|                                             |
|---------------------------------------------|
|                                             |  |  |
| Filed by the Registrant:                    |   | X |
|                                        |   |   |
| Filed by a Party other than the Registrant: |   | ____ |
|                                        |   |   |
| Check the appropriate box:                  |   |   |

|         |
|---------|
|         |  |  |
| _______ |    | Preliminary Proxy Statement |
|    |   |
| _______ |    | Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2)) |
|    |   |
| X       |    | Definitive Proxy Statement |
|    |   |
| _______ |    | Definitive Additional Materials |
|    |   |
| _______ |    | Soliciting Material Pursuant to §240.14a-12 |

|        |
|--------|
|        |  |
|   | Navistar International Corporation |
|   |   |
|   | (Name of Registrant as Specified In Its Charter) |
|   |   |
|   | (Name of Person(s) Filing Proxy Statement, if other than the Registrant) |

|         |
|---------|
|         |  |  |
| X       |    |   |
| _______ |    | No fee required. |
|    |    |   |
| _______ |    | Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11. |
|    |   |
|    |    | (1)    Title of each class of securities to which transaction applies: |
|    |    | (2)    Aggregate number of securities to which transaction applies: |
|    |    | (3)    Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined): |
|    |    | (4)    Proposed maximum aggregate value of transaction: |
|    |    | (5)    Total fee paid: |
|    |   |   |
| _______ |    | Fee paid previously with preliminary materials. |
|    |   |
| _______ |    | Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the Form or Schedule and the date of its filing. |
|    |   |
|    |    | (1)    Amount Previously Paid: |
|    |    | (2)    Form, Schedule or Registration Statement No.: |
|    |    | (3)    Filing Party: |
|    |    | (4)    Date Filed: |

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|        |
|--------|
|        |  |  |
|   | l | Elect as directors the nominees named in the accompanying proxy statement; |
|   |   |   |
|   | l | Ratify the appointment of our independent registered public accounting firm; |
|   |   |   |
|   | l | Act on an advisory vote on executive compensation as disclosed in this proxy statement; |
|   |   |   |
|   | l | Consider a stockholder proposal; and |
|   |   |   |
|   | l | Act upon any other matters properly brought before the annual meeting. |

|        |
|--------|
|        |  |
|   | By Order of the Board of Directors, |
|   |  |
|   | Curt A. KramerSecretary |

----

|                                                                                  |
|----------------------------------------------------------------------------------|
|                                                                                  |  |
| EXECUTIVE SUMMARY                                                                | 2 |
| FREQUENTLY ASKED QUESTIONS REGARDING ATTENDANCE AND VOTING                       | 5 |
| PROPOSAL 1 – ELECTION OF DIRECTORS                                         | 10 |
| CORPORATE GOVERNANCE                                                             | 16 |
| CORPORATE GOVERNANCE GUIDELINES                                                  | 16 |
| RELATED PARTY TRANSACTIONS AND APPROVAL POLICY                                   | 16 |
| DIRECTOR INDEPENDENCE DETERMINATIONS                                             | 17 |
| BOARD LEADERSHIP STRUCTURE                                                       | 18 |
| RISK OVERSIGHT                                                                   | 18 |
| NOMINATING DIRECTORS                                                             | 18 |
| BOARD COMMITTEES AND MEETINGS                                                    | 20 |
| COMMUNICATION WITH THE BOARD                                                     | 21 |
| CODE OF CONDUCT                                                                  | 22 |
| AUDIT COMMITTEE REPORT                                                           | 23 |
| PERSONS OWNING MORE THAN FIVE PERCENT OF NAVISTAR COMMON STOCK                   | 24 |
| NAVISTAR COMMON STOCK OWNED BY EXECUTIVE OFFICERS AND DIRECTORS                  | 26 |
| COMPENSATION                                                                     | 28 |
| COMPENSATION COMMITTEE REPORT                                                    | 28 |
| COMPENSATION DISCUSSION AND ANALYSIS                                             | 28 |
| Executive Summary                                                                | 29 |
| Detailed Review of Executive Compensation                                        | 30 |
| EXECUTIVE COMPENSATION TABLES                                                    | 43 |
| COMPENSATION RISK                                                                | 62 |
| COMPENSATION OF DIRECTORS                                                        | 63 |
| EQUITY COMPENSATION PLAN INFORMATION                                             | 66 |
| PROPOSAL 2 – RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 68 |
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FEE INFORMATION                    | 69 |
| PROPOSAL 3 – ADVISORY VOTE ON EXECUTIVE COMPENSATION                       | 70 |
| PROPOSAL 4 - STOCKHOLDER PROPOSAL                                                | 71 |
| OTHER MATTERS                                                                    | 72 |
| Section 16(a) Beneficial Ownership Reporting Compliance                     | 72 |
| Availability of Form 10-K and Annual Report to Stockholders                      | 72 |
| Matters Raised at the Meeting not Included in this Proxy Statement               | 72 |
| ADMISSION AND TICKET REQUEST PROCEDURE                                           | 73 |
| APPENDIX A - AON HEWITT'S 2013 TCM SURVEY                                        | C-1 |

----

|                   |
|-------------------|
|                   |
| EXECUTIVE SUMMARY |

|         |                                                                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Improved quality - We moved with urgency to address quality issues in our existing product portfolio, as well as implemented new quality controls and testing systems.  For example, during fiscal 2013, we logged nearly four million test miles on the International® ProStar® trucks powered by our Certified MaxxForce 13L engine (defined below). |

|         |                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Hit our launches - We achieved several milestones, which include achieving U.S. Environmental Protection Agency ("EPA") certification using an existing Selective Catalytic Reduction ("SCR") technology, getting to market products that incorporate existing SCR technology while expanding our engine options, and revamping our heavy-duty truck portfolio.  Specific examples include: |

|         |                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | We met our first major engine strategy milestone with the launch of certain Class 8 truck models featuring the Cummins ISX15 engine with the Cummins SCR after-treatment system in December 2012. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | In April, we met another major engine strategy milestone with the receipt of EPA certification of our MaxxForce 13L Big-Bore engines incorporating the Cummins SCR after-treatment system (the “Certified MaxxForce 13L engine”).  Later in that same month, we began shipping our International® ProStar® trucks powered by our Certified MaxxForce 13L engine.  Also in April, we received on-board diagnostic ("OBD") certification for all current applications. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Deliver on our 2013 plan - We demonstrated discipline with regard to the cash of our manufacturing operations, where we met our guidance each quarter of fiscal 2013.  We made tough decisions to reduce operating costs and made good progress on our benchmarking study and a Return on Invested Capital ("ROIC") evaluation initiative.  We changed our leadership, which resulted in blending a combination our internal expertise with an outside perspective. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Throughout fiscal 2013, we initiated various cost-reduction actions that were identified by our benchmarking study.  Specifically in September 2013, we leveraged efficiencies identified through redesigning our organizational structure and began implementing new cost-reduction initiatives, including an enterprise-wide reduction-in-force, which we expect will contribute an estimated $50 million to $60 million of annual savings beginning in fiscal 2014. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | The ROIC evaluation initiative drove the discussions to divest: (i) our interests in Mahindra Navistar Automotives Ltd. and Mahindra-Navistar Engines Private Ltd. (collectively, the "Mahindra Joint Ventures") in February, (ii) the Workhorse Custom Chassis ("WCC") business in March, (iii) substantially all of our interest in certain operations of the Monaco RV business in May, and (iv) the Bison Coach trailer manufacturing business ("Bison Coach") in October.  We also entered into an agreement to sublease a portion of our manufacturing facility in Cherokee, Alabama.  Additionally, we began rationalizing certain engineering and product development programs, due in part to changes in our engine strategy and renewed focus on our core business of the North American truck and bus markets. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Built sales momentum - We have seen a strong response in our traditional markets as evidenced by our backlog of unfilled truck orders increase of 26% for October 31, 2013, as compared to October 31, 2012.  We have seen an increase in our order share in the second half of fiscal 2013 compared to the first half of the year.  We believe this momentum will continue to be fueled by offering the Cummins ISB 6.7 liter engine (the “Cummins ISB”) in our International® DuraStar® medium-duty trucks and IC Bus™ CE Series school buses.  Initial production of DuraStar® and CE Series school buses, incorporating the Cummins ISB, is expected to begin during our first quarter of fiscal 2014. |

----

|         |                                                                                                                                                                                                                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Lead in vehicle uptime - Quality remains at the forefront of our customer-focused approach.  We believe our quality will continue to improve and our trucks will be market leaders in uptime and fuel economy with the lowest cost of ownership.  Going forward, we believe we are building the best trucks in our Company's history. |

|         |                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Lean enterprise - We are utilizing a customer-focused redesign of our trucks to find new ways to reduce costs and add value for our customers.  We are eliminating waste and driving functional excellence to achieve continuous improvement.  We expect these steps will build customer satisfaction, lower our break-even point, and drive profitability at all points in the cycle. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Financial growth - We expect the increases seen in our orders and backlogs in our traditional markets will translate to increased volumes and market share in the future.  Due to our focus on reducing costs through manufacturing optimization, eliminating waste, and addressing the opportunities identified by our benchmarking study, we expect to lower manufacturing costs, increase capacity utilization and productivity, and a lower cost structure.  We also expect to continue to enhance our liquidity profit and meet the needs of our financial obligations.  As a result of these actions, we expect to improve our financial performance and achieve our long-term financial goals. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Profitable improvements in market share - We expect the sales momentum that began in fiscal 2013 to continue with new and improved products, volume growth, and effective pricing.  We intend to move steadily closer to having a full-product portfolio with SCR technology.  We expect to continue to enhance our product differentiation with enhanced features and options that will benefit our customers and help drive profitable market share improvements. |

|         |                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In June, Walter G. Borst was appointed as the Company's as Executive Vice President and Chief Financial Officer ("CFO"), succeeding Andrew J. (A. J.) Cederoth. |

|         |                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------|
| • | In April, Jack Allen was named President and Chief Operating Officer.  He had previously been President of North America Truck and Parts. |

|         |                                                                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | In May, Bill Kozak was hired as the new President of North America Truck and Parts and Bill Osborne was named the new Vice President, Global Manufacturing and Quality. |

|         |                                                                        |
|---------|------------------------------------------------------------------------|
| • | In August, Terry Kline was hired as the new Chief Information Officer. |

----

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | 9 of 10 director nominees are independent under ours and the NYSE rules. |

|         |                                                     |
|---------|-----------------------------------------------------|
| • | We have 100% independent Board standing committees. |

|         |                                                                    |
|---------|--------------------------------------------------------------------|
| • | We have stockholder representation on all of our Board committees. |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | We have a director resignation policy with respect to directors who fail to obtain a majority vote. |

|         |                               |
|---------|-------------------------------|
| • | We adopted a clawback policy. |

|         |                                                   |
|---------|---------------------------------------------------|
| • | We do not provide tax gross-ups to any employees. |

|         |                                                      |
|---------|------------------------------------------------------|
| • | We have "double trigger" change in control benefits. |

|         |                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------|
| • | Our NEOs and directors are subject to stock ownership guidelines and stock retention requirements. |

|         |                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------|
| • | We impose restrictions on short selling, trading in derivatives, pledges, hedges and margin account use by our executives and directors. |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | We engaged the services of a new executive compensation consultant. |

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | We approved changes to our Annual Incentive Plan to support our turnaround strategy. |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | We limited future long-term incentive awards to executives to performance-based equity instruments. |

|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | We structured our CEO's pay to provide an upfront equity grant in lieu of long-term incentive payments. |

|         |                               |
|---------|-------------------------------|
| • | We approved a new peer group. |

|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | We approved new stock ownership and retention requirements for our senior management team. |

|         |                               |
|---------|-------------------------------|
| • | We adopted a clawback policy. |

----

|                                                                        |
|------------------------------------------------------------------------|
|                                                                        |
|  FREQUENTLY ASKED QUESTIONS REGARDING ATTENDANCE AND VOTING  |

|         |                                                                 |
|---------|-----------------------------------------------------------------|
| • | FOR the election of each of the director nominees (Proposal 1); |

|         |                                                                                                                         |
|---------|-------------------------------------------------------------------------------------------------------------------------|
| • | FOR the ratification of the appointment of KPMG LLP, as our independent registered public accounting firm (Proposal 2); |

|         |                                                                                   |
|---------|-----------------------------------------------------------------------------------|
| • | FOR the approval of the advisory vote on executive compensation (Proposal 3); and |

|         |                                                                          |
|---------|--------------------------------------------------------------------------|
| • | NO RECOMMENDATION with respect to the stockholder proposal (Proposal 4). |

|         |                                                  |
|---------|--------------------------------------------------|
| • | Stockholders of record on January 10, 2014; |

|         |                                                                                    |
|---------|------------------------------------------------------------------------------------|
| • | An authorized proxy holder of a stockholder of record on January 10, 2014; or |

|         |                                                                                                                                       |
|---------|---------------------------------------------------------------------------------------------------------------------------------------|
| • | An authorized representative of a stockholder of record who has been designated to present a properly-submitted stockholder proposal. |

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|         |                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | in person – stockholders who obtain an admission ticket (following the specified procedures) and attend the Annual Meeting in person may cast a ballot received at the Annual Meeting. |

|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | by Internet – stockholders may access the Internet at www.proxyvote.com and follow the instructions on the proxy card or in the Notice. |

|         |                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|
| • | by phone – stockholders may call toll-free 1-800-690-6903 and follow the instructions on the proxy card or in the Notice. |

|         |                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | by mail – if you requested and received your proxy materials by mail, you may complete, sign, date and mail the enclosed proxy card. |

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|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 1 (election of directors) requires a plurality vote of the shares present or represented by proxy at the Annual Meeting and entitled to vote, meaning that the director nominees with the greatest number of affirmative votes are elected to fill the available seats.  As outlined in our Corporate Governance Guidelines, any director who receives more “withheld” votes than “for” votes in an uncontested election is required to tender his or her resignation to the Nominating and Governance Committee for consideration and recommendation to the Board. |

|         |                                                                                                                                                                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 2 (ratification of the appointment of KPMG as our independent registered public accounting firm) requires the affirmative vote of a majority of the shares present or represented by proxy at the Annual Meeting and entitled to vote. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 3 (Say-On-Pay proposal) represents an advisory vote and the results will not be binding on the Board or the Company.  The affirmative vote of a majority of the shares present or represented by proxy at the Annual Meeting and entitled to vote on the matter will constitute the stockholders’ non-binding approval with respect to our executive compensation programs.  Our Board will review the voting results and take them into consideration when making future decisions regarding executive compensation. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Proposal 4 (stockholder proposal) constitutes a non-binding request that the Board redeem the rights issued pursuant to the Rights Plan.  The affirmative vote of a majority of the shares present or represented by proxy at the Annual Meeting and entitled to vote on the matter will constitute the stockholders’ non-binding approval of the stockholder proposal.  Our Board will review the voting results and take them into consideration in determining the course of action that it determines is in the best interests of the Company. |

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|                                                    |
|----------------------------------------------------|
|                                                    |
|  PROPOSAL 1—ELECTION OF DIRECTORS  |

|         |                                                                             |
|---------|-----------------------------------------------------------------------------|
| • | Effective December 10, 2012, Diane Gulyas retired as a member of the Board. |

|         |                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Effective December 10, 2012, pursuant to the settlement agreements entered into with each of the Icahn Group and the MHR Group, the Company appointed Mr. Samuel J. Merksamer to the Board as the representative appointed together by the Icahn Group and the MHR Group. |

|         |                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Effective April 15, 2013, Lewis B. Campbell stepped down from his positions as Executive Chairman and Interim Chief Executive Officer and as a member of the Board. |

|         |                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Effective April 15, 2013, Troy A. Clarke was appointed by the Board to the position of President and Chief Executive Officer of the Company and as a member of the Board to fill the vacancy created by the resignation of Mr. Campbell. |

|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | Effective April 15, 2013, James H. Keyes, an independent non-executive director, was appointed Chairman of the Board to replace Mr. Campbell. |

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| • | Effective July 14, 2013, John C. (Jack) Pope retired as a member of the Board. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | During the summer of 2013, our Board held discussions with two of our largest stockholders, namely the Icahn Group and the MHR Group.  As a result of those discussions, on July 14, 2013, we entered into amendments to the existing settlement agreements with each of the Icahn Group and the MHR Group, pursuant to which each of the Icahn Group and the MHR Group have the right to nominate two directors to serve on our Board and to stand for election at the Annual Meeting. |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| • | The Icahn Group designated Vincent J. Intrieri and Samuel J. Merksamer as the Icahn Group nominees for election at the Annual Meeting. |

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| • | The MHR Group designated Dr. Mark H. Rachesky and Michael Sirignano as the MHR Group nominees for election at the Annual Meeting. |

----

|  |
|--|
|  |  |
|  | Troy A. Clarke, 58, Director since April 2013.  Mr. Clarke has served as President and Chief Executive Officer of NIC since April 2013.  Prior to this position, Mr. Clarke served as President and Chief Operating Officer of NIC since August 2012, at Navistar, Inc. as President of the Truck and Engine Group from June 2012 to August 2012, as President of Asia-Pacific Operations of Navistar, Inc. from 2011 to 2012, and as Senior Vice President of Strategic Initiatives of Navistar, Inc. from 2010 to 2011.  Prior to joining Navistar, Inc., Mr. Clarke held various positions at General Motors, including President of General Motors North America from 2006 to 2009 and President of General Motors Asia Pacific from 2003 to 2006.  Over the course of his career with GM, he held several additional leadership roles, including President and Managing Director of GM de Mexico and Director of Manufacturing for GM de Mexico.  On June 1, 2009, General Motors filed for voluntary reorganization under Chapter 11 of the U.S. Bankruptcy Code.  Mr. Clarke received a bachelor's degree in engineering from the General Motors Institute in 1978 and a master's degree in business administration from the University of Michigan in 1982.  Mr. Clarke has served on the board of directors of Fuel Systems Solutions, Inc., a public alternative fuel components and systems company, since December 2011. Mr. Clarke's vast experience in the automotive industry over the past 38 years is invaluable to the Board in evaluating and directing the Company's future.  As a result of his professional and other experiences, Mr. Clarke possesses particular knowledge and experience in a variety of areas, including corporate governance, engineering, manufacturing (international and domestic), mergers and acquisitions, sales (international and domestic) and union/labor relations, which strengthens the Board's collective knowledge, capabilities and experience and well qualifies him to serve on our Board. |

|  |
|--|
|  |  |
|  | John D. Correnti,* 66, Director since October 1994 (Committees: Audit, Nominating and Governance and Compensation (Chair)).  Mr. Correnti serves as Chairman and Chief Executive Officer of Big River Steel, LLC, a steel mill operational and development company, since 2010.  Prior to this position he was the Chairman and Chief Executive Officer of Steel Development Company, LLC, a steel mill operational and development company, from 2007 to 2010 and President and Chief Executive Officer of SeverCorr, LLC, a manufacturer of high quality flat-rolled steel products, from 2005 until 2008.  He was Chairman and Chief Executive Officer of SteelCorr, LLC from 2002 to 2005, and Chairman and Chief Executive Officer of Birmingham Steel Corporation, a manufacturer of steel and steel products, from 1999 to 2002.  Mr. Correnti served as Chief Executive Officer, President and Vice Chairman of Nucor Company, a mini mill manufacturer of steel products, from 1996 to 1999, and as its President and Chief Operating Officer and as a director from 1991 to 1996.  He is Executive Chairman of the Board of Directors of Silicor Material, a private silicon manufacturer, since 2010, Chairman of BlueOak Resources, a private electronic waste recycling company, since 2010, and a director of Corrections Corporation of America, a public provider of correctional solutions, since 2000.  He also serves on the Clarkson University Board of Trustees. Mr. Correnti’s executive leadership and experience gained through his service as a chief executive of established and start-up companies, both public and private, and his public company director experience contribute significantly to the capabilities and composition of our Board.  His skills and experience in accounting, corporate governance, distribution, engineering, human resources, compensation, and employee benefits, manufacturing (domestic and international), marketing, mergers and acquisitions, domestic sales and distribution and purchasing matters well qualifies him to serve on our Board. |

----

|  |
|--|
|  |  |
|  | Michael N. Hammes,* 72, Director since February 1996 (Committees: Compensation, Finance and Nominating and Governance (Chair)).  Mr. Hammes also served as Lead Director of the Company from December 2007 to April 2013.  He served as Chairman and Chief Executive Officer of Sunrise Medical Inc., which designs, manufacturers and markets home medical equipment worldwide, from 2000 until his retirement as Chief Executive Officer in 2007 and as Chairman in 2008.  He was Chairman and Chief Executive Officer of the Guide Corporation, an automotive lighting business, from 1998 to 2000. He was also Chairman and Chief Executive Officer of The Coleman Company, Inc., a manufacturer and distributor of camping and outdoor recreational products and hardware/home products, from 1993 to 1997, and held a variety of executive positions with Ford and Chrysler including President of Chrysler’s International Operations and President of Ford’s European Truck Operations. He is a director of James Hardie, a public fibre cement technology company, since February 2007 and its Chairman since January 2008.  He is also a director of Dynavox, Inc., a public speech-generating devices company, since April 2010 and a director of DeVilbiss Healthcare, a private manufacturer of respiratory medical products, since 2010. As a result of these professional and other experiences, including his experience as a member of other public company boards of directors, Mr. Hammes possesses particular knowledge and experience in a variety of areas, including accounting, corporate governance, distribution, finance, manufacturing (domestic and international), marketing, international sales/distribution and product development, which strengthens the Board’s collective knowledge, capabilities and experience.  Likewise, his experience and leadership in serving as Chairman and Chief Executive Officer for three different companies for fifteen years well qualifies him to serve on our Board.  |

----

|  |
|--|
|  |  |
|  | Vincent J. Intrieri,* 57, Director since October 2012 (Committees: Finance (Co-Chair) and Nominating and Governance).  Mr. Intrieri has been employed by Carl Icahn-related entities since October 1998 in various investment related capacities.  Mr. Intrieri has served as Senior Managing Director of Icahn Capital LP, the entity through which Carl C. Icahn manages private investment funds, since January 2008. Since November 2004, Mr. Intrieri has been a Senior Managing Director of Icahn Onshore LP, the general partner of Icahn Partners LP, and Icahn Offshore LP, the general partner of Icahn Partners Master Fund LP, Icahn Partners Master Fund II LP and Icahn Partners Master Fund III LP, entities through which Mr. Icahn invests in securities.  Mr. Intrieri is currently a director of: Chesapeake Energy Corporation, a public oil and gas exploration and production company, since June 2012; CVR Energy, Inc., a public independent petroleum refiner and marketer of high value transportation fuels, since May 2012; CVR Refining GP, LLC, the general partner of CVR Refining, LP, a public independent downstream energy limited partnership, since January 2013; and Forest Laboratories, a public pharmaceutical company, since June 2013.  Mr. Intrieri was previously: a director of Icahn Enterprises G.P. Inc., the general partner of Icahn Enterprises L.P. (a diversified holding company engaged in a variety of businesses, including investment, automotive, energy, gaming, railcar, food packaging, metals, real estate and home fashion) from July 2006 through September 2012, and was Senior Vice President of Icahn Enterprises G.P. Inc. from October 2011 through September 2012; a director of Dynegy Inc., a company primarily engaged in the production and sale of electric energy, capacity and ancillary services, from March 2011 through September 2012; chairman of the board and a director of PSC Metals Inc., a metal recycling company, from December 2007 through April 2012; a director of Motorola Solutions, Inc., a provider of communication products and services, from January 2011 through March 2012; a director of XO Holdings, a telecommunications company, from February 2006 through August 2011; a director of National Energy Group, Inc., a company that was engaged in the business of managing the exploration, production and operations of natural gas and oil properties, from December 2006 through June 2011; a director of American Railcar Industries, Inc., a railcar manufacturing company, from August 2005 until March 2011; a director of WestPoint International, Inc., a manufacturer and distributor of home fashion consumer products, from November 2005 through March 2011; chairman of the board and a director of Viskase Companies, Inc., a meat casing company, from April 2003 through March 2011; a director of WCI Communities, Inc., a homebuilding company, from August 2008 through September 2009; a director of Lear Corporation, a global supplier of automotive seating and electrical power management systems and components, from November 2006 through November 2008; and President and Chief Executive Officer of Philip Services Corporation, an industrial services company, from April 2005 through September 2008.Mr. Intrieri graduated in 1984, with distinction, from The Pennsylvania State University (Erie Campus) with a B.S. in Accounting and was a certified public accountant.  He possesses strong skills and experience in accounting, corporate governance, finance, mergers and acquisitions and treasury matters. Mr. Intrieri's significant experience as a director of various companies enables him to understand complex business and financial issues, which contributes greatly to the capabilities and composition of our Board and well qualifies him to serve on our Board. |

|  |
|--|
|  |  |
|  | James H. Keyes,* 73, Director since December 2002; Chairman since April 2013 (Committees: Audit (Chair), Compensation and Nominating and Governance).  Mr. Keyes retired as Chairman of the Board of Johnson Controls, Inc., a public automotive system and facility management and control company, in 2003, a position he had held since 1993.  He served as Chief Executive Officer of Johnson Controls, Inc. from 1988 until 2002.  He retired as a director of Pitney Bowes, Inc. in May 2013 and is a member of the Board of Trustees of Fidelity Mutual Funds.  He was also a director of LSI Logic Corporation, an electronics company that designs semiconductors and software that accelerate storage and networking in datacenters and mobile networks, from 1983 until 2008. Mr. Keyes has broad experience as a former chief executive officer of a public company, experience as a certified public accountant, experience as a member of other public company boards of directors, and he has a Masters degree in Business Administration.  He possesses strong skills and experience in accounting, corporate governance, finance, human resources/compensation/employee benefits, manufacturing (domestic and international), mergers and acquisitions and treasury matters, which well qualifies him to serve on our Board. |

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|  |
|--|
|  |  |
|  | General (Retired) Stanley A. McChrystal,* 59, Director since February 2011 (Committees: Compensation, Finance and Nominating and Governance).  Gen. McChrystal is a retired 34-year U.S. Army veteran of multiple wars.  He commanded the U.S. and NATO’s security mission in Afghanistan, served as the director of the Joint Staff and was the Commander of Joint Special Operations Command, where he was responsible for the nation’s deployed military counter terrorism efforts.  Gen. McChrystal is a graduate of the United States Military Academy at West Point, the United States Naval Command and Staff College and was a military fellow at both the Council on Foreign Relations and the Kennedy School of Government at Harvard University.  Gen. McChrystal has been serving as a member of the Board of Directors of JetBlue Airways Corporation, a public commercial airline, since 2010, Chairman of the Board of Siemens Government Technologies, Inc., a wholly-owned indirect subsidiary and a Federal Business Entity of Siemens AG, since December 2011, and a member of the Board of Advisors of General Atomics, a private high-technology systems company ranging from the nuclear fuel cycle to remotely operated surveillance aircraft, airborne sensors, and advanced electric, electronic, wireless and laser technologies, since August 2011.  In 2011, Gen. McChrystal co-founded McChrystal Group, a leadership consulting firm.  He also teaches a seminar on leadership at the Jackson Institute for Global Affairs at Yale University and serves alongside his wife on the Board of Directors for the Yellow Ribbon Fund, a non-profit organization committed to helping wounded veterans and their families. As a former senior military leader, Gen. McChrystal has experience in logistics, talent management and experience with government and regulatory affairs and military contracting. Gen. McChrystal’s years of military leadership and service are of great value to the Board as the Company makes decisions in respect of its global and military businesses. |

|  |
|--|
|  |  |
|  | Samuel J. Merksamer,* 33, Director since December 2012 (Committees: Audit and Compensation). Mr. Merksamer has served as a Managing Director at Icahn Capital LP since 2008, where he is responsible for identifying, analyzing and monitoring investment opportunities and portfolio companies for Icahn Capital.  Mr. Merksamer has served as a director of: Hologic Inc., a public health-care company, since December 2013; Talisman Energy Inc., a public independent oil and gas exploration and production company, since December 2013; Transocean Ltd., a public provider of offshore contract drilling services for oil and gas wells, since May 2013; CVR Refining GP, LLC, the general partner of CVR Refining, LP, a public independent downstream energy limited partnership, since January 2013; Ferrous Resources Limited, a private iron ore mining company with operations in Brazil, since November 2012; and CVR Energy, Inc., a public diversified holding company primarily engaged in the petroleum refining and nitrogen fertilizer manufacturing industries, since May 2012. Mr. Merksamer was previously a director of: Federal−Mogul Corporation, a public supplier of automotive powertrain and safety components, from September 2010 to January 2014; American Railcar Industries, Inc., a railcar manufacturing company, from June 2011 to June 2013; Viskase Companies, Inc., a meat casing company, from January 2010 to April 2013; PSC Metals Inc., a metal recycling company, from March 2009 to October 2012; and Dynegy Inc., a company primarily engaged in the production and sale of electric energy, capacity and ancillary services, from March 2011 to September 2012.  Mr. Merksamer received an A.B. in Economics from Cornell University in 2002. Mr. Merksamer's significant experience as a director of various companies enables him to understand complex business and financial issues.  He possesses strong skills and experience in accounting, corporate governance, finance, human resources/compensation/employee benefits, mergers and acquisitions and treasury matters, which contributes greatly to the capabilities and composition of our Board and qualifies him to serve on our Board. |

----

|  |
|--|
|  |  |
|  | Mark H. Rachesky, M.D.,* 54, Director since October 2012 (Committees: Compensation, Finance (Co-Chair) and Nominating and Governance).  Dr. Rachesky is the founder and President of MHR Fund Management LLC, an investing firm that manages approximately $5 billion of assets and utilizes a private equity approach to investing in middle market companies with an emphasis on special situation and distressed investments.  Dr. Rachesky serves as a member and chairman of the board of directors of Loral Space & Communications Inc., a public satellite communications company, since 2005, Lions Gate Entertainment Corp., a public entertainment company, since 2009, Leap Wireless International, Inc., a public digital wireless company, since 2004, and Telesat Canada, a public satellite company, since 2007, and as a member of the board of directors of Emisphere Technologies, Inc., a public biopharmaceutical company, since 2005 and Nationshealth, Inc., a private medical supply company, since 2005.  Dr. Rachesky previously served as a director of Neose Technologies, Inc. from 1999 to 2008.  Dr. Rachesky holds a B.S. in molecular aspects of cancer from the University of Pennsylvania, an M.D. from the Stanford University School of Medicine and an M.B.A. from the Stanford University School of Business.Dr. Rachesky brings significant corporate finance and business expertise to our Board due to his background as an investor and fund manager.  Dr. Rachesky also has significant expertise and perspective as a member of the boards of directors of private and public companies engaged in a wide range of businesses.  Dr. Rachesky's broad and insightful perspectives relating to economic, financial and business conditions affecting the Company and its strategic direction well qualifies him to serve on our Board. |

|  |
|--|
|  |  |
|  | Michael Sirignano* 32, Mr. Sirignano has served as a Principal at MHR Fund Management LLC since 2012 where he is responsible for sourcing and managing investments and portfolio companies.  From 2006 to 2011, Mr. Sirignano was at Owl Creek Asset Management, L.P. which is a value-oriented investment firm.  Mr. Sirignano held various titles, most recently Senior Analyst.  Mr. Sirignano was focused primarily on equities and distressed debt in the industrial, housing, metals and mining, telecommunication and technology sectors.  Prior to that, Mr. Sirignano was a member of Rothschild’s restructuring group where he worked on restructurings, refinancing transactions and sale processes for distressed companies.  Mr. Sirignano holds a B.A. in Economics, with honors, from Williams College.Mr. Sirignano brings significant corporate finance and business expertise to our Board due to his experience as an analyst across a number of industries and his focus on equity and debt securities. |

|  |
|--|
|  |  |
|  | Dennis D. Williams,* ** 60, Director since June 2006. (Committee: Audit).  Mr. Williams has served as UAW’s Secretary, Treasurer and Director, Agricultural Implement and Transnational Departments since June 2010.  Prior to this position, Mr. Williams served as Director of UAW Region 4 from 2001 to June 2010 and as Assistant Director of Region 4 from 1995 to 2001.  Prior to joining the UAW, Mr. Williams was employed by Case Company from 1977 to 1988.  Mr. Williams also served for four years in the United States Marine Corps. |

|   |                                                                                                                                                                                           |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| * | Indicates each director deemed independent in accordance with our Corporate Governance Guidelines and Section 303A of the NYSE Listed Company Manual Corporate Governance Standards. |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ** | In July 1993, we restructured our postretirement health care and life insurance benefits pursuant to a settlement agreement, which required, among other things, the addition of a seat on our Board. The director’s seat is filled by a person appointed by the UAW.  This director is not elected by stockholders at the Annual Meeting.  Mr. Williams was elected as a director in June 2006 to fill the seat previously held by David McAllister, the former UAW director who held this position from 2001 until his removal by the UAW in June 2006. |

----

|                                  |
|----------------------------------|
|                                  |
|  CORPORATE GOVERNANCE  |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The first originally occurred in August 2008 and relates to our Senior Vice President and Treasurer, James M. Moran, whose wife, Kristin Moran, is employed as the General Counsel of our finance subsidiary, Navistar Financial Corporation.  As General Counsel of Navistar Financial Corporation, Mrs. Moran received annual compensation and benefits for fiscal 2013 of less than $210,000, which includes base salary, annual incentive, Company 401(k) matching contributions and other standard benefits available to all employees generally, and was granted 1,028 stock options, 1,028 performance based options and 945 share settled restricted stock units.  Mrs. Moran’s compensation and benefits are comparable to other employees with equivalent qualifications, experience, and responsibilities at the Company.  Moreover, Mrs. Moran’s annual compensation is market bench-marked periodically by our Corporate Compensation Department and determined outside of the related person’s reporting structure.  This transaction is subject to our Policy and Procedures with Respect to Related Person Transactions because Mr. Moran is an executive officer of the Company.  This transaction did not |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The second originally occurred in September 2009 and relates to our former Chief Financial Officer, Andrew J. Cederoth, whose brother-in-law, Daniel McEachern, is a materials manager at Navistar Defense, LLC.  As materials manager at Navistar Defense, Mr. McEachern received annual compensation and benefits for fiscal 2013 of less than $145,000, which includes base salary, annual incentive, Company 401(k) matching contributions and other standard benefits available to all employees generally.  Mr. McEachern’s compensation and benefits are comparable to other employees with equivalent qualifications, experience, and responsibilities at the Company.  Moreover, Mr. McEachern’s annual compensation is market bench-marked periodically by our Corporate Compensation Department and determined outside of the related person’s reporting structure.  This transaction is subject to our Policy and Procedures with Respect to Related Person Transactions because Mr. Cederoth was an executive officer of the Company.  This transaction did not require approval however, and is permissible under our Policy and Procedures with Respect to Related Person Transaction because Mr. McEachern’s employment predated Mr. Cederoth’s appointment as our former Executive Vice President and Chief Financial Officer. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The third occurred in June 2013 and was approved by our Board, upon the recommendation of the Audit Committee, and relates to Carl Icahn, a 16% stockholder of the Company, and a subsidiary of CVR Energy, Inc. (“CVR”).  CVR purchased seven trucks from Navistar, Inc. for a total purchase price of approximately $800,000.  Mr. Icahn owns 82% of CVR.  In addition, Mr. Icahn is a member of CVR’s Board of Directors.  CVR received the standard discount given to all customers and received no unique payment terms or special concessions.  Because Mr. Icahn is an 82% owner of CVR, Mr. Icahn has a direct material interest in this transaction.  The Audit Committee and Board considered the factors described above and the Board, upon the recommendation of the Audit Committee, approved the transaction on the basis that the Navistar/Icahn/CVR relationship is in the best interests of the Company. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The fourth occurred throughout fiscal 2013 and was ratified by the Board, upon the recommendation of the Audit Committee, in December 2013 and relates to Carl Icahn, a 16% stockholder of the Company, and Federal-Mogul Corporation (“Federal-Mogul”).   Navistar purchased goods and services from Federal-Mogul throughout fiscal 2013 that amounted to approximately $21,000,000.  Mr. Icahn owns over 80% of Federal-Mogul.  Navistar received standard terms and conditions and received no unique payment terms or special concessions.  Because Mr. Icahn is an 80% owner of Federal-Mogul, Mr. Icahn has a direct material interest in this transaction.  The Audit Committee and the Board considered the factors described above and the Board, upon the recommendation of the Audit Committee, ratified the transactions on the basis that the Navistar/Icahn/Federal-Mogul relationship is in the best interests of the Company. |

----

----

|         |                                                                                       |
|---------|---------------------------------------------------------------------------------------|
| • | knowledge and contacts in the Company’s industry and other relevant industries; |

|         |                                                |
|---------|------------------------------------------------|
| • | positive reputation in the business community; |

|         |                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------|
| • | the highest personal and professional ethics and integrity and values that are compatible with the Company’s values; |

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | experiences and achievements that provide the nominee with the ability to exercise good business judgment; |

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | ability to make significant contributions to the Company’s success; |

|         |                                                    |
|---------|----------------------------------------------------|
| • | ability to work successfully with other directors; |

|         |                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | willingness to devote the necessary time to the work of the Board and its committees which includes being available for the entire time of meetings; |

|         |                                                                |
|---------|----------------------------------------------------------------|
| • | ability to assist and evaluate the Company’s management; |

|         |                                                                                                                                                       |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | involvement only in other activities or interests that do not create a conflict with his or her responsibilities to the Company and its stockholders; |

|         |                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | understanding of and ability to meet his or her responsibilities to the Company’s stockholders including the duty of care (making informed decisions) and the duty of loyalty (maintaining confidentiality and avoiding conflicts of interest); and |

|         |                                                          |
|---------|----------------------------------------------------------|
| • | potential to serve on the Board for at least five years. |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |
| Committee Membership(as of December 31, 2013) |
|                                          | Audit |   | Compensation |   | Finance |   | Nominating &Governance |   |
| Troy A. Clarke                                     |   |   |   |   |   |   |   |   |
| John D. Correnti                                   | ü |   | ü | * |   |   | ü |   |
| Michael N. Hammes                                  |   |   | ü |   | ü |   | ü | * |
| Vincent J. Intrieri                                |   |   |   |   |  ü | * |  ü |   |
| James H. Keyes                                     | ü | * | ü |   |   |   | ü |   |
| Stanley A. McChrystal                              |   |   | ü |   |  ü |   |  ü |   |
| Samuel J. Merksamer                                | ü |   | ü |   |   |   |   |   |
| Mark H. Rachesky                                   |   |   | ü |   |  ü | * |  ü |   |
| Dennis D. Williams                                 |  ü |   |   |   |   |   |   |   |

----

----

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |  |
| Via the Navistar Business Abuse andCompliance Hotline                 | Write to the Audit Committee | E-mail the Audit Committee |
| 1 -877-734-2548or via the Internet attnwinc.com/webreport/default.asp | Audit Committeec/o Corporate SecretaryNavistar International Corporation2701 Navistar DriveLisle, Illinois 60532 | Audit.committee@navistar.com |

----

|                                    |
|------------------------------------|
|                                    |
|  AUDIT COMMITTEE REPORT  |

----

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |
|  PERSONS OWNING MORE THAN FIVE PERCENT OF NAVISTAR COMMON STOCK  |

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |  |
| Name and Address                                                                         | Total Amount and Nature of Beneficial Ownership |   | Percent of Class  (A) |
| Franklin Resources, Inc.One Franklin ParkwaySan Mateo, CA 94403-1906                     | 14,588,520 |  | (B)   | 17.96 | % |
| Carl C. Icahnc/o Icahn Associates Corp., 767 Fifth Avenue, Suite 4700 New York, NY 10153 | 13,309,735 |  | (C)   | 16.38 | % |
| Mark H. Rachesky, M.D.40 West 57th Street, 24th floorNew York, NY 10019        | 13,074,857 |  | (D)   | 16.09 | % |
| GAMCO Investors, Inc. et. al.One Corporate Center Rye, NY 10580-1435                     | 8,210,182 |  | (E)   | 10.11 | % |
| Citadel Advisors LLC131 South Dearborn Street, 32nd FloorChicago, Illinois 60603         | 4,348,428 |  | (F)  | 5.35 | % |

|     |                                                                                                                          |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (A) | Applicable percentage ownership is based upon 81,242,023 shares of Common Stock outstanding as of January 10, 2014. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | As reported in Schedule 13G/A filed with the SEC on February 12, 2013 by Franklin Resources, Inc. ("FRI"), Charles B. Johnson, Rupert H. Johnson, Jr. and Templeton Global Advisors Limited.  These securities are beneficially owned by one or more open- or closed-end investment companies or other managed accounts that are investment management clients of investment managers that are direct and indirect subsidiaries of FRI.  Charles B. Johnson and Rupert H. Johnson, Jr. each own in excess of 10% of the outstanding common stock of FRI and are the principal stockholders of FRI.  See the Schedule 13G/A for certain disclaimers of beneficial ownership. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | As reported in Schedule 13D/A filed with the SEC on July 19, 2013 by High River Limited Partnership (“High River”), Hopper Investments LLC (“Hopper”), Barberry Corp. (“Barberry”), Icahn Partners Master Fund LP (“Icahn Master”), Icahn Partners Master Fund II LP (“Icahn Master II”), Icahn Partners Master Fund III LP (“Icahn Master III”), Icahn Offshore LP (“Icahn Offshore”), Icahn Partners LP (“Icahn Partners”), Icahn Onshore LP (“Icahn Onshore”), Icahn Capital LP (“Icahn Capital”), IPH GP LLC (“IPH”), Icahn Enterprises Holdings L.P. (“Icahn Enterprises Holdings”), Icahn Enterprises G.P. Inc. (“Icahn Enterprises GP”), Beckton Corp. (“Beckton”), and Carl C. Icahn (collectively, the “Icahn Reporting Persons”).  The Icahn Reporting Persons reported the following: High River has sole voting power and sole dispositive power with regard to 2,661,946 shares of Common Stock and each of Hopper, Barberry and Mr. Icahn has shared voting power and shared dispositive power with regard to such shares of Common Stock; Icahn Master has sole voting power and sole dispositive power with regard to 4,241,590 shares of Common Stock and each of Icahn Offshore, Icahn Capital, IPH, Icahn Enterprises Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such shares of Common Stock; Icahn Master II has sole voting power and sole dispositive power with regard to 1,660,223 shares of Common Stock and each of Icahn Offshore, Icahn Capital, IPH, Icahn Enterprises Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such shares of Common Stock; Icahn Master III has sole voting power and sole dispositive power with regard to 730,846 shares of Common Stock and each of Icahn Offshore, Icahn Capital, IPH, Icahn Enterprises Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such shares of Common Stock. Icahn Partners has sole voting power and sole dispositive power with regard to 4,015,130 shares of Common Stock and each of Icahn Onshore, Icahn Capital, IPH, Icahn Enterprises Holdings, Icahn Enterprises GP, Beckton and Mr. Icahn has shared voting power and shared dispositive power with regard to such shares of Common Stock. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (D) | As reported in a Form 4 filed with the SEC on September 9, 2013 by MHR Institutional Partners III LP, MHR Institutional Advisors III LLC, MHR Fund Management LLC, MHR Holdings LLC and Dr. Rachesky. MHR Institutional Partners III LP and MHR Institutional Advisors III LLC each has sole voting and dispositive power over 11,922,293 shares of Common Stock. MHR Fund Management LLC and MHR Holdings LLC have sole voting and dispositive power over 13,072,979 shares of Common Stock. Dr. Rachesky has sole voting and |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (E) | As reported in a Schedule 13D/A filed with the SEC on September 6, 2013, by Gabelli Funds, LLC, GAMCO Asset Management, Inc., Gabelli Securities, Inc., Gabelli Foundation, Inc., MJG Associates, Inc., MJG-IV Limited Partnership, Teton Advisors, Inc., and Mario J. Gabelli (collectively, the "Gabelli Reporting Persons").  The Gabelli Reporting Persons reported the following: Gabelli Funds LLC has sole voting and dispositive power with regard to 2,577,334 shares of Common Stock, GAMCO Asset Management Inc. has sole voting power with regard to 5,161,348 shares of Common Stock and sole dispositive power with regard to 5,548,848 shares of Common Stock, Gabelli Securities, Inc. has sole voting and dispositive power with regard to 1,500 shares of Common Stock, Gabelli Foundation, Inc. has sole voting and dispositive power with regard to 9,000 shares of Common Stock, MJG Associates, Inc. has sole voting and dispositive power with regard to 3,000 shares of Common Stock, MJG-IV Limited Partnership has sole voting and dispositive power with regard to 2,000 shares of Common Stock, Teton Advisors, Inc. has sole voting and dispositive power with regard to 2,000 shares of Common Stock, Mr. Gabelli has sole voting and dispositive power with regard to 66,500 shares of Common Stock.  Mr. Gabelli is deemed to have beneficial ownership of the shares of Common Stock owned beneficially by each of the foregoing entities due to the fact that he directly or indirectly controls or acts as chief investment officer for such entities.   See the Schedule 13D/A filed by the Gabelli Reporting Persons for certain disclaimers of beneficial ownership. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | As reported in a Schedule 13G filed with the SEC on January 3, 2013, by Citadel Advisors LLC, Citadel Holdings II LP, Citadel Investment Group II, L.L.C. and Kenneth Griffin (collectively, the "Citadel Reporting Persons").  The Citadel Reporting Persons reported the following: Citadel Advisors LLC has shared voting power and shared dispositive power with regard to 4,196,228 shares of Common Stock, Citadel Holdings II LP, has shared voting power and shared dispositive power with regard to 4,196,228 shares of Common Stock, Citadel Investment Group II, L.L.C. has shared voting power and shared dispositive power with regard to 4,348,428 shares of Common Stock, and Kenneth Griffin has shared voting power and shared dispositive power with regard to 4,348,428 shares of Common Stock.  See the Schedule 13G filed by the Citadel Reporting Persons for certain disclaimers of beneficial ownership. |

----

|                                                                             |
|-----------------------------------------------------------------------------|
|                                                                             |
|  NAVISTAR COMMON STOCK OWNED BY EXECUTIVE OFFICERS AND DIRECTORS  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |  |  |  |  |  |  |
| Name/Group                                                      | Owned (A) | Number ofDSUs,PSUs orRSUs Convertible into Common Stock (B) | ObtainableThrough StockOption Exercise | Total |   | Percentof Class |
| John J. Allen                                                   | 28,032 |  | 6,915 |  | 78,838 |  | 113,785 |  |   | * |  |
| Walter G. Borst                                                 | — |  | — |  | — |  | — |  |   | * |  |
| Lewis B. Campbell                                               | — |  | — |  | — |  | — |  |   | * |  |
| Andrew J. Cederoth                                              | — |  | 6,779 |  | 18,533 |  | 25,312 |  |   | * |  |
| Troy A. Clarke                                                  | 54,100 |  | 1,827 |  | 50,000 |  | 105,927 |  |   | * |  |
| John D. Correnti                                                | 6,063 |  | 13,257 |  | 24,600 |  | 43,920 |  |   | * |  |
| Steven K. Covey                                                 | 25,810 |  | 3,601 |  | 136,539 |  | 165,950 |  |   | * |  |
| Michael N. Hammes                                               | 6,395 |  | — |  | 15,400 |  | 21,795 |  |   | * |  |
| Vincent J. Intrieri                                             | — |  | 1,231 |  | 1,667 |  | 2,898 |  |   | * |  |
| James H. Keyes                                                  | 3,416 |  | 16,424 |  | 24,600 |  | 44,440 |  |   | * |  |
| Stanley A. McChrystal                                           | 1,508 |  | 8,204 |  | 5,000 |  | 14,712 |  |   | * |  |
| Samuel J. Merksamer                                             | — |  | 585 |  | 1,667 |  | 2,252 |  |   | * |  |
| Mark H. Rachesky(C)                                             | 13,074,857 |  | — |  | 1,667 |  | 13,076,524 |  |   | 16.1 |  |
| Michael Sirignano                                               | — |  | — |  | — |  | — |  |   | * |  |
| Eric Tech                                                       | 15,094 |  | 1,148 |  | 49,458 |  | 65,700 |  |   | * |  |
| Dennis D. Williams(D)                                           | — |  | — |  | — |  | — |  |   | * |  |
| All Directors and Executive Officers as a Group (20 persons)(E) | 13,252,951 |  | 66,146 |  | 512,430 |  | 13,831,527 |  | (F)  | 17.0 |  |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
|  * | Percentage of shares beneficially owned does not exceed one percent. |

|     |                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (A) | The number of shares shown for each NEO (and all directors and executive officers as a group) includes the number of shares of Common Stock owned indirectly, as of December 31, 2013, by such executive officers in our Retirement Accumulation Plan, as reported to us by the Plan trustee. |

|     |                                                                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (B) | For additional information on deferred share units (“DSUs”), premium share units (“PSUs”) and restricted stock units (“RSUs”) see below. |

|     |                                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (C) | As reported in a Form 4 filed with the SEC on September 9, 2013 by MHR Institutional Partners III LP, MHR Institutional Advisors III LLC, MHR Fund Management LLC, MHR Holdings LLC and Dr. Rachesky.  See also Footnote D to the section Persons Owning More Than Five Percent of Navistar Common Stock in this proxy statement. |

|     |                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------|
| (D) | At the request of the UAW, the UAW representative director, Dennis Williams, does not receive stock or stock option grant awards. |

|     |                                                                                                              |
|-----|--------------------------------------------------------------------------------------------------------------|
| (E) | Includes all current directors, NEOs and officers for purposes of Section 16 of the Exchange Act as a group. |

|     |                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (F) | Includes 7,822 shares over which there is shared voting and investment power by certain executive officers (not including the NEOs) included in the Directors and Executive Officers as a group. |

----

----

|                          |
|--------------------------|
|                          |
|  COMPENSATION  |

|                                         |
|-----------------------------------------|
|                                         |  |
| The Compensation Committee              | The Independent Members of theBoard of Directors (non-Compensation Committee members) |
| John D. Correnti, Chairperson           | Vincent Intrieri |
| Michael N. Hammes                       | Dennis D. Williams |
| James H. Keyes                          |   |
| Samuel J. Merksamer                     |   |
| General (Retired) Stanley A. McChrystal |   |
| Mark H. Rachesky                        |   |

----

|         |                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Realized pay for stock options and performance shares under the Total Shareholder Return ("TSR") program, i.e. the actual amount these awards were worth to our NEOs as of October 31, 2012, was $0. |

|         |                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Engaged the services of a new executive compensation consultant to assess our current policies and programs and recommend changes to better align with best practices. |

|         |                                                                                                                                                                                                                                                                                                                           |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Approved an Annual Incentive Plan ("AI Plan") for fiscal 2013 with four performance measures aligned with our turnaround strategy consisting of (i) Manufacturing cash, (ii) Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA"), (iii) SG&A savings and (iv) successful quality engine launch. |

|         |                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------|
| • | Approved changes to our Long-Term Incentive Plan ("LTI Plan"), with executives receiving only performance-based equity instruments. |

|         |                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Structured a pay package for a new CEO with direct input from major stockholders, aligning his incentives with a Company turnaround by issuing an upfront equity grant in lieu of any long-term incentive payments over the next 3 years in order to measure performance over the long-term. |

|         |                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------|
| • | Approved a new peer group, placing Navistar at the median based on revenue and enterprise value. |

----

|         |                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Approved a new Executive Stock Ownership Program ("ESOP") which increases ownership multiples,  adds retention requirements, and eliminates premium shares.  These changes are effective beginning fiscal 2014. |

|         |                                                                                                                                                                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Adopted a new recoupment policy effective fiscal 2014 which enables the Company to recover incentive-based compensation in the event of an accounting restatement due to material non-compliance with financial reporting requirements, as well as intentional misconduct. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Approved certain revisions to our Executive Severance Agreement ("ESA") template for fiscal 2014 and going forward, including, but not limited to: (i) reducing the duration of the agreement period post-Change in Control (“CIC”); (ii) modifications to the definition of CIC; (iii) reducing the duration of the post-CIC period and (iv) inclusion of the Company’s ability to recoup incentive pay under the Company’s Recoupment Policy. |

|         |                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Cash:  Short-term liquidity is key to continuing operations and positive cash flow from operations needs to be achieved.  Navistar is continuing to work on improving the balance sheet by restructuring and focusing on core businesses. |

|         |                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------|
| • | Market Share:  In our capital intensive industry, market share is key to both operational efficiency and long term viability. |

|         |                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Earnings:  To maintain a long-term value proposition for stockholders, Navistar needs to balance market share goals with profitability by achieving competitive margin levels. |

|                    |
|--------------------|
|                    |  |
| NEO                | Title |
| Troy A. Clarke     | President and Chief Executive Officer |
| Walter G. Borst    | Executive Vice President and Chief Financial Officer |
| John J. Allen      | Executive Vice President and Chief Operating Officer |
| Steven K. Covey    | Senior Vice President, General Counsel and Chief Ethics Officer |
| Eric Tech          | Senior Vice President, Strategy and Planning & President Global and Specialty Businesses |
| Lewis B. Campbell  | Former Chairman and Interim Chief Executive Officer |
| Andrew J. Cederoth | Former Executive Vice President and Chief Financial Officer |

----

|         |                                                                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Competitive Positioning:  Total remuneration is designed to attract and retain the executive talent necessary to achieve our goals through a market competitive total remuneration package. |

|         |                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Pay-for-Performance:  Executive compensation is performance-based with a direct link to Company, business unit, and individual performance.  It is also designed to align the interests of executives and stockholders. |

|         |                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Ownership and Responsibility:  Compensation programs are designed to recognize individual contributions as well as link executive and stockholder interests through programs that reward our executive officers, based on the financial success of the Company and increases to stockholder value. |

|         |                                                                             |
|---------|-----------------------------------------------------------------------------|
| • | Attend all committee meetings at the request of the Compensation Committee. |

|         |                                                                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Advise the Compensation Committee on market trends, regulatory issues and developments and how they may impact our executive compensation programs. |

|         |                                                                                                                            |
|---------|----------------------------------------------------------------------------------------------------------------------------|
| • | Review the compensation strategy and executive compensation programs for alignment with our strategic business objectives. |

|         |                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------|
| • | Advise on the design of executive compensation programs to ensure the linkage between pay and performance. |

|         |                                              |
|---------|----------------------------------------------|
| • | Provide market data analyses to the Company. |

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | Advise the Compensation Committee and the Board on setting the Chairman and CEO pay. |

|         |                                                                             |
|---------|-----------------------------------------------------------------------------|
| • | Review the annual compensation of the other NEOs as recommended by the CEO. |

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | Perform such other activities as requested by the Compensation Committee. |

----

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | Mr. Campbell’s compensation as interim CEO was based on the interim nature of the position. |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| ◦ | Mr. Campbell was awarded a base salary of $500,000 and was awarded 500,000 stock options as a new hire inducement grant. |

|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | This represented a significant decrease in CEO pay and a larger percentage of CEO compensation tied to the Company’s stock performance. |

|         |                                                                                                                                                                                                                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Mr. Clarke's compensation when promoted from President and COO to President and CEO is specifically structured to focus on performance over the longer term as part of the turnaround strategy.  Mr. Clarke’s compensation package was negotiated with significant input from our stockholder-nominated directors. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Mr. Clarke’s base salary was increased to $900,000 and he was awarded a significant equity grant of stock options in lieu of future grants under the Company's fiscal 2014, 2015, and 2016 LTI Plan; however, over half of the grant value is subject to a 125% premium exercise price and/or earnings before interest, taxes, depreciation, amortization, pension and other post-employment obligations ("EBITDAPO") and market share goals.  The time vesting stock options are scheduled to vest at the rate of 33-1/3% on each of the first three anniversaries, and performance vesting stock options vest as the performance goals pre-established by the Compensation Committee are satisfied. |

|         |                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | As President and Chief Operating Officer, Mr. Clarke also received a fiscal 2013 LTI Plan award comprised of performance stock options and performance share units.  The performance stock options and performance share units each have a three (3) year cliff vesting schedule. |

|         |                                                                                                                                                                                                                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | In general, our practice excludes the use of employment contracts.  However, in connection with Mr. Clarke's appointment to President and CEO, we entered into a three-year employment and services agreement with him (the "Employment Agreement").  The following summarizes the material terms of the Employment Agreement: |

|         |                          |
|---------|--------------------------|
| ◦ | Base salary of $900,000; |

|         |                                                  |
|---------|--------------------------------------------------|
| ◦ | AI Plan target of $810,000 (90% of base salary); |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| ◦ | Stock option grant of $14,262,001 (50% time based, 50% performance based): |

|         |                                                                                |
|---------|--------------------------------------------------------------------------------|
| ▪ | with a grant date value of $10,602,643 awarded in fiscal 2013 (746,665 shares) |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| ▪ | with a grant date value of $3,659,358 to be awarded in fiscal 2014 with the number of shares to be determined at the time of of grant; |

|         |                                                 |
|---------|-------------------------------------------------|
| ◦ | Life insurance equal to five times base salary; |

|         |                               |
|---------|-------------------------------|
| ◦ | Vacation equal to four weeks; |

|         |                                                |
|---------|------------------------------------------------|
| ◦ | Annual flexible perquisite payment of $46,000; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Severance provisions that provide for a severance payment equal to the sum of (i) two times Mr. Clarke's base salary, (ii) the amount of his target annual incentive award and (iii) a pro-rated portion of his annual incentive award at the time such payments are made to the employees generally, in the event that Mr. Clarke is terminated without cause or due to constructive termination; and |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Severance provisions that provide for a severance payment equal to the sum of (i) two times Mr. Clarke's base salary, (ii) the amount of his target annual incentive award and (iii) a pro-rated portion of his annual incentive award paid at the time of his termination, in the event that Mr. Clarke is terminated without cause or due to constructive termination within 24 months of a change-in-control of the Company (or during the 90 days preceding the date of a change-in-control). |

----

|                           |
|---------------------------|
|                           |  |  |  |  |  |  |  |
|                      | Contractual Terms | Annualized |
|                      | Fiscal  2013 |   | Fiscal  2014 | Fiscal  2015 | Fiscal  2013 | Fiscal  2014 | Fiscal  2015 |
| Annual Base Salary(1)     | $900,000 |   | $900,000 | $900,000 | $900,000 | $900,000 | $900,000 |
| Annual Incentive(2)       | $324,000 |   | $810,000 | $810,000 | $324,000 | $810,000 | $810,000 |
| Long-Term Incentive / COO | $2,563,033 |   | $0 | $0 | $2,563,033 | $0 | $0 |
| Long-Term Incentive / CEO | $10,602,643 | (3)  | $3,659,358 | $0 | $4,754,000 | $4,754,000 | $4,754,000 |
| Total Direct Compensation | $14,389,676 |   | $5,369,358 | $1,710,000 | $8,541,033 | $6,464,000 | $6,464,000 |

|                          |
|--------------------------|
|                          |  |  |
| AGCO Corporation         | Genuine Parts Company | PACCAR Incorporated |
| Cummins Incorporated     | Goodyear Tire and Rubber | Parker-Hannifin |
| Dana Holding Corporation | Harley Davidson, Incorporated | PPG Industries, Inc. |
| Danaher Corporation      | Illinois Tool Works | Textron, Incorporated |
| Deere and Company        | Ingersoll-Rand Co. Ltd. | TRW Automotive Holdings Corporation |
| Dover Corporation        | Lear Corporation | Whirlpool Corporation |
| Eaton Corporation        | Masco Corporation |   |
| General Dynamics         | Oshkosh Corporation |   |

----

|                           |
|---------------------------|
|                           |  |  |
| AGCO Corporation          | Illinois Tool Works | SPX |
| Borg Warner, Incorporated | Joy Global | Tenneco |
| Cummins Incorporated      | Lear Corporation | Terex |
| Dana Holding Corporation  | Masco Corporation | Textron |
| Delphi Automotive         | Oshkosh Corporation | TRW Automotive Holdings Corporation |
| Dover Corporation         | PACCAR Incorporated | Visteon |
| Goodyear Tire and Rubber  | Parker-Hannifin |   |

|         |                                                                                                   |
|---------|---------------------------------------------------------------------------------------------------|
| • | The AI Plan awards were modified to a 50/50 split between cash and restricted stock units (RSUs). |

|         |                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------|
| • | The LTI Plan was modified to be 100% performance-based on either stock price hurdles or EBITDAPO goals. |

----

|         |                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------|
| • | The CEO reviews and approves and/or adjusts all salary recommendations for executive officers other than his own. |

|         |                                                                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Compensation Committee reviews the salary for the CEO and reviews and approves the CEO’s salary recommendations for most Section 16 Officers.  The CEO does not recommend nor is he involved in decisions regarding his own compensation. |

|         |                                                                                                                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Compensation Committee then recommends and the independent members of the Board approve or adjust the salary recommendation for the CEO.  We have a detailed procedure in place for reviewing the performance of the CEO and determining the annual salary of the CEO as described in greater detail below. |

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |
| NEO                | PreviousBase Salary |   | Effective Date | Base Salary as of October 31, 2013 |   | Effective Date |
| Troy A. Clarke     | $ | 775,000 |  |   | August 27, 2012 | $ | 900,000 |  | (1)  | April 15, 2013 |
| Walter G. Borst    | -- |  |   | -- | $ | 700,000 |  | (2)  | August 1, 2013 |
| John J. Allen      | $ | 660,000 |  | (3)  | November 1, 2012 | $ | 740,000 |  | (4)  | April 16, 2013 |
| Steven K. Covey    | $ | 575,000 |  |   | January 1, 2012 | $ | 575,000 |  |   | January 1, 2012 |
| Eric Tech          | $ | 480,000 |  |   | January 1, 2012 | $ | 480,000 |  |   | January 1, 2012 |
| Lewis B. Campbell  | $ | 500,000 |  |   | August 26, 2012 | $ | — |  | (5)  | January 1, 2012 |
| Andrew J. Cederoth | $ | 575,000 |  |   | January 1, 2012 | $ | — |  | (6)  | January 1, 2012 |

|     |                                                                              |
|-----|------------------------------------------------------------------------------|
| (1) | Appointed as President and Chief Executive Officer effective April 15, 2013. |

|     |                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------|
| (2) | Appointed as Executive Vice President and Chief Financial Officer in June 2013 but his start date was August 1, 2013. |

|     |                                                  |
|-----|--------------------------------------------------|
| (3) | Base salary increase effective November 1, 2012. |

|     |                                                                                            |
|-----|--------------------------------------------------------------------------------------------|
| (4) | Promoted to Executive Vice President and Chief Operating Officer effective April 16, 2013. |

|     |                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (5) | Mr. Campbell's actual base salary as of October 31, 2013 was $0 as Mr. Campbell left the Company effective April 15, 2013. |

|     |                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------|
| (6) | Mr. Cederoth's actual base salary as of October 31, 2013 was $0 as Mr. Cederoth left the Company effective June 30, 2013. |

----

|         |                                                      |
|---------|------------------------------------------------------|
| • | Rebuilt and strengthened the senior leadership team; |

|         |                                                |
|---------|------------------------------------------------|
| • | Met all key dates related to product launches; |

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | Received EPA certifications for Navistar MaxxForce 13L with SCR; |

|         |                   |
|---------|-------------------|
| • | Improved quality; |

|         |                                                                                      |
|---------|--------------------------------------------------------------------------------------|
| • | Engaged dealers and increased confidence in organizational direction and leadership; |

|         |                                                |
|---------|------------------------------------------------|
| • | Completed various ROIC fix/close/sell actions; |

|         |                                              |
|---------|----------------------------------------------|
| • | Significantly exceeded structural cost goal; |

|         |                              |
|---------|------------------------------|
| • | Reduced working capital; and |

|         |                                                   |
|---------|---------------------------------------------------|
| • | Created and communicated a vision for the future. |

|         |                                                         |
|---------|---------------------------------------------------------|
| • | Alignment of actions with drivers of stockholder value. |

|         |                                                   |
|---------|---------------------------------------------------|
| • | Achievement of key financial and operation goals. |

|         |                                                                            |
|---------|----------------------------------------------------------------------------|
| • | Providing employees with line of sight and progress toward specific goals. |

|         |                                                                                            |
|---------|--------------------------------------------------------------------------------------------|
| • | Performance based on four (4) performance financial and non-financial measures and weights |

|         |                                |
|---------|--------------------------------|
| ◦ | Total manufacturing cash (30%) |

|         |              |
|---------|--------------|
| ◦ | EBITDA (30%) |

|         |                                 |
|---------|---------------------------------|
| ◦ | Successful quality launch (25%) |

|         |                                    |
|---------|------------------------------------|
| ◦ | Company-wide SG&A savings(15%) |

|         |                                           |
|---------|-------------------------------------------|
| • | AI Plan target opportunity reduced to 75% |

----

|         |                                                                  |
|---------|------------------------------------------------------------------|
| • | AI Plan awards to be paid as a 50/50 split between cash and RSUs |

|         |                                     |
|---------|-------------------------------------|
| • | No individual performance component |

|                |
|----------------|
|                |  |
| Goal           | Annual Incentive ($) |
| Threshold      | 1,045M |
| Target         | 1,285M |
| Distinguished  | 1,435M |
| Actual Results | 1,056M |

|                |
|----------------|
|                |  |
| Goal           | Annual Incentive ($) |
| Threshold      | 260M |
| Target         | 465M |
| Distinguished  | 620M |
| Actual Results | (401)M |

|                |
|----------------|
|                |  |
| Goal           | Annual Incentive ($) |
| Threshold      | 160M |
| Target         | 200M |
| Distinguished  | 230M |
| Actual Results | 248M |

|                                                                   |
|-------------------------------------------------------------------|
|                                                                   |  |
| Goal                                                              | Actual Results |
| Meeting launch date targets for ProStar ISX and ProStar MxF13 SCR | Met Goal |
| 80% Coverage of Engine Applications                               | Met Goal |
| Quality measured by warranty claims for 90-day in-service data    | Met goal for ProsStar ISX; Final data not available for ProStar MxF13 SCR |

----

|                        |
|------------------------|
|                        |  |  |
| Named ExecutiveOfficer | Target as a $ or% of Base Salary | 2013 AI AmountEarned |
| Troy A. Clarke         | 90% | $324,000 |
| Walter G. Borst (1)    | 75% | $525,000 |
| John J. Allen          | 75% | $222,000 |
| Steven K. Covey        | 65% | $149,500 |
| Eric Tech              | 65% | $124,800 |
| Lewis B. Campbell      | $1,000,000 | $— |
| Andrew J. Cederoth (2) | 75% | $115,000 |

|     |                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------|
| (1) | Per Mr. Borst's employment offer, Mr. Borst's AI Plan award for fiscal 2013 is guaranteed at 100% of standard Target. |

|     |                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Mr. Cederoth's fiscal 2013 pro-rata AI Plan award due to his separation from the Company effective June 30, 2013. In accordance with  the terms of the 2013 AI Plan, 50% ($57,500) was paid in cash and 50% to be paid in RSUs was forfeited. |

|         |                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Manufacturing cash (40%) - Short-term liquidity is key to continuing operations.  Manufacturing cash is a metric that the entire organization can target since it encompasses both working capital and capital expenditures.  In addition, Navistar is continuing to work on improving the balance sheet and the cash metric is important in that effort. |

|         |                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------|
| • | Market share (20%) -  In our capital intensive industry, market share is key to both operational efficiency and long-term viability. |

|         |                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Earnings (40%) -  To maintain a long-term value proposition for stockholders, Navistar needs to balance market share goals with profitability.  EBITDA is a metric we chose to measure performance against. |

|         |                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------|
| • | Aligning executive and stockholder interests by tying compensation to share price appreciation; |

|         |                                        |
|---------|----------------------------------------|
| • | Build long-term stockholder value; and |

|         |                              |
|---------|------------------------------|
| • | Cultivating stock ownership. |

|         |                                                                      |
|---------|----------------------------------------------------------------------|
| • | Performance Stock Options with stock price hurdles (described below) |

|         |                                                                     |
|---------|---------------------------------------------------------------------|
| • | Performance Share Units based upon EBITDAPO goals (described below) |

----

|         |                                                                                                                                                                                         |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The performance-vesting stock options with stock price hurdles cliff vest after three (3) years subject to the following award payout schedule and have a seven (7) year exercise term: |

|                                                                       |
|-----------------------------------------------------------------------|
|                                                                       |  |
| Stock Price (20-consecutive day average during 3-year vesting period) | Percent of Stock Options Vested |
| $38.00 (approximately 40% appreciation)                               | 100% (attained) |
| $35.00 (approximately 29% appreciation)                               | 90% (attained) |
| $32.00 (approximately 18% appreciation)                               | 80% (attained) |
| <$32.00 ($27.24 stock price at grant)                              | —% |

|                             |
|-----------------------------|
|                             |  |  |  |
|                        | Threshold | Target | Maximum |
| 2015 EBITDAPO ($Mil)        | $990 | $1,175 | $1,365 |
| Award Payout as % of Target | 50% | 100% | 200% |

|         |                                                                                                                                                                                                                                                         |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | As previously noted, the President and CEO will not participate in the LTI Plan for fiscal 2014, 2015, and 2016.  Per the terms of Mr. Clarke's agreement, he is not eligible for additional LTI Plan awards for the duration of his current agreement. |

|                          |
|--------------------------|
|                          |  |  |  |
| NEO                      | Performance Stock Options | Share-SettledPerformance Shares(EBITDAPO Goals at Target) | Targeted EconomicValue |
| Troy A. Clarke (1)  | 102,796 | 47,259 | $2,500,000 |
| Walter G. Borst (2)      | 58,789 | 28,393 | $2,000,000 |
| John J. Allen            | 71,957 | 33,081 | $1,750,000 |
| Steven K. Covey          | 32,895 | 15,123 | $800,000 |
| Erich Tech               | 32,895 | 15,123 | $800,000 |
| Lewis B. Campbell (3)    | — | — | $— |
| Andrew J. Cederoth (4)   | 41,118 | 18,904 | $1,000,000 |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | In addition to the amounts shown on this table, in connection with Mr. Clarke's promotion to President and CEO, effective April 15, 2013, he received a mix of time-vested stock options that vest as to 1/3 of the shares on each of the first three anniversary dates of the grant, and performance stock options that vest as the performance goals pre-established by the Compensation Committee are satisfied. |

|     |                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Mr. Borst's stock options are time based options that vest as to 1/3 of the shares on each of the first three anniversary dates of the grant. |

|     |                                                                        |
|-----|------------------------------------------------------------------------|
| (3) | Mr. Campbell did not participate in the 2013 LTI Plan for fiscal 2013. |

|     |                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------|
| (4) | Mr. Cederoth's awards were forfeited on July 1, 2013, due to his separation from the Company on June 30, 2013. |

----

|         |                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A requirement that executives retain a certain amount of shares received pursuant to Company executive compensation programs (75% for the CEO and 50% for other executives) until the executive satisfies the stock ownership guideline multiples described above. |

|         |                                                                                                                                                                                                                                                      |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A one-year holding period (75% for the CEO and 50% for other executives for one year) of shares received pursuant to Company executive compensations programs after the executive satisfies the stock ownership guideline multiples described above. |

|         |                                                                           |
|---------|---------------------------------------------------------------------------|
| • | Elimination of required time frame to fulfill stock ownership guidelines. |

|         |                                                                                                                                        |
|---------|----------------------------------------------------------------------------------------------------------------------------------------|
| • | Elimination of premium shares granted as an inducement to executives to fulfilling stock ownership guidelines on an accelerated basis. |

----

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |
| NEO                | Life Insurance(1) | Executive Physical Program(2) | Executive Flexible Perquisite Program(3) | Pension /Retirement/401(k) Plans(4) | Retiree Medical Benefits and Retiree Life Benefits(5) |
|               |   |   |   | RPSE | MRO | RAP | SRAP | SERP |   |
| Troy A. Clarke     | ü | ü | ü |   |   | ü | ü | ü |   |
| Walter G. Borst    | ü | ü | ü |   |   | ü | ü | ü |   |
| John J. Allen (6)  | ü | ü | ü | ü | ü | ü |   | ü | ü |
| Steven K. Covey(6) | ü | ü | ü | ü | ü | ü |   | ü | ü |
| Eric Tech          | ü | ü | ü |   |   | ü | ü | ü |   |
| Lewis B. Campbell  | ü | ü | ü |   |   |   |   |   |   |
| Andrew J. Cederoth | ü | ü | ü | ü |   | ü | ü | ü | ü |

|     |                                                                                                        |
|-----|--------------------------------------------------------------------------------------------------------|
| (1) | Life Insurance. We provide our executives Company-paid life insurance equal to five times base salary. |

|     |                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Executive Physical Exam.  This program provides a Company-paid physical when an executive is first hired or promoted to an executive position.  This program has been discontinued effective January 1, 2013. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Executive Flexible Perquisites.  We maintain a flexible perquisites program for our executives, which we believe is competitive and consistent with our overall compensation program, and which assists us in attracting and retaining our executive officers.  The Executive Flexible Perquisites Program provides a cash stipend to each of our NEOs, the amount of which varies by executive, based upon the executive’s organization level.  The purpose of the cash stipend is to provide each of our NEOs with the ability to choose the perquisite that best fits his or her professional and personal situation.  This program is in lieu of providing and administering such items as car leases, tax preparation, financial planning, and home security systems.  We do not require the NEOs to substantiate the expenses for which they use this stipend.  The annual perquisite amount is paid prospectively in equal installments in May and November. |

|                         |
|-------------------------|
|                         |  |  |
| Named Executive Officer | Annual FlexiblePerquisite Payment ($) |
| Troy A. Clarke(a)       | 46,000 |  |
| Walter G. Borst (b)     | 37,000 |  |
| John J. Allen           | 37,000 |  |
| Steven K. Covey         | 28,000 |  |
| Eric Tech               | 28,000 |  |
| Lewis B. Campbell (c)   | 46,000 |  |
| Andrew J. Cederoth      | 37,000 |  |

|     |                                                                                                                                                                                                                                                                                               |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | Mr. Clarke's annual flexible perquisite payment is $46,000.  In fiscal 2013, he received $42,250 which includes $18,500 in November 2012 as President and Chief Operating Officer and $23,000 in May 2013 plus $750 for one month of retroactive payment for April 2013 as President and CEO. |

|     |                                                                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | Mr. Borst start date was August 1, 2013 and as such he did not receive any flexible perquisite payments in fiscal 2013.  Mr. Borst will receive three (3) months retroactive payment with his November 2013 executive flexible perquisite payment. |

|     |                                                                                                                                                                                                                                                                 |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (c) | Mr. Campbell received flexible perquisite payments in November 2012 in the amount of $30,667 which includes $23,000 plus $7,667 for two months of retroactive payments for September and October 2012.  Mr. Campbell left the Company effective April 15, 2013. |

----

|     |                                 |
|-----|---------------------------------|
| (4) | Pension/Retirement/401(k) Plans |

|         |                                                                                                                                                                                  |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Retirement Plan for Salaried Employees (“RPSE”).  This is our tax-qualified defined benefit pension plan for salaried employees hired prior to January 1, 1996. |

|         |                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Managerial Retirement Objective Plan (“MRO”).  The MRO is our unfunded non-qualified defined benefit pension plan designed primarily to restore the benefits that executives, including our NEOs, would otherwise have received if the Internal Revenue Code limitations had not applied to the RPSE. |

|         |                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Retirement Accumulation Plan (“RAP”).  This is our tax-qualified defined contribution/401(k) plan for salaried employees. Our NEOs receive age-weighted contributions and/or matching contributions depending on their eligibility for other retirement income programs and retiree medical coverage. |

|         |                                                                                                                                                                                                                                                                                            |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Supplemental Retirement Accumulation Plan (“SRAP”).  This is our non-qualified deferred compensation plan designed primarily to restore the contributions that participants would otherwise have received if the Internal Revenue Code limitations had not applied to the RAP. |

|         |                                                                                                                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Supplemental Executive Retirement Plan (“SERP”).  This is designed as a pension supplement to attract and retain key executives. The SERP is unfunded and is not qualified for tax purposes. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Retiree Medical Benefits and Retiree Life Insurance Coverage. Certain represented and non-represented employees, including certain NEOs, are eligible for retiree medical benefits and retiree life insurance coverage as part of a 1993 court approved settlement restructuring of our postretirement health care and life insurance benefits.    Non-represented employees hired on or after January 1, 1996, including our NEOs other than Mr. Cederoth, Mr. Allen and Mr. Covey are not eligible for retiree medical benefits or retiree life insurance coverage under the 1993 settlement agreement or any other program. |

|     |                                                                                                                                                                                                                |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Effective January 1, 2014, Messrs. Allen and Covey are eligible for the SRAP.  Accruals under the MRO were frozen as of December 31, 2013, therefore, allowing contributions to the SRAP for these executives. |

----

|                                                                                              |
|----------------------------------------------------------------------------------------------|
|                                                                                              |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Name and PrincipalPosition                                                         | Year |   | Salary($) | Bonus($) |   | StockAwards($)(1) |   | OptionAwards($)(2) |   | Non-EquityIncentive PlanComp($)(3) | Change inPension Value &Non-QualifiedDeferredCompEarnings ($)(4) | All OtherComp ($)(5) |   | Total ($) |
| Troy A. Clarke                                                                               | 2013 | (6) | 843,182 |  | — |  |  | 1,333,352 |  | (7) | 11,878,341 |  |  | 324,000 |  | 1,554 |  | 147,429 |  |  | 14,527,858 |  |
| President and Chief Executive Officer                                                        | 2012 |  | 659,692 |  | — |  |  | 1,209,464 |  | (8) | 576,090 |  |  | — |  | 1,451,329 |  | 439,973 |  |  | 4,336,548 |  |
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |   |
| Walter G. Borst                                                                              | 2013 | (9) | 175,000 |  | 500,000 |  | (10) | 2,949,722 |  | (11) | 1,000,001 |  |  | 525,000 |  | 1,439,225 |  | 1,332,006 |  |  | 7,920,954 |  |
| Executive Vice President and Chief Financial Officer                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |   |
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| John J. Allen                                                                                | 2013 | (12) | 703,333 |  | — |  |  | 1,906,663 |  | (13) | 892,986 |  |  | 222,000 |  | — |  | 53,271 |  |  | 3,778,253 |  |
| Executive Vice President and Chief Operating Officer                                         | 2012 |  | 588,725 |  | — |  |  | 89,910 |  |  | 480,940 |  |  | — |  | 1,764,838 |  | 62,368 |  |  | 2,986,781 |  |
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Steven K. Covey                                                                              | 2013 |  | 575,000 |  | — |  |  | 411,951 |  |  | 408,227 |  |  | 149,500 |  | — |  | 43,238 |  |  | 1,587,916 |  |
| Senior Vice President,  General Counsel and Chief Ethics Officer                             | 2012 |  | 570,600 |  | — |  |  | 64,800 |  |  | 346,000 |  |  | — |  | 1,821,004 |  | 41,108 |  |  | 2,843,512 |  |
|                                                                                         | 2011 |  | 548,600 |  | — |  |  | 753,840 |  | (14) | 528,000 |  |  | 344,823 |  | 1,214,931 |  | 39,565 |  |  | 3,429,759 |  |
|                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Eric Tech                                                                                    | 2013 |  | 480,000 |  | — |  |  | 411,951 |  |  | 408,227 |  |  | 124,800 |  | 4,334 |  | 85,418 |  |  | 1,514,730 |  |
| Senior Vice President, Strategy & Planning and President Global and Specialty Businesses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Lewis B. Campbell                                                                            | 2013 | (15) | 208,333 |  | — |  |  | — |  |  | — |  |  | — |  | — |  | 1,323,238 |  |  | 1,531,571 |  |
| Former Executive Chairman and Chief Executive Officer                                        | 2012 | (16) | 94,203 |  | 250,000 |  | (17) | — |  |  | 5,335,000 |  | (18) | — |  | — |  | 88,377 |  |  | 5,767,580 |  |
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Andrew J. Cederoth                                                            | 2013 | (19) | 383,333 |  | — |  |  | 525,345 |  | (20) | 510,274 |  |  | 115,000 |  | 31,051 |  | 2,177,912 |  |  | 3,742,915 |  |
| Former Executive Vice President and Chief Financial Officer                                  | 2012 |  | 564,750 |  | — |  |  | 142,325 |  |  | 480,940 |  |  | — |  | 597,094 |  | 94,832 |  |  | 1,879,941 |  |
|                                                                                         | 2011 |  | 513,500 |  | — |  |  | 1,079,641 |  |  | 926,796 |  |  | 372,416 |  | 34,635 |  | 220,525 |  |  | 3,147,513 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The amounts reported in this column reflect the aggregate fair value of stock-based awards (other than stock options) granted in the year computed in accordance with FASB ASC Topic 718, except that in compliance with SEC requirements, for awards that are subject to performance conditions, we reported the value at the grant date based upon the probable outcome of such conditions.  These amounts are not paid to or realized by the officer.  The fair values of stock-based awards are estimated using the average price of our stock on the grant date.  Stock-based awards settle in common stock on a one-for-one basis.  The grant date fair values of each individual stock based award in fiscal 2013 (including restricted stock units (RSUs) and premium share units (PSUs) are set forth in the 2013 Grant of Plan Based Awards table of this proxy statement.  Additional information about these values is included in Note 19 to our audited financial statements included in our Form 10-K for fiscal 2013.  A description of PSUs and RSUs appears in the narrative text under the 2013 Grants of Plan-Based Awards table of this proxy statement.  In February 2013, we granted performance shares to our NEO's, except for Mr. Campbell who received no equity awards in fiscal 2013 and Mr. Borst who received a performance award in August 2013.  The performance shares conditions are measured at the end of the third fiscal year following the grant date and vest as long as performance conditions and service requirements have been met.  Our NEO's earn performance shares only if EBITDAPO meets certain target levels.  Potential payouts range from 0% to 200% of the target values of these awards.  The amounts in this table assume achievement of the target level of performance (100% payout) for such awards.  Assuming performance at the highest level, the aggregate grant date values of the stock awards for each of our NEO's who received a performance share award were as follows: $2,574,670 for Mr. Clarke; $2,000,003 for Mr. Borst; $1,029,890 for Mr.Cederoth; $1,802.253 for Mr. Allen; $823,901 for Mr. Covey; and $823,901 for Mr. Tech. |

|     |                                                                                                                                                                                                                                                                                          |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The amounts reported in this column reflect the aggregate fair value of stock options, granted in the year computed in accordance with FASB ASC Topic 718, except that in compliance with SEC requirements, for awards that are subject to performance conditions, we reported the value |

----

|     |                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | The amounts reported in this column represent the fiscal 2013 AI Plan award payment based on 40% of standard target. Awards will be paid in early February 2014 as a mix of 50% cash and 50% cash-settled RSUs unless the Company elects to grant share-settled RSUs. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | This amount represents the change in the actuarial present value of the RPSE and MRO for Messrs. Allen and Covey. This amount also represents the change in actuarial present value of the SERP and certain interest on the SRAP for Messrs. Clarke and Tech. For Mr. Borst, the amount represents the actuarial present value of the SERP.  For Mr. Cederoth the amount represents the change in actuarial present value of the RPSE and SERP as well as an interest crediting rate of 7.5% per annum compounded on a daily basis.  This is the rate used to design the SRAP as a comparable replacement for the MRO.  The interest crediting rate constitutes an "above-market interest rate" under the Internal Revenue Code. |

|     |                                                                                                                                                                                                                                                                                                      |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | This includes such items as flexible perquisites cash allowances, Company-paid life and AD&D insurance premiums, Company contributions to the RAP and the SRAP, taxable spouse travel, non-cash awards, club memberships, executive physicals and severance payments to the NEOs in fiscal 2013. |

|          |
|----------|
|          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| NEO      | Flexible Perquisites | Company Paid Life and AD&D Insurance | RAP | SRAP | Relocation |   | Severance |   | Other Lump Sum |   | Tax Gross-up or Reimbursement |   | Other | All Other Comp Total |
| Clarke   | $ | 42,250 |  | $ | 14,182 |  | $ | 25,325 |  | $ | 64,276 |  | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 1,396 |  | $ | 147,429 |  |
| Borst    | $ | — |  | $ | 1,232 |  | $ | 14,875 |  | $ | — |  | $ | 15,899 |  | (a) | $ | — |  |   | $ | 1,300,000 |  | (b) | $ | — |  |   | $ | — |  | $ | 1,332,006 |  |
| Allen    | $ | 37,000 |  | $ | 9,905 |  | $ | — |  | $ | — |  | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |  | $ | 6,366 |  | $ | 53,271 |  |
| Covey    | $ | 28,000 |  | $ | 14,688 |  | $ | — |  | $ | — |  | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | 550 |  | $ | 43,238 |  |
| Tech     | $ | 28,000 |  | $ | 4,162 |  | $ | 23,525 |  | $ | 27,750 |  | $ | — |  |   | $ | — |  |   | $ | — |  |   | $ | — |  |  | $ | 1,981 |  | $ | 85,418 |  |
| Campbell | $ | 30,667 |  | $ | 18,519 |  | $ | — |  | $ | — |  | $ | 23,423 |  | (c) | $ | — |  |   | $ | 1,250,000 |  | (d) | $ | — |  |   | $ | 629 |  | $ | 1,323,238 |  |
| Cederoth | $ | 37,000 |  | $ | 3,982 |  | $ | 12,750 |  | $ | 108,727 |  | $ | — |  |   | $ | 2,012,500 |  | (e) |   |   | $ | — |  |   | $ | 2,953 |  | $ | 2,177,912 |  |

|    |                                                                                                                                                                                 |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| d. | Mr. Campbell received a lump sum payment in the amount of $1,250,000 consisting of a retention payment and payment in lieu of payments under the Company's fiscal 2013 AI Plan. |

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| e. | Mr. Cederoth was terminated on June 30, 2013 and received a severance payment in the amount of $2,012,500.  The severance amount paid was in accordance with his ESA effective January 1, 2010.  In connection with his termination the total number of performance shares eligible for payout will be pro-rated based on his length of service during the performance period. All of his unvested stock awards, in addition to performance shares granted in fiscal 2013 were forfeited. |

|     |                                                                         |
|-----|-------------------------------------------------------------------------|
| (6) | Mr. Clarke was appointed to President and CEO effective April 15, 2013. |

|     |                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Includes the grant date fair value of 1,263 PSUs that were issued on May 23, 2013, the fair market value of our stock on the date of grant was $36.435. |

|     |                                                                                                                                                                                                          |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | In connection with Mr. Clarke’s promotion to President and Chief Operating Officer, Mr. Clarke received a restricted stock grant which vests only upon the third anniversary of the date of grant. |

|     |                                            |
|-----|--------------------------------------------|
| (9) | Mr. Borst's start date was August 1, 2013. |

|      |                                                                                      |
|------|--------------------------------------------------------------------------------------|
| (10) | This amount represents Mr. Borst's cash sign on bonus paid or earned in fiscal 2013. |

|      |                                                                                                                                                                                                                                                                         |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11) | Includes the grant date fair value of 45,074 RSUs granted on August 1, 2013, the fair market value of our stock on the date of grant was $35.22 and 10,366 PSUs that were granted on August 1, 2013, the fair market value on the date of grant was $34.9425 per share. |

|      |                                                                                                           |
|------|-----------------------------------------------------------------------------------------------------------|
| (12) | Mr. Allen was appointed to Executive Vice President and Chief Operating Officer effective April 16, 2013. |

|      |                                                                                                                                                     |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| (13) | Includes the grant date fair value of 36,914 RSUs granted on February 19, 2013, the fair market value of our stock on the date of grant was $27.24. |

|      |                                                                                                                                                                                 |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (14) | Includes the grant date fair value of 1,200 PSUs that were issued on January 13, 2011.  The average of the high/low of our stock on the date of the grant was $63.20 per share. |

|      |                                                            |
|------|------------------------------------------------------------|
| (15) | Mr. Campbell separated from the Company on April 15, 2013. |

|      |                                                            |
|------|------------------------------------------------------------|
| (16) | Mr. Campbell's date of hire was effective August 26, 2012. |

----

|      |                                                                                                     |
|------|-----------------------------------------------------------------------------------------------------|
| (17) | This amount represents Mr. Campbell's first of two installments of his signing and retention bonus. |

|      |                                                                                                                                                                                                                                              |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (18) | In connection with Mr. Campbell's appointment as Chief Executive Officer, the Company entered into an Employment and Services Agreement with him in which Mr. Campbell was awarded a new hire inducement grant of 500,000 stock options. |

|      |                                                                                                                                                                                                |
|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (19) | Mr. Cederoth separated from the Company effective June 30, 2013.  In connection with his separation, all of his unvested stock awards and stock options granted in fiscal 2013 were forfeited. |

|      |                                                                                                                                                           |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
| (20) | Includes the grant date fair value of 474 PSUs that were issued on December 15, 2012, the fair market value of our stock on the date of grant was $21.94. |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               |   | Estimated Future Payouts Under Non-Equity Incentive Plan Awards (1) | Estimated Future Payouts Under Equity Incentive Plan Awards(2) | Estimated Future PayoutsUnder Equity Incentive Plan Awards(3) | All OtherStockAwards:Number ofShares ofStock orUnits# (4)(5) | All OtherOptionAwards:Number ofSecuritiesUnderlyingOptions (#)(6) | Exerciseor BasePrice OfOptionAwards($/Sh)(7) | Grant DateFair Valueof Stockand OptionAwards ($)(8) |
| Name                                               | GrantDate | Threshold($) | Target ($) | Maximum($) | Threshold(#) | Target (#) | Maximum(#) | Threshold(#) | Target(#) | Maximum (#) |
| Troy A. Clarke                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - Cash | 12/16/2013 | 75,938 |  | 303,750 |  | 607,500 |  |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - RSU  | 2/3/2014 |   |   |   | 75,938 |  | 303,750 |  | 607,500 |  |   |   |   |   |   |   |   |
|      Stock Option         | 2/19/2013 |   |   |   |   |   |   | 82,237 |  | 92,516 |  | 102,796 |  |   |   | $27.24 | $1,275,698 |
|      Performance Unit     | 2/19/2013 |   |   |   |   |   |   | 23,630 |  | 47,259 |  | 94,518 |  |   |   |   | 1,287,335 |  |
|      Stock Option         | 4/22/2013 |   |   |   |   |   |   |   |   |   |   | 373,333 |  | 30.64 |  | 5,585,062 |  |
|      Stock Option         | 4/22/2013 |   |   |   |   |   |   |   |   |   |   | 224,000 |  | 38.30 |  | 2,925,440 |  |
|      Stock Option         | 4/22/2013 |   |   |   |   |   |   | 37,333 |  | 74,666 |  | 149,332 |  |   |   | 30.64 |  | 1,117,003 |  |
|      Stock Option         | 4/22/2013 |   |   |   |   |   |   | 37,333 |  | 74,666 |  | 149,332 |  |   |   | 38.30 |  | 975,138 |  |
|      PSU                  | 5/23/2013 |   |   |   |   |   |   |   |   |   | 1,263 |  |   |   | 46,017 |  |
| Walter G. Borst                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - Cash | 12/16/2013 | 131,250 |  | 525,000 |  | 1,050,000 |  |   |   |   |   |   |   |   |   |   |   |
|      Stock Option         | 8/1/2013 |   |   |   |   |   |   |   |   |   |   | 58,789 |  | 35.22 |  | 1,000,001 |  |
|      RSUs                 | 8/1/2013 |   |   |   |   |   |   |   |   |   | 45,074 |  |   |   | 1,587,506 |  |
|      Performance Unit     | 8/1/2013 |   |   |   |   |   |   | 14,197 |  | 28,393 |  | 56,786 |  |   |   |   | 1,000,001 |  |
|      PSU                  | 8/1/2013 |   |   |   |   |   |   |   |   |   | 10,366 |  |   |   | 362,214 |  |
| John J. Allen                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - Cash | 12/16/2013 | 52,031 |  | 208,125 |  | 416,250 |  |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - RSU  | 2/3/2014 |   |   |   | 52,031 |  | 208,125 |  | 416,250 |  |   |   |   |   |   |   |   |
|      Stock Option         | 2/19/2013 |   |   |   |   |   |   | 57,566 |  | 64,761 |  | 71,957 |  |   |   | 27.24 |  | 892,986 |  |
|      Performance Unit     | 2/19/2013 |   |   |   |   |   |   | 16,541 |  | 33,081 |  | 66,162 |  |   |   |   | 901,126 |  |
|      RSU                  | 2/19/2013 |   |   |   |   |   |   |   |   |   | 36,914 |  |   |   | 1,005,537 |  |
| Steven K. Covey                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - Cash | 12/16/2013 | 40,430 |  | 161,719 |  | 323,438 |  |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - RSU  | 2/3/2014 |   |   |   | 40,430 |  | 161,719 |  | 323,438 |  |   |   |   |   |   |   |   |
|      Stock Option         | 2/19/2013 |   |   |   |   |   |   | 26,316 |  | 29,606 |  | 32,895 |  |   |   | 27.24 |  | 408,227 |  |
|      Performance Unit     | 2/19/2013 |   |   |   |   |   |   | 7,562 |  | 15,123 |  | 30,246 |  |   |   |   | 411,951 |  |
| Eric Tech                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - Cash | 12/16/2013 | 33,750 |  | 135,000 |  | 270,000 |  |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - RSU  | 2/3/2014 |   |   |   | 33,750 |  | 135,000 |  | 270,000 |  |   |   |   |   |   |   |   |
|      Stock Option         | 2/19/2013 |   |   |   |   |   |   | 26,316 |  | 29,606 |  | 32,895 |  |   |   | 27.24 |  | 408,227 |  |
|      Performance Unit     | 2/19/2013 |   |   |   |   |   |   | 7,562 |  | 15,123 |  | 30,246 |  |   |   |   | 411,951 |  |
|  Lewis B. Campbell                            | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Andrew J. Cederoth (9)                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      AI Plan Award - Cash | 12/16/2013 | 40,430 |  | 161,719 |  | 323,438 |  |   |   |   |   |   |   |   |   |   |   |
|      Stock Option         | 2/19/2013 |   |   |   |   |   |   | 32,894 |  | 37,006 |  | 41,118 |  |   |   | 27.24 |  | 510,274 |  |
|      Performance Unit     | 2/19/2013 |   |   |   |   |   |   | 9,452 |  | 18,904 |  | 37,808 |  |   |   |   | 514,945 |  |
|      PSU                  | 12/15/2012 |   |   |   |   |   |   |   |   |   | 474 |  |   |   | 10,400 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Under the terms of Company's fiscal 2013 AI Plan, 50% of the award was to be paid in cash and 50% of the award was to be paid in cash or share settled RSUs, at the Company's discretion. The amounts set forth in this column represent the 50% cash portion of estimated payments to be awarded under the fiscal 2013 AI Plan.  Amounts indicated are adjusted to reflect fiscal 2013 adjusted AI Plan target from 100% to 75%.  Per Mr. Borst's employment offer, his fiscal 2013 AI Plan award is guaranteed at 100% standard target. For additional information regarding such awards, see the Annual Incentives section of this proxy statement and footnote 3 to the Summary Compensation Table. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Under the terms of the Company's fiscal 2013 AI Plan, 50% of the award was to be paid in cash and 50% of the award was to be paid in cash or share settled RSUs, at the Company's discretion.  The amounts set forth in this column represent the grant date fair value of the RSU award. The actual number of shares to be granted will be determined at the time the RSUs are issued.  The RSUs will vest as to 1/3rd of the shares granted on each of the first three anniversaries of the date of grant so that in three years the award will be 100% vested. Per Mr. Borst's employment offer, 100% of his fiscal 2013 AI Plan award is to be paid in cash.  Mr. Cederoth forfeited his rights to the RSU portion of the AI Plan award payment upon his separation from the Company on June 30, 2013.  The Compensation Committee approved the RSU payment on December 16, 2013, however the grant date was determined to be February 3, 2014. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Performance Stock Options and EBITDAPO Performance Share Units.  The amounts shown represent the threshold, target and maximum number of performance stock options or EBITDAPO performance shares that we awarded in fiscal 2013 to the NEO’s under our 2013 PIP as we describe more fully under the Long-Term Incentives section of this proxy statement.  The EBITDAPO performance shares will vest and be earned based upon the achievement of certain EBITDAPO performance goals for the period beginning on November 1, 2014 and ending on October 31, 2015 ("FY 2015"), provided that the NEO is continuously employed at the Company through the performance period.  If EBITDAPO performance goals are met we intend to pay the awards in shares of our common stock. |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Premium Share Units. The amounts shown represent the number of PSUs awarded to the NEOs in the fiscal year. PSUs represent shares of Common Stock granted pursuant to our Executive Stock Ownership Program as in effect during fiscal 2013 and are based on the attainment of certain stock ownership thresholds.  PSUs generally vest over a three year period with 1/3rd of the award vesting on each of the first three anniversaries of the date on which they are awarded.  PSUs do not have an exercise price and are settled only for shares of our Common Stock on a one-for-one basis.  Settlement of PSUs will occur within 10 days after an NEO’s separation of employment or at such later date as required by Internal Revenue Code Section 409A. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | Restricted Stock Units.  Represents the number of shares of RSUs granted to Mr. Borst in connection with being hired as the Company's Chief  Financial Officer and the number of shares of restricted stock units granted to Mr. Allen as a retention grant.  Mr. Borst's RSUs vest as to 1/3rd of the shares granted on each anniversary date of the award, so that in three years they will be 100% vested.  Mr. Allen's RSUs vest at to 100% of the shares on the 3rd anniversary of the date of grant. |

|     |                                                                                                                                                                                                                                                                                                                              |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Stock Options. The amounts shown represent the number of stock options granted in the fiscal year.  The stock options generally vest over a three year period with 1/3 vesting on each of the first three anniversaries of the date on which they are awarded. The stock options expire seven years after the date of grant. |

|     |                                                                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | The exercise price per share is the fair market value (closing price) of Common Stock on the date of grant, except for two stock option awards granted to Mr. Clarke that were granted at a 25% premium above the closing price. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | The amounts shown do not reflect realized compensation by the NEOs.  The amounts shown represent the value of the stock option, performance stock options RSUs, EBITADPO performance shares and PSU awards granted to the NEO’s based on the grant date fair value of the awards as determined in accordance with FASB ASC Topic 718.  The EBITDAPO performance share awards are reflected at the target payout level. If the EBITADPO performance share awards were reflected at maximum payout levels, the amounts in this column would be $2,574,670 for Mr. Clarke, $2,000,003 for Mr. Borst, $1,802,253 for Mr. Allen, $823,901 for Mr. Covey, $823,901 for Mr. Tech and $1,029,890 for Mr. Cederoth.  The two performance stock options granted to Mr. Clarke on April 22, 2013 (one with an exercise price at fair market value (the closing price on the date of grant) one with an exercise price at a 25% premium above the fair market value) are reflected at the target payout level, if these performance stock options were reflected at maximum payout levels the amounts in this column would be $2,234,007 for the performance options granted with an exercise price at fair market value and $1,950,276 for the performance options granted with an excise price set at 25% above the fair market value. |

|     |                                                                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9) | In connection with Mr. Cederoth's separation from the Company on June 30, 2013, all of his stock awards, performance stock option awards, PSUs granted in fiscal 2013, and the portion of the fiscal 2013 AI Plan award payable in RSUs were forfeited. |

----

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|          | Option Awards (1) (4) | Stock Awards |
| Name               | Number of SecuritiesUnderlying UnexercisedOptions (#) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | OptionExercisePrice ($) | OptionExpirationDate | Number ofShares orUnits ofStockHeld thatHave NotVested(#)(2)(4) | MarketValue ofShares orUnitsof StockHeld thatHave NotVested ($) | EquityIncentive PlanAwards:Number ofUnearnedShares, Unitsor OtherRights ThatHave NotVested (#)(3)(4) | EquityIncentive PlanAwards:Market orPayout Valueof UnearnedShares, Unitsor OtherRights ThatHave NotVested($) |
| Exercisable        | Unexercisable |
| Troy A. Clarke     | 18,533 |  | 9,267 |  | — |  | 58.915 |  | 12/14/2017 |  | 4,286 |  | 154,982 |  | 11,100 |  | 401,376 |  |
|               | 11,100 |  | 22,200 |  | — |  | 37.200 |  | 12/19/2018 |  | 41,445 |  | 1,498,651 |  | 13,300 |  | 480,928 |  |
|               | — |  | — |  | 102,796 |  | 27.240 |  | 2/19/2020 |  | — |  | — |  | 47,259 |  | 1,708,885 |  |
|               | — |  | 373,333 |  | — |  | 30.640 |  | 4/22/2020 |  | — |  | — |  | — |  | — |  |
|               | — |  | 224,000 |  | — |  | 38.300 |  | 4/22/2020 |  | — |  | — |  | — |  | — |  |
|               | — |  | — |  | 74,666 |  | 30.640 |  | 4/22/2020 |  | — |  | — |  | — |  | — |  |
|               | — |  | — |  | 74,666 |  | 38.300 |  | 4/22/2020 |  | — |  | — |  | — |  | — |  |
| Total:             | 29,633 |  | 628,800 |  | 252,128 |   |   | 45,731 |  | 1,653,633 |  | 71,659 |  | 2,591,189 |  |
| Walter G. Borst    | — |  | 58,789 |  | — |  | 35.220 |  | 8/1/2020 |  | 45,074 |  | 1,629,876 |  | 28,393 |  | 1,026,691 |  |
|               | — |  | — |  | — |  | — |  | — |  | 10,366 |  | 374,835 |  | — |  | — |  |
| Total:             | — |  | 58,789 |  | — |  |   |   | 55,440 |  | 2,004,710 |  | 28,393 |  | 1,026,691 |  |
| John J. Allen      | 11,199 |  | — |  |   | 22.655 |  | 12/16/2018 |  | 305 |  | 11,029 |  | 11,100 |  | 401,376 |  |
|               | 21,306 |  | — |  |   | 35.805 |  | 12/15/2016 |  | 36,914 |  | 1,334,810 |  | 11,100 |  | 401,376 |  |
|               | 2,670 |  | — |  |   | 49.215 |  | 12/9/2013 |  | — |  | — |  | 33,081 |  | 1,196,209 |  |
|               | 6,922 |  | — |  |   | 49.215 |  | 12/10/2013 |  | — |  | — |  | — |  | — |  |
|               | 18,533 |  | 9,267 |  |   | 58.915 |  | 12/14/2017 |  | — |  | — |  | — |  | — |  |
|               | 9,267 |  | 18,533 |  |   | 37.200 |  | 12/19/2018 |  | — |  | — |  | — |  | — |  |
|               | — |  | — |  | 71,957 |  | 27.240 |  | 2/19/2020 |  | — |  | — |  | — |  | — |  |
| Total:             | 69,897 |  | 27,800 |  | 71,957 |  |   | 37,219 |  | 1,345,839 |  | 55,281 |  | 1,998,961 |  |
| Steven K. Covey    | 2,218 |  | — |  | — |  | 42.885 |  | 12/9/2013 |  | 400 |  | 14,464 |  | 8,000 |  | 289,280 |  |
|               | 282 |  | — |  | — |  | 42.885 |  | 12/10/2013 |  | — |  | — |  | 8,000 |  | 289,280 |  |
|               | 30,900 |  | — |  | — |  | 40.915 |  | 12/14/2014 |  | — |  | — |  | 15,123 |  | 546,848 |  |
|               | 30,900 |  | — |  | — |  | 26.150 |  | 10/18/2015 |  | — |  | — |  | — |  | — |  |
|               | 20,703 |  | — |  | — |  | 22.655 |  | 12/16/2018 |  | — |  | — |  | — |  | — |  |
|               | 20,703 |  | — |  | — |  | 35.805 |  | 12/15/2016 |  | — |  | — |  | — |  | — |  |
|               | 13,333 |  | 6,667 |  | — |  | 58.915 |  | 12/14/2017 |  | — |  | — |  | — |  | — |  |
|               | 6,667 |  | 13,333 |  | — |  | 37.200 |  | 12/19/2018 |  | — |  | — |  | — |  | — |  |
|               | — |  | — |  | 32,895 |  | 27.240 |  | 2/19/2020 |  | — |  | — |  | — |  | — |  |
| Total:             | 125,706 |  | 20,000 |  | 32,895 |   |   | 400 |  | 14,464 |  | 31,123 |  | 1,125,408 |  |
| Eric Tech          | 2,323 |  | — |  | — |  | 22.655 | 12/16/2018 |  | 453 |  | 16,380 |  | 8,000 |  | 289,280 |  |
|               | 13,802 |  | — |  | — |  | 35.805 |  | 12/15/2016 |  | — |  | — |  | 8,000 |  | 289,280 |  |
|               | 13,333 |  | 6,667 |  | — |  | 58.915 |  | 12/14/2017 |  | — |  | — |  | 15,123 |  | 546,848 |  |
|               | 6,667 |  | 13,333 |  | — |  | 37.200 |  | 12/19/2018 |  | — |  | — |  | — |  | — |  |
|               | — |  | — |  | 32,895 |  | 27.240 |  | 2/19/2020 |  | — |  | — |  | — |  | — |  |
|               | 36,125 |  | 20,000 |  | 32,895 |   |   | 453 |  | 16,380 |  | 31,123 |  | 1,125,408 |  |
| Lewis B. Campbell  | 500,000 |  | — |  | — |  | 22.980 |  | 8/26/2017 |  | — |  | — |  | — |  | — |  |
| Total:             | 500,000 |  | — |  | — |  |   |   | — |  | — |  | — |  | — |  |
| Andrew J. Cederoth | 31,959 |  | — |  |   | 35.805 |  | 7/1/2014 |  | — |  | — |  | — |  | — |  |
|               | 18,533 |  | — |  |   | 58.915 |  | 7/1/2014 |  | — |  | — |  | — |  | — |  |
|               | 9,267 |  | — |  |   | 37.200 |  | 7/1/2014 |  | — |  | — |  | — |  | — |  |
| Total:             | 59,759 |  | — |  |   |   |   | — |  | — |  | — |  | — |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | All stock options, other than performance stock options and the options to purchase 500,000 shares of Common Stock granted to Mr. Campbell on August 26, 2012 and any restoration options, became or will become exercisable under the following schedule: 1/3rd on each of the first three anniversaries of the date of grant.  Mr. Campbell's stock option award vested as to 100% of the shares on the day he separated employment with the Company on April 15, 2013 and became exercisable on August 26, 2013.  Performance stock options that expire on February 19, 2020 vest on the three year anniversary of the date of grant if performance conditions have been met.  As of October 31, 2013 performance conditions have been met as to 90% of the shares granted.  Mr. Clark's performance options that expire on April 22, 2020, will vest as to 25% of the shares granted on the date we file our FY 2014 Annual Report on Form 10-K, if performance conditions have been met and upon certification by the Compensation Committee, and as to 75% of the shares on the date we file our FY 2015 Annual Report on Form 10-K, if performance conditions have been met and upon certification by the Compensation Committee.  The value of Mr. Clark's performance shares that expire on April 22, 2020 was based on achieving performance goals at target level. |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Amounts in this column represent RSUs, PSUs or restricted stock.  In general RSUs and PSUs become vested as to 1/3rd of the shares granted on each of the first three anniversaries of the date of grant.  The restricted stock grant referenced in this column was made to Mr. Clarke and vests as to 100% of shares three years from the date of grant.  Mr. Allen received a grant of RSUs that vest as to 100% of the shares on the three year anniversary of the grant. |

|     |                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Amounts in this column represent TSR performance shares or EBITDAPO performance shares which are fully vested and eligible for payout three years from the date of grant provided applicable performance goals have been achieved.  The value reported for the TSR performance shares and EBITDAPO performance shares was based on achieving performance goals at target level. |

|     |                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | The vesting dates of outstanding unexercisable stock options, performance stock options and unvested restricted stock,  RSUs, PSUs, TSR performance shares and EBITDAPO performance shares at October 31, 2013 are listed below. |

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |
| Name            | Type ofAward | GrantDate | Number ofUnexercisedor UnvestedSharesRemainingfromOriginalGrant | Number ofSharesVestingandVestingDate in2013 | Number ofSharesVestingandVestingDate in2014 | Number ofSharesVestingandVestingDate in2015 | Number ofSharesVestingandVestingDate in2016 |
| Troy A. Clarke  | Options | 12/14/2010 | 9,267 |  | 9,267 on 12/14/2013 |   |   |   |
|            | Options | 12/19/2011 | 22,200 |  | 11,100 on 12/19/2013 | 11,100 on 12/19/2014 |   |   |
|            | Options | 2/19/2013 | 102,796 |  |   |   |   | 102,796 on 2/19/2016 |
|            | Options | 4/22/2013 | 373,333 |  |   | 124,445 on 4/22/2014 | 124,444 on 4/22/2015 | 124,444 on 4/22/2016 |
|            | Options | 4/22/2013 | 224,000 |  |   | 74,667 on 4/22/2014 | 74,666 on 4/22/2015 | 74,667 on 4/22/2016 |
|            | Options | 4/22/2013 | 74,666 |  |   | 18,667 on 10/31/2014 | 55,999 on 10/31/2015 |   |
|            | Options | 4/22/2013 | 74,666 |  |   | 18,667 on 10/31/2014 | 55,999 on 10/31/2015 |   |
|            | Performance | 12/14/2010 | 11,100 |  | 11,100 on 12/14/2013 |   |   |   |
|            | Performance | 12/19/2011 | 13,300 |  |   | 13,300 on 12/19/2014 |   |   |
|            | Performance | 2/19/2013 | 47,259 |  |   |   |   | 47,259 on 2/19/2016 |
|            | PSUs | 3/24/2011 | 211 |  |   | 211 on 3/24/2014 |   |   |
|            | PSUs | 8/27/2012 | 2,812 |  |   | 1,406 on 8/27/2014 | 1,406 on 8/27/2015 |   |
|            | PSUs | 5/23/2013 | 1,263 |  |   | 421 on 5/23/2014 | 421 on 5/23/2015 | 421 on 5/23/2016 |
|            | Restricted | 8/27/2012 | 41,445 |  |   |   | 41,445 on 8/27/2015 |   |
|            |   |   |   |   |   |   |   |
| Walter G. Borst | Options | 8/1/2013 | 58,789 |  |   | 19,596 on 8/1/2014 | 19,597 on 8/1/2015 | 19,596 on 8/1/2016 |
|            | Performance | 8/1/2013 | 28,393 |  |   |   |   | 28,393 on 8/1/2016 |
|            | PSUs | 8/1/2013 | 10,366 |  |   | 3,457 on 8/1/2014 | 3,454 on 8/1/2015 | 3,455 on 8/1/2016 |
|            | RSUs | 8/1/2013 | 45,074 |  |   | 15,025 on 8/1/2014 | 15,024 on 8/1/2015 | 15,025 on 8/1/2016 |

----

|                 |
|-----------------|
|                 |  |  |  |  |  |  |  |  |
| Name            | Type ofAward | GrantDate | Number ofUnexercisedor UnvestedSharesRemainingfromOriginalGrant | Number ofSharesVestingandVestingDate in2013 | Number ofSharesVestingandVestingDate in2014 | Number ofSharesVestingandVestingDate in2015 | Number ofSharesVestingandVestingDate in2016 |
| John J. Allen   | Options | 12/14/2010 | 9,267 |  | 9,267 on 12/14/2013 |   |   |   |
|            | Options | 12/19/2011 | 18,533 |  | 9,266 on 12/19/2013 | 9,267 on 12/19/2014 |   |   |
|            | Options | 2/19/2013 | 71,957 |  |   |   |   | 71,957 on 2/19/2016 |
|            | Performance | 12/14/2010 | 11,100 |  | 11,100 on 12/14/2013 |   |   |   |
|            | Performance | 12/19/2011 | 11,100 |  |   | 11,100 on 12/19/2014 |   |   |
|            | Performance | 2/19/2013 | 33,081 |  |   |   |   | 33,081 on 2/19/2016 |
|            | PSUs | 3/29/2011 | 305 |  |   | 305 on 3/29/2014 |   |   |
|            | RSUs | 2/19/2013 | 36,914 |  |   |   |   | 36,914 on 2/19/2016 |
|            |   |   |   |   |   |   |   |
| Steven K. Covey | Options | 12/14/2010 | 6,667 |  | 6,667 on 12/14/2013 |   |   |   |
|            | Options | 12/19/2011 | 13,333 |  | 6,666 on 12/19/2013 | 6,667 on 12/19/2014 |   |   |
|            | Options | 2/19/2013 | 32,895 |  |   |   |   | 32,895 on 2/19/2016 |
|            | Performance | 12/14/2010 | 8,000 |  | 8,000 on 12/14/2013 |   |   |   |
|            | Performance | 12/19/2011 | 8,000 |  |   | 8,000 on 12/19/2014 |   |   |
|            | Performance | 2/19/2013 | 15,123 |  |   |   |   | 15,123 on 2/19/2016 |
|            | PSUs | 1/13/2011 | 400 |  |   | 400 on 1/13/2014 |   |   |
|            |   |   |   |   |   |   |   |
| Eric Tech       | Options | 12/14/2010 | 6,667 |  | 6,667 pm 12/14/2013 |   |   |   |
|            | Options | 12/19/2011 | 13,333 |  | 6,666 on 12/19/2013 | 6,667 on 12/19/2014 |   |   |
|            | Options | 2/19/2013 | 32,895 |  |   |   |   | 32,895 on 2/19/2016 |
|            | Performance | 12/14/2010 | 8,000 |  | 8,000 on 12/14/2013 |   |   |   |
|            | Performance | 12/19/2011 | 8,000 |  |   | 8,000 on 12/19/2014 |   |   |
|            | Performance | 2/19/2013 | 15,123 |  |   |   |   | 15,123 on 2/19/2016 |
|            | PSUs | 1/13/2011 | 246 |  |   | 246 on 1/13/2014 |   |   |
|            | PSUs | 9/18/2011 | 207 |  |   | 207 on 9/18/2014 |   |   |

----

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |  |  |  |  |  |
|          | Option Awards |   | Stock Awards |   |
| Name               | Number ofSharesAcquired onExercise (#) |   | ValueRealizedUponExercise ($) |   | Number ofSharesAcquired onVesting (#) |   | ValueRealizedUponVesting ($) |
| Troy A. Clarke     | — |  |   | — |  |   | 1,617 |  |   | 55,066 |  | (1)  |
| Walter G. Borst    | — |  |   | — |  |   | — |  |   | — |  |   |
| John J. Allen      | — |  |   | — |  |   | 2,404 |  |   | 56,478 |  | (2)  |
| Steven K. Covey    | — |  |   | — |  |   | 1,760 |  | 29,838 |  | 39,269 |  | (3)  |
| Eric Tech          | — |  |   | — |  |   | 1,811 |  |   | 43,425 |  | (4)  |
| Lewis B. Campbell  | — |  |   | — |  |   | — |  |   | — |  |   |
| Andrew J. Cederoth | 1,474 |  |   | 20,190 |  |   | 4,046 |  |   | 91,062 |  | (5)  |

|     |                                                                                                                                                                                                                                                                                                                                                |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The realized value above is attributable to the portion of Mr. Clarke's PSUs awards under the Company's Executive Stock Ownership Program that vested during the fiscal year ended October 31, 2013.  Upon termination of Mr. Clarke's employment, the PSUs will be settled for a number of shares of our Common Stock on a one-for-one basis. |

|     |                                                                                                                                                                                                                                                                                                                                                               |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | $10,426 of the realized value shown above is attributable to the portion of Mr. Allen's PSUs awards under the Company's Executive Stock Ownership Program that vested during the fiscal year ended October 31, 2013.  Upon termination of Mr. Allen's employment, the PSUs will be settled for a number of shares of our Common Stock on a one-for-one basis. |

|     |                                                                                                                                                                                                                                                                                                                                                              |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | $9,431 of the realized value shown above is attributable to the portion of Mr. Covey's PSUs awards under the Company's Executive Stock Ownership Program that vested during the fiscal year ended October 31, 2013.  Upon termination of Mr. Covey's employment, the PSUs will be settled for a number of shares of our Common Stock on a one-for-one basis. |

|     |                                                                                                                                                                                                                                                                                                                                                            |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | $13,587 of the realized value shown above is attributable to the portion of Mr.Tech's PSUs awards under the Company's Executive Stock Ownership Program that vested during the fiscal year ended October 31, 2013.  Upon termination of Mr. Tech's employment, the PSUs will be settled for a number of shares of our Common Stock on a one-for-one basis. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | $17,936 of the realized value shown above is attributable to the portion of Mr. Cederoth's PSUs awards under the Company's Executive Stock Ownership Program that vested during the fiscal year ended October 31, 2013.  Mr. Cederoth's PSUs were settled for a number of shares of our Common Stock on a one-for-one basis in January 2014 after certain holding requirements under 409A of the IRS tax code had been met. |

----

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |
| Named Executive Officers | PlanName | Number ofYears ofCreditedService (#) | Present Valueof AccumulatedBenefit ($)(1) |  | PaymentsDuring LastFiscal Year |  |
| Troy A. Clarke           | SERP | 3.0 | 3,012,311 |  | — |  |
| Walter G. Borst          | SERP | 0.3 | 1,439,225 |  | — |  |
| John J. Allen            | RPSE | 32.8 | 1,411,887 |  | — |  |
|                     | MRO | 32.8 | 3,500,136 |  | — |  |
|                     | SERP | 32.8 | — |  | — |  |
| Steven K. Covey          | RPSE | 32.5 | 1,929,480 |  | — |  |
|                     | MRO | 32.5 | 4,535,772 |  | — |  |
|                     | SERP | 32.5 | — |  | — |  |
| Eric Tech                | SERP | 7.8 | 1,037,298 |  | — |  |
| Lewis B. Campbell (2)    | N/A | 0.0 | — |  | — |  |
| Andrew J. Cederoth (3)   | RPSE | 14.6 | 430,285 |  | — |  |
|                     | SERP | 23.6 | 602,510 |  | — |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Unless otherwise noted, all present values reflect benefits payable at the earliest retirement date when the pension benefits are unreduced. Also unless otherwise noted, form of payment, discount rate (4.2%) and mortality (RP-2000 Combined Mortality Table projected to January 1, 2021 at 100% of scale AA) is based on assumptions from the guidance on accounting for pensions.  Additionally, SERP benefits have only been offset by benefits under Navistar sponsored retirement programs.  At actual retirement these benefits will also be offset by benefits accumulated under programs for employment prior to Navistar, Inc. |

|     |                                                                                  |
|-----|----------------------------------------------------------------------------------|
| (2) | Mr. Campbell was not eligible for pension benefits per his employment agreement. |

|     |                                                                                                                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Service for Mr. Cederoth is limited under the RPSE to the service accrued as of December 31, 2004.  Present value of the accumulated benefits for Mr. Cederoth is at June 30, 2013, the effective date of his separation. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Navistar, Inc. Retirement Plan for Salaried Employees (RPSE).  The RPSE is a funded and tax-qualified defined benefit retirement program.  The plan provides benefits primarily based on a formula that takes into account the employee’s years of service, final average earnings and a percentage of final average earnings per year of service (accrual rates).  The table below summarizes the benefit accrual rates under the RPSE. |

|                                                                      |
|----------------------------------------------------------------------|
|                                                                      |  |  |  |
|                                                                 | Prior to 1989         | After 1988         | Maximum         |
| Rate of Benefit Accrual per Year of Service up to December 31, 2013. | 2.4% | 1.7% | 60% |

----

|         |                                                                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Navistar, Inc. Managerial Retirement Objective Plan (MRO).  We offer the MRO to approximately 70 eligible managers and executive officers.  The MRO provides for retirement benefits that are either not covered by or that are above those provided under our RPSE.  The MRO is unfunded and is not qualified for tax purposes. |

|         |                                                                                                                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Navistar, Inc. Supplemental Executive Retirement Plan (SERP).  The SERP is designed as a pension supplement to attract and retain executive officers.  Executive officers are eligible to participate in the SERP upon attainment of age 55 or upon their date of hire if later. |

|                      |
|----------------------|
|                      |  |  |
|            |          Up to                Age 55         |         On or After                Age 55         |
| Each Year of Age     | 1/2% | 1% |
| Each Year of Service | 1/2% | 1% |

----

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Other Retirement Income Programs.  We also sponsor the Navistar, Inc. 401(k) Plan for Represented Employees (REP) and the Navistar, Inc. Retirement Accumulation Plan (RAP).  Represented employees are allowed to defer a portion of their compensation to the 401(k) Plan up to the Internal Revenue Code limitations. All employees are allowed to defer a portion of their compensation to the RAP up to the Internal Revenue Code limitations.  Employees that do not receive any additional service accruals under RPSE receive non-elective employer retirement contributions equal to a percentage of compensation ranging from 2% up to 6.5% based on their age at the beginning of the calendar year.  Additionally, employees that do not participate in our retiree medical plan receive matching contributions equal to 50% of the first 6% of employee elective pre-tax deferrals.  For those executives whose employer contributions would be limited by the Internal Revenue Code, the SRAP (described below) provides for contributions in excess of the Internal Revenue Code limitations. This plan is described in more detail within the Non-Qualified Deferred Compensation section of this proxy statement. |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |
| Named Executive Officers | ExecutiveContributions in LastFiscal Year ($) | CompanyContributions in LastFiscal Year(1) ($) | AggregateEarningsIn Last FiscalYear(2) ($) | AggregateBalance Asof LastFiscal YearEnd(3) ($) |
| Troy A. Clarke           | N/A | 109,946 |  | 89,972 |  | 311,906 |  |
| Walter G. Borst          | N/A | 374,835 |  | — |  | 374,835 |  |
| John J. Allen            | N/A | — |  | 120,390 |  | 250,046 |  |
| Steven K. Covey          | N/A | — |  | 62,693 |  | 130,212 |  |
| Eric Tech                | N/A | 27,750 |  | 32,575 |  | 183,253 |  |
| Lewis B. Campbell        | N/A | — |  | — |  | — |  |
| Andrew J. Cederoth       | N/A | 108,727 |  | 103,167 |  | 768,277 |  |

|     |                                                                                                                                                                                                                     |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Our contributions represent the sum of any notional contribution credits to the SRAP during the year and the value, based on our Common Stock share price at year end, of the PSUs granted during that fiscal year. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | "Aggregate Earnings in Last Fiscal Year” represent the notional interest credited during the year for participants in the SRAP, if applicable, plus the change in value from the beginning of the year to the end of the year in the PSUs and/or DSUs held by each NEO.  For the SRAP, “Aggregate Earnings in Last Fiscal Year” is the interest credited to each NEO from the beginning of the fiscal year until the end of the fiscal year at a 7.5% interest crediting rate. “Aggregate Earnings in Last Fiscal Year” for purposes of the PSU is the aggregate change in value of the PSUs held during the year. |

|     |                                                                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | The “Aggregate Balance as of Last Fiscal Year End” consists of the sum of each NEO’s notional account balance in the SRAP at the end of the year and the value at year end of the outstanding PSUs and/or DSUs. |

----

|         |                                                                                                                                                                                                                                                                                                                                           |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Navistar, Inc. Supplemental Retirement Accumulation Plan (SRAP).  The SRAP provides executive officers with contributions equal to the amount by which their annualized non-elective age-weighted contributions to the RAP are limited by the Internal Revenue Code.  The SRAP is unfunded and is not qualified for tax purposes. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Premium Share Units (PSU).  In general, our Executive Stock Ownership Program as in effect during fiscal 2013 required all of our executive officers to acquire, by direct purchase or through salary or annual bonus reduction, an ownership interest in Navistar by acquiring a designated amount of our Common Stock at specified times.  Participants are required to hold such stock for the entire period in which they are employed by us. PSUs may be awarded under the 2013 PIP to participants who complete their ownership requirement on an accelerated basis.  PSUs vest in equal installments on each of the first three anniversaries of the date on which they are awarded.  Each vested PSU will be settled by delivery of one share of Common Stock.  Such settlement will occur within 10 days after a participant’s termination of employment or at such later date as required by Internal Revenue Code Section Rule 409A. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Deferred Share Units (DSU).  Under the Restoration Stock Option Program, participants generally may exercise vested options by presenting shares that have a total market value equal to the applicable option exercise price times the number of options.  Restoration options are then granted with an exercise price equal to the then current fair market price in an amount equal to the number of shares held by the option holder for at least six months that were presented to exercise the original option, plus the number of shares that are withheld for the required tax liability.  Participants who hold non-qualified stock options that were vested prior to December 31, 2004 may also defer the receipt of shares of our Common Stock that would have been acquired upon exercise of a restoration stock option exercise of these options.  Participants who elect to defer receipt of these shares receive DSUs. DSUs are awarded under the 2013 PIP.  DSUs are credited into the participant’s account at the then current market price.  The DSUs are generally distributed to the participant in the form of our Common Stock at the date specified by the participant at the time of his election to defer.  During the deferral period, the participants will have no right to vote the stock, to receive any dividend declared on the stock, and no other right as a stockholder.  In December 2008, we eliminated the Restoration Stock Option Program for future stock options under the 2004 PIP. |

----

|         |                                                                                                                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The expiration date of the agreement period post-Change in Control ("CIC") will be the date that occurs eighteen (18) months after the date of the CIC;a decrease from thirty-six (36) months or more post-CIC; |

|         |                                                                                                                                                                                                                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A CIC will not occur if certain "Excluded Persons" (including Mark H. Rachesky, Icahn Enterprises and employee or retirement benefit plans or trusts sponsored or established by the Company) become the "Beneficial Owner" of securities representing 50% or more of the combined voting power of the Company's then-outstanding securities; |

|         |                                                                                                                                                                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The level of ownership of securities required to trigger a CIC has been increased to fifty (50) percent or more of the combined voting power of the Company’s then-outstanding securities - an increase from the twenty-five (25) percent ownership requirement; |

|         |                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A termination will be deemed to occur post-CIC if it occurs during the agreement period and during the eighteen (18) month period immediately following the CIC - a decrease from thirty-six (36) months post-CIC; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                            |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A diminution of authority sufficient to trigger a termination for “Good Reason” has been narrowed to occur only if the executive officer experiences a decrease in his or her organizational level or a change to his or her reporting structure that requires the executive to report to a supervisor whose organizational level is below the executive’s current organizational level; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The executive officer's obligations (i) not to disclose confidential, secret, proprietary or privileged information pertaining to the business of the Company, (ii) to refrain from making any defamatory, disparaging, slanderous, libelous or derogatory statements about the Company and (iii) to cooperate and provide assistance to the Company in connection with litigation or any other matters, have been extended to continue at all times during the agreement period of the ESA and at all times following the executive officer's termination of employment for any reason; and |

|         |                                                                                                                                                                                                                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The Compensation Committee may require the executive officer to repay incentive pay previously received from the Company if the Compensation Committee determines that repayment is due on account of a restatement of the Company’s financial statements or for another reason under the Company’s Recoupment Policy. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | The amended ESA will not become effective unless and until the executive officer signs a written release agreement in a form acceptable to the Company.  In the event of a termination under the ESA, the executive officer's eligibility for separation payments and benefits is conditioned on the executive officer's timely signing, and not revoking, a written release agreement in a form acceptable to the Company; and |

|         |                                                                              |
|---------|------------------------------------------------------------------------------|
| • | No payments are eligible for Internal Revenue Code 280G excise tax gross-up. |

|         |                                                                                                                                                                                                                                              |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Voluntary Termination and Involuntary (Termination for "Cause") Termination:  We are not obligated to provide the executive with any additional or special compensation or benefits upon a voluntary termination by the executive or |

----

|         |                                       |
|---------|---------------------------------------|
| • | Be paid the value of unused vacation; |

|         |                                                                                                                                                                                          |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Not be eligible for an annual incentive payment if the termination occurred prior to fiscal year end or if the termination occurred after fiscal year end and prior to the payment date; |

|         |                                                                                                                                               |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------|
| • | Be able to exercise vested stock options for three months or twelve months depending on the date of grant, following a voluntary termination; |

|         |                                     |
|---------|-------------------------------------|
| • | Forfeit any unvested stock options; |

|         |                                                     |
|---------|-----------------------------------------------------|
| • | Forfeit any unvested restricted stock and RSUs; and |

|         |                                                       |
|---------|-------------------------------------------------------|
| • | Forfeit any unvested cash-settled performance shares. |

|         |                                                                                                                                                                |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Retirement and Early Retirement: If an executive officer terminates employment due to retirement, then the officer would generally be eligible to receive: |

|         |                               |
|---------|-------------------------------|
| • | The value of unused vacation; |

|         |                                                                                                                                                                                                  |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Monthly income from any defined benefit pension plans, both tax-qualified and non-tax-qualified, that the executive participated in solely to the extent provided under the terms of such plans; |

|         |                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Lump sum distributions from any defined contribution plans, both tax-qualified and non-tax-qualified, that the executive participated in solely to the extent provided under the terms of such plans; and |

|         |                                                        |
|---------|--------------------------------------------------------|
| • | A pro-rata portion of cash-settled performance shares. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Involuntary Termination (Not for "Cause") or Good Reason Termination:  If the employment of an executive officer is terminated due to either an involuntary termination by us without "Cause" or a "Good Reason" (as defined below) termination by the executive, in each case either before the date of a Change in Control (as defined in the ESA) or more than 36 months after the date of the most recent Change in Control, then the executive would generally be eligible to receive the following: |

|         |                                                                                                                                                                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | An amount equal to one-hundred to two-hundred percent (100-200%) of the total of (i) the executive’s annual base salary in effect at the time of termination and (ii) the executive’s AI Plan award at target level (the “Severance Pay”); |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Continued health insurance for the 24-month period following termination; provided that for the first 12 month period, the executive shall pay for such coverage at no greater after tax costs to the executive than the after-tax cost to the executive officer immediately prior to the date of termination and for the remaining 12-month period, the executive officer shall pay for such coverage on a monthly cost of coverage basis; |

|         |                                                                                                                                                                                                                                     |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Pro-rata annual incentive for the number of months of fiscal year eligible participation which is based upon actual results and will only be paid if and at the same time that the Company pays AI Plan awards to active employees; |

|         |                                                                                  |
|---------|----------------------------------------------------------------------------------|
| • | Continued life insurance coverage for the 24-month period following termination; |

|         |                        |
|---------|------------------------|
| • | Outplacement services; |

----

|         |                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
| • | Retention of any flexible perquisite allowance actually paid to the executive officer on or before the time of termination; |

|         |                                                                |
|---------|----------------------------------------------------------------|
| • | A lump sum cash payment equal to the value of unused vacation; |

|         |                                                                                                                                                                                                                                                                                                                                                                                      |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Such pension and post-retirement health and life insurance benefits due to the executive officer upon his or her termination pursuant to and in accordance with the respective Company-sponsored benefit plans, programs, or policies under which they are accrued and/or provided (including grow-in rights as provided under the terms of the applicable plan, program or policy); |

|         |                                                                                                                 |
|---------|-----------------------------------------------------------------------------------------------------------------|
| • | The right to exercise vested stock options for three months or twelve months, depending upon date of grant; and |

|         |                                                                                                                                   |
|---------|-----------------------------------------------------------------------------------------------------------------------------------|
| • | Forfeit any unvested cash-settled performance shares, any unvested stock options and any unvested restricted stock, RSUs or PSUs. |

|         |                                                                                                                                                                                                                                                                                                                                                    |
|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Termination Related to a Change in Control: If the employment of an executive officer is involuntarily terminated for any reason other than for "Cause" or if a "Constructive Termination" (as described below) occurs within 36 months after a Change in Control, the executive officer would generally be eligible to receive the following: |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | An amount equal to (i) a pro rata portion of the executive officer’s AI Plan award at target level, which payment shall be in lieu of any payment to which the executive officer may otherwise have been entitled to receive under a Change in Control-sponsored incentive or bonus plan (the “CIC Prorated Bonus”), plus (ii) a multiplier ranging from 150% to 300% of the sum of the executive officer’s annual base salary in effect at the time of termination and the executive officer’s AI Award at Target level (the “CIC Severance Pay”). The CIC Severance Pay and the CIC Prorated Bonus shall be paid in a lump sum on the payment date; |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Continued health insurance for the 24-month period following termination; provided that for the first 12 month period, the executive officer shall pay for such coverage at no greater after tax costs to the executive officer than the after tax cost to the executive officer immediately prior to the date of termination and for the remaining 12-month period, the executive officer shall pay for such coverage on a monthly cost of coverage basis; |

|         |                        |
|---------|------------------------|
| • | Outplacement services; |

|         |                                              |
|---------|----------------------------------------------|
| • | Tax counseling and tax preparation services; |

|         |                                                                                                                             |
|---------|-----------------------------------------------------------------------------------------------------------------------------|
| • | Retention of any flexible perquisite allowance actually paid to the executive officer on or before the time of termination; |

|         |                                                                |
|---------|----------------------------------------------------------------|
| • | A lump sum cash payment equal to the value of unused vacation; |

|         |                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Acceleration of the exercisability of options that would otherwise have vested over a period of three years from the date of the Change in Control had the executive officer continued employment for that period; |

|         |                                                                                                     |
|---------|-----------------------------------------------------------------------------------------------------|
| • | Acceleration of the vesting of cash-settled performance shares at the target performance level; and |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | A lump sum cash payment equal to the difference in (i) the actuarial present value of the executive officer’s non-tax-qualified pension benefits assuming the executive officer was three years older and had three more years of service, over (ii) the actuarial present value of the executive officer’s non-tax-qualified pension benefits at the date of termination. The lump sum payout of the supplemental pension benefits is offset by the value of any ongoing payments. |

----

|                        |
|------------------------|
|                        |  |  |
| NEO                    | Multiplier - Involuntary Not forCause or Good ReasonTermination | Multiplier - Change in Control |
| Troy A. Clarke(1)      | 200% | 200% |
| Walter G. Borst        | 200% | 300% |
| John J. Allen          | 200% | 300% |
| Steven K. Covey        | 150% | 300% |
| Eric Tech              | 150% | 300% |
| Lewis B. Campbell (2)  | N/A | 300% |
| Andrew J. Cederoth (3) | 200% | 300% |

|     |                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | Mr. Clarke does not have an ESA.  Per his Employment Agreement, in the event his employment and service with the Company is terminated (i) by the Company without Cause, or (ii) by Executive due to Constructive Termination, as defined in his Employment Agreement, then in addition to accrued obligations, he is eligible for the sum of 200% of base salary plus annual incentive target. |

|     |                                                                                                                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Mr. Campbell did not have an ESA. Per his employment agreement, in the event he was terminated for any reason, accrued obligations are due.  In the event of a Constructive Termination as defined in his employment agreement, he was eligible for the sum of 300% of base salary plus annual incentive target. |

|     |                                              |
|-----|----------------------------------------------|
| (3) | Mr. Cederoth left the Company June 30, 2013. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Disability and Death:  If an executive officer is disabled and is prevented from working for pay or profit in any job or occupation, he or she may be eligible for our “Non-Represented Employee Disability Benefit Program” which provides for short-term and long-term disability (“LTD”) benefits.  Our executive officers are not covered under a separate program.  While covered under LTD, an executive officer is eligible for 60 percent of his or her base salary reduced (or offset) by other sources of income, such as social security disability.  In the event of a total and permanent disability as defined by this program, an executive officer may exercise outstanding stock options any time within three years after such termination.  In the event an executive officer has restricted stock, or RSUs, the restricted stock or RSUs will continue to vest according to the terms of the grant. In the event an executive officer has PSUs, vesting accelerates and the shares are issued immediately.  In addition, while classified as disabled, the executive officer continues to accrue benefits under the defined benefit plans. |

----

|                                                         |
|---------------------------------------------------------|
|                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| NEO                                                     | SeveranceAmount/CashPayment ($) |   | UnvestedOptions ($)(1) | RestrictedStock/Units ($)(2) | PerformanceShares ($)(3) | BenefitContinuation ($)(4) | OutplacementCounseling ($)(5) | Total ($) |
| Troy A. Clarke                                          |   |   |   |   |   |   |   |   |
| Involuntary Not for Cause or Good Reason Termination(6) | $ | 3,420,000 |  |   | $ | — |  | $ | — |  | $ | — |  | $ | 55,641 |  | $ | 19,000 |  | $ | 3,494,641 |  |
| Change in Control(6)                                    | $ | 4,320,860 |  | (11)  | $ | 3,389,895 |  | $ | 1,653,633 |  | $ | 2,591,189 |  | $ | 55,641 |  | $ | 19,000 |  | $ | 12,030,218 |  |
| Disability(7)                                           | $ | 540,000 |  |   | $ | 3,389,895 |  | $ | 1,653,633 |  | $ | 320,619 |  | $ | — |  | $ | — |  | $ | 5,904,147 |  |
| Death(8)                                                | $ | — |  |   | $ | 3,389,895 |  | $ | 1,653,633 |  | $ | 320,619 |  | $ | — |  | $ | — |  | $ | 5,364,147 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| Walter G. Borst                                         |   |   |   |   |   |   |   |   |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 2,450,000 |  |   | $ | — |  | $ | — |  | $ | — |  | $ | 10,060 |  | $ | 19,000 |  | $ | 2,479,060 |  |
| Change in Control(10)                                   | $ | 4,200,000 |  |  | $ | 55,262 |  | $ | 2,004,710 |  | $ | 1,026,691 |  | $ | 10,060 |  | $ | 19,000 |  | $ | 7,315,723 |  |
| Disability(7)                                           | $ | 420,000 |  |   | $ | 55,262 |  | $ | 2,004,710 |  | $ | — |  | $ | — |  |  |  | $ | 2,479,972 |  |
| Death(8)                                                | $ | — |  |   | $ | 55,262 |  | $ | 2,004,710 |  | $ | — |  | $ | — |  | $ | — |  | $ | 2,059,972 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| John J. Allen                                           |   |   |   |   |   |   |   |  |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 2,590,000 |  |   | $ | 641,856 |  | $ | 1,334,810 |  | $ | 267,584 |  | $ | 47,271 |  | $ | 19,000 |  | $ | 4,900,521 |  |
| Change in Control(10)                                   | $ | 5,180,217 |  | (11)  | $ | 641,856 |  | $ | 1,334,810 |  | $ | 1,998,961 |  | $ | 47,271 |  | $ | 19,000 |  | $ | 9,222,115 |  |
| Disability(7)                                           | $ | 444,000 |  |   | $ | 641,856 |  | $ | 1,334,810 |  | $ | 267,584 |  | $ | — |  | $ | — |  | $ | 2,688,250 |  |
| Death(8)                                                | $ | — |  |   | $ | 641,856 |  | $ | 1,334,810 |  | $ | 267,584 |  | $ | — |  | $ | — |  | $ | 2,244,250 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| Steven K. Covey                                         |   |   |   |   |   |   |   |  |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 1,423,125 |  |   | $ | 293,423 |  | $ | — |  | $ | 192,853 |  | $ | 59,728 |  | $ | 19,000 |  | $ | 1,988,129 |  |
| Change in Control(10)                                   | $ | 3,220,000 |  |   | $ | 293,423 |  | $ | — |  | $ | 1,125,408 |  | $ | 59,728 |  | $ | 19,000 |  | $ | 4,717,559 |  |
| Disability(7)                                           | $ | 345,000 |  |   | $ | 293,423 |  | $ | — |  | $ | 192,853 |  | $ | — |  | $ | — |  | $ | 831,276 |  |
| Death(8)                                                | $ | — |  |   | $ | 293,423 |  | $ | — |  | $ | 192,853 |  | $ | — |  | $ | — |  | $ | 486,276 |  |
| Voluntary and Involuntary for Cause Termination         | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| Eric Tech                                               |   |   |   |   |   |   |   |  |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 1,188,000 |  |   | $ | — |  | $ | — |  | $ | — |  | $ | 38,720 |  | $ | 19,000 |  | $ | 1,245,720 |  |
| Change in Control(10)                                   | $ | 4,537,680 |  | (11)  | $ | 293,423 |  | $ | 16,380 |  | $ | 1,125,408 |  | $ | 38,720 |  | $ | 19,000 |  | $ | 6,030,611 |  |
| Disability(7)                                           | $ | 288,000 |  |   | $ | 293,423 |  | $ | 16,380 |  | $ | 192,853 |  | $ | — |  | $ | — |  | $ | 790,656 |  |
| Death(8)                                                | $ | — |  |   | $ | 293,423 |  | $ | 16,380 |  | $ | 192,853 |  | $ | — |  | $ | — |  | $ | 502,656 |  |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | — |  |   | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  |
| Lewis B. Campbell                                       |   |   |   |   |   |   |   |   |
| Involuntary Not for Cause                               | $ | 1,250,000 |  | (12)  | $ | — |  | $ | — |  | $ | — |  | $ | 36,918 |  | $ | — |  | $ | 1,286,918 |  |
| Andrew J. Cederoth                       |   |   |   |   |   |   |   |   |
| Involuntary Not for Cause or Good Reason Termination(9) | $ | 2,012,500 |  | (13)  | $ | — |  | $ | 245,129 |  | $ | — |  | $ | 37,910 |  | $ | 19,000 |  | $ | 2,314,539 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | The per share value for options is equal to the difference between the option exercise price and the closing price as of the last day of the fiscal year (October 31, 2013), which was $36.16 per share.  Please refer to the Outstanding Equity Awards Table of this proxy statement for more information on this subject as the amounts in these columns represent awards that have already been granted to the NEOs in previous years. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The value of restricted stock, RSU or PSU is based on the October 31, 2013 closing price of $36.16 per share.  Please refer to the Outstanding Equity Awards Table of this proxy statement for more information on this subject as the amounts in this column represent awards that have already been granted to the NEOs in previous years. Amounts indicated for for Voluntary and Involuntary for Cause Termination represent deferred shares that have already been earned. |

|     |                                                                                                                                                                                   |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | This amount represents the value of all unvested cash-settled performance shares based on a change in control effective October 31, 2013 with a closing price of $36.16. |

|     |                                                                                                                                                                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Benefits include 12 months continued health care coverage with an option to purchase an additional 12 months at the cost of coverage rate and 24 months of continued life insurance coverage for all  NEOs for terminations following an involuntary not-for-cause termination, good reason termination or a termination following a Change in Control. |

|     |                                                                        |
|-----|------------------------------------------------------------------------|
| (5) | This represents our cost for NEO outplacement counseling and services. |

|     |                                                                                                                                                                                                                                                    |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | Mr. Clarke does not have an ESA. In the event Mr. Clarke's employment and service with the Company terminates for any reason,  including due to his death or disability,  Mr. Clarke will be entitled to unpaid and accrued payments and benefits. |

----

|    |                                                                                                       |
|----|-------------------------------------------------------------------------------------------------------|
| 1. | A lump sum severance payment equal to 200% of the sum of his base salary and annual incentive target; |

|    |                                                                                                                                   |
|----|-----------------------------------------------------------------------------------------------------------------------------------|
| 2. | Twelve months continued health care coverage with the an option to purchase an additional 12 months at the cost of coverage rate; |

|    |                                              |
|----|----------------------------------------------|
| 3. | 24 months continued life insurance coverage; |

|    |                        |
|----|------------------------|
| 4. | Outplacement services; |

|    |                                                                        |
|----|------------------------------------------------------------------------|
| 5. | Retention of any remaining flexible perquisite allowance already paid; |

|    |                                                                                                                                                      |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------|
| 6. | Company-paid tax counseling and tax forms preparation services up to and including the taxable year of Mr. Clarke in which the termination occurred; |

|    |                                                                                                                                                                                                                     |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 7. | Pro rata portion of the annual incentive award that would have been payable to Mr. Clarke for the Company's fiscal year in which the termination occurred, based on actual performance at effective October 31; and |

|    |                                                                                                                                                                                                                                                                                                                                                                   |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 8. | Pro rata vesting of outstanding 2013 time-vested options and 2014 stock options.  A pro rata portion of the outstanding unvested performance-vested 2013 stock options and 2014 stock options will remain eligible for vesting upon the conclusion of the applicable performance period, if and only to the extent that the performance conditions are satisfied. |

|     |                                                                                                                                                                                                                                           |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | This amount is 60% of annualized base salary as of October 31, 2013 and is not offset by other sources of income, such as social security. It represents the amount that would be paid annually over the term of the disability. |

|     |                                                                                                                                                                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (8) | Surviving spouse benefits are payable under the applicable pension plan.  Messrs. Allen and Covey are participants in the defined benefit pension plan that provide surviving spouse benefits.  Messrs. Clarke, Borst, Tech and Cederoth participate in our defined contribution plans and a defined benefit plan that provides a surviving spouse benefit. |

|     |                                                                                                                                    |
|-----|------------------------------------------------------------------------------------------------------------------------------------|
| (9) | This calculation, as described in the ESA, is 150% - 200% of the sum of the NEO's annual base salary plus annual incentive target. |

|      |                                                                                                                                                                                                                                                                                   |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (10) | The Internal Revenue Code 280G excise tax gross-up upon a Change in Control was eliminated. The Change in Control calculation, as defined in the ESA, is 300% of the sum of the executive’s annual base salary plus annual incentive target plus pro-rata annual incentive. |

|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (11) | Included in the Severance Amount /Cash Payment figure above for Change in Control is the lump sum cash payment equal to the difference in (i) the actuarial present value of the NEOs non-tax qualified pension benefits assuming the executive was three years older and had three more years of service, over (ii) the actuarial present value of the NEOs non-tax qualified pension benefits at the date of termination. The figures are as follows:  For Mr. Allen $740,217, Mr. Tech $1,849,680 and Mr. Cederoth $188,431. Mr. Clarke's Employment Agreement does not have a provision for this lump sum cash payment; however, since he is not eligible for the SERP, he would be eligible to receive his lump sum SRAP payment in the amount of $90,860. |

|      |                                                                                                                                                                                        |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12) | Mr. Campbell's employment with the Company ended as of April 15, 2013.  This amount reflects the amount the Company actually paid Mr. Campbell and not theoretical potential payments. |

|      |                                                                                                                                                                                       |
|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (13) | Mr. Cederoth's employment with the Company ended as of June 30, 2013.  This amount reflects the amount the Company actually paid Mr. Cederoth and not theoretical potential payments. |

----

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | Compensation Committee approval of overall compensation philosophy and plan design. |

|         |                                                                       |
|---------|-----------------------------------------------------------------------|
| • | Compensation mix of base salary, short-term and long-term incentives. |

|         |                                                                                                 |
|---------|-------------------------------------------------------------------------------------------------|
| • | Executive stock ownership guidelines which align executives’ interests with stockholders. |

|         |                      |
|---------|----------------------|
| • | Fiscal 2013 AI Plan: |

|         |                                                                                                                                    |
|---------|------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Design focuses on three key financial performance metrics and one operational metric relevant to Navistar’s turnaround year. |

|         |                                                                                                                                |
|---------|--------------------------------------------------------------------------------------------------------------------------------|
| ◦ | AI targets decreased from 100% to 75% taking into account the challenges associated with meeting an aggressive operating plan. |

|         |                                                                |
|---------|----------------------------------------------------------------|
| ◦ | AI awards to be paid 50% cash and 50% cash/share settled RSUs. |

|         |                       |
|---------|-----------------------|
| • | Fiscal 2013 LTI Plan: |

|         |                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ◦ | Performance-based equity-based awards are made at the discretion of the Compensation Committee and are intended to focus participants on the long-term growth of the Company. |

|         |                                                                                                                        |
|---------|------------------------------------------------------------------------------------------------------------------------|
| ◦ | Eligibility for qualified retirement extended to one year and one day beyond the effective date of the LTI Plan award. |

|         |                                                                 |
|---------|-----------------------------------------------------------------|
| ◦ | Valuation methodology changed from fixed shares to fixed value. |

|         |                                                                                                                          |
|---------|--------------------------------------------------------------------------------------------------------------------------|
| • | Capital expenditure approval policies and procedures that control the possibility of engaging in unintended risk-taking. |

|         |                                                                                     |
|---------|-------------------------------------------------------------------------------------|
| • | Sarbanes Oxley / Internal Controls procedures and processes adopted by the Company. |

|         |                                                                                                          |
|---------|----------------------------------------------------------------------------------------------------------|
| • | Effective for fiscal 2014, a recoupment policy based on financial restatement or intentional misconduct. |

----

|                                                     |
|-----------------------------------------------------|
|                                                     |  |
| Compensation Element                           | Calendar Year 2013 Compensation Program |
| Annual Retainer:                                    | $120,000 retainer only; $100,000 paid in cash, $20,000 paid in restricted stock |
| Additional Chairman of the Board Annual Retainer:   | $140,000, effective as of April 2013 |
| Lead Director Additional Annual Retainer: | $25,000, eliminated as of April 2013. |
| Committee Chairman Additional Annual Retainer:      | $10,000 for Compensation Committee $10,000 for Nominating and Governance Committee $10,000 for Finance Committee, and $20,000 for Audit Committee |
| Committee Member Additional Annual Retainer:        | None |
| Attendance Fees:                                    | None |
| Stock Options:                                      | 5,000 shares annually (the exercise price is equal to the fair market value of our Common Stock on the date of grant). |
| Other Benefits:                                     | We also pay the premiums on directors’ and officers’ liability insurance policies covering the directors and reimburse directors for expenses related to attending Board and committee meetings and director continuing education seminars. |
| Special Committees:                                 | Determined on a case by case basis. |

----

|                        |
|------------------------|
|                        |  |  |  |  |  |  |  |  |  |  |
| Name                   | Fees Earned orPaid inCash ($)(1)(2)(3) | StockAwards($)(2)(3)(4)(5)(6) | OptionAwards($)(5)(6)(7) | All OtherCompensation($) | Total($) |
| John D. Correnti       | 110,002 |  | 19,998 |  | 53,100 |  | — |  | 183,100 |  |
| Diane H. Gulyas (8)    | 13,043 |  | — |  | — |  | — |  | 13,043 |  |
| Michael N. Hammes      | 118,732 |  | 19,998 |  | 53,100 |  | — |  | 191,830 |  |
| Vincent J. Intrieri    | 90,951 |  | 29,946 |  | 53,100 |  | — |  | 173,997 |  |
| James H. Keyes         | 196,411 |  | 19,998 |  | 53,100 |  | — |  | 269,509 |  |
| Stanley A. McChrystal  | — |  | 120,000 |  | 53,100 |  | — |  | 173,100 |  |
| Samuel J. Merksamer    | 87,283 |  | 20,000 |  | 53,100 |  | — |  | 160,383 |  |
| John C. Pope (8)       | 66,315 |  | 24,092 |  | 53,100 |  | — |  | 143,507 |  |
| Mark H. Rachesky       | 81,007 |  | 39,889 |  | 53,100 |  | — |  | 173,996 |  |
| Dennis D. Williams (9) | 120,000 |  | — |  | — |  | — |  | 120,000 |  |

|     |                                                                                          |
|-----|------------------------------------------------------------------------------------------|
| (1) | Amounts in this column reflect fees earned by our non-employee directors in fiscal 2013. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Under our Non-Employee Directors Deferred Fee Plan (the “Deferred Fee Plan”), our directors who are not employees receive an annual retainer, payable quarterly, at their election, either in shares of our Common Stock or in cash.  A director may elect to defer any portion of such compensation until a later date in DSUs or in cash.  Each such election is made prior to December 31st for the next succeeding calendar year or within 30 days of first joining the Board.  Vincent J. Intrieri, General Stanley A. McChrystal, Samuel J. Merksamer, John C. Pope and Mark H. Rachesky, elected to defer the receipt of some or all of their compensation received for their retainer fees in 2013.  Mr. Intrieri deferred receipt of 50% of his quarterly retainer fees in calendar year 2012 and 100% percent of his first quarter retainer payable in restricted stock and received 1,049.260 DSUs.  General McChrystal deferred receipt of 100% of his quarterly retainer fees in DSUs and received 3,975.642 DSUs.  Mr. Merksamer deferred receipt of 100% of his first quarter retainer fees payable in restricted stock and received 585.052 DSUs.  Mr. Pope deferred receipt of 20% of his quarterly retainer fees in calendar year 2012 and 100% of his first quarter retainer payable in restricted stock and received 776.062 DSUs.  Mr. Rachesky deferred receipt of 100% of his quarterly retainer fees in calendar year 2012 and received 928.416 DSUs.  The amount of DSUs for Mr. Intrieri, General McChrystal, Mr. Merksamer, Mr. Pope and Mr. Rachesky has been credited as stock units in an account under each of their names at the then current market price of our Common Stock.  The units issued to Mr. Intrieri, General McChrystal, and Mr. Merksamer during 2013 will be issued within 60 days after their separation from service with us.  The units issued to Mr. Rachesky during 2013 were converted into Common Stock and issued on February 17, 2013.  The units issued to Mr. Pope during 2013 were converted into Common Stock and issued on July 31, 2013. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | Effective April 1, 2013, each non-employee director received 585 shares of restricted stock in lieu of their first quarterly retainer, except for Ms. Gulyas, who retired from the Board on December 10, 2012, and for Mr. Intrieri, General McChrystal, Mr. Merksamer and Mr. Pope who each elected to defer receipt of their shares in DSUs, as described in footnote 2 above.  The grant date fair value of the restricted stock and DSUs were determined in accordance with FASB ASC Topic 718.  Mr. Williams, does not personally receive compensation for his service on the Board, as noted under footnotes 5 and 9 below.  For additional information regarding assumptions underlying valuation of equity awards see the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2013. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | The aggregate number of shares subject to stock awards granted by the Company that were outstanding for each non-employee director as of October 31, 2013, including DSUs owned by Mr. Correnti, Mr. Intrieri, Mr. Keyes, General McChrystal, and Mr. Merksamer is indicated in the table below.  DSUs acquired by Mr. Pope are not included in the table below because the units were converted into Common Stock, within 60 days of his retirement on July 14, 2013.  All of these stock awards and DSUs are 100% vested: |

|                               |
|-------------------------------|
|                               |  |  |
| Name                          | Total Number of StockAwards Outstanding (#) |  |
| John D. Correnti              | 17,943 |  |
| Diane Gulyas                  | — |  |
| Michael N. Hammes             | 6,395 |  |
| Vincent J. Intrieri           | 1,231 |  |
| James H. Keyes                | 19,840 |  |
| General Stanley A. McChrystal | 7,524 |  |
| Samuel J. Merksamer           | 585 |  |
| John C. Pope                  | 827 |  |
| Mark H. Rachesky              | 1,878 |  |
| Dennis D. Williams            | — |  |

|     |                                                                                                                                     |
|-----|-------------------------------------------------------------------------------------------------------------------------------------|
| (5) | At the request of the UAW, the UAW representative director, Dennis D. Williams, does not receive stock or stock option awards. |

|     |                                                                                                                                                                                                                                                                                                                                      |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | The values in this column reflect the grant date fair value as determined in accordance with FASB ASC Topic 718.  For additional information see the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2013 regarding assumptions underlying valuation of equity awards. |

----

|     |                                                                                                                                                                                                         |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | The number of options granted in fiscal 2013 and the aggregate number of stock options outstanding for each non-employee director as of October 31, 2013 are indicated in the table below. |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |
| Name                          | Total Stock OptionAwards Outstanding at2013 Year End (#) |  | Option AwardsGranted During2013 (#) |  | GrantPrice ($) (a) | Grant Date Fair Value of Option Awards Granted During Year ($) |  |
| John D. Correnti              | 33,600 |  | 5,000 |  | 21.015 | 53,100 |  |
| Diane H. Gulyas (b)           | 13,000 |  | — |  | — | — |  |
| Michael N. Hammes             | 20,400 |  | 5,000 |  | 21.015 | 53,100 |  |
| Vincent J. Intrieri           | 5,000 |  | 5,000 |  | 21.015 | 53,100 |  |
| James H. Keyes                | 33,600 |  | 5,000 |  | 21.015 | 53,100 |  |
| General Stanley A. McChrystal | 10,000 |  | 5,000 |  | 21.015 | 53,100 |  |
| Samuel J. Merksamer           | 5,000 |  | 5,000 |  | 21.015 | 53,100 |  |
| John C. Pope                  | 5,000 |  | 5,000 |  | 21.015 | 53,100 |  |
| Mark H. Rachesky              | 5,000 |  | 5,000 |  | 21.015 | 53,100 |  |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | These amounts do not reflect compensation realized by our directors. The amounts shown represent the value of the stock options based on the grant date fair value of the award as determined in accordance with FASB ASC Topic 718. The stock options generally vest over a three year period with 1/3rd vesting on each of the first three anniversaries of the date on which they are awarded, so that in three years the stock options are 100% vested. The stock options granted on December 11, 2012 expire seven years after the date of grant. For additional information regarding assumptions underlying valuation of equity awards see the consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended October 31, 2013. |

|     |                                                                                                                                                                                                   |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (b) | As noted below in footnote (8), Ms. Gulyas retired from the Board effective December 10, 2012, and was no longer a member of the Board when the grants of stock options were made in fiscal 2013. |

|     |                                                                                                                           |
|-----|---------------------------------------------------------------------------------------------------------------------------|
| (8) | Effective December 10, 2012, Ms. Gulyas retired from the Board.  Effective July 14, 2013 Mr. Pope retired from the Board. |

|     |                                                                                                                                                                                                                                                                                                                             |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (9) | At the request of the UAW, the organization which elected Mr. Williams to the Board, the entire cash portion of Mr. Williams’ annual retainer and attendance fees, are contributed to a trust which was created in 1993 pursuant to a restructuring of our retiree health care and life insurance benefits. |

----

|                                                  |
|--------------------------------------------------|
|                                                  |
|  EQUITY COMPENSATION PLAN INFORMATION  |

|                                                                 |
|-----------------------------------------------------------------|
|                                                                 |  |  |  |  |  |
| Plan Category(1)                                                | (a)Number of Securitiesto be Issued UponExercise ofOutstandingOptions, Warrantsand Rights | (b)Weighted-AverageExercise Price ofOutstanding Options,Warrants and Rights | (c)Number of SecuritiesRemaining Available forFuture Issuance UnderEquity Compensation Plans(Excluding SecuritiesReflected in Column(a)) |
| Equity compensation plans approved by stockholders              | 6,289,909 (2) |  | $37.396 (3) | 997,887 (4) (5) |  |
| Equity compensation plans not approved by stockholders(6)  | 798,588 (6) (7) |  | 29.517 (3) | — |  |
| Total                                                           | 7,088,497 |  | N/A | 997,887 |  |

|     |                                                                                                                                                                                                                                                                                                     |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | This table does not include information regarding our 401(k) plans. Our 401(k) plans consist of the following: Navistar, Inc. 401(k) Plan for Represented Employees and Navistar, Inc. RAP.  As of October 31, 2013, there were 570,782 shares of Common Stock  held in these plans. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | This number includes stock options granted under our 1994 Performance Incentive Plan (“1994 PIP”);  stock options, restoration stock options, DSUs and PSUs (as described in the Executive Stock Ownership Program discussed below) granted under our 2004 PIP; and stock options, performance stock options, RSUs, DSUs, PSUs and performance units granted under our 2013 PIP. Prior to February 17, 2004, restoration stock options were granted under our 1998 Supplemental Stock Plan (not approved by stockholders), as supplemented by the Restoration Stock Option Program.  Under the Restoration Stock Option Program, generally one may exercise vested options by presenting shares that have a total market value equal to the option price times the number of options.  Restoration options are then granted at the market price in an amount equal to the number of shares that were used to exercise the original option, plus the number of shares that are withheld for the required tax liability.  Participants who own non-qualified stock options that were vested prior to December 31, 2004, may also defer the receipt of shares of Common Stock due in connection with a restoration stock option exercise of these options.  Participants who elect to defer receipt of these shares will receive deferred stock units.  The deferral feature is not available for non-qualified stock options that vest on or after January 1, 2005.  The Restoration Stock Option Program was eliminated for all stock options granted on or after December 16, 2008.  Stock options awarded to employees for the purchase of Common Stock from the 1994 PIP, the 2004 PIP and the 2013 PIP were granted at the fair market value of the stock on the date of grant, generally have a 10-year contractual life, except for options granted under the 2004 PIP after December 15, 2009 and options granted under the 2013 PIP which have a contractual life of 7-years, and generally become exercisable as to one-third of the shares on each of the first three anniversaries of the date of grant, so that in three years the shares are 100% vested.  Performance stock options granted under the 2013 PIP on February 19, 2013 do not become exercisable until after the three year anniversary of the date of grant.  Performance Options granted to our CEO on April 22, 2013 vest upon achievement of performance conditions at measurement date.  Awards of RSUs granted under the 2013 PIP were established by the Board or committee thereof at the time of issuance.  The 1994 PIP expired on December 16, 2003 and the 2004 PIP expired on February 18, 2013, and as such no further awards may be granted under the 1994 PIP or the 2004 PIP.  As of October 31, 2013, 389,829 stock option awards remain outstanding for shares of Common Stock reserved for issuance under the 1994 PIP, 3,017,145 stock option awards, 7,730 DSUs, and 51,248 PSUs remain outstanding for shares of Common Stock reserved for issuance under the 2004 PIP, and 1,904,961 stock options, including performance options, 250,622 RSUs, 651,870 performance units, 3,092 DSUs and 13,412 PSUs remain outstanding for shares of Common Stock reserved for issuance under the 2013 PIP.  For more information on the 2013 PIP see footnote 5 below. |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                         |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) | RSUs, DSUs, PSUs, and performance units settled in shares do not have an exercise price and are settled only for shares of our Common Stock on a one-for-one basis.  These awards have been disregarded for purposes of computing the weighted-average exercise price. For more information on DSUs and PSUs see the discussion under the paragraph below entitled “The Executive Stock Ownership Program.” |

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (4) | Our 2004 PIP was approved by the Board and the independent Compensation and Governance Committee on October 15, 2003, and, subsequently by our stockholders on February 17, 2004.  Our 2004 PIP was subsequently amended on April 21, 2004, March 23, 2005, December 12, 2005, April 16, 2007, June 18, 2007, May 27, 2008, December 16, 2008, January 9, 2009, February 16, 2010, and April 19, 2010.  The 2004 PIP replaced, on a prospective basis, our 1994 PIP, the 1998 Supplemental Stock Plan, both of which expired on December 16, 2003, and our 1998 Non-Employee Director Stock Option Plan (collectively, the “Prior Plans”).   A total of 3,250,000 shares of Common Stock were reserved for awards under the 2004 PIP.  On February 16, 2010, our stockholders approved an amendment to increase the number of shares available for issuance under the 2004 PIP from 3,250,000 to 5,750,000.  Shares subject to awards under the 2004 PIP, or the Prior Plans after February 17, 2004 and before February 19,2013, that were canceled, expired, forfeited, settled in cash, tendered to satisfy the purchase price of an award, withheld to satisfy tax obligations or otherwise terminated without a delivery of shares to the participant again became available for awards. |

|     |                                                                                                                                                                                                                                                                      |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) | The 2013 PIP was approved by the Board  and the Compensation Committee on December 11, 2012 and by our stockholders on February 19, 2013.   The 2013 PIP replaced on a prospective basis the 2004 PIP and the Prior Plans, and awards may no longer be granted under |

----

|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (6) | The following plans were not approved by our stockholders: The 1998 Supplemental Stock Plan (as supplemented by the Restoration Stock Option Program (the “Supplemental Plan”)), The Executive Stock Ownership Program (the “Ownership Program”), The 1998 Non-Employee Director Stock Option Plan (the “Director Stock Option Plan”), and The Non-Employee Directors Deferred Fee Plan (the “Deferred Fee Plan”), except that any DSUs awarded out of the Deferred Fee Plan on or after September 30, 2013 are now issued out of the 2013 PIP.  Below is a brief description of the material features of each plan, but in each case the information is qualified in its entirety by the text of such plans.  We also granted 500,000 non-qualified stock options to Lewis B. Campbell upon his appointment as Executive Chairman and CEO of the Company on August 26, 2012.  These stock options were a non-plan grant made under NYSE inducement grant rules. |

|     |                                                                                                                                                                                                                         |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) | Includes 1,821 DSUs and 12,038 PSUs granted under the Executive Stock Ownership Program and 39,729 deferred stock units granted under the Deferred Fee Plan; all of which were outstanding as of October 31, 2013. |

----

|                                                                                            |
|--------------------------------------------------------------------------------------------|
|                                                                                            |
|  PROPOSAL 2—RATIFICATION OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM  |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |
|  INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM FEE INFORMATION  |

|                    |
|--------------------|
|                    |  |  |
| (in millions)      | 2013 | 2012 |
| Audit fees         | $12.7 | $13.0 |
| Audit-related fees | 0.5 | 0.5 |
| Tax fees           | — | 0.1 |
| All other fees     | — | — |
| Total fees         | $13.2 | $13.6 |

----

|                                                                                               |
|-----------------------------------------------------------------------------------------------|
|                                                                                               |
|  PROPOSAL 3—ADVISORY VOTE ON EXECUTIVE COMPENSATION  |

|         |                                                                                                                                                                                                |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Competitive Positioning: Total remuneration is designed to attract and retain the executive talent necessary to achieve our goals through a market competitive total remuneration package. |

|         |                                                                                                                                                                                                                               |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Pay-for-Performance: Executive compensation is designed to align the interests of our executives and stockholders. It is also performance-based with a direct link to Company, business unit, and individual performance. |

|         |                                                                                                                                                                                                                                                                                                                                             |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | Ownership and Responsibility: Our compensation programs are designed to recognize individual contributions as well as link executive and stockholder interests through compensation plans and programs that reward our executives, including our NEOs based on increases to stockholder value and the financial success of the Company. |

----

|                                            |
|--------------------------------------------|
|                                            |
| PROPOSAL 4—STOCKHOLDER PROPOSAL |

----

|                                |
|--------------------------------|
|                                |
|  OTHER MATTERS  |

----

|                                                    |
|----------------------------------------------------|
|                                                    |
|  ADMISSION AND TICKET REQUEST PROCEDURE  |

|         |                                                                                                                                                              |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | If your shares of Common Stock are registered in your name and you received your proxy material by mail, an admission ticket is attached to your proxy card. |

|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | If your shares of Common Stock are registered in your name and (i) you received or accessed your proxy materials electronically over the Internet, and you plan on attending the Annual Meeting, click the appropriate box on the electronic proxy card or (ii) follow the telephone instructions and when prompted, “if you plan to attend the meeting in person,” press 1, and an admission ticket will be held for you at the registration desk at the Annual Meeting. You will need a valid photo identification to pick up your ticket. |

|         |                                                                                                                                                                                                                                                                     |
|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • | If your shares of Common Stock are held in a bank or brokerage account you may obtain an admission ticket in advance by submitting a request by mail to our Corporate Secretary, 2701 Navistar Drive, Lisle, Illinois 60532 or by facsimile to (331) 332-2261. |

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| Registered Stockholders(if appointing a representative to attend and/or vote on his/her behalf)                                                                                                                                                                                                                                                                                                                               | Beneficial Holders |
| For ownership verification provide:•      name(s) of stockholder•      address•      phone number•      social security number and/or stockholder account number; or•      a copy of your proxy card showing stockholder name and address | For ownership verification provide:•      a copy of your January brokerage account statement showing Navistar stock ownership as of the record date (1/10/14);•      a letter from your broker, bank or other nominee verifying your record date (1/10/14) ownership; or•      a copy of your brokerage account voting instruction card showing stockholder name and address |
| Also include:•      name of authorized proxy representative, if one appointed•      address where tickets should be mailed and phone number                                                                                                                                                                                                           | Also include:•      name of authorized proxy representative, if one appointed•      address where tickets should be mailed and phone number |

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