevalidityofanyactiontakeninrelianceuponsuchwaiver.

Section11.05.DestructionofBonds.WheneverinthisIndentureprovisionismadeforthecancellationbytheTrusteeandthedeliverytotheAuthorityofanyBonds,theTrusteemay,inlieuofsuchcancellationanddelivery,destroysuchBondsandshalldeliveracertificateofsuchdestructiontotheAuthority.

Section11.06.SeverabilityofInvalidProvisions.IfanyoneormoreoftheprovisionscontainedinthisIndentureorintheBondsshallforanyreasonbeheldtobeinvalid,illegalorunenforceableinanyrespect,thensuchprovisionorprovisionsshallbedeemedseverablefromtheremainingprovisionscontainedinthisIndentureandsuchinvalidity,illegalityorunenforceabilityshallnotaffectanyotherprovisionofthisIndenture,andthisIndentureshallbeconstruedasifsuchinvalidorillegalorunenforceableprovisionhadneverbeencontainedherein.TheAuthorityandtheTrusteeeachherebydeclaresthatitwouldhaveenteredintothisIndentureandeachandeveryotherSection,paragraph,sentence,clauseorphrasehereofandauthorizedtheissuanceoftheBondspursuanttheretoirrespectiveofthefactthatanyoneormoreSections,paragraphs,sentences,clausesorphrasesofthisIndenturemaybeheldillegal,invalidorunenforceable.

Section11.07.GoverningLaw.ThisIndentureandtheBondsarecontractsmadeunderthelawsoftheStateandshallbegovernedbyandconstruedinaccordancewiththeConstitutionandlawsapplicabletocontractsmadeandperformedintheState.

Section11.08.Notices.NoticesshallbedeliveredtoeachBondholderbyfirst-classmail,postageprepaid,attheaddresssetforthforsuchBondholderontheregistrationbooksoftheTrustee.AnynoticetoordemandupontheTrusteemaybeservedorpresentedinwriting,andsuchdemandmaybemadeinwriting,attheCorporateTrustOfficeoftheTrustee,whichatthedateofadoptionofthisIndentureislocatedatthefollowingaddress:

CitibankAgency&Trust338GreenwichStreet,14thFloorNewYork,NewYork10013Attention:PaoloIppolitoTelephone:(212)816-8831

oratsuchotheraddressasmayhavebeenfiledinwritingbytheTrusteewiththeAuthority.

Unlessotherwisespecificallyprovidedherein,anynotice,request,complaint,demand,communicationorotherpapershallbesufficientlygivenandshallbedeemedgivenwhenthesameare:(i)depositedintheUnitedStatesmailandsentbyfirstclassmail,postageprepaid,or(ii)delivered,ineachcasetothepartiesattheaddressessetforthbeloworatsuchotheraddressasapartymaydesignatebywrittennoticetotheotherparties:

TotheAuthority:

IllinoisFinanceAuthorityP.O.Box641249Chicago,Illinois60664Attention:ExecutiveDirectorTelephone:(312)651-1300Facsimile:(312)651-1350

withacopyto:

IllinoisFinanceAuthorityP.O.Box641249Chicago,Illinois60664Attention:GeneralCounselTelephone:(312)651-1300Facsimile:(312)651-1350

TotheGuarantor:

Navistar,Inc.2701NavistarDriveLisle,Illinois60532Attn:President,FinancialServicesandTreasurerEmail:Bill.McMenamin@navistar.comandAnthony.Aiello@navistar.com

TotheBorrower:

NavistarInternationalCorporation2701NavistarDriveLisle,Illinois60532Attn:President,FinancialServicesandTreasurerEmail:Bill.McMenamin@navistar.comandAnthony.Aiello@navistar.com

TotheRatingAgency:

Moody’sInvestorsService,Inc.7WorldTradeCenter250GreenwichStreetNewYork,NewYork10007

TotheRemarketingAgent:

BofASecurities,Inc.BankofAmericaTowerOneBryantPark,9thFloorNewYork,NewYork10036Fax:(646)736-6960Email:lawrence.n.tonomura@baml.com

orsuchotheraddressesasmayhavebeenfiledinwritingwiththeTrustee.AnynoticegiventotheBorrowerasprovidedaboveshallbedeemedtohavebeengiventoanyaffiliateoftheBorroweraffectedbysuchnotice.

Section11.09.EvidenceofRightsofBondholders.

(a)Anyrequest,consentorotherinstrumentrequiredorpermittedbythisIndenturetobesignedandexecutedbyBondholdersmaybeinanynumberofconcurrentinstrumentsofsubstantiallysimilartenorandshallbesignedorexecutedbysuchBondholdersinpersonorbyanagentoragentsdulyappointedinwriting.Proofoftheexecutionofanysuchrequest,consentorotherinstrumentorofawritingappointinganysuchagent,oroftheholdingbyanyPersonofBondstransferablebydelivery,shallbesufficientforanypurposeofthisIndentureandshallbeconclusiveinfavoroftheTrusteeandoftheAuthorityifmadeinthemannerprovidedinthisSection.

(b)ThefactanddateoftheexecutionbyanyPersonofanysuchrequest,consentorotherinstrumentorwritingmaybeprovedbythecertificateofanynotarypublicor

otherofficerofanyjurisdiction,authorizedbythelawsthereoftotakeacknowledgmentsofdeeds,certifyingthattheindividualsigningsuchrequest,consentorotherinstrumentacknowledgedtosuchnotarypublicorotherofficertheexecutionthereof,orbyanaffidavitofawitnessofsuchexecutiondulysworntobeforesuchnotarypublicorotherofficer.

(c)TheownershipofregisteredBondsshallbeprovedbythebondregistrationbooksheldbytheRegistrar.TheTrusteeandtheAuthoritymayconclusivelyassumethatsuchownershipcontinuesuntilwrittennoticetothecontraryisservedupontheTrustee.Thefactandthedateofexecutionofanyrequest,consentorotherinstrumentandtheamountanddistinguishingnumbersofBondsheldbythePersonsoexecutingsuchrequest,consentorotherinstrumentmayalsobeprovedinanyothermannerwhichtheTrusteemaydeemsufficient.TheTrusteemaynevertheless,initsdiscretion,requirefurtherproofincaseswhereitmaydeemfurtherproofdesirable.

Anyrequest,consentorotherinstrumentorwritingoftheHolderofanyBondshallbindeveryfutureHolderofthesameBondandtheHolderofeveryBondissuedinexchangetherefororinlieuthereof,inrespectofanythingdoneorsufferedtobedonebytheTrusteeortheAuthorityinaccordancetherewithorreliancethereon.

Section11.10.DisqualifiedBonds.IndeterminingwhethertheHoldersoftherequisiteaggregateprincipalamountofBondshaveconcurredinanydemand,request,direction,consentorwaiverunderthisIndenture,BondswhichareownedorheldbyorfortheaccountoftheAuthorityortheBorrower,orbyanyotherobligorontheBonds,orbyanyPersondirectlyorindirectlycontrollingorcontrolledby,orunderdirectorindirectcommoncontrolwith,theAuthorityortheBorroweroranyotherobligorontheBonds,shallbedisregardedanddeemednottobeOutstandingforthepurposeofanysuchdeterminationprovidedthat,forthepurposeofdeterminingwhethertheTrusteeshallbeprotectedinrelyingonanysuchdemand,request,direction,consentorwaiver,onlyBondswhichaResponsibleOfficeroftheTrusteeactuallyknowstobesoownedshallbedisregarded.BondssoownedwhichhavebeenpledgedingoodfaithmayberegardedasOutstandingforthepurposesofthisSectionifthepledgeeshallestablishtothesatisfactionoftheTrusteethepledgee’srighttovotesuchBondsandthatthepledgeeisnotaPersondirectlyorindirectlycontrollingorcontrolledby,orunderdirectorindirectcommoncontrolwith,theAuthorityortheBorroweroranyotherobligorontheBonds.UponthewrittenrequestoftheTrustee,theAuthorityandtheBorrowershalleachcertifytotheTrusteethoseBondsdisqualifiedpursuanttothisSectionandtheTrusteemayconclusivelyrelyonsuchCertificates.Notwithstandingtheforegoing,withrespecttotheCertificateoftheAuthority,theAuthorityshallberequiredtospecifyonlythoseBondsthatareownedorheldbyorfortheaccountoftheAuthorityoranyPersondirectlyorindirectlycontrollingorcontrolledby,orunderdirectorindirectcommoncontrolwith,theAuthority,ifany,ofwhichtheofficersigningtheCertificateonbehalfoftheAuthorityhasactualknowledge.Incaseofadisputeastosuchright,anydecisionbytheTrusteetakenupontheadviceofcounselshallbefullprotectiontotheTrustee.

Section11.11.MoneyHeldforParticularBonds.ThemoneyheldbytheTrusteeforthepaymentoftheinterest,principal,premiumorPurchasePricedueonanydatewithrespecttoparticularBonds(orportionsofBondsinthecaseofregisteredBondsredeemedortenderedinpartonly)shall,onandaftersuchdateandpendingsuchpayment,besetasideonitsbooksandheldbyituninvestedintrustfortheHoldersoftheBondsentitledthereto,subject,however,totheprovisionsofSection10.04hereof.

Section11.12.FundsandAccounts.AnyfundoraccountrequiredbythisIndenturetobeestablishedandmaintainedbytheTrusteemaybeestablishedandmaintainedintheaccountingrecordsoftheTrustee,eitherasafundoranaccount,andmay,forthepurposesofsuchrecords,anyauditsthereofandanyreportsorstatementswithrespectthereto,betreatedeitherasafundorasanaccount;butallsuchrecordswithrespecttoallsuchfundsandaccountsshallatalltimesbemaintainedinaccordancewithcorporatetrustindustrystandardsandwithdueregardfortherequirementsofSection6.05hereofandfortheprotectionofthesecurityoftheBondsandtherightsofeveryHolderthereof.TheTrusteemayestablishandmaintainforaslongasnecessaryoneormoretemporaryfundsoraccountsunderthisIndentureinordertocarryoutthepurposessetforththerein.

Section11.13.BusinessDay.IfanypaymentistobemadehereunderoranyactionistobetakenhereunderonanydatethatisnotaBusinessDay,suchpaymentoractionotherwiserequiredtobemadeortakenonsuchdateshallbemadeortakenontheimmediatelysucceedingBusinessDaywiththesameforceandeffectasifmadeortakenonsuchscheduleddate.

Section11.14.ImmunityofOfficers,EmployeesandMembersoftheAuthority.Norecourseshallbehadforthepaymentoftheprincipaloforpremium,ifany,andinterestonanyoftheBondsorforanyclaimbasedthereonoruponanyobligation,covenantoragreementcontainedinthisIndenture,theLoanAgreement,theBondPurchaseAgreementortheTaxCertificateagainstanypast,presentorfuturemember,officer,agentoremployeeoftheAuthority,oranyincorporator,member,officer,employee,directorortrusteeofanysuccessorcorporation,assuch,eitherdirectlyorthroughtheAuthorityoranysuccessorcorporation,underanyruleoflaworequity,statuteorconstitutionorbytheenforcementofanyassessmentorpenaltyorotherwise,andallsuchliabilityofanysuchincorporator,member,officer,employee,director,agentortrusteeassuchisherebyexpresslywaivedandreleasedasaconditionofandconsiderationfortheexecutionofthisIndentureortheLoanAgreementandtheissuanceoftheBonds.

Section11.15.CompleteAgreement.ThepartiesagreethatthetermsandconditionsofthisIndenturesupersedethoseofallpreviousagreementsbetweenthepartiesrelativetotheBonds,andthatthisIndenture,togetherwiththedocumentsreferredtointhisIndenture,containstheentireagreementbetweenthepartiesheretorelativetotheBonds.

Section11.16.ExecutioninSeveralCounterparts.ThisIndenturemaybeexecutedinanynumberofcounterpartsandeachofsuchcounterpartsshallforallpurposesbedeemedtobeanoriginal;andallsuchcounterparts,orasmanyofthemastheAuthorityandtheTrusteeshallpreserveundestroyed,shalltogetherconstitutebutoneandthesameinstrument.

Section11.17.EffectofBankDefault.IfaLetterofCreditisineffectandtheBankwrongfullydishonorsadrawingundersuchLetterofCredit,then,solongassuchwrongfuldishonorcontinues,anyprovisioninthisIndenturerequiringtheBank’sapprovalorconsentshallbeofnoeffect.

INWITNESSWHEREOF,theILLINOISFINANCEAUTHORITYhascausedthisIndenturetobesignedinitsnameandonitsbehalfbyitsDeputyExecutiveDirector,andCITIBANK,N.A.,intokenofitsacceptanceofthetrustscreatedhereunder,hascausedthisIndenturetobesignedinitscorporatenamebyoneoftheofficersthereuntodulyauthorized,allasofthedayandyearfirstabovewritten.

By: /s/ Jacob StuckeyName: JacobStuckeyTitle: DeputyExecutiveDirector

By: /s/ Paolo IppolitoName: PaoloIppolitoTitle: SeniorTrustOfficer

[SIGNATUREPAGETOINDENTURE]

EXHIBIT A

FORM OF BOND

THIS BOND AND THE OBLIGATION TO PAY PRINCIPAL OR PREMIUM, IF ANY, WITH RESPECT HERETO, AND INTERESTHEREON ARE SPECIAL, LIMITED OBLIGATIONS OF THE AUTHORITY, SECURED AS PROVIDED HEREIN AND PAYABLE SOLELYOUT OF THE REVENUES AND INCOME DERIVED FROM THE LOAN AGREEMENT AND THE NOTE AND AS OTHERWISEPROVIDED IN THE INDENTURE AND LOAN AGREEMENT. THIS BOND AND THE OBLIGATION TO PAY PRINCIPAL OR PREMIUM,IF ANY, WITH RESPECT HERETO, AND INTEREST HEREON SHALL NOT BE DEEMED TO CONSTITUTE AN INDEBTEDNESS OR ANOBLIGATION OF THE STATE OF ILLINOIS OR ANY POLITICAL SUBDIVISION THEREOF WITHIN THE PURVIEW OF ANYCONSTITUTIONAL OR STATUTORY LIMITATION OR PROVISION OR A CHARGE AGAINST THE GENERAL CREDIT OR TAXINGPOWERS, IF ANY, OF ANY OF THEM. THE AUTHORITY DOES NOT HAVE THE POWER TO LEVY TAXES FOR ANY PURPOSESWHATSOEVER. NO OWNER OF THIS BOND SHALL HAVE THE RIGHT TO COMPEL ANY EXERCISE OF THE TAXING POWER OFTHE STATE OF ILLINOIS OR ANY POLITICAL SUBDIVISION THEREOF TO PAY THE PRINCIPAL OF, PREMIUM, IF ANY, ORINTEREST ON THIS BOND.No.R-[] $225,000,000

UNITEDSTATESOFAMERICA

STATEOFILLINOIS

ILLINOISFINANCEAUTHORITYRECOVERYZONEFACILITYREFUNDINGREVENUEBOND(NAVISTARINTERNATIONALCORPORATIONPROJECT)

SERIES2020

MATURITYDATE DATED INITIAL

INTERESTRATE CUSIP October15,2040 DateofDelivery 4.75% 45204FDS1

RegisteredOwner:CEDE&CO.

PrincipalAmount:TWOHUNDREDTWENTY-FIVEMILLIONDOLLARS

DateofDelivery:

InitialInterestRatePeriod:August4,2020throughJuly31,2030

TheIllinoisFinanceAuthority(the“Authority”),apoliticalsubdivisionandbodypoliticandcorporateoftheStateofIllinois,forvaluereceived,herebypromisestopay(butonlyoutoftheTrustEstateashereinafterprovided)totheregisteredowneridentifiedaboveorregisteredassigns,onthematuritydatesetforthabove,theprincipalsumsetforthaboveandtopay(butonlyoutoftheTrustEstateashereinafterprovided)interestonthebalanceofsaidprincipalamountfromtimetotimeremainingunpaidfromandincludingthedatehereofuntilpaymentofsaidprincipalamounthasbeenmadeordulyprovidedfor,attheratesandonthedatesdeterminedasdescribedhereinandintheIndenture(ashereinafterdefined),andtopay(butonlyoutoftheTrustEstateashereinafterprovided)interestonoverdueprincipaland,totheextentpermittedbylaw,onoverdueinterestattheratebornebythisBondonthedateonwhichsuchprincipalorinterestbecamedueandpayable,exceptastheprovisionshereinaftersetforthwithrespecttoredemptionpriortomaturityorpurchasemaybecomeapplicablehereto.IfanEventofDefault(asdefinedintheIndenture)shallhaveoccurredandbecontinuing,theinterestrateontheBondsshallbetherateontheBondsonthedaypriortotheoccurrenceofsuchEventofDefault.Theprincipalofandpremium,ifany,onthisBondarepayableatfinalmaturity,accelerationorredemptioninlawfulmoneyoftheUnitedStatesofAmericauponsurrenderhereofattheCorporateTrustOfficeofCitibank,N.A.,astrustee,oritssuccessorintrust(the“Trustee”).InterestpaymentsonthisBondshallbemadeoneachInterestPaymentDate(asdefinedbelow),tothePersonappearingonthebondregistrationbooksoftheTrustee,asbondregistrar(the“BondRegistrar”),astheBondholderthereofasofthecloseofbusinessontheRecordDate,whichistheBusinessDay(asdefinedintheIndenture)immediatelyprecedinganyInterestPaymentDateduringaVariableInterestRatePeriodasdefinedintheIndentureoranyTermInterestRatePeriodoflessthanoneyear,includingany3-MonthTermInterestRatePeriod,andthefifteenthdayofthecalendarmonthprecedinganyInterestPaymentDateduringanIndexInterestRatePeriod,aSIFMAInterestRatePeriodoraTermInterestRatePeriodofoneyearorgreater(the“RecordDate”),andshallbepaid(i)bycheckmailedontheInterestPaymentDatetosuchBondholder’saddressasitappearsontheregistrationbooksoratsuchotheraddressashasbeenfurnishedtotheBondRegistrarasprovidedbelow,inwritingbysuchBondholdernotlaterthantheRecordDateor(ii)uponwrittenrequest,atleastthreeBusinessDayspriortotheapplicableRecordDateoftheBondholderofBondsaggregatingnotlessthan$1,000,000inprincipalamount,bywiretransferinimmediatelyavailablefundsatanaccountmaintainedintheUnitedStatesatsuchwireaddressassuchBondholdershallspecifyinitswrittennotice;except,ineachcase,that,ifandtotheextentthatthereshallbeadefaultinthepaymentoftheinterestdueonsuchInterestPaymentDate,suchdefaultedinterestshallbepaidtotheBondholderinwhosenameanysuchBondsareregisteredatthecloseofbusinessonthefifthBusinessDaynextprecedingthedateofpaymentofsuchdefaultedinterest.

ThisBondisoneofadulyauthorizedissueofbondsoftheAuthoritydesignatedas”IllinoisFinanceAuthorityRecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020”(the“Bonds”),limitedinaggregateprincipalamountto$225,000,000andissuedundertheprovisionsoftheIllinoisFinanceAuthorityAct,20ILCS3501/801-1etseq.,asfromtimetotimesupplementedandamended(the“Act”).TheBonds,togetherwithallprincipalandinterestthereonandpremium,ifany,withrespectthereto,arespecial,limitedobligationsoftheAuthoritysecuredtotheextentprovidedinthehereinafterdescribedIndentureandshallbepayablesolelyfromtheTrustEstatedescribedbelow.ProceedsfromthesaleoftheBondswillbeloanedbytheAuthoritytoNavistarInternationalCorporation,acorporationorganizedandexistingunderthelawsoftheStateofDelaware(the“Borrower”),underthetermsofaLoanAgreement,datedasofJuly1,2020(the“LoanAgreement”or“Agreement”),betweentheAuthorityandtheBorrower.

TheBondsareissuedunderandsecuredbyandentitledtothebenefitsofanIndenture,datedasofJuly1,2020(the“Indenture”),betweentheAuthorityandtheTrustee;allreceiptsoftheTrusteecreditedundertheprovisionsoftheIndentureagainstsuchpayments;anymoneysreceivedbytheTrusteefromNavistar,Inc.(the“Guarantor”)pursuanttoaBondGuaranteedatedasofJuly1,2020,executedbytheGuarantorinfavoroftheTrustee(alloftheforegoing,the“Revenues”,asmoreparticularlydefinedintheIndenture)andfromanyothermoneysheldbytheTrusteeundertheIndentureforsuchpurpose(collectively,the“TrustEstate”),andthereshallbenootherrecourseagainsttheAuthorityoranypropertynoworhereafterownedbyit(includinganyRetainedRights(asdefinedintheIndenture)andanypaymentsinrespectthereof).

ReferenceisherebymadetotheIndentureandallindenturessupplementaltheretoforadescriptionoftherightsthereunderoftheregisteredBondholdersoftheBonds,ofthenatureandextentofthesecurity,oftherights,privileges,protections,indemnities,benefits,dutiesandimmunitiesoftheTrusteeandoftherightsandobligationsoftheAuthoritythereunder,toalloftheprovisionsofwhichIndentureandoftheAgreementtheHolderofthisBond,byacceptancehereof,assentsandagrees.

AlltermsnothereindefinedshallhavethemeaningsascribedtothemintheIndenture.

TheBondsareissuableasfullyregisteredbondswithoutcouponsinAuthorizedDenominationsof$100,000oranyintegralmultipleof$5,000inexcessthereof.Subjecttothelimitationsanduponpaymentofthecharges,ifany,providedintheIndenture,BondsmaybeexchangedattheCorporateTrustOfficeoftheTrustee,foralikeaggregateprincipalamountofBondsofotherAuthorizedDenominationsoflikematurity.

ThisBondistransferablebytheBondholderhereof,inperson,orbyitsattorneydulyauthorizedinwriting,butonlyinthemanner,subjecttothelimitationsanduponpaymentofthechargesprovidedintheIndenture,anduponsurrenderandcancellationofthisBond.UponsuchtransferanewfullyregisteredBondorBonds,inanAuthorizedDenominationorDenominations,forthesameaggregateprincipalamount,andoflikematurity,willbeissuedtothetransfereeinexchangetherefor.TheAuthorityandtheTrusteemaytreattheBondholderhereofastheabsoluteBondholderhereofforallpurposes,andtheAuthorityandtheTrusteeshallnotbeaffectedbyanynoticetothecontrary.

InterestontheBonds

ThetermoftheBondswillbedividedintoconsecutiveInterestRatePeriods,asprovidedintheIndenture,duringeachofwhichtheBondsshallbearinterestataDailyInterestRate,anIndexInterestRate,aSIFMAInterestRate,aWeeklyInterestRateoraTermInterestRate.ThefirstInterestRatePeriodfortheBondsshallbeaTermInterestRatePeriodendingonJuly31,2030.TheinterestratedeterminationmethodfortheBondsmaybesubsequentlychangedfromtimetotimebytheBorrower,withouttheconsentoftheHoldersoftheBonds,asprovidedintheIndenture.TheTrusteeshallgivenoticetoHoldersoftheBonds,asprovidedintheIndenture,priortoanychangeintheinterestratedeterminationmethod.

InterestontheBondswithrespecttotheimmediatelyprecedingInterestPeriod(asdefinedintheIndenture)willbepaidoneachInterestPaymentDate,providedthatifanyInterestPaymentDateisnotaBusinessDay,suchinterest(andanyprincipaldue)shallbemailedorwiredasprovidedaboveonthenextsucceedingBusinessDaywiththesameeffectasifmadeonthedaysuchpaymentwasdue.

ExceptduringaTermInterestRatePeriodofoneyearormore,interestontheBondsshallbecomputeduponthebasisofa365-dayor366-day,asapplicable,yearforthenumberofdaysactuallyelapsed.DuringanyTermInterestRatePeriodofoneyearormore,interestontheBondsshallbecomputeduponthebasisofa360-dayyear,consistingoftwelve30-daymonths.InterestontheBondsshallbearinterestfromandincludingtheDateofDelivery(asdefinedintheIndenture)untilpaymentoftheprincipalorredemptionpricethereofhasbeenmadeorprovidedfor,whetheratmaturity,uponredemptionorotherwise.

“InterestPaymentDate”means(a)duringtheinitialTermInterestRatePeriod,eachApril15andOctober15,commencingApril15,2021,(b)duringaVariableInterestRatePeriod,thefirstBusinessDayofeachcalendarmonth,(c)duringaTermInterestRatePeriod,otherthana3-MonthTermInterestRatePeriod(inwhichcase,theInterestPaymentDatemeanstheConversionDate),thefifteenthdayofthecalendarmonththatissixcalendarmonthsafterthebeginningofthecalendarmonthinwhichtheConversionDateoccurs,asapplicable,andthefifteenthdayofthecalendarmontheverysixmonthsaftereachsuchpaymentdatethereafteruntiltheendofsuchInterestRatePeriodwiththelastInterestPaymentDatethereofbeingonthefirstBusinessDayaftertheendofsuchTermInterestRatePeriod,(d)eachConversionDate,(e)thePrincipalPaymentDate,(f)anyredemptiondate,and(g)duringanIndexInterestRatePeriodoraSIFMAInterestRatePeriod,(i)thefirstBusinessDayofeachmonthand(ii)theIndexTenderDateortheSIFMATenderDate,asapplicable.

VariableInterestRate

DuringeachDailyInterestRatePeriod,theBondsshallbearinterestattheDailyInterestRate,whichshallbedeterminedbytheRemarketingAgentnotlaterthan9:30a.m.(NewYorkCitytime)oneachBusinessDayduringsuchDailyInterestRatePeriodtotakeeffectonthenextsucceedingBusinessDay;provided,however,thatifthethencurrentInterestRatePeriodisanIndexInterestRatePeriod,aSIFMAInterestRatePeriod,aWeeklyInterestRatePeriodoraTermInterestRatePeriod,theDailyInterestRatefortheDailyInterestRatePeriodsucceedingsuchIndexInterestRatePeriod,SIFMAInterestRatePeriod,WeeklyInterestRatePeriodorTermInterestRatePeriod,asapplicable,shallbedeterminednotlaterthantheBusinessDaynextprecedingtheeffectivedateofsuchDailyInterestRatePeriod.

DuringeachWeeklyInterestRatePeriod,theBondsshallbearinterestattheWeeklyInterestRate,whichshallbedeterminedbytheRemarketingAgentnotlaterthan12:00noon(NewYorkCitytime)onWednesdayofeachweek(orby12:00noon(NewYorkCitytime)onthenextsucceedingBusinessDayifsuchWednesdayisnotaBusinessDay)duringsuchWeeklyInterestRatePeriodfortheweekcommencingonthatnextsucceedingThursday(unlesssuchWeeklyInterestRateisdeterminedonthenextsucceedingBusinessDayifWednesdayisnotaBusinessDayinwhichcaseitshallbeeffectiveonthedayofsuchdetermination);provided,however,thatifthethencurrentInterestRatePeriodisanIndexInterestRatePeriod,aSIFMAInterestRate

Period,aDailyInterestRatePeriodoraTermInterestRatePeriod,thefirstWeeklyInterestRatefortheWeeklyInterestRatePeriodsucceedingsuchIndexInterestRatePeriod,SIFMAInterestRatePeriod,DailyInterestRatePeriodorTermInterestRatePeriod,asapplicable,shallbedeterminednotlaterthantheBusinessDaynextprecedingtheeffectivedateofsuchWeeklyInterestRatePeriod.

TheVariableInterestRateshallbetheinterestratedeterminedbytheRemarketingAgent(onthebasisofexaminationofobligationscomparabletotheBondsknownbytheRemarketingAgenttohavebeenpricedortradedunderthenprevailingmarketconditions)tobetheminimuminterestratewhich,ifbornebytheBonds,wouldenabletheRemarketingAgenttoselltheBondsontheeffectivedateofsuchVariableInterestRatePeriodatapriceequaltotheprincipalamountthereofplusaccruedinterest;provided,however,thatifforanyreasontheVariableInterestRatecannotbedetermined,noRemarketingAgentshallbeservingortheratedeterminedisheldtobeinvalidorunenforceable,theDailyInterestRateforthenextsucceedingBusinessDayandthereaftershallremainatthethen-existingDailyInterestRate,andtheWeeklyInterestRateforthenextsucceedingWeeklyInterestRatePeriodshallremainatthethen-existingWeeklyInterestRate,andthereaftertheWeeklyInterestRateshallbetheSIFMAIndexplus15basispoints.

ThefirstDailyInterestRatedeterminedforeachDailyInterestRatePeriodshallapplytotheperiodcommencingonthefirstdayofsuchDailyInterestRatePeriodandendingonthenextsucceedingBusinessDay.Thereafter,eachDailyInterestRateshallapplytotheperiodcommencingoneachBusinessDayandendingonthenextsucceedingBusinessDay.

ThefirstWeeklyInterestRatedeterminedforeachWeeklyInterestRatePeriodshallapplytotheperiodcommencingonthefirstdayofsuchWeeklyInterestRatePeriodandendingonthenextsucceedingWednesday.Thereafter,eachWeeklyInterestRateshallapplytotheperiodcommencingonThursdayandendingonthenextsucceedingWednesday,unlesssuchWeeklyInterestRatePeriodshall(i)beginonadayotherthanThursday,inwhicheventtheWeeklyInterestRateforsuchWeeklyInterestRatePeriodshallapplytotheperiodcommencingonsuchdateandendingonthesucceedingWednesdayor(ii)endonadayotherthanWednesday,inwhicheventthelastWeeklyInterestRateforsuchWeeklyInterestRatePeriodshallapplytotheperiodcommencingontheThursdayprecedingthelastdayofsuchWeeklyInterestRatePeriodandendingonsuchlastday.

IndexInterestRate

DuringeachIndexInterestRatePeriod,theBondsshallbearinterestattheIndexInterestRate.TheApplicableSpreadforeachIndexInterestRatePeriodshallbedeterminedbytheRemarketingAgentonorpriortotheConversionDateinaccordancewiththedefinitionthereof.TheRemarketingAgentshallfurnishsuchApplicableSpreadsodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthantheConversionDate.TheIndexInterestRateshallbedeterminedbytheCalculationAgentatorbefore12:00noon(NewYorkCitytime)oneachResetDate.TheCalculationAgentshallfurnisheachIndexInterestRatesodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthansuchResetDate.UponthewrittenrequestofanyBondholder,thePayingAgentshallconfirmtheIndexInterestRatethenineffecttotheextentavailabletoit.

AllpercentagesresultingfromanystepinthecalculationofinterestontheBondswhileinanIndexInterestRatePeriodwillberounded,ifnecessary,tothenearestten-thousandthofapercentagepoint(i.e.,tofourdecimalplaces)withfivehundredthousandthsofapercentagepointroundedupward,andalldollaramountsusedinorresultingfromsuchcalculationofinterestontheBondswhileinanIndexInterestRatePeriodwillberoundedtothenearestcent(withone-halfcentbeingroundedupward).

IntheeventtheBorrowerdoesnotconfirmtheproposedIndexInterestRatepriortothecommencementofanIndexInterestRatePeriod,theBondsshallconverttoaWeeklyInterestRatePeriodandtheinterestrateineffectontheBondsbeginningontheapplicableeffectivedateshallbeapercentageperannumequaltotheSIFMAIndexplus15basispointstoberesetinthesamemannerastheWeeklyInterestRateisreset,untiltheBondsareconvertedtoanotherInterestRatePeriod.

SIFMAInterestRate

DuringeachSIFMAInterestRatePeriod,theBondsshallbearinterestattheSIFMAInterestRate.TheApplicableSpreadforeachSIFMAInterestRatePeriodshallbedeterminedbytheRemarketingAgentonorpriortotheConversionDateinaccordancewiththedefinitionthereof.TheRemarketingAgentshallfurnishsuchApplicableSpreadsodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthantheConversionDate.DuringtheSIFMAInterestRatePeriod,theCalculationAgentshallestablishtheSIFMAIndexby4:00p.m.oneachWednesdayor,ifsuchWednesdayisnotaBusinessDay,theBusinessDaynextprecedingsuchWednesday.TheSIFMAInterestRateshallbedeterminedbytheCalculationAgentatorbefore12:00noon(NewYorkCitytime)oneachResetDate.TheCalculationAgentshallfurnisheachSIFMAInterestRatesodeterminedtotheotherFinancingParticipantsbyElectronicMeansnotlaterthansuchResetDate.UponthewrittenrequestofanyBondholder,thePayingAgentshallconfirmtheSIFMAInterestRatethenineffect.

AllpercentagesresultingfromanystepinthecalculationofinterestontheBondswhileinaSIFMAInterestRatePeriodwillberounded;ifnecessary,tothenearestten-thousandthofapercentagepoint(i.e.,tofourdecimalplaces)withfivehundredthousandthsofapercentagepointroundedupward,andalldollaramountsusedinorresultingfromsuchcalculationofinterestontheBondswhileinaSIFMAInterestRatePeriodwillberoundedtothenearestcent(withone-halfcentbeingroundedupward).

IntheeventtheBorrowerdoesnotconfirmtheproposedSIFMAInterestRatepriortothecommencementofaSIFMAInterestRatePeriod,theBondsshallconverttoaWeeklyInterestRatePeriodandtheinterestrateineffectontheBondsbeginningontheapplicableeffectivedateshallbeapercentageperannumequaltotheSIFMAIndexplus15basispointstoberesetinthesamemannerastheWeeklyInterestRateisreset,untiltheBondsareconvertedtoanotherInterestRatePeriod.

TermInterestRate

DuringeachTermInterestRatePeriod,theBondsshallbearinterestattheTermInterestRate,whichshallbedeterminedbytheRemarketingAgentnotlaterthan4:00p.m.(NewYork

Citytime)ontheBusinessDayprecedingthefirstdayofsuchTermInterestRatePeriod.TheTermInterestRateshallbetheratedeterminedbytheRemarketingAgent(onthebasisofexaminationofobligationscomparabletotheBondsknowntotheRemarketingAgenttohavebeenpricedortradedunderthenprevailingmarketconditions)tobetheminimuminterestratewhich,ifbornebytheBonds,wouldenabletheRemarketingAgenttosellsuchBondsonthefirstdayofsuchTermInterestRatePeriodatapriceequaltotheprincipalamountthereof;provided,however,thatifforanyreasontheTermInterestRatecannotbedeterminedforanyTermInterestRatePeriod,theinterestrateonsuchBondsshallconverttoaWeeklyInterestRateduringaWeeklyInterestRatePeriodunlessthethenexistingInterestRatePeriodisanIndexInterestRatePeriodoraSIFMAInterestRatePeriod,inwhichcasetheBondsshallconverttoaWeeklyInterestRatePeriodandtheinterestrateineffectontheBondsbeginningontheapplicableeffectivedateshallbeapercentageperannumequaltotheSIFMAIndexplus15basispointstoberesetinthesamemannerastheWeeklyInterestRateisreset,untiltheBondsareconvertedtoanotherInterestRatePeriod.

THEFOREGOINGPROVISIONSNOTWITHSTANDING,INNOEVENTSHALLTHEINTERESTRATEBORNEBYTHEBONDSATANYTIMEEXCEED12%PERANNUMOR,IFLOWERTHAN12%PERANNUM,THEMAXIMUMRATEPERMITTEDBYAPPLICABLELAW.

BofASecurities,Inc.(the“RemarketingAgent”),initiallyhasbeenappointedasRemarketingAgent.TheRemarketingAgentmayberemovedorreplacedinaccordancewiththeprovisionsoftheRemarketingAgreementandtheIndenture.

DeterminationoftheinterestratebytheRemarketingAgentortheCalculationAgent,asapplicable,shallbeconclusiveandbindingupontheregisteredBondholdersoftheBonds,theAuthority,theTenderAgent,theBank,ifany,andtheTrustee.

DemandPurchaseofBonds

DuringanyVariableInterestRatePeriod,anyBondsorportionsthereofinAuthorizedDenominationsshallbepurchasedattheoptionoftheBondholderthereof,or,withrespecttoBook-EntryBonds,attheoptionoftheDirectParticipantwithanownershipinterestinBook-EntryBonds,onanyBusinessDay,atapriceof100%oftheprincipalamountthereof,plusaccruedinteresttothePurchaseDate,upon(i)deliverytotheTrusteeandtheTenderAgent,attheirrespectiveCorporateTrustOfficesofanirrevocablenoticeinwriting(a“TenderNotice”)by10:30a.m.(NewYorkCitytime)inthecaseofBondsinaDailyInterestRatePeriod,or3:00p.m.(NewYorkCitytime)inthecaseofBondsinaWeeklyInterestRatePeriod,onanyBusinessDay,whichstatesthenameoftheregisteredBondholderofsuchBondsortheDirectParticipantforsuchBondsandsuchDirectParticipant’saccountnumber,asapplicable,paymentinstructionswithrespecttothePurchasePriceofsuchBonds,theprincipalamountofsuchBondsorportionsthereofinAuthorizedDenominationsbeingtenderedforpurchase,theCUSIPnumberofsuchBondsandthedateonwhichthesamearetobepurchased(whichdate,inthecaseofBondsbearinginterestataDailyInterestRate,shallbeanyBusinessDayand,inthecaseofBondsinaWeeklyInterestRatePeriod,shallbeaBusinessDaynotpriortotheseventhdaynextsucceedingthedateofthedeliveryofsuchTenderNoticetotheTrusteeandtheTenderAgent),and(ii)(a)iftheBondsarenotBook-EntryBonds,deliveryofsuchBondstotheTenderAgentatitsCorporateTrustOffice,

accompaniedbyaninstrumentoftransferthereofinformsatisfactorytotheTenderAgent,executedinblankbytheBondholderthereofwiththesignatureguaranteedinaccordancewiththeguidelinessetforthbyoneofthenationallyrecognizedmedallionsignatureprograms,atorpriorto12:30p.m.(NewYorkCitytime)onthePurchaseDatespecifiedintheTenderNotice,or(b)iftheBondsareBook-EntryBonds,confirmationbyDTC(obtainedbytheDirectParticipantoftheBook-EntryBondsbeingtenderedforpurchase)thatsuchDirectParticipanthasanownershipinterestinsuchBook-EntryBondsatleastequaltotheamountspecifiedinsuchTenderNotice,andofthetransferontheregistrationbooksofDTCofthebeneficialownershipinterestinsuchBook-EntryBondstotheaccountoftheTrustee(ortotheaccountofaDirectParticipantactingonbehalfoftheTrustee).

IfmoneyssufficienttopaythePurchasePriceofsuchBondstobepurchasedpursuanttothepreviousparagraphshallbeheldbytheTrusteeonthedatesuchBondsaretobepurchased,anysuchBondstobesopurchasedwhicharenotdeliveredbytheBondholdersthereoftotheTenderAgentortransferredtotheTrusteeontheregistrationbooksofDTC,asapplicable,onthedatespecifiedforpurchasethereofwillbedeemedtohavebeendeliveredforpurchase,ortransferredontheregistrationbooksofDTC,asapplicable,onsuchdateandtohavebeenpurchased.TheformerHoldersofsuchBonds,orDirectParticipantswithrespecttoBook-EntryBonds,willthereafterhavenorightswithrespecttosuchBondsexcepttoreceivepaymentofthePurchasePricethereforuponsurrenderofsuchBondstotheTenderAgentorthetransfer,ontheregistrationbooksofDTC,ofthebeneficialinterestinsuchBook-EntryBonds.

RedemptionofBonds

TheBondsaresubjecttoredemption,includinganylimitationsthereon,priortomaturityinwholeorinpartunderthecircumstances,atthetimes,intheamounts,atthepricesandupontheothertermsandconditionsspecifiedintheIndenturetowhichspecificreferenceisherebymadeandwhichareincorporatedbyreferenceherein.

PurchaseinLieuofRedemption

TheBorrowermaypurchasetheBondsinlieuofhavingtheBondsredeemedandcancelledasprovidedintheIndenture.

MandatoryTenderforPurchaseofBonds

TheBondsaresubjecttomandatorytenderforpurchasebytheBondholdersthereofunderthecircumstances,atthetimes,atthepricesandupontheothertermsandconditionsspecifiedintheIndenturetowhichspecificreferenceisherebymadeandwhichareincorporatedbyreferenceherein.

TheHolderofthisBondshallhavenorighttoinstituteanysuit,actionorproceedingatlaworinequity,foranyremedyunderorupontheIndentureortoenforceadrawingontheLetterofCreditorpaymentundertheGuaranty,exceptasprovidedintheIndenture.

Norecourseshallbehadforthepaymentoftheprincipalof,premium,ifany,orinterestonanyoftheBondsorforanyclaimbasedthereonoruponanyobligation,covenantoragreementintheIndenturecontained,againstanypast,presentorfuturemember,director,officer,employee

oragentoftheAuthority,orthroughtheAuthority,oranysuccessortotheAuthority,oranyAuthorityIndemnifiedPerson,underanyruleoflaworequity,statuteorconstitutionorbytheenforcementofanyassessmentorpenaltyorotherwise,andallsuchliabilityofanysuchmember,director,officer,employeeoragentassuchisherebyexpresslywaivedandreleasedasaconditionofandinconsiderationfortheexecutionoftheIndentureandtheissuanceofanyoftheBonds.

TheIndenturecontainsprovisionspermittingtheAuthorityandtheHoldersofamajorityinaggregateprincipalamountofBondsthenOutstanding,withtheconsentoftheBank,ifany,anddeliveryofanApprovingOpiniontotheTrustee,toexecutesupplementalindentures,oraddanyprovisionsto,orchangeinanymanner,oreliminateanyoftheprovisionsof,theIndenture;provided, however,thatnosuchsupplementalindenture,alterationormodificationshall(1)extendthefixedmaturityofanyBond,orreducetheamountofprincipalthereof,orextendthetimeofpayment,orchangethemethodofcomputingtherateofinterestthereon,orextendthetimeofpaymentofinterestthereon,withouttheconsentoftheHolderofeachBondsoaffected,or(2)reducetheaforesaidpercentageofBondstheconsentoftheHoldersofwhichisrequiredtoeffectanysuchmodificationoramendment,orpermitthecreationofanylienontheTrustEstatepriortooronaparitywiththeliencreatedbytheIndenture,ordeprivetheHoldersoftheBondsoftheliencreatedbytheIndentureonsuchTrustEstate(exceptasexpresslyprovidedintheIndenture),withouttheconsentoftheHoldersofalloftheBondsthenOutstandinganddeliveryofanApprovingOpiniontotheTrustee.UndercertaincircumstancesdescribedintheIndenture,theTrusteeandtheAuthoritymayenterintoaSupplementalIndenturewithoutconsentofHolders.

TheIndentureprescribesthemannerinwhichitmaybedischargedandafterwhichtheBondsshallnolongerbesecuredbyorentitledtothebenefitsoftheIndenture,exceptforthepurposesofpaymentoftheprincipalofandpremium,ifany,andinterestontheBondsasthesamebecomedueandpayable,includingaprovisionthatundercertaincircumstancestheBondsshallbedeemedtobepaidifcertainsecurities,asdefinedintheIndenture,maturingastoprincipalandinterestinsuchamountsandatsuchtimesastoensuretheavailabilityofsufficientmoneystopaytheprincipalof,premium,ifany,andinterestonsuchBondsandallnecessaryandproperfees,compensationandexpensesoftheTrusteeshallhavebeendepositedwiththeTrustee.

Norecourseshallbehadforthepaymentoftheprincipaloforpremium,ifany,andinterestonanyoftheBondsorforanyclaimbasedthereonoruponanyobligation,covenantoragreementcontainedintheIndenture,theLoanAgreement,theBondPurchaseAgreementortheTaxCertificateoragainstanypast,presentorfuturemember,officer,agentoremployeeoftheAuthority,oranyincorporator,member,officer,employee,directorortrusteeofanysuccessorcorporation,assuch,eitherdirectlyorthroughtheAuthorityoranysuccessorcorporation,underanyruleoflaworequity,statuteorconstitutionorbytheenforcementofanyassessmentorpenaltyorotherwise,andallsuchliabilityofanysuchincorporator,member,officer,employee,director,agentortrusteeassuchisherebyexpresslywaivedandreleasedasaconditionofandconsiderationfortheexecutionoftheIndentureortheLoanAgreementandtheissuanceoftheBonds.

Itisherebycertifiedthatalloftheconditions,thingsandactsrequiredtoexist,tohavehappenedandtohavebeenperformedprecedenttoandintheissuanceofthisBonddoexist,havehappenedandhavebeenperformedinduetime,formandmannerasrequiredbytheConstitutionandthestatutesoftheStateofIllinois.

ThisBondshallnotbeentitledtoanybenefitundertheIndenture,orbecomevalidorobligatoryforanypurpose,untilthecertificateofauthenticationhereonendorsedshallhavebeenmanuallysignedbytheTrustee.

INWITNESSWHEREOF,theIllinoisFinanceAuthorityhascausedthisBondtobeexecutedinitsnameandonitsbehalfbythemanualorfacsimilesignatureofitsExecutiveDirectorandbythemanualorfacsimilesignatureofitsSecretaryorAssistantSecretaryanditsfacsimilesealtobehereuntoaffixed,allasofthedateddatespecifiedabove.

By: Name: Title:

(SEAL)

ATTEST:

(Assistant)Secretary

TRUSTEE’SCERTIFICATEOFAUTHENTICATION

Dated:,.

ThisisoneoftheBondsdescribedinthewithin-mentionedIndenture.

By: Name: Title:

UnlessthiscertificateispresentedbyanauthorizedrepresentativeofTheDepositoryTrustCompany,aNewYorkcorporation(“DTC”),totheAuthorityoritsagentforregistrationoftransfer,exchange,orpayment,andanycertificateissuedisregisteredinthenameofCede&Co.orinsuchothernameasisrequestedbyanauthorizedrepresentativeofDTC(andanypaymentismadetoCede&Co.ortosuchotherentityasisrequestedbyanauthorizedrepresentativeofDTC),ANYTRANSFER,PLEDGE,OROTHERUSEHEREOFFORVALUEOROTHERWISEBYORTOANYPERSONISWRONGFULinasmuchastheregisteredownerhereofCede&Co.,hasaninterestherein.

ASSIGNMENT

Forvaluereceivedtheundersigneddo(es)herebysell,assignandtransferunto[name,addressandtaxi.d.numberoftransferee]thewithin-mentionedRegisteredBondanddo(es)herebyirrevocablyconstituteandappointattorney,totransferthesameonthebooksoftheTrusteewithfullpowerofsubstitutioninthepremises.

Dated:,Note:

Thesignature(s)tothisAssignmentmustcorrespondwiththename(s)aswrittenonthefaceofthewithinRegisteredBondineveryparticular,withoutalterationorenlargementoranychangewhatsoever.

Note:Signature(s)mustbeguaranteedbyaguarantorinstitutionparticipatingintheSecuritiesTransferAgentsMedallionProgramorinsuchotherguaranteeprogramacceptabletotheTrustee.

EXHIBIT B

FORM OF REQUISITION FROM THE COSTS OF ISSUANCE FUND

Illinois Finance AuthorityRecovery Zone Facility Refunding Revenue Bonds

(Navistar International Corporation Project)Series 2020

RequisitionNo.

Theundersigned,onbehalfofNAVISTARINTERNATIONALCORPORATION,herebyrequestspayment,fromtheCostsofIssuanceFundestablishedundertheIndenture(the“Indenture”)pursuanttowhichtheBondsidentifiedaboveareissuedandoutstanding,ofthetotalamountshownbelowtotheorderofthepayeesnamedbelow,againstwritteninvoicesfromsuchpayees,aspaymentorreimbursementforcostsincurredorexpendituresmadeinconnectionwiththeissuanceoftheBonds.Thepayeesandthepurposeandtheamountofeachdisbursementrequestedareasfollows:

PAYEE PURPOSE AMOUNT

Theundersignedherebycertifiesasfollows:

EachobligationmentionedhereinhasbeenproperlyincurredandisaproperchargeagainsttheCostsofIssuanceFund.NoneoftheitemsforwhichpaymentisrequestedhasbeenreimbursedpreviouslyfromtheCostsofIssuanceFund,andnoneofthepaymentshereinrequestedwillresultinabreachoftherepresentationsandagreementscontainedinSection2.2oftheAgreementorintheTaxCertificate.

TermswhichareusedhereinasdefinedtermsshallhavethemeaningsspecifiedintheIndenture.

Dated:,2020.

By: Name: Title:

Exhibit10.3

BONDGUARANTEE

NAVISTAR,INC.,asGuarantor

DatedasofJuly1,2020

$225,000,000IllinoisFinanceAuthority

RecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020

BOND GUARANTEE

ThisBONDGUARANTEEismadeandenteredintoasofJuly1,2020(this“BondGuarantee”),fromNAVISTAR,INC.,acorporationdulyorganizedandexistingunderthelawsoftheStateofDelaware(the“Guarantor”),toCITIBANK,N.A.,anationalbankingassociationdulyorganizedandexistingunderthelawsoftheUnitedStatesofAmericaandhavingacorporatetrustofficeinNewYork,NewYork,astrustee(the“Trustee”)undertheIndenturereferredtobelow.

W I T N E S S E T H :

WHEREAS,theIllinoisFinanceAuthority,abodypoliticandcorporatedulycreatedandvalidlyexistingundertheConstitutionandlawsoftheStateofIllinois(the“Authority”),intendstoissueitsRecoveryZoneFacilityRefundingRevenueBonds(NavistarInternationalCorporationProject)Series2020(the“Bonds”)intheaggregateprincipalamountof$225,000,000underandpursuanttoanIndenturedatedasofJuly1,2020(the“Indenture”),fromtheAuthoritytotheTrustee(alltermscapitalizedhereinandnotdefinedshallhavethemeaningsascribedtosuchtermsintheIndenture);

WHEREAS,theproceedsderivedfromtheissuanceoftheBondsaretobeused,togetherwithcertainotherfundsofNavistarInternationalCorporation(the“Company”),torefund(i)$135,000,000inaggregateprincipalamountofIllinoisFinanceAuthorityRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010(the“IFA2010Bonds”)and(ii)$90,000,000inaggregateprincipalamountofTheCountyofCook,IllinoisRecoveryZoneFacilityRevenueBonds(NavistarInternationalCorporationProject)Series2010(the“CookCounty2010Bonds”);

WHEREAS,theproceedsoftheIFA2010BondsandtheCookCounty2010Bondswereusedtopaycertaincostsofacquiring,constructing,installing,improving,expandingandequippingcertainfacilitiesandothercapitalimprovementsusedbytheCompanyorbytheGuarantor,asubsidiaryoftheCompany;

WHEREAS,theCompanywillmakepaymentsundertheLoanAgreementdatedasofJuly1,2020(the“LoanAgreement”),betweentheAuthorityandtheCompany,sufficienttopaywhendue(whetheratstatedmaturity,uponredemption,byaccelerationorotherwise)theprincipalandPurchasePrice(asdefinedintheIndenture)of,premium,ifany,andinterestontheBonds;and

WHEREAS,theGuarantordesiresthattheAuthorityissuetheBondsandapplytheproceedsasaforesaidandiswillingtoenterintothisBondGuaranteeinordertoenhancethemarketabilityoftheBondsandtherebyachieveinterestcostandothersavingsfortheCompany,andinordertoprovideaninducementtothepurchaseoftheBondsbyallwhoshallatanytimebecometheregisteredownersoftheBonds(collectively,the“Bondholders”orthe“Holders”);

NOW,THEREFORE,inconsiderationofthepremises,andforothergoodandvaluableconsideration,thereceiptofwhichisherebyacknowledged,theGuarantordoesherebyrepresent,warrant,covenantandagreewiththeTrusteeforthebenefitoftheBondholdersasfollows:

ARTICLE I

DEFINITIONS; REPRESENTATIONS AND WARRANTIES OF GUARANTOR

Section 1.1.Definitions.ThecapitalizedtermsusedinthisBondGuarantee,unlessthecontextrequiresotherwiseorunlessotherwisedefinedherein,shallhavethesamemeaningsassetforthintheIndenture.

Section 1.2.Guarantor Representations and Warranties.TheGuarantorrepresents,warrantsandcovenantsasfollows:

(a)TheGuarantorisdulyincorporatedunderthelawsoftheStateofDelaware,isingoodstandingintheStateofDelawareandtheStateofIllinoisandisdulyauthorizedtoconductitsbusinessintheStateofIllinois.TheGuarantorhasallauthorityunderthelawsoftheStateofDelaware,theStateofIllinoisanditsArticlesofIncorporationtoenterinto,execute,deliverandperformthisBondGuarantee,andallactiononitspartnecessaryforthevalidexecutionanddeliveryofthisBondGuaranteehasbeendulyandeffectivelytaken,andthisBondGuaranteeisthelegal,validandbindingobligationoftheGuarantorenforceableinaccordancewithitsterms,subjecttoanyapplicablebankruptcy,reorganization,insolvency,moratoriumorotherlawsaffectingtheenforcementofcreditors’rightsgenerallyfromtimetotimeineffect,andtoapplicableequitableprinciples.

(b)TheexecutionanddeliveryofthisBondGuaranteehasbeendulyauthorizedbyallnecessaryaction,andtheGuarantor’sexecutionanddeliveryofthisBondGuarantee,theGuarantor’sconsummationofthetransactionscontemplatedonitspartthereby,andtheGuarantor’sfulfillmentoforcompliancewiththetermsandconditionsofthisBondGuarantee,donotconflictwithorresultinamaterialbreachoftheArticlesofIncorporation,oranymaterialagreementorinstrumenttowhichtheGuarantorisnowapartyorbywhichtheGuarantorisbound(exceptforanysuchbreachesforwhichtheGuarantorhasobtainedawaiverorarequiredconsent),orconstitutesamaterialdefault(orwouldconstituteamaterialdefaultwithduenoticeorthepassageoftimeorboth)underanyoftheforegoing.

(c)AllordersandapprovalshavebeenreceivedandwillbeineffectpriortotheDateofDeliveryoftheBonds,and,nofurtherconsent,approval,authorizationororderof,orregistrationwith,anycourtorgovernmentalorregulatoryagencyorbodyisrequiredwithrespecttotheGuarantorfortheexecution,deliveryandperformancebytheGuarantorofthisBondGuarantee.

(d)Nolitigation,proceedingsorinvestigationsarependingor,totheknowledgeoftheGuarantor,threatenedagainsttheGuarantorseekingtorestrain,enjoin

orinanywaylimittheapprovalortheexecutionanddeliveryofthisBondGuarantee,orwhichwouldinanymannerchallengeoradverselyaffectthecorporateexistence,powerandauthorityoftheGuarantortoenterintoandcarryoutthetransactionsdescribedinorcontemplatedby,ortheexecution,delivery,validityorperformancebytheGuarantorof,thisBondGuarantee.Inaddition,exceptasdescribedintheLimitedOfferingMemorandum(includingalldocumentsincorporatedbyreferencetherein),nolitigation,proceedingsorinvestigationsarependingor,totheknowledgeoftheGuarantor,threatenedinwritingagainsttheGuarantor,exceptlitigation,proceedingsorinvestigationsinvolvingclaimsforwhichtheprobableultimaterecoveriesandtheestimatedcostsandexpensesofdefense,intheopinionoftheGuarantor,(i)willbeentirelywithintheapplicableinsurancepolicylimits(subjecttoapplicabledeductibles)orarenotinexcessofthetotaloftheavailableassetsheldunderapplicableself-insuranceprogramsor(ii)willnothaveamaterialadverseeffectontheoperationsorcondition,financialorotherwise,oftheGuarantor.

(e)TheGuarantorisnotindefaultunderanylaw,rule,regulation,order,writ,judgment,injunction,decree,determinationorawardoranyindenture,agreement,leaseorinstrumentwhichcouldreasonablybeexpectedtohaveamaterialadverseeffectonthecondition(financialorotherwise),resultsofoperations,businessorpropertiesoftheGuarantor.

ConcurrentlywiththeDateofDeliveryoftheBonds,theGuarantorshallexecuteanddeliveracertificatereaffirmingtheforegoingrepresentationsandwarrantiesasoftheDateofDelivery.

ARTICLE II

COVENANTS AND AGREEMENTS

Section 2.1.Obligations Guaranteed.(a)TheGuarantorherebyunconditionallyguaranteestotheTrusteeforthebenefitoftheBondholders(i)thedueandpunctualpaymentoftheprincipalofandpremium,ifany,ontheBondswhenandasthesameshallbecomedueandpayableasprovidedintheIndenture,whetheratthestatedmaturitythereof,bydeclarationofacceleration,callforredemptionorotherwise,and(ii)thedueandpunctualpaymentofinterestontheBonds,and,totheextentpermittedbylaw,interestonoverdueinterestandpremium,whenandasthesameshallbecomedueandpayableasprovidedintheIndenture,(iii)thedueandpunctualpaymentofthePurchasePriceoftheBondswhenandasthesameshallbecomedueandpayableasprovidedintheIndenture,and(iv)thedueperformanceandcompliancebytheCompanywithalloftheterms,conditionsandagreementscontainedintheLoanAgreement(including,withoutlimitation,itsobligationtoindemnifyandreimbursetheTrusteepursuanttothetermsthereof).AllpaymentsbytheGuarantorhereundershallbepaidinlawfulmoneyoftheUnitedStatesofAmerica.EachandeverydefaultinpaymentoftheprincipalorPurchasePriceof,premium,ifany,orinterestonanyBond,orinterestonoverdueinterestorpremium,shallgiverisetoaseparatecauseofactionhereunder,andseparatesuitsmaybebroughthereunderaseachcauseofactionarises.

(b)TheGuarantorherebyagreesthatitsobligationsunderthisBondGuaranteeshallbeguaranteesofpaymentandshallbeunconditional,irrespectiveofandunaffectedbythevalidity,regularityorenforceabilityoftheBonds,theLoanAgreement,theIndentureorthisBondGuarantee,orofanyamendmenttheretoorhereto,theabsenceofanyactiontoenforcethesame,thewaiverorconsentbyanyHolderorbytheTrusteewithrespecttoanyprovisionsthereoforofthisBondGuarantee,theentryofanyjudgmentagainsttheCompany,theGuarantororanyotherSubsidiaryGuarantororanyactiontoenforcethesameoranyothercircumstancewhichmightotherwiseconstitutealegalorequitabledischargeordefenseoftheGuarantor.

Section 2.2.Guarantor’s Waiver.(a)TheGuarantorherebywaivesdiligence,presentment,demandofpayment,filingofclaimswithacourtintheeventofmerger,insolvencyorbankruptcyoftheCompanyortheAuthority,anyrighttorequireaproceedingfirstagainsttheCompany,protestornoticewithrespecttotheBondsortheindebtednessevidencedtherebyandalldemandswhatsoever,andcovenantsthattheBondGuaranteewillnotbedischargedexceptbycompleteperformanceoftheobligationscontainedintheBonds,theIndentureandtheLoanAgreement,orasotherwisespecificallyprovidedthereinandherein.

(b)TheGuarantorherebywaivesandrelinquishes:

(i)anyrighttorequiretheTrustee,theAuthority,theHoldersortheCompany(each,a“BenefitedParty”)toproceedagainsttheCompany,theSubsidiariesoftheCompanyoranyotherPersonortoproceedagainstorexhaustanysecurityheldbyaBenefitedPartyatanytimeortopursueanyotherremedyinanysecuredparty’spowerbeforeproceedingagainsttheGuarantor;

(ii)anydefensethatmayarisebyreasonoftheincapacity,lackofauthority,deathordisabilityofanyotherPersonorPersonsorthefailureofaBenefitedPartytofileorenforceaclaimagainsttheestate(inadministration,bankruptcyoranyotherproceeding)ofanyotherPersonorPersons;

(iii)demand,protestandnoticeofanykind(exceptasexpresslyrequiredbythisBondGuarantee),includingbutnotlimitedtonoticeoftheexistence,creationorincurringofanyneworadditionalindebtednessorobligationorofanyactionornon-actiononthepartoftheGuarantor,theCompany,theSubsidiariesoftheCompany,anyBenefitedParty,anycreditoroftheGuarantor,theCompanyortheSubsidiariesoftheCompanyoronthepartofanyotherPersonwhomsoeverinconnectionwithanyobligationstheperformanceofwhichareherebyguaranteed;

(iv)anydefensebaseduponanelectionofremediesbyaBenefitedParty,includingbutnotlimitedtoanelectiontoproceedagainsttheGuarantorforreimbursement;

(v)anydefensebaseduponanystatuteorruleoflawwhichprovidesthattheobligationofasuretymustbeneitherlargerinamountnorinotherrespectsmoreburdensomethanthatoftheprincipal;

(vi)anydefensearisingbecauseofaBenefitedParty’selection,inanyproceedinginstitutedundertheBankruptcyLaw,oftheapplicationofSection1111(b)(2)oftheBankruptcyLaw;and

(vii)anydefensebasedonanyborrowingorgrantofasecurityinterestunderSection364oftheBankruptcyLaw.

(c)TheGuarantorfurtheragreesthat,asbetweentheGuarantor,ontheonehand,andHoldersandtheTrustee,ontheotherhand,(i)forpurposesofthisBondGuarantee,thematurityoftheBondsmaybeacceleratedasprovidedinSection7.02oftheIndenture,notwithstandinganystay,injunctionorotherprohibitionpreventingsuchaccelerationinrespectoftheBonds,and(ii)intheeventofanyaccelerationoftheBonds(whetherornotdueandpayable)theBondsshallforthwithbecomedueandpayablebytheGuarantorforpurposesofthisBondGuarantee.

(d)ThisBondGuaranteeshallcontinuetobeeffectiveorshallbereinstated,asthecasemaybe,ifatanytimeanypayment,oranypartthereof,ofprincipalorPurchasePriceof,premium,ifany,orinterestonanyoftheBondsisrescindedormustotherwisebereturnedbytheHoldersortheTrusteeupontheinsolvency,bankruptcyorreorganizationoftheAuthority,theCompanyortheGuarantor,allasthoughsuchpaymenthadnotbeenmade.

(e)TheGuarantorshallbesubrogatedtoallrightsoftheHoldersagainsttheCompanyinrespectofanyamountspaidbytheGuarantorpursuanttotheprovisionsofthisBondGuaranteeortheLoanAgreement;provided, however,thattheGuarantorshallnotbeentitledtoenforceortoreceiveanypaymentsuntiltheprincipalof,premium,ifany,andinterestonallBondsshallhavebeenpaidinfull.

Section 2.3.Limitation on Guarantor’s Liability.TheGuarantorandbyitsacceptancehereoftheTrusteeandeachHolder,herebyconfirmsthatitistheintentionofallsuchpartiesthatthisBondGuaranteebytheGuarantornotconstituteafraudulenttransferorconveyanceforpurposesoftheBankruptcyLaw,theUniformFraudulentConveyanceAct,theUniformFraudulentTransferActoranysimilarfederalorstatelaw.Toeffectuatetheforegoingintention,theTrustee,theHoldersandtheGuarantorherebyirrevocablyagreethattheobligationsoftheGuarantorunderthisBondGuaranteeshallbelimitedtothemaximumamountaswill,aftergivingeffecttoallothercontingentandfixedliabilitiesoftheGuarantorandaftergivingeffecttoanycollectionsfromorpaymentsmadebyoronbehalfofanyotherSubsidiaryGuarantorinrespectoftheobligationsofsuchotherSubsidiaryGuarantorunderitsSubsidiaryBondGuarantyexecutedanddeliveredpursuanttoSection5.10(b)oftheLoanAgreement,resultintheobligationsoftheGuarantorunderthisBondGuaranteenotconstitutingafraudulenttransferorconveyanceunderapplicablefederalorstatelaw.

Section 2.4.Releases of Bond Guarantee.ThisBondGuaranteewillbeautomaticallyandunconditionallyreleased(andthereuponshallterminateandbedischargedandbeofnofurtherforceandeffect):

(1)uponalegaldefeasanceorsatisfactionanddischargeoftheIndenturethatcomplieswiththeprovisionsofArticleXoftheIndenture;or

(2)uponpaymentinfulloftheaggregateprincipalamountofallBondsthenoutstandingandallotherfinancialobligationsundertheLoanAgreement,theIndentureandtheBondsthendueandowing.

UponanyoccurrencegivingrisetoareleaseofthisBondGuaranteeasspecifiedabove,anduponreceiptofrequestofanAuthorizedRepresentativeoftheCompanyandanyothercertificatesoropinionsrequiredundertheIndenture,theTrusteewillexecuteanydocumentsreasonablyrequiredinordertoevidenceoreffectsuchrelease,dischargeandterminationinrespectofthisBondGuarantee,withcopiestotheAuthority.NoneoftheAuthority,theCompanyortheGuarantorwillberequiredtomakeanotationontheBondstoreflectanysuchrelease,terminationordischarge.

Section 2.5.Application of Certain Terms and Provisions of the Loan Agreement and Indenture to the Guarantor.(a)ForpurposesofanyprovisionoftheLoanAgreementortheIndenturewhichprovidesforthedeliverybyanySubsidiaryGuarantorofacertificateofanAuthorizedRepresentativeoranOpinionofCounselorboth,thedefinitionsofsuchtermsinSection1.01oftheIndentureshallapplytotheGuarantorasifreferencesthereintotheCompanywerereferencestotheGuarantor.

(b)Anyrequest,direction,orderordemandwhichbyanyprovisionoftheLoanAgreementortheIndentureistobemadebytheGuarantorshallbesufficientifevidencedbyacertificateofanAuthorizedRepresentativeoftheGuarantor;providedthatthedefinitionofsuchterminSection1.01oftheIndentureshallapplytotheGuarantorasifreferencesthereintotheCompanywerereferencestotheGuarantor.

(c)AnynoticeordemandwhichbyanyprovisionoftheLoanAgreementortheIndentureisrequiredorpermittedtobegivenorservedbytheTrusteeorbytheHoldersofBondstoorontheGuarantormaybegivenorservedasdescribedinSection11.08oftheIndenture.

(d)Uponanydemand,requestorapplicationbytheGuarantortotheTrusteetotakeanyactionundertheLoanAgreementortheIndenture,theGuarantorshallfurnishtotheTrusteesuchcertificatesandopinionsasarerequiredintheLoanAgreementortheIndentureasifallreferencesthereintotheCompanywerereferencestotheGuarantor.

Section 2.6.No Waiver or Set-Off.NoactofcommissionoromissionofanykindoratanytimeonthepartoftheAuthorityortheTrustee,ortheirsuccessorsandassigns,inrespectofanymatterwhatsoevershallinanywayimpairtherightsoftheTrusteetoenforceanyright,powerorbenefitunderthisBondGuarantee,andnoset-off,counterclaim,reduction,ordiminutionofanyobligation,oranydefenseofanykindornature(otherthanperformancebytheGuarantorofitsobligationshereunder),whichtheGuarantorhasormayhaveagainsttheAuthorityortheTrusteeoranyassigneeorsuccessorthereofshallbeavailablehereundertotheGuarantor.

Section 2.7.Events of Default.(a)An“EventofDefault”shallexistifanyofthefollowingoccursandiscontinuing:

(i)theGuarantordefaultsinanyguaranteereferredtoinSection2.1hereofandinanycasesuchdefaultcontinuesforfiveBusinessDaysfromthedatesuchpaymentwasdue;

(ii)theGuarantorfailstoobserveandperformanycovenant,conditionoragreement(otherthansuchreferredtoinSection2.7(a)(i)hereof)ofthisBondGuaranteeandsuchfailurecontinuesformorethan60daysafterwrittennotice(whichshallbedeemedgivenuponreceiptofregisteredorcertifiedmailing)ofsuchfailurehasbeengiventotheGuarantorbytheTrustee;

(iii)anywarranty,representationorotherstatementbytheGuarantorcontainedinthisBondGuaranteeisfalseormisleadinginanymaterialrespectasofthedatemade;or

(iv)theoccurrenceofan“ActofBankruptcy,”providedthatwithrespecttothefilingofaninvoluntarypetitioninbankruptcyorothercommencementofabankruptcyorsimilarproceedingagainsttheGuarantor,suchpetitionorproceedingshallremainundismissedfor90days.ForpurposesofthisSection2.7,“ActofBankruptcy”shallmeanthecommencementofabankruptcyorsimilarproceedingbyoragainsttheGuarantor,asdebtor,including,butnotlimitedto,thefollowing:makingageneralassignmentforthebenefitofcreditors,thecommencingofavoluntarycaseundertheFederalBankruptcyCodeorthefilingofapetitionthereunder,petitioningorapplyingtoanytribunalfortheappointmentofareceiveroranytrusteefortheGuarantororasubstantialpartoftheassetsoftheGuarantor,commencinganyproceedingunderanybankruptcy,reorganization,arrangement,readjustmentofdebt,dissolutionorliquidationlaworstatuteofanyjurisdiction,whethernoworhereafterineffect,ortheappointmentofareceiveroranytrusteefortheGuarantororanysubstantialpartofanyofthepropertiesoftheGuarantor.

(b)UponanEventofDefaulthereunderorundertheIndentureand/ortheLoanAgreement,theTrusteeshallhavetherighttoproceedfirstanddirectlyagainsttheGuarantorunderthisBondGuaranteewithoutresortingtoanysecurityheldbytheAuthorityortheTrusteeundertheIndenture.

(c)AllmoneysreceivedbytheTrusteepursuanttoanyrightgivenoractiontakenundertheprovisionsofthisBondGuaranteeshall,afterpaymentofthecostandexpensesoftheproceedingsresultinginthecollectionofsuchmoneysandoftheexpenses,liabilitiesandadvancesincurredormadebytheTrustee,bedepositedintheRevenueFundforthebenefitoftheBondholdersandsuchmoneysshallbeappliedinaccordancewiththetermsoftheIndenture.

(d)TheTrusteeshallbeundernoobligationtoinstituteanysuitortotakeanyremedialactionunderthisBondGuarantee,ortoenteranyappearanceorinanywaydefendinanysuitinwhichitmaybemadedefendant,ortotakeanystepsintheenforcementofanyrightsandpowersunderthisBondGuaranteeuponanydefault,untilitshallbeindemnifiedand/orprovidedwithsecuritytoitssatisfactionbytheBondholdersagainstanyandallliability(including,withoutlimitation,reasonablecompensationforservices,costsandexpenses,outlays,andcounselfeesandexpensesandotherdisbursements)notduetoitsnegligenceorwillfulmisconduct.

Section 2.8.Waiver of Notice; Expenses.TheGuarantorherebyexpresslywaivesnoticefromtheTrusteeortheBondholdersoftheiracceptanceandrelianceonthisBondGuarantee.TheGuarantoragreestopayallcosts,expensesandfees,includingallreasonableattorneys’feesandexpenses,whichmaybeincurredbytheTrusteeinenforcingorattemptingtoenforcethisBondGuaranteeorprotectingtherightsoftheTrusteeortheBondholdersfollowinganydefaultonthepartoftheGuarantorhereunder,whetherthesameshallbeenforcedbysuitorotherwise.

Section 2.9.Assignment; Dissolution or Merger of the Guarantor.(i)TheGuarantormayassignthisBondGuaranteetoanyPerson.ExceptinconnectionwiththereleaseofthisBondGuaranteepursuanttoSection2.4hereof,orexceptasprovidedinparagraph(ii)below,noassignmentpursuanttotheprecedingsentenceshallreleasetheGuarantorfromanyofitsobligationshereunderunless100%ofholdersoftheOutstandingBondsshallhaveprovidedtheirwrittenconsenttosuchreleasetotheTrustee.

(ii)ExceptinconnectionwiththereleaseofthisBondGuaranteepursuanttoSection2.4hereof,theGuarantoragreesthatduringthetermhereofitwillnotdissolveorotherwisedisposeofallorsubstantiallyallofitsassetsandwillnotconsolidatewithormergeintoanotherentityunlessthesurvivingentityortransferee,asapplicable,isasolventcorporationorotherentityand,concurrentlywithsuchtransaction,irrevocablyandunconditionallyassumesinwriting,bymeansofaninstrumentwhichisdeliveredtotheAuthorityandtheTrustee,alloftheobligationsoftheGuarantorherein(unlesstheGuarantoristhesurvivor,inwhichcasenosuchwrittenassumptionshallberequired).Uponanydissolution,disposition,mergerorconsolidationinaccordancewiththeprecedingsentence,thesuccessorentityformedbysuchconsolidationorintowhichtheGuarantorismergedortowhichsuchdispositionismadeshallsucceedto,andbesubstitutedfor,andshallexerciseeveryrightandpowerof,theGuarantorunderthisBondGuaranteewiththesameeffectasifsuchsuccessorentityhadbeennamedastheGuarantorherein,.UponanydissolutionordispositioninaccordancewiththenextprecedingsentencewheretheGuarantorisnotthesurvivingentity,theGuarantorshallautomaticallybereleasedfromallofitsobligationshereunder.

Section 2.10.Benefit and Enforcement.ThisBondGuaranteeshallnotbedeemedtocreateanyright,ortobeinwholeorinpartforthebenefitofanypersonotherthantheTrustee,theGuarantor,theBondholders,andtheirpermittedsuccessorsandassigns.ThisBondGuaranteeisenteredintobytheGuarantorforthebenefitoftheTrustee,theregisteredownersfromtimetotimeoftheBondsandanysuccessorTrusteeorTrusteesundertheIndentureandmaybeenforcedbyoronbehalfoftheregisteredownersoftheBondsonlybytheTrusteebysuchactions,suitsandproceedings,atlaworinequity,asitmaybeadvisedshallbenecessaryorexpedienttopreserveandprotectitsinterestandtheinterestsoftheBondholdershereunder.However,theTrusteeshallproceedtoenforcethisBondGuaranteeuponwrittenrequestoftheregisteredownersofnotlessthan25%inaggregateprincipalamountoftheBondsthenOutstandinganduponbeingindemnifiedand/orprovidedwithsecurityforitsexpensesandanyliabilitytobeincurredbytheTrusteeotherthanliabilityarisingfromitswillfulmisconductorgrossnegligenceinconnectionwithanyactionsotaken(asdeterminedinafinalnon-appealabledecisionbyacourtofcompetentjurisdiction).TheTrusteeshallhavealloftherights,benefits,protections,privileges,indemnities,powersandimmunitiesaffordedtoitundertheIndentureandtheLoanAgreementinacceptingandinactingasTrusteeunderthisBondGuarantee.

ARTICLE III

MISCELLANEOUS

Section 3.1.Effective Date; Termination.TheobligationsoftheGuarantorhereundershallariseabsolutelyandunconditionallyupontheDateofDeliveryoftheBonds.ThisBondGuaranteeshallterminateassetforthinSection2.4hereof.

Section 3.2.Remedies Not Exclusive.NoremedyhereinconferreduponorreservedtotheTrusteeisintendedtobeexclusiveofanyotheravailableremedyorremedies,buteachandeveryremedyshallbecumulativeandshallbeinadditiontoeveryotherremedygivenunderthisBondGuaranteeornoworhereafterexistingatlaworinequity.Nodelayoromissiontoexerciseanyrightorpoweraccruinguponanydefault,omissionorfailureofperformancehereundershallimpairanysuchrightorpowerorshallbeconstruedtobeawaiverthereof,butanysuchrightandpowermaybeexercisedfromtimetotimeandasoftenasmaybedeemedexpedient.InordertoentitletheTrusteetoexerciseanyremedyreservedtoitinthisBondGuarantee,itshallnotbenecessarytogiveanynotice.IntheeventanyprovisioncontainedinthisBondGuaranteeshouldbebreached,andthereafterdulywaived,suchwaivershallbelimitedtotheparticularbreachsowaivedandshallnotbedeemedtowaiveanyotherbreachhereunder.Nowaiver,amendment,releaseormodificationofthisBondGuaranteeshallbeestablishedbyconduct,customorcourseofdealing,butsolelybyaninstrumentinwritingdulyexecutedbythepartiestothisBondGuarantee.

Section 3.3.Amendments.(a)TheTrustee,withouttheconsentofornoticetoanyoftheBondholders,mayenterintoanyamendment,changeormodificationofthisBondGuaranteeasmayberequired(i)bytheprovisionsofthisBondGuarantee,theLoanAgreementortheIndenture,(ii)forthepurposeofcuringanyambiguity,formaldefectorformalomission,or(iii)soastoaddadditionalrightsacquiredinaccordancewiththeprovisionsoftheLoanAgreementorthisBondGuarantee,asthecasemaybe;providedthatnosuchactionpursuanttoclause(ii)aboveistothematerialprejudiceoftheHoldersoftheBonds.

(b)Exceptinthecaseofmodifications,alterations,amendmentsorsupplementsreferredtoinSection3.3(a)hereof,theTrusteeshallnotconsentto,anyamendment,alteration,supplementormodificationofthisBondGuaranteewithoutthewrittenapprovalorconsentoftheHoldersofatleastamajorityinaggregateprincipalamountoftheBondsthenOutstandinggivenandprocuredinthesamemannerasprovidedinSection9.01oftheIndenturewithrespecttoSupplementalIndentures;provided, however, that,unlessapprovedinwritingbytheHoldersofallBondsaffectedthereby,nothinghereincontainedshallpermit,orbeconstruedaspermitting,achangeintheobligationsoftheGuarantorunderSection2.1ofthisBondGuarantee.

BeforetheTrusteeshallconsentto,anymodification,alteration,amendmentorsupplementtotheBondGuaranteepursuanttothisSection3.3,thereshallhavebeendeliveredtotheAuthority

andtheTrustee(i)anApprovingOpinionand/orOpinionofCounselwithrespecttosuchmodification,alteration,amendmentorsupplementandfurtherstatingthatsuchmodification,alteration,amendmentorsupplementisauthorizedorpermittedbytheBondGuaranteeortheIndentureand(ii)anopinionofcounseltotheGuarantortotheeffectthatsuchmodification,alteration,amendmentorsupplementwill,uponexecutionanddeliverythereof,bevalidandbindingupontheGuarantorinaccordancewithitsterms.TheTrusteewillnotbeobligatedtoenterintoanysuchmodification,alteration,amendmentorsupplementtotheBondGuaranteethatwouldmateriallyalteritsrights,benefits,protections,privileges,indemnities,powersandimmunitiesundertheIndenture,theLoanAgreementorthisBondGuarantee.

Section 3.4.Entire Agreement; Counterparts.ThisBondGuaranteeconstitutestheentireagreement,andsupersedesallprioragreementsandunderstandings,bothwrittenandoral,betweenthepartieswithrespecttothesubjectmatterhereofandmaybeexecutedsimultaneouslyinseveralcounterparts,eachofwhichshallbedeemedanoriginal,andallofwhichtogethershallconstituteoneandthesameinstrument.

Section 3.5.Severability.Theinvalidityorunenforceabilityofanyoneormorephrases,sentences,clausesorsectionscontainedinthisBondGuaranteeshallnotaffectthevalidityorenforceabilityoftheremainingportionsofthisBondGuarantee,oranypartthereof.

SECTION 3.6. GOVERNING LAW. THIS BOND GUARANTEE SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUEDIN ACCORDANCE WITH, THE LAW OF THE STATE OF ILLINOIS. NOTHING CONTAINED IN THIS SECTION 3.6 SHALL AFFECTTHE RIGHT OF ANY PARTY TO COMMENCE ANY ACTION, SUIT OR PROCEEDING IN CONNECTION WITH ANY CONTROVERSYOR CLAIM ARISING OUT OF OR RELATING TO THIS BOND GUARANTEE OR ANY ALLEGED BREACH HEREOF IN ANY COURTOF COMPETENT JURISDICTION.

[REMAINDEROFPAGEINTENTIONALLYLEFTBLANK;SIGNATUREPAGEFOLLOWS]

INWITNESSWHEREOF,thepartiesheretohavecausedthisBondGuaranteetobeexecutedintheirnamesandontheirbehalfbytheirrespectivedulyauthorizedofficersasofthedatefirstabovewritten.

NAVISTAR,INC.,asGuarantor

By: /s/ Anthony A. AielloName:AnthonyA.AielloTitle:VicePresidentandAssistantTreasurer

By: /s/ Paolo IppolitoName:PaoloIppolitoTitle:SeniorTrustOfficer

[SIGNATUREPAGETOBONDGUARANTEE]

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